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Home My WebLink About207-065• . ~~ ~ ~ ~~~~~~~~ `~~~ ~~~~~~ ~~:~~ ~,~~~~ ~ ~ FtESCA(V D9f;ITAL DATA ~ ior Items: ^ Diskettes, No. ^ Greyscale items: ^ Other, No/Type: Poor Quality Originals: ~ p0~-~ V ^ Other: NOTES: BY: / Maria Date: Project Proofing BY: Maria ` Scanning Preparation BY: Maria _ Date: ~ ~ OVEFtS9ZED (Scannable) ^ Maps: ~ther items Scannable by a Large Scanner OVERSIZED (Non-Scannable) ~ Logs of various kinds: ^ Other:: ~ isi III II~IIIIIIII IIIII ,S, p ~ - Production Scanning Stage 1 BY: Stage 1 BY: ~_ x 30 = 1 a o-_ ~..~ = TOTAL PAGES / 3~ (Count does not inGude cover sheet) Date: f ~S~ IIIII~IIIIIIII I~III Page Count from Scanned File: 3 3 (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: ~YES NO Maria Date: ~ ' ~' Q~ /sl ~ ~ If NO in stage 1, page(s) discrepancies were found: YES NO Maria Date: ~So~~ ~~.~.~~~.~~ ~o.~ Scanning is complete at this point unless rescanning is required. f~@$C~l'1I1~C~ ~II II'll~ I~III II (I~ BY: Maria Date: ~S~ Comments about this file: Quality Checked II I II III) II~ II II (I~ ~ 10/6/2005 Well History File Cover Page.doc • • Pe r e _ FREE FULL SU�SCA R ft '75 Y k fom• ! T. rti ; r 4 --Trirrrr AYCITVIK 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 on - o � continue probe d*A 2011 Wesley Loy _ �1 N1AR d ' �l1 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 — VA `\ Alaska village of Wainwright. d- c But the BLM also seemed to steer accountability for the lapse toward its designated operator on the project, the U.S. Geological Survey. Q� The BLM stated its position in a March 15 letter to the Alaska Oil and Gas JOS — 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 Dr', Number ? "', Missing Information ; , Requests iF`l 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 Location information (coordinates as metes & bounds, 2071060 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) 2090350 Mud log (required by permit to drill; drilling history states "will 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 APR 1 2 2011 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 Wesley Loy Mita DEL. 4 0 Z01@ • 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. O _ O "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. 1 • In response to letters from the AOGCC, officials with the BLM have attempted to supply 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 OIL AND GAS CONSERVATION COMMISSO WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1 a. Well Status: Oil ❑ Gas ❑ Plugged ❑ Abandoned Q Suspended ❑ 1 b. Well Class: 20AAC 25.105 20AAC 25.110 b1 Development ❑ Exploratory❑Q GINJ❑ WINJ❑ WDSPL❑ WAG Other❑ No. of Completions: i��rD Service ❑ StratigraphicTest❑ 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill Number: US Geological Survey Aband.: "122Q010 207 -065 3. Address: 6. Date Spudded: 13. API Number: PO Box 25046 MS 939 DFC Denver, CO 80225 6/11/2007 50- 301 - 20003 -00 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and Number: Surface: N7038'40.8" W16001'19.4" 6/27/2007 Wainwright -1 Top of Productive Horizon: 8. KB (ft above MSL): 25 15. Field /Pool(s): Ground (ft MSL): 20 Total Depth: 9. Plug Back Depth(MD +TVD): 1613 ft 1613 -960 bentonite 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- y- Zone- 1613 It TPI: x- y- Zone- 11. SSSV Depth (MD + TVD): 17. Land Use Permit: Total Depth: x- y- Zone - 18. Directional Survey: Yes No It 1 19. Water Depth, if Offshore: 20. Thickness of Permafrost (TVD): (Submit electronic and printed information per 20 AAC 25.050) (ft MSL) - 900 It 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 WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING FT GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 65/8 .280 wall sch 40 0 75 0 75 8.75" cement from bottom -up 3.5 in 7.8 957 1613 957 1613 4.25 in bentonite grout 2.5 in pvc sch 80 0 957 6 -in cement 957 -850 bent grout 850 -100 cement 100 - land surface ID plate welded 64" bls 23. Open to production or injection? Yes ❑ No Q 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) 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED N� 2019 26. 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 Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): Press. 24 -Hour Rate _mfo 27. CORE DATA Conventional Core(s) Acquired? Yes ❑� No ❑ Sidewall Cores Acquired? Yes ❑ No 0 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. Continuous core collected from 75'- 1605'. Core currently stored in Eagle River state repository. RECEIVED ,a 6/ 0 4 2010 Aia 6 COPS" e � 33111fl RBDrAS NOV 0 4 Anthems Form 10 -407 Revised 2/2007 CONTINUED ON REVERSE yC� ,��•� Sd' v /!� 28. GEOLOGIC MARKERS (List all formations and markers encountered): 29. FORMATION TESTS NAME MD TVD Well tested? Yes L No If yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if needed, Permafrost - Top 0 0 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: 31. 1 hereby certify that the fo�jgoing is true and correct to the best of my knowledge. Contact: Printed Name: Arthur C Title: Supervisory Geologist Signature: Phone: 303- 236 -5793 Date: 11/1/2010 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 1a: Classification of Service wells: Gas Injection, Water Injection, Water - Alternating -Gas Injection, Salt Water Disposal, Water Supply for / 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 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 Abandonment schematic Wainwright -1 ID plate 64" bls Arctic blend cement • Drilled 9 7 /8 -in diamet i 0 ! 6 518 -in steel casing, 75 ft BLS borehole to 75 ft I ca I � I I U I 100 ft BLS 0 0 0 W) 00 0 a 6 -in diameter borehole m .r Bentonite abandonment 0 • grout 100 -1216 ft = m m Cement 957-850 Top of broken core rod 957 ft 4 -in diameter borehole Be iton ite grout 957 -161 7 Bott o f hole 1613 ......................... ............................. ....................................................... .... . ................ ......... . a i > , fi r. r� , F t i t l ux it t 4 c � �- Mme' ♦..ice "� ' `•o», � w ri f , rt , .x� w i W�� ••' - `lb 0 �4 14, f h wr i a i t • T m _ 1 , Ir yj a ♦ +J "° 1 ,r � • `i y " f fit' a »` or j f !g, a f"` � 1 � j•�� air } j� �• � . r " 1k �,�� i � ' 4 f�, k 1 4 R , " v ' `� 1 + Al� a # Y a p + •� r i } i.� a c. s , k * , r • Iv ;. io Ilk Ilk IM r i , � z i a , r 'r , y a. ♦y k . , a y a• '°Y ; �.:'•. s`1 ��.� '114 f�t� � � toe te , � y j * 1 ` t No 4 h # � a �•.., sy lo t �!o t r a l � , • IA Al al 4 ` Ar Y yes DATE AQIVRY 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 WS 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 V Y bentonite. Wednesday, June 09, 2010 Pump 100 ft cement across perfs, bentonite grout to within 100 ft of land surface. Inspector arrives. Thursday, June 30, 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 Reamingwell. 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. Friday, June 25, 2010 Begin testing �/ Y 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 Wednesdav, Julv 28, 2010 Finish circulating. Run caliper and gamma logs 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, 2010 testing. Move rig over Wainwright -1 and prepare for P &A. \/V Tuesday, August 03, 2010 testing. AOGCC inspector arrives. Mix and pump cement into bottom of Wainwright -1. Wednesday, August 04, 2010 testing. Finish P &A of Wainwright -1. Move equipment off well. 1- � Thursday, August 05, 2010 testing. Set up over Wainwright -2, trip in tremie pipe and P &A well. E-- W " Z. 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 -S. Move equipment and set up over Wainwright -8. Trip w"5 tremie in well. V V Sunday, August 08, 2010 testing. P &A Wainwright -8. Move equipment and set up over Wainwright -4. Y Monday, August 09, 2010 testing. Set up over Wainwright -4, trip tremie in tremie pipe and P &A well. �- 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 Z Monday, August 16, 2010 testing J 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, �'�(1 DATE: October 22, 2010 P. I. Supervisor FROM: Chuck Scheve, SUBJECT: Surface Abandonment Petroleum Inspector Wainwright #1 PTD# 2070650 Friday, October 22, 2010: I traveled to the USGS Wainwright #1 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 #1 well and found all to be in order. Attachments: Photos (2) Surface Abandonment — Wainwright #1 10 -22 -10 • • Surface Abandonment — Wainwright #1 PTD 2070650 Photos by AOGCC Inspector C. Scheve 10/22/2010 . Casing cut -off; ' cement to surface *: 4 0 ' '- • , ,,.. . . # ,'# f '''.41 i r .,.... '" * Well marker " 4 � f ♦y aA' �Y4R .. Surface Abandonment — Wainwright #1 10 -22 -10 Regg, James B (DOA) Page 1 of 1 p a� From: Joseph Adami Dadami @OLGOONIK.COM] Sent: Tuesday, October 19, 2010 10:46 AM to vZA10 To: Regg, James B (DOA K) Subject: USGS Arrival in ainwright 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 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, SR. HSEQ CONSULTANT OES, INC. NIV 1 5 360 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 ~~,~ ~ ~~~'~~Q DATE: August 5, 2010 P. I. Supervisor ~~ . J~' ° ~ k~~t.i KV r ?.C;~s~~ FROM: Lou Grimaldi SUBJECT: Wellbore Plugs Petroleum Inspector Wainwright #1 USGS PTD#2070650 Tuesday, August 3, 2010; I traveled from Deadhorse to Wainwright to witness the setting of cement and grout plugs on well "Wainwright #1 ". I arrived at 12:30 and was picked up by USGS rep Jeff Edam who informed me that they were ready to pump the bottom plug. We travelled to the well sight immediately. Since the "Tremie" pipe was already in the hole, I could not verify depth which was reported as 957' TD and the end of the Tremie pipe at approximately 953'. "Tremie" pipe is a water well drillers name for small diameter wash pipe and in this job consisted of 1 '/4" I.D./ 1 '/s" 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". The rig was circulating Glycol and had the SOS AS-1 cement ready to be mixed. Thirty gal's (143 lineal feet) of cement slurry was mixed and pumped in 4 batches, pulled a sample out of the second batch and found out that the mud scale had a broken vial and could not be used. I set the sample aside with instructions that this would be retained for verification in the morning. The rig pulled 220' (10 x 21' & 1 x 10') of Tremie pipe and shut down operations for the evening. Wednesday, August 4, 2010; This morning, after verifying the sample was set up (adequately hard), the rig attempted a tag on the TOC. The full joints (10 x 21') that they pulled yesterday were run in without tagging anything, I had them pick up another full joint and verify bottom for me which they did approximately where expected. I referenced this as 957' and kept tally throughout the job until all pipe was pulled. The top joint was pulled and a 12' pup picked up and run back to within 4' of bottom. A "Steam Jenny" style heater was rigged up on the outlet of the grout pump and hot water was pumped down hole. Glycol then contaminated cement was returned to surface. This operation was continued until we saw clean hot water returns (approx. 110 deg F). The new cement slurry consisted of 28 gallons of HES Permafrost C was mixed, we weighed a mud cup at mark (32 fluid Oz) at 123 Oz (15.5 heavy) which was within 1 point of prescribed. This was mixed and pumped in four batches while pulling out of hole between batches. The ~ end of the Tremie pipe was picked up 117' off bottom for the grouting job. 2010-0806_Plug_W ainwright-1 _lg. doc 1 of 4 r~ ~~ The "Volclay" bentonite grout (147 gallons) was mixed in batches and pumped while pulling five joints between batches. Five joints were left in the hole and water was circulated to surface. This was followed by 24 gallons of HES permafrost "C" which circulated to surface. The remaining five joints were pulled and laid down. Operations were shut down for the evening. The cement samples from both plugs were set inside a "Conex" and will be inspected in the morning before moving to Wainwright #2. Thursday, August 5, 2010; This morning I travelled back to location and inspected both plug samples which were set up 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 (3) Non-Confidential 2010-0806_Plug_W ainwright-1 _lg. doc 2 of 4 • • P&A -Wainwright (BLM) Coalbed Methane Well #1 PTD 2070650 Propylene glycol (foreground); "Steam Jenny" style heater (mid frame); grout mixing equipment (background) Rig tripping pipe 2010-0806_Plug_Wainwright-1 _lg.doc 3 of 4 Photos by AOGCC Inspector L. Grimaldi August 3-5, 2010 Mixing grout for plugging well 2010-0806_Plug_W ainwright-1 _lg.doc 4 of 4 • • Arthur Clark Supervisory Geologist US Geological Survey P.O. Box 25046 Denver, CO 80225 Re: Exploratory Field, Wainwright Undefined Gas Pool, Wainwright-1 Sundry Number: 310-126 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. i ~~~~~ a ln_"'14'~~ o STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APR 1 4 2010 APPLICATION FOR SUNDRY APPROVALS 20 AAC 25 280 •~~ 1. Type of Request: Abandon Q Plug for Redrill ^ Perforate New Pool ^ Repair Welt ^ Cha , d 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: US Geological Survey Development ^ Exploratory 0 , 207-065 3. Address: Stratigraphic ^ Service ^ 6. API Number: PO Box 25046 MS 911 DFC Denver, CO 80225 50-301-20003-00 , 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ^ No ^ Wainwri ht-1 9. Property Designation (Lease Num ber):/ 10. Field/Pool(s): ~;~s-t ~~'`r~~ / (iL'-E'1- m~L~'l /~~ 4f, ~:%•/r'~ ~ ~~. r~.~c^ iv ~i 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): 1613 Plugs (measured): Junk (measured): 1613 1613 1613 950-1613-ft Casing Length Size MD TVD Burst Collapse Structural Conductor 75 ft 6 5/8 Surface Intermediate Production Liner 940 ft 2 1/2-in PVC Pertoration 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 Q 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 Q• Commission Representative: GSTOR ^ SPLUG ^ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name Art Clark Title Supv Geologist Signature Phone 303-236-5793 Date r ~ ^ I ~ 3/23/2010 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Location Clearance C]0 Plug Integrity ~ BOP Test ^ Mechanical Integrity Test ^ /~ t / Other: ~ J%t]Ui~c ~o~ GCOCt.~rr.en~'iLTO~. O~'t"nvC- ~ ~.T7~1r W~l~ih.~ STAG( C~.~. ~ //~~ // L / C_Ol+-.-+i SS idr7i `!~ W ! -~ha3S C G »~e.~ P 6Ct~ 'F JOGevl"iOh G ~r mac.. ~e-h,' ~ ~ L ~ ' ! D Subsequent Form Required: APPROVED BY NER THE COMMISSION Date: ~~ / v Approved by: COMMISSIO SAS APR 1 ~ 1010 ~ ~~ Y'/S'.~o ~~ ~.«_~;~~ Form 10-403 Revise "' ~ '"'~ ° ~ Sutmit in Duplicate I~'~It:'{~~ r~y~3~d • ~ 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 2 %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 bis to land surface: All 1 '/4-in pipe is removed from well. Ne f; ~ Ao4ec • Conductor and liner casings are cut off 3 ft bls • A steel plate, with pertinent well information welded to its surface, is welded to f° ~'`~~ fK~ s s the top of the conductor casing • Hole is filled with native material and site is leveled to grade • Rig is removed from well • • 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' . ~~~~ JA'i~~ ~ '~ Z01~ 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'. ~~ ~~~0~ ~ ~~ ~~~~~ • . 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 drills 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. • 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: Sent: To: Subject: Please put in files Seamount, Dan T (DOA) Tuesday, November 10, 2009 10:21 AM Colombie, Jody J (DOA) FW: Wainwright -----Original Message----- From: Greg_Noble@blm.gov [mailto:Greg_Noble@blm.gov] 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 like to speak with you. I am not pleased with your letter of support. Please call me. Greg J Noble Energy Section Chief (907) 267-1429 "Seamount, Dan T (DOA)" <dan.seamount@ala ska.gov> 11/06/2009 11:40 AM Gre~ Noble@ak.blm.,gov FW: To cc Subject ~~~~~~ ~~~`Y s "$ ~d~`~ Greg, 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: ~ Jody J. Colombie Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 (907)793-1221 (phone) (907)276-7542 (fax) [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] 2 • • ~~ ~~ k ti4--S ~r ~ = bi ~ ~ ~' ~ q3 ~,~'~ ~ ..~e fk" ~ ~ ~~4 ~ ~.f ~~r,6 ~j. ~ '8 k ~a, ~ i p 9 ~~ ~ ~~ ~ ~ 9G ~: ~ ~~ ~ ~ ~ ~~ ~ ~ ~ ~ `°` b ~ @ ~ t 9 R ~ ~ ~: ~ ~~~ ~ ~ +~ ~ ~ SEAN PARNELL, GOVERNOR ~~ ~`'~~ b i :fi } i ~ ' ~~ ~ ~;~ ~ ~.~ 6 ~~' g ~ P " ~. e ~ ~_~x,~ ~S `~„i.~ ~~~~ ~ ~ ~..~ ~ t l . ~ N ~r ~ ~~+ ~ ~-7~ Di~ ~ lZt~7 ~~ 333 W. 7th AVENUE, SUITE 100 COI~TSERQATI01'1T COMrIISSIOI~T ~ ANCHORAGE, ALASKA 99501-3539 PHONE (907j 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 ~,~-~ ;~' +~~ ~~ ~ ~~"~'~ :~ 4 , . `:.~~~~~ ~,~, ~ 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~ , ~~_V V~ • • ~ h 'r~ k i F :;: ~ y _'' `~ ~ ,~, ~ . } `~. 1' x+ k i ~ 6 § I.t~ ~ b ~.-~.~ ~ ~ ~~ ~ ~t: ~ ~E r ~ ~ i ~ ~ „~ ~ k ^ ~ C. ~, tl W ~ ~ ! R~~ ~ ~ ~ ~~ + ~ ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ , ~ ~ ~ ~ ~3 ~ ~ ~ ~ e ~ ~~ ~ `~~`~ ~g ~~ " ~ ~ SEAN PARNELL, GOVERNOR ~ z??~~, e,~ ~ ~ ~~~:~" ~ ,k o-'_~~_ );. ~ ~_ ~.~ ~~ ~;~; t~" °r`7 t.,,~~~k ~-7~ ~I1~ ~ t7[1~~7 333 W. 7th AVENUE, SUITE 100 COI~TSERQATIOI~T CO1~lII~iISSIOI~T ANCHORAGE,ALASKA 99501-3539 ~ 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: ~'i'.~~~~~.~'~:~~ ;t .~ c. ZJu~ 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 project. 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, i~ Daniel T. Seamount, Jr. Chair Enclosure . ~ • ~ ~ 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 ~ ~ ~ ~~ ~ ~`~ 'y I~ '. ( ~F~ I - .~ n '- ~ t F l k~. I k u~. iF t ~ ~ f i~ , 4 ~ ; y~ '; ~ F f f~ 5~ P t ~~~ . ` } r ~ ~ ~'S ~-' ~ r C ` N ~ ' ~ ~ = ~~ ~ ~ ' 4~ ~~ ` ~ F ~ ~ E ~ F ~~~ SEAN PARNELL, GOVERNOR , e r ~~ p x p ~u ~ , L.. .. ~ . @ -_ `~--d'y ,. - . - a yF. ~.,z ~_ ~_ F. ~sr ~ p ~tr k ~_ ~ ' , ~_. _ . . '_ . ' ._ _ - ~, 6 ~-~-7ttr8~ ~~ ~D Vrv~.7 P N 333 W. 7th AVENUE, SUITE 100 C,D~sERQAliO~ CD~IIS'S'I~~ ANCHORAGE,ALASKA 99501-3539 ~ PHONE (907) 279-1433 ~ FAX (907)276-7542 November 5, 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 ~:~y~~~~~=' "4,,;;i ~ `'~~J~ Dear Mr. Messrs: 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 permit, 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 farm 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)) • ! 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, 2009 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-04 lA (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 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)) • . - No core description submitted(as per 20 AAC 25.071 ( 3)) - Density and porosity data missing from submitted digital data. (407 states that those types of logs were run.) (as per 20 AAC 25.071 (6)) Within 40 days of the date of this letter, the AOGCC requests USGS provide written verification that the violations listed above have been rectified and that all Wainwright operations are being conducted in compliance with AOGCC regulations. Upon receipt of such verification, the AOGCC will consider this matter closed. Should the USGS fail to submit the required information the AOGCC will notice a public hearing on the Wainwright violations to determine, among other things, the reasons for noncompliance and whether non-compliance poses any threat to human health or the environment. If you have any questions regarding this request for information, please contact Guy Schwartz at 907-793-1226 or guy.schwartz@alaska.gov. Sincerely, Daniel T. Seamount, Jr. Chair Encl. cc: Greg Noble, BLM ~ • ( ~--` C ~ '~ ~ ~~ l . ~= ~, J f ~.. ~ 4 - ( ~1 `~ f ~I ~. ~l t ~ a' i. ~~{ .kI" `I . ~ ~ ,\t ' =t , v i: . ~ F~~ } ' ' ~t t~, ~ ` kry~t ~ ~ ~~ ~ ~ f~~~F Fr'~`~ ~~' SEAN PARNELL, GOVERNOR .:~- _ ~' _~. _ . ~ .~s . ~2, ~ ~-.iat~:~~. ~~ ~~ i~r[3.a~. f`~ 333 W. 7th AVENUE, SUITE 100 ~~~~~~P~~~~ ~~ ~~~~~ ,~ PHONORA 907) 279K43395013539 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 Federa] Center Mail Stop 939 4700 BLM Road Denver, CO 80225-0046 Anchorage, AK 99507 Dear Mr. Messrs: The U.S. Geological Su~vey (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 25280 and 20 AAC 25.110 - for the following operations: l. 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 25.515 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 wel(. 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 repoits a~ld 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 2 of 3 If the USGS and BLM continue to fai] to meet Alaska's statutory and regulatory requirements, the Commission will issue notice and convene a public hearing to address these matters further. :`_/~ ~, Daniel T. Seamount, Jr. Chair 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 Public Room: 907-271-5960 Bob Abbey, Director BLM Washington Office 1849 C Street NW, Rm. 5665 Washington DC 20240 ~ U.S. Geological Survey September 9, 2009 Page 3 of 3 Attachment 1 Continued Reporting Deficiencies for BLM and USGS Welis \J 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 submiried on dataset number T14024 No directional survey submitted (hardcopy nor digital) Franklin Bluffs 1 No mud logs submitted (hardcopy nor digita] 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.) l ~~~ DATA SUBMITTAL COMPLIANCE REPORT 716/2009 Permit to Drill 2070650 Well Name/No. WAINWRIGHT 7 Operator U S DEPT OF INTERIOR MD 1613 ND 1613 Completion Date 7/5/2007 Completion Status SUSP Current Status SUSP REQUIRED INFORMATION API No. 50-301-20003-00-00 UIC N Mud log No Samples „ I~d Directional Survey No DATA INFORMATION Types Electric or Other Logs Run: GAMMA, RES, CALIPAR, DENSITY, SONIC (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr Data Digital Dataset Log Log Run Interval OH / ~ pe meairnm ~.unwG~ name JGQIC ~nGU~a rvo aiar[ atop ~.n rtecervea a.ommen[s C Las 14024 Induction/Resistivity 1 1607 Open 11/21/2007 GR SP Res Temp plus Graphics (PDF) D C Jpg 14024/Sample 75 1605 Open 11/21/2007 Core Photos (Not I Slabbed, Photos of the Core in Boxes) ED C Las 17584 Induction/Resistivity 0 1607 Open 2/13/2009 GR, Depth, RES, Temp, Lateral, Ten, Time w/ other LAS graphics and TXT Data Weli Cores/Samples Information: Sample Intervai Set Name Start Stop Sent Received Number Comments Cores and/or Samples are required to be I submitted. This record automatically created from Permit to Drill Module on: 6/13/2007. ADDITIONAL INFORMATION Well Cored? ~/ N Daily History Received? Y Chips Received? Y/ N Formation Tops ~ N Analysis Y / N Received? ~ ~ Comments: DATA SUBMITTAL COMPLIANCE REPORT 7/612009 Permit to Drill 2070650 Well Name/No. WA~NWRIGHT 1 Operator U S DEPT OF INTERIOR MD 1613 ND 1613 Completion Date 7/5/2007 Compietion Status SUSP Current Status SUSP Compliance Reviewed By: Date: API No. 50-301-20003-00-00 UIC N ~ ~ ~ ~ Page 1 of 1 ~llaunder, TMQmas E (Df)A~ From: M~under, Thom~s E (DQA) SS~nt: ~'rida~, July 31, 2QQ9 2;52 PM To: 'Arthur C Clark' Cc: Qav~s, Stephe~ F(DQA); Tom R~tc~rtensen SubJect; Wainwright 01 (2Q7-065) & Wainwright 02 (20~-106) 7/31 /20~9 • ~ 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 Well 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-1 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 call 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 finro-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 ~U~ WELL COMPLETION OR RECOMPLETION REPOR~a~l,l~~ LO~ l~'~~ 1a. Well Status: Oil ~ Gas ~ Plugged ~ Abandoned ~ Suspended Q 20AAC 25.105 20AAC 25.110 GINJ^ WINJ[] WDSPL~ WAG^ Other^ No.ofCompletions: 1b. Well Class: ~~ ~~ ~ pevelopment ~ f~n~ o ato~.~'i ; v,; Service ^ Stratigrap fest~ 2. Operator Name: Burearu of Land Management - Deparment of the Interior 5. Date Comp., Susp., or Aband.: 7/5/2007 ' 12. Permit to Drill Number: 207-065 • 3. Address: 222 West Seventh Ave., #13, Anchorage, AK 99513 6. Date Spudded: ~~ §/1112667 ~i' ~Z'b??•/3•b 13. API Number: 50-301-20003-00 • 4a. Location of Well (Governmental Section): SurFace: 70 37;56.6: 160 01;28.2" 900' FNL, 2278' FEL • 7. Date TD Reached: 6/27/2007 • 14. Well Name and Number: Wainwright 1• Top of Productive Horizon: Sec. 24, T15N, R32W, UM ~ 8. KB (ft above MSL): 30 . Ground (ft MSL): 25 15. Field/Pool(s): N/A Total Depth: Vertical Well - 1613 ft 9. Plug Back Depth(MD+ND): 950 4b. Location of Well (State Base Plane Coordinates, NAD 27): •~ ~'7 y- ~~~ /~3 Zone- Surface: x- ~~ 10. Total Depth (MD + TVD): • 1613 ft 16. Property Designation: City of Wainwright ~~'~ ' TPI: x- Y- ~'r,~, R$p/~Zone- Total Depth: x- y- ~2,~3ay Zone- 11. SSSV Depth (MD + TVD): 1613 Ft. 17. Land Use Permit: y ~3w~' 18. Directional Survey: Yes No ~ (Submit electronic and printed information per 20 AAC 25.050) 19. Water Depth, if Offshore: N/A (ft MSL) 20. Thickness of Permafrost (TVD): - 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, L INER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH ND HOLE SlZE CEMENTING RECORD AMOUNT FT TOP BOTTOM TOP BOTTOM pULLED 6 5/8 .280 wall sch 40 0 75 0 75 8.75" cement from bottom-up 2.5" PVC 0 940 0 940 5.625" cement from 100'-up 3.5" 7.8 957 1613 957 1613 4.25" bentonite grout 23. Open to production or injection? Yes ~ No Q• If Yes, list each 24. TUBING RECORD interval open (MD+TVD of Top & Bottom; Pertoration Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD) 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 • 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 descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. Continuous core collected from 75'-1605'. Core currently stored in USGS warehouse in Anchorage, eventually to be moved to state repository in Eagle River and will be public data, ~~,~ ~~~~2_,c~ ~ DA~ '7~ ~ = c^,7 v~ Form 10-407 Revised 2 '~~~ ~ 6 CONTINUED ON REVERSE ~~~i~/ d~ t i~.~1 ~ . --. ~ ~S1C1~ ~ ~~i3a9 ~.~-~~3~~ • . 28. GEOLOGIC MARKERS (List all formations and markers encountered): 29. FORMATION TESTS NAME MD ND 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 e best of my knowledge. Contact: Printed Name: Beth Maclean ~ Title: Geologist Signature: J Phone:907-271-1985 Date: 8/16/2007 / INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for 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 i 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 • 6/12/07: Mud rotary drill8 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 rod5 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 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 li~ht-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 r~: 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 testing and water saxnpling 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 dri115 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'. ~ s ~ 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 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. ~ ~ ~:,> fl ~~~ ~ June 13, 2008 ~ ~ ~~~' ; :,~ ~> A/~{+~ ` ° ~, ~ . ~ 7~4 4+,9,' f ~t~ Steve, ~ ~`'~ ~~:, ~ ~' . ~' ° ~ ~ ~~~si ~}~ Q~ Enclosed is the data for the Wainwright Nos. 1 and 2 wells. I am submitting everything the BLM has on the two wells and it may be all the data that has been collected. As you know, the USGS is the operator on these wells now. As a partner with the USGS I am submitting this data for them. They are currently up in Wainwright busy with this season's drilling program and will not be able to provide any more data until well after the June 23rd deadline mentioned in AOGCC Order No. 600. The contact for the USGS is Art Clark, (303) 236-5793, aclark~a~,usgs.gov. He will be back in his office the first week of August. C~-"~~/ Greg J. Noble Energy Section Chief BLM Alaska State Office (907) 267-1429 • Data on CD Wainwright No. 1 Completion Report Form 10-407 Daily Activity Log Copies of all logs run Desorption Data Lithologic Description and column Water quality analysis Gas analysis from desorbed gas Wainwright No. 2 Completion Report Form 10-407 Daily activity log Copies of all logs run Water quality analysis ~~ ~ i Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Wednesday, June 11, 2008 2:42 PM To: 'Tom Mortensen' Cc: 'Arthur C Clark'; 'Greg_Noble@ak.bim.gov' Subject: RE: Wainwright CBM. Wainwright #1, Compietion Report. Tom, The Well Completion Report form received electronically was not signed. The Commission requires all submitted forms to have original signatures. I just sent an email to Greg Noble that contains a listing of data lacking for Wainwright 1 and 2. I believe Greg is handling the compiling and submitting of missing data. You might cross-check with him to prevent any duplication of reporting effort between you, Greg, and Art Clark. Let me know if I can help further. Steve Davies AOGCC 907-793-1224 -----Original Message----- From: Tom Mortensen [mailto:tom@mortensen.com] Sent: Wednesday, June 11, 2008 12:35 PM To: Davies, Stephen F (DOA) • Cc: Arthur C Clark; Bob Fisk@ak.blm.gov; Greg_NobleC~ak.blm.gov; Teresa Imm Subject: Wainwright CBM. Wainwright #1, Completion Report. Steve, On June 5th I received a copy of AOGCC Conservation Order #600_ The order is dated May 23, 2008 and regards the coal bed exploration wells Wainwright #1 and #2 (drilled in 2007). The Conservation Order was forwarded top me by BLM. I noted in condition ##10 on page 4 of 5 that well completion information for the 2007 drilling is required prior to June 23, 2008. To the best of my knowledge, the required information was previously submitted to AOGCC (see email string below). The required information is being resubmitted in the attached PDF file. Please contact me if you have any questions or require any additional information. Regards, Tom Mortensen 907-345-5789 tel. 907-345-3575 fax. >Date: Fri, 09 May 2008 11:22:41 -0800 >To: "Davies, Stephen F (DOA)" <steve.davies@alaska.gov> >From: Tom Mortensen <tom@mortensen.com> 1 6/11/2008 2:53 PM >Subject: Wainwright CBM. ~nwright #1, Completion Report. • >Cc: Arthur C Clark <aclark@usgs.gov>, Bob Fisk@ak.blm.gov, >Greg_Noble@ak.blm.gov, Teresa Imm <timm@asrc.com> > > >Steve, > >Attached is a copy of the Well Completion Report obtained from BLM. The >file is in Excel. I expect to get a lithologic column in PDF on Monday >(this is a change from the earlier estimate of today's delivery of the log). > > >Tom M. > >------- > > >At 10:37 AM 5/9/2008 -0800, you wrote: » Tom , » »No, nothing was submitted for Wainwright 1 beyond what I described in my »email yesterday (see belaw). » »I checked with our librarian, our geotech, our database of well »information, and then looked through the well files and confidential »vault myself, but did not find the required Well Completion or »Recompletion Report (Form 10-407), lithologic or sample log, or sample »descriptions. » »Thanks for your help, » » Steve Davies »AOGCC » »-----Original Message----- » From: Tom Mortensen [mailto:tom@mortensen.com] » Sent: Thursday, May 08, 2008 6:13 PM »To: Davies, Stephen F (DOA) »Cc: Bob Fisk@ak.blm.gov; Arthur C Clark; Teresa Imm » Subject RE: Wainwright CBM. Request to ADEC for Exemption under ODPCP. »Letter Attached. » » » Steve, » »I contacted both BLM and USGS about the missing well information in the »AOGCC files. »I've been told that Beth Maclean had all required information turned »into »AOGCC last year for Wainwright 1. » »Tom Mortensen » »------------- » »At 12:27 PM 5/8/2008 -0800, you wrote: » >Tom, » > »>I cannot complete AOGCC's evaluation and determination concerning oil »>discharge prevention and contingency planning (ODPCP) without geologic »>information from the Wainwright 1 exploratory well. » > »>I just checked AOGCC's Wainwright 1 well history file for this »>information. The file contains only the permit to drill documents, an »>operational summary for Wainwright 1 anc2 2, and general correspondence. 2 6/11/2008 2:53 PM »>It does not contain thc~quired Well Completion or Reco~etion Report »>(Form 10-407), lithologic or sample log, or sample descriptions. »Without »>these, I am unable to complete the ODPCP evaluation for the additional » >Wainwright exploratory wells. » > »>Could you please contact BLM or USGS and have them provide the required »>Wainwright 1 geologic information to AOGCC? » > » >Thanks, » > » >Steve Davies » >AOGCC » >907-793-1224 » > » > » > » >-----Original » >Message--------------------- --- ----------- » > » >From: Tom Mortensen [mailto:tom@mortensen.com] »>Sent: Monday, May 05, 2008 4:47 PM »>To: Davies, Stephen F(DOA); Saltmarsh, Arthur C(DOA) » >Cc: Saltmarsh, Arthur C (DOA) »>Subject: Wainwright CBM. Request to ADEC for Exemption under ODPCP. » >Letter Attached. » > » > » >Steve, Art: » > »>Attached is your copy of the letter sent to ADEC requesting an » exemption » >to »>the ODPCP and FR requirements for the proposed CBM exploration wells at » >Wainright. » > » >Regards, » > » >Tom Mortensen » >907-345-5789 ~ 3 6/11/2008 2:53 PM ~ • Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Wednesday, June 11, 2008 2:31 PM To: 'Greg_Noble@ak.bim.gov' Cc: Okland, Howard D (DOA) Subject: RE: Wainwright Wells - Information Needed Greg, In response to your phone request this morning, I3oward 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 of 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 descriptian" 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 dalrs 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 clearly 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 all 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, metnod 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 also require most of these data items for the Wainwright 3, 4, 5, 6, 7, 8, and 9 wells in a timely manner. See the permit to drill application for each well for any exclusions. 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 Commissian 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: Tom Mortensen [tom@mortensen.com] Sent: Wednesday, June 11, 2008 12:35 PM To: Davies, Stephen F (DOA) Cc: Arthur C Clark; Bob Fisk@ak.bim.gov; Greg_fVoble@ak.blm.gov; Teresa fmm Subject: Wainwright CBM. Wainwright #1, Completion Report. Attachments: Completion Report Wainwright 1.xls; Completion Report Wainwright 1 resubmit June 11 2008.pdf; AOGCC Order No. 600.pdf; ATT52481.txt ~~ A . . F ~ ~` ~=~.. ~.~ ~ Completion Report Completion Report AOGCC Order No. ATT52481.bct (244 Wainwright 1... Wainwright 1... 600.pdf (174 K... B} Steve, On June 5th I received a copy of AOGCC Conservation Order #600. The order is dated F~fay 23, 2008 and regards the coal bed exploration wells Wainwright #1 and #2 (drilled in 2007). The Conservation Order was forwarded top me by BLM. I noted in condition #10 on page 4 of 5 that well completion information for the 2007 drilling is required prior to June 23, 2008. To the best of my knowledge, the required information was previously submitted to AOGCC (see email string below). The required information is being resubmitted in the attached PDF file. Please contact me if you have any questions or require any additional information. Regards, Tom Mortensen 907-345-5789 tel. 907-345-3575 fax. >Date: Fri, 09 May 2008 11:22:41 -0800 >To: "Davies, Stephen F (DOA)" <steve.davies@alaska.gov> >From: Tom Mortensen <tom@mortensen.com> >Subject: Wainwright CBM. Wainwright #1, Completion Report. >Cc: Arthur C Clark <aclark@usgs.gov>, Bob_Fiskc~ak.blm.gov, >Greg_Noble@ak.blm.gov, Teresa Imm <timm@asrc.com> > > >Steve, > >Attached is a copy of the Well Completion Report obtained from BLM. >The file is in Excel. I expect to get a lithologic column in PDF on >Monday (this is a change from the earlier estimate of today's delivery of the log). > > >Tom M. > >---------------- > > >At 10:37 AM 5/9/2008 -0800, you wrote: »Tom, » »No, nothing was submitted for Wainwright 1 beyond what I described in 1 6/11/2008 2:53 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.d70 and 20 AAC 25.071 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 Page 1 of 2 ~ ~ Davies, Stephen F (DOA) From: Arthur C Clark (aclark@usgs.gov] Sent: Sunday, May 11, 2008 9:37 AM To: Davies, Stephen F (DOA) Subject: RE: Wainwright #1 strat column Hi Steve, The only description we have are the original N200 core log sheets which are pretty general in nature and have not been computeriaed. Our hope was/is that someone from DGGS or DOG would want to do detailed description at some point but that hasn't happened yet and we haven't had timeJresources to do it ourselves. The core is currently stored in the USGS warehouse in Anchorage and will be moved to the Eagle River repository later this year. I did photograph the core in the warehouse last fall but the core was not split and the pics are definitety tess th~n professional quality. There were no signs of liquid hydrocarbons in the core. Art -----"Davies, Stephen F (DOA)" <steve.davies@alaska.gav> wrote: ----- To: Arthur C Clark <aclark@usgs.gov> From: "Davies, Stephen F (DOA)" <steve.davies@alaska.gov> Date: 05/09/2008 04:27PM Subject: RE: Wainwright #1 strat column Art, Do you have detailed lithologic descriptions from drill cuttings ar samples? If so, could we get a copy? Did you see any oil staining, sample or cut fluorescence, solvent cut, or any other indicator of liquid hydrocarbons while drilling either Wainwright 1 or 2? Thanks, Steve Davies AOGCC 907-793-1224 From: Arlfiur C Clark [maitto:aclark@usgs.gov] Sent: Friday, May 09, 2008 11:32 AM 5/2912008 Page 2 of 2 To: Tom Mortensen ~ Cc: Davies, Stephen F(DOA); Bob Fisk@ak.bim.gov; Greg_Noble@ak.blm.gov; Subject: Re: Wainwright #1 strat column ~J Teresa Imm Tom/Steve, Attached is the strat column of the 2007 Wainwright CBM well. Let me know if you need anything else. Art artClark Supervisory Geologist U.S. Geologicai Survey Denver , CO phone:303-236-5793 aclark usgs•gov 5/29/2008 Wainwright, AK ~ Core descxiption ~ o.qn m~ „ EXPLANATION 0 S~nGYwie "'-~ FonrtYniWbr 0 SNatrxie,ehaM(mWqo~),tlayelonaan0 ~. CmotYmlroWm InrorlerMmeed very MeyreMea mMmofn . l ~ Coel _ MonzoMa betltling or mrtiretbn Q G~faecea~wMab/mayMlaEeW ~ : CmeabeEtling ~ LoY wrc INnvek ~ CoMOrteE EefkNrg • ~ ~ SIM m muE Wpn Y y Burtoxs or ElodrtOeteA vKerve4 r SiEefkkconaxtiormofintm~a4MY0Mpk ~110MO1e. YlbdotM. M CleyMOne ,~,.a,3.5 ; r ~ 9 ~. ~ • Page 1 of 1 Davies, Stephen F (DOA) From: Arthur C Clark [aclark@usgs.gov] Sent: Friday, May 09, 2008 11:32 AM To: Tom Mortensen Cc: Davies, Stephen F(DOA); Bob_Fisk@ak.blm.gov; Greg_Noble@ak.blm.gov; Teresa Imm Subject: Re: Wainwright #1 strat column Attachments: Wainwright stratigraphic column.pdf Tom/Steve, Attached is the strat column of the 2007 Wainwright CBM well. Let me know if you need anything else. Art Art Clark Supervisory Geologist U.S. Geological Survey Denver, CO phone:303-236-5793 aclark~vu_sgs.gov 5/9/2008 ~ ~ Davies, Stephen F (DOA) From: Tom Mortensen [tom@mortensen.comJ Sent: Friday, May 09, 2008 11:23 AM To: Davies, Stephen F (DOA) Cc: Arthur C Clark; Bob Fisk@ak.bim.gov; Greg_Noble@ak.blm.gov; Teresa Imm Subject: Wainwright CBM. Wainwright #1, Completion Report. Attachments: Completion Report Wainwright 1.xls; ATT2789263.txt ~ ~ Completion Report ATT2789263.bct Wainwright 1... (252 B) Steve, Attached is a copy of the Well Completion Report obtained from BLM. The file is in Excel. I expect to get a lithologic column in PDF on Monday (this is a change from the earlier estimate of today's delivery of the log). Tom M At 10:37 AM 5/9/2008 -0800, you wrote: >Tom, > >No, nothing was submitted for Wainwright 1 beyond what I described in >my email yesterday (see below). > >I checked with our librarian, our geotech, our database of well >information, and then looked through the well files and confidential >vault myself, but did not find the required Well Completion or >Recompletion Report (Form 10-407), lithologic or sample log, or sample >descriptions. > >Thanks for your help, > >Steve Davies >AOGCC > >-----Original Message----- >From: Tom Mortensen [mailto:tom@mortensen.com] >Sent: Thursday, May 08, 2008 6:13 PM >To: Davies, Stephen F (DOA) >Cc: Bob Fisk@ak.blm.gov; Arthur C Clark; Teresa Imm >Subject RE: Wainwright CBM. Request to ADEC for Exemption under ODPCP. >Letter Attached. > > >Steve, > >I contacted both BLM and USGS about the missing well information in the >AOGCC files. >I've been told that Beth Maclean had all required information turned >into AOGCC last year for Wainwright i. > >Tom Mortensen > >--------- 1 ~ ~ Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Thursday, May 08, 2008 12:28 PM To: 'Tom Mortensen' Cc: Saltmarsh, Arthur C (DOA) Subject: RE: Wainwright CBM. Request to ADEC for Exemption under ODPCP. Letter Attached. Tom, I cannot complete AOGCC's evaluation and determination concerning oil discharge prevention and contingency planning (ODPCP? without geologic information from the Wainwright 1 exploratory well. I just checked AOGCC's Wainwright 1 well history file for this information. The file contains only the permit to drill documents, an operational summary for Wainwright 1 and 2, and general correspondence. It does not contain the required Well Completion or Recompletion Report (Form 10-407), lithologic or sample log, or sample descriptions_ Without these, I am unable to complete the ODPCP evaluation for the additional Wainwright exploratory wells. Could you please contact BLM or USGS and have them provide the required Wainwright 1 geologic information to AOGCC? Thanks, Steve Davies AOGCC 907-793-1224 -----Original Message------------------ ------------------------ From: Tom Mortensen [mailto:tom@mortensen.com] Sent: Monday, May 05, 2008 4:47 PM To: Davies, Stephen F(DOA); Saltmarsh, Arthur C(DOA) Cc: Saltmarsh, Arthur C (DOA) Subject: Wainwright CBM. Request to ADEC for Exemption under ODPCP. Letter Attached. Steve, Art: Attached is your copy of the letter sent to ADEC requesting an exemption to the ODPCP and FR requirements for the proposed CBM exploration wells at Wainright. Regards, Tom Mortensen 907-345-5789 1 ~ ~ ~ ~ Agency 939886.00 608 133.00 Operator 939932.00 6084848.00 ~ Difference -46.00 4285.00 ~ ~,~~~ ~~1VED - <•` w ~ ~ STATE OF ALASKA • auG 2 2 2007 ~~+j"- ~°~ ALASFtA OIL AND GAS CONSERVATION COMMI~StON WELL COMPLETION OR RECOMPLETION REPOR~~a~#c6Vfl8dG61~ns. Commission M 1 a. Well Status: Oil ~ Gas ~ Plugged ~ Abandoned ~ Suspended 0 20AAC 25.105 20AAC 25.110 GINJ~ WINJ~ WDSPL~ WAG ^ Other^ No. of Completions: ~ b. weu ciass: Anchorage Development ~ Exploratory Q ervice ^ Stratigraphic Test~ 2. Operator Name: Burearu of Land Management - Deparment of the Interior 5. Date Comp., Susp., or ~;~ Aband.: 7/5/2007~~ 12. Permit to Drill Number: 207-065 3. Address: 222 West Seventh Ave., #13, Anchorage, AK 99513 6. Date Spudded: 6/11/2007 13. API Number: 50-301-20003-00 4a. Location of Well (Governmental Section): Surface: 70 37;56.6: 160 01;282" 900' FNL, 2278' FEL 7. Date TD Reached: 6/27/2007 14. Well Name and Number: Wainwrightl-2007 Top of Productive Horizon: Sea 24, T15N, R32W, UM 8. KB (ft above MSL): 30 Ground (ft MSL): 25 15. Field/Pool(s): N/A Total Depth: Vertical Well - 1613 ft 9. Plug Back Depth(MD+TVD): 950 4b. Location of Well (State Base Plane Coordinates, NAD 27): Surface: x- g: ~32 +~ y- ~p$ y$ 5~S . S Zone- 7 10. Total Depth (MD + ND): 1613 ft 16. Property Designation: City of Wainwright TPI: x- y- Zone- Total Depth: x- ~'~~ y- ~ Zone- 11. SSSV Depth (MD + ND): 1613 Ft. 17. Land Use Permit: 18. Directional Survey: Yes ~ No Q /p. /7 , p~ (Submit electronic and printed information per 20 AAC 25.050) 19. Water Depth, if Offshore: N/A (ft MSL) 20. Thickness of Permafrost (TVD): -- 900 ft 21. Logs Obtained (List all logs here and submit electronic and printed intormation 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 ND HOLE SIZE CEMENTING RECORD AMOUNT FT TOP BOTTOM TOP BOTTOM pULLED 6 5/8 .28u ~::all sch 40 0 75 0 75 8.75" cement from bottom-up 2.5" PVC 0 940 0 940 5.625" cement from 100'-up 3.5" 7.8 957 1613 957 1613 4.25" bentonite grout 23. Open to production or injection? Yes ~ No Q If Yes, list each 24. TUBING RECORD interval open (MD+ND of Top & Bottom; Pertoration Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD) N/A 25. ACID, FRACTURE, CEMENT SQUEEZE, ETG DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED N/A 26. PRODUCTION TEST Date First Production: N/A Method of pperation (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 ^ 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.descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. Continuous core collected from 75'-1605'. Core currently stored in USGS warehouse in Anchorage, eventually to be movey~ te repository in Eagle River and will be public data. pt.. ," S `~'9,~`~ 0 ~ n^7~ f""/p' ~?. 7 ~~ 5 ~0 °.~ / ~~ Form 10-407 Revised 2/200~,,~ ~ ~ ~ I ~v /""~ ~.ONTINUED ON REVERSE ~ ~~`~rt ~~~, • • 28. GEOLOGIC MARKERS (List all formations and markers encountered): 29. FORMATION TESTS NAME MD TVD Well tested? ^ Yes ~ No If yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if needed, Permafrost - Top 0 0 and submit detailed test information per 2Q 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: Beth Maclean Title: Geologist Signature: ~, Phone:907-271-1985 Date: 8/16/2007 INSTRUCTIONS General: This form is designed tor submitting a complete and correct well completion report and log on all rypes 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 /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 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 . Wainwright-1 daily drill record DATE ACTIVITY June 9, 2007 Arrive Wainwright June 10, 2007 Site preparation June 11, 2007 Drill 8 3/4" hole to 45' June 12, 2007 Drill 8 3/4" hole to 75'. Set and cement 6 5/8" surface casing June 13, 2007 Cement cure, prepare to core June 14, 2007 core to 176 ft ~ June 15, 2007 core fo 350 ft June 16, 2007 core to 525 ft June 17, 2007 core to 725 ft June 18, 2007 core to 865 ft June 19, 2007 core to 1025 ft June 20, 2007 core to 1188 ft June 21, 2007 core to 1275 ft June 22, 2007 core to 1366 ft June 23, 2007 core to 1375 ft June 24, 2007 core to 1433 ft June 25, 2007 core to 1470 ft June 26, 2007 core to 1560 ft June 27, 2007 core to 1613 ft. Steel breaks at 957 ft June 28, 2007 fishing: log well through broken rods June 29, 2007 fishing: begin reaming to 5 5/8" June 30, 2007 finish reaming to 957 ft .luly 1, 2007 standby July 2, 2007 cement from 957 ft and set deflection wedge July 3, 2007 attempt to drill past wedge July 4, 2007 circulate: standby for bit subs to arrive from Prudhoe Bay July 5, 2007 attempt to drill past wedge. Abandon attempt. Set closed PVC temperature monitor well to 940 ft ~ ~ ~ - ~ ~ Page 1 of 3 a,a~•o~ Davies, Stephen F (DOA) From: Arthur C Clark [aclark@usgs.gov] Sent: Wednesday, July 25, 2007 5:42 PM To: Davies, Stephen F (DOA) Subject: RE: AOGCC sundry request Will do. I think Beth plans on walking over the Permit to Drill Application on Friday. _____~~pavies, ~tephen F (DQA)" Csteve.davies@alaska.gov> wrofie: _____ To: Arthur C Clark <aclark@usgs.gov> From: "Davies, Stephen F (DOA)" <steve.davies@alaska.gov> Date: 07/25/2007 06:47PM Subject: RE: AOGCC sundry request Art, I would recc~mrr~end hc~ldin~ off subrrritting the completion report for the second Wainwright well until the permit appficaiton is a~~roved. ~he permit to drill will have an API nurrtber and a permit to cirill numt~er tl~at are n~ec~ed fnr the completion report. Far nearly a([ w~re4(s in ,~laska, an "A" suffix in the we1! number is used to denote a redrill {sametimes called a°'sidetrack'°}. I v+~ould suggest that you narr~e the weN Wainwright 2 to avoid any confusion the 1A number might cause. PCease let me know if you have adtiitional questions. Thanks, Steve I~avies A,OGCC 9fJ7-793-1Z24 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 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 _____~Fpavies, Stephen F {DO~)„ <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, 7/26/2007 ~ ~ Page 2 of 3 Jerry is earrect, all informatian from the two well bares rt~ust be treated and labeled as separate wefis. I have to reuerse my stream-of-conciousness discussion vuith Jerry: per 20 AAC 25.OC35, a permit to dril( application will be required for Wainv+rright 2, even though it is afker-the-fact. I n~ed to assign a permit to drill number and an APT number fior the second weEl based on the application, so the sooner the better. Completion reports will also be required for both wells, and ali data and samples must be labeled clearly sa that there is no confusion as to what data came frt~m which well. All other requirerrrents of 20 AAC 25.t}71 apply. The Commission still requires one paper print of all mud and wel{ logs. However, in iieu of a sepia print for each log, we prefer to receive digital files (fog image in P[7~ or PDS format plus the log curve data in LAS fc~rrr~at). If BLMjUSGS would like tt~ waive the 24-month confidentiality periot~ for informatior~ concerning these wells, then per 20 AAC 25.537(d); Except as provided by {a) of this sectic,n, the reports and information required by this chapter ta be filed by the operator will be kept canfidential by the commissian for 24 months following the 30-day filing period after well completian, suspension, or abandanment uniess the opera~or__gives wr~~ten._anc! unrestricted_permissian to_refease afl_of the__reports and_information__afi_an_._earl~e_r date... Upon notification that the commissioner of the Department af Natural Resources has made a finding that the required reports and inforrnation from a well contain significant information relating to the valuation of unleased fand in the same vicinity, the commission will hc~lci the reparts and information confidentia[ beyond the 24-month period and unti! notified by the cornmissioner of the Department of Natural Resources ~o release the reports and inforrnatian. Please let me knaw if yau have any questions. Steve ~avies - Alaska Oil and Gas Conservation Commission 907-793-122~ 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 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 1a. 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. inal Messacae ----- shearer~alaska. net t: Monday, July 23, 2007 9:52 AM ject: Re: AOGCC sundry request rry, Sorry to hear you're not working on a BLM contract any longer. Your knowledge and help in the 7/26/2007 ~ ~ Page 3 of 3 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 compfetion 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 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 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 ~lark 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 fill you in on the details. Tha n ks, Art 7/26/2007 ~ Davies, Stephen F (DOA) ~ Page 1 of 3 ..v?• a~.t" From: Davies, Stephen F (DOA) Sent: Wednesday, July 25, 2007 4:47 PM To: 'Arthur C Clark' Subject: RE: AOGCC sundry request Art, I would recammend holding aff submitting the completion report for the second 1Nainwright well unti3 the perrrtit applicaiton is approved. The permit to drill wil( have an API number and a permit ta drill number that are needed for the compBetion report. For nearly all wells in Alaska, an "A" suffix in the well nurr~ber is used to denote a redrill {sometimes called a"si~etrack"). I would suggest that y€~u narne the well Wainwright 2 to avoid any confusion the 1A number might cause. Please let me know if you have additional questions Thanks, St~ve 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.bim.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 _____X~pavies, Ste~hen F (dC1A}" <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, 3erry is correct, all information frorr~ the two well bores must be treated and labeled as separate wells. I have to reverse my stream-of-co-~ciousness discussion with Jerry: per 20 AAC 25.C3Q5, a permit ta dril! a~aplication will be required for Wainwright 2, even though it is after-the-fact. I need to assign a permit to dril! nurr-ber and an API n~mber for the secQnd well based an the applicatior~, so the saoner the better. 7/26/2007 ~ ~ Page 2 of 3 Completian reports will also be requared for both wells, and a!I data and sampfes must be label~d~clearly so that there is no confusion as to what data came frnm which well. All other requirements c~f 20 AAC 25.{?71 apply. The Commission still requires one paper print af al( mud and we8[ logs. However, in (ieu of a sepia print for each log, v,re prefer ta receive digital files ([og image in PDF or PdS format plus the log curve data in LAS forrnat). If BLM/USGS vvould like to waive the 24-manth confidentiality periati for inforrnation concerning these wells, then per ZO 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 ~uill be kept confidential by the commission for 24 months follo~ving the 3Q-day filing period after well completion, suspension, or abandonment unless the_operator gives written and unrestricted permiss.ian to..._refease afl of_the ~eports_and infarm~t~on at_ an earlier date__• Upon notification that t~e eommissioner of the ~epartmen~ of Natural Resources has made a finding that the required reports and ir~formation fram a well contain significant information relating to the valuation of unleased lar~d in the same vicinity, the comrr~issior~ will hold the reports and information confidentia( beyond the ~4-month period and until notified by the commissianer of the Qepartr~rent of Natural Resources to release the reports and information. Please let me knaw if you have any questions. Steve Davies Alaska Oi! and Gas Canservation Commission 9(37-793-1224 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 luck. --- On~inal Message - ~.. ,: ~ ~ y~~ ~~ ~~~ ; ~. ~f+~t~i ~~~~ CJ'C~[at`~i .:~: %; ~.,.~ ,. . ~ ~•.,~~ ~ .. , ., .... . ... . .. .. .. , ~.. ..,: 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? 7/26/2007 ~ Page 3 of 3 Plugged, Abandoned, Suspend~ed, 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 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 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. )erry ----- Original Message ----- From: Arthur C Clark To: Gerald Shearer Sent: Friday, )uly 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 fill you in on the details. Thanks, Art 7/26/2007 • ~ Page 1 of 3 Zc~ 7• dG S- 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.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 (~OA}" <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, lerry is correct, all information from the two well bores must be treated ar~d labeled as separate v~ells. I have to revers~ r~y stream-o~-conciousness discussion with 7erry: per 2C~ AAC 25.U05, a permit to drill application will be required for Wainwright 2, even though it is after-the-fact. I need to assign a permit ta drill number and an API number for the secand wel( based on the application, so the soor~er the better. Corripletion reports will aiso be required far both wells, and all c~ata and samp(es must be labeled clearly so that there is na confusion as to what data came from v~hich well. AI1 other requirer~ents of 20 AAC 25.071 apply. The Corr~rnission still reqtaires one paper print af al} mud and well logs. However, in lieu of a sepia print for each log, we prefer to receive digital ~iles (iog image in PDF ar PDS farmat plus the log curve data in LAS format), If BLM/USGS vuould like to waive fihe 24-manth confiden~iality period for infiormation concerning these wew~s, then per 20 AAC 25.~~~{d): Except as provided by (a} of this section, the reports and information required by this chapter to be filed ~y the operator arvill be kept confidential by the corx~mission for 24 mon~hs following the 3t~-day ~iling period after well completion, suspensian, or abandonment unless_the_ operator gives written and unrestricted permissior~ to__release all flf the reparts_ and i_nformation at an earlier date_. Upon no~ificatian that the commissioner of the Department af fVatural Resources has made a finding that the required reports and information from a well cantain significant inform~tion relating ta the vafuation of unleased land in the sarne vicinity, the cammission will hold the reports and information confidential beyond th~ 24-month period and until r~c~tified by th~ commissioner of the Department of Natural Resources ta release the reports and information. Please let me know if you have any questians, 7/26/2007 ~ ~ Page 2 of 3 Stev~ Davies Alaska Oil and Gas Conservatian Commission 9Q7-793-12Z4 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 wel-. 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 1a. 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 - ~ , ~~'~'~ti~ ~~t~l' ~ ~~~~~C. ; ~ ~E ~. ~ ~ ~ z z ~ '; ~~... . . ..~~ . ,,,i,,,,~~? f ,,,..,>:, c.. < . . : . , .: ; . . : . .: ... , i , ~y' .~,H„~ .s,,,,,, JF . . . . . . ... . ,.,,.,, ,;, , „ , „ > . ::~ To. shearera~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 <shearer@alaska.net> 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. I just talked to Beth. I believe what you will need is to complete the AOGCC "Completion Report". The placing of a 7/26/2007 Page 3 of 3 thermister string should not r• ire a sundry request since it was per•mitted 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, ]uly 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 fill you in on the details. Thanks, Art 7/26/2007 r1 L_J . Page 1 of 2 2b~~O~S 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.bim.gov Subject: RE: AOGCC sundry request Art, Jerry is correct, all information from the two well bores must be treated and labele~ as separate wells. I have to reverse my stream-of-conciousness discussion with Jerry: per 20 AAC 25.OQ5, 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 dri(I number and an API number for the second well based on the applicatian, sa the soaner the better. Completion reports will also be required for k~oth wells, and all data and samples must be labeled clearly so that there is no confusion as to what da~a came from which well. AII ather requiremer~ts 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 P[3S format plus the log curve data in LAS format). If BLM1l1SGS would like to waive the 24-month confidentiality period for inforrr~ation cancernsng these welis, ther~ per 20 AAC 25.537(d}: Except as pr~vided by (a) of this section, the reports and informatinn required by this chapter to t~e filed by the operator will be kept canfidential ~ay ~he cornmission for 24 months following tha 3(}-tlay filing period after weil completion, suspension, or abandonment unless the_operator gives_written_and unrestricted permission._to rele..a..s....e.. all of the r~ports and information at an earlier date. Upon notificatian that the commissioner of the departnne€~t of Natural Resources has made a finding that the required reports and information from a well eontain significant infc~rrttation relating to the valuation of unleased land in the same vicinity, the comrr~ission wi{I hold the reports antl infc~rmation confidentia! beyond the 24-month period and until notifiied by the commissioner af the C3eparkment of Natural R~sources to release the reports and information. Please Bet rr~e know if you have any ques#ions. 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 1a. 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. 7/26/2007 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.neU 07/20/2007 06:40 PM art, To ~.Arthur C Clark" <aclark@usgs.gov> ~ 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: Ar~l~ur C Clark To: Gerala 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 7/26/2007 ~ ~ Davies, Stephen F (DOA) Page 1 of 2 sZ,O~ ~ O~i_~ From: shearer@alaska.net Sent: Monday, July 23, 2007 12:57 PM To: Arthur C Clark Cc: Beth_Maciean@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 1a. 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. Onginal Message ~ , .. ~s~&~~~ rr ~ ~ ~. "~r ~ i '~, ~ ~~ ~ ~ s .: - .y ...: ~ ~.. , ~. ~,~`~~ ~C~hL~r~~,,~ .: ~~ ' . r~, ~ ~~ . .. ..` . .. , .. ~ .. ,~ . ;~_; ,....~.~...e ~._, . ~ . v ~ , 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 <shearer@alaska. net> 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. 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 7/26/2007 ~ ~ Page 2 of 2 luck. Jerry ----- Original Message ----- From: Arthur C ~:larlc To: Cxeralci Shearei 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 7/26/2007 ~ R' * ~'` /^7 ~ ~ v t~ ~ / ~~~ Wainwright-1 and 2 Daily Drilling Logs Friday June 8, 2007: Drill crews arrive in Wainwright 6/9/07-6/ll/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. ~t15!~7: ~~re 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'. ~~~~~~~~~ ~J~ C; ~ ~ iC?f~7 ~Ilaska~ Dii ~ Gas Con~;; ~~~r~~i~sion Anc~rora~e 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 95T to surface. Begin reaming hole to 5 5/8" diameter. 6/29/07: Ream to 900' . ~` ~ °r • • 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 standbgr for c:,ment to cnre. 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 erp~ ~~`' ~ 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 dri115 5/8" hole to 400'. 7/9/07: Rotary drill to 1000'. 7/10/07: Equipment repair. Rotary drill to 1295' and circulate. 7/ll/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. ~-. •,.. .. ~ ~ 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. ~ . Subject: C-plan exemption for Wainwright Well?? From: °Miner, Lydia M {DEC)" <lydia.miner@alaska.gov> Date: Mon, 18 Jun 2007 13:49:56 -0800 To: "Davies, Stephen F (DOA)" ~steve.davies@alaska.gov> Hi Steve - I received a copy of the Permit to Drill issued to BLM for the Exploration Well Wainwright No. 1 BLM has not requested or received a c-plan exemption for this well. I tried to reach Beth Maclean at BLM but I understand she is on the North Slope this week. I did speak to Bill Deal who told me that the we~l is going to be 150Q-2000 feet deep, and they are looking for coal bed methane. I explained that they need a c-plan exemption in order to do this work. Since Beth is on the Slope, I told them I would contact you folks to see if you could issue a determination to me so that I can get an exemption letter written. I spoke to Tom Maunder a couple minutes ago and he suggested that I send you this email. Do you have enough information to issue a determination? If not, I understand and witl let BLM know that they need to provide information to you. Thanks for your assistance. Lydia Miner Alaska Depnrtment of Environmental Conservation Exploration, Production ~ Refineries Section Mar~ger 555 Cordova Street Anchorage, AK 99501 Ph: (90~ 269-7b80 Fax: (94~ 269-7687 Emai I: lydia.miner@alaska.gov C~ • STATE OF ALASKA ALASKA QIL AND GAS CONSERVATIOl~i COMMISSIQN 333 West Seventh Avenue, Suite 100 Anc6orage Alaska 94501. Re: THE APPLICATTON OF The United States Department of the Interior, Bureau of Land Management far an order granting waivers to the bonding requirements of 24 AAC 25.025, blowout prevention equipment requirements of 20 AAC 25.035, wellbore survey requirements nf 20 AA.C 25.050(a)(2), well site seismic survey rec~uirements of 20 AAC 25.Q61(a}, and gas detection requirements of 2U AAC 25.pb6 to allow the drilling, testing, and plugging of the U.S. Dep~-rtment of ihe Interior Wainwright No. 1 exploratory gas well. IT APPEARING THAT: Conservatio~i ~rder No. 582 Wainwright hio. I Exploratory Well ]une 11, 20Q? I. The U.S. Department of the Interior ("USDOI"), Buresu of Land Management {"BLM") by Permit ta Drifl Application No. 247-465 dated Februa~ry 27, 24Q7 And letter dated ~ebruary 28, 2007, which were received by the Alaska OiZ and Gas Conservakion Commission ("Commission") on April 12, 2U07, requested an order waiving the bonding reyuirements of 20 AAC 25,025, binwaut prevendon equipment requirements of 24 AAC 25.035, wellbore survey requirements of 20 AAC 2S.OSQ(a){2), well site seisrnic survey requirements of 20 AAC 25.Q6I(a), and gas detection requirements af 20 AAC 25,066 to allow the drilling, testing, and phigging af the Wainwright No. 1 exploratory gas well. 2. The C~mmission published notice of opportunily for public hearing in the Anchorage Daily News on May 1 l, 2Q07, pursuant to 20 ~AC 25.540. 3. No protests ta or comments on the applicatian or requests fox a hearing were received. FINDINGS: Wainwright No. 1 will be a vertical coal-bed methane e~cploratory well located near the vitiage of Wainwrigi~t, 900 feet from the north line and 227$ feet from the east line of S~ction 2G, Township 1 S North and Range 32 West, Umiat Meridian ("UM„) Z. The only awners of the subsurface estate within 1500 feet of the weli ars USI~C?I and the Alaska Departmenc of Natuxal Resources ("AKDNR"). Conseivation Order SS2 ~ • June i 1, 2007 Page 2 of 2 The Village af Wainwright obtains its drinking water from surface water sources according to ihe Alaska Department of Environmental Conservatic~n, Division of Environmental Health, Drinking Water Pragram and the Alaska Department of Natural Resources Land Ad~ninistration System. The svurces 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 proposed well location. 4. The expect~d depth of the base of permafrost within Wainwright No.l is about 1,000 feet; so, it is unlikely that any subsurface aquifers will be utilized fpr drinking water purposes. On May 31, 2D07, the Commission received a letter frorn the Arctic Slope Regional Carporation ("ASRC"} stating that the USDOI, U.S. Geological Survey ("USGS"} could enter ASRC land to eonduet the WAinwri~ht Coal-bed Methane Project. 6. On 3une 8, 2047, BLM filed a Designation of Operator form, which nanies USGS as the operator for Section 24, Township 15 North and Range 32 West, UM. USDC?I is an ~gency of the United States. 'I'he credit of the United States renders a bond unnecessary for the Wainwright No. 1 explaratory well. The well will be constructed by setting $0' of 6-SJ8" conductor in a 9-7/8" ho1e. 'The planned S-1/4" hole will be eantinuously cored to its proposed total depth. If gas-bearing coal seams are identified, they may be tested. The well may be cornpteted with PVC casing and screens to allow lang-terrn monitoring or testin~ af seleeted coal seam(s}. A rotat'vng drill head will be used. A rotating head seals around the drill stem and directs the annular mudflow to the pits. If gas is encountered, the r~tating head functions as a diverter. A similar rotating head was used successfully aC the Franklin Bluffs No. l exploratory gas well (permit to dritl 205-105). 9. Seismic infarmation near Wainwright No. 1 shows no indication of the presence of shallow gas. In addition, drilling records and mud log information fi-om the nearest exploration wells (Peard Test Well No. 1 and Tunalik No. l, located 25 miles tc~ t(ie east-northeast and 34 miles ro the southwest, respectively) show no indicatioii of abnormal pressure. 10. Wainwright Na. 1 will be drilted with a pariable truck-mounted drilling rig. This equipment has no enclc~sures where methane could accumulate sufficien#l~ to pase a risk of explosion or fire, or where a metlaane detector could practicably be located. coNCLUS~axs: Exceptions to the gas detection requirements of 20 AAC 25.Ob6 are nec~ssary to allow drilling, testing and plugging of the Wainwright No. 1 exploratory gas well. Conservation Order 582 ~ ~ J une I 1, ~Q07 Page 3 of 2 2. Granting exceptions to bonding requirements, blowouf prevention equipinent requirements, wellbore sarvey requirements, and well site seismic survey requirements to allow the drilling, testing and plugging of the Wainwright No. I explaratory gas well is not likely to resutt in waste of hydrocarbans, risk i~arm to human safety or the environment (e.g., frprn an explosion or fire), risk properly abandoning the weil, or jeopardize the correlative rights of persons awning interests in adjoining or nearby tracts of land potentially affected by the proposed well. 3. The requirements of AS 31.05.030(j)(1)(A) do not ap~-ly. ~. Commission approval of the aperator's requested ex~mptions conforms with AS 31.05.060(c)( l) and AS 31 A5.06Q{cx2). WUW, THEREFORE, IT IS ORDERED: BLM's application for exceptians to the t~anding requirements of 20 At~C 25.Q2S, blowout prevention equipment requirements of 20 AAC 25.035, weilbore survey requirements of 20 AAC 25AS0(ax2), well site seismic suzvey requirements of 20 AAC 25.061(a), and gas detection requirements of 2a AAC 2S.t~66 for the purpose of drilling, testing and plugging the Wainwright No. 1 exploratory gas well is granted. 2~ This well may not be hydraulically fractured or tested for production without separate approval from the Commission. DONE ~t Anchorage, Alaska, and dated Jutae 1 I, 2007. Jahn . No , au~man Alas Oil an Ga anservation Cn~nmissian Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Canservation Commission AS 31.t~.08Q qrovidcs that w•ithin 20 days aRcr muipt of wriuen ndice of Ihe entry of an wder, a person atTected by it nu~y ~k with Ihe Commission an appJicaiiai for rahearing. A rcquest for rehearing musti bt received by 4;30 FM on the 23~ day folk~win~ the date of the order, or next working dny if a holiday or wetkend, to be timely filed. The Commissiai shali gca~-t or refuse tix applicatiai in ~vhole or in part ~rithin 10 days_ The Commission ean refuse an applic~ion by rwt acting on it widun che 10-day period. An etfacted person hus 30 days from d~e date the Commission refuses the epplicetion or mails (or ahcrvrise distributes) an ordcr upon rehearing, both bcing the Final ordcr of the Commissi~, u~ ~peat tix decisia~ tu S~erior Coun. Wtiere a request t°or rehcari~g is dcnied by -mnactiai of the CommiSSitm,llie 30-day period Por appeat tn Superior Court runs from ihe dxe on +vhich -- ~ Re: Wainwright Structural Casing ~v~ ^~~ ~ i Subject: Re: Wainwright Structural Casing From: Thomas Maunder <tom maunder@admin.state.ak.us> Date: Mon, 04 Jun 2007 10:24:08 -0800 Tos Gerald Shearer <shearer@alaska.net> CC: Stephen Davies <steve davies@~~dmin.sta.te.ak.us> Gerald, I have spoken with Steve Davies and he relates that things are moving to begin operations on the Wainwright #1. With regard to installing the initial casing string (structural casing in your case) as required by 20 AAC 25.030 (c) (1), having a permit to drill in hand is not required. A permit to drill is required to conduct drilling operations which are defined at 20 AAC 25.990 (23) as "... penetrating the ground below the setting depth of structural or conductor casing, ...". Call or message with any questions. Tom Maunder, PE AOGCC I i of i 6ilaiaoo~ i:z9 pM ~ ~ ~~ ~~ COrT~IEItQATIOI~T ~p11i1~II5~IO1~T Beth Maclean Geologist U.S. Department of Interior, Bureau of Land Management 222 W. 7~ Avenue, Suite 13 Anchorage, AK 99513-7504 SA/d,4hd P,4ulV, Go-/ERNOl2 333 W. 7thAVENUE, SUITE 100 ANCHORAGE,ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907}276-7542 Re: Exploratory Well Wainwright No. 1 Bureau of Land Management Permit No: 207-065 Surface Location: 900' FNL, 2278' FEL, SEC. 24, T15N, R32W, UM Bottomhole Location: 900' FNL, 2278' FEL, SEC. 24, T15N, R32W, UM Dear Ms. Maclean: Enclosed is the approved application for a permit to drill the above-referenced exploration 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 have 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 suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. Approval to test and commence regular 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. Conservation Order No. 582 (attached) addresses exemptions requested by the Bureau of Land Management associated with the drilling of this well. Except as provided in this permit, operations must be conducted in accordance ~;th a~ 3~,n5~ Tit1P 7Q~ C_;h~~tPr'~~ nf thP Al~eka ArlmZnigtrati~~P rnr1P ;c,~,~ 2Q 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. ~ ~ Permit No: 207-065 June l 1, 2007 Pa~e 2 of ? When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659- 3607 (pager) . ~Sincerely, ~ hn . Norman hairman DATED this 11 th day of June, 2007 cc: Department of Fish 8s Game, Habitat Section w/o encl. Department of Environmental Conservation w/ o encl. STATE OF ALASKA KA OIL AND GAS CONSERVATIO~! C ISSION ~ ~ ~ PERMIT TO DRILL ~ f~, 20 AAC 25.005 ( t~ R~CEIV~D AC~R 1 2 2007 ta. Type of Work: E?n'~ ~ RedriN ~] Re-entry ^ 1 b. Curt~nt WeU Ck~s: Straf~phic Test ~;, S~~•o7 ~ /''~!-''(-~b~~ple Zone ^ D~ebpment Oil ~ p~nelop~nt Gas [] Singie Zone ^ 7 a Specify if w~eN is proposed for. Coalbed M~~ ~~t ~~S~~fM11S~t1 £~sne~e c~as ~chora e 2 C~or Narr~: Bt~ af Land A~ment - DOt 5. Bond: Bianket ~ Sing~ Well ~ Bond No. 11. Well Name and Numher: WairnarrigM -1 3. AdcNess: 712W_ &th Av. #13, Ar~horage, AK 9,9513-7504 6. Proposed Depth: MD: 2,500' ~: 2,5~' 12. FielcNPoot(s): 4a_ t,or.~ion of Welt (Govemmental Section): ; , Sevface: 70 3T 56.6" 160 a1'28.2" 9YX3 ~~/L ZZ7g ~~L r 7. Properly pPS~n~ion: CR~r of Wairnwight ~ Top+~ Productive Horizon: ~~~ 2~~'T/SN~ R~2~ ~ ~~~1 ~ V u~'^~ t c_~2~~ lcs i'_.l ~ ~.5'!~ S• ~~ . C_'~ 7 8. Land Use Permit: 13. Appropmate Spud Date: - Tota! E)ep~h: ,~' ~ ~ ~C``U'"7 9. Acres in PropertY: 14. Qistance to Nearest proper'hi. 4b. Loc~tion of WeN (State Base Plane Coordinates): Stxface: x- y- , z~ 10. KB Elevadion ~, {HeigM ahove GL): ~CU ~~~ fcet 15. Distance M N~r~ Well Within Pooi: 1& Deviated wet~: ifickoff d~th: fe.et Ma~dmum Hde Angle: degre~ 17. tu~dmum Antieipated Pressures in psig (see 20 AAC 2~.036} Downhole: 1~2 SurFace: Q 18. Ca.si~g Program: Specifications Top - Setti~9 Depth - Bottan CemeM QuaMity~ c.t. or sacks Ftote Casing WeigM • Grade Coupl~g Length MD TVD MD ND (ir~luding at~e c~ta) 9 7!$ 6 5J8 18.97 ppf 20 0 8(3 30 Cu.ft. - Set ~eui cerr~ent 4t}~80 feet Ws. t9. PRESENT WELL CONDITION SUMMARY (To be compieted for Redrill and Re-E~y Operaticros) Tdal Qepth MD (ft): Tatai Depth TVD (ft): Ptu~ (m~st~red) : Effect. De~h AAD {ft): Effect. Depth ND (ft}: Junk (m~sur~d): Casing Length Size Cernent Vol~ne MD ND eorMuctor/Stn,~ural Surface i~rrr~adiate Prodt~ctior- lir~er Perf~ation Depth MD (ft): Perfaation De~h ND (R): Z0. Attachments: FiGng Fee 0 BOP Skefch ^ Property Plat Q Diverter Sketch ~ Qrill'ing Program ~ Time v. Depth Plot ~ Shallow Hazard Ar~lysis [~ S~bed Repwt ^ DriN~g Fhid Progtarn ~ 20 AAC 25.050 requiremer~s ^ 2t _ V~ Approval: Commission Repres~tative: 22 1 hereby c~rtify that the foregoing is true and correct. Pr`s~ted Name Beth Macl~n Si~afure ~~~, Date Contact TiUe Geobgist Pt~ 907-271-1985 Date Z~ ~~ Co rmtissiai Use Only P~[m~ ~ Drili Number ~~"~/~ ~ API Number. ~ ,., 50- C? ~ "-~~-~s~ '"~~~ Perm~ Approval Date: ~p // ~ See c~ let~ for other r~quiremer~. Co~~ftior~s of approvai : If baoc is checked, well may r~ Ue ~ed to e~lore for, test. or produce coalbed ne, gas hydrates, or gas co-~tair~ed in shales:[~ ~er. Samples req'd: Y~No ^ Mud log req'd: Y~ N HZS m~sures: Ye~s[] No [~ Directiar~i svy req'd: Ye~ No~ ~~'~lo w. ~t..~ ~ ,~ •( •o~ ~ 5 ,,~ ~ APPROVED BY TME CONMAISSION G~ DATE: ~ y y3 --~ ..,~ OJ~ ` , COMMISSIONER r rorm f~-yv ~ rtevisea i atuw ~~- ~~~~~~~ / ~ ~uomrt m vupi~e ~ ~.J. ^, , i ~nn ~c mnw~vcuit~ t SN R ATT(:F? 32W OP 'T~~ UMIAT MERIDIAN+ ALASKA. LEGEND _ ~,s~.u~+oah~a~noN --Gs-'~- xrcn°c""rxv wxver aere ..._....._._...._.. ea~wv wr wrn _~_ ~ouo - - - - w a~na+ tea IC@IWAY e~~ ~r,y r ----°-°-- ~w~n. • ..-+,-.-«-+- ewao~o ' '' .----.-. mac~u. eow~ tam ~--~-~-~-~ 1L8MIONe ldl6 1--~ 1--i i---~ I- p~91OLL . - AqlpM'pf,AtDII10 EtRQ ~ A i~OR~AL CMAROI. Q CONIt~L ibHUMIlN~ $LA,~~i daDR-tATIQN 17TL8 ~.r. 90{A~ARY ~ - Ml691CA1fON~ ~.~,,.•~ ~• OfMp'fAi, s----M- NIAIR'~At. ~~..~.~ •-~...~..~ ~7'WC1fOFt ~, ACrtOq ~fl'~V. I~At.lU'~WIT [ ] LLQIf OP ACIW17 ~ . NAV~M10tU1. ASQ ~ CA7H1 P1~4t * 77NPP610 CABQf PMIlOT X 7ti/R.W IAG7fON Y ~ IRP~CH WA7ffi h~ ~~~ ~ ~ ~ ~~ ~ ~~iwu9 CIA7'~1bi1R ~~ p 9 ~ ~ ~P~CA'B (1 ~~~ APIM1,YG~7ION A ~L'fMCA'B ~ ~~ , ~ ~ ~ f~ll1'C~'d1R VY A777M'WN 8TA'17~ PGtT W6ilt aN'nal M7'~ ~tt ~u'nu tas d.aN }Ot ~Ctlotu SMi txt~tm at[o ~WACwP 7'OWtW Wai TIM NRtflMf RNflJt L44Y H70t At d17WA4 ~gIIWCFIL'OriY a~uw+esna~, rra etrn~ eea m ~or~awr mwwon aa w so aeewws e ~csaw nnrro nrum nw wuwuam mmm a~ ~m ew. ~ m~a a~wx~row.um ~s~+a~ ium ALWAY7 CAR ON Ai1 MTt MMtl iLiM1YY1N1Ai.b N fblft IOt iMN ~ ~ ~ ~ ~ STATUS PLAT p~ a ~r w rwv~ ~~ 1~1111W1i • _. . .....,,. . ........ ~ ... . - . . ... -. . ~ ~~.. ... . ~aa,_. ~..,.: -... . ...... ... "~ • ~ . ~..~.~ ......~..~ r ~ '. ~ - .r..-.-~~.~.~..~.....~~.~........~. ~. ~r._ .. ..~.~..~..~~-,....~--~ ~ ~ • ^ ~ , LNOICI%~lTATWR.lTKi176'/N710H~ ~ `~ O M7.ipp WIIR ~Ad~ Mtl191w8 CMD I Ir . N se B6t EIP /M'A RA71R M'[L 101 fM 7~ m r n M/A[ . . I Driliinq Riq I 100 psi rubber seal Diverter head Threaded coupler-~ 6 5/8" O D Conductor -' casing .- 3.5" core rod Valve T-fitting ~ m ~ Valve 0 ~ ~ ~ ~ ~U '~ .~ ll. Fluid discharge to 40'-80' bls -- ~ ~ recirculation pit To holding pit ~ ~ . ... ~ C~ • Drilling Plan for Alaska Rura1 Energy Project Wainwright, Alaska, 2007 ` h 1. Finish transporting equipment to Wainwright. Rig and most equipment already there. 2. Dri119 718" mud rotary hole through eolian sand dep~sits. Estimated thickness 40'- 80'. 3. Set and cement flush joint 6 5/8" ~D, 6 1/8" ID steel casing to base of 9?/8" hole.. 4. Begin wireline coring operations (HT core rods, 4.25" diameter hale, 2.4" diameter core) at base of surface casing. Collect continuous core through permafrost zone (~800'-1000') if time and conditions allow. Tf not, combine open-hole rotary drilling with select care drilling to base of permafrost with an ernphasis on coring coal seams contained within this aone. 5. Continuous core to a total depth of between 2000'-2500' as time, funding, and canditions 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, stmic}. r If collected data warra~ts, select coal seam for further hydraulic testing and long- term~ monitoring. 8. Using abandonment bentonite grout, backfill hale from total depth up ta selected coal seam. ~ 9. Ream hole to 6" diameter from thraugh the base of selected caal seam. 10. Set 2.5" PVC monitor well with screened interval isolated in caal bed. Tremie filte~pack material (sand or gravel) around sereen and seal annul~r""area above screen using 1/" bentonite pellets and abandonment bentonite grout, 11. Conduct further hydrauiic testing as required. / 12. Fill top --1500' of well with foad-grade propylene glycol (RV antifreeze) to keep from freezing, install downhole transducers and thernustors to caliect overwinter pressure and temperature data. . 13. Instail locking hole~ enclosure around well. If data does not warrant the setting of a long-term monitor weli: 14. Backfili well with abandonment bentonite gaut from bottom ta within 1t~ ft of surface. 15. Mix and pump cement from I00 ft bls to surface. 16. Cut off steel and PVC casing 3 ft below grade and reclaim site. 17. Ship equipment ta Deadhorse. ~J ~ 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 (a111isted products are NL Baroid trade names): • Quick-Gel high yield bentonite (hole stability, circulation contral, clay-shale control) • Aqua-Gel bentonite (hole stability, circulation control, mud-density control) • Pac-L and Fac-R powdered celluIose polymer (clay-shale cantrol, wat~ loss, viscosity control) • Pennetrol liquid deter~ent {bit cteanin~, 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 1Q00 gallon trailer-mowrted shaker system incorporating shaker screens and centrifu~al 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 wili be transported ta the lacal sewage lagoon for disposa.l. Rotary drilling and reamin~ pperations will be conducted using a Gardner~Denver 5" x 6", 200 gpm, duplex mudpump. Core drilling will be conducted usin~ a hydraulically-driven Bean 3~ $pm triplex mudpump. • ~ Z .r+ a m ~ ~ m ~ ~ ~ ~ ~ .C 3 c ~ , N +. ~ C N N , ~ N -~ E Y N ~- O v c ~ ~ ~ ~ a3a i rn ~ M ~ M ~ M ~ M ~ M V - ' _ M M ` ~ ~ ~ ~ ~ C N ~ y O v)E ~ ~ a? _ .c ~ - `'~ ~ 0 _ ~ ~, rn N ~ ~ • _ ~ _ N ~ Vr ~ _ N N ~ N t _ st N - N _ N Q M _ N ~ ~ N N N *- - N 3 a N ~ - ~ O L CD ~ - ~ ti ~ N ~ _ m ~ • _ ~ ~ I _ _ ~ d, a ~- - ~= E tA ~ w N - ~ L ~ o ~ a 3 _ ~ co t ~ _ ~ ~ ^ ca ~ ~° ~ v i ~ U ' ~ c° t '" a 3 f- N w N ~ N ~ O O~ ~ O ~ O ~ ~-- N ~ i ~ O O O O N t~rl ~ ~ ~ ~v C y;dea ~ ~ Description Summary of Well Closure Praposal During drilling and coring operations, aquifers will be protected by mixing bentonite and polymer additives in the drill mud specifically desi~ned to sea.l and protect water-bearing strata. As the completion of drilling, conng and geophysical logging operations, if encountered conditions wanant, a temporary well may be installed and isolated in a coal seam as identified from drillin,g, Desorption, hydraulic, and geophysical information. All strata below the base af the monitor well, as well as the annular areas between the PVG pipe and the borehole, will be sealed with high-solids abandonment bentonite grout specifically designed far this purpose using the displaceme~t method by pumping the sluzry from the bottom of the borehole through 3.5" diameter core rods or 1'/2" stainless steel pipe. With tha ~ception of the isolated coal zone this wi~l effectively seal atl hydrocazbon and water-bearing zones encountered in the borehole. The well, if set, will be filled with a 50%-SO% maxtwe of water and propylene glycol to a depth of 1500 ft to prevent freezing of the well in the permafrost zone (approximate depth of 1 U00 ft). The weil will be u~ed as a monitar well for future prodaction and reservoir testing as well as for long-term pressure and temperature monitoring purposed. ~ ~ United States Department of the Interior ~' BUREAU OF LAND MANAGEMENT ~~~~tl Alaska State Office ~'~K~ ~'~~~~~ ~~~t~+A ~Fti~A- 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 7th 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 #1 well that the Department of the Interior, Bureau of Land Management is going to be drilling this summer and is submitting an Application far 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. 26.71. 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, k~- Beth Maclean Geologist `L~gI~~ 940: Bmaclean: bm:02/28/07:1448: U:/bmaclean/alternativeenergy/coalbedmethane/permitting/wai nwright/aogcc/bondingwaiverrequest07.doc ~ ~ Shallow Hazards Alaska Rural Energy Project,Wainwright, Alaska, Summer 2007 DOI has examined two seismic surveys in the Wainwrig~it area (see attached). 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 (see attached). 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. ~ - - ~ ~ ~ Permit to Drill Exemption Requests DQI Wainwright Well l. 20AAC 25.035, blowout prevention equipment requirements. DOI is r~questing an exemption to having a BOP. DOI will drill with a Diverter. AOGCC Questiorts: a. Have you examined the well histaries and logs far the weils in the surrounding vicinity for gas kicks and mud weight histories in the upper 350U feet? b. Can you demonstrate that you have a means of well c~ntrol that is equally effective to a B4PE? a. I7fJI ha~ examined all weli 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, meast~rable gas readings were assaciated with coal seams only. Mud weights were kept between 9-10 pounds per gallon (ppg) above 3500 feet in each well indicating t}~at no averpressured 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 g~s is eneountered; 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. Tn this situation, the well would be considered abandoned. c. If a gas kick were to be encauntered, the amount of gas that can safely be vented during drilling is eansiderable. DOT is pmposing to utilize a Washington stripping head sealing 31/a" drill pipe on S 518" casing, and a 40 foot by 4" 1D bloaey 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. DQI has examined twa seismic surveys in the Wainwright area. The first is an E-W line that runs from the S. Meade well to the Arctic coast appraximately 5-10 miles SW of Wainwright. The second is a NE-SW line that parallels the caastline 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 shaw any shallow hazards in the vicinity of the propos~d drill site. 4. 20 AAC 25.066, requiring gas deteetion on drilling rigs, DQT is requesting exemption from H25 and methane detectors. ~ ~ Alaska Rural Energy Program Coring and Evaluation of Coal Deposits ~ .. _ . - - . ~ . .. j., . . . . ` .'< ~ . sY~: ... ~ . " ' .. . ~.. «w..-nf. • a. ~:..! ~.~ . ~ This is part of a joint State - Federal program to assess the coal bed methane resource potential of the State and determine the feasibility of developing this resource for the benefit of rural communities in Alaska. Participants in this program are the North Slope Borough, the Arctic Slope Regional Corporation, the town of Wainwright, the U. S. Geological Survey, the Bureau of Land Management and the State of Alaska. ~ ~ This coring program is a multiyear effort to drill and perform testing on coal beds occurring in a number of areas throughout the state of Alaska. Many rural communities in Alaska depend on diesel fuel as a source of energy for heating and for the generation of electricity. Fuel must be barged or flown in to the more remote locations. If coal bed methane was available close to a rural community, it could offer an alternative energy source. This component of the Rural Energy Program will evaluate the gas content of the coal beds in selected areas of the state and the feasibility of developing this resource for local use. To accomplish this task, a small caring rig was acquired. The rig was selected for its portability. The size of the rig limits its capability but facilitates transport to remote sites. Pictures of the drilling and support equipment are on the cover page and below. To accomplish the goals of this project, mud rotary holes will be drilled to a depth sufficient to encounter the coal units. The capacity of the equipment will limit the drilling to a maximum depth of approximately 3,000 feet. The hole(s) will be cased to a depth sufficient to contain the unconsolidated sediments at the surface and to provide integrity for anticipated pressures. The casing will be cemented back to the surface. Semi- continuous cores will be collected as funding and conditions allow, with particular attention being given to the coal section. A suite of geophysical logs will be run. In situ testing may be performed as dictated by drilling results. At a minimum, permeability and water quality tests will be performed on a promising coal bed if encountered. The hole will be plugged~ and abandoned in accordance with State regulations. A more detailed ~ ~ The site for drilling in the summer of 2007 is in the community of Wainwright opposite the airstrip. The site is located on an existing gravel pad and no surface preparation is anticipated. Aerial photographs of the site are provided below and on subsequent pages. All equipment has been transported to the site via barge. Water for making up the mud and for other drilling purposes will be obtained from a melt pond on the road to the landfill. The maximum water utilization may be as much as 4,000 gpd. On average, during the drilling, the water utilization will much less than the maximum. Mud and cuttings will be stored in above ground tanks during drilling operations and will be transported to one of two possible disposal sites; the sewage lagoon or the sanitary land ~11. Personnel will be lodged at the community of Wainwright. Fuel, except for that in the vehicles, will not be stored on site. We will file for a Temporary Water Use Permit and a Fish Habitat Permit as appropriate. The area is also identified as part of the Coastal Zone because of its proximity to the Chukchi Sea. A Coastal Project Questionnaire will be completed. A Division of Environmental Quality Permit will be filed. A North Slope Borough permit and a Permit to Drill from the Alaska Oil and Gas Conservation Commission will also be obtained. A Land Use Permit will not be required as the surface estate belongs to the town of Wainwright and the subsurface belongs to the Arctic Slope Regional Corporation. All / vehicles will be using existing roads and the drill site is on an existing gravel pad. ~ ~ Jater tanks Wainwright 06N 9I05 ~ ~South Wainwright-Kuk Inlet ~East • JI 0 ~ ~ "J J ,-, i ~ r R ~ ~ ~ ~ Cj ~ ~ r 0 ` ~ v `1 ~ ~ - --~ `o O~ ~ c q ~ '~ ~~ ~~p ~q ~q ~T-p ~ I '~ LL7 +O~e ~Oe O O~ y' } ~ ~ 41 N 0 U U J J N N N N N ~ ry ~ O~ ~ y J J Q~ ~~ ~ S CL ~ ~ U N C ~ ~ a ~A L'" ~ ~ ~ ~ N dl ~ ~ `~ ~+ E b ~~~_ ~ ~ ~ ~ s~ ~3 33 3 3 m ~ o° y m ~ o a.c c ~ ¢ a~ a~ ~i 3 3 ~ 3 3 3 ~ m m~y ~ y ~ N n`~ a a v 'y v~ m m m m o 0 0 0 o c o ~ y C3 ~ m ~ ~ c u ~ d N ~ " y m'~0 =~ E E E E E ~ ~ N ',u~r ~ ~ ~ ~ s `~ ~ L U U 7 3 i0 ~O U N O~~ L r~i. O O ~ ~n ~ d v o o~ r- ~ ~' ~ ~ a Q¢ m m~ ~ d a~ o s a~ N m~'° 33 Y m o ~ 3 ~ c~i m g O O o o ~ v, ~c 3 >> ~~ ~+ N N y'n m o o~.? m c ; o a~ :° arQQO 0 i~ oC ~ oCQ ~`uv, cncn cn ~ ~~ ~ c UU ~oC~Qd~ u~ cn v, ~, ,;, c; r~ h p I ~ c~ ~w ~a o ~~ ~ ~~ ~ ri ~ r~ ,.a - ,~ ~ • G [~~ ~ V ^ r~ ~ c, ~:i = ~.~ ~~ ~~ ~~ I ° r~ ^ ~ ,~ • • Alaska Department of Natural Resources Land Administration System Page 1 of 1 ~ ~ aska Ma r Land Records/Status Plats Recorder's Search State Cabins ~atura~ Resaurces ' Npe ~ Alaskn DNR Water Rights Case Flle: LAS 19527 New Search ___ _ _ __.. . _ _ ,... ~_e . ~ ~. ,..~ ~ ,~ __ . _... ...... ~ .~ .....e. __ ,._. _.. ,..... ,_r...n. n~__ ,,,..~ _.~ . .._,_~..._ ~.,..~ ,r , v..~, Subdivtsion: UM,TI5N,R31W,SEC9 _ ~ . _ , _~ _ _ _ __ . .~..a _ ~_~ ___ _~__... _._,_u. . Creek, River, ~ake: A, NORTH LAKE; B, UNNAMED LAKE . ._ _., ~ _ . _ _. _.. ... _ _ . _ _ _ _.. ., _ . _ _._ . _ _ . , Additional Information: _. __, _ . ~ . . _. .. .~ . _ . . .~~ ~ . . . ~. . . .. __ . _ ~. __.. . . .. ALTERNATE LAKE SOURCES FOR WAINWRIGHT WATER SUPPLY, TANK-STORED. UPGRADE TO FULLY PLUMBED,160 HOMES X 500 GPI~80,OOOGPI? = 90 AFY. PLUS 3150 GPD SYST~M BACKWASH =102.5 AFY. Back Last updated on 06/11/2007. Not sure who to contact? Have a question about DNR? Visit the Public Information Center. Report technical problems with this page ta the Webmaster. Site optimized for Netscape 7, IE 6 or above. This site also requires that all COOKIES must be accepted. State of Alaska Natural Resources LAS Home Copyright Privac Svstem Status http://www.dnr.sta~e.ak.us/las/Case Water.cfm?FileType=LAS&FileNumber=19527 6/11/2007 Alaska Department of Natural Resources Land Administration System Page 1 of 3 • • ~._._ _ _ ''~Alaska Mapper Land Records/Status Plats Recorder's Search State Cabins Natufal Resourt~s ~ Alaska DNR Case Abstract -- __ File Type: ~-S File Numbel': 1952~ - Printable Case File Abstract See Township, Range, Section and Acreage? __ New Search ~ t!' Yes ~~_) No lAS Menu I Case Summarv I Case Detail I Land Abstract I.Water Rights I~fo_.rmation M~ Of~"'ice ofPrimary Responsibility: WANC WATER MGT-ANCHORAGE LastTransaction Date: 04/12t2004 Case Subtype: sUR SURFACE Last Transaction: OFF OFFICE OF PRIMARY RESPONSIBILITY CHANGED File: LAS 19527 ~. Search for Status__Plat U~dates As af Obll Il200'7 Customer: 000126847 NORTH SLOPE BOR MUNICIPAL SVCS ACCOUNTING SECTION PO BOX 69 BARROW AK 99723 Case Type: 801 _ WATER RIGHTS DNR Unit: 800 WATER File Location: WANC WATER MGT-ANCHORAGE Case Status: 35 ISS/APPRV/ACTV AUTH Status Date: 12I24/1997 Total Acres: 0.000 Date Initiated: O1/31/1995 Meridian: U Township: OISN Range: Q31W Section: 07 Section Acres: 0 Search Plats Meridian: U Township: OlSN Range: 031W Section: 08 Sectian Acres: 0 Meridian: U Township: OISN Range: 031W Section: 09 Section Acres: 0 Me~idian: U Township: O15N Range: 031W Section: 18 Section Acres: 0 Meridian: U Township: O15N Range: 031W Section: 19 Sectian Acres: 0 Meridian: U Township: O15N Range: 032W Section: 13 Section Acres: 0 S~rch Plats Meridian: U Township: O 15N Range: 032W Seetion: 24 Section Acres: 0 ~~ !~~ . U?-31-1997 , C~IVIMENTS PUBLIC NOTICE MAILED. 09-18-I997 COMMENT'S PUBLIC NOTICE RET~iSED AT APPLICANT'S REQUEST AND RESENT TO APPLICANT FOR NE~'S'PAPER PI~BLISHING. 1~-24-199fi ! PERMIT ISSUED' STAT`US 11 11 PERMT ISSD PERMIT SIGNED BY LEO J. KERIN 12-30-2002 STATUS CODE STANDARDI2ED http://www.dnr.state.ak.us/laslCase Abstract.cfrn?Filetype=LAS&Fi leNumber=19527 611112007 Alaska Department of Natural Resources Land Administration System Page 2 of 3 ~ • STATUS CODE 35 ISS/APPRV/ACTV AUTH ** * * * STAT(1S CODE STANDARDIZATION * * * * * STATUS CODE CHANGED BY BA7'CH UPDATE 04-14 2003' SUMMARY RECORD DATA CHANGED/CORRECTED OFF PRIM RESPONS WFBX WATER MGT-FAIRBANKS CHANGED THE OFFICE OF PRIMARY RESPONSIBILITY TO NEA' CODES Ot1-I2-2004 4F~'ICE 4F PRIMARY RESFONSIBILITY CHANGEI) OLD C(3DE WFBX WATER MGT-FAIRBANKS NEW CODE VVANC WATER MGT-ANCHORAGE DATA ENTERED BY MLW CHANGED OFFICE OF Ph`IMARY RESPONSIBILITY FRO~I WFBX TO WANG Legal Description NORTHLAKE (TRACT 10, PLAT 87-9), LOCATED R'ITHINPROTRACTED SECTION 9, TOWNSHIP 1 S NORTH, RANGE 31 WEST, UMIAT MERIDIAN, AND SOUTHLAKE (7RACT 2, PLAT 95-7), LOCATED W1`THIN WI/2 PROTRACTED SECTION 8 AND EI /2 PROTIZACTED SECTION 9, TO A'NSHIP I S NORTH, RANGE 31 WEST, UMIAT MERIDIAN. THE LOCATION TO WHICH ?'HIS WATER RIGHT APPERTA.INS IS: A A~ATER DISTRIB UTIOlY POINT ON TRACT 3 A, WAINWRIGHT AIRPORT ADDI770N NO. 1, AS DESCRIBED IN PLAT 86-1, A RESUBDIYISION OF PORTIONS OF UNITED STATES SURYEY 4418, A'AINN'RIGHT TOWNSITE, AS FILED IN BARRC7W RECORDING DISTRICT, SECOND JUDICIAL DISTRICT, STATE 4FALASKA, SAID TIZACT 3 A LOCATED WITHIN THE N1/2S1/2 PROTRACTED SECTION 24, TOA'NSHIP 1 S NORTH, RANG~ 32 WEST, UMIAT~IERIDIAN, SERT~IN~ AS A PUBLIC St~PPLF FOR THE VILLAGE OF WAINWRIGHT. http://www.dnr.state.ak.us/las/C~,se Abstract.cfm?Filetype=LAS&FileNumber=19527 6/11/2007 C~ • End of Case Abstract Last updated on 06/11/2007. Not sure who to contact? Have a question about DNR? Visit the Publi_c_I_nformation Center. Report technical problems with this page to the Webmaster. Site optimized for Netscape 7, IE 6 or above. This site also requires that all COOKIES, must tae accepted. State of Alaska Natural Resources LAS Home Copyright Privacv Svstem Status ~ ~ ,~ http://www.dnr.state.ak.us/las/Case Abstract.cfm?Filetype=LAS&FileNumbei=19527 6I11/2007 ~ ~ ~ ~ TRAYSMITTAi. LET'TER CHECKLiST , WELL ~iAl~tE Gl.-/!'~ ~-r- ~ PTD# Z-~ ~ -- ~ ~-' Develo ment ~ p Service Eacptvratory• Stratigraphic Z'est Yon-Conventionai Welf Circte 4ppropriate Letter / Paragraphs to be included ia Transmittat Letter ' Ct~CK i ADD-ONS ' TEXT FOR APPROVAL LETTER ~ W~T I (OPT[ONS) i ; APt'LIES ~ ; ~ MLLTI LATERAL ~ T[ie permit is for a new we(I6ace segmen[ of existing ~ ~(If tast twv digits we!( ! in I pe~it No. , AP[ No. ~0- ~ API number are ; - - , between 64-69) Production should continue to be reported as a function of the f ~ origina! API number stated above. ~ i P[LOT HOLE i[n accocdance with 20 A.AC 2~.Od~(~, a!! r~cords, data and Io~s ; I ~ acquir~d for the pilot hole must be cteacty differentiated in boith ~ i ~ we11 narcce ( Pf~ and API ~umber ~ ; ' '(50. - -_) from records, data and logs ~ ~ acquired for we[i I ~ SPACING ~ The perrnit is approved subject to iance with 20 AAC EXCEPTION ~ ' ~ 25.0~5. Approva! to perforate r ce i'ect is contingent ; i i I upon issuance of a conservatio approving a spacing ` ~ exception. u.~sZ,K,,, ~it~ ~t f'assumes the ~ ~ i liabitity of any protest to spacirtg exception that may occuc. ( i DRY DCTCH ~ All dry ditch samp(e sets submitted to tt~e-Eommission must be in i SA!~IPLE i no greater than 30' sample intecvats from below the perma&o~t or ; ~ I from where samptes are first caught and t 0' sample intervals ; ~ ~ through carget zones. ; ~ j Non-Conventional ~ Please note the fotlowing. speciai condition oP this permit: ~ ~ productian or production testing of coal bed methane is not allowed i we« i ~ Eor (name of well~ until after (Cornoanv NamcZhas designed and ! i ~~mplemented a water we[1 testing pcogram to provide basetine data ; ore water quality and quantity. Com Name must contact the I i ~ Commission to obtain advanc~ approval of sucii water well testing ! ~ proqram ~ Rev: I 2~i06 C:! jocly~transmittal_checklist ai . Field & Pool __ Well Name: WAINWRIGHT 1 __ Program EXP Well bore seg ^ PTD#:2D70650 Company U S DEPT OF INTERIOR Initial ClasslType EXP! PEND _GeoArea 890 Unit OnlOff Shore On Annular Disposal ^ Administration 1 Permit_feeattached__ _____________________ ________________. Yes_ _ ____Che_ck157___..______ - 2 Lease number appropriate_ ______ NA _ _ No I_ease_involved: _BLM.land, SPACIN_G_ EXCEPTION NEEDED be_cause of. nearby shoreline (state-federal bound 3 Unique well_n_ame and number _ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ Yes _ _ . _ . _ _ o_ffshore within 1500' of well, and not ASRC as oCi inall _ re _ resented b BLM's a ent. . , _ _ ~ Y p Y 9 4 Well located in a.defned pool_ _ _ _ _ No_ _ _ _ _ _ _ _ Exploration well _ _ _ _ _ _ _ - 5 Well locate~ proper diskance from ~rilling unit_bounda_ry_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ No_ _ _ _ _ _ _ . SPACING EXCEPTION RE_QUIRED: _Well. i~ within 1_500' of the shoreline. _ _ _ - - 6 Welllocatedproperdistanceftomotherwells__________ ___________________ Yes_ _______________________ - 7 Sufficient acreaqe ayail_able in_drilling unit_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ _ _ _ _ _ Onlywellin section_. _ _ _ _ _ - 8 Iftleyiated,is_weliboreplatincluded_________________________________. NA__ _____.Verticalwell,_______ - - 9 Operator only aff_ected parfy _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _N_o_ . _ _ . . . _ Received designation of_operato[ fo[m on 61812007 in which_BLM_designates_USG$ as_oper_ator of the_well. _ _ _ _ 10 Oper_akor has appropriate_bond in for~e _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ No. _ _ _ _ _ _ _ Hearing [egarding reques# to waiye bond requirements_schedule~ for dune 11, 2007 waived 6-8-07, Addressed in_ 11 Pe[mitcan be issued without conserualion order_ _ _ _ _ _ , Yes _ _ _ _ _ _ . conservalion order,SPACING EXCEPTION REQUIRE_D; will allow_well to be_drilled, but not tested_or _ _ _ _ _ _ _ _ Appr Date 12 Permitcanbeissuedwithoutadministrativ_e_appr_oval_____________________._, Yes_ ___._,produceduntil_anexception_isapproved.__,________.______.______,__.___,___________ .- 3 Canpermitbeapprovedbeforel5-daywait_______________________________ Yes_ ____________._,_ - - 14 Welllocatedwithinareaan_d_strataauthorizedby_InjectionOrder#(put10#in_comments)_(For_ NA__ ____ ___ _____________ ___________________________________________________ ( ~ a 5 Aliwellswithin1/4.milearea.ofreviewidentified(Forse[vicewellonly)_______________ NA_, __._____._________,___.________________________________„_________________ `~! 16 Pte-produced injector; duCation of pre production less than.3 months_(For_seNice well only) _ _ NA_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - 17 Nonconven,gasconformstoA$31.05,030(~.1_.A),(~2.A-D)_____________________ NA__ ____._____.._.________. --- - -- 18 Conductotstring_p_rovided------------- Yes- ----..6-518"@-80'.-------- - - - Engineering 19 Surface casing.protects all known USDW& _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA. _ _ _ _ _ _ _ Conlinuous core hole below conductor. _ , _ _ _ _ _ _ - 20 CMT_vol_adequate_to ci[culate.on conducto[& surf_csg _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ . _ . _ Ade_ uate excess for_conductoc _ _ q 21 _C_MT_vol_adeguate_t4tie-inlongstringtosurfcsg____ _______________________ NA__ _____________.________ - 22 CMT_willcoyerallknown_productiyehorizon_s____________ _________________ No__ _________..____..__________ ___.___, , 23 Casingdesignsadequatef_orC,T6&.permafrost--------_----------------- Yes. -.--------------_--------------------.----------_- --,--_------- i ~ 24 Adequatetankage_orreseruepik.__.._____________ ___________.__._ Yes_ ______Plan~tatQ&[igequipped_withtanks.___..__.._- __--_____..._.._________.__.._.._.. 25 If_are-dCill,has_a_10-403forabandonmentbeenapproved_____________________ NA__ ______.___ ___..____._____________.,___.__ 26 AdequakewellboreseparationpCOposed_________________________________ Yes_ _,._,.Nowellsproximate,_..__._______________.____________,________________ __ 27 If diverter r@quiCed, does it meet. regulations_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ . _ _ _ _ Will_e_mploy a rotating head, Rolaling_head will ptotectdriller's area and divert flow. , . _ . _ _ _ _ _ _ _ _ _ _ _ Appr Date 2$ _D_rilling fluid_program schematic_& equip list adequate_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ _ _ . _ Expected f_ormation pressures 9.0 - 9.8_E_MW.. Proyision_to weight up to 10.5 if needed, _ _ _ . . _ _ _ _ _ _ _ TEM 61612007 29 gOPEs,_dotheymeekregulatiqn___ _________________________ ____ NA__ ______BQPisnotplannedfocthissurfac~hol~&ection..______________ __._________,_..__.___ 30 BOPE_press rating approp[iafe; test to.(put psig i_n comments)_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA _ _ _ _ _ _ _ I 31 Choke.manifoldcomplieswlAPI.RP-53(May94)---------------------------- NA-- --------- ----- ----- -- 32 Workwilloccurwithoutoperationshutdow_n____ ___ ______________________ Yes_ _________.._.._--__-___ __.._.____.__ ______.________________..___.__.. 33 Ispresence_ofH2Sgas_pr4bable____________ ___________________ No__ _________._____ - _.. 34 Mechanicalcondition,ofwellswithinAORyerifiQd(F9rse[vjcewelipnly)___,____.____ -- NA__ _________________________ _..______--____._..__.-_ -- -_..___ 35 Pe[mit_can be issued wlo hydrogen_sulfide measu[es _. _.__ .. YeS _ - --- ______ Hearing scheduled June 11, 2007 for H2$ and gas detection [equirements waived 6-8-07. See at_tached_ C0._ Geology 36 Data.presented on_ potential overpressure zones _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ _ _ . _ _ Offse# seismie and wide~ separated well control examined by ope[ator:_ no_evidence of any shallow d[illing_ _ _ _ _ Appr Date 37 Seismic analys_is_of shallow gas.zones_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes . _ _ _ _ _ _ hazards are indicated._ , _ _ _ - SFD 611112007 38 Seabedconditi~nsurvey.{ifoff-sho[e)---------..-------------------- NA-- -------------------- -- ---.--------------------------------------_- 39 Contact namefphone for weekly_progiess reports_ [exploratory only~ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ Gerald Sh~arer, 345-7339 or 230-2705. _ _ _ _ _ _ _ _ , , _ _ _ _ _ _ _ _ _ _ _ . _ . ~eologic Engineering Public SPACING EXCEPTION REQUIRED: Well is within 1500' of the shoreline, which is a change in landownership between State and ~ missio~er: ~ Date~ ~ Commissioner. Date Com 'ssi r e F der aaeage. jj'J ~ I ~ / /~ ~" rtA ~„-~ C~ ~/ ~ vv~/ ~- ~ -- i. _ i ' /~. ~ -- ~ ^ ~~`" ~ ~ i -- ~- ~ f ~ ! ~ ~ ~ I _ 1 ~ ~'~. ~ ~ ~ i i I 1 ~ '~ ; ~~ ~ /' ~ ~ ~ ` ~ ~ ~ ~ I ~ SARAH PALIN, GOVERNOR ~ .~ i ~I~,i' ~. :4 . _.~ ~ _ . ( ~ . ...J ~~ i . ' ! i ~ 1' i i ~ .~ ~~~; ~~ ~ : ' --~ j-' -- 1.5~_~ t_.i'.~J L~ ''i_%_i^'L DEPARTMENT OF NATURAL RESOURCES 550 WEST 7T" AVENUE, suirE soo ANCHORAGE, ALASKA 99501-3560 DIVISION OF OIL & GAS PHONE: (907) 269-8800 FAX.• (907) 269-8938 FAX and CERTIFIED MAIL RETURN RECEIPT REQUESTED ~ECEIVED June 8, 2007 Commissioner Jo~n I~. Norman Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite. lOQ Anchorage, Alaska 99501 Beth Maclean r'~ctir.~ Er~~rgy Branc~°~ Chief US Department of the Interior 6881 Abbot Loop Road Anchorage, Alaska 99507 JUN 1 1 2007 Alaska ni! & G~s Cons. Commission Anchorage gZE: Letter ofNon-Objection for Wainwriglit Coal Bed Methane Core Well Section 24 TWP 15N RNG 32W iTM, Wainwright, Alaska Dear Sir and Madam, The Bureau of Land Management (BLM) in conjunction with the US Geological Survey (LTSGS) and other partners (Applicant) has requested a letter of non-objection from the State of Alaska, Department of Natural Resources, Division of Oil and Gas (DOG), to drill a vertical core hole in the community of Wainwright within 1,500 feet af state land. The vertical core hole is proposed to be drilled 265' more or less from the boundary of state lands in the submerged portion of Section 24 bounded by the Chukchi Sea coast. The Division has reviewed the subject application and DOG records with respect to land ownership and mineral rights. The State of Alaska owns the mineral rights on the submerged portion of Section 24 and there are no existing oil and gas leases on those lands. The Applicant propos~s to drill a 2,500 foot vertical core hole, log, and take core samples to evaluate the feasibility of developing coalbed methane as a local source of energy. The applicant has no plans to conduct flow tests or production tests before the hole is plugged and abandoned. The Division of Oil and Gas does not object to the drilling and coring of the well in accordance with the Applicant's proposed plan, If you have any questions, please contact Julie Houle at 269-8773. Sincerel r Ke 'n Banks Acting Director "Develop, Conserve, and Enhance Natural Resources for Present and Future Alaskans. " Commissioner John K. No d Beth Maclean ~ Letter of Non-Objection for `~right Coal Bed Methane Core Well Page 2 of 2 cc: Jeff Landry, Alaska Department of Law Bruce Anders, Division of Oil & Gas. Jonne Slemons, Division of Oil & Gas Nan Thompson, Division of Oil & Gas Fax: Steve Davies, AOGCC 907-276-7542 Beth Maclean, BLM 907-267-1304 Gerald Shearer, BLM 907-345-7339 06/08/2007 14:30 FAX 907 269~39 ROYALTY ACCT. . l~ 001 State of Alaska Department of Natural Resource Division of Oil & Gas 550 West 7~' Avenue, S~tite 800 Anchorage, AK 99501-3560 (907) 269-8800 ~E~~I~~~ .lUN 0 g 2007 Alaska Oil & Gas Cons. ~amrnission l1 t°J(n1 fl ~ ~1ILIt1l51515 Number of pages including cover sheet: y.~ ~ Urgent For Review ^ Ptease Comment ^ As You Requested ^ FYI S:~Dogshare\_Admin~Forms~Pax Covetsheet m~ster copy.docCFax foinunaster copy.doc OS/25lOS 06/08/2007 14:30 FAX 907 26~39 ROYALTY ACCT... DEPARTMENT OF NATURA.L RESOURCES FAX and CERTIFTED MAIL RETLTRN RECEIPT REQUESTED June 8, 2007 Commissioner John K. Norman Alaska Oil and Gas Conservation Conunission 333 West 7th Avenue, Suite. 100 Anchorage, Alaska 99501 Beth Maclean Acting Energy Branch Chief US Department of the Ixzterior 6$81 Abbot Loop Road Anchorage, Alaska 99507 ~ I~ooz SARAH PAL1N, GOVERNOR 550 WEST 7~" AVENUE, SUITE 800 ANCHORAGE, ALASKA 99501-3560 PHONE: (907) 269-8800 FAX: (907) 269-8938 RE: Letter of Non-Objection for Wainwright Coal Bed Methane Core Well Section 24 TWP 15N RNG 32W iIM, Wainwright, Alaska Dear Sir and Madam, The Bureau of Land Management (BLM) in conjunction with the US Gaological Survey (USGS) and other partners (Applicant} has requested a letter of non-objection from the Sta.te of Alaska, Department of Natural Resources, Division of Oil and Gas (DOG), to d~i11 a vertical core hole in the community of Wainwright within 1,500 feet of state land. The vertical core hole is proposed to be drilled 265' more or less from tl~e boundary of state lands in the submerged portion of Section 24 bounded by the Chukcl~i Sea coast. The Division has reviewed the subject application and DOG records with respect to land ownership and xnineral rights. The State of Alaska owns the znineral rights on the submerged portion of Section 24 and there are no existing oil and gas leases on those lands. The Applicant proposes to drill a 2,500 £oot vertical core hole, log, and take core samples to evaluate the feasibility of developing coalbed methane as a local source of energy. The applicant has no plans to conduct flo~vv tests or production tests before the hole is plugged and abandoned. The Division of Oil and Gas does not object to the drilling and coring of the well in accordance with the Applicant's proposed plan. If you have any questions, please contact Julie Houle at 2G9-8773. Sincerel ~ Ke in Banks Acting Director DIVl31'ON OF Oll & GAS "Develop, Conserve, arzd Enhance Natural Resources for Present and Future Alaskans." __06/08/2007 14:31 FAX 907 269 8939 ROYALTY ACCT. ~ I~003 i Commissioner John K. Nonnan and Beth Maclean Letter of Non-Objectian for Wainwright Coal Bed Methane Core Well Page 2 of 2 cc: Jeff Landry, Alaska Department of Law Bxuce Anders, Division of Oil & Gas. 7onne Slemons, Division of Oii & Gas Nan Thompson, Division of Oil & Gas ~'ax: Steve Davies, AOGCC 907-276-7542 Beth Maclean, BLM 907-267-1304 Gerald Shearer, BLM 907-345-7339 JUN-08-07 FR I 10 ~ 44 AM ~;;~ O I L AND GAS FAX N0, 2~42 P, O 1 ~ ! St~te of Alask~ Dep~rtr-acnt of Nat~ra~ Rcsourc~ ~ivision of Uil & Gas 55Q'West 7`h Avcnuc, Suite I 100 1~nchora~e, A~ ~95U1~35f>0 (907) 269-$$00 ~~3 0 0 ~~ e a ^ TO; Steve DavleS PHON~: 793-1224 GOMPANY: AOG~C ry^.~ _ ~ FAX NQ~; ~76~7542 FROM: Jack HarEz PHQ~~. 375-8239 w~ FAX No•. 907-269-8939 2007 ~~ne 8 ~ ~^ryy DATE: , TtME Number of pages including caver sheet: ~^ ~f Urgent [] Fa~ Review ^ Please ~nnm,ent ^ As Yo~ Reques~ed ~ FY~ iu. ~ Following is the Non-objection letfier Re: Wainwright C~M Core Well ~ as ~ons. S;\l~u~sl7arcl _AdminV~orms\[~~x Covcrshcct n~as~cr Copy,doClFlx Cuvol' Shc~:E l~irecior's Officc B93S MastcC.doC QG/Ok/p7 JUI~-08-07 FR I 10 ~ 44 AM ~ O I L A~[D GAS FAX N0, ~4~ D~;PAR'~'1VIEN'7' OF NATUI~q,.L RESQrJRCES n1Yr~sro~ vr orr, ~ cAs r~ax ~t~a c;a~~~~'IriFl~ MATT, R~,~rU~RN" nT'C~;[~T REQU~:ST~1~ Junc 8, 20p7 Con:unissioner Jolui K, Nonnan Alaska Oi~ ~nd Cis,S Conservatiori Commission 333 West 7tli Avenue, Suite. 100 Anctzora~;e, ~1laska 99501 P, 02 sa~aH Pacrnr, Gov~an-o~ b5p WEST 7TH AVENU~, $UITE SQ~ ~1NChIQRAGE, A~ASKA 99501-356a PHON~: (90Y) 269•86C0 FAX.• (807J 2B9-8838 RECEIVED JUN 4 8 2007 T3clh 1VTacleai~ Alaska Oil & Gas Cans. Cammissian Actzn~; ~:~~urgY ~r~nch Chicf A~chorag~ X7S De;parim~nt ot~h~ lnteric~r 6&81 Abbot C.c~c~p Ro~d Anck~ora~e, Alask~ 9~507 Rl:: i,etter otNoirn~~jcction for Wainvvright Coa1 Bed Methanc Gore Well Section 2Q~ TW1' 1 SN RNCr 3ZVV i1M, 'Wainr~vriglit, Alaslc~l lluar ~ir aiZCl Madazlx, Tlic 1~ur~;au of Land Managen1~nt (I3I.,M) i,1 conjunction wiih tl~e US Geolo~ieal Surr~~y (~TSGS) ai~d other partn~rs (~1~~pticant) has requesl~d a lctter of ~on-objectiort from thc State oi'lllaska, Departrncnt of Nalural Rcsourc~s, ~]ivision oF Oil and G~is (~OG), to c~ril1 a r~ertical coxe $ole in thc corra.rr~unity of Wainr.vri~l~t within X,S00 feel ~f stalc l~~nd. The ver~ical coro hole is pro~psed to b~ dxilled 265' nlore oz' l~ss frozn the k~oundary of state l~.nds ir~ the subx~cr~,r;d porti~t~ cif Sectian 24 boutided by lhe Chukchi Sc;a coas[. "!'he ]~ivisior~ k»s revie~vod tlac s~~bject apk~ticatiun and llOG records vvith respec~ ta land own~rship ~u,d minc;ra! ~•a~hts. "~'hc State of Atasl~a ow~~s thc; mi~lcral x•i~hts on thc subt~~.crged porlion of Section 24 and therc are no existin,~ oiI and ~~s lea.scs on t~aose lara~~s. Tl~e A~p,~>licant proposes lo dril~ ~?,500 foot vertic~l core hole, log, ax~d take c~re samnl~s t~ evalu~te t11e fc~sibility of developin~ coalbed n~uthan~ as a local souxce of ener~ry, Thc ~p~licant I~aS no plans to canduc:t flovv Iests ar produclion tests before lltc hole is plug~c;d and aUandonc:d. '!'he L)ivision of QiI ar1d G~~s does not o~jcct to thc drilliaa~; and eoring~ p~'the well in aecnrdauce wztti the A~~plicanl's proposed ~~1~n, If you have ar-y questions, plca:se cont~ct Julic Houle at 2G9-8773. Sirac~rel~ '~'"r r ~ ~~~~ - ~~ ~. ICa 'u Ba..r~ks 1lctin~;1)ireclor "Dc~ve.ln,~, Co~ire~vc, and L*'nharice. Natu~nl Reso~irce.c fow 1''re,scnt a~:d Futr~re Aluskans. " JUN-08-07 FRI 10~45 AM ~ OIL AND GAS FAX N0, ~42 P. 03 C'orramissioa~c;r Joktzl K. I~Oc7t1~i11 St]d T~t;~l MSCIL'~11] ~Jetter caf I~Io~s-nbjection f~r Wt~inwri~ht Coal B~c~ Melhane Corc Well ~'a~e 2 of 2 cc; Je~~f I,~ndry, fl,lask~ Depari~neiit ~f. Law T3ruce Anclurs, Dxvision of Oil ~C Gas. Jonnc Slemons, llivision of ()i1 & G~s Nan 7'l~omps~n, ~ivisiora ~f Oil & Gas r~x: stcvc 1)av~cs, Af)GCC 9U7-276~~Sq~2 Beth Maclza.n, BLM 907-21,7-1304 C;erald Shearer, l'3t..11~ 907-345-7339 06-07-d7;06:59PM;olgoonik ~ ;763_2926 . # 2/ 2 ~ Ms. B~th MacIean Bureau of Land Managcmcnt 22~ West Seventh Avenue, #13 Ancharage, AK 99S 13 Dear M,s. Maclean: 7une 7, 2007 Olgaonik Corpora~ion (OC} is supportive of your efforts to evatuate coatbed natural gas potential of Wainwright as outlined in the town meetings you have held in Wainwright. We appreciate the effort that you have put forth on this project an behalf oFour community. OC has land entitlemeats within the city limits of Wainwright and also uutside of these boundar~es. OC recognizes the benefits that could accur from having a lacal, energ}- source available for the community. We reco~nize thc coopcrative work planned between Federal, State, and thc private sector and are pleased to be a part of this effort in conjuactian with Arcitic S1opC Regiona) Corpara4on. We appreciate the fact that the Buresu of Land 1Vlanag~rnent and US Geological Survey are making a good faith effort to involve local communities in locatiag local sourees of ~nergy in rural Alask~. Sincez~ly, f ~,ucillc Mayer President, Olgoonik Corpora~icn Cc: Teresa Imm, Atctic Slepe Regional Corporatian ~E~EIVED JUN 0 8 2007 ~laska Uil & Gas Gons. Cammission A~n~t~ora~~ Wainwright #1 Suppart letter from OC ~ ~ __ _ __ 0717 OOl.pdf Content-Type: application/pdf - Content-Encoding: base64 __ _ ~,~ECEIVEI~ ~~N o g 2aor ~~laska tlil ~ Gas Cons. Commission An~horage 2 of 2 6/8l2007 2:16 PM • • United States Department of the Interior -~ ~ BUREAU OF LAND MANAGEMENT ` Alaska State Office "~"~~~ ~'~~~~~ t!~~M~RI~A 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`t' 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 #1 well) in Wainwright, Alaska. For an in-depth explanation of the land status plat supplied to AOGCC at an early date, please see the attached document. Sincerely, ~ Beth Maclean Geologist 940: B maclean: bm:06/07/07:1448 : U:/bmaclean/alternati veenergy/coalbedmethane/permi tting/wai nwright/aogcc/subsurfaceestate. doc ~E~EIVED JUN 0 8 2007 Alaska Oil & Gas Cons. Cotnmission Anchoraga ~ . *. ~ . Wainwright #1 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, T151V, 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 l, 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. a ' ' "~' + w . ~ Wainwright #1 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. ~ ~ Subject: Wainwright #1 Support Letter from OC From: Beth Maclean@ak.blm.gov Date: Fri, 08 Jun 2007 09:34:59 -0800 To: steve_davies@admin.state.ak.us CC: Shearer@alaska.net, Bob Fisk@ak.blm.gov, aclazk@usgs.gov, timm~a asracom Steve, Per your conversation with Jerry Shearer, BLM has obtained a letter of support from Olgoonik Corporation of Wainwright regarding the rural energy drilling project (Wainwright #1). It is attached. The original signed copy will follow in the mail. (See attached file: Olgoonik Support Signed.doc) Thank you. Beth Maclean Acting Energy Bxanch Chief Bureau of Land Management 6881 Abbott Loop Rd. Anchorage, AK 99507 907-267-1429 or 907-271-1985 Fax: 907-267-1304 _ ____ _ _ _ _ _____ Content-Type: application/msword ' Olgoonik Support Signed.doc ' Content-Encoding: base64 __ _ __ _ _ __ _ ~ECEIVED ~JUN 0 8 2007 Alaska Qil & Gas Cons. Commission Anchorage • ! Sabject: Re: USGS Wainwright CBM test well spacing application. From: Dan Seamount <dan_seamount@admin.state.ak.us> Date: Wed, 06 Jun 200714:46:27 -0800 To: John Norman <john norman@admin.state.ak.us> CC: Stephen F Davies <steve davies@admin.state.ak.us>, Cathy P Foerster <cathy fcerster@admin.state.ak.us>, Jody J Colombie <jody_colombie~a admin.state.ak.us> sounds good John Norman wrote: Steve-after our conversation I did a quick review of the regs- USGS should be asked to make application for a spacing exception in accordance with 20 AAC 25.055. ; As part of the application they must psovide names of and notice to owners, landowners and operators of properties within 3000' of the proposed well, plus plat and affidavit of ' verification as required by 20 AAC 25.055 (d). This will be part of their application so ' there is no need for a separate letter. Notice of hearing should be published in the ADN, and in the Barrow newspaper (closest , newspaper of general circulation). ', The above will ensure all potentially affected parties have an opportunity to comment or , request a hearing per 20 AAC 25.544. In the meantime we can approve the PTD application on the condition they will obtain spacing exception before testing or production from this well. I 2 believe this is consistent with what we discussed. ' Dan-Cathy, any comments or additions? John __ ._ _ Daniel Seamount ~an seamount(c~admin.state.ak.us> Commissioner 907-793-1238 AIaska Oil & Gas Consetvation Commission Department of Administration __ _ _ _ _ _ __ RE: Wainwright No. 1 ~ Subject: RE: Wainwright No. 1 From: Matt Rader <matt rader@dnr.state.ak.us> Date: Wed, 06 Jun 2007 14:28:50 -0800 To: sheazer~a alaska.net CC. Steve Davies - AOGCC <steve davies@aclmin.state.ak.us> Gerrv and Steve, DO&U 7ack Hartz 375-8239 ~vill handle it from here. Thanks, Matt R. 269-8776 From: shearer@alaska.net [mailto:shearer@alaska.net] Sent: Wednesday, June 06, 2007 2:21 PM To: matt rader@dnr.state.ak.us Subject: Fw: Wainwright No. 1 ----- Original Message ----- From: Stephen Davies To: shearer~alaska.net Sent: Wednesday, June 06, 2007 1:44 PM Subject: Wainwright No. 1 ~ Gerald, Having received the land plat yesterday, it is now apparent that in order to test or produce Wainwright No. l, which is less than 1500 feet from DNR land, you must apply for and receive a spacing exception according to the requirements set forth in 20 AAC 25.055. A successful application must also include: 1. a letter from BLM or USGS certifying that the US Government owns the oil, gas and coal mineral rights to all uplands within 1500 feet of the proposed well location, and 2. a letter from the Alaska Department of Natural Resources stating that the department has been notified about the proposed drilling and testing of the well, and that they have no objections. Spacing exceptions require 30-day public notice prior to approval. <! __[if ! supportEmptyParas]--> However, the Commission can grant the pernut to drill for Wainwright No. 1 with the stipulation of no perforation, test or production prior to receipt of the conservation order for spacing exceptian. This permit to drill will require a letter from the City of Wainwright stating that city officials have been notified about the Wainwright Coa1-bed Methane Project and the proposed drilling and testing of the Wainwright No. 1 well, and that they have no objections. Please call me at 907-793-1224 ifyou have any questions. Steve Davies AOGCC 1 of 1 6/6/2007 4:03 PM Wainwright No. 1 • • Subject: Wainwright No. 1 From: Stephen Davies <steve_davies@admin.state.ak.us> Date: Wed, 06 Jun 2007 13:44:43 -0800 To: sheazer@alaska.net BCC: John Norman <john_norman@admin.state.ak.us>, Daniel Seamount <dan_seamount~c~admin.state.ak.us>, cathyP Foerster <cathy_fcerster@admin.state.ak.us> Gerald, Having received the land plat yesterday, it is now appazent that in order to test or produce Wainwright No. 1, which is less than 1500 feet from DNR land, you must apply for and receive a spacing exception according to the requirements set forth in 20 AAC 25.055. A successful application must also include: 1. a letter from BLM or USGS certifying that the US Govemment owns the oil, gas and coal mineral rights to a11 uplands within 1500 feet of the proposed well location, and 2. a letter from the Alaska Department of Natural Resources stating that the deparhnent has been notified about the proposed drilling and testing of the well, and that they have no objections. Spacing exceptions require 30-day public notice prior to approval. However, the Commission can grant the permit to drill for Wainwright No. 1 with the stipulation of no perforation, test or production prior to receipt of the conservation order for spacing exception. This permit to drill will require a letter from the City of Wainwright stating that city officials have been notified about the Wainwright Coal-bed Methane Project and the proposed drilling and testing of the Wainwright No. 1 well, and that they have no objections. Please call me at 907-793-1224 if you have any questions. Steve Davies AOGCC Steve Davies i of 1 6/6/2007 4:04 PM Page 1 of 1 THE STR'TE OWNS ALL LAND UND~WATERS THAT ARE NAVIGABLE- IN- FACT, ARE SUBJECT TO THE EBB AND FLOW OF THE TIDES, ARE RIPARIAN OR LITTORAL TO UPLANDS OWNED BY THE STATE. BASED ON: COORDINATES: ALASKA STATE PLANE ZONE 7 SE CORNER OF TOWNSHIP; X 974044.667 Y 6075374.095 LAT 70 36 11.800 N LONG 159 44 48.437 W HYDROGRAPHY: USGS WAINWRIGHT (C2) REVISED BY BLM FROM AERIAL HIGH ALTITUDE PHOTOGRAPHY 1978- 1985 LAND NET: BLM PROTRACTION DIAGRAM U5- 8; APPROVED 05/13/1971 USRS; 17,003 ACRES; RCCEPTED 02/14/1978 USS 4418; ACCEPTED 07/08/1970 OTHER ACTZONS AFFECTING DISPOSAL OR USE OF STATE LANDS; SEE THE LAS CASEFILE OR ORIGINAL SOURCE DOCUMENTS FOR ADDITIOI3AL INFORMATION: OR ENTIRELY WIIN NORTH SLOPE BOROUGH ENTIRELY W/IN BARROW RECORDING DISTRICT OSL 800; ACQUIRED LAND AND MINERAL ESTATES EXCLUDING COAL, OIL AND GAS ADL 50666, SPECIAL USE LI~NDS; AFFECTS ALL STATE LANDS WITHIN UMIAT MERIDIAN; RESTRICTIONS MAY APPLY http://fox.dnr.state.ak.usJremark files/u015n031w.t~rt 6/6/2007 f~ BLM-Alaska ALIS Reports ~e - Case Abstract of AKFF 080861 • ; Bureau of Land Management - Alaska LIS-Online Reports Case Abstract for: AKFF 080861 Reports are generated from a replicated database. Information can be one week old. Reports do not contain the following case types and action code, which are Indian Trust Information: 007509, 186003, 231301, 231304, 231370, 253000, 256100, 256800, 359010 action code 445 Case Serial Num: Case Type: Case Status: Case Status Actn: Case Status Date: Custid: Cust Name: Cust Address: Date 12-JUL-1982 24-MAR-1983 25-MAR-1983 14-NOV-1983 02-DEC-1983 07-MAR-1985 27-MAR-1985 27-AUG-1992 ----------------- AKFF 080861 265501 Det Area Ancsa Sec 3(E) Pending Casefile Established 12-JUI.-1982 FRC Site Code: SEA Accession Num: Box Num: of Disp Date: Location Code: Customer Data 000031831 Int Rel: Applicant BUREAU OF INDIAN AFFAIRS JUNEAU AREA AGENCY AREA REALTY OFFICE BOX 3-8000 JUNEAU AK 99801 -------------------------------------------------------- Administrative/Status Action Data Code/Description Remarks ------------------------ -----------------~ 001 Casefile Established -- 843 Wdl Rev 3(E) Just Rq -- 843 Wdl Rev 3(E) Just Rq -- 525 3(E) Justification R -- 119 Comments Requested NATIVE 842 Wdl Rev Ancsa 3(E) C -- 718 Dec Issued -- 996 Converted To Prime -- ~-------------------------------------------------------- No Financial Actions Found WAINWRIGHT SCHOOL SITE. DECISION AFFIRMED BY IBLA WDL FII.E AA-64597. General Remarks Page 1 of 2 Pct Int: .00000 Doc ID Ofc Emp -- DFD JFC -- DAO AB5 -- DAO ABS -- DAO LJR -- DAO EAE -- DAO PMB -- 963 ED -- 940 BKM ~~~EivEo JUN 0 5 20Q7 Alaska Oia & Ga~ Cons. Commissio~ Ancharage http://web.ak.blm.gov/perl-bin/alis/abstract/do_abstract_3200.p1 6/5/2007 ~~~~ BLM-Alaska ALIS Reports ~e - Case Abstract of AKFF 080861 . Mr Twp Rng Sec Aliquot 45 15N 32W 24 -- Filing Received: No Geographic Names Found ------------------------------------- Land Description Survey ID Tr B1k Lot Di Bor NR LS USS 02401 -- -- -- 02 185 02 FR 1.8000 Pending: ----------------- Total Case Acres: End of Case: AKFF 080861 Page 2 of 2 Acres 1.8000 1.8000 1.8000 No warranty is made by the Bureau of Land Management as to the accuracy, reliability, or completeness of these data. Refer to specific BLM case files for official land status information. http://web.ak.blm.gov/perl-bin/alis/abstract/do_abstract_3200.p1 6/5/2007 ~ . F. ~ ~ (NovemLex 19fi4) ~°n°`~s ~~je ~nite~ ~tate~ of ~ttterica F-14954-A ~o Af[ to m~t t~~ aresentf f~~uA ume, sttctin~: WHEREAS Ulgoonik Carporation, Inc. is entitled to a~,atent pursuant to 3ec. i4(a) of the Alaska Native Claims Settlement Act of Dece~ber lb, 1971, 43 U.S.C. 1601, i613(a-, of tne sur€ace estate in the foilowing describeu lands: U.S. Suzvey No. 442&, Alaska, situatea in and near the town of wainwright: Tract A, Block 22, lat 1; Tract C; TraCt E; Tract F; Tract Gr Tract H. Containing 15.i1 acres, a. shown on the plat of survey approved July 8, 1970. NOw KATOW YFs, tieat there is, therefore, grantea by the UNITED STATES GF pMFRICA, unto the aboVe-named corporat~.on the sur£ace estate in the ianas above described; TO HAVE ANA TO HOLL~ the said estate with all the rights, privileges, iiumunities, and appurtenances, of whatsoever nature, thereunto belonging, unto the saia corporation, its successors anti assigns, forever: EXC£sPTING AND RESERVING TO THE UNITED STATES trom the lands so gcanted: The subsurEace estate therein, and all rights, privileges, immunities, and appurtenances, of whatsoever nature, accruing unto said estate pursuant to the Alaska Native Claims Settlement Act of December 18, 1971, 43 U.S.C. i60I, 1513(f). 50-85-0526 Patent Number ~.~,~E1VED ~u~v o ~ zoo7 ~1laska.0i! ~ 6as Co~s. Corrtimission , ~ - Ancharage ! •~ , ~ ~ Farm 188f1~10 (Much t985) 2 TAE GRANT OF THE ABOVE-DESCRI$ED LANDS IS SU&7ECT TO: 1. Valid existing rignts therein, if any, including but not limited to those created by any lease (including a lease issued under Sec. 6(g) of the Alaska Statehood Act of July 7, 1958, 48 U.S.C. Ch. 2, Sec. 6(g)), contract, permit, right-of-way, or easement, and tne right of tne lessee, contractee, permftzee, or grantee to the complete enjoyment of all rights, privileges, and benefits thereby granted to him. Further, pursuant to SeC. 1~(b){2) of tne Alaska Native Claims Settlement Act of Decen~ber 18, 1971 (A1~Sq), 43 O.S.C. 160I., 1516(bj(2), any valid existing right recognized by ANCSA sha'l1 continue to have wnatever rigkt af accesa as is now provi8ed for under existing lawj aad 2. Requicetaents of Sec, 14(c) of the Alaska Native Claims Settlement Act of Decemi~er 18, 1971, 43 U.S.C. 1601, 1613(c), as amencied, that the grantee hereunaer coavey those portions, if any, of the lanus hereinabove granted, as are presczibea in said section. IN TwT[MONY WR6itcoF. the nnderri(~xed sntborized offiaer of the Sareau of I.aad bfsna6~ement. i¢ eriordence with the Bmnisiane of the Act of?im~ 17, I9~8 (82 Stst 476), has, in fb.e neme oithe ~SEAL] Unitsd StaW, cawed thes~ ]etpeit to ye made Petent, and the ~ Seal otShe Bn~sn tv 6e heteonto affixe37 Gevertunder~qyhaad,ie ANCHORAGE~ ALASKA tEe SIXTEBNTH deyot A[IGp 5T3ntheq ar ofouiLordoaethouoandpinehupdredand EIGHTY-~'IVE aud of the I ence the Uwted Statee the two hundred 5t}-85~-052B "`d ~~ ~~,~.~.,~- PaEent Number B~ .. Ann o ~rnaon Chief, Branch of ANCSA Adjadication ~ , ~ Fa~ ~$~ ~C~e ~niteb ~rar~g of ~rnerira (Jsouary 1968) aLo alI ta mbom t~e~c pre~cent~ ~ap comc, ~rcttinQ: P-14954-A WHER£AS Olgoonik Corporation, Inc. is entitled to a pateat pursuant to Sec. I~(a) of the Alaska Native Claims Settlement Act of December 18, 1971, ~3 U.S.C. 1602. 1613(a), .. of the surface estate in the following-described lands, which are described in Interim Conveyance No. 042 of May 20, 1976, recorded in Book 3b, Pages 984-986. Barrow Recording District. Umiat Meridian, Alaska T. 13 N., R. 30 W.. Secs. 1 to 10. inclusive; ~ Secs. 12 to 38. inclusive. Containing 15,429.56 acres, as shown on plat of survey accepted on February 14, 1978. T. 15 N., R. 30 YI., Secs. 3 to 10, inclusive; Secs. 15 to 22, inclusive; Secs. 27 to 36, inciusive. Containing 15,197.20 acres, as shown on plat of sarvey accepted on February 14, 1978. T. 16 N., R. 30 W., Secs. 5, 6 and 7; Secs. 18 and 19; ~ Secs. 30 and 31. Containing 3,348.72 acres, as shown on plat of survey accepted on February 14, 1978. T. 17 N., R. 30 W., `° Sec. 25; ~ ~ Secs. 35 and 36. Containing 802.00 acres, as shown on plat of survey accepted on February 1~, 1978. RECEiVED 50 -~9 1- 0 5 6 2 Patent \umber JUN 0 5 2007 Alaska Oii & Gas Cons. Corr~nission Anchorage ~ F-14954-A T. 13 N., R. 31 W., Sec. 1; Secs. ~, 5 and 6; Secs. 12, 13 and 1~; Secs. 16 to 21, incluSive; Secs. 23 to 26, inclusive; Secs. 29, 30 and 31: Secs. 34, 35 and 36. ~ Containing 7,205.00 acres, as shown on plat of survey accepted on February 14, 1978. T. 14 N.. R. 31 AI. , Secs. t, 2 and 3: Secs. 7 tp 14, inclusive: Secs. 16 to 22, inclusive; Secs. 23 to 26, inclusive: Secs. 28 to 33, inclusive; Secs. 35 and 36. Containing 12,394.96 acres, as shown on plat of survey accepted on Fehruary 14, 1978. T. 15 N., R. 31 W., Secs. 4 and 5; Secs. 7 to 10, inClusive: Secs. 15 and 16; Sec. 19, lots 2 and 2; Sec. 22; Sec. 26, lot 1; Sec. 27, lot 1; Sec. 30; Sec. 34, lot 1; Sec. 35, lot 1. Containing fi,260.00 acres, as shown on plat of survey accepted on February 14, 1978. 50-,91-0562 ~ ~ F-14954-A T. 16 N., R. 31 W., Secs. 12, 13 and 14; Secs. 22 to 28, inclusive; Secs. 33 to 36, inclusive. ~~ Containing 4,612.Oa acres, as shown on plat of survey accepted on -: February 14, i978. T. 13 N., R. 32 W., Secs. f to 36, inclusive. Contaiaing 20,724.04 acres, as shown on plat of survey accepted on , February 14. 1978. T. 14 N., R. 32 N., Secs . z , 3 and =t ; Secs. 8, 9 and 10; Secs. 12 to 17, inclusive; Secs. 19 to 23, inclusive; Secs. 30 and 31. Containing 6,905.32 acres, as shown on plat nf survey accepted on February 14, 1978. T. 15 N., R. 32 W., SeC. 13, lot 1; Sec. Z3; Sec, 24, lots 1, 2 and 3; Sec. 25, iot i; Secs. 2fi and Z7; Secs. 34 and 35. Containing 964,00 acres, as shown on plat of survey accepted on February 14, 1S7$. T. 13 N., R. 33 W., '' Secs. 1, 2 and 3; - Secs. 9, 10 and 11; Secs. 15, 16 and 17; 50 ..,9 1- 0 5 6 2 ~ F-1495~-A Secs. 19, ZO and 21; Secs. 29, 3U and 31. ~ Containing 6,480.00 acres. as shown on plat of survey acceQted on February 14, 1978. T. 13 N., R. 3~ W., Sec. 25; Secs. 35 and 36. Containing 524.00 acres, as shorm on plat of survey accepted on February 14, 1978. Aggregating 100,846.80 acres. NOIY 1QV011 YE, that there is, therefore, granted by the UNITED STATES OF AME3t1CA, unto the above-named corporation the surface estate in the lands above described; TO HAVE AND TO I~OLD the said estate with all the rights, privileges, i~unities and appurtenances, of whatsoever nature, thereunto belonging, unto the said corporation, its successors and assigns, forever. EXCEPTING AND RESERYINC TO THE UNITED STATES from the lands so granted: i. 'fhe subsurface estate therein, and all rights, privileges, immunities, and appurtenances, of rhatsoever nature, accruing unto said estate pursuant #o the Alasica Native Claims Settlement Act of December 18, 1971, ~3 U.S.C. 1601, t613(f); and 2. Pursuant to Sec. 17(b) of the Alaska Native Claims '~ Settlement Act of December 18, 1971, 43 U.S.C. 1601, 1616(b), the following gublic easements, referenced hy easement identification number (EIN) on the easement maps, copies of which can be found in the Bureau of Land Management's Public Land Records, are reserved to the ~ United States. Ail easements are subject to applicable Federal, State, or muwicipal corporation regulation. The following is a listing of uses allowed for each type of 50 -~9 1 - 4562 ~ ~ F-14954--A easement. Any uses which are not specifically listed are prohibited. 25 Foot Trail - The uses allowed on a twenty-five (25) foot wide trail easement are: travei by foot, dogsleds, animals, snowmobiles, twa- and three-wheel vehicles, and small all-terrain , vehicles (ATIFs) (less than 3,oU0 pounds ~ross Vehicie ~Yeight (GVII) ) . 60 Foot Road - The uses allowed on a sixty (60) foot wide road easement are: travel by foot, dogsleds, animals, snowmobiles, two- and three-wheel vehicles, small and large all-terrain vehicles (ATVs), track vehicles and four-wheel drive vehicles. a. (E[N 1 C5 E) Aa easement twenty-five (25) feet in ridth for the existing Barrvw-Katzebue Trail from public lands in Section 30, T. 17 N., R. 30 W., Umiat Meridian, following the cQastline of the Chukchi Sea to Wainwright inlet, then following the sandspit at the northeasterly limit of KasegaluIc Lagoan to public tands in Sectioa fi, T. 12 N., R. 34 W., Umiat Meridian. The ases alloxed are those listed above for a twenty-five (25) foot wide trail easement. (EIN 2 C5, E) M easement sixty (60) feet in width for a proposed road beginning at the north edge of the Yillage of l~ainwright in Section 24, T. 15 N., R. 32 W., Umiat Aierediat~, then proceeding westerly to an intersection with proposed road easement EIN 3 C5 in Section 26, T. 15 N., R. 31 N., Umiat Meridian, then proceeding westerly to public lands in Section 7, T. 15 N., R. z9 M., Umiat Meridian. The uses allowed are those listed above for a sixty (6a) foo# wide rnad easement. - - c. (EIN 3 C5) An easement sixty (80) feet in width for a proposed road beginning at an intersectian with 50 --9 1- 0 5 6 2 ~ ~ Form 1860-t0 (Apnt 1988) ~ e-i4ss~-~ proposed road easement EIN 2 C5, E, in Section 26, T. 15 N., R. 31 ff., Umiat Meridian, then procesding southecty generafly following the right limit of the Kuk River to public lancis in Section 5, T. 12 N., R. 31 W., Umiat Meridian. The uses allowed are those lisied above for a sixty (60) foat wide road easement. THE GRANT OF Tl~ A90~--DESCR I BED LANDS I S Si1B J EGT TO : 1. Valid existing rights therein, if any, including but nat limited to those created by any lease, contract, permit. right-of-way, or easement, and the right of the Iessee, contractse, permittee, or grantee to the canQlete enjoyment of all rights, privileges, and benefits thereby granted to him. Further, pursuant to Sec. 17(b)(2) of the Alaska Native Claims Settlement Act of December 18, 1971 (NYCS~), ~13 U.S.C. 1602, 1616(b)(2), any valid existing right recognized by ANCS~ shall cantinue to have whatever right of access as is now provided for under existing law; and 2. Requirements of Sec. 14(c) of the Alaska Native Claims Settlement Act of December 18, 1971, 43 U.S.C. 1601, 1613(c), as amended, that the grantee hereunder convey those portions, if any, of the laads hereinabove granted, as are prescribed in said section. IA TESTIMONY WHExEOF.the uDdesi`ned authorized offiar. of lhe Bureau of Land Manogement, in ucardance wiih the provision: of the Act of Juae [7, 1948 (62 Stat. 476), has, in the name of the Uaited Sistes, cauxd ihese ieiun ro be madc Patmt, and the Seal of t1~ Burea~ to be hemunto a(i'viced. GrveN under my hand, inANCHORAGE , ALASKA ~S~~~ ~10NINTEENTH d'y°~ SEPTEMSER in the year of our Lord oeK thouw~d nine hundrcd and ~` I N~~Y -0~1 E and of the lndependena ot the mt taees t two hnadrod a~ S j XT EENTH . /s/ CBrolyrl A. Belley ByCarolyn A. Bailey 5 ~ ~~9 ~~ 0 rJ 6 2 Acting Chief, Branch af Doyon/Northwest ~N,,,,,yM Adjudication i ~ , ~ ~ • Form 1860-9 (Merch 1965) (forn~aAy 0-10i3) Fairbanks ~3325I ~G~je ~ttiteb ~tate~ of ~m~erita '~o at~ ba W~om tl cstc pautnY~s s'}yai( cmnc, ineting: i~HEREAS George E, M. GustAfson, Trustec is entitled to a L~~d Patent pursuant to Section 2387 0~ Lh~ Revised Statutcs aIId 5CCt~.OA il of the Act of Msrth 3, 1891 (26 Stat. 1099}, as a~e~ded, and Sectiott 3 of the Ac.t of May 25, 2926 (A4 Stat. 529)p aad the Act of Pabruasy i6' 1948 (6~ Stst. 35)i fOT B1oC3cs Ip Z~ 3~ 4~ S~ 6a 7t e~ 9~ 1G~ iI~ 22, 13, f~, 15, 16, 17, 18, i9, 20, 21; Lats 2 and 3 af Slock 22; and B2ocks 23, 24 and ZS af the isnd embraced in Tract A, TroCts S and A, U.S. Su7cvey No. d418, Alsska. Goutaiai~g 426.16 acres: NO'~ %NO~F'YB, that there is, therefore, grsated bp the LlI~TTBT1 STATEv, unto the said George B. M. Glistafson, Trustec, the trscts a£ land above dascriBed, TO NAVE AND TO HOLD ss~d tracts with a11 tfle riKhts, privilages, immvn3ties, and eppur- teaances af'a~hatsaever nature, thereunto beloaging, unto the said Georgo E. T~. Gustafson, Trustee, in trust for the several use an~ benefi~ of the occupants o£ the Townsite of F~ais~wright, Alaska, sccoxdimg to Lheir respoctive interests, sad to his successors ia trust; &XCES~TINS :lND RB3ERVING TO THE tfNITBD STATHS 1. A rigi~t-of-~sy thareon for ditches and canals constxucted hy t~xe autharity o£ the United wtstes. Act of August 30, 189Q, 26 Stat. 391; 4x U.S.C. 945; ~~~L~ V ~Q ~u~v a 5 2007 ~ ~.y Alaska 0~1 & Gas Cons. Gommissinn PaientNumber ~Y r~~~~J Aneharage ` ~ ~ r~ s Furm 1860-30 (July 1975) Fairbanks ff33251 2. A right-of-xay th~rson far the constraction a£ aailroads, telegragh, an3 telephoas lincs. as prsscribed sad sl3rected by 't~se Act of hiarch 12, 193.4, 38 S~at. 30;; ead 3. AT1 the cosl, oii and gas ia t3te Asnd so pateuted, and to it, or persons avthorized by it, the right ta prosgcct for, uine, and rc~aove such deposita £ram Lt-e sane upoa co~- piiance xith the conditioas and suL+gect to the provisions and limisations af the Act o£ Mazch 6„ 1422, 42 Stai. 415, as araended and supp2e~eated. IN TESTIMONY WHEREOF, the undersigned authorized officer of the Bureau of Land Management, in accordance with the provisiotts of the Act of June 27, 19q8 (62 Stat. 476}, has, in the neme of tfie United States, caused these 2ette~s to be made PatenE, and tne Seal~of the Bureau Eo be heceunto affixed. GiVEIr under my hand, in Ancie~~age, Aiaska [SEAL] the ~j~'Y'~j day oE ,~jtZj, In the year of oux Lord one thousand nine hundred and $~'~T~p'j`Zr_c~~~jy and of the Independence of the United States the two hnndred aad FIR. ,, ~.~_ sy ~ ~ .~..~ <: ~, ~J~j~/~~ Chiefs Bras-ch of Lands Patent Num6er ~~• ~ -VV~v ~a ~.,IABT&~5 ~C2'S'Ci0Y45 Re: Wainwright Structural Casing ~ ~ Gerald, I have spoken with Steve Davies and he relates that things are moving to begin operations on the Wainwright #l. With regard to installing the initial casing string (structural casing in your case) as required by 2~ AAC 25.030 (c) (1), having a permit to drill in hand is not required. A permit to drill is required to conduct drilling operations which are defined at 20 AAC 25.990 (23) as ". penetrating the ground below the setting depth of structural or conductor Call or message with any questions. Tom Maunder, PE ~ AOGCC casing, 1 of 1 6/4/2007 10:24 AM 05/31/2007 06:25 303445: ~~~~~ ~~ ~~~~c~~~ , , ~ ~,~~~~,~ ~~ar.~ ~.~~~~AS~~ ~r~~fe~ • ~;'bi-~erl St~tes ~ep~x~l:m~~~; o# t~~.e ~~~xs.or. .., ~T.S. C~~To~ic~,~i ~uz-vejr "~V~.tex Resou~ ces :D~i~'z~~o~, ~io~ 250~6, NIS 40ti ~enver ~'ede~al Ccn~:~r ~a~r~; ~~Q7' PAGE 01 ~~ ~ a ~3 ~~ ~~~ ~9, ~ ~~ •~~~ ~~~t ~~ ~~ ~ _ '~~ ~~~~ ~. ~ .~~~,° .. ~TMi :,~,1~! ... 3 "'^d~S 9 ~~ ~~~ ~ ~,~ ~.: ~ ''~'~_ ~,%~ ~'""^,gy~ - ~4 " 9 ~~~~ ~~'~'~,~~vi ~ ~'A~~~~~!C~~~ C~~R. ~.~CT~ ; ~CO ~. ~~.D~ ' ~ ~~x~~r~~ ~~~~ `~l~ 7 - ~~~ - ~~~~ ~ ~t~;~vr - ., ~ ~ ~ ~~~~ ~a~ ~~.~~4 x ~~ RE:v1~1~ USGS ~~~~ ~~~ F.~~ 3~~3 44~~46~6 , FOR PRaB~T.,.EM~ ~T~ T~-~i~ :i~A.~~ C~-~.~,.L 3~3 4~5-c~OI 05/31/2007 06:25 303445~~ USGS ~ PAGE 02 Offic~ • 3~JACJ C Street • Suit~ 801 ~ qnchorage - Alr~ska 995Q3-5Q63 •(907} 33g~p00 + FAX (90'~) 339-fi028 • 1-$QO-770•?_77?_ areEic slope reqional corp. Arthur C(ark US Geological Surv~y PO Box 25~46, MS 446 DFC Denver, CO 80225 F2E: Arctie Slope I~egion~l Corporation Access Permission 17ear Mr_ C~ark: Arctic 51ope Reglonal Corporation ("ASRC`) is fn receipt of the p-mail from you da#~d May 27, 2007, in wllich you request approv~l for the U.S. Geoiagicai Survey ("USGS") fpr fhp Rural ~nergy ~xploration Progr~m ("Wainwright Goal-bed Mathane Projec~") requiring access tu ASRC`s subsurface estate (IC No. 1456} at the City of Wainwright, Alaska. ASRC here6y prqvides to USGS, as operator, Its non-objeotion to enter and conduct its Wainwright Coat-bed Methane project on ASRC lands under the following conditions: The Lessees shall jointiy 2~nd s~verally defertd, indemnify and save harmfess ASRC from and against any and all 1ass, costs (inGuding attorneys fees), damages, expense and liability (inc(uding, but not fimited to, environmentail or regulatory pen8lties or fines and sfafutory li~bility and fiabilffy under workmen's compensatian iaws} in connection with claims for damages, penalti~s or frnes as a reSUft of any event, darrtage, injury or death af any person pr wlldlife or property damage to a~y property sustained by ASRC which aris~ from or in any manner grow out of ~ny act or omission ort or about ASRC's lands by any of the Lessees or their agents, employees, invitegs, contractors and subcantractars. 2. USGS Shatl obtain all Fpderal, State and Ir~cal permifs raquired for the propDSed Wainw~tight Cdal-bed Me#han~ Prvject enci the transport~ transfer ~nd sforage of fuel (~nd any other f~azardous substances) and shall camply and c~use its agents, ~mpldyees, invitp~~~, coniractors and subeontractOrs to comply with 811 such permits and ~gency regulatiqns as they may apply. 3. USGS Shall make data gathered in .he cqurse ofi Che Wainwright Coahbed Methane I'rojec! available fior inspeCtion by ASRC and its agenfs $nd ct-nsulfants, and, withfn ninety (9p) days following completion af the UV~invv~ight Coal-bed Methane F'roject, USGS sh~ll provide to ASRG the information and dafa, including notes, maps, studies, repprts, etc_, from thp W~inwright Caal-b~d Methane PrcJu>ct. 4. In tF~e e~ent USGS's program is expanded to cover lands Gvnveyed to a Native vill~ge corporaHon, USGS shali obi~'rn pecmission for entry from the affected village corporation. 5. All equipment and solid waste shalt ae Temoved from ASRC lands in a timely mannEr fonvwing corrtpletian of USG3's program and Sn full ~ompliance w{th al1 applicab~e !aw and permits. CarporAte Headqu3rturs ~ P.O, 64x 129 • f3erraw • Alaska • 997?_3-p17_9 •(907) 85?_-6fi33 or (gD7) 852-8633 • FAX (~n7) $52-5733 05f31/2007 06:25 30344 ~S USGS PAGE 03 ~ ASRC Nqrr,ObJectfon Letter WeHtwrrs~ht~ C8M Prp1ect May 29, 2007 Page 2 of 2 ff the above conditions are acceptable to the C3perator in return for ASRC's non-objection to USGS's Wainwright Coaf-b~d Methane Prpject and entry ~nto AS~iC fands, pl~~se indicate your acceptance in the spa~e prov(ded at the end of this letter and re#um a copy to this ofFice. Very truly yours, ARCTrC S1~0 R~~~orvAl GORPORaTrorv By: ~ eresa Imm Directbr - F~esource D~vefopment ACCEP`CED AND ,QGREED Tp TH1S ~ DqY Of ,"rO4`~ , z007, by U,S. Geological tv~y, ~'." U_S. Geoi al urv y By: ~ Titie: ~ c .,~ '~' Gerald, Attached is the checklist that AOGCC senior staff fills out as we review every permit to drill application. As you can see, there are still some missing items in the Administration section. 1. USGS must still supply the $100 filing fee required by 20 AAC 25.005. 2. As mentioned in my email dated May 25, 2007, I still need some means (a lease plat or document with a legal property description) that clearly demonstrates ASRC is owner and landowner for all acreage within 1500~ of this proposed well to satisfy the requirements of 20 AAC 25.005(c)(2) and 20 AAC 25.055. Owner is the person / entity who has the right to drill into and produce from a pool, and landowner is the owner of the subsurface estate per AS 31.05.170 (7) and (9). 3. Our attorney is reviewing the letter of non-objection from ASRC to see if it is adequate to supplant our standard Designation of Operator form. He may have already contacted you directly about this. I will be out of the office tomorrow. If you have any questions, please contact Art Saltmarsh at 793-1230 or call me at home at 349-1191. Jim Regg of our engineering staff will provide a review of the engineering portion of the application. Thanks, Steve Davies AOGCC i Steve Davies ': 070531_2070650_Wainright_1_Permit ~ Content-Type: application/pdf'' Content-Encoding: base64 i ~ ~ ~ ^^ ~ y d a ~ O N H _ . , : i i N ~ . . ~ ~ . , ~ ~ . ~ ~ ~~i ~ . $. ~ . _ ~ , . ~ , ~ ~ .. _~ ~,. ~, ~ ~ , , . . i , , . ~ . ~ . . , . ~ , ~ . ~ . ~ .... ~ ~ ~, ~ ~ ~ ~ . ~ . ~ , m ~ ~ ~ o~ . . o. , , . a~ ~ . . ~ ~ ~ ~ ~ o . . a . a~ ~ . , ~ ~ ~ ~ ~ ~ ~ ~ ~ . , . . ~ ~ ~ ~ . ~ ~ . . . , ~ ~ ~ : . ~ . ~ ~ ~ ~ ~ ~ . ~ m , ~ c 3 - c °~ c ~ ~~ ~ . ~, . . , t~ ~ . . , ~ ~ , , --~ ~ , ~, . . . al ~ ~ ~ ~ a c . . , ~ ~ . . ~ . ~ ~ . . . , ~ ~ ~ ~ . ~ . ~ ~ 'O ~ ~ ¢ ~ , . ~ . . ~ ~ . , ~ t~ . . :c, . , ~ ~~ ~ . ~ ~ '~ ~~ ~~ : , ~ ~ ~~ ~~ ~~ ~~ . ~~ : , ~ E, o ', , j . ~~~ , , •~. . . ~ ~ ~ . . . , ~ . . , ~ , ~ . , , . ~ . d' m .~ ~ .~ . . . C~~ ~ ~ ~ . ~ ~ , ~ I ~ ~ . ~ ~ ~ ~ . . ~ . 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U. >~ ~~ d, Z, ~ ~ O, ~, ~, ~, ~ t0 'O ~'O~ ~~ ~C~ O~ O. t~ y~ d d U, (n, U, U, U U Q= Q~ =~ ~, Q1~ 0], U, >, N~ I N, t0 01 N, O. d, O(n N, U a E O.- N M 7 N t0 1~ (, OD ~ O N M Y~ f0 i~ OD ~ O N M~ I I N fD I~ 00 O> I 0 ~ N M V N tD 1~ 00 ~ ~ r N N N N N N N N N N M M M M M M M M M M L U ~~ .°1. ~ 0 ..m. ~ 0 :: ~ O ~ N ` VI •~ L N T o Q .E a c ~~ a d a ~ a .o Q a w a t9 a ~ U y a .~ a'~ U ~ v C C O .N N y N c ~ c o W U d U C O O y ~ N c~i E U ~ ~ Steve, Does this adequately address all of your needs and requirements for land ownership and Designation of Operator, once it is signed by Art? Please let me know as soon as possible. i will have Art sign it and get it over to you ASAP. Thanks much. Jerry -- Original Messa e r„- ~ ; ~ ~ a ~ ~„~ ~ ~ ~ i Fli~ i ~ ~ , ' ~/r,i ~T~i'i'~, ; I"~t ~~ ~ ~ ° ~ ~ , , «~ww..,,i:: _ '~~r:.;.. : ~ ; ~.. fi~ ../...., ` ... ^ ^ ~~..,... -: ~' y i . . < ; .~ <, ~ ~ ', ~;',. ' ~ ~,,,.. ` r..... ~~~~_.. ~ , , T,., .~.. To: Arthur G Clark ; shearer(,~alaska,net Sent: Tuesday, May 29, 2007 4:53 PM Subject: ASRC Wainwright Access Art and Gerald- Attached is letter of non-abjection from ASRC to use for the AOGCC. This is the same letter format used by ASRC for the Intrepid wells drilled this year south of Barrow so it should satisfy the AC7GCC that ASRC is aware and fully informed and that we recognize the USGS as the operator for the Wainwright Program. Teresa Imm Direcfor- Resource Devetopment Arc#ic Slope Regional Corporation 3940 C St., Suite 801 Anchorage, A/aska 99503 (907) 339-6014 direct (907) 339-6028 fax (907) 230-0227 primary celt (907) 223-2091 alfemate ceJl (rural) timm(c~asrc. com From: shearer@alaska.net [mailto:shearer@alaska.net] Sent: Friday, May 25, 2007 6:42 PM To: Imm, Teresa Cc: Beth_Maclean@ak.blm.gov; Arthur C Clark; Bob_Fisk@ak.blm.gov Subject: Re: RE: Re: Wainwright update Teresa, In conversations with Steve Davies today we discussed your alternative approach to addressing the issues that are normally addressed through the Designation Of Operator. Steve seened to be flexable as to the use of the offical form. However, The issues must be addressed and resolved to the Commission's satisfaction. In his email, Steve identified his requirements. l believe that the five items that Steve listed are the only outstanding issues to be resolved prior to the Commissioner's meeting on June 11. I will be glad to facilitate in any way I can to provide the necessary documentation. Have a nice Labor Day Weekend. My wife has already purchased a bunch of flowers at the nursery so I know I will be gardening part of the weekend. . Gerald Shearer ----- Original Message ----- Geraid: ~ To re-iterate our conversation of this afternoon: in order to permit the proposed Wainwright 1 coal bed methane test well, the BLM must provide documentation to the Commission demonstrating: 1. who is the landowner of the affected property ("landowner" per AS 31.05.170(7) is owner of the subsurface estate), 2. who is the owner of the affected property ("owner" per AS 31.05.170(9) is the person or entity who has the right to drill into and produce from a gas or oil pool), 3. that the owner has designated BLM as operator of the proposed well, 4. that BLM accepts responsibility and obligations for operations on the property, and 5. that everyone signing the document(s) that assign and accept these responsibilities has the legai authority to do so. For nearly ali other wells, I rely on state or federal lease records to establish landownership and ownership, and the Commission's Designation of Operator form to establish that the operator does indeed have the right to drill. I also rely on the lease maps to ensure that the well location conforms to the spacing regulation (attached, below). I need some means to establish that, as you stated, ASRC is the landowner and owner for ali properties affected by the well. I also need a means to establish that BLM has been given the right to dri1V and produce the well. Please call me at 793-1224 if you have any questions. I'll be here until at least 5:30 tonight, and will return on Tuesday morning at 8 AM. Thanks, Steve Davies AOGCC 20 AAC 25.055 DRILLING UNITS AND WELL SPACING. (a) The commission will, in its discretion, establish drilling units to govern well spacing and prescribe a spacing pattern by pool rules adopted in accordance with 20 AAC 25.520. In the absence of an order by the commission establishing drilling units or prescribing a spacing pattern for a pool, the following statewide spacing requirements apply: (1) for a well drilling for oil, a wellbore may be open to test or regular production within 500 feet of a property line only if the owner is the same and the landowner is the same on both sides of the line; (2) for a well drilling for gas, a wellbore may be open to test or regular production within 1,500 feet of a property line only if the owner is the same and the landowner is the same on both sides of the line; (3) if oil has been discovered, the drilling unit for the pool is a governmental quarter section; not more than one well may be drilled to and completed in that pool on any governmental quarter section; a well may not be drilled or completed closer than 1,000 feet to any well drilling to or capable of producing from the same pool; (4) if gas has been discovered, the drilling unit for the pool is a governmental section; not more than one well may be drilled to and completed in that pool on any governmental section; a well may not be drilled or completed closer than 3,000 feet to any well drilling to or capable of producing from the same pool. (b) A well may not begin regular production of oil from a property that is smaller than the governmental quarter section upon which the well is located or begin regular production of gas from a property that is smaller than the governmental section upon which the well is located, unless the interests of the persons owning the drilling rights in and the right to share in the production from the quarter section or section, respectively, have been pooled under AS 31.05.100. (c) A pooling agreement under AS 31.05.100 must be filed with the commission before regular production from the affected property begins. (d) The commission will review an application for an exception to the provisions of this section in accordance with 20 AAC 25.540. The applicant for an exception shall send notice of the application by certified mail to the owners, landowners, and operators described in (1) of this subsection and shall furnish the commission with a copy of the notice, the date of mailing, and the addresses to which the notice was sent. The application must include (1) the names of all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil or within 3,000 feet of a well drilling for gas for which an exception is sought; (2) a plat drawn to a scale of one inch equaling 2,640 feet or larger, showing the location of the well for which the ~ ~ exception is sought, all other completed and drilling wells on the property, and all adjoining properties and wells; and (3) an a~davit by a person acquainted with the facts, verifying that all facts are true and that the plat correctly portrays pertinent and required data. (e) Upon application by the operator, the commission will establish notice requirements different from those of (d) of this section if the operator demonstrates to the commission's satisfaction that compliance with the notice requirements in (d) of this section is not feasible because of the complexity of ownership within the notice area. History - Eff 4/13/80, Register 74 am 4/2/86 Register 97 am 11/7l99 Register 152 ~t'~ITI'h«~~N~~~t["''~`...~~~~4 ~~"~.', ~~"~~ ~ :' F~ %~Ji~ _. .. ` ~`~. `~~~ ,.. ~~ , ~: oz.. ,,,,~~°~~.... i, : ,,r~., , . :. ~x„~ To: Beth MaeEean~ak.blm.c~v Cc: Bab Fisk(~ak.b(m.qov ; shearer(r~alaska.net Sent: Thursday, May 24, 2007 5:43 PM Subject: Fw: RE: Re: Wainwright update Beth and Gerry, Please see Teresa's response below to my inquiry about the Designation of Operator form. Gerry; would you check with Art or Steve at AOGCC to see if Teresa's "letter" will suffice? Thanks, Art _____Foruvarded by Arthur C C1ark/V1/RDjUSGS/C10I on 05/24/2007 fl7:38PM ----- To: "Imm, Teresa" <timm~asrc.com> From: Arthur C ClarkjWRD{USGS/DOI Date: 05/24/2007 07:32PM Subject: RE: Re: Wainwright update I understand and am obviously happy to go along with whatever works. The AOGCC people we met with, and I believe are handling our application, are Art Saltmarsh and Steve Davies. Number I have for them is 269-1433. Missed our Seattle connection to Denver by 5 minutes this morning, got rerouted through Sacramento (due to Mem Day weekend overbooking) and then had that connection delayed till midnight due to mechanical problems. I'm sitting here at the Sac airport thinking that it was almost faster to drive up than to fly back. __ _VtF~mt13J I~1A.J~31 ~lIl13~~~S3C.~OIIB~'" YY)V~4. -~--- 111 To: "Arthur C Clark" <aclark@usgs.gov> From: "Imm, Teresa" <timm@asrc.com> Date: 05/24/2007 06:39PM Subject: RE: Re: Wainwright update I haven?t had any notary?s around to sign. There power of attorney requiremen# is not a minor issue for a large corporation. I would rather send a letter to you agresing to the program that can be submitted. Who at the AOGCC do I need to talk to? They wanted the same for theSouth Walakpaprogram that Conoco drilled this spring and I gave them a letter instead of going through the pawer of attorney route. Teresa Imm Director - Resource Development Arctic Slope Regional Corporation 3300 C St., Suite 801 Anchorage , Alaska99503 (907) 339-6014 direct (9D7) 339-6028 fax (907) 230-U227 primary cell (907) 223-209? alfemate cell (rura!) ~ ~ ,~rom: Arf~hur C Clark m~ilto: aclarkCus s av Sent. 77~iurs~aY, ~~Y 24, ~lJQ7 3:29 PM T~c Irr~na T~resa T Su,biect: Fw.~ Re; t~/aintyriqht update let•c~su, Is there a reason fhat ASRC stilJ hasn`t siqned the Desic7nation of Uperator fortn as per GerrY's attached erraail? I'm proceedinq under the assurnptian ~hat we7/ have the AOGCC ~ermit in pface to 6egfn drfffinq on June 11. For numerous reasons, if we don`~t start ~rithin a feur daYs of that we wan't 6e doinq the protect. - Art -----Forv~larded bv .4rthur C Clark/WRL?/t15GS/L30I on 05/241~L~07 05. ~SPM -____ To; eB~th Maclean~ak,blm,4av> ~l~tld. 'fGerald Shearer" <shearer~af~ska.net> G}ate; 05/24/20C?7 1 C1: 47AN1 cc; "Art C/ark" <aclark~a usqs.qova, <Bob Fisk~a)~ktalm,qov> "Meryl Towarak" <Mervl Tawarak~ak.blm.~ov> .~1/~77~-'Cf." ~C. ~fc?If7Wt"IQ~7C' U(~C~s~~'~ Vlte need the f?esiqnati€~n af Operator compfeted from the ovrner vf the subsurface (ASRC). We need this as soon as ossible. It~ is im artant that the loc~ation iven on ~he t~esi nation of t~ erator 6e the same as fhe Ioca~ian rovided on the A lication for the Permit ~c~ L.~ri11. The (ocatic~n that I rovided fQr the Application fvr Permit tQ C3ri1I was ".,. 9t3t1' FiVL and 2278` ~,EL, Sectlt~n24 TZStV, R321N, th~ Urrriat I+~eridian. It is ad "acent ta the Ot oonik Facilit and buiCdin s focated ~t the north ed e af the communit ." I have attached a Pfl~" co of the f~rm. As ou can see from the fc~rm it re uires an authorized persan from ASRC to rrrake the desi4nat~ion, a person ~rom BLI~I to accept the responsibilit~Y and the siqnature of t~ro cornmissioners. The form must be su6rrritted irs dupficate. I Wtfl CJ?G'C{C WIL"f? AOGCC t0 5E'2 !f tf?~1"~ c3f"G' raf? further re uirements and if t~he can issue a ermtt on June 11, the same day that the Commission meets. Perhaps 1f we can't actualtY c~et ,~aper in hand we can qet a ver6al nK with written approval to ft~IJow. , ~ ~ ~'r~~ :,~3~t~r ~...~~le~~ ,~ ~ °` ~~ ~~ _;~ r, , ~ ~ y ;~~ ~ , . °,~li.,. ~- :-.. , .,:~1 ,,,,., ,., '~. ~~~ /u~~., , . , "',. //„z..~a ..: . .. .. ....: ..:... ,, ~~'.~ . . -:. , . ... To: Gerry Sf~earer~ Cc; firt Cfark ; Bob Fisk~~k.blm.qov ; Nleryt Towarak Sent: Thursday, May 24, 2007 5:35 AM Subject; Fw: Wainwright updafe Here is the fatest infarmation from Art. His trip to Wainwright was productrved. He got a lat /ong an the drill site. Do we need to redo the AOGCC application? Art also lays out the timeframe for drilling that we are hoping to keep, Can you please check with AOGCC that we wil! be ab/e to get the permit in time to stick with this schedule? I'm on travel status today and will be back in the office tomarrow at 271-1985 for at least the mornrng. I'II try to give you a call then. You can always email me as wel! Thanks, Gerry! Beth Beth Maclean Geologist BLM Alaska State Office 907-271-1985 ----- Original Message ----- ~ ~ From. Arthur C Gark (aclark@usgs.gov] Sent: D5/23/2007 08:10 PM To: Beth Maciean Cc; Bob Fisk; Tamara Neukam; timmCo~asrc.com; bpierce@usgs.gov Subject: Re.• Wainwright update Hi Beth, Just got back to Anchoragefrom a farrly productive trip to Wainwright and thought I'd send out a brief update before heading home tomorrow. I met with Lucille on Monday and she gave the officia/ OK for the core hole to be located at the Ofgoonik storage yard in the NE corner of the village as we requested. We also have access to all Oigoonik equipment and facilities - we just need to keep track of what we're using so that Olgoonik can put it on our bili. I told her that ASRC woutd be covering the Olgoonik bill (including motel) as we have previous(y discussed and that Teresa would be in tauch with her concerning details. Their yard foreman recent/y quit and went to work in Barrow so we really have no direct Qfgoonik point of contact with which to work. The good news is that Lucille just gave us the keys to the buildings and equipment to use as needed and I suspect that this wil/ be the arrangement for the duration of the work. We used their /arge frontend loader for four hours to start digging out the equipment as it was buried under 6 ft snowdrifts -- with what we moved, we should have pretty good access by the time we show up far the project in about three weeks. We'll need to move a few conex boxes and other odds and ends from the corner but it looks like we shou/d have p/enty of room in which to work. I suspect that if we get much in the way of precipitation while we're there that things are going to turn into a muddy mess but it's something that we're just going to have ta deal with. The motel manager, Scott, was off hunting and will then be gone on vacation for two weeks, returning shortly befare we start up. I really wanted to discuss details with him concerning room and 24-hour meal arrangements but I guess it~ wili have to wart -- he already knows what we need but I'd feel 6etter going over it all again 6efore everyone arrives. Priorrty Items; 1) We need to establish a contact within the NSB Public Works Department A5AP for use of their vacuum truck to move and dispose of dril! mud/cuttings, other equipment as needed (N58 has far more and 6etter equipment than does Olgoonik) and for dropping a 110 power outlet near where our desorption trailer and ten,ts witl be set - shauld just require hooking in an outlet as power is already at a pole just a few feet away, I atso need someone in Wainwright to unlaad our C-.T30 cargo flight when it arrives - preferab/y a few days before we do - and am not at a/l sure that O/goonik has anyone available, d need to set the flight schedule up with Lyndon Transport but can`t really firm it up until I have someone set up in Wainwright. I talked with Teresa yesterday about establishing a contact and she was going to call the NSB and get baek with me -- haven't heard anything yet. I really need to talk with them as soon as possible ta ensure that we can count an them ta provide certain vital services without which we can't conduct the project, 2) We need to determine if the State and the NSB are p/anning on contributing financia/ly to the effort and, if so, how much. I'm current/y working up personne! travel and work schedules and the number of people we initially need on site wil/ depend on whether we core continuously from the surface or if we open-hole drill to 500 or IOOD ft and begin coring from there - Pd hate to do this 6ut unless we know, going in, that we have the funds for a continuos core, we won't have an option. As I've said a/l a/ong, the project adjustments I need to make due to finances are going to have to be made at the start of the project rather than at the end so I rea!!y need to get a firm grip on thrs now. Teresa; Any definrtive word from either the state or the NSB? If not, any idea as to when we'l1 know something? Schedule: My current thinking is that drill crew personnel will leave Denveron June 7, arrive in Wainwright June 8, work on site prep and equipment setup June 9-10, drill, set, and cement 40'-&0' surface casing on June 11, begin drilling June 12. My understanding is that the AOGCC permit shou/d be issued on June 11 and have worked the schedule accordingly. I'l/ have some of the science crew arrive on June 9 to spend a day getting equipment and tents set up, with the rest of the crew arriving on June .t1 or 12 to begin 24-hour operations. This way, if there are equipment or other /ogistic prob/ems that delay the start of the project, I can put some af the science crew on . • hold until things are up and running instead of having a dozen people in Warnwright with little-nothing to do. Drill site location: Lat-Long of the site within a few meters. N 70 degrees 38' 42.1 " W 160 degrees 01 ` 06.6" Don't know if we need to make changes to the AOGCC permit or not and wilf leave tha~ up to you, Also, can you have Jerry check with AOGCC just to make sure that, barring prablems, the above schedule wi/1 work? I'!1 be working on makrng final arrangements and preparations the next two weeks -- hopefully we can get these final few issues/questions resolved within the next few days. Teresa; Please emaN or call as soon as yau hear anything an your end. I'l1 continue to keep everyone posted from my end. Thanks, - Art ' Wainwright CBM Non-Objection.pdf ' Content-Type: application/pdf ' Content-Encoding: base64 ~ • Anchorage Office • 3900 C Street • Suite 801 • Anchorage • Alaska 99503-5963 •{907} 339-6000 • FAX (907) 339-6028 • 1-800-770-2772 arctic slope O reqional corp. Arthur Clark US Geological Survey PO Box 25046, MS 406 DFC Denver, CO 80225 RE: Arctic Slope Regional Corporation Access Permission Dear Mr. Clark: Arctic Slope Regional Corporation ("ASRC") is in receipt of the e-mail from you dated May 27, 2007, in which you request approval for the U.S. Geological Survey ("USGS") for the Rural Energy Exploration Program ("Wainwright Coal-bed Methane ProjecY') requiring access to ASRC's subsurface estate (IC No. 1456) at the City of Wainwrighf, Alaska. ASRC hereby provides to USGS, as operator, its non-objection to enter and conduct its Wainwright Coal-bed Methane Project on ASRC lands under the following conditions: l. The Lessees shall jointly and severally defend, indemnify and save harmless ASRC from and against any and all loss, costs (including attorneys fees), damages, expense and liability (including, but not limited to, environmental or regulatory penalties or fines and statutory liability and liability under workmen's compensation laws) in connection with claims for damages, penalties or fines as a result of any event, damage, injury or death of any person or wildlife or property damage to any property sustained by ASRC which arise from or in any manner grow out of any act or omission on or about ASRC's lands by any of the Lessees or fheir agents, employees, invifees, contractors and subcontractors. 2. USGS shall obtain all Federal, State and local permifs required for the proposed Wainwright Coal-bed Methane Project and the transport, transfer and storage of fuel (and any other hazardous substances) and shall comply and cause its agents, employees, invitees, contractors and subcantractors to comply with all such permits and agency regulations as they may apply. 3. USGS shall make data gathered in the course of the Wainwright Coal-bed Methane Project available for inspection by ASRC and its agents and consultants, and, within ninety (90) days following completion of the Wainwright Coal-bed Methane Project, USGS shatl provide to ASRC the information and data, including notes, maps, studies, reports, etc., from the Wainwright Coal-bed-Methane-Project --- -- 4. In the event USGS's program is expanded to cover fands conveyed to a Native village corporation, USGS shall obtain permission for entry from the affected village corporation. 5. All equipment and solid waste shall be removed from ASRC lands in a timely manner following completion of USGS's program and in full compliance with all applicable law and permits. Corporate Headquarters • P.O. Box 129 • Barrow • Alaska • 99723-0129 •(907) 852-8533 or (907) 852-8633 • FAX (907) 852-5733 ~ ~ ASRC Non-Objecfion Letter Wainwright CBM Project May 29, 2007 Page 2 of 2 If the above conditions are acceptable to the Operator in return for ASRC's non-objection to USGS's Wainwright Coal-bed Methane Project and entry onto ASRC lands, please indicate your acceptance in the space provided at the end of this letter and return a copy to this office. Very truly yours, ARCTIC SLOP REGIONAL CORPORATION By: ~ eresa Imm Director - Resource Development ACCEPTED AND AGREED TO THIS DAY OF , 2007, by U.S. Geologicai Survey. U.S. Geological Survey By: Ti#le: Re: Request to Install Conductor Casing Gerald: To re-iterate our conversation of this afternoon: in order to permit the proposed Wainwright 1 coal bed methane test well, the BLM must provide documentation to the Commission demonstrating: 1. who is the landowner of the affected property ("landowner" per AS 31.05.170(7) is owner of the subsurface estate), 2. who is the owner of the affected property ("owner" per AS 31.05.170(9) is the person or entity who has the right to drill into and produce from a gas or oil pool), 3. that the owner has designated BLM as operator of the proposed well, 4. that BLM accepts responsibility and obligations for operations on the property, and 5. that everyone signing the document(s) that assign and accept these responsibilities has the legal authority to do so. For nearly all other wells, I rely on state or federal lease records to establish landownership and ownership, and the Commission's Designation of Operator form to establish that the operator does indeed have the right to drill. I also rely on the lease maps to ensure that the well location conforms to the spacing regulation (attached, below). I need some means to establish that, as you stated, ASRC is the landowner and owner for all properties affected by the well. I also need a means to establish that BLM has been given the right to drill and produce the well. Please call me at 793-1224 if you have any questions. I'll be here until at least 530 tonight, and will return on Tuesday morning at 8 AM. Thanks, Steve Davies AOGCC 20 AAC 25.055 DRILLING UNITS AND WELL SPACING. (a) The commission will, in its discretion, establish drilling units to govern well spacing and prescribe a spacing pattern by pool rules adopted in accordance with 20 AAC 25.520. In the absence of an order by the commission establishing drilling units ar prescribing a spacing pattern for a pool, the following statewide spacing requirements apply: (1) for a well drilling for oil, a wellbore may be open to test or regular production within 500 feet of a property line only if the owner is the same and the landowner is the same on both sides of the line; (2) for a well drilling for gas, a wellbore may be open to test or regular production within 1,500 feet of a property line only if the owner is the same and the landowner is the same on both sides of the line; (3) if oil has been discovered, the drilling unit for the pool is a governmental quarter section; not more than one well may be drilled to and completed in that pool on any governmental quarter section; a well may not be drilled or completed closer than 1,000 feet to any well drilling to ar capable of producing from the same pool; (4) if gas has been discovered, the drilling unit far the pool is a governmental section; not more than one well may be drilled to and completed in that pool on any governmental section; a well may not be drilled or completed closer than 3,000 feet to any well drilling to or capable of producing from the same pool. (b) A well may not begin regular production of oil from a property that is smaller than the governmental quarter section upon which the well is located or begin regular production of gas from a property that is smaller than the governmental section upon which the well is located, unless the interests of the persons owning the drilling rights in 1 of 2 5/25/2007 4:30 PM ~ • Re: Request to Install Conductor Casing ~ ~ and the right to share in the production from the quarter section or section, respectively, have been pooled under AS 31.05.100. (c) A pooling agreement under AS 31.05.100 must be filed with the commission before regular production from the affected property begins. (d) The commission will review an application for an exception to the provisions of this section in accordance with 20 AAC 25.540. The applicant for an exception shall send notice of the application by certified mail to the owners, landowners, and operators described in (1) of this subsection and shall furnish the commission with a copy of the notice, the date of mailing, and the addresses to which the notice was sent. The application must include (1) the names of all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil ar within 3,000 feet of a well drilling for gas far which an exception is sought; (2) a plat drawn to a scale of one inch equaling 2,640 feet or larger, showing the location of the well for which the exception is sought, all other completed and drilling wells on the property, and all adjoining properties and wells; and (3) an affidavit by a person acquainted with the facts, verifying that all facts are true and that the plat correctly portrays pertinent and required data. (e) Upon application by the operator, the commission will establish notice requirements different from those of (d) of this section if the operator demonstrates to the commission's satisfaction that compliance with the notice requirements in (d) of this section is not feasible because of the complexity of ownership within the notice area. History - Ef£ 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152 Steve Davies ' 2 of 2 5/25/2007 4:30 PM Davies, Stephen F (DOA) From: shearer@ataska.net Sent: Friday, May 11, 2007 12:03 PM To: Davies, Stephen F (DOA) Subject: Request to Install Conductor Casing Attachments: AOGCC start date request.doc; U015N031W S.pdf; U015N032W S24.pdf; UQ15N032W S.pdf; Wainwright site.jpg ~~ ~y~ ,N_~ , ~ ~ AOGCC start date U015N031W_S.pdf U015N032W_S24.pU015N032W_S.pdf Wainwright site.jpg request.doc (.., (153 KB) df (185 KB) (266 KB) (76 KB) Please find attached a request to install conductor casing prior to the final approval of the Permit to Drill. Concerning the designation of operator, I will deliver that personall.y as soon as I get it. As for land status, I am attaching 3 status plats in adobe pdf format. File U015N032W S and U15N031W S are maps of the two townships surrounding Wainwright. There is a cirele on each of these maps that outline$ the boundary of the City of Wainwright. Section 24 depicted in file U15N032W S24 nearly in the center of the land owned by the City of Wainwright. The subsurface is owned by the Arctic Slope Regional Corporation. The drill site is approximately where the label "TR A" is posted on the Section 24 Status Plat in the north central part of the section. I also attached a photoqraph of the proposed drill site in the Olgoonik storage yard. I will call you next week to check on status and see if there is further infarmation needed. Thanks for your help Geral.d Shearer 345-7339 cell: 230-2705 1 ~ ! Subject: Request to Install Conducror Casing ~rom: shearer@alaska.net Date: Fri, I I May 2007 I 2:03:04 -0800 To: Stephen Davies _steve davies(u~admin.state.ak.us ~lease find attached a request to ins*_al'_ conductox casing prior *_o the tinai approvat os tne eermir_ co uti~i. ;oncerning the designat_ion of opei3tor, I wi11 deliver that personally as soon as I ger it. ~s for land s*_atus, I am attaching 3 status plats in adobe pdf format. File rJO15N032W s' and Ui5N031W S~sxe maps of the two townshipe ~urrounding Wainwcight. There is a circle on each of rhese maps that outlines the bounda!y of the City of Wainwright. Section 24 iepicted in file U15N032W S24 neaLly in the center of the land owned by the City of Wainwright. The subsucface is owned by the Arcti >lope Regional Corporation. The drill site is approximately where the label "TR A" is posted on the Section 29 Status Plat in the iorth central par*_ of the section. I a;so attached a photoqraph of the pxoposed dzi11 sit~ in the Olgoonik stocage yazd. : will call you next week to check on status and see if there is further information needed. Thanks for youz help 3erald Shearer i4~-73s1 :ell: 230-2705 Content-Type: application/pdf 1~O15N031 W_S.pdf Content-Encoding: base64 ~ UO15N032W_S24.pdf ('ontent-Type: application/pd Cootent-Type: applicationimsword AOGCC start date request.doc Content-Encoding: base64 ~ ~ Content-Encoding: base64 [;O15N032 W_S.pdf Content-Type: application/pdf Content-Encoding: base64 Content-Type: image/jpeg Wainwright site.jpg Content-Encoding: base64 LEGEND dASB INFORMA'fION ~i . .. . HYI)N(X.RAVkfY ~'i. .)UItVtY WNIi I ~~ SURVI3Y tAl' LINIi I - - - 'IUWNSWY/5L?C'1'ION GWU ~ - - - - ua suawm unr. ~~- ~ II[41IWAY R(lA~ ~,. ~ 'IIGVL '~i , RAILROAD I . . - uecnucn~nowenurve ..~, ' • ~ II:IY.YH(Nlt WNb ~ ~~ YII'11.INF ~ ~ NRI'UN'1'/LANUINO 51RIP ~ _.. iNNULUN'IAL WN'IRUL il ~ IXNfI1tOL MOIJUAtiN'f ~~ STATUS INFORMATION I11LC ~i --- p(NIM)ARY ~ ~ - tA.AySIMItA'11UN ' ---- UISI'OSAL ~~, . . . .... MIMI('IYAI. - .. - IttS'1'NIl'IIUN -- fl'UIlL4L AC'iIUN ~ ~._ ~ MIiN'IAL HtlAI;IH ~IkUS'l' .I IJMIIS 0I~ ACfI(NJ .~. NAVI(:All<)NAI. All) ~~'..., :AF3W YGItMI"1' ~ ~ IHAf'PIN(: (ilfllN I'~Ith~'1' IRF.tiPhSY 1.(N'A'li()N II tiLHPA(P. Wq'IliR RIOfPI'S I . All'i1CA'I'ION .. YF.1thU1' ~ ~ CtR'IiFi(.ATE , tLB SUAFA(.L+ WA'IBR WGH'IS , .`~ AIILICAl10N '.. ~,, YYRMIT ., ~ ('F.'R'1111('AIL ~i M SIRIiAM IR.OW RCSI:RVA'IION ~~, .. AI'PLI('AII(MJ ' • (Y:R'1lPIG'IE ~.~ nnna, wF:eH nnxxira.. I ., A{'PIACAI'ION ~~~ YI:ItMI'1' i ~ CLR'N~IC'A'fL ~ ili 5 4~5 ~_.~..I ~ VICINITY MAP ~ a 9 10{I1i1t2'' ~~, I18~17 16 15114 13 19~~6 21 22rI?324 II ~30 ~9 28 ~7126~5 . . 31 2 33 34~35~36 i ~ ~ ,~~~a ~, .. .. ..__.. _. ..._.... ...._ _ ~fLM 1MAN UAflf:'11vsJVY wuguu 31t, 2W1 v:~.56 YN TOWNSHIP 15N RANGE 31W OF THE UMIAT MERIDIAN, ALASKA i .~.._ :-T.-- . -..-.~ .-_..-I. .-.._..-..-.._..--~.. I° CHUKCHI I I I I p,~Ep Lx ~~`\~.~ ~ .I . ~ 5 .. I C ~ 3 I 2 I 1 ul S E A~~'~ ~ I I N~~ " --- ._-~,~.\ - -~ - - - -- - -~- - - - ~II ~, ~ I I I . I zd) B,\ ez, 9 10 12 I ~ y feesl I ~ I I' III~ . ~~~ I . . uxERSi \, ~ 5 win ~. I ~ ,I .uirvxEx 34 ~I~-~-~-- ~- -+--- ----~-- - ~ - II ~ I I , ._ .~~...... . I I I ~ ] ~ 1] \ I 16 I 1 5 1 4 I ~ ' B al II wArvwAC I I \ I I I MG* r Lraz I ~ ~ ~ - - ~ \ ~ eao I ~I'a~e ~H ~.a.z9 I ~ 19 I :~ 20 ~ ' ~- I I I I 21 - + ~ - ~ fI . 22 - , ~ _ .~ .~' 23 . . . ~eui~ j. e zB I I 1 I I _ ~ _ - - ~~T- .._ ~ ~ - - ~ _ - - .. III I I ~_ / .. 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('114T'KI.I) NY'. ~Iliki M(%I~Y . . . . . . . . . . ... . . . . . . . . __... _ _ _ ___. . . _... . __ VIRSIUN: Arc/INO bL.;.C11e 4eb II 0501.14 Po'f RL'WI . _ "_ _".'__ _'."._ . . _ _. .M(' llryl.,w. ~ ~ __ _ _ - -_ . . _ _ _ ~!, SEC 24 TOWNSHIP 15N RANGE 32W OF THE UMIAT MERIDIAN, ALASKA -~. ~ T--=.. .~. .~ ..~ .-T ~..".,~.:,~- - -. _• _ _ -. _. ` LEGEND r T... , ~ . • • . . . .. -.. ~ STATUS PLAT ~',,. BASE WFORM.4TfON ~~I~.~ . . / II . ~ na . r. uv~ ~ i .. .. i ~~.mur ~ ,~ .. ~ ~ HYI)R(l(~RAPHY .I;I.. . . . . / : . ~ ~ h~ r_nnu.i ~i ~ ~i~r ~i.~i~. 1UItVLY WNF,. ( . . II . ~ SURVLY Ltil'IING (. . . / ~ . . '~ - - - I(JWNSHIY/SrC'll()N4RID . . // 'I ,IL~ ~ ~A UN 'I - -- 1/4 SM."IIUN LIN~ ~ . e r~ ~./ I h lllh'r ~~-.~ IIIGIfWAY . -/ . ' ~ ~~I~~ ~C~H~UKC~HI ~ _' ~~~ ,,,,~, ~. R<)A~ ~ j 'I inn ' .. 'IRNL . II . . . ~ . '~ ILVIROAU ~ iP n ` . IfrlNf NAl ll~: , ~ ~SL ut'YH~Ixu • • fAFl.fRl(AL I'OWHR I~NE ~ I ~ . ~ .~ `~ ` (~•I ~ . /~ t . i~ui ~~ i„n~-,~~~~:, . a ~.._...... II:LtY14UN1: WNtl (~ ~ ~ ~ " ~J~ /y'~ ~ ~ I . ~ i. YIPFI.INE I ~ . . 1S E A . `/G/ ~ I:' IeR IN +,I~lii~. I . _.. AIWYMIT/IANOING 5fRIP . . ~ I 1' 1 YY N ~' 1 J.~ F .. ~~'~ ~ ~ / ~A e~b~.s~ ~I~ ( 9YYX ~ WI> ~ ~ ~ 1fUWLUNIALWN'IRUI, US tYll 11 /~ III ' L' . ~i.~ ~.. CUNIROLM(lNUM1;N'1 ~il . ~ B5~ ~~~~o I~ .;°~ , . . , . ~ix { ' ~ I: ~ I. I ~ m e vtx ~' u~ ~ ~i STATUS INFORMATION . ~ . / YN~ ~~ r ~ ,vx un ~xi m : i r wnxw BIEiAp ~ '~~~-~ CO xwpcn~ OixG U S S II YIH H A RP N]I A(,t' /.' -~_- N(NINI)ARY "lll.. . .. . I.I ,uu~ tn~~~~,vt~: ~rwe'~i~ .~~.vet~' ~ ~- LLASSII~1lA'I1l)N U S 5 I ~ '; ----- UISIYUAI. ~~.II'~ . / ~ 2001 il' 'I ......- MIIMCIVAI. I ..- ItM.YI'IUL'IWN ~ / I ~i~ ~ ,a ' -- II+.UL+RAi. AC'iION / ~ ~~ ~: ~ ._ ~~._~ FtiN'IAL IIkAL"IH 1'ItUSI' I' ai o>. ~ ~ '~i ~,,., LUll1S UN A("It(MI I. ~~ eeirav ~ ues II ~ ~~ . NAVI(iA'11()NA1. AII) Q\ e I\ ~• I . • l'AtlINYEkA9"1' ~I:• / ~ . ~I. ~~. ~ 'IRAITIN(: CA131N 1'LItMI'1' I . ~ ~ I 'fRPSNA.C9 I.OCA'I90N ~:~ ~ ~ ~ T^ / ~' ~ / C/ II~ I~I ti11N1%A['N WA'I'4:R RICII'IC II . eao I .ii... .. AI'PLLCAI'f(NJ I~ /~ 1Q. a' III ~~ L._ YY.NMI'1' II ~ ~ ~? / ~ss I ~ CI;R'IIMI:A"fr ~ I i siu. suw~~nce wni_~ xu;tns 1I //~/ 4 4 1 8 •~ // I . ,,, . ~ I~ ~ 6 I ,•.. AIY'Ul'AI'IUN I ~/ : ~ ""~ PYRMIT / ~ r ~~ ~ ~ FJtllhk.lll' . II~ ~ ~ / ~ ~ / II I IN SIRLAM IIOW_RISfRVAT10N I' ~~ as~ . . . AYWI('A'11()N I.~ .~ ~ . eaa II . ~ / ~ 1 • <FRl1Ylt'AIF A / y q~ ' ~ l6] M[+~ xr I) . : . . \ p ~ F '~ ' I)AM.WF.IR.RARRIHR. ~ ~s /' ~ 59~~sz . .- APPLLGI'lUN ~~II~ /~ .....Bao ~vI ~ PL~Rhlll I/ ~ II '~i ~ CI:RTIIICA"IL . Y ~ iA ua5.~9 ~ . / I ~ ~ I5 5 a 3lzlil II ~ \ ,i WAINWRIGHT II INLET ; a 9ion~tz ~ / ~ ~ . . ~~ VICWITY MAP ~ . I \ uc. xr s~ ~IS T7 I6 15 14 ~ II . ~q c~ ies / ~ ~sx* c*r enr II 19 ~0 4~^22324i pis`~e ~. ~_ - ~ . ~.... ~30 9~8I2726251 y .~ \ xonrx s~orE .aen ~ . .. ~ ,.-- .~31 32 33~34 35 36~ I._.. _ . .. - . -.. - .. . - - ~ - . ..-~ . ~.. _.. - ~ _.. . . . _ ~ .. . .. , , _. . . ~- - - ~ - ~_ _ _ _ ,\\ _ ~/ - - . ' . . . ~ ~ . . ~'~,.~ .. .4 . ~ ~ I ~' ~.. : ,\N'I'NI I 1 ~ SEC~ 2~ ~ AI IL~NIIUIV S/AIUS YIA1 UyP,Ry ()N IIUS ILAI. All SIAIU ~ . G(tAY117C ILLUSI'RATION ONLY. ~ i,~~i~ xl » ~~i~oa.~ui~i~ il~~flo~ ~,. S()IIR('N 1%%'t)MF,NfC R4:MAIN'IHH nPFX'IAI. RF('()RD. L1NI5 l1A~F. FYNt ACl1uN~ ~I[IA'1~ FXfhNU IMIU ADIAtGN'1 IVWNSWPJ~. ~' SP ~ ~ ,~~= r µ ~ CONSUI,T LAN~ AUMIMS"!'RA"Ilt)N SYS'ILM ILA51 IlliS IN('I.III FV SIAll1S I INI'V SII( fI AS INti%aCAI. MIINICIPAI. I'fl l f. .. .. -... ~. I ~.~ (;ASdF1LN MMt AUOI'11UNAL INFC)ItMAII(A~. SCALE C1A5511~ICA'1](A`1 LIC 1'11AS1~ RIJLIt TO ADIACINI '1'OWNSIINS OR 1 nS ,.. ._ti 'f W}~ ISN ~ IU Ur11iRMiNG 11~ IlUNS 6%l'LNU tll'Y(lNU Llfl: dWNUARIIJ tlM(1WN llN W 4 w.~wotm '1{IIS PLA"I'- RhMFMBCR'1'fllL, CIASSIF7(A'IION, AND RIS'I'WC170N IINL:S ~i M~vyl~'bL ~~c~k ~' '~ _ ~ ,yt,~ ALWAYS CLQSL ON ALL YIAIS. ' ''' KNG 3~W '-' wn im ~m o .uo am ~- .1 IS Ihc . ~~."._~.-_~ 1'lll~.lt I' . II(11l . IIS"I(INT:~llll'(I'I,~i UM ~' CIIhT'K141) NY: ~Ililtl M(%)UY ~~. ..............- ______...... ..._._ __._._ _. _ ..__ _._........_.. _-- __-._ __... _. _.___....___ . _____.... _ ...._.. .... . ._....... . _.._ . . ..... ... . . . . . . .. USHt 164M1 ~ VLR910N: AWhilo tl,0.],.(1'u¢ keC ~1 0901:14 NYI' 200D1 ViC Upt:ue ', UA'I'I+:'1 Y e ~. ~1 v 1:42 PN LEGEND BASE WFORMA7'ION . - HYI)R(xkAPHY ~'UItVrY IINE ~ - SURVLY L(YI' IINC - - - I()WNSWY/SKINNJ 41tID - - - - 1/4 Sl'A.'IIUN LLNt ~_~~ IIIGIIWAY M()AI) . ... 'IRAI1, xu~KOno • • .. • F1.PPI'k1CAL 1'OWL'it WNE • ~ • I'~I.EYIIVNM WNb ~ . PIPPLINE . . AWkIR"ryfANU(N(i SINIY _.. 11~X1lUN'IAL WN'IRUI. . COMROL M(JNUMENT STATUS INFORMATION 11TLL. -- N(HIN~ARY ~ - ILASS11~Il:A1WN ---- [)ISir(ISAI. .... MIINI('IPAI. ._ x~vrw~u~N - - - PCDIAAL ACIION ~ _'_ I MItlN'IAI. tItAL'IH 1'RUS'1' ~ I~MI'IS OP AC110N NAVI(iA'II(JNAI. AIl) t:AU1N YENMI'f ~ 'IAAYPIN(; CAIi1N 1'I.RMI'1' 'IRFSNASS I.[%'A'll()N \IINI'ACF WAIHR RI(i1115 AIINIC'AI'IUN I. _ Yh]tMYI' ~ ~kRIIFlCAItl SIIB SURFAC~E WATPR NIGtI'1'S ~ All'LIUTI(JN ~: PFNMII ~ lLli'IIFI(:A'Itl ix s~x~nn~ mc~w e~s~sxxv_n?~~on - APPWCA'1'1(JN ~ ClRIIHCAfE I)AM WFAR NARRIF_R_ .. APPIJCAIIWJ ., VFl:A(1'1' ~ CCR1ll~ICAfL ti 5 4 3 L 1-'~, / 8 9 10 i1112 VICIM7Y MAP 13 17 16 15 l4 3 13 20 21 22 23 2A 30 9 28 7 26 25 __,__ 31323334 53G ; . ~i t_ ~~„ ~ i~ TOWNSHIP 15N RANGE 32W OF THE UMIAT MERIDIAN, ALASKA STATUS PLAT r. -.--.-.~..~.--. .-~. :--. - .~:~..---..~.. .~..- : ~- ~-- .- - ~ ,,,, ~ ~ ~, ~,k ,,, ,,~,,; I: ~ ~ l I ~~ I~ ~ ~ ~ I ' ~_~ ~~_~_ . I . . l'v NIJII . 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('ONSUI;1 IANO AUAIIMS'IRAIi(hY SYSl1iM (LASI (.'h4L'(ALb WR AUUI'll(JNAL INIVItMA"11(1N. w w ism sm o wro xooo szaa F'u-~' ~~.-~ ..--- 1171ti INCI.IIIIFS 5'IA'l1I,S I IN4S Sll(11 AC ~Itil'(ltinl., MIMI('INAI, lTl'I t; CIASSIIICA"IION GIL WJ+ASf RIJIR 1'O ADIACLN'1"IbWNSIW'S UR LAS IU UhlliIUUNE W Alll()NS lX'1~lAVU tlLYUND I'Hf; UWNUAWI~ SHUWN UN ~ ~~~ .::'.µ '(l ~ W N I SH .. .t .. ~ N ... x~u ~ IIiIS PIAf. RF:hIFAIOFA'll'1'I.G CI.1551F1C'A'110N. AM) WSTRI<'IION I,INf~.S wn ww -w ~ns ALWAYS CL0.4C ON ALL PI.AIS. I ~~.~ In~ IItA~K~~~f ' _~.~YaS/nW i~i I 1 N I s a ". ~~< kNCi ~ZW ' ' ' ' ' - . ~~`+~ _.__..__. . . i c~ Iltln~c~V I i~ls 1 ow~nlili`/I~IAI fHtRM~:~DINnAi UM , cimzxuu xv: ~n~xi nu~ur . _..---- . __. _. . . Vhb10N:~AmlLW 8.0.2.(1'ue teb ~ Otl~01',14 PSI' 2110D1 __.... _. ----- ~ -- - . ._._. -- -_ . _._-- - ---- ._ _ _ . .. ~.~ ...~ ..... . . . .. . .. . . .. _ .. . .. . .. . . ... nRC UNmc ~ l~ainwright site.jpg (JPEG Image, 960x720 pixels) C~riyindl ~itF IGC~tion ~ _ ~--° _ { __ ~ . ~ ,,~ ~ ~~~:Wti~.~~ . ~~ . M~~~ . ....w. ~.r~ -';;~~ ~ ~ ~., , ._ , ~'~~~r,: ~ ~~ ~ -„ . ~"~ : ~r ,-~ . _~~,.. ~~~~ ~~ ~~ a ~~m > ~ ,~ ~ ~ ~~., ~~ ~ ; ~tC~i ~ ~ ~ ~ ~"~`, t i.: C ~~~ c~~„ ~ ~~ x: ,' `" r ' _'II_,I~- .,If~' I ~~.,=.~U~.-;li ,. ,> . ~ ~ 5 ~25/?p07 3:13 PM ~ ~ In an attempt to complete the Wainwright drilling and testing project in time to utilize the summer barge system to transport equipment either to or from Wainwright, the DOI will have drilling and scientific crews in place several days prior to the earliest anticipated date that we could receive a final approval for a Permit to Drill. Crews will spend this time unloading, testing, and preparing equipment currently stored in Wainwright. In addition, we hereby request permission to drill, install, and cement a 40-80 ft, 6 5/8" OD, 6 1/8" ID conductor casing through su~cial eolian deposits prior to final permit approval. By cementing in this casing on June 9 or 10 we would allow adequate time for the conductor casing cement to properly cure prior to the commencement of deeper drilfing. Once the casing is cemented, we would suspend operations unti! we received a final Permit to Drill, hopefully on June 11, 2007. Once the permit is received, we would begin continuous coring operations immediately below the conductor casing. Due to the short and tight summer barge schedule, these few additional days could well impact the project's abilfty to utilize this cost-effective means of large equipment transport. Thank you for your consideration in this matter. Sincerely, Arthur Clark USGS Project Chief 3. Property designation: Will there be an active lease involved? If so, the owner of the lease must designate BLM as operator of the well. If not, as with Franklin Bluffs No. 1, you will have to provide a land use permit from DNR that designates BLM as operator of the section containing the proposed well. Again, as with Franklin Bluffs No. 1, a Conservation Order, must be obtained from the Commission waiving the bonding requirements and gas detection requirements of our regulations. Current regulations also require a well drilling for gas to be set back 1,500 feet from any property line where ownership or landownership changes, so the Conservation Order may need to address a spacing exception as well. Please note that the Conservation Order process takes about 6 weeks from initial notification of the Commission to approval or denial. 4. We will need a shallow drilling hazards assessment from the site, which addresses the potential for encountering shallow gas and abnormal pressure. Thickness of permafrost and potential for encountering gas hydrates or free-gas trapped at the base of permafrost must also be addressed. 5. You must demonstrate the presence / absence of potential underground sources of drinking water (USDWs) and demonstrate that this well will not adversely impact any USDWs. 6. How will mud and cuttings be handled and disposed? I'll pass your proposed application along to Dave Roby and Tom Maunder. They may have additional questions or requests. Thanks, Steve Davies AOGCC Gerald Shearer wrote: Steve, • ~ ~ ~ It has been a while. I thought I would check with you to see how the permit application is coming and ask if there is anything more that you need. Gerald Shearer ~ ~ Subject: Re: Wainwright Permit From: Stephen Davies <steve davies@admin.state.ak.us> Date: Tue, 08 May 2007 13:59:26 -0900 To: Gerald Shearer <sheazer@alaska.net> CC: david Roby <dave roby@admin.state.ak.us>, Tom Maunder <tom maunder@admin.state.ak.us> Gerald, Apologies for not getting to this sooner. So for, my initial review of your draft application indicates the following addirional information needed for the fmal application: 1. Location of well (Form 10-407, Box 4a): coordinates for surface, top of productive horizon and total depth of the well must be supplied as footages from the nearest section lines (e.g 4,123' FNL and 1,234' FWL, Section 10, T12N, R04W, Umiat Meridian). 2. Lacation of well (Form 10-407, Box 4b): coordinates for surface location of well must also be supplied in Alaska State Base Plane, NAD 27. 3. Property designarion: Will there be an active lease involved? If so, the owner of the lease must designate BLM as operator of the well. If not, as with Franklin Bluffs No. l, you will have to provide a land use permit from DNR that designates BLM as operator of the secrion contain'ng the proposed well. Again, as with Franklin Bluffs No. l, a Conservation Order, must be obtained from the Commission waiving the bonding requirements and gas det~tion requirements of our regulations. Current regulations also require a well drilling for gas to be set back 1,500 f~t from any property line where ownerslup or landownership changes, so the Conservation Order may nced to address a spacing exception as well. Please note that the Conservation Order process takes about 6 weeks from initial notification of the Commission to approval or denial. 4. We will need a shallow drilling hazards assessment from the site, which addresses the potential for encountering shallow gas and abnormal pressure. Thickness of permafrost and potential for encountering gas hydrates or free-gas trapped at the base of permafrost must also be addressed. 5. You must demonstrate the presence / absence of potential underground sources of drinking water (USDWs) and demonstrate that this well will not adversely impact any USDWs. 6. How will mud and cuttings be handled and disposed? I'll pass your proposed application along to Da~e Roby and Tom Maunder. They may have additional questions or requests. Thanks, Steve Davies AOGCC Gerald Shearer wrote: j Steve, I I It has been a while. I thought I would check with you to see how the permit application is coming and ask if there ( is anything more that you need. Gerald Shearer Steve, The day after we presented our proposal to you, Art Clark and Beth Maclean went up to Wainwright to finalize plans. They encountered a problem which has been delaying me completing the application. The Wainwright people wanted to move the drill site to another part of town. There were apparently two other sites proposed, but nothing was finalized. Then there was a death in the family of the individual making the recommendations in Wainwright. Beth has been pressing as hard as she feels she can, but nearly a month and a half have gone by without a decision. With the time that AOGCC needs to process the application in mind, we are getting quite close to a deadline. Would it be possible to submit everything we have so far to you. The final location wi(I be at the proposed site or a site nearby. I realize that a revised Form 10-401 (Permit to Drill), the Designation of Operator, and final maps may need to be resubmitted once we are assured of a location. However, there are a number of things in the paperwork that are not necessarily site specific that possibly could be reviewed by AOGCC based on the information that I have in hand. Specifically I am thinking of the Drilling Plan, Drilling Fluid Plan, Time vs. Depth curve, Description of Well Closure, Bonding Waver, Shallow Hazards Evaluation, four Drilling Wavers, the seismic sections and the well logs. If this would be a possibility, please give me a call and I will get the information to you immediately. Thank you very much for your consideration. I can be contacted at (907) 345-7339 or cell (907) 230-2705. Gerald Shearer ~ ~ Coalbed Natural Gas Exploration, Drilling Activities, and Geologic Test Results, 2007–2010, Wainwright, Alaska By Arthur C. Clark Open-File Report 2014–1004 U.S. Department of the Interior U.S. Geological Survey ii U.S. Department of the Interior SALLY JEWELL, Secretary U.S. Geological Survey Suzette M. Kimball, Acting Director U.S. Geological Survey, Reston, Virginia: 2014 For more information on the USGS—the Federal source for science about the Earth, its natural and living resources, natural hazards, and the environment—visit http://www.usgs.gov or call 1–888–ASK–USGS For an overview of USGS information products, including maps, imagery, and publications, visit http://www.usgs.gov/pubprod To order this and other USGS information products, visit http://store.usgs.gov Suggested citation: Clark, A.C., 2014, Coalbed natural gas exploration, drilling activities, and geologic test results, 2007–2010, Wainwright, Alaska: U.S. Geological Survey Open-File Report 2014–1004, 65 p., http://dx.doi.org/10.3133/ofr20141004. ISSN 2331-1258 (online) Any use of trade, firm, or product names is for descriptive purposes only and does not imply endorsement by the U.S. Government. Although this information product, for the most part, is in the public domain, it also may contain copyrighted materials as noted in the text. Permission to reproduce copyrighted items must be secured from the copyright owner. iii Contents Abstract ............................................................................................................................................. 1 Introduction ....................................................................................................................................... 1 Project Background ........................................................................................................................... 2 Geologic Background ........................................................................................................................ 4 Project Objectives ............................................................................................................................. 6 2007 Project Activities ....................................................................................................................... 6 Core Equipment, Handling, and Sample Collection ....................................................................... 9 Geophysical Logging ................................................................................................................... 10 Coal Desorption ........................................................................................................................... 11 Lost-Gas Estimate ....................................................................................................................... 12 Desorption Results ...................................................................................................................... 14 Desorbed-Gas and Mud-Gas Samples ........................................................................................ 15 Coal Analyses ............................................................................................................................. 20 Isotherm Analyses ....................................................................................................................... 23 Temperature Log ......................................................................................................................... 36 Water Chemistry .......................................................................................................................... 36 2007 Project Summary and 2008 Plans ...................................................................................... 37 2008 Equipment Transport .............................................................................................................. 38 2008 Project Activities ..................................................................................................................... 39 2008 Project Results ....................................................................................................................... 42 2009 Plans ...................................................................................................................................... 44 2009 Project Activities ..................................................................................................................... 44 Production Testing I ..................................................................................................................... 44 Well Wainwright–9 ....................................................................................................................... 45 Wainwright–9 Results .................................................................................................................. 46 Production Testing II .................................................................................................................... 49 Well Wainwright–10 ..................................................................................................................... 49 Wainwright–10 Results ................................................................................................................ 50 Production Testing III ................................................................................................................... 53 Gas Analyses .............................................................................................................................. 53 Water Chemistry .......................................................................................................................... 56 2009 Results and 2010 Plans ......................................................................................................... 57 2010 Project Activities ..................................................................................................................... 57 2010 Results ................................................................................................................................... 61 Project Summary ............................................................................................................................. 62 Acknowledgments ........................................................................................................................... 63 References Cited ............................................................................................................................ 64 Figures Figure 1. Map of Alaska showing location of Alaska Rural Energy Project coalbed natural gas study areas in green .................................................................................................................. 3 iv Figure 2. Map showing location of drill holes, seismic lines, and coal isopach used to determine approximate depth of coal-bearing strata and net thickness of coalbeds beneath Wainwright ......................................................................................................................... 5 Figure 3. Aerial photograph of Wainwright, Alaska, and the location of site Wainwright–1 ................................................................................................................................... 7 Figure 4. Alaska Rural Energy Project rig drilling the Wainwright–1 coalbed natural gas exploration core hole ........................................................................................................................ 9 Figure 5. Project geologists describing and boxing core samples from the Wainwright–1 core hole ...................................................................................................................10 Figure 6. Wainwright–1 coal desorption canisters in thermal baths ............................................12 Figure 7. Graph depicting desorption regression line used to determine lost-gas value. ...........13 Figure 8. Isotherm chart from well Wainwright–1, desorption canister W1-4, analyzed by Ticora Laboratories ....................................................................................................................25 Figure 9. Isotherm chart from well Wainwright–1, desorption canister W1-9, analyzed by Ticora Laboratories ....................................................................................................................26 Figure 10. Isotherm chart from well Wainwright–1, desorption canister W1-11, analyzed by Ticora Laboratories ....................................................................................................................27 Figure 11. Isotherm chart from well Wainwright–1, desorption canister W1-15, analyzed by Ticora Laboratories ....................................................................................................................28 Figure 12. Isotherm chart from well Wainwright–1, desorption canister W1-18, analyzed by Ticora Laboratories ....................................................................................................................29 Figure 13. Isotherm chart from well Wainwright–1, desorption canister W1-19, analyzed by Ticora Laboratories. ...................................................................................................................30 Figure 14. Isotherm chart from well Wainwright–1, desorption canister W1-19, analyzed by RMB Earth Science Consultants, Inc. ........................................................................................31 Figure 15. Isotherm chart from well Wainwright–1, desorption canister W1-21, analyzed by Ticora Laboratories ....................................................................................................................32 Figure 16. Isotherm chart from well Wainwright–1, desorption canister W1-21, analyzed by RMB Earth Science Consultants, Inc. ........................................................................................33 Figure 17. Isotherm chart from well Wainwright–1, desorption canister W1-23, analyzed by Ticora Laboratories ....................................................................................................................34 Figure 18. Isotherm chart from well Wainwright–1, desorption canister W1-25, analyzed by Ticora Laboratories ....................................................................................................................35 Figure 19. Wainwright–2 temperature log collected by the University of Alaska Fairbanks ......36 Figure 20. Diagram of proposed Wainwright Olgoonik Corporation ware-yard production-test-well array ................................................................................................................38 Figure 21. Unloading truck-mounted drill rig from C-130 transport plane in Wainwright, Alaska ..........................................................................................................................39 Figure 22. Wainwright Olgoonik Corporation ware-yard production-test-well array ..................41 Figure 23. Installing the variable-frequency-drive pump control for production testing of the W-OCP (Wainwright–3) well ..................................................................................................42 Figure 24. Fluid and ice produced from submersible-pump discharge pipe during initial 2009 production testing in Wainwright well W-OCP ........................................................................45 Figure 25. Drilling the Wainwright–10 delineation well .............................................................50 Figure 26. Surface-drive head assembly installed on W-OCP production well .........................59 Figure 27. Caliper log collected from uncased portion of the W-OCP well on July 29, 2010 ....61 v Tables Table 1. Summary of Wainwright–1 canister desorption results ................................................15 Table 2. Wainwright–1 desorbed-gas compositional analysis ...................................................17 Table 3. Wainwright–1 as-received desorbed-gas isotopic analyses ........................................18 Table 4. Wainwright–1 mud-gas analysis ..................................................................................19 Table 5. As-received geochemical analysis of well Wainwright–1 desorbed-coal samples .......21 Table 6. Mud-gas analysis from Wainwright well W-OC1 (Wainwright–8).................................43 Table 7. Raw desorption results from Wainwright–9 coal core samples ...................................46 Table 8. As-received geochemical analysis of well Wainwright–9 desorbed-coal samples .......47 Table 9. Dry-ash-free (DAF) desorption results from two Wainwright–9 coal samples .............48 Table 10. Raw desorption results from Wainwright–10 coal core samples .................................51 Table 11. As-received geochemical analysis for two Wainwright–10 desorbed-coal samples ....51 Table 12. Dry-ash-free (DAF) desorption results from two Wainwright–10 coal samples............52 Table 13. Compositional analysis of gas samples collected during 2009 season .......................55 Table 14. As-received isotopic analyses of gas samples collected during 2009 season .............56 Table 15. Chemical analysis of water samples collected from a sandstone in well Wainwright–10 and the Wainwright coalbed in well W-OCP ...........................................................56 Plates Plate 1. Slabbed core photos ........................................................................................................ link Plate 2. Geophysical logs from wells Wainwright–1 and Wainwright–2......................................... link vi Initialisms AOGCC Alaska Oil and Gas Conservation Commission AREP Alaska Rural Energy Project ASRC Arctic Slope Regional Corporation ASTM American Society for Testing and Materials BLM Bureau of Land Management CBNG coalbed natural gas DAF dry-ash-free DGGS Department of Geological and Geophysical Surveys DOE U.S. Department of Energy NSB North Slope Borough OC Olgoonik Corporation PC progressive cavity PVC polyvinyl chloride STP standard temperature and pressure TDS total dissolved solids UAF University of Alaska Fairbanks USGS U.S. Geological Survey Coalbed Natural Gas Exploration, Drilling Activities, and Geologic Test Results, 2007–2010, Wainwright, Alaska By Arthur C. Clark Abstract The U.S. Geological Survey, in partnership with the U.S. Bureau of Land Management, the North Slope Borough, and the Arctic Slope Regional Corporation conducted a four-year study designed to identify, define, and delineate a shallow coalbed natural gas (CBNG) resource with the potential to provide locally produced, affordable power to the community of Wainwright, Alaska. From 2007 through 2010, drilling and testing activities conducted at three sites in or near Wainwright, identified and evaluated an approximately 7.5-ft-thick, laterally continuous coalbed that contained significant quantities of CBNG. This coalbed, subsequently named the Wainwright coalbed, was penetrated at depths ranging from 1,167 ft to 1,300 ft below land surface. Core samples were collected from the Wainwright coalbed at all three drill locations and desorbed-gas measurements were taken from seventeen 1-ft-thick sections of the core. These measurements indicate that the Wainwright coalbed contains enough CBNG to serve as a long-term energy supply for the community. Although attempts to produce viable quantities of CBNG from the Wainwright coalbed proved unsuccessful, it seems likely that with proper well-field design and by utilizing currently available drilling and reservoir stimulation techniques, this CBNG resource could be developed as a long-term economically viable energy source for Wainwright. Introduction Alaska has an essential need to identify and develop local, clean energy alternatives for remote communities that currently rely on diesel fuel for power generation. Alaska’s North Slope is underlain by vast coal deposits estimated to hold between 7 and 36 trillion cubic feet (TCF) of coalbed natural gas (CBNG) according to a U.S. Geological Survey (USGS) assessment of North Slope coalbed natural gas resources (Roberts and others, 2008). This widespread resource has the potential to serve as a long- term, locally produced energy supply for North Slope communities that overlie coal deposits. Geologic and petrophysical evaluation of CBNG is needed to determine production capability and viability in a given location. Analyses of parameters such as depth to coal, coalbed thickness, coal rank, gas content, reservoir storage capacity, depth of permafrost, and reservoir pressure and permeability are needed to provide an accurate 2 assessment. These critical data can only be collected through exploratory drilling, testing, and analytical procedures. The U.S. Department of the Interior Alaska Rural Energy Project (AREP) is a collaborative research project between the USGS and the Alaska Bureau of Land Management (BLM) that is tasked to identify and evaluate shallow subsurface resources, such as CBNG, as a power alternative in remote Alaskan communities. A 4-year study was conducted in the North Slope community of Wainwright, Alaska, a Native community of approximately 600 people located next to the Chukchi Sea 70 mi southwest of Barrow (fig. 1). The AREP, in partnership with the North Slope Borough (NSB) and the Arctic Slope Regional Corporation (ASRC), conducted drilling and testing activities designed to identify, define, and delineate a shallow CBNG resource with the potential to provide locally produced, affordable power to the community. A 1,613-ft-deep core hole drilled in Wainwright in 2007 penetrated numerous coalbeds, ranging in thickness from several inches to 7.6 ft, nearly all of which contained significant levels of methane gas. Although most beds were located within the approximately 1,000-ft-thick zone of permafrost, a 7.6-ft-thick coalbed was encountered below the permafrost at a depth of 1,242 ft. This bed, informally named the Wainwright coalbed, became the target of subsequent delineation drilling and production testing activities conducted during the summers of 2008, 2009, and 2010. This report provides a project timeline, describes activities and procedures, presents geologic data, and provides gas-desorption, isotherm, and chemical test results from the 4-year study. Project Background As summarized by Tyler and others (2000), the Colville (North Slope), Yukon Flats, and Alaska Peninsula Basins (fig. 1), in descending order, have been identified as having the greatest CBNG development potential for areas in which primary off-grid Alaskan communities are located. In 2000, the U.S. Department of Energy (DOE) funded the Alaska Department of Geological and Geophysical Surveys (DGGS) and the USGS to conduct field studies in these basins near the communities of Wainwright, Fort Yukon, and Chignik, Alaska (fig. 1), in advance of possible CBNG drilling and testing activities near these villages. After completing these studies, the Alaska BLM and the USGS formed the AREP and, in 2004, purchased a portable diamond-core drilling rig to conduct shallow CBNG and other alternative energy drilling and testing activities near remote Alaskan communities. In 2004, the AREP, with primary funding from DOE and in collaboration with the DGGS, conducted exploratory CBNG drilling and testing activities at Fort Yukon (for results, see Clark and others, 2009). Another test hole was drilled in the permafrost on Alaska’s North Slope near Franklin Bluffs in 2005. The equipment was stored in Deadhorse, Alaska (fig. 1), and in the summer of 2006 was barged from Prudhoe Bay to Wainwright where exploratory CBNG drilling and testing activities began in the summer of 2007. Primary funding for the 2007 activities was furnished by BLM with supplemental funding provided by USGS and ASRC. 3 Figure 1. Map of Alaska showing location of Alaska Rural Energy Project coalbed natural gas study areas in green. 4 Geologic Background The village of Wainwright sits atop a nonmarine sedimentary facies of the Cretaceous (lower Albian to Cenomanian) Nanushuk Formation (Mull and others, 2003; Ahlbrandt and others, 1979), which contains up to 150 bituminous and subbituminous coalbeds ranging in thickness from a few inches to 20.2 ft (Flores and others, 2004). In the western part of the North Slope, the Nanushuk Formation includes the interval that was formerly designated the Corwin and Kukpowruk Formations (now abandoned) of the Nanushuk Group (see Molenaar1985; Wahrhaftig and others, 1994) and is composed of a thick deltaic sequence of intertonguing marine and nonmarine deposits (Molenaar, 1985). The upper nonmarine unit, primarily composed of coal-bearing delta- and alluvial-plain deposits (Chapman and Sable, 1960; Ahlbrandt and others, 1979), and the lower marine unit, consisting of offshore sands, silts, and shale (Molenaar, 1985), is separated by an intertonguing transitional unit that also contains coal deposits (Molenaar, 1985; Ahlbrandt and others, 1979; Moore and others, 1994; Callahan and Sloan, 1978; Wahrhaftig and others, 1994). Geophysical log data from three oil and gas wells drilled in the general vicinity of Wainwright, Tunalik–1 (lat 70°12′ 21.45″Ν., long 161°05′09.16″W.), Kugrua–1 (lat 70°35′13.28″N., long 158°39′43.25″W.), and Peard–1 (lat 70°42′56.32″N., long 159°00′02.52″W.) (fig. 2) were combined with data from two seismic lines (WM–WM′, TP–TP′) near Wainwright (fig. 2). These data indicate that coal-bearing strata exists beneath the community to a depth of between 1,500 and 2,000 ft before grading into the lower noncoal-bearing part of the Nanushuk Formation and marine-dominated sediments of the underlying Torok Formation (Molenaar, 1985; Sable and Stricker, 1987). USGS coal isopach maps (Roberts, 2008) based on these and other oil and gas logs suggest that between 50 and 100 ft of net coal lies beneath Wainwright (fig. 2) and mud-gas logs from the three oil and gas wells indicate that coalbeds, both in and below the permafrost zone, likely contain methane gas. Although cross sections show that much of the coal lies within the permafrost zone, it also appeared likely that coal-bearing strata extended into the subpermafrost as well. Data contained within USGS borehole temperature logs from Arctic Alaska pre-1989 database (http://esp.cr.usgs.gov/data/bht_alaska/) indicate that the zone of permafrost, based on a 0 °C isotherm, extends to a depth of approximately 1,000 ft beneath the Wainwright community. 5 Figure 2. Map showing location of drill holes, seismic lines, and coal isopach used to determine approximate depth of coal-bearing strata and net thickness of coalbeds beneath Wainwright (modified from Roberts, 2008). 6 Project Objectives Based on the available data, initial project plans were to drill a continuous core hole near Wainwright to a depth of between 2,000 and 2,500 ft that would allow AREP to conduct a preliminary evaluation of local CBNG occurrence. Priority 2007 objectives included the following: 1. Determining the depth to, and thickness of, individual coalbeds. 2. Determining the sorbed-gas content of coal cores using canister desorption techniques. 3. Collecting borehole geophysical logs. 4. Collecting hydraulic data from significant (>5 ft thick) subpermafrost coalbeds. 5. Collecting desorbed-gas samples for compositional analyses. 6. Determining gas storage capacity of tested coalbeds at reservoir temperature and pressure. 7. Determining geochemical composition and rank of coalbeds. 8. Collecting borehole temperature data to determine approximate permafrost thickness. Based on the evaluation of these data, the AREP and project partners would determine if further CBNG investigations in the Wainwright vicinity were warranted. 2007 Project Activities Due to the spongy tundra that encompasses Wainwright and vicinity, there are few locations that provide the access and space required to conduct summer drilling and testing activities. Notwithstanding, the decision was made to conduct project operations during the summer months due to the increased difficulties and costs incurred when operating in arctic winter conditions. After previewing the area in 2006, a suitable site was chosen in the Olgoonik Corporation (OC) ware-yard on the northeast edge of the community. An estimated 2,500-ft well was permitted through the Alaska Oil and Gas Conservation Commission (AOGCC) and designated as Wainwright–1 (lat 70°38′ 41.0″N., long 160°01′18.7″W.) (fig. 3). 7 Figure 3. Aerial photograph of Wainwright, Alaska, and the location of site Wainwright–1. 8 After arriving in Wainwright on June 8, 2007, with additional equipment and supplies flown in from Deadhorse via C-130 air transport, snow was removed from around the over-wintered equipment, and the site was prepared for drilling operations. Drilling began on June 11 (fig. 4) and 6-in. diameter surface casing was set and cemented to a depth of 75 ft. Coring operations began on June 14 and continued without incident through beds of siltstone, sandstone, mudstone, and coal to a depth of 1,605 ft (slabbed- core photos shown in plate 1). On June 27, while drilling at 1,613 ft, fluid circulation to the core bit was accidently interrupted, which caused the bit to become stuck in the bottom of the hole and the drill rods to fracture. Subsequent retrieval operations recovered the rods to a depth of 957 ft, but after additional unsuccessful recovery attempts, it was concluded that the remaining rods were irretrievably stuck. While collecting geophysical logs through the open portion of the well, it was discovered that the logging tools could be lowered through the top of the broken rods and run through the rods to the bottom of the hole. Logs that could be collected through the steel rods (natural gamma and density) were subsequently run from 1,613 to 957 ft, and a full set of logs was collected from 957 ft to land surface. On July 5, after a failed attempt to deflect past the broken rods and drill a parallel bore to a greater depth, a 2.5-in.-diameter temperature-monitor casing was set and grouted to a depth of 956 ft for the University of Alaska Fairbanks (UAF) and filled with a propylene glycol/water antifreeze mixture. The drill rig was then moved west approximately 25 ft to drill a second well from which to collect hydraulic data from a 7.6-ft-thick coalbed, informally named the Wainwright coalbed, penetrated in Wainwright–1 at a depth of 1,242 ft. An open-hole bore, subsequently permitted as Wainwright–2 (lat 70°38′41.0″Ν., long 160°01′19.3″W.), was drilled to a depth of 1,295 ft between July 7 and 11. Geophysical logs were collected on July 12, and the Wainwright coalbed was isolated with a set of pneumatic packers. Hydraulic data and water samples were collected from the Wainwright bed on July 12 and 13. After deflating and removing the packer string, a second temperature-monitor casing was set, grouted, and filled with antifreeze to a depth of 1,260 ft on July 14. Core samples were flown from Wainwright to Anchorage on a DC-6 charter on July 14, and the remaining equipment was winterized and stored in the OC yard for possible re-use in 2008. 9 Figure 4. Alaska Rural Energy Project rig drilling the Wainwright–1 coalbed natural gas exploration core hole. Core Equipment, Handling, and Sample Collection Wainwright coring operations were conducted using an HWL (2.5-in.-diameter core) wireline system. Rather than removing drill rods from the well to retrieve core, the wireline system allowed for drilled core to be retrieved from the well-bore by lowering an “overshot” device attached to a thin steel cable through the core rods to the bottom of the hole. The overshot latched to the core barrel innertube containing the drilled core sample and was winched to land surface and laid out for core extraction. A second innertube was then lowered through the core rods and latched into place so that drilling could continue while the retrieved core was extracted, described, and sampled. After unthreading the “head” and “shoe” from either end of the retrieved innertube, the core was carefully extruded from the tube into a core tray using a 10-ft rod or, when the core was tight, a pressure-controlled fluid pump. Once in the tray, the core was washed, measured, described, sampled, and boxed (fig. 5). When coal was present in the core, it was immediately washed, measured, cut into 1-ft lengths, and placed in gas-desorption canisters. After weighing and sealing the canisters, they were placed in a thermal bath for desorption. Only after the gas-desorption process had started were coal-sample depth intervals determined and other critical data such as sample depth and weight, time off bottom, time at surface, and time canister sealed, entered into desorption spreadsheets. The remaining portion of the core was then measured, described, and boxed. 10 Figure 5. Project geologists describing and boxing core samples from the Wainwright–1 core hole. A net thickness of 70 ft of coal was penetrated in the Wainwright–1 well, with bed thickness ranging from several inches to 7.6 ft. Although all coal cores were not desorbed, most coalbeds with a thickness exceeding 1 ft had at least one desorption sample taken. As drilling extended below the estimated depth of permafrost, two desorption samples were taken from several of the thicker coalbeds. Four 1-ft desorption samples were taken from the 7.6-ft-thick Wainwright coalbed penetrated at 1,242 ft. A total of twenty-five 1-ft coal samples were desorbed, ranging in depth from 105.0 to 1,477.5 ft. Core was drilled in full 10-ft runs whenever possible, and total core recovery was approximately 95 percent. A generalized lithologic core column was constructed by Stephen B. Roberts of the USGS and is included in cross sections depicted in Clark and others (2010). Detailed core descriptions and depositional interpretations were made by David L. LePain of the Alaska DGGS and Paul L. Decker of the Alaska Department of Natural Resources and are awaiting publication. Geophysical Logging Geophysical logs were collected using a project-owned Century Geophysical Corporation portable logging system. Due to the broken core rods lost in well Wainwright–1, natural gamma and density were the only logs that could be collected from the bottom of the well (1,613 ft) to the top of the broken rods (957 ft). The suite of 11 natural gamma, density, resistivity, and caliper logs were collected from 957 ft to land surface. Natural gamma, resistivity, and caliper logs were also collected from well Wainwright–2 from the bottom depth of 1,295 ft to land surface. A combination of the geophysical logs from wells Wainwright–1 and Wainwright–2 and a logged-well-location map are shown in plate 2. Coal Desorption Coal-gas content was determined using direct desorption methods as described in Diamond and Levine (1981), Mavor and Nelson (1997), Diamond and Schatzel (1998), and the American Society for Testing and Materials (ASTM) Standard Practice for Determination of Gas Content of Coal (ASTM, 2011), among others. Cores were desorbed in sealed 3-in.-diameter polyvinyl chloride (PVC) canisters filled with distilled water to allow for zero headspace measurements as described in Barker and Dallegge (2005). Once canisters were sealed and placed in thermal baths (fig. 6), regular readings were taken for (1) time, (2) ambient temperature, (3) thermal bath temperature, (4) barometric pressure, and (5) desorbed-gas volume. In general, these readings were taken every 5 minutes for the first half-hour, every 10 minutes for the next hour, and every 15 minutes for the next 2 hours. Subsequent readings were taken at progressively longer intervals depending on the amount of gas being measured. The coal cores were still desorbing at the mid-July conclusion of field operations, and samples needed to be air- freighted from Wainwright to the USGS laboratory in Denver, Colo., for continued desorption. Ten days prior to shipping, the thermal bath temperatures were significantly increased to desorb as much gas as possible from the coal before shipment. Final readings were taken in Wainwright on July 14 with no additional readings taken until the canisters arrived in Denver on July 20. In Denver, the canisters were kept at room temperature (approximately 70 °F) and measured on a weekly, biweekly, and monthly basis until desorption was completed. The total desorption period for the majority of coal samples, especially those collected from depths in excess of 500 ft, was approximately 7 months. Data were entered into spreadsheets as described in Barker and others (2002), and measured values were corrected to standard temperature and pressure (STP), desorption graphs were generated, and lost-gas values were determined. 12 Figure 6. Wainwright–1 coal desorption canisters in thermal baths. Lost-Gas Estimate Desorption begins from a gas-bearing coal core as soon as the sample is lifted from well bottom (entered in the desorption spreadsheet as “time zero”) and continues, unmeasured, at land surface until the sample is sealed in a desorption canister. The actual total sorbed-gas content of a coal sample is determined by adding this “lost-gas” value to the cumulative measured values. For this report, lost-gas values were calculated by examining the graph of cumulative desorbed gas versus the square root of elapsed time (the time between time zero and the desorption readings) and selecting the early-time points that plot in a linear manner. These points were used to establish a regression line that intersects the y-axis (time zero) at the negative lost-gas value (fig. 7). The absolute value of this number is added to the measured gas values to determine the actual desorbed-gas volume. By using a wireline system to quickly retrieve cores from the well, the lapsed time from when coal cores were lifted off the bottom to when they were sealed in desorption canisters was generally less than 30 minutes. 13 Figure 7. Graph depicting desorption regression line used to determine lost-gas value. Abbreviation: cc, cubic centimeters. 14 Because gas-desorption rates are highly temperature-dependent, it is important that the early-time desorption readings used for lost-gas calculations be made at temperatures as close to the actual lost-gas desorption temperature as possible. Although a majority of coalbeds cored for this study occur within the zone of permafrost (for this report defined as ground temperature <32 °F (0 °C)), temperature measurements taken at the core face immediately after retrieval indicated that the core samples had thermally equilibrated to the drilling-fluid during the drilling and core-retrieval process. It was therefore assumed that lost-gas desorption occurred at drilling-fluid temperature rather than at coal reservoir temperature. Consequently, desorption baths were kept near drilling-fluid temperature, which generally ranged from 45–55 °F (7.2–12.8 °C). Although drilling-fluid temperatures did fluctuate over time (warmer ambient temperature equaled warmer drilling-fluid temperature), fluid temperatures generally remained in this range. Desorption Results With the exception of a 7.2-ft-thick coalbed penetrated just below 100 ft, all coalbeds penetrated in the Wainwright–1 well contained significant volumes of gas. Raw gas-desorption values ranged from a low of 52.8 standard cubic feet of gas per ton (scf/ton) of coal at a depth of 249 ft to a high of 187.3 scf/ton at a depth of 1,477 ft. On a dry-ash-free (DAF) basis, these raw numbers increased from 74.2 to 232.9 scf/ton, respectively. Full gas-desorption values are given in table 1. 15 Table 1. Summary of Wainwright–1 canister desorption results. [Abbreviations: ft, foot; g, grams; cc, cubic centimeters; scf/ton, standard cubic feet per ton; DAF, dry-ash- free; STP, standard temperature and pressure] Canister Depth interval (ft) Coal mass raw (g) Coal mass DAF (g) Lost gas (cc) Desorbed gas @ STP (cc) Desorbed gas (scf/ton) DAF gas (scf/ton) from to W1–1 105.0 106.0 1149 726 7 74 2.3 3.6 W1–2 217.9 218.4 514 328 50 863 56.9 89.1 W1–3 245.0 246.0 1095 757 200 2027 65.1 94.2 W1–4 249.0 250.1 1149 817 80 1815 52.8 74.2 W1–5 309.8 310.8 1089 732 120 1816 56.9 84.7 W1–6 365.1 366.1 1132 683 120 1937 58.2 96.5 W1–7 470.9 471.7 869 461 300 1526 67.2 126.9 W1–8 478.2 479.3 1108 786 140 2697 81.9 115.5 W1–9 512.4 513.3 1046 770 260 2808 93.9 127.5 W1–10 569.8 570.8 1073 796 100 2784 86.0 116.0 W1–11 700.7 701.7 1028 779 100 3343 107.2 141.4 W1–12 787.6 788.6 1124 803 200 3903 116.8 163.5 W1–13 899.1 900.0 1088 818 240 3852 120.4 160.0 W1–14 906.0 906.9 1533 674 600 2496 64.6 147.0 W1–15 957.7 958.7 1006 753 200 4455 148.1 197.8 W1–16 956.1 957.1 976 742 250 3411 120.0 157.8 W1–17 984.7 985.7 1701 1297 250 4489 89.1 116.9 W1–18 983.0 984.0 1140 843 240 3959 117.9 159.3 W1–19 1028.2 1029.2 1027 749 260 4277 141.4 193.9 W1–20 1244.9 1245.9 1108 780 400 2283 77.5 110.1 W1–21 1245.9 1246.9 1046 747 250 4911 157.9 221.0 W1–22 1248.6 1249.6 891 559 600 3604 151.0 240.7 W1–23 1250.9 1251.9 1079 875 275 4861 152.3 187.7 W1–24 1313.6 1314.6 1006 715 200 4718 156.4 220.0 W1–25 1477.5 1478.5 1073 863 200 6081 187.3 232.9 Desorbed-Gas and Mud-Gas Samples Desorbed-gas samples were collected from six desorption canisters with depths ranging from 245 to 1,477 ft. The samples were collected by fitting a 75-mm stainless steel canister, at atmospheric pressure, inline between the PVC desorption canister and the manometer used to measure desorbed-gas volume. When a desorption measurement was made, gas released from the desorption canister flowed through the sample canister before entering the manometer. Closing the needle valve on each end of the sample canister thus captured a 75-mm volume of the desorbed gas. The gas samples were sent to Isotech Laboratories in Champaign, Ill., for compositional and isotopic analyses. Because the sample canisters were not purged of atmospheric gas prior to sampling, it is assumed that all oxygen (O2) gas reported in the analyses was the result of atmospheric contamination (a gas sample collected during Wainwright coalbed production testing in 2009 contained only minor O2 (0.24 percent), thereby confirming this assumption). After 16 normalizing data to an air-free basis, all samples had a methane (CH4) content in excess of 99 mol-percent. As-received and normalized desorbed-gas compositional analyses are shown in table 2. The δ13C1 of the six desorbed-gas samples ranges from –59.97 to –53.97 o/oo with an average of –56.38 o/oo. The δDC1 for the samples ranges from –258.2 to –244.1 o/oo and averages –251.6 o/oo. This isotopic signature suggests that the methane is a mixture of biogenically and thermogenically derived gases (Whiticar, 1999). The general increase in δ13C1 with depth may indicate an increased thermogenic component as depth increases. Desorbed-gas isotopic analyses are shown in table 3. 17 Table 2. Wainwright–1 desorbed-gas compositional analysis. [Abbreviations: %, percent] Gas composition as-received Sample name Sample depth He % H2 % Ar % O2 % CO2 % N2 % CO % C1 % C2 % C2H4 % C3 % iC4 % nC4 % iC5 % nC5 % C6+ % W1-3 245.0 0.00 0.01 0.14 3.09 0.45 12.04 0.00 84.27 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 W1-6 365.1 0.00 0.02 0.05 0.96 0.32 3.92 0.00 94.72 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 W1-11 700.7 0.00 0.00 0.07 1.37 0.05 5.62 0.00 92.88 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 W1-19 1028.2 0.00 0.00 0.10 2.25 0.06 8.39 0.00 89.19 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 W1-22 1248.6 0.00 0.00 0.11 2.45 0.05 9.52 0.00 87.87 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 W1-25 1477.5 0.00 0.00 0.16 3.62 0.11 13.92 0.00 82.18 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Gas composition with atmospheric contamination removed Sample name Sample depth He % H2 % Ar % O2 % CO2 % N2 % CO % C1 % C2 % C2H4 % C3 % iC4 % nC4 % iC5 % nC5 % C6+ % W1-3 245.0 0.00 0.01 0.00 0.00 0.44 0.52 0.00 99.03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 W1-6 365.1 0.00 0.02 0.01 0.00 0.32 0.36 0.00 99.30 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 W1-11 700.7 0.00 0.00 0.01 0.00 0.05 0.51 0.00 99.43 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 W1-19 1028.2 0.00 0.00 0.00 0.00 0.05 0.00 0.00 99.95 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 W1-22 1248.6 0.00 0.00 0.00 0.00 0.05 0.39 0.00 99.57 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 W1-25 1477.5 0.00 0.00 0.00 0.00 0.10 0.43 0.00 99.48 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Sample name Sample depth δ13CO2 ‰ δ13C1 ‰ δDC1 ‰ Specific gravity BTU W1-3 245.0 -11.37 -59.97 -249.0 0.626 854 W1-6 365.1 -7.04 -58.35 -257.2 0.579 961 W1-11 700.7 -56.99 -258.2 0.586 942 W1-19 1028.2 -53.97 -244.1 0.603 904 W1-22 1248.6 -54.10 -251.7 0.608 891 W1-25 1477.5 -6.41 -54.91 -249.1 0.634 833 18 Table 3. Wainwright–1 as-received desorbed-gas isotopic analyses. [Abbreviations: Btu, British thermal units; o/oo, per mil] Sample name Sample depth δ13CO2 ‰ δ13C1 ‰ δDC1 ‰ Specific gravity BTU W1-3 245.0 -11.37 -59.97 -249.0 0.626 854 W1-6 365.1 -7.04 -58.35 -257.2 0.579 961 W1-11 700.7 -56.99 -258.2 0.586 942 W1-19 1028.2 -53.97 -244.1 0.603 904 W1-22 1248.6 -54.10 -251.7 0.608 891 W1-25 1477.5 -6.41 -54.91 -249.1 0.634 833 Mud-gas was monitored using a system rented from Mudlogging Systems, Inc., of Grand Junction, Colo. Mud-gas samples were collected at 100-ft intervals as well as from several gas-bearing coalbeds and sent to Isotech Laboratories for compositional and isotopic analyses. Mud-gas analyses are shown in table 4. 19 Table 4. Wainwright–1 mud-gas analysis. [Abbreviations: ppm, parts per million; n-a, not available] Sample name Sample date Sample time Depth feet Gas units O2 + Ar ppm CO2 ppm N2 ppm CO ppm C1 ppm C2 ppm C2H4 ppm C3 ppm C3H6 ppm iC4 ppm nC4 ppm iC5 ppm nC5 ppm C6+ ppm δ13C1 per mil W1-MG-1 6/14/2007 13:57 100 0 213400 150 786400 40 29 1 0 0 0 0 0 0 0 1 n-a W1-MG-2 6/14/2007 23:00 200 35.9 217400 140 779200 70 3170 0 0 0 0 0 0 0 0 0 -60.3 W1-MG-3 6/15/2007 11:30 220 280 207300 150 773000 70 19500 0 0 0 0 0 0 0 0 0 -59.1 W1-MG-4 6/15/2007 14:53 250 1340 186300 160 754100 110 59300 0 0 0 0 0 0 0 0 0 -59.7 W1-MG-5 6/15/2007 22:05 320 195 200800 170 784100 90 14800 2 0 0 0 0 0 0 0 0 -57.8 W1-MG-6 6/16/2007 6:52 400 46 200100 230 795200 40 4450 0 0 0 0 0 0 0 0 0 -57.5 W1-MG-7 6/16/2007 21:30 500 85 191700 290 801600 60 6390 1 0 0 0 0 0 0 0 0 -56.9 W1-MG-8 6/17/2007 9:35 600 6.5 219700 390 779900 0 7 0 0 0 0 0 0 0 0 0 n-a W1-MG-9 6/17/2007 23:17 703 210 195400 340 746200 0 58100 0 0 0 0 0 0 0 0 0 -54.7 W1-MG-10 6/18/2007 12:35 805 80 204800 330 787600 130 7140 1 0 0 0 0 0 0 0 0 -55.2 W1-MG-11 6/19/2007 0:31 900 998 194200 390 759400 30 46000 5 0 1 0 0 0 0 0 0 -54.3 W1-MG-12 6/19/2007 7:45 985 3350 167900 390 699300 0 132400 0 0 0 0 0 0 0 0 0 -54.1 W1-MG-13 6/19/2007 21:40 1000 165 190500 350 795500 60 13600 1 0 0 0 0 0 0 0 0 -54.4 W1-MG-14 6/20/2007 10:57 1100 247 195700 340 784600 0 19400 2 0 0 0 0 0 0 0 0 -53.8 W1-MG-15 6/21/2007 11:55 1200 65 203900 350 788200 0 7570 1 0 0 0 0 0 0 0 0 -53.8 W1-MG-16 6/21/2007 20:10 1250 1650 179500 490 722300 0 97700 0 0 0 0 0 0 0 0 0 -53.2 W1-MG-17 6/22/2007 5:50 1300 70 208200 400 787100 0 4250 1 0 0 0 0 0 0 0 0 -54.3 W1-MG-18 6/24/2007 15:25 1400 50 203300 230 791700 0 4770 0 0 0 0 0 0 0 0 0 -53.6 W1-MG-19 6/26/2007 6:55 1500 41 219200 330 780300 0 184 0 0 0 0 0 0 0 0 0 n-a W1-MG-20 6/27/2007 13:59 1600 57 196600 440 797500 0 5460 1 0 0 0 0 0 0 0 0 -52.2 20 Coal Analyses Once gas desorption was completed, splits from each of the 25 desorbed-coal cores were sent to Geochemical Testing in Somerset, Penn., for coal analyses. Analyses run included proximate (moisture, ash, volatile matter, fixed carbon), ultimate (carbon, hydrogen, oxygen, nitrogen, sulfur), Btu, free-swelling index, equilibrium moisture, specific gravity, and forms of sulfur. Moist, mineral-matter-free Btu and coal rank were determined according to ASTM standard specifications for classification of coals by rank (ASTM, 1981). On this basis, coal rank ranged from subbituminous C to subbituminous A. Coal analyses are shown in table 5. 21 Table 5. As-received geochemical analysis of well Wainwright–1 desorbed-coal samples. [Abbreviations: ft, feet; Wt.-%, weight percent; lb, pound; Btu, British thermal units; Sub A, subbituminous A; Sub B, subbituminous B; Sub C, subbituminous C] Wainwright-1 Sample name W1-1 W1-2 W1-3 W1-4 W1-5 W1-6 W1-7 W1-8 W1-9 W1-10 W1-11 W1-12 W1-13 Sample depth (ft) 105 218 245 249 310 365 471 478 512 570 701 788 899 Air Dry Loss: Wt.-% 22.21 20.64 21.99 22.75 23.87 20.6 19.77 21.58 21.27 19.16 19.46 21.27 18.01 Residual Moisture: Wt.-% 4.18 4.39 3.76 5.19 3.52 4.21 3.51 4.95 3.91 4.57 3.42 3.95 3.65 Moisture: Wt.-% 25.46 24.12 24.92 26.76 26.55 23.94 22.59 25.46 24.35 22.85 22.21 24.38 21 Ash: Wt.-% 11.35 12.05 5.98 2.15 6.27 15.76 24.41 3.6 2.02 2.98 1.97 4.16 3.8 Volatile Matter: Wt.-% 26.35 26.83 26.05 27.28 26.77 24.33 21.2 28.35 28.42 31.11 30.51 29.89 29.65 Fixed Carbon: Wt.% 36.84 37 43.05 43.81 40.41 35.97 31.8 42.59 45.21 43.06 45.31 41.57 45.55 Hydrogen: Wt.% 3.21 3.39 3.26 3.54 3.36 3.07 2.62 3.6 3.64 3.89 3.94 3.74 3.79 Carbon: Wt.-% 46.4 47.46 52.76 53.39 50.56 45.62 39.99 54.02 56.64 56.71 58.19 54.8 58.15 Nitrogen: Wt.-% 1.1 1.11 0.91 1.38 1.05 1.05 0.69 1.06 0.99 1.22 1.3 1.14 1.16 Sulfur: Wt.-% 0.35 0.63 0.38 0.49 0.4 0.45 0.38 0.48 0.42 0.51 0.54 0.57 0.84 Oxygen: Wt.-% 12.13 11.24 11.79 12.29 11.81 10.11 9.32 11.78 11.94 11.84 11.85 11.21 11.26 Heating Value: Btu/lb 7905 8209 8973 8930 8727 7756 6845 9364 9767 9906 10188 9568 10160 Sulfate Sulfur: Wt.-% 0.02 0.02 0.02 0.02 0.03 0.02 0.02 0.01 0.03 0.01 0.03 0.04 0 Pyritic Sulfur: Wt.-% 0.03 0.01 0.02 0.02 0 0.01 0.01 0 0 0.02 0.01 0.01 0.1 Organic Sulfur: Wt.-% 0.3 0.6 0.34 0.45 0.37 0.42 0.35 0.47 0.39 0.48 0.5 0.52 0.74 Equilibrium Moisture: Wt.-% 24.83 22.39 21.28 24.29 23.72 22.21 17.14 22.85 20.83 20.86 20.55 20.86 18.37 Lbs Sulfur/Million BTU 0.44 0.77 0.42 0.55 0.46 0.58 0.56 0.51 0.43 0.51 0.53 0.6 0.83 True Specific Gravity 1.56 1.55 1.5 1.48 1.5 1.63 1.73 1.46 1.46 1.46 1.49 1.48 1.43 MoistMineralMatterFree: BTU 9009 9439 9594 9142 9362 9348 9296 9745 9987 10239 10413 10021 10602 Apparent Rank: Sub C Sub C Sub B Sub C Sub C Sub C Sub C Sub B Sub B Sub B Sub B Sub B Sub A 22 Table 5. As-received geochemical analysis of well Wainwright–1 desorbed-coal samples.—Continued [Abbreviations: ft, feet; Wt.-%, weight percent; lb, pound; Btu, British thermal units; Sub A, subbituminous A; Sub B, subbituminous B; Sub C, subbituminous C] Wainwright-1 Sample name W1-14 W1-15 W1-16 W1-17 W1-18 W1-19 W1-20 W1-21 W1-22 W1-23 W1-24 W1-25 Sample depth (ft) 906 958 957 985 983 1028 1245 1246 1249 1251 1314 1478 Air Dry Loss: Wt.-% 19.93 18.09 18.71 19.42 21.07 17.26 17.81 24.11 18.88 14.28 23.82 14.97 Residual Moisture: Wt.-% 3.57 3.28 4.07 3.21 4.14 3.69 3.93 3.29 3.91 3.42 4.01 3.11 Moisture: Wt.-% 22.79 20.78 22.02 22.01 24.34 20.31 21.04 26.61 22.05 17.21 26.87 17.61 Ash: Wt.-% 33.24 4.36 1.93 1.76 1.69 6.78 8.58 1.94 15.22 1.67 2.03 1.96 Volatile Matter: Wt.-% 19.87 33.02 31.65 32.66 28.82 31.83 30.88 29.29 27.79 35.02 28.09 36.17 Fixed Carbon: Wt.% 24.1 41.84 44.4 43.57 45.15 41.08 39.5 42.16 34.94 46.1 43.01 44.26 Hydrogen: Wt.% 2.51 4.13 3.99 4.01 3.7 3.87 3.9 3.77 3.52 4.41 3.73 4.45 Carbon: Wt.-% 32.45 57.97 59.53 59.14 56.76 55.55 53.77 54.91 47.64 62.54 54.88 61.96 Nitrogen: Wt.-% 0.77 1.27 1.12 1.2 1.37 1.19 1.22 1.25 1.18 1.36 1.16 1.48 Sulfur: Wt.-% 0.35 0.46 0.42 0.37 0.39 0.43 0.55 0.39 0.32 0.34 0.53 1.34 Oxygen: Wt.-% 7.89 11.03 10.99 11.51 11.75 11.87 10.94 11.13 10.07 12.47 10.8 11.2 Heating Value: Btu/lb 5733 10282 10444 10319 9846 9672 9602 9626 8488 11083 9683 10983 Sulfate Sulfur: Wt.-% 0.02 0 0.01 0 0.02 0 0 0.01 0.02 0.01 0.02 0.03 Pyritic Sulfur: Wt.-% 0.01 0 0 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.65 Organic Sulfur: Wt.-% 0.32 0.46 0.41 0.36 0.36 0.42 0.54 0.37 0.29 0.32 0.5 0.66 Equilibrium Moisture: Wt.-% 16.54 17.12 16.54 18.88 21.42 17.88 15.48 17.32 15.62 15.3 17.69 12.97 Lbs Sulfur/Million BTU 0.61 0.45 0.4 0.36 0.4 0.44 0.57 0.41 0.38 0.31 0.55 1.22 True Specific Gravity 1.79 1.42 1.38 1.43 1.46 1.5 1.44 1.41 1.58 1.48 1.47 1.45 MoistMineralMatterFree: BTU 8943 10795 10670 10522 10031 10440 10588 9834 10160 11291 9902 11237 Apparent Rank: Sub C Sub A Sub A Sub A Sub B Sub B Sub A Sub B Sub B Sub A Sub B Sub A 23 Isotherm Analyses Isotherm analyses are used to determine the maximum volume of gas that a coal body can adsorb at reservoir temperature and pressure. By introducing methane gas to a crushed, gas-free, coal sample maintained at reservoir temperature, and measuring the volume required to saturate the sample at increasing pressures, a sorption isotherm curve can be constructed. Using this curve in conjunction with desorbed-gas measurements allows a determination to be made as to whether a coalbed reservoir is saturated with gas and, if not, the pressure drop required for saturation to occur and desorption to begin. Once canister desorption was complete, samples from 9 of the 25 desorbed-coal cores were sent to Ticora Laboratories in Golden, Colo., for isotherm analysis. Sample depths ranged from 249 to 1,477.5 ft. Estimated reservoir temperatures were based on the temperature log collected from well Wainwright–2 by UAF on Sept. 19, 2007, and ranged from a low of 19 °F at 249 ft to a high of 38 °F at 1,477.5 ft. Reservoir pressures were calculated by taking the sample depth, subtracting the approximate local potentiometric surface of 30 ft (Edwin Weeks, USGS, oral commun., Nov. 13, 2007), multiplying the result by the freshwater hydrostatic pressure of 0.433 pounds per square inch (psi), and adding a sea-level atmospheric pressure of 14.7 psi. The resulting reservoir pressures ranged from a low of 110 psi at a depth of 249 ft to a high of 641 psi at a depth of 1,477.5 ft. The isotherm graphs are shown in figures 8 through 18. Theoretically, the Langmuir curve indicates the maximum volume of sorbed-gas a coal body can hold at reservoir temperature and a given pressure. Therefore, assuming that reservoir temperature and pressure are correct, a coal sample should not be capable of desorbing more gas than what the Langmuir curve indicates its maximum storage limit to be. However, in the nine samples on which isotherm analyses were conducted, the amount of gas desorbed from the core samples consistently exceeded their calculated storage capacity, with excesses ranging from a low of 9 percent to a high of 93 percent. Due to the discordant nature of the desorption and isotherm data, samples from two of the previously analyzed coal cores were sent to RMB Earth Science Consultants, Inc. (RMB), in Delta, British Columbia, for comparative isotherm analyses. The RMB reported storage values were 78 percent higher for a sample from a depth of 1,028 ft (130 vs. 73 scf/ton) and 60 percent higher for a sample from a depth of 1,246 ft (230 versus 144 scf/ton) than the Ticora reported values (figs. 13–16). The RMB results indicated that the measured desorbed-gas content of the coalbed at 1,028 ft was 8 percent greater than its measured storage capacity (fig. 14), whereas the measured desorbed-gas content of the coalbed at 1,246 ft was 31 percent less than its measured storage capacity (fig 16). It is unclear why such unusual and discordant results occurred. If, in fact, reservoir temperature was significantly overestimated and (or) reservoir pressure was significantly underestimated, the desorption results would better fit the Langmuir curves. However, the temperature log collected from well Wainwright–2 provided a detailed temperature profile to a depth of 1,260 ft, and hydraulic testing in the same well provided an accurate reservoir pressure for the 1,242-ft-deep Wainwright coalbed. It was postulated that perhaps some of the core samples contained some amount of methane-rich gas hydrate that, upon melting, would release appreciable amounts of additional methane 24 gas in the desorption canisters. However, no sign of gas hydrate was ever noted during visual inspection and, more telling, desorption data did not indicate elevated early-time gas release as would be expected if hydrates were indeed present in the core. Additionally, many of the coalbeds, including three from which isotherms were run, are located above the area’s estimated hydrate-stability zone (Tim Collett, USGS, written commun., Oct. 12, 2007). Given the discrepancies, it was postulated that having isotherm analyses run at such anomalously low temperatures might lead to analytical complications and inaccuracies and that this was the likely explanation for the unusual results. Although it cannot be said with certainty, for this report, it is assumed that the coal reservoirs are either at or near gas-saturation levels. The production of methane in the early stages of subsequent-year reservoir testing (see 2008 and 2009 project results) suggests that the Wainwright coalbed is, in fact, saturated with methane gas. 25 Figure 8. Isotherm chart from well Wainwright–1, desorption canister W1-4, analyzed by Ticora Laboratories. Abbreviations: scf/ton, standard cubic feet per ton; psi, pounds per square inch; psia, pounds per square inch absolute. 26 Figure 9. Isotherm chart from well Wainwright–1, desorption canister W1-9, analyzed by Ticora Laboratories. Abbreviations: scf/ton, standard cubic feet per ton; psi, pounds per square inch; psia, pounds per square inch absolute. 27 Figure 10. Isotherm chart from well Wainwright–1, desorption canister W1-11, analyzed by Ticora Laboratories. Abbreviations: scf/ton, standard cubic feet per ton; psi, pounds per square inch; psia, pounds per square inch absolute. 28 Figure 11. Isotherm chart from well Wainwright–1, desorption canister W1-15, analyzed by Ticora Laboratories. Abbreviations: scf/ton, standard cubic feet per ton; psi, pounds per square inch; psia, pounds per square inch absolute. 29 Figure 12. Isotherm chart from well Wainwright–1, desorption canister W1-18, analyzed by Ticora Laboratories. Abbreviations: scf/ton, standard cubic feet per ton; psi, pounds per square inch; psia, pounds per square inch absolute. 30 Figure 13. Isotherm chart from well Wainwright–1, desorption canister W1-19, analyzed by Ticora Laboratories. Abbreviations: scf/ton, standard cubic feet per ton; psi, pounds per square inch; psia, pounds per square inch absolute. 31 Figure 14. Isotherm chart from well Wainwright–1, desorption canister W1-19, analyzed by RMB Earth Science Consultants, Inc. Abbreviations: scf/ton, standard cubic feet per ton; psi, pounds per square inch; psia, pounds per square inch absolute. 32 Figure 15. Isotherm chart from well Wainwright–1, desorption canister W1-21, analyzed by Ticora Laboratories. Abbreviations: scf/ton, standard cubic feet per ton; psi, pounds per square inch; psia, pounds per square inch absolute. 33 Figure 16. Isotherm chart from well Wainwright–1, desorption canister W1-21, analyzed by RMB Earth Science Consultants, Inc. Abbreviations: scf/ton, standard cubic feet per ton; psi, pounds per square inch; psia, pounds per square inch absolute. 34 Figure 17. Isotherm chart from well Wainwright–1, desorption canister W1-23, analyzed by Ticora Laboratories. Abbreviations: scf/ton, standard cubic feet per ton; psi, pounds per square inch; psia, pounds per square inch absolute. 35 Figure 18. Isotherm chart from well Wainwright–1, desorption canister W1-25, analyzed by Ticora Laboratories. Abbreviations: scf/ton, standard cubic feet per ton; psi, pounds per square inch; psia, pounds per square inch absolute. 36 Temperature Log A string of thermistors was placed in monitor well Wainwright–2 by UAF personnel on Sept. 19, 2007, and subsurface temperature measurements were collected. A diagram of the temperature readings is shown in figure 19. Figure 19. Wainwright–2 temperature log collected by the University of Alaska Fairbanks. Water Chemistry Although water samples were collected from the Wainwright coalbed in the Wainwright–2 well, analytical results suggest that surface water used in the mixing of drilling fluids had not been fully purged from the well prior to sampling. Water samples collected from the Wainwright coalbed during 2009 production testing and presented later in this report (see 2009 water chemistry section) confirmed this contamination. Therefore, analyses of the 2007 water samples are not presented. 37 2007 Project Summary and 2008 Plans The 2007 drilling and testing effort demonstrated that coalbeds underlying Wainwright, Alaska, contain significant volumes of methane gas and that they are probably at or near full-saturation levels. Preliminary in-place resource calculations for the Wainwright coalbed, based on a 7.5-ft-bed thickness and four core samples with an average desorbed-gas content of 135 scf/ton and an average specific gravity of 1.48, indicated that each square mile of the coalbed holds approximately 1.18 billion standard cubic feet (bscf) of gas. Based on an energy balance of 1,000 scf of natural gas equaling 7.2 gallons (gal) of diesel fuel, replacing the annual community usage of approximately 1,000,000 gal of diesel fuel would require approximately 0.14 bscf of gas. These numbers suggested that the Wainwright coalbed, if laterally expansive, contains enough gas to serve as a possible long-term energy source for the community. After reviewing these results with project partners, a 2008 plan was formulated to (1) drill at least one well at as great a distance from Wainwright–1 as possible to delineate the extent of the Wainwright coalbed and to confirm its gas content, (2) install an array of a single-production well with 4 or 5 monitor wells at the OC ware-yard site to allow preliminary reservoir production testing of the Wainwright coalbed, and (3) drill one of these wells to a depth of approximately 2,500 ft to explore for deeper coalbeds. On Nov. 13, 2007, results of the 2007 project activities were presented at a meeting of the NSB general Assembly in Barrow, Alaska. In February 2008, after reviewing the 2008 project proposal, the General Assembly voted to commit funds for the project. Subsequently, a not-to-exceed 5-year collaborative agreement between the USGS and NSB was drafted and signed. A CBNG well-field production class, funded by the ASRC and presented by MHA Petroleum Consultants of Lakewood, Colo., was attended by USGS, BLM, ASRC, and NSB personnel in Golden, Colo., on Apr. 9–10, 2008. The primary purpose of the class was to examine the data collected during 2007 Wainwright drilling activities and design a production test that would effectively define reservoir properties and establish production potential. During discussions, it became evident that a longer test than that outlined in the initial 2008 proposal would be required to adequately establish reservoir properties. Subsequent to the class, 2008 project plans were therefore modified to drill a single delineation well and install a six-well array (fig. 20) to conduct a short production test, test methods, and collect preliminary reservoir data in preparation for a more extensive production test in 2009. In April 2008, permit applications were submitted to AOGCC to drill one delineation well, one production well, and five monitor wells. These wells were permitted by AOGCC as Wainwright–3, –4, –5, –6, –7, –8 and –9. 38 Figure 20. Diagram of proposed Wainwright Olgoonik Corporation ware-yard production-test-well array. 2008 Equipment Transport Upon signing the collaborative agreement with the North Slope Borough, the USGS began assembling equipment and purchasing supplies for the upcoming 2008 field season. Because the core rig was inadequate to effectively drill the noncore wells, a larger truck-mounted drilling rig and 3,000 ft of rotary-core drill pipe were transported from Denver to Prudhoe Bay for air transport to Wainwright. PVC monitor-well casing was purchased and shipped to Prudhoe Bay from Manhattan, Kans., and drill mud, cement, well-completion supplies, 6-in. steel pipe, and drums of propylene glycol for use as antifreeze were purchased and shipped to Prudhoe Bay from Fairbanks, Alaska. During transport, 500 ft of the drill pipe was severely damaged leaving 2,500 ft of pipe available for 2008 project use. USGS project personnel arrived in Prudhoe Bay on May 29, 2008, prepared equipment for air transport, and flew to Wainwright on May 31. On June 1–2, six C-130 cargo flights of equipment and supplies were flown from Prudhoe Bay to Wainwright (fig. 21) where it was unloaded, reassembled, and prepared for drilling activities. 39 Figure 21. Unloading truck-mounted drill rig from C-130 transport plane in Wainwright, Alaska. 2008 Project Activities Initial plans were to begin 2008 activities at the delineation site chosen near the Wainwright landfill approximately 1.9 mi northeast of the Wainwright–1 test well. Upon arrival, however, it was clear that access to the permitted site would not be possible for at least several weeks while remaining snow drifts melted and the area dried. Rather than delay, it was decided to begin drilling at the OC ware-yard where surface conditions allowed immediate equipment access for the 2,500-ft W-OC1well (AOGCC Wainwright– 8, lat 70°38′37.1″Ν., long 160°01′25.9″W.). Drilling commenced on June 6. The well was drilled from June 7–13 to a depth of 2,450 ft, and geophysical logs (natural gamma, density, caliper, and resistivity) were collected on June 14. After plugging the bottom 1,185 ft of the hole with abandonment grout, the monitor well was set and completed in the Wainwright coalbed from June 15–17. After filling the monitor well with a propylene glycol/water antifreeze mixture, equipment was moved to the second well site. Monitor well W-OC2 (AOGCC Wainwright–6, lat 70°38′39.0″N., long 160°01′22.9″W.) was drilled to a depth of 1,265 ft, and a monitor well was set and completed in the Wainwright coalbed from June 18–24. Work began on well W-OC3 (AOGCC Wainwright–4, lat 70°38′40.3″N., long 160°01′21.2″W. ) on June 25, but equipment problems on June 27 required the crews to cease operations and return to Denver while 40 repair parts were purchased and shipped to Wainwright. Drill-crew personnel returned to Wainwright on July 11 and drilling resumed on July 12. Monitor well W-OC3 was set and completed on July 14. Monitor well W-OC4 (AOGCC Wainwright–5, lat 70°38′39.5″N., long 160°01′18.3″W.) was drilled, set, and completed from July 15–19. Given the close proximity between wells Wainwright–1, –2, and W-OC1 and the excellent correlation of strata between these wells, geophysical logs were not collected from the W-OC2, -OC3, and -OC4 wells. Due to the extended time required to drill, set, and complete the four monitor wells, a decision was made to forego the fifth monitor well (AOGCC well Wainwright–7). The production well W-OCP (AOGCC Wainwright–3, lat 70°38′39.6″N., long 160°01′20.8″W.) was drilled between July 20–28 to a depth of 1,234 ft. To retain the full thickness of the Wainwright coalbed for testing purposes and to protect the coal reservoir from drilling fluid or cement contamination, it was decided to set production casing 8 ft above, rather than into the coalbed itself. A 6 5/8-in.-diameter steel casing string was set and cemented to 1,234 ft on July 30–31 and a 6-in.-diameter hole was drilled below the casing to a depth of 1,260 ft on Aug. 1. The Wainwright coalbed was penetrated from 1,242 to 1,249.5 ft. The coal zone below the casing was underreamed to a 10-in. diameter from 1,241 to 1,252 ft, and the well was cleaned and filled with antifreeze on Aug. 2. Due to the time spent drilling and installing the production-test-well array, the drilling of the landfill delineation well was delayed until the 2009 field season. The location of drilled wells W-OC1, W-OC2, W-OC3, W-OC4, and W-OCP are shown in figure 22. 41 Figure 22. Wainwright Olgoonik Corporation ware-yard production-test-well array. On Aug. 3, a GrunfosTM 4-in. submersible pump designed for CBNG use was set to a depth of 1,200 ft, an In SituTM pressure transducer was set at 950 ft, a gas-water separation tank and flow meters were installed, and a YaskawaTM VFD (variable- frequency drive) pump control was connected, programmed, and tested (fig. 22). After programming the monitor-well transducers, a step-drawdown pump test was started on Aug. 4 and continued through the evening of Aug. 8, during which small volumes of methane gas were produced from the well. At that time, a flat-line in recorded pressure suggested that ice might be forming in the wellbore annulus somewhere between the pressure transducer and the submersible pump. To eliminate the possibility of freezing the pump in place, the test was terminated, the well was flooded with water to purge it of methane, and all equipment was removed from the well. The well was then topped with water and allowed to freeze for the winter. 42 Figure 23. Installing the variable-frequency-drive pump control for production testing of the W- OCP (Wainwright–3) well. After winterizing and packing equipment and installing protective well covers, drill-crew personnel departed Wainwright on Aug. 10. After retrieving monitor-well recovery data, the scientific crew left Wainwright on Aug. 11. Final monitor-well recovery data was retrieved during a trip to Wainwright on Sept. 19. 2008 Project Results The majority of the 2008 project focused on drilling and installing the production- test-well array. However, drilling the 2,450-ft-deep W-OC1 well revealed that no coalbeds of significant thickness underlie the Wainwright coalbed and demonstrated that virtually all gas encountered in the well was related to the penetration of coalbeds. The W-OC1 geophysical and mud-gas logs are shown in plate 2. Mud-gas samples were collected at approximately 100-ft intervals and sent to Isotech Laboratories, Inc., for compositional and isotopic analyses. Analytical results are shown in table 6. Although produced-gas volumes were small, the 4-day production test did confirm that gas could be produced from the Wainwright coalbed and that changes in reservoir pressure could be monitored using the monitor-well array. 43 Table 6. Mud-gas analysis from Wainwright well W-OC1 (Wainwright–8). [Abbreviation: ppm, parts per million; ‰, per mil] Well name Sample date Sample time Depth feet Gas units O2 + Ar ppm CO2 ppm N2 ppm CO ppm C1 ppm C2 ppm C2H4 ppm C3 ppm C3H6 ppm iC4 ppm nC4 ppm iC5 ppm nC5 ppm C6+ ppm δ13C1 ‰ W-OC1 06/07/08 16:24 120 6 219200 1300 779400 0 87 1 0 2 0 0 0 0 0 0 W-OC1 06/07/08 20:40 200 50 215700 1000 778200 0 5130 1 0 0 0 0 0 0 0 0 -60.6 W-OC1 06/08/08 14:55 300 40 220700 500 775300 0 3480 1 0 0 0 0 0 0 0 0 -59.6 W-OC1 06/08/08 17:50 400 40 218300 540 776300 0 4860 1 1 0 0 0 0 0 0 0 -58.1 W-OC1 06/08/08 22:05 510 930 193800 500 729100 0 76600 3 0 0 0 0 0 0 0 0 -58.5 W-OC1 06/09/08 2:13 640 105 211200 510 776900 0 11400 2 0 0 0 0 0 0 0 0 -56.4 W-OC1 06/09/08 3:30 700 290 214500 520 759500 0 25500 3 0 0 0 0 0 0 0 0 -57.4 W-OC1 06/09/08 6:23 800 90 212700 540 778400 0 8320 2 0 0 0 0 0 0 0 0 -55.4 W-OC1 06/09/08 11:45 900 76 211900 630 779900 0 7580 3 0 1 0 0 0 0 0 0 -54.8 W-OC1 06/09/08 21:51 1000 159 211200 450 774800 0 13500 1 0 0 0 0 0 0 0 0 -53.4 W-OC1 06/10/08 0:40 1100 173 203800 450 778800 0 16900 5 0 1 0 0 0 0 0 0 -54.6 W-OC1 06/10/08 3:53 1200 125 207900 500 779700 0 11900 5 0 1 0 0 0 0 0 0 -54.2 W-OC1 06/10/08 7:47 1300 192 205300 500 775800 0 18400 7 0 2 0 1 1 0 0 0 -53.9 W-OC1 06/10/08 14:00 1400 120 207400 620 780900 0 11100 4 0 1 0 0 0 0 0 0 -53.2 W-OC1 06/10/08 20:30 1500 194 206800 480 775300 0 17400 4 0 0 0 0 0 0 0 0 -53.4 W-OC1 06/11/08 1:44 1600 127 208700 540 778800 0 12000 6 0 1 0 0 0 0 0 0 -52.8 W-OC1 06/11/08 8:22 1700 174 205400 600 778200 0 15800 13 0 1 1 0 0 0 0 0 -52.3 W-OC1 06/12/08 15:00 1800 180 212900 440 770800 0 15800 81 0 1 0 1 1 1 0 1 -49.4 W-OC1 06/12/08 21:00 1900 138 208900 480 778200 0 12200 183 0 33 0 6 4 3 1 4 -48.3 W-OC1 06/13/08 1:39 2000 125 207800 500 780100 0 11400 143 0 35 0 6 4 2 1 3 -47.6 W-OC1 06/13/08 7:17 2100 154 205500 310 779700 0 14400 75 0 20 0 4 3 2 1 3 -47.3 W-OC1 06/13/08 13:05 2200 153 207900 340 778800 0 12900 55 0 12 0 3 2 1 0 3 -48.3 W-OC1 06/13/08 19:18 2300 119 207300 410 781800 0 10400 76 0 11 0 6 5 3 1 4 -48.1 W-OC1 06/14/08 4:32 2400 113 210500 280 778600 0 10500 82 0 11 0 5 4 3 1 5 -47.4 W-OC1 06/14/08 8:00 2450 102 210800 310 779300 0 9480 67 0 11 0 6 5 3 2 18 -47.0 44 2009 Plans The 2009 field season objectives were to conduct an extended reservoir production test using the installed well array and to drill one or two delineation wells to define the geometry and confirm the gas content of the Wainwright coalbed. In addition to the previously permitted landfill site, two potential delineation sites were chosen approximately 0.5 mi to the southwest of the OC ware-yard wells and permitted through the AOGCC as Wainwright–10 (primary) and Wainwright–11 (alternate). 2009 Project Activities Production Testing I In an effort to maximize borehole gas-water separation in the 2009 production test, it was recommended by commercial vendors that the submersible pump be placed below, rather than above the Wainwright coalbed as was done in 2008. This would, in theory, allow produced water to flow downward from the coal to the pump while allowing produced gas to separate and flow upward into the production casing. The initial 2009 plan, therefore, was modified to set the drill rig over the W-OCP production well, drill out the ice, and deepen the well to 1,295 ft. Once down-hole equipment was in place and the test started, the rig would be moved from the well and used to drill the delineation wells. Project personnel arrived in Wainwright on June 7, positioned equipment over W- OCP, and cleaned the hole to well bottom on June 8–9. The well was deepened to 1,295 ft on June 10, and the pump was set at a depth of 1,265 ft on June 11. After installing the pump-control box, pressure transducers, and the water- and gas-flow meters, the production test was started on June 12. On June 13, however, ice began forming in the fluid-production pipe, and slushy ice began to discharge at land surface (fig. 24). Although produced-fluid icing did not occur during the 4-day test in 2008 (likely due to drilling-induced near-bore warming), it became obvious that a down-hole heat source would be required to prevent ice from forming in the fluid-production pipe. In order to research options and purchase and transport supplies, the test was stopped and the W- OCP well was flooded with water. After removing equipment from the well, the drill rig was moved to the Wainwright landfill to drill delineation well Wainwright–9. 45 Figure 24. Fluid and ice produced from submersible-pump discharge pipe during initial 2009 production testing in Wainwright well W-OCP. Well Wainwright–9 The Wainwright–9 well (lat 70°39′58.6″N., long 159°58′13.0″W.) was located near the Wainwright landfill approximately 1.9 mi northeast of the OC ware-yard (for location photo see plate 2). The drilling equipment was moved to the site on June 14, surface casing was set, and open-hole drilling began on June 15. As drilling progressed, correlation of strata between the OC ware-yard and landfill sites suggested that the Wainwright coalbed would be penetrated at a depth of approximately 1,180 ft in the Wainwright-9 well. After open-hole drilling to 1,161 ft, continuous core was collected from 1,161 to 1,286 ft on June 18 and 19. The hole was deepened to 1,300 ft and geophysical logs (gamma, caliper, and resistivity) were collected on June 20. Density logs were not collected from the well due to a delay in the transport of the required radioactive source. The Wainwright coalbed was penetrated from 1,167 to 1,174 ft in depth and 6 ft of the coalbed was desorbed for gas content. The well was plugged and abandoned on June 21. 46 Wainwright–9 Results The geophysical logs for the Wainwright–9 well are shown in plate 2. The well demonstrated that all coalbeds >1 ft thick, including the Wainwright coalbed, extend laterally and maintain their general thickness between the OC ware-yard and the Wainwright landfill sites. The apparent dip between the two locations is approximately 40 ft/mi to the southwest. Coal cores were desorbed using the methods used at well Wainwright–1 and described in the 2007 project results. Raw desorption values from Wainwright coalbed cores averaged 130 scf/ton, which is slightly less than the 134 scf/ton average of the four Wainwright coalbed cores desorbed from the Wainwright–1 well. Desorption values for the Wainwright–9 coal cores are shown in table 7. Geochemical analyses were conducted on two of the six cores and are shown in table 8. The average DAF desorption value for these two samples is 191.1 scf/ton (table 9). Table 7. Raw desorption results from Wainwright–9 coal core samples. [Abbreviations: ft, foot; g, gram; cc, cubic centimeter; scf/ton, standard cubic feet per ton; DAF, dry-ash-free] Well ID Canister Top (ft) Bottom (ft) Raw mass (g) Lost gas (cc) Measured gas (cc) Raw total gas (scf/ton) Wainwright-9 W9-1 1168.0 1169.3 1145 409 3159 99.7 Wainwright-9 W9-2 1169.3 1170.5 1223 572 3932 117.9 Wainwright-9 W9-3 1170.5 1171.5 1035 386 4113 139.1 Wainwright-9 W9-4 1171.5 1172.5 1101 781 3494 124.2 Wainwright-9 W9-5 1172.5 1173.5 914 310 3934 148.6 Wainwright-9 W9-6 1173.5 1174.0 623 291 2638 150.4 Wainwright-9 W9-7 1233.4 1234.2 1580 456 3855 87.3 Wainwright-9 W9-8 1228.0 1228.6 706 191 1579 80.2 47 Table 8. As-received geochemical analysis of well Wainwright–9 desorbed-coal samples. [Abbreviations: ft, feet; wt.-%, weight percent; lb, pound; Btu, British thermal units; Sub A, subbituminous A] Wainwright-9 Sample name W9-3 W9-5 Sample depth (ft) 1170.5 1172.5 Air Dry Loss (wt.-%) 16.70 16.72 Residual Moisture (wt.-%) 2.28 1.97 Moisture: (wt-%) 18.60 18.36 Ash: (wt.-%) 8.85 3.61 Volatile Matter: (wt.-%) 31.69 35.18 Fixed Carbon: (wt.-%) 40.86 42.85 Hydrogen: (wt.-%) 6.01 6.38 Carbon: (wt.-%) 55.44 59.45 Nitrogen: (wt.-%) 1.60 1.63 Sulfur: (wt.-%) 0.21 0.25 Oxygen (wt.-%) 27.89 28.68 Heating Value (BTU/lb) 9839 10674 Sulfate Sulfur (wt.-%) 0.01 0.01 Pyritic Sulfur (wt.-%) 0.01 0.01 Organic Sulfur (wt.-%) 0.19 0.23 Equilibrium Moisture (wt.-%) 17.18 15.62 Lbs Sulfur/Million BTU 0.21 0.23 True Specific Gravity 1.47 1.42 MoistMineralMatterFree BTU 10881 11110 Apparent Rank: Sub A Sub A 48 Table 9. Dry-ash-free (DAF) desorption results from two Wainwright–9 coal samples. [Abbreviations: ft, foot; g, gram; wt-%, weight percentage; cc, cubic centimeter; scf/ton, standard cubic feet per ton] Well ID Canister Top (ft) Bottom (ft) Raw mass (g) Moisture (wt-%) Ash content (wt-%) DAF mass (g) Measured gas (cc) Lost gas (cc) Raw total gas (scf/ton) DAF total gas (scf/ton) Wainwright-9 W9-3 1170.5 1171.5 1035 18.6 8.85 751 4113 386 139.1 191.7 Wainwright-9 W9-5 1172.5 1173.5 914 18.36 3.61 713 3934 310 148.6 190.4 49 Production Testing II After completing activities at the Wainwright–9 well site, the drilling equipment was moved back to the OC ware-yard on June 22 and reset over the W-OCP production well. On June 23 ice was drilled and flushed from the well, and a 220-volt (V) power supply was installed to run two 1,100-ft heat-trace lines flown in from Anchorage to mitigate produced-fluid icing problems. After filling the well with the propylene glycol- water antifreeze, the submersible pump was set to a depth of 1,254 ft. Both heat-trace lines were attached to the fluid-production pipe and extended to a depth of 1,050 ft. Transducers were programmed on June 24, and the heat-trace lines were powered to allow the well to warm overnight. On June 25, after making final equipment checks, the submersible pump was turned on. Immediately, communication between the production- well transducers and the surface-control computer was lost and the electronic gas- and water-flow meters quit functioning. Although partial communication was ultimately reestablished with the transducer set directly above the submersible pump, the simultaneous operation of the 480-V submersible pump and the 220-V heat lines had apparently created an electrical surge that irreparably damaged most of the production- well downhole components. Rather than pull the equipment from the well, the test was restarted using the semioperable bottom transducer to monitor borehole-fluid level and a 5-gal bucket to measure water production rates. After several hours of pumping sediment-laden water and gas, production rates began to slow and eventually ceased altogether. It was now clear that the uncased portion of the hole, which consisted of thin interbeds of sand, silt, and clay (based on unpublished core descriptions from David LePain of the Alaska Division of Geological and Geophysical Surveys and Paul Decker of the Alaska Division of Oil and Gas) had become unstable and was beginning to cave resulting in fine-grained sediment entering and plugging the pump. A decision was made to raise the pump into the production casing with the hope that the caving sediment would separate from the produced water and settle to the bottom of the well. The pump was lifted to a depth of 1,224 ft, but subsequent attempts to restart the pump failed. After filling the well with antifreeze and pulling the pump, it was found that the pump had plugged with sediment to where the motor had overheated and become inoperable. On June 27, while modifying plans and procuring equipment and supplies, the drill rig was moved approximately 0.5 mi southwest from the OC yard to drill the Wainwright–10 delineation well (lat 70°38′05.8″N., long 160°01′45.6″W.; for location see plate 2). Well Wainwright–10 Based on the geophysical logs from wells Wainwright–1, W-OC1, and Wainwright–9, it was estimated that the Wainwright coalbed would be penetrated at a depth of about 1,300 ft at the Wainwright–10 site. The equipment was set up and, after setting surface casing to 92 ft, an open hole was drilled to 1,300 ft on June 29–30 (fig. 25). Cores were collected from 1,300 to 1,320 ft on July 1, the hole was deepened to 1,360 ft, and geophysical logs (gamma, density, caliper, and resistivity) were run on July 2. A water sample was collected at a depth of 1,160 ft from a 100-ft-thick sandstone on July 3 , and the well was plugged and abandoned on July 4. A total of 8.5 ft of coal core, all of which was desorbed, was collected from Wainwright–10. The Wainwright coalbed was penetrated at depths between 1,300.4 and 1,307.8 ft. 50 Figure 25. Drilling the Wainwright–10 delineation well. Wainwright–10 Results The geophysical logs from Wainwright–10 are shown in plate 2. The well demonstrated that the Wainwright coalbed extends and maintains its general thickness to this location and that coalbeds >1 ft thick and major sand bodies are continuous between the three well sites (for stratigraphic correlations between well sites see Clark and others, 2010). Triangulating the elevation of the top of the Wainwright coalbed in wells Wainwright–1, Wainwright–9, and Wainwright–10 indicates a structural dip of about 100 ft/mi to the southeast. Coal cores were desorbed using the methods as described earlier. Raw desorption values for the 7.4 ft of coal collected from the Wainwright coalbed (table 9) averaged 145.9 scf/ton, which is about 10 percent higher than the bed’s average raw desorption values from wells Wainwright–1 (134.7 scf/ton) and Wainwright–9 (130.0 scf/ton). Geochemical analyses were conducted on two of the seven core samples and are shown in table 11. The average DAF desorption values for these two samples (table 12) is 192.2 scf/ton, which is very similar to the DAF values from the Wainwright–1 (189.9 scf/ton) and Wainwright–9 (191.1 scf/ton) cores. 51 Table 10. Raw desorption results from Wainwright–10 coal core samples. [Abbreviations: ft, foot; g, grams; cc, cubic centimeters; scf/ton, standard cubic feet per ton] Well ID Canister Top (ft) Bottom (ft) Raw mass (g) Lost gas (cc) Measured gas (cc) Raw total gas (scf/ton) Wainwright-10 W10-1 1300.4 1301.5 1087 301 4843 151.42 Wainwright-10 W10-2 1301.5 1302.5 1063 248 4751 150.49 Wainwright-10 W10-3 1302.5 1303.6 1058 234 4178 133.45 Wainwright-10 W10-4 1303.6 1304.6 1092 390 4503 143.38 Wainwright-10 W10-5 1304.6 1305.7 1191 381 4835 140.14 Wainwright-10 W10-6 1305.7 1306.8 1105 281 4929 150.86 Wainwright-10 W10-7 1306.8 1307.8 1026 239 4616 151.42 Wainwright-10 W10-8 1311.0 1312.1 1354 476 3787 100.76 Table 11. As-received geochemical analysis for two Wainwright–10 desorbed-coal samples. [Abbreviations: ft, feet; wt.-%, weight percent, lb, pound; Btu, British thermal units; Sub A, subbituminous A] Wainwright-10 Sample name W10-2 W10-6 Sample depth (ft) 1301.5 1305.7 Air Dry Loss 16.43 16.12 Residual Moisture 2.17 2.11 Moisture 18.24 17.89 Ash 1.43 5.54 Volatile Matter 36.58 34.63 Fixed Carbon 43.75 41.94 Hydrogen 6.45 6.08 Carbon 61.76 58.67 Nitrogen 1.58 1.54 Sulfur 0.23 0.19 Oxygen 28.55 27.98 Heating Value (Btu/lb) 11080 10357 Sulfate Sulfur 0.01 0.01 Pyritic Sulfur 0.01 0.02 Organic Sulfur 0.21 0.16 Free Swelling Index 0.0 0.0 Equilibrium Moisture 15.72 15.37 Lbs Sulfur/Million Btu 0.21 0.18 True Specific Gravity 1.44 1.43 MoistMineralMatterFreeBtu 11256.6 11018.3 Apparent Rank: Sub A Sub A 52 Table 12. Dry-ash-free (DAF) desorption results from two Wainwright–10 coal samples. [Abbreviations: ft, foot; g, gram; wt-%, weight percentage; cc, cubic centimeter; scf/ton, standard cubic feet per ton] Well ID Canister Report name Top (ft) Bottom (ft) Raw mass (g) Moisture (wt-%) Ash content (wt-%) DAF mass (g) Measured gas (cc) Lost gas (cc) Raw total gas (scf/ton) DAF total gas (scf/ton) Wainwright-10 W10-2 W10-2 1301.5 1302.5 1063 18.24 1.43 854 4751 248 150.49 187.35 Wainwright-10 W10-6 W10-6 1305.7 1306.8 1105 17.89 5.54 846 4929 281 150.86 197.03 53 Production Testing III After completing work at the Wainwright–10 site, drilling equipment was moved back to the OC yard and repositioned over the W-OCP production well. Before resetting the pump, an attempt was made to run a caliper log in the bottom of the well to determine the extent of sloughing that had occurred. However, the caliper probe could not be lowered below the bottom of the 6-in. casing (1,234 ft) due to borehole blockage, thus confirming that the uncased portion of the well had caved. Flushing and stabilizing the uncased portion of the well with drilling mud was again possible, but it was now clear that the unstable sediments would continue caving once drill mud was removed from the well and production testing resumed. Although a coarse-sand or gravel filter pack might have been placed in the uncased portion of the well in an attempt to stabilize the bore and filter sediment from the produced water, there were inadequate quantities of such material available in Wainwright. Therefore, the decision was made to set the pump inside the casing rather than in the uncased portion of the well and attempt to produce gas and water through the sloughed sediment. The submersible pump was set to a depth of 1,220 ft on July 5. The two heat-trace lines were turned on to warm the well prior to test startup, but after an hour, one of the lines shorted out. After monitoring borehole temperature for 16 hours, it was evident that a single heat line was not capable of keeping borehole temperatures elevated above the fluid-freezing point. A replacement heat line was therefore ordered and shipped from Anchorage, arriving on July 7. On July 8, after installing the replacement line, the production test was restarted. Testing continued through July 9 with small amounts of water and gas produced; however, the fluid remained silt-laden and production rates slowly diminished. On July 10 the test was stopped, the well was filled with antifreeze, and the pump was again pulled from the well and cleaned. In a final attempt to remove sediment from the produced water, approximately 3 cubic feet of gravel was sifted from a nearby sediment pile and mixed with 3 cubic feet of silica sand remaining from 2008 project activities. This material was then placed on top of the caved silt through a 2-in. tremie pipe. Although much of the material bridged in the pipe during installation, the material that was placed provided a filter inside the 6-in. casing from a depth of 1,225 to 1,235 ft. The submersible pump was set to a depth of 1,094 ft on July 11, and a transducer was set below the pump to monitor borehole-fluid level. After repairing another heat-line short, the production test was restarted on July 12. Drill-crew personnel departed Wainwright on July 14 leaving a two-person scientific crew to monitor the test. Although complications were encountered, testing continued from July 12 through Aug. 18 during which produced-water and gas samples were collected. Production testing was terminated on Aug. 19, and the well was filled with antifreeze. Drill-crew personnel returned to Wainwright on Aug. 23 to remove equipment from the well and to clean, winterize, and store it for 2010 project use. Gas Analyses A desorbed-gas sample was collected for compositional and isotopic analysis from one desorption canister from both the Wainwright–9 and Wainwright–10 coal cores. As with the gas samples desorbed in 2007, the O2 present in the as-received samples is assumed to be the result of atmospheric contamination, and the analytical results have 54 therefore been normalized to an air-free basis. Additionally, a produced-gas sample was collected from the W-OCP well during production testing. This sample was collected directly from the gas-production line where gas was allowed to flow through the sample canister for several minutes before the sample was taken. The resulting as-received sample contained only 0.24 percent O2 confirming that the vast majority, if not all, O2 present in the desorbed-gas samples was, in fact, due to atmospheric contamination. Both the as-received and normalized gas composition analyses are shown in table 13. The isotopic analysis from the three as-received samples is shown in table 14. 55 Table 13. Compositional analysis of gas samples collected during 2009 season. [Abbreviations: ‰, per mil, BTU, British thermal units] Gas composition as-received Well name Sample name Sample depth He % H2 % Ar % O2 % CO2 % N2 % CO % C1 % C2 % C3 % iC4 % nC4 % iC5 % nC5 % C6+ % Wainwright-9 W9-4 1171.5 0 0.00 0.34 7.57 0.05 28.28 0.00 63.75 0.01 0.00 0.00 0.00 0.00 0.00 0.00 Wainwright-10 W10-3 1302.5 0 0.00 0.07 1.53 0.08 5.73 0.00 92.58 0.01 0.00 0.00 0.00 0.00 0.00 0.00 W-OCP W-OCP 1250.0 0.0037 0.06 0.01 0.24 1.54 0.95 0.00 97.18 0.01 0.00 0.00 0.00 0.00 0.00 0.00 Gas composition with atmospheric contamination removed Well Name Sample name Sample depth He % H2 % Ar % O2 % CO2 % N2 % CO % C1 % C2 % C3 % iC4 % nC4 % iC5 % nC5 % C6+ % Wainwright-9 W9-4 1171.5 0 0.00 0.00 0.00 0.04 0.07 0.00 99.90 0.01 0.00 0.00 0.00 0.00 0.00 0.00 Wainwright-10 W10-3 1302.5 0 0.00 0.00 0.00 0.07 0.03 0.00 99.90 0.01 0.00 0.00 0.00 0.00 0.00 0.00 W-OCP W-OCP 1250.0 0.0037 0.06 0.00 0.00 1.54 0.05 0.00 98.35 0.01 0.00 0.00 0.00 0.00 0.00 0.00 Gas composition with atmospheric contamination removed Well Name Sample name Sample depth δ13C1 ‰ δDC1 ‰ Specific gravity BTU Wainwright-9 W9-4 1171.5 -53.53 -256.7 0.716 645 Wainwright-10 W10-3 1302.5 -53.18 -258.3 0.588 938 W-OCP W-OCP 1250.0 -52.20 -254.2 0.574 986 56 Table 14. As-received isotopic analyses of gas samples collected during 2009 season. [Abbreviations: Btu, British thermal units; ‰, per mil] Well name Sample name Sample depth δ13C1 ‰ δDC1 ‰ Specific Gravity BTU Wainwright-9 W9-4 1171.5 -53.53 -256.7 0.716 645 Wainwright-10 W10-3 1302.5 -53.18 -258.3 0.588 938 W-OCP W-OCP 1250 -52.20 -254.2 0.574 986 Water Chemistry Water-quality samples were collected on July 3 from the Wainwright–10 well in a 100-ft-thick sandstone located 200 ft above the Wainwright coalbed, and on Aug. 1 from the Wainwright coalbed during production testing of the W-OCP well. The Wainwright– 10 sandstone was isolated by straddle packers placed at 1,140 and 1,180 ft and a slotted screen placed between the packers. After developing the well for 10 hours using air-lift methods and allowing it to recover for an additional 4 hours, water samples were collected from the bottom of the well using a Teflon bailer. The Wainwright coalbed- water sample was collected from the W-OCP well directly from the production-fluid discharge line after several days of continuous fluid production. Filtered samples were refrigerated and sent to the University of Arizona for anion and cation analysis. Analytical results show typical biogenic CBNG-water characteristics in which sodium (Na), chloride (Cl), and bicarbonate (HCO3) levels are elevated and sulfate (SO4), calcium (Ca), and magnesium (Mg) levels are depleted (Van Vost, 2003). Total dissolved solids (TDS), which are a measure of the total dissolved ions in solution, were determined by summing the measured individual ion concentrations. Doing so gave TDS values of 10,027 milligrams/liter (mg/L) for the Wainwright–10 sandstone sample and 16,304 mg/L for the Wainwright coalbed sample. According to the Water Quality Association “Glossary of Salt Water” (www.wqa.org), these values would be considered highly brackish (5,000–15,000 mg/L) to saline (15,000–30,000 mg/L) in nature. For comparison, sea water has a typical TDS value of between 30,000 and 40,000 mg/L according to the same glossary. Water chemistry analytical results are shown in table 15. Table 15. Chemical analysis of water samples collected from a sandstone in well Wainwright–10 and the Wainwright coalbed in well W-OCP. [Abbreviations: mg/L, milligrams per liter; TDS, total dissolved solids] TDS mg/L HCO3 mg/L Cl mg/L Br mg/L NO3 mg/L SO4 mg/L Ca mg/L Mg mg/L Na mg/L W-0CP 16304 1890 8350.80 0.00 37.69 0.00 24.50 21.02 5912.58 Wainwright-10 10027 1631 4638.09 0.74 20.20 10.62 12.12 10.45 3668.08 K mg/L Sr mg/L Si mg/L B mg/L Mn mg/L Fe mg/L Zn mg/L Ba mg/L Li mg/L W-0CP 49.07 2.97 1.92 0.76 0.01 bmdl 0.15 11.23 1.31 Wainwright-10 10.19 0.64 1.32 0.62 0.48 0.01 20.56 1.48 0.89 57 2009 Results and 2010 Plans The drilling of the Wainwright–9 and –10 delineation wells established that the Wainwright coalbed is continuous beneath the Wainwright area, that it maintains its general thickness and gas content throughout, and that it is dipping to the southeast at approximately 100 ft/mi. At the end of the 2009 field season, the AREP proposed that an additional well be drilled at the abandoned Air Force radar site approximately 4 mi southeast of Wainwright to further expand the delineation of the coal reservoir. Although production testing confirmed that water and gas could be produced from the Wainwright coalbed, the fine sediment emanating from the uncased siltstone immediately above the coal consistently plugged the submersible pump and packed in the well, thus impeding water and gas flow from the coal reservoir. This made implementation of a meaningful extended production test virtually impossible. Testing also made clear that, barring an external heat source, water pumped through the permafrost zone to land surface would freeze in the fluid-discharge pipe. The installation of two heat-trace lines in the well through the permafrost zone effectively mitigated this problem. By the conclusion of 2009 testing activities, it became clear that the Wainwright coalbed would need to be isolated from the uncased, overlying siltstone before a meaningful pump test could be accomplished using the W-OCP production well. During the winter of 2009–2010, NSB contracted Wood Group Production Services, a petroleum engineering firm based in Houston, Tex., to formulate and oversee implementation of a 2010 production and well-stimulation plan. Discussions were held between the USGS and Wood Group during which plans were developed for the upcoming field season. The agreed-upon plan called for the following: 1. Flushing the existing gravel, sand, and sediment from the production well to well bottom (1,295 ft). 2. Filling the uncased portion of the well with HalliburtonTM quick-set cement. 3. Drilling a 6-in. hole through the cement from the base of the production casing (1,234 ft) to 1,260 ft. 4. Underreaming the Wainwright coalbed to a 12-in. diameter. 5. Stimulate/fracturing the Wainwright coalbed using a GasGunTM solid propellant stimulation tool. 6. Installing a surface-drive 20-horsepower WeatherfordTM progressive cavity (PC) pump better suited for sediment-laden fluid production. 7. Conducting a 2-month pump test. In addition, the Wood Group requested that all OC ware-yard monitor wells be plugged and abandoned prior to production test startup due to reservoir interference concerns. 2010 Project Activities Drill-crew personnel arrived in Wainwright on June 1 and spent the next several days removing snow from the work area and preparing for the arrival of the C-130 air transport carrying the Wood Group production equipment. Equipment to be backhauled 58 on the return flight to Anchorage was also prepared and packed. The C-130 arrived and was unloaded on June 6. After plugging monitor well W-OC2 per AOGCC oversight on June 10, operations were halted by the AOGCC because the fluid diverter system utilized during drilling operations had inadvertently been shipped to Anchorage on the June 6 backhaul flight. Since, by AOGCC rules, installation of the diverter was required for all well-plugging and reentry activities, drill-crew personnel had to fly to Anchorage and ship the diverter back to Wainwright. Due to the time lost, rather than abandoning the remaining monitor wells prior to production-test startup, the drill rig was repositioned over the W-OCP production well on June 16. The well was cleaned and flushed to a depth of 1,280 ft, and on June 19, cement was mixed and pumped from the bottom of the well to a depth of 1,200 ft. However, when the cement was drilled from the well the following day, it was apparent that the cement had not fully cured. The bottom of the hole was subsequently recemented with heavier cement and allowed to cure for an additional 24 hours. The cement was drilled out to 1,260 ft, and the Wainwright coalbed was under- reamed from 1,242 to 1,250 ft on June 21–22. On June 23, the coalbed was fractured with the GasGun stimulation tool and the well was cleaned, flushed, and filled with the antifreeze mixture. The PC pump was set below the coal zone to a depth of 1,253 ft, the drive rods and drive head were installed (fig. 26), flow meters were hooked up, the pump was turned on, and production testing began on the afternoon of June 25. However, after several hours of high-fluid discharge and rapid well-drawdown, flow from the fluid- discharge pipe slowed to a trickle. After “stroking” the pump by lifting the drive rods and pump rotor from the pump housing and back flushing fluid through the pump, pumping continued for another few hours before again slowing to a trickle. After several more pump and back-flush cycles, the pump was raised to 1,245 ft, and the test was restarted. Although the pump ran from this depth through June 30, and small volumes of gas were produced from the production casing, the discharge fluid remained silt-laden and repeated back flushing was required to keep the pump operating. On June 30, the well was filled with antifreeze and the pump was raised inside the 6-in. casing to a depth of 1,212 ft. The pump was operating from this depth without back flushing for several days but, the produced fluid remained silt-laden. On July 3 the PC pump bound up and tripped the control-panel circuit breaker. At that point, the well was flooded with antifreeze, and the pump was removed from the well. 59 Figure 26. Surface-drive head assembly installed on W-OCP production well. It became clear that the cement pumped into the well had failed to stabilize the uncased sediments and isolate the Wainwright coalbed as intended and that a new test plan was needed. After discussion, two options were presented to the NSB for consideration: (1) plug and abandon the W-OCP well and drill a new production well with production casing set into the top of the Wainwright coalbed or (2) clean and flush the W-OCP well to 1,260 ft, fill the uncased portion of the well with a pea-gravel filter material, and continue production testing with the pump set above the gravel and inside the production casing. Due to time and financial constraints and after consultation with the Wood Group and other project partners, the NSB decided to clean, filter-pack, and continue testing the W-OCP well as per option 2 rather than drill a new well. As no gravel or other coarse filter material was available in Wainwright, and all available wellbore antifreeze had been used, drill-crew personnel left Wainwright on July 7 to allow for acquisition of required supplies and transport to Wainwright. Drill-crew personnel returned to Wainwright on July 26 and cleaned, flushed, and stabilized the production well to 1,260 ft on July 27–28. A caliper log was run below the production casing on July 29 confirming that the cement had not properly set and that the uncased portion of the well, in particular a 1-ft zone from a depth of 1,238 to 1,239 ft, had caved to a considerable diameter (fig. 27). On July 30, after placing a pea-gravel 60 filter pack from 1,260 to 1,220 ft, the well was filled with antifreeze and the PC pump was set inside the casing to a depth of 1,215 ft. Production testing resumed on July 31. Although there was a significant decrease in the amount of silt produced, the volume of produced water and gas was constant but remained low. Once production values stabilized on Aug. 2, the drilling rig was pulled off the W-OCP well and used to plug and abandon wells Wainwright–1, Wainwright–2, W-OC1, W-OC3, and W-OC4 per AOGCC guidelines and oversight. After repositioning the rig over the production well, the test was terminated on Aug. 22, and the well was filled with antifreeze. The PC pump was pulled from the well, all production equipment was removed from the site, and the W-OCP well was plugged and abandoned per AOGCC guidelines and oversight on Aug. 25. After cleaning and packing the equipment for barge shipment, drill-crew personnel left Wainwright on Aug. 28. Personnel contracted from Olgoonik Energy Services loaded the equipment on the yearly southbound barge that departed Wainwright in mid- September and arrived in Seattle in early October. In Seattle, the equipment was transferred to highway transport vehicles and driven to Denver, arriving in late October. 61 Figure 27. Caliper log collected from uncased portion of the W-OCP well on July 29, 2010. 2010 Results Due to the inability to stabilize the uncased portion of the W-OCP production well and isolate the Wainwright coalbed from the overlying siltstone, the 2010 production test results were disappointingly similar to those obtained in 2009. Although a 21-day production test was conducted in which water and gas were continuously produced from the Wainwright coalbed, well-bore plugging with fine silt continued to be a major problem and produced-gas volumes were considerably less than anticipated. Although the installation of a coarse filter-pack successfully removed most sediment from the produced water, test results suggest that the filter material itself became clogged with fine sediment over time. 62 All 2010 production data was collected and analyzed by Wood Group personnel. A confidential report titled “Wainwright CBNG Feasibility Study” was submitted by the Wood Group to the NSB in September 2011. Project Summary The Wainwright, Alaska, coalbed natural gas study discovered and delineated a substantial CBNG resource beneath Wainwright and vicinity with the potential to serve as a long-term energy supply for the community. The primary coalbed of interest, informally named the Wainwright coalbed, maintained an approximate 7.5-ft thickness throughout the study area and contained an average of 137.6 scf/ton gas on a raw basis as desorbed from seventeen 1-ft core samples collected from three drill locations. The eight Wainwright coalbed cores from which ash content was analyzed averaged 190.7 scf/ton on a DAF basis. Analysis of desorbed- and produced-gas samples indicate that the gas contained within the bed is >98 percent methane. Isotherm analysis of coal core samples, though conflicting, suggests that the coalbed is saturated with respect to methane gas and that gas desorption from the coal could start as soon as reservoir pressure is reduced. The top of the Wainwright coalbed lies in the subpermafrost at depths ranging from 1,167 to 1,300 ft in the three drilled wells and is dipping to the southeast at approximately 100 ft/mi. The horizontal bedding and a general lack of structural features in the subsurface beneath Wainwright suggest that the coalbed likely deepens and extends for an unknown but potentially considerable distance in a southeasterly direction. A well drilled at the abandoned Air Force radar site approximately 4 mi southeast of the community would better define the Wainwright coalbed geometry and substantially increase the delineated potential resource area. Given the 7.5-ft-bed thickness, the average raw desorption value, and a subbituminous coal specific gravity of 1.4 g/cm3, the volume of methane gas contained within the Wainwright coalbed calculates to 1.26 bscf/mi2 of the bed. Based on an energy balance of 1,000 standard cubic feet of natural gas equaling 7.2 gal of diesel fuel, replacing the annual community usage of approximately 1,000,000 gal of diesel fuel would require 0.14 bscf of natural gas. Assuming that somewhere between 25 and 75 percent of the in-place gas could be produced, the gas contained within each square mile of the Wainwright coalbed represents between a 2- and 6-year energy supply for the community. Given the apparent continuity of the coalbed and the expansive area surrounding Wainwright, the Wainwright coalbed could, given the proper production techniques, serve as a clean, local community power source for the foreseeable future. Production testing of the Wainwright coalbed proved challenging. The problems related to producing gas and water through 1,000 ft of permafrost were numerous and effectively addressing these issues was difficult, expensive, and time consuming. The potential for borehole freeze up and subsequent loss of the production well and equipment was a constant concern. To prevent freezing in the well-bore annulus, a propylene glycol/water antifreeze mixture was the only fluid maintained in the top 1,000 ft of the annular area for appreciable lengths of time. During testing, attempts were made to keep the annular-fluid level below the permafrost zone where freezing was not an issue. However, when problems were encountered and pumping was suspended or interrupted for extended periods, the annular area had to be flooded with the antifreeze mixture to prevent formation water from rising to its equilibrium level and freezing in the 63 well. Given the number of interruptions that occurred during the two testing seasons, the amount of propylene glycol used during the project was considerable. The freezing of fluid in the water-discharge pipe was a problem solved by attaching two 1,100-ft lengths of heat trace to the pipe. Although the hydrostatic pressure exerted on the down-hole end of the trace lines resulted in several electrical shorts, line-end protection methods were developed that effectively mitigated the problem. Although most permafrost-related production issues were successfully addressed for this project, effective production of the resource would likely require that wells be engineered so that produced fluids could be disposed directly into suitable subpermafrost zones rather than pumping them to land surface. Although potential fluid-disposal zones were not specifically identified or evaluated during the study, the 2,450-ft W-OC1 well penetrated numerous sand bodies beneath the Wainwright coalbed with the potential to serve this purpose. A thick subpermafrost sandstone penetrated approximately 200 ft above the Wainwright coalbed in all drilled wells may have fluid-disposal potential as well. Although small quantities of gas and water were produced on a continuous basis, produced volumes did not increase over time as anticipated and commercial quantities of gas were not produced. The lack of production appeared to primarily relate to the method in which the production well was completed. In an effort to retain the full coalbed thickness for testing and to protect the coal from possible cement damage, production casing was set and cemented 8 ft above the coalbed rather than directly into the bed itself. Because the uncased sediments between the base of the casing and the top of the coalbed proved less stable than originally evaluated, the sediment ultimately began to cave and slough when exposed to formation fluid over an extended period of time. The resulting fine-grained sediment load continually plugged the production pump and settled in the uncased portion of the well, greatly impeding water and gas flow from the coal. Efforts to stabilize these sediments and isolate the coalbed for production testing proved unsuccessful and a definitive, uncompromised production test could therefore not be conducted. This leaves the true production potential of the resource in question. However, given the relatively high volumes of gas contained within the Wainwright coalbed and the relatively low volumes of gas required to power the community, it seems likely that, with proper well-field design and by utilizing currently available drilling and reservoir stimulation techniques, this CBNG resource could be developed as a long-term alternative energy source for Wainwright. Acknowledgments The Wainwright CBNG exploration project was a collaborative effort that could not have been accomplished without the participation and assistance of numerous individuals and project partners. Special thanks go to Marvin Olsen, Matthew Dunn, Bernadette Suvlu, and the entire North Slope Borough for their funding and support as well as to Teresa Imm of the Arctic Slope Regional Corporation for her backing, assistance, and insight. The assistance of Lucille Mayer and other individuals from the Olgoonik Corporation and Olgoonik Energy Services helped keep the project moving forward. A special thanks goes to Robert Fisk of the Alaska Bureau of Land Management for his backing and support as well as to Greg Noble, Beth Maclean, and others from within the Alaska BLM for their financial and technical assistance. Invaluable scientific and technical support was provided by numerous current and former employees of the 64 USGS including Stephen Roberts, Edwin Weeks, Charles Barker, Peter Warwick, Ralph Wilcox, Margo Corum, Jon Haacke, John Earle, Greg Clark, Steve Harris, and Barbara Corland. The project could not have been accomplished without the extraordinary efforts put forth by Jeffrey Eman and the entire USGS research drilling crew. Lastly, a heartfelt thank you goes to the citizens of Wainwright whose warmth and friendship made project members feel welcome throughout. 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ISSN 2331-1258 (online) http://dx.doi.org/10.3133/ofr20141004 ft BOX 1 BOX 2 ISSN 2331-1258 (online) http://dx.doi.org/10.3133/ofr20141004 Open-File Report 2014–1004 Plate 1 BOX 3 BOX 4 ft BOX 5 ft BOX 6 BOX 7 ft BOX 8 BOX 9 ft BOX 10 BOX 11 ft BOX 12 BOX 13 ft BOX 14 BOX 15 BOX 16 ft BOX 17 ft BOX 18 ft BOX 19 BOX 20 BOX 21 ft BOX 22 BOX 23 ft BOX 24 BOX 25 ft BOX 26 BOX 27 ft BOX 28 8 BOX 29 ft BOX 30 BOX 31 ft BOX 32 BOX 33 ft BOX 34 BOX 35 ft BOX 36 BOX 37 ft BOX 38 BOX 39 ft BOX 40 BOX 41 ft BOX 42 BOX 43 ft BOX 44 BOX 45 BOX 46 ft BOX 47 ft BOX 48 BOX 49 BOX 50 ft BOX 51 ft BOX 52 BOX 53 ft BOX 54 BOX 55 ft BOX 56 BOX 57 BOX 58 ft BOX 59 ft BOX 60 BOX 61 BOX 62 ft BOX 63 BOX 64 ft BOX 65 BOX 66 ft BOX 67 BOX 68 ft BOX 69 BOX 70 ft BOX 71 BOX 72 ft BOX 73 BOX 74 ft BOX 75 BOX 76 ft BOX 77 BOX 78 ft BOX 79 BOX 80 ft BOX 81 BOX 82 ft BOX 83 BOX 84 ft BOX 85 BOX 86 ft BOX 87 BOX 88 ft BOX 89 BOX 90 ft BOX 91 BOX 92 ft BOX 93 BOX 94 ft BOX 95 BOX 96 ft Wainwright coal bed BOX 97 BOX 98 ft Wainwright coal bedWainwright coal bed BOX 99 BOX 100 ft BOX 101 BOX 102 ft BOX 103 BOX 104 ft BOX 105 BOX 106 ft BOX 107 BOX 108 ft BOX 109 BOX 110 ft BOX 111 BOX 112 ft BOX 113 BOX 114 ft BOX 115 BOX 116 ft BOX 117 BOX 118 ft BOX 119 BOX 120 ft BOX 121 BOX 122 ft BOX 123 BOX 124 ft BOX 125 ft ISSN 2331-1258 (online) http://dx.doi.org/10.3133/ofr20141004 MILES 0 1 2.5 1.5 Wainwright Chukchi Sea Wainwright Landfill Airport Runway Total depth of well: 1,613 ft Natural Gamma 0 200 1.5 3 Caliper (inch)4 8 Resistivity (16 N) Resistivity (64 N) Resistivity (lateral) OHM-MAPI-GR Depth Wainwright-1 N 70o 38' 41.0" W 160o 01' 18.7" Total Depth of Well: 1,300 ft Natural Gamma 0 200 Caliper 4 8 Resistivity (16 N) Resistivity (64 N) Resistivity (lateral) OHM-MAPI-GR Depth inch Wainwright-9 N 70o 39' 58.6" W 159o 58' 13.0" Total depth of well: 1,360 ft Wainwright-10 N 70o 38' 05.8" W 160o 01' 45.6" Natural Gamma 0 200 1 2.5 Caliper (inch)4 8 Resistivity (16 N) Resistivity (64 N) Resistivity (lateral) OHM-MAPI-GR Depth Total depth of well: 2,450 ft Natural Gamma 0 200 1 2.5 Caliper (inch)4 8 Resistivity (16 N) Resistivity (64 N) OHM-MAPI-GR Depth W-OC1(Wainwright-8) N 70o 38' 37.1" W 160o 01' 25.9" 100 200 300 400 500 600 700 800 900 1000 W-OC1 mud-gas log gas units Plate 2. Geophysical logs and logged-well locations, Wainwright, Alaska Coalbed Natural Gas Project, 2007–2010. Density (g/cc) Density Density (g/cc)Density (g/cc) feet feet feet feet010001000100 0 100 Wainwright Co a l B e d Wainwrig h t C o al B e d and -2 N 70o 38' 41.0" W 160o 01' 19.3" U.S. Department of the Interior U.S. Geological Survey ISSN 2331-1258 (online) http://dx.doi.org/10.3133/ofr20141004 Open-File Report 2014–1004 Plate 2