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Home My WebLink AboutDIO 021• s 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 b direct inspection of the file. ~~ .~~~ Order File Identifier Organizing (done> RE AN Color Items: ^ Greyscale Items: ^ Poor Quality Originals: ^ Other: NOTES: BY: Maria Project Proofing BY: Maria n~fo• ~~l Scanning Preparation x 30 = BY: Maria Date: ~~~ Production Scanning _ + =TOTAL PAGES Ia. ~(J (Count does not include cover sheet) lsl IIIII~IIIIIIII VIII Stage 1 Page Count from Scanned File: J~~"---,~ (Count does include cover sheet) Page Count Matches Number in Scanning Pr partition: YES NO BY: Maria Date: ~ ~ f ! ~ /s/ '~/ Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO , 1' BY: Maria Date: ~~~ Scanning is complete at this point unless rescanning is required. ReScanned IIIII~IIIIIIII VIII BY: Maria Date: /s/ Comments about this file: Quality Checked III I~III~IIIII~IIII Two-sided IIIII~IIIIIIIIIIII) DIGITAL DATA ^ Diskettes, No. ^ Other, No/Type: Date: ~ / p~, ke,~a~~eeeea iiiimiiiiuiiuu OVERSIZED (Scannable) ^ Maps: ~ther Items Scannable by a Large Scanner ~OCs OVERSIZED (Non-Scannable) ^ Logs of various kinds: ~o,~e, ~P =,iuumuiiwiiii~~ 10/6!2005 Orders File Cover Page.doc L~ • DISPOSAL INJECTION ORDER #21 Flaxman Island 1. October 16, 2000 ExxonMobil Application for DIO Flaxman Island 2. October 28, 2000 Notice of Hearing, Affidavit of Publication 3. December 7, 2000 E-mail from Fairweather to AOGCC 4. December 21, 2000 inter-office e-mail 5. February 9, 2001 inter-office e-mail 6. February 26, 2001 ExxonMobil's ltr re: AK State A-2 Disposal Well, Flaxman Island reserve Pit Closures, Class II Waste Clarification 7. March 5, 2001 AOGCC response to 2/26/01 request 8. March 2, 2001 Exxon Application for disposal 9. September 27, 2004 Proposal to amend underground injection order Disposal Injection Order #21 b~ :J ~~ 7 ~ r lei ~ { { ~ ~ ~ F i r x ;~ ~. ~ 1 J ~ ~ i },~ j ~ '`% ~ ~~ ' °~ + ~^~ ~°+~ t~ FRANK H. MURKOWSKI, GOVERNOR ~' O.t/t-s~t-7~~1AT OIL ~DG~S 333 W. 7"' AVENUE, SUITE 100 CO~S~RQAiiOl` COr~IISSIOR 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 Inte~y 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 Inte rite 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 ~ 9 Fields AIO 3 -Prudhoe Bay Unit; Western Operatin Area 6 ~ 9 AIO 4C -Prudhoe Bay Unit; Eastern Operatin Area 6 ~ 9 AIO 5 -Trading Bay Unit; McArthur River Field 6 6 9 AIO 6 -Granite Point Field; Northern Portion 6 ~ 9 AIO 7 -Middle Ground Shoal; Northern Portion 6 ~ 9 AIO 8 -Middle Ground Shoal; Southern Portion 6 ~ 9 AIO 9 -Middle Ground Shoal; Central Portion 6 ~ 9 AIO l OB -Milne Point Unit; Schrader Bluff, Sag River, 4 5 g Kuparuk River Pools AIO 11 -Granite Point Field; Southern Portion 5 6 8 AIO 12 -Trading Bay Field; Southern Portion 5 6 8 AIO 13A -Swanson River Unit 6 ~ 9 AIO 14A -Prudhoe Bay Unit; Niakuk Oil Pool 4 5 8 AIO 15 -West McArthur 5 6 9 • CJ Affected Rules Injection Order "Demonstration of "Well Integrity "Administrative Mechanical Failure and Action" Inte rity" 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 Dis osal In'ection orders DIO 1 -Kenai Unit; KU WD-1 No rule No rule No rule DIO 2 -Kenai Unit; KU 14- 4 No rule No rule No rule DIO 3 -Beluga River Gas Field; BR WD-1 No rule No rule No rule DIO 4 -Beaver Creek Unit; BC-2 No rule No rule No rule DIO 5 -Barrow Gas Field; South Barrow #5 No rule No rule No rule DIO 6 -Lewis River Gas Field; WD-1 No rule No rule 3 DIO 7 -West McArthur River Unit; WMRU D-1 2 3 5 DIO 8 -Beaver Creek Unit; BC-3 2 3 5 DIO 9 -Kenai Unit; KU 11- 17 2 3 4 DIO 10 -Granite Point Field; GP 44-11 2 3 5 I~ L • 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 D 1 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; KF 1 3 4 7 Stora a Injection Orders SIO 1 -Prudhoe Bay Unit, Point McIntyre Field #6 No rule No rule No rule SIO 2A- Swanson River Unit; KGSF #1 2 No rule 6 SIO 3 -Swanson River Unit; KGSF #2 2 No rule 7 Enhanced Recove In'ection Orders EIO 1 -Prudhoe Bay Unit; Prudhoe Bay Field, Schrader No rule No rule 8 Bluff Formation Well V-105 • Affected Rules Injection Order "Demonstration of "Well Integrity _ "Administrative Mechanical Failure and Action" Integrity" Confinement" EIO 2 -Redoubt Unit; RU-6 5 g q 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /~ ORDER AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF AO-02 514016 ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR_INVOICE AQI3RESS F AOGCC R 333 West 7`h Avenue, Suite 100 ° Anchorage, AK 99501 "' 907-793-1221 AGENCY CONTACT I DATE OF A.O. _~ ~~ - ADVERTISEMENT REQUIRED: o Journal of Commerce 301 Arctic Slope Ave #350 Anchorage, AK 99518 October 3, 2004 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 State of ss division. Before me, the undersigned, a notary public this day personally appeared 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, REMINDER INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. ATTACH PROOF OF PUBLICATION HERE Notary public for state of My commission expires _ Public Notices Subject: Public Notices From.: Jody Colombe <jody colombie@admi:n.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>, Ar-~ela ~~"ebb <ange_webb@admin.state.ak.us>, RobertE Mintz <robert mintz~u?1a4~.state.ak.us>, Christine Hansen <e.hansen@io@c.state.ok.us=-, Terrie Hubbte <hubbletl(~bp.~om>, Sondra Ste~vman <StewmaSl7@BP.com>,5€ott & CarnmyTaylur<staylor@alaska.net%, stanekj <stanekj@unocaI.com>, ecolaw <ecolaw@trustees.org> rQSeragsdale <roseragsdal@gci.net~, trmjrl <trmjrl@aol.com>, Jbrddle<jbriddle@marathonoil.cQm>. rockhill <rockhil~~iaoga.~rg>, shaneg <shaneg@evergreengas.cc~m>,, jdarlington-<jdarlington@forestoil.com>, nelson <knelson@petroleumnews.com>, ebc~ddy <eboddy@usbelli.com>, Mark Dalton <mark.dalto~@hdrinc.com>, Shannon Dor~nelly<shannon.donnelly~i!conocophiliips.com>, "dark F: Worcester" <mark.p.worcester@eonocophiltips.com>, "Terry ~'. Dethlefs" <@rry.c.dethlefs~icono~ophillps.et~m>, Bob <bob~a,iriletkeeper.org%, w~d~• <wdti~@dnr.state.~k.us>, tjr <tjr@dnrstate.ak.us>, bhritch <bhritch@alaskanet>, nljnelson <mjnelson@purvingertz.cam>, Charles O'Donnell <charles.o'donnell@veco.com>, "Randy L. Skillern" ~Ski11eRL@BP.com>, "Deborah J. Jones" <JonesD6~a BP.cam>, "Paul G. Hyatt" <=hyattpg(aBP.com~, "Ste~~en R. Rossberg" <RossbeRS@BP.com>, Lois <lois@nletkeeper.org%, Dan Bross -=kuacnews(~1-,kuac.org>, Gordon Pospisil <PospisG@BPeom>, 'kFrancis ~. Sommer" <SommerFS~;BP.com>, Mikel Schultz <Mikel.Schtrltz@BP.com>, "Nick W~. Gl~sver" <GloverNtiV~~zBP.com>, "Daryl J. Kleppin" <KleppiDE@BP.eom>,"JanetD. Platt" ~PlattJDcxBP.eom>, "Rosanne ~1. Jacobsen" <JacobsRM@BP.cUm~, ddankel <ddonkel@fl.rr.cutn~=~. Collins Mount <collns mount@evenue.state.ak.us~, mckay <mckay(a;gci.net>. Barbara F Fullmer <Barbara.f.fullmer@conocophiliips.egm>, bocastwf <hocast~~ f~ bp.com=>. Charles Bark~.r -. <Barker@usgs.gov>, do@_schultze ~dou~ Schultze@~toenergy.com%, Hank Alford <hankalfordna,exxanmobil.com> , ~~Tark Kovac <yesnol~,gci.net>, aspfoff <gspfoff@aurorapower.com>, Gregg Nady <gregg.nady~a;;shell.com>, Fred Steece <fred.steece~c~state.sd.u~ ~, rcrotty <rcrotty@eh2m.cam> jejones ~~ jejones@aurorapo«er.com=>, dapa <dapa@alaska.net>, jroderick <jroderick@gci.nct>, ey~ancy ~eyancyc~iseal-tite.net==, "James M. Ruud"-<fames.m.ruud«i:~conocophillips.eom>, Brit Lively <mapalaska@ak.net>, fah <jah@dnr.state.ak.us>, Kurt E Olson <kurt_olso@;legis.stat~.ak.us>, buonoje ~buonoje«i-bp.com>, MarkHanley~<rnark hanley@anadarko.com>, Ioren Leman <loren Leman@;go~ .state.ak.us>, Julie Houle <julie_houle@dnr. tate.ak.us>, John W Katz ~@vkatz~a;sso.or~>, Suzan J Hill <suzan ~h@dec.state.ak.us>, tablUrk~~_tablerk@unocaLcom>, Brady <brady(a;aoga.org>, Brian Havelock <be@dnr.state.ak.us->, @opp <@opp@borough.kenai.ak.us>, Jim ~'~'hite <jimwhite@atx.rreom=~, "John S. Ha~=orth" <john.s.haworth<<L~.exxonmobil.com>, many <marty@kndustriaLcom= , ghammons ~ghan~alons(u?aoLcom>, rmclean <rmcleart@pobox.alaska.net=-,mknz7200 <mkm72U(1~~z'aoLcom>, Brian Gillespie <ilb~g@uaa.alaska.edu=>, David L Boelens <dboelens(a;aurorapower.com?, Todd Durkee <'FDLTRKEE@KIv1G.c~m>, Gary Schultz <ary_schultz~i~,dnr.state.ak.us>, Wamt Rancier <RANCIER@petro-canada.ca==, Bill Tiller <Bill 1~Tiller~a xtoalaska.com>. Brandon Ciagtlon <bgagnan@Brenalaw.com>, Paul Winslo~ti~ <pm~ti~inslow@~forestoil.com>, Garry Catron <eatrongr@hp.com>, Sharmail~e Copeland <copelasv@bp.com>, Suzanne Allexan <sallexan«i'shelmenergy.com%, Kristin Dirks <kristin_dirks@dnr.state.ak.us>, Kavnell Zeman <kjzetn~an@~~,m~n-athonoiLcom>, John'Tower<John.Tower,c%eia.doe.~o~->, Bill Fotivler <Bill_Fowler@anadarko:COM>, Vaughn Swartz <~raughn.swartz~iirbccm.com>, Scott Cranswick 1 of 2 9/29/2004 1:10 PM Public Notices • <scott.cranswic@mms.gov>, Brad McKim <mckimbs@BP.cam> Please find the attached Notice and Attachment for the proposed amendment. of underground injection orders and the Public Notice Happy Valley #10. Jody Colombe Content-Type: appiication~'msward 'NTechanical Integrity proposal.doc Content-Encoding: base64 __ __ i Content-Type: apglication/r~sword lt'Iechanical Integrity of Wells Notice.doc !Content-Encoding: base64 Content-Type:. applicaton;`msword HappyV alleyl0_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@alaskajaurnal. com Please publish the attached Notice on October 3, 2004. Thank you. Jody Colombie Content-Type: application/msword 'Mechanical Integrity of Wells Notice.doc ; Content-Encoding: base64 ____ __ . Content-Type: application/msword Ad Order form.doc Content-Encoding: base64. I 1 of 1 9/29/2004 1:10 PM Cit o P tr l C i g e o eum orporat on Mary Jones David McCaleb PO Box 3758 XTO Energy, Inc. IHS Energy Group Tulsa, OK 74136 Cartography GEPS 810 Houston Street, Ste 2000 5333 Westheimer, Ste 100 Ft. Worth, TX 76102-6298 Houston, TX 77056 Kelly Valadez Robert Gravely George Vaught, Jr. Tesoro Refining and Marketing Co. 7681 South Kit Carson Drive PO Box 13557 Supply & Distribution Littleton, CO 80122 Denver, CO 80201-3557 300 Concord Plaza Drive San Antonio, TX 78216 Jerry Hodgden Richard Neahring John Levorsen Hodgden Oil Company NRG Associates 200 North 3rd Street, #1202 408 18th Street President Boise, ID 83702 Golden, CO 80401-2433 PO Box 1655 Colorado Springs, CO 80901 Kay Munger Samuel Van Vactor Michael Parks Munger Oil Information Service, Inc Economic Insight Inc. Marple's Business Newsletter PO Box 45738 3004 SW First Ave. 117 West Mercer St, Ste 200 Los Angeles, CA 90045-0738 Portland, OR 97201 Seattle, WA 98119-3960 I Mark Wedman Schlumberger ! David Cusato Halliburton Drilling and Measurements 200 West 34th PMB 411 6900 Arctic Blvd. 2525 Gambell Street #400 Anchorage, AK 99503 Anchorage, AK 99502 Anchorage, AK 99503 Baker Oil Tools Ciri Jill Schneider 4730 Business Park Blvd., #44 Land Department US Geological Survey Anchorage, AK 99503 PO Box 93330 4200 University Dr. Anchorage, AK 99503 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 Williams Thomas North Slope Borough Arctic Slope Regional Corporation PO Box 69 Land Department Ban'ow, AK 99723 PO Box 129 Barrow, AK 99723 [Fwd: Re: Consistent Wording for Injection ~rs -Well Integrity ... Subj,eet: [Fwd: Re: Consistent Wording for Inje~tion:Orders - From: Jolut Norman <john_norman@admin.state.ak.us> Date: Fri, 0'1 Oct 2004 11:09:26 -0800 To:..Jody J Colombie <jody_colombie@admin.state.ak.us> more • Well Integrity (Revised) ------- Original Message -------- Subject:Re: Consistent Wording for Injection Orders -Well Integrity (Revised) Date:Wed, 25 Aug 2004 16:49:40 -0800 From:Rob Mintz <robert mintz(a~law.state.ak.us> To:_jim re~g(aadmin.state.ak.us CC:dan seamount(a~admin.state.ak.us, john norman(c~admin.state.ak.us Jim, looks good, but I still think maybe it would be good to include the following sentence or something like it in the well integrity and confinement rule: "The operator shall shut in the well if so directed by the Commission." My thinking is that otherwise, an operator might argue that the Commission can only require the well to be shut in by going through an enforcement action, issuing an order after notice and opportunity for hearing, or meeting the strict requirements for an emergency order under the regulations. The proposed language makes clear that it is a condition of the authorization to inject, that the operator must shut in the well if directed by the Commission after a notification of loss of integrity, etc. »> James Regg <jim reg~~;admin.state.ak.us> 8/25/2004 3:15:06 PM »> Rob -Thanks for the review; here's a redraft after considering your comments. I have accepted most of the suggested edits; also attached is response to questions you pose (responses are embedded in the comments, using brackets [JBR - ...] to set apart from your questions). Jim Regg Rob Mintz wrote: Jim, I have some questions about the draft language, which are shown as comments on the first document attached. Based on my current guesses about what the answers will be to my questions, I also have some suggested edits, which are shown as redlines on the second document attached. »> James Regg <jim rea~(aadmin.state.ak.us> 8/17/2004 4:33:52 PM »> Please delete previous version (email sent 8/9/04); I found another inconsistency in the injection orders regarding well integrity that I have integrated into the proposed fix. Attached is a proposal for consistent language in our injection orders addressing 3 rules related to well integrity: - "Demonstration of Tubing/Casing Annulus Mechanical Integrity" - "Well Integrity Failure" - "Administrative Actions". This proposal includes input from all Sr. staff (except Jack). If you agree with the approach, I'll work with Jody to prepare the public notice. Main points - Demonstration of Tubing/Casing Annulus Mechanical Integrity - standardizes the wording used for mechanical integrity demonstrations, and establishes abililty to grant alternate methods (e.g., temp survey, logging, pressure monitoring in lieu of pressure testing 1 of 2 10/2/2004 4:07 PM [Fwd: Re: Consistent Wording for Injection~ers -Well Integrity ... • - specific to AIO 2C for Kuparuk, there is wording that is more appropriately included in Well Integrity Failure (i.e., more frequent MITs when communication demonstrated) - establishes more frequent MIT schedule for slurry injection wells (every 2 yrs) which is consistent with our current practice (but not addressed in regulations) Well Integrity Failure - retitles to "Well Integrity Failure and Confinement"; inserted language regarding injection zone integrity (see DIO 25 and 26) - consistent language regardless of type of injection (disposal, EOR, storage); - eliminates requirement for immediate shut in and secure; allows continued injection until Commission requires shut in if there is no threat to freshwater; - eliminates delay in notifying Commission after detect leakage or communication ("i.e., "immediately notify"); - removes language about notifying "other state and federal" agencies; - requires submittal of corrective action plan via 10-403; - requires monthly report of daily injection rate and pressures (tubing and all casing annuli); this is a requirement we currently impose when notified of leak or pressure communication; - notice and action not restricted to leaks above casing shoe as stated in several DIOs Administrative Actions - adopts "Administrative Actions" title (earlier rules used "Administrative Relief'); -consistent language regardless of type of injection (disposal, EOR, storage); - uses "administratively waive or amend" in lieu of terms like "revise", "reissue", etc.; - adds geoscience to "sound engineering principles"; - language is more generic regarding fluid movement out of zone; existing versions mention varying combinations of protecting "freshwater", "aquifers", "USDWs"; "risk of fluid movement"; "fluid escape from disposal zone" Jim Regg John K. Norman <John Norman(a,admin.state.us> Commissioner Alaska Oil & Gas Conservation Commission 2 of 2 10/2/2004 4:07 PM [Fwd: Re: Consistent Wording for Injection ~rs -Well Integrity ... • Subject: [Fwd: Re: Consistent, Wording for Injection Orders -Well Integrity (Revised}) From: John-Norman <john_norinan@admin.state.ak.us> Date: Fri, Ol Oct 2004 11:08:55 -0800 To: Jody J Colombie <jolly_calombie@adrninstate.ak.us> please print all and put in file for me to review just prior to hearing on these amendments. thanx ------- Original Message -------- Subject:Re: Consistent Wording for Injection Orders -Well Integrity (Revised) Date:Thu, 19 Aug 2004 1:46:31 -0800 From:Rob Mintz <robert mintz(d~,law.state.ak.us> To:dan seamount(a~admin.state.ak.us, jim regg(aadmin.state.ak.us, john norman(a~admin.state.ak.us Jim, I have some questions about the draft language, which are shown as comments on the first document attached. Based on my current guesses about what the answers will be to my questions, I also have some suggested edits, which are shown as redlines on the second document attached. »> James Regg <jim regg(cyadmin.state.ak.us> 8/17/2004 4:33:52 PM »> Please delete previous version (email sent 8/9/04); I found another inconsistency in the injection orders regarding well integrity that I have integrated into the proposed fix. Attached is a proposal for consistent language in our injection orders addressing 3 rules related to well integrity: - "Demonstration of Tubing/Casing Annulus Mechanical Integrity" - "Well Integrity Failure" - "Administrative Actions". This proposal includes input from all Sr. staff (except Jack). If you agree with the approach, I'll work with Jody to prepare the public notice. Main points - Demonstration of Tubing/Casing Annulus Mechanical Integrity - standardizes the wording used for mechanical integrity demonstrations, and establishes abililty to grant alternate methods (e.g., temp survey, logging, pressure monitoring in lieu of pressure testing - specific to AIO 2C for Kuparuk, there is wording that is more appropriately included in Well Integrity Failure (i.e., more frequent MITs when communication demonstrated) - establishes more frequent MIT schedule for slurry injection wells (every 2 yrs) which is consistent with our current practice (but not addressed in regulations) Well Integrity Failure - retitles to "Well Integrity Failure and Confinement"; inserted language regarding injection zone integrity (see DIO 25 and 26) - consistent language regardless of type of injection (disposal, EOR, storage); - eliminates requirement for immediate shut in and secure; allows continued injection until Commission requires shut in if there is no threat to freshwater; - eliminates delay in notifying Commission after detect leakage or communication ("i.e., "immediately notify"); - removes language about notifying "other state and federal" agencies; - requires submittal of corrective action plan via 10-403; - requires monthly report of daily injection rate and pressures (tubing and all casing annuli); this is a requirement we currently impose when notified of leak or pressure communication; - notice and action not restricted to leaks above casing shoe as stated in several DIOs Administrative Actions 1 of 2 10/2/2004 4:07 PM [Fwd: Re: Consistent W"ording for Injection~rs -Well Integrity ... • - adopts "Administrative Actions" title (earlier rules used "Administrative Relief'); -consistent language regardless of type of injection (disposal, EOR, storage); - uses "administratively waive or amend" in lieu of terms like "revise", "reissue", etc.; - adds geoscience to "sound engineering principles"; - language is more generic regarding fluid movement out of zone; existing versions mention varying combinations of protecting "freshwater", "aquifers", "USDWs"; "risk of fluid movement"; "fluid escape from disposal zone" Jim Regg John K. Norman <John Norman(a~admin.state.us> Commissioner ', Alaska Oil & Gas Conservation Commission _ _ 'Content-Type: application/msword ;Injection Order language - questions.doc i Content-Encoding: base64 Content-Type: application/msword Injection Orders language edits.doc Content-Encoding: base64 _ _ __ _ ____ _ _ _ _..___ 2 of 2 10/2/2004 4:07 PM # ~ Standardized Language for Injection Orders Date: August 17, 2004 Author: Jim Regg Demonstration of Tubin /Casing Annulus Mechanical Inte rity The mechanical integrity of an injection well must be demonstrated before injection begins, after a workover affecting mechanical integrity, and at least once every 4 years while actively injecting. For slurry injection wells, the tubing/casing annulus must be tested for mechanical integrity every 2 years. The MIT surface pressure must be 1500 psi or 0.25 psi/ft multiplied by the vertical depth, whichever is greater, must show stabilizing pressure and may not change more than 10% during a 30 minute period. Any alternate means of demonstrating mechanical integrity must be approved by the Commission. The Commission must be notified at least 24 hours in advance to enable a representative to witness pressure tests. Well Integrity Failure and Confinement The tubing, casing and packer of an injection well must demonstrate integrity during operation. The operator must immediately notify the Commission and submit a plan of corrective action on Form 10-403 for Commission approval whenever any pressure communication, leakage or lack of injection zone isolation is indicated by injection rate, operating pressure observation, test, survey, or log. If there is no threat to freshwater, injection may continue until the Commission requires the well to be shut in or secured. A monthly report of daily tubing and casing annuli pressures and injection rates must be provided to the Commission for all injection wells indicating pressure communication or leakage. 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. • Standardized Language for Injection Orders Date: August 17, 2004 Author: Jim Regg Demonstration of Tubing/Casing Annulus Mechanical Integrity The mechanical integrity of an injection well must be demonstrated before injection begins, at least once ever~,l four years thereafter (except at least once every two tears in the case of a slurrti~ infection well}, and. before returning ~ well to sen~ice follo~vina a workover affecting mechanical integrity, ~:.~~, ~* ~:,~..;* ,,.~,,,... ~ „~. ~ `y':.~zz.' ,:~.: ~~ , ,.t:... ~ ..~~ V Unless an altet-nate means is approved by the Commission mechanical integrity must be demonstrated by a tubing pressure test using a ~ ?v1~-Fsurface pressure of~~ 1500 psi or 0.25 psi/ft multiplied by the vertical depth, whichever is greater, that s~shows stabilizing pressure that does^"may not change more than 10°~ ercent during a 30 minute period. -ham The Commission must be notified at least 24 hours in advance to enable a representative to witness pressure tests. Well Inte~y Failure and Confinement Except as otherwise provided in this rule Tthe tubing, casing and packer of an injection well must deter=cnrsz~t~maintain integrity during operation. «jhenever andpressure con2municatian, leakage or lack of infection zone isolation is indicated by infection rate. oneratin~ 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, _ ,y . , The operator shall shut in the well if so directed by the Commission The operator shall shut in the well without awaiting a response liorr~ the C'ornmission if continued operation would he unsafe or would threaten contamination of fresh~vaterT.f t"~~„ ~., ~. *~ k *,~ ~ ~_.~,. ~* ,*• f• t-, +~,. c~-~~^~~-_---___ _°~a~~__ *t_.... ~'? *" ! ~?:~t ~r, ~., ~,~ ~ Until corrective action is successfully v uc vu. completed, Aa monthly report of daily tubing and casing annuli pressures and injection rates must be provided to the Commission for all injection wells indicating pressure communication or leakage. 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. ,[Fwd: Re: [Fwd: AOGCC Proposed WI Lan for Injectors]) Subject: [Fwd: Re: [Fwd: AOGCC Proposed WILanguage for Injeetbrs]) From: Winton Aubert <winton aubert@admin.state.ak.us> Date: Thu, 28 Oct 2004 09:48:53 -0800 To: 3ady 1 Colornbe <jady_cotombie@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*_** 1 of 3 10/28/2004 11:09 AM [Fwd: Re: [Fwd: AOGCC Proposed WI Lane for Injectors]] return'_ng 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 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 » 2 of 3 10/28/2004 11:09 AM ~~ STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 Porcupine Drive Anchorage, Alaska 99501-3192 Re: THE APPLICATION OF ) Disposal Injection Order No. 21 EXXONMOBIL PRODUCTION ) COMPANY ("ExxonMobil") for disposal ) Well Alaska State A-2 of Class II oil field wastes by underground) Flaxman Island injection in the Alaska State A-2 well on ) Flaxman Island. Reissued on March 2, 2001 IT APPEARING THAT: 1. By application dated October 16, 2000, ExxonMobil requested authorization from the Alaska Oil and Gas Conservation Commission ("Commission") to dispose of Class II oil field waste fluids by underground injection into the Alaska State A-2 well, located in Section 27, Township 10 North, Range 24 East, Umiat Meridian. 2. The Commission published notice of opportunity for public hearing in the Anchorage Daily News on October 28, 2000. 3. The Commission did not receive a protest or a request for a public hearing. FINDINGS: 1. ExxonMobil proposes drilling the Alaska State A-2 disposal injection well for the purpose of disposing of Class II oil field wastes that are currently stored on Flaxman Island in former reserve and flare pits. 2. The Alaska State A-2 well will be located on State of Alaska lease number ADL 47556, which is owned and operated by ExxonMobil. There are no other operators within aone- quartermile radius of the proposed disposal injection well. 3. The Alaska State A-1 well is the only well within one-quarter mile of the proposed disposal well. The well was drilled, plugged and abandoned in 1975 and subsequently re- abandoned in 1998. The vertical well is located a distance of 300 feet east of the proposed Alaska State A-2 well. 4. ExxonMobil has provided an affidavit showing that they provided a copy of the application for disposal to the State of Alaska, Department of Natural Resources, the only surface owner within aone-quarter mile radius of the proposed disposal injection well. Disposal Injection Order No. March 2, 2001 Page 2 ExxonMobil proposes to conduct disposal injection within the proposed Alaska State A-2 well in strata of the Sagavanirktok Formation, which is common to and correlates with the interval between 2,150 and 2,350 measured depth feet in the Alaska State A-1 well. 6. The base of the permafrost in the adjacent Alaska State A-1 well is at a depth of approximately 1,500 measured depth feet. 7. The proposed disposal zone in the Alaska State A-2 well is confined by over 120 feet of mudstone that lie above the disposal interval and below the base of the permafrost. 8. Based on analysis of the Alaska State A-1 well logs, the proposed injection intervals between the measured depths of 2,150 and 2,350 feet are friable sandstones and conglomerates which have average porosities of 28% and can reasonably be expected to have permeability ranging to one darcy. 9. ExxonMobil expects 20 feet of perforations between 2,330 and 2,350 feet in the Alaska State A-2 well will be sufficient for the proposed disposal project. If additional perforations are needed, they will be added above 2,330 feet. No perforations are planned above 2,150 feet. 10. A cement bond log will be run and cement records evaluated to ensure that the Alaska State A-2 well is cemented adequately to isolate the proposed disposal interval. 1 1. The well will be completed with 7 inch conductor set at 80 feet measured depth, and 5 inch surface casing set at 2,400 feet measured depth and cemented to surface in two stages. The first stage will extend from total depth to 900 feet, while the second stage will extend from the cementing collar at 900 feet to the surface. 12. The well will be equipped with 2-3/8 inch tubing string and packer set at approximately 2,000 feet. 13. ExxonMobil intends to utilize the Alaska State A-2 well to dispose of approximately 15,000 to 25,000 cubic yards of drilling wastes using grind and inject technology. These wastes accumulated in former reserve and flare pits while drilling the Alaska State A-1 and G-2 wells. Additional wastes created from drilling the Alaska State A-2 well will also be ground and injected in the same well. ExxonMobil estimates approximately 200,000 barrels of slurry will be injected. 14. The waste stream will consist of Flaxman Island reserve and flare pit wastes and waste drilling muds and cuttings from the Alaska State A-2 disposal well, commingled with additional water necessary to create an injectable slurry. 15. Using a portable grind and inject system, ExxonMobil estimates that the daily volume injected will be 250 to 400 cubic yards, or 1,200 to 1,900 barrels of waste material per day. 16. ExxonMobil estimates the surface injection pressure will not exceed 1,000 psi at an injection rate of 5 barrels per minute. Estimated average injection rates are 2.3 to 3.7 barrels per minute. Disposal Injection Order No:~ March 2, 2001 Page 3 17. Fracture modeling using unlikely, worst-case scenario parameters, estimated a single vertical fracture might partially penetrate the upper confining zone. Under planned, normal operational parameters, the disposal fractures are not expected to penetrate the confining zone. 18. The modeled fracture length could possibly communicate with the nearby wellbore of the Alaska State A-1 well. Evaluation of cementing records indicate that the Alaska State A-1 casing strings were fully cemented during drilling and that all annuli were plugged from 231' to surface during subsequent abandonment in 1998 19. ExxonMobil will perform a step rate test to establish optimum injection rates and pressures. The step rate test will be incrementally increased to pump rates 100% in excess of the maximum anticipated injection rates for waste disposal. Pressure falloff data will be collected at the end of the step rate test. 20. Reservoir surveillance techniques including but not limited to, step rate injection tests, monitoring operational parameters and temperature logging will be used for tracking near wellbore fluid movement, estimating dimensions of disposal fracture or disposal storage volume and detecting changes in disposal zone characteristics. 21. There are no freshwater aquifers underlying the proposed project area. Based on well log analysis, the total dissolved solids concentrations in the proposed injection zone are estimated to be between 20,000 to 30,000 parts per million in the adjacent Alaska State A-1 well. 22. After completion of injection operations, ExxonMobil plans to plug and abandon Alaska State A-2 in accordance with 20 AAC 25. CONCLUSIONS: 1. The application requirements of 20 AAC 25.252 have been met. 2. Those portions of aquifers underlying the Alaska State A-2 well are too naturally saline to be considered potential sources of drinking water. 3. Permeable strata, which are common to and correlate with the portion. of the Sagavanirktok Formation between 2,150 and 2,500 measured depth feet in the Alaska State A-1 well, are likely to be present in the Alaska State A-2 well. These strata can reasonably be expected to contain the total volume of disposal fluids anticipated for this project. 4. Waste fluids will be contained within appropriate receiving intervals by confining lithologies, cement isolation of the wellbore and operating conditions. Disposal injection operations in the Alaska State A-2 well will be conducted at rates and pressures below those estimated to fracture the confining zones. 6. Evaluation of operational performance data and reservoir surveillance data will aid in preventing fracturing of the confining zones. Disposal Injection Order No.~ March 2, 2001 Page 4 7. Surveillance of disposal material placement, daily monitoring of operating parameters, and demonstration of mechanical integrity prior to injection will reasonably assure the waste fluids are contained within the disposal interval. Disposal injection operations in the Alaska State A-2 well will not cause waste, jeopardize correlative rights, or impair ultimate recovery. NOW, THEREFORE, IT IS ORDERED: Rule 1 Authorized Injection Strata for Disposal Class II oil field waste fluids maybe injected in conformance with Alaska Administrative Code Title 20, Chapter 25, for disposal into Sagavanirktok Formation strata that are common to and correlate with the interval between 2,150 and 2,350 measured depth feet in the Alaska State A-1 well. Rule 2 Authorized Fluids This authorization is limited to Class II waste fluids as follows: excavated material from former reserve and flare pits on Flaxman Island and waste drilling muds and cuttings from the Alaska State A-2 disposal well commingled with necessary seawater to create an injectable slurry. The Commission may authorize the disposal of additional fluids not identified above on a case by case basis if the Commission determines they are suitable for disposal in a Class II well. Rule 3 Demonstration of Tubing/Casing Annulus Mechanical Integrity A schedule must be developed and coordinated with the Commission that ensures the tubing- casing annulus is pressure tested prior to initiating disposal, following well workovers affecting mechanical integrity and after an inactive period greater than 3 months. The casing must be tested at a surface pressure of 1500 psi or 0.25 psi/ft multiplied by the true vertical depth of the packer, whichever is greater. The test pressure must show a stabilizing trend and may not decline more than 10 percent within 30 minutes. The Commission must be notified at least twenty-four (24) hours in advance to enable a representative to witness pressure tests. The mechanical integrity of the tubing, packer and production casing in the Alaska State A-2 well must be demonstrated in accordance with 20 AAC 25.412 prior to commencing injection operations. Rule 4 Well Integrity Failure Whenever disposal rates and/or operating pressure observations or pressure tests .indicate pressure communication or leakage of any casing, tubing or packer, the operator must immediately notify the Commission, obtain Commission approval to continue injection and submit a plan for corrective action for Commission approval. Disposal Injection Order No.~ March 2, 2001 Page 5 Rule 5 Surveillance Prior to initiating disposal operations and after an inactive period greater than 3 months, a step rate injection test meeting the Commissions criteria must be conducted and a static temperature survey must be obtained. During disposal, the following operating parameters must be monitored continuously and evaluated whenever there is a change that might suggest a changing injection environment: 1. Injection pressure at the wellhead 2. Annulus pressure(s) During disposal, in addition to the two parameters noted above, the following information must be (a) recorded as continuously as practicable; (b) tabulated at least daily or more frequently if needed to convey the details of the disposal operations; and (c) evaluated whenever there is a change that might suggest a changing injection environment: 1. Solid waste volume processed 2. Seawater volume(s) used to slurrify solid waste 3. Disposal beginning and end times, as well as, length of actual injection operations 4. Disposal rate, also referred to as injection rate 5. Slurry type, density, temperature and volume(s) injected 6. Pre and post water flush fluid type, temperature and volume(s) 7. Freeze protection fluid type, temperature and volume(s) During disposal, the operator must submit the original charts or legible copies and daily tabulations on a weekly basis. When operational parameters indicate additional surveillance is prudent, subsequent step rate injection tests and static temperature surveys will be obtained and the Commission notified. Within 60 days of the completion of injection operations, or annually by July 1, if the operation extends beyond one year, a report evaluating the performance of the disposal operation and summary of surveillance activity and results must be submitted by July 1. Rule 6 Notification Seven days prior to spud date, ExxonMobil will provide the name and phone number of the person(s) responsible for 1) drilling operations, 2) surveillance reporting to the Commission and 3) disposal operations. The operator must immediately notify the Commission if it learns of any improper Class II injection. Additionally, notification requirements of any other State or Federal agency remain the operators' responsibility. Disposal Injection Order No March 2, 2001 Page 6 Rule 7 Administrative Action Upon request, the Commission may administratively revise and reissue this order or any of its rules upon proper showing that the change is based on sound engineering practices, will not allow waste fluids to escape from the disposal zone, and will not cause waste. Rule 8 Statewide Requirements Except where a rule stated above substitutes for a statewide requirement, statewide requirements under 20 AAC 25 apply in addition to the above rules. DONE at Anchorage, Alaska and dated March 2, 2001. ~~. D iel T. Seamou , Jr., Commissioner Alaska Oil and Gas Conservation Commission a Camille Oechsli Taylor, Commi ner Alaska Oil and Gas Conservation Commission Julie M. Heusser, Commissioner Alaska Oil and Gas Conservation Commission AS 31.05.080 provides that within 20 days after receipt of written notice of the entry of an order, a person affected by it may file with the Commission an application for rehearing. A request for rehearing must be received by 4:30 PM on the 23rd day following the date of the order, or next working day if a holiday or weekend, to be timely filed. The Commission shall grant or refuse the application in whole or in part within 10 days. The Commission can refuse an application by not acting on it within the 10-day period. An affected person has 30 days from the date the Commission refuses the application or mails (or otherwise distributes) an order upon rehearing, both being the final order of the Commission, to appeal the decision to Superior Court. Where a request for rehearing is denied bynonaction of the Commission, the 30-day period for appeal to Superior Court runs from the date on which the request is deemed denied (i.e., 10th day after the application for rehearing was filed). ~ 7 • ~~Q~C~ Ofd Q ~~ a o TONY KNOWLES, GOVERNOR 8~ OIL A11TD V[0-7 333 W. 7"' AVENUE, SWITE 100 COM.~IISSIOI~T ANCHORAGE, ALASKA99501-3539 - PHONE (907) 279-1433 FAX (907) 276.7542 March 5, 2001 Mr. James Branch Alaska Production Manager ExxonMobil Production Company Alaska Interest-Joint Interest U.S. P.O. Box 196601 Anchorage, AK .99519-6601. Re: Alaska State A-2 Disposal Well,. Flaxman Island Reserve Pit Closures, Class II Waste Clarification Dear Mr. Branch: The Commission has reviewed your request, dated February 26, 2001, for a determinaxion onthe acceptability of injecting non-hazardous propylene glycol into the Alaska State A-2 Class II disposal well. As you have described, approximately1500 feet of circulating hose filled with anon-hazardous .mixture of propylene glycol and water will be used to thaw frozen reserve pit contents for j disposal via the grind & inject process. The system has been tested in Anchorage and will be !~ routinely monitored while in operation. Although no leaks are anticipated, you have requested a determination in the unlikely event that a leak may occur... If a leak did occur, the propylene glycoUwater mixture would spill into the reserve pit, mixing with the reserve pit wastes being prepared for injection. The Commission may authorize requirements for a well or project that. are: less stringent if .injection does not occur into, through, or above freshwater, for the radius of investigation, mechanical integrity, operation, monitoring and reporting, to the extentthat the Commission .determines that the reduction in requirements will not result. in an increased riskof fluid movement into freshwater sources. 20 AAC 25.450. Onsite disposal into a Class II well of any spilled propylene glycoUwater mixture is certainly the preferred environmental management option.. Transporting this nonhazardous waste approximately 60 miles to Deadhorse`via rolligon for disposal introduces the risk of spills as well as increased air emissions for absolutely no environmental benefit. Any accidental propylene glycol spill may be injected into the Alaska State A-2 Class II disposal well. along with the reserve pit contents. Since el ,% cruel T. Seamount, Jr. Commissioner ~~ ExxonMobil Production Co Alaska Interest -Joint Interest U.S. P.O. Box 196601 Anchorage, Alaska 99519-6601 February 26, 2001 • tl O Production .Commissioner Julie Heusser Commissioner Camille Oechsli Taylor Commissioner Dan Seamount Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, Alaska 99501 Re: Alaska .State A-2 Disposal Well, Flaxman Island Reserve Pit Closures, Class II Waste Clarification Dear Commissioners Heusser, Oechsli Taylor, and Seamont: ExxonMobil Production Company (ExxonMobil) and Fairweather E&P Services, Inc. are currently completing the Alaska A-2 disposal well for disposal of drilling waste from the Alaska State A-1 and G-2 reserve pits. Disposal operations are anticipated to commence during early March. For the grind and inject (G&I) phase of the project,. Fairweather plans to thaw the drilling wastes using ground heaters and/or steam and then transfer the cuttings by pump and/or vacuum into the G&I disposal system. The ground heater units (4 each) consist of a 310,000 b.t.ia./hour heating unit, a circulating pump, and 1,500 feet of reinforced rubber hose connected as a closed circulating system. The heat transfer fluid is a mixture of water and propylene glycol (see attached MSDS). Propylene glycol is anon-hazardous fluid that is the environmentally preferred non-freezing agent for circulating heating and cooling systems. The- ground heater units are new equipment and have been. tested in Anchorage. During thawing operations, 1,500 feet of circulating hose per unit will be laid out on top of the drilling waste. The hose will carry the heat transfer fluid over the drilling wastes and back to the heating unit. During this process, there is a slight possibility that a leak could develop in a hose and result in a release of the propylene glycol mixture to the drilling wastes. At any one time, the maximum propylene glycol volume in the circulating system is 137 gallons. While the equipment is designed for Arctic conditions and will be regularly inspected and maintained, we believe it is appropriate to recognize the potential for such an occurrence even though it is considered unlikely. • • If an accidental release of non-hazardous propylene glycol were to occur, we propose to dispose of any spilled propylene glycol mixture with the drilling wastes during the G&I process. The alternative would be to attempt #o segregate the propylene glycol and any affected drilling waste from the remaining drilling wastes and to transport. the affected drilling wastes off-site for disposal. We believe this would be a less desirable solution than the preferred on-site disposal option. The ground heaters and propylene glycol fluid are an integral part: of the G&I processing system Qust as the seawater diluent and brine and diesel well flushes) that is being used to dispose of the drilling waste. Based on the non-hazardous nature of propylene glycol and the fact this fluid is integral to the G&I disposal system, we believe downhole disposal in the Alaska State A-2 well of any of this material that comes in contact with the drilling waste during G&I disposal operations is reasonable and based on sound environmental practice and is legally permissible. ExxonMobil and Fairweather request the Commission's concurrence with our plans to dispose of any accidental propylene glycol release along with the thawed drilling wastes in the Alaska State A-2 well. As previously indicated, any non-class II wastes encountered in the reserve pits during excavation operations (e.g. drums of waste oil, sack materials, etc.) will be segregated and transported off-site for disposal. ExxonMobil and Fairweather appreciate the Commission's consideration and assistance. If the Commission requires any additional information on #his issue, please contact Jesse Mohrbacher at (907) 448-1511 or Mike Barker at (907) 56~-3691. To allow us to continue with disposal operations as planned, we would appreciate confirmation of our proposal for disposal of any drilling wastes containing propylene glycol at your earliest convenience. Thank you for your prompt attention to this important matter. Sincerely, y; ~`~ ~r~'-' DMB:JM:ddm Attachments JFB~Flawnan Island A-2 Waste Cladfication.doc c: AI Robb, III, ExxonMobil Mike Barker, ExxonMobil Larry Ross, Fairweather Judd Peterson, ADEC 2 SENT BY~ 2-14- 1 15=14 --- ---- - -' Sup ~~~ ~~~.,,,~ ~, VGA v~ .ti. ,n..e : v• ~.• • ••••,,•,•,~•• - C~UIVD- ti(:A7ERS INC. ~ PACirt 02 ugrv7l L0471 LV:3'L 6~l~~yy~J DIaTAZiDTOR lIA1~: dseuad »eaCer.S, Tzic. DATB: 09121/!6 BRODVC'! iDlaai'ia'Y. Ground HEaterr I+eat Traartar 72aid BAG¢: 1 00 5 MATERIAL SAFETY DATA SHEET AypROV6b BY. Sl t I,A80a DEPT, E99ALi'3'IXLL,Y SIMILAR TC! p0!!M OSHA 2'74 x~tpoRTnz~rd R@ad Chia MSD9 bcPnre h~udliag & diaposdng of th3e prodRCt. Dapo trio ialorrnation tv amplaysas, cuatonerN i usez9 of this pYOauaC. 6eCT10N I. CN~MICAL PFtO!?UC- B COMpA1JY IDENTIFICA7)ONMAZARD RATINGS PA~AUC;! ZDElT!'=TY: a='V1tA~l )feater.s Heat Z'Z;ap®fdr Fluid F7~1E/17i~ ltll'T2NQSe p23'iRIHUTOR N11M6': Groused Fleet@rf, IAe• 1?IS2RTHVTOR ADflRHSS~ 1271 Hudson Road YTiALTH (Nfi'A): 0 DIBTRISU'I'O$ C?TY: ~priAa aa)ce. MI 49as6 HBAS.M1a I~K2C) : 0 DYATRIBCTTOR PHA: 1-831<T99-9600 llLA-Mall{ILiTY' l CIRLMTFZEC PHUNE: 1-800-42A-930u ItEAL`TIVITY~ 0 SECTION 2. iNGRED1EiJ7 8 REGUCATOiiY.INFORMATION A11 componeatD O! tlsir pzOC9.uct ara ~On1 Che TSCA list. SARA Title 1II BeCtiotl 313~suppliar Hetification• xbie praducC doccs not contain any toxic chersies~ dttbject to reportzug requiresnetstr of Secrj,Cn .313 of the Emergency Planning & Comnwnity ltigbt~To-XAOy Act of; 1986 ~ of ao c&'R 377 , Thir iatcrvoz:ion .must be zncluded 3.a all MSDSe tk+at are copied 6 dfeaributea for rhea material. 9AAA TSTLE III TNGRCDiiA1T8 CASiS 14'!. i (REC.STaCTIGl~') RQIL83) Not Applicable SARA siirCTYOl7 311/312 SALIsRD~9: Ao11F,e Heslt~. MATERIAL CA9i1 '1'KA + (OSlW.) 7'fN {A4'GxH) KAP Propylan@ (}lycol 59-55-5 blot IWoMta Zlot Xnuw,r, !r0 Di.pokaarSum Phosphate 7758-11-a 7d'or Xsiown loot A~owu Mu Dro con~pvzirsutr of this product ar@ 1SnA Hazarflova A1T pollutaAta 11tAp1 - CALIFORNIA PROPOSITIUIQ 65; 'Tliie product dwr aOt COr~tain any lanowri Ct{~11Cd1 kr-4wa LO Che 8tat~° Of Califoti'~ill to cause cancer or replodYOtive damage: Do? 191lI1>yING N21ME: Noise ' DOT D1Ztll'1 X.11ESL: Not A,D;Pl~-cable SENT BY ~ 2-14 , , ,1 1514 _ .. .. v.r ~.vv~ •r, Ji tab I777~ ~..~f~• ~A ItJiS IPIC~ ` IixliTxx8ilL0R uAanc~ ~ii'Sfar_d Heatexs, rnc. bA'P$: 08/71/9Y vxObVC4' YDYNTSTY= mround Hawtoie llaab Tr~nster Fluid pAtifi: ~ OF 5 SECTION 3. HAZARDS IDENYIFICJ-TION TI~RFFETOI.n Z IMZT YALUE c Not hewn Ceerrs-INS: J~XOpylane 3lyaol, TJipotassium Phoa~~hate A,CVIB hSA3ARDa ,7Vt JVY vlu.Jrrr w v PAQI'e 0j. -. _ . 3XE 6c SKZN CON7'ACL': Not. tea.sideled a akin wratirt hasszd under ontleipated conditiossa of noxt+-AL une. May aauoe mii-v~ eye irritatioa_ IyiplALATIOlC: Not cor..eideYad xri :nhalatiam hazard under d.~tiripabp-d conditiono o! noXetal ae~~- SWALJrCWING c A~ot considered a swallowigp hazard under aotieipaLad COriditioIId of normal use. CIiRCNIC HAZ7-RD&/CONDI7SONS ,AC,GASVA2'i~ C'fiRONzC I3nzaRns= None knowrn.. coNrrrION6 ACCRSVA.TEfit more kaewr,. CARCER & REPROOVC'I"!VE pl~htA.G1Q 1~sSARA9 CANC~A i REVRQUVG'TIVS DAMAGfi HAZARDb~ bone ic110~+3i , lsi~CT10N 4. FIRST' AID MEASUREn 8 PROCEdURE6 EYE CGNTACCc flutih eyes with lt,sga amoutee cif water fa: at least 1s nllAUtee. bKIN CONT.pCT ; Flush ski;: with soap a 1a.~w a~aout~ts of eater for ati ~eaa~t 1S minutFs- =ixxwLAxzo[a Nor cnns~dered srx ici~alatiors hsaa~'d unAex anC.icipaeeri avadSC,iens a# portnal usc- FwAZ,u~wT~r~: bToe. cxpeeted to preepaC a riyuifioarit _pElestion hazard under oACleip~-Ced ooitidSti.enc of aastndA Lei. SENT BY~ 2-14- 1 1515 • _••_ •_ ~ au~ JVY ~,~~,T =, rc~-u~-u,, u~~~ ~u•:,- ..L. -~a.,,,.~u,,., , ...,. GRO(ND HEatERS >;NC ~ PAGE a~ ' ~0'lI ~5/ 2001 14:32 23179996 Dx8'!1lSn'DT07t 1i711~t Orovnd tieeLe=s, >VriC. DATB~ 09121/9e p~t0>yVt:l ip~ti!!2lY: around ti~saLere .Haag 2raus~fer Fia~d ]tA051: 3 Ap 8 ACTION 5. FIFIE FIGHTING ME~.SURE9 ~.Q'WSR P'I,Ahlq'IRHLF LSMIT ZN A.IIl (4 by vol) = 2.4k !'LAa'7i VOZ."iT (SF3B'S ~'L'FtGAI ' 27,1°!' / 99°C FC,AfrPlR$ILx'TY CLASSZFICA'Y'ICN_ C1s99 III-A SpITTNdt7I9fI7:1+IQ M9t?xA' t7oo wtkFx foss or spray, foam,. ~~ry powder. oa:bon dioxide (C03) . SPT~CIAI+ FIRE FYO'HTZN(3 DRbCEAUR>wS 1Lea~t from fire cas- gdue7;wt:e ilamm-ao3r va~:cx• hex. mixoQ with a~.z' and exposed to ignition source, vapoza can bau:ri in open or e~cplode if eaatiued. tine epraya ! mlcta may be combu~cible ar. t^:r~eraty.ts:a below normal fZstlh po3at. agt:sous solutxox-s oontaininq le®s eh~r. 95~ propylnn~t Q1yee1 by weiq?it have no Ala^!~ point es obtaiaad by staadaid test mstixods- Kowever, a~eoue eolutians of propylene glycol gcrtataz Chan YZ1 by aaight, if heate8 sufESclently, wi1:l prodv:at tlemmablo vppore. OAIy aqueous solueioas of propylene gIlYCOmentag t11aa 22* pl~ould bs used is sprinkler rlryte:rfs or Otlser flralfcol ,.ri42,Cw~tai Aaroi:e A1Nay'~ drair+ et+d llueh nye'tems vdntalaing psopyloae g y welding o; Ocher me,is~tarnan: e. C7'NgSVAL Lr7CYLOSI01v At1Til FLR>i; D80C~ICTRISS ~ Coritniner^ ~iay ruptu~ce z'ron f.riCaxlial yreeauze it coesfiAed to ii='e area, Cool with water. Get non^aaential parsons not of area. Z3tE:CT10N 6, AGCIDEN'fAL RELEASE pi-EA9URE3 9PZL>i. OR LBAR PROCEDtTrtBS r May contam3r~ate waist aupplieas ar poll,~ta public w4c4x'fi- 8quip xeepondecr~ with yroynr pxoceceiaun. i~zevert r'l,ok to aewex or public warerr. prop rei•aae_ Notify fire and envizoYlfAlrital autDOx~ities. &estrirt caster 11s• for clea:aup., 3ligpery walking. Spread gz'antllar co~•ex- Itgppund dnd Yecovex Xa,rge band spi13.. 3osk uP small ^y~.17a .with inrrt solids. tl~e suit~Y,le $S,sposai eoaeai.nere. On waeer, material i.a sol,ubla au1,Q maf float ar oink. May biodsgxsde. Conta3.a and Co3xscC za$idly Lo minimize disper:~.op. nisperse xeaiflue c0 reduce -gvatic aariq, Report per reyulacory requiremeatu. wASTa DT6HUSAL r1aTA0D: yandtill eolida ar, para,itt.~a szt~o. tTse registerefl oraawporrere, !lurx: cvr-ceatrated liquids, ulau-:inp v1.th cl.eaa, l.ov v3+ne;oeity Eual • -Avoid ~lwmC- onto. ?lt-!!-1re emieeione comply with applSeible rsgtiLl,ation9. Dt2ute aqur(~va watts may biode~xr-de. 7lvc~id ~~verloadittg and pe,iaoaiag Plant bioauss. Ass^use efEluwnt aoMplios wteb app:lioable r_agulatioae. c:e,atnQlinaEed p=r.,duet~ enii, waLet', container rgeidues qnd spi11 cleanup 'mgtexial.c ~r11ou19 zwt b0 d~gignatv(i hnsslydous xaseas. Diaposm of accocAi~ag to 1oc41, stack k tsdsrgl YegulatiOxfre• SENT BY ~ 2-14- 1 ; 1515 y ~" ~ `"'Y "~ ""," ", " ""'~ „ ~ y~~ ii~i;~noi ".~ ~ aL ~'!.i), /yyy^ GRp ND HEATERS INC ~ PAOE A6 ~ DiOT11iBVTOR 2if1fs6: exouz~A Heacers, Znc. DATE: 02/2)./98 HxBDVCT rLE20TYTY- uiruund ETeaters 1#aa! rranelEer F3ald PROS: ~ OF 5 SECTIaN r. KANbi.INQ AND STORAGE HAtdbS. L2iC : RBey away from heat. & op^n flstenc. u'se wicD edeguaCe veaCilatiot-. STORACK: stuze in a cool. veaei'2ated area. 16vap taatainer closed. sEGTiaN O. EXPOSURE CON7Rt7L8/P~~iuONAL PRO1`EGi101`) EX?O6UE2E C082it01,5: ?ro apeaiai raapiratoxy protection is reoomme"~ed under a~uticip~ste4 conditions ,P ~o'rmrl n~z with ad~gUhte ventilaeion• vQNTILATSUNI No s}+ecisl vwnti3aGlvef~ 16 reCOmmeadpQ under anC3CipaG~ci. cvAdition3 og ACL"IIC91 use beyond t1~aC ceded for nornal gomtore eontre~l. P$KSONAZ. FROTBCTIONS+ Avoid contact with eyeS• 1o?ar safety glue~ee or goggles a• nmCeosary. IIse good personal hY9iene Earsat.~a•^, Wad$ h.aAdp belerr_ ratirrd dr3:yr~pg, smokipy, G.lt' uei.ug toilet lacilities. Prompt],y reotave soiled ClOthinq- wrier thoroughly befor^ x^vsa. S2aower afCex wort using plenty oY soap asyd water. BEC~'ION 9. PHYS)CAL DATA ApPp1A1CANCB: slightly haay, Oi'iing+= liquid b~R, very mild BU7:LIM6 RANC~ii+ (InS.Cisi Buzling Poiat) 211 - 370°P / 100 - 188'C GRAVITY ~ 60°F~ SPECxFZC GRAVITY lWUterel-: 3.02 POU~iDS/C,AZLON' ~ B , 51 voc ~ s (vp-yo7R ID~tesSVP.~ >o . a.~ pass/s~ r~) (:.mss/caL) : e. sl 7'O:CJ13.: VOL,ATILB ORGAlIXC COMpOVNO$ (TVac) lgl~~ + ia2a !C(.~PJCTiMtYP VOLA'fT.2.E CUMPO'.7M7)8 (CVOC) : ~ v'ApOA PR6S®pR~ (nsa of Bg) Was°C+ G V"ADOp. DEWSx1'Y (tir = 1) : 2.6 NATBR ABSORPTION: Complete 2 vOLAT2L~ PY VOL: 9? 'y JV I Vv~r ~ ~ SENT BY~ 2-14- 1 1515 - ~N~ arm sb "'"" P I L.II JJ~ V1 EI :e vroR 711~e armuna i~catera, iric. nra sa pKODUC! ZaBgQ'STYa OYOUnd Elatet:t+ BNC 2'rY.neFor y'Yt1.ld S~GTION 10. R~AGTIV~7Y BATA ST]IaYX.ITY: st>tble . C(1YrDI~YOlTPf TO AVOY'D a DATE:. D9/~l/98 FAdE: 5 OF 5 1teep awaty Lzam i.Dtenao heat, a o~plri flame. IdAZERTRLS TO Avoli~l Keep awgy from stz'ou9 ex~ifl,:zere, such ie peroxides. HAZr+A~OVS p13c~olKposx71or7 6R~~AUCI'. smoke, Cazbori DloxiflN W carbon Mo:~o~;id• under Pire eatsaitions. [{A2I1bi.D0US pOL7(MERIZh,'rZO1Q- Caauot o~Ctir• >oi0•lSCD The supplier dzsclaima all exp:eased. or fapli.d waxr8ntima of ficr~ees or merchantability fc•r a tanecifia uve, with respect to the ,pl;o4uet, yr khe ix-fern4+cion pzavidad htreic~, .xceDt Por ccmtctnlaLiaa to cvntxacCld Spee$riCatioN , AZ2 infozmatiea~ appairing hexeitx 18 based `~p~7r- data az-tained f~rexa manuL:9at,~rnr and/oz r~ecogniaed tec?nlical sou>:cvs~, 11hi.le oho intolmetion i~a br]iewd 4o be accwraGe, we tna)ce n~o representations wa to itQ wCcuracy or sutfioieACy. COriditiorts of uss Ara K~aYond onr conCrul, arts erierofose users qrs regpoTaible !or v'erifyiA4 the det^ under thea7C town operating condi.tiona to Aete1C!n~-e ~+h®ther thra pt'od~ct 3r euioablt for theta particular pgCgveea And tXte}' esiume all r.isk~ a! [heir uce, hanalin9, a~Q fli~aaal of she pzoduct. IICeT4 also asaumo dli treks in regards to the publieatiol~ oz t;AO of. or toli~sce npoa, letformatiorfi coutaiueQ hcreia. Chili iT>~oXtoat:iOtt t'elaCee rnzly ro the p='vduct designates herein, an,d dot,a not l'Clatd tC .i.ts us• in cq~,inatS.e>h with a>QY' oc!-er mattrfsl ar pn~cra;,p- eex~~l~ ~5 Re: Injection of Propylene Glycol contaminated cutti~n the A-2 well Subject: Re: Injection of Propylene Glycol contaminated cuttings in the A-2 well Date: Fri, 09 Feb 2001 09:56:10 -0900 From: Tom Maunder <tom maunder@admin.state.ak.us> To: Larry Ross <larry@fairweather.com> CC: Wendy Mahan <wendy_mahan@admin.state.ak.us>, Julie Heusser <julie_heusser@admin.state.ak.us> Larry, I have forwarded your note to other staff members. It has been suggested that you formulate a letter regarding this issue. You might want to get with Mike Barker at Exxon. We suggest that you outline the reason for your request, discuss the available disposal options if your request were not approved and include the MSDS sheet you talked about. Looking into this "what if' scenario is an important consideration. Hopefully there is no equipment failure, but discussing the possibility of a failure and how potentially contaminated material can/must be handled helps everyone. We look forward to receiving further information on the subject. Tom Maunder Larry Ross wrote: ^'~ d 4_ffl E, > ~s:,~z:.~l~%i~z~sl~, c~a~~~zc~s~d, ~u~z ~~°~~~~zg t~ uc~~~~°~3s~s ~zr~ i~sz~~ ~~~~z~ zzzc~~ ~3~ z~~~~, > ant ~z~°i,~~~. 'czi~~-~~~a~~e~~°'s ~~lczzrt c~z~a ~~zcz~-~~a~~- ~-lze ~z~tt~za~-~ .°c~za~ ~~~~ .~'~ca.~:~acz~~ > ~~s'lcxzz~ ~-~ ~~~~11, ~"-? Y~'~ll ~~z~cl tie ~-? i~~`ell is' ~~ t~~~~ cell t~ze ~z~t~irrzgs izz > ~l~z~ ~-1 z•~3>~~z°~~3 ~~i~ ~~{~~~ gl~,>c~~~l g~•~~zcz~ze~ ~ier~tc:z:.~. ~~~~ ~h~zz tz°~ttsf~z• ll~e~z2 iz~~~~ > ilZ~ ~'~°~,~~~.I~~~ci- ~~%~t~zz~@~~~°crc°~s~~~tg ~a~a~ r.'z~,~~ct~~z~ c~c~~~%z~z tla~ ~~l-~ ~~~,~~~~,~cz~ =`-~ ~~~ll. 7'dz~ gz~c~~c~tc~ t~zct~.- lz~~zt~~zp~~ ~lzc~~i' tie gz;~z~z~r~, ~~• ~~ettiizg~~, by 1~~1i~zg ~vee~ > c.~~z tc~l~ (,~f t1~~ ~ut~iz~z{~~5, ~zt~tczlliz~a~r iz~.~z~lrxt~~ ~Sla=x~~z,~~~.~ ~~~~~r° ~~ae~~zz, ~~r~~ ~izFc:z~l«~-i~g ~z~crt~gll%~c~l tl~~°r~~cgl~ t~z~ ~r~as~s..~a~li lz~c~tez° l~~c ~-z tc~~czl > ~~:~~cze:°~P~%e~~~137gcxlBc~~r~ r~~f`gl~~c°ol. > ;~~1yi ~e~~~z~~:z°z~z is tlZUF if~~.-n~ ~~f~tl~~~~ lz~~.s~J~ ~1~~.'~1~~~~ ~z l~iczk, ~~z~z tlz~ ~~~1~.'c'r~l > e~~zt~atz~i~~zcrt~~' cz~~ti~zgs ,still ~~~z.°oce~secl c~z~z~' i~tj~~tec~ ~~c~~vzz ~lz~ ~~-? ~-l~ell, ~a~° > ~-~-ill ~~~~ gl~:-~~-l cuz~zteztz~z~~tczt~~c:l c: ~€ttizzg ~ zz~Jecl tc~ be ~is~B~s~~r~ c`sa~~ae ~~t~i~~• ~~~~.r ~'. > .~~? g~~.~cacal th~rt ~~j~ caz°~~ z~.si~zg iz~z tlz~ gz~c~tcncl laeut~~~ ~,~ ~~°~~~a~7l~aa~ ~~l~.ic=c~1, . => ~~~-tic:, ~~~t~xitfts z~z~ t€~.~-i~ c,:lze~rzicc~ls. ~ t~eli~~~~ t~Zr~t t6ze c lzc~a~zc~ @cle~9elc~~iz~zg cc > l~~ct is szzzull, cts cell ~>f`t1z~5 e~zz~~~r~zenl ~s z't~~~, ~zrt t~~~3~~~~s~~i~dl~~~j ca~~~~~~ => Mill ~~~ ist. > S'i~z~ er°~ly°, Tom Maunder <tom maunder(a7,admin.state.ak.us> Petroleum Engineer Alaska Oil and Gas Conservation Commission 1 of 2 3/1/019:44 AM MIL, [Fwd: proposed rule, Alaska State A-2 DIO] • Subject: [Fwd: proposed rule, Alaska State A-2 DIO] Date: Thu, 21 Dec 2000 08:45:16 -0900 From: Robert Crandall <Bob_Crandall@admin.state.ak.us> Organization: DOA-AOGCC To: "Oechsli-Taylor, Camille" <cammy oechsli@admin.state.ak.us> Cammy: I think Mike's changes are good. RPC Subject: RE: proposed rule, Alaska State A-2 DIO Date: Wed, 20 Dec 2000 20:42:51 -0600 From: dmbarke@upstream.xomcorp.com To: Wendy Mahan@admin.state.ak.us CC: bob_crandall@admin.state.ak.us Wendy; I have made some minor revisions to your draft surveillance rule. I have run this by the folks at Fairweather. I'd be happy to discuss. I'm in the office this week at 564-3691. We can also discuss bonding, if needed. The heat is off right now. Our recent ice borings indicate that we need 15 inches additional ice before we can mobilize the rig to Flaxman Island. Our target spud date has moved closer to January 10. I couldn't find a good way to highlight my changes, so I hope you can figure them out. Best wishes for the holidays, Mike > -----Original Message----- > From: Wendy Mahan (SMTP:Wendy Mahan @a dmin.state.ak.us] > Sent: Tuesday, December 19, 2000 7:03 PM > To: dmbarke@upstream.xomcorp.com > Cc: Robert P Crandall > Subject: proposed rule, Alaska State A-2 DIO > Mike, > This is the currently proposed surveillance rule for the DIO. Please > review and let us know if you have problems with any of the > requirements. > Thanks, > Wendy > Rule 5 Surveillance > Prior to initiating disposal operations and after an inactive period > greater than 3 months, if such an inactive period occurs, a step rate > injection test meeting the > Commissions criteria must be conducted and a static temperature survey > must be obtained. > During disposal, operating parameters must be monitored and evaluated as frequently as practicable and preferrably continuously. Monitored parameters should include disposal rate, > surface pressure, annulus pressure solid waste volume processed, slurry, > water flush, and freeze protection volumes pumped, slurry density, > viscosity, and temperature. Parameters must be recorded continuously as > practicable and tabulated daily. During disposal, the operator must 1 of 2 12/21/00 6:35 PM [Fwd: proposed rule, Alaska State A-2 DIO] > submit the original charts or legible copies and daily tabulations on a > weekly basis. > When either the operator and/or AOGCC determine that operational > parameters indicate additional surveillance is prudent, > subsequent step rate injection tests and static temperature surveys and/or > other appropriate measures may > be taken and the Commission notified. Within 60 days of the completion of injection operations, or annually by July 1, if the operation > extends beyond one year, a report evaluating the performance of the > disposal operation and summary of surveillance activity and results must > be submitted. 2 of 2 12/21/00 6:35 PM RE: proposed rule, Alaska State A-2 DIO • • Subject: RE: proposed rule, Alaska State A-2 DIO Date: Wed, 20 Dec 2000 20:42:51 -0600 From: dmbarke@upstream.xomcorp.com To: Wendy_Mahan@admin.state.ak.us CC: bob_crandall@admin.state.ak.us Wendy; I have made some minor revisions to your draft surveillance rule. l have run this by the folks at Fairweather. I'd be happy to discuss. I'm in the office this week at 564-3691. We can also discuss bonding, if needed. The heat is off right now. Our recent ice borings indicate that we need 15 inches additional ice before we can mobilize the rig to Flaxman Island. Our target spud date has moved closer to January 10. I couldn't find a good way to highlight my changes, so I hope you can figure them out. Best wishes for the holidays, Mike -____e°igincalll~essage----_ > ~ ~°orn: T~"endy 1~~ahan jS1~11'1': ~~e~~tdy~ 1~1ahc~~~a~~adr~ain.state. ak. us.J > Sent ~ ~'u~sday%, ~~ce~nb~r° 19, 2Q®0 7: ~3 P'1'~~ > ~'o: clmha~•ke@'upst~earn.xornco~•p.c°o~n > ~'c: Robert .~ Cr°andall > Subject: proposed rule, Alaska State .~-? L~14 > 1Vltke, > 7`diis is the cup°~°ently pj°oposed su~•~'eillunce ~°ule~o~° the ~.~I(.?. ,~1~'ase > revie~~.~ and let us knox% if you hay"e ptAol~lerns with any of the > re~uiretnents. > T~~nrly > Rule 5 Sz.~~-veillance > ~'f°ior° to i~~~itiating disposal opet°atioa~rs at~~d afte~° an inactive peg°iod > greater than 3 rrtonths, if 'such an inactive period occ tees, a step rate > injection test rneetin~~7 the > C"o~~~aaissions crite~°ia rn~lst be conc.~a.~cted and a static ternpe~c~tu~°e sect°vey YflZ[S't L7e o~3taltZed. > ~tcring disposal, opee°ating parameters must. be monitored and evaluated as frequently as practicable and preferrably continuously. Monitored parameters should include disposal rate, > surface pressure, annulus pr°essz.tr•e solid waste ~%olume processed, slz~rry-, water flush, and fr°ee.~e protection volz~mes pa.~mpeca", slurry densia~y, > vi.scosit}~, and temperatue°e. I'aa°arrt~~ters must he recorded er.,nti~~tuousll% a.~ 1 of 2 12/21/00 7:40 AM RE: proposed rule, Alaska State A-2 DIO • • > ~r°cacticable and tabulated daily. ~ur°in~r di~_peasal, the c,~per°atrrr° rnzzst > srzbrnit the oz°iginal char°ts oz° legible codes and dail~° tahulations on a > ~~=eekly basis. > b~hen either° the operator ands"oa~ _AC~+G~'C' deter°rnirze that o~e~°ational > para~rzeters zndlC:aZe ad~ctr.'vnal sz.€r~.reallance zs ~ruc~ent, > sZZbse~uent step rClt~' ln~#:ction test°S Clad static' tel`tZperatZ•dr°E' S2~li'°L'f'ys and~or' > other appr°opriate rneasz~res rzaa~% > be taken and the ~'atrzmissivn z~ati~ f iee~ Within 60 days of the completion of injection operations, or annually by July 1, if the operation > extends beyond one year, a report e~.=alzcatirzb the per~or~zance o~f'tl~e %ti di.5posal oyez°atiorz and .sz~mrnary cif sur°~=eillazace acti~Yit~..J and r°esz.clt~ nazr.~t be szrbrrtittecl 2 of 2 12/21/00 7:40 AM ~3 RE: Alaska State ~-2 ~ \~Q ,~ Subject: RE: Alaska State A-2 ~'T S ~' C ~ S Date: Thu, 7 Dec 2000 11:02:31 -0600 From: "Jesse Mohrbacher" <jesse@fairweather.com> To: "Tom Maunder" <tom_maunder@admin.state.ak.us> CC: "AI Robb" <aIJ_robb@email.mobil.oom>, "Jack Rickner" <jack.a.rickner@exxon.com>, "Larry Ross" <larry@fairweather.com>, "George Scott" <george@fairweather.com>, "Mike Barker" <dmbarke@upstream.xomcorp.com> Tom, we have evaluated the possibility of temperature logging for the proposed A-2 disposal well and we have some concerns about this potential operation. Temperature logging during. the cased hole logging program would not be a major addition or effort due to the fact that we would be in cased hole with no perforations and we would have Schlumberger on-site for the cement evaluation logs. Temperature logging at a later date during or afer the completion of G&1 operations presents the following difficulties and risks to the program: 1. Interruption of G&I operations during the disposal process for a temperature log risks creatin a roblem with the wel a stuck ~~~ ~\~~~~ logging tool or sand into the wellbor urng the logging operation. Such a problem could cause a significant delay in the project schedule and potentially include the necessity of remobilizing a rig or other major equipment fior remedial work. 2. The temperature log maybe inconclusive due to the injection operations and the temperature of the injection fluid which is estimated at about 40 F. We have discussed this situation with Schlumberger and they have in ica ed that since this well is an injector, it is likely that the temperature profile will match the injection fluid temperature from top to bottom unless the tool was able to get below the perforations that were accepting the fluid. We plan to perforate about 20' near the bottom ofthe wellbore and we are not keen on running a logging tool into this area of the well for fear of getting it stuck. >;~~y~ -~~~~ ~'P 3. If a temperature log is to be run during the injection process or at the end of the operation, a crane and logging unit will need to be mobilized. .~~~ This is an extra operation in an alreadytight project schedule. 4. If we waited to log the well until after the G&I operations, again the possibility of sticking the tool could impair or delay the P&A of the well. We are trying to eliminate potential risks throughout the project that could cause project delays and compromise our ability to demobilize the project by the end of the rolligon season, about May 1. Given the above concerns, we request that temperature logging program during or afer the injection process be avoided. Please contact me at your earliest convenience if you require further information on this or any other issue on this project. Regards, Jesse Mohrbacher. -~tr^~~rv,~lvc¢ ~~o wov~ be n\~~ r ~xc. ~~a..~ c~o ~Cw.vc, `®Ss~ica,.~ Co~.t~S 1 of 4 ~~5~ ~Sc-~~fc ~~~, ~lO C~~ ~~ '1'~~ V VJl`\ ~C~~~Mb~~- 12/7/00 11:39 AM ~ati~~ ~r~c~ ~~'-G~.~ ~.~.~ ~s r RE: Alaska State A-2 ~ . ----Original Message----- From: Tom Maunder (mailto~tom maunder(c~admin.state.ak.us] Sent: Thursday, November 30, 2000 4:01 PM To: Jesse Mohrbacher Cc: Julie Heusser; Bob Crandall Subject: Re: Alaska State A-2 Thanks for the response Jesse. We look forward to your further reply. Tom Jesse Mohrbacher wrote: > Hello Tom, thanks for the note. > December 7 or 8 will be OK with us for PTD approval. Regarding the > perforating, 1-11/16" guns will work and we have been discussing this with > Schlumberger. > For injection operations, we will no doubt start off with seawater initially > then switch over to slurry. Our goal is to inject somewhat continuously at > around 2.5 to 3 bbl per rrinute but we will surely have some shutdowns that > will require first a seawater flush followed by a brine flush for freeze > protection. We are very aware of the need to have a sound flushing > procedure to prevent plugging off of the tubing or perfs We have backup > pumping capability for this purpose as well. > The injection system will be the Swaco DSR unit (with modifications) that > was on the GP Platform It is being readied in their yard and if you would > like to take a look at it, please contact Larry Ross in our Anchorage > office. > Injection pressures will be measured at the pump and will be recorded > continuously on a paper pen recorder. Injection volumes will be recorded b > a stroke counter and rates will be calculated from this data. We don't > anticipate varying the pump speed on a frequent basis. The Casing/Tubing > annulus will be monitored daily by reading the gauge on the annulus at the > wellhead. We expect this value to stay at zero. > We will investigate the temperature logging scenario and get back to you as > soon as possible. 1 will also need to discuss this with ExxonMobil. > Please contact George, Larry or me if you have any other information needs. > We appreciate your assistance and interest in this project. Thanks, Jesse. > -----Original Message----- > From: Tom Maunder~mailto~tom maunderCa~admin.state.akusl > Sent: Thursday, November 30, 2000 1:26 PM > To: George Scott; Jesse Mohrbacher 12/7/0011:39 AM 2of4 RE: Alaska State A-2 • • > Subject: Re: Alaska State A-2 > George and Jesse, > Thanks for the information and the best wishes. > everything up > from the approval side for the perrr~t and the DIC > is when is We are moving to wrap A ley question we have > spud reasonably expected. If the PTD were not issued until Dec 7 or 8, will > that > affect your schedule. 1 have a couple of other questions and comments to > help us > understand your operations. > Yesterday, Jesse indicated that you might downsize the tubing to 2-3/8" due > to the > close clearance. ill that ID be sufficient for you to be able to run a > perf gun if > you need to add pen`s? 1 suspect a 1-11/16" gun would likely be able to be > run. > As we understand the process, it looks like you will be pumping your > disposal volumes > in batches of maybe 1500 to 2000 bb/s per day. Is that correct?? Are you > planning to > start your injection batch with seawater and when done with the slurry batch > follow it > with seawater to keep your wellbore clean? > Early on it was indicated that you would be using the DSR unit/system that > might have > been on Granite Point. Is that correct?? > While you are injecting we would like to know how you will be monitoring > pressures? > Is the system continuous and automatic? We are interested in the > formation's pressure > response as the disposal process continues. Single, daily values for rate, > tubing > pressure and annulus pressure are not what we consider adequate for > surveillance. > Where the slurry ultimately is emplaced is also of concern. To quantify > that > information we are considering having you run temperature surveys. One > would be run > in conjunction with your bond log and the other at some later time, maybe > after 100 - > 125 k barrels has been injected. Would you investigate how to best gather > the later > temperature information? We do appreciate you logistics concerns do not > wish to cause 12/7/0011:39 AM 3 •of 4 RE: Alaska State A-2 . > a severe impact. > An initial step rate test will be a requirement of the disposal injection > order, tn~ > are considering also requesting one at the conclusion of disposal. > We look forward to your comments to these discussion points. > George Scott wrote: > > Tom-1 am sending you the requested casing info. with the change from > 5-1/2" > > to 5 "casing. > > Hope all is going well at that end and that you and your family are doing > > well. All the best for the upcoming holiday season! > > Regards > > George Scott > > Sr. Project Manager > > Fairweather E&P Services Inc. > > Narre: Casing design.xls > > Casing design.xls Type: Microsoft Excel Worksheet > (application/vnd.ms-excel) > > Ena~ding: base64 12/7/00 11:39 AM 4 of 4 • Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Flaxman Island, Beaufort Sea -Disposal Injection Application ExxonMobil Production Company, by letter dated October 16, 2000, has requested authorization from the Alaska Oil and Gas Conservation Commission under 20 AAC 25.252 for a disposal injection order. A complete application for the underground disposal of oil field waste was received on October 19, 2000. A disposal injection order is necessary to allow injection of reserve pit contents into a newly drilled well in order to facilitate reserve pit closures from the Alaska State A-1 and G-2 project. A person may submit a written protests or written comments on the proposed order prior to 4:00 PM on November 27, 2000 to the Alaska Oil and Gas Conservation Commission, 3001 Porcupine Drive, Anchorage, Alaska, 99501. In addition, the Commission has tentatively set a public hearing for 9:00 AM on November 28, 2000, at the Alaska Oil and Gas Conservation Commission, 3001 Porcupine Drive, Anchorage, Alaska. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission prior to 4:00 PM on November 13, 2000. If you are a person with a disability who may need a special modification in order to comment or to attend the public hearing, please contact Diana Fleck at 793-1221 before November 21, 2000. Daniel T. Seamount, Jr. Commissioner Published October 28, 2000 ADN AO 02114005 Anchorage Daily News Affidavit of Publication 1001 Northway Drive, Anchorage, AK 99508 AD # 621163 DATE PURCHASE ORDER EDITION ACCOUNT 10/28/20 02114005 DN STOF0330 I 10/30/2(10 PRICE PER DAY $92.88 $92.88 Notice of STATE OF ALASKA ~ Hearin ~& A1rASKA nfl c~as . Ad@S~ f,S THIRD JUDICIAL DISTRICT ~ n Conservardop-Cemmfssron . RS: ~ddYxntlgn island, Eva Alexie, being first duly sworn on oath deposes and says t3eaufat't'se>~.- Disposgi that she is an advertising representative of the Anchorage iniecrt«, 4ppl~Cmion ' Daily News, a daily newspaper. ' ExxonMObir Prod action ' comtwm+v by letter dated That said newspaper has been approved by the Third Judicial and it now and has been ublished in Court Anchora e Alaska g P Octaber ts, 2000, has Ye- gyested, author~zatign Oil and k , , , the English language continually as a daily newspaper in a fram the Alas Gas conservation com- mission under' 20 A'AC, Anchora e, Alaska, and it is now and dunn all said time was g g 25.zs2 for a aisROSar lniec- printed in an office maintained at the aforesaid place of tion order. n: comhiere application for the under- ublication of said news a er. That the annexed is a co of an P P p p5' ground d~snasai of a<il sTQ was received ld i advertisement as it was published in regular issues (and not in wa f e on October 19, 2000. a su lemental form of said news a er on the above dates and PP ) P P disaosal iniettlan ortVer fs that such newspaper was regularly distributed to its subscribers i ocn of esefveoa tton- during all of said period. That the full amount of the fee charged tenK infq a newly drilled for the foregoing publication is not in excess of the rate charged well in grdelr ro facilitate d f r private individuals. A i an me nia ka Stat® G-2 pr9jeCt. C~, ~~~ '~ '~ ' ~ A,RerSpn maY Submit a 'wAtten RroteBt ar weft- n the t ~, - -- )C, -~-~ Signed s o ten commen posed order nrior to f pro M~k A ~ r and f' hs 51ca Oll Subscribed and sworn to me before this date: nnaa Drive Rnchoragg Alaska th@ additign 1 I ~~ / ~~ ~~ .'{Gy/- oa ~ , n 8950 Commission has Yenta- lively set a puldiic hear- ppQQ~~AI~A a~ Nq-~ 9• for Q~ - -~--- -- _ .~ _ _ vember 2'it.`3'000, of"tise Ripska flft.and Gas Gon•~ ~ sf3rvatlon C'ommission' Notary Public in and for the State of Alaska. ~ a°eho°d9ep'A askrav R' Third Division. Anchorage, Alaska ~e ~; "fg~' a ~ e;~ ~e }~n ~~D~ ~ 6 h , t hearing be held by #ItirzB a written re4aeer with the n prior to 4:00 i i o MY COMMISSION EXPIRES: II o ss mm c PM en November 13, 20b0. C; IfYoa are d pe with a disability whom who need a special mo ica- tibn in grder To com . enT ~ arto attend the public hearine, please contact DiaOa Pleck dt 793-1221 before November 21, 2tto0. '.!S/ 9aniel T. Seamount Jr. ~omfnieslon ~ AO-@211i0DS PUb,: October 28, 2000 ~k1 ExxonMobil Production Comp P.O. Box 196601 Anchorage, Alaska 99519-6601 Jame ranch Productioi Manager, Alaska Interest Jointlnterest U.S. E~onMobil Production October 16, 2000 Mr. Daniel T. Seamount Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501-3192 Attn: Blair Wondzell, Senior Petroleum Engineer Re: Application for Underground Disposal of Oilfield Wastes: Flaxman Island Disposal Well, Alaska State A-2 Dear Mr. Wondzell: ExxonMobil Production Company, a division of Exxon Mobil Corporation, submits this application for a Disposal Injection Order for the Alaska State A-2 disposal well on Flaxman Island in the Beaufort Sea. An Application for Permit to Drill for the Alaska State A-2 well was submitted to the Commission on September 7, 2000. As discussed in the APD, the overall project entails excavation and disposal of 15,000 to 25,000 cubic yards of drilling wastes from the Alaska State A-1 and G-2 drill sites on Flaxman Island. The drilling wastes will be processed using grind and inject equipment and disposed of in the A-2 disposal well that is to be drilled on the same pad as the Alaska State A-1 well. Please find attached information as required by 20 AAC 25.252(c), (d) and (h). If you have any questions or require additional information, please contact D 907-564-3691 or Jack Rickner at 281- 96-3280. Sincer ly, <f ~' ` DMB:ddm Attachments c:Mata\winwordWmb\enviro\pitom\state-federal agencies\Itr-appl for untleigmd disp of oilfld wastes.doc D. Michael Barker, ExxonMobil Riki Lebman, JPO/DGC Bob Loeffler, DNR Jesse Mohrbacher, Fairweather Jack Rickner, ExxonMobil AI Robb III, ExxonMobil Michael Barker at • • ExxonMobil Production Company Anchorage, Alaska APPLICATION FOR UNDERGROUND DISPOSAL OF OILFIELD WASTES FLAXMAN ISLAND RESERVE PIT CLOSURES ALASKA STATE A-1 AND G-2 PROJECT FLAXMAN ISLAND, BEAUFORT SEA, ALASKA October 2000 Pr~~~~a • • Table of Contents Page 1.0 Property Description and Plat [20 AAC 25.252(c)(1)] ............................................... 1-1 2.0 List of Operators and Surface Owners [20 AAC 25.252(c)(2)] .................................. 2-1 3.0 Affidavit [20 AAC 25.252(c)(3)] .............................................................................. 3-1 4.0 Geologic Information [20 AAC 25.252(c)(4)] ........................................................... 4-1 4.1 Depth of Permafrost ....................................................................................... 4-1 4.2 Sagavanirktok Sandstone ................................................................................ 4-1 4.3 Injection Zones ............................................................................................... 4-1 4.4 Confining Layers ............................................................................................ 4-1 5.0 Well Logs [20 AAC 25.252(c)(5)] ............................................................................ 5-1 6.0 Casing and Cementing program [20 AAC 25.252(c)(6)] ............................................ 6-1 7.0 Fluids to be Injected [20 AAC 25.252(c)(7)] ............................................................. 7-1 8.0 Injection Pressure [20 AAC 25.252(c)(8)] ................................................................. 8-1 9.0 Fracture Information [20 AAC 25.252(c)(9)] ............................................................ 9-1 10.0 Formation Water Analysis [20 AAC 25.252(c)(10)] .................................................. 10-1 11.0 Freshwater Aquifer Exemption [20 AAC 25.252(c)(11)] ........................................... 11-1 12.0 Mechanical Condition of Wells [20 AAC 25.252(c)(12)] ........................................... 12-1 13.0 Mechanical Integrity of Disposal Well [20 AAC 25.252(d)] ...................................... 13-1 List of Figures Figure 1-1 Property Plat and Location of Area Wells ............................................ 1-2 Figure 6-1 Proposed Alaska State A-2 Wellbore Schematic List of Exhibits Exhibit 3-1 Affidavit of Mr. James F. Branch ......................................................... 3-2 Exhibit 9-1 Injection Scenario 1 ............................................................................. 9-3 Exhibit 9-2 Injection Scenario 2 ............................................................................. 9-14 Exhibit 9-3 Injection Scenario 3 ............................................................................. 9-25 List of Tables Table 6-1 Casing and Cementing Detail Summary ............................................... 6-1 List of Attachments Alaska State A-1 Well Logs Disposal Injection Application i _.. 1.0 Property Description and Plat • 1.0 Property Description and Plat [20 AAC 25.252(c)(1)] The Alaska State A-2 disposal well will be located on Flaxman Island on State of Alaska lease number ADL 47556 which is owned 100% by ExxonMobil. This lease comprises 465 acres of uplands and 2,095 acres of tidelands for a total of 2,560 acres. One well has been drilled on this lease, the Eamon Alaska State A-1, which was a vertical hole drilled, plugged and abandoned in 1975. The A-1 well was subsequently re-abandoned in 1998 to cut off the casing below the toe of the island. The surface location of the E~onMobil Alaska State A-2 disposal well will be 300 feet west of the Alaska State A-1 location. Eamon drilled two other wells on Flaxman Island, but not from this lease. The Eamon Alaska State D-1 was drilled as a vertical hole about 4.5 miles to the west-northwest and was plugged and abandoned in 1982. The Alaska State G-2 directional well was drilled from a surface location about one (1) mile to the southeast of the Alaska State A-1 surface location to a bottom hole location about 1.5 miles to the northeast of the Alaska State A-1 surface location. The Alaska State G-2 well was plugged and abandoned in 1983. The locations of the proposed E~onMobil Alaska State A-2 disposal well and the abandoned Eamon State A-1 well are shown in Figure 1-1. Location information for the A-1 well is the following: Alaska State A-1 Lease Number: ADL 47556 Surface Location: 2982 feet FSL & 1542 feet FEL, Sec. 27-T l ON-R24E, LJM Bottom Hole Location: Same Measured Depth: 14,206 feet True Vertical Depth: Same I' Disposal Injection Application 1 - 1 I' Disposal Injection Application 1 - 2 2.0 List of Operators and Surface Owners ~ ~ 2.0 List of Operators and Surface Owners (20 AAC 25.252(c)(2)] The operator of lease number ADL 47556, where the proposed A-2 disposal well is to be drilled, is: ExxonMobil Production Company 3301 C Street, Suite 400 P.O. Box 196601 Anchorage, AK 99519-6601 The surface owner for the lease is the State of Alaska. There are no other surface owners or operators within cone-quarter mile radius of the surface location of the Alaska State A-2 disposal well. , Disposal Injection Application 2 _ 1 • 3.0 Affidavit [20 AAC 25.252(c)(3)] The affidavit of Mr. James F. Branch, Production Manager, Alaska Interest, ExxonMobil Production Company, is attached as Exhibit 3-1. Disposal Injection Application 3 - 1 EXHIBIT 3-1 AFFIDAVIT OF JAMES F. BRANCH PRODUCTION MANAGER, ALASKA INTEREST EXXONMOBIL PRODUCTION COMPANY State of Alaska Second Judicial District I, James F. Branch, declare and affirm that I have personal knowledge of the matters set forth in this affidavit, and that on the day of ~c~c~,~~~-- 2000, the following surface owner was provided a copy of this permit application by placing said copy in the United States mail with postage prepaid and certified at Anchorage, Alaska. State of Alaska Department of Natural Resources Division of Mining, Land & Water 550 W. 7th Ave., Suite 1070 Anchorage, AK 99501-3579 Bob Loeffler, Director There are no other surface owners or operators within aone-quarter mile radius of the proposed Alaska State A-2 disposal well. F. Branch Subscribed and sworn before me this CP ~ day of 2000. Notary blic in and for the State of Alaska zs~ OFFICIAL SEAL State oj,itaska JANiCE P CAMPBELL NOTARY PUBLIC M~! taiai fy~inc: Sept. 28, 2~3 Disposal Injection Application 3-2 4.0 Geologic Information • • 4.0 Geologic Information [20 AAC 25.252(2)(4)] This section includes information on the depth to the base of permafrost and the nature and distribution of the sediments in the proposed injection zone and of the confining zones which bound it. 4.1 Depth to Base of Permafrost The shallowest and average depth to the base of the permafrost, as determined by the operator's geologist, is 1,050 and 1,500 feet respectively. This determination is based on the moving resistivity curve over this interval. 4.2 Sagavanirktok Sandstone The injection zone is contained within the nonmarine Sagavanirktok Sandstone that is present in the Exxon Alaska State A-1 well from the surface to a depth of 7,710 feet. The formation is comprised of sandstone, conglomerate, siltstone, shale and coal. This formation is gradational to the underlying marine Colville Shale that is comprised of a thick sequence of shale, minor sandstone and bentonite. 4.3 Injection Zones The proposed injection zones are present between the depths of 2,150 feet and 2,350 feet as recorded on the logs of the Exxon Alaska State A-1 well. For the purposes of this application, all formation depths are referenced to the A-l well. The lithologies at this depth are primarily sandstone and conglomerate with minor siltstone and coal lenses. The sand and conglomerate units are poorly cemented with probable intergranular porosity. On the logs, these zones appear to exhibit good properties for fluid injection. A reasonable estimate of porosity and permeability for these unconsolidated zones is 32% and one (1) darcy, respectively. Perforations are not planned above 2,150 feet in the A-2 disposal well. The proposed injection zones located between 2,150 feet and 2,350 feet will be selectively perforated starting at the deepest available zone. Approximately 20 feet of perforations should be sufficient at the bottom of this interval for the planned injection operations. If additional perforations are needed at a later time, they will be made in the next available unperforated zone above those previously perforated. 4.4 Confining Layers There are several zones of siltstone containing minor amounts of sandstone and pebbles in the Alaska State A-1 well above the proposed disposal zones. These are located near 1,300 feet and 1,500 feet with the primary confining zone located between the depths of 1,920 and 1,960 feet. These nonporous and nonpermeable Disposal Injection Application 4 - 1 ~ • • ' layers will form effective upper seals and prevent the upward migration of injected fluids. The presence of permafrost above this depth will also prevent the ' upward migration of injected fluids. Numerous layers of siltstone are also present at depths greater than 2,500 feet, which is below the proposed injection zone. Examples of these siltstone layers are present at depths of 2,750 feet to 2,770 feet and from 2,860 feet to 2,920 feet. These lower nonporous and nonpermeable layers will be effective barriers to downward migration of the injected fluids. ~i i~ i~ i~ ii i~ i~ i~ ' Disposal Injection Application 4 - 2 cn 0 ~' m r: o ~ ~ 5.0 Well Logs [20 AAC 25.252(c)(5)] Well logs showing the spontaneous potential (SP), gamma ray and resistivity curves for the Exxon Alaska State A-1 well are enclosed with this application. The interpreted lithology has been added to the SP/Resistivity log for the depth range of 1,250 to 2,900 feet in the A-1 well. Copies of the Exxon Alaska State G-2 well logs, which remain classified as confidential indefinitely, are available in the files of the AOGCC. After the Alaska State A-2 disposal well has been drilled, a complete correlated set of logs will be filed with the AOGCC that shows the correlation between the Alaska State A-1 well and the A-2 disposal well. Disposal Injection Application ~ - 1 ___ 6.0 Casing and Cementing Program • • 6.0 Casing and Cementing Program [20 AAC 25.252(c)(6)] The casing and cementing detail for the proposed Alaska State A-2 disposal well is shown in Figure 6-l. The 5-1/2 inch casing will be cemented in two stages. The first stage will extend from TD to 900 feet and consist of approximately 45 sacks of Coidset III cement followed by 133 sacks of Class G cement. The second stage will extend from the cementing collar at 900 feet to the surface and consist of 453 sacks of Coldset III permafrost cement. The casing and cementing program is summarized in Table 6-l. After cementing the 5-1/2 inch casing, the casing will be pressure tested to 1,500 psi, then perforated across the selected disposal zone(s). Approximately 20 feet of perforations will be made at or near the bottom of the available disposal zone section. Although Figure 6-1 shows the entire disposal zone to be perforated, it is unlikely that it will be necessary to perforate the entire disposal section during the project. After perforating the well, a step rate injection test will then be run to establish injection rates and pressures. Table 6-1 Casing and Cementing Detail Summary ' ExxonMobil Production Company Alaska State A-2 Disposal Well ' Hole Casing Casing Depth Depth Float Size Size Description Shoe (RKB) Top Length Equipment Cement Vol ' 9-5/8" 7-5/8" 29.7# L-80 80' Surface 80' none Cold Set II 50 sx 17.0# L-80 F.C. G 133 sx ~ 6-3/4" 5-1/2" STL 2,400' Surface 2,400' F.S. Cold Set III 498 sx Disposal Injection Application 6 - 1 ~ • All Casings Cut X30' Below Grade x 100' 7" Surface Casing Tubing Cut ®200' with 170' Cement Plug on Top. Permafrost Interface ® 1,050' Stage Cementing Tool ® 1,100' x2,130' LEGEND ?`?. Cement All Perfs Squeezed x2,300' NO SCALE FAIR/EXXON/2000/FLX2000 1:1 5/15/OD SR 5" Production/Disposal Casing 5" x 2 7/8" Packer Disposal Zone, 2,150' - 2,300' Figure 2-4 Flaxman Island Disposal Well Post Abandonment Well Schematic i.:: . Tubing/Casing Annulus Freeze Protected w/CaClz Brine. zgp' ~~- Stage Cementing Tool A 900' LEGEND Cement .; -t ;.:, , 2,000' • =. x2,400' NO SLALE FAIR/EXXON/2000/FUCH2O00 t:t 8/23/00 SR .~ _`. .y -r 7 5/8" Conductor Casing Y. '~r, ',` t l ~, Permafrost Interface A ~ 1.050' c. ~= ti~ :i._ 2 7/8" Tubing .t.,., .~-: S 1/2" x 2 7/8" Packer Potential Disposal Zone, _ 2,150' - 2,350' 5 1/2" Production/Disposal Casing Figure 6-1 Proposed Alaska State A-2 Wellbore Schematic Disposal Injection Application 6 - 2 _ _._ 7.0 Fluids to be Injected I i s to be In'ected 20 AAC 25.252 c 7 7.0 F u d J [ ()( )~ The primary waste fluids to be injected are the approximately 15,000 or more cubic yards of drilling waste which accumulated as the result of the drilling of the Exxon Alaska State A-1 and G-2 wells. These wastes were subsequently left in the respective reserve ' and flare pits after drilling and covered over, as per then current AOGCC regulations. Additional drilling wastes associated with former flare pits and those created by the drilling of the disposal well will also be ground and injected in the Alaska State A-2 disposal well. ' Soil borings and analyses conducted during site assessments in 1998 and 1999 indicate that these reserve pits and flare pits contain drilling wastes with varying levels of hydrocarbons and associated levels of metals such as barium and chromtum. Drilling ' wastes from the Alaska State G-2 well will be transported by truck over an ice road for processing at the State Alaska State A-1/A-2 location. ' A portable grind and inject system will be mobilized to this site for disposal of all drilling wastes. Estimated production rates for this system will be approximately 250 to 400 cubic yards (1,200 to 1,900 bbl) of waste material per day. Processed slurry for injection will be checked for adequate injection properties prior to being pumped downhole. Slurry weight will be approximately 11.5 pounds per gallon with the solids content limited to about 20% by weight and the funnel viscosity maintained at 65. Solids in the drilling wastes will be initially ground to 50 mesh size or smaller during startup of the grinding and injection operation. After startup, the processing particle size will be adjusted as necessary during the grinding and injection operations. Bentonite or polymer viscosifiers will be used as necessary to maintain proper slurry viscosity thereby reducing the potential of well plugging. Approximately 200,000 barrels of injection slurry (including seawater makeup) is anticipated for the disposal of 15,000 cubic yards of drilling wastes. The total volume of injection slurry could be greater than this amount depending upon the volume of waste material required to be disposed. Disposal Injection Application ~ - 1 _. _ _ __ 8.0 Injection Pressure 8.0 Injection Pressure [20 AAC 25.252(c)(8)] The estimated surface injection pressure for the Alaska State A-2 disposal well is 1,000 psi at an injection rate of five (5) barrels per minute. This estimate is based on hydraulic flow calculations for the surface piping and well tubing and the limited field data for annular injection in the Alaska State A-1 well. In the A-1 well, reserve pit fluids were pumped down the 13-3/8 x 9-5/8 inch annulus and out the 13-3/8 inch casing shoe at 3,376 feet. The surface injection pressure for this activity was 250 psi at a rate of 1.25 barrels per minute. This field data is consistent with the estimated surface injection pressure discussed above when formation depth, annular cross sectional area and pumping rates are considered. After completion of the well, ExxonMobil will perform a step rate injection test to establish injection rates and pressures. The step rate test will be incrementally increased to pump rates approximately 100% in excess of the maximum anticipated pumping rates for waste disposal. Pressure falloff data will also be collected. Disposal Injection Application 8 - 1 9.0 Fracture Information [20 AAC 25.252(c)(9)] Injection disposal of the A-1 and G-2 drilling wastes is expected to create a vertical fracture(s) in the disposal formation. Simulation model results of the theoretical formation fracture pattern is included as Exhibits 9-1, 9-2 and 9-3. The fracture model shows a vertical single fracture starting at 2,225 feet and propagating away from the wellbore and being confined above by the siltstone layer located at 1,920 to 1,960 feet. The model has been run for the following three injection scenarios. 1. Injection at five (5) barrels per minute for 30.6 continuous days resulting in 220,000 bbls of fluid injected. 2. Injection at five (5) barrels per minute for five (5) continuous days, 37,000 total barrels injected. ' 3. Injection at five (5) barrels per minute for five (5) continuous days then stopping injection for one (1) day, followed by repetition of the five (5) day pumping period, unti1213,000~ total barrels of fluid are injected. In all three modeled cases, the fractures are bounded above by the siltstone-confining layer. ram ro xtreme injection t th d t b i i 1 i i g p e mos e o e pate ) s ant c t 9- Injection Scenario 1 (Exhib possible for the project. This scenario assumes that 220,000 bbl (7,200 bbUday) of slurry I would be injected continuously for 30.6 days at five (5) bbUmin. These rates are at or above the maximum processing and injection capacity of the proposed grinding and injection system. This scenario also assumes that injection will continue unabated for 30.6 days. This will be nearly impossible given the need for regular maintenance for the grinding and injection system. Although this unrealistic, worst-case modeled scenario does fracture into the primary confining layer at 1,920 to 1,960 feet, it does not break through to the zones above. Scenario 2 (Exhibit 9-2) models the basic injection program of five barrels per minute for five continuous days. Under this scenario, the formation fracture does not reach the confining layer. Scenario 3 (Exhibit 9-3) is a reasonable representation of what can be expected during injection operations. Under this scenario, slurry is injected at five bbls per minute for five (5) days, then shut down for one day and restarted again for a total of 213,000 bbl injected. The results of this scenario are essentially the same as for Scenario 2 where the fracture is completely confined by the siltstone layer from 1,920 to 1,960 feet. ExxonMobil anticipates processing between 250 and 400 cubic yards of drilling waste per day during grind and inject operations. These rates are equal to continuous slurry injection rates of 2.3 to 3.7 bbls per minute and are significantly lower than those I ~ Disposal Injection Application 9 - 1 modeled above. The perforating plan also calls for perforating the lowest available disposal zone in the wellbore which is anticipated to be at least 100 feet below the 2,225 foot depth that is specified as the starting depth of fracture in the fracture model. Therefore, the fracture model uses conservative assumptions to magnify potential consequences of the anticipated fracture regime. The fracture model results show simple vertical fractures. The fracture regime will likely consist of a primary vertical fracture(s) with multiple smaller fractures adjacent to and splitting off of the primary fracture(s) in an oblique fashion. This will have an increased effect on the ability to dissipate fluid and solids from the wellbore and will decrease the lateral extent of the primary fracture. Disposal Injection Application 9 - 2 • • EXHIBIT 9-1 FRACTURE MODEL INJECTION SCENARIO I Injection Rate: Injection Duration: Injection Volume: Disposal Injection Application 5 bbUmin 30.6 days (44,091 min) 220,150 bbl 9-3 FracproPT10.0 Hydraulic Fracture Analysis WellName: Flaxman Island Disposal Well Location: North Slope, Alaska Format'n: Job Date: 8-30-00 . Filename: Flaxman Islands Fracture Analysis Options Conventional 3D Model Run From Job-Design Data No Convection or Settling Lithology Based Reservoir Vertical Fracture Model Wellbore and Perforations Results Summary Model has run until (min) 44090.80 Fracture efficiency 0.01 Fracture length (ft) 1344.95 Propped length (ft) 0.00 Fracture upper height (ft) 301.28 Propped upper height (ft) 0.00 Fracture lower height (ft) 153.43 Propped lower height (ft) 0.00 Max width at well (in) 0.18 Avg. prop. conc. (lb/ ft2) 0.00 Dimensionless Cond. Ratio 0.00 Total fluid (bbls) 220150.36 Total sand (klbs) 0.00 Min Surface Pressure (psi) 271.19 Max Surface Pressure (psi) 359.60 Max H draulic Power (hp) 44 Ol Avg Hydraulic Power ( hp) 34.57 Y Dist from Wbore (ft) 0 168 336 504 672 841 1009 1177 1345 Width @ Center (in) 0.18 0.17 0.17 0.16 0.15 0.14 0.12 0.09 0.00 Run from Design Data Only Disposal Injection Application 9 - 4 ~ ~ October 11, 2000 Page 2 6:05 pm FracproPT10.0 Hydraulic Fracture Analysis WellName: Flaxman Island Disposal Well Location: North Slope, Alaska Format'n: Job Date: 8-30-00 Filename: Flaxman Islands Treatment Schedule Elapsed Clean Prop Stage Slurry Proppant Stg Time Fluid Volume Conc. Prop. Rate Type # min:sec Type (kgal) (ppg) (klbs) - ------- ------ - (bpm) ------ ------------ --- ------- ------ W'bore Fluid 20 KCL ------ --- - 0.8 1 23:48 LINEAR 30 GW 5.0 0.00 0.0 5.00 2 30:days LINEAR _30_GW 7550.0 5.00 37750.0 5.00 100-Mesh Scheduled clean vol (kgal) 7555.00 Scheduled sand total (klbs) 37750.00 Scheduled slurry vol (kgal) 9262.18 Disposal Injection Application 9 - 5 FracproPT10.0 Hydraulic Fracture Analysis We1lName: Flaxman Island Disposal Well Location: North Slope, Alaska Format'n: Job Date: 8-30-00 Filename: Flaxman Islands Fluid Parameters All Fluid info is at a reservoir temperature of 45..0 (°F) All Viscosities at Shear Rate of 511 (1/sec) Fluid Name SPEC 4000 4 20 KCL LINEAR 30 GW Init. Rheology Viscosity 284.8 0.958 19.80 n' 0.300 1.000 0.525 K` 0.468 2.000e-05 0.008 Rheology @ 4.0 hours Viscosity 263.8 0.958 11.21 n` 0.316 1.000 0.629 K' 0.393 2.000e-05 0.002 Gel Density 1.000 1.01 1.000 Spurt Loss 0.0 0.0 2.00 Wall Building 0.002 0.0 0.003 Flowrate #1 7.50 10.00 10.00 Fric Press #1 93.59 96.64 72.00 Flowrate #2 15.00 20.00 20.00 Fric Press #2 154.0 335.1 185.0 Flowrate #3 30.00 40.00 40.00 Fric Press #3 486.1 1161.7 398.9 WB Fric Mult 1.000 1.000 1.000 Wellbore Friction pressure s shown are the interpolated values multiplied by the Wellbore Friction Mult iplier. Viscosity is displayed in (cp) K` is displayed in (lbf•s^ n/ft2) Gel Density is displayed a s (sg) Spurt Loss is displayed in (gal/ft2) Wall Building is displayed in (ft/min=~) Friction pressure is displ ayed in (psi/1000 ft) Friction is displayed for longest wellbore segment Disposal Injection Application 9 - 6 October 11, 2000 • Page 4 ~ 6:05 pm ~, , FracproPT10.0 Hydraulic Fracture Analysis WellName: Flaxman Island Disposal Well Location: North Slope, Alaska Format'n: Job Date: 8-30-00 Filename: Flaxman Islands Leakoff Parameters Reservoir type User Spec Filtrate to reservoir fluid perm. ratio, Kp/Kl 1 Reservoir pore pressure (psi) 800 Initial fracturing pressure (psi) 1100 Reservoir fluid compressibility (1/psi) 5.OOe-004 Cold filtrate viscosity (cp) 1.00 Hot filtrate viscosity (cp) 1.00 Cold reservoir viscosity (cp) 1.00 Hot reservoir viscosity (cp) 1.00 Porosity 0.32 Gas Leakoff Percentage 100.00 Reservoir Parameters Reservoir temperature (°F) 45.00 Depth. to center of Perfs (ft) 2225 Perforated interval (ft) 150 Initial frac depth (ft) 2225 Layer Parameters Lay Top of Top of Young's Poisson's Top of Total PoreFluid # zone Stress zone modulus ratio zone Ct perm. (ft) (psi) (ft) (psi) --------- (ft) - (ft/min's) (md) 1 0.0 1360 0.0 8.Oe+06 0.25 0.0 4.124e-05 1.00e-04 2 1700.0 1144 1700.0 2.3e+06 0.20 1700.0 1.298e-04 1.00e-03 3 1820.0 1501 1820.0 1.0e+06 0.35 1820.0 1.298e-04 1.OOe-03 4 1840.0 1222 1840.0 2.3e+06 0.20 1840.0 2.558e-04 4.OOe-03 5 1920.0 1552 1920.0 8.Oe+06 0.25 1920.0 4.124e-05 1.OOe-04 6 1960.0 1572 19.60.0 8.Oe+06 0.25 1960.0 4.124e-05 1.00e-04 7 1970.0 1412 1970.0 2.3e+06 0.20 1970.0 1.742e-03 1.00e+03 8 2375.0 1990 2375.0 8.Oe+06 0.25 2375.0 4.124e-05 1.OOe-04 9 2600.0 2080 2600.0 8.Oe+06 0.25 2600.0 4.124e-05 1.OOe-04 Disposal Injection Application 9 - ~ October 11, 2000 ~ page 5 6:05 pm FracproPT10.0 Hydraulic Fracture Analysis WellName: Flaxman Island Disposal Well Location: North Slope, Alaska Format`n: . Job Date: 8-30-00 Filename: Flaxman Islands Lithology Parameters Layer Top of Lithology Top of Fracture Top of Tip Effects # zone zone Toughness zone Factor (ft) -------- (ft) ------- (psi•in'~) --------- (ft) ------- --------- ----- 1 ------- 0.0 --- Shale 0.0 2000 0.0 1.00 2 1700.0 Sandstone 1700.0 800 1700.0 1.00 3 1820.0 Coal 1820.0 1000 1820.0 1.00 4 1840.0 Sandstone 1840.0 800 1840.0 1.00 5 1920.0 Shale 1920.0 2000 1920.0 1.00 6 1960.0 Shale 1960.0 2000 1960.0 1.00 7 1970.0 Sandstone 1970.0 800 1970.0 1.00 8 2375.0 Shale 2375.0 2000 2375.0 1.00 9 2600.0 Shale 2600.0 2000 2600.0 1.00 Disposal Injection Application 9 - 8 October 11, 2000 ~ Page 6 • FracproPT10.0 Hydraulic Fracture Analysis WellName: Flaxman Island Disposal Well Location: North Slope, Alaska Format'n: Job Date: 8-30-00 Filename: Flaxman Islands Wellbore Configuration Segment Segment Tubing Tubing Casing Length Type ID OD ID (ft) (in) (in) (in) ------ ------- ------ ------ ------ 2100 Tubing 2.992 0.000 0.000 50 Casing 0.000 0.000 4.408 Tubular Goods are defined to the TOP of the deepest set of perforations that are being modeled. Top of Perfs - TVD (ft) 2150 Bot of Perfs - TVD (ft) 2300 Perf Diameter (in) 0.400 # of Perfs 900 Near Wellbore Friction Parameters & Perf Multiplier Time Flow Rate #1 Flow Rate #2 Delta P Perf Coeff min:sec (bpm) (bpm) (psi) Multiplier 0:00 0.00 0.00 0.00 1.00 6:05 pm Disposal Injection Application 9 - 9 • • Page October 11 2000 ' 7 6:05 pm FracproPT 10.0 Hydraulic Fractu re Analysis WellName: Flaxman Island Disposal Well Location: North Slope, Alaska Format'n: Job Date: 8-30-00 Filename: Flaxman Islands Model Para meters Fracture Growth Parameters (Conventional 3D Model) Crack Opening Coefficient 0.7000000 Rock Deformation Coefficient 0.4000000 Channel Flow Coefficient 1.0000000 Fluid Radial Weighting Exponent set to def ault of Rock Deformation Coeff / 10. Proppant Model Parameters Minimum Proppant Concentration (lb/ft^2) 0.20 Minimum Proppant Diameter (in) 0.008 Volume Fraction of Proppant in Slurry 0.60 Proppant Drag Effect Exponent 8.0 Proppant Radial Weighting Exponent 0.2500 Proppant Convection Coefficient 10.00 Proppant Settling Coefficient 1.00 Quadratic Backfill Model ON Quadratic Backfill Coefficient 0.50 Stop Model on Screenout ON Initial Leakoff Area Coeff 1.00 Closure Leakoff Area Coeff 0.03 Minimum Fracture Height OFF Near Wellbore Friction Exponent 0.50 t Disposal Injection Application 9 - 10 October 11, 2000 ~ Page 8 FracproPT10.0 Hydraul ic Fracture Analysis WellName: Flaxman Island Disposal Well Location: North S lope, Alaska Format'n: Job Date: 8-30-00 Filename: Flaxman Islands Proppant Data Proppant Name TemprdLC-16 3 CarboEP-2040 100-Mesh ------------ ------------- Cost ($/lb) ----------- 0.0 - ------------ 0.0 0.070 Bulk Dens (lbm/ft 3) 93.70 96.00 115.8 Packed Porosity 0.415 0.433 0.300 Specific Gravity (sg) 2.57 2.71 2.65 Turbulence Coeff a 0.930 1.20 1.39 Turbulence Coeff b 0.930 1.20 1.39 Diameter (in) 0.031 0.025 0.006 Perm @ 0 psi (D) 530.0 375.0 40.00 Perm @ 2000 psi (D) 530.0 342.0 40.00 Perm @ 4000 psi (D) 360.0 295.0 40.00 Perm @ 6000 psi (D) 174.0 220.0 40.00 Perm @ 8000 psi (D) 69.00 141.0 40.00 Perm @ 10000 psi (D) 32.00 91.00 40.00 Perm @ 12000 psi (D) 32.00 51.00 40.00 Perm @ 14000 psi (D) 32.00 40.00 Perm @ 16000 psi (D) 32.00 40.00 Perm @ 18000 psi (D) 32.00 40.00 Disposal Injection Application 6:05 pm 9-11 d 0 800 r. 0 ~ 1080 ~~ w o• 1360 1640 i N n. 1920 a~ 0 2200 2480 2760 3040 3320 3600 Stress Profile I ~ ~ ;, i ~ i L' ..... i I I. J I 1 1 > I I ~' I L' I>~ - - -- ~ a ''i a ,. ~ I 1 I I, I .. .I., ~" /I r r ~ _ ~il ;;.. ;...:L . ~ ._ ~.. f' 1 `j I I I 9. (' ;, l '`? - I I i I L ;I, - T - I 'f a I Perme bility .~ ~ ~ _i .~-~..~ .- 'i J Low Hlgh I Fracture Dimensions I I I I ----~-- I I I I I ---1--- I I I I I --~----- I I I I I I --~---- I I I I I I ---~- I I I I i I ----~----- I I I I -----~-- I I I ~ I I --~-- I I I ~ I ---a----- I I I I -- I -----E--- I I I ---- ~ -- I ---a-- i I I -- ~ - I ----I----- I I I ----I----- -- ---- I I I I ----t-- I -- -- I I I I ---f--- I --- --- I I I I ----1----- I I I I I -- I I I I I -- - I I i I ----{----- I I ----~-- I I I i ---~-- I I I I J----- I i I --- ~-- I I -- - I - - I I -----f--- I I I ---r-- I I I ---1----- I I I ----rt--- I I I --rt- I I I I ----1----- I I I I -----~-- I I I I ----~-- I I I ---J----- I I I -----I--- I I I ---~- I I i ----a----- I I I I __ ----~- I __ I -~--- I I --~----- I ____ I __ T I __ I -~- I I ----~----- I ---- {'-- I I I I ---~-- I I I I --~----- I I I I -----}---- I I I I ---I"- I I I I ----{----- I I I 1000 1500 2000 2500 3000 1400 1050 700 350 0 350 700 1050 1400 Closure Stress (psi) Propped Length (ft) Hydraulic Length (ft) d 0 G 0 o~ i W Fracture Prole Roc... Stre... Mod... Pore... Width Pro... o ,~ _ i.~ ~i>. .;~. ... "~ .~ ~, ~.t~ .,' ~eti ~~~ ~ :~:. < ~_ __ 1 p~~~~~ ~1 v7 I ~~ i i ~ T+.S: I ~ :i i ~~ ', ~'~.»' I~ ~ r ?ZiU - 220 a I ~ ~~ ~ t° ' p2A~ ~~ 1 JD.: ti ;.C~ ~: ~~~ .~: 'i:~'~iii:'• ~~ ~~ %' :.w '. tx ~ ~' p, r 1 ~r iir `. i ~~€'~~: Pr ppant Concentration (Ib!ft~ 1 ~ '~ <, <r.:: i ~~{ ~ 0 rl 40 USO 1 '' ~. 1 F it "' 4 '.¢ ~ - 33 3.6 4.~ -. r.-- ,~ .. ~_~ :' ': . ~ h _ _,. ,: ___ _ ~. ~_~ ~:. -: s -~ Concentration of Proppant in Fracture (lb/ft2) EXHIBIT 9-2 FRACTURE MODEL INJECTION SCENARIO II Injection Rate: Injection Duration: Injection Volume: 5 bbUmin 5.1 days (7,372 min) 36,846 bbl Disposal Injection Application 9 - 14 ' October 6, 2000 • Page 1 ~ 7:04 pm FracproPT10.0 Hydraulic Fracture Analysis ' WellName: Flaxman Island Disposal Well Location: North Slope, Alaska Format'n: Job Date: 8-30-00 ' Filename: Flaxman Islands Fracture Analysis Options ' Conventional 3D Model Run From Job-Design Data No Convection or Settling Lithology Based Reservoir ' Vertical Fracture Model Wellbore and Perforations Results Summary Model has run until (min) 7372.30 Fracture efficiency 0.01 Fracture length (ft) 435.07 Propped length (ft) 0.00 Fracture upper height {ft) 262.08 Propped upper height (ft) 0.00 Fracture lower height (ft) 150.75 Propped lower height (ft) 0.00 Max width at well (in) 0.12 Avg. prop. conc. (lb /ft~) 0.00 Dimensionless Cond. Ratio 0.00 Total fluid (bbls) 36846.64 Total sand (klbs) 0.00 Min Surface Pressure (psi) 262.93 Max Surface Pressure (psi) 624.56 Max Hydraulic Power (hp) 76.45 Avg Hydraulic Power (hp) 34.06 Dist from Wbore (ft) 0 54 109 163 218 272 326 381 435 Width @ Center (in) 0.12 0.12 0.12 0.11 0.11 0.09 0.08 0.06 0.00 Run from Design Data Only Disposal Injection Application 9 - 15 FracproPT10.0 Hydraulic Fracture Analysis WellName: Flaxman Island Disposal Well Location: North Slope, Alaska Format'n: Job Date: 8-30-00 Filename: Flaxman Islands Treatment Schedule Elapsed Clean Prop Stg Time Fluid Volume Conc. # min:sec Type (kgal) (ppg) W'bore Fluid 20 KCL 0.8 1 23:48 LINEAR 30 GW 5.0 0.00 2 7370:46 LINEAR_30_GW 1258.3 5.00 Scheduled clean vol (kgal) 1263.33 Scheduled slurry vol (kgal) 1547.86 Stage Prop. (klbs) 0.0 6291.7 Scheduled Slurry Proppant Rate Type (bpm) ------ ------------ 5.00 5.00 100-Mesh sand total (klbs) 6291.67 Disposal Injection Applicarion 9 - 16 ' October 6, 2000 ~ Page 3 • ' FracproPT10.0 Hydraulic Fracture Analysis ' WellName: Flaxman Island Disposal Well Location: North Slope,. Alaska Format'n: Job Date: 8-30-00 Filename: Flaxman Islands Fluid Parameters 7:04 pm ' All Fluid info is at a reservoir temperature of 45.0 (°F) All Viscosities at Shear Rate of 511 (1/sec) ' Fluid Name SPEC 4000 4 20 KCL - LINEAR 30 GW ------------ ---------- ----------- Init. Rheology - ---- ------ - Viscosity 284.8 0.958 19.80 n' 0.300 1.000 0.525 K' 0.468 2.OOOe-05 0.008 Rheology @ 4.0 hours ' Viscosity 263.8 0.958 11.21 n' 0.316 1.000 0.629 K' 0.393 2.OOOe-05 0.002 Gel Density 1.000 1.01 1.000 ' Spurt Loss 0.0 0.0 2.00 Wall Building 0.002 0.0 0.003 Flowrate #1 7.50 10.00 10.00 ' Fric Press #1 93.59 96.64 72.00 Flowrate #2 15.00 20.00 20.00 Fric Press #2 154.0 335.1 185.0 Flowrate #3 30.00 40.00 40.00 ' Fric Press #3 486.1 1161.7 398.9 WB Fric Mult 1.000 1.000 1.000 Wellbore Friction pressure s shown are t he interpolated values multiplied by ' the Wellbore Friction Mult iplier. Viscosity is displayed in (cp) K' is displayed in (lbf•s^ n/ft2) ' Gel Density is displayed a s (sg) Spurt Loss is displayed in (gal/ft2) Wall Building is displayed in (ft/min'-~) ' Friction pressure is displ ayed in (psi/ 1000 ft) Friction is displayed for longest wellb ore segment ii i~ u i~ I' Disposal Injection Application 9 - 17 ' October 6, 2000 ~ Page 4 ~ 7:04 m p FracproPT10.0 Hydraulic Fracture Analysis ' WellName: Flaxman Island Disposal Well Location: North Slope, Alaska Format'n: Job Date: 8-30-00 ' Filename: Flaxman Islands Leakoff Parameters ' Reservoir type User Spec Filtrate to reservoir fluid perm. ratio, Kp/Kl 1 Reservoir pore pressure (psi) 800 Initial fracturing pressure (psi) 1100 ' Reservoir fluid compressibility (1/psi) 5.OOe-004 Cold filtrate viscosity (cp) 1.00 Hot filtrate viscosity (cp) 1.00 ' Cold reservoir viscosity (cp) 1.00 Hot reservoir viscosity (cp) 1.00 Porosity 0.32 Gas Leakoff Percentage 100.00 Reservoir Parameters Reservoir temperature (°F) 45.00 ' Depth to center of Perfs (ft) 2225 Perforated interval (ft) 150 Initial frac depth (ft) 2225 ' Layer Parameters Lay Top of Top of Young's Poisson's Top of Total PoreFluid # zone Stress zone modulus ratio zone Ct perm. (ft) (psi) (ft) (psi) --------- (ft) --- (ft/min's) (md) 1 0.0 1360 0.0 8.Oe+06 0.25 0.0 4.124e-05 1.OOe-04 ' 2 1700.0 1144 1700.0 2.3e+06 0.20 1700.0 1.298e-04 1.00e-03 3 1820.0 1501 1820.0 1.0e+06 0.35 1820.0 1.298e-04 1.00e-03 4 1840.0 1222 1840.0 2.3e+06 0.20 1840.0 2.559e-04 4.OOe-03 5 1920.0 1552 1920.0 8.Oe+06 0.25 1920.0 4.124e-05 1.00e-04 ' 6 1960.0 1572 1960.0 8.Oe+06 0.25 1960.0 4.124e-05 1.OOe-04 7 1970.0 1412 1970.0 2.3e+06 0.20 1970.0 1.766e-03 1.00e+03 8 2375.0 1990 2375.0 8.Oe+06 0.25 2375.0 4.124e-05 1.00e-04 9 2600.0 2080 2600.0 8.Oe+06 0.25 2600.0 4.124e-05 1.00e-04 Disposal Injection Application 9 - 18 October 6, 2000 • Page 6 ~ 7:04 pm FracproPT10.0 Hydraulic Fracture Analysis WellName: Flaxman Island Disposal Well Location: North Slope, Alaska Format'n: Job Date: 8-30-00 Filename: Flaxman Islands Wellbore Configuration Segment Segment Tubing Tubing Casing Length Type ID OD ID (ft) (in) (in) (in) ------ ------- ------ ------ ------ 2100 Tubing 2.992 0.000 0.000 50 Casing 0.000 0.000 4.408 Tubular Goods are defined to the TOP of the deepest set of perforations that are being modeled. Top of Perfs - TVD (ft) 2150 Bot of Perfs - TVD (ft) 2300 Perf Diameter (in) 0.400 # of Perfs 900 Near Wellbore Friction Parameters & Perf Multiplier Time Flow Rate #1 Flow Rate #2 Delta P Perf Coeff min:sec (bpm) (bpm) (psi) Multiplier 0:00 0.00 0.00 0.00 1.00 Disposal Injection Application 9 - 20 October 6, 2000 ~ Page 5 • FracproPT10.0 Hydraulic Fracture Analysis WellName: Flaxman Island Disposal Well Location: North Slope, Alaska Format'n: Job Date: 8-30-00 Filename: Flaxman Islands Lithology Parameters Layer Top of Lithology Top of Fracture Top of Tip Effects # zone zone Toughness zone Factor (ft) --- (ft) ------- (psi • in'-~) --------- (ft) ------- --------- ----- 1 ------- 0.0 -------- Shale 0.0 2000 0.0 1.00 2 1700.0 Sandstone 1700.0 800 1700.0 1.00 3 1820.0 Coal 1820.0 1000 1820.0 1.00 4 1840.0 Sandstone 1840.0 800 1840.0 1.00 5 1920.0 Shale 1920.0 2000 1920.0 1.00 6 1960.0 Shale 1960.0 2000 1960.0 1.00 7 1970.0 Sandstone 1970.0 800 1970.0 1.00 8 2375.0 Shale 2375.0 2000 2375.0 1.00 9 2600.0 Shale 2600.0 2000 2600.0 1.00 7:04 pm Disposal Injection Application 9 - 19 October 6, 2000 • Page 7 • 7:04 pm FracproPT10.0 Hydraulic Fracture Analysis WellName: Flaxman Island Disposal Well Location: North Slope, Alaska Format'n: Job Date: 8-30-00 Filename: Flaxman Islands Model Parameters Fracture Growth Parameters (Conventional 3D Model) Crack Opening Coefficient 0.7000000 Rock Deformation Coefficient 0.4000000 Channel Flow Coefficient 1.0000000 Fluid Radial Weighting Exponent set to default of Rock Deformation Coeff / 10. Proppant Model Parameters Minimum Proppant Concentration (lb/ft^2) 0.20 Minimum Proppant Diameter (in) 0.008 Volume Fraction of Proppant in Slurry 0.60 Proppant Drag Effect Exponent 8.0 Proppant Radial Weighting Exponent 0.2500 Proppant Convection Coefficient 10.00 Proppant Settling Coefficient 1.00 Quadratic Backfill Model ON Quadratic Backfill Coefficient 0.50 Stop Model on Screenout ON Initial Leakoff Area Coeff 1.00 Closure Leakoff Area Coeff 0.03 Minimum Fracture Height OFF Near Wellbore Friction Exponent 0.50 Disposal Injection Application 9 - 21 ~ • October 6, 2000 Page 8 7:04 pm FracproPT10.0 Hydraul ic Fracture Analysis WellName: Flaxman Isla nd Disposal Well Location: North S lope, Alaska . Format'n: Job Date: 8-30-00 Filename: Flaxman Islands Proppant Data Proppant Name TemprdLC-16 3 CarboEP-2040 100-Mesh ------------- Cost ($/lb) ----------- 0.0 - ------------ 0.0 ------------ 0.070 Bulk Dens (lbm/f t 3) 93.70 96.00 115.8 Packed Porosity 0.415 0.433 0.300 Specific Gravity (sg) 2.57 2.71 2.65 Turbulence Coeff a 0.930 1.20 1.39 Turbulence Coeff b 0.930 1.20 1.39 Diameter (in) 0.031 0.025 0.006 Perm @ 0 psi (D) 530.0 375.0 40.00 Perm @ 2000 psi (D) 530.0 342.0 40.00 Perm @ 4000 psi (D) 360.0 295.0 40.00 Perm @ 6000 psi (D) 174.0 220.0 40.00 Perm @ 8000 psi (D) 69.00 141.0 40.00 Perm @ 10000 psi (D) 32.00 91.00 40.00 Perm @ 12000 psi (D) 32.00 51.00 40.00 Perm @ 14000 psi (D) 32.00 40.00 Perm @ 16000 psi (D) 32.00 40.00 Perm @ 18000 psi (D) 32.00 40.00 Disposal Injection Application 9 - 22 ~ ~ ~ ~ ~ ~ ~ ~ ~ r ~ ~ ~ ~ ~ ~ ~ ~ ~ d 0 ~' 1700 ~. 0 ~ laoo Y Stress Profile ~~ I 9 j I 'I Fracture Dimensions ~. o' 1900 2000 ~_ L a 2100 0 2200 2300 2400 2500 2600 w 2700 I I I I I I I I I I I I I I i I I I I I I I I I I I I I I I I I I I I I ____t-- I I I I I --~-- I I I I I --~--_-- I I I -----~-- I I I ---I--- I I I ---~----- i I I I ----~-- I I I ---r-- I I I I ---1 I I I I ----~-- I I I ---~-- I I I ---J----- I I I ---- T I I I - - I I I -- ---- I I I -----}--- I I I I ---I-- I I I I -I----- I I I I I I I I I I I I I I I ----~-------I------~----- I I I I I I I I I -----I------~----~----- I I I I I I I I -- - i -----I----- I I I I I I I I 'J ll1JJ%~/ I I I I I I I I I I I I I _ ---- - T I I I I_ -- - 7 I I I -- ---- I I I I I I I I I I i I i I I 1000 1500 2000 2500 3000 ' 500 375 250 125 0 125 250 375 500 Closure Stress (psi) Propped Length (ft) Hydraulic Length (ft) r~ iu • ~ ~ ~ ~ ~ i ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Fracture Profile • ! EXHIBIT 9-3 FRACTURE MODEL INJECTION SCENARIO III Injection Rate: 5 bbllmin Injection Duration: 34.6 days (49,866 min): 5 days injection followed by 1 day shutdown. Repeated for 34.6 days. Injection Volume: 213,284 bbl Disposal Injection Application 9 - 25 October 6, 2000 ~ Page 1 ~ 6:58 pm FracproPT10.0 Hydraulic Fracture Analysis WellName: Flaxman Island Disposal Well Location: North Slope, Alaska Format`n: Job Date: 8-30-00 Filename: Flaxman Island4 Fracture Analysis Options Conventional 3D Model Run From Job-Design Data No Convection or Settling Lithology Based Reservoir Vertical Fracture Model Wellbore and Perforations Results Summary Model has run until (min) 49866.70 Fracture efficiency 0.01 Fracture length (ft) 375.21 Propped length (ft) 0.00 Fracture upper height (ft) 256.91 Propped upper height (ft) 0.00 Fracture lower height (ft) 150.53 Propped lower height (ft) 0.00 Max width at well (in) 0.11 Avg. prop. conc. (lb /ftz) 0.00 Dimensionless Cond. Ratio 0.00 Total fluid (bbls) 213284.13 Total sand (klbs) 0.00 Min Surface Pressure (psi) 261.36 Max Surface Pressure (psi) 456.39 Max Hydraulic Power (hp) 55.86 Avg Hydraulic Power (hp) 33.86 Dist from Wbore (ft) 0 47 94 141 188 235 281 328 375 Width @ Center (in) 0.11 0.11 0.11 0.10 0.10 0.09 0.07 0.05 0.00 Run from Design Data Only Disposal Injection Application 9 - 26 October 6, 2000 • Page 2 FracproPT10.0 Hydraulic Fracture Analysis WellName: Flaxman Island Disposal Well Location: North Slope, Alaska Format'n: Job Date: 8-30-00 Filename: Flaxman Island4 6:58 pm Treatment Schedule Elapsed Clean Prop Stage Slurry Proppant Stg Time Fluid Volume Conc. Prop. Rate Type # min:sec Type - --- (kgal) ------ (ppg) ------- (klbs) ------ (bpm) ------ ------------ --- ------- W'bore Fluid -------- 20 KCL 0.8 1 23:48 LINEAR 30 GW 5.0 0.00 0.0 5.00 2 7370:15 LINEAR 30 GW 1258.2 5.00 6291.2 5.00 100-Mesh 3 8810:15 SHUT-IN 0.0 0.00 0.0 0.00 4 ll:days LINEAR 30 GW 1258.2 5.00 6291.2 5.00 100-Mesh 5 12:days SHUT-IN 0.0 0.00 0.0 0.00 6 17:days LINEAR 30 GW 1258.2 5.00 6291.2 5.00 100-Mesh 7 18:days SHUT-IN 0.0 0.00 0.0 0.00 8 23:days LINEAR 30 GW 1258.2 5.00 6291.2 5.00 100-Mesh 9 24:days SHUT-IN 0.0 0.00 0.0 0.00 10 29:days LINEAR 30 GW 1258.2 5.00 6291.2 5.00 100-Mesh 11 30:days SHUT-IN 0.0 0.00 0.0 0.00 12 35:days LINEAR 30 GW 1258..2 5.00 6291.2 5.00 100-Mesh Scheduled clean vol (kgal) 7554 .47 Scheduled sand tot al (klbs) 37747.35 Scheduled slurry vol (kgal) 9261 .53 Disposal Injection Application 9 - 27 n.-+„hor F ~nnn . D~,YO ~ ~ ti-SR r,m FracproPT10.0 Hydraulic Fracture Analysis WellName: Flaxman Island Disposal Well Location: North Slope, Alaska . Format'n: Job Date: 8-30-00 Filename: Flaxman Island4 Fluid Parameters All Fluid info is at a reservoir temperature of 45.0 (°F) All Viscosities at Shear Rate of 511 (1/sec) Fluid Name 20 KCL LINEAR 30 GW Init. Rheology Viscosity 0.958 19.80 n` 1.000 0.525 K' 2.000e-05 0.008 Rheology @ 4.0 hours Viscosity 0.958 11.21 n' 1.000 0.629 K' 2.000e-05 0..002 Gel Density 1.01 1.000 Spurt Loss 0.0 2.00 Wall Building 0.0 0.003 Flowrate #1 10.00 10.00 Fric Press #1 96.64 72.00 Flowrate #2 20.00 20.00 Fric Press #2 335.1 185.0 Flowrate #3 40.00 40.00 Fric Press #3 1161.7 398.9 WB Fric Mult 1.000 1.000 Wellbore Friction pressures shown are the interpolated values multiplied by the Wellbore Friction Multiplier. Viscosity is displayed in (cp) K' is displayed in (lbf•s^n/ft2) Gel Density is displayed as (sg) Spurt Loss is displayed in (gal/ft2) Wall Building is displayed in (ft/min'-~) Friction pressure is displayed in (psi/1000 ft) Friction is displayed for longest wellbore segment Disposal Injection Application 9 - 28 ' October 6, 2000 ~ Page 4 ~ 6:58 pm ' FracproPT10.0 Hydraulic Fracture Analysis WellName: Flaxman Island Disposal Well Location: North Slope, Alaska Format'n: Job Date: 8-30-00 ' Filename: Flaxman Island4 Leakoff Parameters Reservoir type User Spec Filtrate to reservoir fluid perm. ratio, Kp/Kl 1 Reservoir pore pressure (psi) 800 Initial fracturing pressure (psi) 1100 ' Reservoir fluid compressibility (1/psi) 5.OOe-004 Cold filtrate viscosity (cp) 1.00 Hot filtrate viscosity (cp) 1.00 Cold reservoir viscosity (cp) 1.00 Hot reservoir viscosity (cp) 1.00 Porosity 0.32 Gas Leakoff Percentage 100.00 ' Reservoir Parameters Reservoir temperature (°F) 45.00 Depth to center of Perfs (ft) 2225 _' Perforated interval (ft) 150 Initial frac depth (ft) 2225 Layer Parameters Lay Top of Top of Young's Poisson's Top of Total PoreFluid # zone Stress zone modulus ratio zone Ct perm. ' (ft) (psi) (ft) (psi) --------- (ft) --- (ft/mine-~) (md) --- ------- ------- ------- ------- --------- -------- 1 0.0 1360 0.0 8.Oe+06 0.25 0.0 4.124e-05 1.00e-04 2 1700.0 1408 1700.0 8.Oe+06 0.25 1700.0 4.124e-05 1.00e-04 3 1820.0 1501 1820.0 1.0e+06 0.35 1820.0 1.298e-04 1.OOe-03 4 1840.0 1222 1840.0 2.3e+06 0.20 1840.0 2.558e-04 4.OOe-03 5 1920.-0 1552 1920.0 8.Oe+06 0.25 1920.0 4.124e-05 1.OOe-04 6 1960.0 1572 1960.0 8.Oe+06 0.25 1960.0 4.124e-05 1.OOe-04 7 1970.0 1412 1970.0 2.3e+06 0.20 1970.0 1.742e-03 1.OOe+03 8 2375.0 2030 2375.0 8.Oe+06 0.25 2375.0 4.124e-05 1.OOe-04 9 2700.0 2160 2700.0 8.Oe+06 0.25 2700.0 4.124e-05 1.00e-04 Disposal Injection Application 9 - 29 (lr~tnhar ti ~nnn ~ D~no ~ • FracproPT10.0 Hydraulic Fracture Analysis WellName: Flaxman Island Disposal Well Location: North Slope, Alaska Format'n: Job Date: 8-30-00 Filename: Flaxman Island4 Layer Top of # zone (ft) 1 0.0 2 1700.0 3 1820.0 4 1840.0 5 1920.0 6 1960.0 7 1970.0 8 2375.0 9 2700.0 Lithology Shale Shale Coal Sandstone Shale Shale Sandstone Shale Shale Lithology Parameters Top of Fracture Top of Tip Effects zone Toughness zone Factor (ft) (psi • in%~) (ft) 0.0 2000 0.0 1.00 1700.0 2000 1700.0 1.00 1820.0 1000 1820.0 1.00 1840.0 800 1840.0 1.00 1920.0 2000 1920.0 1.00 1960.0 2000 1960.0 1.00 1970.0 800 1970.0 1.00 2375.0 2000 2375.0 1.00 2700.0 2000 2700.0 1.00 6:58 pm Disposal Injection Application 9 - 30 October 6, 2000 ~ Page 6 ~ 6:58 pm FracproPT10.0 Hydraulic Fracture Analysis WellName: Flaxman Island Disposal Well Location: North Slope, Alaska Format'n: Job Date: 8-30-00 Filename: Flaxman Island4 Wellbore Configuration Segment Segment Tubing Tubing Casing Length Type ID OD ID (ft) (in) (in) (in) ------ ----=-- ------ ------ ------ 2100 Tubing 2.992 0.000 0.000 50 Casing 0.000 0.000 4.408 Tubular Goods are defined to the TOP of the deepest set of perforations that are being modeled. Top of Perfs - TVD (ft) 2150 Bot of Perfs - TVD (ft) 2300 Perf Diameter (in) 0.400 # of Perfs 900 Near Wellbore Friction Parameters & Perf Multiplier Time Flow Rate #1 Flow Rate #2 Delta P Perf Coeff min:sec (bpm) (bpm) (psi) Multiplier ------- ------------ ------------ -------- ---------- 0:00 0.00 0.00 0.00 1.00 Disposal Injection Application 9 - 31 n,-r„r,o,- ti ~nnn ~ Dino ~ . ti • ssz nm FracproPT10.0 Hydraulic Fracture Analysis WellName: Flaxman Island Disposal Well Location: North Slope, Alaska Format'n: Job Date: 8-30-00 Filename: Flaxman Island4 Model Parameters Fracture Growth Parameters (Conventional 3D Model) Crack Opening Coefficient 0.7000000 Rock Deformation Coefficient 0.4000000 Channel Flow Coefficient 1.0000000 Fluid Radial Weighting Exponent set to default of Rock Deformation Coeff / 10. Proppant Model Parameters Minimum Proppant Concentration (lb/ft^2) 0.20 Minimum Proppant Diameter (in) 0.008 Volume Fraction of Proppant in Slurry 0.60 Proppant Drag Effect Exponent 8.0 Proppant Radial Weighting Exponent 0.2500 Proppant Convection Coefficient 10.00 Proppant Settling Coefficient 1.00 Quadratic Backfill Model ON Quadratic Backfill Coefficient 0.50 Stop Model on Screenout ON Initial Leakoff Area Coeff 1.00 Closure Leakoff Area Coeff 0.03 Minimum Fracture Height OFF Near Wellbore Friction Exponent 0.50 Disposal Injection Application 9 - 32 (1(-t-nhAr ti ~nnn ~ Parrc R . -(-i•~iR nm FracproPT10.0 Hydraulic Fracture Analysis WellName: Flaxman Island Disposal Well Location: North S lope, Alaska Format'n: Job Date: 8-30-00 Filename: Flaxman Island4 P roppant Data Proppant Name TemprdLC-163 100-Mesh ------------- Cost ($/lb) ------------ 0.0 ------------ 0.070 Bulk Dens (lbm/ft 3) 93.70 115.8 Packed Porosity 0.415 0.300 Specific Gravity (sg) 2.57 2.65 Turbulence Coeff a 0.930 1.39 Turbulence Coeff b 0.930 1.39 Diameter (in) 0.031 0.006 Perm @ 0 psi (D) 530.0 40.00 Perm @ 2000 psi (D) 530.0 40.00 Perm @ 4000 psi (D) 360.0 40.00 Perm @ 6000 psi (D) 174.0 40.00 Perm @ 8000 psi (D) 69.00 40.00 Perm @ 10000 psi (D) 32.00 40.00 Perm @ 12000 psi (D) 32.00 40.00 Perm @ 14000 psi (D) 32.00 40.00 Perm @ 16000 psi (D) 32.00 40.00 Perm @ 18000 psi (D) 32.00 40.00 Disposal Injection Application 9 - 33 0 1700 .~ ~' ~ 1800 ~a 0 1900 2000 a 2100 a~ 0 2200 2300 2400 2soo 2600 ~ 2700 Stress Profile i ..,,.._ II I `1 Fracture Dimensions I I I I ----~---- I I I I I ---r-- I I I I I I --~----- I I I I ----~--- I I I I ---I--- I I I I ---~----- I I I I I I ---- {--- I I I I --~-- I I I I I ---1----- I I I I ----L-- I I I ---L-- I I I ----I----- I I I I -----~----- t I I ---fi-- I I I I ----I----- I I I ----~--- I I I --~-- I I I ---I---- I I I I ---- - T- I I I I -- 7 I I I I ---- I I I I I I I I I I I I I I I I I I I I I I I I I I -----~------~------I----- I I I I I I I I I -----I-------~----~------ I I I I I I I I 1 -----11----- 1 I I I ~---- I - -- 1 - - I ---- I I - -~- - I ~I I rt-- - - - -~----- I I I I I -~------I------~----- I I I I I I I I I I I I ---- I I I I I I I I I -----I------I------{ -- I I I I I I I I I 1000 1500 2000 2500 3000 500 375 250 125 0 125 250 375 500 Closure Stress (psi) Propped Length (ft) Hydraulic Length (ft) ~ ~ ~ ~ ~ ~ Fracture Profile 10.0 Formation Water Analysis ' 10.0 Formation Water Anal sis 20 AAC 25.252 c 10 Y ~ ~ )~ )~ Class II waste disposal by injection is permitted regularly in aquifers with a Total Dissolved Solids (TDS) concentration greater than 10,000 PPM. TDS concentrations in ' the proposed injection zones, located between depths of 2,150 feet and 2,300 feet in the Alaska State A-1 well, are conservatively estimated as being between 20,000 and 30,000 PPM based on log analyses. The calculation for this analysis is presented m the attached ' Schlumberger report. Disposal Injection Application 10 - 1 ~~Il~e!d Srn-irr'.~ ' 39x0 Aran: C~oulevani s~,~le 3oc ' Anchorage. Alaska 9950:1 77t 1 19071213.1700 Fax1907)SG1-H3'7 ' August 28, 2000 Mr. Jesse Mohrbacher ' Fairweather E&P Services 715 1. Street Anchorage, AK 99501-3335 ' Oear Jesse: C~ Schlumherger ' The following is a Spontaneous Potential (SP) interpretation report as requested by you. The SP log for Exxon Company, USA well #1 Alaska State "A" was evaluated to identify the salinity of the ' formation water at depths from 2150 ft to 2375 ft. The interpreted results are based on information obtained #rom the Dual Induction -Laterolog run 5 field print (date 9-5-75) provided by the client. Well Information: Company: Exxon Company, USA Well: #1 Alaska State 'A' Field: Wildcat County: North Slope State: Alaska Location: 2982 ft FEL & 1549 ft FSL, Section 27, Township, 10N Range 24E API Number: 089-200003-00 Field Print: Dual Induction -Laterolog Depth of Interest 2150 ft to 2375 ft Interpretation Procedure: Identify SP deflection from shale baseline to clean, water filled sand Determine temperature at depth Determine Rmf at temperature Calculate Rmfeq = 0.85 x Rmf Obtain Rmfeq/Rweq from chart SP 1 Obtain Rweq from chart SP 1 Convert Rweq to Rw using chart SP 2 Obtain NaCI concentration from chart GEN 9 Attached are charts SP 1, SP 2, and GEN 9. Disposal Injection Application 10 - 2 r: Calculations: Inputs SSP = -35MV Rmf =1.352m @ 58°F Temp Reservoir = 58°F Calculations Rmfeq = 0.85x1.3 =1. l OSS2 - m Rmfeq = 3 1 Rweq Rweq = 0.3352 • m Rw = O.3OS2 • m NaCI = 25,000 ppm • The above calculations assume a temperature gradient of 1.8 °F/100 ft with a temperature of 79 °F at 3379 ft based on the Dual Induction - Laterolog heading. In addition, the calculated salinity assumes the dissolved solids in the formation water are NaCI. If you have any questions regarding the above calculations, please feel free to call me at (907) 273-1771. Sincerely, ~rzir~~(~./~ ~ Douglas Hupp, P.E. Senior Log Analyst Reservoir Management - GeoQuest Disposal Injection Application 10 - 3 Gamma Ray and 5poeous Potential _ Rweq Determination fr• ■ Clean formations This chart and nomograph calculate the equivalent forma- Ecumple: SSP = 100 mV at 250°F tion water resistivity, RWzq, from the static spontaneous Rmf = 0.70 ohm-m at 100°F potential, EssP, measurement in clean formations. or 0.33 ohm-m at 250°F Enter the nomograph with EssP in mV, turning through Therefore, Rmi 0.85 x 0.33 the reservoir temperature in *F or °C to define the = 0.28 ohm-m at 250'F Rmf./RWzq ratio. From this value, pass through the Rmf q RW�q = 0.025 ohm-m at 250°F value to define RWaq. For predominantly NaCI muds, determine Rmfeq as EssP =—Kc log(Rmf,:q/RW,q) follows: Kc = 61 + 0.133 T-F a. If Rmf at 75°F (24°C) is greater than 0.1 ohm-m, Kc = 65 + 0.24 T-c correct Rmf to formation temperature using Chart Gen-9, and use RmfN = 0.85 Rmf. b. If Rmf at 75°F (24°C) is less than 0.1 ohm-m, use Chart SP-2 to derive a value of RmfN at formation temperature. 1 •. 1 2 Cc3 E 2 4 0 C 5 3 6 m 8 10 20 30 40 50 -�■aaw�'a ate. C®�.��. �W �. Formation .6 .8 1 2 4 6 8 10 +50 0 -50 -100 -150 -200 Essa, static spontaneous potential (mV) < Schlurrberger Disposal Injection Application 20 40 M Rvmq (ohm-m) - 0.001 0.005 R,n,eq 0.01 (ohm-m) 0.01 0.02 0.02 0.04 0.06 0.1 0.05 0.2 0.4 0.6 0.1 1 2 0.2 4 6 10 0.5 20 40 60 1.0 100 2.0 10-4 I Rw versus RWeq and Formation Temperature 0.001 0.002 ' 0.005 ' 0.01 0.02 I' E E L ' 0.05 E Li O P ' LL 0.1 ' 0.2 ' 0.5 ' 1.0 2.0 1101 SP-2 (English) 500°F 300°F 4400°F 200°F _100°F 75°F Saturation - -- --- -- -- -— �30n, \ 00 F� F� 0.005 0.01 0.02 0.03 0.05 0.1 0.2 0.3 0.5 1-0 2 3 4 5 ' RM, or Rmt (ohm-m) t scNwfbew ' These charts convert equivalent water resistivity, RWeq, from Erample: Rw.eq = 0.025 ohm-m at 120°C Chart SP-1 to actual water resistivity, R_ They may also be used From chart, R. = 0.031 ohm-m at 120°C to convert R,f to Rmfeq in saline muds. Use the solid lines for predominantly NaC1 waters. The Special procedures for muds containing Ca or Mg in solution dashed lines are approximate for "average" fresh formation are discussed in Reference 3. Lime -base muds usually have a waters (where effects of salts other than NaCI become signifi- negligible amount of Ca in solution; they may be treated as ' cant). The dashed portions may also be used for gyp -base mud regular mud types. filtrates. ' Disposal Injection Application 2s 10-5 istivit of NaCI Solutions s Re v ° - T +21.5 / +21.5 °C Conversion approximated by R2 = R, ((T, + 6.77)/(TZ + 6.77)] For RZ - R, [( , ) (TZ )] ' 10 8 6 5 4 3 2 ' 1 0.8 ' ~ 0.6 E 0.5 L O 0.4 ~ 0 0 0.3 i ° ~, -~ 2 0 _ . N il N l ' Q 0.1 0.08 0.06 ' 0.05 0.04 0.03 i 0.02 i 0.0, n n 2~ 3~ 4~ S~ )~~ 8~ 1~ ~~ ~~~ ?~ 3~ 413•,_ s~~ ~~ 1M_~ _KJ ~ ~0 ~? ~ ~~ ~4 l~M_ \ 20~~ 3 O~ \ 4p -W o~~ ~0 g0~~ 7~ ~~~ >a~ ~~~ ~~~o 2~~ °F 50 75 100 125 150 200 250 ;iuU ;i5u v00 ' °C 10 20 30 40 50 60 70 80 90 100 120 140 160 180 200 l 1 I I I 1 1 I 1 I 1 I 1 1 1 1 I 1 Temperature (°F or °C) t Schhm~r9er Disposal Injection Application E Gen-9 n m rn c .~ 10 15 20 25 30 40 50 m c .~ rn 100 0 n Aso n c 0 200 - 250 U 300 C O U 400 ~ 500 Z 1000 1500 2000 2soo 3000 4000 5000 ,O,ooo 5.000 20.000 10-6 11.0 Fresh Water Aquifer Exemption 11.0 Freshwater Aquifer Exemption [20 AAC 25.252(c)(11)] Freshwater is not present in wells in the area. Therefore, issuance of a freshwater aquifer exemption in accordance with 20AAC 25.440, is not necessary. Disposal Injection Application 11 - 1 __ -__ _ _. 12.0 Mechanical Condition of Wells ~ ~ 12.0 Mechanical Condition of Wells [20 AAC 25.252(c)(12)] The-only well located within one quarter mile of the proposed Alaska State A-2 disposal well is the Alaska State A-1 well. This well is located 300 feet due east of the A-2 well. The A-1 well was drilled as a straight hole in 1975 and suspended that same year. The status of the well was changed to plugged and abandoned after additional surface well work in 1986. The A-1 well was re-abandoned in 1998 due to continued erosion of Flaxman Island. The A-1 well has two (2) casing strings across the proposed disposal zone(s). These casings include the 9-5/8 and 13-3/8 inch strings, which are set at 11,076 feet and 3,376 feet, respectively. A string of 20 inch casing is also set at 824 feet. The 13-3/8 inch x 9- 5/8 inch annulus has previously been cemented from 1,996 feet to 3,376 feet through a F.O.. collar at 1,996 feet. Both the 13-3/8 inch and 20 inch casing were cemented to surface during drilling with full returns and cement was tagged inside the 13-3/8 inch casing prior to drilling out of the casing shoe. The 13-3/8 x 9-5/8 inch annulus and the 9- 5/8 inch casing were also freeze protected through the permafrost zone at the time of suspension with Arctic pack in the annulus and diesel in the casing. During re- abandonment operations in 1998, the diesel in the 9-5/8 inch casing was displaced by i 5 ppg drilling mud prior to cementing of the 9-5/8 inch casing and the 13-3/8 x 9-5/8 inch annulus from 231 feet to surface. All casing strings were then cutoff 3 5 feet below grade. Upon inspection after cutoff, all annuli including the 20 inch x structural casing annulus, the 13-3/8 x 9-5/8 inch annulus and the 9-5/8 inch casing had good cement plugs at the surface. Based on the above cementing records and field documentation, the A-1 well has good mechanical integrity and is isolated across the proposed disposal zone(s). Disposal Injection Application 12 - 1 13.0 Mechanical Integrity of Disposal Well • • 13.0 .Mechanical Integrity of Disposal Well [20 AAC 25.252(d)] The disposal well will undergo a series of mechanical integrity tests and evaluations during construction and operation. Subsequent to cementing of the 5-1/2 inch casing to surface, the casing will be cleaned out and pressure tested to 1,500 psi for 30 minutes. The cement job will also be evaluated by USIT cement evaluation logging tool or equivalent. After running the completion packer and tubing, the casing/tubing annulus will also be pressure tested to 1,500 psi for 30 minutes. Mechanical integrity will be monitored daily during injection operations by recording the pressure on the tubing/casing annulus. At the conclusion of injection operations, the Alaska State A-2 well will be plugged and abandoned in accordance with 20 AAC Chapter 25, Article 2. Disposal Injection Application 13 - 1