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Home My WebLink AboutDIO 008• • Image Project Order File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. Z~ ~ Order File Identifier Organizing (done) RESCAN ^ Color Items: ^ Greyscale Items: ^ Poor Quality Originals ^ Other: ^ Other:: ^ Logs of various kinds: NOTES: BY: Maria Projecf Proofing BY: c.. Maria Scanning Preparation BY: Maria x 30 = + =TOTAL PAGES ~~~~/~ (Count does not include cover sheet) ,/ Date: ~ /s/ r Production Scanning Stage 7 Page Count from Scanned File: (Count does include cover sheet) Page Count Matches Number in Scanning Pre aration: _~~ES NO BY: Maria Date: ~ ~q /O /s/ I/I/~ Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO Y {{ BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. II I II iI Il I II II I I III ReScanned BY: Maria Z Date: /s/ Comments about this file: Date: ,.o-,a~ Illllllllllllllllil , ae,~,~„e~ea IIIIIIIIIAIIIIIIII DIGITAL DATA OVERSIZED (Scannable) ^ Diskettes, No. ^ Ma s: ^ Other, No/Type: they Items Scannable by a Large Scanner ~,~ OVERSIZED (Non-Scannable) ~1P .,iiumiiui~ii~P Date: o v~~e~~e< iiiiuiiiiiiuiiii P 10/6!2005 Orders File Cover Page.doc INDEX DISPOSAL INJECTION ORDER NO. 8 Beaver Creek Unit No. 3 Beaver Creek Unit 1. March 15, 1993 2. April 1, 1993 3. October 7, 1999 4. October 22, 1999 5. September 27, 2004 6.------------------------ Marathon's application for underground injection Notice of Hearing and Affidavit of Publication Marathon's letter re: Authorization to inject produced water from the Wolf Lake Development area into Beaver Creek Unit I injection/disposal wells AOGCC's response to Marathon's 10/7/99 letter Proposal to amend underground injection order Email from Operator INDEX DISPOSAL INJECTION ORDER NO. 8 • FILE CHECKED FOR CONFIDENTIAL MATERIALS ON JANUARY 9, 2015 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 Porcupine Drive Anchorage, Alaska 99501-3192 Re: THE REQUEST OF MARATHON ) Disposal Injection Order No. 8 OIL COMPANY to dispose of Class II ) oil field fluids by underground injection ) Beaver Creek Unit No. 3 in the Beaver Creek Unit No. 3 well. ) Beaver Creek Unit May 13, 1993 IT APPEARING THAT: Marathon Oil Company by correspondence dated March 15, 1993 made application to the Alaska Oil and Gas Conservation Commission (Commission) for authorization to inject Class II waste fluids into the Beaver Creek Unit No. 3 well. 2. Notice of an opportunity for public hearing was published in the Anchorage Daily News on April 1, 1993. No protest or request for a public hearing was timely filed. FINDINGS: No wells penetrate the proposed injection zone within a one -quarter mile radius of the Beaver Creek Unit No. 3 well (BCU 3). 2. U.S. Bureau of Land Management and U.S. Fish and Wildlife Service are surface owners within a one -quarter mile radius of the BCU 3 and have been duly notified of the proposed plans. Marathon Oil Company is the operator of the Beaver Creek Unit, no other operators are present within a one -quarter mile radius of the proposed BCU 3 disposal injection project. 4. BCU 3 was drilled to a total depth of 6387 feet measured depth. The Sterling Formation, consisting of Pliocene age, massively bedded, predominately coarse grained, fluvial deposits is present within BCU 3 from approximately 2300 feet measured depth to total depth. Disposal Injection Ord . o. 8 May 13, 1993 Page 2 6. The proposed disposal injection zone consists of two permeable sandstones with calculated porosities of approximately thirty (30) percent which are present from 5804 to 5945 feet measured depth (4825 to 4938 feet subsea) in BCU 3 . 7. All aquifers JD <10,000ppm and >3000ppm) at depths greater than 1650 feet below ground level and extending one -quarter mile beyond the boundaries of the Beaver Creek Field are exempt pursuant to 40 CFR 147.102(b)(1)(ii). 8. Approximately 235 true vertical feet of impermeable confining zones composed predominately of claystones with minor interbedded coals and discontinuous siltstones separate the top of the proposed disposal injection zone in BCU 3 from the base of the non-exempt USDWs in the Beaver Creek Field. 9. Thirteen and 3/8-inch surface casing was set at 533 feet MD, cemented to surface and tested to 1000 psi. Intermediate 9 5/8-inch casing was set at 1569 feet MD, cemented to surface and tested to 1000 psi. The 7-inch production casing was set at 6380 feet MD, cemented to approximately 3300 feet MD and tested to 1000 psi. 10. Analysis of cement bond logs indicate casing strings have adequate cement behind casing to prevent vertical migration of disposal fluids. 11. The operator estimates the disposal rate will average 1000 B/D with a maximum up to 7200 B/D during drilling operations. 12. Average surface operating pressure is estimated to be 1600 psi during water disposal operations. Maximum surface disposal pressure will be less than 5000 psi, the maximum pressure rating of the casing head. 13. Results of a three-dimensional hydraulic fracture simulator run of a worst case scenario (i.e., injection pressures exceeding the anticipated formation parting pressure and using volumes of drill cuttings which surpass those expected for the BCU 3 project) indicate induced fractures will not propagate through the confining zone. 14. A casing mechanical integrity test will be performed in accordance with 20 AAC 25.412 prior to initiation of disposal operations. 15. The operator plans to monitor the 7-inch casing by 3 1/2-inch tubing annulus pressure daily and report the results on the Monthly Injection Report. Disposal Injection Ord. o. 8 May 13, 1993 Page 3 CONCLUSIONS: The approval of disposal injection operations at BCU 3 will not jeopardize correlative rights. 2. Permeable strata which reasonably can be expected to accept injected fluids at pressures less than the fracture pressure of the confining strata are present in the interval from 5804 to 5945 feet measured depth in BCU 3. Adequate confining zones exist above the receiving zone which assure injected fluids will not endanger USDWs. 4. Cement bond logs indicate the casing strings are adequately cemented to prevent vertical migration of disposal fluids behind casing. Disposal fluids injected at BCU 3 will consist exclusively of Class II waste generated from drilling, completion and production operations. 6. BCU 3 was constructed in conformance with the requirements of 20 AAC 25.412. 7. Well integrity must be demonstrated in accordance with 20 AAC 25.412 prior to initiation of disposal operations in BCU 3. Operational parameters will be monitored routinely at BCU 3 for disclosure of possible abnormalities in operating conditions. NOW, THEREFORE, IT IS ORDERED THAT: Rule 1 Authorized Injection Strata for Disposal. Class II oil field fluids may be injected in conformance with Alaska Administrative Code Title 20, Chapter 25, for the purpose of disposal into the Sterling Formation interval from 5804 to 5945 feet measured depth in BCU 3. Rule 2 Demonstration of Tubing/Casing Annulus Mechanical Integrity Prior to initiating injection and at least once every four years thereafter, the tubing/casing annulus must be tested for mechanical integrity in accordance with 20 AAC 25.412. Disposal Injection Ord May 13, 1993 Page 4 • Rule 3 Well Integrity Failure Whenever operating pressure observations or pressure tests indicate pressure communication or leakage of any casing, tubing or packer, the operator must notify the Commission on the first working day following the observation, obtain Commission approval of a plan for corrective action and obtain Commission approval to continue injection. Rule 4 Step Rate Test Prior to sustained injection the operator shall perform a step rate test to determine a formation fracture gradient and optimum injection pressure. Rule 5 Administrative Action Upon request, the Commission may administratively revise and reissue this order upon proper showing that any changes are based on sound engineering practices and will not result in an increased risk of fluid movement into an underground source of drinking water. DONE at Anchorage, Alaska and dated May 13, 1993. 0� r 2 0 NV, lotq Cow David V�j�Tino stor% Chairman Alaska ftand Gas Vonservation Commission Russell A. Douglass, Comidission Alaska Oil and Gas Conservation Commission R [Fwd: Re: [Fwd: AOGCC Proposed WI Lan : for Injectors]] Subject: [Fwd: Re: [Fwd: AOGCC Proposed WI Language for Injectors]] From: Winton Aubert <winton_aubert@admin.state. ak.us> Date: Thu, 28 Oct 2004 09:48:53 -0800 To: Jody J Colombie<jody_colombie@admin.state.ak.us> This is part of the record for the Nov. 4 hearing. WGA -------- Original Message -------- Subject: Re: [Fwd: AOGCC Proposed WI Language for Injectors] Date: Thu, 28 Oct 2004 09:41:55 -0800 From: James Regg <jim regg@admin.state.ak.us> Organization: State of Alaska To: Winton Aubert <winton aubert@admin.state.ak.us> References:<41812422.8080604@admin.state.ak.us> These should be provided to Jody as part of public review record Jim Winton Aubert wrote: FYI. -------- Original Message -------- Subject: AOGCC Proposed WI Language for Injectors Date: Tue, 19 Oct 2004 13:49:33 -0800 From: Engel, Harry R <Enge1HR@BP.com> To: winton aubert@admin.state.ak.us Winton... ' Here are the comments we discussed. Harry *From: * NSU, ADW Well Integrity Engineer *Sent: * Friday, October 15, 2004 10:43 PM *To: * Rossberg, R Steven; Engel, Harry R; Cismoski, Doug A; NSU, ADW Well Operations Supervisor *Cc: * Mielke, Robert L.; Reeves, Donald F; Dube, Anna T; NSU, ADW Well Integrity Engineer *Subject: * AOGCC Proposed WI Language for Injectors Hi Guys. John McMullen sent this to us, it's an order proposed by the AOGCC to replace the well integrity related language in the current Area Injection Orders. Listed below are comments, not sure who is coordinating getting these in front of Winton/Jim. Overall, looks okay from an Operations perspective. We do have a few comments, but could live with the current proposed language. Note the proposed public hearing date is November 4. The following language does not reflect what the slope AOGCC inspectors are currently requiring us to do: "The mechanical integrity of an injection well must be demonstrated before injection begins, at least once every four years thereafter (except at least once every two years in the case of a slurry injection well), and_* before*_** [Fwd: Re: [Fwd: AOGCC Proposed WI Lan for Injectors]] returning a well to service following a workover affecting mechanical integrity." After a workover, the slope AOGCC inspectors want the well warmed up and on stable injection, then we conduct the AOGCC witnessed MITIA. This language requires the AOGCC witnessed MITIA before starting injection, which we are doing on the rig after the tubing is run. Just trying to keep language consistent with the field practice. If "after" was substituted for "before", it would reflect current AOGCC practices. It would be helpful if the following language required reporting by the "next working day" rather than "immediately", due to weekends, holidays, etc. We like to confer with the APE and get a plan finalized, this may prevent us from doing all the investigating we like to do before talking with the AOGCC. "Whenever any pressure communication, leakage or lack of injection zone isolation is indicated by injection rate, operating pressure observation, test, survey, log, or other evidence, the operator shall_* immediately*_** notify the Commission" This section could use some help/wordsmithing: "A monthly report of daily tubing and casing annuli pressures and injection rates must be provided to the Commission for all injection wells indicating well integrity failure or lack of injection zone isolation." Report content requirements are clear, but it's a little unclear what triggers a well to be included on this monthly report. Is it wells that have been reported to the AOGCC, are currently on-line and are going through the Administrative Action process? A proposed re -write would be: "All active injection wells with well integrity failure or lack of injection zone isolation shall have the following information reported monthly to the Commission: daily tubing and casing annuli pressures, daily injection rates." Requirements for the period between when a well failure is reported and when an administrative action is approved are unclear. This document states "the operator shall immediately notify the Commission and submit a plan of corrective action on a Form 10-403". If we don't plan to do any corrective action, but to pursue an AA, does a 10-403 need to be submitted? The AOGCC has stated they don't consider an AA as "corrective action". Let me know if you have any questions. Joe -----Original Message ----- From: Kleppin, Daryl J Sent: Wednesday, September 29, 2004 1:37 PM To: Townsend, Monte A; Digert, Scott A; Denis, John R (ANC); Miller, Mike E; McMullen, John C Subject: FW: Public Notices FYI -----Original Message----- ] From: Jody Colombie [ mailto:jody colombie@admin.state.ak.us_] Sent: Wednesday, September 29, 2004 1:01 PM j Subject: Public Notices Please find the attached Notice and Attachment for the proposed amendment of underground injection orders and the Public Notice Happy Valley #10. Jody Colombie <<Mechanical Integrity proposal.ZIP>> <<Mechanical Integrity of Wells Notice.doc>> I 2 of 3 10/28/2004 11:09 AM 5 71- �7y FRANK N. MURKOWSKI, GOVERNOR ATA �7tNA OIL AD GA .S 333 W. 7"' AVENUE, SUITE 100 CONSERVATION COMUSSION ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 September 27, 2004 Proposals to Amend Underground Injection Orders to Incorporate Consistent Language Addressing the Mechanical Integrity of Wells The Alaska Oil and Gas Conservation Commission ("Commission"), on its own motion, proposes to amend the rules addressing mechanical integrity of wells in all existing area injection orders, storage injection orders, enhanced recovery injection orders, and disposal injection orders. There are numerous different versions of wording used for each of the rules that create confusion and inconsistent implementation of well integrity requirements for injection wells when pressure communication or leakage is indicated. In several injection orders, there are no rules addressing requirements for notification and well disposition when a well integrity failure is identified. Wording used for the administrative approval rule in injection orders is similarly inconsistent. The Commission proposes these three rules as replacements in all injection orders: Demonstration of Mechanical Integrity The mechanical integrity of an injection well must be demonstrated before injection begins, at least once every four years thereafter (except at least once every two years in the case of a slurry injection well), and before returning a well to service following a workover affecting mechanical integrity. Unless an alternate means is approved by the Commission, mechanical integrity must be demonstrated by a tubing/casing annulus pressure test using a surface pressure of 1500 psi or 0.25 psi/ft multiplied by the vertical depth of the packer, whichever is greater, that shows stabilizing pressure and does not change more than 10 percent during a 30 minute period. The Commission must be notified at least 24 hours in advance to enable a representative to witness mechanical integrity tests. Well Inteizrity Failure and Confinement Whenever any pressure communication, leakage or lack of injection zone isolation is indicated by injection rate, operating pressure observation, test, survey, log, or other evidence, the operator shall immediately notify the Commission and submit a plan of corrective action on a Form 10-403 for Commission approval. The operator shall immediately shut in the well if continued operation would be unsafe or would threaten contamination of freshwater, or if so directed by the Commission. A monthly report of daily tubing and casing annuli pressures and injection rates must be provided to the Commission for all injection wells indicating well integrity failure or lack of injection zone isolation. Administrative Actions Unless notice and public hearing is otherwise required, the Commission may administratively waive or amend any rule stated above as long as the change does not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in fluid movement outside of the authorized injection zone. The following table identifies the specific rules affected by the rewrite. Affected Rules Injection Order "Demonstration of "Well Integrity "Administrative Mechanical Failure and Action" Integrity" Confinement" Area Injection Orders AIO 1 — Duck Island Unit 6 7 9 AIO 2B — Kuparuk River Unit; Kuparuk River, Tabasco, Ugnu, West Sak 6 7 9 Fields AIO 3 — Prudhoe Bay Unit; 6 7 9 Western Operating Area AID 4C — Prudhoe Bay Unit; Eastern Operating Area 6 7 9 AIO 5 — Trading Bay Unit; McArthur River Field 6 6 9 AIO 6 — Granite Point Field; 6 7 9 Northern Portion AIO 7 — Middle Ground 6 7 9 Shoal; Northern Portion AIO 8 — Middle Ground 6 7 9 Shoal; Southern Portion AIO 9 — Middle Ground 6 7 9 Shoal; Central Portion AIO 1 OB —Milne Point Unit; Schrader Bluff, Sag River, 4 5 8 Kuparuk River Pools AIO 11 — Granite Point 5 6 8 Field; Southern Portion AIO 12 — Trading Bay Field; 5 6 8 Southern Portion AIO 13A — Swanson River 6 7 9 Unit AIO 14A — Prudhoe Bay 4 5 8 Unit; Niakuk Oil Pool AIO 15 — West McArthur 5 6 9 Affected Rules Injection Order "Demonstration of "Well Integrity "Administrative Mechanical Failure and Action" Integrity" Confinement" River Unit AIO 16 — Kuparuk River Unit; Tarn Oil Pool 6 7 10 AIO 17 — Badami Unit 5 6 8 AIO 18A — Colville River Unit; Alpine Oil Pool 6 7 11 AIO 19 — Duck Island Unit; Eider Oil Pool 5 6 9 AIO 20 — Prudhoe Bay Unit; Midnight Sun Oil Pool 5 6 9 AIO 21 — Kuparuk River Unit; Meltwater Oil Pool 4 No rule 6 AIO 22C — Prudhoe Bay Unit; Aurora Oil Pool 5 No rule 8 AIO 23 — Northstar Unit 5 6 9 AIO 24 — Prudhoe Bay Unit; Borealis Oil Pool 5 No rule 9 AIO 25 — Prudhoe Bay Unit; Polaris Oil Pool 6 g 13 AIO 26 — Prudhoe Bay Unit; Orion Oil Pool 6 No rule 13 Disposal Injection Orders DIO 1 — Kenai Unit; KU WD-1 No rule No rule No rule DIO 2 — Kenai Unit; KU 14- No rule No rule No rule 4 DIO 3 — Beluga River Gas No rule No rule No rule Field; BR WD-1 DIO 4 — Beaver Creek Unit; No rule No rule No rule BC-2 DIO 5 — Barrow Gas Field; No rule No rule No rule South Barrow #5 DIO 6 — Lewis River Gas No rule No rule 3 Field; WD-1 DIO 7 — West McArthur 2 3 5 River Unit; WMRU D-1 DIO 8 — Beaver Creek Unit; 2 3 5 BC-3 DIO 9 — Kenai Unit; KU 11- 2 3 4 17 DIO 10 —Granite Point 2 3 5 Field; GP 44-11 Affected Rules Injection Order "Demonstration of "Well Integrity "Administrative Mechanical Failure and Action" Integrity" Confinement" DIO 11 — Kenai Unit; KU 24-7 2 3 4 DIO 12 — Badami Unit; WD- 1, WD-2 2 3 5 DIO 13 — North Trading Bay Unit; S-4 2 3 6 DIO 14 — Houston Gas Field; Well #3 2 3 5 DIO 15 — North Trading Bay Unit; S-5 2 3 Rule not numbered DIO 16 — West McArthur River Unit; WMRU 4D 2 3 5 DIO 17 — North Cook Inlet Unit; NCIU A-12 2 3 6 DIO 19 — Granite Point Field; W. Granite Point State 3 4 6 17587 #3 DIO 20 — Pioneer Unit; Well 1702-15DA WDW 3 4 6 DIO 21 — Flaxman Island; Alaska State A-2 3 4 7 DIO 22 — Redoubt Unit; RU D1 3 No rule 6 DIO 23 — Ivan River Unit; IRU 14-31 No rule No rule 6 DIO 24 — Nicolai Creek Unit; NCU #5 Order expired DIO 25 — Sterling Unit; SU 43-9 3 4 7 DIO 26 — Kustatan Field; KF1 3 4 7 Storage Injection Orders SIO 1 — Prudhoe Bay Unit, No rule No rule No rule Point McIntyre Field #6 SIO 2A— Swanson River 2 No rule 6 Unit; KGSF # 1 SIO 3 — Swanson River Unit; 2 No rule 7 KGSF #2 Enhanced Recovery Injection Orders EIO 1 — Prudhoe Bay Unit; Prudhoe Bay Field, Schrader No rule No rule 8 Bluff Formation Well V-105 Injection Order "Demonstration of Mechanical Affected Rules "Well Integrity Failure and Confinement" "Administrative Action" EIO 2— Redoubt Unit; RU-6 I 5 1 R i a 1 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving AOTRM STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED A 0�02 514016 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF A ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7`h Avenue, Suite 100 ° Anchorage, AK 99501 PHONE Pc "I 907-793-1221 DATES ADVERTISEMENT REQUIRED: o Journal of Commerce October 3, 2004 301 Arctic Slope Ave #350 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 2004, and thereafter for consecutive days, the last publication appearing on the day of . 2004, 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 2004, Notary public for state of My commission expires Public Notices Subject: Public Notices From.: Jody Colombie <Jody_colombie@admin.state. ak.us> Date: Wed, 29 Sep 2004 13:01:04 -0800 To: undisclosed -recipients:; BCC: Cynthia B Mciver <bren mciver@admin.state.ak.us>, Angela Webb <angie_webb@admin.state. ak.us>, Robert E Mintz <robert_mintz@law.state.ak.us>, Christine Hansen <c.hansen@ogcc.state.ok.us>, Terrie Hubble <hubbletl@p.com>, Sondra Stewman <StewmaSD@BP.com>, Scott & Cammy Taylor <staylor@alaska.net>, stanekj <stanekj@unocal.com>, ecolaw <ecolaw@trustees.org>, roseragsdale <roseragsdale@gci.net>, trmjrl <trmjrl@aol.com>, jbriddle <jbriddle@marathonoil.com>, rockhill <rockhill@aoga.org>, shaneg <shaneg@evergreengas.com>, jdarlington <jdarlington@forestoil.com>, nelson <knelson@petroleumnews.com>, cboddy <cboddy@usibeili.com>, Mark Dalton <mark.dalton@hdrinc.com>, Shannon Donnelly<shannon.donnelly@conocophillips.corn>, "Mark P. Worcester" <mark.p.worcester@conocophillips.com>, "Jerry C. Dethlefs" <jerry.c.dethlefs@conocophillips.com>, Bob <bob@inletkeeper.org>, wdv <wdv@dnr. state. ak.us>, tjr <tjr@dnr.state.ak.us>, bbritch <bbritch@alaska.net>, mjnelson <mjnelson@purvingertz.com>, Charles O'Donnell <charles.o'donnell@veco.com>, "Randy L. Skillern" <SkilleRL@BP.com>, "Deborah J. Jones" <JonesD6@BP.com>, "Paul G. Hyatt" <hyattpg@BP.com>, "Steven R. Rossberg" <RossbeRS@BP.eom>, Lois <Iois@inletkeeper.org>, Dan Bross <kuacnews@kuac.org>, Gordon Pospisil <PospisG@BP.com>, "Francis S. Sommer" <SommerFS@BP.com>, Mikel Schultz <Mikel.Schultz@BP.com>, "Nick W. Glover" <GloverNW@BP.com>, "Daryl J. Kleppin" <KleppiDE@BP.com>, "Janet D. Platt" <PlattJD@BP.com>, "Rosanne M. Jacobsen" <JacobsRM@BP.com>, ddonkel <ddonkel@cfl.rr.com>, Collins Mount <collins_mount@revenue. state.ak.us>, mckay <mckay@gci.net>, Barbara F Fullmer <barbara.ffullmer@conocophillips.com>, bocastwf <bocastwf@bp.com>, Charles Barker . <barker@usgs.gov>, doug_schultze <doug schultze@xtoenergy.com>, Hank Alford <hank.alford@exxonmobil.com>, Mark Kovac <yesno I @gci.net>, gspfoff <gspfoff@aurorapower.com>, Gregg Nady <gregg.nady@shell.com>, Fred Steece <fred.steece@state.sd.us>, rcrotty <rcrotty@ch2m.com>, jejones <jejones@aurorapower.com>, dapa <dapa@alaska.net>, jroderick <jroderick@gci.net>, eyancy <eyancy@seal-tite.net>, "James M. Ruud"<james.m.ruud@conocophillips.com>, Brit Lively <mapalaska@ak.net>, jah <jah@dnr.state.ak.us>, Kurt E Olson <kurt_olson@legis.state.ak.us>, buonoje <buonoje@bp.com>, Mark Hanley <mark hanley@anadarko.com>, loren_leman <loren_leman@gov.state.ak.us>, Julie Houle <julie_houle@dnr.state. ak.us>, John W Katz <jwkatz@sso.org>, Suzan J Hill <suzan_hill@dec.state.ak.us>, tablerk <tablerk@unocal.com>, Brady <brady@aoga.org>, Brian Havelock <beh@dnr. state. ak.us>, bpopp <bpopp@borough.kenai.ak.us>, Jim White <jimwhite@satx.rr.com>, "John S. Haworth"<john.s.haworth@exxonmobil.com>, marty <marty@rkindustrial.com>, ghammons <ghammons@aol.com>, rmclean <rmclean@pobox.alaska.net>, mkm7200 <mkm7200@aol.com>, Brian Gillespie <ifbmg@uaa.alaska.edu>, David L Boelens <dboelens@aurorapower.com>, Todd Durkee <TDURKEE@KMG.com>, Gary Schultz <garyschultz@dnr.state.ak.us>, Wayne Rancier <RANCIER@petro-canada.ca>, Bill Miller <Bill_Miller@xtoalaska.co�m>, Brandon Gagnon <bgagnon@brenalaw.com>, Paul Winslow <pmwinslow@forestoil.com>, Garry Catron <catrongr@bp.com>, Sharmaine Copeland <copelasv@bp.com>, Suzanne Allexan <sallexan@helmenergy.com>, Kristin Dirks <kristin dirks@dnr.state.ak.us>, Kayneil Zeman <kjzeman@marathonoil.com>, John Tower <John.Tower@eia.doe.gov>, Bill Fowler <Bill_Fowler@anadarko.COM>, Vaughn Swartz <vaughn.swartz@rbccm.com>, Scott Cranswick I of 2 9/29/2004 1:10 PM Public Notices <scott.cranswick@mms.gov>, Brad McKim <mckimbs@BP.com> Please find the attached Notice and Attachment for the proposed amendment of underground injection orders and the Public Notice Happy Valley #10. Jody Colombie :Mechanical Integrity proposal.doc Content -Type: application/msword Content -Encoding: base64 i Content -Type: application/msword Mechanical Integrity of Wells Notice.doc Content -Encoding: base64 Content -Type: application/mswordHappyVa11ey10_HearingNotice.doc Content -Encoding: base64 2 of 2 9/29/2004 1:10 PM Public Notice Subject: Public Notice From: Jody Colombie <jody colombie@admin.state.ak.us> Date: Wed, 29 Sep 2004 12:55:26 -0800 To: legal@alaskajournal.com Please publish the attached Notice on October 3, 2004. Thank you. Jody Colombie Mechanical Integrity of Wells Notice.doc Content -Type: application/msword Content -Encoding: base64 Ad Order form.doc Content -Type: application/msword Content -Encoding: base64 1 of 1 9/29/2004 1:10 PM Citgo Petroleum Corporation Mary Jones PO Box 3758 XTO Energy, Inc. Tulsa, OK 74136 Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 Kelly Valadez Robert Gravely Tesoro Refining and Marketing Co. 7681 South Kit Carson Drive Supply & Distribution Littleton, CO 80122 300 Concord Plaza Drive San Antonio, TX 78216 Jerry Hodgden Richard Neahring Hodgden Oil Company NRG Associates 408 18th Street President Golden, CO 80401-2433 PO Box 1655 Colorado Springs, CO 80901 Kay Munger Samuel Van Vactor Munger Oil Information Service, Inc Economic Insight Inc. PO Box 45738 3004 SW First Ave. Los Angeles, CA 90045-0738 Portland, OR 97201 Mark Wedman Schlumberger Halliburton Drilling and Measurements 6900 Arctic Blvd. 2525 Gambell Street #400 Anchorage, AK 99502 Anchorage, AK 99503 Baker Oil Tools Ciri 4730 Business Park Blvd., #44 Land Department Anchorage, AK 99503 PO Box 93330 Anchorage, AK 99503 Gordon Severson Jack Hakkila 3201 Westmar Cr. PO Box 190083 Anchorage, AK 99508-4336 Anchorage, AK 99519 James Gibbs Kenai National Wildlife Refuge PO Box 1597 Refuge Manager Soldotna, AK 99669 PO Box 2139 Soldotna, AK 99669-2139 Richard Wagner Cliff Burglin PO Box 60868 PO Box 70131 Fairbanks, AK 99706 Fairbanks, AK 99707 Williams Thomas North Slope Borough Arctic Slope Regional Corporation PO Box 69 Land Department Barrow, AK 99723 PO Box 129 Barrow. AK 99723 David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise, ID 83702 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 David Cusato 200 West 34th PMB 411 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 ~ 4 • ~ ~~~- ~ ~~~ TONYKNOWLES, GOVERNOR ALASKA OIL Ai`D GAS 3001PORCUPINE DRIVE COI~SERVATIOI~T COMM1551O1Q PHONOER907) 279A1433 99501-3192 FAX (907) 276-7542 October 22, 1999 Lyndon Ibele ~ ~ ~ ~\ Marathon Oil Company PO Box 196168 h } ~ ~ . Anchorage, AK 99516-6168 !~ t. Re: Authorization to Inject Produced Water from the Wolf Lake Development Area into Beaver Creek Unit Disposal Wells. Dear Mr. Ibele: By letter dated October 7, 1999 you have asked Commission for approval to inject produced water from future Wolf Lake area natural gas wells into two existing Beaver Creek Unit Class 11 disposal wells. Disposal Injection Order No. q limits injection in the Beaver Creek Unit #2 (BCU-2) well to nonhazardous oil field waste fluids. Disposal Injection Order No. 8 authorizes the injection of Class II oil field fluids into the Beaver Creek #3 (BCU-3) well. Other than the requirement that injected fluids be Class II in nature, the disposal injection orders place no limitations on the source of the injected fluid. Commission regulations, Alaska Administrative Code Title 20. Chapter 25 also do not limit the source of injected fluid. The Commission does not object to Marathon's request to transfer produced water from the Wolf Lake wells to the two permitted Class II disposal wells at Beaver Creek Unit. Marathon must maintain compliance with the conditions of the disposal injection orders and relevant Commission regulations at all times. Care must be taken to properly track and manifest waste material. Marathon should also ensure that adequate training is provided for any personnel handling waste prior to disposal. The Commission must be notified immediately if Marathon learns of any injection of waste that is not Class II into either the BCU-2 or BCLT-3 wells. Sinc y Robert N. Christenson, P.E. Chairman ~3 • M Marathon MARATHON Oil Company October 7, 1999 David W. Johnston Commissioner Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, AK 99501-3120 Alaska • n Domestic Production P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 RE: Authorization to inject produced water from the Wolf Lake Development area into Beaver Creek Unit injection/disposal wells. Dear Mr. Johnston: Attached please find a copy of the letter that Marathon sent to BLM requesting authorization to inject produced water from future Wolf Lake area natural gas wells into existing Beaver Creek Unit injection/disposal wells. BLM's authorization for the proposed action is required due to certain restrictions within the Beaver Creek lease agreements between the BLM and Marathon. Marathon is the sole working interest owner and operator for all of the affected wells and facilities. There are two permitted disposal wells at Beaver Creek Field, BCU-2 (AOGCC Disposal Injection Order No. 4, dated 6/1/87) and BCU-3 (AOGCC Disposal Injection Order No. 8, dated 5/13/93). The orders limit disposal activities to Class II wastes only, but do not restrict the source of injection fluids. Therefore, it is Marathon's interpretation that the AOGCC injection disposal orders for BCU-2 and BCU- 3 allow for the disposal of produced water from the future Wolf Lake area wells. Marathon will comply with all conditions of the disposal-injection orders in conducting the proposed actions. Because of the thorough reviews being conducted in support of an Environmental Impact Statement for the Wolf Lake natural gas project, Marathon Oil Company respectfully requests your co~rmation of the above interpretation and non-objection to the proposed action. Additional details are provided in the attached letter to BLM. Your prompt review is appreciated, and if desired you may use the signature line provided below to respond. Please return one signed original in the enclosed envelope. If you have any questions, please call me at 564-6327. Thank you very much. Sincer , yndon C. be e Project Manager Approved by: Title: Date: A subsidiary of USX Corporation Environmentally aware for the long run. i i Alaska Region Domestic Production Marathon MARATHON Oil Company P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 October 7, 1999 ~~i~w ~ ~~ Mr. Peter Ditton U. S. Department of the Interior ^!% I ~ ' }~~~ Bureau of Land Management 6881 Abbott Loop Road ',laska Oil ~ G;,s urns. t;ommission Anchorage, AK 99507-2591 ~nehora~2 RE: Authorization to inject produced water from the Wolf Lake Development area into Beaver Creek Unit injection/disposal wells. Dear Mr. Ditton: Mazathon Oil Company requests written authorization from BLM to allow the injection of produced water from Wolf Lake area wells into permitted Class II disposal wells at the Beaver Creek Field. BLM's authorization to dispose of Wolf Lake area produced water at Beaver Creek is required due to certain restrictions within the Beaver Creek lease agreements between the BLM and Marathon. Mazathon will comply with all conditions of the existing AOGCC disposal-injection orders for Beaver Creek unit disposal wells. The AOGCC orders do not place any restriction on the source of injected fluids but limits injection authority to Class II wastes only. Produced water from the Wolf Lake area natural gas wells falls within the definition of a Class II waste. Mazathon is in the process of obtaining a right of way (ROW) permit from the US Fish and Wildlife Service for activities related to the production of natural gas from the Wolf Lake area. Requirements for the ROW permit include preparation of an Environmental Impact Statement (EIS) with details for all phases of the future operations. The EIS includes plans to constn~ct a buried natural gas pipeline from the Wolf Lake area to Marathon's facilities at the Beaver Creek Field. An additional line will be installed at the same time in the same trench to transport produced water to the Beaver Creek Field for injection into permitted Class II disposal wells. These plans were discussed with you by Mr. Brock Riddle several months ago, and received your verbal approval. Presently, there are two permitted disposal wells at Beaver Creek Field, BCU-2 (AOGCC Disposal Injection Order No. 4, dated 6/1/87) and BCU-3 (AOGCC Disposal Injection Order No. 8, dated 5/13/93). The Wolf Lake development area includes wells at the existing Wolf Lake and Galena wellsites, and one additional potential site nearby. The daily volume of produced water which may be generated at Wolf Lake area wells is unknown at this time and will be dependent upon the reservoir characteristics and the ultimate number of wells drilled. There are no disposal wells or facilities available in the Wolf Lake area. Use of the existing disposal wells and facilities at Beaver Creek will minimize the impacts of the Wolf Lake development. A subsidiary of USX Corporation Environmentally aware for the long run. • • Mr. Peter Ditton U. S. Department of the Interior Bureau of Land Management October S, 1999 Page 2 Marathon seeks BLM's cooperation in obtaining written authorization for the above plans to ensure that the Wolf Lake project EIS is complete and accurate prior to its publication. Your prompt response is appreciated. BLM may indicate its approval by signing below and returning one original in the enclosed envelope. Please call me at 564-6327 if you have any questions. Sinc lv ~ 1 ~ ~, // Lyndon C. Ibele Project Manager LCUkz:M:\W P\ENG\wolfdoc cc: David W. Johnston Commissioner Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, AK 9950 1-3 1 20 Condition of Approval:. Approval is contingent upon analysis of the disposal fluids to ensure the fluids meet class II criteria. oil". kin #12820 STOF0330 AO-08-5739 AFFIDAVIT OF P`.IBLICATION STATE OF ALASKA, ~ PUBLOICIHEARI'NG THIRD JUDICIAL DISTRICT. ) STATE OF ALASKA Alaska Oil and-Gas p Eva M. KaUl TTlaTlrl :Conservation Canmission I ................................................ Re: TM1e application of Mara' being first duly sworn Ott oath thon Oif Company for an order authorizing the underground deposes and Says that he/she i5 disposal by injection of.Class.~ 11 oir field waste at the t3eaver"i an advertisin re resentative Of g p Creek- Unit, .Beaver Creek ~ - the Anchorage Daily News, a Field. mon o . daily newspaper. That Sald nnara il company by letter dated March 15, T943 has newspaper has been approved requested an order in confor- manse with 20 Aac zs.252. ; b the Third udicial Court, y J This order would authorize the ~ disposal of Class it oil field Anchorage, Alaska, and It nOW .waste by .:injection into theI 5leriing Formafron of the Bea- and has been ublished in the ver Creek Unit 3-welt (Sec.34,- English language continually as a A personwho maybe harm- daily newspaper IR Anchorage, ed if the requested order is ;issued may. file a written. pco Alaska, and rt is now and during ~ test prior ib 4:00 PM April 16,;_ 1993 with the Alaska .:Oil antl - all said time was printed in an ,.Gas Conservation Commis- lion, 3oor -eorcupine Drive; office maintained at the aforesaid Anchorage; AK 99501>: and re-' quest a hearing on the matter: I place Of pUbllCatlon Of Sald h s a t niia fa d` newspaper. That the annexed is and ra e a substa 6 material issue crucial to the a Copy of an advertisement as It Commission's determination, a hearing bn the matter will Was published In fegUldr ISSUeS -tie held aT the aboveaddressi at 9:00 AM on May 35]993 in-~ (and not in supplemental form) of conformance with-so AAC ~ 25:540. If a :hearing is to be said newspaper On held, interested parties may': April 1, 1993 confirm this by calling the. n ommissfon'S office; (907) 279-1433 after. April ib, .1493. If o protest isfiled,the:COm-. missionwill cbnsideriheissu-~- ance of the .'order without a , hearing. !s/Russell. A. Douglass Commissioner Alaska OL and Gas CanservatonCOmmssidh- Publ. Abrif 1; 1993 and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals.' S ~.~; ~_ Subscribed and sworn to before me this~day of .f~~<~.... 19 r. /j } .. ~~// if Notary Public in and for the State of Alaska. Third Division. Anchorage. Alaska MY COMMISSION EXPIRES MY COMMISSION EXPIRES .•.•'•...•.'JULY 24, 1996 ........................19...... #12820 STOF0330 AO-08-5739 AFFIDAVIT ®F PLi B L ICATIO N STATE OF ALASKA, THIRD JUDICIAL DISTRICT Eva M. Kaufmann being first duly sworn on oath deposes and says that he/she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental Form) of said newspaper on April 1, 1993 NOTICE OF ~ PUBLIC HEARING. '~ STATE OF ALASKA Alaska Oii'and`.Gas Consewation. Commission Re: The-application-of Mara-. ihon Oil Compahy for an order authorizing.:'ihe undergrountl disposal by injection of-Class- II btlfieldwasteatahe Beaver. Creek- Unit.,.'Beaver Creek Field. Marathon Oil Company by letter dated March 15,`1993 has requested art'order,ih cohfor- mance with 20 AAC` 25.252.` This order would authorize~tfie disposal of-Class,'11 oil field waste by _ injection into' the Sterling-Formation of the. Bea- - ver Creek Unii 3 well (Sec. 34, T7N, R 10 W,.. SM 1. `A person who may be harm ~ ed if the `requested'- order is issued mayfile a. written pro- "~ test prior to 4:00 PM April 76, '. 7993 with'7he Alaska0iPand''~. G.as Conservatioh Commis- sion;.:3001--Porcupine Drive,, quest ahearing on itte-matter:''i if the-prbiestis. timelyfiled'~, ahd~ raises-a substantial antl` materialissue crucial to the Commission's determination, shearing do the matter will be held at the above. address. ai. 9:00 AM on May 3,- 7993 in conformance' with 20 AAC 25.540. If a hearing is to be:~ held, interested-'partiesmay '. confirmahis by falling .the' Commi4sion'soffice; 4907) 279-1433 after.Aprifl6,t993. If. no protest is filed; Thee Gom- j mission wih:corisider the issu- ance of the order withouf a hearing, /s/R~s~sll A. Douglass Commissioner Alaska Oil and Gas. Conservation COmmission~' Pubr..April 1; 1993 and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. signed _ ~±~•~;~ ~ S s Z Subscribed and sworn to before r' me this'=-~~~.1.+:'~day of ~.~!'}..~.~.... 19 F ~' Notary Public in and for the Sr<ite of Alaska. Third Division. Anchorage, Alaska MY COMMISSION EXPIRES t1AY COMMiSSIOPV EXPIRES ..........JULY. 24.. 79Stb .............. 19...... ~ i ., r~,.,,~ . .. .. _, , .;. ~~ j R w M Marathon MARATHON Oil Company March 15, 1993 Mr. Bob Crandall Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501 Dear Mr. Crandall: RE: Alaska ion Domestic Production P.O. Box 190168 Anchorage, Alaska 99519 Telephone 907/561-5311 In accordance with 20 AAC 25.252, Marathon Oil Company submitted an application to the Alaska Oil and Gas Conservation Commission on February 18, 1993, seeking authorization to perform underground injection in the Beaver Creek Field (Kenai Peninsula, Alaska). Marathon requested that an injection order be issued to authorize the conversion of an existing shut-in gas well, Beaver Creek #3, to a Class II disposal well.. The proposed use of the converted well will be for injection of drill muds, cuttings, and workover fluids from new and existing wells in the Beaver Creek Field. Subsequent comments from your office have shown a need for additional information, which we have incorporated into the attached submittal. We request that this amended application, and its supporting information, be reviewed by your agency. I appreciate your assistance in reviewing. this application, and look forward to your reply. If you have any questions regarding this information, please contact Harry Ehlers at 561-5311, extension 430. Sincerely, L. R. Darte G:\CMN\ENVI\BC3Inject\BC3Inj#2.doc Enclosures cc: B. A. Cox H. G. T. D. J. Fi R. Ehlers R. Whitlock J. Kovacevich w/o encl. Doshier, USFWLS Dygas, BLM le 3180 ECE~~/E N1A~ ~ 8 X993 Alaska Oil & Gas Cons. Gommiss4.~ Ancho[ag~ A subsidiary of USX Corporation • Alaska Oil and Gas Conservation Commission Application for Underground Injection: Beaver Creek Field, Beaver Creek Well #3, Marathon Oil Company, Alaska Region CONTENTS SECTION Paae Letter of Application for Injection (20 AAC 25.252(a)) 1 Location/Plat Maps (20 AAC 25.252(c)(1)) 1 Operator and Surface Owners (20 AAC 25.252(c)(2)) 1 Affidavit of Notice to Surface Owners and Operators 2 (20 AAC 25.252(c)(3)) Geological Information Concerning Injection Zone 2 (20 AAC 25.252(c)(4)) Well Log for Beaver Creek #3 (20 AAC 25.252(c)(5}) 2 Well Casing Information (20 AAC 25.252(c)(6)) 2 Injection Fluid (20 AAC 25.252(c)(7)) 2 Average/Maximum Injection Pressures (20 AAC 25.252(c)(8)) 3 Fracture Information (20 AAC 25.252(c)(9)) 3 Formation Fluid (20 AAC 25.252(c)(10)) 4 Aquifer Exemption (20 AAC 25.252(c)(11)) 4 Mechanical Integrity (20 AAC 25.252(d) through (g)) 4 Mechanical Integrity of Other Wells within 1/4 Mile 4 Radius (20 AAC 25.252(h)) Attachments Attachment A Location/Plat Maps Attachment B Affidavit of Notice to Surface Owners and Operators Attachment C Geological Information Attachment D Well Casing Diagram Attachment E Formation Fluid Attachment F Fracture Information Attachment G Aquifer Exemption • • Alaska Oil and Gas Conservation Commission Application for Underground Injection: Beaver Creek Field, Beaver Creek Well #~3 Letter of Application for Injection (20 AAC 25.252(a)) Marathon Oil Company is requesting an injection permit to authorize the conversion of Beaver Creek #3, a watered out, shut-in gas well, from a producer to a Class II disposal well. Beaver Creek #3 was last completed in October, 1988. The intended primary use of the converted well will be for injection of ground and slurried drill muds, cuttings,. and other workover fluids from new and existing wells in the Beaver Creek Field. The initial source materials will be from the proposed Beaver Creek #9 well, with an anticipated spud date of July 1, 1993. These materials will be processed prior to injection to limit, to the extent possible, plugging and fracturing in the injection zone. The proposed grinding and injection system is shown in Figure 1. The proposed injection will be into Bench 1 of the Sterling formation, at a true vertical depth interval of 4,825 to 4,938 feet SSTVD. This is the same horizon into which Marathon is currently injecting produced waters via Beaver Creek #2, an existing Class II disposal well. The productive B-3 and B-3A Sterling Sands were watered out in 1988. Across-section of the field, from Beaver Creek #1 to Beaver Creek #3, is enclosed in Attachment A (Figure A-5). Location/Plat Maps (20 AAC 25.252(c)(1)) Location information is enclosed as Attachment A. Figure A-1 shows the regional location of the Beaver Creek Field, which is located on the Kenai Peninsula, northeast of Kenai, Alaska. Figure A-2 provides amore detailed layout for the field, which lies within the Kenai National Wildlife Refuge. Beaver Creek #3 is located on Production Pad 3. The physical location of the subject well, Beaver Creek #3, is indicated in Figure A-3, including Alaska State Plane (A.S.P.) coordinates. Figure A-4 shows a graphic 1/4 mile radius from Beaver Creek #3's planned injection zone. Two existing wells, Beaver Creek #5 and Beaver Creek #6, are present at Pad 3. However, neither well intersects the 1/4 radius at Well #3's injection horizon. A proposed well, Beaver Creek #9, would also be drilled from Pad 3 , but wi 11 also not 1 i e i n the 1/4-mi 1 e radius of Beaver Creek #3. Refer to Figure A-3 for relative locations of these wells to Beaver Creek #3. A subsurface cross-section from Beaver Creek #1 to Beaver Creek #3 is shown in Figure A-5. Operator and Surface Owners (20 AAC 25.252(c)(2)) The interested parties within the 1/4 mile radius surrounding Beaver Creek #3 are as follows: Page 1 of 4 • • o Operators• Marathon Oil Company P.O. Box 190168 3201 C Street, Suite 800 Anchorage, Alaska 99519-0168 o Surface Owners: U.S. Bureau of Land Management 222 West 7th Avenue, Suite 13 Anchorage, Alaska 99513-7599 Attn• Joe Dygas U.S. Fish and Wildlife Service Kenai National Wildlife Refuge P.O. Box 2139 Soldotna, Alaska 99669 Attn: Dan Doshier Affidavit of Notice to Surface Owners and Operators (20 AAC 25.252(c)(3)) An affidavit is enclosed as Attachment B. Geological Information Concerning Injection Zone (20 AAC 25.252(c)(4)) A description of the geologic zone where the proposed injection will occur is enclosed as Attachment C. Well Logs for Beaver Creek #3 (20 AAC 25.252(c)(5)) Logs for Beaver Creek #3 have previously been submitted to the Alaska Oil and Gas Conservation Comm ssi on i n accordance with 20 AAC 25.071(a) and (b) . For reference, Attachment D contains a log section for the Sterling "B" series. The targeted B-1 injection interval and the plugged producing intervals are noted on the log. Well Casing Information (20 AAC 25.252(c)(6)) Beaver Creek #3 is cased as shown in Attachment D. Wellbore schematics for the proposed injection zone are shown. The casing is cemented in accordance with 20 AAC 25.252(b) and will be tested prior to injection in accordance with 20 AAC 25.030(8). Integrity of the 3-1/2 inch tubing will be tested by injecting fluid into the tubing at approximately 5,000 psig, and monitoring the annulus pressure for 30 minutes. Injection Fiuid (20 AAC 25.252(c)(7)) Information concerning the proposed materials for injection follows: o Fluid Tvae: Ground and slurried drill cuttings, muds, and other workover fluids from new and existing wells in the Beaver Creek Field. Page 2 of 4 • • o Composition: Materials to be injected will consist of earthen drill cuttings, drilling muds, and cement returns/cuttings, and may include scale and produced solids; produced waters or fresh water will also be used for slurrying the solids. Produced waters from the Beaver Creek Field average less than 4,000 ppm total dissolved solids (TDS); laboratory analyses for representative wells are enclosed in Attachment E. Drilling/ completion fluids are typically lightly treated Chrom-Free Lignosulfonate, with 3 percent KC1. The undiluted mud has an average weight of 10.0 to 12.0 ppg; when diluted 2:1, the average weight is 8.8 to 9.6 ppg. The completion fluids, normally 3 percent KC1 and saturated NaCI brine, has an undiluted weight of 10.0 ppg; when diluted 2:1, the average weight is 8.9 ppg. o Source: Drilling muds and completion fluids will be associated with drilling and production activities for new and existing wells in the Beaver Creek Field. Produced fluids are from the Beaver Creek Field. o Injection Rates: Daily Averaoe: 1,000 barrels per day (drilling operations) Daily Maximum: Instantaneous rate of 5 barrels per minute, or 7,200 barrels per day Average/Maximum Injection Pressures (20 AAC 25.252(c)(8)) The average injection pressure is expected to be 2,500 psi surface during mud and cutting injection. Pressures during water injection are expected to be 1600 psi surface. It is anticipated that water injection pressures will be the most common operating conditions. The maximum surface injection pressure will be limited to the working pressure of the casing head, which is 5,000 psi. Working pressures during injection operations is not expected to approach maximum allowable. Fracture Information (20 AAC 25.252(c)(9)) An evaluation of the proposed injection program and its potential for initiating or propagating fractures is enclosed as Attachment F. Based on that evaluation, Marathon believes that no freshwater strata is at risk of being affected by the proposed injection operations. While some of the deeper, thin bed confining strata will be penetrated by fracture height growth with mud injection, confining strata that protects fresh water strata will not be affected. The fracture simulation presented in Attachment F illustrates that fracture height growth will be confined within the Sterling horizons, and fresh water confining strata will remain intact. Page 3 of 4 • • Formation Fluid (20 AAC 25.252(c)(10)) The injection fluid for disposal will be predominantly cuttings and drill muds from new and existing Beaver Creek wells during rig work operations. The source of the produced formation water will be from the Sterling and Beluga Gas Sands. The fluids present in the injection zone have been previously characterized; laboratory analytical reports for Beaver Creek #lA, #3, #6, and #7 are enclosed for your review (Attachment F). Drilling muds are designed to be non-damaging. Aquifer Exemption (20 AAC 25.252(c)(11)) The aquifer penetrated by Beaver Creek #3 is exempted under 40 CFR 147(b) (1) (B) below a vertical depth of 1,650 feet from the surface. A copy of the citation is enclosed as Attachment G. The exempt zone is described as extending one-quarter mile beyond the limits of the Beaver Creek Field. The bottom hole location of Beaver Creek #3 lies within the limits of the field (Attachment A, Figure A-4), and has a horizontal separation of approximately 1,000 feet from the nearest point of the unit boundary. Mechanical Integrity (20 AAC 25.252(d) through (g)) A mechanical integrity test will be performed at Beaver Creek #3 as specified in 20 AAC 25.412 prior to injection. The casing/tubing annulus pressure will then be monitored on a daily basis as a routine field operating procedure, and reported on Form 10-406. Mechanical Integrity of Other Wells Within 1/4 Mile Radius (20 AAC 25.252(h)) There are no wells within a 1/4 mile radius of the proposed injection zone in Beaver Creek #3. The bottom hole location of Beaver Creek #3 is located greater than a 1/4 mile from two adjacent wells, Beaver Creek #5 and #6, in both a vertical and horizontal direction (see Figure A-4). Beaver Creek #3 and #5 are directionally drilled from Pad 3; while Beaver Creek #5 intersects the 1/4 mile horizontal radius shown in Figure A-4, it is over 7,000 feet deeper than Beaver Creek #3's proposed injection zone. A proposed producing well, Beaver Creek #9, will be directionally drilled to the south of Pad 3, outside of the 1/4 mile radius shown for Beaver Creek #3. Integrity testing is included in the drilling program for the proposed Beaver Creek #9 well. Each of these wells is under the control of the operator, Marathon Oil Company. Page 4 of 4 • Makeup Water Slurry 'r with 50 .mesh screen SCH~MAIIC DRAWING OF CUTTINGS GRINDING AND INJECTION SYSTEM TO BE USED ON BEAVER CREEK ~g ,~ • • Attachment A ALASKA PENINSULA ~J 0 [• ANCHORAGE GRANITE PO TRADING BAY, "SPARK' !~ SPURR' .f"STEELHEAD' i ~~-"DOLLY VARDEN' 4/ BEAVER CREEK NIKISK~ PRODUCTION FACILITY r • KENAI KENAI PENINSULA COOK INLET p~ ~ - o N as 4 ~~~~ 0 10 20 30 40 MILES 0 20 40 80 KILOMETERS Figure A ~ 1 MARATHON OPERATIONS M IN UPPER COOK INLET Nulunloe Page 1 of 5 -~ ,v 0 ~ 3 -+-60°40'00" O p O O O N O tt O o p ° ~ r ~ See Figure A-3 r t~ BC-4 + BC-3 PRODUCTION FACILITIES AREA + " + -t-60° 39'00 BC-1 A + gC-2 ~ CreeK -~- BC-7 e~ a`~ ~e t _ I i 29 Izs B YX~I ~~31', 27 ' ! " ~ i ;. ~ O 25 2~6 - ~ 30` `-_ ~ .. ~ ~ 2 f . 4 /'~ 1t~II~ ~ ~ ~Ovp2lsc ) i r 25 C'.\ I . -}- 60°4 . ~ w I Q 00 ,. ~ ; ^ I , . _ / ~~ ~ l _ - - ~. ,1 _ / ,. > ~ ~ ; ~t ~• I ~ , .. I _ _ ~ qr ~ 1 ,. .. , ~ ~ "r _ a ~ t 'Z p ~ J 1 j . \~~33 ~ I ~ +o~ a . { ~ ,o, q~ ~ i ~J ? _b Iso~ ~ `~ o _ 4 e ` ~ v '~ ~ ,44 l ~ ~~ 32 ~ ~ 34 ..35 p 36 ~ 81 9 O ~•.33 ~+ 85d ,'- ' I \\~ o I ,-. T " i~ -• _ .- ~: ~ _+ C~ r ~ 4 sod ~ i „~--1~ Q 1 M ... ~ ~~ _ ~ _r_ ~,. ;_ I - - o : ~ . I '_ :. . ~ a ~ ~ 5 4 3 2 1 .1 6 ..:a- ~ 3 . 3~iro ..'I u~ 4 "' I ^ ~'~ • "~ . ~ I ~ ~ - ; ' .. - _ t ~n D 1 ~ ` - ~ ' e. • .: 8! . .. 9 ...~ 10 :r I '11 ~ ~ 12 • ~ SEE f ~~ r tee- ~ ;~.~7, , +6 Q E A1L ~ ,_ \ ~ ; ~ a p l~ _9' y10~' \~lw-~~\`lll~~- Qs 12 iDo ^ ,. ., ~ .• ^•~ ~ ~ _ U U v ` ,, . - •+- a ~: _ ~ ~ ~= .• --- - - 0 - kn --- --- ~ _ . ... _ .. - _ .. (' i ~ ` l ~ p +! ~ . p7 _ ., ~ ,. - _ 1~ . _ ,. ,.. J+ .~ .,. , 6 f.14 - ~ ~ , . • 13 ~ 13 19..,' . _ 1 ~.. d 6 U,a \ ` 4 , C - ~ ~ .. 1 »~ - ,~ ^ ;~ u ~ i- _~ ~ .• . i - ~., •'~~±. ^I - ^ r •'-,'~elti~o~nri •~_ ~x . Bo~jtDAja7 -- --. ---- .. :. ~• - _~ ,1,~ -' - __ ~ -- a ___ -- ,~ -- - - a ~' t - ~?O ~• . P4 ^ ~ 21 - - ~ - .4 22 ^ ,. ' t ~ 73 - 1.. t 24 ^ ~ ~ .. .^ ~ 4 T9-. ~ -- ZO! t ~ ~` ... ~ , ~. _ ~\/~y ~ : ~~ 1' \__ 2 i i ~ if ~ ~e% ' ~ 24 ~. )3 _ . v a ~ 3 _ _ ^' .x .. - s. - .. -..' _ 4 -^. ' ~ . n gi JA ttt/// - -}- 6 0 3 -` _h9~ _ O-^ •. 5 0 ,4 '' ~ _- • 2T _ - -.. I • _26 25_ ^ S.j•.. '' I /~O r;25 3Q . ~ t~ '''_^ ~ 1 1 ° # ~"nry ill .1 }~07-7 Hi l ' sO ~.. ~ 1 'y ~ ~ Q ~ Q' ~z ~~~0~ I ..114----- _ / ~i ~ ...' r ,~ -.,_ :~ • ~ ~' ' ' ~I- .. ~ MARATHON OIL CO MPANY 1A 2 I 33 ., ~I ~ :, ~ _ N ~~._ ~ .36 , , ,~~, ; . 32~' "31 ' s ~ 33 L. ~'' ' ` JI i ,,,~ ~ ~ '~ '~`~~~\ i ,,.~ ~~ 3~ ,,, ~ --`.` ~ ,3f,~ a _ ;,I.-~,,' °. • _ BEAVER CREEK AREA ~, ~ ! Kenal , ., ^ ~ y ~ --•---- . I 118 1 • / S I ~ I ~ ~ ( ~ . _ l M -• I I ^ C I Pn'~ /~ - lI .//'F '~i ~• I i j ~ p, if" II p ~ . ~ t " ~ I l(^~l1 71 ,.,• , . */r~ 5 ' .~. mo, loi 4• ~t li - ~.. y ~ 1 ~ 1 ~~ ; la / i Y, Y ~: j ,_,1 ; (t l .r (/ ~ F i g u r e A - 2 VIA .. y - J • REVISED COORDINATES B.C.U. No. 3 A.S.P. ZONE 4 Y= 2,433,965.211 X: 317, 312.678 B.C.U. No. 5 A.S.P. ZONE 4 Y ~ 2,133,997.422 X = 317,307.662 B.L.U. No.6 A.S.P. ZONE 4 Y :2,434,028.754 X : 317,298.653 B.C.U. N o, 9 A.S.P. Zone 4 Y (to be surveyed) X (to be surveyed) Doscriptton: 1289' FNL, 1460' FWL Seotlon 34, T7N R10W, S.M. Figure `A-3: MARATHON OIL COMPANY BEAVER CREEK PRODUCTION FACILITY Pad 3 Page 3 of 5 • BCU No. 9 (proposed) L BUnded on both 50 Bbl'Methanol ends not in use 60 Bbl Methanol 0 BCU ~ BCU No.6 r Insulated Well House ,heated New 2' DRtSCO Potable Water Line to OfNce BCU X ` W SIGN i ~ w ~ =W s y W ~ ~ [ at ~ u n x'Ex-oxEO n-EUxIES • / ° W cNO E' nn IN[ LEL ~ ~ ~ EL ME ~ EMO E' nR f /' M- ~ " n Ex-etED 4' LIME q;` if i i W/ :r j ruwJ! I 1 2 •, ~r ! I C~ y~ r / ~ a ~ I 1111 ?~ jI ~ I aJ I -f, I 4 ~fj' I ~' i I ~ ~1 j I I W coil ~~. I !Y I I ~ I ~ I ~ ~ I m I ~I ~ I r. :IN I "I w' I vxwE ~ ~ U~ I ~ V u i Q H . uI I I W J•~ .N I e I I 8 Flowlirte Tees at T-PAK both Y PAKS EuNlco s' -I-ELINE flow t8 well • *ee cello T-PAK 8A • rowo wNVEr roNUrENr IGNT i Uz' AL. to- ow-x ~ouNEO E'LINE New 8A 3 8 ~.x.-. zoxE T-PAK -fe ~ r. e,ax,rrE.IW a E 4 T-PAK 88 x. in,neaE4 .rNf ~yE[EC a ~ P.I. 31 4` DRISCO Line Waste Water Collection z'hd3' 2' Potable Water to Ottica X60 101 _.5 5° F •MARATHON ~ BCU-8 ,h~ T.D 18,750` .• " 1 /MARATHON -UNION •'D~ zp AK -84 • ti ~5~ ~ ° ° a CIRI • tati•~~~lill'~ol~'1•-- --------t---------- O8~ •,,Q i .5 a ~ g~_g_~ . ~ • ~ ~ b .. ~I . o 0 __~A ~ .. 50 ~U .. CIRI ' ~ ~ B ~ '~ \ / .a~9s '~ TMD 18,247 ~` ~~~ ~0 TVD~S,624 ~ 9 TMD 15, 85 $ 4oF ~ // ~~ TVD 15, 61 " - Beaver /~ 14 'O a TMD 387 Creek ,F3 • 121 - / „~.~ 5rd ,~ TVD 5418 / O e /~$3 ' ~` 11 , i f / - ' ~ ~ '~P . 1 3 ~'~ ~ // ~ ~p,~~ P ,,~~1 1/4 mile ~ ~,~ °~ s: Z ; ~~ Radius ~ '° . ~ ~ II .14•-4 Id IS ,~'°• , .,• ~ s 4 1: •~•. _ TMD 15,940 la •i~,,, 8 ~ ' o BCC ~ TVD 15,715 ieX ~ ° ~ ° ° ° 4 7.4 TMD 15,928 I ° • ~'a TVD 1 b,610 ~ ° 33 34 ~ ° ~ 1 1 ° ° !~ / •,,o / i °~ i ~ ~ ~ ° ~$ bah 1-A 1/4 mile ~ % ° a9 ~ ' ,~ Radius ~ ~ o ~ ~ -°' TMD 10,296 ~ ° • ° '~ TD 9137 ~' ~ ° a ~- "o ~ 10°F- ° p., ~ ~ USA o ° MARATHON -UNION o ~ 2 ° AK-!42 ~ b o •TD' 15,6 - • O Existing Class II Well ~ p 2'„~ ° f;Beaver Creek f2) ~~~ ~ •g~ ~ ~ ~ .,~~ ,a 7 ° ~ i ~3G TD 15,476° ~-/L~ ~a gC-1''~~'7 ~ ° t ° i I ~ / CIRI EKG-49~~ ~ ° , ; D ° -4960 ° ° // ,, ~• LEGEND 0' 1000' 2000'. 3000' SCALE ~ TYONEK 'G~ ZONE OIL PROD. -+- ABANDONED TYONEK OIL PROD. -~ STERLING GAS PROD. PRODUCTION PAD ~- ABANDONED GAS WELL DRY HOLE U IRI ~> i 26 35 ~° ° • _- M MARATHON OIL COMPANY FIGURE A - 4 BEAVER CREEK FIELD TOP B-2 STRUCTURE C.I, 0 40' SC810: Authof: R. DRUMHELLER Date: Nor.t°!°. R•r,s(87 File no: • • Attachment B • ~ Affidavi# of Notice to Surface Owners and Operators (20 AAC 25.252(c)(3)) State of Alaska Third Judicial District I, ~uc.~~~..~ ~. ~u-t~s (print), declare and affirm as follows: 1. I am employed by Marathon Oil Company, Alaska Region. I have personal knowledge of the matters set forth in this affidavit. 2. On Mac~a 1S 1993, the following surface owners and operators of the Beaver Creek Field were provided with a copy of a permit application to the Alaska Oil and Gas Conservation Commission, dated Me~~~ \S 1993, for conversion of Beaver Creek #3 to a Class II injection well: o Operators Marathon Oil Company P.0. Box 190168 3201 C Street, Suite 800 Anchorage, Alaska 99519-0168 o Surface Owners U.S. Bureau of Land Management 222 West 7th Avenue, Suite 13 Anchorage, Alaska 99513-7599 Attn• Joe Dygas U.S. Fish and Wildlife Service Kenai National Wildlife Refuge P.0. Box 2139 Soldotna, Alaska 99669 Attn: Dan Doshier -l'k DATED at Anchorage, Alaska this J,5 day of 1993. (signature) Subscribed and affirmed before me at Anchorage, Alaska on rich /,5; 1993. ~' , '~ fi+~ N tary Public in and for the State of Alaska My commission expires: • Attachment C r ~ Geological Information The Sterling Formation is the current principle gas-producing reservoir in the Beaver Creek Field and also contains the subject strata intended for injection. 40 CFR 147.102(b)(1)(B) states that Beaver Creek aquifers to a depth of 1,650 feet below ground surface and extending to 1/4 mile beyond the boundaries of the Beaver Creek Field are exempt. The Sterling Formation is of Pliocene Age and consists of meandering river and stream (fluvial) sands and conglomerates of moderate depositional energy. A lack of interbedded clay and silt within the various producing zones contribute to the high porosities and permeabilities observed. Injection is intended to occur within the water-wet sands of the Sterling "B" series. The top and base of the B-1 injection sand in well Beaver Creek #3 is as follows: Sterlin Formation Sand To Base B-1 5804' (4825') 5945' (4938') Porosity is approximately 30 percent in the B-1 Sand, and the two lobes of the sand are approximately 100 feet in true stratigraphic thickness. The sands are moderate to well-sorted fluvial sandstones with minor conglomerate consisting of subangular to subrounded quartz-rich sand with variable amounts of chert and volcanic rock fragments. Confining beds at Beaver Creek, each ranging up to 20 feet thick, consist of claystone and coal. Referring to figure A-5, the 1,650' to 4,800' interval contains numerous coal/clay/sand sequences that are sufficient to ensure protection of sands above 1,650'. A review of well logs from the area indicates numerous continuous impermeable shale barriers and additional stray shale layers in the area of Well f3, totaling over 130 feet in thickness. The confining beds that protect the fresh water strata below 1650 feet occur as follows: Measured De th Thickness feet True stratigraphic Thickness feet 2132 - 2136 4 3 2250 - 2256 6 5 2516 - 2526 10 8 3000 - 3022 22 18 3055 - 3074 19 16 3112 - 3130 18 15 Page 1 of 2 ~ • True Stratigraphic Measured De th Thickness feet Thickness feet 3132 - 3244 12 10 3254 - 3268 14 11 3622 - 3629 7 6 3830 - 3838 8 7 '~~tals 120 99 Additional permeability barriers within the middle and lower Sterling horizons are as follow: Measured De th Thickness feet True Stratigraphic Thickness feet 4356 - 4374 18 15 4504 - 4510 6 5 4530 - 4536 6 5 4548 - 4553 5 4 4578 - 4596 18 15 4650 - 4657 7 6 4822 - 4828 6 5 4992 - 5004 12 10 5022 - 5040 18 15 5264 - 5298 34 28 5492 - 5502 10 8 5624 - 5649 25 20 '~~r~al s '; 165 136 Sidewall cores taken in the field attest to the impermeable nature and ability to seal of the claystone and coal beds. Page 2 of 2 • ~ Attachment D X600 •!~ %~1~- ~1,, 6300 .5 Page 1 of 2 I I ~ II I I I ! !'!! I;, I i ~ i i lli i j i , iii i 1 I i ~ I , j i I I I I ~ i I ( E ) I I I (W T (W ET EO i I I I o PROP p ° 0 PEIRF S.I o ! I I I I I I I I ~ I ! i l l ~ I ! I I I ! I i i i i I I I I 0 e o ' i o 0 SQN 0 e I e v S ee e e a e~ d0 o I W i i l l 1 1 1 1 ~I ~ i I ! I + I I I II I ! , i a I ! I I I I i i l l i { I i` ~ i I I ~ i ~ I ~ I ~ ! I I ! ~ TARGET INJ. INTERVAL -5000' 1NGlE HOLE BEAVER CREEK ~3 KB 1T3' GAS PRODUCER • WELD BCU-3 Spud Dnte~ 7/26/68 Ilrtc,~lnni RK& i6' nbove GL Top of Sterltng~ 5955' Annulus FIWd~ ~ W w/KCL All depths are RKB MD to top of egWpnent. MARATHON L11L I:OMPANY BEAVER CREEK UNIT API #' 50-133-20124 Completion Dnte~ 11/8/88 Mnximum Hole Angles 37' 8 2968' Angle Through Strlgr 37• Reference Logy DiL 11/23/72 Well Type. Gns Producer New Workover I~ Recompletton !EWELRY DEPTH 1. FMC Tbg. Hngr. Type TC-IAEN C3-1/2' EUE 8RD AB Mod). 17' 2. Flow coupUng (5.00' ^D x 2.90• ID). 52T 3. Otis 'XXO' SSSV nipple w/SSD (2.75' profile). 533' 4. Flow coupling (5.00' ^D x 2.90' ID). 536' 5. 3-1/2', 9.3#, L-80, 8RD EUE AB Mod Tubing. 5,901' 6. Otis 'RH' hydrnulic retrtevnble pocker. 5,832' 7. Otis 'X' nipple (2.75' ID). 5,868' 8. Otis Shenr Sub/Re-entry Guide (4.535' DD x 2.88' tD). 5,901` N ~ Pncker has strntght pull shenr-Relense pinned i? 32.900#. CASING >s Tl1BING Size Wetoht Gr Too Bottom Descrtot. 13-3/8' of ~-55 0 533' 8RD Csg. 9-5/8' a0 J-55 0 1.569' STbC Csg. ~3 !t-80 0 914' Senl Lock ' 6 N-80 914' 0,380' 8RD Csg. 3-1/2' '.3 '_-80 0 x,901' 8RD EUE AB Mod N ~ ~:B to top of t3-3/8' Csg. = 20'. ATA Zone ~~PF ~ntg ;un rYrL. 6035'-6047' B-3 12' a 12/9/88 Squeezed 6034'-6060' B-3 26' 4 10/18/88 " 6060'-5080' B-3 20' 8 ' 6104'-6146' B-3A 42' 8 9/25/82 ' 6152'-6158' B-3A 6' 4 6183'-6184' B-3A i' 4 from CTU Sqz 135' renmed to " w/2.70' m0.1. '~ Roservotr Dntum+ 5,000' Sub Seu RfWSwn Dntt~ 12/21/88 rr Mod 'K' Rtvfsed Bye NEF e 6172' n~+ Page 2 of Z Rem:on cTU s4z ~ lMlaut 6387, Previous Revlsron 11/9/88 • • Attachment E CHEMICAL & GE4LOGIC141 LAB~R.4 TQRIES (~F ALA~K1t, INC. ~ ~~ ~ P.O. $t7X 4.1276 TELEPHONE ~~NCNOFtAGE iNDUSTRlAL CENTER """"""' Ancnarage, Alaska 9f3509 i90iy 5fi2.2343 5633 B Street WATER ANALYSIS REPORT OPERATOR r~arathor *'x? rcmpany DATE 1-9-92 LAB N0.92.0148-1 WEAL NO• ~ ~' LOCATION FIELp Beaver Creek FORMATION COUNTY INTERVAL STATE Alaska SAMPLE FROM REMARKS S CONCLUSIONS: :~'~.rium, rng/1 0..30 ~~ Strontium, rn~l- (~~ ~~~~, trig Catigns mglf megEi Anicros erg/i rrlegil 5ooium ... ,.,...... 1406 61.79 Sulfate....... ..... _ 5.0 0.10 Poiasstem......... .. 6 .' Q . 1 fr Chloride. , .. ........ 26 0.79 Calcium .... . ... . .. . . 3,.~ ~` 1 ~ Carbonate ........... - MagnesEum ... ...... i. 1 0.0 9 8lcarbortate ......... 3 7 0 0 6 0.6 8 iron ............. ... __. Hydroxide .. , .. .... .- --- --- Total Cations ........ 61.57 Total Anions 61 57 ... . ..... , _ Tatai dissolved sdids, mgli , ....... , . N ' ____~4~~ Specit<ic resistance s~ ti8° F.: aC , equivalent, mgll . .......... . . Observed .......... W.~~1 olrorrmetera ~~ Observed pH ....................... 8,0_6 . Calculated ......... 2 . ~ ohm-meters Sample shove described Na Ca pilg P8 WATER ANALYSIS PATTERN Scale MEQ per Unit C1 10 Na HCO' ~ 0 Ca SO' 1 .0 Mg C0~ 1 .0 Fe INS who M tlava lK~~ +ntlutl~t NA, K and Ltd NOTES Malt r MUIlO/bM pN IM~f rMglt ~ Mipl,raea agwrrMl par~br SoNum CAlalda sWIwNM~h, ounap a Ntf>•M~nH d1taN1M~ MNa NmpeMnrs C1 HCO° SO' CQ' Pagelof5 • • ~ _~~ CHE~3iICAL & GEOLOGICAL LABORATORIES OF ALASKA, INC. .~ P.O. BOX a-1276 TELEPHONE ANCHORAGc INDUSTRIAL CcNTER "'°"•'°'"" Anchorage. Alaska 99509 j907) 562-2343 X633 B Slree*. WATER ANALYSIS REPORT OPERATOR Marathon 0 i 1 Co. WELL NO. ~ FIELD Beaver Creek COUNTY STATE Alaska DATE 3/1 1 /87 LAB N0. =670-2 LOCATION FORMATION INTERVAL SAMPLE FROM T-Pak REMARKS & CONCLUSIONS: Barium , ^~a/ 1 _ Strontium, mq/1: Iron, ma/1 T`•i Cations mgll megll Anions mgit meg/1 Sodium ............ . 108 1 -+ ~ . C; 3 Sulfate ............. . yD (1) -- Potassium .......... . 88 = • 75 Chloride ............ . 1800 50.76 Calcium ............ . 1 64 s . 18 Carbonate .......... . 12 0 .40 Magnesium ......... . 63 7.18 Bicarbonate ........ . 700 1 1 .48 Iron ............... . Hydroxide .......... . Total Cations ......... 62.64 Total Anions .......... 62.64 Total dissolved solids, mgJt .......... 3553 Specific resistance c 68° F.: NaC1 equivalent, mgll .............. 3455 Observed .......... 1 •56 ohmmeters Observed pH ....................... 8.34 Calculated ......... 1 •90 ohmmeters WATER ANALYSIS PATTERN Sample above described Na Ca Mg Fe Scale MEa per Unit C1 ;10% Na HCO' 1 Ca SO' 1 Mg C 0' I Fe C1 HCO' SO' C O' INs valve in aboa~ gaphs inetndfs Ns, K. and ltl Np i E: Mgft s Millisnm~ Per INM Mpll s Mi11MNim pwvNM °r. Irter °~acwn •' •~-.+r+ .^~ r.a1Mt ~ b~ OunlaO i NawtQerM cileula~wn non r.imnx~nr_ Page 2 of 5 • • r\ CHEMICAL & GEOLOGICAL LABORATORIES OF ALASKA, I~VC. 5633 8 Street TELEPHONE Anchorage, Alaska 99518 (907) 582.2343 WATER ANALYSIS REPQRT OPERATOR Marathon qil Company LATE 1-4-97 LAS NO. 42.0148-2 WELL. N0. 6 LOCA710N F1EL0 Beaver Creek FORMATION COUNTY INTERVAL STATE Alaska SAMPLE FROM REMARKS & CONCLUSIONS: _ Barium, rng/1 ~ .0 ~{r rcn ium, rng 3 Iron, ._ --- mct/-~ ~- -0.93 ' Cations mgt! megfl Anions mg/t rnagfl Sodium ........... 953 91 .89 Sulfate.........., . . 17 0.35 Potassium ....... , ... 51 1 .31 Chloride ..... . ...... . 1 2 6 0 3 5.5 3 Calcium ..... - - - . ... _ 67 _ 3.3 4 A Carbonate .. , ....... . --- --- Magnesiam .......... 2 Q ' . 6 4 Bicarbonate ..... . T 5 a 12.30-_ Iron . ............... Mydroxlde ...... . . Totnt Cations ........ _ 4 S 1 $ Total i+nions - ......... 4 $ . 'E 8 Total dissolved salads, mgA . _ ...... 71,7 Specific resistance ~ 68° F.: NaCI equixalenl, mgA ... . , . , . , , 2589 Qbserved , , ........ z • 1 ohin•metsrs Observed pti ...... . . ... ... ..... ~ • 8 3 Calculated .. , .. , , .. T 2 •5 ohmmeters WATER ANALYSIS PATTERN 3a#mpie above described Na Ca Ma Fs t>.a vatw 1n attow graphr tne[udaa Nn, K. and !q NOTE: Nylt a Maganuw Oar liter May! :; Maagrans puhraiaae par ot.r iodlttat CttlOAtia aoaiai«a ~ 6r DwUsp i ttatwhortN aatputauaa aura contpan~tta Scale A~Ea per Unit CI ~ 0 Ns H CO, ~ • ~ Ca SO. 1 • ~ M9 CO, 1 •0 Fe q NCO, ti0° CO, Page 3 of 5 • • o~ ~ ~~~ ~......d... CHEMICAL & GEOLOGICAL LABORATORIES OF ALASl~CA, INC. 5633 8 Strest TEL.EPHO~E Anchorage, Alaska 98578 (907; 562.2343 WATER ANALYSIS REPORT OPERATOR Marathon Oil Camt~ DATE 1-9-92 LAS NO. 91 .0148-3 WELL NO. ~ LOCATION i=1E1.0 Beaver Creek FORMATION COUNTY tNTERVAI STATE Alaska SAMPLE FROM REMARKS & CONCLUSIONS: _ &~s~xn, m 1 0.59 S,~c~~ttiu~n,~ ~g 1_ _ 0.05 Cations rngll m~e fl Anions ~ rnegtl Sodium ............. ~ 9.9 y 1 .3 0 SuNate ... , ... , ..... 1 .5 0.03 Potassium • . , . ...... 4.0 .0.10 Chloride . . . . . ... . ... . 28 0.78 Calcium .......... , . 1 3 0 .~_ Carbonate ...... -- - Magnesium ......... Q . 53 0.04 Bicarbonate .. .. , . 78 1 .28 Iron ..,...........•. Hydroxide ..,...,.,. Total Cations . ~... , . , .. 2.09 Tota! Anions ...... , ... 2.09 Total dissolved solids, mg/I • . 1 1 5 Specific resistance ~ 88° F.: NaCI equivalent, mgfl .. .. , • , , ~~ Observed • . , , .. .. 48 ohmmeters Observed pH ...... . . . ..... . . ... . . Calculated . ....... 6 Q ohm-meters Sample above described WATER ANALYSIS PATTERN Scab MEO per Unit Ns Ca Mg Fe CI 1 .0 Na HCO, 1 .0 Ca 80, 1 .0 Mg CO, ~ ..0 fo Ct HCO, so. CO, tNa value in abor• ~rapht Malnd~s Ns. K N+d !q NOi~ f~ _ PK Blur Mpll ~ Mlrapa~as ~g111r~MM pN NNr SodiwfA Ch1oA0~ prfvs~t ~ M ~~P ~ Nawlhae» e~kuhtlen fran eo~eMats .Page 4 of 5 HEMICAL 8c GEOLOGICAL LABOR,4TORIES (1F ALASKA, INC. 5633 g STREET • ANCHORAGE, ALASKA 99518 • TELEPHQNE (~07~ 562.23+13 RDf1N Calcala#ion Rauiine Oil Fleld Wete~ Analysis Operator: marathon Cham~Lab Ref+~' 92.2216 Client 3empie !D be-7 Fiald: bearer creak AMonlCation Analysis Conc. myJl 3a11 um 959 Potassium 66 Calc# um 55 Magnesium 33 Total Cias~olids, mg11 NsC] Eq. f chloridsj, mq1] ©bserved ph ~artum,m91'i 1.t 0 S#rontl un,mgl] O.B6 Totsi lronamgll 0.2 Data 6!1192 Approved by: smb S/ ~ ~-- Meq,/l 41.'12 Sulfate 1.69 Chloride 2.74 Csrbonste 2.T 1 Blcsrbonete Hudrturfde Canc. rMt11 8. 1540 0 322 0 2819 Speciftc Reaiatanced- 68F 2774 RW f observe 2.08 7.16 RWfCa1C.~ 2.3b ~~ 0.17 43.43 0.00 5.28 0 48,8TS WATER ANALYSIS PATTERN Scale Sample above desoribe~ MEQ osr Ualt /o X Na Ca ~e (IU vrw in aseo~ gaph~ ualudaa Na, K, and N1 MpT~ Yof1 sM~NOfIM par YIM Mp-t rYflgpaal pytidoiM w~ ~Mf soar. eakae. •MrrwM. w aw.~ a r-: ~.an,,..aMuMebn aa,. aw-pwW~ Page 5 of 5 Ct X ~d Na HCOa Ca SO' ~9 coo ~. NCO sa ca ~ ~ Attachment F • • Well BCU-3 Fracture Growth Simulation Beaver Creek Field (Kenai, Alaska) Marathon's Petroleum Technology Center has constructed athree-dimensional grid oriented hydraulic fracture model of the strata at Beaver Creek. The model was constructed using lithology, stress variations, pore pressure, and rock elastic properties for the Beaver Creek Field for the purpose of simulating hydraulically induced fracture growth as a result of drill cuttings injection above fracture pressure. An average injection rate of 2 barrels per minute (BPM) was used to simulate the most likely scenario. A fluid viscosity of 50 cps was used, assuming that the mud and cuttings would be diluted with water. The attached figures {Figures F-1 and F-2) illustrate the calculated surface and bottom hole pressures, and the fracture geometry as a function of volume pumped. It is anticipated that no more than 8,000 BBLS of fluid would be pumped, and the model was run out to 21,000 BBLS. In this "most likely case" scenario, a fracture height of 630 feet was obtained. This height growth would result in reaching a true vertical depth of approximately 4200 feet (2550 feet from the exempt depth of 1,650 feet). Referring to Figure A-5 (Attachment A), fracture height growth is limited to the middle Sterling formation and does not approach the protective fresh water confining beds. The induced fractures will be propped with an impermeable drill cutting and mud slurry. Once the induced fracture is closed, it will be non-conductive. A second "worst case" scenario was run with no fluid leak off, an injection rate of 5 BPM, and low upper strata permeability. This worst case scenario (Figures F-3 and F-4) indicates that the fresh water strata above 1650 feet is not at risk of contamination. The induced fracture in this case reaches a height of 1200 feet. Produced water injection will be possible below the formation fracture pressure. This behavior has been observed in the existing Beaver Creek injection well, BCU-2. During injection of produced water, it will be necessary from time to time to fracture the injection interval to move accumulated solids. Fracturing in this case is expected to remain within the injection zone. Page 1 of 5 C-~ O C C G s • C C ~C L C ~ M N O [V fl C~ N U n ~--i _ _ _- _.~,~ L,,,,~,t,~, _,vv~,vv ti uvvul'l :~tJUI'JUU bUU{)Q(:l ~Jo I ~,rne Pumps ~ , ~e I !U{7fl~7l7 80t~0~J0 90C~O~~i 1 C~C7~~~~1(, • Figure 1: Beaver creek #3 ~o~ids Dis osal Pro'ect ~Gicu~oted Treating Pt'AQQVrro'Q a ca W O fi 0 .-, c~~ 0 0 r, C7_ O C ~ G .C ~ Y Q Q ~_ a t~ _ O O fU ~~ cv 0 0 co 0 co rn 0 0 G• (`~ n ,~ ~• w ~ a~ O 0 0- ._ Q ~ ~- ~' C- C7 - M [A~` - V 0 o- ~, 0 Figure 2:' heaver ~r eek ~3 ~o I i ds ~ ~ sp®sa I Pr ~~ ~~ fi Calculated Fracture Geometry _._ -- --- -- i~ s - -- - __ - ----- __. a .. __- _ ~j. ~ f ~f 1 ~, l + -~ ~r ~ J tr"'a tL / ~r `I r~ f f t ~. _ - ~Sr 1.-f~ --'-- If J T - --- --- ---- - 1 ~ ~~ ~'~ JL.J-. _N - V1- - __.~__.._~_. __.__._ .r.__J _ _._.~_. »_ ' ~ Heigh t -- -- -, ~ -- - ____. __ __._ ___. -- Ho I f l gn g t h ----. Mox. Width -- -- 11~g . W i d t h _. __ ___-- --t--- -- --- -- -- - i00o00 zoo0c~o 300000 4c~o~on 5c~o0oo ~0c~oc~~ ~0000~ ~30t)t~Ur~ ~oc~c~c~o V~iurne Pumped, gel • • co co ~n ~t 0 0 0 ~- c~ 0 r~ N 2 w ~ ~; co L .jam ~ N O fi N CTi pe L Q.. O (J t~J CO t~ CO N C C if', n 5n000 ] OCl~oO 15~04f) ~c~c~~~t~c~ 2500f)C~ 3oou~~u I'urn~-~ed Vr~ I umc ~ja I • .55VUUU 4 UIJsJVU ~o Jt~Ve.~t~ au~~100 ~~9ur ver ~r eels #3 Solids d i s osa I ~'r a ' ec t Bea p Calculated Trea#ing Pressures -o a cn rn cr 0 -n cn 0 0 0 0 -- o N N U ~ c~ O . ~ ~a `cJ {~ WSJ _ ~.J ~~ ~~ a u ~_ o - d- .~ ~+ C? CO ;~_ O • '_' N CO ~ O ~p_ vO • C CO '~ ~-~ o ~~ ~ t. 3 ~' O ~- ~ ~ -- ~ O L7 ~ ~ C ~ -- C CO ~ C ~ c d e c 0 0 ~-, __~ Figure 4: Beaver Creek #3 Sofi~s Disposal Project - Colculoted Proctors Geometry ,~„~.._ ~__ooo r~ 50f»0 1 c)C~00(l 1 `,(n[1{)(1 Zc~Ui~1UU 1:)l'ItliJtJ .~[JUUUL'1 JJl'JVVIJ -,..,i~v~~v (~trrnped Vc~ I ~irne , qa 1 • • Attachment 6 • • 132:0502 Fuc~AL RcCULnT1CVS made a part of the aaplicable UIC pro- 3ram under the SD~YA for the State of Alabama. This incorporation by reie:ence was approved by the Director of the Fed- eral Register on June 25, 1984. (1) Code of Alabama 1975, § § 9-17-1 through 9-17-110 (1980 and Supp. 1983); (2) State Oil and Gas Board of Ala- bama, Oil and Gas Report 1 (supple- mented) (1981), General Order Pre- scribing Rules and Regulations Governing the Conservation of Oil and Gas in Alabama (Order No. 76-100) as amended by Board Order No. 82-96 (fay 14. 1982J.amending Rule E-4). (b) The Memorandum of Agreement between EPA Region IV and the Alabama Oil and Gas Board, signed by the EPA Regional Administrator on June 15, 1982. (c) Statement of Lego! Authority. "State Oil and Gas Board has Authority to Carry Out Underground Injection Con• trot Program Relating to Class fI Wells as Described in Federal Safe Drinking Water Act -Opinion by Assistant Attorney General." play 28, 1982. (d) The Program Description and any other materials submitted as part of the application or as supplemenu thereto. §147.SI State-administered program - .CIass I, III, IV and V wells The UIC program for Class I, III, IV and V wells in the State of Alabama is the program administered by the Alabama Department of Environmental Manage- ment, approved by EPA pursuant to Sec- tion 1422 of the SDWA. Notice of this approval was published is the Federal Register on August 25, 1983 (48 FR 33ti40); the effective date of this program is August 25. 1983. This program consists of the following elements, as submitted to EPA in the State's program application: (a) Incorpororioa by reference. The «- quiremenu set forth in the State statutes and regulations cited in this paragraph are hereby incorporated by reference and made a part of the applicable UIC pro- gram under SDWA for the State of Ala- bama. This incarpontion by reference was approved by the Director of the Federal Register on June 25, 1984. (1) Alabama Water Pollution Contras Act, Cade of Alabama 1975, §§Z2-23-1 through 22 22-14 (1980 and Suop. 1983}; (2) Regulations, Policies and Proce- dures of the Alabama Water Improve' menc Commission, Title I (Regulations) Rev. December I9S0), as amended bfay 17, 1982, to add Chapter 9, Underground Injection Cantroi Regulations (effective June !0. 1982), as amended April 6, 1983 (effective May 11, 1983). (b) The Memorandum of Agreement between EPA Region iV and the Alabama Department of Environment Management signed by the EPA Regional Administra- tor on May 24, 1983. (c) Statement of Legal Authority. (1) "VYater Pollution-Publ:'c Health-State has Authority to Cary Out Underground injection Control Frogram Described in Federal Safe Drinking Water Act- Opinion by Legal Counsel for the 4Yater Improvement Commission,'' June 25. 1982: (~) Letter from Attorney, Alabama Water Improvement Commission. to Regional Administrator. EPA Region IV. "Re: AWIC Response to Phillip Tote's (U.S. EPA. Washington) Comrsents on AVJIC's Firal Application for Class !.III. IV, and V UIC Program," September 21. 1982: - - (3) Letter from Alabama Chief Assistant Attorney General to Regional Counsel EPA Region IV, "Re: Status of Independent Legal Counsel in P.Iabama Water Improvement Commission's Underground Injection Control Program," September 14,1982. (d) The Program Description and any other materials submitted as part of the application or as supl:lements thereto. Subpart C-Alaska § 147.100 State-administered program. (Reserved! §147.101 EPA-administered program. (a) Cortrenrs. The UIC program for the State of Alaska is administered by EPA. This program consists of the UIC program requirements of 40 CFR Para 124, 144, and 146, and additional requirements set forth in the remainder of this subpart. Injection well owners and operators, and EPA, shall comply with these requirements, Page 1 of 1 E~vvonmsnt Reoorte- (b) £tjective sate. The a^ective date of the UIC program for Alaska is: June ?5, 1984. §147.102 Aquifer exemotiotts. (a) This section identities any aouifers or their portions exempted in aecordance with §§ 14a.7(b) and 146.4 of this chanter at the time oC program promuiaation. EPA may in the future exempt other aquifers or portions, according to applica- ble procedures, without cadif}ing such ex- emptions in this section. An uoQaeed List of exemptions will be mainuined in the Re• gional ot{'ice. (bj -The following aquifers are exempted in accordance with the provisions of §§14-i.7(b) and 146.4 of this chanter for Class Ii injection activities only: (i) The portions of aauiiers in the Kenai Peninsula. Qreater than the indict- ed deoehs below the ttrouad surface. 2nd described by a :~. mile arc beyond sad Tying directly below the fallowing oil and gas producing fields: (A) Swanson River meld-1700 fee:. - (B) Beaver Creak Field-I6~0 fee» (C} Kenai Gas Field-1300 feet. (2) The portion of aouifers beneath Cook Inlet described by a '.~~ mile area beyond and lying directly below the iol- lowine oil and gas producing neids: (A) Granite Paint. (B) ~Ic;arthur River Field. (C) Middle Ground Shoal Feld. (D) Trading Bay Field. (3) The portions of aouifers on t'•o North Slope described by a 4: mile area beyond and lying directly below the ICu- paruk River Unit ail and acts producing field. § 147.103 Existing class I, II (except en- • harteed recovery and hydrocarbon stonge~ and III wells authorized by rule hlazimum injection pressure. The own- er oroperator shalt limit injection pressure to the lesser oF: (a) A value whic3'i will not exe:ed the operating requirements of § 144.23(f)(3)(i) or (ii) as applicable; or (b) A value for well head pressure cai- culated by using the following formula: Pm=(0.733-0.433 Sg)d where [See- 147.101(b11 t52 ~ ~ NOTICE OF PUBLIC HEARING STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The application of Marathon Oil Company for an order authorizing the underground disposal by injection of Class II oil field waste at the Beaver Creek Unit, Beaver Creek Field. .Marathon Oil Company by letter dated March 15, 1993 has requested an order in conformance with 20 AAC 25.252. This order would authorize the disposal of Class II oil field waste by injection into the Sterling Formation of the Beaver Creek Unit 3 well (Sec. 34, T7N, R10W. SM). A person who may be harmed if the requested order is issued may file a written protest prior to 4:00 PM April 16, 1993 with the Alaska Oil and Gas Conservation Commission, 3001 Porcupine Drive, Anchorage, AK 99501, and request a hearing on the matter. If the protest is timely filed and raises a substantial and material issue crucial to the Commission's determination, a hearing on the matter will be held at the above address at 9:00 AM on May 3, 1993 in conformance with 20 AAC 25.540. If a hearing is to be held, interested parties may confirm this by calling the Commission's office, (907) 279- 1433 after April 16, 1993. If no protest is filed, the Commission will consider the issuance of the order without a hearing. Russell A Douglass Commissioner Alaska Oil and Gas Conservation Commission Published April 1, 1993