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206-097
~ ~ image Project Well History File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. ~~- ~ 9'~ Well History File Identifier Or anizin ~aone> 9 9 ^ Two-sided III II~ IIIIIIII IIIII ^ Rescan Needed III (I'lll IIII III III RE CAN DIGITAL DATA OVERSIZED (Scannable) C r Items: ^ Diskettes, Na ^ Maps: Greyscale Items: ^ Other, No/Type: ^ Other Items Scannable by a Large Scanner ^ Poor Quality Originals: OVERSIZED (Non-Scannable) ^ Other: ^ Logs of various kinds: NOTES: ^ Other:: BY: Maria Date: ~ `~ Q ~S~ I Project Proofing III II'IIIIIIII IIIII BY: Maria Date: , ~S~ ~ ~ = TOTAL PAGES " Scanning Preparation ~_ x 30 = + I Count does not include cover sheet) ~ BY: Maria Date: 11 /~~ O~ /s/ Production Scanning Stage 1 Page Count from Scanned File: ~ r C~ (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: _~YES NO BY: Maria ' Date: ~ lO O ~S~ ~ Q ~ 9 , Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: ~S~ IIIIIII Scannin is complete at this point unless rescanning is required. II I II'I II I II 9 ReScanned ~I ~ II I) () ~ ~ (II I ( II~ BY: Maria Date: ~S~ Comments about this file: Quality Checked III IIIIII (II II') (II 10l6l2005 Well History File Cover Page.doc STATE OF ALASKA ALA. OIL AND GAS CONSERVATION COMARION WELL COMPLETION OR RECOMPLETION REPORT AND LOG la. Well Status: Oil ❑ Gas ❑ SPLUG ❑ Other ❑ Abandoned IN ` Suspended El 1b. Well Class: 20AAC25.105 20MC25110 Development ❑ Exploratory DE • GINJ ❑ WINJ ❑ WAG ❑ WDSPL ❑ No. of Completions: Service ❑ Stratigraphic Test ❑ 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill Number: Teck Alaska Incorporated Aband.: 8/2/2012 • ' 206 - 097/ 3/Z - 7 " 3. Address: 6. Date Spudded: 13. API Number: 3105 Lakeshore Drive, Bldg A, Anchorage, AK 99517 7/29/2007 50 073 - 20006 - 00 ' ' 4a. Location of Well (Governmental Section): - 7. Date TD Reached: 14. Well Name and Number: Surface: 34' FEL, 4157' FNL, Sec 18, T31 N, R18W, KRM 8/10/2007 / NB - • ' Top of Productive Horizon: 8. KB (ft above MSL):21'' 15. Field /Pool(s): 61' FEL, 4147' FNL, Sec 18, T31N, R18W, KRM GL (ft above MSL):974 1 A p.. (3Field: Red Dog Total Depth: 9. Plug Back Depth(MD +TVD . ' Pool: Kivalina Undefined Gas; 130' FEL, 4109' FNL, Sec 18, T31 N, R18W, KRM Surface 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 583,288.95 , Y - 5,148,322.31 • Zone- 7 ' • 2559' MD, 2554' TVD • NANA Regional Corp (FEE -NANA) f TPI: x- 583,262.07 y 5,148,332.26 Zone- 7 11. SSSV Depth (MD + TVD): 17. Land Use Permit: Total Depth: x- 583193.15 Y - 5,148,369.40 Zone- 7 N/A NANA LOA 18. Directional Survey: Yes U No ❑Previousl submitted 19. Water Depth, if Offshore: 20. Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) - N/A (ft MSL) • 640' 21. Logs Obtained (List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re- drill /Lateral Top Window MD/TVD: Array Induction, Comp Density Neutron, Caliper, Gamma Ray, Waveform Sonic N/A 23. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 13 -3/8" 61# J -55 Surface 83' Surface 83' 16" 59 sx ColdSet II 0' 8 -5/8" 24# J -55 Surface 954' Surface 954' 12 -1/4" 272 sx ColdSet III + 0' 169 sx ColdSet II 5 -1/2" 15.5# K -55 Surface 2550' Surface 2546' 7 -7/8" 146 sx permafrost + 0' 295 sx Type 1 24. Open to production or injection? Yes ❑ No ✓ If Yes, list each 25. TUBING RECORD interval open (MD +TVD of Top & Bottom; Perforation Size and umber): SIZE DEPTH SET (MD) PACKER SET ( MD/TVD) � N j �s to 9.41e No tbg in well 00 �0�2 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. �� Q Q DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED See previous 10-407 submitted P 27. PRODUCTION TEST Date First Production: Method of Operation (Flowing, gas lift, etc.): See previous 10 submitted 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 ...■ 28. CORE DATA Conventional Core(s) Acquired? Yes No 0 • Sidewall Cores Acquired? Yes LI No If Yes to either question, list formations and intervals cored (MD +TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. Co SCANNED MAR 2 0 2013 ' DMS SEP 07 201240 f � l Form 10-407 Revised 12/2009 CON Ir R1N(�t 1E EA z Z ,� Submit original onl u v , 3 1 \ 1I G • • , 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. 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 4' 4' and submit detailed test information per 20 AAC 25.071. Permafrost - Base 640' 640' Mississippian Kuna Fm. Unnamed Member Surface to TD Surface to TD Formation at total depth: Kuna Fm. Unnamed Member 31. List of Attachments: P &A Operational Summary, Final Wellbore Schematic, Photographic Documentation of P &A 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Bill Penrose 264 - 6114 Printed Name: Tom Farr Title: Chief Mining Engineer Signature: 7jp y 2T f - Phone: 907 - 426 - 9326 Date: 14 .46aST /Y 20/2 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 1 b: Classification of Service wells: Gas Injection, Water Injection, Water - Alternating -Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50- 029 - 20123- 00 -00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 27: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 30: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10 -407 Revised 12/2009 • Teck Alaska Incorporated +1 907 426 2170 Tel Red Dog Operations +1 888 900 1179 Fax 3105 Lakeshore Drive www.teck.com Building A, Suite 101 Anchorage, AK USA 99517 Teck August 15, 2012 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 RE: Well Completion Report, Plug and Abandonment Teck Alaska Incorporated, NB -05 (PTD 206 -097) Sundry No. 312 -216 Dear Ms. Foerster, Teck Alaska Inc. hereby submits its Well Completion Report for the plugging and abandonment of its NB- 05 well. The well has been completely filled with cement, cut off below ground level, a marker plate installed and the stub buried. Enclosed please find: • Form 10 -407 Well Completion or Recompletion Report and Log • As -P &A'd Wellbore Schematic • Summary of P&A Operations • Photographic Documentation of the Well's Surface Abandonment If you have any questions or require additional information, please contact me at (907) 426 -9326 or Bill Penrose of SolstenXP at (907) 264 -6114. Sincerely, Teck Alaska Incorporated may, iT t c - Thomas J. Farr Chief Mining Engineer cc: Bill Penrose - SolstenXP Attachments Teck Alaska Incorporated +1 907 426 2170 Tel Red Dog Operations +1 888 900 1179 Fax 3105 Lakeshore Drive www.teck.com Building A, Suite 101 Anchorage, AK USA 99517 Teck Red Dog Well NB -05 P &A Operations Summary July 30, 2012 Prep location and move equipment onto it. July 31, 2012 Load and heat water, mix and pump 10 bbls of 9.3 ppg brine into well at 2 bpm, 0 psi. Well on vacuum. Mix and pump another 10 bbls of 9.3 ppg brine into well at 2 bpm, 0 psi. Mix and pump 45 bbls of 10.7 ppg permafrost cement at 2 bpm, 0 psi. Shut down for night. August 01, 2012 Mix and pump 15 bbls of 10.7 ppg permafrost cement into well. Saw returns at tee on surface. Clean out equipment and send to NB -02 while tearing out wellhead jewelry on NB -05. August 02, 2012 Excavate well to 5' below original ground surface. Remove cellar box, 13 -3/8 ", 8 -5/8" and 5 -1/2" pipe four feet below original ground level. Dress stub, take pictures, and weld marker plate onto outer casing. Backfill and build 4' mound. • • NB -05 As P & A'd Wellbore Diagram $.44itill 16" Hole 13 - 3/8" Casing N �, �' 1 TD @ 83' +:� t ::• S: 4. � ,a ' t �— 12 -1/4" Hole .p ,.. A ti 3 . Base of Permafrost 640' 8 - 5/8 Casing ; fr •, , J - 55, 24 lbs / ft TD @ 954' 0K * �, y "4 M. I o0 i•:. :• p� � .� l , �yl`` 7 - 7/8" Hole . * ;,mss + .; r'a ittr AS.; rSi:: E its• 1,690' - 1,710', 1,765' - 1,785' r A" 1,944' - 1,954', 1,972' - 1,982' 4 KT 1 - 2,002', 2,050' - 2,070' $440ANe 40.* S'o 2,140' - 2,160', 2,200' - 2,220' •.... OA. ' *** 2,400' - 2,410, 2,430' - 2,450' 5 - 1/2" Casing 4 . K - 55, 15.5 lbs / ft g s TD @ 2,550' TD 2,559' REV 13 AUGUST 2012 fi • t . s { ,', - .',. ° ■ . ' . w i i • lit . .. . s+ 4 r - r 3 i ,.... , e Al , , ,,. • ... . , , .. A + * ) 44 y i t Y ` ; . . ` \ i t ! ' � `7 L L. ... ., ..4.- - i,..., .-,...• ,.4 -, ,,- H., -, - - ..,- ,.. 7,. , ... i r 6 { �. a te' � y Mme. 4' } 1 f ` ft' en ` .# y q s .+� i, s s " S} & t y • 4 • ' �� �: 441,1t., a - k TT .. .v f i t a F f ^3,0.'1,, 8 . f j a ys . ly / , REF . 0 . ' - , t -4 '' ,,,,,—t.' S ' ti • '"'§IF i r r Y i t tor" a c 1 J a a.* . t .i ( ` : f � a ° , .)1-',,,t; .. $ y u - A Y y i R R- f f 1.jf f�•` Q4. , a K 1 r a. ; • •r, x ; 4 ° • ' .. ° t # + f ' t y as R t,, � � r } �ir�3rt , J ., '' ,..,',1. t x ', ` J, �A ' fi a • Ec • • ,ep. DT i ir,\LAsil(KR a SEAN PARNELL, GOVERNOR ,-,,,, L,L, ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Michael Harvie Senior Mining Engineer adVINEDJUN 2 9 2012 / oq '1 Teck Alaska Incorporated g.,© to 3105 Lakeshore Dr., Bldg A Anchorage, AK 99517 Re: Red Dog Field, Kivalina Undefined Gas Pool, NB -05 Sundry Number: 312 -216 Dear Mr. Harvie: 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 reconsideration. A request for reconsideration 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. Sincerely, Cathy . Foerster Chair DATED this / day of June, 2012. Encl. , • 4-1 • STATE OF ALASKA b�\� RECEIVED ALASKA OIL AND GAS CONSERVATION COMMISSION JUN 1 3 2012 APPLICATION FOR SUNDRY APPROVALS ACIGGC 20 AAC 25.280 1. Type of Request: Abandon 0 • Plug for Redrill ❑ Perforate New Pool ❑ Repair Well ❑ Change Approved Program ❑ Suspend ❑ Plug Perforations ❑ Perforate ❑ Pull Tubing ❑ Time Extension ❑ Operations Shutdown ❑ Re -enter Susp. Well ❑ Stimulate ❑ Alter Casing ❑ Other: 11 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Teck Alaska Incorporated Development ❑ Exploratory 0 206 -097 • 3. Address: Stratigraphic ❑ Service ❑ 6. API Number: 3105 Lakeshore Dr., Bldg A, Anchorage, AK 99517 50- 073 - 20006 -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 0 NB -05 • 9. Property Designation (Lease Number): 10. Field / Pool(s): NANA Regional Corporation (FEE -NANA) ' Field: Red Dog / Pool: Kivalina Undefined Gas • 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 2,559' - 2,559' • 2,550' 2,550' None None Casing Length Size MD TVD Burst Collapse Structural Conductor 83' 13 -3/8' 83' 83' 2,730 psi 1,130 psi Surface 954' 8 -5/8" 954' 954' 2,950 psi 1,370 psi Intermediate 2,550' 5 -1/2" 2,550' 2,546' 4,810 psi 4,040 psi Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 1,690' -2,450' 1,690' - 2;446' NIA • N/A • N/A Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): None None 12. Attachments: Description Summary of Proposal ❑ 13. Well Class after proposed work: Detailed Operations Program 0 BOP Sketch ❑ Exploratory 0 ' Development ❑ Service ❑ 14. Estimated Date for 15. Well Status after proposed work: Aug -2012 1 Commencing Operations: Oil ❑ Gas ❑ WDSPL ❑ Suspended ❑ 16. Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned 0 • Commission Representative: GSTOR ❑ SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Bill Penrose 907 - 264 -6114 Printed Name Micheal Harvie Title Senior Mining Engineer Signature Phone Date (.9/ € / ) 2_ 907 -426 -9233 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 612, + 2 ( `p Plug Integrity BOP Test Mechanical Integrity Test 9 9 Y " e 9 Y ❑ Location Clearance Other: ,3tP tr5t to /5 Pi Nt?ti i h,S /,qtr t, ✓ 45 Jki //C 1" el Ph0 to clue vvv►c#-7 f cof °ff e'45 ivi ail a v✓</c/tcf 1 /c1 z Subsequent Form Required: / 12 . 4 - 07- APPROVED BY Approved by: A COMMISSIONER THE COMMISSION Date: ` /g_ (� 191011 Form 10-403 Revised 1/2010 ///� /i T p G 1 A L 1 6 Submit in D � . I1G = ®MS J UN • • June 8, 2012 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 RE: Sundry Application to Plug and Abandon Teck Alaska Incorporated, NB -05 (PTD 206 -097) Dear Ms. Foerster, Teck Alaska Inc. proposes to plug and abandon its NB — 05 well. It is intended to plug the well back to surface, install the required marker plate and bury the stub. • Teck plans to plug the well from +2,550' MD /TD to surface by pumping 10.7 ppg permafrost cement as indicated on the enclosed wellbore schematic. The abandonment of NB -05 will be accomplished as indicated in the attached P &A procedure. This work is expected to commence in August of this year. If you have any questions or require additional information, please contact me at (907)- 426 -9233, Thomas Farr at (907)- 426 -9326 or Bill Penrose at 264 -6114. Sincerely, Teck Alaska Incorporated Micheal Harvie Sr. Mine Engineer cc: Bill Penrose - SolstenXP Attachments 1 • • P &A Procedure: NB _ 05 1. MIRU P &A equipment. Do not commence well operations until all equipment and materials required for this job are onsite. 2. Check all annuli for pressure. If any is found, document pressure and attempt to bleed it off. If it does not bleed off or if it re- builds, contact Anchorage office for plans to deal with it. 3. Remove the existing hammer union from the wellhead and set aside. Unscrew the wellhead from the casing and set aside. 4. Mix 10 bbls of 9.3 ppg brine. Fill well with brine. If additional brine is needed to fill well, mix and add in 10 -bbl batches until well is full. 5. Make up a 5 -1/2" casing x 1502 union crossover onto the casing stub sticking up. Install a 1502 union onto the crossover. Make up the crossover and union as tightly as possible. 6. Rig up pump and lines onto the 1502 union to pump down 5 -1/2" casing. Pressure test lines to 1,000 psi. 7. Mix an additional 10 bbls of brine and attempt to bullhead down well. Do not exceed 3,800 psi (80% of the burst rating of the 5 - 1/2" casing). 8. If fluid can be pumped into the well at less than 3,800 psi, mix and pump cement into the well per Step 9 below. If the well will not take fluid at less than 3,800 psi, skip to Step 10 below. 9. Mix 61 bbls of permafrost cement as: Density 10.70 ppg Yield 2.47 cu ft/sk Mix Water 11.724 gal /sk Thickening Time 6.0 hrs Setting Time 30.0 hrs Use both batch mixer tanks to mix this volume. Place '19 bbls of warm water in each tank and establish circulation within the batch mixer. Mix 69 sacks of cement into each tank, continually mixing. Once the cement in both tanks is at the design density of 10.7 ppg WJP 05/25/12 • • (as determined by weighing samples using a mud balance), commence bullheading cement down the 5 -1/2" casing. Continue pumping cement until all cement in the batch mixer is pumped away. If the pumping pressure reaches 3,800 psi, divert any remaining cement in the batch mixer to the well fluid return tank(s) and treat the pH to prevent the cement from setting up. Do not stop rotation of the paddles until tanks are empty. Note: The cement slurry is designed with a pumping time of 6 hours. Skip to Step 17 below. 10. If bullheading cement into the well proves unfeasible, bleed off pressure, break the pumping line from the well and back off the crossover and 1502 connection. Notify AOGCC field inspector at Prudhoe Bay that BOPE are going to be rigged up and tested and obtain a witness waiver from the inspector. 11. Reinstall the wellhead and install the wellhead x BOP flange fabricated for this purpose. 12. N/U 4- 1/16 ", 10K psi BOPs on BOP flange. RU choke manifold, associated piping and \°‘ fluid return tank. Pressure test BOPE to 1,500 psi. CP 13. R/U work platform and false rotary assembly on top of BOPs. 0� 14. RIH with 1" tubing to +2,055' TD or to any shallower obstruction. If an obstruction is found above 1,690' (top perf), attempt to work past it while circulating. If tubing cannot be run all the way to TD, call the Anchorage office which will coordinate with the AOGCC on the next step. 15. With the 1" tubing at TD, mix and pump cement as follows: 16. Mix 61 bbls of permafrost cement as: " !s /14- Density 10.70 ppg '% eG / S / he Yield 2.47 cu ft/sk ,Th 00 f ( .. o l 31, 62 Mix Water 11.724 gal /sk Thickening Time 6.0 hrs Setting Time 30.0 hrs Use both batch mixer tanks to mix this volume. Place 19 bbls of warm water in each tank and establish circulation within the batch mixer. Mix 69 sacks of cement into each tank, continually mixing. Once the cement in both tanks is at the design density of 10.7 ppg WJP 05/25/12 • • (as determined by weighing samples using a mud balance), commence pumping cement down the 1" tubing using the triplex pump, taking returns out of the 1" x 5 -1/2" annulus. Continue pumping cement until uncontaminated cement returns are observed at the surface then divert any remaining cement in the batch mixer to the well fluid return tank and treat the pH to prevent the cement from setting up. Do not stop rotation of the paddles until tanks are empty. Note: The cement slurry is designed with a pumping time of 6 hours. 17. Clear and clean lines and cementing equipment. 18. Rig down BOPE and all mixing, pumping and related equipment and prepare them for demobilization. 19. Using excavator, excavate around the wellhead to a depth of five feet below original, surrounding ground level. 20. After at least 12 hours of WOC time, use a cutting torch to cut all casing/tubing strings off to leave well severed 4' below original, surrounding ground level. 21. Remove original guardrail, cellar, wellhead and severed casing/tubing. 22. Top off all annuli and tubing in well with cement if necessary. AOGCC and Teck representatives to witness. p h c f c 23. Photographically document the condition of the top of the well before welding on the marker plate. 24. Weld a 'A" thick, 13',2" diameter steel marker plate over the top of the cut -off well casings. AOGCC and Teck representatives to witness. Marker plate to have the fallowing information bead - welded onto it: Teck Alaska Inc. NB -05 API #50- 073 - 20006 -00 PTD #206 -097 25. Photographically document the we ded -on mar er plate. 26. Back -fill excavation with original soil. Top excavation with clean gravel recovered from elsewhere on the well location, mounding it over the well to a height of 4' to compensate for later settling. WJP 05/25/12 • • 27. Clean location, obtain site clearance approval from AOGCC representative on location (if any) and transport all personnel, equipment and materials to Red Dog Mine. Photographically document the final location condition. WJP 05/25/12 • • NB -05 Current Wellbore Diagram .• 16" Hole 13 - 3/8" Casing 4 o ► J - 55, 61 Ibs /ft ►- TD @ 83' .•.*' 4 -.NI- 12-1/4" Hole Base of Permafrost 640' ► + K 8 - 5/8" Casing J - 55, 24 Ibs /ft TD @ 954' roll Ott 9 W Pei a 01 KO y+ III it:t I --No-- 7 - 7/8" Hole iti$ Oil ot4 Ft* :01 444 ttAl 0* gill ill 1,690' - 1,710', 1,765' - 1,785' iti ea kit 14 1,944' - 1,954', 1,972' - 1,982' :::::::::: 1,992' - 2,002', 2,050' - 2,070' 2,140' - 2,160', 2,200' - 2,220' ri '14 2,400' - 2,410, 2,430' - 2,450' 5 - 1/2" Casing ova t* kti K -55, 15.5Ibs /ft TD @ 2,550' otottoteo TD 2,559' REV 6 JUNE 2012 • • NB -05 P &A Wellbore Diagram Cement Bullheaded In NW I IA kre4m4 -�-- 16" Hole 13 - 3/8" Casing F : J - 55, 61 Ibs / ft TD @ 83'. 401‘,1444 ♦ �� -N 12 -1/4" Hole ♦, ow ♦ -�— Base of Permafrost 640' . gg�!., w 4`:k j ♦ +♦ 8 - 5/8" Casing ;aIV J - 55, 24 Ibs / ft —► TD @ 954' t + ♦4,* • ti;•: ±+; b WAS �. - 7 -7/8" Hole sto re 1 4 t:40 Cria. g'ist KO veti St* OS PA: 1,690' - 1,710', 1,765' - 1,785' 1,944' - 1,954', 1,972' - 1,982' *rig eiti: 340 r55: > M� ; 1,992' - 2,002', 2,050' - 2,070' 2,140' - 2,160', 2,200' - 2,220' ;4sti .14 2,400' - 2,410, 2,430' - 2,450' �.e 5 - 1/2" Casing K - 55, 15.5 Ibs / ft ''ti TD @ 2,550' TD 2,559' REV 6 JUNE 2012 • NB -05 P & A Welibore Diagram Cement Circulated In . — •-- 16" Hole 13 - 3/8" Casing VA 4 AVV4aVI 0 0441 J - 55, 61 lbs / ft TD @ 83' :a OA KO it ;' '� a s . . 1 fi f 12-1/4" Hole -•-- Base of Permafrost 640' 8 - 5/8" Casing , J -55, 241bs /ft TD @ 954'' K:44 kV RR ,, ,,, i 44 Kt, 41.1 AI :44044 ostkit: KV 1040 s: - - 7 - 7/8" Hole v AO ! o,4 'i % ;+ , tvi 1,690' - 1,710', 1,765' - 1,785' 4 E ' 1,944' - 1,954', 1,972' - 1,982' 1,992' - 2,002', 2,050' - 2,070' Ltro 2,140' - 2,160', 2,200' - 2,220' :, 2,400' - 2,410, 2,430' -2,450' 01,40:444 th;:, :::$404 O 5 - 1/2" Casing K- 55, 15.5 Ibs / ft 1" Tubing TD @ 2,550' TD @ +/- 2,500' TD 2,559' REV 6 JUNE 2012 Page 1 of 1 Schwartz, Guy L (DOA) From: Bill Penrose [bill @solstenxp.com] Sent: Thursday, June 14, 2012 8:57 AM To: Schwartz, Guy L (DOA) Cc: Ferguson, Victoria L (DOA) Subject: RE: Red Dog P & A Thanks, Guy. Please withdraw the sundries you list below and replace them with those submitted for those same wells dated June 8, 2012. Regards, Drilling Manager y( FullColor_sma I 11 310 K Street, Suite 700 406 in l 2 ZWC Anchorage, Alaska 99501 Main 907 - 279 -6900 Direct 907 - 264 -6114 Cell 907 -250 -3113 From: Schwartz, Guy L (DOA) [mailto:guy.schwartz @alaska.gov] Sent: Thursday, June 14, 2012 8:52 AM To: Bill Penrose Cc: Ferguson, Victoria L (DOA) Subject: Red Dog P & A Bill, Since the sundries originally processed for the P & A are not going to be used (due to no production tubing being left in well and changing the procedure) you will need to officially ask them to be withdrawn... Just respond to this email requesting that. The sundries impacted are listed below. We are working on the new sundries you submitted and should have them reviewed soon. Red Dog NB -01 205 -095 312 -151 Red Dog NB -02 205 -096 312 -152 Red Dog NB -03 206 -090 312 -153 J2o 06- 12 -154 ed Dog NB - 05 206 -097 312 -1 , Guy Schwartz Senior Petroleum Engineer AOGCC 793 -1226 (office) 444 -3433 (cell) 6/15/2012 • • BT ALAS SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Tom Farr Chief Mining Engineer Teck Alaska Incorporated 3105 Lakeshore Drive, Bldg. A o Gj ' oty Anchorage, AK 99517 Re: Red Dog Field, Kivalina Pool, NB -05 Sundry Number: 312 -155 fitr LI) APR 2 ZM Dear Mr. Farr: 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 reconsideration. A request for reconsideration 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. Sincerely, Cath P. Foerster Chair DATED this /9 day of April, 2012. Encl. • • Teck Alaska Incorporated +1 907 426 2170 Tel Red Dog Operations +1 888 900 1179 Fax 3105 Lakeshore Drive www.teck.com Building A, Suite 101 Anchorage, AK USA 99517 Teck April 10, 2012 Ms. Cathy Foerster, Chair RECEIVED Alaska Oil and Gas Conservation Commission APR z�iZ 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 AOGCC C RE: Sundry Application to Plug and Abandon �1 �.lV Teck Alaska Incorporated, NB -05 (PTD 206 -097) Dear Ms. Foerster, Teck Alaska Inc. proposes to plug and abandon its NB — 05 well. It is intended to plug the well back to surface, install the required marker plate and bury the stub.• Teck plans to plug the well from 2,333' MD to surface by pumping 10.7 ppg permafrost cement as indicated on the enclosed wellbore schematic. The abandonment of NB -05 will be accomplished as indicated in the attached P &A procedure. This work is expected to commence in August of this year. • If you have any questions or require additional information, please contact me at (907)- 426 -9326 or Bill Penrose at 264 -6114. Sincerely, Teck Alaska Incorporated .7neu Thomas Farr Chief Engineer cc: Bill Penrose - SolstenXP Attachments • 44,C( / ( RECEIVE . t ie / STATE OF ALASKA APR 16 2012 • ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS AOGCC 20 AAC 25.280 1. Type of Request: Abandon El • Plug for Redrill ❑ Perforate New Pool ❑ Repair Well ❑ Change Approved Program ❑ Suspend ❑ Plug Perforations ❑ Perforate ❑ Pull Tubing ❑ Time Extension ❑ Operations Shutdown ❑ Re -enter Susp. Well ❑ Stimulate ❑ Alter Casing ❑ Other: ❑ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Teck Alaska Incorporated Development ❑ Exploratory 0 • 206 -097 • 3. Address: Stratigraphic ❑ Service ❑ 6. API Number: 3105 Lakeshore Dr., Bldg A, Anchorage, AK 99517 50- 073 - 20006 -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 El NB -05 9. Property Designation (Lease Number): 10. Field / Pool(s): NANA Regional Corporation (FEE -NANA) • Field: Red Dog / Pool: Kivalina Undefined Gas • 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 2,559' • 2,554' . KB KB None None Casing Length Size MD TVD Burst Collapse Structural Conductor 83' 13 -3/8' 83' 83' 2,730 psi 1,130 psi Surface 954' 8 -5/8" 954' 954' 2,950 psi 1,370 psi Intermediate 2,550' 5 -1/2" 2,550' 2,546' 4,810 psi 4,040 psi Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 1,690' - 2,450' 1,690' - 2,446' 2 -7/8" J -55 2,333' Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): None None 12. Attachments: Description Summary of Proposal ❑ 13. Well Class after proposed work: Detailed Operations Program 0 BOP Sketch ❑ Exploratory 0 • Development ❑ Service ❑ 14. Estimated Date for 15. Well Status after proposed work: Aug -2012 Commencing Operations: Oil ❑ Gas ❑ WDSPL ❑ Suspended ❑ 16. Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned O. Commission Representative: GSTOR ❑ SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Bill Penrose 907 - 264 -6114 Printed Name Tom Farr Title Chief Mining Engineer Signature ,-..��// Phone Date /hcrn,cte.) -T. r.. 907 -426 -9326 April 9, 2012 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3\ 2^ t Plug Integrity 17( BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance V Other: '0 h / n 5 j , 2 re_ lei' q ___5 / Frd . v ft, e L. E.,.. f e eS /, e f G 4 of 5(17 c` i 4 `2C PI Subsequent Form Required: / .-1 1° 7 APPROVED BY �DM3 Approved by: 1 COMMISSIONER HE COM MISSION APR 19 2011 Date: 4- l�.- Z ���6 o Form 10 -403 Revised 1/2010 �` ubmit i n Duplicate A Submit kw irl -r o RIGINAL �` • • Teck Alaska Incorporated +1 907 426 2170 Tel • Red Dog Operations +1 888 900 1179 Fax 3105 Lakeshore Drive www.teck.com Building A, Suite 101 Anchorage, AK USA 99517 Teck P &A Procedure: NB - 05 1. MIRU camp and equipment. Do not commence well operations until camp operations have been established, personnel are settled in and all equipment and materials required for this job are onsite. 2. Check all annuli for pressure. If any is found, document pressure and attempt to bleed it off. If it does not bleed off or if it re- builds, contact Anchorage office for plans to deal with it. 3. Rig up pump and lines to pump down 2 -7/8" tubing and take returns from the 2 -7/8" x 5 -1/2" annulus. Pressure test lines to 1,000 psi. 4. Fill one mixing tank with 10 -15 bbls of warm water. 5. Pump water down 2 -7/8" tubing with 0.5 bbls /min flow rate to establish circulation. Take returns to holding tanks provided by Teck. If no circulation established, RU wireline with pressure control equipment. 6. PT wireline equipment to 250 psi low /3,000 psi high. 7. RIH with 5'of 1- 11/16 ", 4 spf tubing puncher /CCL to —2,300' and punch 2 -7/8 "tubing. 8. POOH with wireline. Confirm shots fired. 9. Pump water down 2 -7/8" tubing with 0.5 bbls /min flow rate to establish circulation. Take returns to holding tanks provided by Teck. 10. Mix 60 bbls of permafrost cement as: Density 10.70 ppg Yield 2.47 cu frisk Mix Water 11.724 gal /sk Thickening Time 6.0 hrs Setting Time 30.0 hrs Use two tanks to mix this volume. Have 17 bbls of warm water in each tank, establish circulation within the Batch Mixer. Add 3 super sacks (6,000 lbs) of cement into each tank, continue mixing. Once at designed density at 10.7 ppg (as determined by weighing • • Teck samples using a mud balance), commence pumping cement down the 2 -7/8" tubing using the triplex pump, taking returns out of the 2 -7/8" x 5 -1/2" annulus. Continue pumping cement until uncontaminated cement returns are observed at the surface then divert any remaining cement in the batch mixer to the well fluid return tank(s) and treat the pH to prevent the cement from setting up. Do not stop rotation of the paddles until tanks are empty. 11. When the pump is shut down, immediately shut the annulus and tubing valves and disconnect lines. 12. Clear and clean lines and cementing equipment. 13. WOC at least 12 hours. 14. Rig down all mixing, pumping and related equipment and prepare them for demobilization. 15. Using excavator, excavate around the wellhead to a depth of five feet below original, surrounding tundra level. 16. After WOC period is finished and using a cutting torch and hydraulic jack hammer (for cement), cut all casing and tubing strings off to leave well severed 4' — 5' below tundra level. 17. Remove original guardrail, cellar, wellhead and severed casing /tubing. 18. Top off all annuli and tubing in well with cement if necessary. AOGCC and Teck representatives to witness. 19. Photographically document the condition of the top of the well before welding on the marker plate. 20. Weld a 1 /4" thick, 16" diameter steel marker plate over the top of the cut -off well casings. AOGCC and Teck representatives to witness. Marker plate to have the following information bead - welded onto it: Teck Alaska Incorporated NB — 05 API #50- 073 - 20006 -00 PTD #206 -097 21. Photographically document the welded -on marker plate. 22. Back -fill excavation with original soil. Top excavation with fifteen yards of clean gravel brought out from Red Dog Mine, mounding it over the well to compensate for settling as soil thaws. 2 • • Teck 23. Clean location, obtain site clearance approval from AOGCC representative on location and demobilize all personnel, equipment and materials. Photographically document the final location condition. 3 • • NB -05 Current Wellbore Diagram L 16" Hole 13 -3/8" Casing J -55, 61lbs /ft TD @ 83' 12 -1/4" Hole —al-- Base of Permafrost 640' 8 - 5/8" Casing J -55, 24lbs /ft TD @ 954' 7 - 7/8" Hole 1,690' - 1,710', 1,765' - 1,785' 1,944' - 1,954', 1,972' - 1,982' 1,992' - 2,002', 2,050' - 2,070' 2,140' - 2,160', 2,200' - 2,220' _ — 2,400' - 2,410, 2,430' - 2,450' 2 - 7/8" Tubing _ _ TD @ 2,333' _ 5 - 1/2" Casing K -55, 15.5lbs /ft —Dm— 4 ■ TD @ 2,550' TD 2,559' REV 7 NOV 2011 • • NB -05 P & A Wellbore Diagram L 16" Open Hole 13 - 3/8" Casing J - 55, 61 Ibs / ft TD @83' 12-1/4" Open Hole Base of Permafrost 640' 8 - 5/8" Casing ■ J - 55, 24 Ibs / ft TD @ 954' 7-7/8" Open Hole 1 _ _ I 1,690' -1,710', 1,765' - 1,785' ex et W/411 v " / tr 1,944' - 1,954', 1,972' - 1,982' 1 /2„ 2_3/g 1,992' - 2,002', 2,050' - 2,070' ( . O/ 9 3 b l5) �- 3 3 3 = 2,140' -2,160', 2,200' - 2,220' 2,400' - 2,410, 2,430' - 2,450' 2-7/8" Tubing _ _ _ TD @ 2,333' _ 5 -1/2" Casing K -55, 15.5lbs /ft ► 4 ■ TD @ 2,550' 1+J5 TD 2,559' 3 NOV 2011 • Teck Alaska Incorporated +1 907 426 2170 Tel Red Dog Operations +1 907 426 2177 Fax 3105 Lakeshore Drive www.teck.com Building A, Suite 101 Anchorage, AK USA 99517 Teck January 4, 2010 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Suite 100 Anchorage, AK 99501 Attention: Mr. Dan Seamount, Chairman Re: Wells Nos. NB -01, NB -02, NB -03, NB -04A, NB -05 Teck Alaska Incorporated Dear Mr. Seamount, This is to advise the Commission that effective January 15, 2010, the Teck Alaska, Inc., Point of Contact for all AOGCC related matters is Mr. Thomas Farr, Chief Engineer. Please direct all future communications relating to such matters to Mr. Farr, as noted below: Mr. Thomas Farr, Chief Engineer Teck Alaska, Inc Red Dog Mine 3105 Lakeshore Drive Building A, Suite 1.01 1 Anchorage, AK 99517 APR 1 2 Z0 t thomas.farr ,teck.com 907.426.9326 Red Dog Office phone Respectfully, C Wallace Hendricks Teck Alaska Incorporated cc. Commissioner Cathy P. Foerster Commissioner John Norman Mr. Tom Maunder, P.E. Petroleum Engineer, AOGCC Mr. Stephen McMains, Statistical Technician, AOGCC Mr. John Egan, Operations Manager, Red Dog Mine Mr. Warren. Draper, Mine Superintendent, Red Dog Mine Mr. Mark Smith, Mine Superintendent, Red Dog Mine Mr. Thomas Farr, Chief Engineer, Red. Dog Mine • • Page 1 of 1 • - Maunder, Thomas E (DOA) From: Hendricks Wallace RDOG [Wallace.Hendricks @teck.com] Sent: Wednesday, December 23, 2009 1:37 PM To: Maunder, Thomas E (DOA) Subject: RE: Completion Reports NB -04A NB -05 Red Dog I will send hard copy. I made a mistake anyway. For some reason I filled out a 10 -407 instead of a 10 -404 From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Wednesday, December 23, 2009 1:09 PM To: Hendricks Wallace RDOG Subject: RE: Completion Reports NB -04A NB -05 Red Dog Hi Wally, You probably got a return from me that I am out of the office. I am on vacation. These documents need to be submitted "hard copy ". The Commission has not established a protocol for operators to submit official documents via email. Thanks for your attention to this request. Best wishes for the holidays. Tom Maunder, PE AOGCC From: Hendricks Wallace RDOG [mailto:Wallace.Hendricks©teck.com] Sent: Wed 12/23/2009 10:37 AM To: Maunder, Thomas E (DOA) Subject: Completion Reports NB -04A NB -05 Red Dog Tom, Attached are reports we talked about. Wally 1/13/2010 Teck Ataaka incorporated +1 907 426 2170 Tel Red Dog Operations +1 907 426 2177 Fax 3105 Lakeshore Drive www.teck.com Building A, Suite 101 Anchorage, AK USA 99517 Teck December 22, 2009 Alaska Oil and Gas Conservation Commission 333 West 7' Avenue Suite 100 >�. `� •� a Anchorage, AK 99501 iAnirrtissitm Attention: Mr. Tom Maunder, P.E., Petroleum Engineer r , Re: Report of Sundry Well Operations (Form 10 -404) Red Dog Shallow Gas Program Well No.NB -05 PTD No. 206 -097 API No. 50- 073 - 20006 -00 Dear Mr. Maunder, Please find attached the above referenced Sundry Well Operations Report which includes the following attachments: • Wellbore Diagram • Well Work History If you have any questions, please contact me at Wallace.hendricks(a�teck.com or by telephone at 907.426.9806. Respectfully, , "Y Wallace Hendricks Teck Alaska Incorporated Attachments II i STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION n E ,, 2 8 ?OL REPORT OF SUNDRY WELL OPERATIONS ttt l ,i..; „:i.: . st,Cpl: 1. Operations Abandon U Repair Well U Plug Perforations U Stimulate U Other U " i . 15R Performed: Alter Casing [] Pull Tubing Perforate New Pool El Waiver [J Time Extension Change Approved Program [] Operat. Shutdown❑ Perforate ❑ Re-enter Suspended Well nt 2. Operator Teck Alaska Inc 4. Well Class Before Work: Ne. Permit to Drill Number: 'err Name: Development ❑ Exploratory d 207959, a ct k - o q 7 laid ''\ 3. Address: 3105 Lakeshore Dr. Bldg A, Ste.101 StratigraphicD Service I__I` ,. API ; Iglu Anchorage, AK 99517 50- 073 • X 7-00 61V) 011111 Property Designation (Lease Number): . Well Name and Number. FEE -NANA NB-05 �. Field/Pool(s): Red Dog Kivalina Undefined Gas 715550 10. Present Well Condition Summary: Total Depth measui)eck2559 feet Plugs (measured) 2504 -2555 feet true verh�al. 2555 feet Junk (measured) None feet Effective Depth measured 2504 feet Packer (measured) None NIA feet true vertical 2500 feet (true vertical) N/A feet Casing Length Size MD TVD Burst Collapse Structural Conductor 83 ft 13 3/8" 61 # J -55 83 ft 83 ft Surface 960 ft 8 5/8" 24 # J-55 960 ft 960 ft 2950 1370 Intermediate Production 2550 ft 5 1/2" 15.5# J-55 2550 ft 2546 ft 4810 4040 Liner Perforation depth: Measured depth: 2450 ft True Vertical depth: 2444 ft Tubing (size, grade, measured and true vertical depth): 2 7/8" J -55 2438 ft 2432 ft Packers and SSSV (type, measured and true vertical depth): NONE 11. Stimulation or cement squeeze summary: N/A Intervals treated (measured): Treatment descriptions including volumes used and final pressure: 12. Representative Daily Average Production or Injection Data Oil -Bbl Gas -Mcf Water -Bbl Casing Pressure Tubing Pressure Prior to well operation: 1.0 mcf 400 bbl 0 psi 0 Subsequent to operation: . 1.0 mcf 400 bbl 0 psi 0 13. Attachments: Wellbore Diagram 'h`WeII Class after work: Copies of Logs and Surveys Run Exploratory IS Development Service ❑ Daily Report of Well Operations Attached S Well Status after work: Oil 0 Gas El WDSPL 0 G OR [] WAG 0 GINJ [ WINJ ❑ SPLUG 0 16. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 309 -316 Contact wallace.hendricks(ci)teck.com Printed Name Wallace Hendricks Title Consulting Project Manager Signature -, % Phone 907.426.9806 Date 12.23.09 �.. < Form 10 -404 Revised 7/2009 Submit Original Only cDJ0s PACX1 k NB-05 • WELLBORE DIAGRAM DESCRIPT DEPTH : : : Well Head and Drive Motor not shown Cmttop -46' : • 0 CONDUCTOR :�' 13 318 ", # © 83' . CMT Coldset II /. �� ero Calc 5.5" CMT / CSG SHOE 18 5/8 ", 24# a 950' I A CMT Coldset II • • • TBc:2 7/8 J-55 r Stage IV. 1690' -1710' I • • - rforate 1765' - 1785' Stage III. 1944' - 1954' , - • 1972' -1982' i • - rforate 1992' -2002' Stage II. perforate 2050•-2070' �. 2140' -2160' 2200' - 2220' r •..• Stage I. 2330 - 2350 = EOT 2438 ft 2370' - 2390' ... �. 'perforate 2400' - 2410' — C PC Pump Inlet 2430' - 2450' O �. CSG SHOE • 1 5.5 ", 15.5# a 2550' I 4 2486' • PBTD J -55 CMT Coldset II "i558;. ' . ' TD • Well History (Workover Summary) NB -05 9.06.09 MIRIJ W/O Rig, ND drive head begin POOH rods. Polish rod is parted. RD WO new polish rod. 9.08.09 RU W/O Rig replace polish rod, replace packing in stuffing box, clean y- strainer. NU drive head start pumping water. RDMO W/O Rig. ~~ .~.~ - ~~% f M~' ~. }y { ~'`~ a a., ,. ,> fl~ MICROFILMED 6/30/2010 DO NOT PLACE ANY N EW MATERIAL UNDER THIS PAGE C:\temp\Temporary Internet Files\OLK9\Microfilm_Marker.doc ~ O N ~ J~,cw q DATA SUBMITTAL COMPLIANCE REPORT 9/23/2009 Permit to Drill 2060970 Well Name/No. NB 05 Operator TECK COMINCO ALASKA INCORPOR API No. 50-073-20006-00-00 MD 2559 lVD 2554 Completion Date 10/10/2007 Completion Status 1-SBNG Current Status 1-SBNG UIC N REQUIRED INFORMATION Mud Log No Samples No Directional Survey No DATA INFORMATION Types Electric orOther Logs Run: Array ~nduction, Comp. Density Neutron, Caliber, Gamma Ray, Wavef Weil Log information: Log/ Electr Data Digitat Dataset Log Log Run (data taken from Logs Portion of Master WeH Data Mairtt Interval OH / iy e meairrrm ~.~~nurr Name ~ca~e IYICUId rvo ~raR atop ~n rceceivea commenrs _-.__- ' D C Las - -_ _---._.______.____.._-- 15723 Induction/Resistivity .___ __-_. __ .__. 874 2557 Open _ _.. 12/5/2007 - -___- Precision Energy Services~ Plus Graphics ~ iVLog InductioNResistivity 25 Blu 950 2554 Open 12/6/2007 WeatherFord Array Induction, Compensated Dens/Neutron, Cali, GR ! Lo Sonic 5 Blu 950 2554 Open 12/6/2007 Waveform Sonic I ~ Cement Evaluation 5 Blu 0 2486 Case 12/6/2007 Cement Bond Log Well Cores/Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments .. -- --- Cuttings ~ -- - - 20 2554 1178~- - - --- ---- - ADDITIONAL II~ORMATION --------- ---- -- Well Cored? Y~ Daily History Received? ~ ~ " ' ~ ~~ N Chips Received? 4 7 I~ Formation Tops Analysis '~ Received? ~ ~ Comments: DATA SUBMITTAL COMPLIANCE REPORT 9/23/2009 Permit to Drill 2060970 Well Name/No. NB OS Operator TECK COMINCO ALASKA INCORPOR API No. 50-073-20006-00-00 MD 2559 TVD 2554 Completion Date 10/10/2007 Completion Status 1-S61VG Current Status 1-SBNG UIC N Compliance Reviewed By: __ --- -- -_ -- _ --_ _ ------ - ---- Date: '~ _~~-~ ~ ~ ~ ~ u ~;'~,~ ~ ~''~`~`4k~ ~_~? ~P~ C ~'~~ ~ ~ ~~~~~, ~ ~ ~~~~ ~~~~ ~ ~~~~~ ~~ ~ ~~ ~ ~ ~ , ~ M ~ ~ ~ ~y~~ ~ ~ ~ ~ ~ ~ ~~ ~~ g~ SEAN PARNELL, GOVERNOR ~~ nF : y.~ '~ ~~ ~:~ ~ ~8 F~ P 'Q~ ~ . ~ ~~ p ~.~~ ~ ~ -~ ~' [ ?' C-y, E~.-_ ~ -,~ r ~ ~ a ._. c~ b~ ~ ~~ ~~Po~~, ~ ;~ / N t'~L~~-7~1~ ~IL ~~ Vrt~-7 333 W. 7th AVENUE, SUITE 100 COi~TSERQATI01'IT COMDIISSIOi~T ANCHORAGE,ALASKA 99501-3539 ~ PHONE (907) 279-1433 ! FAX (907) 276-7542 Mr. Wallace Hendricks Consulting Project Manager Teck Alaska Inc. 3150 Lakeshore Dr., Bldg. A, Ste. 101 Anchorage, AK 99517 Re: Red Dog, Kivalina Undefined Gas, NB-05 ~~/~ .. Q4f ~ Sundry Number: 309-316 r~ } Dear Mr. Hendricks: 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. 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). 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, Cathy . Foerster Commissioner ~ DATED this l~ day of September, 2009 Encl. STATE OF ALASKA ALRS~IL AND GAS CONSERVATION COMMIS~ APPLICATION FOR SUNDRY APPROVALS 2Q AAC 25280 k ~.o~ ~ ., ,.A~ ~A E rs ~t ~~` \\ / " ~t~ .~ .... t :fi, ~,I ._. ., i \ 1. Type of Request: Abandon ^ Suspend ^ Operationai shutdovm ^ PerEorate ^ Re-enter Suspended Weil Alter casing ~ Repair welt ~• Plug Perfaations ^ Stimulate ^ Other Q Specifjr: PdOH Tbg Replace Ctangs approved pragram ~] '~ufi Tubing ^ ~erforate New Rooi ^ Time Exterssian ^ F~ Pum~ ~1H TBG 2. Operator Name: 4. Currerrt Well Class: 5. Permit to Drill Number. Teck Alaska Inc. Devebpment ~ Expbratoty Q, 206-097 ' 3. Address: Stratigraphic ~ Service ~ 6. API Number: 3150 Lakeshore Dr., Bldg A, Ste 1d1, Anchorage AK 99517 50-Q73-20006-OQ . 7. If perforating, closest approach in pool(s} opened by this operation to nea€e~ 8. Well Name arxJ NumGer: property line where ownership or landownership changes: Spacing Exception Required? Yes ^ Plo ^ ~S_Q5 - 9. Property Designation: r~~ ._ ~f~~~,~/ 10. Field/Pool(s): i^~li~~ ~~1~' E' ~~ ~~ K~ ~ ~.t NANA Re ional Cor oration - ~g.io~~~ Red Do ~n 7'15550 ~; -iG-~'i 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): , Total Depth TVD (ft): EHective Depth MD (ft): EtEective Depth NO (ft): Ptugs (measured}: Junk (measured}: 2559 2555 2504 2500 ,~ !~ ~ ~"~~> Casing Length Size MD ND Burst Collapse Structural Conductor 83 ft 13 3!8' 61~ J-55 83 Ft 83 ft SurFace 960 ft 8 518' 24 # J-55 960 ft 9C~ ft Intermediate Production 2550 ft 511215.5# J-5S 255Q Ft 2546 ft 4810 4040 Liner Perforation Depth MD (ft): Perforation Depth ND {ft): Tubing Size: Tubing Grade: Tubing MD (ft): 2450 ft 2444 ft 2 7f8 J-55 2332 ft Packers and SSSV Type: Padc~s and SSSV Md (ft) and ND (8}: 12. Attachments: p~ription Summary of Proposal ~ 13. Well Class after proposed work: Detailed Operations Program ^ BdP Sketch ^ Exploratory Q• DevebpmeM ^ Service ~ 14. Estimated Date for . 9/6/2009 15. Well Status after proposed wrork: Commencing Operations: Oil ~ Gas Q. WQSPE ~ Plugged [] 16. Verbal Approval: Yes Date: q ~ 9l4t2009 WINJ ~ GINJ ~ WAG ^ Abandoned ~ ~, Commission Representative: Tom Maunder C,~ E- ~' /" ~ GSTOR ^ SPLUG ~ 17. I hereby certiy that the foregoing is true and correct to the best of my knowledge. Contact Prirrted Name Wallace Hendricks Title ConsuRing Project AAanager >. ; _ Phone 907.426.9806 Date 9/3/2009 CONIMISSION USE ~ILY Conditions of a roval: Notif Commission so that a re r~entative ma Number: 3~ ~/~ witness Sund ~„ pp y p y ry Plug Integrity ~ BOP Test ~ Mechanical Integrity Test ~ Location Ciearance ^ Other. Subsequent Form Required: ~"~ ~V.T (~0~~~~~~ C~_~,~v~~/~,~ { ~~`~~Q~~~~,~- V\.j / ~~_ =Z.s ~ v ~ RFPROVED BY Approved by: MISSIONER THE COMMIS510N Date: - 6~~ ~ R ~ G I ~I A L ~ ~. ~~ . ~ ~~~ ~~~ ~ ~ zQ~~ Form 14-403 Revised 7/2009 /~ ~ !~' C3~ .~ ~"~~~~f" Submit in Duplicate • • Proposed Rod and Tubing Workovers Red Dog Mine NB-05~206-097) Applications have been received to workover two shale gas wells drilled at the Red Dog Mine. The purpose of these wells was to attempt to access possible gas reserves by removing water and allowing gas to desorb due to the reduced hydrostatic head. Thus far the project has not been very successful. Some minor amounts of gas have been produced however with large volumes of water. It is intended to workover these 2 wells and install larger pumps that should allow the fluid level to be lowered and prompt greater desorbsion. When these wells were drilled, variances to AOGCC regulations were given that allowed the wells to be drilled without BOPE. This was based on the low permability of the shale. No issues were experienced drilling the wells. The wells were completed by perforating and fracing 3 or more intervals. Fracs were pumped to completion and some amount of load fluids flowed back over a 3- 4 hour period. After the wells died, PCP equipment and rods were run and putnping commenced. As noted previously, large amounts of water have been produced with not much gas. The production reports for the well is attached. The operator (Tech Cominco) is proposing to simply pull the rods and tubing, replace the pump and re- run the tubing and rods. They propose to not employ BOPE and will not have any pump or fluid tanks on location. I have spoken to the engineer and their only ability to have water on location would be to employ the large tanker they use for watering the road. He was uncertain if operations could make the tanker available. If these were any other than shale gas wells, the proposal would be unacceptable. In a conventional well, gas is present and hydrostatic overbalance is necessary to confine the free gas to the formation. In the shale (or coal) gas case, hydrostatic overbalance prevents the gas from desorbing or forming in the first place. According to Red Dog's engineer, the fluid level is at ~ 600' below ground and static. Based on the 2-7/8" tubing and 5-1/2" casing in the wells, it is calculated that about 11' of tubing must be pulled to have the fluid level fall 1' in the casing. Pulling 1 joint of tubing will drop the fluid level ~ 3' and not filling pulling the roughly 80 joints of tubing could drop the fluid level ~ 240' assuming no water inflLix. Water flowing into the casing will help keep the hole fu1L There are no pumping fluid level records available far the well. The production information for NB-OS for July 2009 indicates that gas production averaged 3.5 ft^3 per bbl of water produced or about 1500 ft^3 per day. This gas production was accomplished by moving over 400 bbls of water. Based on the need to move significant water volumes to realize even low gas production potential, I recommend that Tech Alaska, Inc.'s proposal to workover NB-OS without BOPE be accepted. e'~`~'~ om Maunder, PE Sr. Petroleum Engineer September 4, 2009 Summary by Month: Individual Well Production - Well Name: NB OS API: 50-073-20006-00-00 Permit to DrilL• 2060970 Operator: TECK COMINCO ALASKA INCORP Field/Pool: RED DOG, KIVALINA iJNDEF GAS Sales Cd: 71 Acct Grp: 1 Final Status: 1-SBNG Current Status: 1-SBNG 2007 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Meth Shut-In Days 0 Oil 0 Wtr 0 Gas 0 2007 Totals: Oil 0 Water 0 Gas 0 Cum Oil 0 Cum Wtr 0 Cum Gas 0 2008 Jan Feb Mar Apr May Jun Jut Aug Sep Oct Nov Dec • Meth Shut-In 5hut-In Shut-In Shut-In Flowing Flowing Submersible Submersible Flowing Submersible Submersible Submersible Days 0 0 0 0 13 30 31 31 31 31 30 31 Oil 0 0 0 0 0 0 0 0 0 0 0 0 Wtr 0 0 0 0 1,846 6,500 9,047 7,521 7,295 9,198 10,050 12,265 Gas 0 0 0 0 0 9 18 11 10 6 23 9 2008 Totals: Oil 0 Water 63,722 Gas 86 Cum Oil 0 Cum Wtr 63,722 Cum Gas 86 2009 Jan Feb Mar Apr May Jun Jul Aag Sep Oct Nov Dec Meth Submersible Flowing Flowing Submersible Submersible Su bmersible Submersible DBys 31 28 31 22 31 30 31 pil 0 0 0 0 0 0 0 Wtr 11,762 7,947 2,732 8,442 11,69Z 12,288 12,828 Gas 27 22 5 21 31 30 45 2009 T t l Oil 0 a~s ~ ~ ` ~,y ~.s ~; ~ 5~ ~ o a s: W ater 67 691 Gas 8 ~ Cum Oil 0 um Wtr 131 413 Cum Gas 267 , ~ ~~~~1 "~'~~ 3 ~~~~ /~j ~~lS~(ca ~lj~j~5 ~ ~.~ac~ ~ `h~~ ~~~0<lQ ~$~/ ~ ~~ ~C~O~ 1 ~'~ ~~ ~ ~h` 5 = ~ ~ 1 / ~,~ \ Friday, September 04, 2009 Page 1 , , • • Page 1 of 2 Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Friday, September 04, 2009 4:14 PM To: 'Hendricks Wallace RDOG' Subject: RE: Sundry Approval NB-05 Wallace, I have reviewed your information and the production information for the well. I have apprised Commissioners Seamount and Foerster of your request. Oral approval has been given for Tech Alaska to proceed with the workover of NB-05. We will be in touch next ~ week regarding NB-04A. Call or message with any questions. I believe you have my cell number. Tom Maunder, PE AOGCC From: Hendricks Wallace RDOG [mailto:Wallace.Hendricks@teck.com] Sent: Friday, September 04, 2009 10:26 AM To: Maunder, Thomas E (DOA) Subject: RE: Sundry Approvaf NB-05 To m, Regarding your questions: 1. The rig is a 60,000 # winch truck mounted on a Sterling chassis, picture attached. 2. There will be no BOP. There is no well head pressure. Original drilling was accomplished with no BOP. 3. No test pressure proposed 4. Annular pressures when under production and the annulus is open range from 2-S psi. Once the water production from the well head is stopped the reservoir fluid level raises rapidly and the annular gas pressure drops to zero as the rise in fluid level stops the desorption of formation gas. We have never / seen sustained 24 hour gas production from the reservoir. We have yet to drop the fluid levels to the desired levels in any of the wells. 5. Current fluid level @ NB-05 is 612 KB, NB-04A is 821 KB. NB-04A is continuing to rise and will most likely stop around 650 feet KB. 6. No fluid will be employed. Formation fluids are very high in the well bore and killing all potential desorption and gas production from the formation. The fluid levels in the two wells are static and will not drop unless dewatering occurs. ~ have also attached completion files for these well's. NB-05 currently has over 1000 feet of water over the top of the first perforations, NB-04A has over 800 feet of water over the top perforations. 7. I would like to start work on Sunday September 6, 2009 From: Maunder, Thomas E (DOA) [mailto:tom.maunder@alaska.gov] Sent: Friday, September 04, 2009 9:32 AM To: Hendricks Wallace RDOG Cc: Regg, James B(DOA); Schwartz, Guy L(DOA); Aubert, Winton G(DOA) Subject: RE: Sundry Approval NB-05 Wallace, The information you have provided is very sparse. 1. What rig equipment are you employing? 9/10/2009 ~ • Page 2 of 2 2. What BOP equipment are you employing? 3. What test pressure do you propose? 4. When the wells are not producing, what is the surface pressure? 5. Do you know the liquid fluid level when the wells are not producing? 6. What fluid will be employed to maintain well control while accomplishing the work? 7. When do you anticipate actually expect to physically begin the work on the wells? Thanks in advance. Tom Maunder, PE AOGCC From: Regg, James B (DOA) Sent: Friday, September 04, 2009 8:53 AM To: Schwar~, Guy L(DOA); Maunder, Thomas E(DOA); Aubert, Winton G(DOA) Cc: Colombie, Jody J (DOA) Subject: FW: Sundry Approval NB-05 not sure which one of you is responsible for Red Dog ops; work is to start this weekend. This came up yesterday as I was discussing gas disposition issues with him; he indicated that they just got mgt approval to replace pumps and there is opportunity to fly the crew out so work can be done this weekend. His phone number is 907-426- 9806 Jim Regg AOGCC 333 W.7th Avenue, Suite 100 Anchorage, AK 99501 907-793-1236 From: Hendricks Wallace RDOG [mailto:Wallace.Hendricks@teck.com] Sent: Thursday, September 03, 2009 4:30 PM To: Regg, James B (DOA) Subject: Sundry Approval NB-05 Jim, I have attached Sundry, Form 10-403, for review. No Attachments. I will send signed form in duplicate. Very basic work-over. POOH 2 7/8 tbg, replace PC Pump, RIH 2 7/8 tbg Do you think I can get verbal approval? Wallace 9/10/2009 DESCRIPT DEPTH Cmt top - 46' CONDUCTOR 13 3/8", # @ 83' CMT Coldset II Calc 5.5" CMT CSG SHOE no~e 8 5l8", 24# @ 950' t2 ~ia" CMT Coldset II Stage IV. perforate i6so~-mo »ss - i ~85' 2j, 8p Slage I I I, 1944' - 1954' p ~~. 1972'-1982' perforate ~ g9z~ - 2~~2~ 60 Stage II. perforate zo5aao~o' z j 2140' - 2160' 12 zzoo' - z22o' WELLBORE DIAGRAM ~pf snocs - :pf shots - >pf - o snots ~~~, Stage I. 2330' - 2350' z jspr 2370' - 2390' perforate 2aoo' - 2aio' tao shots 2430' - 2450' CSG SHOE 5.5", 15.5# @ 2550' hole J-55 CMT Coldset II ~ ~is° 2486' PBTD 2559' l _ TD Te~k GortiinGo WELL NUMBEf NB~E15'' '' LEASE NAME DISTRICT Red Dog QUAD DATE 48(17l2007 ' COUNTY TARGET -; 2,55b ' ' ELEVATION ZONE(s} Ikalukrok, fCivalirra'' UNITS A PI ! M Descrip ! Kayak'' Program ISIP ~330 • 2350, ?-370 .' 2390, 2480:i3d1o,, Stage 1 1za3o • 2aso 123~ pe~fs 140 ' 60% perf ball psi zasfl~ ~ zti~a~, .21ao• - Stage 2 z~ so•, zzoo' • 22z¢! 105( perfs 120 ' ' 50% perf ball psi ~ ~.. 7880'I-1690', If944• Stage 3 193d', 4~72' •:1982`; y~sz' • Zoo2' 123( perfs $fl : 50% perf ball psi Stage 4 . '~»s 1285 nerfs 8Q ' S0% perf ball psi l~fp,TV;4 LEASE # API # 981' '' API ' COMPLE TION Pad % #sand(perf Conc Rate, bpm Water, bbis Sand # HHP Pipe 10% 530 1-s 22.0 1021.0 74,199 554 C~G : 101.0 50o PP9 2~ SaP `~SAOO:;', 22% 356 ~-s;: ' 17.0 455.0 42,700 ~a52 C:S~ 101 A ' soo PP9 ze ' 3so ao 000 : 27% 315 1-~.:.! 22.0 281.0 25,160 5'f3 ~;S~: 75A '~oo PP9 2e 25Q 2s o00 :: , 19% 325 1- 5: 23A 265.0 26,000 +489 ~~V`;' so.o sao- pPS ~s ~sa i~s.oao:! i: DESIGN z9.o 1,350 785,000 554 CSG TOTALS 420 psi % pad #sd/hole bpm 2,022 168,059 HtiP CSG AVGs holes 1,201 19% 381 21 bbls # 527 Cmt. Yield #1 ~ i _ _ . ; '#.43 I #2 1.43 !I #3 #4 #5 ~ ~ d3 :; ; #6 1 43 :: Size Description ID Vol Vol Yield Column Volume # Sacks Bbls BBL CMT inches inches bbls/ft Cu fUft Cu fUsk ft cu ft Sk/ft xcess-~ ~5%:;::: i 18 ii8.000 : ' O.Q~437 ' Q.41759 ' 1,d3 'IS,O.:; ;; 6.264 029202 4.38 1.12 ': '13 31$ Gi#; J-55 'E2.~15 ' ' p,040A8 0.22730 ! 3D~.Q :- 68.189 12.14 1$'3~" x!18" - ' 0.14095 0.T914 ' 7 43 ; 300 0' ' 237 435 0_55346 166A4 42.29 54,25 12 i14. i 8 5f8 ! 24#; J-55 ff 5l$" x 12:1fA° ` - '---° "-- - -----'- --" --- -'-----"--- ---°°---'° -----"--------- --'-"----- . --- --- -- ----- -`= ----- ----'- ------ 7~E~:: '7.875 ' - ----°- -- i 6.0&~9A~ 0.21303 . 1 43 ' 15 0 i.: 3.195 0.14897 2.23 0.57 S 1l2:: 15.:5 #, ,k-S5 `4.I~52 (}4i595 i 0.08956 ? 2 600.Q : 232.854 41.47 5`1/2" x 7:7/8" 0.03086 0.1733 . 1 d3 ..;:' Y,20D:~R. 381.160 U.12116 266.55 67.88 85.56 TOTAL Cmt ft3 Sks m3 bbis 785.1 549.0 22.23 139.82 ~, ~,.,.._. ~ ~ `~i~.r: ~ ., ~, .. ~~~ f ~ . ~.. : '- ~• ~~~~.. ^ ;! ," ~ r------ i...~_~ _. . ~ . ._ . ._"'~ ~- .... _r r--...-+~ ; ~~-~ z4~ r ~ / , ~ ~" I ~1 1 ~ i ~ ~7 ~. ~ ~ ~'~~~~i~ y.~ .. . ' -~'~~,_~+-~.~~.._._..... r ;~,, '.,r,~:~' ~ ; M _'. . ..,~1.~,. ' ` _ ~~ T+ ,~ ~ ~ ~• ;{',3 ~~ y~ , `, '+r 2 ` • `;, _ 1 { ~ f i ; ~ 4 ~ ~ ~ ~ro ~ `~~ ~ -~ ~ ~ ~ ~ ~GlMrc- ~K2.~.~~0 +`~~C~ ~~~ ~~` ~~S Waiver Requested Regulation Recommendation and Di.sc~sioa 1-Uadesbalaaced 25.033(b) and Approval of #his ~vaiver is recommended. This drilliag 25.033(i) well is planned to be drilled using air. A similar air- drilling program has been previously employed drilling shallaw wells for coalbed methane (CBM}. Teck Cominco (TC) provided a core study performed at UAF designed to determine the porosity and permeability of cores obtained in nearby mirYeral esploration wells. The study determined that the "best" permeability in the samples examined was about 0.2 md. With such low permeability, it is most unlikely that natural flow would occur while drilling with air. TC has provided a description of the equipment to be employed. In the unlikely event of a flow, TC plans to have 1500 bbls af water in tanks on site to allow the well to be killed. Based on the submitted informatian, it is determined that the proposed underbalanced drilling operations can be conducted without loss of well contra2. Underbalanced operations are a roved r 20 AAC 25.033 i. 2-Employiag a 20.035{c) and Approval of this waives is recqmmended. In air "ratatiag head" rather 25.035 (h) (2) drilling aperations, a rotating head is employed to thaa a diverter. clirect return flow from the well away from the rig floor. A rotating head is a cliverter whose desi.gn allows the annulus to be continuously sealed while drilling operations are being conducted. Based on the submitted information, it is determined that use of the pmposed rota.ting head will provide an equally effective means of diverking flow away from the rig floor per 20 AAC 25.035 (h} 2. 3-Nat to emgloy a 25.035 (e) and Approval of this waiver is recoma~ended. A BOP BOP 25.035 (hj (1) is employed to provide additional control ability if the hydrostatic pressure of the drilling fluid vvrere insuffzcient to contain any formation pressure. The porosity and permeability studies provided by TC have shown that the rock is very "tight". Given the low permeabilitie . determined, conventional flow is ~ essentially impos ble. Based on the submitted information, it is determined that equipment planned to be used by TC is appropriate for the anticipated subsurface environment and that this equipment will pravide an equally effective means of well control per 20 AAC 25.035 1 . 4--Requiriag near 25.061(a) and Approval of this ~vaiver is recommeaded. The surfaae seismic 25.061 (c) general azea is a"hard rock° mineral province. TC surveys has conducted an extensive mineral core exploration effort in the area resulting in over 100 core holes. No shallow gas or abnormal pressure hazards were encountered during this drilling ro am. / '• ~..'~e •. ' ` _ ~ ~ Based on the submitted information, it is determined that the mineral exploration drilling program conducted by TC is an equally effective means of determining the likelihood of potential shallow gas per 20 AAC 25.061 (c). r TEM with SFD 7/12/2005 ~ '' ~ ~ ~ ~~ - o~~ ~ ` ~~~~~~~~~~ ~.:~ c & P SERVICES, INC. ~ 1~ !1I '~ ~ i'11 j ~i ~' ~ ~ € ., rµ~ 3 ~,~ ~ ~ ~, ~ . , -... )w ~~ 3~.~ ?,..-, a : ?~R: a;".;;. ~~'~,'.a~j ~7`,~~'fl . January 9, 2008 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska, 99501 Attention: John Norman, Chairman Re: Teck Cominco Alaska Incorporated Red Dog Shallow Gas Exploration Wells Nos. NB-O1, NB-02, NB-03, NB-04A, and NB-O5. Dear Mr. Norman: This is to advise the Commission that effective this date, all monthly production and gas disposition reporting functions have been transferred to the operator, Teck Cominco Alaska Incorporated. The project is moving into a prolonged period of dewatering and production testing, and some efficiencies will be gained by having the reports originate directly from the project office at Red Dog Mine. The Teck Cominco point of contact for all AOGCC related matters is Wally Hendricks. Please direct all future communication relating to such matters to Mr. Hendricks as noted below: Mr. Wally Hendricks Teck Cominco Alaska Incorporated Red Dog Mine 3105 Lakeshore Drive, Building A Anchorage, AK 99517 E-mail: ~Iallace.He~dr~cks(a~teck~~minco.c~m Telephone: 907 426 9806 Red Dog Office Direct 907 426 9136 Red Dog PAC 307 232 9639 Wyoming Office Direct 307 267 1342 Cell 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 ~(907) 279-5740 ~ ~,~~, ' ~ ~ Fairweather E& P Services Inc will remain in the capacity of technical advisor to the project on an as-needed basis, but is no longer involved in matters related to day-to-day operations and AOGCC compliance issues. Sincerely, Fairweather E& P Services, Inc. ,,,. -~ ~`~"~~.~,, ~,/6 - ~~- ~~~~:,.. .- :.- R. C. Ciardner Sr. Technical Advisor cc: Commissioner Cathy P. Foerster Commissioner Dan Seamount Tom Maunder, AOGCC Steve McMains, AOGCC Dave Roby, AOGCC Wally Hendricks, Teck Cominco Alaska Incorporated Jerry Booth, G.G. Booth and Associates ~ 1 Q~'G 1 Vl 1 i Maunder, Thomas E (DOA) From: Booth Jerry SPOK [Jerry.Booth@teckcominco.com] Sent: Wednesday, January 09, 20081:28 PM To: bob@fairweather.com; Jessika Russell (jessika.russeA@fairweather.com}; jkefafant@adv-res.com; sbumgardner@adwres.com; Maunder, Thomas E(DOA); Copouias, Arthur E(DNR}; Michaef Jungreis; Bill Van Dyke (vandykpp@rogershsa.com); Greene Marie NANA; Pau4 Giavinovich (PauLG{avi~ovich@nana.com); kdawson@ataska.eom; Clough, James G(~NR); Livety Jeff VANM; Platt, Dudley (DOR sponsored~; JCaballero@adv-res.com Cc: Hendricks Waliace RDOG; Thomton George RDOG; Draper War~en RDOG; Kulas Jim RDOG; Turner Kent SPOK; DiLuzio Bruce SPOK Subject: Red Dog Gas Project All Noted: Please nate that Wally Hendricks will be the new contact for alf gas retated issues for the Red Dog Project. Please direct all questions and communication to Mr. Hendr~etcs as noted betaw: Mr. Wally Hendricks Teck Cominco Ataska Incorporated Red Dog Mine 3105 Lakeshore Drive, Bfdg. A Anchorage, Ak 99517 Email: Wall_a_c_e Nendricks.@teckcominco.com Phone: 907-426-9806 Red Dog Office ~irect 907-426-9136 Red Dog PAC 307-232-9639 Wyoming Office Direct 307-267-1342 Cell Phone Thanks for aN your hefp on this new and innovative praject. Jerry Booth 509.979.3620 - Ce!/ Phone ~-~ ~ -~~,~r- ~as-~~,c~ ~~V-~~~ ~~~ ~~~ ~~~ ~ ~ y \ 1 /9/2008 ~ V~~ ~ 4 ~ STATE OF ALASKA ~ ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETI~N REPORT ANn i nr~ 1a. Well Status: Oil~ Gasa Plugged ~ Abandoned ~ Suspended ~ 2oanc2e.ios 2oaaczs.~~o GINJ~ WINJ~ WDSPL~ WAG^ Other^ No.ofCompletions: 1b. Well Class: Development ~ Exploratory0 Service ~ StratigraphicTest~ 2. Operator Name: Teck Cominco Alaska Incorporated 5. Date Comp., Susp., or Aband.: 10/10/2007 12. Permit to Drill Number: '3b1-a5~ 206-097 ~'~, - 3. Address: 3105 Lakeshore Dr.,Bidg.A,Ste 101 Anchorage, AK 99517 6. Date Spudded: 7/29/2007 13. API Number: 50-073-20006-00 - 4a. Location of Well (Governmental Section): SurFace: 33.87 ft WEL, 4156.57 ft SNL,Sec. 18, R.18 W., T.31 N., KRM 7. Date TD Reached: 8/10/2007 14. Well Name and Number: NB-05 ~ Top of Productive Horizon: 60.69 ft WEL, 4146.62 ft SNL, Sec. 18, T.18 W., T.31 N., KRM 8. KB (ft above MSL): as3.s~ Ground (ft MSL): s7s.91• 15. Field/Pool(s): Exploratory Total Depth: 129.61 ft WEL, 4109.48 ft SNL, Sec. 18, T.18 W., R.31 N., KRM 9. Plug Back Depth(MD+TVD): 2504 MD, 2501 TVD 4b. Location of Well (State Base Plane Coordinates, NAD 27): Surface: x- 583,288.95 y- 5,148,322.31 Zone- 7 10. Total Depth (MD + TND): 2559 MD, 2554 ND 16. Property Designation: NANA Regional Corporation TPI: x- 583,262.07 y- 5,148,332.26 Zone- 7 Total Depth: x- 583,193.15 y- 5,148,369.40 Zone- 7 11. SSSV Depth (MD + ND): No SSSV 17. Land Use Permit: NANAAgreement 18. Directional Survey: Yes ~ No Gyro (Submit electronic and printed information per 20 AAC 25.050) 19. Water Depth, if Offshore: N/A (ft MSL) 20. Thickness of Permafrost (TVD): Est. 640 ft 21. Logs Obtained (List all logs here and submit electronic and printed information per 20 AAC 25.071): Array Induction, Comp. Density Neutron, Caliper, Gamma Ray, Waveform Sonic 22• CASING, LINER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH ND AMOUNT FT TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 13 3/8 61# J-55 Surface 83' Surface 83' 16" 59 sks Cold Set II None 8 5/8 24# J-55 Surface 954' SurFace 954' 12 1/4" 272 sks Cold Set 111 foilowed None by 169 sks Cold Set II 5 1/2 15.5# K-55 Surface 2550' Surface 2546' 7 7/8" 395 sks Class I None 23. Open to production or injection? YesQ No~ If Yes, list each 24. TUBING RECORD interval open (MD+ND of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD) See Attached 2 7/8" 2333 No Packer /~ 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. ~Q~ DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED ~~ See Attached ~ ~ Completion Summary ~ 26• PRODUCTION TEST Date First Production: Dewatering not started at time of report Method of Operation (Flowing, gas lift, etc.j: Date of Test: Hours Tested: Production for Test Period Oil-Bbl: Gas-MCF: WatervBbl: 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 QQ 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. ~G~CVF"~.Y~~i~3N, O-~ ~EP ~ i ~i , *1 ` x~y[ , . ~,~~'~f ~~~~.. ~~~t.' 4r ~ ~00~ S Form 10-407 Revised 2/2007 CONTINUED ON REVERSE ~~~~~ G t ' r ~ ~ 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 Permafrost - Top 4 ft 4 ft needed, and submit detailed test information per 20 AAC 25.071. Permafrost - Base 640ft (est) 640ft (est) Mississippian Kuna fm. unnamed member Surface Surface Entire penetrated interval is in an unnamed member of the Kuna formation and within the Woiverine Plate w ',D ` ~~ ~ ~ ~~ w/ ~ l Formation at total depth: Kunafm. unnamed member 30. List of Attachments: Wireline Logs, CD w/TIFF, PDF and LAS, Lithologic Log, Completion Summary, Well History, Wellbore Diagram, As-built survey plot. 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Printed Name: R.C Gardner Title: Sr. Technical Advisor for Teck Cominco Alaska, Inc. Signature: ,~ Phone: 907-258-3446 Date: 11 /5/2007 ~~,,," INSTRUCTIONS Generai: 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 1 a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for lnjection, 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 • ~ R Red Dog Shallow Gas Exploration Project Well No. NB-05 PTD No: 206-097 API No: 50-073-20006-00 Well History (Attachment to Completion Report Dated November 5, 2007) Svnopsis Well No. NB-OS was permitted as the final well in the initial 5-spot well pattern to test the commercial potential of shale gas in the North Basin area, north of the Red Dog Zinc Mine in northwestern Alaska. The well was originally scheduled to be drilled during the 2006 drilling season, but downhole problems encountered while drilling other wells in the 5-spot pattern during 2006 made it necessary to defer drilling at NB-OS until the 2007 summer season. The well was drilled without incident during the late July - early August time frame. As drilling progressed it became apparent that the well was located in an unknown member of the Kuna formation within the Wolverine Plate, rather than the Kivalina member which was anticipitated in the geologic prognosis, and while there was still some shale gas potential in this unexpected horizon, the well was terminated short of the programmed TD in order to provide additional drilling time for the remaining wells in the 2007 sulniner program which were located in areas of greater geologic potential. NB-OS Detailed Well Historv Date Description July 28, 2007 MIRU. Picked up hainmer and 16" bit, and drilled conductor hole to 90 ft. July 29, 2007 Moved in cementing equipment. Ran 2 jts 13 3/~" conductor casing with stab-in float shoe to 83 ft. Cemented conductor with 59 sks Cold Set II, with cement returns to surface. WOC and completed rig-up. Installed and function tested diverter. P/LT 12 1/4" bit and BHA and TIH to float shoe. Tested diverter again. July 30, 2007 Drilled out float shoe with air and drilled new hole to 852 ft with no problems. i ~ .. ~~~~IDENTIAL July 31, 2007 Down 2 hrs to repair booster. Drilled 852 ft- 960 ft, at which point hammer stopped working. Elected to run surface casing and switch to rotary mud system. CBU and TOH. Ran 24 jts 8 5/8", 24#, J-55 casing with FS @ 954 ft. Cemented casing with 272 sks Cold Set III (lead), followed by 169 sks Cold Set II (tail) WOC. August 1, 2007 P/U 7 7/8" bit and BHA and TIH to FC. Drilled out FC and FS, and cleaned out to 960 ft. Drilled new hole to 1039 ft. Survey line parted while taking single shot survey at 1039 ft. August 2, 2007 Fished survey line and recovered line and survey tool. Drilled 1039 ft -1259 ft. August 3, 2007 Drilled 1259 ft-1579 ft. Took single shot survey at 1499 ft. Hole in good shape. August 4, 2007 Down 2 hrs to repair mud pump and shaker motor. Drilled 1579 ft -1799 ft. August 5, 2007 Drilled 1799 ft- 1854 ft. CBU and pulled up to 1734 ft while down 2.5 hrs. to repair No. 1 pump. Resumed drilling and drilled 1854 ft -1979 ft. August 6, 2007 Drilled 1979 ft- 2039 ft. Took single shot survey @ 1999 ft. POH to investigate possible washout. Found cracked drill collar connection. Replaced dc and TIH. Drilled 2039 ft- 2070 ft. Formation very hard. August 7, 2007 Drilled 2070 ft- 2154 ft. Down 3 hrs to replace packing and lantern ring in No. 1 mud pump. Drilled 2154 ft- 2239 ft. August 8, 2007 Drilled 2239 ft- 2364 ft. Down 1 hr for No. 1 pump repair. August 9, 2007 Drilled 2364 ft- 2509 ft in very hard formation. August 10, 2007 Drilled 2509 ft- 2559 ft, at which point geologists ordered drilling stopped. TD is 2559 ft M.D. Ran gyro directional survey inside dp. POH and laid down dp and BHA. Rigged up Weatherford and ran open hole logs. August 11, 2007 Rigged down loggers and rigged up to run production casing . Ran 69 jts 5%2", 15.5#, K-55 production casing to 2550 ft(FS), and FC @ 25Q4 ft. Cemented casing with 395 sks Type 1 cement. Displaced cement with water and bumped plug with 1100 psi. Floats held OK. Good returns throughout job with cement to surface. WOC, and started rig down for move back to NB-04A. ~ ~ August 11-21, 2007 Well shut-in. Developed 4 stage perforation and hydraulic fracturing program based on open hole logs. August 22, 2007 Ran CBL. Good bond throughout. Rigged up to perforate and frac. Perforated and facced Stage I as described on the attached Completion Summary. August 23, 2007 Perforated and fracced Staged II, III and IV, as described on the attached Completion Summary. August 24 - September 23, 2007 Well shut-in, installing surface facilities for dewatering and production testing during this period. September 24 - 29, 2007 Drilled out CBL's using power swivel on production hoist. Lost 3 days to repair power swivel. September30 - October 3, 2007 Well shut-in. Continuing with installation of surface facilities during this period. October 4, 2007 Ran 2 7/8" tubing with PCP stator at 2332 ft. October 5- 9, 2007 Well shut-in. Completed installation of surface facilities during this period. October 10, 2007 Ran PCP rotor and rods. Well completed as of this date, and ready to initiate dewatering pumping, pending resolution of electrical problem in main power line supplying GasEx project site. Cp ' ~~/ 0~` ~T / ~l ~ ~ ~' ~ Teck Cominco Alaska Incorporated Well No. NB-OS (PTD No. 206-097) Completion Summary Stage I: 2330 ft - 2450 ft Zone 1: 2330 ft - 2350 ft (20 ft net, w/2ea. 0.4" jspf - 40 shots total) Zone 2: 2370 ft - 2390 ft (20 ft net, w/2ea. 0.4" j spf - 40 shots total) Zone 3: 2400 ft - 2410 ft (10 ft net, w/2ea. 0.4" j spf - 21 shots total) Zone 4: 2430 ft - 2450 ft (20 ft net, w/ 1 ea. 0.4" j spf - 21 shots total) Total formation open to production = 70 ft Total shots = 122 All shots correlated to NB-OS CBL. Frac with 500 bbls, 25# guar gel, 70,000# 20/40 Ottawa sand. ISIl' 1160 psig. Pavg= 1300 psi. Flowback started at 3:20 am died at 7 am. Returned 260 bbls broken gel. RIH w/wireline, set composite bridge plug @ 2,300 ft. Stage II: 2050 ft - 2220 ft Zone 1: 2050 ft - 2070 ft(20 ft net, w/2ea. 0.4" j spf - 40 shots total) Zone 2: 2140 ft - 2160 ft (20 ft net, w/2ea. 0.4" j spf - 40 shots total) Zone 3: 2200 ft - 2220 ft (20 ft net, w/2ea. 0.4" j spf - 40 shots total) Total formation open to production = 60 ft. Total shots = 120 All shots correlated to NB-OS CBL Frac w/425 bbls, 25# guar gel, 41,000# 20/40 Ottawa sand. ISIP 1616 psi. Dropped 60 Per balls during 4 ppa stage. Pavg before perf balls = 1245 psi, after perf balls Pavg= 3075 psig. Avg rate = 22.6, HHP 750hp. Flowback: 7- 9 am. Returned 200 bbls broken gel. ~ ~ ~ ~ Stage III: 1880 ft - 2002 ft Zone 1: 1880 ft- 1890 ft (10 ft net, w/2ea. 0.4" jspf - 21 shots total) Zone 2: 1944 ft - 1954 ft (10 ft net, w/2ea. 0.4" jspf - 21 shots total) Zone 3: 1972 ft - 1982 ft (10 ft net, w/2ea. 0.4" j spf - 21 shots total) Zone 4: 1992 ft - 2002 ft(10 ft net, w/2ea. 0.4" jspf- 21 shots total) Total formation open to production = 40 ft. Total shots = 84 Frac w/325 bbls, 25# guar gel, 25,000# 20/40 Ottaea sand. ISIP? Difficult due to ball out. Dropped 40 balls during 4 ppa stage. Pavg. b/4 perf balls = 1500 psi. Pressure Increased to 4,000 psi after perf balls. SD job 30 bbls short on displacement, left =/- 6,245# sand in 5%2" casing. Flow back well: 3:30 - 6:30 am. Returned ? bbls broken gel, approx. 5,600# sand. Stage IV: 1690 -1785 ft Zone 1: 1690 ft - 1710 ft (20 ft net, w/2ea. 0.4" j spf - 40 shots total) Zone 2: 1765 ft- 1785 ft (20 ft net, w/lea. 0.4" jspf - 21 shots total) Total formation open to production = 40 ft. Total shots = 61 Frac w/275 bbls, 25# guar gel, 26,000# 20/40 Ottawa sand. ISIP -1143 psi. Pmax = 3800 psi on flush. Dropped 20 perf balls during job and displaced sand to top per£ Flow Back 3'/z hrs =/- 200 bbls broken gel, little sand. ~~ / ~~ !~ ~ ~ ~ Red Dog Shallow Gas Exploration Project Well No. NB-05 Wellbore Diagram PTD: 206-097 API No.: 50-073-20006-00 No Scale Wellhead, Motor and Drive Head not shown Leqend ~ Cement ~,~,~,~ '~'~'~' Drilling Mud ~~~ 12-1/4" hole - 7-7l8" hole - Cement Plug 2504'-2559' PBTD 2504' MD ~~ ~/ ~~ ~~ ~4l 13-3/8", 61 #, J-55 ~ Conductor @ 83' MD Base of Permafrost @ 640' MD 8-5/8" 24# J-55 Surface Casing - @ 954' MD 3tage IV 1690'-1785' 61 perfs :otal in 2 zones 3tage III 1890'-2002' MD, 84 ~erFs total in 4 zones 3tage II 2050'-2220' MD, 120 ~erfs total in 3 zones 5tage I 2330'-2450' MD, 122 ~erfs total in 4 zones 'CP (a~ 2332' MD 5-1/2", 15.5#, K-55 Prod. Casing ~ 2550' MD TD 2559' MD Attachment to Completion Report dated November 5, 2007 NOTE: Coordinates Shown are Alaska Gas Ex vloration Pro ect Checked By: Check date: •~~,, ~~ State Plane, zone 7 p ~ /v ! Well Asbuilt NB-05 Scale in Feet ~eck I ~~ . ~ ~~E'~ 0 500' 1000' 2000' Revision: 0 Scale: 1" = 1000' Computer File Y:~Minetech~intra\Geologic~DWGS\GO-07-GasWell-ASB.dw~ i `~ i E & P SERVICES, INC. November 5, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 ~: Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Completion Report, Form 10-407 Teck Cominco Alaska Incorporated Red Dog Shallow Shale Gas Exploration Program Well No. NB-OS PTD No. 206-097 API No. 50-073-20006-00 Dear Mr. Maunder: The above referenced Completion Report and supporting documentation is enclosed. The Completion Report includes the following attachments: • Lithologic log (Description of Drill Cuttings) • Wellbore Diagram • Well History • As-built Location Plat • Completion Summary (Perforation depths, hydraulic frac descriptions) • Array Induction, Comp Density/Neutron, Caliper/Gamma Ray Log • Waveform Sonic Log • Cement Bond Log • CD with TIFF, PDF, and LAS files • Gyro survey data • One (1) set washed and dried drill cuttings samples (submitted in separate box due to size) Both the Operator (Teck Cominco AlaskaIncorporated), and the landowner (NANA Regional Corporation) respectfully request that the Completion 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 ~ i ~ Report with attachments, as well as previously submitted Requests for Sundry Approvals, and Weekly Operations Summary Reports for this well be held confidential for the period allowed under 20 AAC 25.537 (b) and (d). Thank you for your attention to this request, and for your clarification on various regulatory issues during the drilling of the Red Dog shale gas exploration wells. Sincerely, ~,.-~ ~ ~ ; « , ~ ~~ ~9' ~. ~ . I~. C. Gardner for Teck Cominco Alaska Incorporated Enclosures cc: Jerry Booth, Teck Cominco Alaska Incorporated Log sheet for Gas Exploration Program drill cuttings North Basin Welis - Summer 2007 Driiling Contrector: Ma~or Drilling America, lnc. Well No.: NB-OS Page~ of ~ Red Dog Mine, Alaska Sam le IrKerval Litholo Col or % Part icle S ha e Min eraliz ation % White Cons titueM S Commerrts (teetbelowsurFace) ~ ~ - o~ N E ~ ~y a VC .o L o (~ O B tl a ~ O a~ ~ ~ l0 ~ T °~ ~ U ~'~ « IQ ~ N J Q 0 a 0-20 FILL SPUD IN KIVALINA 20-40 SHALE 100 X X 0 40-60 SHALE 100 X X 1 60-79 SHALE 10 90 X X 1 79-99 SHALE 10 90 X X 5 99-119 SHALE 10 90 X X 1 119-139 SHALE 100 X X 2 139-159 SHALE 50 50 X X 2 159-179 SHALE 90 10 X X X 2 179•799 SHALE 80 20 X X X 3 199-219 SHALE 50 50 X X X 2 219-239 SHALE 80 20 X X 3 239-259 SHALE 50 50 X X 5 259-279 SHALE 50 50 X X 5 279-299 SHALE 80 20 X X X 5 299-327 SHALE 60 40 X X 3 327-347 SHALE 80 20 X X X 3 347-367 SHALE 90 10 X X 3 367-387 SHALE 90 10 X X 3 387-407 SHALE 50 50 X X X 4 407-427 SHALE 90 10 X X 2 427-447 SHALE 80 20 X X 1 447-467 SHALE 60 40 X X t 467•487 SHALE 60 40 X X 2 487-507 SHALE 10 90 X X X 3 507-527 SHALE 50 50 X X X 1 C:\Documencs and Settings~bob\Local Settings\Temporary Internet Files\OLK142\NB-OS_Geo Descrip.xls Page 1 of 9 10/11/2007 Log sheet for Gas Exploration Program drill cuttings North Basi~ Wells - Summer 2007 Drilling CoMractor: Major Drilling America, lnc. Well No.: NB-O5 Page ~ of ~ Red Dog Mine, Alaska Sam le Interval Litholo Col or % Part icle S ha e Min eraliz ation % White Cons tituen ts Comments (feet6elowsurface) T ~ ~ - i o~ a-Oi E ro ~ ~ -o Y m a t o Y o n T d m 3. ~ ~ o a~ N O ~ o m ~ ~ `>. a N ~ ~ ~" ~ m ~ N ro ~ c ~ ~ro a 527-547 SHALE 80 20 X X 1 547-567 SHALE 50 50 X X 3 567-587 SHALE 50 50 X X X 3 587-607 SHALE 50 50 X X X 4 607-627 SHALE 50 50 X X X 5 627-647 SHALE 700 X X X 1 647-667 SHALE 50 50 X X X 3 667-687 SHALE 10 90 X X X 4 687-707 SHALE 20 80 X X 5 707-727 SHALE 20 40 40 X X X 5 727-747 SHALE 50 50 X X X 5 Trace siHstone, med ra , calcareous 747-767 60% SHALE 100 X X 0 40/ SLT. 50 50 0 767-787 SHALE 50 50 X X X 3 Trace chert, li ht ra 787-807 SHALE 10 90 X X 1 1 807-827 SHALE 10 90 X X X 1 827-847 SHALE 50 50 X X X 1 847-567 SHALE 100 X X X 0 Ikalukrok 850', Shale, black, non calcareous 867-887 SHALE 100 X X 0 887-907 SHALE 100 X X 0 907-927 CHERT 100 Ko ruk 915', Chert, li ht ra to white, trace Ls, white, fine rained 927-947 CHERT 100 Bitumen filled Sractures common in chert 947-954 MISSING INTERVAL 954-974 SANpSTONE 100 X Ka ak 960', Ss., ve fine rained, sli htl cal., Gas in sam le ba 974-994 SANDSTONE 100 X As above. Gas in Sam le ba 994-1014 SANDSTONE 100 X Gas in sam le ba . Ve fine rained C:\DOCUments and Setlings~bobLLocal Seitings\Temporary Intemet Files\OLK742WB-05_Geo Descrip.xls Page 2 of 9 10/11/2007 Log sheet for Gas Exploration Program drill cuttings North Basin Welis - Summer 2007 Drilling Contractor: Major Drilling America, Inc. Well No.: NB-OS Page ~ of ~ Red Dog Mine, Alaska Sam le Intervai Litholo Col or % Part icle S ha e Min eraliz atlon % Whke Cons tituen ts CommeMs (feetbelowsurface) T ~ ~ ~ - ` o~ N E ` ~ ~ a Y N B t o Y O a ~ i0 c ~ ~ O a~ w O ~ V l~ ° r T° y ~ V ~" ~ l0 o ~ ~ Q Y t0 a ~ ~ ~ 1014-1034 SHALE 100 X 0 1034-1054 SHALE 50 50 X X 1 1054-1074 60% SANDSTONE 100 X Ve rained 40% SHALE 100 X 1074-1094 60% SANDSTONE 100 X Ve fine rained 40% SHALE 100 X 7094-1114 70% SHALE 50 50 X X 30% SANDSTONE 100 X Ve fine rained 1174-1134 80% SANDSTONE 100 X Ve fine rained 20% SHALE 50 50 X 1134-1154 60 % SANDSTONE 100 X Gas in sam le ba , ve fine rained 40% SHALE 50 50 X 1154-1174 70% SANDSTONE 100 X Ve fine rained 30 % SHALE 50 50 X X 1174-1794 60% SANOSTONE 100 X Gas in sam le ba , ve fine rained 40% SHALE 50 50 X 1194-1214 60% SHALE 50 50 X Gas in sam le ba 40% SANDSTONE 100 X Ve fine rained 1214-1234 60% SHALE 50 50 X Gas in sam le ba 40/ SANDSTONE 100 X Ve fine rained 1234-1254 80% SHALE 50 50 X 20% SANDSTONE 700 X Ve fine rained 1254-1274 70% SANDSTONE 100 X Ve fine rained 30 % SHALE 100 X 1274-1294 SANDSTONE 100 X Ve fine rained 1294-1314 70% SHALE 50 50 X X 1 C:~Documents and SeftingsWoh\Local Semngs\Temporary Internet Files\OLK742W6-OS_Geo Descrq~.xls Page 3 af 9 10/11/2007 Log sheet for Gas Exploration Program drill cuttings Narth Basin Wells - Summer 2007 Drilling CoMractor: Major Drilling America, Inc. Well No.: NB-05 ~~~~k~ A ~~~`N T/,q t Page ~ of ~ Red Dog Mirte, Alaska Sam le Interval Lkholo Colo r % Part icle Sh a e Min eraliza tion % White Cons titueM S CommeMs (feetbelowsurface) ~ L ~ - T oi 01 E ~ ~ v 0 a L o ~, O a N N a `N O d ~ ~ ~ U V c~ ~Q o y ~-• i0 ~ r ~ ~ Q 0 ~ 30% SANDSTONE 100 X Ve fine rained 1314-1334 50% SHALE 50 50 X 50% SANDSTONE 100 X Ve fine rained 1334-1354 50% SHALE 50 50 X 50% SANDSTONE 50 50 X Ve fine rained 1354-1374 80% SHALE 100 X X 20% SANDSTONE 100 X Ve fine rained 1374-1394 70% SANDSTONE 100 X Ve fine rained 30% SHALE 100 X 1394-1414 60% SHALE 100 X X 40% SANDSTONE 100 X Ve fine rained 1414-1434 70% SHALE 50 50 x 30% SANDSTONE 100 X Ve fine rained 1434•1454 50% SHALE 100 X X 1 50% SANDSTONE 100 X Ve fine rained 1454-1474 SANDSTONE 100 X 1 Ve fine rained 1474-1494 60% SANDSTONE 100 X Ve fine rained 40% SHALE 50 50 X 1494-1514 70% SANDSTONE 100 X X 1 Ve fine rained 30% SHALE 100 X 1514-1534 80 % SHALE 100 X Gas in sam le ba . Went on fluid 20% SANDSTONE 100 X Ve tine rained 1534-1554 60 % SANDSTONE 100 X 1 Gas in sam le ba , ve fine rained 40% SHALE 100 X 1554-1574 70% SHALE 100 X Gas in sam le ba 30k SANDSTONE 50 50 X Ve fine rained C:\DOCUments and Settings~bob~Local SetUngs\Temporary Intemet Files\OLK742W6-QS_Geo DescriDxls Page 4 of 9 10/11/2007 Log sheet for Gas Exploration Program drill cuttings North Basin Wells - Summer 2007 Drilling CoMractor: Major Drilling America, lnc. Well No.: NB-05 ~'0 ~~ ~/~~ ~~ ~/ `~~.~',~ ~~` ~~ Page~ of ~ Red Dog Mine, Alaska Sam le IMervai Litholo ~ Colo r % Part icle S ha Min eraliza tion % White Cons tltueM S CommeMs (feetbelowsurtace) T ~ ~ - ` LA N E ` ~ ro -o Y fV0 H L o ), Y O ~ T ~ N c ~ {y O> O a~ N ~ ~ V [~ ~ V _ ~T ° ~ O V ~N Y ~p ~ N J Q ~ t=0 a 1574-1594 60% SANDSTONE 100 X X Ve fine rained 40% SHALE 100 X 1594-1614 70% SANDSTONE 100 X Ve fine rained 30 k SHALE 100 X 1614-1634 50% SANDSTONE 700 X 1 Ve fine rained 50 % SHALE 100 X 7634-1654 60% SHALE 50 50 X 40% SANDSTONE 10 90 X Ve fine rained, li ht sandstone sli htl calcareous 1654-1674 60% SHALE 100 X X 40 % SANDSTONE 10 90 X Ve fine rained, li ht sandstone sli htl calcareous 1674-1694 80% SANDSTONE 10 90 X Ve fine rained, li ht sandstone sli htl caicareous 20% SHALE 100 X 1694-1714 50% SANDSTONE 10 90 X Gas in sam le ba . Ve fine rained, li ht sandstone ve calcareous 50 % SHALE 100 X 7774-1734 60 % SANDSTONE 10 90 x Gas in sam le ba . Ve fine rained, li ht sandstone ve calcareous 40% SHALE 50 50 X 1734-1754 70 % SANDSTONE 20 80 X Gas in sam le ba . Ve fine rained 30 % SHALE 100 X 1754-1774 90 % CHERT X Ko ruk 1754. Gas in sam le ba . Chert white to li ht ra 70% SANDSTONE 100 X Ve fine rained 1774-1794 40% CHER7 X Ka ak 1784. Gas in sam le ba . Chert as above, trace 40 % SHALE 100 X X whRe limestone 20% SANDSTONE 100 X Ve fine rained 1794-1814 60% SHALE 50 50 X X 30~ SANDSTONE 100 X Ve fine rained, sli htl calcareous 10% CHERT X Whitetoli ht ra C:~Documents and SettingsWob\Local Settings\Temporary Internet Files\OLK742\NB-OS_Geo Descnp.xls Page 5 of 9 70/17/2007 Log sheet for Gas Exploration Program drill cuttings North Basin Wells - Summer 2007 Drilling Contractor: Major Drilling Amerlca, Inc. Well No.: NB-05 ~'o ~~ ~ ~,. Page~ of ~ ~~ ,y °'~ ~~ ~~~ Red Dog Mine, Alaska Sam le Interval Litholo Colo r % Part icle S ha e Min eraliza tion % White Cons tkuen 4s CommeMs (teetbelowsurtace) ~ ~ °' ~ Ol E ~ ~ -t6o Y a o ), Y ~ T y ~ ~ (p 01 d N ~ ~ V ~ (~ « .°T- _ ~ V ~~ C c~i r Q ~ ~ 1814-1834 80% SHALE 10 90 X 20% SANDSTONE 100 X Ve fine rained 1834-1854 80% SHALE 10 50 40 X X Trace li ht ra chert. Cavin ? 20% SANDSTONE 100 X Ve fine rained 1854-1874 70% SHALE 50 50 X X 30% SANDSTONE 100 X Ve fine rained iS74-1894 50% SANDSTONE 100 X X Gas in sam le ba . Ve fine rained 25% SHALE 50 50 X 25~ CHERT Li ht ra , bitumen filled fractures 1894-1914 60 % SHALE 50 50 X Gas in sam le ba 30% SANDSTONE 100 X Ve fine rained 10 % CHERT Li ht ra , bitumen filled fractures 1914-1934 60 % SHALE 10 80 10 X Gas in sam le ba 40% SANDSTONE 100 X Ve fine rained 1934-1954 50% SHALE 50 50 X X 1 50% SANDSTONE 20 80 X X Ve fine rained 1954-1974 40 % SHALE 100 X Gas in sam le ba . Drillin break somewhere in this interval 40% SANDSTONE 100 X Ve fine rained 20 % CHEFT X Li ht to dark ra , bitumen filled fractures 1974-1994 50 % SHALE 5 50 45 X X Trace chert as above 50% SANDSTONE 10 90 X Ve fine rained 1994-2014 80 % SHALE 10 40 50 X Gas in sam le ba . Drillin break 2024 - 2034 10% SANDSTONE 100 X Ve fine rained 10 % CHERT Li ht to dark ra , bitumen tilled fractures 2014-2034 50 % SHALE 100 X X Gas in sam le ba 50 % SANDSTONE 100 X Ve fine rained. Trace li ht ra chert C:~Documenls and Semngs~bob~local Setlings\Temporary Internet Files\OLK142WB-05_Geo Descdp.xls Page 6 of 9 10/11/2007 Log sheet for Gas Exploration Program drill cuttings ~ North Basin Wells - Summer 2007 //~ Drilling Contractor: Major Drilling America, Inc. ~~ Well No.: NB-OS Pa e of 9 ~ ~ ~~,~~. Red Dog Mine, Alaskn Sam le Interval Litholo ~ Colo r % Part lcle S ha e Min eraliz ation % Whke Cons tituen ts ~; CommeMs (feet below surtace) T ~ O1 ` Of N E ` ~ Y o Y lV0 ~ L o ~ O s T itl a ~ ~ O d N O ~ l0 " U T °~ '11 ~ =~ ~'~ d U c~ ~ 'v ~ ~ Y '~ , ~ ~~ 2034-2054 50 % SHALE 50 50 X X 5 Gas in sam le ba 30% SANDSTONE 100 X Ve fine rained 20% CHERT Li ht to dark ra , bitumen filied fractures 2054-20~4 50 % SHALE 50 50 X X 50 % CHERT Medium to dark ra , bitumen fiiled fractures 2074-2094 90 % SHALE 20 60 20 X X Dark ra and black shales are sil 10 % SANDSTONE 40 60 X Ve fine rained, trace chert as above 2094-2114 SHALE 20 40 40 X X 2114-2134 80% SHALE 20 60 20 X X 10% SANDSTONE 40 60 X X Ve fined rained 10 % CHERT Medium to dark ra , bitumen filled fractures 2134-2154 SHALE 30 30 40 X X 1 Dark ra and black shales are sil 2154-2174 60~ SHALE 30 30 40 X X Gas in sam le ba 40% SANDSTONE 20 80 X X Ve fined rained 2174-2194 80 % SHALE 10 90 X Gas in sam le ba 20% SANDSTONE 50 50 X Ve fined rained 2194-2214 90 % SHALE 10 90 X X 1 Gas in sam le ba . Dark ra shale is si 10% SANDSTONE 50 50 X Ve fined rained 2214-2234 50% SHALE 20 80 X X 50% SANDSTONE 50 50 X Ve fine rained 2234-2254 60% SHAIE 100 X X 1 40% SANDSTONE 100 x X Ve fine rained 2254-2274 50 % SHALE 100 X X 1 40% SANDSTONE 100 X Ve fine rained 10% CHERT Medium to dark ra 2274-2294 80~ SHALE 50 50 X X Trace chert as above C:~DOCUments arxl Setfings~bob~Local SerongsUemporary Intemet Files\OLK142\NB-OS_Geo Descrip.xls Page 7 of 9 10/11/2007 Log sheet for Gas Exploration Program drill cuttings neanog Nttne, ataska ~ . North Basin Wells - Summer 2007 ~ ~, Driliing Contractor: Major Drilifng America, Inc. ~~~ ~ Well No.: NB-OS Page~ of ~ ~+~'°~~'~'~~ 1 ~ Yd` 's ,~; Sam le IMerval Lithob i Col or % Part icle S ha e Min eraliz ation % White Cons tttueM S ommeMs ((eet below surtace) >. ~ ~ - ` oi N E T ~ ~ v Y tV0 a L `o a Y O B a y TO H ~ m Of O a~ O ro V ~0 ~ ~ = ~>. a W o ~ U '" y i0 u N 'C J Q .41-~ (0 .o I~ ':. 20% SANDSTONE 100 X Ve fine rained 2294-2314 50 % SHALE 10 30 60 X X Gas in sam le ba 50% SANDSTONE 100 X Ve fi~e rained 2314-2334 50 % SANDSTONE X Ko ruk 2314. Gas in sam le ba . White, fine rained, calcareous 40% CHEFT White,bitumenfilledfractures 10% SILTSTONE 100 Non calcareous 2334-2354 50 % SHALE 50 50 X Ka ak 2330.. Gas in sam le ba 40 % CHERT Medium to dark ra 10 % SANDSTONE 100 X Ve fine rained 2354-2374 90 % SANDSTONE Ko ruk 2354. White, ve fined rained, calcareous, bitumen fractures 10% CHERT White,bKumenfilledfractures 2374-2394 80 f CHERT X White to brownish ra , bitumen filled fractures 20% SANDSTONE White,Ve fine rained,Galcareous 2394-2414 70% CHERT White, li ht ra , tan 20 % SHALE 50 50 X 10% SANDSTONE Ve fine rained, White, Calcareous 2414-243A 50% SANDSTONE X Ve fine rained, White, Calcareous 20% Chert White to dark ra , Bitumen filled fractures 20% SANDSTONE Ve fine rained, Dark ra ,Non-calcareous 10 % SHALE 100 X X 2434-2454 60% SHALE 50 SO X X 20 f SANDSTONE 5% White, Calcareous, 95 % Dark Gra , Non•calcareous 20 k CHERT White to Dark ra , Bitumen filled fractures 2454-2474 50 % SHALE 50 50 X X 30% SANDSTONE Dark ra , Ve fine rained 20 % CHERT White to dark ra , Bitumen filled fractures C:\~ocuments and SetGngslbob\Local SeHings\Temporary Internet Files\OLK142WB-OS_Geo Descrp.xls Page 8 of 9 1 W11/2007 Log sheet for Gas Exploration Program drill cuttings North Basin Wells - Summer 2007 Drilling Contractor: Major Drilling Ameriw, Inc. Weli No.: NB-05 Page~. of ~ Red Dog Mine, Alaska Sam le Interval Litholo Colo r % Part icle Sh a e Min eralfza tlon % Whke Cons titueM S Comments T d ` N N ry 7 (feet6elowsurtace) ro o> >, u o r1 N ~ N Y U L ~ •T U .~ A ~ « O1 E a t C a o O a i0 n d c6 ~ °~ ~~ ci°i 'v a 2474-2494 40 % SHALE 50 50 X X 40% SANDSTONE 10% White, Calcarous, 90% Dark ra , non-calcareous, Ve fine rain 20 % CHERT White to dark ra , Bitumen filled fractures 2494-2514 40 % SANDSTONE Dark ra , Trace whRe, Ve fine rained 40 % SHALE 50 50 X X Dark ra to black 20% CHERT Dark ra towhite 2514-2534 80% SHALE 50 50 X X Dark ra to bldck 10% SANDSTONE Dark ra , Ve fine rained TD 10 % CHERT Li ht to dark ra Bitumen filled fractures ~ C:~DOCUments and Settings~bob~Local Settings\Temporary Intemet Files\OLK142W6-05_Geo Descnp.~ds Page 9 of 9 10/11/2007 t ~ A Gyrodata Directional Survey for TECK COMINCO ALASKA INC. Location: RED DOG MINE WeII:NB-OS Job Number: AK0807G 536 Run Date: 8/9/2007 Surveyor: Steve Thompson Calculation Method: MINIMUM CURVATURE Survey Latitude: 68.081760 deg. N Longitude: 162.853700 deg. W Azimuth Correction: Gyro: Bearings are Relative to Txue North Vertical Section Calculated from Well Head Location Closure Calculated from Well Head Location Horizontal Coordinates Calculated from Well Head Location ~ A Gyrodata Directional Survey TECK COMINCO ALASKA INC. I,ocation: RED DOG MINE CO~~IDENTIAC Well: NB - OS Job Number: AK0807G 536 MEASURED INCL AZIMUTH BORE HOLE DOGLEG VERTICAL CLOSURE HORIZONTAL DEPTH BEARING SEVERITY DEPTH DIST. AZIMUTH COORDINATES feet deg. deg. deg. min. deg./ feet feet deg. feet 100 ft. 0.00 0.00 0.00 N 0 0 E 0.00 0.00 0.0 0.0 0.00 N 0.00 E RATE GYRO SURVEY RUN INSIDE 4'/2" DRILL PIPE ALL SURVE Y DEPTH S REFERENCED TO GROUND LEVEL AT 980 FT AMSL 100.00 0.75 270.95 N 89 3 W 0.75 100.00 0.7 270.9 0.01 N 0.65 W 200.00 0.94 ~73.75 N 86 15 W 0.19 199.99 2.1 272.0 0.07 N 2.12W 300.00 1.75 265.64 S 85 38 W 0.83 299.96 4.5 270.2 0.01 N 4.45W 400.00 1.84 263.78 S 83 47 W 0.11 399.91 7.6 267.9 0.28 S 7.56W 500.00 1.58 255.68 S 7S 41 W 0.35 499.87 10.5 265.7 0.79 S 10.49W 600.00 1.40 258.87 S 78 52 W 0.20 599.83 13.1 264.0 1.37 S 13.02W 700.00 1.23 267.42 S 87 25 W 0.26 699.81 15.4 263.8 1.65 S 15.28W 800.00 1.19 317.98 N 42 1 W 1.03 799.79 17.1 266.9 0.93 S 1'7.OSW 900.00 1.12 325.59 N 34 25 W 0.17 899.77 18.3 272.0 0.65 N 18.30W 1000.00 0.76 298.26 N 61 44 W 0.56 999.75 19.5 275.2 1.77N 19.43W 1100.00 0.78 303.82 N 56 11 W 0.08 1099.74 20.7 276.8 2.46N 20.58W 1200.00 0.89 314.44 N 45 34 W 0.19 1199.73 22.0 278.9 3.39 N 21.70W 1300.00 0.90 318.34 N 41 39 W 0.06 1299.72 23.2 281.2 4.51 N 22.78W 1400.00 1.07 323.22 N 36 47 W 0.19 1399.71 24.6 283.8 5.85 N 23.86W ~ ~ A Gyrodata Directional Survey TECK COMINCO ALASI~A 1NC. Location: RED DOG MINE Well: NB - OS Job Number: AK0807G 536 MEASURED INCL AZIMUTH BORE HOLE DEPTH BEARiNG feet deg. deg. deg. min. ~oNFr~ ~ EN~`~,~~ DOGLEG VERTICAL CLOSURE HORIZONTAL SEVERITY DEPTH DIST. AZIMUTH COORDINATES deg./ feet feet deg. feet 100 ft. a , ~ 1500.00 1.21 326.26 N 33 45 W 0.15 1600.00 2.37 321.26 N 38 44 W 1.17 1700.00 3.45 319.87 N 40 8 W 1.08 1800.00 4.21 314.43 N 45 34 W 0.84 1900.00 4.74 306.05 N 53 57 W 0.84 2000.00 5.55 291.14 N 68 52 W 1.56 2100.00 6.71 282.37 N 77 38 W 1.49 2200.00 8.25 283.03 N 76 58 W 1.54 2295.00 9.66 282.99 N 77 1 W 1.49 Final Station Closure: Distance: 93.47 ft Az: 29338 deg. 1499.69 26.1 286.6 7.47 N 25.OOW 1599.64 28.7 290.3 9.95 N 26.~8W 1699.51 33.1 294.7 13.86 N 30.11 W 1799.28 39.4 298.4 18.73 N 34.66W 1898.98 47.0 300.3 23.72 N 40.62W 1998.58 55.9 299.9 27.90 N 48.47W 2098.01 66.3 297.8 30.89 N 58.69W 2197.15 79.0 295.3 33.76 N 71.39W 2290.99 93.5 293.4 37.09 N 85.80W LJ ~ Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Monday, October 29, 2007 8:56 AM To: 'Bob Gardner' ~ i a~~. i vi ~ ~~ ~~r}~ Cc: Booth Jerry SPOK Subject: RE: Teck Cominco Alaska Incorporated, Red Dog Shale Gas Exploration Project, Weils Nos. NB- 'aOS-O~S' 01, NB-02, NB-03, NB-04A, and MB-05 --.~ ~~_,~~~ y ao~-o~o Bob and Jerry, ~OS - C7 5to a O~t - O~S~ i confirm our call_ Haiting the weekiy reports is appropriate. As proposed, please keep the Commission advised regarding the resumption of pumping operations. Call or message with any questions. Tom Maunder, PE AOGCC From: Bob Gardner [mailto:~b@fairweather.com] Sent: Monday, October 29, 2007 8:22 AM To: Maunder, Thomas E (DOA) Cc: Booth )erry SPOK Subject: Teck Cominco Alaska Incorporated, Red Dog Shale GasF~cpioration Project, Welis Nos. NB-01, NB-02, NB-03, NB-04A, and NB-05 Tom: As per our recent telephone conversation, and the last Weekiy Operations Summary Reports covering the above referenced wells, the Red Dog Shale Gas Exploration Project wi{! be shut-in for an indefinite period due to electrical probtems with the power fine between the mitt at Red Dog mine, and the project site. This line supplies 100% of the power required to operate the wells during the planned extended dewatering period. We are still uncertain about the exact duration of the shut-in period, as the Red Dog Engineering and Electrical Departments are still trying to make a determination on whether a mil{ shutdown will be required to install an isolation switch and ancillary equipment. This extended shut-in period is caused by an electrical malfunction that has nathing to do with the condition of the wells or surface facilities at the GasEx project site. The problem is being addressed by the aforementioned Red Dog Mine Departments with an eye toward both maintaining the productivity af the mi~e/mitl compfex, and getting the dewatering pumping resumed as soon as reasonably possible. The equipment and materials necessary to correct the etectrical problem have been ordered, and instaliation will occur at the most opportune time after they are delivered to Red Dog. We are told that under the most optimistic scenario, a restart of dewatering pumping could occur in the December 2007-January 2008 time frame. If a mili shutdown is requirec! in order to instalf the equipment, the shut-in period coutd extend into April 2008 when the next regularly scheduled mitl shutdown will occur. We will keep the AOGCC advised on developments as they are made known to us. Now that alt wefls in the initial ftve-spot pattem are completed, we respectfully request that the requirement for Weekly Operations Summary Reports be suspended. Monthly Production Reports (Form 10-405) will be filed both during the shut-in period, and for so long thereafter as there are ongoing productions operations at the GasEx project site. Thank you for your consideration Qf #his reque~t, ~~1d ~n~t~ F~.n.c~@.rct?n~iin~ r,f thc c[~CtrC..'~~ r^.t'~~te^:s ~ha: :~~ ar~ cur~ently experiencing. Sincerely, R. C. Gardner 10/29/200'7 . ~ ~~~~~ ocT ~~`~ ~ & P O tober 24, 2007 ~f~s'~~ ~i/~ ~~ ~ ~ ?00~ ~~~h0 ~9e ~~~~~'si Alaska Oil and Gas Conservation Commission ~'~ 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: October 14-October 20, 2007 We11 No: NB-OS (PTD 206-097) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, October 20, 2007: Well NB-OS remained shut-in during this report period. Red Dog Engineering Department advises that dewatering pumping cannot be started at this well until an isolation switch is installed in the main power line to the GasEx project site. This equipment has been ordered, but it remains to be determined if it can be installed without shutting down the mill first. A preliminary estimate for a best-case dewatering start-up at NB-OS is in the December 2007-January 2008 time frame. It is also possible that the start-up could be delayed until the next regularly scheduled mill shutdown in April 2008, if a mill shutdown is required before the switch can be installed. As a precautionary measure, the tubing and pump stator well pulled from NB-OS on October 19, 2007, and the well will be freeze protected during the shut-in period. The surface facilities at the NB-OS well site are fluid-free, as dewatering pumping at this well has never been started. Sincerely, ~,u ,-: ~ ~,, ~ ~<-; ~~~ .. ;~~.~~ ~ r R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth: Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 ~ • E & P SERVICES, INC. ~~ ~i~ o~ ~~.~~ . October 17, 2007 ~F~, T ~"`~* O,~'c~ I ~ ~ Alaska Oil and Gas Conservation Commission 9,~~'~~~,~,~ ~~~~' 333 West 7th Avenue, Suite 100 °''$~ ~ Anchorage, AK 99501 ~°'~'~~~~g Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: October 7-October 13, 2007 Well No: NB-OS (PTD 206-097) Dear Mr.1Vlaunder: FOR THE PERIOD ENDING SATURDAY, October 13, 2007: Finished downhole work for well completion on October 10, 2007. Well completion date will be carried as that date. Also completed installation of surface facilities during this report period. Well is ready for dewatering start-up, pending resolution of electrical problems in Skv main electrical line supplying GasEx project site, and start-up schedule from Red Dog. Well shut-in at close of report period. Since~rely, ,- ~~_- ~-~ ~~~ ---M° -~ ~ --~~"C ; R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth: Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 • ~ E & P SERVICES, INC. October 11, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: September 30-October 6, 2007 Well No: NB-OS (PTD 206-097) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, October 6, 2007: Installed pump stator, and ran 2 7/8" tubing during this report period. Stator at 2332 ft. Awaiting installation of surface facilities, and remainder of well completion at close of report period. ~~~~,~,.. Sincer ly ~''~ ~ ' ',~"L---------°° ~ r ~ R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth: Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 ~ ~ E & P SERVICES, INC. October 2, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: September 23-29, 2007 Well No: NB-OS (PTD 206-097) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, SEPTEMBER 29, 2007: Replaced drilling line, and resumed drilling out CBP's. Power swivel failed. Down 2 days awaiting parts and repair of power swivel. Resumed operations and completed drilling out CBP's. Circulated hole clean. Cleaned up location and moved out production hoist. Well shut-in while awaiting installation of surface facilities, and running of tubing, pump, and rods. Sincerel , r ~ ~'r-'~---------'`''~M ~~~ R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth: Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 ~ ! E & P SERVICES, INC. September 25, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: September 16-22, 2007 Well No: NB-OS (PTD 206-097) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, SEPTEMBER 22, 2007: Moved in and rigged up production hoist. Used power swivel on production hoist and tubing to start drilling out composite bridge plugs. Drilling line showed abnormal wear and deemed unsafe to continue to use. Production hoist shut down, awaiting new drilling line. Well secured while waiting on drilling line. Sincerely, ,_ - , ~. ; , t ~ ~ ~ ' ~~~~ _--___---_.._~._ _ R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth: Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 . ~ E & P SERVICES, INC. September 20, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: September 9-15, 2007 Well No: NB-OS (PTD 206-097) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, SEPTEMBER 15, 2007: No change from previous report period. Well secured awaiting drill-out of composite bridge plugs after work at NB-03 is completed. Perforating and hydraulic fracturing work completed at NB-O5. Sincerely, .. ,..~ ~ ~ i - ~ r t,~--~--........,"__ ~ ~~ ~ R. C. Gardner For Teck Cominco Alaska Incorporated Cc: 3erry Booth: Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 ~ ~ E & P SERVICES, INC. September 13, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer ~~~~~~J~~<< SEP ~ 3 ~~~i` f ~#tasica Oil ~ Ga~ ~~~~ . , = M mr:.~~:-, Anc~~~ ~,~,;; Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: September 2-September 8, 2007 Well No: NB-OS (PTD 206-097) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, SEPTEMBER 8, 2007: No change from previous report period. Well secured awaiting drill-out of composite bridge plugs after work at NB-03 is completed. Perforating and hydraulic fracturing work completed at NB-O5. Sincere , ~~ ~-~ , ~ _ f~~~~. _ _~ R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth: Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 ~ ~ E & P SERVICES, INC. September 5, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: August 26-September l, 2007 Well No: NB-OS (PTD 206-097) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, SEPTEMBER l, 2007: Well secured awaiting drill-out of composite bridge plugs after work at NB- 03 is completed. Perforating and hydraulic fracturing work completed at NB-O5. Sincerely, ~ E :~~~_~~..~ ~ R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth: Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 ~ E & P SERVICES, INC. August 28, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 ~ ~~~~~~CD AUG 2 9 ?007 Alaska tlil ~ Gas Cons. ~ornmission Anchorage Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: August 19-August 25, 2007 Well No: NB-OS (PTD 206-097) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, AUGUST 25, 2007 Developed supplementary perforating and hydraulic fracturing program. Program includes 4 stages of perforations, with each stage fracced. Stages are separated by composite bridge plugs. Stage 1(2330 ft-2450 ft): Perfed in four intervals with 122 shots total. Fracced with 500 bbls, 25# guar gel, and 70,000# Ottawa sand. Stage 2(2050 ft-2220 ft); Perfed in three intervals with 120 shots total. Fracced with 425 bbls, 25# guar gel, and 41,000# Ottawa sand. Stage 3(1880 ft-1982 ft): Perfed in four intervals with 84 shots total. Fracced with 325 bbls, 25# guar gel, and 25,000# Ottawa sand. Stage 4(1690 ft-1785 ft): Perfed in two intervals with 61 shots total. Fracced with 275 bbls, 25# guar gel, and 26,000# Ottawa sand. Perforating and frac details to follow with Completion Report. Secured well and moved completion spread to NB-04A. Sincerely, , ~ ~ ~~ R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated. 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 • ~ ~ ~ ~ ~ y~~ ~~~~ ~~~ {'~.~,~F~r, . ~p ~ .:...m ~~ V, _.../ 1..,7 a:_A R,..i ~6.~ b..a ~~ O~ ~ ~ C011TSERQATI011T COMI~IISSIOI~T R.C. Gardner Sr. Technical Advisor Teck Cominco Alaska Incorporated 3105 Lakeshore Dr. Bldg A, Ste 101 Anchorage, AK 99517 Re: Exploration Wildcat, NB-05 Sundry Number: 307-272 Dear Mr. Gardner: SARAH PAL/N, GOVERNOR 333 W. 7thAVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 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. 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}. 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, Dan T. Seamount Commissioner DATED thisZZ day of August, 2007 Encl. a0~-C~9'a- • E & P SERV~CfS, INC. August 20, 2007 • Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 ~-~~~ ~ Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: August 12-August 18, 2007 Well No: NB-OS (PTD 206-097) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, AUGUST 18, 2007 Well idle, with 5 1/2" production casing run and cemented from TD to surface. Awaiting perforating and fraccing program. Sincerely, ~..~ ~ ~~„ _~a ~~,~ .. -~ E~~ ~~~ R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated. 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 ~ ~ E & P SERVICES, INC. August 17, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: To Maunder, P.E., Petroleum Engineer ~~~~~ V ~~ AUG I 7 2007 ~laska ~ii & Gas Cac~s. Commissian ~nchorage Re: Application for Sundry Approvals (Form 10-403), Teck Cominco Alaska Incorporated, Red Dog Shallow Shale Gas Exploration Project. Well No. NB-O5, PTD No. 206-097 Perforating and Hydraulic Fracturing Program Dear Mr. Maunder: The above referenced Application for Sundry Approvals is attached in duplicate. We apologize for the "eleventh hour" delivery of this application to your office, but the perforating and fraccing program was not completed by ARI until late yesterday afternoon. We would appreciate an expedited review of this application, and a verbal approval, if at all possible, so the work can go forward as scheduled. In the future, we will make every effort to get Sundry Approval applications into your hands sufficiently in advance to meet current AOGCC review schedule. Thank you for your consideration of this application. Sincerely, r /'' , .,j /' ~~~ / ~.. ~¢ /~~. ~ s ~`.~.~. _ .,. R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 '/ ~ O `y 7 STATE OF ALASKA (,{y,j' ~'Z~~n ~~ ~~~EIVEC~ ALASII~UAND GAS CONSERVATION COM~ON AUG I 7 2007 APPLICATION FOR SUNDRY APPROVALS ~~,? ~ 20 AAC 25.280 ~laska Oi4 $, Gas Con 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown ^ Perforate ^~ Waiver ^ Q~ChO~a eOther ^ ~ Alter casing ~ Repair well ~ Plug Perforations ~ Stimulate Q Time Extension ~ Change approved program ~ Pull Tubing ~ Perforate New Pool ~ Re-enter Suspended Well ^ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Teck Cominco Alaska Incorporated Development ~ Exploratory ~ 206-097 ' 3. Address: Stratigraphic ~ Service ~ 6. API Number: 3105 Lakeshore Dr., Bldg. A, Ste 101, Anchorage, AK 99517 50-073-20006-00 - 7. If perforating, closest approach in pool(s) opened by this orpra++~n to nearest 8. Well Name and Number: properry line where ownership or landownership changes: 5245 ft Spacing Exception Required? Yes 0 No ^ NB-05 ~ 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): NANA Re ional Cor oration 979 Ex lorator ~ 12• PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 2559 2555 2504 2500 2504-2555 None Casing Length Size MD ND Burst Collapse Structural Conductor 83' 13 3/8" 83' 83' Surface 960' 8 5/8" 960' 960' 2950 1370 Intermediate Production 2550' S1/2" 2550' 2546' 4810 4040 Liner Perforation Depth MD (ft): Pertoration Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): See attached See attached None None N/A Packers and SSSV Type: No packers or SSSV Packers and SSSV MD (ft): N/A 13. Attachments: Description Summary of Proposal Q 14. Well Class after proposed work: Detailed Operations Program Q BOP Sketch ~ Exploratory Q Development ^ Service ~ 15. Estimated Date for 20-Aug-07 16. Well Status after proposed work: Commencing Operations: Oil ~ Gas Q Plugged ^ Abandoned ~ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ~ WDSPL ~ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name R.C, Gardner Title Sr. Technical Advisor for Teck Cominco Alaska Signature !' Phone 907-258-3446 Date 16-Aug-07 r ~- ,,.~ _ COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: _ Plug Integrity ~ BOP Test ~ Mechanical Integrity Test ^ Location Clearance ^ Other: ~~~~~ l~,lCe~ ~, m~~ (~VM~~t~ ~ vt p~~rh~- '-r 1 ra~iCr.~~ C~t~. ipT`~:J~va~T~C'~ C. ~e2-t~3C~'c~LJ ~ ~ ~ T ~ ~ ~~ ~ c~ ~ €"~C~~'~~ ~ ~cc~~C.~-'~oc~ ~~c-C~~OC~S Si+"`~'~C.~..!~ ~O b~-~~Wtc~~~ Subsequent Form Required: ~~ APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: ~ Z~ -0R Form 10-403 Revised 06/2006 ~ R ~~~ N A L ~ ~°' AUG ~i ~e 2~~~ Submit in Duplicat~p(~~ • . Teck Cominco Alaska Incorporated Red Dog Shale Gas Egploration Program Well No. NB-05 (PTD 206-097) Application for Sundry Approval Perforating and Fraccing Program Summary of Proposal Well No. NB-OS was the first well in the 2007 drilling program to be drilled and cased to TD in preparation for perforating and hydraulic fracturing. The attached operations program describes these proposed activities. The well will be perforated and fracced in five stages from the bottom up. The stages will be isolated by composite bridge plugs (CBP's) as the stages are completed. The CBP's will be drilled out and the welled cleaned out to the effective depth in preparation of running a progressive cavity pump, and the initiation of dewatering operations. ~ -'-'' s • . Teck Cominco Alaska Incorporated Red Dog Shale Gas Exploration Program Well No. NB-05 (PTD 206-097) Application for Sundry Approval Perforating and Fraccing Program Detailed Operations Program (See Attached) ~ Teck Cominco DEPTI DESCRIPTION WELL NUMBEF 5 LEASE NAME LEASE # FT M DISTRICT QUAD - p ~ '~ l DATE COUNTY API # r~p ~ ' ~5 TARGET 3,000 ELEVATION ~pp 3o ZONE(s) <ayak.KCva6ne,Ikaluluol UNITS API/M API COMPLETION Zpp st Descri Pr ram ISIP Pad % #sand/pert Conc Rate, b m Water, bbls Sand # HHP Pi ~o y~ g~ge ~ 2a3o. zeao 20% 750 1- 4 29.0 325.0 30,000 CSG 400 CSG SHOE ~i t2z perts 40 pSl PP9 ~ 3~ ~~~ ~ 500 ~~a~e isz Stage 2 to ~ 20% 500 1- 4 29.0 450.0 50,000 CSG 600 CPAT. Class G ~ te3 perts 100 pSl ppg 2s aoo 30,000 Bpp 244 Stage 3 zoso-zz~o, zzao-zzzo 20% 500 1- a 29.0 350.0 40,000 CSG i~ ~os perts so psi Ppg 29 350 so,ooo ~ spp Staae asi Stage 4 s- +ses 20% 750 ~- 4 29.0 325.0 30,000 CSG rts ao si za z5o zo,ooo _ ~~ ~ n 579 Stage5 , t~ea 20% 375 1-4 29.0 325.0 30,000 C, perts 9o psi pn9 '~ zso zo.ooo _ -- - • Zone ~ 2000 erts 0 o n 6 ZOne 2 7690 -1710, 1765 ~~~ ~fg ~ 1785 ry 5 Zone 3 1950 -1860. 1978 - 2200 erts 40 ~9e6 tr 4 Zone 4 zoso-zno, 2200- 2300 erfs 80 ~o n 3 2one 5 2330-50, 2370•90, 2400 rfs ## z4oo-~0 ~, 2 Zone 8 2500 40 24so.z450 tt 1 CSG SHOE 2600 5.5", 15.5#, J-55 hole CMT, Class G 7" 81U 840 871 i _ ~o~ Hole Csg I~i~ An _ ,I~ _ I~ 732 Hole ~~ Csg 1I An_ ~ -- 7s2 Hole PBTD Csg 2504 ~sa An 3,000 075 TD e I il - DESIGN zs.o i,soo aao,ooo o csc TOTALS 3ao psi % pad #sd/hole bpm 355 180,000 o CSG AVGs ho~es #DIV/0! 20% 575 29 bbis # MAX HHP Cmt. Yleld #1 ~ 1.43 ~ #2 1.43 At3 #4 1 #5 7.43 #6 1.43 S!~c Desc~lptfon ID '/ol Vol Yield Column Volume ~` Sack~ Bb15 BBL CM~ ~„~ ~,,_.~ inchr . I~iil~,/G cu ft/ft CU ft/Sk ft cu ft slJft ~e~~-' 25% • Cmt ~~ Sks m° bbls 0.0 0.0 0.00 0.00 ~ LOG Teck Cominco 5 Stage 1 peris aaso - 2aso ~ 40 Kayak, Kivalina, Ikalukrok BRAKDOWN AVERAGE Sg~p 1240 MAXIMUM DISPLACEMENT ~ ~W~N psi 10 MIN LOAD AND BREAKDOWN 5 PAD TREATMENT 246.4 DISPL TOTAL VOLUME 338.4 87.0 58 Chemicals Gelload #r~o~~~~~~ ~~ HYDRALILIC HORSEPOWER AVERAGE RATE IN B.P.M Fluid Loss USED 637 TREATING DISPL OVERALL Surfactant gal/100!? ~;~o Biocide ~#i~ooo ~~~~i Time Cumul Rate Vol Cum Vol Sand Conc Sand Cum Sand Pressure DESCRIPTION OF STAGE Breaker q/1000 gal min miri b m bbl bbl pp # # CSG OR EVENT CHEMICALS Concen 4.51N GUAR 355.4 # 2s ~ 0.0 0 0.0 0.0 0 0 0 Fill Welibore FLUID LOSS #DIV/0! # 2 0.0 29.0 5.0 5.0 0 0 0 Bkdn, est. Rate RANSFOAM 51.8 gal 5 3 3 3.0 29.0 87.0 92.0 0 0 0 1,127 PUMP PAD BIOCIDE 14.2 # ~ a ~ 4.0 27.7 27.7 119.7 1 1,165 1,165 1,093 START SAND _ BREAKER 2.1 ts oz 5 1 5 0 26 6 26.6 146.3 2 2,234 3,399 1,062 SAND ON BOTTOM ~+.~.o ~ ~ 6 3 . 8.0 . 25.5 76.6 222.9 3 9,652 13,051 1,034 START SAND sEe,b s~,~ i~ 7 4.5 12.5 24.6 110.5 333.4 4 18,564 31,615 1,009 FINNISH SAND 100°° °~ ' s 1 13.5 29.0 0.0 333.4 0 0 31,615 1,127 FLUSH e~o ~ i~ ~ 0 13.5 0.0 333.4 0 0 31,615 ;~ a o a 13.5 0.0 333.4 0 0 31,615 ~ 6~.o ~~ 0 13.& 0.0 333.4 0 0 31,615 C ' i2 0 13.5 QA 333.4 0 0 31,615 a0°° ~ ~ ! ~,: ' ~ zao.o j /~ . .. I ~ ' _ 0 0 ,~. ~' ~ ~- `,. I ~. 1 " T~ _ t- '_ FT ~ __" _i 0 f 13.5 27.3 333.4 4 31,615 1,127 . f a I T TT T ~ 1 2 3 4 5 6 7 8 ~ T 9 90 11 12 13 ~ ~S~P ~ p$1 ~ ~-~CUm Vd bbl -~~Pressure o Rata 6pm ~~Sentl Conc ~ ~ TOTA~ SAND 316.2 sx sand --- - ~ ~ 1,200.0 i - 1,000.0 800.0 -) 600A 400.0 200.0 35 ~ 30 ~- 25 i 20 ~ i ~ 15 I _,_,~, - 10 '` ~ ~ / ~' -, 5 .~ ~ '~ i . ; € ~-'/' ~ ! ~ / y pI ~ 'y 0. ~ I-- - T -~r~ ~r-.- - _ -- ---- --- -- r- --- -- - _ -r--- -r~ , -r~ ~r- -~---Q 0 °' 0.0 0.0 3.0 4.0 5.0 8.0 _ 12.5 _13.5 13.5 _13.5 13.5 13.5 ~ I~ 0° Cum Vol bbl --- Pressure ° Rate bpm -- Sand Conc ppg ~ m m ~-- -- - ~ • SEB 1-6 Stg 1 frac nsrrFln.c-o.aeancaea.~;oum.imemaim~:.a.mo . Des;ripiion ~orrciation Properiies Sand per Foot nn;,m~,~~c.~. L 355000 /nsi 3162 Ib/tt ,rocr.e~cm 0.03 p~llft k 1 md ~ ' r~eum 2569 tt 6 0.095 dec Tarpet Sand v~_~~~s;r 33 c~~ FracMult 1 3000U ibs Macros mmep;~csr~c~o~ny 2.G5 Pres.GraU0.433 f~si.ft CnM+1=C~culateLength iico~n~;i~ ~ 22.10'I ICrm/~al G[rl+f=FracWreOptimization ~t~:mi~r OA in. Dlsnlau~mmnC ~~rrnir; 25 Tbl~lCe6 (ft Factor bbl Eq~raSOns 0.24 7baDepih2.AA1 0 0.017458 0 Cv=0.0469f(k4Pel/P10.5 ~ r,a~o 29 P;p:m i=rm Uepth h.89`1 2503 0.023246 59.57995 x=2C(M16.5NV ~ro!i~ipus 100 ft Total 59.67995 A=N"effN17.48W) ,~a trca~mcm ~m,~a~~b Calculatetl Values Clean Send Slurry Stape Cum Stapa Cum SCeqe Cum 9urf. Hyd Tim, Rate Conn h",ato ~ N~ater Water SNnv Slurry Sand Santl Pres~. HP - Lhl Lf ~p u Cv t W x Eff V A A (niinl (bpm) (psa) (hpm) (bb)) (bb~) (bbll (hb)) Ob) Ub) (psp ft ft f~ psi op fUmIn0.6 min in dlm 9al ft2 Pl2 9 2'~ 0 2f1 Yi 87 87 07 0 0 1727 800.942 124.3684 131.6026 504.991 33 0.000711 3 O.1~J0234 0.275187 0.854151 i827 93160.26 22~J57.2 i 1 27.7446i)~O~J 1 29 2774464 114.744~ 29 'h6 ~I165275 1185.275 1093 776.5059 154728 1637865 504.811 33.6237 a.000704 4 0.200911 0298060 0.842029 3436 16378.65 28347.37 ~.1 ZE.59346d85 2 Z~ ^8.59348 '141.3361 29 145 2233.851 3399.736 1062 754.5422 183.3183 194.1013 504.911 34.49888 0.000695 5 0.20961 0.315352 0,832664 3045 19410.13 33409.53 ~, 9 a3400363 3 76.G0207 217.5407 87 232 9651.853 13050.98 1034 734J484 261.8604 2772108 504.911 367422 0.000673 B 0229111 0.353614 tl.612585 4672 2772i.06 38230.58 ~,q.5 2n,y5572G33 4 ~110.500II 328AA0~ 130.5 362.5 18564.13 31675,11 1009 718.8663 976.5275 3b5.6265 504.911 38.98752 0.000654 12.5 0.250934 0.391782 0.792355 7612.5 38562.85 42865.93 ~~[s <~J 29 0 328.d409 0 362.5 0 37675.11 1127 800.942 378.5275 385.8265 5p4.~J11 38.98752 0.000654 12,5 0250934 0.391782 0792355 7612.5 38562.65 4735021 ~ee 29 ""~ 0 328A409 0 362.5 0 31615.11 1127 800.942 376.5275 385.6265 504.911 38.98752 0.000654 92.5 0250934 0.391782 0.792355 7612.5 385G2.65 52990.18 ~.e ~ 29 w3 0 928.Aa0~J 0 362.5 0 31615.11 1127 800.942 376.5D5 365.Fi?65 504.971 38.98752 0.000654 12.5 0.250934 0.391782 0792355 7612.5 38562.65 5844522 .0 29 0 29 p 328.A409 0 382.5 0 31615.11 1127 800.942 376.5275 385.6265 504.871 38.98752 0.000654 12.5 0250934 0.397782 0J92355 76P2.5 38562.65 63747.08 .... 0 ^9 0 32f3.4n09 0 362.5 0 31675.11 1127 800.942 3~6.5275 385.6265 504.911 30.98752 0.000654 12.5 0250934 0.391782 0792355 7612.5 38562.85 637q7.08 '12.5 92~n409 362.:+ 31815.71 F~d Sta,7e1 Siape2 ,,iape3 Stagel Staqe5 3tage6 Stage~ Stas~ef7 Tot~l W~9hted Averepe ViSCOSiN Calculation x x 33 67 87 28~7 2871 33 0 0 35.4948 ?9 118 7029.349 3900.34~J 33.6237 1 1 37.9896 29 145 1101.898 5002.048 34.4968& 2 2 ~ A0.4844 87 232 3522.143 8524.19 36.7422 4 4 h2.9792 190.5 362.5 5608.786 14132.98 38.~J8752 6 6 . 33 0 362.5 0 14132.98 38.98752 70 10 33 0 3G2.5 0 14132.98 38.98752 20 20 33 0 352.5 0 14132.~J8 38.98752 30 30 33 0 362.5 0 14132.98 38.98i5'> 40 40 0 33 0 362.5 0 14132.~J8 3fl98752 710 110 0 0 0 FIUiU Leak Of 0 7527 1172889 Vol. of SanU In Fracturo (bbp . 58.3 ~ Sanq Vcl./Frac.Val. Raiiu 0.196 Practure Volume (bbp 2872 Est ~'and Conc. (IL/ft.) OA1 Fr~cSUre Half ?.27P752296 17,TdA 2~.103436 ~2t^_1316 2'IB.G198 0 0 0 0 378.5 Createtl Widt 0.1nM_:A714 0.200J 020~JG102 Q?.29111 025093A 025093A 025093n ,. 0.250934 0.25U934 0.257 ~ ~ Esf.Closuro~0 0.07II9 0.17i2132 O.~IZA255 09(!18~8 0 0 0 0 0,049 Frac Totol Notoh Prac ToPel Wafer Water Sand Santl S~nd Gel Breaher SurF Bbcide bbl bbl Ibe Ilz~ Ib~ Ibs qt gal Iba 326.qy087(i 328.a140~/84 0 54G95A07 3'1695.91 493.ti35.4 275Ff.909 93.7945P 9379452 e 3l~ Ibl'IOOOgeI oer.,ai.w 02 qtf1f100ga1 iam 'I <tsU10009a1 ~ e~w~~;onnio L~aWOntle on chemistry noqc;e b~pends on cliemis[ry ~ :~eo i A~It000Aa1 9~is rilu cova petl in tl~~ ovon111ia fr.ac 7ob bkae Wnn~`rtlv~n Mannoa. Vill nood a Mareh funnel to ch;el: viecos{b. . ~ C~ ~ ~ ~ E & P SERVICES, INC. August 15, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 ~ ~~~~~ v G~ AUG 1 7 20~'~ Alaska Oil & ~~~ ~°~'~• ~~~~~~~+~~ Anchorag~ Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: August 5-August 11, 2007 Well No: NB-OS (PTD 206-097) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, AUGUST 11, 2007: Completed move to NB-O5. Nippled up and tested diverter. Hammer drilled 12 1/4 " hole with air and foam sweeps to 960 feet, at which point hammer stopped working. Water influx also becoming a problem, and elected to run 8 5/8" surface casing at this point and change over to extended bentonite mud system. Ran and cemented 24 jts 8 5/8", 24#, J-55 casing to 954 ft. Cemented with 272 sacks Cold Set III followed by 169 sacks Cold Set II. Good returns throughout job a.nd 15 bbls cement returns to surface. WOC. Drilled out F.C. and F.S. with 7 7/8" bit using rotary-mud system. Drilled ahead to 2559 ft, at which point geologists determined that well path had crossed a fault into non-prospective formation for shale gas, and elected to TD hole at this point. Ran wireline logs and gyro survey. Ran 69 jts 5 1/2", 15.5#, J-55 casing to 2550 ft. Cemented casing with 395 sacks Class I cement. Good returns throughout job, and 5 bbl cement retruns to surface. Floats held OK. WOC, and started rig down and move back to NB-04A at close of report per~od. 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 ~ Sincerely, , ~ ~% .~~ ,a '~ .._.,_. ,_. ,y. , -~____-----~--- , ~~;. R. C. Gardner For Teck Cominco Alaska Incorporated ~ Cc: Jerry Booth, Teck Cominco Alaska Incorporated. ~ ~ d a ~ o f ~ SARAH PALIN GOVERNOR , taasca7~ ~uj taisi~ ~S 333 W. 7thAVENUE, SUITE 100 1~T COl`S~R~~~~a` CD1•il•IISS''I~~ ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907j 276-7542 R.C. Gardner Sr. Technical Advisor Teck Cominco Alaska Inc. 3105 Lakeshore Drive Bldg A, Ste 101 Anchorage, AK 99517 Re: ~ploration, Wildcat, NB-05 Sundry Number: 307-255 Dear Mr. Gaxdner: 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. 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). 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, Dan T. Seamount Commissioner r~ DATED this~ day of August, 2007 Encl. a~~~ ~~~ STATE OF ALASKA U "~ ALA~ OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS ~n nnr. ~~ ~An ~~~~~VEIC~ ~~ ~3 ~~ ~_ ~ i ~3 2007 -~ ~, .;;~ ~,F~ ~~ ~a~ Gons. Cammissian 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown ^ Perforate ^ Waiver ^~ J Other ^ Alter casing [~ Repair well ~ Plug Perforations ~ Stimulate ~ Time Extension ~ Change approved program Q 1 Pull Tubing ~ PerForate New Pool ~ Re-enter Suspended Well ~ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Teck Cominco Alaska Incorporated Development ~ Exploratory ~ 206-097 ~ 3 A . ddress: Stratigraphic ~ Service ~ 6. API Number: 3105 Lakeshore Drive, Bldg A, Ste 101 Anch., AK 99517 50-073-20006-00 r 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: N/A Spacing Exception Required? Yes ^ No ^ NB-05 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): NANA Regional Corporation 979 Exploratory 12~ PRESENT WELL CONDITION SUMMARY 7otal Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth ND (ft): Plugs (measured): Junk (measured): 0 0 0 0 None None Casing Length Size MD ND Burst Collapse Structural Conductor Well Not Spudded Surface Intermediate Production Liner PerForation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): N/A N/A N/A N/A N/A Packers and SSSV Type: NiA Packers and SSSV MD (ft): N/A 13. Attachments: Description Summary of Proposal ~ ~ 14. Well Class after proposed work: Detailed Operations Program ~ BOP Sketch ~ Exploratory ~ ~ Development ~ Service ~ 15. Estimated Date for Aug. 1, 2007 16. Well Status after proposed work: Commencing Operations: Oil [] Gas 0 Plugged ~ Abandoned ~ 17. Verbal Approval: Date: WAG ~ GINJ ^ WINJ ~ WDSPL ~ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name R.C. Gardner Title Sr. Technical Advisor for Teck Cominco Alaska Signature Phone 907-258-3446 Date 27-Ju1-07 ,.~.r. ~~~ r COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ~., ~5~ Plug Integrity ~ BOP Test ~ Mechanical Integrity Test ~ Location Clearance ^ Other: ~~3~~f~ V:S~~~t~~CJ'~P~~~i6.C`~~Y~~~4~~i vl`1Ce~S C'~~`1.T~~M~~S 'i3"C ~~C.a-J aQ~O \~ ' > o ~cw~\,". Q~~':o~ s~c~°~o ~ ~ ~~ ~O'P~ o~~2c- ~c~;~v~rS ~ ~ 5 ~ '~' ~ ~ ~.v c~~ nv~s no tt ~ s~~~~~ ~ c ~- ~-~.< ~- ,.- ' y Q~o~~~ ~ Subsequent Form Required: ~,,,r~~`~ ~~ ~~~ ~~. W~\~ APPROVED BY ~` J ~ ~ Approved by: COMMISSIONER THE COMMISSION Date: ~ % Form 10-403 Revised 06l2006 ~~e3 I~~ (~U~9 ~ e~ 20~7 it i•~~~t ~ ClR1~lNAI _ _ _ ~ ~ Teck Cominco Alaska Incorporated Well No. NB-OS PTD No: 206-097 API No: 50-073-20006-00 Summary of Proposal to Change Approved Program (See Attached Transmitted Letter) ~ ~ ~ E & P SERVICES, INC. ~~~~~~~ JUL 3 ~ ~007 July 3Q, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Tom Maunder, P.E., Petroleum Engineer Atas~a ~i3 ~ ~~~ ~~r~s. ~a~mss~~os~ ~€i'ife~?'t'~ia+: Re: Application for Sundry Approvals (Form 10-403) Teck Cominco Alaska Incorporated, Red Dog Shallow Shale Gas Exploration Project. Well No. NB-O5, PTD No. 206-097. Proposal to Change Approved Program to Reflect Longer Surface Casing String, and Rotary - Mud Drilling below Surface Casing. Dear Mr. Maunder: The above referenced Application for Sundry Approvals is attached in duplicate. The NB-OS well was permitted in 2006 to be drilled entirely with air. Experience gained to date from the Red Dog Shale Gas Exploration Project has shown this approach to be ineffective due to high water influx rates, and unstable hole conditions. Three significant changes in drilling procedures have been previously proposed and approved by the AOGCC (NB-04A, and NB-03) which are directed at avoiding the problems encountered in the air drilling program used previously. 1) Only the surface hole will be drilled with air, as experience has shown ~ha~ air drilling with a downhole haminer is efficient and maintains a reasonably straight hole dovcm to a m~imum depth of approximately 1500ft under the most favorable conditions. Therefore approval is requested to extend the surface hole to a maximum of 1500ft from the 700ft maximum used previously. 2) In the event that 1500ft is not achievable by air due to high water influx rates or unstable formation, approval is requested to terminate the surface 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 ~ • 3) hole at the maximum depth below the permafrost that can be achieved with air drilling. Depending on the depth achieved, the longer surface casing string will isolate some known water influx zones that have contributed to hole problems in previous wells. 4) The hole below surface pipe will be advanced using a rotary-mud system. The drilling fluid will be a simple non-dispersed extended bentonite system which will be maintained in the 8.6-8.8 ppg range. This will provide a low hydrostatic head against the formation, and will eliminate the de-stabilizing surging effects of unloading the hole with air after each connection andlor round trip. Thank you for your consideration of this application. If you have questions, please contact the undersigned at 907-258-3446 or e-mail at bob(a~fairweather.com. Sincerely, ~ ~-~:~'~---.""--~. ~_w R.C. Gardner Sr. Technical Advisor for Teck Cominco Alaska Incorporated Attachments Cc: Jerry Booth, Teck Cominco Alaska Incorporated ~ ~ ~ Teck Cominco Alaska Incorporated Well Number NB-05 PTD No. 206-097 Revised Procedure 7/27/200'7 1. Hold pre-operations safety meeting, as per established Fairweather Procedures. 2. Move-in and rig-up Major Drilling America Schramm T130XD rig and ancillary equipment. 3. Hammer drill 18" conductor hole to 75ft. Run 13 3/g" conductor with stab-in float shoe to 75ft and cement to surface with permafrost cement. WOC, and complete MIRU of drilling equipment while WOC. 4. Nipple up diverter on 13 3/8" 3M x 13 3/8" S.O.W. diverter head. Function test diverter on single joint of drill pipe. 5. RIH with hammer and drilling assembly to bottom of conductor. Function test diverter. 6. Hammer drill 12 '/a" surface hole to 1500ft maximum depth, or if 1500ft not achievable by air drilling due to water infl~ and/or unstable formation, advance hole to maacimum depth below permafrost that is achievable by air drilling. Sample cuttings as directed by ARI geologist. Blow hole clean, and POH for surface casing. 7. Make up float shoe and float collar on 8 5/g" surface casing shoe joint. Run surface casing as directed. Rig up BJ cementers and cement surface casing as per cementing program. If cement does not circulate to surface, do top job as directed. Drain cement out of conductor/surface casing annulus to bottom of cellar. W.O.C. as directed. 8. Cut off conductor at base of cellar install 11" 3M x 8 5/g" S.O.W. diverter head on surface casing. Function test diverter on single joint of drill pipe. 9. Mix non-dispersed extended bentonite mud system as directed by on-site engineer. Maintain viscosity sufficient to clean hole, but keep mud weight in 8.6-8.8 ppg range during drilling of next hole section. Periodic additions of LCM may be necessary to control fresh water inflt~ and tendency of hole to take fluid in heavily fractured zones. 10. RIH with drilling assembly to float collar. Close diverter and pressure test casing to SOOpsi for 15 minutes. Drill out float collar, shoe joint and float shoe, and drill 7~/g" • ~ hole to 3000ft. M.D. Sample drill cuttings as directed by ARI geologist. At 3000' M.D., circulate hole clean and P.O.O.H. for logs. 11. Rig up Weatherford Precision Energy Services wire line unit. Make single attempt at open hole wireline logs. Objective is to obtain array induction, compensated sonic, compensated neutron, photo density, sonic waveform, gamma ray, caliper, and directional data in open hole section. If not successful due to deteriorating hole conditions make cleanout run and prepare to run 5%2" production casing. A cased hole logging program will be developed in the event the open hole logging run is prematurely aborted. 12. Make up float shoe and float collar on 5%2" production casing shoe joint. Run production casing as directed. Rig up BJ Services cementers and cement production casing to surface as per cementing program. If cement does not circulate to surface, do top job as directed. Drain cement slurry out of 8 5/g" x 5%2" annulus to base of cellar. W.O.C. as directed. 13. Cut off surface casing at base of cellar and recover 8 5/$" diverter head and cut off casing. Install7 1116" 3M w. lock screws x 5%2" S.O.W. tubing head and 71/16" 3M x 7 1/16" bore drilling valve. 14. Rig up Weatherford Precision Energy Services wire line unit and run cement bond log from T.D. to shoe of surface casing. If necessary to achieve zonal isolation, squeeze production casing as per supplementary program to be prepared after analysis of bond log. 15. Zones to be perforated and fraced will be selected by ARI geologists after analysis of open hole logs. Perforate selected zones and frac as per supplemental program to be prepared after analysis of open hole logs. Form 10-403 will be submitted in advance of this work. 16. Completion and testing program will be prepared following analysis of open hole logs. • ~ ~~ ~ Prmposal N~: 1001102256A Teck Cominco Alaska Incorporated NANA FEE NB OS API # 50-073-20006-0000 UNNAMED Field 18-31 N-18W Aiaska March 23, 2007 Prepared for: Mr. Bob Gardner Project Manager Fairweather E& P Services, Inc Bus Phone: (907) 258-3446 Mobile: (907) 360-3000 Well Recommendation Prepared by: Kenneth Nix District Technical Supervisor Kenai, Alaska ~ ~~'W~R~ISI~~T° t~ute a~~kt'KO * i~~t4^r••K`1'xne • f'~~~t t,~~l..~`~ Service Point: Service Representatives: Kenai, AK Rod Edwards Bus Phone: (907) 776-4084 Account Manager (907) 659-2329 Kenai, Alaska Fax: (907) 776-4087 Bus Phone: 907-349-6518 Mobile: 907-229-6536 Gr4905 ~ r • • . ~~~rator Name: Teck Cominco Alaska Incorporat ~~ Wel! Name: [VANA FEE NB 05 ~ .Job Descrtption: 13-3/8" Conductor D~te: March 23, 2007 Proposa! hlo: 1 001 1 02256A JOB AT A GLANCE Depth (ND) 75 ft Depth (MD) 75 ft Hole Size 18 in Casing Size/Weight : 13 3/8 in, 68 Ibs/ft Pump Via 13 3/8" O.D. (12.415" .I.D) 68 Cement Slurry Cold Set II Cement 107 sacks Density 14.95 ppg Yield .94 cf/sack Displacement Water 11 bbls Density 8.4 ppg Report Piinted on: Pvtarch 25, 2007 1235 AM []a~e 1 Gr4709 r STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED YUBING ~ PRODUCTION CHEMICALS a CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL • • Operator Name: Teck Cominco Alaska lncorporat .~ Wel! Narrse: NANA FEE NB 05 Job Description: 13-3/8° Conductar ,S Date: March 23, 2007 ~r~~osal N~: 1001102256A WELL DATA ANNULAR GEOMETRY ANNULAR I.D. DEPTH ft t~n) MEASURED TRUE VERTICAL 18.000 HOLE ~ 75 ~ 75 SUSPENDED PIPES Mud Density 8.50 ppg VOLUME CALCULATIONS 75 ft x 0.7914 cf/ft with 70 % excess = 100.9 cf TOTAL SLURRY VOLUME = 100.9 cf = 18 bbis Conductor Casing will be a"Stab In" for the cement job. No 13 3/8" Plug is required. Report Printed oo: Maroh 25, 2007 1235 AM pan~ ~y Gr4115 ~ M G STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS > COILEDTUBING PRODUCTION CHEMICALS o CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTFdOL . •' • Op~rator Name: °feck Cominca Alaska {ncorporat ~ ~ Well Name: NANA FEE NB 05 , Job Description: 13-3/8" Conductor Date: March 23, 2007 Prapo~ai No: 1001102256A FLUID SPECIFICATIONS VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Cement Slurry 101 /.94 = 107 sacks Cold Set II + 0.05% bwoc Static Free + 1 gals/100 sack FP-6L + 43.2% Fresh Water Displacement 11.2 bbls Water @ 8.4 ppg CEMENT PROPERTIES SLURRY NO. 1 Slurry Weight (ppg) 14.95 Slurry Yield (cf/sack) .94 Amount of Mix Water (gps) 3.64 Amount of Mix Fluid (gps) 3.64 Repori Prin[ed on: March 25. 2007 1235 AM Gr4129 Page 3 STIMULATION o CEMENTING o COMPLE710N SERVICES ~ SERVICE TOOLS e COILED TUBING PRQDUCTION CHEMICALS o CASING AND TUBING RUNNING SERVICES o PIPELINE SEF2VICES o WELL CONTROL • ' . . Qperator Name: Teck Cominco Aiaska Incorporat ~~ Wel! Name: NANA FEE NB 05 ~ Job Des~ription: 8 5l8" Surface Date; March 23, 2007 Proposal Na: 1 001 1 02256A JOB AT A GLANCE Depth (ND) Depth (MD) Hole Size Casing Size/Weight : Pump Via Spacer Fresh Water Spacer Density Lead Slurry Cold Set III Density Yield Tail Slurry Cold Set ti Density Yield Displacement Cement Displacement Density 1,500 ft 1, 500 ft 12.25 in 8 5/8 in, 24 Ibs/ft 8 5/8" O. D. (8.097" . I. D) 24 15 bbls 8.3 PP9 366 sacks 12.2 pP9 1.87 cf/sack 4Q0 sacks 14.95 ppg 0.94 cf/sack 90 bbls 8.6 PP9 Surface String will be air drilled Production String will be drilled with mud Report Pdnted on: March 25, 2007 72:36 HM P,dge G Gr4909 v STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS e COILEDTUBINC, PRODUCTION CHEMICALS o CASING AND TUBING RUNNWG SERVICES o PIPELINE SERVICES o WELL CONTROL . • ' ~ Operatar Narr~e: Teck Caminco Alaska lncorporat !~ Weli Narrie: NANA FEE NB 05 Job Description: 8 5/8" SurFace ,~' Date: March 23, 2007 I~ropc~sal No: 1001102256A WELL DATA ANNULAR GEOMETRY ANNULAR I.D. DEPTH (~n) MEASURED TRUE VERTICAL 12.415 CASING ~ 75 ~ 75 12.250 HOLE ~ 1,500 1,500 SUSPENDED PIPES Float Collar set @ 1,420 ft Est. Static Temp. 34 ° F VOLUME CALCULATIONS 75 ft x 0.4349 cf/ft 925 ft x 0.4127 cf/ft 500 ft x 0.4127 cf/ft 80 ft x 0.3576 cf/ft with 0 % excess = with 70 % excess = with 70 % excess = with 0 % excess = TOTAL SLURRY VO~UME _ 32.6 cf 649.0 cf 350.8 cf 28.6 cf (inside pipe) 1061.1 cf Su-face String will be air drilled Production string will be drilled with mud 189 bbls Report Printed on: March 25, 200T 1236 AM ~a~e ~ ~ Gr4195 STIMULATION o CEMENTING o COMPIETION SERVICES o SERVICE TOOLS e COILEDTUBING PRODUCTION CHEMICALS a CASING AND TUBtNG RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL • • , Operator Name: Teck Cominco Alaska Incorporat ~~ Weil Name: NANA FEE NB Q5 ~ Job Description: ~ 5/8" Surface ~ate: Nlarch 23, 2007 I~roposai fVo: 1 001 1 02256A FLUID SPECIFICATIONS Spacer 15.0 bbls Fresh Water Spacer @ 8.34 ppg VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Lead Slurry 682 / 1.87 = 366 sacks Cold Set III + 0.05% bwoc Static Free + 91.6% Fresh Water Tait Slurry 379 /.94 = 400 sacks Cold Set II + 0.05% bwoc Static Free + 43.3% Fresh Water Displacement 90.4 bbls Cement Displacement @ 8.6 ppg CEMENT PROPERTIES SLURRY SLURRY NO. 1 NO. 2 Slurry Weight (ppg) 12.20 14.95 Slurry Yield (cf/sack) 1.87 0.94 Amount of Mix Water (gps) 10.99 3.64 TO BE PROVIDED BY OPERATOR: Flush is to be provided by operator. Additive loadings will be tested and verified by lab work based on well conditions Repnrt Pdo4ed on: Maroh 25, 20Q7 12:36 AM Gr4129 Page 8 STIMULATION o CEMENTING o COMPLETION SERVICES e SERVtCE TOOLS o COILED TUBING PRODUCTION CHEMICAI.S o CASING AND TUBING RUNNING SERVlCES e PIPELINE SERVICES a WELL CONTROL . • ~ , Operator Name: Teck Cominco Alaska lncorporat ]~ Well Name: NANA FEE NB 05 ~ Job Description: 5 1/2" Longstring Date; March 23, 2007 IPra~posal t~o: 1001102256A JOB AT A GLANCE Depth (ND) 3,000 ft Depth (MD) 3,000 ft Hole Size 7.875 in Casing Size/Weight : 5 1/2in, 15.5 ibs/ft Pump Via 5 1/2" O.D. (4.950" .I.D) 15.5 Spacer Weighted Spacer 30 bbls Density 9.5 ppg Lead Slurry Cold Set III 135 sacks Density 12.2 pp9 Yield 1.87 cf/sack Tail Slurry Type I 296 sacks Density 14.5 ppg Yield 1.48 cf/sack Dispiacement Displacement 70 bbls Report Printed on: March 25, 2007 12:36 AM Pag~ 11 Gr4t09 STIMULATION o CEMENTING o COMPLETION SERVICES o SERV~CE TOOLS o COILED TUBING PRODUCTION CHEMICALS o CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL . • • Operator Name: Teck Cominco Alaska Incorporat !~ V-~ell Narne: NANA FEE NB 05 Job Description: 5 1/2" Longstring ~ Date. March 23, 2007 Pr~posai Noe 1 001 1 02256A WELL DATA ANNULAR GEOMETRY ANNULAR I.D. DEPTH ft (~n) MEASURED TRUE VERTICAL 8.097 CASING I 1,500 + 1,500 7.875 HOLE ( 3,000 ~ 3,000 SUSPENDED PIPES Ftoat Collar set ~ Mud Density Est. Static Temp. VOLUME CALCULATIONS 1, 300 ft x 0.1926 cf/ft 200 ft x 0.1926 cf/ft 1,500 ft x 0.1733 cf/ft 80 ft x 0.1336 cf/ft 2, 920 ft 9.00 ppg 63°F with 0 % excess = with 0 % excess = with 50 % excess = with 0 % excess = TOTAL SLURRY VOLUME _ Production string will be drilled with mud 250.4 cf 38.5 cf 389.8 cf 10.7 cf (inside pipe) 689.4 cf 123 bbls Report Printed on: March 25, 2007 12:36 AM ~arye ~ e~ Gr4N5 :d ~ STIMUTATION o CEMENTING o COMPLET~ON SERVICES o SERVICE TOOLS e COILED TUBING PRODUCTION CHEMICALS o CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL ~ • ~ ~ ~dperator Name: Teck Cominco Alaska Incorporat ~~ YVell Nart~e: NANA FEE NB 05 j J~b ~escrip#ion: 5 1/2" Langstring Date: March 23, 2007 Proposal No: 100'1102256A FLUID SPECIFICATIONS Spacer 30.0 bbls Weighted Spacer + 6 Ibs/bbl MCS-D + 31.45 Ibs/bbl Bentonite + 34 Ibs/bbi Barite - Sacked @ 9.5 ppg VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Lead Slurry 250 / 1.87 = 135 sacks Cold Set III + 0.05% bwoc Static Free + 96.8% Fresh Water Tail Slurry 439 / 1.48 = 296 sacks Type I Cement + 8% bwoc BA-90 + 0.05% bwoc Static Free + 0.5% bwoc CD-32 + 1 gals/100 sack FP-6L + 0.4% bwoc BA-10A + 62.1 % Fresh Water Displacement 69.5 bbls Displacement CEMENT PROPERTIES SLURRY SLURRY NO. 1 NO. 2 Slurry Weight (ppg) 12.20 14.50 Slurry Yield (cf/sack) 1.87 1.48 Amount of Mix Water (gps) 8.85 7.00 Amount of Mix Fluid (gps) 8.85 7.01 TO BE PROVIDED BY OPERATOR: Lease water or 2% KCL water for flush is to be provided by operator. Additive loadings will be tested and verified by lab woric based on well conditions ReportPrinted on: hfiaroh 25, 2007 12:36 APd ~'r4t29 Page 13 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVtCE TOOLS a COILED TUBING PRODUCTION CHEMICALS o CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL ~ ~ # r ~ 1~~,,..7 ., ,., . ~~<J a3 ~. ~i U i January 25, 2007 Cathy P. Foerster Commissioner Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, AK 99501-3539 . .. -~.. ~, .... _, .~_ ~~.~ .rJ .. . ~ ..:e ;.` Re: Reporting Practices, Teck Cominco Alaska Incorporated, Red Dog Shale Gas Exploration Wells, Nos. NB-Ol, (PTD 205-095); NB-02, (PTD 205-096); NB-03, (PTD 206-090); NB-04, (PTD 206-091); and NB-O5, PTD 206-097). Dear Ms. Foerster: Thank you for your letter of January 8, 2007 concerning reporting issues involving the above referenced wells. Hopefully the following paragraphs will satisfactorily address your concerns, and the attachments hereto will fill in the data gaps in Commission files. Perhaps the best way for me to respond to your concerns is to address the points that you have raised in the same order, and using the same paragraph numbers that were used in your January 8~' letter. Weekly status reports for wells Number NB-03 and NB-04 were mailed to the Commission while operations were underway on these weils, and I have attached copies for Commission files. In addition, detailed well histories in day-to-day format were included in the Completion Reports for both of these wells. I have attached copies of these histories, as well. As a point of clarification, please advise if we a.re to submit weekly status reports for the periods when there are no well site operations in progress. I have always assumed that these reports were only required when drilling, completion, or related operations were being done. If this is not the case, I owe you a lot of reports for periods when the wells were idle. In the case of wells Nos. NB-O1 and NB-02, the wells have been idle since 2005, with the exception of the minimal stimulation work discussed in Paragraph 4, below. 2. As previously reported to the Commission, the Completion Reports for NB-O1 and NB-02 were delayed due to the lack of as-built surveys being available from Red Dog. According to information conveyed from Mr. Dave Roby of your ~ffice in a recent telephone conversation, we should have submitted th~ components of the completion reports that we had, and taken our lumps over the missing surveys rather than waiting until we had the complete packages 2000 East 88th Avenue • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 1 f;r ~, •+ • ~ ~ ~ ~~~ • assembled. We have already received a Ietter from Commissioner Norman chastising us for the late reports, and I do get the message! No more delayed reports! In the case of NB-03 there was unclear communication with the Commission about what reports were required by the condition in which the well was left at the end of the 2006 season, and which was covered in my letter of January 18, 2007. 3. Wells Nos. NB-Ol and NB-02 were not produced or de-watered during the 2006 season, and since the wells were idle, no production reports were filed. Water handling facilities were designed, and installation started during the 2006 season, but no attempts were made to produce or test the wells. De-watering requires a sustained effort, and anything less serves no purpose in evalua.ting the wells. The initial dewatering efforts in 2005 were for the most part inconclusive, albeit encouraging, as the wells could not be satisfactorily de-watered to develop meaningful production evaluation data. When the wells were freeze protected and shut-in at the end of the 2005 summer season, they quickly refilled with water, and the de-watering process will have to start again from scratch. During the 2005 season dewatering operations, production reports were submitted to the Commission. When the wells were shut-in, I asked Steve Davies of your office if we needed to continue to file these reports while the wells were idle, but show zero production. I was told that we did not need to file the reports during this period, but to be sure to recommence reporting when de-watering and testing resumed. At that time I believe we anticipated that this would be in 2006. Mr. Roby indicates that there is some information in the files to this effect, and that we should have informed the Commission of our change in plans. In hindsight, I believe that he is correct, but I frankly did not recall that we had anything on file committing us to a resumption of testing in 2006. Nevertheless, I think the main issue here is that we have no production to report for 2006. 4. The requested Form 10-404 is attached. In recent months the oil and gas media has published several articles on the Red Dog shale gas exploration effort. In my view, these articles have served to "over hype" the program in the eyes of those who are not intimately acquainted with it. The articles seem to be based on information taken from various technical presentations, and from attachments to a Unit Agreement which was negotiated with DNR covering some shallow gas State leases which adjoin the NANA lands on which the current project is located. There is really no way to counter some of these misconceptions, but they do have the potential for making people believe that the program is farther along than it is. In order to better inform the Commission about the current status of the program, and our plans for the 2007 summer season, Mr. Jerry Booth, Teck Cominco Project Manager, and I would welcome an opportunity to meet with the Commissions and any of your staff that you wish to involve, and basically tell you wnere we are on this project, and to re-affirm our pledge to improve our reporting practices. We are suggesting Thursday afternoon, February 8, 2007 for this meeting, as Mr: Booth wiil be in Anchorage on that date. ~ ~ ~. < ~~~j~~ ~F i Teck Cominco Alaska Incorporated and Fairweather E& P Services, Inc. are committed to improving the communication between our companies and the AOGCC, and to eliminating any future shortfalls in proving your agency with the information you require in a timely manner. We believe that the suggested face-to-face meeting would be beneficial to these objectives, and to clearing up any misconceptions the Commission may have about progress that the Red Dog exploration program has made in evaluating this unconventional source of energy for the Red Dog Mine, and perhaps the surrounding area. Sincerely, r~ ~~ ' • , `~ : ..c-~'~~ -- R.~C. Gardner For Teck Cominco Alaska Incorporated Attachments Cc: Dave Roby, AOGCC Jerry Booth, Teck Cominco Alaska Incorporated i ~ t=~ ~ - ;,.:,, ,.~ u.. _ 7 `°a g ~_. 1 j :.1 j r ; t 3 ~.+~ ~::'~ _, __,~ w~ _.~.t .~~.~ ..,.~ ,:~ .-. ~~><i ~ '3 . , ,~. ~. , ~ ,~ .. ALA-SFi1~ oui ~11TD G~S C011TSERQAZ'IO1~T COrIIrIISSI01`T ~ SARAH PAL/N, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE,ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 January 8, 2007 Mr. Robert Gardner Sr. Technical Advisor for Teck Cominco Alaska Incorporated 3105 Lakeshore Dr., Bldg. A, Ste. 101 Anchorage, AK 99517 Subject: Shortfalls in Reporting Practices Related to Exploratory Sha1e Gas Wells NB-O1 (PTD 205-095) NB-02 (PTD 205-096) NB-03 (PTD 206-090) NB-04 (PTD 206-091) NB-OS (PTD 206-097) Dear Mr. Gardner: The Alaska Oil and Gas Conservation Commission ("Commission") wishes to bring to your attention that, to date, Teck Cominco Alaska Incorporated ("Teck Cominco") has either failed to comply with Commission reporting requirements or been seriously late in providing reports related to this exploratory shale gas program. 1) The Commission issued a drilling permit for each of the five wells in this project, and each of those permits requires a weekly sta.tus report for the well from spud until suspension or plugging and abandonment. These reports were submitted for wells NB-Ol and NB-02 during the 2005 drilling season, but no weekly status reports were submitted for activities during 2006. Please provide the missing weekly reports or a summary of that information to the Commission no later than ctose of business Friday, February 2, 2007. 2) Records indicate that wells NB-Ol and NB-02 were completed on September 10, 2005. Commission regulation 20 AAC 25.070(3) requires submittal of a completion report and logs within 30 days of the completion of a well, but Teck Cominco was over 5 months late submitting this information to the Commission. A similar but shorter delay was experienced with well NB-03. 3) It is presumed, but cannot be confirmed due to the lack of weekly status reports, that attempts to produce the NB-O1 and NB-02 wells resumed as planned this j ~ ~ ~ Mr. Robert Gardner January 8, 2007 Page 2 of 2 year. As required by 20 AAC 25.230 the Commission should have received monthly production reports, presuming an attempt was made to produce the weti(s), but has not received reports since the September 2005 production was reported. A November 8, 2006, email from you to Mr. Tom Maunder with the Commission indicated that the wells were currently shut-in but did not indicate the status of the wells over the summer months. If there was production from either of these wells, please provide the production reports to the Commission no later than close of business Friday, Fe6ruary 2, 2007. 4) On August 28, 2006, the Commission approved Sundry Application 306-292, allowing perforation and stimulation of additional zones within well NB-O1. The application indicated that operations were imminent, but the Commission has not received the required Form 10-404 or any other documents to indicate whether or not these operations ha.ve occurred. Please provide the Form 10-404 (or a status report if the workover operations were not completed) to the Commission no later than close of business Friday, February 2, 2007. Proper and timely reporting is required by Commission regulations. If reporting practices do not comply, the Commission will consider taking enforcement action in accordance with 20 AAC 25.535. If you have any questions on this matter please contact Mr. Dave Roby of the Commission's staffat (907) 793-1232. Sincerely, < < ,~' ~ i~`~'~''~~~ -''`.--a/ Cathy ~ Foerster Commissioner ~ ~ ~~ ~ ~ f~ (~ (~ ' (~ ~ FRANPC H. MURKOWSKI, GOVERNOR '~ 1` ~ ~ ~~,1 O ~~ U 1..1 ~ ~.~' ~~' u 55~ Cordova Street ' Anchorage, AK 99501 DEPT. OF ENVI120N1VIENTAL CONSEI2VA~I01\1 PHONE: (907} 269-3072 DIti'ISION OF SPILL PREVENTION ANI) RESPONS~, FAX: (907) 269-7687 1~1DUSTRY PREPAREDNESS PROGRAI~1 htt~:Uwww_.dec.state.ak,us ._: I _. EXPLORATION PRODUCTION & REFIivERIES -~ ~1'~ ~~ t ~~ ~- t~~i~ ~ 2, ~, ~ ~ ~-- r~ ~- ~~~ ~ ~,~ ~ ~~`C~,~ ;~~-~~~ ~ ~~"C~~-l. ~~~-b~.~ NTr. Robert Gardner T'^"-f" T~~` l a~i vJ:.dth:.r u;'~'.~' J':',~`...."3, ~i..,. 2000 East 88`" Avenue Anchora~e, AK 99507 ~~~~~~ ~ „ _ .., November 17, 2006 ' " - ~ File No: 305.0~ Red Dog Shallow Gas Subject: Exemption from Oil Discharge Prevention and Contingeracy Plan Requirement for Red Dog Shallow Gas Exploration Drilling Program, DeLong Mountains, Aiaska Dear Mr. Gardner: The alaska Department of Environmental Conservation (ADEC} has received a determination from the Alaska Oil and Gas Conservation Commission (AOGCC) regarding your request for an exempiion from tne vii i~iscnarge rrevention and i onLingency rian ~vi~rCr) and rinanciai Responsibility (FR) requirements. The exemption was requested for the Red Dog Shallow Gas Exploration Drilling Program ("Red Dog Program"} conducted in the DeLong Mountains of northwestern Alaska. AOGCC made its determination based on geologic information submitted by Fairweather and a revt~w of r~OGCC w~ll fil~s. Th~ R~~ T~o~ Pro~ram ic 1n~atPrl in cPrtipnc 17 an~l t R nf T'21 N, '? _"•~~', ~~:t;,,~':.?':~~~.'~.~?;,r?~i~r, :c ±he DeLorg ~Trn.~.nr.air.s. ']~he ~ro~ram consists of ~ shallow we11s (all less than 4,000' below ground level) on N~NA Corporation lands approximately 1.5 miles north of the Red Dog i~line. Sixty mineral exploration holes have been drilled into the Kuna formation, the target of the Red Dog Program. Four shallow gas wells have 'oeen drilled ~vithin the project area. Fairweather has reported that no si~nificant hydrocarbons other than methane were encountered in any of these mineral or ~as exploration holes. AOGCC staff concurs that no liquid hydrocarbons or hydrocarbon ~ases other than methane were encountered based on a careful review of drilling records from the shallo~v gas exploration holes. On October 6, 2006, ~OGCC determined that exploration wells drilled to less than 4,000' depth ~,~~ithin the Red Dog Shallow Gas Exploration Driliin~ Pro~ram area are highly unlikely to encounter formations bearina tiquid hydrocarbons or hydrocarbon ~ases other than methane. ~~ ~~ t~f;n~e~ oe ,<~_,- ~ _ Mr. Robert Gardner Fairw~eather • ~ November 1?, 2006 ~ased upoa~ AOGCC's ~v~luation ancl deterrninatiorn, ~IDE~ i~erebv fimsls that a w~tl cirilied within the I~ed Dog Shallow ~as Exploration I)riliing Program to depths less than ~,000' will not ~ncounter liquid hydrocarbons and therefore rneets the standartis for ~xemption as a natural gas ~xploration facility u~der AS 46.0~.0~0(c) and is ~xempt frorn ~DPCP and ~It r~quir~~ents f~uncl ~n r1S ~6.040.030 and ~S ~6.040.440, Be advi~ed that should Fair~,veather/Teck Cominco penetrate a Formation capable of flowing oil to the ground surface durin~ the drilling of this well, operations must immediately be suspended and ADEC must be immediately notified. You must obtain ODPCP and FR approval by ADEC prior to proceedin~. This exemption does not relieve Fairweather/Teck Cominco of the responsibility for securinj other federal, state or local approvals or permits. You are still required to comply with all other applicable laws. ~PP~AL: This is a Final decision. Aganeved persons with standin~ may appzal this decision to the AlaS~a Superior Court within 30 days as provided by the ~laska Rules of ~ppellate Procedure. If vou have any questions, pl~as~ contact me at 269-7680. Sincerelv. _ ~ ~~~f1•~- Ly ia Nliner Section Nlana~er cc: Betty Scho~-r, IPP Nianager, ADEC Daniel Seamount, AOGCC Chns Pace, ~DEC, Juneau Walter Porter, Northwest ?.retic Borough Planning Director ~ ,r ~ ~ ~~~ ~~~- ~ ~~ ~.3 ~~ , ~ ~~ ~ ~ ~ ~ ~~ 1 ~ ~ ~ ~ ~ y , ~ ~~, ~~~ ~ ~ ~ ~ ~ ~~ i 1 ~„~ ~~, ~~ ~ ~ -~~,f ~ ~ ~~~~,~,~a ~ <~,,t ~ ~ ~ !~y ~ ~~ ~ ~ ~ ~ ~ ~~ '~~3 a r'~ ~ ~ , j % ,' FRANK H. MURKOWSKI, GOVERNOR ~ ~~ 0~ ~~0-.7 ~ 333 W. 7T" AVENUE, SUITE 100 C011TSERQATIOI~T COrII~IISSIOI~T 3~/ ANCHORAGE, ALASKA 99501-3539 ~ PHONE (907) 279-1433 FAX (907) 276-7542 R.C. Gardner Sr. Technical Advisor Teck Cominco Alaska Incorporated 3105 Lakeshore Dr. Bldg A, Ste 101 Anchorage, AK 99517 Re: Exploratory Well NB-05 Teck Cominco Alaska Incorporated Permit No: 206-097 Surface Location: 35' FEL, 1110' FSL, SEC. 18, T31 N, R 18W, KRM Bottomhole Location: 35' FEL, 1110' FSL, SEC. 18, T31N, R18W, KRM Dear Mr. Gardner: Enclosed is the approved application for permit to drill the above referenced exploration well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from 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. In the application, reference is made to the waiver of four Commission requirements granted for the NB-Ol and NB-02 wells drilled in 2005. The waivers are applicable for NB-05. 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. The permit is approved subject to full compliance with 20 AAC 25.055. Approval to perforate, test and produce is contingent upon issuance of a conservation order approving a spacing exception. Teck Cominco Alaska Inc. assumes the liability of any protest to the spacing exception that may occur. Please note the following special condition of this permit: production or production testing of coal bed methane is not allowed for NB-05. .~ ~ ~ ~ Teck Cominco NB-OS Permit No: 206-097 Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. 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). DATED this~ day of July, 2006 cc: Department of Fish 8v Game, Habitat Section w/ o encl. Department of Environmental Conservation w/o encl. ~ E & P SERVICES, INC. June 14, 2006 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 200 Anchorage, AK 99501 Attention: John Norman, Chairman • ~~~~~~~~ JUN 2 9 2006 Ataska Oi18~ ~as Cons. Comrt~ission Anchorage ~... . Re: Application for Permit to Drill: Teck Cominco Alaska Incorporated, Red Dog Shale Gas Exploration Well No. NB-OS Gentlemen: Teck Cominco Alaska Incorporated (Teck Cominco) submits herewith the above referenced Application for Permit to Drill (APD) in duplicate, and the requisite filing fee. Well No. NB-QS is the fifth well in a five-spot pattern of exploration wells which will test the potential of the Kivalina formation to produce natural gas. If commerciality can be demonstrated, the ultimate objective will be to develop this resource as fuel for power generation at the Red Dog mine. The first two wells in the five-spot pattern (wells No. NB-O1 and NB-02) were drilled in 2005 without incident. It is proposed that Well No. NB-OS adhere to the same basic drilling program that was used in the previous wells. Air will be used as the circulating medium, and a downhole hammer will be utilized. The attached drilling program requires the following waivers from the AOGCC: AAC 25.033(b) - requiring drilling fluid of sufficient density for over-balance AAC 25.035 - blowout prevention equipment requirements AAC 25.061(a) - Requiring seismic surveys of near surface strata. 2000 East 88th Avenue • Anchorage, Alaska 99507 •(907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 •(281) 445-5711 • FAX (281) 445-3388 • ~ When APD's were submitted for well No. NB-01 and NB-02 in 2005, AOGCC staff requested clarifications on a number of issues relating to our proposed drilling approach, and the waivers of certain regulations that were requested. Since Well NB-OS is identical to the previous wells in geometry and drilling procedures, it is hoped that our responses to the questions submitted by Commission staff last year will prove adequate to support the current APD. A copy of our responses (letter to Mr. Tom Maunder,.P.E., dated July 5, 2005) is also attached. Well NB-OS will require a spacing exemption due to the proximity of all other wells within the five-spot pattern. The rational for the requested exemption is enclosed with the submitted documents. Thank you for your consideration of this application. If you have questions, please contact the undersigned at (907) 258-3446, or by email at bob@fairweather.com. Since , ~~ ' ~~._ R . Gardner Sr. Technical Advisor for Teck Cominco Alaska Incorporated Enclosures STATE OF ALASKA ~~~ ALA OIL AND GAS CONSERVATION COM ION PERMIT TO DRILL 20 AAC 25.005 ~~~~f~C~ JUN 2 9 2006 A{aska Oif & Gaa Cons. Cornmi~~i~4~ Anrhnr~no 1a. Type of Work: Drill Q Redrill ~ Re-entry ~ 1b. Current Well Class: Exploratory Q. Development Oil ~ Stratigraphic Test ~ Service ~ Development Gas ~ Multiple Zone ~ Single Zone ~ 1c. Specify if well is proposed for: Coalbed Methane ~ Gas Hydrates ~ Shale Gas ^~ " 2. Operator Name: Teck Cominco Alaska Incorporated 5. Bond: Blanket 0: Single Well ~ Bond No. 6218218 11. Well Name and Number: NB-05 3. Address: 3105 Lakeshore Dr,BIdgA,Ste101 Anch.,AK 99517 6. Proposed Depth: MD: 3000ft ' TVD: 3000ft 12. Field/Pool(s): Exploratory 4a. Location of Well (Governmental Section): Surface: 35ft.WEL,1110ft.NSL.Sec18,T.31N;R.18W;KRM 7. Property Designation: NANA Regional Corporation Top of Productive Horizon: As Above 8. Land Use Permit: NANA A reement 13. Approximate Spud Date: Total Depth: As Above 9. Acres in Property: 66000 14. Distance to Nearest Properry: 5245 ft • 4b. Location of Well (State Base Plane Coordinates): Surface: x- 583287 ' y- 5,148,312 ' Zor 7 10. KB Elevation (Height above GL): 979 feet 15. Distance to Nearest Well Within Pool: 1832 ft ' 16. Deviated wells: Kickoff depth: N/A feet Maximum Hole Angle: N/A degrees 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Downhole: 560 Surface: 110 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD ND (including stage data) 18" • • 13 3/8 61# J-55 ST&C 75' Surface SurFace 75' • 75' 25 sx Permafrost 12 1/4" ' . 8 5/8 24# J-55 ST&C 700' SurFace Surface 700' ~ 700' 493 sx Permafrost 7 7/8" ~ • 5 1/2 15.5# K-55 LT&C 3000' SurFace Surface 3000' • 3000' 178 sx Permafrost plus 305 sx Type 1 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry O perations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD ND Cond u ctor/Stru ctu ra I Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Filing Fee ~ BOP Sketch Q Drilling Program ~ Time v. Depth Plot ~ Shallow Hazard Analysis ~ Property Plat Q Diverter Sketch ^~ Seabed Report ~ Drilling Fluid Program ^ 20 AAC 25.050 requirements ^ 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Printed Name .C. ner Title Sr. Technical Advisor Signature~ Phone (907) 258-3446 Date 26-Jun-06 ~ ~ Commission Use Only Permit to Drill Number: Z(>~' ~~ API Number: 50- ~~3 "ZL~~ ~ Gb Permit Approval Date: ~ ' O~ See cover letter for other requirements. Conditions of approval : If box checked, well may not be used to explore for, test, or produce coalbed methane, gas hydrates, or gas contained in shales: ^ Other: ~ y~ O~'!1 ~,~[p~p y~_ - l Samples req'd: Yes^ No[~ Mud log req'd: Yes~ No[]~ r ~0~~ o ~~ ~G~,~ ~~~~ HZS measures: Yes^ No[/]~ Directional gry req'd: Yes^ No[/~ ~,~"/~ U/ ~`''~ j~c' 2r~c./tvt4~te-tic.5 dc~ r~ ui.-e1 nG.Lg.p~ t.t..~ ~~~'.~,tk..f.l~.-~ . ~ ~/ ! ~o- ~ ~ ~.J U /iy L APPROVED BY THE COMMISSION DATE: ~6 ~ D , COMMISSIONER Form 10-401 Revised 12/2005 /"'~ n~ r1 ~~{~~ ~'~ ~ Submit in Duplicate ~~ K t~ I ~ ,~ ~ ~~.~ .~! ~/3`06 ~ ^ ~ ~ Red Dog Shallow Shale Gas Project Background and Operations Summary Teck Cominco Alaska Incorporated (Teck Cominco) plans to drill three (3) additional shallow shale gas explora.tion wells (wells No. NB-03, NB-04 and NB-OS)rin the North Basin area, north of the Red Dog zinc mine in northwestern Alaska duri.ng the 2006 summer season. These wells will complete a five spot pattern of wells designed to evaluate the potential for natural gas production from the organic-rich shales of the Kivalina formation.' The concept of de-sorbing natural gas from the formation was developed by Advanced Resources International, under contract to Teck Cominco, following extensive analyses of Kivalina cores taken from numerous mineral exploration borings across the North Basin area. If commercial gas production can be established, the environmenta.l and economic benefits gained through the development of the resources would be significant, as Red Dog mine operations currently consume approximately 18,000,000 gallons of diesel fuel annually. The first phase of this exploration project was accomplished in 2005 with the drilling and completion of the first two (2) wells in the five-spot pattern (wells No. NB-O1 and NB- 02). These wells demonstrated encouraging, but inconsistent results, as dewatering operations were pre-maturely suspended due to the on-set of winter conditions. Teck Cominco had elected to complete the five-spot pattern in 2006, and provisions have been made to continuously dewater and flow test all five wells simultaneously through the . winter 2006-2007 season. It is believed that this extended test period will adequa.tely evaluate the feasibility of the desorbtion process. The attached map shows the locations of the wells in the five-spot pattern. r I a` Section 18 T 31N R18 W Section 17 T31N R18W N B-04 NB-01 2005 Existing GasEx Roads Dog _ Roads 500 0 500 1000 1500 2000 Feet NB-05 ~~~ NB-03 NB-04 NB-05 Alaska State Plane Easting 584,985 584,455 583,287 ~ NA027, Ak Zone 7 Northing 5,149,029 5,150,954 5,148,312 , LaUlong W Longffude 162.84135 762.84543 162.85370 Decimal Degrees N Latitude 68.08378 68.089U2 68,08176 UTM Easting 589,804 589,714 589,388 1927 UTM Zone 3 Northing 7,553,594 7,554,172 7,553,351 2006 Planned GasEx Roads N NB-03 ~~~~~vEo ,1UN 2 9 Z006 A~~ska C~~1 & ~aa C,~.'~r A~c~ara~ ~ NB-03 1,655 feet East of West Line Sect 17 1,85b feet Nortfi of South Line NB-04 1,100 feet E~t of West Line Sect 97 3,770 feet North of South Line NB-05 35 feet West of East Line = Sect 18 1,110 feet Nartlt of South Line . TeckCominco Red Dog Mine Shale Gas Project Planned 2006 Welt Locations Data: 14 Apr(I 3006 By: KTurner ~ u ~ Red Dog Shallow Gas Exploration Project: Hole Geometry ~fll~~~fll~~~ ~'ell No: NB - OS 13 3/8" 61# K-55 conductor installed @ 75' MD 12 1/4" Hole Base of Permafrost @ 640' MD 8 5/8" 24# K-55 Surface Casing @ 700' MD ~ ^ Cement Perforated Intervals to be determined from open-hole logs. ~- 7 7/8" Hole NOTE: Exact depths and set ~~,,, points to be determined when '`~ ~ ~s • ' S%z", 15.5# J-55 Production Casing @ drilled and casing talliecG °~,, 3000' MD & TVD • Fairweather E&P Services, Inc. Rev. 1.0 6/19/2006 Drawing Not To Scale bjb Section 18 Section 17 T31 N R18W T31 N R18W NB - O1 NB-04 ~ ~ NB - 02 ~ Lat: 68.08176 N Long: 162.85370 W NB-03 ASP Nad 27 Zone 7 ~ X = 583,287 Y = 5,148,312 Elev. = 974 ft. N B-~5 ~ ~ ~~. ~ ~ 0 ~ ~ ~ TeckCominco Red Dog Mine Sha/e Gas Project Planned Location N Well No. NB-05 0 500 1,000 1,500 2,000 Feet ~ ~ Teck Cominco Alaska Incorporated Summary Drilling Program Exploration Well No. NB-05 Surface Location: 35ft. WEL, 1110ft. NSL, Sec. 18, T.31N., R. 18W., KRM • x= 583,287ft., y= 5,148,312ft ASPC Zone 7• Synopsis: This well will be drilled to a total measured depth of 3000ft. to test selected zones in the Kivalina formation for natural gas. The well is programmed as straight hole. The drilling contractor is Major Drilling America, Inc, of Salt Lake City, Utah. A Schramm T130XD rig will be used on this well. Drilling Fluid: This well will be drilled with air using a downhole hammer. Drilling Hazards: No abnormal pressures or other drilling hazards are anticipated. Wells No. NB-O1 and NB-02, drilled in 2005, and located 2765ft northwest, and 1832ft northeast respectively, penetrated the same Kivalina formation interval that will be encountered in the NB-OS well. The wells were drilled without incident, and the same drilling procedures as are proposed for the NB-OS well were employed. Completion reports and logs for the NB-O1 and NB-02 wells are on file with AOGCC. Casing Program: Conductor: A 13 3/8" conductor will be pre-set at 75' in an 18" hole before the start of drilling. The conductor will be cemented to the surface. Surface Casing: Hole size -12 '/4"; Casing - 8 5/8" 24# J-55, ST+C; Depth - 700' (Base of permafrost @~ 640' MD); Collapse: 1370psi; Burst: 2950psi Cement: 493sx Coldset II Production Casing: Hole size - 7 7/8"; Casing 5%2", 15.5#, K-55, LT+C; Depth 3000' to surface; Collapse: 4040psi; Burst 4810psi; Cement: Lead -178sx Coldset III, Tail - 305sx Type I Cementing Program: See Attached ! ~- Well Control: Since this well is being drilled with air, a Washington Series 2000 Rotating Control Head (Diverter) will be used from surface to TD. See attached data sheet. Shallow Gas: Shallow gas as considered in 20AAC 25.061 (a) is not a factor in this well, as evidenced by numerous core hole penetrations in the North Basin drilled as part of an extensive mineral exploration program in the area, and by the drilling of Wells No. NB-O1 and NB-02. The North Basin is not a typical petroleum province, in that the Kivalina formation overlies a mineralized zone. The gas that is the target of the well is absorbed within a dense shale body of extremely low porosity and permeability and will at a minimum require extensive hydraulic fracturing to liberate. Drill Cuttings and Water Dispasal: Waste water from drilling operations, fracturing, and production testing will be disposed of in the Red Dog Mine tailings pond. Approval for this disposal was granted by the EPA by letter dated October 27, 2004. Since this well will be drilled with air, and no drilling mud is involved, drill cuttings are basically uncontaminated rock fragments. This material will be trucked to the Red Dog solid waste disposal site. .+....vu ..".. ~w.....u.as vvii~ivi 11VCLUJ ~ 1 V~.J L11VG lt1~J~ ~ ~ ~t. ,:~ ~.~TS~~~S~~.$~~~~ :~"~~3~~~~~~ :.~ ~~~~~~~ ~~~~~ ~~~~s ~~~ - k1,7"i.'~9 tt ra;~3 ~`` R°st7t+} ~ ~`P~ ~~, ~~fi ;},~.p.rtt:r3 ~~ S F~:Sf sii CRa.. 79~. ~'-~:a~"1f~11$+ iSf ;+?,w. ~f~CK T~ PRODUCTS Page 1 of 1 ~ SERIES 2000 ROTATING CONTROL HEADS (Top Drive Rigs) The Washington Series 2000 is a low profile rotating control head designed for "top-drive rigs" or "work-over rigs." ~ The frictional engagement betweer the drill string and stripper rubber rotates the control head with the drill string, sealing off the well bor~ ~~~ continuously, while diverting all I cuttings and debris. This unit is designed to be used with our Part #2010 Stripper Rubbers, and can seal off from 2" to 5" drill steel. Whether you are drilling gas, oil, o geothermal wells, Washington Rotating can accommodate all you diverter needs. Calt or send us your inquiry for pricing. NON-ROTATING CONTROL HEApS Rt)TATING C~NTROL HEADS BOWL SIZE FLANGE HEI HT BODY BORE S~E FLANGE HEIGHT BOR~ S p E 7-1/16" 6"- 900 17-3/4" 7-1/16" 7-1/16" 6"- 900 26" 7-1/16" E 5-5/8" 8" 8"_ 400 17-1J2" 8„ C~ g" - 400 25-3/4" ~~ 5-5/8" 11° 10"- 400 17-1/2" 11-1/8" 11" 10" - 400 Z3.-1/2" 11-1/8" 5-5/8" 11" 10"- 900 15-1/2" il-1/8" 11" 10" - 900 23/3/4" 11-1/8" 5-5/8" ----- ----- ~"' ~C~ 14~~ 12" - 900 22" 14" 5-5/8" {AlE CAR! F1ARiUF~.CTURE AIVY SIZE BOWL TO h9EET YR(1R SPECIFIC NEEDS [ OME] [ABOUT US] [OUR PRODUCTS] [~QNTACTING US] [SEND US YOUR tNQUIRY] [ NTS] http://www.washingtonrotating.com/ZOOO.html 4/25/2005 I: 1] ~~2 s~ I+ 9~ 5~'G' -I i ~ ~ ~ ~ ~ ~ ProposallVo: 179551246C Teck Cominco Alaska lncorporat Narth Basin No. 5 De Long Mts County, Alaska March 15, 2006 Well Recommendation Prepared for: Bob Gardner Project Manager Fairweather E 8~ P Services, Inc. Pr~eparoed by: Dave Susko Region Engineer Bakersfield, Califomia Bus Phone: 661-396-4446 Mobile: 661-201-0873 POW~RVISIC~N~' PUW ~R~R4 • f~OW ~it'~'tiAk • ~OWER~..i ~V K Service Point: Service Representatives: Kenai, AK Rod Edwards Bus Phune: (90~ 776-4084 Account Manager (90~ 659-2329 Kenai, Alaska Fax: (90~ 776-4087 Bus Phone: 907-349-6518 Mobile: 907-229-6536 a<,o~ ~ Operator N~rree: Teck Cominco 1~ Incorporat ~ , Weil Plame: hlorth Basin No. 5 ~ Job Description: iurface Casing ,~ Date: March 15, 2006 Propc~sal Rla: 179551246C ~ JOB AT A GLANCE Depth (TVD) 700 ft Depth (MD) 700 ft Hole Size 12.25 in Casing SizeMleight : 8 5/8in, 24 Ibs/ft Pump Via 8 5/8" O.D. (8.097" .I.D) 24 Total Mix Water Required 2,035 gals Spacer Fresh Water Spacer 15 bbis Density 8.3 ppg Cement Slurry CS 11 493 sacks Density 15.0 pp9 Yield 1.02 cf/sack Displacement Displacement 39 bbis Density g,6 pp9 Report Printed on: March 1 S. 20061:48 PM Page 1 Q4108 Operator Narne: Teck Cominco ,~ Incorporat Wel! Plame: f~orth Basin No, 5 ~~ ! Job Descrip#ion: Surface Gasing ~ ~ Date: March 15, 2006 Proposal Mom 1 7955 1 246C - WELL DATA ANNULAR GEOMETRY ANNULAR 1.0. E T f~) MEA3URED TRUE VERTIGAL 12.615 CASING ~ 12.250 HOLE 75 ~ 700 75 700 SUSPENDED PIPES DtAMETER in WEIGHT DEP TH ft O.D. l.Q. (Ibslftj MEASURED TRUE VER'FIGAL 8.625 8.097 24 700 700 Float Collar set ~ 620 ft Mud Density 8.60 ppg Mud Type Water Based Est. Static Temp. 32 ° F Es~ Cir+c. Temp. 40 ° F VOLUME CALCULATlONS 75 ft x 0.4622 cf/ft 625 ft x 0.4127 cf/ft 80 ft x 0.3576 cf/ft with 0 % excess = WitFl TO % eXCeSS = with 0 % excess = TOTAL SLURRY VOLUME _ 34.7 cf 438.5 ef 28.6 cf (inside pipe) 501.8 cf 89 bbls Repwt P~ntedan: March 15, 2QQ61:46 PG1 page 2 Q4115 ~ Ofperator Name: Teck Cominco t~a Incorporat °~ ~ Well Name: North Basin No. 5 ,•~ Job Description: Surface Gasing Date: March 15, 2006 Proposal No; 179551246C FLUtD SPECIFICATIONS Spacer 15.0 bbls Fresh Water Spacer c~ $.34 ppg VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Cement Slurry 502 / 1.0 = 493 sacks Cold Set II Displacement 39.5 bbls Displacement @ 8.6 ppg CEMENT PROPERTIES SLURRY N0.1 Slurry Weight (pp9) 14.95 Slurry Yield (cf/sack) 1.02 Amount of Mix Water (gps) 4.13 1. Slurry perFormance to be confirmed through pilot blend testing at PRTC, Slight additive adjustmenis may be necessary. Report Pr'sited an: March 15, 2W8 7:46 PM . ~,~1~9 Page 3 . Operator Name: Teek Corriinco t~ Incorporat ; M ! Weil Name: North Basin No. 5 ~ Job Descriptioo~: Production Casing ~ Date: March 15, 2006 Proposal No: 179551246C . JOB AT A GLANCE Depth (TVD) 3,000 ft Depi~ (MD) 3,000 ft Hole Size 7.875 in Casing SizelWeight : 51/2in, 15.5 Ibs/ft Pump ~a 5 1/2" O.D. (4.950" .I.D) 15.5 Total Mix Water Required 3,701 gals Spacer MCS-4D Spacer 30 bbis Density 9.5 ppg 1st Lead Slurry Lead Cement 178 sacks Density 12.2 ppg Yield 1,64 cf/sack 1st Tail Slurry ~' Tail Cement ~ `sa~ Density 14.5 Y~~ f .48 cf/sack ~~.. Displacement Displacement 70 bbis Report Pra~ted on: Mareh 15, 20Q61:46 P69 Page 6 ~" 09 t~perator Name: Teck Cominco ,~ Incorparat ~~ Wel1 Name: North Basin No. 5 ~~ Jab Description: Production Casing ~ Date: March 15, 2Q06 Proposa! No: 179551246C ~ ~~~ WELL DATA SUSPENDED PIPES Float Collar set ~ 2,920 ft Mud Density 9.00 ppg Mud Type Water Based Est. Static Temp. 63 ° ~ Est. Circ. Temp. 50 ° F VOLUME CALCULATIONS ~00 ft x 0.1926 cf/ft 600 ft x 0.1733 cf/ft 1,700 ft x 0.1733 cf/ft 80 ft x 0.1336 cf/ft with 0 % exeess = with 50 % excess = with 50 % excess = with 0 % excess = TOTAL SLURRY VOLUME _ 134.8 cf 155.9 cf 441.8 cf 10.7 cf (inside pipe) 7432 cf 132 bbls Report A~ted on: March 15. 2006 9:46 PM Page 7 . .. °", 5 ANNULAR GEOMETRY ~ ~perator Name: Teck Cominco ~~ Incorporat ~~ i 1N~f1 Nam~: North ~asin PVo. 5 ~ Job Descriptian: Productior~ Casing ~ Date: March 15, 2006 Proposal No: 17955124SC FLUID SPECIFICATIONS Spacer 30.0 bbls MCS-4D Spacer + 7 Ibs/bbl MCS-D + 31 Ibs/bbl Bentonite + 34 Ibs/bbl Barite - Sacked ~ 9.5 ppg VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT 1st Lead Slurry 291 / 1.6 = 178 sacks Cold Set III 1 st Tail Slurry 452 / 1.4 = 305 sacks Type 1 Cement + 8% bwoc BA-90 + 0.05% bwoc Stafic Free + 0.4% bwoc BA 10 + 0.5% bwoc CD-32 + 1 gals/100 sack FP-6L + 62.1 % Fresh Water Displacement 69.5 bbls Displacement CEMENT PROPERTIES SLURRY SLURRY N0.1 NO. 2 Slu~ry Weight (ppg) 12.20 14.50 Slurry Yield (cf/sack) 1.64 1.48 Amount of Mix Water (gps) 8.80 7.00 Amount of Mix Fluid (gps) 8.80 7.Q1 1. Slurry performance to be confirmed through pilot blend testing at PRTC. Sfight additive adjustmenls may be necessaty. fteFwrt Rinted an: Ma~A 15. 2(1~61:48 PFA L}4129 Page 8 .1 ~ ~ ~ Well Number NB-05 Procedure 1. Hold pre-operations safety meeting, as per established Fairweather Procedures. 2. Move-in and rig-up Major Drilling America Schramm T130XD rig and ancillary equipment. 3. Nipple up diverter on 13 3/g" 3M x 13 3/8" S.O.W. diverter head. Function test diverter on single joint of drill pipe. 4. RIH with hammer and drilling assembly to bottom of conductor. Function test diverter. 5. Hammer drill 12 '/4" hole to 700' M.D. Sample cuttings as directed by ARI geologist. At 700ft M.D. blow hole clean and P.O.O.H. for surface casing. 6. Make up float shoe and float collar on 8 5/g" surface casing shoe joint. Run surface casing as directed. Rig up BJ cementers and cement surface casing as per cementing program. If cement does not circulate to surface, do top job as directed. Drain cement out of conductor/surface casing annulus to bottom of cellar. W.O.C. as directed. 7. Cut off conductor at base of cellar install 11" 3M x 8 5/8" S.O.W. diverter head on surface casing. Function test diverter on single joint of drill pipe. 8. RIH with hammer and drilling assembly to float collar. Close diverter and pressure test casing to SOOpsi for 15 minutes. Drill out float collar, shoe joint and float shoe, and dri117 ~/8" hole to 3000ft. M.D. Sample drill cuttings as directed by ARI geologist. At 3000' M.D., blow hole clean and P.O.O.H. for logs. 9. Rig up Weatherford Precision Energy Services wire line unit and run array induction, compensated sonic, compensated neutron, photo density, sonic waveform, gamma ray, caliper and directional survey as directed. 10. Make up float shoe and float collar on 5%z" production casing shoe joint. Run production casing as directed. Rig up BJ cementers and cement production casing to surface as per cementing program. Drain cement slurry out of 8 5/8" x 5%2" annulus to base of cellar. W.O.C. as directed. ~ ~ 11. Cut off surface casing at base of cellar and recover 8 5/8" diverter head and cut off casing. Insta117 1/16" 3M w. lock screws x 5%z" S.O.W. tubing head and 7 1/16" 3M x 7 1/16" bore drilling valve. 12. Rig up Weatherford Precision Energy Services wire line unit and run cement bond log from T.D. to 700" M.D. If necessary to achieve zonal isolation, squeeze production casing as per supplementary program to be prepared after analysis of bond log. 13. Zones to be perforated and fraced will be selected by ARI geologists after analysis of open hole logs. Perforate selected zones and frac as per supplemental program to be prepared after analysis of open hole logs. Form 10-403 will be submitted in advance of this work. 14. Completion and testing program will be prepared following analysis of open hole logs. ~ ~ Subject: Notice of Recusal From: John Norman <john_norman@admin.state.ak.us> Date: Wed, 27 Jul 2005 15:38:43 -0800 To: Cathy P Foerster <cathy_foerster@admin.state.ak.us>, Dan T Seamount <dan_seamount@admin.state.ak.us>, Kevin A Brooks <kevin_brooks@admin.state.ak.us> CC: Jody J Colombie <jody_colombie@admin.state.ak.us>, Winton G Aubert <winton_aubert@admin.state.ak.us>, Thomas E Maunder <tom maunder@admin.state.ak.us>, Stephen F Davies <steve davies@admin.state.ak.us>, Robert P Crandall <bob_crandall@admin.state.ak.us>, Mary J Williamson <jane_williamson@admin.state.ak.us>, Dan T Seamount <dan seamount@admin.state.ak.us>, John D Hartz <ack_hartz@admin.state.ak.us>, James B Regg <jim_regg@admin.state.ak.us>, Kari J Wheeler <kaxi wheeler@admin.state.ak.us> I am hereby recusing myself from participation in any matters coming before the Commission involving the shallow gas exploration program currently being conducted by Teck Cominco Alaska Incorporated, in Northwest Alaska, in the area around the Red Dog lead and zinc Mine. The reason for this recusal is that prior to joining the Commission I worked on this specific project for the operator, Teck Cominco Alaska; and, therefore, it will be inappropriate for me to participate in decisions of the Commission relative to this project. All applications, spacing hearings and other issues which may come before the Commission related to this project, including but not limited to Well Nos. NB-O1 and NB-02, are to be handled exclusively by Commissioners Seamont and Foerster without any involvement by me. Copies of this notice shall be placed in all relevant files. ~"~ ~'~ ~~ John K. Norman Chairman i of 1 7/28i2005 8:17 AM ~oG ~02'7 ~~ E & P SERVICES, llVC. July, 5, 2005 Mr. Tom Maunder, P. E. Petroleum Engineer Alaska Oil and Gas Conservation Commission 333 7~' Avenue, Suite 100 Anchorage, AK 99501 .,~, \ /~~ ~ ~-`,. ' ~~'`~ ~~'t~~~.. ~~' Re: Teck Cominco Alaska Incorporated, Wells Nos. NB-O1 and NB-OZ Dear Mr. Maunder: Thank you for your e-mail of June 28, 2005 which lists several questions and comments regarding the procedures for drilling the above referenced wells, as well as the authority by which Teck Cominco Alaska. Incorporated will operate these wells. I believe we satisfactorily addressed these issues during our meeting on July 1, 2005, subject to the written responses to your questions presented herein. The points listed below follow the same numbering system used in your original e-mail: 1. Need bond or letter of credit in place before permit applications can be approved (2~ AAC 25. 025): The blanket bond was electronically transmitted to your office this date, with the hard copy following by overnight mail. 2. Need a dease map showang affected lease and those immediatedy surrounc~ing it. Need ownership/land ownership information for the affected dease and adl adjotning deases: The requested map is attached. The NANA lands are not subject to a traditional oil and gas lease, but rather to a confidential exploration agreement between NANA and Teck Cominco, and also to a specific Letter of Intent between the parties referencing the subject gas e~loration project, which is also confidential. 3. Need Designation of Operator Form (20 AAC 25. 020)-----_: The completed Designation of Operator form (10-411) is attached. 4. Need Noiice of Change of Ownership-------: It was determined during our aforementioned meeting that this form is not required. 5. 20 AAC 25. 033 (i) allows the Commission to approve under balanced drilling. The request for under balanced drilling must include-----: The subject wells will be drilled with air using a Washington Control Head as described in the APD's. The Washington Control Head is basically a rotating head, with all 2000 East 88th Avenue • Anchorage, Alaska 99507 •(907) 258-3446 • FAX (907) 279-5740 650 iVorth Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 •(281) 445-5711 • FAX (281) 445-3388 ~ ~I . cuttings and return air diverted through a"blooie" line to a cuttings bin and sampling cyclone located a minimum of 30 ft away from the wellbore. I S00 bbls of water will be stored on location during drilling and will be available to fill the wellbore as a well control contingency. The extremely low porosity and permeability of the shales being penetrated limit gas flows during drilling to what gas is absorbed within the shale that is pulverized during drilling. Air flows during drilling (1000 cfin or more) will keep any gas in the wellbore below the LEL. The Commission has approved an almost identical drilling procedure during the Evergreen CBM program (PTD's Nos: 202-178 and 202-179). 6. 20 AAC 25. 035 (h) (1) allows the Commission to approve cz variance from the BOP requirements---------: See No. 5, above. ~. 20 AAC 25. 035 (h) (2) adlows the Commission to appt~ove a varicmce from the diverter requirements if an equally effective means is provided to divert flow uu,ay from the rig --.• The Washington Control Head accomplished thi,s function. A separate diverter, as used in conventional mud/rotary drilling operations is not planned for this drilling program. In the subject ca.se, the "diverter" is the Washington Control Head. 8. A diagram of the diverter and rotating head arrangements should be provided. A pdan of the rig and support equapment should be provided- These diagrams are attached. 9. 20 AAC 25. 061 (c) allows the Commission to waive the shallow site survey if other effective means can identify the dikelihood of encountering shallow gas: We submit that the density of mineral exploration core holes in the area adequately addresses this issue. None of these core holes (all of which were drilled without any means of well control under mineral exploration regulations) encountered any shallow gas. 10. 20 AAC 2S. 066 covers gas detection requirements. There is no waiver clause for gas detection equipment absent a hecn-ing, etc. ---_; Teck Cominco will provide gas detection equipment during the drilling of NB-O1 and NB-02. If the results of this pilot shale gas project are encouraging, and subsequent wells are proposed, we reserve the right to make a formal waiver request for all subsequent wells, recognizing tha.t a hearing yvill be required. 11. Inclination survey--------: Surveys will be run every 500 ft. 12. Mud log or lithologic log-------__: A geologist will be on site to construct a continuous lithologic log as the wells are drilled. A conventional mud log will not be possible, as the wells are being drilled with air. Your e-mail addressed the need for a spacing exemption for Well No. NB-02. This application is being submitted under separate cover. Your e-mail also listed 14 "Questions and Comments", which axe addressed in the same format below: We presume that gas detectian will be papt of the mud logging equipment: See Nos. 10 and 12 above. ~ .1 • 2. We presume there is not any seismic data in the area--------: There is no seismic data in the area, neither is there any velocity information available. We submit that the e~rtensive mineral core hole data that has been accumulated in the area adequately addresses shallow gas concerns that would otherwise be addressed by the seismic data. 3. Have there been any obsetved over pressured gas or fZuids in any bo~ing or~ core holes within the area?: No 4. Can you provia'e more detail on previous drilling operations in the area? How mafay core or test holes have been dridled in the area, etc. ----: One hundred twenty three mineral exploration holes have been drilled in the area. A map is attached that shows the locations of these core holes. 5. Is Core Hole 1107 plugged?: The hole is plugged by ice through the permafi-ost zone. Mineral exploration regulations do not require the plugging ( in the conventional oil field sense) of core holes. See No. 4, abave. 6. Has sign~cant shallow gas ever been encountered in the area?: No 7. Has and H2S ever been demonstrated in this area? A stronger case must 8e made before the Commission can waiveH2S requirements in 20 AAC 25. 065: There has never been H2S encountered in any of the core ~oles in the area, ar in any of the e~rtensive mining operations at Red Dog. I don't know how to make a"stronger case". 8. What is the basis for calculating the BHP and surface pressure listed in Block 17 on Form 401 ?: The pressures shown on Forms 401 are not locally based, but rather are based on Barnett Shale experience in Texas. We used the Barnett shale case, a lithologically it represents some similarity to the Kivalina formation at Red Dog, is organic-rich, and when fractured and de-watered, produces gas in commercial quanties. 9. When the various hole sections are completed will logging be accomplished with ,~uid in the hole?: It will be necessary to fill ~he hole with water to achieve the logging products desired. 10. Will casing be run and cemented with fluid in the hode?: The production string will be run and cemented with fluid in the hole, since the hole will be filled with water in order to obtain the desired logs (See No. 9, above). Surface casing will be run through the permafrost zone without fluid in the hole, except that which occurs from natural seepage. 11. Basis for not requiring BOP equipment and request for additional porosity/permeability data----: During our aforementioned meeting we have provided you with a Scoping Study developed by Advanced Resources International, and P&P report from the University of Alaska which addresses this request. 12. Tbte request to Be under balanced will also be supported by the "answers" to the questions above: Understood 13 . Elimination of gas detection equipment: Previously addressed. Gas detection equipment will be provided. 14. Are there any drinking or industrial water wells within the area--------?: No. ~ . i . - - ~ ~ I hope this information adequately addresses your concerns. Please call or e-mail at any time should you have further questions or comments. Sincerely, ~ ~~~~ R. C. Gardner Sr. Technical Advisor For Teck Cominco Alaska Incorporated Enclosures E , _ ~ ~ NB-05 Conformance to AS 31.45.030(j) {j) For exploration and development operations involving nonconventional qas, the commission NB-05 is a shale-gas (aoacoa~v+entioaal gas) exploratioa w+e11. (1) may not tA) issue a permit to drill under this chapter if the well would be used to produce gas from an aquifer that serves as a source of water for human consumption or aqricultural purposes unless the commission determines that the well will not adversely affect the aquifer as a source of water for human consumption or agricultural purposes; or The NB-05 w+e11 is located on private property (NANA Corporation laads) oa the side of a h.ill, abont 2-1/2 mi.les notth of the Red Dog Miae. This area has been extensiv~ely drilled for mi.neraZ expZoration purposes to similar depths- The Red Dog Mine abtains water for iadustrial aad d~omestic use frc~m the Bons Creek Resexv~oir, which ia located ia a sepaxate draiaage basia abo'nt 5 LL7.Zes away. The nearest native vi2lages are Noata]c, located ov+er 40 msles atray, aad Rivalina, located about 60 miles away. N8-05 is located on a 4~erceat grade hillside, about 60 feet above and ~ 2, 800 feet away fram a 50-foot r.+~iate czeek that meaa.alers~ through a 400-foot-wide valley. The location of this ~++e1.2 aixd the abun.daat snrface ~ater nearby mske it highly wnl.ikelp tha.t aay potential aquifers affected by the we11 will ever be used to provide water for h~a.n aonsumptioa or agricnltural pnrpases. (B) allow injection of produced water except at depths below known sources of water for human consumption or agricultural purposes; Wastewater is uot iajected. Auy wastewater from drilliag operatioas, fzactvxi.ag' aad prodaction te~stiag is d.isposed in the Red Dog Mine tailings pond. The operator reports that EPA gran.ted approval for this disposal by letter dated Octaber 27, 2004. (2) shall (A) regulate hydraulic fracturing in nonconventional gas wells to assure protection of drinking water quality; 8-5/8" svrface casing will be set about 700 feet belos.~ the s~a~rfaae and ce~ented to surface . The ra+ell wi11 thea .be drilled to a total depth of 3,000 feet, 5-1/2" casing wi11 be run to tota2 depth, a.nd the casing T.*ill be ceneented to svrface. Later, a cemeat bosxd log wi11 be run to indicate good cemeat bond threugh sad abov+e a11 zones of iaterest. Zones to be perforated aad fractured svill be selected after ana~ipsis of open hole logs. Applications for Sundzy Approvals wi11 be submitted for Covaniasion approval prior to perforating a.nd fracturing' operations. ~ . s . \ J ~ These operations will aot affect drinking water quality because: the site is rm~otely Zocated; the shalloT.~+est pert'oratioa wi11 lie at least 700 feet below the ground surface; th~ w~ell will be cased aad aaleqnatelp cemented froaa TD to surface; and the w+ell wiZl be located at least 1,800 feet fr~n. the aearest stream.. (B) regulate the disposal of wastes produced from the operations unless the disposal is otherwise subject to regulation by the Department of Environmental Conservation or the United States Environmental Protection Agency; I~astewater fram drilliag operatioas, fractari.n.g aad prodnctioa testiag was disposed ia the Red Dog Mia.e tailings pond. The EPA reportedly graated approva.i for tbis disposal by Ietter dated October 27, 2004. {C) [Repealed, Sec. 6 ch 79 SLA 2005]. (D) as a condition of approval of a permit to dri11 a well for production or production testing of coal bed methane, require the operator to design and implement a water well testing program to provide baseline data on water quality and quantity; the commission shall make the results of the water well testing program available to the public. :. -, Steve avies ~~l~-~~~ AOGCC June 29, 2046 ~ ~ 5-~ ~ ~ ~ _,.. f ~ C~Y~CV ~~ Not applica.ble to this remotely located, shale-gas exploratioa .11. ~ • i Regulation 2~.033(b) and 25.033(i) i ~~~~~~ ; ~~ ~' ~~! ~ ~ ~~ ~ ~~ ~ ~~~ ~~ ~~b , ~('\ ~~Q ~~ ~ ~~ / 1~ , Q c ~\ .i ~ ~.i - ~`~`~~ ~~ ~~ ~~~, `a ~°-~ ~~ ~S ~~ 1Jc~r-S"` ~ ~'~~~~ !~ ` ~ ~A Q~ i`7 ~~ ~ ~~~ ~~~ ~ CJ ~~ i Waiver Requested 1-Underbalanced dailling ,~ 2-Employing a ': 20.03~(c) and "rotating head" rather j 25.035 (h) (2) than a diverter. ; Recommendation and Discussion Approval of this waiver is recommended. This well is planned to be drilled using a.ir. A similar air- drilling program has been previously employed drilling shallow wells for coalbed methane (CBM). Teck Cominco (TC) provided a core study performed at UAF designed to determine the porosity and permeability of cores obtained in nearby mineral exploration wells. The study determined that the "best" permeability in the samples examined was about 0.2 md. With such low permeability, it is most unlikely that natural flow would occur while drilling with air. TC has provided a description of the equipment to be employed. In the unlikely event of a flow, TC plans to have 1500 bbls of water in tanks on site to allow the well to be killed. Based on the submitted information, it is determined that the proposed underbalanced drilling operations can be conducted without loss of well control. Underbalanced operations are approved per 20 AAC 25.033 (i). Approval of this waiver is recommended. In air drilling operations, a rotating head is employed to direct return flow from the well away from the rig floor. A rotating head is a diverter whose design allows the annulus to be continuously sealed while drilling operations are being conducted. ~, I Based on the submitted information, it is ~~ ; determined that use of the proposed rotating head ~ will provide an equally effective means of diverting ' ' flow away from the rig floor per 20 AAC 25.035 (h) 2 3-Not to employ a ~ 2~.035 (e) and ; Approval of this waiver is recommended. A BOP gpp ' 2~.03~ (h) (1~ i is employed to provide additional control ability if I ~ the hydrostatic pressure of the drilling fluid were ~ ' insufficient to contain any formation pressure. The ; ; porosity and permeability studies provided by TC ~ ! have shown that the rock is very "tight". Given the ', ~ low permeabilities determined, conventional flow is j ~, essentially impossible. ~ ' Based on the submitted information, it is ~ ', determined that equipment planned to be used by ; ':. TC is appropriate for the anticipated subsurface ~ i environment and that this equipment will provide ~ an equally effective means of well control per 20 I AAC 25.035 h 1. 4-Requiring near 25.061(a) and Approval of this waiver is recommended. The surface seismic ~ 25.061 (c) ~ general area is a"hard rock" mineral province. TC surveys ~ has conducted an e~ensive mineral core ~ exploration effort in the area resulting in over 100 ~ : core holes. No shallow gas or abnormal pressure I ~: hazards were encountered during this drilling r • • Based on the submitted information, it is determined that the mineral exploration drilling program conducted by TC is an equally effective means of determining the likelihood of potential shallow gas per 20 AAC 25.061 (c). TEiV1 with SFD 7/ 12; 200~ FAIRWEATHER EXPLORATION & PRODUCTION SERVICES INC. - GENERAL ACCOUNT ( ~IENDORID I ' NAME I PAYMEN7 NUMBER ICHECK DATEI ------~ 1 15854 STAK.AOGCC STATE OF ALASKA - AOGCC 00017531 6/27/2006 OUR VOUCHER NUMBER YOUR VOUCHER NUMBER DATE AMOUNT AMOUNT PAID DISCOUNT WRITE-OFF NET 00021325 060626*CKREQ*NB-05 6/26/2006 $100.00 $100.OD $0.00 $0.00 $100.00 COMMENT APPLICATION FOR PERMIT TO DRILL WELL # NB-05 $100.00I $100.00 • ~ ~ TRANSMITTAL LETTER CHECKLIST WELL NAME ~8 ~' D ~ PTD# 20(P '" O~'j ~ evelopment Service V Exploratory Strati ra hic Test g P Non-Conventional Well Circle Appropriate Letter / Paragraphs to be Included in Transmittal Letter CHECK ADD-ONS TEXT FOR APPROVAL LETTER WHAT (OPTIONS) APPLIES ~ MULTI LATERAL The permit is for a new wellbore segment of existing well (If (ast two digits in permit No. API No. 50- - - API number are , between 60-69) ~ Production should continue to be reported as a function of the ; original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005( fl, all records, data and logs 'acquired for the pilot hole must be clear(y differentiated in both well name ( PH) and API number (50- - -_) from recor s, data and logs acquired for well I ~ ,/ SPACING EXCEPTION The permit is approved subject p(iance with 20 AAC 25.055. Approval to perfora~ d roduce / in'ect is contingent V upon issuance of conserV~a io a rovin a s acin PP g P g ~ i exception. f ,~,~ Cp~yl,t,~~•{,G c"~ assumes the liability of any protest to the spacing exception that may occur. I DRY DITCH All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first cauaht and 10' sample intervals through target zones. , Please note the following special condition of this permit: Non-Conventional production or production testing of coal bed methane is not allowed Well for name of well ~ "..,a,~~~;g„~ ai,.~.,, ~ _ ~, _ ~ Rev: 1 /25/06 C:\j ody\tcansmittat_checklist ~ ~~.vS G`2 Field & Pool Well Name: NB 05 Program EXP Well bore seg ^ PTD#:2060970 Company TECK COMINCO ALASKA INCORPORATED Initial ClasslType EXP / PEND GeoArea 890 Unit OnlOff Shore On Annular Disposal ^ Administration 1 Permit_fee attached. - - Yes - - - - - - - - - 2 Lease number appropriate_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ . _ _ _ _ Well will be on NANA I_and go_vemed by_a.confidential exploration_agreementbetween NANA and_Teck. _ _ _ _ _ _ _ 3 Uniquewell.nameandnumber____________________________ ._Yes__ _____ 4 Welllocatedina_tl_e_fined_pool_ _____________.________.__.___._ ______N_o___ -- _____Explorationwell_________________________._______ 5 Well located p[oper distanGe from drilling unit_boundary_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ No_ _ _ _ _ _ . . . _ _ . _ _ -- 6 Well locat_ed ptoper distance_from other welis_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ No_ _ _ _ _ _ _ _ Will be located ~1800' from.NB-02_& NB-03, & -2300' from N&01 that is also in_Sec._ 18, _ _ _ _ _ _ _ _ 7 Sufficient acreage ayailable in_drilling unit_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ No_ . _ _ _ _ _ _ SPACING EXCEPTION REQUIRED: _2nd well in Sec.18,_and will be within 3,000' of other gas wells. _ _ . _ _ _ _ _ 8 Ifdeviated,is_we_Ilboreplat_inclu_ded_ _____. __________ _____ NA_,_ _____Verticalwell,_______________._._________________._____._ -- 9 Operatoronlyaff_ectedparty---------------_----_------------ -----Yes.- ------.- - - 10 Ope[ator has_appropriate_bond in fQr~e _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ -- . _ _ Yes _ _ - _ _ _ _ _ Bond 621821$, e.ff~ctive_7112/2~05._ _ _ _ _ _ _ _ _ _ _ - ---------- -- -- --------- ~-- - 11 Permit can be issued without conseroation order - - - -- No -- -- - Appr Dafe 12 Pe[mit_canbeissuedwithoutadministrative_approval____________________ _____ Yes__ ______.___________________ - - -- SFD 6/2912006 13 Can permit be approved before 15-day wait Yes 14 Well located within arQZ and strata authQrizQd ky Injection Ordet #(putl9# in_commen ts)_(For_ NA_ __ __________ 15 Allwells_within1/4_mileareaofreyiewidentified(Forservicewellonly)__________ _____NA___ _____._________________________.___.__..___,_______________________ _ 16 Pre-produced injectgr; duration of pre p[oduction less than_ 3 months_ (For service well only) __ NA_ __ __________ - 17 Nonconven, gas conforms to AS31,05,030(~.1_.A),(~2.A-D) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ _ _ _ _ _ See attached doc: "NB-05_ Conformance to_AS 31,05,030Q)" _ _ _ . _ _ _ _ _ _ . _ _ _ _ , _ _ _ _ _ Engineering 18 Conductor string_provided _ _ _ _ _ _ _ _ . _ _ _ - - Yes _ _ - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - - - - -- 19 Surface_c~sing_protects all knpwn USDWs _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ _ _ _ _ Surf_ace $~ producli4n ~asing will be cemented to surface, protecting any 5hallow.water._ SeQ 17, above, SFD _ . _ 20 _C_MT.voladeguate.toci[cul_ate_onconductor&surf_csg__________________ _____Yes__ .,________________._____.__________________________.__,_________._,____ 21 CMT_vol_adeguate_totie-inlongstringtosu_rfcsg_______________________ ____Yes__ ____________.__________________________,_______________,____ 22 CMT_willcoyerallknown_productivehonzons____________________.__ ___ _Yes__ ____. -- - - - - 23 CasingdesignsadequateforG,_T,B&_permaf[o5t--------------------- -----Yes-- ---.------------------------------------,--------------------------- 24 Adequate tankage_or reserue pit _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ _ _ _ _ _ Hydrocyclone and cu_ttings bin will capture retums. Solid waste_to Red Dog solid waste site._ Water to_ _ . , .. _ _ _ 25 If a_ re-drill, has_a_ 1_0-403 for abandonment been app_roved _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA. _ _ _ _ _ _ _ _ _ tailings pond, peC EPA ~pproval, 1500_bbis water planned on loration to_"kill" well if necessary_. _ _ _ _ _ _ _ _ , _ 26 Adequateweliboreseparation_proposed____________________________ _____Yes.. .____ --- ----- -----~ ----------~--------- ----------......------- ~-- - 27 if divetter required, does it meek regu_lations_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _N_A_ _ _ _ _ _ _ _ Rotating head_in use to divert circulated aiG _ , _ _ _ _ _ _ . _ - - Appr Date 28 Drilling fiuid_program schematic & equip list adequate_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ YQS _ _ _ _ _ _ _ Drilling fluid is_air, PQrmiability_sludies by IJAF $how iarg~t formation to have very lo perm (_<0.2 md~. _ _ _ _ _ _ _ TEM 71512006 29 _B_OPEs,.do they meet_ regu_lation _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA_ _ _ _ _ _ _ _ . _ No issues drilling last Xea[ or in_ 123 mineral core holes, Underbalan_ce is acceptable._ _ _ _ _ _ _ _ _ . _ _ _ . _ _ ~('~~ 30 BOPE_press rating apptop[iate; test to_(put psig in comments)_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA_ _ _ _ _ _ _ _ BOP will not_be employed, See commenfs above. _ _ _ _ _ _ _ _ _ , _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ~ ~~~ ' 31 Chgke_manifoldcomplieswlAPl_RP-53(May84)_______________________ _____ NA___ _____Achokemanifoldwillnot~eemployed._________._..___,_________,.___.. 32 Workwilloccurwithoutoperationshutdown_._______________________ _____Yes__ _______,._.__,_____,__ -- - 33 Is presence_of H2S gas probable_ . - N0 - - - - - - - - - - - - - - - 34 Mecha_nical condition of wells within AQR Yerified (For seruice well on_ly) _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA_ _ _ _ _ _ _ _ . _ _ , _ . _ _ _ , , _ Geology 35 Permit_can be issued w!o hydrogen_sulfide measu[es _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ _ _ _ _ _ In 2005, Tedc dtilled NB-01_& NB-02 nearbywithout incident, using same_drilling procedures. _ _ _ _ _ _ _ _ _ _ _ _ _ 36 Data.presented on potential overpressure zones _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ . _ _ _ _ No abno[mal pressu[e ot shallow gas expecked bas_ed on d[illing of NB-01 & NB-02 and _ _ _ _ _ _ , . . _ , _ _ _ Appr Date 37 Seismicanalysisofshallowgas,zones_...__--__ ________________ _____ NA___ ____.numerousmineralexplorationboreholeSinarea,_____________._______...______.__ _____ SFD 6129I2006 38 Seabed condition suryey_(if off-shore) ________ - - - -- - NA --- - - - - - 39 Contact namelpl~one for week_ly_progress reporis [exploratory onlyj _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA_ _ _ _ _ _ _ _ Bob_Gardne[ _907-258-3446 _ . _ _ _ _ _ _ _ _ _ . _ _ . . . . . . . _ _ _ . . _ _ . . _ _ . _ _ _ _ _ _ _ _ _ Geologic i i Date: Engineering Date P ~ i i ' Date oner. Comm ss Comm ss on r: mis r ~ ~ TS D ~,~ o~ 16 6~ ~ ~ ~ .~ --- ~ 6 D.~ ~ ~
