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Home My WebLink AboutDIO 026s • Image Project Order File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspe~cti~on~o~f, the file. _ ~-!,~-~ Order File Identifier organizing (done) RE CAN Color Items: ^ Greyscale Items: ^ Poor Quality Originals: Two-sided IIIII'IIIIIIIIIIIII DIGITAL DATA ^ Diskettes, No. ^ Other, No/Type: ae,~a~~ee,,.~ iiuuuiuiiuiui OVERSIZED (Scannable) ^ M s: Other Items Scannable by a Large Scanner ~~~~ j OVERSIZED (Non-Scannable) ^ Other: ^ Logs of various kinds: NOTES: ^ Other:: BY: Maria Date: ~ /s/ Project Proofing III II'I() IIIII II III BY: Maria Date: (~ I /s/ Scanning Preparation x 30 = + =TOTAL PAGES ~~ (Count does not include cover sheet) BY: Maria __ Date: ~/~ ~ ~D /s/ ~/~ Production Scanning Stage 1 Page Count from Scanned File: s~~,~,~(Count does include covers et) Page Count Matches Number in Scanning Pre aration: (/ YES NO BY: Maria Date: ~/a, l ~ D /s/ Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: ~s/ Scanning is complete at this point unless rescanning is required. III IIIII IIIII IIIII ReScanned III IIIIIIIIIII IIIII BY: Maria Date: ~s~ Comments about this file: Quality Checked III IIIII III IIII III 10/6/2005 Orders File Cover Page.doc 0 n INDEX DISPOSAL INJECTION ORDER NO. 26 Kustatan Field Kustatan Undefined Waste Disposal Pool Middle Tyonek Formation 1. February 28, 2003 Forest Oil's application for DIO Kustatan Field # 1 2. March 6, 2003 Notice of Hearing, Affidavit of Publication, mailings 3. March 5, 2003 Letter to DNR from Forest regarding converting well to injection/disposal well 4. March 5, 2003 Letter to DNR from Forest requesting Misc. Land Use Permit Application, well to injection/disposal well 5. March 4, 2003 Email from Bob Crandall regarding evaluation formation and recommendation 6. March 7, 2003 Letter from Jay Garner to Rob Stinson regarding FracPro PT 7. March 7, 2003 Email from Tom Maunder regarding evaluation formation and recommendation 8. April 8, 2003 Copy of MIT's and step rate test submitted by operator 9. April 14, 2003 Submittal of Misc. Land Use Permit MLUP/CI 03-03 by Forest Oil 10. April 14, 2003 Operator's submittal of temperature profile run 11. April 14, 2003 Memo from Jim Regg to file regarding Forest Oil Baseline Temperature Survey 12. August 15, 2003 Request for Administrative Approval DID 26.01 13. September 26, 2003 Email 14. September 30, 2003 Request for Administrative Approval DID 26.02 15. July 1, 2004 Annual Report 2004 16. September 27, 2004 Proposals to Amend Underground Injection Orders to Incorporate Consistent Language Addressing the Mechanical Integrity of Wells 17.October 5, 2004 Backup paperwork for DIO 26.003 18. February 6, 2014 Email from DNR to Cook Inlet Energy regarding Cook Inlet Energy's application for a private non-exclusive easement in association with the proposed Class II Disposal Well at Kustatan Production Facility 19. March 5, 2014 Email from. DNR to AOGCC and DEC regarding the attached letter regarding Division of Mining, Land & Water's response to CIE's application for an easement to authorize a subsurface wellbore for use as a Class II Disposal Well under separate authorization from the AOGCC INDEX DISPOSAL INJECTION ORDER NO. 26 Kustatan Field Kustatan Undefined Waste Disposal Pool Middle Tyonek Formation STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 71h Avenue, Suite 100 Anchorage, Alaska 99501 Re: THE REVOCATION OF COOK ) Disposal Injection Order No. 26 INLET ENERGY Disposal Injection ) Revocation Order No. 26 for well Kustatan Field ) No. 1 (PTD 2001530) ) Kustatan Field Kustatan Undefined Waste Disposal Pool Middle Tyonek Formation February 3, 2014 The current well status for the Kustatan Field No. 1 well is as a gas production well. The last recorded gas production was in November 2012. The last recorded disposal activity was in November 2004. The last passing Mechanical Integrity Test of the Inner Annulus (MITIA) was performed on February 17, 2004. Rule 3 of DIO 26 states "Mechanical integrity of the KF 1 disposal well must be demonstrated at least once every two (2) years." As a result of the above, and in accordance with Disposal Injection Order No. 26 and 20 AAC 25.252 (a) Disposal Injection Order No. 26 is hereby REVOKED. No additional disposal is authorized in the well. DONE at Anchorage, Alaska and dated February 3, 2014. _d P 11-2 Cathy Y. Foerster Chair, Commissioner TION AND APPEAL As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10-days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. Carlisle, Samantha J (DOA) From: Carlisle, Samantha J (DOA) Sent: Monday, February 03, 2014 3:19 PM To: '(michaelj.nelson@conocophillips.com)'; 'AKDCWellIntegrityCoordinator'; 'Alexander Bridge'; 'Andrew VanderJack'; 'Anna Raff'; 'Barbara F Fullmer'; 'bbritch'; 'Becky Bohrer'; 'Bill Barron'; 'Bill Penrose'; 'Bill Walker'; 'Bob Shavelson'; 'Brian Havelock'; Burdick, John D (DNR); 'Cliff Posey'; 'Colleen Miller'; 'Crandall, Krissell'; 'D Lawrence'; 'Daryl J. Kleppin'; 'Dave Harbour'; 'Dave Matthews'; 'David Boelens'; 'David Duffy'; 'David Goade'; 'David House'; 'David Scott'; 'David Steingreaber'; 'Davide Simeone'; 'ddonkel@cfl.rr.com'; 'Donna Ambruz'; Dowdy, Alicia G (DNR); 'Dudley Platt'; 'Elowe, Kristin'; 'Evans, John R (LDZX)'; 'Francis S. Sommer'; 'Frank Molli'; 'Gary Schultz (gary.schultz@alaska.gov)'; 'ghammons'; 'Gordon Pospisil'; 'Gorney, David L.'; 'Greg Duggin'; 'Gregg Nady'; 'gspfoff'; 'Jacki Rose'; 'Jdarlington oarlington@gmail.com)'; 'Jeanne McPherren'; 'Jeffery B. Jones (Jeff jones@alaska.gov)'; 'Jerry McCutcheon'; 'Jim White'; 'Jim Winegarner'; 'Joe Lastufka'; 'Joe Nicks'; 'John Easton'; 'John Garing'; 'Jon Goltz'; Jones, Jeffrey L (GOV); 'Juanita Lovett'; 'Judy Stanek'; 'Julie Houle'; 'Julie Little'; 'Karl Moriarty'; 'Keith Wiles'; 'Kelly Sperback'; 'Klippmann'; 'Laura Silliphant (laura.gregersen@alaska.gov)'; 'Leslie Smith'; 'Lisa Parker'; 'Louisiana Cutler'; 'Luke Keller'; 'Marc Kovak'; 'Mark Dalton'; 'Mark Hanley (mark.hanley@anadarko.com)'; 'Mark P. Worcester'; 'Marquerite kremer (meg.kremer@alaska.gov)'; 'Michael Jacobs'; 'Mike Bill'; 'Mike Mason'; 'Mike) Schultz'; 'Mindy Lewis'; 'M1 Loveland'; 'mjnelson'; 'mkm7200'; 'nelson'; 'Nick W. Glover'; 'Nikki Martin'; 'NSK Problem Well Supv'; 'Patty Alfaro'; 'Paul Decker (paul.decker@alaska.gov)'; 'Paul Mazzolini'; Pike, Kevin W (DNR); 'Randall Kanady'; 'Randy L. Skillern'; 'Randy Redmond'; 'Rena Del bridge'; 'Renan Yanish'; 'Robert Brelsford'; 'Ryan Tunseth'; 'Sandra Haggard'; 'Sara Leverette'; 'Scott Griffith'; 'Shannon Donnelly'; 'Sharmaine Copeland'; 'Sharon Yarawsky'; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); 'Smart Energy Universe'; Smith, Kyle S (DNR); 'Sondra Stewman'; 'Stephanie Klemmer'; 'Steve Kiorpes'; 'Steve Moothart (steve.moothart@alaska.gov)'; 'Steven R. Rossberg'; 'Suzanne Gibson'; 'Tamera Sheffield'; 'Tanis Ramos'; 'Ted Kramer'; 'Temple Davidson'; 'Terence Dalton'; 'Teresa Imm'; 'Thor Cutler'; 'Tim Mayers'; 'Tina Grovier'; 'Todd Durkee'; 'Tony Hopfinger'; 'trmjrl'; 'Tyler Senden'; 'Vicki Irwin'; 'Vinnie Catalano'; 'Walter Featherly'; 'Yereth Rosen'; 'Aaron Gluzman'; 'Aaron Sorrell'; 'Ajibola Adeyeye'; 'Alan Dennis'; 'Andrew Cater'; 'Anne Hillman'; 'Bruce Williams'; Bruno, Jeff J (DNR); 'Casey Sullivan'; 'David Lenig'; 'David Tetta'; 'Donald Perrin'; 'Donna Vukich'; 'Eric Lidji'; 'Erik Opstad'; 'Gary Orr'; 'Graham Smith'; 'Greg Mattson'; 'Hans Schlegel'; Heusser, Heather A (DNR); 'Holly Pearen'; 'James Rodgers'; 'Jason Bergerson'; 'Jennifer Starck'; 'Jill McLeod'; 'Jim Magill'; 'Joe Longo'; 'Josh Kindred'; 'Kenneth Luckey'; King, Kathleen J (DNR); 'Laney Vazquez'; 'Lois Epstein'; Longan, Sara W (DNR); 'Marc Kuck'; 'Marcia Hobson'; 'Marie Steele'; 'Matt Armstrong'; 'Matt Gill'; 'Mike Franger'; 'Morgan, Kirk A (DNR)'; 'Pat Galvin'; 'Patricia Bettis'; 'Peter Contreras'; 'Pollet, Jolie'; 'Richard Garrard'; 'Ryan Daniel'; 'Sandra Lemke'; 'Scott Pexton'; 'Shaun Peterson'; 'Susan Pollard'; 'Talib Syed'; 'Terence Dalton'; Todd, Richard J (LAW); Tostevin, Breck C (LAW); 'Wayne Wooster'; 'Wendy Wollf'; 'William Hutto'; 'William Van Dyke'; Ballantine, Tab A (LAW); Bender, Makana K (DOA); Bettis, Patricia K (DOA); 'Brooks, Phoebe L (DOA) (phoebe.brooks@alaska.gov)'; Carlisle, Samantha J (DOA); 'Colombie, Jody J (DOA) oody.colombie@alaska.gov)'; 'Crisp, John H (DOA) oohn.crisp@alaska.gov)'; 'Davies, Stephen F (DOA) (steve.davies@alaska.gov)'; 'Eaton, Loraine E (DOA)'; Ferguson, Victoria L (DOA); 'Foerster, Catherine P (DOA) (cathy.foerster@alaska.gov)'; Frystacky, Michal (DOA); 'Grimaldi, Louis R (DOA) (lou.grimaldi@alaska.gov)'; Hunt, Jennifer L (DOA); 'Johnson, Elaine M (DOA) (elaine Johnson@alaska.gov)'; Mumm, Joseph (DOA sponsored); 'Noble, Robert C (DOA) (bob.noble@alaska.gov)'; 'Palad ijczu k, Tracie L (DOA) (tracie.paladijczuk@alaska.gov)'; To: 'Pa ual, Maria (DOA) (maria.pasqual@alaska.g0, 'Regg, James B (DOA) Oim.regg@alaska.gov)'; 'Roby, David S (DOA) (dave.roby@alaska.gov)'; 'Scheve, Charles M (DOA) (chuck.scheve@alaska.gov)'; 'Schwartz, Guy L (DOA) (guy.schwartz@alaska.gov)'; 'Seamount, Dan T (DOA) (dan.seamount@alaska.gov)'; Singh, Angela K (DOA); Turkington, Jeff A (DOA); Wallace, Chris D (DOA) Subject: DIO 26 Revocation (Kustatan Field) Attachments: dio26 revocation Samantha CarCis(e `executive Secretary 11 .ACaska Orland-(jas Coa2servation Commissioal, 333'West 71,1 Avenue, Suite loo .Anchorage, -AUK 99501 (907) 793-1223 (phone) (907) 276-7542 (fax) 0 6 Ln r delivery information visit our website at www.usps.com, , m ANt L � Y r-9 1,0.966 Ir Postage $ $0.49 0� m Certified Fee Of Postm ❑ � u' Return Receipt Fee 3 Here \ i p (Endorsement Required) $2. 70 ® U Restricted Delivery Fee (Endorsement Required) =$0.00 y�0 � 0 SdSn rt.l Total Postage $6.4 9 02/06/2014 ru Sent To lT' Sireeei, Apt: No: David Hall, CEO O or PO Box No. 171- Cook inlet Energy City State, ZiR 601 W. 5th Ave., Ste. 310 Anchorage, AK 99501 David Hall, CEO Cook Inlet Energy 601 W. 51h Ave., Ste. 310 Anchorage, AK 99501 ■ Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. ■ Print your name and address on the reverse so that we can return the card to you. ■ Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: A. Signature 11 Agent X — ❑ Addressee B. Received by (Printed Name) C. Date of Delivery D. Is delivery address different from item 1? ❑ Yes If YES, enter delivery address below: ❑ No 3. Service Type David Hall, CEO d Certified Mail ❑ Express Mail Cook Inlet Energy ❑ Registered ❑ Return Receipt for Merchandise 601 W. 5Lh Ave., Ste. 310 ❑ Insured Mail ❑ C.O.D. Anchorage, AK 99501 4. Restricted Delivery? (Extra Fee) ❑ Yes 2. Article Number (Transfer from service label) 7009 2250 0004 3 911 3453 PS Form 3811, February 2004 Domestic Return Receipt 102595-02-M-1540 Y'k-ls,: � lQ t 2" \ `C r� 0 Cook Inlet Energy, LLC JR Wilcox, President 601 W. St" Ave., Ste. 310 Anchorage, AK 99501 �'�& �A'C� David McCaleb Penny Vadla IHS Energy Group 399 W. Riverview Ave. GEPS Soldotna, AK 99669-7714 5333 Westheimer, Ste. 100 Houston, TX 77056 Jerry Hodgden Richard Neahring Hodgden Oil Company NRG Associates 408 m President Golden, CO80401-2433 SPost Office Box 1655 Golde Colorado Springs, CO 80901 Bernie Karl CIRI K&K Recycling Inc. Land Department Post Office Box 58055 Post Office Box 93330 Fairbanks, AK 99711 Anchorage, AK 99503 Richard Wagner Gordon Severson Post Office Box 60868 3201 Westmar Cir. Fairbanks, AK 99706 Anchorage, AK 99508-4336 Darwin Waldsmith James Gibbs Post Office Box 39309 Post Office Box 1597 Ninilchik, AK 99639 Soldotna, AK 99669 George Vaught, Jr. Post Office Box 13557 Denver, CO 80201-3557 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 North Slope Borough Planning Department Post Office Box 69 Barrow, AK 99723 Jack Hakkila Post Office Box 190083 Anchorage, AK 99519 va� `Ec c� ~ ~ STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7`h Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF Forest ) Oil Corporation for disposal of ) Class II oil field wastes by ) underground injection in the ) middle Tyonek Formation in the ) Kustatan Field No. l Well, Section ) 1, T7N, R14W, S.M. ) Disposal Injection Order No. 26 Kustatan Field Kustatan Field No. l Well Apri110, 2003 IT APPEARING THAT: By correspondence to the Alaska Oil and Gas Conservation Commission ("AOGCC") dated February 27, 2003 and received on February 28, 2003, Forest Oil Corporation ("Forest") requested authorization to allow the underground injection of non- hazardous Class II oil field waste fluids into the middle Tyonek Formation within the Kustatan Field No. 1 ("KF 1 ") well bore. The KF 1 well is located in the Kustatan Field, Seward Meridian, Alaska. 2. The Commission published notice of opportunity for public hearing was published in the Anchorage Daily News on March 6, 2003 in accordance with 20 AAC 25.540. 3. The Commission did not receive any protests to the application, comments, or requests for a public hearing. 4. Forest submitted additional information on March 5, March 10, and Apri18, 2003. FINDINGS: 1. Location of adjacent wells (20 AAC 25.252~c)(1) KF 1 is a vertical well that is located approximately 3443' from the north line and 1468' from the west line of Section 4, Township 7 North, Range 14 West, Seward Meridian. There are no oil and gas wells within. % mile of the KF 1 well. There are two domestic source water wells drilled and operated by Forest on the gravel pad with the KF 1 well, each shallower than 500'. Disposal Injection Order ~ ~ Page 2 of 6 Kustatan Field No. 1 Well April 10, 2003 2. Notification of Operators/Surface Owners (20 AAC 25 252 (c)(2) and 20 AAC 25.252 (c)(3)) Forest is the only operator within % mile radius of the proposed disposal operation. There are five surface owners within a '/ mile radius of the KF 1 well. Forest provided supporting evidence that a copy of their application for disposal injection in the KF 1 well was sent by certified mail to each of the five surface owners on February 28, 2003. 3. Geologic information on disposal and confini~ zones/ Potential impact on an adiacent producin well. (20 AAC 25.252 (c Forest proposes to conduct disposal operations in the KF 1 well in the middle Tyonek Formation ("Tyonek") at depths below 6500' measured depth ("MD") and true vertical depth ("TVD"). Perforations in the KF 1 well are currently planned between 6750' and 6800' MD and TVD. The Tyonek Formation is a Tertiary-aged fluvial deposit consisting of fine to medium grained sandstones with interbedded siltstones, claystones, and coals, which according to Forest, tend to be laterally continuous over several miles. Forest's application states that sandstones within the proposed disposal interval have estimated porosities up to 20%, permeabilities in excess of 50 millidarcies, and they can be up to 100' thick. The interbedded siltstones, claystones, and coals are considered to be over-bank deposits that will provide vertical confinement for the fluids to be injected. Approximately 40% of the 1000-foot interval overlaying the injection zone consists of these laterally continuous, confining lithologies. These confining lithologies also comprise approximately 20% of the middle Tyonek Formation underlying the proposed injection interval. KF 1 was an unsuccessful exploration well. Disposal operations in KF 1 will not impact adjacent production, as the nearest development wells are over 2.5 miles away. 4. KF 1 Well Logs (20 AAC 25.252 (c (L_1 Well and mudlogs from KF 1 are on file at the AOGCC. 5. Demonstration of Mechanical Integrity and Disposal Zone Isolation (20 AAC 25 252 c 6 Drilling records show that the 9-5/8" casing cement job went reasonably well in KF 1. A well completion diagram submitted to the Commission by Forest on January 12, 2001 shows the calculated top of cement at 5,000' MD and TVD. A formation integrity test ("FIT") after drilling the 9-5/8" casing shoe indicated the shoe withstood Disposal Infection Order ~ ~ Paee 3 of 6 Kustatan Field No. 1 Well April 10, 2003 an equivalent 10 ppg gradient, equivalent to a 3400 psi test of the cement and shoe. The well passed a mechanical integrity test performed by Forest. A CBL/VDL log run in the well between 5000' and 6312' MD (top of 7-5/8" liner) shows only a nominal 20' to 30' of cement bonding between 6140' to 6225' MD. The CBL/VDL could not be used below 6312' in two pipe strings where the 7-5/8" liner overlaps into the 9-5/8" casing, so there are no log data to prove cement quality from the 9-5/8" shoe to 6312' MD. Cement appears to be absent from the bottom of the 9- 5/8" casing shoe, at 6500' MD to a calculated depth of 10,150' MD (according to a well completion diagram submitted by Forest on December 11, 2000). All permeable intervals between 6500' and 10,150' MD have the potential of taking disposed fluids. 6. Disposal Fluid Type, Source, Volume and Compatibility with Disposal Zone (20 AAC 25.252 (c)(7)) The primary disposal fluid planned for this well is produced water from the Redoubt Shoal Oil Field separated at the Kustatan Production Facility. Forest also requests approval for the disposal of other Class II fluids, namely drilling, completion, and workover fluids; rig wash fluids; drilling mud slurries; naturally occurring radioactive material scale slurries; tank bottoms; boiler blowdown; and other fluids brought to surface and generated in connection with oil and gas development activities. Forest estimates an average of 1500 barrels per day of fluid will be injected in KF 1. The maximum estimated daily rate according to Forest will be 5000 barrels per day. 7. Estimated Injection Pressure (20 AAC 25.252 (cL Forest estimates average surface injection pressure will be 3600 psig and the maximum surface injection pressure will be 4500 psig at an injection rate of 5 barrels per minute. 8. Evaluation of Confining Zones (20 AAC 25.252 ~)(9)) A commercial fracture model was used to evaluate the potential to fracture through the confming layer at the KF 1 well. The simulation assumed continuous injection of fluid for 370 days at a rate of 2.3 barrels per minute with a 100-mesh sand concentration of 5 pounds per gallon. The inclusion of a small solid load represents a realistic estimate for produced water disposal where small amounts of solids could tend to plug permeable layers and cause fracture growth. The fracture analysis indicates containment of the fracture propagation to within 220' of the perforated interval. Sufficient stress differences between the sand shale layers prevent upward fracture growth. Disposal Injection Order ~ ~ Page 4 of 6 Kustatan Field No. 1 Well April 10, 2003 9. Standard Laboratory Water Analysis of the Disposal Zone (20 AAC 25.252 (c)(10~~ There was no sampling and laboratory analysis of the water native to the disposal zone. 10. Freshwater Exemption (20 AAC 25.252 (c)(11~~ Wireline log analytical techniques consistent with EPA methodologies were used to characterize formation water salinities in the middle Tyonek Formation in the KF 1 well. Forest reports that the analysis shows a chloride concentration between 10,000 and 30,000 ppm, which equates to a total dissolved solid concentration greater than 10,000 mg/1 above a measured depth of 6,150'. 11. Mechanical Condition of Wells Penetrating the Disposal Zone within '/ Mile of KF 1 (20 AAC 25.252 (c)(12) The two domestic source water wells drilled and operated by Forest that are within a %4 mile radius of the KF 1 do not penetrate the disposal interval. CONCLUSIONS: 1. The application requirements of 20 AAC 25.252(c) have been met. 2. No wells penetrate the disposal zone within % mile of the KF 1 well. The nearest offset production wells are more than 2 %2 miles from KF L 3. The KF 1 well is completed with tubing and packer set at 6280' MD, more than 200' above the injection perforations from 6750' to 6800' MD. The 9-5/8" shoe has been tested to 3400 psi, approximately 3000 psi less than the maximum anticipated pressure at the shoe during normal operations. There is no isolating cement between 6500' and the TOC above the 7-5/8" liner shoe, at 10,150' MD. 4. Disposal must be limited to produced water from the Redoubt Shoal Oil Field separated at the Kustatan Production Facility until the confinement of disposal fluids and completion performance can be demonstrated and evaluated. 5. An aquifer exemption is not required because formation water salinities calculated using EPA recommended techniques reveal the top of formation waters .with total dissolved solids greater than 10,000 ppm to be at approximately 6150' MD, which is 600' above the injection perforations and 200' above the liner top. 6. Waste fluids should be contained within the receiving intervals by the confining lithologies above the 9-5/8" shoe (shallower than 6500' MD) in the middle Tyonek Formation, cement isolation of the well bore and operating conditions. Disposal Injection Order ~ ~ Page 5 of 6 Kustatan Field No. 1 Well April 10, 2003 7. Disposal injection operations in the KF 1 well will be conducted at rates and pressures below those estimated to fracture through the confining zones. 8. Evaluation of surveillance and operational performance data and demonstration of mechanical integrity will be necessary to ensure continued integrity of the well and that waste fluids are contained within the disposal interval. NOW, THEREFORE, IT IS ORDERED THAT: Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless. specifically superseded by Commission order. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order may result in the revocation or suspension of this authorization. RULE 1: Authorized Infection Strata for Disposal Injection of authorized fluids for purposes of underground disposal of oil field wastes is permitted into the middle Tyonek Formation below 6500' MD in the KF 1 well, in the Kustatan Field. The Commission may suspend, revoke, or modify this authorization if injected fluids fail to be confined within the designated injection strata. RULE 2: Authorized Fluids Produced water is the only fluid authorized for injection in the KF 1 well at this time. Rule 7 provides for administrative approval of other waste fluids after additional review of injection performance. RULE 3: Demonstration of Tubin~/Casin~ Annulus Mechanical Integrity Mechanical integrity of the KF 1 disposal well must be demonstrated at least once every two (2) years. 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, or a lack of disposal zone isolation, the operator must immediately notify the Commission, obtain Commission approval to continue injection and submit a plan for corrective action for Commission approval. RULE 5: Surveillance The operator shall obtain a baseline temperature log and a baseline step rate test prior to initial injection. A subsequent temperature log must be performed 1 month after injection begins to demonstrate the receiving zone of the injected fluids. Additional temperature survey requirements will be based on the results of the initial and follow-up temperature surveys. Disposal Injection Order ~ ~ Page 6 of 6 Kustatan Field No. 1 Well April 10, 2003 An annual .report for the calendar year evaluating the performance of .the disposal operation must be submitted by July 1 of each year. RULE 6: Notification of Imaroper Class II Infection 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. RULE 7: Administrative Action Unless notice and public heazing is otherwise required, the Commission may administratively waive the requirements of any rule stated above or administratively amend any rule 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 an increased risk of fluid movement into freshwater. DONE at Anchorage, Alaska and dated April 10, 2003 .~ _ ~ i ~~, ~- azah m, Chair Alaska Oil and Gas Conservation Commission Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission -~~ Randy uedrich, 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 by nonaction 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). John Katr State of Alaska Alaska Governor's Office 444 North Capitol St., NW, Ste 336 Washington, DC 20001 Daniel Donkel SD Dept of Env & Natural Resources Alfred James 2121 North Bayshore Drive, Ste 1219 Oil and Gas Program 200 West Douglas, Ste 525 Miami, FL 33137. 2050 West Main, Ste 1 Wichita, KS 67202 Rapid City, SD 57702 Jim Yancey Christine Hansen Citgo Petroleum Corporation Seal-Tite International Interstate Oil & Gas Compact Comm PO Box 3758 500 Deer Cross Drive Excutive Director Tulsa, OK 74136 Madisonville, LA 70447 PO Box 53127 Oklahoma City, OK 73152 Mary Jones Gregg Nady Michael Nelson XTO Energy, Inc. Shell E&P Company Purvin Geriz, Inc. Cartography Onshore Exploration & Development Library 810 Houston Street, Ste 2000 PO Box 576 600 Travis, Ste 2150 Ft. Worth, TX 76102-6298 Houston, TX 77001-0576 Houston, TX 77002 Paul Walker G. Scott Pfoff G. Havran Chevron Aurora Gas, LLC Gaffney, Cline & Associations 1301 McKinney, Rm 1750 10333 Richmond Ave, Ste 710 Library Houston, TX 77010 Houston, TX 77042 1360 Post Oak Blvd., Ste 2500 Houston, TX 77056 David McCaleb William Holton, Jr. W. Allen Huckabay IHS Energy Group Marathon Oil Company ConocoPhillips Petroleum Company GEPS Law Department Offshore West Africa Exploration 5333 Westheimer, Ste 100 5555 San Fecipe St. 600 North Dairy Ashford Houston, TX 77056 Houston, TX 77056-2799 Houston, TX 77079-1175 T.E. Alford Texico Exploration & Production Corry Woolington ExxonMobil Exploration Company PO Box 36366 ChevronTexaco PO Box 4778 Houston, TX 77236 Land-Alaska Houston, TX 77210-4778 PO Box 36366 Houston, TX 77236 Chevron USA Donna Williams Chevron Chemical Company Alaska Division World Oil Library PO Box 1635 Statistics Editor PO Box 2100. .Houston, TX 77251 PO Box 2608 Houston, TX 77252-9987 Houston, TX 77252 Shelia McNulty Shawn Sutherland Kelly Valadez Financial Times Unocal Tesoro Refining and Marketing Co. PO Box 25089 Revenue Accounting Supply & Distribution Houston, TX 77265-5089 14141 Southwest Freeway 300 Concord Plaza Drive Sugar Land, TX 77478 San Antonio, TX 78216 James White Doug Schultze Robert Gravely Intrepid Prod. Co./Alaskan Crude XTO Energy Inc. 7681 South Kit Carson Drive 4614 Bohill 3000 North Garfield, Ste 175 Littleton, CO 80122 SanAntonio, TX 78217 Midland, TX 79705 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise, ID 83702 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Cammy Taylor 1333 West 11th Ave. Anchorage, AK 99501 Duane Vaagen Fairweather 715 L Street, Ste 7 Anchorage, AK 99501 Tim Ryherd State of Alaska Department of Natural Resources 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Ed Jones Aurora Gas, LLC Vice President 1029 West 3rd Ave., Ste 220 Anchorage, AK 99501 Mark Dalton HDR Alaska 2525 C Street, Ste 305 Anchorage, AK 99503 Mark Hanley Anadarko 3201 C Street, Ste 603 Anchorage, AK 99503 Schlumberger Drilling and Measurements 3940 Arctic Blvd., Ste 300 Anchorage, AK 99503 • Jerry Hodgden Richard Neahring Hodgden Oil Company NRG Associates 40818th Street President Golden, CO 80401-2433 PO Box 1655 Colorado Springs, CO 80901 Kay Munger John F. Bergquist Munger Oil Information Service, inc Babson and Sheppard PO Box 45738 PO Box 8279 Los Angeles, CA 90045-0738 Long Beach, CA 90808-0279 Thor Cutler OW-137 Michael Parks US EPA egion 10 Marple's Business Newsletter 1200 Sixth Ave. 117 West Mercer St, Ste 200 Seattle, WA 98101 Seattle, WA 98119-3960 Richard Mount Julie Houle State of Alaska State of Alaskan DNR Department of Revenue Div of Oil & Gas, Resource Eval. 500 West 7th Ave., Ste 500 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Anchorage, AK 99501 Jim Arlington Susan Hill Forest Oil State of Alaska, ADEC 310 K Street, Ste 700 EH Anchorage, AK 99501 555 Cordova Street Anchorage, AK 99501 William VanDyke Robert Mintr State of Alaska State of Alaska Department of Natural Resources Department of Law 550 West 7th Ave., Ste 800 1031 West 4th Ave., Ste 200 Anchorage, AK 99501 Anchorage, AK 99501 Trustees for Alaska Mark Wedman 1026 West 4th Ave., Ste 201 Halliburton Anchorage, AK 99501-1980 6900 Arctic Blvd. ' Anchorage, AK 99502 Jack Laasch Rob Crotty Natchiq C/O CH2M HILL Vice President Government Affairs 301 West Nothem Lights Blvd 3900 C Street, Ste 701 Anchorage, AK 99503 Anchorage, AK 99503 John Harris Ciri NI Energy Development Land Department Tubular PO Box 93330 3301 C Street, Ste 208 Anchorage, AK 99503 Anchorage, AK 99503 Baker Oil Tools Judy Brady 4730 Business Park Blvd., #44 Alaska Oil & Gas Associates Anchorage, AK 99503 121 West Fireweed Lane, Ste 207 Anchorage, AK 99503-2035 • Arlen Ehm Greg Noble Jeff Walker 2420 Foxhall Dr. Bureau of Land Management US Minerals Management Service Anchorage, AK 99504-3342 Energy and Minerals Regional Supervisor 6881 Abbott Loop Rd 949 East 36th Ave., Ste 308 Anchorage, AK 99507 Anchorage, AK 99508 Rose Ragsdale Jill Schneider Richard Prentki Rose Ragsdale & Associates US Geological Survey US Minerals Management Service 3320 E. 41st Ave 4200 University Dr. 949 East 36th Ave., 3rd Floor Anchorage, AK 99508 Anchorage, AK 99508 Anchorage, AK 99508 Jim Scherr Paul L. Craig Thomas R. Marshall, Jr. US Minerals Management Sen/ice Trading Bay Energy Corp 1569 Birchwood Street Resource Evaluation 5432 East Northern Lights, Ste 610 Anchorage, AK 99508 949 East 36th Ave., Ste 308 Anchorage, AK 99508 Anchorage, AK 99508 Chuck O'Donnell Gordon Severson Jim Ruud Veco Alaska,lnc. 3201 Westmar Cr. ConocoPhillips Alaska, Inc. 949 East 36th Ave., Ste 500 Anchorage, AK 99508-4336 Land Department Anchorage, AK 99508 PO Box 100360 Anchorage, AK 99510 Barbara Fullmer Mark Worcester Kristen Nelson ConocoPhillips Alaska, Inc. ConocoPhillips Alaska, Inc. IHS Energy Legal Department ATO 2084 Legal Department ATO 2090 PO Box 102278 PO Box 100360 PO Box 100360 Anchorage, AK 99510-2278 Anchorage, AK 99510-0360 Anchorage, AK 99510-2090 Jordan Jacobsen Perry Markley Robert Britch, PE Alyeska Pipeline Service Company Alyeska Pipeline Service Company Northern Consulting Group Law Department Oil Movements Department 2454 Telequana Dr. 1835 So. Bragaw 1835 So. Bragaw - MS 575. Anchorage, AK 99517 Anchorage, AK 99515 Anchorage, AK 99515 Jeanne Dickey David Cusato Bill Bocast BP Exploration (Alaska), Inc. 600 West 76th Ave., #508 PACE Local 8-369 Legal Department Anchorage, AK 99518 Go BPX North Slope, Mailstop P-8 PO Box 196612 PO Box 196612 Anchorage, AK 99518 Anchorage, AK 99519 Jack Hakkila Tesoro Alaska Company J. Brock Riddle PO Box 190083 PO Box 196272 Marathon Oil Company Anchorage, AK 99519 Anchorage, AK 99519 Land Department PO Box 196168 Anchorage, AK 99519-6168 Kevin Tabler Sue Miller BP Exploration (Alaska), Inc. Unocal BP Exploration (Alaska), Inc. Land Manager PO Box 196247 PO Box 196612 PO Box 196612 Anchorage, AK 99519-6247 Anchorage, AK 99519-6612 Anchorage, AK 99519-6612 Dudley Platt Bob Shavelson Peter McKay D.A. Platt & Associates Cook Inlet Keeper 55441 Chinook Rd 9852 Little Diomede Cr. PO Box 3269 Kenai, AK 99611 Eagle River, AK 99577 Homer, AK 99603 Shannon Donnelly Phillips Alaska, Ina HEST-Enviromental PO Box 66 Kenai, AK 99611 Marc Kovac PACE 8-369, Prudhoe Bay Vice-Chair PO Box 2973 Seward, AK 99664 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Bemie Karl K&K Recycling Ina PO Box 58055 Fairbanks, AK 99711 Kurt Olson State of Alaska Staff to Senator Tom Wagoner State Capitol Rm 427 Juneau, AK 99801 Kenai Peninsula Borough Economic Development Distr 14896 Kenai Spur Hwy #103A Kenai, AK 99611-7000 James Gibbs PO Box 1597 Soldotna, AK 99669 John Tanigawa Evergreen Well Service Company PO Box 871845 Wasilla, AK 99687 Cliff eurglin PO Box 131 Fairbanks, AK 99707 Penny Vadla Box 467 Ninilchik, AK 99639 Claire Caldes US Fish & Wildlife Service Kenai Refuge PO Box 2139 Soldotna, AK 99669 Charles Boddy Usibelli Coal Mine, Ina 100 Cushman Street, Suite 210 Fairbanks, AK 99701-4659 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 Lt Governor Loren Leman State of Alaska PO Box 110015 Juneau, AK 99811-0015 Harry Bader State of Alaska Department of Natural Resources 3700 Airport Way Fairbanks, AK 99709 North Slope Borough PO Box 69 Barrow, AK 99723 0 0 6 b d FRANK H. MURKOWSKI, GOVERNOR ~+ ~p~8~ ~~ ~ ~ 333 W. 7TM AVENUE, SUITE 100 C~~-7~AQ~ii01s CO~~'II5SI0~ ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 ADMINISTRATIVE APPROVAL NO. DIO 26-001 Re: Request to Extend Injection Interval in Kustatan Field Well #1 Mr. Paul White Drilling Manager -Alaska Division Forest Oil Corporation 310 K Street, Suite 700 Anchorage, AK 99501 Dear Mr. White: By letter dated August 15, 2003, Forest Oil Corporation ("Forest") requested authorization to add perforations and extend the injection zone in Kustatan Field Well No. 1 ("KF 1"). The subject well is a Class II disposal well supporting production from the Osprey platform. An unexpected volume of water, and the inability to keep pace with disposal of produced water led Forest to seek approval to add perforations to the well. Attempts to add deeper perforations were unsuccessful. Confinement and fracture analyses done as part of the DIO 26 concluded that any fracture should be confined to within 220 feet of the injection interval using conservative estimates of injected fluid, pressures, and rates. Temperature surveys indicate that fluids injected to date have been confined to the authorized injection zone. The proposed injection interval as requested by Forest would be approximately 120 feet below the base of fresh water (determined from logs; reference DIO 26 conclusion 5). The Commission believes that injection of produced water only with controlled rates and pressures can be accomplished in a manner that protects fresh water. Based on information provided by Forest, and the analyses performed in compliance with the previously approved DIO 26, the Commission approves Forest's request to perforate KF I from 6270 to 6370 feet, and 6385 to 6475 feet (all measured depths). This approval is subject to the following conditions: 1. The well must pass a mechanical. integrity test as required by Rule 3 of DIO 26. 2. A baseline step rate test must be performed prior to sustained injection. 3. Forest must perform a temperature survey within 30 days of initiating disposal into the new interval(s). 4. Injection must not exceed 2 barrels per minute until the Commission is satisfied the disposed water is isolated deeper than the base of fresh water calculated to be 6150 feet (MD) in the well. DONE at Anchorage, Alaska and dated August 15, 2003. U `~ ~~'~or'~- Randy Ru rich Commissioner BY ORDER OF THE COMMISSION DATED at Anchorage, Alaska and dated August 15, 2003. O ~ a a FRANK H. MURKOWSKI GOVERNOR ~7~ OIL ~ ~ 333 W. 7"' AVENUE, SUITE 100 CO1~T5ERQA7`I011T C011'II~IISSIOI~T ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 ADMINISTRATIVE APPROVAL NO. DIO 26-002 Re: Request to Increase Injection Rate in Kustatan Field Well #1 Mr. Ted Kramer Production Manager -Alaska Division Forest Oil Corporation 310 K Street, Suite 700 Anchorage, AK 99501 Dear Mr. Kramer: By letter dated September 30, 2003, Forest Oil Corporation ("Forest") requested authorization to increase the injection rate in Kustatan Field Well No. 1 ("KF 1"). The subject well is a Class II disposal well supporting production from the Osprey platform. An earlier Administrative Approval (DIO 26-001) was granted August 15, 2003 to add shallower disposal perforations in order to accommodate the produced water volume from Osprey Platform. Disposal injection into the well was limited to 2 barrels per minute (bpm) until Forest had performed a step rate test and acquired a temperature survey within 30 days of initiating injection into the new perforated intervals. Forest has complied with the requirements of DIO 26-OOl . Review of the temperature log information provided by Forest indicates that the injected fluids appear to be satisfactorily contained in the formations accessed by the new perforations. An analysis of the step rate test data does not indicate that a fracture propogates as the injection rate is increased from 2 to beyond 3 bpm. Based on information provided by Forest, and the analyses of it, the Commission approves Forest's request to increase the injection rate. This approval is subject to the following conditions: 1. The allowable injection rate is increased to 3 bpm. 2. In order to further investigate confinement with the perforated intervals, Forest must perform a warm-back temperature survey within 60 days of increasing the injection rate. 3. Forest should contact the Commission with the proposed logging procedure prior to performing the survey. DONE at Anchorage aska and dated October 10, 2003. ^; Palin Daniel T. Searn~ount, Jr. Chair Commissioner BY ORDER OF THE COMMISSION DATED at Anchorage, Alaska and dated October 10, 2003. • • 0 ~ ~ ~ FRANK H. MURKOWSKI, GOVERNOR ~s[~-7~ O~ ~ ~ 333 W. 7'" AVENUE, SUITE 100 CO1~T5C' RQ~TIOIIT CODII~IISSIOI~T ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 ADMINISTRATIVE APPROVAL NO. DIO 26.003 Re: Request to Inject Approved Class II Fluids in Kustatan Field Well #1 Ms Paula Inman Production Engineer Forest Oil Corporation 310 K Street, Suite 700 Anchorage, AK 99501. Dear Ms. Inman: By email dated September 23, 2004, Forest Oil Corporation ("Forest") requested authorization to allow injection into the Kustatan Field Well #1 ("KF #1") of class II fluids in addition to produced water from the Redoubt Unit production operation. On October 6, 2004, Forest clarified their request and specified Class II fluids to be injected included produced water, drilling mud and cuttings, completion fluids, tank bottoms, rig wash, and precipitation accumulation from containment areas from Forest's operations at West McArthur River Unit, Redoubt Unit, West Foreland wells or facilities, and the Kustatan production facility. DIO 26, issued April 10, 2003, concluded fracture analyses indicate any fracture should be confined to within 220 feet of the injection interval, using conservative estimates of injected fluid, pressures, and rates. Conclusion 4 specified "Disposal must be limited to produced water from the Redoubt Shoal Oil Field separated at the Kustatan Production Facility until the confinement of disposal fluids and completion performance can be demonstrated and evaluated." Administrative Approval DIO 26.001, issued August 15, 2003, approved additional perforations, specified a baseline step rate test, temperature survey within 30 days of injection into the new intervals and placed a 2-barrel per minute ("bpm") limitation on injection until a demonstration of disposed water was confined below the base of fresh water at 6,150 feet measured depth ("MD"). A step rate test conducted August 21, 2003 indicates the well's capability to take up to 4.8 bpm without indications of fracture extension. Temperature logs run on September 15, 2003 indicate injected fluids have been contained within perforated intervals between 6,270 to 6,475 feet MD. Administrative Approval DIO 26.002, dated October 10, 2003, concluded fracture propagation was not a concern at injection rates at least to 3 bpm. The Commission approved increasing the allowable injection rate to 3 bpm and further specified Forest must contact the Commission with proposed temperature logging procedure and then, upon approval, run awarm-back temperature survey within 60 days of increasing the injection rate. DIO 26-003 • • October 8, 2004 Page 2 of 2 As required by the injection order, Forest submitted annual surveillance information July 1, 2004. As that information was reviewed, it was determined that the reported injection rate was in error. In response to a request for clarification, Forest examined their data and confirmed that the reported injection rate of up to 4 bpm resulted from using the incorrect operating time. Forest submitted a corrected report on October 6, 2004 and stipulated that the injection rate had never exceeded 2 bpm although approval up to 3 bpm had been approved. Evaluation of corrected surveillance data (only the rate was changed) indicates disposal has been performing consistently within the parameters observed during the step rate test of August 2003. The pressure analysis confirmed that the injection rate had not been in excess of 2 bpm. Therefore, based on information provided by Forest and the analyses performed in compliance with DIO 26, the Commission finds under Rule 7 of DIO 26 that the requested administrative amendment, including the conditions set out below, will not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in an increased risk of fluid movement into freshwater. The Commission approves Forest's request to inject other approved Class II fluids subject to the following conditions: 1. Forest must perform a temperature survey prior to initiating disposal of other Class II fluids, mud and cuttings into KF # 1. 2. Forest must perform afollow-up temperature survey including warm-back passes after 60 days of injecting mud and cuttings into KF # 1. 3. Injection must not exceed 3 barrels per minute until the Commission is satisfied the injection of mud and cuttings will not fracture through the confining intervals. DONE at Anc ge, Alaska and dated October 8, 2004. o an Daniel T. Seamount, Jr. Chairman Commissioner G~\ ~~~ DIO 26.003 • Subject: DIO 26.003. From: Jody Colombie <Jody_colombie@admin.state.ak.us> Date: Mon, 11 Oct 2004 14:59:54 -0800 To: undisclosed-recipients:; BCC: CynthiaB Mciver <bren mciver@admin.state.ak.us'-, Robert E R-lintz <robert_mintzClaw.state.ak.us>, Christine plan5en <c.har~senru; ~~~~cc.statz.ok.us%, Tcn~i~ f f ubbl~ <hubbletl@bp.eom>, Sondra Stewman <StewmaSD@I3P.com>, Scott & Canulw ~I a~1or <staylor cr alaska.net>, stanekj <stanekj ~~l;un«eal.eonl -, ecolaw <eeolaw(c~tru~tees.~r~~= , r~~s~ragsdal~ <roseragsdale@bei.net>, trmjrl <trmjrl ~~r'aoi.com>, ji~ridd~e <jbriddle@m~~rath~~n~~il.cu~~~ -. r~~ckhill <rockhill~aoga.org>, shane~'shaneg;u;cvergreci~as.eom>, jdarlin~~ton <jdarlington(c~forestoil.com =, nelson <_hnelson~:petrol_eumnews.cum- , cboddv <cbod~ly~~usibelli.com?. M~si-k Dalton <:n~ark.dallon(~a?hdrinc.com>, Shannon Donnelly <shannon.donnell~ (~~.conocophillips.corn->, "Ma~~k P. Worcester" <mark.p.worcestcr~~~ ~~no~uphillips.~~nz~l -, ~~Jerrti~ C. Dethlefs° <jei7y.c.dethlefs~con~~cophillips.com>, Bob <bob~c~i inletk~eC~~r.~~r~-~, ~~~dv <wd~ ~a..dnr.state.ak.us>, tjr <tjr@dnr.state.ak.us>, bbritch <bbritch cr alaska.net>, rt~jnefs~~n <:mjnelson@pun in~ertz.com>, Charles O'Donnell <charles.o'donnell@veco.com>, "Randy L. Skillern" - SkilleRLr~iBP.eom>, "Deborah J. Jones" <JonesD6@I3P.com=~, "Paul G. Hyatt" ~~-hvattpgr~i.BP.com>, "Stc~~cn F~:. Rossberg" <RossbeRS@BP.com>, Lois <lois~~~`inletl:eeper.©rg>, Dan Bross kuacnews@kuac.orL -, Gordon Pospisil <PospisG c~BP.com>, "Fr~~ncis S. S~~mmer" <SolnmcrF~!~i';BP.com>, Mikel Schulte <Mikel.SchultzCBP.eom>, "Nick ~~'. Glover" <GloverN~~"(aBP.eom ~~ . "Daryl J. Kleppin" <KleppiDECBP.com>, "Janet U. Plat[" <PlattJD@BP.com ~-, "Ru~anne M.7acobsen" <JacobsRM@BP.com>, ddonkel ~ddonkel@cfl.rr.com~-. Collins '~-bunt <Collins_mount@revenue.state.ak.us>, mekay <mekay~gci.net=°. Barbara F Fullmer <barbara.£fullmer c(r~conocophillips.com>, bocastwf <bocastu•f r ~bp.com>, Charles Barker: <barker@usgs.got>>, doug_schultze ~'doug_schultze~xtt~ener~~~.c~~m?, Hank Alford <hank.alford~~esaonmobil.com>,11-1~u~kKovac<yesnol!ugci.ne,t=-. ~s~~foff <gspfoff@aura~-aE~~~~~~~r.com>, Gregg Nady <gregg.nady«rshel l.com-~_ Fred Stc~c~ <fi-ed.steece(rstatc.sd.us>, rcrotty<rerottyc~ch2m.com-~, jejoncs ~ jcj~>nes~~~,aururap~~wer.eom>, da~ra <dapa cr alaska.net=~. ji~~derick <jroderick(c~~ei.net>, ~van~v ~~~eyancl'~i-seal-titc.n~t-~, ".lamps tit. Ruud" <fames.m.ruud@conocophillips.com:~, Brit Lively ~mapalaska@ak.net=~, j~~h <jah r~dnr.state.ak.us>, Kurt E Olson <kurt_olson@legis.state.ak.us>, buonoje ~~ h~zonoje(~~bp.com>, Mark Hanley <mark hanley cr,anadarko.com>, loren_leman ~~ loren_Ieman@gov.stat~.ak.us>, Julie Houle <julie haule~dnr.state.ak.us>, John V~..Katz <wkat~<<i~sso.~~r~~~, Suzan ,l I lily <suzan hiller dec.state.ak.us>, tablerk ~tablerkrc~unocal.com>, Brady ~ hradv«;ao~a.or~ ~~. Brian Havelock ~ heh~~ldnr.state.ak.us>, bpopp <bpoE~~~ ~ hc~rough.kenai.ak.us-.Jim ~~~%hitc <jimwhite~satxar.com-•. "'John S. Haworth" ~ john.s.haworth@exxonn~ohil.com=, marts <marty@rkindustriaLcc~n~>, ghammons <ghamn~ons~uaol.corn>, rnnclean <rmclean@pc~box.alaska.net>, mkm~200 <ml~n7~OU~i;aol.com>, Brian Gillespie <ifbmg@uaa.aiaska.edu>, David L noelens <dboelens~uz~umrapot~~er.am~>, Todd Durkee -TDURKEE a,KMG.com>, Gary Schultz <gars_schultir~r.dnr.state.al<.u~~>, Wayne Rancier fZANCIER@petro-canada.ca>, $illMillcr ~~Bill Millei~!u!xt~~alaska.eom- _ Brandon Gagtmn --h~agnon@brenalaw.com>, Paul Vvinslow <pmwinslo~~r~i;forestoiLcom=~. Garr~~ C'atron <catrongr@bp.com>, Shai~naine Copeland <eopelasv~r,bp.cum.. Susanne ,allc.~an <sallexan@helmener~,~y.com>, Kristin Dirks <kristn_dirks@dnr.state.al:.us >, l~avnclll.cman <kjzeman cr,,marathonoil.com>, John Tower <John.Tower@ea.doe.go~ >, Bill Toy-~ lee <Bill_Fowler c~ianadarko.COM>, Vaughn`Swartz <vaughn.swartz@rbccm.com>, Scott Cranswick 1 of 2 10/11/2004 3:00 PM DIO 26.003 scott.cranswick@mms.gov>, Brad McKim <illckimbs~I~P.com> Content-Type: apE~lieation~'ms~~~ur~i DI026.0113.doc Content-Encoding: hasc~~~} 2 of 2 10/11/2004 3:00 PM ~ ~ Citgo Petroleum Corporation 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 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 Barrow, AK 99723 PO Box 129 Barrow, AK 99723 #19 Singh, Angela K (DOA) From: Wallace, Chris D (DOA) Sent: Wednesday, March 05, 2014 3:37 PM To: Singh, Angela K (DOA) Subject: FW: ADL 231821- Letter of non -objection and closure Attachments: ADL 231821 Letter of non -objection and closure, 3-5-2014.pdf, Letter from Eric Moore to JR Wilcox, dated 2-6-2014, with enclosures.pdf Angela, Please print and file in the DIO 26 file. Thanks and Regards, Chris Wallace Sr. Petroleum Engineer Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 (907) 793-1250 (phone) (907) 276-7542 (fax) chris.wallace@alaska.gov From: Moore, Eric A (DNR) Sent: Wednesday, March 05, 2014 3:09 PM To: JR.Wilcox4cookinlet.net Cc: tim.jonesC&cookinlet.net; Wallace, Chris D (DOA); Woolf, Wendy C (DNR); Easton, John R (DNR); Issaev, Yury V (DNR); Rouen, Lauren F (DNR); Baril, Rebecca M (DEC) Subject: ADL 231821 - Letter of non -objection and closure Mr. Wilcox, The attached letter is DMLW's response to Cook Inlet Energy's application for an easement (serialized as ADL 231821) to authorize a subsurface wellbore for use as a Class II Disposal Well under separate authorization from the Alaska Oil and Gas Conservation Commission. Please let me know if I can be of further assistance or if you have any additional questions regarding this letter. Sincerely, Eric Moore Natural Resource Specialist III Department of Natural Resources Division of Mining, Land & Water 550 W 7th Ave, Suite 900C Anchorage, AK 99501 (907)269-8548 eric.moore@alaska.gov 1 THE STATE °fALASKA GOVERNOR SEAN PARNl:t.1. March 5, 2014 Via Email JR Wilcox Cook Inlet Energy 601 W. 56' Avenue, Suite 310 Anchorage, AK 99501 Re: ADL 231821 Dear Mr. Wilcox: Department of Natural Resources Division of Mining, Land & Water Southcentral Regional Land Office 550 West 7th Avenue, Suite 900 Anchorage, Alaska 99501-3577 Main: 907.269.8503 TDD: 907.269.8411 Fax: 907.269.8913 As described in a letter dated February 6, 2014, the State holds a less than full ownership interest in the lands affected by your easement application serialized as ADL 231821. Specifically, the State has retained only the "coal, oils, gases and associated substances, ores and minerals," along with the associated rights to explore for and produce these substances. Because your requested easement is not for exploratory or production purposes, the Department of Natural Resources (DNR), Division of Mining, Land and Water (DMLW), does not have an ownership interest upon or within which to issue an easement for the proposed project. Background information and supporting documentation are attached for your reference. Although the State does not have fee ownership of the subsurface estate in your project location, the State does have the right to manage and protect its retained mineral interest within these lands. DMLW conducted an agency and public notice of the requested easement from January 17 — February 18, 2014. The DMLW Land Sales and Contract Administration Section responded that they have no concerns with the proposed project, and the Department of Environmental Conservation's Drinking Water Protection Program replied that they had no comment. The DNR Division of Oil and Gas Commercial Section commented that charging a fee of $100 per acre for an easement under 11 AAC 05.010 (e)(11)(A) was "unlikely to `ensure reasonable return to the State,"' and recommended a higher fee of at least $200 per acre in accordance with 11 AAC 05.010(f). While acknowledging receipt of this comment, DMLW is Page 2 unable to consider or incorporate it due to the fact that no land use authorization can be issued for this project, rendering the discussion of fees moot. DMLW does not object to the proposed Class II Disposal Well, located at the Kustatan Production Facility, at this time. This non -objection is not an authorization and Cook Inlet Energy remains responsible for securing all required authorizations necessary for the proposed project, and for complying with all applicable laws related to their proposed Class II Waste Disposal Well. Furthermore, DMLW reserves the right to comment on any related requests or authorizations such as, but not limited to, a request for an authorization from the Alaska Oil and Gas Conservation Commission for the disposal of Class II wastes. Because the requested easement cannot be issued, Cook Inlet Energy's application for ADL 231821 will be closed and no further action will be taken with regard to this request. For information purposes DMLW will retain the application and related materials under ADL 231821 as a "Project" file, rather than as an Easement application. If you feel this is not appropriate, or if you have any questions, I can be reached by email at Eric.Moore@Alaska.gov, by phone at (907) 269-8548, or by any of the contact information found at the top of this letter. If you do not respond ADL 231821 will be closed after March 21, 2014. Sincerely, Eric Moore Natural Resource Specialist III Attachments: Letter from Eric Moore to JR Wilcox, dated 2/6/2014, with enclosures CC: Tim Jones, CIE Chris Wallace, AOGCC, Anchorage Wendy Woolf, DNR/DOG, Anchorage John Easton, DNR/DOG, Anchorage Yury Issaev, DNR/DOG, Anchorage Lauren Rouen, DNR/DMLW, Anchorage Rebecca Baril, DEC, Anchorage THE STATE °ALAS --A GOVERNOR SEAN PARNELI. February 6, 2014 JR Wilcox 601 W. 50' Avenue, Suite 310 Anchorage, AK 99501 Re: ADL 231821 Dear Mr. Wilcox: Department of Natural Resources Division of Mining, Land & Water Southcentral Regional Land Office 550 West 7th Avenue, Suite 900 Anchorage, Alaska 99501-3577 Main: 907.269.8503 TDD: 907.269.8411 Fax: 907.269.8913 On October 11, 2013, Cook Inlet Energy (CIE) applied to the Alaska Department of Natural Resources, Division of Mining, Land and Water (DMLW), for a private non-exclusive easement to authorize the continued placement of a subsurface wellbore for use as a Class II Disposal Well, subject to authorization by the Alaska Oil and Gas Conservation Commission (AOGCC). In the course of adjudicating this application, DMLW has determined that the State's interest in the project area does not include full ownership of the subsurface, which would be required in order to authorize the requested easement. Instead, when the State quitclaimed Lot 2 of U.S. Survey 12121 to the United States it retained only the "coal, oils, gases and associated substances, ores and minerals," along with associated rights to explore for and produce these substances. Although the State has the right to manage and protect its mineral interest, this does not extend to authorizing an easement for a disposal wellbore unrelated to oil and gas production from these lands. The enclosed documents detail DMLW's interpretation of the various ownership interests within the footprint of Lot 2 of U.S. Survey 12121. DMLW is currently conducting an agency and public notice of the requested easement, which will conclude on February 18, 2014. Although it appears that an easement cannot be issued, DMLW will consider any comments along with other information gathered during • • Page 2 adjudication in order to determine if issuance of a non -objection to the proposed project is appropriate. In the meantime, please feel free to contact me if you have any questions. I can be reached by email at Eric.Moore@Alaska.gov, by phone at (907)269-8548, or by any of the contact information found at the top of this letter. Sincerely, Eric Moore Natural Resource Specialist III Enclosures: Figure: Historical Ownership of Lot 2, USS 12121 Patent 50-66-0360 Quitclaim Deed 1380 Native Allotment 50-99-0410 Deed: Heirs of Gladys Elvsaas to Forcenergy, Inc. Evidence of Transfer Pursuant to Merger: Forcenergy, Inc. to Forest Oil Corporation Special Warranty Deed: Forest Oil Corporation to Forest Alaska Holding, LLC Special Warranty Deed: Forest Alaska Holding, LLC to Forest Alaska Operating, LLC Amended Certificate of Registration: Pacific Energy Alaska Operating, LLC, formerly Forest Alaska Operating, LLC Quitclaim Deed: Pacific Energy Operating, LLC to Cook Inlet Energy, LLC CC: Tim Jones, CIE Chris Wallace, AOGCC, Anchorage Wendy Woolf, DNR/DOG, Anchorage 0 w«&d WIS3 m*5 / § I $ u \ o w ::Z \ r 2 §u 7E tLw- a � « 5 R o L = u k k tw£/ u o/§ k E M 2 U.« u @ «CL 0 u 7 2 u __ © M @ LA.k � ° O a 4 . r Q 2 k 0> kIA 3 o m 0 0 S 0 Q (A 2 . 4 � 0 0 / k 0 M © o - - > m 0 > k L ■ u r 0� / M � 0 _2 2 2 0■■ 2 k 0 � 0 � - Ln 0 © S �IA .l., k k m t \ � 7 k k ta 0 2 0 2 0 2 w m § m R 2 0 4A cf \ k - � E � 2 � a Ln _ « - - � 2 � � � ■ 7 2 � 2 r-■ ■ c _ k E 4 S1421i p e. ae @ems ' aeo:) _ CA= (A© 2 c o m M Q S §� per, _jjnsq 9 a" kr4 MCA (k (A �$ L - (. a te _Sa m qONU e w3JONcm4mM0l10, 13ejjL,, joped%awe ) � TzTzT S n % ]i ■UMOIeNJO @H •A zoo-osisvi-o Patent U.S. Patent No.: 50-66-0360 This document is being rerecorded in order for the legal description to appear in the Recorder's office database. The prior recording date takes precedence. Please record this cover page as the first page of the document. Document should be indexed as follows: RECORDING DISTRICT: Anchorage DOCUMENT TYPE: Deed FILE TYPE/NUMBER: GS 366 GRANTOR: 1. United States of America LEGAL DESCRIPTION: 2. Department of the Interior 3. Bureau of Land Management Secs. 3 to 6, 9 and 10, T. 7 N., R. 14 W., S.M. GRANTEE: 1. State of Alaska 2. Department of Natural Resources 3. Division of Mining Land and Water AFTER RECORDING RETURN TO: State of Alaska Department of Natural Resources Division of Mining, Land & Water Realty Services/Title Administration 550 W. r Avenue, Suite 1050A Anchorage, AK 99501-3579 STATE BUSINESS NO CHARGE o 3 0 0 - Anhemp R000rding DbW Furm 4-1943 r (biuy 1968) Anchorage 052955 co�s 'pe of america t To all to tobom tl)ege preantg shall come, erecting: WHEREAS, a certificate of the Land Office at Anchorage, Alaska, is now depos- ited in the Bureau of Land Management, whereby it appears that pursuant to the grant of lands under Section 6(b) of the Act of Congress of July 7, 1958 (72 Stat. 339), as amended, the State of Alaska has selected the land embraced in U. S. Survey No. 4525; Lots 1 and 3 of the land embraced in U.S. Survey No. 4527, Alaska; and the following described land: Seward Meridian, Alaska. T. 7 N. , A. 14 W. , Tract A. .4ZL The areas described aggregate 2,026.09 acres, according to the Official Plats of the Surveys of the said Lands, on file in the Bureau of Land Management: NOW KNOW YE, That the UNITED STATES OF AMERICA, in consideration of the premises, and in conformity with the said Act of Congress, HAS GIVEN AND GRANTED, and by these presents DOES GIVE AND GRANT, unto the .said State of Alaska, and to its assigns, the tracts of Land above described; TO HAVE AND TO SOLD the same, together with all the rights, privileges, immunities and appurtenances, of whatsoever nature, thereunto belonging, unto the said State of Alaska, and to its assigns forever; subject to any vested and accrued water rights to ditches and reservoirs used in connection with such water rights as may be recognized and acknowledged by the local customs, laws and decisions of courts; and there is reserved from the lands hereby granted, a right-of-way thereon for ditches or canals constructed by the authority of the United States. There is also reserved to the United States a right-of-way for the construction of railroads, tele- graph and telephone lines in accordance with the Act of March 12, 1914 (38 Stat. 305; 48 U.S. C. Sec. 305). Except that this patent shall not convey the oil and gas rights in the following described lands until the oil and gas leases listed shall terminate or be relinquished, but upon such termination or relinquishment of the said leases, all the rights and interests to the oil and gas deposits in the said lands shall automatically vest in the patentee. r (�IlAllllll�l�l�l�l��lll :;} •. 2 of 5 2009-051591-0 _- J 1 -O�• 1 A ¢ Patent Number ._ _ ___.._ •--360 r !' r} 1 u.,.ceranwuimxuw�m„cc aa-67217.8 t:p4ea9•an • . J 9,96t s y / •- i ` r yd YLij 3 of 5 Dr 8 8 Q �• 6 jF-F 2009-051591-0 C7 Farm 4-1044 (May 1963) Anchorage 052955 fittXAmbemp K c9� ��,,,,p,,�A,,��tjj:>��R Rewding l3bhW As to the following lands, this entry is made under Section 29 of the Act of February 25, 1920 (41 Stat. 437) and the Act of March 4, 1933 (47 Stat. 1570) and the patent is issued subject to the rights of prior permittees or lessees to use so much of the surface of the said lands as is required for mining operations for the duration of the leases and any authorized extensions thereof, without compensation to the patentee for damages resulting from proper mining operations. Anchorage Serial No. Land Description 035014 U. S. Survey No. 4525 and what would be fractional N'JNEJ, Sec. 3, T. 7 N. , R. 14 W. , S. M. , if the rectangular net had been extended. 035018 Portion of Lot 1, U. S. Survey No. 4527 and what would be NWiNWL Sec. 3; Ni, NiSi, Sec. 4; NEI, fractional EJNWJ, fractional NE}SWJ, fractional N-SEJ, Sec. 5, T. 7 N. , R. 14 W. , S. M. , if the rectangular net had been extended. 035015 02839","y 0 0 6 0 2 4 06 f;"cCCRDED-F A,iCHOfiA6C REC. DISTRICT What would be fractional WiNW11, Sec. 5; fractional NEI, Sec. 6, T. 7 N., R. 14 W. , S.M., if the rectangular net had been extended. Portions of Lots 1 and 3, U. S. Survey No. 4527 and what would be fractional SWJSWI, Sec. 4; fractional SE¢SEJ, Sec. 5; fractional WJNWI, Sec. 9, (ex- cluding portions of U. S. Survey No. 1999; Tract B, U. S. Survey No. 363; Lot 2, U. S. Survey No. 4527), T. 7 N. , R. 14 W. , S. M. , if the rectangular net had been extended. 035016 AFR ( ti 3 (ii i 'so' portion of Lot 1, U. S. Survey No. 4527 and what would ncQUESTED aW dye fractional SEISWi, fractional S SE ,Sec. 4; frac- tional NEI, fractional EJNWJ, Sec. 8; fractional SiNa tnu c .&- — Sec. 10, (excluding portions of U.S. Survey No. 1999; e-� U. S. Survey No. 4526; Tract B, U. S. Survey No. 363; Lot 2, U.S. Survey No. 4527), T. 7 N., R. 14 W., S. M. , if the rectangular net *had been extended. 063848 What would be fractional NaSJ, (excluding portion of U.S. Survey No. 4526), Sec. 10, T. 7 N., R. 14 W., S. M. , if the rectangular net had been extended. Alt- J6 �' . .:•:il:ll� '' q ", TF.s�rimovY WHEREOF, the undelsib led authorized officer of the 13u1eau of r • , , :' i-lx •'' �' , � ri�'`f`� Lund Management, in accordance with the provisions of the Act of June 17,1948 (62 Stat. 476), has, in the name of the United States, caused these ;'r�l• ,N�r�' -� t •. ' lettels to be made Patent, and the Seal of the Bureau to he hereunto y toIn, affixed. G1vEN under my Hand, in Anchorage, Alaska the - CSEf1l;i rSEVENTEENTH day of FEBRUARY in the year of our Lord onthousand nine hundred and SIXTY-SIX and of the Inde pendence of the United States the one hundred andj NINETIETH. ~ ; ' Acting Alaska State Director Patent Namber SO~66'-0360 —_ �I I�II��I� II I�I�I�� •.4. 1&--7764S-= aA OOYrwr[1R Ntrllrc older IYIII 17114 ��ollf 1 5 2009-051691-0 6 Of .5 0 Ir r' 932PG074 '$tafe of '�klaska Qmitrlaim perb 'No. 1 3 8 9 Zip (grantor, the STATE OF ALASKA, DEPARTMENT OF NATURAL RESOURCES, 3601 C Street, r Sulfs 960, Anchorage, Alaska 99503-5936, pursuant to AS 38,05.035(b)(9) and the regulations promulgated Hthereunder, for good and valuable consideration, does hereby convey and quitclaim unto the Grantee, the UNITED t STATES OF AMERICA, whose mailing address of record Is Bureau of Land Management, 222 West Seventh i; Avenue, #13. Anchorage, Alaska 99513-7599 and Is assigns, all daht, title and interest. if am+. in and to that real property situated in the Anchorage Recording District, State of Alaska, and described as follows: LOT 2 OF U.S. SURVEY NO. 12121, ALASKA, CONTAINING 159.98 ACRES, MORE OR LESS, ACCORDING TO THE SURVEY PLAT ACCEPTED BY THE UNITED STATES DEPARTMENT OF THE INTERIOR, BUREAU OF LAND MANAGEMENT IN ANCHORAGE, ALASKA ON SEPTEMBER 23, 1997, AND OFFICIALLY FILED ON OCTOBER 9, 1997. X* Abow-PeStribrb �&tnb is being acquired by the United States of America for administration by the Bureau of Larxf Management, Department of the Interior. Zip &Staff of rAlaska saves, excepts, and reserves the following easements, reservations, exceptions, and restrictive covenants from the conveyance: (a) The State of Alaska hereby expressly saves, excepts and reserves unto itself, he lessees, successors, and assigns forever, all coal, oils, gases, and associated substances, ores and minerals which may be in or upon said lands above described, or any part thereof, and the right to explore the same for such coal, oils, gases, and associated substances and it also hereby expressly saves and reserves unto bell, its lessees, successor:, and assigns forever, the right to enter by itself, its or their agents, attorneys, and servants upon said lands, or any part or parts thereof, at any and all times for the purpose of opening, developing, drilling, and working mines or wells on these or other lands and taking out and removing therefrom all such coal, oils, gases, and associated substances, and to that end it further expressly reserves urft belf, its lessees, successors, and assigns forever, the right by Its or their agents, servants and attorneys at any and all times to erect, construct, maintain, and use all such buildings, machinery, roads, pipelines, powerlines, and railroads, sink such shafts, drill such wells, remove such soil, and to remain on said lands or any pad thereof for the foregoing purposes and to occupy as much of said lands as may be necessary or convenient for such purposes hereby expressly reserving to itself, its lessees, successors, and assigns, as aforesaid, generally all rights and power in, to, and over said land, whether herein expressed or not reasonably necessary to render beneficial and efficient the complete enjoyment of the property and rights hereby expressly reserved; (b) the State of Alaska further reserves to itself, its lessees, successors, and assigns forever, all rights granted by the State of Alaska to Stewart Petroleum Company and their assigns, in oil and gas tease ADL 367023 (at Book 3421, Pages 334 through 354 In the Anchorage Recording District); Page 1 of 3 r] PG07S (c) the State of Alaska further reserves to itself the right to royalties under oil and gas lease ADL 387M and the right to regulate, administer, and manage the rights granted under the lease and the right to issue, regulate, administer, and manage additional leases after the termination of ADL 387023 (at Book 3421, Pages 334 through 354 in the Anchorage Recording District); (d) the State of Alaska further reserves the right to exercise the rights reserved in subparagraphs (a)-(c), Pursuant to unit agreements, oJ41t11jCTt hn (a) A one (1) acre public use site easement (approximately 208.7104 feet by 208,7104 feet square) along, abutting and upland of the mean high Ndo line on the shore of Redoubt Bay near Kustatan, and abutting and along the public access easement reserved at paragraph (b) below (at Book 3421, Page 355 in Me Anchorage Recording District); (b) A public access easement twenty-five (25) feet in width from the mean high title line on the shore of Redoubt Bay, and abutting and connecting the alto easement reserved at paragraph (a) above, thence south of and on an approximate 158.4 feet extension of the line from Comer No, i and Comer No. 9 of Lot 2 of U.S. Survey No. 12121 on a bearing of North 59 degrees 04 minutes East and connecting with the previously reserved twenty-five (25) fool easement within Lot 1 of U.S. Survey No. 4527 (at Book 3421, page 355 in the Anchorage Recording District); (c) A public access easement twenty-five feet (25) in width for a trail, beginning and abutting the access easement reserved at paragraph (a) above and proceeding along, abutting and upland of the mean high tide line to public land west of Lot 2 of U.S. Survey No. 12121 (at Book 3421, page 355 in the Anchors" Recording District); (d) All valid existing rights, if any. c°1 '905* UM Pi)elrcttf the State of Alaska has caused these, presents to be executed by the Director of Division of land, Department of Natural Resources, State of Alaska, pursuant to delegated authority, this 9th day the Of June, 1999. Carol L. Shobe For Jana Angvlk, Director Division of Lend �bhtibe of Aittslt� ) es. chird alubicitti pistrw ) os (30 go Grfi fg that on the 9th day of June, 1999, appeared before me CAROL L, SiiOBE, who is L Division of L known to to be the person who has been lawfully delegated the authority of Jane AngWk, the Director of the Land. rent of Natural Resources, State of Alaska, to execute the foregoing document; that Carol L. Shabe executed said aid document under such lega) authority and with knowledge of its contents; and that such act was performed freely and voluntarily upon the promises and for the purposes stated therein. WhIJI ats my hand and official seal the day and year in this certificate first above written. Notary Public In and for the State of Alaska My Commission Expires: April 4, 2001 N 1 OFFICIAL SEAL LNOTTARV ALASKA OCD No.13m L„ KiNSSR Page 2of 3 I%dLIC • K�32Pc076 Urt3=rd to Section 205 of the Federal Land Policy and Management Act of 1976 (90 Stat. 2766; 43 U.S•G. §Wi5 11988)], the grantee, United States of America, hereby accepts this Quitclaim Dead for the purpose of granting the claim of Gladys Elvsaas (deceased) for a Native Allotment, under the provisions of the Act of May 17, 1908, 43 USC 270,1-270.3 (1970), in accordance with The Stipulated Procedures for Implementation of Order approved by the Court to implement the decision in Ethel Aguilar, of al. v. United States of An wrks, 474 F. Supp. 840 (D. Alaska 1979). Dated this _3_ day of ,1999 UNITED STATES OF AMERICA ureau of Land Management t V Alaska State Office Anchorage, Alaska ,*tale of Alaska ) ) ss. 3uairixl �Bistrict ) !StatLe.elf 45 `�a (Certify that on the �j day of 1999, before me appeared ` who is known to me and who stated that he/s is the person designated bythe United acoept the foregoing Quitclaim Deed pursuant to 43 U.S.C. §1715 (1988), that helshe has accepted the Deed pursuant to the provisions of such taw, and that such act was performed treaty and voluntarily. MARGARET J. MCDANIEL Notory PWOC STATE OF AIASKA Retunr Recorded Document to: Notary PSWfc in and f or the State of Atoka My Commission Expires: United states of America057097 1999 SA — 8 AMI f 11 Bureau 2WealSLand ManagemSeventh Avenue. ANCHORAGE n� t;L REQUEESYED BY,& 222wea1SavaskaM1ue,M13 RECORDING DISTRICT o� Ar,cttorage, Alaska 996t3-7S99 Attn: Branch of 984 Adjudication QCD No. 1380 ADL No. 227449 Location Index: T. 7 N., R.14 W., S.M. Sections 4 and 6 Page 3 of 3 r E�1! i��55 �Gt�64 975 ,� 1 AA-7861 zbit mnitleb eitateg; of anteriza Native Allotment Heirs, Devisees and/or Assigns of Gladys Elvsaas This Native Allotment is a deed issued by the UNITED STATES, Department of the Interior, Bureau of Land Management, 222 West Seventh Avenue, #13, Anchorage, Alaska 99513-7599, as GRANTOR, to Heirs, Devisees and/or Assigns of Gladys Elvaaas in care of Bureau of Indian Affairs, Anchorage AgehcY, Realty, 1675 C Street, Anchorage, Alaska 99501•5198, as GRANTEE, for lands in the Anchorage Recording District. IT IS HEREBY CERTIFIED That, the application AA-7861 filed pursuant to the Act of May 17, 1906, as amended, 43 U.S.C. §§ 270-1 to 270-3 (1970), repealed with a savings provision by 43 U.S-C, § 1617(a) (1994), has been approved pursuant to that Act for the following - described land excluding all coal, oil, gas, and other subsurface rights: Lot 2, US Survey No. 12121, Alaska. Containing 159.98 acres, as shown on the plat of survey officially filed on October 9, 1997. Therefore, let it be known that, pursuant to the Act of May 17, 1906, as amended, the land described above excluding all coal, oil, gas, and other subsurface rights shall be deemed the homestead of the allottee and her jheirs in perpetuity, and shall be inalienable and nontaxable until 1 otherwise provided by Congress or until the Secretary of the Interior or his delegate, pursuant to the provisions of the Act of May 17, 1906, as s amended, approves a deed of conveyance vesting in the purchaser a complete title to the land. t - - p410 50 99 CxrbificxW No. — M! e- erc ^55'n[I# 5 975 6")"'1 � AA-7861 EXCEPTING AND RESERVING TO THE UNITED STATES, a right-of-way thereon for ditches or canals constructed by the authority of the United States. Act of August 30, 1890, 43 U.S.C. § 945 (1994). THE GRANT OF THE ABOVE -DESCRIBED LAND IS SUBJECT 1. The terms of Quitclaim Deed No. 1380 issued by the State of Alaska on June 9, 1999, recorded in the Anchorage Recording District on September 8, 1999, in Book 3532, Pages 074 to 076; 2. The terms and conditions of the Settlement and Release Agreement issued by the State of Alaska, recorded in the Anchorage Recording District on April 8, 1999, in Book 3452, Pages 279 to 314; 3. A one (1) acre public use site easement (approximately 208.7104 feet by 208.7104 feet square) along, abutting and upland of the mean high tide line on the shore of Redoubt Bay near Kustatan, and abutting and along the public access easement reserved at paragraph 4 below (at Book 3452, Page 314 in the Anchorage Recording District); 4, A public access easement twenty-five (25) feet in width from the mean high tide line on the shore of Redoubt Bay, and abutting and connecting the site easement reserved at paragraph 3 above, thence south of and on an approximate 158A feet extension of the line from Corner No. 1 and Corner No. 9 of Lot 2 of U.S. Survey No. 12121 on a bearing of North 59 degrees 04 minutes East and connecting with the previously reserved twenty-five (25) foot easement within Lot 1, U.S. Survey No. 4527 (at Book 3452, Page 314 in the Anchorage Recording District); 50-99-0410 (:rrtifieete No. page 2 of 3 • r- Lv55C rU I.#Eo AA-7861 feet in width for 5. A public access and aasement twonty butting the accesve s easement reserved a trail, beginning along, abutting and at paragraph 3 above and proceedingeat of t upland f of U SeSuxvey No. 12121 ( mean 1 at Booklic 34b2 page 314 in he Anchorage Recording District). { t is p t ON ry � Location index for Recording In%rmation: Seca. 4 and 5, T. 7 N., R. 14 W., Seward Meridian n M. Toms Acting Chief, Branch of 'title Recovery Adjudication Dated at ANCHORAGE, ALASKA Return Recorded Document To: �7 015 i{ i v E,egt g or:S Certir�ewtr Tla. — �A 2011-048091-0 10/5a011 ,z o, PM Pam. 1 of „ RECORDING COVER SHEET Record this document in the Anchorage Recording District index this document as follows: Title: DEED Grantors: HEIRS OF GLADYS ELVSAAS, namely: FRED H. ELVSAAS LEONARD OGLE DEXTER OGLE JUDITH OGLE PETTERSON JOYCE ELVSAAS FASHBOUGH FREDRICK S. ELVSAAS Grantee: FORCENERGY INC Legal Description: Lot 2, U.S. Survey No.12121, Alaska. Containing 159.98 acres, as shown on the plat of survey officially filed on October 9, 1997. After recording, please return to: Cook Inlet Energy, LLC 601 W. 5t" Avenue, Suite 310 Anchorage, AK 99501 IN REPLY REFER TO: LTRO: WW/mjg UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF INDIAN AFFAIRS ALASKA REGION ALASKA LAND TITLES & RECORDS OFFICE 3601 C Street, Suite 1100 Anchorage, Alaska 99503-5947 (907) 271-4026 FAX (907) 271-4801 THIS IS TO CERTIFY that the enclosed: Deed 975 678 is a full, true and exact copy of the original as the same appears in the records and files of the Alaska Land Titles and Records Office, Bureau of Indian Affairs, Anchorage, Alaska. IN WITNESS WHEREOF, I have hereunto set my hand on September 15, 2011 at Anchorage, Alaska. k4wirI.J�C Wanita Walker, "%Supervisory Legal Administrative Specialist �INNl�llll��hd 2011-048091-0 • • UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF INDIAN AFFAIRS ALASKA REGIONAL OFFICE The within deed is hereby approved this 20 day of , 2000, pursuant to authority delegated in 209 DM 8 November 17, .1981, Secretary's Order 3150 dated May 11, 1992, as amended, and 3177 dated December 20, 1993, Amendment No. 3 dated December 16, 1996, and 10 BIAM Bulletin 13 dated November 19, 1992, as amended, and by BIAM Bulletin Nos. 9307, 9317, 9404, 9602, 9702 and BIAM Bulletin No. 9801 dated January 21, 1998. . e- 00t AL KA REGIONAL NRECTOR, Alaska Regional Office RETURN TO: Branch of Realty Bureau of Indian Affairs 1675 "C" Street Anchorage, Alaska 99501-5198 c� x> a ME: ANCHORAGE RECORDING DISTRICT Uri N CAM rn �Q M. -0 zip, DEED = M Heirs of Gladys ELVSAAS, AA-7861 PAGE 7 of 7 co a Ci+ rn oo3'�u�n 1 0 0 975 678 February 29, 2000 This is to certify that the attached Deed among the Heirs of Gladys Elvsaas, Native Allotment No. AA-78610 and Forcenergy Inc. for Lot 2, U.S. Survey No. 12121, Alaska, containing 160.00 acres, is in conformity with existing laws and regulations, and all realty records checked as to description, ownership and proper identification of grantor/grantee and conformity extends to and includes all supporting documents and other materials as may be specified and required in the Code of Federal Regulations. .A hel White, Realty Specialist Ch les F. Bunch, Baty Officer N4N112011-048091-0 NWIII ATTACHMENT NO. 16 975 678 DEED THIS INDENTURE, Made and entered into this 20th day of April Two - Thousand, by and among the Heirs of Gladys Elvsaas, namely: Fred H. Elvsaas of P. 0. Box 133, Seldovia, Alaska 99663; Leonard Ogle, of 112 B Avenue, Edmonds, Washington 98020; Boy Dexter Ogle of P. 0. Box 34, Seldovia, Alaska 99663; Judith Ogle Petterson of 1007 Mission Avenue, Kenai, Alaska 99611; Joyce Elvsaas Fashbough of 8728 Woodbury Highway, Manchester, Tennessee, 37355; and Fredrick S. Elvsaas, P. 0. Box 76, Seldovia, Alaska 99663 GRANTORS, and FORCENERGY INC, a Delaware Corporation, whose address is 2730 SW 3rd Avenue, Suite 800, Miami, Florida 33129-2356 and who also does business at 310 K Street, Anchorage, Alaska 99501, GRANTEE: WITNESSETH, That said GRANTORS, for and in consideration of Three Hundred Twevle Thousand and No/100 Dollars ($312,000.00), in hand paid, the receipt of -which is hereby acknowledged, do hereby grant, bargain, sell and convey unto said GRANTEE the following described real estate and premises situated in the State of Alaska, to wit: Lot 2, U.S. Survey No. 12121, Alaska. Containing 159.98 acres, as shown on the plat of survey officially filed on October 9, 1997. EXCEPTING AND' RESERVING TO THE UNITED STATES: A right-of-way thereon for ditches or canals constructed by the authority of the United States. Act of August 30, 1890, 43 U.S.C. § 945 (1994). THE GRANT OF THE ABOVE DESCRIBED LAND IS SUBJECT TO: The terms of Quitclaim Deed No. 1380 issued by the State of Alaska on June 9, 1999, recorded in the Anchorage Recording District on September 8, 1999, in Book 3532, Pages 074 to 076; 2. The terms and conditions of the Settlement and Release Agreement issued by the State of Alaska, recorded in the Anchorage Recording District on April 8, 1999, in Book 3452, Pages 279 to 314; 3. A one (1) acre public use site easement (approximately 208.7104 feet by 208,7104 feet square) along, abutting and upland of the mean high tide o line on the shore of Redoubt Bay near Kustatan, and abutting and along the public access easement reserved at paragraph 4 below (at Book 3452, o Page 314 in the Anchorage Recording District); - n 4. A public access easement twenty-five (25) feet in width from the mean `V high tide line on the shore of Redoubt Bay, and abutting and connecting the site easement reserved at paragraph 3 above, thence south of and on an approximate 158.4 feet extension of the line from Corner No. 1 and Corner • • 975 678 No. 9 of Lot 2 of U.S. Survey No. 12121 on a bearing of North 59 degrees 04 minutes East and connecting with the previously reserved twenty-five (25) foot easement within Lot 1, U.S. Survey No. 4527 (At book 3452, Page 314 in the Anchorage Recording District); 5. A public access easement twenty-five (25) feet in width for a trail, beginning and abutting the access easement reserved at paragraph 3 above and proceeding along, abutting and upland of the mean high tide line to public land west of Lot 2 of U.S. Survey No. 12121 (at Book 3452, Page 314 in the Anchorage Recording District). This conveyance is made pursuant to the Act of May 17, 1906 (34 Stat. 197), as amende&by the Act of August 2, 1956 (70 Stat. 954); together with all the improvements thereon and appurtenances thereunto belonging, and the said GRANTORS for themselves and their heirs, successors and assigns, does hereby covenant, promise, and agree to and with the said GRANTEE, its successors and assigns, that they will forever warrant and defend the said premises against the claim of all persons, claiming or to claim, by through, or under themself only. To have and to hold said described premises unto the said GRANTEE, its heirs, executors, administrators, and assigns, forever. IN WITNESS WHEREOF, that said GRANTORS have hereunto set their hands and seals on the day and year first above written. " STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT) foregoing instrument was State o}'Alaska 140TARY 10J'> UC pa"Whke YCamb.W" * Deed Heirs of Gladys Elvsaas, AA-7861 Page 2 of 7 FRED H. ELVSAAS (Heir of Gladys Elvsaas) Native Allotment No. AA-7861 acknowledged before me this day of H. ELVSAAS. NO ARY PUBLIC IN AND FOR ALASKA My Commission Expires:i oinoiu�m�oue 2011-048091-0 0 975 678 LEONARD OGLE (Heir of Gladys Elvsaas) Native Allotment No. AA-7861 STATE OF WASHINGTON ) ) ss- JUDICIAL DISTRICT) ti The foregoing instrument was acknowledged before me this �'7Y day of 2000, by LEONARD OGLE. NOTAR My Corr Deed Heirs of Gladys Elvsaas, AA-7861 Page 3 of 7 u�urmua 2011-048091.0 CON • • STATE OF ALASKA } ) ss. THIRD JUDICIAL DISTRICT) 975 678 BOY 6t=k OGLE (Heir of Glafdys Elvsaas) Native Allotment No. AA-7861 The foregoin ent was acknowledged before me this day of - OF by BOY DEXTER OGLE. NOTARY PUBLIC IN AN OR ALASKA My Commission Expires:��-�- CRXV JUDITH OGLE PETTERSON (Heir of Gladys Elvsaas) Native Allotment No. AA-786I STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT) The foregoing instrument was acknowledged before me this day of , 2000, by JUDITH OGLE PETTERSON. NOTARY PUBLIC IN AND FOR ALASKA My Commission Expires: Deed III 111111111111111111111111111111111 Heirs of Gladys Swam, AA-7861 Page 4 of 2011.048091-0 0 0. 975 678 BOY DEXTER OGLE eir of Gladys Elvsaas) Native Allotment . AA-7861 STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT) The foregoing instrument was owledged before * me this day of 2000, by Y DEXTER OGLE. NOTARY PUBLIC IN AND FOR ALASKA My Commission Expires: ITH OGLE PE RSON (Heir of Gladys Elvsaas) Native. Allotment No. AA-7861 STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT) The foregoing instrument was acknowledged before me this day of 2000, by JUDITH OGLE PETTERSON. n.2000 &I ' V-0-,Dk NOTARY PUBLIC IN FOR ALASIMy Commission Expires: Dftd Heim ofGladoElvs=%AA-796t Illlllllilll)llillllllillllill11111 Page 4 of 7 9 of 11 2011-048091-0 • J Y E ELVSAAS FASHBOUGH (Heir of Gladys Elvsaas) Native Allotment No. AA-786I STATE OF e n ner. Pe ) ss- JUDICIAL DISTRICT) The foregoing instrument was acknowledged before me this day of Join L, 2000, by JOYCE ELVSAAS FASHBOU H. Y PUBLIC N AND FOR My Commission Expires: /,2-1) ' a6 1 Deed Heirs of Gladys Elvsaas, AA-7961 Page 5 of 7 o�iw�ua��u�Yn loaf 11 • 97S 6 7 _ 8 ;2 S: ��•.. FREDERICK S. ELVSAAS (Heir of Gladys Elvsaas) Native Allotment No. AA-7861 STATE OF ALASKA ) )SS. THIRD JUDICIAL DISTRICT) The foregoing instrument was acknowledged before me this day of 2000, by FREDERICK S. ELVSAAS. StaW of Alwka NO ARY PUBLIC IN AND FOR ALASKA NAY PUBLICMy Commission Expires:t&&Q a am 1 Pa" WhIs d!►0onmtede" !MTTJ. Deed Heirs of Gladys Elvsm, AA-786I Page 6 of 7 WI�II�II�II��E 11 of 11 BK03902PG'0793 RECORD THIS INSTRUMENT IN THE ANCHORAt, F, HOMER, AND KENAI RECORDING DISTRICTS INDEX THIS INSTRUMENT AS FOLLOWS: Grantor: Forcenergy Inc Ater mwrding, please return to. Grantee: Forest Oil Corporation FOREST OIL CORPORATION Lands: See Exhibit A attached hereto 310 K Street, Suite 700 Andiorage, AK 99501 STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS EVIDENCE OF TRANSFER OF INTERESTS IN OIL AND GAS LEASES PURSUANT TO MERGER [Form is based on DO&G 25-84 (LEASE ASSIGNMENT) Revised 4/99 DNR #10-113] As described in the certified copy attached hereto as Exhibit B, effective December 7, 2000, FORCENERGY INC ("FORCE"), a Delaware corporation the address of which on file with the State of Alaska Department of Natural Resources ("DNR") was Attn: Gary E. Carlson, Vice President, 310 K St., Suite 700, Anchorage, AK 99501, was merged into FOREST OIL CORPORATION ("FOREST"), a New York corporation the address of which on file with DNR is 1600 Broadway, Suite 2200, Denver, CO 80202. - As of the effective date of said merger, FORCE was the owner of the undivided percentages described in Exhibit A of the working interests described in Exhibit A in the leases described in hibit A, insofar as each of said leases cover the lands described in Exhibit A as being included therein. FOREST, on behalf of itself and as successor -in -interest to the interests of FORCE by virtue of the merger of FORCE into FOREST effective as of December 7, 2000, hereby requests that DNR recognize and approve the transfer effected by said merger and update its records to reflect FOREST as the owner of all such interests. FOREST attests that (1) this application discloses all parties receiving an interest in each of the leases described in Exhibit A pursuant to and by virtue of the merger described herein and (2) this application is filed pursuant to 11 AAC 82.605 and 11 AAC 82.615. FOREST further attests that FORCE was qualified, at all relevant times prior to the merger, and that FOREST is qualified, to transfer or hold interests in oil and gas leases pursuant to 11 AAC 82.200 and 11 AAC 82.2051 FOREST agrees to be bound by the provisions of each lease described in Exhibit A in which it has received an interest pursuant to the merger described herein. If FORCE was the Notification Lessee for the purpose of receiving any and all notices from the State of Alaska in connection with any lease described in Exhibit A, FOREST HEREBY requests that DNR update its records to reflect FOREST as the Notification Lessee for such lease. If a lessee other than FORCE was the Notification Lessee for any particular lease, then no change should be made to the DNR records respecting such lease as a result of the transfer described herein. Evidence of Transfer Pursuant to Merger Page 1 of 2 i FOREST OIL CORPORATION on behalf of itself and as successor -in -interest to FORCENERGY INC by virtue of the merger of FORCENERGY INC into FOREST OIL CORPORATION effective as of December 7, 2000 OK03902PGO194 (DO&G Qualification File No. iOD, (DO&G Qualification File No. 216 ), By: Name: f" ' QaA E. Carlson Title: Senior Vice President _ of Forest Oil Corporation STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) Date: 2/12/01 THIS CERTIFIES that on the La day of February, 200I, at Anchorage, Alaska, the foregoing instrument was acknowledged before me by Gary E. Carlson, Senior Vice President of FOREST OIL CORPORATION, a New York corporation, on behalf of the corporation acting both (1) on behalf of itself and (2) on behalf of itself as successor -in -interest to FORCENERGY INC, a Delaware corporation, by virtue of the merger of FORCENERGY INC into FOREST OIL CORPORATION effective as of December 7, 2000. GIVEN UNDER MY HAND and APPROVAL The foregoing transfer is approved as. to the date set forth below. and year last above written. 'tot i?_ ,')ry Public in and for commission expires "UJR V �G � teeqr� o`� �StS��e ses, and lands described in Exhibit A, effective as of the ----- F E B 1 2001 State of Alaska MARK D. MYERS Effective Date DIRECTOR DIV%91J*9f*9l ,§. GAS EXHIBIT A: ' Affected lands, leases, and interests therein EXHIBIT B: Certified copy of merger documents Evidence of Transfer Pursuant to Merger Page 2 of 2 A 2006-080176-0 A A Recording Dist: 301 - Anchorage s 11/28/2006 3:03 PM Pages: 1 of 2 K A �I{HINII811NINININII{IIIIIIN{gIIIIIINI�llllllllll{IIIIiI{{I�� SPECIAL WARRANTY DEED THIS SPECIAL WARRANTY DEED (this "Deed"), given this 31" day of October, 2006 by FOREST OIL CORPORATION ("Grantor"), a New York corporation whose address 707 Seventeenth Street, Suite 3600, Denver, Colorado 80202, to FOREST ALASKA HOLDING LLC ("Grantee"), a Delaware limited liability company, whose address is 707 Seventeenth Street, Suite 3600, Denver, Colorado 80202, WITNESSETH: THAT for and in consideration of $10.00 and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Grantor does hereby CONVEY and QUITCLAIM to Grantee, with special warranty of title that the property is free and clear of any and all liens, encumbrances or adverse claims of any kind arising by, through or under Grantor, but not otherwise, all of Grantor's right, title, and interest in and to the following described real property situated in the Anchorage Recording District, State of Alaska: Lot 2, U.S. Survey No. 12121, Alaska, containing 159.98 acres, as shown on the plat of survey officially filed on October 9, 1997. TOGETHER WITH, all and singular, the tenements, hereditaments, and appurtenances thereunto belonging or in any way appertaining. This Deed is subject to the provisions, restrictions, exceptions, and reservations contained in that certain Deed from the heirs of Gladys Elvsaas, namely: Fred H. Elvsaas, Leonard Ogle, Boy Dexter Ogle, Judith Ogle Peterson, Joyce Elvsaas Fashbough and Frederick S. Elvsaas, Grantors, to Forcenergy Inc, Grantee, dated April 20, 2000 recorded in the records of the Bureau of Indian Affairs, Juneau Area Office, as Document Number 975 678. 062905v01 TO HAVE AND TO HOLD FOREVER. GIVEN on the date first set forth above. GRANTOR FOREST OIL CORPORATION By ` — len J. Mizenko Vice President Business Development STATE OF COLORADO ) ) ss: CITY AND COUNTY OF DENVER ) THIS CERTIFIES that on the 3 tst day of October 2006, at Denver, Colorado, the foregoing instrument was acknowledged before me by Glen J. Mizenko. I . y NpTAR y �. Nota Public E't18LIC : r My ommission expires: MyQannwsonExps,len 14, 21r0.9 Return to: Forest Alaska Holding LLC 707 Seventeenth Street, Suite 3600 Denver, Colorado 80202 Attention: Land Manager 2006480176-0 06290501 • ;A 2006- 877-0 ARecording Dist: 301 - Anchorage s 12/13/2006 1:09 PM Pages: 1 of 2 K I A IIIIllllllullllfilllll�IIIIIlllilll�iflllllif IIIIIIIIIIIIIN�IIII�I�III SPECIAL WARRANTY DEED THIS SPECIAL WARRANTY DEED (this "Deed"), given this V day of November, 2006 by FOREST ALASKA HOLDING LLC ("Grantor"), a Delaware limited liability company whose address 707 Seventeenth Street, Suite 3600, Denver, Colorado 80202, to FOREST ALASKA OPERATING LLC ("Grantee'), a Delaware limited liability company, whose address is 707 Seventeenth Street, Suite 3600, Denver, Colorado 80202, WITNESSETH: THAT for and in consideration of $10.00 and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Grantor does hereby CONVEY and QUITCLAIM to Grantee, with special warranty of title that the property is free and clear of any and all liens, encumbrances or adverse claims of any kind arising by, through or under Grantor, but not otherwise, all of Grantor's right, title, and interest in and to the following described real property situated in the Anchorage Recording District, State of Alaska: Lot 2, U.S. Survey No. 12121, Alaska, containing 159.98 acres, as shown on the plat of survey officially filed on October 9, 1997. TOGETHER WITH, all and singular, the tenements, hereditaments, and appurtenances thereunto belonging or in any way appertaining. This Deed is subject to the provisions, restrictions, exceptions, and reservations contained in that certain Deed from the heirs of Gladys Elvsaas, namely: Fred H. Elvsaas, Leonard Ogle, Boy Dexter Ogle, Judith Ogle Peterson, Joyce Elvsaas Fashbough and Frederick S. Elvsaas, Grantors, to Forcenergy Inc, Grantee, dated April 20, 2000 recorded in the records of the Bureau of Indian Affairs, Juneau Area Office, as Document Number 975 678. 062914v01 • is TO HAVE AND TO HOLD FOREVER. GIVEN on the date first set forth above. GRANTOR FOREST ASKA HO DING LLC By s D. Marter, IV ice President and Secretary STATE OF COLORADO ) ) ss: CITY AND COUNTY OF DENVER ) THIS CERTIFIES that on the /J day of November 2006, at Denver, Colorado, the foregoing instrument was acknowledged before me by Cyrus D. Marter, IV. 0y �, JON�`sd b: TA �10y R Not Publi PUBLIC My commission expires: '�1716 9 .......... Return to: Forest Alaska Operating LLC 707 Seventeenth Street, Suite 3600 Denver, Colorado 80202 Attention: Land Manager II INIIII� INI�IIIIIIII�I 2 of 2 062914v01 as k,,a Ent -t,� 4 103785 State of Alaska Department of Commerce, Community, and Economic Development Corporations, Business and Professional Licensing re-M REGISTRATION Limited Liability Company THE UYNDFRSICNED, as Commissioner of Commerce, Community, and l"conomic, Development of the State of Alaska, hereby certifies that an Application for Arnended Certificate of Registration to transact business in this state, duly signed and verified pursuant to the provisions of Alaska Statutes- has been received in this office and has been found to conform to law. ACCORDINGL.Y. the undersigned, as Commissioner of Commerce, Community and Economic Development, and by virtue of the authority vested in me by law, hereby issues this certificate to Pacific Energy Alaska Operating LIX Formerly Forest Alaska Operating LLC and attaches hereto the original copy of the application for such amended certificate. INT TESTIMONY WHERE.01". I execute this certificate and affix the Great Sea] of the State of Alaska on August 27,2007. Emil Notti C'ornmissioner • • Department of Commerce, Community, and Economic Development Division of Corporations, Business and Professional Licensing CORPORATIONS SECTION PO Box 110808 Juneau AK 99811-0808 APPLICATION FOR AMENDED CERTIFICATE OF REGISTRATION For Foreign Limited Liability Company and Limited Partnership Pursuant to the provisions of the Alaska Statutes, the undersigned applies for an amended certificate of registration to transact business in Alaska. 1. Name of the entity .. it b awmw stmd on on cwwwm of R.�: ka Enftft #: Forest Alaska Operating LLC 1103785 L Amended name of entity (irdo tmn�atthe Mpq): Pacific Energy Alaska Operating LLC 3. The assumed name elected to use in Alaska if the legal name is not available: 4. The purpose of the entity other than those set forth in Its prior application: Purpose; NAICS Code: 6. Address of the principal office of the entity in the state or country of domicile: Name Mailing Address City, State, Zip 7. Other amendments to the prior registration are as follows: The PRINTED name and SIGNATURE by a person who is authorized by the law of the state or other jurisdiction where the company was organized to sign the application: Signed this 27th day of August , 20 07 Signature of Authorized Person Printed Name Title r-----_._ Pacific Energy Alaska Holdings, LLC By: Pacific Member L ..._.......... _._..__.. Energy Resources Ltd. By: Darren Katic, President If the name of the entity is amended, an original Certificate of Compliance, sometimes referred to as a Certificate of Good Standing or Certificate of Existence, issued by the state of domicile of the entity must be filed with this application. The original certificate must not be older than 60 days. A certified copy of the articles of amendment from the state of domicile must be attached to the Application for Amended Certificate of Registration. State of Alaska FiNng Charges 3 Page(s) 0&4W (Rev. &W) alh -1 IIIIIIIII�IIIII I�llilllllllillll IIII�IIlH�111110 IIHIIIIIII T0723944097 0 0 Delaware ..GE , qhe Ytinrstate I, HARRIET SMITH WINDSOR, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THAT THE SAID "FOREST ALASKA OPERATING LLC", FILED A CERTIFICATE OF ANENDNENT, CHANGING ITS NAIL TO "PACIFIC ENERGY ALASKA OPERATING LLC", TEE TWENTY—FOURTH DAY OF AUGUST, A.D. 2007, AT 7:52 O'CLOCK P.M. 4213707 8320 070957709 Harriet Srnkh Windsor. Secretary of State AUTHENTICATION: 5954593 DATE: 08-27-07 Ll • Defaware PAGE 1 the Tirst State I, HARRIET SNITS WINDSOR, SECRETARY OF STATE OF TEE STATE OF DELAWARE, DO HEREBY CERTIFY "PACIFIC ENERGY ALASKA OPERATING LLC" IS DULY FORMED UNDER THE LADS OF THE STATE OF DELAMARE AND IS IN GOOD STANDING AND HAS A LEGAL EXISTENCE SO FAR AS THE RECORDS OF THIS OFFICE SHOW, AS OF THE TNENTY—SEVENTH DAY OF AUGUST, A.D. 2007. AND I DO HEREBY FURTHER CERTIFY THAT THE SAID "PACIFIC ENERGY ALASKA OPERATING LLC" WAS FORMED ON THE FIRST DAY OF SEPTEMBER, A.D. 2006. AND I DO HEREBY FURTHER CERTIFY THAT THE ANNUAL TAXES HAVE BEEN PAID TO DATE. 4213787 8300 070957709 Harriet Smith Windsor, Secretary of State AUTHENTICATION: 5954594 DATE: 06-27-07 �A L 2012-039746-0 S Recording District 301 ANCHORAGE V'IIIII�IYIIRIgR�I11Nll�mll6�III��WUII�I�R Record in the Anchorage Recording District Return to:` Cook Inlet Energy, LLC P.O. Box 90804 Anchorage, Alaska 99509 Fr -S 7 `t 0 QUITCLAIM DEED F F AA This Quitclaim is made to be effective as of December 11, 2009, by and between Pacific Energy Alaska Operating LLC, a Delaware limited liability company, with an address of 111 West Ocean Boulevard, Suite 1240, Long Beach, California 90802 (hereinafter referred to as "PEAO"), and Cook Inlet Energy LLC, an Alaska limited liability company with an address of P.O. Box 90804, Anchorage, Alaska 99509 (hereinafter referred to as "CIE"). WITNESSETH: WHEREAS, this Quitclaim Deed is made pursuant to the following, which are collectively referred to as the Purchase and Sale Agreement, the Assignment and Bill of Sale and the Master Conveyance: 1) that certain Purchase and Sale Agreement between PEAO and CIE dated November 24, 2009; 2) that certain Assignment and Bill of Sale dated December 11, 2009, recorded on March 26, 2010 as Instrument No. 2010-013610-0 in the Anchorage Recording District, Third Judicial District, State of Alaska; 3) that Amended Assignment and Bill of Sale recorded as Instrument No. 2012-023596-0 in the Anchorage Recording District, Third Judicial District, State of Alaska; 4) that certain Master Conveyance recorded as Instrument No. 2010- 013610-0 in the Anchorage Recording District, Third Judicial District, State of Alaska and 5) that Amended Master Conveyance recorded as Instrument No. 2012-023595-0 in the Anchorage Recording District, Third Judicial District, State of Alaska; WHEREAS, pursuant to the aforementioned Purchase and Sale Agreement, the Assignment and Bill of Sale and the Master Conveyance, PEAO assigned and conveyed all of its interest in the certain properties listed on Exhibit "A" hereto attached;(the Subject Properties"); and WHEREAS, the official records of the Anchorage Recording District, Third Judicial District, State of Alaska do not clearly reflect that CIE became the owner of PEAO's interests in the Subject Properties; and WHEREAS, PEAO desires to execute this Quitclaim Deed to clarify the records and in affirmation of the 2009 Assignment to CIE. NOW, THEREFORE, for and in consideration of the sum of One Dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, PEAO has granted, conveyed, remised and quitclaimed and by these presents PEAO does hereby grant, convey, remise and quitclaim unto CIE and CIE's successors and assigns, forever, all of its estate, right, title, and interest, in and to the Subject Properties, the same being further described in Exhibit "A" attached hereto and made a part hereof; TOGETHER, with any and all rights of every kind and nature; all improvements, personal property, fixtures and equipment; and any and all structures located thereon, therein or thereunder, which are appurtenant to the Subject Property. ��,IJI��,Hiflllltll�ll��'glltli��tHiYlll�llt��..... Page 2 d 5 2012-03974M TOGETHER, with any and all rights of every kind and nature; all improvements, personal property, fixtures and equipment; and any and all structures located thereon, therein or thereunder, which are appurtenant to the Subject Property. To have and to hold the same forever, without any warranty whatsoever, even for the return price, but with full substitution and subrogation in and to all rights and actions of warranty which said transferor may have against all previous owners or vendors. IN WITNESS WHEREOF, PEAO has executed this Quitclaim on thisn'day of July 2012, to be effective on the date first above written. [California Notary certificate attached] PACIFIC ENLRGYALA KA OPERATING LLC. Set er By: Gerry Tywotliuk Plan Representative Pacific Energy Resources Ltd. Li2012-039746-0 ge 3 of 5 C] • CALIFORNIA ALL-PURPOSE CERTIFICATE OF ACKNOWLEDGMENT State of California County of Las A-Nb ELFS On JDVI R, a O I X before me, 6,4/t- Rew t No7A'RY Y�LiBL-1 L (Here insert name and title of the officer) personally appeared 6EX kY TY 100w OK. who proved to me on the basis of satisfactory evidence to be the person(4whose name(s) is/awe-subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/14e0their authorized capacity(+es), and that by his/hedtheirsignature(s) on the instrument the person(4 or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. c ut RoPP Cwm t sim t/ 1941457 WITNESS my hand and official seal. Los PM Cotes ' 1: n ADDITIONAL OPTIONAL INFORMATION DESCRIPTION OF THE ATTACHED DOCUMENT U 17_Gt.4/114 (Title or description of attached document) Lk-_W&_EA% PE740 r Co oK /NLE r ENE, (Tide or description of attached document continued) Number of Pages _,�- Document Date (Additional information) CAPACITY CLAIMED BY THE SIGNER ❑ Individual (s) Gr Corporate Officer (Title) ❑ Partner(s) ❑ Attorney -in -Fact ❑ Trustee(s) ❑ Other 2008 version CAPA v f 2.10.07 800-873-9865 wnwv.NotaryClasses.com INSTRUCTIONS FOR COMPLETING THIS FORM Any aeknuivledgment completed in CaltOrrtia must contain verbiage exactly as appears above in tire notary section or a separate ack undedgmenl form must be properly completed and attached to that document. The only exception is if a document is to be recorded outside of California. In such Instances, any alternative acknowledgment rerblege as may be printed on such a document so long as the verbiage does not require the notary to do something that is illegal for a notary in California (i.e. certhing the authori_ed capacity of the signer). Please check the document carefully for paper notarial wording and attach thisform if required. • State and County information must be the State and County where the document signer(s) personally appeared before the notary public for acknowledgment. • Date of notarization must be the date that the signer(s) personally appeared which must also be the same date the acknowledgment is completed. • The notary public must print his or her name as it appears within his or her commission followed by a comma and then your title (notary public). • Print the name(s) of document signers) who personally appear at the time of notarization. • Indicate the correct singular or plural fors by crossing off' incorrect forms (i.e. he/she/theyr is /are ) or circling the correct forms. Failure to correctly indicate this information may lead to rejection of document recording. • The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. if seal impression smudges, re -seal if a sufficient area permits, otherwise complete a different acknowledgment form. • Signature of the notary public must match the signature on file with the oMce of the county clerk. O Additional information is not required but could help to ensure this acknowledgment is not misused or attached to a different document. ti Indicate title or type of attached document, number of pages and date. • Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer, indicate the title (i.e. CEO, CFO, Secretary). • Securely attach this document to the signed document ....__ ci ge 4 of S -03974f3 0 EXHIBIT A The following parcels, all located within the Anchorage Recording District, Third Judicial District, State of Alaska Lot Two (2) of U.S. Survey No. 12121, as shown on the plat of survey officially filed by the Department of the Interior, Bureau of Land Management on October 9, 1997 Lot 1, U.S. Survey 4527 as shown on the plat of survey officially filed by Department of the Interior, Bureau of Land Management November 27, 1964 Lot 2, U.S. Survey 4527 as shown on the plat of survey officially filed by Department of the Interior, Bureau of Land Management November 27, 1964 U.S. Survey 1999 as shown on the plat of survey officially filed with the U.S. Department of the Interior General Land Office February 25, 1931 ' j!!Page 5 of 5 #18 0 0 Singh, Angela K (DOA) From: Wallace, Chris D (DOA) Sent: Thursday, February 06, 2014 2:43 PM To: Singh, Angela K (DOA) Subject: FW: ADL 231821 - Easement application in association with a proposed disposal well Attachments: 2014 02-06 Letter to CIE.pdf, 1 - Historical Ownership of Lot 2, LISS 12121.pdf; 2 - Patent 50-66-0360.pdf; 3 - Quitclaim Deed 1380.pdf, 4 - Native Allotment 50-99-0410.pdf; 5 - Deed from Heirs of Gladys Elvsaas.pdf; 6 - Evidence of Transfer.pdf; 7 - Special Warranty Deed from Forest Oil Corp.pdf; 8 - Special Warranty Deed from Forest Alaska Holding, LLC.pdf; 9 - Amended Certificate of Registration.pdf; 10 - Quitclaim Deed from Pacific Energy Operating, LLC.pdf Angela, Please print and file in the DIO 26 file. Thanks and Regards, Chris Wallace Sr. Petroleum Engineer Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 (907) 793-1250 (phone) (907) 276-7542 (fax) chris.wallace@alaska.gov From: Moore, Eric A (DNR) Sent: Thursday, February 06, 2014 2:16 PM To: )R.Wilcox@cookinlet.net Cc: tiro JonesC&cookinlet.net; Wallace, Chris D (DOA); Woolf, Wendy C (DNR) Subject: ADL 231821 - Easement application in association with a proposed disposal well Mr. Wilcox, Please see the attached letter and supplementary materials regarding Cook Inlet Energy's application for a private non- exclusive easement in association with the proposed Class II Disposal Well at your Kustatan Production Facility. Please let me know if I can be of further assistance or if you have any additional questions regarding this letter. Sincerely, Eric Moore Natural Resource Specialist III Department of Natural Resources Division of Mining, Land & Water 550 W 7th Ave, Suite 900C Anchorage, AK 99501 (907)269-8548 eric.moore@alaska.gov THE STATE °fALASKA GOVERNOR SEAN PARNEI L February 6, 2014 JR Wilcox 601 W. 5t' Avenue, Suite 310 Anchorage, AK 99501 Re: ADL 231821 Dear Mr. Wilcox: Department of Natural Resources Division of Mining, Land & Water Southcentral Regional Land Office 550 West 7th Avenue, Suite 900 Anchorage, Alaska 99501-3577 Main: 907.269.8503 TDD: 907.269.8411 Fax: 907.269.8913 On October 11, 2013, Cook Inlet Energy (CIE) applied to the Alaska Department of Natural Resources, Division of Mining, Land and Water (DMLW), for a private non-exclusive easement to authorize the continued placement of a subsurface wellbore for use as a Class II Disposal Well, subject to authorization by the Alaska Oil and Gas Conservation Commission (AOGCC). In the course of adjudicating this application, DMLW has determined that the State's interest in the project area does not include full ownership of the subsurface, which would be required in order to authorize the requested easement. Instead, when the State quitclaimed Lot 2 of U.S. Survey 12121 to the United States it retained only the "coal, oils, gases and associated substances, ores and minerals," along with associated rights to explore for and produce these substances. Although the State has the right to manage and protect its mineral interest, this does not extend to authorizing an easement for a disposal wellbore unrelated to oil and gas production from these lands. The enclosed documents detail DMLW's interpretation of the various ownership interests within the footprint of Lot 2 of U.S. Survey 12121. DMLW is currently conducting an agency and public notice of the requested easement, which will conclude on February 18, 2014. Although it appears that an easement cannot be issued, DMLW will consider any comments along with other information gathered during 0 0 Page 2 adjudication in order to determine if issuance of a non -objection to the proposed project is appropriate. In the meantime, please feel free to contact me if you have any questions. I can be reached by email at Eric.Moore@Alaska.gov, by phone at (907)269-8548, or by any of the contact information found at the top of this letter. Sincerely, Eric Moore Natural Resource Specialist III Enclosures: Figure: Historical Ownership of Lot 2, USS 12121 Patent 50-66-0360 Quitclaim Deed 1380 Native Allotment 50-99-0410 Deed: Heirs of Gladys Elvsaas to Forcenergy, Inc. Evidence of Transfer Pursuant to Merger: Forcenergy, Inc. to Forest Oil Corporation Special Warranty Deed: Forest Oil Corporation to Forest Alaska Holding, LLC Special Warranty Deed: Forest Alaska Holding, LLC to Forest Alaska Operating, LLC Amended Certificate of Registration: Pacific Energy Alaska Operating, LLC, formerly Forest Alaska Operating, LLC Quitclaim Deed: Pacific Energy Operating, LLC to Cook Inlet Energy, LLC CC: Tim Jones, CIE Chris Wallace, AOGCC, Anchorage Wendy Woolf, DNR/DOG, Anchorage i ;uasaad 0 a. J f6 i u U E hp v 41 L a Lu Q CL O S ui CA 0 bA ++ f0 C W ++ V f9 C Qj LO L J m C R R J _ _ J LL Q O U M G. LU Q O O a.+ M tiA N 4+ R C i i3 J d y1 LOL Q O J C LA- 0 O U O i L O 41 0 O y Y O V N Q ,0 > O i Q C LL Q J Li V O �O Q = c y o a C O i y C y a ++ O LD E C U to LL 41 LL O O Ln fNC = C fCLn9 L- _ LU O LA. U o c on : o s a+ m 0 of vi C H ._4 4� Q1 w N m N 7 O w a� a s 41 s u O C O W X R O i Ln O +' N Ou 06 G1 LA EA - N i o ' M T 41 C GJ H C ++ O = D 0 41 •L +°� 41 O O N /V V L 4a W O m C •O M v LM °A s 41 M � N Q t O C t0 O O Y C1 %D t0 C v GJ H += 4' ' a Ln0 wo Q H N T fu &A to m C O CA Q alels3 a:)ejanS aMs3 aoejansgnS 1 sjgsII paleposse pue se2'jio `jeoD o V o cu C 0 N N CO i a N Q (ueipiaaW paema5 841;o;SW bi a8uea `gjjON L diysurAol;o „yj:)eJl„;o lied Ajaawaoj) IZZZT ssn 'Z jol }o diysaaumo le:)ia04siH 20*9-051591-0 Patent U.S. Patent No.: 50-66-0360 This document is being rerecorded in order for the legal description to appear in the Recorder's office database. The prior recording date takes precedence. Please record this cover page as the first page of the document. Document should be indexed as follows: RECORDING DISTRICT: Anchorage DOCUMENT TYPE: Deed FILE TYPE/NUMBER: GS 366 GRANTOR: 1. United States of America LEGAL DESCRIPTION: 2. Department of the Interior 3. Bureau of Land Management Secs. 3 to 6, 9 and 10, T. 7 N., R. 14 W., S.M. GRANTEE: 1. State of Alaska 2. Department of Natural Resources 3. Division of Mining Land and Water AFTER RECORDING RETURN TO: State of Alaska Department of Natural Resources Division of Mining, Land & Water Realty Services/Title Administration 550 W. 7"' Avenue, Suite 1050A Anchorage, AK 99501-3579 STATE BUSINESS NO CHARGE 3 r' A=fi..g, aeoording Dwaw Form 4-1043 (play I96S) Anchorage 052955 c,-s -_p6a The aiiiteb of Thexica, Mo all to bnl)om Mege pregentg gbaIl come, Greeting: WHEREAS, a certificate of the Land Office at Anchorage, Alaska, is now depos- ited in the Bureau of Land Management, whereby it appears that pursuant to the grant of lands under Section 6(b) of the Act of Congress of July 7, 1958 (72 Stat. 339), as amended, the State of Alaska has selected the land embraced in U.S. Survey No. 4525; Lots 1 and 3 of the land embraced in U.S. Survey No. 4527, Alaska; and the following described land: Seward Meridian, Alaska. T. 7 N. , R. 14 W. , Tract A. The areas described aggregate 2,026.09 acres, according to the Official Plats of the Surveys of the said Lands, on file in the Bureau of Land Management: NOW KNOW YE, That the UNITED STATES OF AMERICA, in consideration of the premises, and in conformity with the said Act of Congress, HAS GIVEN AND GRANTED, and by these presents DOES GIVE AND GRANT, unto the said State of Alaska, and to its assigns, the tracts of Land above described; TO HAVE AND TO HOLD the same, together with all the rights, privileges, immunities and appurtenances, of whatsoever nature, thereunto belonging, unto the said State of Alaska, and to its assigns forever; subject to any vested and accrued water rights to ditches and reservoirs used in connection with such water rights as may be recognized and acknowledged by the local customs, laws and decisions of courts; and there is reserved from the lands hereby granted, a right-of-way thereon for ditches or canals constructed by the authority of the United States. There is also reserved to the United States a right-of-way for the construction of railroads, tele- graph and telephone lines in accordance with the Act of March 12, 1914 (38 Stat. 305; 48 U. S. C. Sec. 305). Except that this patent shall not convey the oil and gas rights in the following described lands until the oil and gas leases listed shall terminate or be relinquished, but upon such termination or relinquishment of the said leases, all the rights and interests to the oil and gas deposits in the said lands shall automatically vest in the patentee. h Illhlll I (hIIIIIIli4lllll !° 2of 5 2009-051591-0 Patent Number I ---' V'-0360 x r u.a. c9rtllMtMt IM7tMa 9rtict 10 67247.3 GPO 839-017 0 • ti n5 6 7 B 91�I I •,. . r r Ao 4. 961 Ij c�i , C .7 : Sss I`�Ill� $111dl�l1111�11�11111II rl pr6 $�� L6 DePf��of 3 of 5 Resa n,,, 2009-051591-0 «::. - - - —' �Yyel II Oi 6 9 y Form 4-1011 BOOK4219 pAGR // _'S (Mxy 1963) Asoherago Roocrding Disl:ist Anchorage 052955 As to the following lands, this entry is made under Section 29 of the Act of February 25, 1920 (41 Stat. 437) and the Act of March 4, 1933 (47 Stat. 1570) and the patent is issued subject to the rights of prior permittees or lessees to use so much of the surface of the said lands as is required for mining operations for the duration of the leases and any authorized extensions thereof, without compensation to the patentee for damages resulting from proper mining operations. Anchorage Serial No. Land Description 035014 U. S. Survey No. 4525 and what would be fractional NZNE4, Sec. 3, T. 7 N. , R. 14 W. , S. M. , if the rectangular net had been extended. 035018 Portion of Lot 1, U. S. Survey No. 4527 and what would be NWJNWa, Sec. 3; N2, N2S2, Sec. 4; NE1, fractional E2NWI, fractional NEISW'A, fractional N2SEI, Sec. 5, T. 7 N. , R. 14 W. , S. M. , if the rectangular net had been extended. 035015 ' 1 028393% 0 0 6 0) f A48 EECORDED-�Z t:;tiCHOi1AGC RAC. DISif 1CT What would be fractional W2NW41, Sec. 5; fractional NEI, Sec. 6, T. 7 N. , R. 14 W. , S.M., if the rectangular net had been extended. Portions of Lots 1 and 3, U. S. Survey No. 4527 and what would be fractional SWJSW'J, Sec. 4; fractional SEZ'SEJ, Sec. 5; fractional W2NW:1, Sec. 9, (ex- cluding portions of U. S. Survey No. 1999; Tract B, U. S. Survey No. 363; Lot 2, U. S. Survey No. 4527), T. 7 N. , R. 14 W. , S. M., if the rectangular net had been extended. 035016 AFR 113 f l. f Portion of Lot 1, U. S. Survey No. 4527 and what would Cc0U�5Ti D B ✓�.� e fractional SE'4SWJ, fractional SISE1, Sec. 4; frac- tionai NEI, fractional E2NWk, Sec. 9; fractional S2N2, Sec. 10, (excluding portions of U. S. Survey No. 1999; U. S. Survey No. 4526; Tract B, U. S. Survey No. 363; Lot 2, U.S. Survey No. 4527), T. 7 N., R. 14 W., S. M. , if the rectangular net'had been extended. 063848 What would be fractional N2S2, (excluding portion of U.S. Survey No. 4526), Sec. 10, T. 7 N., R. 14 W., S. M. , if the rectangular net had been extended. f.r i ? `� Ix 1�STIDfOD l WHEREo),the undersigned authorized officer of the Bureau of :.: �•'��_ f,:.,,, lI,.:4f I:and Management, in accordance with the provisions of the Act of June , , `.��•'' 17,1348 (62 St -it. 476), has, in the name of the United States, caused these ;i ,/„ xr,' -� .'� • r letters to be made Patent, and the Seal of the Bureau to be hereunto A C*IVFN under my ]rand, in Anchorage, Alaska the Lord ,SEVENTEENTH day of FEBRUARY in the year of our one thousand nine hundred and SIXTY-SIX and of the Inde- �;�� pendence of the United States the one hundred and NINETIETH. ................. , r Acting Alaska State Director Patent Number _5s--o3so lilli(IIIIINIi.IfLII � III llllfl III�I ••Q., 1�7T625-uJ [AYuxx[xTMUr[Irx:wnt[ f 1 4 of 5 2009-051591-0 J � � 1 111111111111111111111111lIlllll . 5 of 5 2009-051591.0 1.�618�1p1 Rio a 9961 BI D 196 or L a E ?� 32PG074 'q ,,§'tate of ;�Iaska Quitrlaira Pub 3Vfol. 1380 Z14r (Arnntor, the STATE OF ALASKA, DEPARTMENT OF NATURAL RESOURCES, 3601 C Street, t r Suite 960, Anchorage, Alaska 99503-5936, pursuant to AS 38.05.035(b)(9) and the regulations promulgated S r thereunder, tot good and valuable consideration, does hereby convey and quitclaim unto the Grantee, the UNITED r STATES OF AMERICA, whose mailing address of record is Bureau of Land Management, 222 West Seventh i' Avenue, A13, Anchorage, Alaska 99513-7599 and its assigns. all right. title and intarast. if anv In anti to that raAl property situated in the Anchorage Recording District, State of Alaska, and described as follows: LOT 2 OF U.S. SURVEY NO. 12121, ALASKA, CONTAINING 159.98 ACRES, MORE OR LESS, ACCORDING TO THE SURVEY PLAT ACCEPTED BY THE UNITED STATES DEPARTMENT OF THE INTERIOR, BUREAU OF LAND MANAGEMENT IN ANCHORAGE, ALASKA ON SEPTEMBER 23, 1997, AND OFFICIALLY FILED ON OCTOBER 9, 1997, Mips J.bufte-prsrriiu l JLitib is being acquired by the United States of America for administration by the Bureau of Land Management, Department of the Interior. 4J! %t2tts of A11151tt saves, excepts, and reserves the following easements, reservations, exceptions, and restrictive covenants from the conveyance: (a) The State of Alaska hereby expressly saves, excepts and reserves unto itself, its lessees, successors, and assigns forever, all coal, oils, gases, and associated substances, ores and minerals which may be in or upon said lands above described, or any part thereof, and the right to explore the same for such coal, oils, gases, and associated substances and it also hereby expressly saves and reserves unto itself, its lessees, successors, and assigns forever, the right to enter by itself, its or their agents, attorneys, and servants upon said lands, or any part or parts thereof, at any and all times for the purpose of opening, developing, drilling, and working mines or wells on these or other lands and taking out and removing therefrom all such coat, oils, gases, and associated substances, and to that end it further expressly reserves unto itself, its lessees, successors, and assigns forever, the right by its or their agents, servants and attorneys at any and all times to erect, construct, maintain, and use all such buildings, machinery, roads, pipelines, powedines, and railroads, sink such shafts, drill such wells, remove such soil, and to remain on said fends or any part thereof for the foregoing purposes and to occupy as much of said lands as may be necessary or convenient for such purposes hereby expressly reserving to itself, its lessees, successors, and assigns, as aforesaid, generally all rights and power in, to, and over said land, whether herein expressed or not, reasonably necessary to render beneficial and efficient the complete enjoyment of the property and rights hereby expressly reserved; (b) the State of Alaska further reserves to itself, its lessees, successors, and assigns forever, all rights granted by the State of Alaska to Stewart Petroleum Company and their assigns, in oil and gas lease ADL 387023 (at Book 3421, Pages 334 through 354 In the Anchorage Recording District); Page 1 of 3 IT PG075 (c) the State of Alaska further reserves to itself the right to royalties under oil and gas lease ADL 387023 and the right 10 regulate, administer, and manage the rights granted under the lease and the right to issue, regulate, administer, and manage additional leases after the termination of ADL 387023 (at Book 3421, Pages 334 through 354 in the Anchorage Recording District): (d) the State of Alaska further reserves the right to exercise the rights reserved in subparagraphs (a)-(c), pursuant to unit agreements. SL UbTCrt to -- (a) A one (1) acre public use site easement (approximately 208.7104 feet by 208,7104 feet square) along, abutting and upland of the mean high tide line on the shore of Redoubt Bay near Kustatan, and abutting and along the public access easement reserved at paragraph (b) below (at Book 3421, Anchorage Recording District); Page 355 in the 1 (b) A public access easement twenty-five (25) feet in width from the mean high title line on the shore of Redoubt + Bay, and abutting and connecting the site easement reserved at paragraph (a) above, thence south of and on an approximate 158A feet extension of the line from Comer No. 1 and Comer No. 9 of Lot 2 of U.S. Survey + No. 12121 on a bearing of North 59 degrees 04 minutes East and connecting with the Previously reserved twenty-five (25) foot easement within Lot 1 of U.S. Survey No. 4527 (at Book 3421, Page 355 in the Anchorage Recording District); (c) A public access easement twenty-five feet (25) in width for a trail, beginning and abutting the access easement reserved at paragraph (a) above and proceeding along, abutting and upland of the mean high tide line to public land west of Lot 2 of U.S. Survey No. 12121 (at Book 3421, Page 355 In the Anchorage Recording District); (d) All valid existing rights, if any. pIrt 'TCAttItlV"V 011CXrtpf the State of Alaska has caused these presents to be executed by the Director of the Division of Land, Department of Natural Resources, State of Alaska, pursuant to delegated authority, this 9th day Of June, 1999. Carol L. Shobe For Jane Angvik, Director � of '�Itcstcu Division of Land btute ) ss. �� f ititicrztl �it3tr'tct ) MZ (�S 'TO Gyfifq that on the 91h day of June, 1999, appeared before me CAROL L. SHOBE, who is known to me to be the person who has been lawfully delegated the authority of Jane Angvik, the Director of the Division of Land, Department of Natural Resources, State of Alaska, to execute the foregoing document; that Carol L. Shobe executed said document under such legal authority and with knowledge of its contents; and that such act was performed freely and voluntarily upon the premises and for the Purposes stated therein. c+u hIL-5S my hand and official seal the day and year in this certificate first above written. Notary Public in and for the State of Alaska My Commission Expires: April4, 2001 OFFICIAL STATE OF ALASKA �7j( CCD No. 1380 CELESTE L. KIfJScfi Page 2 of 3 NOTARY 1'LdLICf get 532Pc076 cArreptance Vursliant Za Section 2U5 of the Federal Land Policy and Management Act of 1976 j90 Stat. 2755; 43 U.S.C. §1715 (1988)], the grantee, United States of America, hereby accepts this Quitclaim Deed for the purpose of granting the claim of Gladys Elvsaas (deceased) for a Native Allotment, under the provisions of the Act of May 17, 19%, 43 USC 270.1-270.3 (1970), in accordance with The Stipulated Procedures for Implementation of Order approved by the Court to implement the decision in Ethet Aguilar, et al. v. United States of America, 474 F. Supp. 840 (D. Alaska 1979). Dated this _ day ofSjeeiia� 1999 I. UNITED STATES OF AMERICA 1 o; ureau of Land Management Alaska State Office Anchorage, Alaska 4 it of 'Alaska ) } ss. `ail rb Juairial District ) �Iltis �ls rcr (Gertifg that on the 3 j day of 1999, before me appeared },��,o,,M�cm� , who is known to me and who stated thal hots is tho person designated by the United States of America accept the foregoing Quitclaim Deed pursuant to 43 U.S.C. §1715 (1988), that he/she has accepted the Deed pursuant to the provisions of such law, and that such act was performed freely and voluntarily. ------------------- MA7GA16T J. MCDANIEL Notary PLOI)c STATE OF ALASKA Retum Recorded Document to: Notary P&Iic in iOd for the State of Alaska My Commission Expires: United States of America 057097 1999 SP - 8 Ali 11- 11 Bureau of Land Management 222 West Seventh Avenue, M13 ANC1,E.nAGE � CL REQUESTED 8 j(� Anchorage, Alaska99513-7599 RECORGii1U DISTRICT Ou� �)L Attn: Branch of 964 Adjudication QCD No. 1380 AOL No. 227449 Location Index: T. 7 N., R. 14 W., S.M. Sections 4 and 5 Fage 3 of 3 r AA-7861 ur iJ -; 5 l Tbr 4111ittb '6tateg of Anitrita Native Affotment Heirs, Devisees and/or Assigns of Gladys Elvsaas This Native Allotment is a deed issued by the UNITED STATES, Department of the Interior, Bureau of Land Management, 222 west Seventh Avenue, #13, Anchorage, Alaska 99513-7599, as GRANTOR, to Heirs, Devisees and/or Assigns of Gladys Elvsaas in care of Bureau of Indian Affairs, Anchorage Agency, Realty, 1675 C Street, Anchorage, Alaska 99501.5198, as GRANTEE, for lands in the Anchorage Recording District. IT IS HEREBY CERTIFIED That, the application AA-7861 filed pursuant to the Act of May 17, 1906, as amended, 43 U.S.C. §§ 270-1 to 270-3 (1970), repealed with a savings provision by 43 U.S.C. § 1617(a) (1994), has been approved pursuant to that Act for the following - described land excluding all coal, oil, gas, and other subsurface rights: Lot 2, US Survey No. 12121, Alaska. Containing 159.98 acres, as shown on the plat of survey officially filed on October 9, 1997. Therefore, let it be known that, pursuant to the Act of May 17, 1906, as amended, the land described above excluding all coal, oil, gas, and other subsurface rights shall be deemed the homestead of the allottee and her heirs in perpetuity, and shall be inalienable and nontaxable until otherwise provided by Congress or until the Secretary of the Interior or his delegate, pursuant to the provisions of the Act of May 17, 1906, as amended, approves a deed of conveyance vesting in the purchaser a complete title to the land. 59 �- 99- p410 i1,1g„143 l;erLificaW Nu• ,,, ,� ff- ex(355"T4( 5 975 651 AA-7861 EXCEPTING AND RESERVING TO THE UNITED STATES, a right-of-way thereon for ditches or canals constructed by the authority of the United States. Act of August 30, 1890, 43 U.S.C. § 945 (1994). THE GRANT OF THE ABOVE -DESCRIBED LAND IS SUBJECT TO: 1. The terms of Quitclaim Deed No. 1380 issued by the State of Alaska on June 9, 1999, recorded in the Anchorage Recording District on September 8, 1999, in Book 3532, Pages 074 to 076; 2. The terms and conditions of the Settlement and Release Agreement issued by the State of Alaska, recorded in the jAnchorage Recording District on April 8, 1999, in = Book 3452, Pages 279 to 314; 3. A one (1) acre public use site easement (approximately 209.7104 feet by 1".7104 feet square) along, abutting and upland of the mean high tide line on the shore of Redoubt Bay near Kustatan, and abutting and along the public access easement reserved at paragraph 4 below (at Book 3452, Page 314 in the Anchorage Recording District); 4, A public access easement twenty-five (25) feet in width from the mean high tide line on the shore of Redoubt Bay, and abutting and connecting the site easement reserved at paragraph 3 above, thence south of and on an approximate 158.4 feet extension of the line from Corner No. 1 and Corner No. 9 of Lot 2 of U.S. Survey No. 12121 on a bearing of North 59 degrees 04 minutes East and connecting with the previously reserved twenty-five (25) foot easement within Lot 1, U.S. Survey No. 4527 (at Book 3452, Page 314 in the Anchorage Recording District); i 5 0- 9 9- 0 410 l,xge z „r a cmrtilicete No. 1 L 15 5 AA-7861 ent twe,tye-five (25) fee� in width for 5. A public access e88em ecasement ,served a tting and trail, beginning and abutting thac, sb at paragraph 3 above and proceeding along, abu of the mean high tide line top land west of upland e 314 in Lot 2 of U.S. survey No. 12121 (at Book 3452' Page the Anchorage Recording District). M. Toms Acting Chief, Branch of Title Recovery Adjudication Dated at ANCHORAGE, ALASKA on CO ED C:) UJ Cn 7. R,,u,, Recorded Document To:, Location Index for Recording Information: sees. 4 and 5, T. 7N., 14 W., Seward Meridian 9-0410 3 or:1 9 e � 20-048091-0 �a=�a„ding ,.o PM Pages. , o, 11 " NII�IIIIVIN�IIIIIIINIMIIIINYINiNAIIIVI'CIII'IIIVIn!III RECORDING COVER SHEET Record this document in the Anchorage Recording District Index this document as follows: Title: DEED Grantors: HEIRS OF GLADYS ELVSAAS, namely: FRED H. ELVSAAS LEONARD OGLE DEXTER OGLE JUDITH OGLE PETTERSON JOYCE ELVSAAS FASHBOUGH FREDRICK S. ELVSAAS Grantee: FORCENERGY INC Legal Description: Lot 2, U.S. Survey No. 12121, Alaska. Containing 159.98 acres, as shown on the plat of survey officially filed on October 9, 1997. After recording, please return to: Cook Inlet Energy, LLC 601 W. 51" Avenue, Suite 310 Anchorage, AK 99501 IN REPLY REFER TO: LTRO: WW/mjg UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF INDIAN AFFAIRS ALASKA REGION ALASKA LAND TITLES & RECORDS OFFICE 3601 C Street, Suite 1100 Anchorage, Alaska 99503-5947 (907) 271-4026 FAX (907) 271-4801 THIS IS TO CERTIFY that the enclosed: Deed 975 678 is a full, true and exact copy of the original as the same appears in the records and files of the Alaska Land Titles and Records Office, Bureau of Indian Affairs, Anchorage, Alaska. IN WITNESS WHEREOF, I have hereunto set my hand on September 15, 2011 at Anchorage, Alaska. t��Uc�� Wanita Walker, Supervisory Legal Administrative (% Specialist 2011-048091-0 UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF INDIAN AFFAIRS ALASKA REGIONAL OFFICE The within deed is hereby approved this 20 day of , 2000, pursuant to authority delegated in 209 DM 8 November 17, .1981, Secretary's Order 3150 dated May 11, 1992, as amended, and 3177 dated December 20, 1993, Amendment No. 3 dated December 16, 1996, and 10 BIAM Bulletin 13 dated November 19, 1992, as amended, and by BIAM Bulletin Nos. 9307, 9317, 9404, 9602, 9702 and BIAM Bulletin No. 9801 dated January 21, 1998. 00+ . ALk9KA REGIONAL 61RECTOR, Alaska Regional Office RETURN TO: Branch of Realty Bureau of Indian Affairs 1675 "C" Street Anchorage, Alaska 99501-5198 CD �. ANCHORAGE RECORDING DISTRICT > r cn mz= GC2 DEED �, Heirs of Gladys ELVSAAS, AA-7861 C� �a PAGE 7 of 7 cr) a 4i m 30f2011-048091.0 ai�nnmop J C� 0 975 678 February 29, 2000 This is to certify that the attached Deed among the Heirs of Gladys Elvsaas, Native Allotment No. AA-78610 and Forcenergy Inc. for Lot 2, U.S. Survey No. 12121, Alaska, containing 160.00 acres, is in conformity with existing laws and regulations, and all realty records checked as to description, ownership and proper identification of grantor/grantee and conformity extends to and includes all supporting documents and other materials as may be specified and required in the Code of Federal Regulations. � �. 6�� xv"'��; jQ, -3Q Ra hel White, Realty Specialist L& &� k . � \- -v%i- k,- Ch les F. Bunch, R Aalty Officer P111119N5 4bI�I�INRINI2011-048091-0 ATTACHMENT No. 16 • • DEED 975 678 THIS INDENTURE, Made and entered into this 20th day of April , Two Thousand, by and among the Heirs of Gladys Elvsaas, namely: Fred H. Elvsaas of P. O. Box 133, Seldovia, Alaska 99663; Leonard Ogle, of 112 B Avenue, Edmonds, Washington 98020; Boy Dexter Ogle of P. O. Box 34, Seldovia, Alaska 99663; Judith Ogle Petterson of 1007 Mission Avenue, Kenai, Alaska 99611; Joyce Elvsaas Fashbough of 8728 Woodbury Highway, Manchester, Tennessee, 37355; and Fredrick S. Elvsaas, P. O. Box 76, Seldovia, Alaska 99663 GRANTORS, and FORCENERGY INC, a Delaware Corporation, whose address is 2730 SW Yd Avenue, Suite 800, Miami, Florida 33129-2356 and who also does business at 310 K Street, Anchorage, Alaska 99501, GRANTEE: WITNESSETH, That said GRANTORS, for and in consideration of Three Hundred Twevle Thousand and No/100 Dollars ($312,000.00), in hand paid, the receipt of -which is hereby acknowledged, do hereby grant, bargain, sell and convey unto said GRANTEE the following described real estate and premises situated in the State of Alaska, to wit: Lot 2, U.S. Survey No. 12121, Alaska. Containing 159.98 acres, as shown on the plat of survey officially filed on October 9, 1997. EXCEPTING AND'RESERVING TO THE UNITED STATES: A right-of-way thereon for ditches or canals constructed by the authority of the United States. Act of August 30, 1890, 43 U.S.C. § 945 (1994). THE GRANT OF THE ABOVE DESCRIBED LAND IS SUBJECT TO: The terms of Quitclaim Deed No. 1380 issued by the State of Alaska on June 9, 1999, recorded in the Anchorage Recording District on September 8, 1999, in Book 3532, Pages 074 to 076; 2. The terms and conditions of the Settlement and Release Agreement issued by the State of Alaska, recorded in the Anchorage Recording District on April 8, 1999, in Book 3452, Pages 279 to 314; 3. A one (1) acre public use site easement (approximately 208.7104 feet by _.. 208,7104 feet square) along, abutting and upland of the mean high tide o line on the shore of Redoubt Bay near Kustatan, and abutting and along the public access easement reserved at paragraph 4 below (at Book 3452, w Page 314 in the Anchorage Recording District); - n 4. A public access easement twenty-five (25) feet in width from the mean 0 `V high tide line on the shore of Redoubt Bay, and abutting and connecting the site easement reserved at paragraph 3 above, thence south of and on an approximate 158.4 feet extension of the line from Comer No. 1 and Corner E E 975 678 No. 9 of Lot 2 of U.S. Survey No. 12121 on a bearing of North 59 degrees 04 minutes East and connecting with the previously reserved twenty-five (25) foot easement within Lot 1, U.S. Survey No. 4527 (At book 3452, Page 314 in the Anchorage Recording District); 5. A public access easement twenty-five (25) feet in width for a trail, beginning and abutting the access easement reserved at paragraph 3 above and proceeding along, abutting and upland of the mean high tide line to public land west of Lot 2 of U.S. Survey No. 12121 (at Book 3452, Page 314 in the Anchorage Recording District). This conveyance is made pursuant to the Act of May 17, 1906 (34 Stat. 197), as amended -by the Act of August 2, 1956 (70 Stat. 954); together with all the improvements thereon and appurtenances thereunto belonging, and the said GRANTORS for themselves and their heirs, successors and assigns, does hereby covenant, promise, and agree to and with the said GRANTEE, its successors and assigns, that they will forever warrant and defend the said premises against the claim of all persons, claiming or to claim, by through, or under themself only. To have and to hold said described premises unto the said GRANTEE, its heirs, executors, administrators, and assigns, forever. IN WITNESS WHEREOF, that said GRANTORS have hereunto set their hands and seals on the day and year first above written. STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT) The foregoing instrument was State of Alaska NOTARY I JEUC VVhke rCaMFIdAl" ExOmOat Deed Heirs of Gladys Elvsaas, AA-7661 Page 2 of 7 FRED H. ELVSAAS (Heir of Gladys Elvsaas) Native Allotment No. AA-7861 acknowledged before me this day of H. ELVSAAS. NO ARY PUBLIC IN AND FOR ALASKA My Commission Expires: l oinaiu�siM�ioio� 2011-048091-0 i • STATE OF WASHINGTON ) )Ss. JUDICIAL DISTRICT) 975 678 LEONARD OGLE (Heir of Gladys Elvsaas) Native Allotment No. AA-7861 The foregoing instrument/ '�7 y/1 was acknowledged before me this � day of 2000, by LEONARD OGLE. ``�. C+ SSlO • ��i NOT ! 1;ICN AND FOR WASHINGTON My C VBLIG Deed Heirs of Gladys Elvsaas, AA-7861 Page 3 of 7 PI�II7ofIN1INI'IVIfl�N f� STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT) The OF 975 678 - 40,r"- i � BOY ft=ik OGLE (Heir of Gl ys Elvsaas) Native Allotment No. AA-7861 was acknowledged before me this day of - by BOY DEXTER OGLE. r NOTARY PUBLIC IN AN OR ALASKA # My Commission Expires: JUDTTH OGLE PETTERSON (Heir of Gladys Elvsaas) Native Allotment No. AA-7861 STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT) The foregoing instrument was acknowledged before me this day of 2000, by JUDITH OGLE PETTERSON. NOTARY PUBLIC IN AND FOR ALASKA My Commission Expires: Deed I 1111111111111111111111111111111 Heirs of Gladys Elvsaas, AA-7861 8 of 11 Page 4 of 7 2011-048091-0 975 678 BOY DEXTER OGLE(Keir of Gladys Elvsaas) Native Allotment AA-7861 STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT) The foregoing instrument was adknowledged before me this day of 2000, by Y DEXTER OGLE. NOTARY PUBLIC IN AND FOR ALASKA My Commission Expires: ITH OGLE PE ERSON (Heir of Gladys Elvsaas) Native Allotment No. AA-7861 STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT) -27 foregoing instrument was acknowledged before me this day of 2000, by JUDITH OGLE PETTERSON. JJ� At, A N NOTARY PUBLIC IN FOR ALAS j 2fi My Commission Expires: Pea �. 2000 AM 9Qai1 Deed Mrs of Gladys Elvsaas, An-796 i �) �IIIIIII II IIII III IIIIII III II II III Pap 4 of 7 9 of 11 2011-048091-0 • 0 975 678 J16M ELVSAAS FASHBOUGH (Heir of Gladys Elvsaas) Native Allotment No. AA-7861 STATE OF 'jennesseoe ) ) ss. JUDICIAL DISTRICT) The foregoing instrument was acknowledged before me this day of 2000, by JOYCE ELVSAAS FASHBOU H. Y PUBLIC AND FOR My Commission Expires: _1,2-1)9, 306 1 Deed Heirs of Gladys Elvsaas, AA-7961 Page 5 of 7 III�I�I�nall;illh�l�l9d 975 67 . s FREDERICK S. ELVSAAS (Heir of Gladys Elvsaas) Native Allotment No. AA-7861 STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT) The foregoing instrument was acknowledged before me this day of 2000, by FREDERICK S. ELVSAAS. State of Alaska NO ARY PUBLIC IN AND FOR ALASKA NOTARY PUBLIC My Commission Expires:t%& 2S eno k Rachel White WCwm tt ' Deed Heirs of Gladys Elvsaas, AA-7861 Page 6 of 7 PIAUQ�IIIBI�IM��I�?I� 11 of 11 •BK03902PG0793 . RECORD THIS INSTRUMENT IN THE ANCHORAGE, HOMER, AND KENAI RECORDING DISTRICTS INDEX THIS INSTRUMENT AS FOLLOWS: Grantor: Forcenergy Inc After i+ carding, please return to: Grantee: Forest Oil Corporation FOREST OIL CORPORATION Lands: See Exhibit A attached hereto 310 K Street, Suite 700 Anchorage, AK 99501 STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS EVIDENCE OF TRANSFER OF INTERESTS IN OIL AND GAS LEASES PURSUANT TO MERGER [Form is based on DO&G 25-84 (LEASE ASSIGNMENT) Revised 4/99 DNR #10-1131 As described in the certified copy attached hereto as Exhibit B, effective December 7, 2000, FORCENERGY INC ("FORCE"), a Delaware corporation the address of which on file with the State of Alaska Department of Natural Resources ("DNR") was Attn: Gary E. Carlson, Vice President, 310 K St., Suite 700, Anchorage, AK 99501, was merged into FOREST OIL CORPORATION ("FOREST"), a New York corporation the address of which on file with DNR is 1600 Broadway, Suite 2200, Denver, CO 80202. As of the effective date of said merger, FORCE was the owner of the undivided percentages described in Exhibit A of the working interests described in Exhibit A in the leases described in Exhibit A, insofar as each of said leases cover the lands described in Exhibit A as being included therein. FOREST, on behalf of itself and as successor -in -interest to the interests of FORCE by virtue of the merger of FORCE into FOREST effective as of December 7, 2000, hereby requests that DNR recognize and approve the transfer effected by said merger and update its records to reflect FOREST as the owner of all such interests. FOREST attests that (1) this application discloses all parties receiving an interest in each of the leases described in Exhibit A pursuant to and by virtue of the merger described herein and (2) this application is filed pursuant to 11 AAC 82.605 and 11 AAC 82.615. FOREST further attests that FORCE was qualified, at all relevant times prior to the merger, and that FOREST is qualified, to transfer or hold interests in oil and gas leases pursuant to 11 AAC 82.200 and 11 AAC 82.205 FOREST agrees to be bound by the provisions of each lease described in Exhibit A in which it has received an interest pursuant to the merger described herein. If FORCE was the Notification Lessee for the purpose of receiving any and all notices from the State of Alaska in connection with any lease described in Exhibit A, FOREST HEREBY requests that DNR update its records to reflect FOREST as the Notification Lessee for such lease. If a lessee other than FORCE was the Notification Lessee for any particular lease, then no change should be made to the DNR records respecting such lease as a result of the transfer described herein. Evidence of Transfer Pursuant to Merger Page 1 of 2 FOREST OIL CORPORATION on behalf of itself and as successor -in -interest to FORCENERGYINC by virtue of the merger of FORCENERGY INC into FOREST OIL CORPORATION effective as of December 7, 2000 8K03902PGO194 • (DO&G Qualification File No. i641), (DO&G Qualification File No. 216 ), B y: 41 Name: a E. Carlson Title: Senior Vice President of Forest Oil Corporation STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) Date: 2/12/01 THIS CERTIFIES that on the la day of February, 2001, at Anchorage, Alaska, the foregoing instrument was acknowledged before me by Gary E. Carlson, Senior Vice President of FOREST OIL CORPORATION, a New York corporation, on behalf of the corporation acting both (1) on behalf of itself and (2) on behalf of itself as successor -in -interest to FORCENERGY INC, a Delaware corporation, by virtue of the merger of FORCENERGY INC into FOREST OIL CORPORATION effective as of December 7, 2000. GIVEN UNDER MY HAND and offi%QAftay and year last above written. A 3 0-TAg A Wtary Public in and for 'G commission expires Ig APPROVAL W&If,�� OF The foregoing transfer is approved as, to the interests; and and lands described in xhibit A, effective as of the date set forth below. F E B 1 2001 State of Alaska MARK D. MYERS Effective Date DIRECTOR DIV1�jgjj.9f*q1�A, GAS ****************«*************�***«***�**** «**� EXHIBIT A: Affected lands, leases, and interests therein EXHIBIT B: Certified copy of merger documents Evidence of Transfer Pursuant to Merger Page 2 of 2 A 2006-080176-0 L A Recording Dist: 301 - Anchorage s 11/28/2006 3:03 PM Pages: 1 of 2 K i A � i81111 Illll II {lil IIIIIIII Iilllll IIIII Ililllllllll {181111IIIII III{II SPECIAL WARRANTY DEED THIS SPECIAL WARRANTY DEED (this "Deed"), given this 31" day of October, 2006 by FOREST OIL CORPORATION ("Grantor"), a New York corporation whose address 707 Seventeenth Street, Suite 3600, Denver, Colorado 80202, to FOREST ALASKA HOLDING LLC ("Grantee"), a Delaware limited liability company, whose address is 707 Seventeenth Street, Suite 3600, Denver, Colorado 80202, WITNESSETH: THAT for and in consideration of $10.00 and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Grantor does hereby CONVEY and QUITCLAIM to Grantee, with special warranty of title that the property is free and clear of any and all liens, encumbrances or adverse claims of any kind arising by, through or under Grantor, but not otherwise, all of Grantor's right, title, and interest in and to the following described real property situated in the Anchorage Recording District, State of Alaska: Lot 2, U.S. Survey No. 12121, Alaska, containing 159.98 acres, as shown on the plat of survey officially filed on October 9, 199T TOGETHER WITH, all and singular, the tenements, hereditaments, and appurtenances thereunto belonging or in any way appertaining. This Deed is subject to the provisions, restrictions, exceptions, and reservations contained in that certain Deed from the heirs of Gladys Elvsaas, namely: Fred H. Elvsaas, Leonard Ogle, Boy Dexter Ogle, Judith Ogle Peterson, Joyce Elvsaas Fashbough and Frederick S. Elvsaas, Grantors, to Forcenergy Inc, Grantee, dated April 20, 2000 recorded in the records of the Bureau of Indian Affairs, Juneau Area Office, as Document Number 975 678. 062905v01 TO HAVE AND TO HOLD FOREVER. GIVEN on the date first set forth above. GRANTOR FOREST OIL CORPORATION By ` — len J. Mizenko Vice President Business Development STATE OF COLORADO ) ) ss: CITY AND COUNTY OF DENVER ) THIS CERTIFIES that on the 31 st day of October 2006, at Denver, Colorado, the foregoing instrument was acknowledged before me by Glen J. Mizenko. J�� A: SMUT :•NOTARY' Nota Public . PIUBLIC • My ommission expires: MYGWM"WExpMJaa 14. 20M Return to: Forest Alaska Holding LLC 707 Seventeenth Street, Suite 3600 Denver, Colorado 80202 Attention: Land Manager Il} Wilfill ~'�ri��11V�� 8 2006-0W76-0 06290501 A 2006- S3877-0 ARecording Dist: 301 - Anchorage s 12/13/2006 1:09 PM Pages: 1 of 2 K A I' Illlllllllllllllliilllllllliflllllifl lllliilll!Ililll lllliill!Iflll�l SPECIAL WARRANTY DEED THIS SPECIAL WARRANTY DEED (this "Deed"), given this I" day of'November, 2006 by FOREST ALASKA HOLDING LLC ("Grantor"), a Delaware limited liability company whose address 707 Seventeenth Street, Suite 3600, Denver, Colorado 80202, to FOREST ALASKA OPERATING LLC ("Grantee"), a Delaware limited liability company, whose address is 707 Seventeenth Street, Suite 3600, Denver, Colorado 80202, WITNESSETH: THAT for and in consideration of $10.00 and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Grantor does hereby CONVEY and QUITCLAIM to Grantee, with special warranty of title that the property is free and clear of any and all liens, encumbrances or adverse claims of any kind arising by, through or under Grantor, but not otherwise, all of Grantor's right, title, and interest in and to the following described real property situated in the Anchorage Recording District, State of Alaska: Lot 2, U.S. Survey No. 12121, Alaska, containing 159.98 acres, as shown on the plat of survey officially filed on October 9, 1997. TOGETHER WITH, all and singular, the tenements, hereditaments, and appurtenances thereunto belonging or in any way appertaining. This Deed is subject to the provisions, restrictions, exceptions, and reservations contained in that certain Deed from the heirs of Gladys Elvsaas, namely: Fred H. Elvsaas, Leonard Ogle, Boy Dexter Ogle, Judith Ogle Peterson, Joyce Elvsaas Fashbough and Frederick S. Elvsaas, Grantors, to Forcenergy Inc, Grantee, dated April 20, 2000 recorded in the records of the Bureau of Indian Affairs, Juneau Area Office, as Document Number 975 678. 06291401 TO HAVE AND TO HOLD FOREVER. GIVEN on the date first set forth above. GRANTOR FOREST ASKA HO DING LLC Bjiceu,� D. Marter, IV President and Secretary STATE OF COLORADO ) ) ss: CITY AND COUNTY OF DENVER ) THIS CERTIFIES that on the Z day of November 2006, at Denver, Colorado, the foregoing instrument was acknowledged before me by Cyrus D. Marter, IV. JONNs�i0//z A6�� NOTA Y . R _ Not Publi �' •. PUBLIC ; My commission expires: �� , 9n .......... �P Return to: Forest Alaska Operating LLC 707 Seventeenth Street, Suite 3600 Denver, Colorado 80202 Attention: Land Manager 2 of 2 2006-083877-0 06291401 x$17 RE: KF #1 Class II disposal configuration • • Subject: RE: KF#1 Class IIdisposal configuration From:Paula Tnn~lan ~~ PRlnman(a~forestoiLeom> Date: Wed, ~">(i Oct ?1111=1 15:3?: ~3 -0600 Tv: 'John Harts' -jack hartr..%cia~lmin.slate.ak.us~==, Paula ltuiu~n ~~~PRlnmanru-lorestoil.com-% CC: Thomas E Manruler <-tomrnaunderr"ci:%admin.state.ak.us =~. Sleh}ten F Davies -stew davies<<~~admin.stale.ak.us>, ~Ced Kramer ~<TEKramcr<<i:.forestoiLcom? Jack, Injection into KF#1 varied depending on the produced water rate. Atypically injection time interval was only part time 12 to 18 hrs per day. Fluids that we would like to inject into KF#1 are drilling mud/cuttings, produced water, Completion Fluids, tank bottoms, rig wash, precipitation accumulating within containment areas, and any other Class II fluid. The source of these fluids would be from -West McArthur River Unit or facility, West Foreland wells or facilities, Redoubt Unit, Kustatan Production Facility, Osprey Platform and any other wells we might drill in the future on the West Foreland Peninsula. Paula Inman Production Engineer Forest Oil. Corporation (907) 868-2135 office (907) 317-8231 cell -----Original Message----- From: John Hartz [mailto:jack_hartz@admin.state.ak.us] Sent: Tuesday, October 05, 2004 3:54 PM To: Paula Inman Cc: Thomas E Maunder; Stephen F Davies; Ted Kramer Subject: Re: KF #1 Class II disposal configuration Paula, Thanks for the heads up on injection rates. Was KF #1 run continuously or only part of each day maybe 1/2 days on the average? Also, What type of fluids and their source are anticipated for KF #1? Jack Hartz Paula Inman wrote: Jack, You have found an error in our annual report. Thank you. At no time in the past yr has Forest exceed the 2 bpm injection rate for KF#1. We inadvertently miscalculated hours of injection. The hours of injection are actually double the amount used in our rate calculation which generated the graphs. Forest will make corrections to the annual report to reflect the accurate data and submit it to the AOGCC for review tomorrow (10/06/04). Please advise if you agree with this timeframe and solution. 1 of 3 10/7/2004 10:09 AM RE: KF #1 Class II disposal configuration • Sorry for any inconvenience. Paula Inman Production Engineer Forest Oil Corporation (907) 868-2135 office (907) 317-8231 cell • -----Original Message----- From: John Hartz [mailto:jack hart z~.~admin.state.ak.us] Sent: Tuesday, October 05, 2004 11:21 AM To: Paula Inman Cc: Thomas E Maunder; Stephen F Davies Subject: Re: KF #1 Class II disposal configuation Paula, We have been evaluating the disposal injection performance since workover ended 8/22/03, step rate test 8/21/03, and temp logs form 9/15/03. The data shows fluids to be contained while injecting clear produced fluids. Is there any other data besides that in the surveillance report to look at? On October 10, 2003 AA DIO 26.002 allowed injection rate to increase to 3 bpm and a temperature warm back survey was required within 60 days of the rate increase. Was that survey done? Also it appears disposal rates were increased to 4 bpm from October through January 2004. What type of Class II fluids are planned for KF #1? This is important whether they are produced fluids or mud, cuttings etc. Thanks, Jack Hartz Paula Inman wrote: Jack, In Disposal Injection Order #26, it states Forest is "limited to produced water from the Redoubt Shoal Oil Field separated at The Kustatan Production Facility until the confinement of disposal fluids and completion performance can be demonstrated and evaluated." Forest feels that this information has been supplied to AOGCC and asked for permission to injected other Class II fluids into KF#1. Please advise Forest of the change in status that will allow us to injection Class II fluids into KF#1. Thanks, Paula Inman Production Engineer Forest Oil Corporation 2 of 3 10/7/2004 10:09 AM RE: KF # 1 Class II disposal configuration r ~', (907) 868-2135 o~ce • (907) 317-8231 cell 3 of 3 10/7/2004 10:09 AM Update on KF# 1 Subject: Update on KF#I From: Paula Inman <PRlnman~a,forestoil.con~> Date: 1~-ion, 04 Oct 2004 12:06:57 -U60~) To: "Jack Hariz (jack hart~i"a'admin.st~ite.ak.us)" ~~jackhart7(~i~admin.statc.ak.us~~ ('C': Ted Kramer ~"hEKramc;r(u'torestoit.com> ,Tack , I sent you an email last week regarding cha~agAg the allowable fluids t4 lae injected into KF#1 front only produced water fram ~t~doubt Unit to all. Clays ~~ fluids. Do we have permission to injected Class II fluids into KF #1? Please advice. Thank you for your time. Paula Inman Production Engineer Forest Oil Corporation (907) 868-2135 office (907) 317-8231 cell 1 of 1 10/6/2004 1:38 PM KF #1 Class II disposal configuation ~ • Subject: KF #I C1assII disposal configuation From: Paula Inrr~an ~ PRlnman a,forestoil.com> Date: Thu, 2 ~ Scp ~~)U4 I ~~:i)il:=~~ -Oc;c)r) To: "Jack Hare (jackhari~~uadmin.slale.ak.us)~~ °~~ack_harli~cladmirl.state.al..tts-= CC: Tzd hram~r ~~-T EKramerl<<~~Forestoil.com=, Jack, In Disposal Injection Order #26, it states Forest is "limited to produced water from the Redoubt Shoal Oil Field separated at The Kustatan Production Facility until the confinement of disposal fluids and completion performance can be demonstrated and evaluated." Forest feels that this information has been supplied to AOGCC and asked for permission to injected other Class II fluids into KF#1. Please advise For+~st of the: change in status that vdi11 allow us to injection ~la:ss II fluids into KF#1. Thanks, Paula Inman Production Engineer Forest Oil Corporation (907) 868-2135 office (907) 317-8231 cell 1 of 1 10/6/2004 1:38 PM .x.16 ~~ i r l i 2 ~ i i :~ i t i ~ ~ y~ i~~ ~ ~ ? , ?, ~ „ r ~ ~ '~ + ~ ~ ~ ~' FRANK H. MURKOWSKI, GOVERNOR 4~' Y.3 ',xi ~i ~~ ...~ .~ ..., ..m..e~ ,~~>~ .rte .d "~ .~ ~+ ~-~-t7r~1aT OIL ~ ti0.~7 r 333 W. 7"' AVENUE, SUITE 100 CO~-7~RQ~iiOa` CO~jI~7SIOR ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 September 27, 2004 Proposals to Amend Underground Injection Orders to Incorporate Consistent Language Addressing the Mechanical Integrity of Wells The Alaska Oil and Gas Conservation Commission ("Commission"), on its own motion, proposes to amend the rules addressing mechanical integrity of wells in all existing area injection orders, storage injection orders, enhanced recovery injection orders, and disposal injection orders. There are numerous different versions of wording used for each of the rules that create confusion and inconsistent implementation of well integrity requirements for injection wells when pressure communication or leakage is indicated. In several injection orders, there are no rules addressing requirements for notification and well disposition when a well integrity failure is identified. Wording used for the administrative approval rule in injection orders is similarly inconsistent. The Commission proposes these three rules as replacements in all injection orders: Demonstration of Mechanical Integrity The mechanical integrity of an injection well must be demonstrated before injection begins, at least once every four years thereafter (except at least once every two years in the case of a slurry injection well), and before returning a well to service following a workover affecting mechanical integrity. Unless an alternate means is approved by the Commission, mechanical integrity must be demonstrated by a tubing/casing annulus pressure test using a surface pressure of 1500 psi or 0.25 psi/ft multiplied by the vertical depth of the packer, whichever is greater, that shows stabilizing pressure and does not change more than 10 percent during a 30 minute period. The Commission must be notified at least 24 hours in advance to enable a representative to witness mechanical integrity tests. Well Integrity 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 - Kupanzlc River Unit; Kuparuk River, Tabasco, Ugnu, West Sak 6 7 9 Fields AIO 3 -Prudhoe Bay Unit; Western Operating Area 6 ~ 9 AIO 4C -Prudhoe Bay Unit; Eastern Operating 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 7 9 AIO 8 -Middle Ground Shoal; Southern Portion 6 ~ 9 AIO 9 -Middle Ground Shoal; Central Portion 6 ~ 9 AIO 1 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 I S -West McArthur 5 6 9 C Affected Rules Injection Order "Demonstration of "Well Integrity "Administrative Mechanical Failure and Action" Integrity" Confinement" River Unit AIO 16 - Kuparuk River Unit; Tarn Oil Pool 6 7 10 AIO 17 - Badami Unit 5 6 8 AIO 18A -Colville River Unit; Alpine Oil Pool 6 7 11 AIO 19 -Duck Island Unit; Eider Oil Pool 5 6 9 AIO 20 -Prudhoe Bay Unit; Midnight Sun Oil Pool 5 6 9 AIO 21 - Kuparuk River Unit; Meltwater Oil Pool 4 No rule 6 AIO 22C -Prudhoe Bay Unit; Aurora Oil Pool 5 No rule 8 AIO 23 - Northstar Unit 5 6 9 IO 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 • • Affected Rules Injection Order "Demonstration of "Well Integrity _ "Administrative Mechanical Failure and Action" Integrity" Confinement" DIO 11 K - enai Unit; KU 24-7 2 3 4 DIO 12 B d - a ami Unit; WD- l, WD-2 2 3 5 DIO 13 N - orth 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; IIZU 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 Storage 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 g 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 5'14016 ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BUTTON FOR tNVOICE A[JORESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7th Avenue, Suite 100 ° Anchorage, AK 99501 PHONE Pc rvt 907-793-1221 mn~~ ~~~ ~ ~~„ /~_ l ~ I G L I ADVERTISEMENT REQUIRED: o Journal of Commerce October 3, 2004 301 Arctic Slope Ave #350 Anchorage, AK 99518 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWY. SPECIAL INSTRUCTIONS: ~ AFFIDAVIT OF PUBLICATION ~ United states of America State of ss division. Before me, the undersigned, a notary public this day personally appeared he/she is the Published at state of in said division and 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, who, being first duly sworn, according to law, says that of 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@admin.state:ak.us> Date: Wed, 29 Sep 2004 13:01:04 -0800 To: undisclosed-recipients:; BCC:. Cynthia B Mcver <bren_mciver@admin.state.ak.us> Angela ~'~'ebb <ang~_webb@adinin.slate.ak.us>, RobertE Mintz <robert mntz(u?la~~.state.ak.us>, C'hristne Hansen <c.hansen@iogcc.state.ok.us>, Terrie Hubble <hubbletl@bp.com>, Sondra Stewman <StewmaSD@BP.com> Scott & Camrny Taylor.<sta@ar~a alaska.net>, stanekj <stanekj@unocal.com>, ecolaw <ecolaw@trustees.org>, roseragsdale <rvseragsdale@ei.net>, trmjrl <trmjri@ot.com>, jbriddle <~briddle@marathonoil.eom>, rockhill ~rockhll~;aoga.arg>, Shaneg <shaneg@evergreengas.com>, jdariington <jdarlington@forestvil.com=>, nelsvn <knelson@petraleumnews.com>, eboddy ~cboddy@usbell.com>, Mark Dalton... <mark.dalton@hdrinc.com>, Shannon Dannelly <shannan.dc~nrtelly@;conocophillip~.eom>, "Mark P. Worcester" <mark.p.woreester@eonoeophillps.com>, "Jerry C Dethl~fs" ferry.c.dethlefs@conocophillips.com>, Bob <bob@inletkeeper.org>-, wd~~ ~~wd~ r~L~dnr.state.ak.us>; tjr <tjr@dnr.state.ak.us>, bbrteh <bhriteh@alaska.net>, mjnels~m ~`mjnelson(cilpurvingertz.com? Charles ODonnell <charles.o'donneil@veco.com>, "Randy L. Skiilern" <SkilleRL@BP.eom>, "Deborah J. Jones" <JonesD6@BP.corn>, "Paul G. Hyatt" <hyattpg@BP.com ~. "Steven R. Rassberg" <RossbeRS@BP.eom>, Lois <Iois@nletkeeper.org>, Dan Bross <kuacne«-s(cikuac.org=>, Garclon Pospisil <PospisG@BP.eom>, "Francis S. Sommer" <SommerFS~cLBP.com>, Mikel Schultz <Mikel.Schultz@BP.com:>, "Nick t~t~. Glover" <GloverN~V@BP.com>, "Daryl J. Kleppin" <KleppiDE@BP.cotn'>, '`Janet D. Platt" <PlattJD@BP.com>, "kosanne M. Jacobsen" <JacobsRM@BP:com~, ddonkel <ddonkel@cfl.rr.com>, C,ollins Mount <collns mount@revenue.state.ak.us@ mckay <mckay@gc;i.net>, Barbara F Fullmer <barbara.f.fiillmei•@conocophillips.com>, bocastwf <boeastwf@bp.cum=>, Charles Barker . <barker@usgs.gov>, doug_Schultze <doug_schultze@xtoener~T.com>, Hank Alford <hank.alford@exxonmabil.com>, Mark Kovac <yesnol@gci.net>; aspfoff <gspfoff@aurorapower.com>, Gregg Nady <gregg,nadyr shell.com>, Fred Steece <fred.steece@state.sd.us?, rcrotty <rcratty@ch2m.com~,,jejones <jejones(~iaurorapo~~rer.eam>, dapa <dapa@alaska.net>, jroderick <jroderick@ci.net>, eyancy <eyanc;y(~s~al-tite.net ~, "James 1VI.` Ruud" <fames.m.ruud@onocophiilips.com>, Brit'..Lively <mapalaska~ak.net=r, fah <jah@dnr.state.ak.tts>, Kurt E Olson <kurt ason@legis.state.ak.us=, buonojc <buonoje(ubp.cc-m>; Mark Hanley <mark hanley@nadarko.com>, Loren Leman'<:Loren_Ieman~a Qv~ .state.ak.us>, Julie Houle <julie_houle@dnr.state.ak.us>, John W Katz <jwkatz@sso.org~, Suzan J Hill ~suzan hill@dec.state.ak,uS>, tablerk <tablerk@unocal.com>, Brady <brady@aoQa.org>, Brian Havelock <beh@dnr.State.ak.us>, bpopp <bpopp@boraugh.kenai.ak.us%. Jim ~~'hite <jimwhite@satx.t~.eom>,~"JolrnS. H~worth" <jo~i.s.haworth~:exsonmobil.com>, many <marty@rkindustrial.com>, ghammons <ghamrnons@aol.com%, rmclean <rmclean@pobox.alaska.net>, mkm7200 <mkm7200@aol.com%, Brian Gillespie <ifbmg@uaa.alaska.edu> David L Boelens <dboelens(c%~.aurorapvwer.com>, Todd Durkee <TDLTRKEE@KMG.cc»n>, Gary Schultz <gary Schultz@dnr.state.ak.u5>, ~~~avne Rancier <RANCIER@petro-canada.ca>, Bill Miller <BiII Mille@;xtoalaska.corn~, Brandon Ga~tian <bgagnon@hrenalaw.com=>, Paul Winslow <pmwnsiow@forestoil.cvm?, Gam' Catron <catrangr@bp.corn>, Sltarmaine Copeland <copel~sv(u)bp.com=~, Suzanne alle~:an <sallexan@heimenergy.com>, Kristin Dirks <kristin dirk@i dnr.state.ak.us=>, KayneIl Zeman. <kjzeman@marathonoil.cont>, John Tower <John.Towtr@eia.doe.go`- =, Bill Fowler <Bill_Fowler@anadarka.COM>, Vaughn S~c!artz <vaughn.s~~artz~irbccm.com>, Scott Cranswick 1 of 2 9/29/2004 1:10 PM Public Notices • • <scott.cranswick@mms.gov>, Brad McKim ~mckimbs@BP.com> Please find the attached Notice and Attachment for the proposed amendment of underground injection orders and the Public Notice Happy Valley #14. Jody Colomhie Content-Type: application/msword ' ..Mechanical Integrity proposal.doc ' Content-Encoding: base64 Content-Type: appiicatiori/msword Mechanical Integrity oiF Wells Notice.doc Content-Encoding: base64 ' Content-Type: applicatian/msword HappyValleyl0_HearngNatice.doc Content-Encoding: base64 -_ _- ______ '~ 2 of 2 9/29!2004 1:10 PM Public Notice • Subject: Public Notice From: Jody Colombie <jody colombie@admin.state.ak.us> Date: Wed, 29 Sep 2004 12:55:26 -0800 To: legal@alaskajournal.com " Please publish the attached Notice on October 3, 2004. Thank you. Jody Colombie Content-Type: application/msword !Mechanical Integrity of Wells Notice.doc Content-Encoding: base64 __ _ _. _ ___ _.___ _ __ Content-Type: application/msword Ad Order form.doc- Content-Encoding: base64 __ ___ 1 of 1 9/29/2004 1:10 PM Cit o Petroleum C ti g orpora 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 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 Barrow, AK 99723 PO Box 129 Barrow, AK 99723 ;[Fwd: Re: Consistent Wording for Injection~rs -Well Integrity Subj;eet: {Fwd: Re: Consistent Wording for Tnjeetion Orders - From John 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)1 ------- 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 regg(a~admin.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 regg(ciadmin.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 rean(cadmin.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~rs -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 annulij; 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> 'I Commissioner Alaska Oil & Gas Conservation Commission 2 of 2 10/2/2004 4:07 PM ;[Fwd: Re: Consistent Wording for Injection ~s -Well Integrity ... . Subject: [Fwd: Re: Consistent Wording for Injection Orders--.Well Integrity (Revised)] From: John Norman <john_norrnan@admin.state.ak.us> Date.: Fri,. Ol Oct 2004 l 1:08:55 -0800 To: 3ody J Colombe,<Jody_colombie@admin.state.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~law.state.ak.us> To:dan seamount(a,admin.state.ak.us, jim reggna,admin.state.ak.us, john normannu,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(uadmin.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 Ivlechanical 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 Wording for Injection~rs -Well Integrity ... i , - 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> ' i Commissioner Alaska Oil & Gas Conservation Commission 'Content-Type: application/msword ;Injection Order language - questions.doc 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 Tubing/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 Tubin /Casing Annulus Mechanical Irate rity The mechanical integrity of an injection well must be demonstrated before injection begins, at least once every four nears thereafter (e~ccept at least once every two years in the case of a slurry injection well} and. before returning a t~~ell to sen•ice. follo~vin~ a workover affecting mechanical integrity ~,~-' ~~* rv ~+ ,;,r~ ~T ~ •a,; ~ ~ ,+' ~ ~' V ~. tTnless an alternate means is approved by the Commission mechanical integrity must be demonstrated by a tubing pressure test using a ~ ?vfl-surface pressure of~~~ 1500 psi or 0.25 psi/ft multiplied by the vertical depth, whichever is greater, that shows stabilizing pressure that doesand~ not change more than 10°~ percent during a 30 minute period. -4~y The Commission must be notified at least 24 hours in advance to enable a representative to witness pressure tests. Well Irately Failure and Confinement £YCet~t as other~~;•ise provided in this rule Tthe tubing, casing and packer of an injection well must c~eS.~~tt~~maintain integrity during operation. «'henever any pressure communication leakage or lack of injection zone isolation is indicated by injection rate o ep ratina~ressure obscn~ation, test, survey lag or other evidence the operator nshall immediately notify the Commission and submit a plan of corrective action on a Form 10-403 for Commission approval. ~x~i~~f`tir-?Ti r•7fa~=:lpcai•• *' ` N '~ ~ ~ + , * *, ~ The ot~erator shall shut i.n theJ welt if so directed by the Commission The operator shall shut in the ~j-e11 «•ithout a«•aiting a response from the Commission if continued operation would be unsafe or would threaten contamination of fresh~~~ater>=f rh~x~-µ~ n~~r~ * + ~' •1~ +• +' +'t +t. ~auu m Z J V zLI1/1 -~<LT.irCCL. Cam'"' ' +' " ~ ' '' * • - ~ Until corrective action is successfully con le~ted, 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]] Subiect: [Fwd: Re: [Fwd: AOGCCProposed WI Language for Injectors]] From.: Winton Aubert <winton aubert@admin.state.ak:us> Date% Thu, 28 Oct :2004 09:48:53 -0$00 Ta: JodyJ Colombie <jolly_caloinbe@admin.state.akus> 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: I 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 Lame 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:;~ Sent: Wednesday, September 29, Subject: Public Notices dy colombie@admin.state.ak.us 2004 1:01 PM 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 ~`15 Re: KF #1 Class II disposal configuration • Subject: Re: KF #1 Class II disposal confi~~uration From:.1o11n Hartz ~~ jack_hartz a admin.state.ak.us=~ Date: `l~uc, OS Oct 200 15:54:22 -08011 To: ['aula [nn~an =PRinman~ufiorestoil.com=~ C'C: Thomas l~ '~~lzunder <lon~n~aundcr ~~%Zdmin.stale.~~k.us%. Stephen T Davies <steve da~~ies~u.admin.slate.akus-~, Ted KI'a1711,1" `;"hEKramerrciforestoil.com Paula, Thanks for the heads up on injection rates. Was KF #1 run continuously or only part of each day maybe 1/2 days on the average? Also, What type of fluids and their source are anticipated for KF #1? Jack Hartz Jack, You have found an error in our annual report. Thank you. At no time in the past yr has Forest exceed the 2 bpm injection rate for KF#1. We inadvertently miscalculated hours of injection. The hours of injection are actually double the amount used in our rate calculation which generated the graphs. Forest will make corrections to the annual report to reflect the accurate data and submit it to the AOGCC for review tomorrow (10/06/04). Please advise if you agree with this timeframe and solution. Sorry for any inconvenience. Paula Inman Production Engineer Forest Oil Corporation (907) 868-2135 office (:1„07) 317-8231 cell -----~riginal~tessage----- .From: John Hartz [mailto:jack hartz~admin.state.ak.us] Sent: Tuesday, October 05, 2004 11:21 AM To: Paula Inman Cc: Thomas E Maunder; Stephen F Davies Subject: Re: KF #1 Class II disposal configuation Paula, We have been evaluating the disposal injection performance since workover ended 8/22/03, step rate test 8/21/03, and temp logs form 9/15/03. The data shows fluids to be contained while injecting clear produced fluids. Is there any other data besides that in the surveillance report to look at? On October 10, 2003 AA DIO 26.002 allowed injection rate to increase to 3 bpm and a temperature warm back survey was required within 60 days of the rate increase. Was that survey done? Also it appears disposal rates were increased to 4 bpm from October through January 2004. What type of Class II fluids are planned for KF #1? This is important 1 of 2 10/6/2004 1:39 PM Re: KF # 1 Class II disposal configuration whether they are produc~fluids or mud, cuttings etc. • Thanks, Jack Hartz Paula Inman wrote: Jack, In Disposal Injection Order #26, it states Forest is "limited to produced water from the Redoubt Shoal Oil Field separated at The Kustatan Production Facility until the confinement of disposal fluids and completion performance can be demonstrated and evaluated." Forest feels that this information has been supplied to AOGCC and asked for permission to injected other Class II fluids into KF#1. Please advise Forest of the change in status that will allow us to injection Class II fluids into KF#1. Thanks, Paula Inman Production Engineer Forest Oil Corporation (907) 868-2135 office (907) 317-8231 cell __ Jack I-1artz, P.E. <_iack hartz~r~admn.state.ak.us> Alaska Oil & gas Conservation Commission _ __ __ __. 2 of 2 10/6/2004 1:39 PM • F O R E S T O t L C O R P O R A T I O N .310 ~~~cY~r~~t • ~=~~l~ i00 Y , ~j/ ~ ~JO%> ?.i8-,3'«%0 • .907) 25d'-860.1 (r~rra) 1 ' October 6, 2004 ' Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, Alaska 99501 Attn: Mr. Jack Hartz Re: Kustatan Field #1 -Corrected Annual Report 2003-2004 Dear Mr. Hartz, c ~~~ ~ C`f V ~ - (~ ~~ ~ 2~ 3 This report is to ~ e the Annual Repor# submittal July 1, 2004. tt was brought to our ~I' attention by AOGCC that we had reported exceeding the 2 bpm restrictions during the months of October 2003 to January 2004. When in fact, at no time during the specified time of the annual report did Forest exceed the 2 bpm rate. I'' It is our intention to increase the rate as of October 8, 2004 to 3 bpm and perform the warm back survey on October 12, 2004. ' If there are any questions, please contact me at 907-868-2137. ' Sincerely, Ted E. Kramer ' Production Manager Forest Oil Corporation OCT r~ ' 20(~~ Alaska a.»: , .. _ ~ ....; _sur3,~iSSi€3i~ 1~n~hr~r8ge it i~ AOGCC KF #1 Apr-03 36,835 Ma -03 89,264 Jun-03 69,237 Jul-03 44,416 Au -03 12,680 Se -03 37,810 Oct-03 36,660 Nov-03 40,410 Dec-03 44,457 Jan-04 24,180 Feb-04 - Mar-04 - Apr-04 1,380 Ma -04 " 9,630 Total 446,959 • Forest Oil Corporation Kustatan Field #1 Yearly Injection Report -Produced Water April 1, 2003 to May 31, 2004 • , AOGCC Monthly Injection Volume ° 36,835 bbls 5,000 4, 500 4,000 3, 500 3, 000 .N C. d N 2,500 m a 2,000 1,500 1,000 500 0 3/30/2003 K1 Injection Pressure and Rate April 2003 • Wellhead Pressure ^ Annulus Pressure + Rate 3 2.5 2 1= Q 1.5 ea 1 0.5 0 5/4/2003 • • 4/4/2003 4/9/2003 4/14/2003 4/19/2003 4/24/2003 4/29/2003 Time AOGCC Monthly Injection Volume = 89,264 bbls 6,000 5,000 4,000 L p 3,000 L a 2,000 1,000 0 4/29/2003 Kl Injection Pressure and Rate May 2003 • Wellhead Pressure ^ Annulus Pressure -~-Rate BPM 5 4.5 4 3.5 3 d 2.5 a 2 1.5 I •i 0.5 0 6/3/2003 5/4/2003 5/9/2003 5/]4/2003 5/19/2003 5/24/2003 5/29/2003 Time AOGCC Monthly Injection Volume = 69,237 bbls 6000 5000 Kl Injection Pressure and Rate June 2003 6 • 5 4000 ~. 0 3000 a~ ~, a 2000 4 w 3 2 1000 0 5/29/2003 • Wellhead Pressure ^ Annulus Pressure -~- Rate BPM 7 1 0 7/3/2003 6/3/2003 6/8/2003 6/13/2003 6/18/2003 6/23/2003 6/28/2003 Time AOGCC Monthly Injection Volume = 44,416 bbls 6000 5000 K1 Injection Pressure and Rate July 2003 3 2.5 4000 N Q d ~ 3000 N d a` 2000 1000 0 6/27/2004 • Wellhead Pressure ^ Annulus Pressure --•- Rate BPM 3.5 2 £ Q m ... t0 1.5~ 1 • • 0.5 0 8/6/2004 7/2/2004 7/7/2004 7/12/2004 7/17/2004 7/22/2004 7/27/2004 8/1/2004 Time ~ ~ ~ ~ ~ ~ ~ IIII~ ~ ~ ~ ~ I~ I~ ~ ~ ~ ~ ~ AOGCC Monthly Injection Volume = 12,680 bbls 4000 3500 3000 2500 rn a m ~ 2000 N d a 1500 1000 500 0 7/28/2003 K1 Injection Pressure and Rate August 2003 • Wellhead Pressure ^ Annulus Pressure ~ Rate 2.5 2 1.5 E a m ... 1 0.5 0 9/6/2003 •I • 8/2/2003 8/7/2003 8/12/2003 8/17/2003 8/22/2003 8/27/2003 9/1/2003 Time .. ,.. .~ ........... ....... l AOGCC Monthly Injection Volume = 37,810 bbls 4,000 3,500 3,000 2,500 a~ L .7 2,000 i.i 0. 1,500 1,000 500 0 8/27/2003 KF1 Injection Pressure and Rate Sept 2003 • Wellhead Pressure ^ Annulus Pressure -~ Rate BPM 2.5 2 1.5 +.+ RS W 1 0.5 0 10/6/2003 9/1/2003 9/6/2003 9/11/2003 9/16/2003 9/21/2003 9/26/2003 10/1/2003 Time AOGCC Monthly Injection Kl Injection Pressure and Rate October 2003 • Wellhead Pressure Volume = 36,660 bbls ^ Annulus Pressure ~ Rate BPM s,~uu 3,000 2,500 2,000 ~. 0 ~, A, 1,500 1,000 500 9/26/2003 2.50 2.00 1.50 rx 1.00 0.50 O I * . . . . . . . . . . . i ~ . . i . . . . i . . . . . . . ~ ~ 1 0.00 10/ 1 /2003 10/6/2003 10/ 11 /2003 10/ 16/2003 10/21 /2003 10/26/2003 10/31 /2003 Time 11 /5/2003 • • ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ r ~ ~ ~ ~ ~ ~ AOGCC Monthly Injection Volume = 36,660 bbls s,~uu 3,000 2,500 2,000 a~ ~. 0 ~. a 1,500 1,000 500 0 • Wellhead Pressure Kl Injection Pressure and Rate November 2003 ~ Annulus Pressure -~- Rate BPM 2.50 2.00 1.50 a 1.00 0.50 • t ~ ~ i i . . . . . . i . ~ ~ ~ . . ~ ~ ~ ~ ~ ~ . . . . ~ ,~ ~ ~ 0.00 10/26/2003 10/31 /2003 11 /5/2003 11 / 10/2003 11 /I 5/2003 11 /20/2003 11 /25/2003 11 /30/2003 Time 12/5/2003 3,500 3,000 2,500 2,000 L a L a 1,500 1,000 500 0 • Wellhead Pressure AOGCC Monthly Injection Kl Injection Pressure and Rate December 2003 ^ Annulus Pressure Volume = 44,457 bbls -~ Rate BPM 2.00 a • •-~: a---a---i---3--a---~-teams ~~ • a -? +- a--~ * a a~-s~t~ 2.00 2.00 2.00 2.0o a i I ~ 2.00 I i 2.00 2.00 2.00 11 /25/2003 11 /30/2003 12/5/2003 12/ 10/2003 12/ 15/2003 12/20/2003 12/25/2003 12/30/2003 Time 1 /4/2004 • • ...~ ...~ .. ~ ........... .... .. ~. l AOGCC Monthly Injection Volume = 24,180 bbls 3,000 2,500 2,000 L "~ 1,500 L 1,000 500 0 12/30/2003 Kl Injection Pressure and Rate January 2004 • Wellhead Pressure ^ Annulus Pressure --.- Rate BPM 2.50 2.00 1.50 N+ W 1.00 0.50 0.00 2/3/2004 •i • 1 /4/2004 1 /9/2004 1 / 14/2004 1 / 19/2004 1 /24/2004 1 /29/2004 Time ~ ~ ^~ ^~ ~ ~ ~ ~ r ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ AOGCC Monthly Injection Volume = 1,380 bbls .s,uuu 2,500 2,000 N Q d w 1,500 m a 1,000 500 K1 Injection Pressure and Rate April 2004 • Wellhead Pressure ^ Annulus Pressure -•- Rate --~- 3.00 3/29/2004 2.50 2.00 1= Q 1.50 r ea 1.00 0.50 p 0.00 I ,I ~. I i~ 4/3/2004 4/8/2004 4/13/2004 4/18/2004 Time 4/23/2004 4/28/2004 5/3/2004 • • ~ I~ ~ I• ~ ~ ~ I~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ AOGCC Monthly Injection Volume = 9,630 bbls 3,500 3,000 2,500 .Q 2,000 m a 1, 500 1, 000 500 0 4/28/2004 K1 Injection Pressure and Rate May 2004 • Wellhead Pressure ^ Annulus Pressure ~-Rate 2.5 2 1.5 E a .n ai r GC 1 0.5 0 6/2/2004 • • 5/3/2004 5/8/2004 5/13/2004 5/18/2004 5/23/2004 5/28/2004 Time F2 ~ S T C~ E ~.. ~: ~R P ~ F~ ,~ ~ ' Q N ~~ ,_;, ~> ~~ ~~; • ~ ~;: ,r ~ ' r'~~nr/c--rrrf( <'Cl~r;,lfi .~.~;~('l July 1, 2004 Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, Alaska 99501 Attn: Mr. Tom Maunder Re: Kustatan Field #1 -Annual Report Dear Mr. Maunder, This report is in response to the requirements for annual surveillance reporting on the Kustatan Field #1 Class II disposal well. Rule #5 of the #>ic~°t Oar a~26 requires this surveillance. This well has been used for disposal of Class II produced water from Kustatan Production Facility. The well has been operating within what we consider normal parameters and has shown no sign of integrity problems. If there are any questions, please contact me at 907-868-2137. Sincerely, Ted E. Kramer Production Manager. Forest Oil Corporation ~~~~~ V ~® SEP 2 ~ 2004 Alaska Oil & Gas Cons. tommission pncharage • • • Forest Oil Corporation . Kustatan Field #1 Yearly Injection Report -Produced Water April 1, 2003 to May 31, 2004 AOGCC KF #1 A r-03 36,835 Ma -03 89,264 Jun-03 69,237 Jul-03 44,416 Au -03 12,680 Se -03 37,810 Oct-03 36,660 Nov-03 40,410 Dec-03 44,457 Jan-04 24,180 Feb-04 - Mar-04 - Apr-04 1,380 Ma -04 9,630 Total 446, 959 • • • AOGCC Monthly Injection Volume = 36,835 bbls 5,000 4, 500 4,000 3,500 3,000 .N d N 2,500 N d 2,000 1, 500 1,000 500 0 • K1 Injection Pressure and Rate April 2003 • • • • • ~ • ~ ~ • ^ ^ 3/30/2003 4/4/2003 4/9/2003 4/14/2003 4/19/2003 4/24/2003 4/29/2003 Time • Wellhead Pressure ^ Annulus Pressure -•- Rate 3 2.5 2 tr 1.5 1 0.5 0 5/4/2003 •i ~i • AOGCC Monthly Injection Volume = 89,264 bbls 6,000 5,000 4,000 L 3,000 L a 2,000 1,000 0 4/29/2003 • Kl Injection Pressure and Rate May 2003 I~ U • Wellhead Pressure ^ Annulus Pressure -~- Rate BPM ~ • ^ ^ ^ ^ ^ ^ ^ 5 4.5 4 3.5 3 2.5 2 1.5 I 0.5 0 5/4/2003 5/9/2003 5/14/2003 5/19/2003 5/24/2003 5/29/2003 6/3/2003 Time •i AOGCC Monthly Injection Volume = 69,237 bbls 6000 5000 4000 L 3000 a~ L 2000 100D 0 5/29/2003 • K1 Injection Pressure and Rate June 2003 ! ~ ~~ • Wellhead Pressure ^ Annulus Pressure -•-- Rate BPM • • ^ ^ ^ ^ ^ ^ 7 6 5 4 NNw W 3 2 1 0 6/3/2003 6/8/2003 6/13/2003 6/18/2003 6/23/2003 6/28/2003 7/3/2003 Time • • • AOGCC Monthly Injection Volume = 44,416 bbls 6000 5000 4000 .N Q ~ 3000 N d a` 2000 1000 3.5 3 2.5 2 ~ a d 1.5~ 1 • 0.5 i t t~~1r'_'t ~-~f' 6/27/2004 7/2/2004 7/7/2004 7/12/2004 7/17/2004 7/22/2004 7/27/2004 8/1/2004 8/6/2004 K1 Injection Pressure and Rate July 2003 • Wellhead Pressure ^ Annulus Pressure -•- Rate BPM Time • • AOGCC Monthly Injection K1 Injection Pressure and Rate August 2003 Volume = 12,680 bbls 4000 3500 3000 2500 .N Q d 2000 N N d L a 1500 1000 500 2.5 2 1.5 a a ai R 1 0.5 7/28/2003 8/2/2003 8/7/2003 8/12!2003 8/17/2003 8/22/2003 8/27/2003 9/1/2003 9/6/2003 • Wellhead Pressure ^ Annulus Pressure -.-Rate • Time s AOGCC Monthly Injection Volume = 37,810 bbls 4,000 3,500 3,000 2,500 L 2,000 L a 1,500 1,000 500 0 ~ • • Wellhead Pressure KF1 Injection Pressure and Rate Sept 2003 ^ Annulus Pressure -~~k-Rate BPM T ~~i - _ ~_+l . i 'u 8/27/2003 9/1/2003 9/6/2003 9/11/2003 9/16/2003 9/21/2003 9/26/2003 10/1/2003 • • • • • ` ~~~ • ` , ,, 4 3.5 3 2.5 G 2~ 1.5 1 0.5 --!_. 0 10/6/2003 Time • • • AOGCC Monthly Injection Volume = 36,660 bbls 3,500 3,000 2,500 2,000 L .7 H y L 1,500 1,000 500 9.00 8.00 7.00 6.00 5.00 w R 4.00 3.00 2.00 • 1.00 Kl Injection Pressure and Rate October 2003 • Wellhead Pressure ^ Annulus Pressure -+-- Rate BPM 0 0.00 .9/26/2003 10/ 1 /2003 10/6/2003 10/ 11 /2003 10/ 16/2003 10/21 /2003 10/26/2003 .10/31 /2003 11 /5/2003 Time • • AOGCC Monthly Injection Volume = 36,660 bbls 3,500 3,000 2,500 • Kl Injection Pressure and Rate November 2003 4 3.5 3 2,000 L y L QI 1,500 1,000 500 2.5 w W 2 1.5 1 0.5 0 0 10/26/2003 10/31 /2003 11 /5/2003 11 / 10/2003 11 / 15/2003 11 /20/2003 11 /25/2003 11 /30/2003 12/5/2003 Time • Wellhead Pressure ^ Annulus Pressure -+- Rate BPM 4.5 • • AOGCC Monthly Injection Volume = 44,457 bbls 3,500 3,000 2,500 2,000 L a 1,500 1,000 500 • Kl Injection Pressure and Rate December 2003 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 • p 0.00 11 /25/2003 11 /30/2003 12/5/2003 12/10/2003 12/ 15/2003 12/20/2003 12/25/2003 12/30/2003 1 /4/2004 Time • Wellhead Pressure ^ Annulus Pressure -~- Rate BPM • • • 3,000 2,500 2,000 L 1,500 L a 1,000 500 AOGCC Monthly Injection Kl Injection Pressure and Rate January 2004 • Wellhead Pressure Volume = 24,180 bbls ^ Annulus Pressure -•- Rate BPM 30.00 25.00 20.00 15.00 ~ 10.00 5.00 0 _ 0.00 12/30/2003 1/4/2004 1/9/2004 1/14/2004 1/19/2004 1/24/2004 1/29/2004 2/3/2004 Time i AOGCC Monthly Injection Volume = 1,380 bbls 3, 000 ~: z j ~~ ; {\ 1~t-. ~~ ki. a X ;~. ~ 2,500 ' ~ ~ y ; y : ., ~ R ,,, r>~, F~ ` _~: ., ~~ , ~a~a ~ ., f~ . ~ ; ,~ ~{ ;' ~~ ~ ~ 2,000 _ .. "~~ _.... _ . ,_ _ ~ _. • • K1 Injection Pressure and Rate April 2004 X1 ', _ ~. { ~ 1, 500 Z},~ - ~ ~ i ~3 - t, 1 q N ,' ti a ~. t5 f t ~ 1.; } f y'~ ~ ~ ~. r t" l t~{ ( T ~~ y . ~ ~ ~a 1,000 `' {~ ,~ ~ . ~ , , , ,. ~~. `4 ; ilk ,fit ,jai 500 ..+ ~ r-. '` y~i ' Y'. i .I ~ Y: 0 3/29/2004 4/3/2004 4/8/2004 4/13/2004 4/18/2004 • Wellhead Pressure ^ Annulus Pressure -*- Rate .__r~ ,. .,. 3 4/23/2004 4/28/2004 2.5 2 a 1.5 ~/~y li 1 0.5 -~--~- 0 5/3/2004 • • Time AOGCC Monthly Injection Volume = 9,630 bbls 3, 500 3,000 2, 500 a 2,000 m N N a 1,500 • K1 Injection Pressure and Rate May 2004 2 1.5 it a .o d 1 1, 000 500 0 4/28/2004 .... i ~ I f t • Wellhead Pressure ^ Annulus Pressure -+- Rate 2.5 0.5 0 6/2/2004 5/3/2004 5/8/2004 5/73/2004 5/18/2004 5/23/2004 5/28/2004 Time X14 • F O R E S T O I L C O R P O R A T I O N •' 390 C~~~C?~~.P! . eJ~ur'tP X00 Y ,.~~ C>~rzr.~i,2~~~~, ~?xLCTZ.ia. 9950'/ ~90~~ ?.58-8600 • ~907~ ,258-8609 ~C~az~ September 30, 2003 Tom Maunder Alaska Oil and Gas Conservation Commission 333 W. 7~' Avenue Suite 100 Anchorage, Alaska 99501 Re: Kustatan Field # 1 -Administrative Approval Change Requested Dear Mr. Maunder: On August 15, 2003, Forest Oil Corporation (Forest) was granted permission to inject class II fluids into KF #1 from 6,270' to 6,370' MD and from 6,385' to 6,475' MD. This administrative approval to the previously approved DIO 26, was subject to the following conditions: 1. The well must pass a mechanical integrity test as required by Rule 3 of DIO 26. 2. A baseline step rate test must be performed prior to sustained injection. 3. Forest must perform a temperature survey within 30 days of initiating disposal into the new interval(s). 4. Injection must not exceed 2 barrels per minute until the Commission is satisfied the disposed water is isolated deeper than the base of fresh water calculated to be 6,150 feet (MD) in the well. Following the addition of the perforated intervals from 6,270' to 6,370' MD and from 6,385' to 6,475' MD, Forest conducted a step rate infectivity test on these Lower Tyonek intervals (tested 8-21-03). The test was conducted by injecting produced water at increasing rates from 0.5 barrels per minute (bpm) to 4.8 bpm. Attachment #1 is a plot of injection rates and associated injection pressures. The test clearly shows that these two Tyonek intervals are capable of taking fluids at rates up to 4.8 bpm. The wellhead injection pressure at 4.8 bpm was 3,430 psi. Following the infectivity test, disposal of produced Redoubt water commenced at rates less than or equal to 2.0 bpm. After approximately 25 continuous days of injection, Forest ran a temperature survey in the KF #1 wellbore. Attachment #2 and #3 show the temperature surveys while running in the hole and while pulling out of the hole, respectively. Both surveys (dated 9-15-03) show a decrease in temperature in the intervals adjacent to the added perforations (6,270' to 6,370' MD and from 6,385' to 6,475' MD). Forest believes that this demonstrates that the injected water has stayed in zone and is not moving up hole. There are no indications that the injected water have or will encounter the fresher water sands above 6,150' MD. Having proved the mechanical integrity of the wellbore and having demonstrated that the perforated intervals are capable of handling disposal fluids at higher rates without damage to shallower freshwater sands, Forest Oil Corporation is requesting that the 2 barrels per minute condition be lifted from the DIO 26-001. Sincerely, 6-~~„/~ ~ ~~~~-- Attachment 1 Infectivity Test Attachment 2 Going into K#1 Pressure Profile Ted E. Kramer Attachment 3 Pulling out K#1 Pressure Profile Production Manager Attachment 4 AOGCC Mechanical Integrity Test Maunder Ltr re K#l.doc 09/30/03 Attachment #1 Kustatan Field #1 Infectivity Test (8-21-03) i• i• 5,000 4,500 4,000 3,500 fl. 3,000 m L 2,500 a a ~ 2,000 a 1,500 1,000 500 0 0.00 5.0 4.5 4.0 3.5 3.0 a d ~+ 2.5 ~ c 0 r 2.0 1.5 1.0 0.5 0.0 7.00 1.00 2.00 3.00 4.00 5.00 6.00 Time (hours) Forest Oil ~ Well: ~ KF #1 ~ Field: ~ Kustatan Pressure (psia) 0 400 800 1200 1600 2000 2400 2800 3200 3600 4000 0 k _ - --- 13 3/8" Casing -_ Pressure-Temperature Profile --- 500 __ _ 1. Going in hole to 6500' RKB -- --- 2. Well Shut-In - _ ~- _ __ 1000 __ -- 1500 - _ 2000 2 - -- _ 500 m -- _ _ _ _ - ~1 3000 - ~ - 9 5/8" Casing _:::-_:_ - ---- _._..-_ - - ~ 3500 ~ - -- - ~ - -- - - - ~.~+ ~ -- 4000 D --- 4500 - - 5000 2 7/8" Tubing - - 5500 6000 - -- _ _ - 650 _ 7 5/8" Liner -- _ -_ 7000 50 55 60 65 70 75 80 85 90 95 100 105 110 115 120 Temperature (Deg. F) Pressure - Perfs ~*~ 13-3/8" casing f9-5/8" casing -~2-7/8" tubing t7-5/8" liner Temperature Attachment #2 • • Forest Oil Well: KF #1 Field: Kustatan 09/15/03 Pressure (psia) 0 400 800 1200 1600 2000 2400 2800 3200 3600 4000 0 Pressure-Temperature Profile 13 3/8" Casing -_ -_ 1. Pulling out of hole from 6500' RKB 500 -_:; __ - - - 2. Well Shut-In - _- - --- -__..- -_ 3. Making Stops 1000 - - _- - - ----- - - 1500 _ - - - - _ - 2000 - _ 2500 m __ -_- ----. _ - __ ~ 3000 .~. - - - a.+ - - - d __- - - __ -- ~ 3500 9 5/8" Casing - _. ... __ -- - - - t - ~+ - ~ 4000 _ -_ -- d - _ 0 _.. __ __._ - _ _ - - 4500 5000 _ _ -- -_ 5500 2 7/8" Tubing _ -_ _- - - 6000 - _ 650 - 7 5/8" Liner - - _-- 7000 - --- --- -- - - - - - --- 50 60 70 80 90 100 110 120 Temperature (Deg. F) Pressure - Perfs ~°° 13 3/8" casiing f9 5/8" casing -rte-2 7/8" tubing +7 5/8" liner Temperature Report date: 09/29/2003 Attachment #3 • • Entail to: Bob Fledcensteirt~admirt.state.ak.us; Jim_Regg~admirt.state,ak.us OPERATOR: FIELD /UNIT /PAD: DATE: OPERATOR REP: AOGCC REP: Packer Depth fTVD-n.) Pretest tni6a! 15 Min. 30 Mirf. WeN f'.T.D. K 1 '12300 Type Irtj. T leG! N Tubing S Teet 1540 Caai 50 75 4.600 75 1,600 75 ~ irltetve P Notes: WeU Tynr.+ Inj Tubirl9 IrtteNd p.T.D. T test Test psi Cas P1F Nobas: Well Type Inj. Tubing tnterva P.T.D. T tes Test i Casi P~ Nefwee Well Type Inj. Tubing IMeNa P.T.D. Y to Teet psi Cali _._.. P!F •-- Notee: Welt T in". TVD Tubing __ _. tnterva P.7.~. T le Test sa Casi P!F Notes: STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMiSSiON Mechanical Integrity Test Forest Ol Corp. Kustatan Field # 1 oaiaoioa Don Jones Test Details: Toga) bbis pumped = 267, after test, total bbls bled beak = 270 TYPE INJ Codes F = Fresh Water Inj G =Gas Inj S ~ Salt Water Inj N =Nat Injecting TYPE TEST Codes M = Annulus Monitoring P =Standard Pressure Teat R = Internal Radioactive Tracer Survey A =Temperature Artomaty Survey D = Oifrerential TernQerature Test INTERVAL Codea I -1nK~at teat 4 =Four Year Cyde V =Required Dy Variance T =Teat during VYwttuvar O =Other (deacriUe in notes) MIT Report Form Rovited: 06/10M2 MIT porm 07.17-03 ncl is= to ~nt~a Ndlblsn~i LT599LLL06 0b~L0 6002/ZZISO X13 Re: Forest Oil Corporation K-1 Disposal Well y Subject: Re: Forest Oil Corporation K-1 Disposal Well Date: Fri, 26 Sep 2003 13:27:38 -0800 From: Tom Maunder <tom maunder@admin.state.ak.us> To: Ted Kramer <TEKramer@forestoil.com> CC: "Jim Regg (E-mail)" <jim_regg@admin.state.ak.us>, John D Hartz <jack_hartz@admin.state.ak.us> ~I~.~~ -1G,~,~-fi`~.t~. Ted, This email acknowledges receipt of the most recent temperature survey for the K-1 disposal. We have completed our review of the information. If it is Forest's desire to increase the allowable injection rate on the well, it is necessary to submit a letter requesting an administrative approval (AA) to the injection order. Since the new perfs and 2 bbl/min rate were authorized by an AA, changing the rate will require another. This shouldn't be any "big deal". Submitted with the letter request should be a technical analysis of the temperature survey and the step rate injection operation with regard to the new perforations. Please call with any questions. Tom Maunder, PE AOGCC Ted Kramer wrote: > Tom and Jim, > Our records show that the K-1 was put back on injection on 8-24-03. Since > then, we have injected 43,500 BW into this well, with 1,560 of those barrels > being injected just prior to the running of the temperature survey. > I spoke to Rob Stinson about the completion report for K-1. Rob advised > that he had sent over a hard copy showing the well bore schematic. I have > attached a tiff copy of that report. > Please call me with any questions or concerns. > «AANCFAXIOOOlODF.TIF» > Ted Kramer > Production Manager > Forest Oil Corporation - Alaska > Phone (907) - 868-2137 > Fax. (907) - 258-8601 > Name: AANCFAX100010DF.TIF > AANCFAXIOOOIODF.TIF Type: TIFF Image (image/tiff) > Encoding: base64 Tom Maunder <tom_maunder ~,admin.state.ak.us> '' Sr. Petroleum Engineer Alaska Oil and Gas Conservation Commission 1 of 2 9/27/2003 2:07 PM Re: Forest Oil Corporation K-1 Disposal Well • • 2 of 2 9/27/2003 2:07 PM Forest Oil-Corporation K-1 Disposal Well Subject: Forest Oil Corporation K-1 Disposal Well Date: Wed, 24 Sep 2003 15:12:09 -0600 From: Ted Kramer <TEKramer@forestoil.com> To: "Tom Maunder (E-mail)" <tom_maunder@admin.state.ak.us>, "Jim Regg (E-mail)" <jim_regg@admin.state.ak.us> Tom and Jim, Our records show that the K-1 was put back on injection on 8-24-03. Since then, we have injected 43= 500 BW into this well, with1.560 of those barrels being injected just prior to the running of the temperature survey. I spoke to Rob Stinson about the completion report for K-1. Rob advised that he had sent over a hard copy showing the well bore schematic. I have attached a tiff copy of that report. Please call me with any questions or concerns. «AANCFAX100010DF.TI F» Ted Kramer Production Manager Forest Oil Corporation -Alaska Phone (907) - 868-2137 Fax. (907) - 258-8601 Name . AANCFAX100010DF.TIF Type Encoding AANCFAX100010DF.TIF TIFF Image (image/tiff) base64 1~ 1 of 1 9/24/2003 1:38 PM 09J24/2003 13:06 FAX 907 258 8601 FOREST OIL ALASKA Kustat,~ Fi~ #'I -Completed August 22, 2003 .y`, 2 718" 6.4# L-80 EUE w/ T ~_- 2 Coating a~ '4 ~i }'~ ~^r E-22 Anchor 6,160' ~! r' Baker SC2 Packer 6,161' XO 6,165' Mill out Ext 6,166' XO 6,177 10'tubing pup X Nipple 6,182' Tubing Joint Mule Shoe 6,216' -.~ ep ,k ;1 - za' 133# ~: F. ~.: o' 13 3/8" 68# K-55 Welded 120' MD L-80 BTC 1,820' MD New Perfs: 6,270'-6,304' 8,312' - 6,475' Top of 7516" Liner {03 6,312' MD -~ 9 518" L-80 47# BTC 6,500' MD 6,750' to Perforations 6,800' 7 5/8" L-80 29.7# STL ! FL4S 12,300' MD L~ 003/003 0924/2003 13:05 FAX 907 258 8601 FOREST OIL ALASKA 1001/003 r • • v~ O R E S T O I !_ G O R P O R A T I O +V ®.; - ,.. ~f. ii 0 ~w~ September 11, 2003 '~ ` `/ 1r'~~rrr~ri~rrr~e, ~~'~~~.1~rr .9.(l.~(' Alaska Oil and Gas Conservation Commission 333 W. 7~" Avenue Suite 100 Anchorage, Alaska 99501 Attn: Mr. Tom Maunder Re: Kustatan Field #1-10-404 Mr. Maunder, Forest Oil recently re-competed the Kustatan Field #1 disposal well. Please find attached the 10-404 Report of Sundry Activities. Also attached are the wellbore schematic, daily reports and various applicable correspondence. If there are any questions, please contact me at 907-258-8600. ~~ .~~ Robert D. Stinson Drilling Engineer -Alaska Division Forest Oil Corporation Attachments: 10-404 Wellbore Schematic Daily Reports Date Modified: 9/11/03 Date Prepared: 9/11/03 rds M:1Kustatan FeId1KF #1 DisposalU~ #1 CleanoutlKF #1 404 Cleanout.doc ,•(~9~24/2003 13:06 FAX 907 258 8601 FOREST OIL ALASKA - • STATE OF ALASKA-- • ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS ~ 002/003 1.Operatfons performed: Operation shutdown Stimulate Plugging Perforate X Pull Tubing X ARer casing Repair well ~ Other 2. Name of Operator 5. Type of well: 6. Datum elevation {DF or K8) oration t Oil Gor F Development: 260' MSL p ores 3. Address Exploratory: ~ ... 7. Unit or Properly name 310 K Street, Suite 700 Stratigraphia _ ADL 387D23 Anchorage, Alaska 99501 Service: X 4. Location of well at surface 8. Well mbar SM R14W T7N Sec 4 1468' FWL 3443' FNL statan Field # , , . , , , At top of productive interval . Pe mif number / pproval number SM T7N R14W Sec 4 1468' FWL 3443' FNL 303-181 , , . , , , At effective depth i 0. API numb R14W SM 4 T7N 1468' FWL Sec 3443' FNL 50-133- 96-00 , , , , . , At total depth . Fio ool 3443' FNL, 1468' FWL, Sea 4, T7N, R14W, SM N/A 12. Present well condition summary Total depth: measured 12,300' Plugs (measured) true vertical 12,300' Effective depth: measured 12,259' Junk (measured) true vertical 12,259' Casing Length Size Cemented Measured depth True vertical depth Structural N!A N/A WA N/A N1A Conductor 120' 20" Driven 120' 120' Surface 1,824 13 3!8" 1478 cu ft 1,820' 1,820' Intermediate 6,500' 9518" 644 cu ft 6,500' 6,500' Production (Liner) Liner 5,988' 7518" 706 cu ft 12,300' 12,300' Perforation depth: measured (8,270'-6,304'), (6,312'-6,475'), (6,750'-6,800'} true vertical (6,270'-6,304'), (fi,312'-6,475, (6,750'-6,SOD') Tubing {size, grade, and measured depth) 2 718" 6.5# t.-80 EUE -Plastic Coated with TK2 Coating Packers and SSSV (type and measured depth) Baker Size 190-40 9518" SC2 13. Stimulation or cement squeeze summary Intervals treated (measured) Treatment description including volumes used and final pressure 14. Representative Daily Average Production or Infection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation Subse uent too ration 15. Attachments 16. Status pf wet! classsifrcation as: Wellbore Schematic Oil _ Gas_ Suspended Service X Daily Report of Well Operations 17. f hereby certify that the foregoing is true and correct to the best of my knowledge. Signed; Title: Driilin Engineer, Forest Oil Corporation Date: % ' !T o, mu1T 1~ nl IQI 1l~ATC FprtYl 10-404 rev [ai/75/Sti X12 • ' August 15, 2003 F O R E S T O I L C O R P O R A ,3~0 ~~C-~~~~~~ • C~.~t~ 700 C?~ec•~a*a~~, ~?5~/l~~ 9950/ ~907~ 258-8600 • ~907~ 258-8609 ~~ax~ Tom Maunder State of Alaska Alaska Oil And Gas Conservation Commission 333 W. 7~' Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: Kustatan Field No. 1 well Disposal Injection order No. 26 T I O N Dear Mr. Maunder, Forest Oil Corporation would like administrative approval to add perforations and extend the injection area of the above referenced well. The commission has previously looked at the CBL/VDL and found good zonal isolation from 6,140' to 6,255'. The salinity's below this point were also examined and found to be above 10,000 PPM. (Reference Disposal Injection order 26, Findings No. 5 and Conclusions No. 5, respectivly) Forest requests permission to perforate the following depths and recomplete the well as a class II disposal well under the existing disposal order. 6,270 to 6,370' MD 6,385' to 6,475' MD A total of 190' of additional perforations will be added. Following this the well will be recompleted with a Baker Model SC retrievable packer set at 6,175' MD. The well will be returned to active status as a class II disposal well. If there are any questions, please contact me at 907-868-2134 ~a~~li~ Paul D White Drilling Manager -Alaska Division Forest Oil Corporation Attachments: Kustatan Field #1 Class II Disposal Completion diagram Disposal Injection Order No. 26 and Application . ~ • i Kustatan Field #1 Class II Disposal Completion RKB 260' MSL 2 7/8" 6.5# L-80 EUE w/ TK-2 Plastic Coating 20" 133#,L-80 BTC Driven 13 3/8" 68#, L-80 BTC 171/2" Hole 9 5/8" 47#, L-80 BTC 12 1/4" Hole 7-5/8" 29.7#, L-80 STL / FL4S 8 1/2" Hole 120' 1820' TOC 5000' (Calculated) Baker Packer Model SC Retrievable 6280' TOL 6312' 6500' Perforations 6,750' to 6,800' Liner Wiper Plug 12259' 12300' • 400 0 ~ 1000 2000 r J 3000 d ~+- S Q 4000 d 7000 ~~ ~~' ~ r Temperature Survey -Before Injection (RIH) Pressure (psia) 800 1200 1600 2000 2400 2800 3200 3600 4000 C 5000 6000 60 70 80 90 100 110 120 Temperature (Deg. F) Pressure - Perfs ~•~13-3/8 Casing ~9-5/8 Casing ~~~7-5/8 Liner ~~2 7/8 TBG Temperature 400 0 1000 __ - __ _ -- 2000 ___ - 3000 .~. ++ G1 ---- ~ ... - - ~ ---- - ~, -- - -- Q 4000 ~ _ - --- 0 -- -- ------ 5000 6000 __ 7000 Temperature Survey -Before Injection (POOH) Pressure (psia) 800 1200 1600 2000 2400 2800 3200 3600 4000 60 70 80 90 100 110 120 Temperature (Deg. F) Pressure - Perfs ~~13 3/8 Casing ~~9 5/8" Casing `•~7 5/8" Liner ~~2 7/8" TBG Temperature ~ ~-~~~ ~.~~ ~ Temperature Survey -After Injection (RIH) ~~G ~,h~ ;,-;=~.~~ Pressure (psia) 3000 3500 4000 4500 5000 5500 6000 6500 7000 0 -~ - 500 s_ __ _ - - -.. __ - ----- - { _ _ _-_ __ - - -- - 1000 _- _ _ -_ 1500 2000 2500 .F+ 3000 d ... s 3500 ~. Q 4000 4500 5000 5500 6000 7000 6500 60 70 80 90 100 110 120 Temperature (Deg. F) Pressure - Perfs - ~°° 13-3/8" casing ~-9-5/8" casing f2-7/8" tubing ~-7-5/8" liner Temperature • Temperature Survey -After Injection (POOH) Pressure (psia) 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 0 -r -- -- 500 ;r_ -.v _ -. -- 1000 -'' 1500 -_ __ --- - - - 2000 ---- - - . 2500 - - -_ - - - ,~ 3000 __ __ - G~ --- _- __ _ ~ -_ - ~ _ ... 3500 __ _ -- t - - - _ ++ - ~ - - _ - _.. ~ - --- 0 4000 _ _ - _ 4500 - -- _ - -- - _ - -- 5000 - -- _ 5500 = _ _ = 6000 - _ - - - - --- - --- 6500 - -- 7000 _ -- _ 60 70 80 90 100 110 120 Temperature (Deg. F) Pressure - Perfs X 13 3/8" casiing f9 5/8" casing ~•2 7/8" tubing ~7 5/8" liner Temperature x$11 LJ AOGCC Memorandum Dater 4/15/2003 To: DIO 26 From: Jim Regg, Petroleum Engineer Subject: Kustatan Field #1 Injection • Mr. Ted Kramer (Production Manager, Forest Oil) delivered the baseline temperature survey this morning (4/15/2003) as required by Disposal Injection Order 26 for the Kustatan Field #1 well (PTD 200-153). The survey was reviewed by AOGCC staff (Maunder, Hartz, Davies, Regg) and deemed satisfactory for intended purpose. I called Mr. Kramer at 1:30 pm, 4/15/2003 and advised that Forest may begin injection into KF#1 well. I also reminded him to schedule a mechanical integrity test (MIT) once injection is stabilized; I suggested he coordinate the MIT schedule with AOGCC North Slope office. X10 • • } Forest Oil Corporation 310 K Street, Suite 700 Anchorage, Alaska 99501 ' (907) 258-8600 Fax: (907) 258-8601 April 15, 2003 C] EC C ~~ t~ Jim Regg Alaska Oil and Gas Conservation Commission 333 W 7~' Avenue, Suite 100 Anchorage, Alaska 99501 Dear Mr. Regg: APR 1 5 2003 Alaska Oil & Gas Cons. Commission Ancharaga Attached please find hard copies of the temperature profile ran by Forest Oil Corporation on April 14, 2003 in support of Disposal Injection Order No.26. Also enclosed is a CD-Rom which contains the entire survey. We believe that this data fulfills the pre -start up information required by the Commission. Forest Oil Corporation awaits notification from the Commission that we may start injection into this well. Forest Oil Corporation requests this notification as soon as possible so that fluid may be taken directly into our Kustatan Production Facility for processing. I can be reached in my office at 868- 2137 or on my cell phone at 317-8232 if there are any questions. Sincerely, Ted Kramer Production Manager Forest Oil Corporation • • Forest Oil Weii: KU-1 Field: Kustatan 04-14-03 P res sur e (p sis ) Line Speed (W min) 0 20 0 40 0 60 0 80 10 0 0 0 12 0 0 14 0 0 16 0 0 18 0 0 20 0 0 22 0 0 24 0 0 26 0 0 28 0 0 30 0 0 32 0 0 34 0 0 360 0 _ ___ ---- 0 _ 0 P res sur e-T emp era tur e Pr ofil e - 1 2 . G . W oin ell S g in hut ho -In le to 68 50' MD 1000 2000 -- - -- - _ - - 3000 _ m Y .~ m d .~- t .-~ fl. - - -- - _ -_ -- - - _ -- m ~ 4000 - ___ 5000 __ 6000 7000 3 0 40 50 60 Te 70 mpe 8 ratu 0 re ( 90 Deg . F) 100 110 1 20 130 Pr essu re - Perf s ~ P acke r Tem perat ure Report date: 04/15/2003 • • Forest Oil Well: KU-1 Field: Kustatan 04-14-03 0 0 40 0 80 0 12 Pres 00 16 sure (p 00 20 sia) 00 24 00 28 00 32 00 3600 Li -200 -1 ne Speed ( 50 -100 -5 ft/mi 0 0 n) 50 Pres sure-Te mpera ture Pr ofile -- 1 Pu lling o ut of h ole fro m 6850' MD . 2. W ell Shut -In 1000 2000 - - 3000 r m m w L ...~ a ~ ~ 4000 - - - - _ _ - _- - _ - - __ - _ __ 5000 6000 7000 3 0 40 50 60 70 Tempe 80 rature ( 90 Deg. F) 100 110 1 20 130 Pr essure - Perf s D P acker Tem perature Report date: 04/15/2003 More WLL-IU F O R E S T O I L C O R P O R A T[ O N •' ~3~0 ~~~~~~ent . C-~utfi~ X00 Y c'~7„~/. ~~.~, Csx~~ 9950 • X907) ~5~- ~ soo • ~907~ ws8-86o~ ~~ax~ April 14, 2003 Sarah Palin, Chair State of Alaska Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, Alaska 99501 RE: Disposal Injection Order No. 26 Miscellaneous Land Use Permit MLUP/CI 03-03 Dear Commissioner, Please find enclosed, as directed by the Alaska Department of Natural Resources, Division of Oil and Gas, one original Miscellaneous Land Use Permit MLUP/CI 03-03 executed by Gary E, Carlson for Forest Oil Corporation as Permittee. If you should need anything more regarding this matter, please let me know. Sincerely, ~~.-._..CQ~_.~ -- Jim Arlington Land Manager RECEIVED APR 1 4 2003 ;Alaska Oil & Gas Cons. Commission Anchorage •.,~ • O ~ ~ ~ FRANK K MURKOWSKI, GOVERNOR DEPARTMENT OF NATUR,AI~ RESOURCES 550 WEST 7rH AVENUE, su1rE 800 ANCHORAGE, ALASKA 99501-3510 DIVISION OF OIL AND GAS PHONE: (907) 269-8800 FAX: (907) 269-8938 April 11, 2003 RECEIVED APR 1 4 2003 Forest Oil Corporation Attn. Jim Arlington 310 K Street # 700 Anchorage, Alaska 99501 RE: Miscellaneous Land Use Permit Kustatan Field #1 Injection Well Dear Mr. Arlington: Alaska Oil & Gas Cons. Commission Anchorage MLUP/CI 03-03 LAS 24199 The Department of Natural Resources, Division of Oil and Gas ("DNR") approves the Forest Oil Corporation ("the Permittee") permit application, dated March 3, 2003, to convert the Kustatan Field #1 (KF # 1) well into a Class II waste disposal well. DNR issues this Miscellaneous Land Use Permit MLUP/CI 03-03 to the Permittee this 11th day of Apri12003, hereinafter the "Date of Issuance". Upon receipt of all required approvals from the Alaska Oil and Gas Conservation Commission ("AOGCC"), the Permittee is authorized to inject Class II wastes, as defined by the AOGCC, in the KF #1 well. The disposal is designed to occur at depths below 6,500 feet MD into the permeable sands of the middle Tyonek formation. The surface area is owned by the Permittee and also contains the Kustatan Production Facility, owned and operated by the Permittee. The KF #1 well is located on the west side of Cook Inlet, 3,443 feet from the north line and 1,468 feet from the west line of Sec. 4, T7N, R14W, S.M. The KF #1 well was drilled by the Permittee on state oil and gas lease ADL-387023, which expired February 1, 2003. This permit is effective from the Date of Issuance for a term of five years and is subject to the following conditions: This permit is subject to the provisions of 11 AAC 96.040, except as otherwise stated in this permit. The Permittee shall request an extension of this permit in writing within 90 days of the expiration date of the initial five-year term and each subsequent annual extension period. 2. The Permittee shall obtain all required approvals from the AOGCC prior to any disposal activities in the KF #1 well and shall satisfy any AOGCC bonding requirements for the permitted disposal activities. The Permittee shall notify DNR if it is found in violation of the terms of an AOGCC authorization or approval or other approval required by any agency to MLUP/CI 03-03 • conduct the disposal activities in the KF #1 well. Permittee shall maintain a minimum $100,000 statewide miscellaneous land use bond with DNR for the purpose of securing performance with the terms of this approval. 3. The AOGCC has informed the DNR that it must designate the Permittee as the KF#1 well operator for the Permittee to obtain the AOGCC's authorization for the injection and disposal activity. Therefore, under 20 AAC 25.020, the Permittee is designated the KF#1 well operator for the sole purpose of obtaining the AOGCC's authorization to operate the well as a Class II disposal well. This limited designation of operatorship confers no other rights to the Permittee that are held by the state as owner of the subsurface estate into which the Permittee is authorized the inject waste. The Permittee shall accept the obligations of operatorship by the signature of an appropriate corporate officer in the space below and submit an original of this permit to the AOGCC. This permit will be executed in triplicate. One fully executed original to be retained by the Permittee, one submitted to AOGCC and one returned to the DNR. Permittee hereby accepts its designation as operator under 20 AAC 25.020 with all attendant responsi ilities and obligations. Date: ~~ ~~ /" ~ Printed Name: C~~J ~ ~=~'~~~h Title: cJ~'• l/ ~` ~. `f'%/`O~~G~~ 4. The state may issue oil and gas leases to third parties for the purposes of exploring for, developing, and producing oil and gas from the subsurface estate containing the KF #1 well. Upon the request of any such lessee, the Permittee shall make available records and information about the injection activities that are routinely collected or required to be reported to regulatory agencies and shall cooperate with the lessee so that the lessee may safely exercise the rights granted in the DNR oil and gas lease. 5. This permit does not authorize activity on Mental Health Trust Lands, School Trust Lands, or Park Lands. 6. The Permittee shall defend, indemnify and hold harmless the State of Alaska from and against any and all claims, damages, suits, losses, liabilities and expenses for injury to or death of persons and damage to or loss of property arising out of or in connection with the injection activity authorized under this approval by the Permittee, its contractors, subcontractors and their employees. 7. The Permittee shall allow DNR's authorized representatives to review and inspect the Permittee's operations and records to ensure compliance with the terms of this permit. The Permittee shall immediately notify the DNR, Permit and Compliance Unit, in Anchorage at (907) 269-8776 if, during the conduct of operations, state resources are damaged or a land use conflict occurs. 9. This permit is not assignable without DNR's prior written approval. Page 2 P • i- MLUP/CI 03-03 10. The Permittee shall perform any dismantlement, removal, and restoration to the satisfaction of the DNR commissioner. 11. Only Class II wastes, as defined by the AOGCC and produced from DNR oil and gas leases, are approved for disposal in the KF #1 well. 12.This permit is not intended to affect in any way the performance of the rights and obligations set out in paragraph 21 of lease ADL-387023. DNR is deferring the performance of those rights and obligation by separate letter to the Permittee. This permit is consistent with the Alaska Coastal Zone Management Program and Local District Plan by the adoption of alternative measures, if any, into the project description. This Miscellaneous Land Use Permit MLUP/CI 03-03 is issued in accordance with Alaska Statute 38.05, Alaska Miscellaneous Land Use Regulations 11 AAC 96, and Alaska Statute 46.40 and does not convey an interest in property. A person affected by this decision may appeal it, in accordance with i 1 AAC 02. Any appeal must be received within 20 days from the Date of Issuance and may be mailed or delivered to Thomas E. Irwin, Commissioner, Department of Natural Resources, 550 W. 7th Avenue, Suite 1400, Anchorage, Alaska 99501; faxed to 1-907-269-8918, or sent by electronic mail to dnr_appeals@dnr.state.ak.us. This decision takes effect immediately. An eligible person must first appeal this decision in accordance with 11 AAC 02 before appealing this decision to Superior Court. A copy of 11 AAC 02 may be obtained from this office or any regional information office of the Department of Natural Resources. The state's approval of this application means only that the state has no objection to the operations as outlined in the application. It does not constitute certification of any property right or land status claimed by the applicant nor does it relieve the applicant of responsibility to obtain approvals or permits from other persons or governmental agencies as may also be required. If you have any questions please give me a call in Anchorage at 269-8776, fax 269-8943, or e-mail Matt_Rader @ dnr. state. ak. us. Sincerely, rf ~~~~ Matt Rader Natural Resource Specialist e.C. Dan Bevington - KPB Mark Fink - DFG Tim Rumfelt -DEC Steve Davies -AOGCC Rick Thompson - DMLW Chris Ruff -Redoubt Unit Manager Page 3 ~$ 04/08/2003 16:30 FAg 907 258 8601 • FOREST OIL ALASKA ~ ooi FOREST OIL CORPORATION -. TO: ~Wt ~~9' 9 FAX NUMBER: .Z7cs- 7SY2 DATE: Jr~-8'~Q3 FROM: ~p~ ~~•"hsun - PHONE NUMBER: ~ 310 K Street, Suite 700 Anchorage, Alaska 99501 (907) 258-8600 -Office {907} 258-8601-Fax T1ME: S=3 v M Total Number of Pages Including Cover Sheet: COMMENTS: V ~ /+'! S`a 1-rr .~',,. ~c c~~ldr, See ~e ~~ . '" E ~~03 ~+~~t~GasCals.Corn~~ A-I ... 3 ~..r T ~, ~V~~ Y ~~~:~ ~ ~ L~o~ ~Ia~IcaC~il 04/08/2003 16:30 FAX 907 258 8601 FOREST OIL ALASKA L_.~ .~ MEMORAN!]~NI Slue o~ l41>aska AiaMw Oq aMd m. ~ Cpnptleelon To: sa,ah Pates DATE: April ot, 3 hair SiJB~IECY: MeoltaldCal InbeQr>iy Taste THRtI: Tom M8NJ1>d~ Fdr®at Oil P.I. r tiitabitrl Field ~1 f~OM: '~Q v (`~ ~ ~ C~ONF~1'i~ I~oo2 Packer Pretest ~1i91 iS NWt. 30 ADI. T irl T.V,L1. 929E1 P.T.p 12300 T ie&t S Teat 1900 T 290 3,1' 0 4t0 410 180D 1900 1BOD 1 PJF I Irolsa. YifeN T I T.VD. T 119MYSl R.T.D_ T loot Test - P/F homes: Well T.V.D. T kser+nl P.T.D_ 7 t68t T6st P~ Ii11Wea: YIfeM T 1 T.V.D_ T ~991wrd P.T.D. T last Test ~ Nstss: T T.V.D. br~rwsl R.T.ti. T Test ~ ~..~..• 'type If~l.r. F1idd Cadaa F =FRESH WIIA7L-r~ ev,. G = t"rAS IM„i. tM ~ llQf e+1.~C7'MiC~ 'fypa Ts+rt 111 /U AIoNEo14Yp P~ Stsndmd P~nNar Tad Rs k~tsnd Radiea~te Traaar Rtr~ Aa Tamparat+ais J1asnlalr Sun~Y 0. OiHa~ential Tampmah~ Tad Taei!a Dews MA.t.T.'s perborer+e~ i Nun7bar of Fadures_ ~ A118cAmet~: Inruval h IniGsl Tad ~ FodYlatCyW 11a Iry 1tar4rse lily Test durGg IM01k4Var i~ (deecr~a m aoeag Tell Time baste: i il~h~ ~ r~R b~1 MIT Kcsa~tan 411~OQ3 5J12f00 LG. 04/08/2003 16:30 FAX 907 258 8601 r ~-`~ ~~~ ~ Bte11 1 pn~ 0.00 0 0.`s0 3000 1.00 2850 2.00 3150 3.00 3275 4_dD ~~ 5.00 i 3860 4500 i i ~ 1"500 0 20M 1500 1040 540 0 FOREST OIL ALASKA ~f Stall Teat :10 Fi~iaA Teat Farmeren ~ Down ~ 9G00 Psi ~ 7 R BPAi! ~ 5 i3is pump4d. ~ni3N iyecUan wt 9 BPIA = 2BZ0 PsC End of leaf 5 BPAA ~ 3Q60 PeL Tafet i ; 62 M~tat Shut-ie p~ereieac 28+1a Pei. Fo+m.tian wed 10 217p i~ In ao = S70 Psi d~ae. si.a a i,~e~s tam u Pte. Mjeceon ~aP Teit ~t1l2Q03 _ I -+- Inject pt~es , , ~ - ,~ i , ~ _ _ ~ ~ -~ ° 4-- -- ~ ~-.. .. ' _ ~ _F.. o.oa +.a0 z.va a~ f~ 4.00 5.00 8.00 ~ 003 r °~c 4l1P100.~ ~~~~s ~~~r~~ ~ ~~ ~~ Input DLIS Files DEFAULT MERGE_GR_CCL 035 FN:1 PRODUCER 2&Mar-200319:04 6317.0 FT Output DLIS Files DEFAULT USI_SONIC 036PUP FN:34 PRODUCER 28-Mar-200319:06 6317.0 FT OP System Version: 11 CO-305 MCM USIT-A 11 CO-305 DSLT-TCC 11 CO-305 SGT-L 11 CO-305 CAL-Y 11 CO-305 TCC-BF 11 CO-305 PIP SUMMARY tr Casing Collars ~ Cemeni Isolation Marker Time Mark Every 60 S CBL Am litude CBL 0 (MV) 50 Bond Index Level for Zone Isolation Casin Collar Locator CCL BILI -19 (-) 1 1 (~) 0 Transit Time GoodBorid __ ._ 400 (US) 200 .:::;.From. BI to BILL.::::::::~ ::::::.:::::: Tension Min Amplitude Gamma Ra GR (TENS) Bond Index BIL 0 (GAPI) 100 (LBO 1 (--) 0 VDL VariableDens -- -__ annn n 200 (US) X600 ~~ f Re: EVALUATION OF FOREST OIL'S DRAFT APPLICATION FOR KUSTATAN DIO ' ~ . Subject: Re: EVALUATION OF FOREST OIL'S DRAFT APPLICATION FOR KUSTATAN DIO Date: Fri, 07 Mar 2003 13:31:45 -0900 From: Tom Maunder <tom maunder@admin.state.ak.us> To: Jack Hartz <jack hartz@admin.state.ak.us> CC: Robert Crandall <Bob_Crandall@admin.state.ak.us>, James B Regg <jim_regg@admin.state.ak.us> I did see the application at the meeting with Rob. I believe that your and Bob's comments cover what 2 am aware of. From a mechanical point of view, they will be equipping the well essentially according to the regulations. The packer is going to be more than 200' above the perforations, so we may need to make sure we have that covered in the order. The proposed packer depth is in casing that is cemented, however I don't know if the packer is below the 10000 ppm depth. It is probably appropriate to insure that the packer is set below that depth. Tom Jack Hartz wrote: > Tom, Did you get to see the Application? Do you need to add to comments? > Jack > --------»> Jim > I will add to Bob's comments. > 4.) The fracture analysis for RU D-1 is not appropriate for this > application. Since this is a simulation, Forest needs to simulate the > wellbore and formation conditions from the KF-1. This is an unconventional > completion with proposed perforations thru the 7 5/8" liner in an > uncemented formation (6750-6800') below the 9-5/8" casing which is cemented > from the shoe up to an uncertain depth. Forest may assume the fluids will > travel through the perfs and go out into the formation directly or any of > the porous formations up and down the column. > The highest porous interval below the 9-5/8" shoe is probably the most > conservative or worst case to evaluate. The fluids would travel to perfs > then up an annulus. The completion as proposed is very inefficient for frac > analysis purposes. I think they will need to look at the formations between > the perfs and the 9-5/8" and give it a reasonable evaluation. > Jack > Robert Crandall wrote: > > All; > > > > I have independently evaluated formation water salinities in Kustatan 1 > > using the epa recommended techniques and this work is in good agreement > > with the estimates provided by Forest. The top of the 10,000+ ppm > > formation water is some 600' above the proposed perfs in Kustatan 1 but > > some 200' above the top of the annulus open to injection. I have > > evaluated the subject application and recommend the following changes. > > > > 1)The entire intermediate string annulus will be open in Kustatan 1 > > while RU D-1 had a well isolated perf interval. This difference may > > cause a very different fracture response and is more reason for a > > lithologically valid fracture study to be conducted for Kustatan 1. > > i of 2 3/7/2003 I :36 PM Re: E\IALUATION OF FOREST OIL'S DRAFT APPLICATION FOR KUSTATAN DIO > > 2) The applicability of using RU D-1 as a proxy for Kustatan 1 in a > > fracture study is poor because while they are both in the Tyonek > > Formation the stratigraphy adjacent to the perfed interval is very > > different between the two wells. > > > > 3) Due to the unusual completion for this well we should require > > periodic (at least initially) temperature Logging to see where the > > injectant is going. - _ _ _ ___. _._ Tom Maunder <tom maunder(cr~,admin.state.ak.us> Sr. Petroleum Engineer s Alaska Oil and Gas Conservation Commission 2 of 2 3/7/2003 I :36 PM ~~ RE: Timing for Public Comment - KF#1 DIO • Subject: RE: Timing for Public Comment - KF#1 DIO Date: Mon, 10 Mar 2003 09:51:56 -0700 From: Rob Stinson <RDStinson@forestoil.com> To: 'Jim Regg' <jim regg@admin.state.ak.us> lJ Thanks Jim.. I believe Jim Arlington decided to not pursue this any further. I should have a well specific frac model to you sometime today. Rob -----Original Message----- From: Jim Regg [mailto:jim_regg@admin.state.ak.us] Sent: Friday, March 07, 2003 5:08 PM To: rdstinson@forestoil.com Subject: Timing for Public Comment - KF#1 DIO Rob - Back to our discussion of the timing for the public comment period, etc., for Kustatan Field #1 DIO. Ire-read the regulations governing public hearings (20 AAC 25.540) and need to clarify our discussion. I am not sure your (Forest's) concerns are valid. Paragraph (a) of that regulation provides the following: - the Commission will "tentatively set a hearing date that is at least 30 days after the date of publication of the notice" - the public has 30 days to "submit a written protest or written comments" - anyone may request that the tentatively scheduled hearing be held by filing a written request with the commission "within 15 days after the publication date of the notice" My read of all this is that we cannot shorten the public comment period as was suggested by Forest in phone conversations today. This appears to prevent the Commission from issuing a final order until at least 30 days from the issuance of our notice, which would be as stated in the notice we published on 3/6/2003. Jim Regg I of I 3/10/2003 7:48 AM Timing for Public Comment - KF#1 DIO • Subject: Timing for Public Comment - KF#1 DIO Date: Fri, 07 Mar 2003 17:07:46 -0900 From: Jim Regg <jim_regg@admin.state.ak.us> Organization: AOGCC To: rdstinson@forestoil.com BCC: Dan Seamount <dan seamount@admin.state.ak.us>, Jody Colombie <Jody_colombie@admin.state.ak.us> Rob - • Back to our discussion of the timing for the public comment period, etc., for Kustatan Field #1 DIO. I re-read the regulations governing public hearings (20 AAC 25.540) and need to clarify our discussion. I am not sure your (Forest's) concerns are valid. Paragraph (a) of that regulation provides the following: - the Commission will "tentatively set a hearing date that is at least 30 days after the date of publication of the notice" - the public has 30 days to "submit a written protest or written comments" - anyone may request that the tentatively scheduled hearing be held by filing a written request with the commission "within 15 days after the publication date of the notice" My read of all this is that we cannot shorten the public comment period as was suggested by Forest in phone conversations today. This appears to prevent the Commission from issuing a final order until at least 30 days from the issuance of our notice, which would be as stated in the notice we published on 3/6/2003. Jim Regg Jim Regg <jim_regg(c~admin.state.ak.us> Petroleum Engineer AOGCC Administration 1 of 1 3/10/2003 7:47 AM Disposal Injection for Kustitan Field #1 • http://wwwstate~locaUakpages/ADMIN/ogc/hear/kustitan field.htm Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Kustatan Field Well No. 1 Disposal Injection Order Section 4, T07N, R14W, Seward Meridian, Alaska Forest Oil Corporation by application dated February 28, 2003, has applied for a Disposal Injection Order for Kustatan Field Well #1 pursuant to 20 AAC 25.252. The Commission has tentatively set a public hearing on this application for April 15, 2403 at 9:00 am at the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled. hearing be held by filing a written request with the Commission no later than 4:30 pm on Apri17, 2003; If a request for a hearing is not timely filed, the Commission will consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please call 793-1221. In addition, a person may submit written comments regarding this application to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Written comments must be received no later than 4:30 pm on April 7, 2003,: except that if the Commission decides to hold. a public hearing, written comments must be received no later than 9:00 am on April 15, 2003. 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 Jody Colombie at 793-1221 before April 7, 2003. Randy Ruedrich Commissioner Published Date: March 6, 2003 ADN AO# 02314037 Hearing Calendar ~~g `'~ t ~C~j~,i~.r .' ~.c4J ~ec,'d i~ - z~~~ ~~~ ~~~~ - 3ial~~ ~-~ ~-~~`~- 4I~1~ ~~ - ¢~ 15~~~ ~~a ~~.~ 1 of 1 3/7/2003 10:40 AM ~5 L L ,a March 7, 2003 Mr. Rob Stinson Forest Oil Corpration 310 K St. Anchorage, AK 99501 Dean Mr. Stinson, Attached you will find a FracPro PT simulation report for the Kustatan Field # 1 well. FracPro PT was able to simulate injection down the annulus of the 7-5/8" casing at a rate of 2.3 bpm with a 100 mesh sand concentration of 5.0 ppg. Simulation for 370 days of continuous injection was performed. The results of the simulation indicate the fracture created from continuous injection will be contained within a zone of approx. 220' (6,688' to 6,908') near the perforated interval. The increasing stress associated with deeper sands and shales prevented fracture growth downwards and there is sufficient stress difference between the sand-shale layers to prevent upward growth of the fracture. Reservoir layers of sand-shale sequences were determined from the electronic log provided for the Kustatan Field # 1 well. The reservoir model was assumed to be an oil reservoir (worst case) and was not modeled below 8,000'. Performing a simulation over the entire 4,800' of annular space and all of it's layers for 370 days would result in an array of data too large to handle at the current time. Since the fracture did not grow to below this depth, it should be assumed that reservoir layer data below this depth is inconsequential. If you have any question regarding this simulation or report, please feel free to give me a call at any time at 661-396-4441. Thank you, J. Jay Garner Pacific Region, Manager, City Sales/Alaska BJ Services Company jag rner~n~bjservices.com Cc: Internal Customer File ~~~~ ~ ~ ~(~~`~ L L IFracproPT Hydraulic Fracture Analysis Date: March 7,.2003 Well Name: Kustatan #1 Location: Formation: Job Date: 3/7/03 Filename: Kustatan #1 Disposal 10.1 Fracture Geometry Summary Fracture Half-Len th ft 1994 Pro ed Half-Len th ft 0 Total Fracture Hei ht ft) 221 otal Pro ped Hei ht (ft) 0 De th to Fracture To ft 6688 Max. Fracture Width in 0.11 De th to Fracture Bottom ft 6908 v .Fracture Width in 0.05 E uivalent Number of Multi le Fracs 1.0 v .Pro ant Concentration Ib/ft2 0.00 Fracture Slur Efficient 0.00 All values reported are for a single fracture Model has run until 447552.00 min Fracture Conductivity Summary v .Conductivi w/Dama a mD•ft 0.0 v . Frac Width Closed on ro in 0.00 Dimensionless Conductivi 0.00 Ref. Formation Permeabilit mD 7.50e+01 Pro ant Dama a Factor 0.50 Pro ant Permeabilit mD 20000 All values reported are for a single fracture Fracture Pressure Summary Model Net Pressure si 32 BH Fracture Closure Stress si 5255 Observed Net Pressure si) 0 Closure Stress Gradient psi/ft) 0.776 FracproPT 10.1 L L Fracture Pressure Summary H drostatic Head si 4430 Surface Pressure si 884 Averages reported during Main Frac Operations Summary Total Clean Fluid Pum ed bbls 1030973 otal Pro ant Pum ed klbs 176356.3 Total Slur Pum ed bbls) 1030973 otal Pro ant in Fracture (klbs) 0.0 Pad Volume (bbls) 0 v . H draulic Horsepower (h 50 Pad Fraction %) 0 Max. H draulic Horsepower (hp) 50 Main Fluid DISPOSAL FLUID Main Proppant 100-Mesh Averages reported during Main Frac FracproPT 10.1 L L Fracture Dimensions Fracture Growth History End of Time Fracture Fracture Fracture Avg. Model Net Slurry Equivalent Stage # (mm:ss) Half- Height Width at Fracture Pressure Efficiency Number of Length (ft) Well Width (psi) Multifracs ft in in 1 370:da s 1994 221 0.109 0.050 32 0.00 1.0 All values reported are for a single fracture Proppant and Fluid Properties by Stage Proppant Distribution by Stage Stage # Proppant Type Proppant Stage Concentration Distance from Wellbore ft Avg. Proppant Concentration Ib/ftZ Avg. Proppant Conductivity mD•ft Avg. Proppant Volume Fraction 1 100-Mesh 5.00 1979.2 0.00 0.0 0.000 1 100-Mesh 5.00 1756.1 0.00 0.0 0.000 1 100-Mesh 5.00 1189.5 0.00 0.0 0.000 1 100-Mesh 5.00 415.7 0.00 0.0 0.000 Fluid Properties by Stage Stage # Fluid Type Slurry Rate (bpm) Distance from Wellbore ft Avg. Fluid Temperature °F Avg. Fluid Viscosity c Avg. Shear Rate 1/sec 1 DISPOSAL FLUID 2.30 1979.2 195 1.0 0.0 1 DISPOSAL FLUID 2.30 1756.1 195 1.0 0.0 1 DISPOSAL FLUID 2.30 1189.5 195 1.0 0.0 1 DISPOSAL FLUID 2.30 415.7 195 1.0 0.0 Design Treatment Schedule Stage # Elapsed Time min.sec Fluid Type Clean Volume k al Prop Conc Stage Prop. klbs Slurry Rate b m Proppant Type ellbore Fluid DISPOSAL FLUID 2.3 1 370:da DISPOSAL FLUID 42000.0 5.00 210000.0 2.30 100-Mesh Design clean volume (kgal) 42000.0 Design slurry volume (kgal) 51496.9 Design proppant pumped (klbs) 210000.0 Treatment Totals Proppant and Fluid Material Quantity Units Unit Cost Discnt (%) Cost ($) DISPOSAL FLUID 999999.88 bbls 0.00 0.0 0.00 100-Mesh 209999.98 klbs 70.00 0.0 14699999.00 FracproPT .10.1 L Fluid Parameters Fluid Name DISPOSAL FLUID endor MISCELLANEOUS S stem GENERAL Descri tion 10.5 fluid with solids Initial Viscosit c 1.01 Initial n' 1.000 Initial k' (Ibf•s"n/ftZ 2.100e-05 iscosi 4.0 hours c 1.01 n' 4.0 hours 1.000 k' 4.0 hours Ibf•s"n/ft2) 2.100e-05 Gel Densit 1.25 S urt Loss al/ft2 0.0 all Buildin ftlmin'/: 0.0 Flowrate #1 b m 10.00 Fric Press #1 si/1000 ft 47.30 Flowrate #2 b m 20.00 Fric Press #2 si/1000 ft 161.0 Flowrate #3 b m 40.00 Fric Press #3 si/1000 ft 548.3 ellbore Friction Multi tier 0.100 All Fluid info is at a reservoir temperature of 195.0 (°F) All Viscosities at Shear Rate of 511 (1/sec) Wellbore Friction pressures shown are the interpolated values multiplied by the Wellbore Friction Multiplier. Friction is displayed for longest Wellbore segment 4 FracproPT 10.1 L~ Leakoff Parameters L Reservoir type Oil Filtrate to reservoir fluid perm. ratio, Kp/KI 1 Reservoir pore pressure (psi) 2947 Initial fracturing pressure (psi) 5755 Reservoir fluid compressibility (1/psi) S.OOe-06 Filtrate viscosity (cp) 1.00 Reservoir viscosity (cp) 2.00 Porosity 0.15 Gas Leakoff Percentage 100.00 Reservoir Parameters Reservoir temperature (°F) Depth to center of Perfs (ft) Perforated interval (ft) Initial frac depth (ft) 195.00 6775 50 6775 Layer Parameters Layer # Top of zone ft Stress (psi) Top of zone ft Young's modulus si Poisson's ratio Top of zone ft Total Ct (ftlmin'/~) PoreFluid perm. mD 1 0.0 5525 0.0 6.Oe+06 0.25 0.0 O.000e+00 O.OOe+00 2 6500.0 5074 6500.0 4.Oe+06 0.22 6500.0 6.403e-03 1.OOe+01 3 6593.0 5650 6593.0 6.Oe+06 0.25 6593.0 O.000e+00 O.OOe+00 4 6702.0 4766 6702.0 2.Oe+06 0.20 6702.0 1.754e-02 7.50e+01 5 6724.0 5255 6724.0 4.Oe+06 0.22 6724.0 6.403e-03 1.OOe+01 6 6838.0 4861 6838.0 2.Oe+06 0.20. 6838.0 1.754e-02 7.50e+01 7 6856.0 5375 6856.0 4.Oe+06 0.22 6856.0 6.403e-03 1.OOe+01 8 7015.0 5489 7015.0 4.Oe+06 0.22 7015.0 6.403e-03 1.OOe+01 9 7150.0 5086 7150.0 2.Oe+06 0.20 7150.0 1.754e-02 7.50e+01 10 7176.0 6144 7176.0 6.Oe+06 0.25 7176.0 O.000e+00 O.OOe+00 11 7281.0 5226 7281.0 2.Oe+06 0.20 7281.0 1.754e-02 7.50e+01 12 7440.0 6407 7440.0 6.Oe+06 0.25 7440.0 O.000e+00 O.OOe+00 13 7635.0 5428 7635.0 2.Oe+06 0.20 7635.0 1.754e-02 7.50e+01 14 7655.0 6551 7655.0 6.Oe+06 0.25 7655.0 O.000e+00 O.OOe+00 15 7758.0 5526 7758.0 2.Oe+06 0.20 7758.0 1.754e-02 7.50e+01 16 7808.0 6712 7808.0 6.Oe+06 0.25 7808.0 O.000e+00 O.OOe+00 17 7984.0 5669 7984.0 2.Oe+06 0.20 7984.0 1.754e-02 7.50e+01 FracproPT 10.1 L L Lithology Parameters Layer # Top of zone ft Lithology Top of zone ft Fracture Toughness si•in'/: Top of zone ft Composite Layering Effect 1 0.0 Shale 0.0 2000 0.0 1.00 2 6500.0 50/50 6500.0 1500 6500.0 1.00 3 6593.0 Shale 6593.0 2000 6593.0 1.00 4 6702.0 Sandstone 6702.0 1000 6702.0 1.00 5 6724.0 50/50 6724.0 1500 6724.0 1.00 6 6838.0 Sandstone 6838.0 1000 6838.0 1.00 7 6856.0 50/50 6856.0 1500 6856.0 1.00 8 7015.0 50/50 7015.0 1500 7015.0 1.00 9 7150.0 Sandstone 7150.0 1000 7150.0 1.00 10 7176.0 Shale 7176.0 2000 7176.0 1.00 11 7281.0 Sandstone 7281.0 1000 7281.0 1.00 12 7440.0 Shale 7440.0. 2000 7440.0 1.00 13 7635.0 Sandstone 7635.0 1000 7635.0 1.00 14 7655.0 Shale 7655.0 2000 7655.0 1.00 15 7758.0 Sandstone 7758.0 1000 7758.0 1.00 16 7808.0 Shale 7808.0 2000 7808.0 1.00 17 7984.0 Sandstone 7984.0 1000 7984.0 1.00 FracproPT 10.1 1 ~ Wellbore and Perforated Intervals Drilled Hole Configuration Length ft Segment Type Eff Diam in Bit Diam in 5800 O en Hole 8.750 8.750 Casing Configuration Length ft Segment Type Casing ID in Casing OD in Weight Ib/ft Grade 4800 Free Casin 6.875 7.625 29.700 L-80 1000 Cemented Casin 6.875 7.625 29.700 L-80 Surface Line and Tubing Configuration Length ft Segment Type Tubing ID in Tubing OD in Weight Ib/ft Grade 6332 Tubin 2.441 2.875 6.400 L-80 Total frac string volume (bbls) 55.8 Pumping down Tubing Perforated Intervals Interval #1 To of Perfs - TVD ft 6750 Bot of Perfs - TVD ft 6800 To of Perfs - MD ft 6750 Bot of Perfs - MD ft 6800 Perforation Diameter in 0.500 # of Perforations 300 Path Summary Segment T e Length ft MD ft TVD ft Dev de Ann OD in Ann ID in Pipe ID in Tubin 6332 6332 6332 0.0 0.000 0.000 2.441 O enHole 168 6500 6500 0.0 0.000 0.000 6.875 Casin 250 6750 6750 0.0 0.000 0.000 6.875 FracproPT 10.1 EVALUATION OF FOREST OIL'S DRAFT APPLICATION FOR KUSTATAN DIO Subject: EVALUATION OF FOREST OIL'S DRAFT APPLICATION FOR KUSTATAN DIO Date: Tue, 04 Mar 2003 17:14:35 -0900 From: Robert Crandall <Bob_Crandall@admin.state.ak.us> Organization: DOA-AOGCC To: "Hartz, John" <jack_hartz@admin.state.ak.us>, "Maunder, Thomas" <tom_maunder@admin.state.ak.us>, "Regg, Jim" <jim regg@admin.state.ak.us> CC: "Ruedrich, Randolph" <randy_ruedrich@admin.state.ak.us>, "Seamount, Dan" <dan_seamount@admin.state.ak.us>, "Palin, Sarah" <sarah~alin@admin.state.ak.us> All; I have independently evaluated formation water salinities in Kustatan 1 using the epa recommended techniques and this work is in good agreement with the estimates provided by Forest. The top of the 10,000+ ppm formation water is some 600' above the proposed perfs in Kustatan 1 but some 200' above the top of the annulus open to injection. I have evaluated the subject application and recommend the following changes. 1)The entire intermediate string annulus will be open in Kustatan l while RU D-1 had a well isolated perf interval. This difference may cause a very different fracture response and is more reason for a lithologically valid fracture study to be conducted for Kustatan 1. 2) The applicability of using RU D-1 as a proxy for Kustatan 1 in a fracture study is poor because while they are both in the Tyonek Formation the stratigraphy adjacent to the perfed interval is very different between the two wells. 3) Due to the unusual completion for this well we should require periodic (at least initially) temperature logging to see where the injectaot is going. 1 of 1 3/5/2003 7:08 AM ~ 4 Y F O R E S T O I L C O R P O R A T I O N •~ /(i r^/i ~~/ree/ • !'~rfi 700 Y • ` March 4, 2003 Mr. Matt Rader Division of Oil and Gas Department of Natural Resources 550 W. 7t" Avenue, Suite 800 Anchorage, Alaska 99501 Re: Miscellaneous Land Use Permit application Converting Kustatan Field ("KF") #1 well to injection/disposal well Dear Mr. Rader: I have attached hereto originals of the Miscellaneous Land Use Permit application, with attachments, and the Coastal Project Questionnaire for the proposed activity which I sent to you via e-mail yesterday. Also attached is Forest Oil Corporation check number 1375 in the amount of $100.00 for the required filing fee. Please let me know if you have questions or require additional information. I appreciate very much your assistance and attention to this application. Sincerely, FOREST OIL CORPORATION ~~ ~ Jim Arlington Land Manager, Alaska Business Unit Cc: Alaska Oil and Gas Conservation Commission STATE OF A~SKA DEPARTMENT OF NAT'L~lAL RESOURCE DIVISION OF MINING, LAND & WATER [ ]Northern Region ~] Southcentrai Region [ ]Southeast Region 3700 Airport Way SSO W. 7a' Ave, Ste 9000 400 Willoughby #400 Fairbanks, AK 99709 Anchorage, AK 99501-3577 Juneau, AK 99801 (907)451-2705 (907)269-8503 (907)465-3400 LAND USE PERMIT APPLICATION Under AS 38.05.850 03-03-03 25-0484900 4639 Date Federal Tax I.D. or SSN # (optional) Business License # Permit # (to be assiened) Forest Oil Corporation Forest Oil Applicant Name Doing Business As 310 K Street;: Suite 700 Anchorage Alaska 99501 Address - Ciry State Zip ( ) (90~ 258-8600 _ (9071 868-2112 Jim Arlington Home Phone Work Phone Contact Person Legal description of activity: T 7P7 R 14W Seward Meridian, Section 4 ,NE 1/4 SWl/4(aiiquot parts) Municipatiry Kenai Peninsula Acres ~-(4P2i. RadiuS4dditional Location infotntation: (e.g. GPS reading, Game Mgmt. Unit. Borough Drainage, Lot, Block, ASLS, Subdivision): USS 12121, IAt 1 Are there improvements on the site? ~] Yes [ ] No [f yes briefly describe the improvements.Kustatan Field # 1 We],l , add acent to Kustatan Production Facility who is the owners Forest Oil Corporation Briefly describe the proposed use an activity, and, if applicable, any equipment that wilt be used: C1aS5 II 1nleCtlOri well . See attached development plan narrative. By what means of transportation can the site be accessed? ~rlyate aCCe5S road. If by aircraft, please specify the type and size of aircraft that will be used to land at the proposed site. NSA Aircraft equipped with [ ]floats [ ]wheels may access cite site. The activity will require the use and/or occupancy of state owned '. ( ] Cor a single term of one year or less. Beginning: Ending: [X] on a seasonal or year round basis for up to 5 years. Beginning~7arCh 15 t 2003 Ending: t0 be determined If seasonal, identify months of use in each year: Jan. Feb. Mar. Apr. May. June. July. Aug. Sept. Oct. Noy. Dec. Should a portion of the permit are be closed to the general public? ~] Yes [ ] No. If yes explain: private] y Owned ~JrO ~ [f permits arc required by other agencies for the proposed activity, have they been applied for? ~] Yes [ ] No. of Applicant or -- zed Representative Title NON [2EFUNDABLE FILING FEE: 5100.00 date stamp: Attach a 1:63 360 (inch to mile) USGS map identifying the location of the proposed activity and/or if applicable, routes of travel, and routes of travel for equipment requiring a permit. lncfude a sketch showing the location of any proposed structures, activities in relation to water bodies and boundaries; and a development plan describing: the proposed activities in detail, the purpose of any structures activities shown on the sketch, estimated number of people using the parcel, and major topographic features such as lakes, streams, trails, and groundcover. • LAS ATTACHMENT: l;~r Off'ce Use my Development Plan: Seasonal (Temporary) Structures Only ~/~ 1. List the type and dimensions of each structure to be established on the site. 1. 3. 2. 4. 2. Yes No Will tent platforms be utilized? 3. If applicable, type of human waste and greywater disposal system to be used. Circle One: ~ r'v or ~elf- C'nnr~inari S~ctnm chat man bgtransp4rte~1 a~r3 e~3.ptied at an approved disposal site. 4. Distance from upland improvements including the pit privy or self~ontained waste system to the nearest waterbody S. If temporary improvements are being established to house employees or clients, provide the following information. (a) Average number of days the temporary facility will be occupied each term of use. (b) Average number of employees the temporary facility will accommodate each term of use. (c) Average number of clients the temporary facility will accommodate each term of use. (d) Average number of days a client will be served at the permitted site each term of use. 6. Yes No Will dismantled components of temporary structures, personal property, etc. be removed from the site on or before the expiration of each authorized term of use? If no, answer the remaining questions. 7. Number of disassembled tent frames to be stored .Number of tent platforms to be stored 8. Yes No NIA Will boats and/or motorized equipment of any type be stored during the off-season? If yes, what type and how many. of each? 9. Yes No Fuel, motor oil, and/or hazardous substances will be stored on site during the off- season? If yes, specify the type and quantity of each substance to be stored on site. lo. Large, difficult to transport items being stored. (Include the dimensions): (1) (~} (Z) (S) (3) (6) lI. Yes No WiII miscellaneous camp gear be stored? All camp gear capable of being stored in containment must be stored in bear resistant containment. If yes, describe the number and types of bear resistant containment to be used. Page: • LAS ATTACHMENT: For Office Use Only Development Plan: Year Round {Temporary) Structures 1. {a) List each type of structure to be maintained on a year round basis. (Include dimensions.) 3. 1' see attached develoent plan narrative 2. 4. (b} List any improvements that will be only be established and used only on a seasonal basis. (Include dimensions.) Improvements identified in this section will have to be dismantled and removed or cached on or before the end of each operating season. 1. N/A 3• 2. 4. 2. If applicable, type of human waste and greywater disposal system to be used. Circle One: pit Privv or S~j~, Contained Svstem that can be traz~spgrted and emptied at an approved disposal site. N/A 3. Distance from the upland improvements including the pit privy or self-contained waste system to the nearest waterbody?~1f~_ 4. If temporary improvements are being established to house employees or clients, provide the following information. N/A (a) Average number of days improvements will be occupied each term of use. {b} Average number of employees the improvements will accommodate each term of use. (c) Average number of clients the improvements will accommodate each term of use. (d} The average number of days an employee or client will be served at the site each term of use. 5. Yes No N/A ~_ Will the components and/or contents of dismantled seasonal improvements be stored on site? 6. Yes No N/A X Will boats and/or motorized equipment of any type be stored during the off-season? If yes, what type and how many of each? Page: • LAS ATTACHMENT: For Office Use Only see attached Page: LAS ATTACHMENT: For Offi a s~Only Tom. ._QF THE FOL.LOWIN~ IhIFOIZMATION MUST BE_ CLUDF,~ the location, type and dimensions of the each temporary improvement including the privy(s) and fuel cache(s). ©nly those improvements represented on the developmenE plan will be considered. Any prominent naturally occurring features should be incorporated into the sketch (ie. a river, take, hill}. see attached Page: • STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES STATE Of ALASKA DEPARTMENT Of NATURAL RESOURCES MINING, LAND 8 WATER SOUTHCENTRAL REGION LAND OFFICE 550 UMTTHAYENUE, SUITE 904C ANCNORAGE,AK 995013577 APPLICANT ENVIRONMENTAL RISK QUESTIONNAIRE The purpose of this questionnaire is to help clarify the types of activities you propose to undertake. The questions are meant to help identify the level of environmental risk that may be associated with the proposed activity. The Division of Land's evaluation of environmental risk for the proposed activity does not imply that the parcel or the proposed activity is an environmental risk from the presence or use of hazardous substances. Through this analysis, you may become aware of environmental risks that you did not know about. If so, you may want to consult with an environmental engineer or an attorney. Forest Oil Corporation Forest Oil Applicant Name Doing Business As 310 K S~PPt Spit 700 Anchorage Alaska 99501 Address City Stale Zip ~, ~ eo~l 25s~s6oo sim Arl a ~ on Home Phone Work Phone Contact Person Describe the proposed activity: In the course of your proposed activity will you generate, use, store, transport, dispose of, or otherwise come in contact with toxic and/or hazardous materials, and/or hydrocarbons? Yes [X] No [ ] If yes, please list the substances and the associated quantities. Use a separate sheet of paper,. if necessary. Class II disposal well authorized substances 101-4008A.frtn (Rev. 4196) If the proposed activities involve any storage tanks, either above or below ground, address the following questions for each tank. Please use a separate sheet of paper, if necessary, and, where appropriate, include maps or plats: a. Where will the tank be located? TI/A b. What will be stored in the tank? N/A c. What will be the tank's size jn gallons? ~N/A d. What will the tank be used for? (Commercial or residential purposes?) T1/A e. Will the tank be tested far leaks? N/A f. Will the tank be equipped with leak detection devices? N/A [ ]Yes [ ] No If no, describe: Do you have any reason to suspect, or do you know if the site may have been previously contaminated? Yes [ ] No [ X] If yes, please explain: I certify that due diligence has been exercised and proper inquiries made in completing this questionnaire, and that the foregoing is true and correct to the best of my knowledge. Applicant Date AS 38.05.OJ5(a) authorizes the director to decide what information is needed to process an application for the sale or use of state land and resources. This information is made a pact of the state public land records and becomes public information under AS 09.25.110 and 09.25.12C (unless the information qualifies for confidentiality under AS 36.05.035(a}(9} and confidentiality is requested). Public information is open tc inspection by you or any member of the public, A person who is the subject of the information may challenge its accuracy or completeness under AS 44.99.310, by giving a written description of the challenged information, the changes needed to correct it, and a name and addres<_ where the person can be reached. False statements made in an application for a benefit are punishable under AS 11.56.210. 102~OOSA.trnt {Rev. 4196) Commercial Entry and Use of Short Term (portable) Camps ~ ~/~~ Big Game Guides: List up to three Guide Use Areas in which you plan to enter upon state land and use short term (portable camps) in conjunction with big game hunting: Note: Additional land use fees will be applied if more than three (3) Guide Use Areas are listed. The Division of Mining, Land and Water can only consider issuing an land use permit providing for the entry and use of short Perm camps in more than 3 Ga~ide Use Areas when the permit is beng issued to more than one guide/outfttter doing business under the same business license. All Commercial Recreation Operators including Big Game Guides: List lakes, rivers, streams, geographic areas in which short term camps will be used in conjunction with commercial recreation activities other than big game guiding. List commercial recreation activities other than big game hunting to be conducted on state owned land: 1. 3. 5. 2. 4. 6. Department of Natural Resources Division of Oil and Gas Miscellaneous Land Use Permit Application Development Plan Narrative Conversion of Kustatan Field #1 Well to Class II DisposaVIniection Well Forest Oil Corporation (Forest) is requesting authorization to inject Class II waste fluids into permeable sands of the middle Tyonek Formation, at depths below 6,500 feet TVD, in its Kustatan Field ("KF") #1 well. The KF #1 well was drilled as an unsuccessful exploration well in 2000. The vertical well is located approximately 3,443 feet from the north line and 1,468 feet from the west line of Section 4, T07N, R14W, Seward Meridian. Forest is the surface owner where the KF #1 well is located. Subsequent to ceasing operations on the KF #1 wellbore, Forest successfully drilled several exploratory wells in the Redoubt Unit. Forest is currently engaged in development drilling in the Redoubt Unit. A production facility (the Kustatan Production Facility) has been built on fee acreage owned by Forest adjacent to the KF #1 wellbore to process the hydrocarbons and water produced from Redoubt Unit wells. In order to support the Redoubt Unit development operations, Forest is in need of a disposaUinjection well in proximity to its Kustatan Production Facility. At this early stage in the development of the Redoubt Unit, the main function of this disposal/injection well will be for the disposal of all produced water. from the existing Redoubt Unit production wells. In the absence of having a dedicated disposal/injection well in proximity to the Kustatan Production Facility, .Forest will be forced to either curtail production from wells with high water cuts or shut-in all production from those wells. Because the Hemlock and Tyonek sands in the KF #1 wellbore are wet and because of the close proximity of the KF #1 wellbore to the Kustatan Production Facility, the KF #1 wellbore is an ideal candidate to be converted to a Class II exempt fluid disposal/injection well. The middle Tyonek sands extend from 6,500' MD to 11,465' MD, in the KF #1 wellbore. Open-hole logs indicate this entire interval is water saturated or non-hydrocarbon bearing. The logs also indicate that the water throughout this interval has chlorides in excess of 10,000 ppm, thus no aquifer exemption is necessary for injection. The KF #1 well has 20" conductor pipe driven to 120' MD, 13-3/8" casing cemented to 1,830' MD, 9-5/8" casing cemented at 6,500' MD, and 7-5/8" liner cemented at 12,300' MD. There is no tubing currently in the hole and the wellbore is filled with 9.6 ppg water-based mud. The 7-5/8" liner is cemented across the entire Hemlock interval, with the top of cement being at approximately 11,500' MD. Also of importance is that the 7-5/8" liner has never been perforated. Forest plans to bring a drilling rig to the KF #1 well in the middle of March 2003 to convert the well to a disposal/injection well. After swapping the water-based mud ~ ~ with a 9% KCl completion brine, Forest plans to run a USIT log from 5,000' MD to 6,600 MD, to demonstrate the adequacy of the 9-5/8" cement job. The 7-5/8" liner will then be perforated over the interval 6,750 to 6,800' MD, which is in the upper sands of the middle Tyonek formation. A 2-7/8" tubing will be run in the well with a retrievable packer and set at 6,280' MD. The BOPE will be removed and a 5,000 psi injection tree set on the wellhead. Forest anticipates the work-over operation to take approximately ten days. Prior to any injection operations, the tubing-casing annulus will be pressure tested to 1,600 psi to demonstrate mechanical integrity. 1:63360 KILOMETERS 0 1 2 KILOMETERS STATUTE MiLESO 1 2 STATUTE MILES 1$63360 KILOMETERSO 1 2 KILOMETERS STATUTE MILESO 1 2 STATUTE MILES _..~ ~ \ ` h \ / / ~ \ \ N I ~ . lOT l YS A111E1'AQ 7/// ~ .pi s \ ~ ~ ~ ~ \ ~ ~ \ \ ~ ~s e us ~,~ ~„ r ~ \ i ~ t „„,,,~„ to ^ ' ~ ~ i /' ~ ~\ ~~ 3 \• O dr>.~ ~s i ' ~~' v \ 1 % ~ ¢~~ Pmt ' s ~ nm K \ 1 ~/ i \ '~ / ~' (Or / LLL 9OIEY Ml If/.' / . , ti / 4 i >ossul. - e ~ ~ ~ ~~ ~ tort uss ~a ms t ~ \ ~ ~ ~ \ I a 1 • I _ V ~/ l US lMEI'vfiW ~ ~ _ '~ I RK7/ ~4 / ii" AC y ~~~ ~~~ ~ A O ~ ~~h ~ / 9~ a r.. xw / lLd .£IfKI'ML 1~r ~ 1'x [Orf ~1\ s ~, ~ ~ °' I ~ ~ ~~ \ wrv lOII /L •a u \ ~ S~ ~~, ,~ ~ Kt ARIEYAI0. /Il~I \ O LEGEND AND NOTFS ( I>u0.VLY Dnin oPRrvEO F¢ou 6av~DwroRMAnoN 1~1AT J u A. x V 0.v E Y No. ~Sn u lvl rtal.lmEo xl Dm Y.DSVnTANi EID IAVkL.AVmtl l]a WELLRnwVS l814 LMU, oINER IMROKJOrtY aIn1ATEo PS RCF. `I u~~ u. RY~nu.M..w.v is m ~ti..~x.. uA~ i.w...u~.w ~m5vs..m.~. w. m~w.arwU.a.anww..d ~ ~uv.rnm ~ svi AR~u.n...w..vv m.~. 4 m.. ~.W ~ >e...w...,..~,..w~.~.M1~>.....~..~.r E_ .~m way .m~,ao, NORTH ~~ ~~ fw.yae BY: McLGNfi GONSVlTINO GROUP wdP P.U. Pux ~6tl SuWwre, AK 99fifi9 YM1ox:(90E}itlI<iltl Fu:l~l}EbJ-1265 E~Mnil: mcluvxv6CHltliuluknnn TRACT B US. SURVEY NO. J63, L.S. SURVEY NO. 1999, LOTS I AND'_ U.S. SURVEY NO. 0517, .4.~D l0T J U.S. SURVEY NO. 1?I?I STATE OF ALASKA KEN.41 PENINSULA BOROf:GH k.~CNOR.4GE RECORDING DISTRICT ~,w_'S ix. ,,~rR ~~ oak of La~x..wm\.. rn. i+. tuw • • Coastal Project Questionnaire and Certification Statement Please answer all questions. To avoid a delay in processing, please call the department if you answer "yes" to any of the questions related to that department. Maps and plan drawings must be included with your packet. An incomplete packet will be returned ^ APPLICANT INFORMATION 1. Forest Oil Corporation 2. Forest Oil Name of Applicant Agent (or responsible party if other than applicant) 310 K Street Suite 700 ~, Suite 700 Address Address Anchorac~P AF 9ASOl An~h~~~~. ~~ 99501 City/State Zip Code City/State State Zip Code Zip Code 907-258-8600. 907-258-8600. Daytime Phone Daytime Phone 907-258-8601 ~,~~r ira n-n,ro oyes a• ~~ow~ ~an~-~~R-8601 Fax Number ~ E-mail Address Fax Number E-mail Address ^ PROJECT INFORMATION Yes No 1. This activity is a: ®new project ^ modification or addition to an existing project If a modification, do you currently have any State, federal or local approvals related to this activity? ................................................................................................................................. ^ ^ Note: Approval means any form of authorization. If "yes," please list below: Approval Type Approval # Issuance Date Expiration Date If a modification, has this project ever been reviewed by the State of Alaska under the ACMP? ................ ^ ^ Previous State I:D. Number: AK Previous Project Name: ^ PROJECT DESCRIPTION 1. Provide a brief description of your entire project and ALL associated facilities and land use conversions. Attach additional sheet(s) as needed. See attached developr.Ient plan narrative. Proposed starting date for project:l"lax'ch .30, 2003 Proposed ending date for project: t~ Ix~ dPtPYlILI nP~ Attach the following: • a detailed description of the project, all associated facilities, and land use conversions, etc. (Be specific, including access roads, caretaker facilities, waste disposal sites, etc.); • a project timeline for completion of all major activities in the proposal; • a site plan depicting property boundary with all proposed actions; • other supporting documentation that would facilitate review of the project. Note: If the project is a modification, identify existing facilities as well as proposed changes on the site plan. Revised 1/99 Page 1 ~ ~ ^ PROJECT LOCATION 1. Attach a copy of the topographical and vicinity map clearly indicating the location of the project. Please include a map title and scale. 2. The project is located in which region (see attached map): ^ Northern C~ Southcentral ^ Southeast ^ within or associated with the Trans-Alaska Pipeline corridor 3. Location of project (Include the name of the nearest land feature or body of water.) COOk Inlet Township ~ Range ~-~w Section tl Meridian S Latitude/Longitude / USGS Quad Map 4. Is the project located in a coastal district? Yes ~ No ^ If yes, identify: Kenai Peninsula Borough (Coastal districts are a municipality or borough, home rule or first class city, seca~d class with planning, or coastal resource service area.) Note: A coastal district is a participant in the State's consistency review process. !t is possible for the State review to be adjusted to acconurtodate a local permitting public hearing. Early interaction with the district is important; please contact the district representative listed on the attached contact list. 5. Identify the communities closest to your project location: Tyonek 6. The project is on: ^ State land or water* ^ Federal land C$Private land ^ Municipal land ^ Mental Health Trust land *State land can be uplands, tidelands, or submerged lands to 3 miles offshore. See Question #1 in DNR section. Contact the applicable landowner(s) to obtain necessary authorizations. ^ DEPARTMENT OF ENVIRONMENTAL CONSERVATION (DEC) APPROVALS Yes No 1. Will a discharge of wastewater from industrial or commercial operations occur? ........................................^ ~ Will the discharge be connected to an already approved sewer system? .......................................................^ ~ Will the project include a stormwater collection/discharge system? .............................................................^ ~ 2. Do you intend to construct, install, modify, or use any part of a wastewater (sewage or greywater) disposal system? .................................................................................................................... ^ ®' a) If so, will the discharge be 500 gallons per day or greater? ....................................................................^ ^ b) If constructing a domestic wastewater treatment or disposal system, will the system be located within fill material requiring a COE permit? .............................................................^ ^ If you answered yes to a) orb), answer the following: 1) What is the distance from the bottom of the system to the top of the subsurface water tah1P.9 2) How far is any part of the wastewater disposal system from the nearest surface water? 3) Is the surrounding area inundated with water at any time of the year? ...................................................^ ~ 4) How big is the fill area to be used for the absorption system? (Questions 1 & 2 will be used by DEC to determine whether separation distances are being met; Questions 3 & 4 relate to the required size of the fill if wetlands are involved.) Do you expect to request a mixing zone for your proposed project? ..........................................................^ ~ (I/~your wastewater discharge will exceed Alaska water quality standards, you may apply for a mixing zone. lfso, please contact DEC to discuss information required under I S AAC 70.032.) Revised 1199 Page 2 ~ w Yes No 4. a) Will your project result in the construction, operation, or closure of a facility for the disposal of solid waste? ..................................................................................................................... ....^ ~ (Note: Solid waste means drilling wastes, household garbage, refuse, sludge, construction or demolition wastes, industrial solid waste, asbestos, and other discarded, abandoned, or unwanted solid or semi-solid material, whether or not subject to decomposition, originating from any source. Disposal means placement ofsolid waste on land.) b) Will your project result in the treatment of solid waste at the site? .................................................. ....^ ~ (Examples of treatment methods include, but are not limited to: incineration, open burning, baling, and composting.) c) Will your project result in the storage or transfer of solid waste at the site? .................................... ....^ ~ d) Will the project result in the storage of more than 50 tons of materials for reuse, recycling, or resource recovery? ......................................................................................................................... ....^ 1~ e) Will any sewage solids or biosolids be disposed of orland-applied to the site? .............................. .... ^ ~ (Sewage solids include wastes that have been removed from a wastewater treatment plant system, such as a septic tank, lagoon dredge, or wastewater treatment sludge that contain no free liquids. Biosolids are the solid, semi-solid, or liquid residues produced during the treatment of domestic septage in a treatment works which are land applied for benefecial use.) 5. Will your project require the application of oil, pesticides, and/or any other broadcast chemicals? .....................................................................................................:......................................... .....^ 1~ 6. a) Will you have a facility with industrial processes that are designed to process no less than five tons per hour and needs air pollution controls to comply with State emission standards? ............................................................................................................................... ^ ~ b) Will you have stationary or transportable fuel burning equipment, including flares, with a total fuel consumption capacity no less than 50 million Btu/hour? ........................................... ^ ~ c) Will you have a facility with incinerators having a total charging capacity of no less than 1,000 pounds per hour? ................................................................................................................. ^ l~ d) Will you have a facility with equipment or processes that are subject to Federal New Source Performance Standards or National Emission Standards for hazardous air pollutants? .......... ^ ~~ i) Will you propose exhaust stack injection? ..................................................................................... ^ ~ e) Will you have a facility with the potential to emit no less than 100 tons per year of any regulated air contaminant? ..................................................................................................................... ^ l~ f) Will you have a facility with the potential to emit no less than 10 tons per year of any hazardous air contaminant or 25 tons per year of all hazardous air contaminants? ............................. ^ ~ g) Will you construct or add stationary or transportable fuel burning equipment of no less than 10 million Btu/hour in the City of Unalaska or the City of St. Paul? ........................................... ^ ~ h) Will you construct or modify in the Port of Anchorage a volatile liquid storage tank with a volume no less than 9,000 barrels, or a volatile liquid loading rack with a design throughput no less than 15 million gallons? ......................................................................................... .^ ~ i) Will you be requesting operational or physical limits designed to reduce emissions from an existing facility in an air quality nonattainment area to offset an emission increase from another new of modified facility? ................................................................................................ . ^ ~' 7. Will you be developing, constructing, installing, or altering a public water system? ................................... ^ ~ 8. a) Will your project involve the operation of waterborne tank vessels or oil barges that carry crude or non-crude oi] as bulk cargo, or the transfer of oil or other petroleum products to or from such a vessel or a pipeline system? ......................................................^ ~ b) Will your project require or include onshore or offshore oil facilities with an effective aggregate storage capacity of greater than 5,000 barrels of crude oil or greater than 10,000 barrels of non-crude oil? ................................................................................... ^ ~ Revised 1/99 Page 3 C7 Yes 1\To c) Will you be operating facilities on the land or water for the exploration or production of hydrocarbons? ................................................................................................................................... ^ ~ If you answered "NO" to ALL questions in this section, continue to next section. If you answered "YES" to ANY of these questions, contact the DEC office nearest you for information and application forms. Please be advised that all new DEC permits and approvals require a 30-day public notice period. DEC Pesticide permits take effect no sooner than 40 days after the permit is issued. Based on your discussion with DEC, please complete the following: Types of project approvals or permits needed Date application submitted 9. Does your project qualify for a general permit for wastewater or solid waste? ............................................^ ~ Note: A general permit is an approval issued by DEC for certain types of routine activities. If you answered "YES" to any questions in this section and are not applying for DEC permits, indicate reason: ^ (DEC contact) told me on that no DEC approvals are required on this project because ^ Other: ^ DEPARTMENT OF FISH & GAME (DFG) APPROVALS 1. Will you be working in, removing water or material from, or placing anything in, a stream, river or lake? (This includes work or activities below the ordinary high water mark or on ice, in the active flood plain, on islands, in or on the face of the banks, or, for streams entering or flowing through tidelands, above the level of mean lower low tide.) Note: If the proposed project is located within a special flood hazard area, a floodplain development permit may be required. Contact the affected city or borough planning department for additional information and a jloodplain determination.) .............. ^ ~ Dame of waterbody: Will you do any of the following :................................................................................................................... ^ ~ Please indicate below: ^ Build a dam, river training structure, other ^ Build a bridge (including an ice bridge) instream impoundment, or weir ^ Use the stream, lake or waterbody as a road ^ Use the water (even when frozen), or cross the stream with ^ Pump water into or out of stream or lake tracked or wheeled vehicles, log-dragging or (including dry channels) excavation equipment (backhoes, bulldozers, ^ Divert or alter the natural stream channel etc.) ^ Change the water flow or the stream channel ^ Install a culvert or other drainage structure ^ Introduce silt, gravel, rock, petroleum products, ^ Construct, place, excavate, dispose or remove debris, brush, trees, chemicals, or other any material below the ordinary high water of a organic/inorganic material, including waste of waterbody any type, into the water ^ Construct a storm water discharge or drain into ^ Alter, stabilize or restore the banks of a river, the waterbody stream or lake (provide number of linear feet ^ Place pilings or anchors affected along the bank(s) ^ Construct a dock ^ Mine, dig in, or remove material, including ^ Construct a utility line crossing woody debris, from the beds or banks of a ^ Maintain or repair an existing structure waterbody ^ Use an instream in-water structure not ^ Use explosives in or near a waterbody mentioned here Revised 1/99 Page 4 • :~ Yes No 3. Is your project located in a designated State Game Refuge, Critical Habitat Area or State Game Sanctuary? ..................................................................................................................................^ ~ 4. Does your project include the construction/operation of a salmon hatchery? ............................................... ^ ~ 5. Does your project affect, or is it related to, a previously permitted salmon hatchery? .................................^ ~ 6. Does your project include the construction of an aquatic farm? ....................................................................^ ~ If you answered "No" to ALL questions in this section, continue to nest section. If you answered "Yes" to ANY questions under 1-3, contact the Regional or Area DFG Habitat and Restoration Division Office for information and application forms. If ti-ou answered "Yes" to ANY questions under 4-6, contact the DFG Commercial Fisheries Division headquarters for information and application forms. Based on your discussion with DFG, please complete the following: Types of project approvals or permits needed Date application submitted If ~-ou answered "YES" to any questions in this section and are not applying for DFG permits, indicate reason: ^ (DFG contact) told me on that no DFG approvals are required on this project because ^ Other: ^ DEPARTMENT OF NATURAL RESOURCES (DNR) APPROVALS Is the proposed project on State-owned land or water or will you need to cross State-o«ned land fOr a000S5? ("Access" includes temporary access for construction purposes. Note: !n addition to State-ox ned uplands, rTre State owns almost all land below the ordinary high water line of navigable streams, rivers and lakes, acrd below the nrearr high tide line seaward for three miles.) ............................................................................................................. ~ ^ a) Is this project for a commercial activity? ................................................................................................lg ^ 2. Is the project on Alaska Mental Health Trust land (AMHT) or will you need to cross A~'vIHT land? Vote: Alaska Mental Health Trust land is not considered State land for the purpose of RCMP reviews ................................... ^ 3. Do you plan to dredge or otherwise excavate/remove materials on State-owned land?....... Location of dredging site if different than the project site: Township Range Section Meridian USGS Quad Afap 4. Do you plan to place fill or dredged material on State-owned land? ............................................................. ^ Location of fill disposal site if other than the project site: Township Range Section Meridian USGS Quad ~iap Source is on: ^ State Land ^ Federal Land ^ Private Land ^ Municipal Land 5 Do you plan to use any of the following State-owned resources :..................................................................^ ^ Timber: Will you be harvesting timber? Amount: ^ Materials such as rock, sand or gravel, peat, soil, overbzzrden, etc.:....... Which material? Amount: Location of source: ^ Project site ^ Other, describe: Township Range Section Meridian USGS Quad Map Revised '. 99 Page S Yes No 6. Are you planning to divert, impound, withdraw, or use any fresh water, except from an existing public water system or roof rain catchment system (regardless of land ownership)? ................................... ^ $I Amount (maximum daily, not average, in gallons per day): Source: Intended Use: If yes, will your project affect the availability of water to anyone holding water rights to that water? ........^ ^ 7. Will you be building or altering a dam (regardless of land ownership)? .......................................................^ ~ 8. Do you plan to drill a geothermal well (regardless of land ownership)? ....................................................... ^ ~' 9. At any one site (regardless of land ownership), do you plan to do any of the following? ............................^ (!~ ^ Mine five or more acres over a year's time ^ Mine 50,000 cubic yards or more of materials (rock, sand or gravel, soil, peat, overburden, etc.) over a year's time ^ Have a cumulative unreclaimed mined area of five or more acres If yes to any of the above, contact DNR about a reclamation plan. If you plan to mine less than the acreage/amount stated above and have a cumulative unreclaimed mined area of less than five acres, do you intend to file a voluntary reclamation plan for approval? ..........^ ^ 10. Will you be exploring for or extracting coal? ................................................................................................ ^ ~ 11. a) Will you be exploring for or producing oil and gas? ..............................................................................^ ~ b) Will you be conducting surface use activities on an oil and gas lease or within an oil and gas unit? ....^ 12. Will you be investigating, removing, or impacting historical or archaeological or paleontological resources (anything over 50 years old) on State-owned land? .......................................................................^ ®' 13. Is the proposed project located within a known geophysical hazard area? ...................................................^ ~ Note: 6.4AC 80.900(9) defines geophysical hazard areas as "those areas which present a threat to life or property from geophysical or geological hazards, including,Jlooding, tsunami run-up, storm surge run-up, landslides, snowslides, faults, ice hazards, erosion, and littoral beach process. " "known geophysical hazard area" means any area identified in a report or map published by a federal, state, or local agency, or by a geological or engineering consulting firm, or generally known br local ~~iowledge, as having known or potential hazards from geologic, seismic, or hydrologic processes. 14. Is the proposed project located in a unit of the Alaska State Park System? ..................................................^ ®' If you answered "No" to ALL questions in this section, continue to Federal Approvals section. If you answered "Yes" to ANY questions in this section, contact DNR for information. Based on your discussion with DNR, please complete the following: Types of project approvals or permits needed Date application submitted -M_ _;s~t!(...xrews ,CaK.I use P~,r~.~,:~' 03/03/0 If ~~ou answered "YES" to any questions in this section and are not applying for DNR permits, indicate reason: ^ (DNR contact) told me on that no DNR approvals are required on this project because ^ Other: Revised 1/99 Page6 L' ^ FEDERAL APPROVALS Yes No U.S. Army Corps of Engineers (COE) 1. Will you be dredging or placing structures or fills in any of the following: tidal (ocean) waters? streams? lakes? wetlands*? .........................................................................................^ ~ If yes, have you applied for a COE permit? ............................................................................................^ ^ Date of submittal: (Note: Your application for this activity to the COE also serves as application for DEC Water Quality Certification.) 'If you are not certain whether your proposed project is in a wetlands (wetlands include muskegs), contact the COE, Regedatory Branch at (907) 753-2720 for a wetlands determination (outside the Anchorage area call toll free 1-800-478-2712). Bureau of Land Management (BLM) 2. Is the proposed project located on BLM land, or will you need to cross BLM land for access? ..................^ If yes, have you applied for a BLM permit or approval? ........................................................................ ^ ^ Date of submittal: U.S. Coast Guard (USCG) 3. a) Will you be constructing a bridge or causeway over tidal (ocean) waters, or navigable rivers, streams or lakes? ..................................................................................................................................... ^ b) Does your project involve building an access to an island? ....................................................................^ c) Will you be siting, constructing, or operating a deepwater port? ........................................................... ^ If yes, have you applied for a USCG permit? ..................................................................................^ ^ Date of submittal: U.S. Environmental Protection Agency (EPA) 4. a) Wili the proposed project have a discharge to any waters? ....................................................................^ ~ b) Will you be disposing of sewage sludge (contact EPA at 206-553-1941)? ...........................................^ ~ If you answered yes to a) orb), have you applied for an EPA National Pollution Discharge Elimination System (NPDES) permit? .............................................................................................^ ^ Date of submittal: (Note: For information regarding the need for an NPDES permit, contact EPA at (800) 424-4372.) c) Will construction of your project expose 5 or more acres of soil? (This applies to the total amount of land disturbed, even if disturbance is distributed over more than one season, and also applies to areas that are part of g P f P ) ...................................... alar ercommon lano develo mentorsale. ••..••••.•••••••••••••••••••••••••••••••••••••••••••••••••••••^ d) Is your project an industrial facility which will have stormwater discharge which is directly related to manufacturing, processing, or raw materials storage areas at an industrial plant? ................ ^ If you answered yes to c) or d), your project may require an NPDES Stormwater permit. Contact EPA at 206-553-8399. Federal Aviation Administration (FAA) 5. a) Is your project located within five miles of any public airport? .............................................................^ ~ b) Will you have a waste discharge that is likely to decay within 5,000 feet of any public airport?..........^ ~ If yes, please contact the Airports Division of the FAA at (907) 271-5444. Federal Energy Regulatory Commission (FERC) 6. a) Does the project include any of the following: 1) anon-federal hydroelectric project on any navigable body of water ............................................... ^ 2) a location on federal land (including transmission lines) .................................................................^ ~ 3) utilization of surplus water from any federal government dam .......................................................^ ~ b) Does the project include construction and operation, or abandonment of natural gas pipeline facilities under sections (b) and (c) of the Federal Power Act (FPA)? ................................................... ^ ~ Revised 1199 Page 7 • Yes No c) Does the project include construction for physical interconnection of electric transmission facilities under section 202 (b) of the FPA? ........................................................................................... ^ If you answered yes to any questions under number 6, have you applied for a permit from FERC? ...........:.................................................................................................................................. ^ ^ bate of suhmittal~ (Note: For information, contact FERC, Office of Hydropower Licensing (202) 219- 2668; Office of Pipeline Regulation (202) 208-0700; Office of Electric Power Regulation (202) 208-1200.) U.S. Forest Service (USFS) 7. a) Does the proposed project involve construction on USFS land? ............................................................^ b) Does the proposed project involve the crossing of USFS land with a water line? .................................^ If the answer to either question is yes, have you applied for a USFS permit or approval? .............^ ^ Date of submittal: __ 8. Have you applied for any other federal permits or authorizations? ...............................................................^ ~ AGENCY APPROVAL TYPE DATE SUBMITTED Please be advised that the CPQ identifies permits subject to a consistency review. You may need additional permits from other agencies or the affected city and/or borough government to proceed with your activity. Certification Statement The information contained herein is true and complete to the best of my knowledge. I certify that the proposed activity complies with, and will be conducted in a manner consistent with, the Alaska Coastal Management Program. 03 d 'a3 Si re of Applicant or Agent Date Note: Federal agencies conducting an activity that will affect the coastal zone are required to submit a federal consistency determination, per 15 CFR 930, Subpart C, rather than this certification statement. DGC has develo ed a ide to assist federal a encies with this re uirement. Contact DGC to obtain a co This certification statement will not be complete until all required State and federal authorization requests have been submitted to the appropriate agencies. ^ To complete your packet, please attach your State permit applications and copies of your federal permit applications to this questionnaire. Revised 1199 Page 8 ~3 • • s~ ~. V March 3, 2003 F O R E S T O I L C O R P O R A T I O N ~.~>~~i~ 1'.x,5'-;1'/>'b~- o ~.9/.'i~ ~~i.S'-.4/(~/ ~r'%icr~ Dr. Mark Myers Director, Division of Oil and Gas Department of Natural Resources 550 W. 7~' Avenue, Suite 800 Anchorage, Alaska 99501 Re: ADL- 387023; Converting Kustatan Field ("KF") #1 well to injection/disposal well Dear Dr. Myers: Please accept this. letter as the request of Forest Oil Corporation ("Forest") to suspend the abandonment requirements of the referenced lease relative to the KF #1 well. Under separate cover Forest has also submitted an application to your Division for a Miscellaneous Land Use Permit to convert the KF #1 well to an injection and disposal well, which will be operated subject to the jurisdiction of the Alaska Oil and Gas Conservation Commission ("AOGCC"). The KF #1 well is a critical component for the processing of oil production from the Redoubt Unit. Therefore, Forest requests that the lease abandonment requirements, relative to the KF #1 well, be suspended for so long as the KF #1 well is utilized as an injection or disposal well serving State of Alaska oil and gas leases. Forest has also applied to the AOGCC, as operator of the KF #1 well, for the requisite injection order approvals and, if applicable, aquifer exemptions. Forest drilled the KF #1 well as an exploratory well on acreage it owns in fee subject to the terms of the referenced State of Alaska oil and gas lease, recently terminated. While the KF #1 well has no value as a producing well, it has significant utilitarian value as an injection/disposal well. The entire well bore is located underneath acreage owned in fee by Forest. However, the State of Alaska owns the mineral estate. The well pad for this well is located directly adjacent to the Kustatan Production Facility built by Forest on its fee acreage to process the oil and gas produced from the offshore Redoubt Unit. I would be pleased to provide you or your staff any additional information you might need or require regarding Forest's request or the Redoubt Unit operations to assist you in your decision. Sincerely, FOREST OIL CORPORATION ~-~•~~ Jim Arlington Land Manager, Alaska Business Unit Cc: Alaska Oil and Gas Conservation Commission - L.Lo% 7WId STATE OF ALASKA NOTICE TO PUBLISHER ~ ADVERTISING ORDER NO. ADVERTISING ORDER INV ST BE IN TRIPLIC( TE SHOWING ADVERTISING ORDER RTIFIED AFFID OF PUBLICATION PART2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE p 0.02314037 A SE BOTTOM FOR I VOICE ADDRESS F R AOGCC 333 W 7th Ave, Ste 100 AGENCY CONTACT Jod Colombie DATE OF A.O. March 4 2003 ° M Anchorage, AK 99501 PHONE PCN ENT REQUIRED: o Anchorage Daily News P O Box 149001 Arichora e AK 99514 g ~ March 6E2OO3 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIALIN5TRUCTIONS: Account #STOF0330 Advertisement to be published was e-mailed Type of Advertisement X Legal ^ Display ^ Classified ^Other (Specify) SEE ATTACHED PUBLIC HEARING .SEND INVOICE W TRIPLICATE TO AOGCC, 333 W. 7th Ave., Suite 100 Anchors e AK 99501 PAGE 1 OF 2 PAGES TOTAL OF ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN z ARC 02910 3 4 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST LIQ ~ 03 02140100 73540 2 3 4 REQUISITIONE BY: DIVISI N APPROVAL: -~- ~ ~'l~ 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving Ao.FRM Notice of Public Hearing • STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Kustatan Field Well No. 1 Disposal Injection Order Section 4, T07N, R14W, Seward Meridian, Alaska Forest Oil Corporation by application dated February 28, 2003, has applied for a Disposal Injection Order for Kustatan Field Well #1 pursuant to 20 AAC 25.252. The Commission has tentatively set a public hearing on this application for April 15, 2003 at 9:00 am at the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on April 7, 2003. If a request for a hearing is not timely filed, the Commission will consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please ca11793-1221. In addition, a person may submit written comments regarding this application to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Written comments must be received no later than 4:30 pm on April 7, 2003, except that if the Commission decides to hold a public hearing, written comments must be received no later than 9:00 am on April 15, 2003. 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 Jody Colombie at 793-1221 before April 7, 2003. ~~~~~-C Randy Ruedrich Commissioner Published Date: March 6, 2003 ADN AO# 02314037 ~nchorage Daily News ~ - '"'' Affidavit of Publication 1001 Norlhway Drive, Anchorage, AK 99508 PRICE OTHER OTHER OTHER OTHER OTHER GRAND AD # DATE. PO ACCOUNT PER DAY CHARGES CHARGES #2 CHARGES #3 CHARGES #4 CHARGES #5 TOTAL 733355 03/06/2003 02314037 STOF0330_ _ $141.00 $141.00 $0.00 $0.00 $0.00 $0.00 $0.00 $141.00 STATE OF ALASKA THIRD JUDICIAL DISTRICT Kimberly A. Kirby, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place clf publication of said newspaper. Tha± the annexed is a copy of an advertisement as it was published in regular issues. (and not in supplemental form) of said newspaper oil the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full. amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Subscribed ar~worn to me befo>~~'fhis date: 3~~1-03 Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska MY COMMISSION EXPIRES: ```t i t l~lE t~(~~~ . ~ ~' ~. ~" ~ ~~OSAR Y '. .... L G ~ :~~ PUBL ~y. J'J'~/J~ Expsrt~~~~l~~~ J111) Nofice of Public' Hearing STATE OF ALASKA Alaska Oil and Gas ConservaflooCommission Re: Kustatan Fieid Welf No. i Disposal Infection Order Section 4, T07N, R14W, Seward Meridian, Alaska Forest OiTCorporation by application dated February 28, 2003, has applied for. a Dispo~I Iniec- tion Order for Kustatan Field -Weff:#1 pursU7ant to 20 AAC 25.252. The Commission has Tentatively set a public hearing on ThisaPPlicaTion for April 15,2003`at9:00 am at the Alaska Oil and Gas Conservation Com- mission at 333 West 7th Avenue, Suite 100, Anchor- age, Alaskq 99501. A person may requestShaT the tentatively scheduled hearing be held bu #i0ng b written request with the Commission no ldter.Than 4:30 pm on April 7,2003. If a request fora hearing is nottimely filed, the Commission will consider the issuance of an order withouYa hearing. To learn if the Commis- sion will hold the public hearing, please tail.' 793-122L In addition, a person may submitwritten comments regarding this applicdtion To the Alaska Oil and Gas Conservation Commission at 333 West .7Th Avenue, SuiTe.100, Anchora9~. Alaska 99501. Written commenTsmust be r@ce#ved no later Than 4:30 pm on April 7, 2003, excelat ihat,if-The Com- mission decides To hold a public hearing, written comments must be received no lafer than 9:00 am on April 15, 2003. 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 Jodv Colombie aT 793-1221 before April 7, 2003. Randy Ruedrich Commissioner Publish: March b, 2003 Fwd: ad ordc~ • • Subject: Fwd: ad order Date: OS Mar 2003 11:29:18 -0900 From: Legal Ads Anchorage Daily News <legalads@adn.com> To: <Jody_colombie@admin.state.ak.us> Hi Jody: Following is the confirmation information on your ad. Please also note the new contact information as Amy is no longer in this position and her email will be discontinued soon. Please let me know if you have any questions. Account Number: STOF 0330 Legal Ad Number: 733355 Publication Date(s): March 6, 2003 Your Reference #: AO 02314037 Total: $141.00 Thank You, Kim Kirby Anchorage Daily News Legal Classified Representative E-Mail: legaladsc~adn.com Phone: (907) 257-4296 Fax: (907) 279-8170 -----Original Message----- From: Jody colombie [mailto:j Sent: Tuesday, March 04, 2003 To: Heath, Amy Subject: ad order dy colombieQadmin.state.ak.us 2:16 PM Please publish the attached March 6th. Jody Name: ADNAd Order form.doc ADNAd Order form.doc Type: WINWORD File (application/msword) Encoding: base64 Name: DIO_kustatanl.doc DIO kustatanl.doc Type: WINWORD File (application/msword) Encoding: base64 begin:vcard n:Colombie;Jody tel;fax:907-276-7542 tel;work:907-793-1221 x-mozilla-htm1:FALSE adr:;;;;;; version:2.1 email;Internet:jody_colombieQadmin.state.ak.us fn:Jody colombie end:vcard 1 of 1 3/5/2003 1:10 PM STATE OF ALASKA NOTICE TO PUBLISHER ~ ADVERTISING ORDER NO. ADVERTISING INV UST BE IN TRIPLICATE SHOWING ADVERTISING ORDER ERTIFIED AFFI OF PUBLICATION PART 2 OF THIS FORM WITH ATTACHED COPY OF A 0.02314037 ' ORDER ( ) / ~ ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE 5EE BOTTOM FOR INVOIC ADDRESS AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7~' Avenue Suite 100 ° , Anchorage, AK 99501 PHONE PCN M DATE ADVERTISEMENT REQUIRED: o Anchorage Daily News March 6, 2003 P O Box 149001 Arichora e AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS g ~ ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account #STOF0330 AFFIDAVIT OF PUBLICATION United states of America REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2003, and thereafter for consecutive days, the last publication appearing on the day of .2003, 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 2003, Notary public for state of My commission expires 02-901 (Rev. 3/94) AO.FRM Page 2 PUBLISHER • Daniel Donkel 2121 North Bayshore Drive, Ste 1219 Miami, FL 33137 Jim Yancey Seal-Tite International 500 Deer Cross Drive Madisonville, LA 70447 SD Dept of Env & Natural Resources Oil and Gas Program 2050 West Main, Ste 1 Rapid City, SD 57702 Christine Hansen Interstate Oil & Gas Compact Comm Excutive Director PO Box 53127 Oklahoma City, OK 73152 Conoco Inc. Mary Jones PO Box 1267 XTO Energy, Inc. Ponca City, OK 74602-1267 Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 • John Katz State of Alaska Alaska Governor's Office 444 North Capitol St., NW, Ste 336 Washington, DC 20001 Alfred James 200 West Douglas, Ste 525 Wichita, KS 67202 Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Gregg Nady Shell E&P Company Onshore Exploration & Development PO Box 576 Houston, TX 77001-0576 Michael Nelson Paul Walker G. Scott Pfoff Purvin Gertz, Inc. Chevron Aurora Gas, LLC Library 1301 McKinney, Rm 1750 10333 Richmond Ave, Ste 710 600 Travis, Ste 2150 Houston, TX 77010 Houston, TX 77042 Houston, TX 77002 G. Havran David McCaleb William Holton, Jr. Gaffney, Cline & Associations IHS Energy Group Marathon Oil Company Library GEPS Law Department 1360 Post Oak Blvd., Ste 2500 5333 Westheimer, Ste 100 5555 San Fecipe St. Houston, TX 77056 Houston, TX 77056 Houston, TX 77056-2799 W. Allen Huckabay T.E. Alford Corry Woolington ConocoPhillips Petroleum Company ExxonMobil Exploration Company ChevronTexaco Offshore West Africa Exploration PO Box 4778 Land-Alaska 600 North Dairy Ashford Houston, TX 77210-4778 PO Box 36366 Houston, TX 77079-1175 Houston, TX 77236 Texico Exploration & Production Chevron USA Donna Williams PO Box 36366 Alaska Division World Oil Houston, TX 77236 PO Box 1635 Statistics Editor Houston, TX 77251 PO Box 2608 Houston, TX 77252 Chevron Chemical Company Shelia McNulty Shawn Sutherland Library Financial Times Unocal PO Box 2100 PO Box 25089 Revenue Accounting Houston, TX 77252-9987 Houston, TX 77265-5089 14141 Southwest Freeway Sugar Land, TX 77478 Kelly Valadez James White Doug Schultze Tesoro Refining and Marketing Co. Intrepid Prod. Co./Alaskan Crude XTO Energy Inc. Supply & Distribution 4614 Bohill 3000 North Garfield, Ste 175 300 Concord Plaza Drive SanAntonio, TX 78217 Midland, TX 79705 San Antonio, TX 78216 ~ • Robert Gravely George Vaught, Jr. Jerry Hodgden 7681 South Kit Carson Drive PO Box 13557 Hodgden Oil Company Littleton, CO 80122 Denver, CO 80201-3557 408 18th Street Golden, CO 80401-2433 Richard Neahring John Levorsen Kay Munger NRG Associates 200 North 3rd Street, #1202 Munger Oil Information Service, Inc President Boise, ID 83702 PO Box 45738 PO Box 1655 Los Angeles, CA 90045-0738 Colorado Springs, CO 80901 John F. Bergquist Samuel Van Vactor Thor Cutler OW-137 Babson and Sheppard Economic Insight Inc. US EPA egion 10 PO Box 8279 3004 SW First Ave. 1200 Sixth Ave. Long Beach, CA 90808-0279 Portland, OR 97201 Seattle, WA 98101 Michael Parks Jim Arlington Duane Vaagen Marple's Business Newsletter Forest Oil Fairweather 117 West Mercer St, Ste 200 310 K Street, Ste 700 715 L Street, Ste 7 Seattle, WA 98119-3960 Anchorage, AK 99501 Anchorage, AK 99501 Robert Mintz Ed Jones Richard Mount State of Alaska Aurora Gas, LLC State of Alaska Department of Law Vice President Department of Revenue 1031 West 4th Ave., Ste 200 1029 West 3rd Ave., Ste 220 500 West 7th Ave., Ste 500 Anchorage, AK 99501 Anchorage, AK 99501 Anchorage, AK 99501 Julie Houle Susan Hill Cammy Taylor State of Alaskan DNR State of Alaska, ADEC 1333 West 11th Ave. Div of Oil & Gas, Resource Eval. EH Anchorage, AK 99501 550 West 7th Ave., Ste 800 555 Cordova Street Anchorage, AK 99501 Anchorage, AK 99501 Williams VanDyke Tim Ryherd Trustees for Alaska State of Alaska State of Alaska 1026 West 4th Ave., Ste 201 Department of Natural Resources Department of Natural Resources Anchorage, AK 99501-1980 550 West 7th Ave., Ste 800 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Anchorage, AK 99501 Mark Wedman John Harris Ciri Halliburton NI Energy Development Land Department 6900 Arctic Blvd. Tubular PO Box 93330 Anchorage, AK 99502 3301 C Street, Ste 208 Anchorage, AK 99503 Anchorage, AK 99503 Mark Dalton Mark Hanley Schlumberger HDR Alaska Anadarko Drilling and Measurements 2525 C Street, Ste 305 3201 C Street, Ste 603 3940 Arctic Blvd., Ste 300 Anchorage, AK 99503 Anchorage, AK 99503 Anchorage, AK 99503 Jack Laasch Baker Oil Tools Rob Crotty Natchiq 4730 Business Park Blvd., #44 C/O CH2M HILL Vice President Government Affairs Anchorage, AK 99503 301 West Nothern Lights Blvd 3900 C Street, Ste 701 Anchorage, AK 99503 Anchorage, AK 99503 Judy Brady Alaska Oil & Gas Associates 121 West Fireweed Lane, Ste 207 Anchorage, AK 99503-2035 Rose Ragsdale Rose Ragsdale & Associates 3320 E. 41 st Ave Anchorage, AK 99508 Richard Prentki US Minerals Management Service 949 East 36th Ave., 3rd Floor Anchorage, AK 99508 Thomas R. Marshall, Jr. 1569 Birchwood Street Anchorage, AK 99508 Jim Ruud Phillips Alaska, Inc. Land Department PO Box 100360 Anchorage, AK 99510 Perry Markley Alyeska Pipeline Service Company Oil Movements Department 1835 So. Bragaw - MS 575 Anchorage, AK 99515 David Cusato 600 West 76th Ave., #508 Anchorage, AK 99518 Bill Bocast PACE Local 8-369 c/o BPX North Slope, Mailstop P-8 PO Box 196612 Anchorage, AK 99519 Sue Miller BP Exploration (Alaska), Inc. PO Box 196612 Anchorage, AK 99519-6612 Arlen Ehm 2420 Foxhall Dr. Anchorage, AK 99504-3342 Jeff Walker US Minerals Management Service Regional Supervisor 949 East 36th Ave., Ste 308 Anchorage, AK 99508 Jim Scherr US Minerals Management Service Resource Evaluation 949 East 36th Ave., Ste 308 Anchorage, AK 99508 Chuck O'Donnell Veco Alaska,lnc. 949 East 36th Ave., Ste 500 Anchorage, AK 99508 • Greg Noble Bureau of Land Management Energy and Minerals 6881 Abbott Loop Rd Anchorage, AK 99507 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Paul L. Craig Trading Bay Energy Corp 5432 East Northern Lights, Ste 610 Anchorage, AK 99508 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 Kristen Nelson Jordan Jacobsen IHS Energy Alyeska Pipeline Service Company PO Box 102278 Law Department Anchorage, AK 99510-2278 1835 So. Bragaw Anchorage, AK 99515 Robert Britch, PE Northern Consulting Group 2454 Telequana Dr. Anchorage, AK 99517 Tesoro Alaska Company PO Box 196272 Anchorage, AK 99519 J. Brock Riddle Marathon Oil Company Land Department PO Box 196168 Anchorage, AK 99519-6168 BP Exploration (Alaska), Inc. Land Manager PO Box 196612 Anchorage, AK 99519-6612 Jeanne Dickey BP Exploration (Alaska), Inc. Legal Department PO Box 196612 Anchorage, AK 99518 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kevin Tabler Unocal PO Box 196247 Anchorage, AK 99519-6247 Dudley Platt D.A. Platt & Associates 9852 Little Diomede Cr. Eagle River, AK 99577 Bob Shavelson Peter McKay Shannon Donnelly Cook Inlet Keeper 55441 Chinook Rd Phillips Alaska, Inc. PO Box 3269 Kenai, AK 99611 HEST-Enviromental Homer, AK 99603 PO Box 66 Kenai, AK 99611 ~ Kenai Peninsula Borough Penny Vadla Marc Kovac Economic Development Distr Box 467 PACE 8-369, Prudhoe Bay 14896 Kenai Spur Hwy #103A Ninilchik, AK , 99639 Vice-Chair Kenai, AK 99611-7000 PO Box 2973 Seward, AK 99664 Claire Caldes James Gibbs Kenai National Wildlife Refuge US Fish & Wildlife Service PO Box 1597 Refuge Manager Kenai Refuge Soldotna, AK 99669 PO Box 2139 PO Box 2139 Soldotna, AK 99669-2139 Soldotna, AK 99669 John Tanigawa Charles Boddy Richard Wagner Evergreen Well Service Company Usibelli Coal Mine, Inc. PO Box 60868 PO Box 871845 100 Cushman Street, Suite 210 Fairbanks, AK 99706 Wasilla, AK 99687 Fairbanks, AK 99701-4659 Cliff Burglin Harry Bader Bemie Karl PO Box 131 State of Alaska K&K Recycling Inc. Fairbanks, AK 99707 Department of Natural Resources PO Box 58055 3700 Airport Way Fairbanks, AK 99711 Fairbanks, AK 99709 Williams Thomas North Slope Borough Kurt Olson Arctic Slope Regional Corporation PO Box 69 State of Alaska Land Department Barrow, AK 99723 Staff to Senator Tom Wagoner PO Box 129 State Capitol Rm 427 Barrow, AK 99723 Juneau, AK 99801 Lt Governor Loren Leman State of Alaska PO Box 110015 Juneau, AK 99811-0015 ~ ~ Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Kustatan Field Well No. 1 Disposal Injection Order Section 4, T07N, R14W, Seward Meridian, Alaska Forest Oil Corporation by application dated February 28, 2003, has applied for a Disposal Injection Order for Kustatan Field Well #1 pursuant to 20 AAC 25.252. The Commission has tentatively set a public hearing on this application for April 15, 2003 at 9:00 am at the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on Apri17, 2003. If a request for a hearing is not timely filed, the Commission will consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please call 793-1221. In addition, a person may submit written comments regarding this application to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Written comments must be received no later than 4:30 pm on April 7, 2003, except that if the Commission decides to hold. a public hearing, written comments must be received no later than 9:00 am on April 15, 2003. 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 Jody Colornbie at 793-1221 before Apri17, 2003. ~~ ~~~~ Randy Ruedrich Commissioner Published Date: March 6, 2003 ADN AO# 02314037 i;. ^ _ ~~ ~ y lea Notice of Public NeaNng STATE. OF ALASKA piaska Oil and Gas Conservation Commission Re: lCustatan Field Well No. 1 Disposal Injection Order Section 4, T07N, R14W, Seward Meridian, Alaska Forest Oil Corporation by application dated February 28, 2003, has applied for a Disposal Injection Order for Kustatan Field Well #1 pursuant to 20 AAC 25.252. The Commission has tentatively set a public hearing on this application for April 15, 200:1 at 9:00 am at the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on April 7, 2003. H a request for a hearing is not timely filed, the Commission will consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please call 793-1221. In addition, a person may submit writ- ten comments regarding this application to the Alaska OiF and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Written comments must be received no later than 4:30 pm on April 7, 2003, except that 'rf the Commission decides to hold a public hearing, writ- ten-comments. must be received no later than 9:00 am on April 15, 2003. If you are a person with a disability who .may need a special modfication in order to comment or to attend the public hearing, please contact. Jody Colombia at 793-1221 before April 7, 2003. Randy Ruedrich Commissioner Published Date: March 5, 2003 r~ / `` `"~!_^~ fns ~k1 • C AFFIDAVIT OF NOTICE TO OPERATORS AND SURFACE OWNERS TO THE ALASKA OIL & GAS CONSERVATION COMMISSION In the Matter of the Application for Disposal Injection Order, Class II, pursuant to 20 AAC 25.250 (c)(3), submitted by Forest Oil Corporation forth herein; AFFIDAVIT OF PAUL WHITE Paul White, upon being duly sworn, did depose and state: drilling manager; That he is over 19 years of age and has personal knowledge of the matters set That on February 28, 2003, he was employed by Forest Oil Corporation as a That he is authorized to make this Affidavit on behalf of Forest Oil Corporation; 4. Pursuant to 20 AAC 25.250 (c)(3) he made a reasonable effort to ascertain all operators and surface owners within aone -quarter mile radius of the Kustatan Field ("KF") #1 well, which is proposed as a disposal or storage well. The names and addresses of the operators and surface owners ascertained are set forth on the address lis# contained in section 2 of the Application for Disposal Injection Order, Class II, dated February 28, 2003, submitted to the Alaska Oil and Gas Conservation Commission by Forest Oil Corporation regarding the KF #1 well (the "Application"); 5. On February 28, 2003, pursuant to 20 AAC 25.250 (c)(3), he sent a copy by certified mail of the Application to all operators and surface owners he previously ascertained to be within aone -quarter mile radius of the KF #1 well; 6. That the above information is true and correct to the best of his knowledge, information and belief. Subscrii~( and sworn to on February 28, 2003. F /J ..:..- ../ V V ~`~ Paul White STATE OF ALASKA ) SS: THIRD JUDICIAL DISTRICT ) I HEREBY CERTIFY that on the 28`h day of February 2003 before me, James D. Arlington, a notary public of the State of Alaska, personally appeared Paul White, and made his oath/affirmation in due form of law that the matters and facts set forth in the Affidavit of Paul White are true. AS WITNESS hand and notarial seal. <<(((I I f (/~r f otary Public; State of Alaska ~` ^.~; ~`Q ~oTAi~y O~ r. k C, `' . My Commission Expires: March 13, 2005 ~ ~ `' ' - ~. ~.^` ~ pUBL~G ~~~iti iL' J .J'~9~OF P~~• ~~~ .~J f JJJ • . , ~ . •i,\111~~ o-- - m fl_1 Postage $ •~ ° Certified Fee 2•'~ ~ Return Receipt Fee 1•~ ~ (Endorsement Required} _ ° ----- O Restricted Delivery Fee ° (Endorsement Required) ° Total Postage 8 Fees .~ fU ~ Name ease Print Clearly) (TO be compl m ----- ~ tre t, Apt. No-; or PO Box No- o ---v-l~---~-.--~f__r__<<f-- City, State, Z! + 4 r r~ ,/h ~ e .., _ ed by mailer) .- .. 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No.; or PO ox ~- .~~ ~-----~--~--- --~l~r-~---~~-------------------- O City, Stat P+ 4 ~^ ~ C1, (J / :~r Forest Oil Corporation Kustatan Field #1 Application for Disposal Injection Order Class II ~ ~~ ,~ ~' ' ~' ~ ~ ~ February 28, 2003 ~~ ~~fl _~, ~, .. Y y r 'fl ~ ~~ A Ri b ~ -I O O T Z F O R E S T C7 I L C O R P O R A T I O N ~ ~ ~~ '/(~'~/I ~y/r~-i-1 • ~~riJ~ ~(-(i Y e $ , February 27, 2003 ~ , Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 1 Attention: Commissioner Dan Seamount Re: Kustatan Field #1 well Application for a disposal injection order ' Dear Commissioner Seamount: Forest Oil Corporation requests authorization to inject Class II waste fluids into permeable sands of the middle Tyonek Formation, at depths below 6500 feet TVD in its Kustatan Field # 1 well. The well was drilled as an unsuccessful exploration well in 2000. The vertical well is located approximately 3443 feet from the north line, 1468 feet from the west line of Section 4, T07N, R14W, Seward Meridian. Forest Oil is the surface owner at the well's location. Enclosed is Forest Oil's application for a disposal order. Please call me if you or your staff have any questions about this request or require additional information. Forest Oil will be pleased to meet with you or answer any question you or your staff may have. Thank you. i~ ~-~ Paul D. White Drilling Manager -Alaska Division _ Forest Oil Corporation S:\1307 -Forest Oil\1307-009\1307-009-200\UIC cover Itr.doc O ~' z ~ ~ ~ m m z O ~ m TABLE OF CONTENTS LETTER OF APPLICATION SECTIONS 1. Plat -showing the location proposed, completed, or abandoned boreholes within a'/4 mile radius of the proposed disposal well. 2. List Of Operators -list of all operators and surface owners within a'/4 mile radius of the disposal well. 3. Affidavit -showing that all operators and surface owners within %4 mile have been provided a copy of this application. 4. Disposal Formation -providing name, description, depth, and thickness of the disposal formation and of the confining zones. 5. Disposal Well Logs - if not already on file with the AOGCC. 6. Mechanical Inte r~ity -mechanical condition of the disposal well and how mechanical integrity will be demonstrated 7. Wastes To Be Disposed - a list of the oilfield wastes to be disposed. 8. Injection Pressure -estimated average and maximum injection pressure. 9. Confining Zone Fractures -evidence to support a commission finding that fractures will not propagate thru the confining zone. i0. Water Quality - a standard laboratory water analysis of the disposal zone. 1 1. Aquifer Exem tp ion -reference to any applicable freshwater exemption issued and comment on the need for one. 12. Mechanical Condition - of all boreholes within a'/4 mile radius. ~ ~ • KUSTATAN FIELD #1 WELL WELLSB OREHOLES WITHIN 1/a MILE ' DISPOSAL INTO THE TYONEK FORMATION DIO Section 1 As shown on the attached plat, there are no oil and gas wells within 1/a mile of the ' Kustatan Field #1 well. There are two domestic source water wells drilled and operated by Forest Oil on the gravel pad with the Kustatan Field #l well. i~ i~ i~ i~ i~ L u • • 19 20 I i 21 I j 22 I i 23 24 I-----I - 19 j 20 j ---- ~ 21 I - 3 0 I I -- 2 9 I --i ---- I 2 8 I Foreland 1 - ----- I I 2 7 I i 1 6 _ ---- 25 I I I Foreland Qh St i I I _ -r-----r-----~ - ~F~'etand dh 6t ~ 1-A I 30 11 2g I 28 I I - - - - -I-- I -- I --~---- I -T-- --- I ----- I I - - - - I I -~------I-- I I ----~ - I 31 I I I _ 32 _ - - I 33 I i --^---- j 3 I ___ ---- 35 j I 36 I 31 I I I 32 I I I I I 33 I I I I ~ Mctlr hur Rtiv fA 6 ~ I i 4 ~U,S` 3 A TAN . ( 2 ~ ~ELD # 7 ~ 1 6 i 5 i I I 4 __- _ -t - - _ - -- ---- }------~ - ---- I - - I I I - - -~------r- I ---- - 7 I I I 8 I - 9 I I I i i 11 I I 12 I 7 I I I 8 I I 9 I ---- ~-- --- I -T------ ----- I I - - - - I I I I I - r-----r-- ---- - I 18 I I 17 I I 16 I 15 14RU11 13 I I 18 j 17 j 16 I I - I RU 1~ I I U I ---- --- ~~ i I 19 ~ ~ I - -- 20 - I I 21 I I I I i 22 I I 23 I I I bt 4 U ~~ 6 Plan I SRUZ I 20 I I I I I 1 - - ----- ~----- ----- -- -- - u-sA ~ ~ I i ~ - ------ - --- 30 I i 29 I i 28 I Redou t I 27 I Sh St 2206 1 26 I I R 25 I I I I 30 I 29 I I 28 -- I -i--- -- - I I I I I i I I I I ----- ~------I -- I --- - - I 31 I I 32 33 j 34 j 35 j 36 I 31 I I I 32 I 33 _ _ _ _I _ _ _ _ I Tenne I ,5't 36465 11 I I I I I ~ FOREST OIL CORP 1 $ 78400 KILOMETERS 0 1 2KILOMETERS KUSTRTRN FIELD #1 CLRSS ROP DISPDSRL STRTUTE MILES 0 1 2 STRTUTE MILES 2 ~ • • KUSTATAN FIELD # 1 WELL LIST OF OWNERS AND OPERATORS DIO Section 2 Surface Owners within '/4 mile: USS 12121, Lot 1. Legal description: SEWARD MERIDIAN T.7N., R.14W. Section 3 SW'/4SW'/4NW'/a W'/ZW'/zSW'/4 Section 4 S'/ZS'/ZNE'/4 SE'/4SE'/4NW'/4 fractional NE'/4NE'/4SW'/4 fractional N'/2SE'/4 fractional S'/ZSE'/4 Containing approximately 160 acres. Howard Evans, Jr., 2013 N. 17th, Springfield, OR 97477 Marcella Henrie, 13731 Capstan, Anchorage, AK 99516 Sheila Stabe, 411 Beach Rd., Altoona, WI 54720 Dennis Haugdahl, 8001 Medellin Circle, #B, Anchorage, AK 99507 Jean Orth & Wanda Haugdahl Mailed c/o Branch of Realty Bureau of Indian Affairs West-Central Alaska Field Office 3601 "C" Street, Suite 1100 Anchorage, Alaska 99503-5947 Public Site Easement (ARD Bk 3289 Pg 922) State of Alaska, Department of Natural Resources Division of Mining, Land & Water 550 W. 7th Avenue, Suite 1070 Anchorage, Alaska 99501-3560 Mineral Estate within '/4 mile: State of Alaska, Department of Natural Resources Division of Oil & Gas 550 W. 7th Avenue, Suite 800 Anchorage, Alaska 99501-3560 i~ I~ ~ ~~1 ~~/ ( / --- PoND ~ ~ / ~-~-n i ~ ~ 2 ~ \ / ~ ~ LOT t IL t S~RIEIR /YC! fll:J ~ o / ~ \ a~ ~~ PUBLIC 91E EASEMENT O EASEMENT (1 ACRE) ~wf w~ AN ~R~R ARD ex 3289 PG 922 ~ o~ t}2p aT RCS WI ~ ~ a~Rrn T.r T• ~/If/ ~ / ~ '~ \-AA IIWM/I~~ rfW ~ wiY. ~/ / ~ 1` ~ / ~ PUBl1C SITE EASEMENT ' , UNNAMED LAKE EASEMENt (t ACRE) \ \ ~ ~~/ ~ ARD BK }289 PG 922 /. \ / 1998 MEANDER t9fE ~ / ~ ORDINARY NIOI WATFR PUBLIC ACCESS ~/ / EASEMENT 25' `MDE ~ ARD Blt 3289 PC 922 ~~ / // ~~ / / \ ~ ~i ~\ ~ LOT f fLt lLRIET MZ ~16t7 ~ ;~ /' i / ~~ \ i I>8191II. ~ aBaa~~ ~ \ NGS STAnpI - .. - .. ~ `~ L~ \ ` xUSTATAN / ® \ ,~ ~, ~ a ~1 EASENENT~(1gACRE) ~~\~ ' may' ~ ya~a~ I9Y{ KK/ u J \ \ ARD Bx 1248 PG 922 i m ~~ 1 ~~ ~ ~ ~ ny ~ ~p a \ \ udAb~~ n a \ ~ ~ cron ~ M `i~a a-._ , ~ ~ __ ~ AAN~TEyRNI aiNfRl O ..~~ !y'~.- ~ S~ DSI'AIIa -~\A\: ~~ i / ~ ov'9°°EA"LNA n~wfei n u~ ~IJBEY Mi ~[7 ak1E LOT l ~\ BIN / '~f SaKDS ~~T \ a ~ /~ I u 9 G ~ iRAME / Ha15E B 9~ 90ARDWAII! / PRIVY / ] ~ ~ A Stab lz eD' ACNC J OCaDM ~ ~ ~~ ~~ ttNE ~~' ~~~ ce ~ ~~ O LL x SICRIEY NCl f~ ; - -~ LEGEND AND NOTES FOUND STANDARD BLM BRASS CAP .1. ATTACHED TO REGULATION POST T AS DESCRIBED M THL OFFICIAL RECORD. • FOUND 2" DIAM. CONCRETE FILLED IRON PIPE. • FOUND NATIONAL GEODETIC COMROL STATION AS DESCRIBED IIJ THE OFFICIAL RECORD. --- TRACT B U.S. SURVEY N / U.S. SURVEY NO. 1999, L AND 2 U.S. SURVEY NO. AND LOT 2 U.S. SURVEY N STATE OF ALASKP KENAI PENINSULA BOR ANCHORAGE RECORDING I To Foreen«gy Inc., amt Pacific Northwest" NORTH This is to c-nify that this map or plat atRl the which it is bas d were made (i) in accordarc• "Minimum Standard Detail Requirements fa ACSM Land Title Surveys."jointly establish PHIC SCALE GR adopted by ALTA attd ACSM in 1997, and ( A the accuracy standards (as adoped by ALTP ~ ~ and in efRxt on the date of This certification) "Rural" Survey including Ircrm 1.2, a and 7 t f n ~o/n property survey d contains 346.614 acres cot ~~fl - """~~~ Slnv yed By: McLANE CONSULTING GROUP % ~ ~\ f Engineers, Surveyors and Planners fftl''~sp P.O. Box 468 Soldotna, AK 99669 M. Scon McLane TBN mAD PROC } 2 t 6 o n t2 T e s to t} to n 2 u 21 t9 20 `o ~~~~ a 'y 2s n ~ ~ >s a ss at sz Th I T7N e e REDOUBT BAY VICMITY MAP Scale 1" = I 1 ~i~ L~h7~wLYC iM~ Siwatcdm nc~ Stateo(Alaska. Kenai Prninsub Banwgl Cw,k Idel within RcdnuN Bay appmximatcty?0 miles n City of Kenai within Township ] NmR Range 10 N'cst: b,undcd and described ss (dbws PARCEL 1 U.S. Survey No. 1999 scording to the oRcbl plat m f4 Land Nanagcment.locelcdwithiri the McM.ng< Ra~vc Uisuict. SMIe of Alaska ttmuir~ing 1`'.19] eon mire,v I PARCEL 2 Lot 1 U.S. Survey Nn. ash] according lu Urc nR ial plat lard S1anagemcnt, located within nc~ AxMragc RR Uistnri Smrc nfAMSka cnnlaming 1 M1.5J~ acrc.navc~v PARCEL3 Lm? U 5. Survey Nn. as?] acmrdi~ n, Ne ore ial pW LaM Management. hrcarcd within the McM,ngc R¢,xc UistricL Stare of Aaska containing a X0.1 m.x nr ku. PARCEL4 Lm 2 us. sarvey N~,. 1? m a<mmi~ w nr nm<ial pk LaM .Management. h,carcd within the Anclurrage Raree Uisuicl Slarc o(AMSIu containing 1 M1 I M113acrczm~vr iv ae~ PARCEL 5 Trx~tBU.S. Survey No. }M1}acc~xding u, IheoR<blpb LaM Managcm<nt. located within the McMrrage Rtt,xt ITSmCL Slarc of Alaska containing a fi]0. aacs mom iv k v AFFIDAVIT OF NOTICE TO OPERATORS AND SURFACE OWNERS TO THE ALASKA OIL & GAS CONSERVATION COMMISSION In the Matter of the Application for Disposal Injection Order, Class II, pursuant to 20 AAC 25.250 (c}(3), submitted by Forest Oil Corporation AFFIDAVIT OF PAUL WHITE Paul White, upon being duly sworn, did depose and state: 1. That he is over 19 years of age and has personal knowledge of the matters set forth herein; 2. That on February 28, 2003, he was employed by Forest Oil Corporation as a drilling manager; 3. That he is authorized to make this Affidavit on behalf of Forest Oil Corporation; 4. Pursuant to 20 AAC 25.250 (c)(3) he made a reasonable effort to ascertain all operators and surface owners within aone -quarter mile radius of the Kustatan Field ("KF") #1 well, which is proposed as a disposal or storage well. The names and addresses of the operators and surface owners ascertained are set forth on the address list contained in section 2 of the Application for Disposal Injection Order, Class II, dated February 28, 2003, submitted to the Alaska Oil and Gas Conservation Commission by Forest Oil Corporation regarding the KF #1 well (the "Application"); 5. On February 28, 2003, pursuant to 20 AAC 25.250 (c)(3), he sent a copy by certified mail of the Application to all operators and surface owners he previously ascertained to be within aone -quarter mile radius of the KF #1 well; 6. That the above information is true and correct to the best of his knowledge, information and belief. Subscribed and sworn to on February 28, 2003. Paul White STATE OF ALASKA ) SS: THIRD JUDICIAL DISTRICT ) I HEREBY CERTIFY that on the 28`h day of February 2003 before me, James D. Arlington, a notary public of the State of Alaska, personally appeared Paul White, and made his oath/affirmation in due form of law that the matters and facts set forth in the Affidavit of Paul White are true. AS WITNESS my hand and notarial seal. Notary Public, State of Alaska My Commission Expires: March 13, 2005 J M ' KUSTATAN FIELD # 1 WELL DISPOSAL FORMATION ' DIO Section 4 The Tyonek formation is Tertiary in age and is composed of fine to medium grained ' sandstones, with interbedded claystones, siltstones and coals. The Tyonek is approximately 9,000 feet thick and was deposited in a meadering-fluvial depositional setting. Individual stream channels sands are generally laterally continuous and can be as much as 100 feet thick. The interbedded siltstones, claystones and coals are considered to be over-bank deposits in this type of setting, and act as vertical confining zones. i~ ii i~ i~ i~ i~ i~ ;Q~ ~~ COMPANY: Date Plotted: 21-Feb-20p3 SAND LIDS 2 150 y~ Q~ GR a DI3 ZONE 2 DIS PSRFS 1 DT 3 PHIS 1 0.2 200000 140 US F 40 0.5 V V AT90 3 RH08 3 DT 3 2 1450•-r 1700 1500 ~ 1750 1550-r 1800 1600 1850 - ,_ ' 1650 1900- 1700 -r 1950 1750 ~ 2000 1800 ~ 2050 Farest Oil Corp. SURFACE ELEVATION: 230.1 LOCATION: 3443' FNL 8~ 1468' FWL DATUM FOR ELEVATION: GROUND LEVEL DRILLERS DEPTH: 12300 ELEVATION MEAS. REF.: 260 DATE LOGGED: Geologist: arts r 15601 1850•~•r 2100 [I$ • ~ KUSTATAN FIELD #1 WELL MECHANICAL INTEGRITY FOR DISPOSAL INTO THE TYONEK FORMATION DIO Section 6 The Kustatan Field # 1 well is currently completed with 20" conductor driven to 120' MD, 13-3/8" casing cemented at 1820' MD, 9-5/8" casing cemented at 6500' MD and 7- 5/8" liner cemented at 12,300' MD. There is no tubing in the well and it is filled with 9.6 ppg water base mud. The well will be entered to prepare it for disposal operations. The following work and testing will be performed: 1. The water base mud will be displaced with 9% KCL and the USIT log will be run from 5000 to 6312 ft. (top of liner) to demonstrate the adequacy of the 9-5/8" shoe cement job -this constitutes demonstration of Mechanical Integrity Part II. 2. The 7-518" liner will be perforated from b750 to 6800 ft. A Baker retrievable hydraulic packer will be run on 2-7/8" b.5#, L-80, EUE, TK-2 plastic coated tubing and set at 6280 ft. The BOPE will be removed and a 5000 psi injection tree will be installed and tested. The tubing-casing annulus will be pressure tested to 1600 psi (.25psi/ft x 6280ft) to demonstrate Mechanical Integrity Part I. r, KUSTATAN FIELD # 1 WELL CLASS II WASTES FOR DISPOSAL INTO THE TYONEK FORMATION DIO Section 7 Only class II wastes will be disposed of into the middle Tyonek Formation of the Kustatan Field #1 well. The main fluid will be produced water from the Redoubt Shoal Oil Field including the Kustatan Production Facility. However, at times it may be necessary to dispose of other Class II fluids. Following is a complete list of Class II fluids which may be injected for disposal into the middle Tyonek Formation of the Kustatan Field # 1 well: • produced water, • drilling, completion, and workover fluids, • rig wash fluids, • drilling mud slurries, • NORM scale slurries, • tank bottoms, • boiler blowdown • other fluids brought to the surface in connection with oil and gas development activities. i~ i~ • • KUSTATAN FIELD #l WELL ' INJECTION PRESSURE FOR DISPOSAL INTO THE TYONEK FORMATION DIO Section 8 Disposal into the middle Tyonek Formation in Kustatan Field # 1 well is expected to be at about the same or lower injection pressures than are experienced while injecting into the upper Tyonek Formation of the Redoubt Unit #D-1 well. These pressures averaged about 3600 psig with maximum pressures of about 4500 psig. Based on the above described ex rience, Forest estimates that in the Kustatan Field # 1 i?e ' well the average disposal injection pressure will be about 3b00 psig and the maximum disposal injection pressure will be about 4500 psig_ i~ i~ i~ i~ ii i~ i~ i~ i~ i~ i~ 9 ~ • • L 0 ii 0 0 0 1 KUSTATAN FIELD # 1 WELL FRACTURE ANALYSIS FOR DISPOSAL INTO THE TYONEK FORMATION DIO Section 9 The concern when conducting underground disposal of fluids is that they not contaminate overlying freshwaters. To insure no contamination, there must be overlying confining zones between the disposal formation and the freshwater sands (also, the casing must be cemented so that disposal fluids cannot flow up the annulus between the casing and the formation). In addition, disposal operations must be conducted at pressures that wilt not fracture the overlying confining zone An extensive fracture analysis was performed on sands in the upper Tyonek Formation in the Redoubt Unit #D-1 well (RU #D-1}. This analysis (copy attached) was performed for Forest Oil Company by BJ Services Company, U.S.A. The simulations showed that the injected fluids were fully contained in the described sand groups which constitute a part of the upper Tyonek Formation. Simulations were run on two sand groups with total simulated injection of almost 60,000 barrels; the effects only extended 54.6 and 56.8 feet into the disposal zone. The RU #D-1 well is approximately 3 miles from the KF #1 well; the Tyonek Formation appears to be correlatable between the wells. The intended disposal interval in KF # 1 is in the middle Tyonek, below the simulated zone (upper Tyonek) in RU #D-1. Disposal into the middle Tyonek in the KF #1 is even farther from the overlying confining zones than the simulation performed in the upper Tyonek in RU #D-I. Therefore, Forest believes that there is an even lower possibility of fracturing the confining zone in KF-#1 than in RU #D-1, • .. April 24, 2001 Mr. Rob Stinson Forest Oil Corporation 310 K. Street, Suite.700 Anchorage, Alaska 99501 Deaz Mr. Stinson, BJ Services Company, USA welcomes the opportunity to provide Forest Oil Corporation with the attached fracture simulations for the RUDI well. As requested simulations have been performed for Sands No's 3, 4 and 5 as a group and for Sand No. 12 as a discreet package. The simulations are based on the treatment parameters and LAS well log data provided by Forest Oil Corporation previously. Each simulation includes a total volume of I,000,000 gallons (23,810 bbls) of a 10.5 ppg fluid system transporting 5 ppg 100 mesh sand at a pump rate of S bpm. The resulting simulator output data shows the injected fluids to be fully contained within the sand packages described above. For you review you will find output data in numeric and plot formats. BJ Services Company is proud to offer Forest Oil Corporation the highest quality products and services currently available in the oil and gas industry. We have enjoyed an excellent business relationship with Forest Oil in the past and we look forward to a continued success. Should you .have any questions concerning the information discussed in th.is,l..etter or any of our products and services please contact me at our Pacific Region Office (907) 349-6518. '~ ~~ BJ S~RVI~S COMPANY, U.S.A. Corporate Account Manager cc: Internal Customer Distribution BJ Services Company, U.S.A. 6927 Old Seward Hwy., Suite 105 Anchorage, AK 99518 OAice: (907) 349-6518 Fax: (907) 349-1486 FracproPT10.0 Hydraulic Fracture Analysis Date: April 24, 2001 Wellname: Redoubt Unit#1 Location: Cook Inlet Basin, Alaska. Formatting: Sand#3, #4, #5 Job Date: 4/18/2001 12:44:44 PM Filename: Ru-1-345 Fracture Geometry Summary Fracture Half-Length (ft 0 Pro ed Half-Length (ft) 0 Total Fracture Height ft 0 otal Prop ed Height ft) 0 De th to Fracture Top (ft) 3784 ax. Fracture Width (in 0.01 De th to Fracture Bottom ft) 3784 v .Fracture Width (in 0.01 Equivalent Number of Multi le Fracs 1.0 vg. Proppant Concentration Ib/f~) 0.00 Fracture Slurry Efficiency 0.00 All values reported are for a single fracture Model has run until 5849.00 min Fracture Conductivity Summary Dimensionless Conductivi 0.00 Ref. Formation Pemneabili mD 1000.0 Proppant Damage Factor 0.50 Proppant Permeability (mD 20000 All values reported are for a single fracture Fracture Pressure Summary Model Net Pressure ~ si - -530 BH Fractare Elosure Stress- ( si ~7 Observed Net Pressure ( si) 0 losure Stress Gradient ( sift .726 0 Hydrostatic Head ( si 2474 urface Pressure ( si) 0 Averages reported during Main Frac Fracture Geometry Summary otal Clean Fluid Pum d (bbls 29184 otal Pro ant Pum ed klbs 5000.9 Total Slurry Pumped (bbls) 29184 otal Proppant in Fracture (klbs) 0.0 Pad Volume (bbls) 0 vg. Hydraulic Horsepower (hp) 117 Pad Fraction (°~) 0 Max. Hydraulic Horsepower (hp) 38176 Main Fluid DISPOSAL Main Proppant 100-Mesh FLUID Averages reported during Main Frac FracproPT10.0 1 C:UBG Documents~Ru-1-345 Fracture Conquctivlty (mu•>R~ Stage # Length ~ft~ UpperHt (ft LowerHt (ft) Upper Cond mD•ft 00 0 Lower Cond mD•ft 00 0 1 54.6 54.6 54.6 . . Concentration of Proppant in Fracture (Ib/ft2) Stage # Length UpperHt LowerHt Upper Conc Lower Conc ft ft ft 1 54.6 54.6 54.6 0.00 0.00 Stage Elapsed # Time min.sec Wellbore Fluid 1 5838:39 2 5848:39 Treatment Schedule Fluid Clean Prop Stage Type Volume k al Conc. Prop. klbs DISPOSAL 3.0 FLUID DISPOSAL 1000.0 5.00 5000.0 FLUID SHUT-IN 0.0 _ 0.00 0.0 Scheduled clean vol (kga~ Scheduled slurry vol (legal) FracproPT 10.0 Slurry Proppant Rate TYPe b m 5.00 100-Mesh 0.00 1000.00 Scheduled sand total (klbs) 5000.00 1226.12 2 C:UBG Documents~Ru-1-345 All Fluid info is at a reservoir temperature of 140.0 (°F) All Vscosities at Shear Rate of 511 (1/sec) Fluid Parameters Fluid Name DISPOSAL FLUID Initial Rheolog iscosity 1.01 n' 1.000 k' .100e-05 Rheolog 4.0 hours iscosity 1.01 n' 1.000 k' .100e-OS Gel Density 1.25 urt Loss .0 all Building .0 Flowrate #1 10.00 Fric Press #1 17.66 Flowrate #2 0.00 Fric Press #2 4.11 Flowrate #3 0.00 Fric Press #3 32.7 B Fric Mult .100 Wellbore Friction pressures shown are the interpolated values multiplied by the Wellbore Friction Multiplier. Viscosity 'is displayed in (cp) K' is displayed in (Ibf•s^n/ft~ Gel Density is displayed as (sg) Spurt Loss is displayed in (gal/ft~ Wall Building is displayed in (ft/min'/Z) Friction pressure is displayed in (psi/1000 ft) Flowrate is displayed in (bpm) Friction is displayed for longest Wellbore segment FracproPT10.0 5 C:UBG Documents~Ru-1-345 ~ ~ LeakoffParameters Reservoir type Gas Filtrate to reservoir fluid perm. ratio, Kp/KI 10 Reservoir pore pressure (psi 1646 Initial fracturing pressure (psi) 3248 Reservoir fluid compressibility (1/psi) 6.08e-004 Cold filtrate viscosity (cp) 1.00 Hot filtrate viscosity (cp) 1.00 Cold reservoir viscosity (cp) 0.03 Hot reservoir viscosity (cp) 0.03 Porosity 0.10 Gas Leakoff Percentage 100.00 Reservoir Parameters Reservoir temperature (°F) 140.00 Depth to center of Perts (ft) 3784 Pertorated interval (fl) 162 Initial frac depth (fl) 3784 - Layer Parameters Layer # 1 Top of zone (ft 0.0 Stress (psi) 1278 Top of zone (~) 0.0 Young's modulus (si) 2.Oe+006 Poisson's ratio 0.20 Top of zone (ft 0.0 Total Ct (ft/min'/z) 1.812e-001 PoreFluid perm. and 1.OOe+003 2 1800.0 2155 1800.0 S.Oe+006 0.25 1800.0 5.730e-004 1.OOe-002 3 3269.8 2396 3269.8 2.Oe+006 0.20 3269.8 1.812e-001 1.OOe+003 4 3478.8 3004 3478.8 5.Oe+006 0.25 3478.8 5.730e-004 1.OOe-002 5 3589.7 2748 3589.7 2.Oe+006 0.20 3589.7 1.812e-001 1.OOe+003 6 4150:2 3545 41-58:2 S:Oe+006 0.25 4150.2 5.73IIe-004- . 1.OO.e-002 . 7 4191.6 3008 4191.6 2.Oe+006 0.20 4191.6 1.812e-001 1.OOe+003 8 4281.6 3683 4281.6 S.Oe+006 0.25 4281.6 5.730e-004 1.OOe-002 9 4384.6 3248 4384.6 2.Oe+006 0.20 4384.6 1.812e-001 1.OOe+003 10 4763.5 4196 4763.5 S.Oe+006 0.25 4763.5 5.730e-004 1.OOe-002 11 5108.6 3645 5108.6 2.Oe+006 0.20 5108.6 1.812e-001 1.OOe+003 12 5158.6 4473 5158.6 S.Oe+006 0.25 5158.6 5.730e-004 1.OOe-002 13 14 15 5366.8 5601.4 5707.0 3894 4806 4091 5366.8 5601.4 5707.0 2.Oe+006 5.Oe+006 2.Oe+006 0.20 0.25 0.20 5366.8 5601.4 5707.0 1.812e-001 5.730e-004 1.812e-001 1.OOe+003 1.OOe-002 1.OOe+003 16 5818.2 4945 5818.2 5.Oe+006 0.25 5818.2 5.730e-004 1.OOe-002 FracproPTl0.0 6 C:UBG Documents~Ru-1-345 Lithology Parameters Layer # Top of zone ~ Lithology Top of zone ft Fracture Toughness si•in'/: Top of zone ft Tip Effects Factor 1 0.0 Sandstone 0.0 1000 0.0 1.00 2 1800.0 Coal/C ne 1800.0 1000 1800.0 1.00 3 3269.8 andstone 3269.8 1000 3269.8 1.00. 4 3478.8 CoaUC stne 3478.8 1000 3478.8 1.00 5 3589.7 Sandstone 3589.7 1000. 3589.7 1.00 6 4150.2 oaUC stne 4150.2 1000 4150.2 1.00 T 4191.6 Sandstone 4191.6 1000 4191.6 1.00 8 4281.6 oaUC stne 4281.6 1000 4281.6 1.00 9 4384.6 Sandstone 4384.6 1000 4384.6 1.00 10 4763.5 oal/C stne 4763.5 1000 4763.5 1.00 11 5108.6 andstone 5108.6 1000 5108.6 1.00 12 5158.6 oaUC stne 5158.6 1000 5158.6 1.00 13 5366.8 Sandstone 5366.8 1000 5366.8 1.00 14 5601.4 CoaUC stne 5601.4 1000 5601.4 1.00 15 5707.0 Sandstone 5707.0 1000 5707.0 1.00 16 5818.2 oaUC stne 5818.2 1000 5818.2 1.00 FracproPT10.0 5 C:UBG Documents~Ru-1-345 Wellbore Configuration Segment Segment Tubing ID_ Tubing OD Casing ID Length Type (in) (in) (in) ft 3320 ubin 2.992 0.000 0.000 931 asin 0.000 0.000 6.875 M Tubular Goods are defined to the TOP of the deepest set of perforations that are being modeled. Frac #1 0 of Perfs - ND ft 370 Bot of Perfs - Ti/D ft) 386 Perf Diameter in) 0.33 of Perfs 60 Near Wellbore Friction Parameters ~ Perf Time Flow Rate Flow Rate Delta P Perf Coeff (min:sec) #1 #2 (psi) Multiplier b m b m 0:00. 0.00 0.00 0.00 1.00 FracproPT10.0 6 C:UBG Documents~Ru-1-345 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ r ~ ~ ~ ~ ~ ~ ~ 3650 3seo 3710 3740 .. 3770 w 0 3800 3830 3860 3890 3920 3960 2000 2500 3000 3600 4000 150 Closure Stress (psi) . 113 75 ~ Propped Length (ft) HydrauNc length (ft) Redoubt Unit#1 Stress Profile Log View • FracproPT1O.O Hydraulic Fracture Analysis Date: April 24, 2001 Wellname: Redoubt Unit#1 Location: Cook Inlet Basin, Alaska. Formatting: Sand#12 Job Date: 4/18/2001 12:44:44 PM Filename: Ru-1-12 Fracture Geometry Summary racture Half-Length (ft 0 Prop ed Half-Length ft 0 otal Fracture Height ft 0 otal Pro d Hei ht ft) 0 0 01 Depth to Fracture To ft) 5477 Max. Fracture Width (in . 0 01 ~e th to Fracture Bottom (ft) 5477 0 1 vg. Fracture Width in) Prop ant Concentration (Ib/fP vg . 0.00 :quivalent Number of Multiple Fracs . . ..,..•...o CL.rrv Ffrricirsnr_v 0.00 All values reported are for a single fracture Model has run until 5849.00 min Fracture Conductivity Summary Dimensionless Conductivi 0.00 Ref. Formation Permeabili mD 1000.0 Proppant Damage Factor 0.50 Prop ant Permeabili (mD 20000 All values reported are for a single fracture Fracture Pressure Summary Model Net Pressure ( si _--- -744 BN Facture-Cbsure Stress- si 38 - 711 0 Observed Net Pressure ( si 0 losure Stress Gradient ( sift . H drostatic Head ( si 3581 urface Pressure ( si) 0 Averages reported during Main Frac Fracture Geometry Summary Total Clean Fluid Pum ed bbls 29185 85 otal Pro ant Pum ed klbs otal Proppant in Fracture (klbs) 5000.9 0.0 Total Sluny Pumped (bbls ) 291 0 vg. Hydraulic Horsepower (hp) 48 Pad Volume (bbls) 0 0 Max. Hydraulic Horsepower (hp) 102 Pad Fraction (/o) Main Fluid DISPOSAL Main Proppant 100-Mesh FLUID Averages reported during Main Frac FracproPT10.0 1 C:UBG Documents~Ru-1-12 • Concentration of Proppant in Fracture (Ib/ft2) Stage # Length fl UpperHt ft LowerHt ft Upper Conc Ib/ftz Lower Conc Ib/ft~ 1 54.8 54.8 54.8 0.00 0.00 Fracture Conductivity (mD•ft) Stage # Length ft) UpperHt ft LowerHt (ft Upper Cond mD•ft) Lower Cond (mD•ft) 1 54.8 54.8 54.8 0.00 0.00 Treatment Schedule Stage Elapsed Fluid Clean Prop Stage Slurry Proppant # Time Type Volume Conc. Prop. Rate Type minsec k al klbs b m ellbore Fluid DISPOSAL 7.2 FLUID 1 5838:39 DISPOSAL 1000.0 5.00 5000.0 5.00 100-Mesh FLUID 2 5848:39 SHUT-IN 0.0 0.00 0.0 0.00 Scheduled clean vol (legal) Scheduled slurry vol (legal) 1000.00 Scheduled sand total (klbs) 1226.12 5000.00 FracpropTl0.p 2 C_UBG Documents~Ru-1-12 ~~ ~' • All Fluid info is at a reservoir temperature of 140.0 (°F) All Vscosities at Shear Rate of 511 (1/sec) Fluid Parameters Fluid Name DISPOSAL FLUID Initial Rheolo iscosi 1.01 n' 1.000 k' .100e-05 Rheolo y 4.0 hours iscosi 1.01 n' 1.000 k' .100e-05 Gel Density 1.25 urt Loss .0 all Building .0 Flowrate #1 10.00 Fric Press #1 17.66 Flowrate #2 0.00 Fric Press #2 4.11 Flowrate #3 0.00 Fric Press #3 32.7 B Fric Mult .100 Wellbore Friction pressures shown are the interpolated values multiplied by the Wellbore Friction Multiplier. Viscosity is displayed in (cp) K' is displayed in (Ibf•s^Nft~ Gel Density is displayed as (sg) Spurt Loss is displayed in (gal/ft~ Wall Building is displayed in (ft/min%2) Friction pressure is displayed in (psi/1000 ft) Flowrate is displayed in (bpm) Friction is displayed for longest wellbore segment FracproPT10.0 3 C:UBG Documents~Ru-1-12 • LeakoffParameters Reservoir type Gas Filtrate fo reservoir fluid perm. ratio, Kp/KI 10 Reservoir pore pressure (ps7 2383. Initial fracturing pressure tps~ 4394 Reservoir fluid compressibility (1/ps~ 4.20e-004 Cold filtrate viscosity (cp) 1.00 Hot filtrate viscosity (cp) 1.00 Cold reservoir viscosity (cp) 0.03 Hot reservoir viscosity (cp) 0.03 Porosity 0.10 Gas Leakoff Percentage 100.00 Reservoir Parameters Reservoir temperature (°F) 140.00 Depth to center of Perfs (ft) 5477 Perforated interval (ft) 84 Initial frac depth (ft) 5477 Layer Parameters Layer # Top of zone (ft Stress (psi) Top of zone ft) Young's modulus (psi Poisson's ratio Top of zone (ft Total Ct (ft/min'/z) PoreFluid perm. and 1 0.0 1278 0.0 2.Oe+006 0.20 0.0 2.025e-001 1.OOe+003 2 1800.0 1825 1800.0 3.Oe+005 0.45 1800.0 2.025e-001 1.OOe+003 3 3269.8 2396 3269.8 2.Oe+006 0.20 3269.8 2.025e-001 1.OOe+003 4 3478.8 3004 3478.8 S.Oe+006 0.25 3478.8 6.404e-004 1.OOe-002 5 3589.7 2748 3589.7 Z.Oe+006 0.20 3589.7 2.025e-001 1.OOe+003 6 - 4150:2 _ 3545 4?5fJ.2 ~ 0~+006 0.25- 4~t50.2 6.-404e=004 1-.OOe=002 7 4191.6 3008 4191.6 2.Oe+006 0.20 4191.6 2.025e-001 1.OOe+003 8 4281.6. 3683 4281.6 5.Oe+006 0.25 4281.6 6.404e-004 1.OOe-002 9 4384.6 3248 4384.6 2.Oe+006 0.20 4384.6 2.025e-001 1.OOe+003 10 4763.5 4196 4763.5 5.Oe+006 0.25 4763.5 6.404e-004 1.OOe-002 11 5108.6 3645 5108.6 2.Oe+006 0.20 5108.6 2.025e-001 1.OOe+003 12 5158.6 4473 5158.6 S.Oe+006 0.25 5158.6 6.404e-004 1.OOe-00~ 13 5366.8 3894 5366.8 2.Oe+006 0.20 5366.8 2.025e-001 1.OOe+Q03 14 5601.4 4806 5601.4 5.Oe+006 0.25 5601.4 6.404e-004 1.OOe-002 15 5707.0 4091 5707.0 2.Oe+006 0.20 5707.0 2.025e-001 1.OOe+003 16 5818.2 4945 5818.2 5.Oe+006 0.25 5818.2 6.404e-004 1.OOe-002 FracproPT10.0 4 C:UBG llocuments~Ru-1-12 n Lithology Parameters Layer # Top of zone ft Lithology Top of zone ft Fracture Toughness si•in'/: Top of zone ft Tip . Effects Factor 1 0.0 Sandstone 0.0 1000 0.0 1.00 2 1800.0 Bitum Coal 1800.0 500 1800.0 1.00 3 3269.8 Sandstone 3269.8 1000 3269.8 1.00 4 3478.8 oaVC stne 3478.8 1000 3478.8 1.00 5 3589.7 Sandstone 3589.7 1000 3589.7 1.00 6 4150.2 CoaVC stne 4150.2 1000 4150.2 1.00 7 4191.6 Sandstone 4191.6 1000 4191.6 1.00 8 4281.6 CoaVCI stne 4281.6 1000 4281.6 1.00 9 4384.6 Sandstone 4384.6 1000 4384.6 1.00 10 4763.5 oaVC stne 4763.5 1000 4763.5 1.00 11 5108.6 Sandstone 5108.6 1000 5108.6 1.00 12 5158.6 CoaVC stne 5158.6 1000 5158.6 1.00 13 5366.8 Sandstone 5366.8 1000 5366.8 1.00 14 5601.4 oaVCl stne 5601.4 1000 5601.4 1.00 15 5707.0 Sandstone 5707.0 1000 5707.0 1.00 16 5818.2 CoaUC stne 5818.2 1000 5818.2 1.00 FracproPT10.0 5 C:UBG Documents~Ru-1-12 • Wellbore Configuration Segment Length ft Segment Type Tubing ID (in) Tubing OD (in) Casing ID (in) 3320 ubin 2.992 0.000 0.000 3085 asin 0.000 0.000 6.875 Tubular Goods are defined to the TOP of the deepest set of perforations that are being modeled. Frac #1 To of Perfs - TVD ft) 543 Bot of Perfs - TVD (ft) 551 Perf Diameter (in) 0.33 # of Perfs 60 Near Wellbore Friction Parameters & Perf Time Flow Rate Flow Rate Delta P Perf Cceff (min:sec) #1 #2 (psi) Multiplier b m b m 0:00 0.00 0.00 0.00 1.00 FracpraPT10.0 6 C:UBG Documents~Ru-1-12 Redoubt Unit#1 s25o s3oo s35o 5400 ~. 5450 5600 5550 5600 5650 s7oo 5750 3000 3750 4600 Closure Stress (psq __--I I I I I I ____~____T_-_-~---- 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 ----- fi-------I------rt---- I I I I f 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 I I ----~------~------I----- I I I I ____ I I_____ ----T T-----~ I I I I I I I I I I I ----~------~------I----- j I I I I I I I I ----~------r-----1____. I I I I I I I I I I I I I I I ----r----T- -~ I I I I I I I I I. -----~----~-----I---- I I I I I I I I I 5250 ®000 Z50 188 125 63 ~ Propped Length (ft) ~ ~ ~ ~3 ~ p i oo w0 HydrauUc Length (ft) Stress Profile Redoubt Unit#1 5350 s3so Salo 5a4o ~ 6a7o ~ 0 5600 5630 5660 5690 5s2o 5650 3000 3750 4500 Closure Stress (psi) I I I I I I I I I I I I ---r----T-----~----- ----+------~-----I----- I I I I I I I i I ---- I ---- I I----- r T-----~ I I I I I I I I I I I I I I I ----1-----1---_-1_---- I I I I I I I I I I I I -----r------1------1----. 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 ---- t------i------Y---- I I I I I I I I I -T-----~---- I I I ----t-- --t-----t---- ---1------1---- -----~-- I ~ II I I I --t------I------fi---- I I I I I I I I I I I I -----~-----T--- -~-- I I i I I I ~_ •A4 'I~ 5250 6000 i5v' 113 75 ~- Propped length (ft) v ,~ ,~ ..- Hydraulic Length (ft) Stress Profile i i~ ~ • ~ KUSTATAN FIELD # 1 WELL WATER QUALITY DIO Section 10 The middle Tyonek sands below 6500 feet measured depth and down to the top of the G-Zone (approximately 11,000 feet measured depth) display chlorides generally between 10,000 - 30,000 pprn Cl. i~ i~ ii i~ i~ i~ r i~ i~ i~ 11 ~ • ~ KUSTATAN FIELD #1 WELL ' AQUIFER EXEMPTION CONSIDERATION DISPOSAL INTO THE TYONEK FOF;MATION DIO AgExempl l Wire-line log analytical techniques, which are compliant with EPA recommended methods as described in "Survey of Methods to Determine Total Dissolved Solids Concentrations", (KEDA Project No. 30-956), were used to characterize formation water salinities in the middle Tyonek Formation in the KF # 1 well. Wire-line log analysis from the middle Tyonek Formation in the KF#1 well shows the proposed Class II disposal injection zone contains water with a chloride concentration of 10,000 to 30,000 ppm which equates to a total dissolved solids (TDS) concentration higher than 10,000 mg/1. Because of this high chloride/ TDS content, an aquifer exemption is not needed. 12 KUSTATAN FIELD # 1 WELL MECHANICAL CONDITION OF NEAR BY BOREHOLES DIO Section #12 There are no wells or boreholes, abandoned, shut-in or operating, within '/4 mile of the Kustatan Field #1 well. The nearest well/borehole is the RU #D-1 well which is approximately 15,000 feet away. There are two domestic source water wells drilled and operated by Forest Oil on the gravel pad with the Kustatan Field #1 well. These wells are shallower than 500 ft each. i i D p ~ ~ ~ D r T n ~ D p O ~ z 1 ~ • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION ' 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 Re: THE. REQUEST OF Disposal Injection ) FOREST Order No. XX OIL CORPORATION fora ) Disposal Injection Order for )Middle Tyonek Formation the Kustatan Field # 1 well, )Kustatan Field ' Sec.l, T7N, R14W, Seward ) Well Kustatan Field #1 Meridian, offshore Cook Inlet. ) March _, 2003 IT APPEARING THAT: 1. Forest Oil Corporation ("Forest") submitted an application, dated ' 2003, requesting that the Alaska Oil and Gas Conservation Commission issue a disposal infection order to allow Class II disposal in the Kustatan Field #1 well 2. The Commission published notice of an opportunity for a public hearing in the Anchorage Daily News and Peninsula Clarion on March _, 2003. 3. The Commission did not receive any protest or request for a public hearing. FINDINGS: 1. In correspondence dated , 2003 Forest requested an order authorizing Class II disposal into the middle Tyonek Formation in the Kustatan Field #1 Well (KF#1). 2. The Kustatan Field #1 Well is located approximately 3443' from the north line and 1468' from the west line of Section 4, Township 7 North, Range 14 West, Seward Meridian. Forest Oil Corporation (Forest) is the only operator within a one-quarter mile radius of the proposed disposal operation. 3. Forest has provided an affidavit showing that they provided a copy of the application for disposal to the the only surface owner within cone-quarter mile radius of the proposed disposal project. 4. Wire line log analytical techniques, which are compliant with EPA recommended methods as described in "Survey of Methods to Determine Total Dissolved Solids Concentrations", (KEDA Project No. 30-956), were used to characterize formation water salinities in the middle Tyonek Formation in the KF#1. Disposal Injection ~r #_ ~ Page 2 of 6 Kustatan Field #I Well 5. Wire-line log analysis from the KF#1 well show the proposed Class II disposal ' injection zone contains waters with total dissolved solids (TDS) concentration generally between 10,000 and 30,000 ppm Chlorides. 6. Perforations in the KF#1 well will be between 6750' and 6800' measured depth (MD), within sandstones of the middle Tyonek Formation. 7. In the Kustatan area the middle Tyonek Formation sandstones are fluvial deposits, which tend to be laterally continuous over several miles. Porosities typically range from 10% to 20% and permeabilities range from 50 to the 100's of ' millidarcies. 8. The middle Tyonek Formation contains numerous laterally continuous clay stones, siltstones and coals that have been shown to be effective confining zones. In the interval 5000 - 6000 feet, above the proposed disposal operations in KF#1, these rock types represent approximately 40% of all lithologies. In the underlying formation, the confining lithologies constitute approximately 20% of the formation. 9. At the top of the proposed disposal zone in the KF#1 well, the nearest well (abandoned, shut-in, or operating) is the RU #D1 well at a distance of over 15,000 ft. There are two domestic source water wells drilled and operated by -, Forest Oil on the gravel pad with the Kustatan Field #1 well. 10. The proposed disposal interval is overlain and confined by siltstones, coals and shales within the Tyonek and Beluga Formations which will prevent vertical migration of Class II wastes into formation waters with TDS content less than 3000 mg/I. 11. A cement bond log and cement records will be reviewed to confirm that the KF#1 well is adequately cemented to isolate the proposed disposal interval from freshwater sources. 12. The well is currently completed with 20" conductor driven to 120' MD, 13-3/8" casing cemented at 1820' MD, 9-5/8" casing cemented at 6500' MD, and 7 5/8" liner cemented at 12,300' MD. The well will be worked over and completed with a 2-7/8" tubing string with packer set at 6280'. 13. The well will have passed an initial mechanical integrity test before disposal begins. 14. The waste stream will consist of produced water, drilling, completion and workover fluids, rig wash, drilling mud slurries, NORM scale, tank bottoms, and other fluids brought to the surface in connection with oil and gas development activity. Disposal Injection ~r #_ ~ Page 3 of 6 Kustatan Field #1 Well 15. Forest estimates that the average volume of fluids to be disposed will be approximately 1500 barrels per day, with a maximum volume of 5000 barrels per day. The average and maximum density of injected fluids will be 10.0 pounds per gallon (ppg) and 11.5 ppg, respectfully. 16. Forest estimates the surface injection pressure will not exceed 4000 psi at an injection rate of 5 barrels per minute (bpm). Average anticipated surface injection pressure is 3600 psi. 17. For DIO 22 Forest provided fracture modeling simulations of the upper Tyonek Formation assuming 23,810 barrels of 10.5 ppg fluid system transporting 5 ppg 100 mesh sand at a rate of 5 bpm. The resulting simulator output data showed the injected fluids to be fully contained within the intervals modeled (at 3784' MD and at 5477' MD). It is reasonable to assume that fluids injected at deeper intervals, middle Tyonek in the KF#1, will also be contained within their respective receiving intervals. 18. Fracture propagation within the disposal interval is an integral part of the process of placing waste slurries into the disposal interval. Fractures will be created as disposal zone porosity and permeability is occluded by the deposition of solids in pore spaces. Fractures provide pathways to transport waste fluids to unfilled areas within the disposal zone. 19. Forest will perform a step rate test to establish optimum injection rates and pressures. The step rate 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 include but are not limited to step rate injection tests, monitoring operation parameters, estimating dimensions of disposal fracture or disposal storage volume, and detecting changes in disposal zone characteristics. CONCLUSIONS: 1. The application requirements of 20 AAC 25.252 have been met. 2. Waste fluids authorized for disposal under this order will consist exclusively of ' the following Class II fluids: produced water, drilling, completion and workover fluids,. rig wash, drilling mud slurries, NORM scale, tank bottoms, and other fluids brought to the surface in connection with oil and gas development activity. 3. Permeable strata, which can reasonably be expected to contain the total volume of disposal fluid anticipated for this project, are present in the middle Tyonek Formation. 5. Waste fluids will be contained within appropriate receiving intervals by confining lithologies, cement isolation of the wellbore and operating conditions. ii Disposal Injection Oru'~r #_ ~ Page 4 of 6 Kustatan Field #1 Well 6. Disposal injection operations in the KF#1 well will be conducted at rates and pressures below those estimated to fracture the confining zones. 7. Evaluation of operational performance data and reservoir surveillance data will confirm that the confining zones are not being fractured. 8. Surveillance of disposal material placement, daily monitoring of operational parameters, and demonstration of mechanical integrity prior to injection and every two years thereafter will reasonably assure the waste fluids are contained within the disposal interval. 9. Disposal injection operations in the KF#1 well will not cause waste, jeopardize correlative rights, or impair ultimate recovery. NOW, THEREFORE, IT IS ORDERED Rule 1 Authorized Iniection Strata for Disposal Class I'I oil field waste fluids may be injected in conformance with Alaska Administrative Code Title 20, Chapter 25, for disposal into the middle Tyonek Formation, between the depths of 6750' and 6800' MD in the Kustatan Field #1 Well. Rule 2 Authorized Fluids This authorization is limited to Class II waste fluids as follows: produced water, drilling; completion and workover fluids, rig wash, drilling mud slurries, NORM scale, tank bottoms, and other fluids brought to the surface in connection with oil and gas development activity on the Osprey platform. Rule 3 Demonstration of Tubing/Casing Annulus Mechanical Integrity ' The tubing/casing annulus must be tested for mechanical integrity prior to the start of disposal operations and every two years thereafter. Rule 4 Surveillance ' Operating parameters including disposal rate, disposal pressure, annulus pressures and volume of slurry pumped must be monitored and reported according to the requirements of 20 AAC 25.432. Rule 5 Notification The operator must immediately notify the Commission if it learns of any improper Class 11 injection. Additionally, notification requirements of any other State or Federal agency remain the operators' responsibility. Rule 6 Administrative Action Disposal Injection O~ # Kustatan Field #1 Well Page 5 of 6 Upon request or its own volition, 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 7 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 _, 2003. Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission Randy Ruedrich, Commissioner Alaska Oil and Gas Conservation Commission i, Sarah Palin, Commissioner Alaska Oil and Gas Conservation Commission