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Home My WebLink AboutCO 625 linage Project Order Fife Cover Page XI -IVZE 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. C__.0 (o 0....S Order Fite Identifier Organizing (done) Two -sided 111111111111111111 Rescan Needed 1.11111111 111111 RESCAN DIGITAL DATA OVERSIZED (Scannable) /olor Items: Diskettes, No. 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: M Date: I a, e q /s/ p J Project Proofing ll 11111111111 BY: Maria Date: ip 0 r /s/ Ai Scanning Preparation x 30 TOTAL PAGES (Count does not include cover sheet) BY: Maria Date: v 0 r i /s/ u Production Scanning 1 111111 11111 Stage 1 Page Count from Scanned File: {D (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: 1 NO BY: Date: /a/9/0 5), !s/ f p Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. 1111 111111111111 ReScanned 11111111111111 BY: Maria Date: /s/ Comments about this file: Quality Checked 1111.111111 1111 10/6/2005 Orders File Cover Page.doc • • INDEX CONSERVATION ORDER NO. 625 Geothermal Exploration Wells 1. August 11, 2009 2. August 13, 2009 August 20, 2009 3. September 23, 2009 4. ------------------- 5. October 15, 2009 6. February 12, 2010 Correspondence from DNR to NakNek Electric Assoc Notice of Hearing ADN and Notice of Hearing Bristol Bay Times, Affidavit of Publications, a-mail list, bulk mailing list Transcript Various emails Meeting sign in sheet Ltr from AOGCC to DNR re: Naknek G-2 PTD application Conservation Order No. 625 I STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage Alaska 99501 Re: THE MOTION OF the Alaska Oil and Gas Conservation Order No. 625 Conservation Commission for an order to Docket No. CO -09 -26 consider inclusion of designated Townships on the Alaska Peninsula under Commission Geothermal Exploration Wells Regulations for drilling, completion, and production of geothermal exploration and production wells, drilled below a depth of October 27, 2009 1000 feet TVD, under AS Title 31, Section 31.05.030(g). IT APPEARING THAT: 1. Under AS 31.05.030(g), wells drilled in the following Townships have a likelihood of an unexpected encounter of oil, gas or other hazardous substances if drilled to a depth greater than 1000 feet TVD: T12S, R41,42,43,44,45,46,47W T13S, R41,42,43,44,45,46,47W T14S, R41,42,43,44,45,46,47W T15S, R41,42,43,44,45,46,47W T16S, R41,42,43,44,45,46,47W T17S, R41,42,43,44,45,46,47W T18S, R41,42,43,44,45,46,47W T19S, R41,42,43,44,45,46,47W T20S, R41,42,43,44,45,46,47W T21S, R41,42,43,44,45,46,47W T22S, R41,42,43,44,45,46,47W T23S, R41,42,43,44,45,46,47W T24S, R41,42,43,44,45,46,47W T25S, R41,42,43,44,45,46,47W, Seward Meridian. 2. Pursuant to 20 AAC 25.540, the Alaska Oil and Gas Conservation Commission (Commission) published notice of opportunity for public hearing as to whether wells drilled in those Townships were likely to encounter oil, gas or other hazardous substances. Notices were published in the Anchorage Daily News on August 13, 2009 and in the Bristol Bay Times on August 20, 2009. 3. Prior to the hearing, neither public comments nor protests were received. 4. Testimony was taken at the hearing held on September 23, 2009 at 9:00 am. FINDINGS: 1. The Wide Bay Unit 1 well was drilled with T33S, R44W in 1962 (TD 1963) to a depth of 12,566 ft. Extensive core was cut from approximately 1450 ft to TD. Starting with core #2, descriptions of the core indicated oil shows and bleeding oil from fractures and vugs in the core. In addition, I while drilling below 10,200 ft. the mud weight was increased due to gas cutting of the mud. Mud weight was increased again below 11,100 ft due to gas cut mud. 2. The Becharof State 1 was drilled within T28S, R48W in 1984 to a depth of 9023 ft. Oil and gas shows were encountered below 6000 ft. The well tested gas to surface from 7470 -7550 ft. -30 MCFD Lower Bear Lake Fm.). 3. The Ugashik #1 well was drilled within T32S, depth in 1966 to a de th of 9,476 ft. Gas from coals was encountered, with no oil shows or tests reported. 4. The Great Basin #1 well was drilled within T27S, R48W in 1959 to a depth of 11,080 ft. Extensive core was recovered indicating a thick sedimentary section down to a depth of 10,850 ft. where crystalline basement was encountered. 5. The Great Basin #2 well was drilled within T27S, R48W in 1959 to a depth of 8,865 ft. A thick sedimentary sequence was described down to 8775 ft. At depths of 5,000 ft., 6,700 ft., 7,375 ft. black tar was described. Fractured basement was encountered at 8775 ft. 6. The above wells are all in proximity to the listed Townships. CONCLUSIONS: 1. The Wide Bay Unit #1 and the Becharof State 1 wells, within 70 miles of the proposed Naknek G -1 well, have encountered oil and gas; 2. The Wide Bay Unit #1 well ecountered high pressure zones below 10,000 feet resulting in a substantial increase in mud weights for well control; 3. The Great Basin #1 2 wells, within 60 miles of the proposed Naknek G -1, encountered a thick sedimentary sequence that could act as an oil and /or gas reservoir; 4. Although there are no deep wells in the immediate area of the Naknek G -1 location, there is potential for a thick sedimentary sequence to be present. 5. Experience with these wells gives rise to the likelihood of an unexpected encounter of oil gas or other hazardous substances in the Naknek G -1 well. 6. Based on the information outlined above, the Commission finds sufficient likelihood wells drilled in the designated Townships to encounter oil, gas or other hazardous substances. As a result, any wells drilled in the designated Townships are subject to the regulatory requirements of the Commission. NOW, THEREFORE, IT IS ORDERED: The Commission hereby designates the Townships listed above as being areas in which wells or any boring into the soil in excess of 1000 feet TVD presents a sufficient likelihood of an unexpected encounter with oil, gas or other hazardous substances to warrant subjecting all wells in those Townships to the Commission's regulatory jurisdiction. All wells drilled after the date of this order to depths below 1,000 feet TVD, in the Townships and Ranges listed above are subject to the regulations and Conservation Order No. 625 Effective Date: October 27, 2009 requirements of the Commission. This order in no way constitutes authority to drill for hydrocarbons without prior approval of the Commission. DONE at Anchorage, Alaska and dated October 27, 2009. AnTb .7 Daniel T. Seamou t, Jr., Chair Alaska Oil and Gas Conservation Commission y a 4, t Cathy P. Frster, ommissioner kcArRt N Alaska Oil and Gas Conservation Commission RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The Commission shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10 -days is a denial of reconsideration. If the Commission denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the Commission grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the Commission, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision on reconsideration. As provided in AS 31.05.080(b), "[t]he questions reviewed on appeal are limited to the questions presented to the Commission by the application for reconsideration." In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. Conservation Order No. 625 Effective Date: October 27, 2009 Mary Jones David McCaleb Cindi Walker XTO Energy, Inc. IHS Energy Group Tesoro Refining and Marketing Co. Cartography GEPS Supply Distribution 810 Houston Street, Ste 2000 5333 Westheimer, Ste 100 300 Concord Plaza Drive Ft. Worth, TX 76102 -6298 Houston, TX 77056 San Antonio, TX 78216 George Vaught, Jr. Jerry Hodgden Richard Neahring PO Box 13557 Hodgden Oil Company NRG Associates Denver, CO 80201 -3557 408 18th Street President Golden, CO 80401 -2433 PO Box 1655 Colorado Springs, CO 80901 Mark Wedman Schlumberger Ciri Halliburton Drilling and Measurements Land Department 6900 Arctic Blvd. 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99502 Anchorage, AK 99503 Anchorage, AK 99503 Baker Oil Tools Ivan Gillian Jill Schneider 4730 Business Park Blvd., #44 9649 Musket Bell Cr. #5 US Geological Survey Anchorage, AK 99503 Anchorage, AK 99507 4200 University Dr. Anchorage, AK 99508 Gordon Severson Jack Hakkila Darwin Waldsmith 3201 Westmar Cr. PO Box 190083 PO Box 39309 Anchorage, AK 99508 -4336 Anchorage, AK 99519 Ninilchick, AK 99639 James Gibbs Kenai National Wildlife Refuge Penny Vadla PO Box 1597 Refuge Manager 399 West Riverview Avenue Soldotna, AK 99669 PO Box 2139 Soldotna, AK 99669 -7714 Soldotna, AK 99669 -2139 Richard Wagner Cliff Burglin Bernie Karl PO Box 60868 PO Box 70131 K &K Recycling Inc. Fairbanks, AK 99706 Fairbanks, AK 99707 PO Box 58055 Fairbanks, AK 99711 North Slope Borough PO Box 69 Barrow, AK 99723 d Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Tuesday, October 27, 2009 2:35 PM To: Ballantine, Tab A (LAW); 'Aaron Gluzman'; caunderwood @marathonoil.com; 'Dale Hoffman'; Frederic Grenier; 'Gary Orr'; Jerome Eggemeyer; 'Joe Longo'; 'Lamont Frazer; Marc Kuck; 'Mary Aschoff; Maurizio Grandi; P Bates; Richard Garrard; 'Sandra Lemke'; 'Scott Nash'; 'Steve Virant'; 'Wayne Wooster; 'Willem Vollenbrock'; 'William Van Dyke'; Woolf, Wendy C (DNR); 'Anna Raff; 'Barbara F Fullmer'; 'bbritch'; 'Bill Walker; 'Bowen Roberts'; 'Brad McKim'; 'Brandon Gagnon'; 'Brian Gillespie'; 'Brian Havelock'; 'Brit Lively'; 'Bruce Webb'; 'buonoje'; 'Cammy Taylor'; 'Cande.Brandow'; 'carol smyth'; 'Charles O'Donnell'; Chris Gay; 'Cliff Posey'; 'Dan Bross'; 'dapa'; 'Daryl J. Kleppin'; 'David Brown'; 'David Gorney'; David House; 'David L Boelens'; 'David Steingreaber; 'ddonkel'; Deborah Jones; Decker, Paul L (DNR); 'doug_schultze'; 'Evan Harness'; 'eyancy'; 'foms2 @mtaonline.net; 'Francis S. Sommer'; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin'; 'Gary Rogers'; 'Gary Schultz'; 'ghammons'; 'Gordon Pospisil'; 'Gregg Nady'; 'gspfoff; 'Hank Alford'; 'Harry Engel'; 'jah'; 'Janet D. Platt'; 'jejones'; 'Jerry Brady'; 'Jerry McCutcheon'; 'Jim Arlington'; 'Jim White'; 'Jim Winegarner; 'Joe Nicks'; 'John Garing'; 'John S. Haworth'; 'John Spain'; 'John Tower; 'John W Katz'; 'Jon Goltz'; Joseph Darrigo; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; knelson @petroleumnews.com; 'Krissell Crandall'; 'Kristin Elowe'; 'Laura Silliphant'; 'mail= akpratts @acsalaska.net'; 'mail= foms @mtaonline.net'; 'Marilyn Crockett'; 'Mark Dalton'; 'Mark Hanley'; 'Mark Kovac'; 'Mark P. Worcester; 'Marguerite kremer; Melanie Brown; 'Michael Nelson'; 'Mike Bill; 'Mike Jacobs'; 'Mike Mason'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mkm7200'; 'Nick W. Glover'; NSK Problem Well Supv; NSU, ADW Well Integrity Engineer; 'Patty Alfaro'; 'Paul Winslow'; 'peter Contreras'; Rader, Matthew W (DNR); Raj Nanvaan; 'Randall Kanady'; 'Randy L. Skillern'; 'Rob McWhorter'; rob.g.dragnich @exxonmobil.com; 'Robert Campbell'; 'Robert Province'; 'Rudy Brueggeman'; 'Sandra Pierce'; 'Scott Cranswick'; 'Shannon Donnelly'; 'Sharmaine Copeland'; Shellenbaum, Diane P (DNR); Slemons, Jonne; 'Sondra Stewman'; 'Sonja Frankllin'; 'Stan Porhola'; 'stanekj'; 'Steve Lambert'; 'Steve Moothart'; 'Steven R. Rossberg'; 'Susan Roberts'; 'Suzanne Gibson'; 'tablerk'; 'Tamera Sheffield'; 'Ted Rockwell'; 'Temple Davidson'; Teresa Imm; 'Terrie Hubble'; 'Thor Cutler; 'Todd Durkee'; Tony Hopfinger; 'trmjrl'; 'Von Hutchins'; 'Walter Featherly'; Williamson, Mary J (DNR); Aubert, Winton G (DOA); Brooks, Phoebe; Crisp, John H (DOA); Darlene Ramirez; Davies, Stephen F (DOA); Fleckenstein, Robert J (DOA); Foerster, Catherine P (DOA); Grimaldi, Louis R (DOA); Johnson, Elaine M (DOA); Jones, Jeffery B (DOA); Laasch, Linda K (DOA); Mahnken, Christine R (DOA); Maunder, Thomas E (DOA); McIver, Bren (DOA); McMains, Stephen E (DOA); Noble, Robert C (DOA); Norman, John K (DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Saltmarsh, Arthur C (DOA); Scheve, Charles M (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA) Subject: co408 -001 and co625 Attachments: co625.pdf; co408- 001.pdf Jody.. Colombie Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 (907)793 -1221 (phone) (907)276 -7542 (fax) 1 0/27/2009 ~~6 • • February 12, 2010 Matthew Rader Natural Resource Spec V State of Alaska Department of Natural Resources Division of Oil and Gas 550 W 7th Ave, Ste.800 Anchorage, Alaska 99501 Dear Mr. Rader: AOGCC received and has reviewed NEA's Naknek G#2 Permit to Drill application. The Naknek G#2 well falls within the area designated in Conservation Order No. 625 as being under AOGCC's jurisdiction. Naknek G#2 is therefore subject to AOGCC regulations for drilling wells. AOGCC regulations 20 AAC 25.030 and 20 AAC 25.035 require that wellhead equipment and blowout prevention equipment, respectively, conform to certain stan- dards. Equipment proposed in NEA's Naknek G#2 permit application, does not meet AOGCC regulatory standards. As a result, AOGCC is treating NEA's Naknek G#2 permit application as a request for variance from AOGCC regulations. To date, Naknek G#1 subsurface data revealed no indication of hydrocarbons or other hazardous substances. Based upon Naknek G#2's proximity to Naknek G#1, AOGCC approves NEA's request for variance from AOGCC regulations, for well Naknek G#2.This approval is conditioned upon AOGCC being provided with Naknek G#2 subsurface logs and other data. Sincerely, Daniel T. Seamount Chairman `~ ~1la,~he1< ~i~~i-rc /~5slt ~ `' M/t-~rn a .PPS lb m , ~~.san C~~ ~~ - -- ~I.8803 S~us~~.~t~htaa~~ ~v ~ ~.DC3 ~~?a4lyAfl~S - - ~-= . - lam! ~ A % 6~~Tr~~~e r-, ex l c~- S~ ~ ~cr .Qa ~ PlrrvrX.C ~ ..~_ ~ ~. ~d~~ ~2vhG~1 NEB K 11 ~ E 10`7- Z'17-16a ~~a I P~ k(~C ~ow~ ~~J~a~.. ~'CftrSo.n --_--_-~_--..,~ d ,~l~A.f~ u9. 6 Y fr Z SGc..... pc fr ssor+ ~ a /GS ~ a ~~ v ~ °...__ .__~__~ , , ,F~ l r ~ , ev. E~ . nvg a~v~v~ J~LE'~v ~ v: of chit ~ 5 ~~ -~~- ~'~-. ~ cche.S~~»~~5~' v ~..~. ~ I 9a~ ~ c1vuK~cli ~. PC bb 151 U rk~ A'I t d k ~ S ~~ ~ f 4 Page lofl Regg, James B (DOA) From: Donna Vukich [dvukich@nea.coop] Sent: K8onday, October 19, 2009 6:20 PM 7D\ To: Browna, Susan G (DNR); Regg, James B (DOA) O'� Cc: drillsup@nea.coop; 'Stan Burton'; bburke@thermasource.com; dmconnell@thermasource.com; ofhadmann�aaa.o�mka.con� gfriedmann@aes.alaska.com Subject: RE: Variance Request for C-I for Safety Attachments: ONR Variance 1O'1S-UB.pdf;RCO.odf Dear Susan: Attached is our request for a variance on our drill permit. Thank you for your consideration. Sincerely, Donna Yuk; 'ch Naknek Electric Association PO Box 11D Naknek, AK 99633 (907) 246-4261 (tel) (907) 246-6242 (fax) dvukich@nea.coop vvvveoea.coop <-4 c., 6 -C (D 0 (1) I -0 t-- ro c].) 3 Li 4J• 0 10 ..c 5 4-• Z 4 E E C E' S CO as i u w to 2 8 0 f) 1.- 4- U c Z 0 (1) 1.- tl nu 'n 0 Ct Q. C tlo 0 0 -4 70 a 0 tl.) 4.- (1) •44.4 Z, Cj L. C (NI il I To a) 4-4 t3i) 0 S m .4 0 1 0 `4 .c ul I tr) El) Q LA 0 :E 8 0 c .1 loo L. U 1 .1 .4. •N 0 CD Q) Q) ....4 a) 4- D ..0.2 _c L.. V CC E Cr 1, i CO CD a 4..., 4- c) u. 73 1) 4 w 0 '•.4- zi CO to' c D 0 ro 4- 0 Ls) qt 2 c (0 4-' r- -C 1 4 0 .1...1 1.0 Uj 1 0 a. Z CD 0.0 CC .....J 1 tiO C 1> E LIJ ..8 Qr. *-1 C r13 t 2 0 _c w L 1"-- vi oo •L' ra a) 0 Z -L- ro L ai a c a) a) E 0 w 8 44 vl u in c ci U La c Z Q, 0 c td oi 3 Lk" W o 0 L ril 'V 0 1 0.1 c 0 3 4 0 0.0 _C u-I oa Z m 0 C ro 2 r` a) E (1) Ca U 0 -0 C CO C 4 O 0 (13 F.-- 4- CD C 0 _C TO 0 70 6. 4, :c 4 4• C 0 ',7- (Ts cr. (9 v -1.-., el 0 Lr) C:) E cl) -mo *r., no I' U 4- t-. s- 0 c r cu 0 c „..s. 0 (1) 4 a P a.) E .;-1 0. 0 3 W CU v -1 4- 0 tia .E 1.- ro 0. c a) 'y pi 0.0 rt3 eu) u k... p m C C _C b- 0 4-- _y V_ u E_ cv c E 6 E 1 cu El I O 1 u v) Z 0 E 0 L.L. .E '4:-. u L� Rotating Control Device 1 I Riser Flow Line 0 0 Annular I'll °po C Double Gate Elk Wellhead Page l of l Regg, James B (DOA) From: Company Man [drillsup @nea.coop] 1 u 11U 1 Sent: Friday, October 16, 2009 1:26 PM To: Regg, James B (DOA) Cc: DOA AOGCC Prudhoe Bay; Fleckenstein, Robert J (DOA) Subject: Re: BOPE Test Day Extension Thank Y ou. We will test after top drive repaired prior to drilling ahead. Original Message From: Regg, James B (DOA) To: Company Man Cc: DOA AOGCC Prudhoe Bay Fleckenstein, Robert J (DOA) Sent: Friday, October 16, 2009 1:07 PM Subject: RE: BOPE Test Day Extension Nick You should plan on testing BOPE before recommencing drilling; your request is denied. Jim Regg AOGCC 333 W.7th Avenue, Suite 100 Anchorage, AK 99501 907- 793 -1236 From: Company Man [mailto :drillsup ©nea.coop] Sent: Friday, October 16, 2009 9:05 AM To: Regg, James B (DOA); DOA AOGCC Prudhoe Bay; Fleckenstein, Robert J (DOA) Subject: BOPE Test Day Extension Jim, The top drive needs to have traction motor replaced. We are currently out of the hole. Estimate repairs to take at least 3 days. We request the clock stop today on our weekly BOP test. Have it resume when we start back to drilling. We are into day 4. When drilling resumes we would have 3 days until BOP test is due. Please advise. Best Regards, Nick Scales NEA Rig 7 Geothermal Drilling Off 907 246 -3651 Cell 907 439 -3722 10/16/2009 AOGCC Confidential Cover Sheet Page 1 LEAK OFF TEST (/1/7/oci Well Name Naknek G #1 Permit to Drill 2215 (DNR) Date 9/14/2009 Operator Naknek Electric Assn. Field /Unit Exploratory Company Representative Nick Scales Rig NEA-#7 A.O.G.C.C. Inspector Lou Grimaldi LEAK OFF DATA Mud Weight in hole (P.P.G.)) 9.101 Surface Hole T.D. 2890 S.G. of Mud in hole 1.09 Drill Out MD 2904 Gradient of Mud in hole 0.472 Drill Out TVD 2904 Surface pressure at break 511 Hydrostatic Head of Mud at T.D. 1372 Surface pressure taken to 522 B.H.P. at T.D. (with Leak Off pressure applied) 1883 Surface pressure bled to (10 seconds) 522 Equivalent Mud Gradient 0.65 Surface pressure bled to (1 minute) 522 Equivalent Mud Specific Gravity 1.50 Surface pressure (Stabilized) 511 Equivalent Mud Weight at Break (P.P.G.) 12.49 COMMENTS Is this a repeat test No Anticipated maxBHP at T.D. for upcoming casing section 3770 If Yes what was last tests EMW T.V.D. at Total Depth 8000 Volume of fluid pumped during L.O.T. 1.15 M.W. needed to balance wells max pressure 9.06 Volume of fluid returned after bleed -off 1 Mud Weight called for in program 9_1 Witness good casing test to 1025 psi for 30 minutes. Drill 15' new hole and observed good cuttings (balsatic) coming across shakers at bottoms up. Perform leakoff test to 12.5 EMW. S LOT Naknek G -1 09- 14- 09.xls Updated by L.G. 8/4/98 Page 1 of 3 9/17/2009 600 A 1 B Casing D g 500 Test I x i l l l 1 ifii C 0 1 2 3 4 5 6 7 8 9 10 SHUT -IN TIME IN MINUTES (for -x C a 400 liii. II n 9 Maximum Volum e I I III t Line For LOT r300 0 Casing test s Leak Off test e 200 p A Leak Off Point —X— Shut m B Stop Pump Close Valve C 10 Second Shut -in Pressure 100 A I D End Of Test —1:1— Max L.O.V. VV 0 0.10 0.30 0.50 0.70 0.90 1.10 1.00 3.00 5.00 7.00 9.00 Bbl's/Minutes Updated by L.G. 8/4/98 LOT Naknek G -1 09- 14- 09.xls 9/17/2009 AOGCC Confidential L.O.T. #1(Data) Page 1 Leak Off Test Bbl's /Min.s Casing test; Leak Off test Delta PSI Shut -in Max L.O.V. 1 550 0.00 20 0 0 0I 0.10 57 51 51 29 0.20 99 93 42 57 500 0.30 145 1451 52 78 0.40 192 182' 371 99 450 0.50 235 235 53 122 0.60 281 270 35 145 0.70 326 315 45� 169 C 400 0.80 377 365 50r 192 s 0.90 414 410 45 214; i 350 1.00 467 --1 457 47 235 n 1.10 508 500 43 258 g 1.15/10 sec 522 22 522 281 300 1.00 -522 520 304 P 2.00L 0 52 0 326 r 250 3.00 518 352 e f s 200 —Leak Off test Casing test 4.00 0 515 37 i s 5.00 0 513 u 6.00 0 512 r Shut -in 7.00 1_ 0 512 e 150 Max L.O.V. 8.00 j 512 9.00 I 511 100 i 10.00' 511 50 0 ti° a° 5° b° e° a° o° b o° o° o° o° o° o° o° o° o° f Max Equiv Mud Weight= 12.5 e' 0 0 0 0 0 0 0 0 0 h\l ti' a 5 b' e' 0 �o Present Mud Weight= 9.1 Difference= 3.4 Bbl's/Min's TVD of shoe= 2904 Max Surface Pressure= 513 PSI 1 I 1 r 1 I f l I LOT Naknek G -1 09- 14- 09.xls Updated by L.G. 8/4/98 Page 2 of 3 9/17/2009 4t 3 1 ALASKA OIL AND GAS CONSERVATION COMMISSION 2 Before Commissioners: Daniel T. Seamount, Chair Cathy Foerster 3 John K. Norman 4 In the Matter of the Proposal to RECEIVED 5 Require a Drilling Permit for any Well Proposed to be Drilled OCT 0 8 2009 6 to a Depth Greater than 1000 feet TVD for Various Townships and 7 Ranges within Bristol Bay Borough Alaska 11 &Ga8Co118. �0t11�118810t1 Third Judicial District, State of Anchorage 8 Alaska 9 ALASKA OIL and GAS CONSERVATION COMMISSION 10 Anchorage, Alaska 11 September 23, 2009 9:00 o'clock a.m. 12 VOLUME I 13 PUBLIC HEARING 14 BEFORE: Daniel T. Seamount, Chair Cathy Foerster, Commissioner 15 16 17 18 19 20 21 22 23 24 25 R R C O U R T R E P O R T E R S 811 G STREET (907)277- 0572 /Fax 274 -8982 ANCHORAGE, ALASKA 99501 1 TABLE OF CONTENTS 2 Opening remarks by Chair Seamount 03 Remarks by Mr. Saltmarsh 05 3 Remarks by Dr. Aubert 12 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 R R C O U R T R E P O R T E R S 811 G STREET (907)277- 0572 /Fax 274 -8982 ANCHORAGE, ALASKA 99501 1 P R O C E E D I N G S 2 (On record 9:03 a.m.) 3 CHAIR SEAMOUNT: Okay. I'd like to call this hearing to 4 order. Today is September 23rd, 2009, the time is 9:03 a.m. 5 Were located at the at 333 West Seventh Avenue, Suite 100, 6 Anchorage, Alaska. That is the office of the Alaska Oil Gas 7 Conservation Commission. 8 To my left is Commissioner Cathy Foerster and I am Dan 9 Seamount, the Chair of the AOGCC. We have two Commissioners 10 here which means we have a quorum. 11 R R Court Reporting will be recording the proceedings. 12 You can get a copy of the transcript from R R Court 13 Reporting. 14 I'd like to remind those who are testifying to speak into 15 the microphone so that persons at the back of the room can hear 16 and so the court reporter can get a clear recording. 17 This is Docket CO- 09 -26. The purpose of this hearing is a 18 motion of the Alaska Oil and Gas Conservation Commission to 19 require a drilling permit for any well proposed in the to 20 the drilled depth greater than 1,000 feet TVD within the 21 roughly rectangular area covered by Township 12 South to 22 Township 25 South and Ranges 41 West to 47 West, Seward 23 Meridian. This all this area is within the Bristol Bay 24 Borough, Third Judicial District, State of Alaska. 25 Okay. Notice of the hearing was published on August 21st, R R C O U R T R E P O R T E R S 811 G STREET (907)277- 0572 /Fax 274 -8982 ANCHORAGE, ALASKA 99501 3 1 2009 in the Bristol Bay Times, on August 13th, 2009 notice of 2 the hearing was published in the Anchorage Daily News as well 3 as the State of Alaska online notices and also the AOGCC 4 website. 5 This hearing is beino held in accordance with 20 AAC 6 25.540 of the Alaska Admi'istrative Code. 7 I'll take a look at uhe sign in sheet here. And looks 8 like we have a couple of embers from the public. Welcome Mr. 9 Hicks of Kukpik Drilling. And we have a representative from 10 DNR, Shawn Peterson, welcome. I don't think we've met have we, 11 I how long have you bean working? 12 MR. PETERSON: Maybe in the long distant past. 13 CHAIR SEAMOUNT: In she distant past. Okay. Well, 14 welcome. 15 It looks like we .according to the sheet we only have 16 one or two people that wi 1 testify, at least one and that 17 would be Mr. Art Saltmars', Senior Petroleum Geologist from the 18 AOGCC. Oh, and also Winton Aubert of the AOGCC who is Senior 19 Petroleum Engineer. So w° have two to testify. Is there 20 anyone else who wishes to testify? We will give opportunity at 21 the end if anybody wants o testify or ask questions. 22 If you want to ask a question go ahead and write your 23 question down and hand it to Ms. Jody Colombie over there in 24 the corner, she's our administrative assistant and she will 25 pass it up here. R R C O U R T R E P O R T E R S 811 G STREET (907)2 7- 0572 /Fax 274 -8982 A CHORAGE, ALASKA 99501 4 1 COMMISSIONER FOERSTER: She's leaving. 2 CHAIR SEAMOUNT: Oh, she's leaving. 3 COMMISSIONER FOERSTER: Hand it to Darlene. 4 CHAIR SEAMOUNT: Hand it to Darlene Ramirez, our other 5 assistant. 6 Okay. So the first to testify will be Mr. Saltmarsh and 7 I'm wondering do we give, what, greater, what is it, 8 credibility, to those that get sworn in, I'm wondering is it 9 necessary to get sworn in or is this more of an informational 10 thing and swearing in is not necessary. How do you vote? 11 COMMISSIONER FOERSTER: I don't think it's necessary, but 12 I'm looking at my Assistant AG to see what he says. 13 MR. BALLANTINE: I don't think it's necessary. 14 CHAIR SEAMOUNT: Okay. If we were to get into a matter of 15 contention or anything then we'd probably re -swear them in or 16 swear them in at that time. 17 Okay. Mr. Saltmarsh, please identify yourself, who you 18 represent and what you're going to talk about and then please 19 proceed. 20 MR. SALTMARSH: Okay. My name is Art Saltmarsh, I am a 21 Senior Petroleum Geologist with the Alaska Oil Gas 22 Conservation Commission. And I'm here to briefly discuss the 23 results of a review that I did of logs, well logs out on the 24 Alaska Peninsula to the south, southwest and southeast of the 25 proposed NakNek G -1 geothermal well. R R C O U R T R E P O R T E R S 811 G STREET (907)277- 0572 /Fax 274-8982 ANCHORAGE, ALASKA 99501 5 411 1 CHAIR SEAMOUNT: Okay. I notice that you have a 2 handout 3 MR. SALTMARSH: Yes. 4 CHAIR SEAMOUNT: which we need to introduce, is that 5 correct? 6 MR. BALLANTINE: I think it would be wise. 7 CHAIR SEAMOUNT: Okay. Well introduce this handout. 8 It's one, two, three, four, five pages consisting of two maps, 9 a cross section and some verbiage. And does everybody have a 10 copy of that handout that's interested? Is there anyone who 11 doesn't? Okay. Good. Please proceed. 12 MR. SALTMARSH: In August I was asked to review several 13 wells on the Alaska Peninsula south of Naknek. Initially I 14 looked at the results of the Wide Bay Unit Number 1, the 15 Becharof State Number 1 and the Ugashik Number 1 wells. After 16 I reviewed these wells I expanded the search to as many wells 17 as I could locate to the south of that proposed location. 18 There were over 25 wells drilled on the Peninsula for the 19 purposes of oil and gas and I ended up finding 15 of those 20 wells that the Commission had logs and data on. The three 21 closest wells to the proposed Naknek G -1 well are approximately 22 70 miles to the south and slightly west. Most of the wells 23 that I looked at with a few exceptions displayed some types of 24 show of oil and gas. 25 The Commission is considering the inclusion of an area of R R C O U R T R E P O R T E R S 811 G STREET (907)277- 0572 /Fax 274 -8982 ANCHORAGE, ALASKA 99501 6 41/ 1 the Alaska Peninsula to require a permit to drill for any well q P Y 2 proposed to be drilled to a depth greater than 1,000 feet TVD. 3 You'll find listed below those townships and ranges that are 4 inclusive in this area. 5 I'd like to jump over to the first map, that will show you 6 the Alaska Peninsula area wide sale that was put on and you can 7 see from the well locations the symbols, the oil and gas shows. 8 And the second map is the actual area of consideration with 9 those townships and ranges that are listed on the first page. 10 CHAIR SEAMOUNT: Mr. Saltmarsh, first of all it says 11 you say it would require a permit to drill for any well 12 proposed. I don't believe that would be the stipulation, would 13 it, it would be the requirements, it would comply with what 14 would be necessary to get a permit to drill, but I don't think 15 we'd be issuing a permit to drill, is that true, is that a true 16 statement? 17 COMMISSIONER FOERSTER: I think that's I was going to 18 ask a similar question and I but I would refer it to our 19 Assistant AG, you know, can we what we need to do if we 20 consider that there's a risk of unanticipated hydrocarbons is a 21 to a certain jurisdiction and make sure that the well is 22 drilled properly. And so my question to the Assistant AG is do 23 we need a permit to drill that or can we simply allow the well 24 to be drilled under the DNR report, but requiring compliance 25 with all of our regulations and statutes. R R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 7 1 MR. BALLANTINE: I think the latter 2 COMMISSIONER FOERSTER: Okay. 3 MR. BALLANTINE: you can do, I'll double check that, 4 but I think you want to be clear that when you do do it it's 5 not a permit to drill, it's requiring them to comply with our 6 regulations because we think they might get something. 7 COMMISSIONER FOERSTER: Okay. That's what I thought. 8 CHAIR SEAMOUNT: I think that's the way the statutes read 9 right now, it would be a DNR permit, but we would have some 10 requirements that would apply to the approval of that permit. 11 COMMISSIONER FOERSTER: And we would have and our 12 inspectors and our regs would have jurisdiction? 13 MR. BALLANTINE: Correct. 14 COMMISSIONER FOERSTER: Okay. 15 CHAIR SEAMOUNT: Well, or an equivalent inspector hired by 16 the DNR. 17 COMMISSIONER FOERSTER: Or an equivalent inspector by the 18 DNR, right. Right. 19 CHAIR SEAMOUNT: Sorry about that, Mr. Saltmarsh. 20 MR. SALTMARSH: That's okay. Thank you. The first well I 21 looked at was the Wide Bay Unit Number 1 well, it's located to 22 the and you can see that on the map, that first map, to the 23 southeast of the Naknek G -1 location. It was drilled in 1962, 24 completed in '63 to a depth of 12,566 feet. It was extensively 25 cored from approximately 1,450 feet to almost TD. And starting R R C O U R T R E P O R T E R S 811 G STREET (907)277- 0572 /Fax 274 -8982 ANCHORAGE, ALASKA 99501 8 411 011 1 with the descriptions from core number 2, it indicated oil 2 shows, it indicated bleeding oil from fractures and from vugs 3 in the cores. In addition while drilling below 10,200 feet the 4 mud weight was had to be increased due to gas cut mud. And 5 again that was done again below 11,100 feet, indicating a 6 gradient that's probably higher than the normal. 7 The Becharof State Number 1 was the second well, you can 8 see that located on the map at the top of the first map. 9 That was drilled in 1984 to a depth of 9,023 feet. They had 10 shows of gas and oil below 6,000 feet down to a section of the 11 well that was actually tested for gas which is probably Bear 12 Lake or lower Bear Lake formation. The depths of that were 13 7,470 to 7,550 and they tested approximately 30,000 MCFD. 14 Farther to the south the Ugashik Number 1 well was drilled 15 in '66 to a depth of 7,476 feet. The only encounter in that 16 well was gas that came in from the coals that they that were 17 encountered during drilling. 18 And if you go back up above on that map above the Becharof 19 State Number 1, the Great Basin 1 and 2 are located there. The 20 Great Basin 1 well was drilled in 1959 to a depth of 11,080 21 feet. Extensive core was recovered and in the descriptions of 22 that core they indicated well, in the descriptions they 23 indicated that there was it was mostly sedimentary rock 24 throughout the whole section all the way to TD. There were no 25 shows in this well. R R C O U R T R E P O R T E R S 811 G STREET (907)277- 0572 /Fax 274 -8982 ANCHORAGE, ALASKA 99501 9 410 411 1 The Great Basin Number 2 well was drilled in 1959 to a 2 depth of 8,865. And again there was a full almost a full 3 sedimentary sequence down to 8,775 where crystalline basement 4 was encountered. In some of the descriptions from the samples 5 off the mud log they described black tar present in the wells 6 with some cut. 7 In summary the point of all of this above, there are wells 8 within 70 miles of the proposed NakNek G -1 well which have 9 encountered oil and gas. The Great Basin Number 1 and 2 wells 10 described a thick sedimentary sequence. And although there are 11 no wells drilled up in the location deep wells drilled up in 12 the location of the Naknek G -1, it is highly unknown what the 13 sequence will be and what the geology would be. There is 14 potential for thick sedimentary sequence in this area. 15 So that we kind of put all this in perspective, Title 31, 16 Section 31.05.030(g) states and I quote, when the Commission 17 finds sufficient likelihood of an unexpected encounter of oil, 18 gas or other hazardous substance as a result of well drilling 19 in an area of the state the Commission may by regulation 20 designate the area and specify a depth in the area as one in 21 which wells, unquote, and I paraphrased the last part of this, 22 are subject to regulations of the Commission. Are there any 23 questions? 24 CHAIR SEAMONT: Commissioner Foerster. 25 COMMISSIONER FOERSTER: I have a few. In your review of R R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 10 411 410 1 wells is you talk about wells to the south, the southwest, 2 the southeast, is there any reason you didn't include wells to 3 the north? 4 MR. SALTMARSH: There are very few drilled up there and we 5 didn't have any information on them. My review of all the data 6 showed that there were about 15 wells we had data and well logs 7 on. 8 COMMISSIONER FOERSTER: And all the wells we had data on 9 were to the south and southwest and southeast? 10 MR. SALTMARSH: They were all to the south, southeast and 11 southwest. 12 COMMISSIONER FOERSTER: Okay. Thank you. And on the 13 Ugashik Number 1 you reported that there was gas from the 14 coals? 15 MR. SALTMARSH: Yes. 16 COMMISSIONER FOERSTER: What at depth did you find the 17 coals? 18 MR. SALTMARSH: I'd have to go back and look at those, but 19 the coals were encountered fairly shallow 20 COMMISSIONER FOERSTER: Okay. 21 MR. SALTMARSH: in the during the drilling. 22 COMMISSIONER FOERSTER: Okay. Those are the only 23 questions I have for Mr. Saltmarsh. 24 CHAIR SEAMOUNT: Okay. Mr. Saltmarsh, correct me if I'm 25 wrong, but we have if anybody wants detailed information on R R C O U R T R E P O R T E R S 811 G STREET (907)277- 0572 /Fax 274 -8982 ANCHORAGE, ALASKA 99501 1 1 411 411 1 the wells that you've reported on, we have detailed well 2 records at the AOGCC, is that correct, in our files? 3 MR. SALTMARSH: Yes, we do on all the 15 wells I looked 4 at. Some of the wells are very old, drilled in the '20s and 5 '30s, so our data is a lot less complete than the more modern 6 wells that we have. 7 CHAIR SEAMOUNT: Okay. It appears that we're in an area 8 unknown, but very close or on the edge of a hydrocarbon bearing 9 basin, is that correct? 10 MR. SALTMARSH: Yes, that is correct. 11 CHAIR SEAMOUNT: Okay. 12 COMMISSIONER FOERSTER: I have one more question. Are all 13 the wells that we have, are any of those wells still held 14 confidential or are they all publicly available? 15 MR. SALTMARSH: They're all public knowledge now 16 COMMISSIONER FOERSTER: Okay. 17 MR. SALTMARSH: they're all out in the 18 COMMISSIONER FOERSTER: They're all on our website? 19 MR. SALTMARSH: Yes, they are. 20 COMMISSIONER FOERSTER: Okay. 21 CHAIR SEAMOUNT: Okay. Well, thank you, Mr. Saltmarsh and 22 do we have someone else who wishes to or is forced to testify? 23 Please state your name and who you represent and your title and 24 then proceed. 25 DR. AUBERT: Thank you. For the record I'm Winton Aubert, R R C O U R T R E P O R T E R S 811 G STREET (907)277- 0572 /Fax 274 -8982 ANCHORAGE, ALASKA 99501 12 410 410 1 Senior Engineer with the Oil Gas Commission. The Commission 2 has had before it since approximately mid summer this question 3 of what pressure containment is appropriate during drilling of 4 wells as had been discussed today, specifically wells in areas 5 that have the potential for hydrocarbon encounters. If such a 6 well were being drilled and appropriate pressure containment 7 were not present and the well experienced an unexpected 8 hydrocarbon encounter then in my opinion the possibility exists 9 for significant environmental damage, for significant property and for threats to human safety up to and including 10 damage a fo t y p g loss 11 of life. 12 CHAIR SEAMOUNT: Commissioner Foerster. 13 COMMISSIONER FOERSTER: You were asked to review the 14 Naknek well by the DNR, were you not? 15 DR. AUBERT: That's correct. 16 COMMISSIONER FOERSTER: And in your review what did you 17 determine? 18 CHAIR SEAMOUNT: Now be careful, this well is 19 confidential 20 COMMISSIONER FOERSTER: Okay. 21 CHAIR SEAMOUNT: in your response. 22 COMMISSIONER FOERSTER: Thank you. Oh, let me simplify my 23 answer my question so that you can make it easier to stay 24 within acceptable information. In your review of the initially 25 proposed drilling plan did you determine that that plan would R R C O U R T R E P O R T E R S 811 G STREET (907)277- 0572 /Fax 274 -8982 ANCHORAGE, ALASKA 99501 13 110 411 1 be acceptable to prevent danger to the environment and human 2 safety? 3 DR. AUBERT: The original proposal for the drilling of 4 this NakNek G -1 well did not did not include equipment that 5 was appropriate for unexpected hydrocarbon encounters. The 6 proposal was then modified to include sufficient that is 7 appropriate for drilling of such a well. 8 COMMISSIONER FOERSTER: So I'll take that first one as a 9 no. 10 DR. AUBERT: That's correct, no. 11 COMMISSIONER FOERSTER: Okay. And did the well as 12 initially proposed meet the requirements of DNR's regulations 13 for geothermal wells? 14 DR. AUBERT: It did, yes. 15 COMMISSIONER FOERSTER: Okay. So it met DNR's 16 requirements, but it fell short of AOGCC's requirements. 17 DR. AUBERT: That is correct. 18 COMMISSIONER FOERSTER: So in your opinion in an area 19 where we suspect that there could be an unencountered an 20 unanticipated encounter of hydrocarbons that it is appropriate 21 for the AOGCC to step in and require a stricter set of 22 requirements? 23 DR. AUBERT: Yes, it is. 24 COMMISSIONER FOERSTER: Okay. Okay. And you consider 25 that this area that were reviewing today is such an area? R R COURT REPORTERS 811 G STREET (907)277- 0572 /Fax 274 -8982 ANCHORAGE, ALASKA 99501 14 1 DR. AUBERT: I do based on the evidence that Mr. Saltmarsh 2 has presented. 3 COMMISSIONER FOERSTER: Okay. I have no other questions. 4 CHAIR SEAMOUNT: Okay. I guess included and erring on the 5 side of safety that would also include conservation issues such 6 as loss of hydrocarbons, is that correct? 7 DR. AUBERT: Certainly. 8 CHAIR SEAMOUNT: Okay. Okay. Thank you, Dr. Aubert. I 9 also neglected to welcome Ms. Kristin Nelson from the Petroleum 10 News as one of our public attendees. 11 Okay. One last chance, anyone from the public that wants 12 to testify or ask questions? Okay. Hearing none, do I hear a 13 motion to adjourn? 14 COMMISSIONER FOERSTER: I move that we adjourn. 15 CHAIR SEAMOUNT: I second. All those opposed? Hearing 16 none we are adjourned. 17 (Hearing adjourned 9:21 a.m.) 18 19 20 21 22 23 24 25 R R C O U R T R E P O R T E R S 811 G STREET (907)277- 0572 /Fax 274 -8982 ANCHORAGE, ALASKA 99501 15 1 C E R T I F I C A T E 2 UNITED STATES OF AMERICA ss. 3 STATE OF ALASKA 4 I, Rebecca Nelms, Notary Public in and for the State of Alaska, residing at Anchorage, Alaska, and Reporter for R R 5 Court Reporters, Inc., do hereby certify: 6 THAT the annexed and foregoing PUBLIC HEARING for the Alaska Oil and Gas Conservation Commission was taken by Lynn 7 Hall on the 23rd day of September 2009, commencing at the hour of 9:00 a.m., at the Alaska Oil and Gas Conservation 8 Commission, Anchorage, Alaska; 9 THAT this Hearing Transcript, as heretofore annexed, is a true and correct transcription of the proceedings taken and 10 transcribed by Lynn Hall; 11 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal this 6th day of October, 2009. 12 13 Notary Public in an o Alaska 14 My Commission Expires: 10 /10 /10 15 16 17 18 19 20 21 22 23 24 25 R R C O U R T R E P O R T E R S 811 G STREET (907)277- 0572 /Fax 274 -8982 ANCHORAGE, ALASKA 99501 f 3 i Naknek Geothermal WellState of Alaska I was asked to review the results of several wells on the Alaska Peninsula, south of Naknek. Initially, I reviewed the results of the Wide Bay Unit 1, Becharof State 1, and Ugashik 1 wells. After review of these wells, I expanded the review to all of the wells located to the south, southwest and southeast of the proposed Naknek G -1 geothermal well. More than 25 wells have been drilled on the Peninsula (Figure #1). My review included approximately 15 wells for which the Commission had data and well logs. The three closest wells to the proposed Naknek G -1 are approximately 70 miles to the south west. Most of the wells displayed oil and gas shows. The Commission is considering the inclusion of an area of the Alaska Peninsula to require a Permit to Drill for any well proposed to be drilled to a depth greater than 1000 feet TVD. The area under consideration includes all portions of the following Townships and Ranges (Figure #2): T12S, R41,42,43,44,45,46,47W T13S, R41,42,43,44,45,46,47W T14S, R41,42,43,44,45,46,47W T15S, R41,42,43,44,45,46,47W T16S, R41,42,43,44,45,46,47W T17S, R41,42,43,44,45,46,47W T18S, R41,42,43,44,45,46,47W T19S, R41,42,43,44,45,46,47W T20S, R41,42,43,44,45,46,47W T21S, R41,42,43,44,45,46,47W T22S, R41,42,43,44,45,46,47W T23S, R41,42,43,44,45,46,47W T24S, R41,42,43,44,45,46,47W T25S, R41,42,43,44,45,46,47W, Seward Meridian. Wide Bay Unit 1 The Wide Bay Unit 1 well was drilled in 1962 (TD 1963) to a depth of 12,566 ft. Extensive core was cut from approximately 1450 ft to TD. Starting with core #2, descriptions of the core indicated oil shows and bleeding oil from fractures and vugs in the core. In addition, while drilling below 10,200 ft. the mud weight was increased due to gas t cutting of the mud. Mud weight was increased again below 11,100 ft due to gas cut mud. Becharof State #1 The Becharof State 1 was drilled in 1984 to a depth of 9023 ft. Shows and gas were encountered below 6000 ft. The well tested gas to surface from 7470 -7550 ft. (-30 MCFD possibly from the Lower Bear Lake Fm.). Ugashik #1 The well was drilled in 1966 to a depth of 9,476 ft. Gas from coals was encountered, with no shows or tests reported. Great Basins #1 The well was drilled in 1959 to a depth of 11,080 ft. Extensive core was recovered indicating a thick sedimentary section down to a depth of 10,850 ft. where crystalline basement was encountered. Great Basin #2 The well was drilled in 1959 to a depth of 8,865 ft. A sedimentary sequence was described down to 8775 ft. At 5,000ft., 6,700 ft., 7,375 ft. black tar was described. Fractured basement was encountered at 8775 ft. Summary: 1- Wells within 70 miles of the ro osed Naknek G -1 well have P P encountered oil and gas; 2- The Great Basin #1 2 wells described a thick sedimentary sequence. Although there are no deep wells in the immediate area of the Naknek G -1 location, there is potential for a thick sedimentary sequence; Under Title 31, Section 31.05.030(g) "When the Commission finds sufficient likelihood of an unexpected encounter of oil, gas, or other hazardous substance as a result of well drilling in an area of the State, the Commission may, by regulation, designate the area and specify a depth in the area as one in which wells" are subject to the Regulations of the Commission. T i i 0 z m t M 99L rrf Y O A k i ll F C r 01 _9 ?f L 6 4_, 00 k r m fi r CP. lit i‹...... ,-.........c3 :P. a) W j 2 c <C r T` a o IiiM N�� c..... ms ,4 m f -I J 11 to3 10 r t 0 Cl- 2 -a.. til litais. 3 mi. 'CA e(/ It 11 'Zi 1 s 0 i r iio 4 c ,c,, 13e- pily .13 in clo t 404 1 CU 0 l tr.* u, f O o a) Q 1 N -a VS 4 If) 0 ...0 mt 4 cn (n (f) ro O if) ct tom!) V a i Z I 0 0 0 E U 3 1' 4 Z 2 v I s 'is-.0! r 3•r pr .1 /Ill* 57 N 36 4 53 52 5t AO 4. 45 .JN 4; 44 40 T 34 Ilk 1 11 •0 rti °V."'" r 3 '.°9°1°1111- A i lk t lite'lwilli ttrii".%,„ 1r 41),,,i SEWA 0 OAS AI 1✓ iIS 0 ti 7ri p L OVA: l 11 0, 7 e G ►,M 1 li ter► 614,.._ ER4 —sr r I :s i ll 1 411% i l l lit -I ii f 4 y 1 ot .1 1 1 S .6 5'>��.� V iJ'�4 49 48 47 f II:: 15 M y i MY it #v 4.. IV t 1 ummokitieNt i Aligl, Aeo. 4, 4 1 4 Iirair5/1';' •o u o M e P o Q Gn it pri K o AREA O viv 1 A.. o, CONSIDERATION b G Qe C,° ..1. i p 11 '/%r 22 1 A l: 4/ .+/I Q i��' ill v. b i r Q,' pp. 1590 .0 X f 8' 58 PS •'t 16. ori L, k IP 1151, a P ill ill 1111444,1111f4 pv 1 r_ r 6111911014 Mgt! Ph° i?.156 il X `'S F ALASKA REGIONAL I °'a F 4, o P ROFILES 5e° e ww tl- 0 6 12 4 tt• 1 a E©0• v N. t MILES I I d_ f 1i; State of Alaska. DOG. AOGCC. 2009 A.S. DIVISION OF GEOLOGICAL REPORT OF INVESTIGATIONS 2006 -1, Sheet F -I (1 of 11 A GEOPHYSKAI SURVEYS K a and boy ARCO GULF OW GREAT BASINS AMOCO GENERAL GENERAL OCS.R218 COST Noor r Aleutian Shelf 1 Sandy River FedaA I PSIINIM4n IA41 Ugashik I 68011'OI1 Great Begins I Great Basins 2 A3 A 3 124 Mt A 4 77 Ian 9 4 56 km F 4 Ian e 25 Fm API No. 653070000100 API No. 600611000100 API No. 500612000100 API No. 502661000900 API No. 502852000100 API No. 502651000700 API NO 502051000600 KB 11611 KB 2550 KB 37 R Ka 1465 KB 2020 KS 231 KB 1068 Spud 910/1982 Spud 9NI1981 Sped IMAM Spud 011706" Spud 1111011954 Spud 7&11969 Spud 1011011959 4 main backarc depocenter 6 Ugashik sub -basin r. 6060® 696 ®6Ci65® O 666L7 O© MliMIiMISM FUT 0 (Sea Level) NEWER VI I (Sea Level) 4. i I lie I 1110 -71.7 j -500 -2000 i IFr awnUp OrMwfkf m .4. d fa -3000 i)� i P F 1000 i 7s[2 --4000 F- F F -5000 1500 6 S.Povek Fm -8000 -7000 S.. I 4. 1 -8000 a 11 t o zsoo -soon I t M ean"le j Meshiolcienter 11000 elsi -12000 1 -14000 -15000 a SeM100 Noah l0ra A e MWian C Basin 9a Glaelro xel9eam A500 �'y_ °e pkaM Gm NM a aaatem s ne I y� 1D./9.H S YD Sheet FA. Sir IuekM dMfar:l 1 1 tr. J I -18000 1 -5000 -17000 I 1116 ;Aar i 1 A� aw: -18000 1 I ssueurar 5500 FEET i I o T:, by ?he nws Fch a METERS w e Georky ..al sun, Prom a »m16.$ 111 11111 Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Docket CO- 09 -26; The motion of the Alaska Oil and Gas Conservation Commission to require a drilling permit for any well proposed to the drilled to a depth greater than 1000 feet TVD, with the following described Townships and Ranges: T12S, R41,42,43,44,45,46,47W T13S, R41,42,43,44,45,46,47W T14S, R41,42,43,44,45,46,47W T15S, R41,42,43,44,45,46,47W T16S, R41,42,43,44,45,46,47W T17S, R41,42,43,44,45,46,47W Ti 8S, R41,42,43,44,45,46,47W T19S, R41,42,43,44,45,46,47W T20S, R41,42,43,44,45,46,47W T21 S, R41,42,43,44,45,46,47W T22S, R41,42,43,44,45,46,47W T23S, R41,42,43,44,45,46,47W T24S, R41,42,43,44,45,46,47W T25S, R41,42,43,44,45,46,47W, Seward Meridian; all within the Bristol Bay Borough, Third Judicial District, State of Alaska. The Commission has tentatively scheduled a public hearing on this matter for September 23, 2009 at 9:00 a.m. at the Commission. To request that the hearing be held, a written request must be filed by 4:30 p.m. on September 4, 2009. If a request is not timely filed, the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold a hearing, call 907 -793 -1221 after September 21, 2009. Written comments regarding the application may be submitted to the Commission, at 333 West 7 Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on September 22, 2009, except that, if a hearing is held, comments must be received no later than the conclusion of the hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, call 907- 793 -1221 by September 18, 2009. athy Foerster Co ssioner S STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION September 23, 2009 at 9:00 a.m. NAME AFFILIATION PHONE TESTIFY (Yes or No) t Fc cVS 1,(o,V �,r�► 7q —64/ 1 r .j 3 4 e m Nv e S o 0 P,2 eA.U-, HCU cs X43 -S 5 5 3 AM D z6<),‘ /730 Alm .c L etk, 4) t? 3 /2_ 2_ *2. STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING OE IN PLI SHOVTISE., CERTIFIED A O- 03014007 AFFIDAVIT INV D I CA OF PUB BE TRI CATE PART 2 OF WING THIS AD FOR ER W ING ORD ATTACH RA COPY ER OF !1 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. August 11, 2009 R 333 W 7th Ave, Ste 100 Jody Colombie Anchorage, AK 99501 PHONE PCN M 907 793 -1221 (9071 793 —1221 DATES ADVERTISEMENT REQUIRED: o The Bristol Bay Times August 20, 2009 301 Calista Court, Suite B Anchorage, AK 99518 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e- mailed Type of Advertisement Legal Display Classified ❑Other (Specify) SEE ATTACHED SEND INVOICE IN TRIPLICATE AOGCC, 333 W. 7th Ave., Suite 100 PAGE 1 OF TOTAL OF TO Anchorage, AK 99501 2 PAGES ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARD 02910 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST US 1 10 02140100 73451 2 r REQUISITIONED BY: DIVISION APPROVAL: Lam_ l Ai A A 02 902 (Rev. 3/94) Publisher /Original Copies: Department Fiscal, Department, Receiving AO.FRM f Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Docket CO- 09 -26; The motion of the Alaska Oil and Gas Conservation Commission to require a drilling permit for any well proposed to the drilled to a depth greater than 1000 feet TVD, with the following described Townships and Ranges: T12S, R41,42,43,44,45,46,47W T13 S, R41,42,43,44,45,46,47W T14S, R41,42,43,44,45,46,47W T15S, R41,42,43,44,45,46,47W T16S, R41,42,43,44,45,46,47W T17S, R41,42,43,44,45,46,47W Ti 8 S, R41,42,43,44,45,46,47W T19S, R41,42,43,44,45,46,47W T20S, R41,42,43,44,45,46,47W T21S, R41,42,43,44,45,46,47W T22S, R41,42,43,44,45,46,47W T23S, R41,42,43,44,45,46,47W T24S, R41,42,43,44,45,46,47W T25S, R41,42,43,44,45,46,47W, Seward Meridian; all within the Bristol Bay Borough, Third Judicial District, State of Alaska. The Commission has tentatively scheduled a public hearing on this matter for September 23, 2009 at 9:00 a.m. at the Commission. To request that the hearing be held, a written request must be filed by 4:30 p.m. on September 4, 2009. If a request is not timely filed, the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold a hearing, call 907 793 -1221 after September 21, 2009. Written comments regarding the application may be submitted to the Commission, at 333 West 7 Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on September 22, 2009, except that, if a hearing is held, comments must be received no later than the conclusion of the hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, call 907-793-1221 by September 18, 2009. athy P. Foerster Com ssioner STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE AFFIDAVIT MUST OF PUBLICATION BE IN TRIPLICATE (PART SHOWING 2 OF THIS ADVERTISING FORM) WITH ATTACHED ORDER NO., CO CERTIFIED PY OF O_03014007 /f, 1 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7 Avenue. Suite 100 Jody Colombie Anpust 11.2009 Anchorage_ AK 99501 PHONE PCN M 907 793 -1238 (9071 793 -177,1 DATES ADVERTISEMENT REQUIRED: T The Bristol Bay Times August 20, 2009 301 Calista Court, Suite B Anchorage, AK 99518 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: AFFIDAVIT OF PUBLICATION United states of America REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. who, being first duly sworn, according to law, says that he /she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2009, and thereafter for consecutive days, the last publication appearing on the day of 2009, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This day of 2009, Notary public for state of My commission expires ALASKA NEWSPAPERS INC. 301 CALISTA COURT, SUITE B ANCHORAGE, ALASKA 99518 -3028 M(907) 272 -9830 A(907) 272 -9512 SOA/AK Oil Gas Conservation Commission Date: August 21, 2009 Attn: Jody Colombie CASE/PO /AIO: AO- 03014007 333 W. 7th Ave, Ste 100 INVOICE(S) 080900471386 Anchorage, AK 99501 PAPER: Bristol Bay Times AFFIDAVIT OF PUBLICATION UNITED STATES OF AMERICA, STATE OF ALASKA, THIRD DIVISION. BEFORE ME, THE UNDERSIGNED, A NOTARY PUBLIC THIS DAY PERSONALLY APPEARED CHRISTINA RITTER. WHO, BEING FIRST DULY SWORN, ACCORDING TO LAW, SAYS THAT SHE IS THE ACCOUNTING ASSISTANT FOR: THE Bristol Bay Times, PUBLISHED AT ANCHORAGE IN SAID DIVISION THREE AND STATE OF ALASKA AND THAT THE ADVERTISEMENT, OF WHICH THE ANNEXED IS A TRUE COPY, WAS PUBLISHED IN SAID PUBLICATION ON 8/20/2009 AND THEREAFTER FOR A TOTAL OF 1 CONSECUTIVE ISSUE(S), THE LAST PUBLICATION APPEARING ON 8/20/2009, AND THAT THE RATE CHARGED THEREON IS NOT IN EXCESS OF THE RATE CHARGED TO PRIVATE INDIVIDUALS. STAMP CHRISTINA RITTER 11 1 111 ACCOUNTING ASSISTANT, ALASKA NEWSPAPERS `a kp� NOTARY 1 SUBSC I f W. WORN TO ME ON August 21, 2009 PUBLIC SOKC IDS 1 KONG MY CO I I SSION EXPIRES ON DECEMBER 1, 2012 ax: (800) 770 9512 classifiedlegal @alaskanewspapers.com to BRAXTON TOMMY PETERS, effective on an order without a hearing. To learn if the the effective date stated in the clerk's Commission will hold a hearing, call 907-793 Certificate of Name Change. 1221 after September 2009. Published 08/20/09 Written comments regarding the application 171 685 maybe submitted to the Commission, at 333 Notice of Public Hearing West 7th Avenue, Suite 100, Anchorage, STATE OF ALASKA Alaska 99501. Comments must be received Alaska Oil and Gas Conservation no later than 4:30 p.m. on September 22, Commission 2009, except that, if a hearing is held, com- Re: Docket CO- 09 -26; The motion of the ments must be received no later than the Alaska' "Of' 'and' Gas' ^Corise1'vatioiri: -''maolpsiornihe >hearingou:- Commission to require a drilling•permit for If, because of a disability, special accommo- any well proposed to be drilled to a depth dations may be needed to comment or attend greater than 1000 feet TVD, with the follow- the hearing, call 907- 793 -1221 by September ing described Townships and Ranges: 18, 2009. T12S, R41,42,43,44,45,46,47W Cathy P. Foerster, Commissioner T13S, R41,42,43,44,45,46,47W Published 08/20/09 T14S, R41,42,43,44,45,46,47W (71534 08/20) T15S, R41,42,43,44,45,46,47W INVITATION TO BID T16S, R41,42,43,44,45,46,47W INVITATION TO BID T17S, R41,42,43,44,45,46,47W No. 1 Heating Fuel Delivery T18S, R41,42,43,44,45,46,47W The. Bristol Bay Housing Authority is accept T19S, R41,42,43,44,45,46,47W ing bids, to provide No. 1 heating fuel on a T20S, R41,42,43,44,45,46,47W "keep fuff" basis to designated locations with T21 S, R41,42,43,44,45,46,47W in Dillingham. The term of service is from Oct. T22S, R41,42,43,44,45,46,47W 1, 2009 to September 30, 2010. Sealed bids T23S, R41,42,43,44,45,46,47W accepted until 4:00 p.m. August 28, 2009. T245, R41,42,43,44,45,46,47W For a bid instruction packet, contact the T25S, R41,42,43,44,45,46,47W, Seward BBHA, Box 50, Dillingham, AK 99576; Phone Meridian; all within the Bristol Bay Borough, (907) 842 -5956, Fax 842 -2784. Third Judicial District, State of Alaska. This contract is subject to provisions of The Commission has tentatively scheduled a Section 7(b), Indian Self- Determination public hearing on this matter for September Education Assistance Act [25 U.S.C. 23, 2009 at 9:00 a.m. at the Commission. To 450e(b)], 24 C.F.R. 1000.48, the Indian request that the hearing be held, a written Financing Act 25 U.S.C. 1452 and 24 C.F.R. request must be filed by 4:30 p.m. on 1000.52(e) September 4, 2009. Published 08/6, 08/13, 08/20/09 If a request is not timely filed, the (70546 08/06- 08/20) Commission may consider the issuance of APPRENTICESHIP Heavy Equipment Operators, Mechanics, and Service Oilers REQUIRED DOCUMENTS;. High school transcripts diploma or GED test scores certificate Birth certificate (proof of 18 years of age) Valid AK driver's license (rural Alaskans without driver's license may contact our office) Background Check (showing no DUI in the past 3 years) Social security card DD214 (for veterans) $30.00 non refundable application fee Letters of recommendation certificates of training (optional) Note: pre indenture drug testing required Applications will be available for pick -up and turn -in August 27th through September 14, 2009 from 8:30 a.m. 11:30 a.m. and 1:30 p.m. 4:00 p.m. at: -Alaska Operating Engineers Employers Training Trust 4001 Denali St, Suite B Anchorage, AK 99503 1 -800- 460 -5044 www.aoeett.org The recruitment, ;election. employment, and training of Apprentices during their apprenticeship shall be without discrimination because of age. disability. ;ex, marital status. ,;lunges in marital status. prognaacr or parenthood, race. color, religion, national origin. Public Notice 1110 Page 1 of 2 Paladijczuk, Tracie L (DOA) From: Paladijczuk, Tracie L (DOA) Sent: Thursday, August 13, 2009 2:42 PM To: 'esipary@alaskanewspapers.com' Cc: Colombie, Jody J (DOA) Subject: RE: Public Notice Attachments: Notice of Public Hearing for Jody BBT.doc Everything looks perfect except one word, which was our error, not yours. I've changed it and highlighted in red. Otherwise please publish. Thank you! Tracie T -accie Tala.d jczuk Administrative Officer II AO CC (907) 793 From: Colombie, Jody J (DOA) Sent: Thursday, August 13, 2009 2:30 PM To: Paladijczuk, Trade L (DOA) Subject: FW: Public Notice From: Eliza Sipary [mailto :esipary@alaskanewspapers.com] Sent: Thursday, August 13, 2009 1:30 PM To: Colombie, Jody J (DOA) Subject: RE: Public Notice Good afternoon, your ad is attached please review it and let me know if it is approved to place in the paper. Eliza Sipary I Classified Legal Alaska Newspapers Inc. 301 Calista Court, Suite B I Anchorage, Alaska 99518 907.272.9830 main 907.348.2448 direct 907.272.9512 fax esipary@alaskanewspapers.com �t41ti, .m ita +4m'itmc}aagrn +wl.. }rr *tia+l.mrn K`srtx}'r<n, 1`+Bf:mm� uaiae.a.$txw..s -ro Please be advised that this transmittal may be a confidential communication or may otherwise be privileged or confidential. If you are not the 8/13/2009 Public Notice Page 2 of 2 intended recipient, please do not read, copy or re-transmit this communication. If you have received this communication in error, please notify us by responding to this e-mail, or by telephone (call us at 1-907-272-9830) and delete this message and any attachments. Thank you in advance for your cooperation and assistance. From: Colombie, Jody J (DOA) [mailto:jody.colombie@alaska.gov] Sent: Tuesday, August 11, 2009 4:06 PM To: Eliza Sipary Subject: Public Notice Eliza, Please find attached. Thank you. «Ad Order Bristol.doc» «Docket CO-09-26.doc» Jody J. Colombie Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 (907)793-1221 (phone) (907)276-7542 (fax) 8/13/2009 S Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Docket CO- 09 -26; The motion of the Alaska Oil and Gas Conservation Commission to require a drilling permit for any well proposed to be drilled to a depth greater than 1000 feet TVD, with the following described Townships and Ranges: T12S, R41,42,43,44,45,46,47W T13S, R41,42,43,44,45,46,47W T14S, R41,42,43,44,45,46,47W T15S, R41,42,43,44,45,46,47W T16S, R41,42,43,44,45,46,47W T17S, R41,42,43,44,45,46,47W T18S, R41,42,43,44,45,46,47W T19S, R41,42,43,44,45,46,47W T205, R41,42,43,44,45,46,47W T21S, R41,42,43,44,45,46,47W T22S, R41,42,43,44,45,46,47W T23S, R41,42,43,44,45,46,47W T24S, R41,42,43,44,45,46,47W T25S, R41,42,43,44,45,46,47W, Seward Meridian; all within the Bristol Bay Borough, Third Judicial District, State of Alaska. The Commission has tentatively scheduled a public hearing on this matter for September 23, 2009 at 9:00 a.m. at the Commission. To request that the hearing be held, a written request must be filed by 4:30 p.m. on September 4, 2009. If a request is not timely filed, the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold a hearing, call 907 793 -1221 after September 21, 2009. Written comments regarding the application may be submitted to the Commission, at 333 West 7 Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on September 22, 2009, except that, if a hearing is held, comments must be received no later than the conclusion of the hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, call 907 793 -1221 by September 18, 2009. Cathy P. Foerster, Commissioner Published 08/20/09 0 STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED ADVERTISING AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF AO- 03014006 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. August 11, 2009 R 333 W 7th Ave, Ste 100 Jody Colombie D Anchorage, AK 99501 PHONE PCN M 907 793 -1238 (9071 793 —1221 DATES ADVERTISEMENT REQUIRED: a Anchorage Daily News August 13, 2009 PO Box 149001 Anchorage, AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN g ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e- mailed Type of Advertisement Legal® Display Classified nOther (Specify) SEE ATTACHED SEND INVOICE IN TRIPLICATE AOGCC, 333 W. 7th Ave., Suite 100 PAGE 1 OF TOTAL OF TO Anchorage, AK 99501 2 PAGES ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS I VEN 2 ARD 02910 FIN AMOUNT SY CC PGM LC ACCT FY NMR I DIST uD 1 10 02140100 73451 2 REQUISITIONED B 7� DIVISION APPROVAL: 02 902 (Rev. 3/94) Publisher /Original Copies: Department Fiscal, Department, Receiving AO.FRM r Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Docket CO- 09 -26; The motion of the Alaska Oil and Gas Conservation Commission to require a drilling permit for any well proposed to the drilled to a depth greater than 1000 feet TVD, with the following described Townships and Ranges: T12S, R41,42,43,44,45,46,47W Ti 3 S, R41,42,43,44,45,46,47W T14S, R41,42,43,44,45,46,47W T15S, R41,42,43,44,45,46,47W T16S, R41,42,43,44,45,46,47W T17S, R41,42,43,44,45,46,47W T18S, R41,42,43,44,45,46,47W T19S, R41,42,43,44,45,46,47W T20S, R41,42,43,44,45,46,47W T21S, R41,42,43,44,45,46,47W T22S, R41,42,43,44,45,46,47W T23S, R41,42,43,44,45,46,47W T24S, R41,42,43,44,45,46,47W T25S, R41,42,43,44,45,46,47W, Seward Meridian; all within the Bristol Bay Borough, Third Judicial District, State of Alaska. The Commission has tentatively scheduled a public hearing on this matter for September 23, 2009 at 9:00 a.m. at the Commission. To request that the hearing be held, a written request must be filed by 4:30 p.m. on September 4, 2009. If a request is not timely filed, the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold a hearing, call 907 793 -1221 after September 21, 2009. Written comments regarding the application may be submitted to the Commission, at 333 West 7 Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on September 22, 2009, except that, if a hearing is held, comments must be received no later than the conclusion of the hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, call 907- 793 -1221 by September 18, 2009. 7 ,6;7 wivk k__ athy P. Foerster Com ssioner 8/13/2009 Anchorage Daily News Affidavit of Publication 1001 Northway Drive, Anchorage, AK 99508 PRICE OTHER OTHER OTHER GRAND AD DATE PM ACCOUNT PER DAY CHARGES CHARGES #2 CHARGES #3 TOTAL, 672943 08/13/2009 03014006 STOF0330 $192.56 $192.56 $0.00 $0.00 $0.00 $192.56 Notice of Public Hearing STATE OF ALASKA STATE OF ALASKA THIRD JUDICIAL DISTRICT Alaska OH and Gas Conservation Commiaeion Re: Docket CO- 09 -26; The motion of the Alrrska Shane Drew, being first duly sworn on oath deposes and says that Oil and Gas Conservation Commission to require a he is an advertising representative of the Anchorage Daily News drilling hermit f or any than 1000 0 e T the with the to g p g y a depth greater than 1000 feet TVD, with the a daily newspaper. following described Townships and Ranges: That said newspaper has been approved by the Third Judicial T12S, R41,42,43,44,45,46,47W Court, Anchorage, Alaska, and it now and has been published in T1S, R41,42,43,44,a5,46,47W g P T14S, R41,42,43,44,4s,46,47w the English language continually as a daily newspaper in T15S, R41,42,43,44,45,46,47W T16S, R41,42,43,44,45,46,47W Anchorage, Alaska, and it is now and during all said time was 117$, R41,42,43,44,45,46,47W T18S, R41,42,43,44,45,46,47W printed in an office maintained at the aforesaid place of T195, R41,42,43,44,45,46,47W publication of said newspaper. That the annexed is a copy of an MS, R41,42,43,44,45,46,47W T21S, R41,42,43,44,45,46,47W advertisement as it was published in regular issues (and not in rns, R41,4Z43,44,45,46,47W supplemental form) of said newspaper on the above dates and T23S, R41.42,43,44,45,46,47W su PP T24S, R41,42,43,44,45,46,47W that such newspaper was regularly distributed to its subscribers T25S, R41,42,43,44,45,46,47W, Seward Meridian; during all of said period. That the full amount of the fee charged all within the Bristol Bay Borough, Third Judicial for the foregoing publication is not in excess of the rate charged District, State of Alaska. private individuals. ar The e ommmis this matt tentatively to for i Se ptember scheduled ly a at 9:00 a.m, at Commission. To request that the heating be h eld, a written request must be filed by 4:30 p.m. on September 4, 2009.. Signed '1. if a request is not timely filed, the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold a hearing, call 907- 793 -1221 after September 21, 2009. Subscribed and sworn to me before this date: 1 Written comments regarding the application maybe AUG 1 9 2009 submitted to the Commission, at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received ceenppot later than 4:30 r p..m. on September c is omments must be X ec ed llater than me conclusion of the hearing. Notary Public in and for the State of Alaska. If, because of a disability, special accommodations y call may y b n to comment or attend the hearing, r, Third Division. Anchorage, Alaska by September 18, 2009. Cathy P. Foeister Commissioner MY COMMISSION EXPIRES: 1 24 A0413014006 Published: August 13, 2009 v•'�OTA/• 1- BLIC w Jlf) ll� 1 )11ON\ 'STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED O_03014006 ORDER AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF !1 ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7 Avenue. Suite 100 Jodv Colorable August 11.2009 Anchorage. AK 99501 PHONE PCN M 907 793 -1238 (9071 793 -1221 DATES ADVERTISEMENT REQUIRED: O T Anchorage Daily News August 13, 2009 PO Box 149001 Anchorage, AK 99514 ITS ENTIRETY ON THE E DA ES SHOWN. DOUBLE LINES MUST BE PRINTED IN SPECIAL INSTRUCTIONS: Account STOF0330 AFFIDAVIT OF PUBLICATION United states of America REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. who, being first duly sworn, according to law, says that he /she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2009, and thereafter for consecutive days, the last publication appearing on the day of 2009, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This day of 2009, Notary public for state of My commission expires Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Tuesday, August 11, 2009 4:01 PM Subject: Public Hearing Notice Attachments: Public Notice Docket No. CO- 09- 26.pdf 'ublic Notice Docket No. CO -09... cc: Ballantine, Tab A (LAW); 'Anna Raff; 'Barbara F Fullmer; 'bbritch'; 'Bill Walker; 'Brad McKim'; 'Brandon Gagnon'; 'Brian Gillespie'; 'Brian Havelock'; 'Brit Lively'; 'Bruce Webb'; 'buonoje'; 'Cammy Taylor; 'Cande.Brandow'; 'carol smyth'; caunderwood @marathonoil.com; 'Charles O'Donnell'; Chris Gay; 'Cliff Posey'; 'Dan Bross'; 'dapa'; 'Daryl J. Kleppin'; 'David Brown'; 'David Gorney'; David House; 'David L Boelens'; 'David Steingreaber'; 'ddonkel'; Deborah Jones; Decker, Paul L (DNR); 'doug_schultze'; 'Eric Lidji 'Evan Harness'; 'eyancy'; 'foms2 @mtaonline.net'; 'Francis S. Sommer; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin'; 'Gary Rogers'; 'Gary Schultz'; 'ghammons'; 'Gordon Pospisil'; 'Gregg Nady'; 'gspfoff; 'Hank Alford'; 'Harry Engel'; 'jah'; 'Janet D. Platt'; 'jejones'; 'Jerry Brady'; 'Jerry McCutcheon'; 'Jim Arlington'; 'Jim White'; 'Jim Winegarner'; 'Joe Nicks'; 'John Garing'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'John W Katz'; 'Jon Goltz'; Joseph Darrigo; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; knelson @petroleumnews.com; 'Krissell Crandall'; 'Kristin Elowe'; 'Laura Silliphant'; 'mail= akpratts @acsalaska.net; 'mail= foms @mtaonline.net'; 'Marilyn Crockett'; 'Mark Dalton'; 'Mark Hanley'; 'Mark Kovac'; 'Mark P. Worcester'; 'Marguerite kremer'; Melanie Brown; 'Michael Nelson'; 'Mike Bill'; 'Mike Jacobs'; 'Mike Mason'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mkm7200'; 'Nick W. Glover; NSK Problem Well Supv; NSU, ADW Well Integrity Engineer; 'Patty Alfaro'; 'Paul Winslow'; Pierce, Sandra M (JPO); Rader, Matthew W (DNR); Raj Nanvaan; 'Randall Kanady'; 'Randy L. Skillern'; 'Rob McWhorter'; rob.g.dragnich @exxonmobil.com; 'Robert Campbell'; 'Robert Province'; 'Rudy Brueggeman'; 'Scott Cranswick'; 'Shannon Donnelly'; 'Sharmaine Copeland'; Slemons, Jonne; 'Sondra Stewman'; 'Sonja Frankllin'; 'Stan Porhola'; 'stanekj'; 'Steve Lambert'; 'Steve Moothart'; 'Steven R. Rossberg'; 'tablerk'; 'Tamera Sheffield'; 'Temple Davidson'; Teresa Imm; 'Terrie Hubble'; Thompson, Nan G (DNR); 'Tim Lawlor'; 'Todd Durkee'; Tony Hopfinger; 'trmjrl'; 'Walter Featherly'; Walter Quay; 'Aaron Gluzman'; 'Dale Hoffman'; Fredric Grenier; 'Gary Orr'; Jerome Eggemeyer; 'Joe Longo'; 'Lamont Frazer'; Marc Kuck; 'Mary Aschoff; Maurizio Grandi; P Bates; Richard Garrard; 'Sandra Lemke'; 'Scott Nash'; 'Steve Virant'; 'Willem Vollenbrock'; 'William Van Dyke'; Woolf, Wendy C (DNR); Aubert, Winton G (DOA); Birnbaum, Alan J (LAW); Crisp, John H (DOA); Darlene Ramirez; Davies, Stephen F (DOA); Fleckenstein, Robert J (DOA); Foerster, Catherine P (DOA); Grimaldi, Louis R (DOA); Johnson, Elaine M (DOA); Jones, Jeffery B (DOA); Laasch, Linda K (DOA); Mahnken, Christine R (DOA); Maunder, Thomas E (DOA); McIver, Bren (DOA); McMains, Stephen E (DOA); Noble, Robert C (DOA); Norman, John K (DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Saltmarsh, Arthur C (DOA); Scheve, Charles M (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA) Jody J. Colombie Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 (907)793 -1221 (phone) (907)276 -7542 (fax) 1 Mary Jones David McCaleb Cindi Walker XTO Energy, Inc. IHS Energy Group Tesoro Refining and Marketing Co. Cartography GEPS Supply Distribution 810 Houston Street, Ste 2000 5333 Westheimer, Ste 100 300 Concord Plaza Drive Ft. Worth, TX 76102 -6298 Houston, TX 77056 San Antonio, TX 78216 George Vaught, Jr. Jerry Hodgden Richard Neahring PO Box 13557 Hodgden Oil Company NRG Associates Denver, CO 80201 -3557 408 18th Street President Golden, CO 80401 -2433 PO Box 1655 Colorado Springs, CO 80901 Mark Wedman Schlumberger Ciri Halliburton Drilling and Measurements Land Department 6900 Arctic Blvd. 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99502 Anchorage, AK 99503 Anchorage, AK 99503 Baker Oil Tools Ivan Gillian Jill Schneider 4730 Business Park Blvd., #44 9649 Musket Bell Cr. #5 US Geological Survey Anchorage, AK 99503 Anchorage, AK 99507 4200 University Dr. Anchorage, AK 99508 Gordon Severson Jack Hakkila Darwin Waldsmith 3201 Westmar Cr. PO Box 190083 PO Box 39309 Anchorage, AK 99508 -4336 Anchorage, AK 99519 Ninilchick, AK 99639 James Gibbs Kenai National Wildlife Refuge Penny Vadla PO Box 1597 Refuge Manager 399 West Riverview Avenue Soldotna, AK 99669 PO Box 2139 Soldotna, AK 99669 -7714 Soldotna, AK 99669 -2139 Richard Wagner Cliff Burglin Bernie Karl PO Box 60868 PO Box 70131 K &K Recycling Inc. Fairbanks, AK 99706 Fairbanks, AK 99707 PO Box 58055 Fairbanks, AK 99711 North Slope Borough PO Box 69 Barrow, AK 99723 I certify that on August 12, 2009, the following individuals received the Public Notice referring to Docket No. CO- 09 -26. Donna Vukich Naknek Electric Association, Inc. PO Box 118 Naknek, Alaska 99633 Corri Feige The Castle Mountain Group, Inc. PO Box 1208 19900 East Chickaloon Road Chickaloon, AK 99674 4t1 1 1 1 i i i i i i if SEAN PARNELL, GOVERNOR 550 WEST 7"' AVE, SUITE 800 DEPARTMENT OF NATURAL RESOURCES PHO NORAGE, ALASKA 99501 PHONE: (907) 269 -8800 FAX: (907) 269 -8943 DIVISION OF OIL AND GAS August 11, 2009 Naknek Electric Association, Inc. P.O. Box 118 Naknek, Alaska 99633 Attn: Ms. Donna Vukich And Corri Feige The Castle Mountain Group, Inc. P.O. Box 1208 19900 E. Chickaloon Rd. Chickaloon, AK 99674 RE: Amended Geothermal Permit to Drill 2215 Well Naknek -G #1 5 Miles NE of King Salmon, AK T 17S, R 44W, SM, Sec 14 E1 /2SW1 /4 Sec 23, NE1 /4NW1 /4 Dear Ms. Vukich: The Alaska Department of Natural Resources, Division of Oil and Gas, in accordance with Alaska Statute 38.05 and Alaska Statute 41.06 and Alaska Geothermal Regulations (11 AAC 87) grants authorization to conduct geothermal drilling operations described in the geothermal permit to drill application dated May 28, 2009, and amendments dated August 4, 2009, for the above referenced project as modified by the mitigation measures and stipulations in Attachment (1) [Final/Revised August 11, 2009] to this letter. Approval is contingent upon compliance with all mitigation measures and stipulations found in Attachment (1). The permit as approved includes technical changes in the application documents as noted in new figures Well NG -1 Pressure Gradient Vs. Depth, Figures 5, 6, 7, 8, dated August 4, 2009, and the Supplemental Discussion dated June 17, 2009. 1. A Status Report for the activities conducted under this approval must be filed with this office on May 1 and November 1 each year, from the date this approval is issued and until a Completion Report is filed with the Division. Failure to file in a timely manner may result in revocation of this permit approval. The completion report shall contain a statement describing clean-up activities conducted, the method of debris disposal, and a narrative description of known incidents of surface damage. "Develop, Conserve, and Enhance Natural Resources for Present and Future Alaskans." 411 Geothermal Permit to Drill 2215 August 11 2009 2. The applicant shall defend, indemnify and hold the State of Alaska harmless from and against any and all claims, damages, suits, losses, liabilities and expenses for injury to or death of persons and damage to or loss of property arising out of or in connection with the operations authorized under this approval and conducted by the applicant, its contractors, subcontractors and their employees. 3. Amendments and modifications to this approval require 15 -day advance notice and must be approved in writing by the Department of Natural Resources. 4. The applicant shall inform and ensure compliance with any and all conditions of this approval by its employees, agents and contractors, including subcontractors at any level. 5. The Commissioner of the Department of Natural Resources may require that an authorized representative be on -site during any operations conducted under this approval. This stipulation is required to ensure that the Divisions of Oil and Gas, and Mining, Land and Water meet their statutory responsibilities for monitoring authorized activities. 6. Rehabilitation shall be completed to the satisfaction of the Commissioner. 7. Notification. The applicant shall notify the Department of Natural Resources of all spills that must be reported under 18 AAC 75.300 under timelines of 18.AAC 75.300. All fires and explosions must be reported to DNR immediately. The DNR 24 hour spill report number is (907) 451 -2678; the fax number is (907) 451 -2751. The DEC oil spill report number is (800) 478 -9300. DNR and DEC shall be supplied with all follow -up incident reports. This drilling program as described is consistent with the Alaska Coastal Management Program and the Bristol Bay Coastal District Plan. This Geothermal Permit to Drill Approval is issued in accordance with Alaska Statute 38.05, Alaska Administrative Code 11 AAC 87, and Alaska Statute 41.06. A person affected by this decision may appeal or request reconsideration, in accordance with 11 AAC 02. Any appeal or request for reconsideration must be received by August 31st, 2009 and may be mailed or delivered to Tom Irwin, Commissioner, Department of Natural Resources, 550 W 7 Avenue, Suite 1400, Anchorage, Alaska 99501; faxed to 1- 907 269 -8918, or sent by electronic mail to dnr.appeals @alaska.gov. This decision takes effect immediately. If no appeal or request for reconsideration is filed by the appeal deadline, this decision becomes a final administrative order and decision of the department on the 31st day after issuance. An eligible person must first appeal this decision in accordance with 11AAC 02 before appealing this decision to Superior Court. A copy of 11 AAC 02 may be obtained from any regional information office of the Department of Natural Resources. This approval signifies only that the State of Alaska has no objection to the operations outlined in the plan of operations application. It does not constitute certification of any property right or "Develop, Conserve, and Enhance Natural Resources for Present and Future Alaskans." 2 Geothermal Permit to Drill 2215 August 11 2009 land status claimed by the applicant nor does it relieve the applicant of responsibility to obtain approvals or permits from other persons or governmental agencies that may also be required. All stipulations contained in the permit to drill remain in full force and effect for the duration of all related activities. If activities have not commenced, this approval expires on August 11 2011. Failure to comply with the terms and conditions outlined in the permit, Attachment (1) and this authorization may result in revocation of this Geothermal Permit to Drill. Data submittal address for ADNR Division of Oil and Gas: Corazon Manaois, Natural Resource Tech III Alaska Department of Natural Resources Division of Oil and Gas State of Alaska 550 W. 7`'' Avenue, Suite 800 Anchorage, AK 99501 -3510 Telephone: (907)269 8772 Fax: (907)269 -8942 Email: corazon.manaois @alaska.gov Data submittal address for AOGCC: Jody Colombie Alaska Oil and Gas Conservation Commission 333 W. 7 Ave., Ste 100 Anchorage, AK 99501 Telephone: (907) 276 -7542 Fax: (907) 276 -7542 Email: Jody.Colombie@alaska.gov alaska.gov S' 1 )ok Thomas E. Irwin Commissioner Attachment: Geothermal Permit to Drill and Attachment (1) [Final /Revised: August 11, 2009] ecc: Jodi Delgado Plikat DCOM Gary Mendivil, ADEC Michael Walton, Roy Ireland, ADNR DMLW, Water Resources Rod Combellick, ADNR DGGS Daniel T. Seamount Jr., Cathy Foerster, Winton Aubert, AOGCC Matt Rader, Jonne Slemons, Kevin Banks, Susan Browne, Jeanne Frazier, ADNR DO &G "Develop, Conserve, and Enhance Natural Resources for Present and Future Alaskans 3 STATE OF ALASKA ALASKA DIVISION OF OIL AND GAS PERMIT TO DRILL 11 AAC 87.030 and 11 MC 87.070 la. Type of Work: 1b. Current Well Class: Exploratory 5 Development Oil lc. Specify if well is proposed for Drill 0 Redrili Stratigraphic Test Service Development Gas Coalbed Methane Gas Hydrates Re -entry Multiple Zone Q Single Zone Shale Gas 2. Operator Name: 5. Bond: Blanket Single Well 11. Well Name and Number: Naknek Electric Association Bond No. Naknek -G /11 3. Address: 6. Proposed Depth: 12. Field /Pool(s): PO Box 118, Naknek, Alaska 99633 MD: 14,000 ft TVD: 14,000 ft 4a. Location of Well (Governmental Section): 7. Property Designation: Surface: 58.69902 N 156.50394 W T 17S R 44W Sec 14SW1/4 &Sec 23NW1/4 SM Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 8,000 to 10, 000 ft below ground level (vertical well) 8/1/2009 Total Depth: 9. Acres in Property: 14. Distance to Nearest Proposed 14,000 ft max (vertical well) 120 acres private property Property: 602 ft to E boundary 4b. Location of Well (State Base Plane Coordinates NAD 83): 10. KB Elevation above MSL: 275 feet 15. Distance to Nearest Well Open Surface: x- y- Zone- KB Elevation above GL: feet to Same Pool: 60 miles to SW 16. Deviated wells: Kickoff depth: feet 17. Maximum Anticipated Pressures in psig: Maximum Hole Angle: degrees Downhole: 5,000 psig Surface: 70 -150 psig 18. Casing Program: Specifications Top Setting Depth Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) 26" 22' 106.5 K -55 Buttress R -3 0 0 400 400 20" 18" 84 N -80 Buttress R -3 0 0 3000 3000 2,667 SKS 14.75" 11.75" 60 N -80 Buttress R -3 2700 2700 8000 8000 1,528 SKS 10.825" 8.625' 40 N -80 Buttress R -3 7700 7700 10000 10000 375 SKS Liner 6.625" 24 L- or N -80 Flush Joint R -3 9,800 9800 14,000 14000 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re -Entry Operations) 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 TVD Conductor /Structural Surface Intermediate Production Liner Perforation Depth MD (ft): 'Perforation Depth TVD (ft): 20. Attachments: Filing Fee BOP Sketch El Drilling Program Q Time v. Depth Plot 0 Shallow Hazard Analysis Property Plat Diverter Sketch Seabed Report Drilling Fluid Program 5 11 AAC 87 requirements 5 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Printed Name Title Signature Phone Date Division of 011 and Gas Use Only Permit to Drill API Number Permit Approval See cover letter for other Number. 2215 Date: requirements. If box Is checked, well may not be used to explore for, test, or produce coalbed methane, gas hydrates, or gas contained in shales: Conditions of approval: See Attachment 1, AS 41.06.010 -.060; 11 AAC 87 Samples req'd: Yes No Mud log req'd: Yes No Other. H measures: Yes No Directional svy req'd: Yes No D i -kIL" I 1 cj APPROVED BY THE DIVISION OF OIL AND GAS Permit No. 2215 DATE: V `n'1 0 5 t 1 l ZtJ© _4 COMMISSIONER Geothermal Permit to Drill 7 2009 This permit Is valid for 24 months from the date of approval (11 AAC 87.070(d)) Submit In Duplicate Permit No. 2215 Geothermal Permit to Drill Final/Revised: August 11, 2009 Attachment (1) Permit to Drill Mitigation Measures and Stipulations 1. The operator will drill the known interval of glacial gravels to 400 feet with a 30- inch flow nipple, them run and cement the 22 -inch casing to 400 feet. a. Install a 21 -1/4 inch, 2M blow out prevention equipment (BOP and drill out the 22 -inch casing to the flow collar. At this point, pressure test the casing and the 21 '/4 inch BOPE. Drill below the 22 -inch casing down to 3,000 feet. b. At 3,000 feet, set and cement the 16 -inch casing, install the 16' /a inch, 5M BOPE, test the casing and BOPE, and proceed to drill below the 16 -inch casing to 8,000 feet. c. At 8,000 feet, the operator will provide well and drilling operation information to ADNR to acquire approval to continue drilling deeper than 8,000 feet depth. Permit stipulations for continued drilling and the appropriate casing program will accompany the approval for drilling at that time. 2. The BOPE equipment shall adhere to the following conditions: a. A 30 -inch flow nipple with no BOPE from the ground surface to 400 feet depth. b. A 21 '/a inch x 2,000 psi BOPE will be used for drilling below the 22 -inch casing from 400 feet to 3,000 feet depth. c. A 16 3 /4 inch x 5,000 psi BOPE will be used for drilling below the 16 -inch casing from 3,000 feet to 8,000 feet. d. At 8,000 feet, the operator will provide well and drilling operation information to ADNR to acquire approval to continue drilling deeper than 8,000 feet depth. Permit stipulations for continued drilling and the BOPE operations will accompany the approval for drilling at that time. 3. The BOPE function pressure testing procedures will be carried out as outlined below: a. After cementing each casing string (22 -inch at 400 feet, 16 -inch at 3,000 feet), the corresponding BOPE stack for each stage will be installed. For each case, the BOPE stack and casing will be pressure tested after drilling of the cement below the float collar and before drilling off the float shoe. The casing testing pressures will be as follows: 1 Permit No. 2215 Geothermal Permit to Drill Final/Revised: August 11, 2009 continued, 1.) 22 -inch 400 psi 2.) 16 -inch —1,000 psi 3 3.) 11 3 /4 inch —1,500 psi (future) 4.) 8 5/8 inch 2,500 psi (future) b. Every seven days, the BOPE will be function pressure tested per AOGCC regulations against a testing packer. The BOPE function test pressures will be as follows: 1.) 21 -inch x 2M 2,000 psi 2.) 16 a 6 -inch x 5M 3,000 psi c. For drilling deeper than 8,000 feet, prior approval from ADNR is required. Permit stipulations for continued drilling and the BOPE testing procedures will accompany the approval at that time. 4. Provide the ADNR and AOGCC with 48 hours advance notice of rig up and each BOPE function pressure test, so that the ADNR/AOGCC representative drilling inspector can inspect the rig or witness the test. 5. All casings will be cemented to surface. Hung casing strings (liners) will be cemented throughout the linerlap. Fresh water aquifers shall be completely isolated from contacting any geothermal or drilling fluids. 6. The shallower water supply well, with an estimated depth of 250 feet (the development well), to be drilled during the construction phase, falls within the standard reporting requirements, and a full well log is therefore required. Standard P g q g q water well construction practices are required so as to prevent inadvertent water flow between lithologic layers. The well log will be submitted to the Division of Oil and Gas and the ADNR Division of Mining, Land and Water, Water Resources section upon completion of the well. 7. If water in the geothermal exploration well does not meet the definition of geothermal fluid as defined in AS 41.06.060 (2), it is subject to the statutes and related regulations of the Alaska Water Use Act. 8. If and when a water right application is filed for the geothermal exploration well, a full .pdf or other electronic well log is to be attached to the water rights application 2 Permit No. 2215 Geothermal Permit to Drill Final/Revised: August 11, 2009 for reference purposes should future review become necessary. The Well Log Tracking System (WELTS) program requirements would be satisfied with a well log not exceeding 999 ft in depth, with a notification that the actual depth exceeds this limit and a statement as to the final depth reached. 9. The operator must report a release of any oil or hazardous substance in accordance with Alaska Department of Environmental Conservation standard reporting guidelines. These are the types of oil and hazardous substances that may be on site. Chrome -free ligno- sulfonate lignite products Circulating fluid (must be maintained at a pH of approximately 10) Amine inhibitor to mitigate high corrosion rates Drilling muds (bentonite, caustic soda, lime) (described in Appendix A) Fuel for Well pad (generator facility, fuel for man camp, any hydraulic fluids for equipment and machinery, support vehicles) Cement used in drilling operation 13. Records 11 AAC 87.110 (a) An operator of a well shall keep detailed and accurate drilling and well logs, core records, production and inspection records, and, if taken, appropriately bagged and identified samples of drill cuttings. (b) The logs for geothermal wells must show the lithologic characteristics and depth of formations encountered; the depths and temperatures of water bearing and steam- bearing strata; any data obtained about the temperatures, chemical compositions and physical characteristics of fluids encountered; the amount, size, and weight of casing used; and the size, type, and density of perforated intervals. (c) The temperature log must be obtained by either continuous temperature logging or by a comprehensive multiple point temperature survey. (d) The core record must show the depth and character of cores obtained, as determined from the study and analysis of the core. (e) The drilling log must describe in chronological order and on a daily basis all significant operations carried out and equipment used during all phases of drilling. The results of testing blowout prevention equipment must be recorded on the 3 Permit No. 2215 Geothermal Permit to Drill Final/Revised: August 11, 2009 drilling log and the blowout prevention test form provided. A monthly report of drilling and workover operations which summarizes the daily record of well operation during the previous month must be filed with the department on or before the last day of each month. (f) Records listed in (a) (e) of this section must be kept at the drill site or local office of the operator, available for inspection at reasonable times by the commissioner, and must be submitted to the department with the completion report required in 11 AAC 87.190. Records and reports shall be kept in the state for five years after the date of well abandonment. (g) Monthly statements required by 11 AAC 87.210, and records of the inspections conducted under 11 AAC 87.250, for the preceding calendar month, must be filed with the department by the last day of each calendar month. (h) Any information filed by the operator with the state in connection with this permit to drill will be available at all times for the use of the state and its agents and contracting personnel. (i) Reporting of geological, geophysical, and engineering data will be kept confidential for 24 months after the completion of the well. A waiver to extend the confidentiality may be requested from ADNR by the operator. AS 38.05, Alaska Land Act. (j) All provisions of AS 41.06 and 11 AAC 87 apply unless otherwise directed by ADNR. (j) This permit to drill does not relieve the applicant of responsibility to obtain approvals or permits from other persons or governmental agencies that may also be required Mailing addresses for well and drilling information submittals for this permit are provided in this permit. 4 Page 1 of 1 'Colombie, Jody J (DOA) From: Browne, Susan G (DNR) Sent: Tuesday, August 11, 2009 3:37 PM To: Browne, Susan G (DNR); 'The Castle Mountain Group, Inc'; 'dvukich @nea.coop' Cc: Slemons, Jonne D (DNR); Banks, Kevin R (DNR); Rader, Matthew W (DNR); Delgado Plikat, Jodi L (DNR); Combellick, Rod A (DNR); Swenson, Robert F (DNR); Mendivil, Gary A (DEC); Walton, Michael L (DNR); Ireland, Roy R W (DNR); Seamount, Dan T (DOA); Foerster, Catherine P (DOA); Aubert, Winton G (DOA); Frazier, Jeanne M (DNR); Hartz, John D (DNR); Houle, Julie (DNR); Lefebvre, Richard A (DNR); Peterson, Shaun (DNR); Norman, John K (DOA); Colombie, Jody J (DOA); Ballantine, Tab A (LAW) Subject: Amended Approval for the Geothermal Permit to Drill Naknek Electric Association Importance: High Attachments: A2215 Naknek Electric Assn ADNR Geothermal Permit to Drill Issued 8- 11- 09.pdf Dear Ms. Vukich: Attached is the ADNR Division of Oil and Gas amended approval for the geothermal permit to drill for Naknek Electric Association, dated August 11, 2009. Please note the permit stipulations and measures that condition this approval. Please contact Ms. Jonne Slemons, Petroleum Land Manager 907 269 -8775, or myself with any additional questions. Very Sincerely, Susan G. Browne Susan G. Browne, C.P.G. Permitting, Division of Oil and Gas Department of Natural Resources Ph: 907 -269 -8803 Fax: 907 -269 -3484 susan.g. browne@alaska, gov_ 8/11/2009