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Other Index #066
1. November 3, 2010 Notice of Hearing, Affidavit of Publication
2. December 6, 2010 Public Hearing Transcript
Other Index #066
• •
STATE OF ALASKA
ALASKA OIL AND GAS CONSERVATION COMMISSION
333 West 7 Avenue, Suite 100
Anchorage, Alaska 99501
Re: AN ORDER rescinding those rules within ) Docket Number: CO -10 -21
existing Conservation Orders relating to ) Other Order No. 66
well safety valve systems. )
) Statewide, Alaska
) January 11, 2011
IT APPEARING THAT:
1. On October 13, 2010 the Alaska Oil and Gas Conservation Commission (AOGCC
or Commission) formally adopted new regulations relating to well safety valve
systems, at 20 AAC 25.265.
2. The newly adopted well safety valve system regulations underwent final review
by the Regulations Section of the Alaska Attorney General's Office and were
forwarded to the Alaska Lieutenant Governor's Office on October 28, 2010.
3. The new regulations were signed by the Lieutenant Governor and took legal effect
on December 3, 2010.
4. To ensure consistency with the new regulations, the AOGCC, on its own motion,
proposed to rescind part or all of the outdated rules within existing Commission
Orders relating to well safety valve systems.
5. On November 4, 2010, pursuant to 20 AAC 25.540, the Commission published in
the Alaska Daily News notice of opportunity for public hearing on December 6,
2010.
6. The Commission received written comments in response to its public notice, and
held a public hearing on December 7, 2010.
7. Oral testimony and written comments were provided at the December 7, 2010
hearing.
FINDINGS:
1. Well safety valve systems are regulated under newly- adopted 20 AAC 25.265,
which consolidates the requirements previously established in legacy documents,
policies, and statewide guidelines relating to safety valve systems.
2. Thirty -four existing Commission Orders contain rules governing well safety valve
systems. Twenty of those Orders contain broad regulatory requirements for safety
valve systems that are now covered by the newly- adopted regulations. The
remaining fourteen Orders include field- or pool - specific safety valve system
requirements.
Other Order 66 • • Page 2
Statewide, AK
January 11, 2011
3. Within existing Commission Orders are rules unrelated to well safety valve
systems; these rules will continue in effect, unmodified.
4. Existing Commission Orders containing individual rules relating to well safety
valve systems are enumerated in the attached Table.
CONCLUSIONS:
1. Eliminating redundant requirements and standardizing wording for those field -
and pool- specific safety valve system requirements deemed appropriate to retain
will improve regulatory clarity.
2. Twenty existing Commission Orders that include rules relating to well safety
valve systems are rendered unnecessary, and can be replaced by newly- adopted
20 AAC 25.265. As more fully set forth in the attached Table, those Orders are
Conservation Orders 98A, 207A, 300, 311B, 317B, 329A, 341E, 345, 402B,
432D, 452, 457B, 471, 477, 484A, 505B, 553, 559, 570, and a Commission
unnumbered Order signed March 30, 1994 (policy dictating SVS performance
testing requirements).
3. Fourteen existing Commission Orders include field- or pool- specific safety valve
system requirements that the Commission considers appropriate for retention.
Wording for the same safety valve system requirements existing in different
Commission Orders has been standardized. As more fully set forth in the attached
Table, those Orders are Conservation Orders 406B, 423, 430A, 435A, 443B, 449,
456A, 458A, 562, 563, 569, 596, 597, and 605.
NOW, THEREFORE, IT IS ORDERED THAT individual rules in thirty-four existing
Commission Orders that relate to well safety valve systems are hereby rescinded or
revised as enumerated in the Table. Remaining rules unrelated to safety valve systems
within affected Commission Orders remain in effect, unmodified.
DONE at Anchorage, Alaska, and dated ail .- ary 11, 2011
`1
1100
Daniel T. Sear ou., Commissioner, Chair
A - . • it . • : s Conservation Commission
Alli ; .a 014 , 0 fr
'
IV
ill . •
aman, Co ner
a Oi , • a Conserva ion Commission
A
p, - - - a ��N �' ' Cat y P. oerst r, Commissioner
Alaska 11 and Gas Conservation Commission
Other Order 66 • • Page 3
Statewide, AK
January 11, 2011
RECONSIDERATION AND APPEAL NOTICE
As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the
Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration of
the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration
must set out the respect in which the order or decision is believed to be erroneous.
The Commission shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to
act on it within 10 -days is a denial of reconsideration. If the Commission denies reconsideration, upon denial, this order or decision
and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after
the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision denying
reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which
the application for reconsideration was filed.
If the Commission grants an application for reconsideration, this order or decision does not become final. Rather, the order or
decision on reconsideration will be the FINAL order or decision of the Commission, and it may be appealed to superior court. That
appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise
distributes, the order or decision on reconsideration. As provided in AS 31.05.080(b), "[t]he questions reviewed on appeal are limited
to the questions presented to the Commission by the application for reconsideration."
In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in
the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00
p.m. on the next day that does not fall on a weekend or state holiday.
• • . •
Orders Establishing Requirements for Well Safety Valve Systems
1/7/2011
Unit/Field Pool Conservation Rule Rescind Rule? Existing Order Requirement New Regulation Provisions Revised Rule - "Well safety valve systems" (2) Comment
Order (1) Addressing Reqts from Order
fail -safe auto SSV and SCSSV; injection wells (except disposal) require ; 25.265(b); 25.265 d 2 H "Injection wells (excluding disposal injectors) must be equipped w ith(i) a double check valve
25.265 a Check valve requirements injectors for injectors are not covered b y
Colville River Unit Qannik 605 5 no 0) double check valve, or (ii) single check valve and SSV; injection
25.265(a); ) ( )( )( )' arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or
25.265(h)(5) requirements readopted regulation
valve satisfies single check valve requirement; test every 6 months SCSSV satisfies the quirements of a single check valve."
fail -safe auto SSV and SCSSV; injection wells (except disposal) require "I wells (excluding disposal injectors) must be equipped with(i) a double check valve
25.265(a); 25.2659(b); 25.265(d)(1); Check valve requirements for injectors are not covered by
Oooguruk Oooguruk - Nuiqsut 597 6 no (i) double check valve, or (ii) single check valve and SSV; injection . arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or
25.265(h)(5) readopted regulation
valve satisfies single check valve requirement; test every 6 months ( )( 5 ) SCSSV satisfies the requirements of a single check valve."
fail -safe auto SSV and SCSSV; injection wells (except disposal) require "I wells (excluding disposal injectors) must be equipped with(i) a double check valve
25.265(a); 25.265(b); 25.265(d)(1); Check valve requirements for injectors are not covered by
Oooguruk Oooguruk - Kuparuk 596 6 no (i) double check valve, or (ii) single check valve and SSV; injection h . arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or
25.265(h)(5) readopted regulation
valve satisfies single check valve requirement; test every 6 months ( )( 5 ) SCSSV satisfies the requirements of a single check valve." 1
fail -safe auto SSV and SCSSV; maintain list of wells w/ removed or 25.265(a); 25.265(b); 25.265(d)(2)(F); Requirement to maintain a wellhead sign and list of wells with
Prudhoe Bay Unit Raven 570 5 yes r N/A deactivated SVS was replaced with requirement to maintain a
deactivated SVS; sign on wellhead 25.265(m) tag on well when not manned
fail -safe auto SSV and SCSSV; injection wells (except disposal) require
25.26�- " wells (excluding disposal injectors) must be equipped with(i) a double check valve
25.265(a); 25.265(b); 25.265(d)(2)(H)' Check valve requirements for injectors are not covered by
Colville River Unit Fiord 569 5 no (i) double check valve, or (ii) single check valve and SSV; injection .265 arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or
25.265(h)(5) readopted regulation
valve satisfies single check valve requirement; test every 6 months ( )( 5 ) SCSSV satisfies the requirements of a single check valve."
fail -safe auto SSV and SCSSV; injection wells (except disposal) require "I wells (excluding disposal injectors) must be equipped with(i) a double check valve
25.265(a); 25.265(b); 25.265(d)(2)(H); Check valve requirements for injectors are not covered by
Colville River Unit Nanuq - Kuparuk 563 6 no (i) double check valve, or (ii) single check valve and SSV; injection . arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or
25.265(h)(5) readopted regulation
valve satisfies single check valve requirement; test every 6 months ( )( 5 ) SCSSV satisfies the requirements of a single check valve."
fail -safe auto SSV and SCSSV; injection wells (except disposal) require r "I nject i on we ll s (exc disposal injectors) must be equipped with(i) a double check valve
25.265(a); 25 25 Check valve requirements for injectors are not covered by
Colville River Unit Nanuq 562 6 no (i) double check valve, or (ii) single check valve and SSV; injection . arrangement or (ii) a single check valve and a SSV. A subsurface- controlled injection valve or
25.265(h)(5) readopted regulation
valve satisfies single check valve requirement; test every 6 months ( )( 5 ) SCSSV satisfies the requirements of a single check valve."
Prudhoe Ba Unit Put River 559 3 yes fail -safe auto SSV; SSSV landing nipple below permafrost; test as 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV;
Y prescribed by Commission 25.265(h)(5)
replaces SSSV nipple requirement for all wells
Deep Creek Unit Happy Valley 553 3 yes SSV or SSSV s 25.265 N/A
Prudhoe Ba Unit Orion 505B 3 yes fail -safe auto SSV; SSSV landing nipple below permafrost; test as 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV;
Y prescribed by Commission 25.265(h)(5)
replaces SSSV nipple requirement for all wells
Prudhoe Ba Unit Polaris 484A 3 yes fail -safe auto SSV; SSSV landing nipple below permafrost; test as 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV;
Y prescribed by Commission 25.265(h)(5) replaces SSSV nipple requirement for all wells
_
fail -safe auto SSV; SSSV landing nipple below permafrost; gas /MI 25.26li a ; 25.265 b 2
Milne Point - () (); 25.265(d); Readopted 25.265(d) dictates which wells require SSSV;
Milne Point Unit Schrader Bluff 477 5 yes injection well require SSSV or injection valve below permafrost; test 25.265(h)(5) N/A replaces SSSV nipple requirement for all wells
every 6 months
Prudhoe Ba Unit Borealis 471 3 yes fail -safe auto SSV; SSSV landing nipple below permafrost; gas /MI 25.265(a); 25.265(b); 25.265(d); WA Readopted 25.265(d) dictates which wells require SSSV;
Y injection well require SSSV below permafrost; test every 6 months 25.265(h)(5) replaces SSSV nipple requirement for all wells
fail -safe auto SSV and SCSSV; test as prescribed by Commission; 500- Existing pool rule established a minimum setting depth for the
Northstar Northstar 458A 4 no ft minimum setting depth for SSSV 25.265(a); 25.265(b); 25.265(d)(1) The minimum setting depth for a tubing conveyed subsurface safety valve is 500 feet." SSSV
Prudhoe Ba Unit Aurora 457B 3 es fail -safe auto SSV; SSSV landing nipple below permafrost; test every 6 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV;
Y Y months 25.265(h)(5) replaces SSSV nipple requirement for all wells
fail -safe auto SSV; gas /MI injectors require SSV and single check 25.265(a); 25.265(b); 25.265(d); "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve Check valve requirements for injectors are not covered by
Kuparuk River Unit Meltwater 456A 5 no valve and SSSV landing nipple; water injection wells require (1) double arrangement or (ii) a single check valve and a SSV. A subsurface controlled injection valve or readopted regulation; readopted 25.265(d)(5) does not include
check valve, or (ii) single check valve and SSV; test every 6 months 25 SCSSV satisfies the requirements of a single check valve." SSSV requirement for MI injectors
-
Prudhoe Bay Unit Midnight Sun 452 6 yes fail -safe auto SSV (all injectors and producers capable of unassisted 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV;
flow to surface); test every 6 months 25.265(h)(5)
replaces SSSV nipple requirement for all wells
fail -safe auto SSV and SCSSV; SSSV may be installed above or below "The setting depth of a required subsurface safety valve must be located in the tubing either Existing pool rule established alternate SSSV setting depth;
25.265(a); 25.265(b); 25.265(d)(1);
Duck Island Unit Eider 449 7 no permafrost; injection wells require double check valve; LPS trip above or below permafrost. Injection wells must be equipped with a double check valve check valve requirements for injectors are not covered by
pressure; test every 6 months 25 arrangement." readopted regulation
fail -safe auto SSV and SCSSV (producers and gas injectors); water "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve Check valve requirements for injectors are not covered by
Colville River Unit Alpine 443B 5 no injection wells require (i) double check valve, or (ii) single check valve 25.265(a); 25.265(b); 25.265(d)(2)(H) arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or readopted regulation
and SSV SCSSV satisfies the requirements of a single check valve."
fail -safe auto SSV; gas /MI injectors require SSV and single check 25.265(a); 25.265(b); 25.265(d); "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve Check valve requirements for injectors are not covered by
Kuparuk River Unit Tabasco 435A 6 no valve and SSSV landing nipple; water injection wells require (i) double arrangement or (ii) a single check valve and a SSV. A subsurface-controlled injection valve or readopted regulation; readopted 25.265(d)(5) does not include
check valve, or (ii) single check valve and SSV; test every 6 months 25 SCSSV satisfies the requirements of a single check valve" SSSV requirement for MI injectors
fail -safe auto SSV (S /D well and artificial lift); sign on well if SVS Requirement to maintain a wellhead sign and list of wells with
deactivated; maintain list of wells w /deactivated SVS; test as a ; 25.265 b 25.265(h)(5); deactivated SVS was replaced with requirement to maintain a
25.265
Kuparuk River Unit; O
Kuparuk 432D 5 yes prescribed by Commission; CO 432D.009 modifies Rule 5(b) - LPP N/A tag on well when not manned; administrative approval CO
25 m
Milne Point Unit may be defeated on W. Sak injectors w /surface pressure <500psi w/ 25.265(m) 432D.009 remains effective [re:defeating the LPS when surface
notice when defeated and placed back in service injection pressure for West Sak water injector is <500psi]
Page 1 of 2
• • • •
Orders Establishing Requirements for Well Safety Valve Systems
1/7/2011
Conservation New Regulation Provisions
Unit/Field Pool Order (1) Rule Rescind Rule? Existing Order Requirement Addressing Reqts from Order Revised Rule - "Well safety valve systems" (2) Comment
fail -safe auto SSV; gas /MI injectors require SSV and single check 25.265(a); 25.265(b); 25.265(d); "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve Check valve requirements for injectors are not covered by
Kuparuk River Unit Tarn 430A 6 no valve and SSSV landing nipple; water injection wells require (i) double arrangement or (ii) a single check valve and a SSV. A subsurface-controlled injection valve or readopted regulation; readopted 25.265(d)(5) does not include
check valve, or (ii) single check valve and SSV; test every 6 months 25 SCSSV satisfies the requirements of a single check valve." SSSV requirement for MI injectors
Milne Point - Sag fail -safe auto SSV; injection wells require double check valve; test Check valve requirements for injectors are not covered by
Milne Point Unit 423 7 no every 6 months 25.265(a); 25.265(b); 25.265(h)(5) "Injection wells must be equipped with a double check valve arrangement."
River readopted regulation
fail -safe auto SSV; gas /MI injectors require SSV and single check , valve requirements for injectors are not covered by
valve and SSSV landing nipple; water injection wells require (i) double "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve readopted regulation; readopted 25.265(d)(5) does not include
Kuparuk River Unit Kuparuk - West Sak 406B 6 no check valve or (ii) single check valve and SSV; test every 6 months; 25.265(a); 25.265(b); 25.265(d); arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or SSSV requirement for MI injectors; administrative approval CO
CO 4068.001 modifies Rule 6(e) - LPP may be defeated on W. Sak 25.265(h)(5) satisfies the may SCSSV th re of a single check valve. The Low Pressure Pilot ma be remains effective [re:defeating the LPS when surface
injectors w /surface pressure <500psi w/ notice when defeated and defeated on West Sak water injectors with surface injection pressure less than 500psi." injection pressure for West Sak water injector is <500psi]
placed back in service
fail -safe auto SSV and SCSSV; LPS trip pressure; readily accessible
Badami Badami 402B 6 yes control unit; SSSV below permafrost; NTE 210days between tests; 25.265(a); 25.265(b); 25.265(h); N/A
submit test results electronically within 14days; SVS defeated /removed 25.265(m)
only if well SI or pad continuously manned
fail -safe auto SSV (S /D well and artificial lift); sign on well if SVS 25.265(a); 25.265(b); 25.265(h)(5); Requirement to maintain a wellhead sign and list of wells with
Prudhoe Bay Unit North Prudhoe 345 4 yes deactivated; maintain list of wells w/deactivated SVS; test as 25.265 m N/A deactivated SVS was replaced with requirement to maintain a
prescribed by Commission ( ) tag on wet when not manned
fail -safe auto SSV (S /D well and artificial lift); if SSSV installed it must
Prudhoe Ba Unit Prudhoe 341E 5 yes be maintained and tested as part of SVS; sign on well if SVS 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV;
Y deactivated; maintain list of wells wldeactivated SVS; test as 25.265(h)(5) replaces SSSV nipple requirement for all wells
prescribed by Commission
Prudhoe Ba Unit Niakuk 329A 5 es fail -safe auto SSV and SCSSV; maintain list of wells w/ removed or 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wets require SSSV;
Y Y deactivated SVS; sign on wellhead 25.265(h)(5); 25.265(m) replaces SSSV nipple requirement for all wells
Prudhoe Ba Unit Pt. McIntyre 3178 8 es fail -safe auto SSV and SCSSV; SSSV may be rermoved as pa rt o 25.265(a); 25.265(b); 25.265(d); N/A
routine well ops w/o notice 2 5.265(j); 25.265(m) Readopted 25.265(d) dictates which wells require SSSV;
y ty y replaces SSSV nipple requirement for all wells
_
Prudhoe Ba Unit West Beach 311 B 6 yes fail -safe auto SSV; sign on well if SVS deactivated; maintain list of wells 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV;
Y w /deactivated SVS; test as prescribed by Commission 25.265(h)(5); 25.265(m) replaces SSSV nipple requirement for all wells
West Fork (Sterling
West Fork A &B) 300 5 yes fail -safe auto SVS on each production tubing 25.265(a); 25.265(b) N/A
fail -safe auto SSV; sign on well if SVS deactivated; maintain list of wells 25.265(a); 25.265(b); 25.265(h)(5); Requirement to maintain a wellhead sign and list of wells with
Prudhoe Bay Unit Lisburne 207A 7 yes N/A deactivated SVS was replaced with requirement to maintain a
Y w /deactivated SVS; test as prescribed by Commission 25.265(m) tag on well when not manned
suitable automatic safety valve installed below base of permafrost to Readopted 25.265(d) dictates which wells require SSSV; I
Prudhoe Bay Unit Prudhoe - Kuparuk 98A 5 yes 25.265(d) N/A
prevent uncontrolled flow replaces SSSV nipple requirement for all wells
Commission policy dictating SVS performance testing AOGCC Policy - SVS Failures; issued by order of the
Statewide N/A N/A N/A yes requirements 25.265(h); 25.265(n); 25.265(o) N/A Commission 3/30/1994 (signed by Commission Chairman
Dave Johnson)
Footnotes
(1) No SVS rules found in Injection Orders
(2) New title for Revised Rule; "N /A" means entire pool rule to be rescinded
Page 2 of 2
• •
Fisher, Samantha J (DOA)
From: Fisher, Samantha J (DOA)
Sent: Tuesday, January 11, 2011 4:08 PM
To: Ballantine, Tab A (LAW); '(foms2 @mtaonline. net)'; '( michael .j.nelson @conocophillips.com)';
'(Von.L .Hutchins @conocophillips.com)'; 'AKDCWelllntegrityCoordinator; 'Alan Dennis';
'alaska @petrocalc.com'; 'Anna Raff; 'Barbara F Fullmer'; 'bbritch'; 'Becky Bohrer'; 'Bill
Penrose'; 'Bill Walker; 'Bowen Roberts'; 'Brad McKim'; 'Brady, Jerry L'; 'Brandon Gagnon';
'Brandow, Cande (ASRC Energy Services)'; 'Brian Havelock'; 'Bruce Webb'; 'carol smyth';
'caunderwood'; 'Chris Gay'; 'Cliff Posey'; 'Crandall, Krissell'; 'D Lawrence'; 'daps'; 'Daryl J.
Kleppin'; 'Dave Matthews'; 'David Boelens'; 'David House'; 'David Steingreaber;
'ddonkel @cfl.rr.com'; 'Deborah J. Jones'; Delbridge, Rena E (LAA); 'Dennis Steffy'; 'Elowe,
Kristin'; 'Erika Denman'; 'eyancy'; 'Francis S. Sommer; 'Fred Steece'; 'Gary Laughlin'; 'Gary
Rogers'; 'Gary Schultz'; 'ghammons'; 'Gordon Pospisil'; 'Gorney, David L.'; 'Greg Duggin';
'Gregg Nady'; 'gspfoff; 'Harry Engel'; 'Jdarlington (jarlington @gmail.com)'; 'Jeanne
McPherren'; 'Jeff Jones'; 'Jerry McCutcheon'; 'Jill Womack'; 'Jim White'; 'Jim Winegarner;
'Joe Nicks'; 'John Garing'; 'John Katz'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'Jon
Goltz'; 'Judy Stanek'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; 'Kelly
Sperback'; 'Kim Cunningham'; 'Larry Ostrovsky'; 'Laura Silliphant'; 'Marilyn Crockett; 'Mark
Dalton'; 'Mark Hanley (mark.hanley @anadarko.com)'; 'Mark Kovac'; 'Mark P. Worcester;
'Marguerite kremer; 'Michael Dammeyer; 'Michael Jacobs'; 'Mike Bill'; 'Mike Mason'; 'Mikel
Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mkm7200'; 'nelson'; 'Nick W. Glover; 'NSK
Problem Well Supv'; 'Patty Alfaro'; 'Paul Decker (paul.decker @alaska.gov)'; 'Paul Figel';
'PORHOLA, STAN T'; 'Randall Kanady'; 'Randy L. Skillern'; ' rob.g.dragnich @exxonmobil.com';
'Robert Brelsford'; 'Robert Campbell'; 'Ryan Tunseth'; 'Scott Cranswick'; 'Scott Griffith'; Scott,
David (LAA); 'Shannon Donnelly'; 'Sharmaine Copeland'; Shellenbaum, Diane P (DNR);
Slemons, Jonne D (DNR); 'Sondra Stewman'; 'Steve Lambert; 'Steve Moothart'; 'Steven R.
Rossberg'; 'Suzanne Gibson'; 'tablerk'; 'Tamera Sheffield'; Taylor, Cammy 0 (DNR); 'Temple
Davidson'; 'Teresa Imm'; 'Terrie Hubble'; 'Thor Cutler; 'Tina Grovier; 'Todd Durkee'; 'Tony
Hopfinger; 'trmjrl'; 'Valenzuela, Mariam '; Vicki Irwin'; 'Walter Featherly'; 'Will Chinn';
Williamson, Mary J (DNR); 'Yereth Rosen'; 'Aaron Gluzman'; Bettis, Patricia K (DNR);
caunderwood @marathonoil.com; 'Dale Hoffman'; 'David Lenig'; 'Gary Orr; 'Jason Bergerson';
'Joe Longo'; 'Lara Coates'; 'Marc Kuck'; 'Mary Aschoff; 'Matt Gill'; 'Maurizio Grandi';
Ostrovsky, Larry Z (DNR); 'Richard Garrard'; 'Sandra Lemke'; 'Talib Syed'; 'Tiffany Stebbins';
'Wayne Wooster; 'William Van Dyke'; Woolf, Wendy C (DNR); Aubert, Winton G (DOA)
(winton.aubert@alaska.gov); Brooks, Phoebe L (DOA) (phoebe.brooks @alaska.gov);
Colombie, Jody J (DOA) (jody.colombie @alaska.gov); Crisp, John H (DOA)
(john.crisp @alaska.gov); Davies, Stephen F (DOA) (steve.davies @alaska.gov); Foerster,
Catherine P (DOA) (cathy.foerster @ alaska.gov); Grimaldi, Louis R (DOA)
(lou.grimaidi @alaska.gov); Johnson, Elaine M (DOA) (elaine.johnson @ alaska.gov); Jones,
Jeffery B (DOA) (jeff.jones @alaska.gov); Laasch, Linda K (DOA) (linda.laasch @alaska.gov);
Maunder, Thomas E (DOA) (tom.maunder @alaska.gov); McIver, Bren (DOA)
(bren.mciver @alaska.gov); McMains, Stephen E (DOA) (steve.mcmains @alaska.gov);
Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA) (bob.noble @alaska.gov); Norman,
John K (DOA) (john.norman @alaska.gov); Okland, Howard D (DOA)
(howard.okland @alaska.gov); Paladijczuk, Tracie L (DOA) ( tracie.paladijczuk @alaska.gov);
Pasqual, Maria (DOA) (maria.pasqual @alaska.gov); Regg, James B (DOA)
(jim.regg @alaska.gov); Roby, David S (DOA) (dave.roby @alaska.gov); Saltmarsh, Arthur C
(DOA) (art.saltmarsh @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); Shartzer, Christine R (DOA)
Subject: Other 66 Safety Valve Systems
Attachments: other66.pdf
ScimaaNtattai 1i4h.er
Alcuska'OW a a4,-Co-wserva. ulwG
(907)793 - 1223
(907)276 (fix )
1
• •
Mary Jones David McCaleb
XTO Energy, Inc. IHS Energy Group George Vaught, Jr.
Cartography GEPS P.O. Box 13557
810 Houston Street, Ste 200 5333 Westheimer, Suite 100 Denver, CO 80201 -3557
Ft. Worth, TX 76102 -6298 Houston, TX 77056
Richard Neahring
Jerry Hodgden Hod den Mark Wedman
Hodgden Oil Company NRG Associates Halliburton
408 18 Street President 6900 Arctic Blvd.
Golden, CO 80401 -2433 P.O. Box 1655 Anchorage, AK 99502
Colorado Springs, CO 80901
Bernie Karl CIRI
K &K Recycling Inc. Land Department Baker Tools
Oil
h
7 E . 94th a. P.O. Box 58055 P.O. Box 93330 795 E
Fairbanks, AK 99711 Anchorage, AK 99503 Anchorage, AK 99515 -4295
Jill Schneider
North Slope Borough Gordon Severson
US Geological Survey
P.O. Box 69 4200 niv r i Drive 3201 Westmar Circle
Barrow, AK 99723 Anchorage, AK 99508 Anchorage, AK 99508 -4336
Jack Hakkila Darwin Waldsmith James Gibbs
P.O. Box 190083 P.O. Box 39309 P.O. Box 1597
Anchorage, AK 99519 Ninilchick, AK 99639 Soldotna, AK 99669
Kenai National Wildlife Refuge
Penny Vadla Cliff Bur tin
Refuge Manager
I da g
efuge anager 399 West Riverview Avenue 319 Charles Street
P.O. Box 2139 Soldotna, AK 99669 -7714 Fairbanks, AK 99701
Soldotna, AK 99669 -2139
Richard Wagner
P.O. Box 60868
Fairbanks, AK 99706
\1 3 ` U ` \ `�` \ \\
2
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1 ALASKA OIL AND GAS CONSERVATION COMMISSION
2 Before Commissioners: Daniel T. Seamount, Chairman
John K. Norman
3 Cathy Foerster
4
In the Matter of Rescinding )
5 Safety Valve System Rules )
in Existing Conservation )
6 Orders )
7 )
8 ALASKA OIL and GAS CONSERVATION COMMISSION
Anchorage, Alaska
9
December 6th, 2010
10 2:00 o'clock p.m.
11 PUBLIC HEARING
12 BEFORE: Daniel T. Seamount, Chairman
Cathy Foerster, Commissioner
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1 TABLE OF CONTENTS
2 Opening Remarks by Chair Seamount 03
3 Testimony by Dr. Winton Aubert
Testimony by Mr. Harry Engel
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Y Y Y g
4 Testimony by b Ms. M.J. Loveland 17
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1 P R O C E E D I N G S
2 (On record - 2:02 p.m.)
3 CHAIR SEAMOUNT: On the record. I'd like to call this
4 hearing to order. Today is December 6th, 2010, and the time is
5 2:02 1/2 p.m. We're located at 333 West 7th Avenue, Suite 100,
6 Anchorage, Alaska. Those are the offices of the Alaska Oil &
7 Gas Conservation Commission.
8 To my left is Commissioner Cathy Foerster. I'm Dan
9 Seamount, the Chair. We have a quorum. That's two out of
10 three.
11 If anybody has any special needs, which I think we all do,
12 please contact Jody Colombie, our Special Assistant in the back
13 there. Raise your hand, Jody. I don't think everybody knows
14 you. Okay. There you go.
15 R & R Court Reporting will be recording our proceedings.
16 You can get a copy of the transcript from R & R Court
17 Reporting. And then as you guys have all experienced this, but
18 I'll just remind you, speak on both of the microphones when you
19 testify so that people in the back can hear you and so that the
20 recorder can get a clear recording.
21 This is Docket No. CO- 10 -21. And that's regarding AOGCC's
22 own motion to have a hearing on rescinding safety valve system
23 rules in existing Conservation Orders. And it's rescinding,
24 not resending, right? Or do the British say resending, they
25 say schedule. All right.
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1 Anyway, notice of this hearing was published on November
2 4th, 2010, in the Anchorage Daily News as well as on the Alaska
3 online notices and the AOGCC web site.
4 The hearing is being held in accordance with 20 AAC 25.540
5 of the Alaska Administrative Code. And the hearing will be
6 recorded.
7 So I'm looking at the sign -up sheet and people are still
8 really interested in talking about this. Let's see, one, two,
9 three, it looks like four people are interested in testifying
10 today. And one of them happens to be our very own AOGCC Senior
11 Petroleum Engineer, Dr. Winton Aubert. Is he going to be the
12 first one to testify?
13 COMMISSIONER FOERSTER: I can hardly wait.
14 CHAIR SEAMOUNT: But he's the first, right? Okay. Well,
15 Winton, Dr. Aubert will kick it off then. Please approach the
16 bench, Dr. Aubert. I mean -- well, I don't even know your name
17 yet 'cause I've got to swear you in, so, please raise your
18 right hand.
19 (Oath administered)
20 DR. AUBERT: I do so swear.
21 CHAIR SEAMOUNT: And so you can, therefore, state your
22 name for the record, and proceed, please.
23 WINTON AUBERT
24 called as a witness on behalf of AOGCC, testified as follows
25 on:
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1 DIRECT EXAMINATION
2 DR. AUBERT: For the record I'm Winton Aubert, Senior
3 Engineer on the Commission Staff.
4 Our repealed and re- adopted well safety valve systems
5 regulations at 20 AAC 25.265 were signed by the Alaska
6 Lieutenant Governor and took legal effect on December 3rd,
7 2010. These new regulations consolidate requirements
8 previously established in Commission legacy documents,
9 policies, and statewide guidelines relating to safety valve
10 systems.
11 We believe that latter embodiments are now redundant and
12 unnecessary and can be eliminated. Our review of Commission
13 records revealed 33 existing orders that contained rules
14 governing well safety valve systems. 17 of those Commission
15 orders contain only broad, regulatory requirements for safety
16 valve systems that are now covered by our newly adopted regs.
17 The remaining 16 orders include field or pool specific safety
18 valve requirements. We believe that within existing
19 Conservation orders that contain rules unrelated to well safety
20 valve system such rules, obviously, should continue in effect
21 unmodified. We further believe that eliminating redundant
22 requirements and standardizing wording for appropriate field
23 and pool specific rules will improve regulatory clarity and
24 reduce confusion. Our subject proposed other order number 58
25 puts these beliefs in motion.
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1 CHAIR SEAMOUNT: Do you have any comments or questions,
2 Commissioner Foerster?
3 COMMISSIONER FOERSTER: None.
4 CHAIR SEAMOUNT: Thank you, Dr. Aubert. Okay. Please
5 hang around in case we have any additional questions for you.
6 Okay. One, two -- no, one. It looks like we have one
7 person wanting to testify from BP and two from ConocoPhillips.
8 And it looks like nobody from AOGA.
9 MR. ENGEL: I'm with AOGA and BP.
10 CHAIR SEAMOUNT: Oh, you are AOGA, okay.
11 Okay. It looks like unanimously AOGA /BP gets to go first.
12 And this is the biggest type I've ever seen in any documents
13 put up here. And I assume you think that Commissioner Foerster
14 or I have gotten too old to read regular type, is that correct?
15 Please approach the bench. Please raise your right hand?
16 (Oath administered)
17 MR. ENGEL: I do so swear.
18 CHAIR SEAMOUNT: Do you wish to be considered as an expert
19 witness
20 MR. ENGEL: I do.
21 CHAIR SEAMOUNT: since you've been conside- -- you've
22 been designated an expert witness probably a dozen times so
23 far, but we'll go through the motions.
24 Commissioner Foerster, do you have any questions or
25 comments that you'd like to make about Mr. Engel?
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1 COMMISSIONER FOERSTER: I'm very familiar with Mr. Engel 's
2 qualifications and I'm willing to accept him anyway.
3 CHAIR SEAMOUNT: You haven't heard his qualifications yet.
4 COMMISSIONER FOERSTER: But I'm very familiar with
5 them
6 CHAIR SEAMOUNT: Okay.
7 COMMISSIONER FOERSTER: without hearing them.
8 CHAIR SEAMOUNT: I wonder if we should put them on the
9 record anyway.
10 COMMISSIONER FOERSTER: Sure.
11 CHAIR SEAMOUNT: Okay.
12 HARRY ENGEL
13 called as a witness on behalf of BP and AOGA, testified as
14 follows on:
15 DIRECT EXAMINATION
16 CHAIR SEAMOUNT: Please give us your qualifications, what
17 you'd like to be considered as an expert witness in.
18 MR. ENGEL: Good morning -- or good afternoon, Chairman
19 Seamount and Commissioner Foerster.
20 CHAIR SEAMOUNT: Did I swear him in?
21 COMMISSIONER FOERSTER: No.
22 CHAIR SEAMOUNT: Did I swear you in?
23 MR. ENGEL: Yes, sir.
24 CHAIR SEAMOUNT: I did. Okay. I just wanted to make sure
25 that Commissioner Foerster was paying attention, and
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1 COMMISSIONER FOERSTER: I'm not.
2 CHAIR SEAMOUNT: she wasn't.
3 MR. ENGEL: Very well My name is Harry Engel. And this
4 afternoon I will be wearing two hats. I'll be representing BP
5 Exploration regarding the subject of this hearing and I'll also
6 be representing the Alaska Oil & Gas Association as chairman of
7 the AOGCC Task Group on several related topics.
8 I am the engineering team leader responsible for integrity
9 management in BP's Alaska wells organization. My
10 responsibilities span all of BP's well operations in Alaska. I
11 hold undergraduate engineering degrees in Civil and
12 Environmental Engineering, and have over 30 years experience of
13 experience in the oil and gas industry primarily related to
14 drilling and well intervention activities. My assignments have
15 included drilling engineering, well site leader, and various
16 health, safety and environmental management positions. The
17 majority of my experience has been most -- has been in most of
18 the operating areas in Alaska. I've also worked in the Rocky
19 Mountains and have had several temporary international
20 assignments.
21 CHAIR SEAMOUNT: Okay. I will again ask the question.
22 Commissioner Foerster?
23 COMMISSIONER FOERSTER: What's the question?
24 CHAIR SEAMOUNT: Do you have any questions or comments of
25 Mr. Engel, and if you do or do not do, would you have any
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1 objections to us designating him as an expert witness?
2 COMMISSIONER FOERSTER: No objection.
3 CHAIR SEAMOUNT: I have none either. You're hereby
4 designated an expert witness, Mr. Engel. Please proceed.
5 MR. ENGEL: I submitted written comments to the Commission
6 on December 3rd, 2010, concerning the proposed changes to the
7 safety valve system rules in existing Conservation orders.
8 Does the Commissioner have copies of my December 3rd letter?
9 If not I've got copies here I could give you.
10 CHAIR SEAMOUNT: I don't have them with me
11 COMMISSIONER FOERSTER: I just read it. I read it right
12 before the hearing so I'm fine.
13 MR. ENGEL: Do you want a copy? Do you want a copy right
14 now?
15 COMMISSIONER FOERSTER: No, thanks.
16 MR. ENGEL: Okay. I request that my letter of December
in the record for this subject.
II 17 3rd be included �
18 COMMISSIONER FOERSTER: If you have an extra copy, give it
19 to the court reporter for inclusion in the record.
20 CHAIR SEAMOUNT: And I assume you have no objections to
21 putting this into the record?
22 COMMISSIONER FOERSTER: None at all.
23 CHAIR SEAMOUNT: Okay. We are going to put a letter from
24 BP signed by Mr. Engel, dated December 3rd, 2010, the title is
25 Proposed Changes to Safety Valve Systems Rules in Existing
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1 Conservation Orders, two pages, into the record. Please
2 proceed.
3 MR. ENGEL: Thank you, Commissioner Seamount. We agree
4 with the intent to rescind language from Conservation orders
5 that is redundant to the recently adopted changes to the safety
6 valve regulations, and we commend the AOGCC for taking this
7 step to simplify and standardize the safety valve system
8 requirements. We also agree with nearly all of the proposed
9 specific changes, however, we do question the proposed language
10 in two of the orders included in the public notice,
11 specifically the Prudhoe Bay Borealis oil pool, Conservation
12 Order 471, and Milne Point Schrader Bluff oil pool,
13 Conservation Order 477
14 During the process leading up to the new safety valve
15 system regulations there were extensive discussion related to
16 the potential requirement for subsurface safety valves in
17 water - alternating gas or WAG wells. The new safety valve
18 system regulations specifically require subsurface safety
19 valves in gas only injection wells, but not in WAG wells.
20 Miscible injections or MI wells referenced in the proposed
21 changes to the two Conservation orders could be MI only or MI
22 WAG wells. Per the new safety valve system regulations, MI
23 wells are required to have a subsurface safety valve in gas
24 only injection wells, yet MI WAG wells do not require a
25 subsurface safety valve. Maintaining the requirement for
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1 subsurface safety valves in WAG wells at Prudhoe Bay Borealis
2 and Milne Point Schrader Bluff oil pools seems inconsistent
3 with the intent of standardizing the safety valve system
4 regulations. It is not apparent why these pools would have
5 differential subsurface safety valve requirements compared to
6 nearby pools. We respectfully request the Commission rescind,
7 without replacement, the existing language in the Milne Point
8 Schrader Bluff and Prudhoe Bay Borealis Conservation orders
9 related to subsurface safety valves.
10 At this point I would be happy to address any questions to
11 that part of my testimony.
12 COMMISSIONER FOERSTER: I have a question for Dr. Aubert.
13 CHAIR SEAMOUNT: Aubert.
14 COMMISSIONER FOERSTER: Aubert.
15 CHAIR SEAMOUNT: Aubert.
16 COMMISSIONER FOERSTER: Aubert, Win. Was it an oversight?
17 DR. AUBERT: Yes.
18 COMMISSIONER FOERSTER: Okay.
19 CHAIR SEAMOUNT: Okay. We'll seriously consider that
20 request. If you could proceed, Mr. Engel.
21 MR. ENGEL: Very good. Now I'm going to switch hats. Now
22 I would like to represent the Alaska Oil & Gas Association as
23 chairman of the AOGCC task group on several related topics that
24 are of interest to AOGA member companies.
25 The main topic I would like to present is the transition
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1 period for operators to design, order, fabricate, transport,
2 install and test necessary equipment to comply with the new
3 safety valve system regulations that became effective December
4 3rd, 2010.
5 The interpretation of 20 AAC 25.265(f), as in Frank, could
6 significantly impact the number of wells required to have
7 subsurface safety valves and the type of valve installed before
8 the next tubing workover. Section (f), as in Frank, refers to
9 wells completed December 3rd, 2010, that are subject to section
10 (d), delta, and are not equipped with functional hardware that
11 would allow installation of a subsurface safety valve. These
12 wells must comply with section (d) no later than the date of
13 the next tubing workover. Section (d) requires.a fail -safe
14 automatic surface controlled subsurface safety valve. It's
15 reasonable to interpret that if a well does not have the
16 functional hardware necessary to install a surface controlled
17 -- subsurface safety valve, the operator would be required to
18 install a surface controlled subsurface safety valve no later
19 than the next tubing workover.
20 It is not clear if the Commission would expect an operator
21 to install non - surface controlled subsurface safety valves in
22 wells that have a suitable profile for that type of subsurface
23 safety valve in the tubing. We would appreciate clarity
24 related to this issue due to the impact on the number of
25 appropriate valves that would need to be designed, fabricated
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1 and installed.
2 Considering the timing to design, order, fabricate,
3 transport, install and test necessary equipment to comply with
4 the new regulations, we request the Commission formally
5 document a one year transition period for operators to comply
6 with the regulations.
7 CHAIR SEAMOUNT: Commissioner Foerster, do you have any
8 questions
9 COMMISSIONER FOERSTER: No.
10 CHAIR SEAMOUNT: comments? Okay. I don't either.
11 MR. ENGEL: The next item I'd like to address relates to a
12 proposed industry guidance bulletin. It would be appreciated
13 if the Commission could provide an update on the effort to
14 prepare the bulletin related to testing, reporting, and
15 calculation of safety valve system pad failure rates and
16 potential consequences.
17 CHAIR SEAMOUNT: Any questions?
18 COMMISSIONER FOERSTER: By asking for an update, I'm
19 assuming that you're waiting for that information for some use?
20 MR. ENGEL: Yes.
21 COMMISSIONER FOERSTER: What would that use be?
22 MR. ENGEL: Pardon me?
23 COMMISSIONER FOERSTER: What is that use? What is not
24 giving you that information keeping you from doing right now?
25 MR. ENGEL: Well, during the last several hearings we've
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1 had, Commissioner Foerster, industry has expressed an interest
2 in gaining clarity around methods for calculating failure rates
3 for safety valve testing across the North Slope and Cook Inlet.
4 And also the method in which it is calculated and then the
5 consequences for enhanced testing would be beneficial to the
6 industry.
7 COMMISSIONER FOERSTER: Just curiosity? Okay.
8 CHAIR SEAMOUNT: Clarification.
9 MR. ENGEL: It would also provide the -- it would provide
10 the rules of how they're actually conducted.
11 COMMISSIONER FOERSTER: So that you can -- you would like.
12 MR. ENGEL: To better understand the way that the State
13 calculates the failure rates.
14 COMMISSIONER FOERSTER: So it's just for an understanding
15 of what we do. You're not going to do something different
16 based on what we give you? You're just asking for information
17 that will give you a better understanding of what we do?
18 MR. ENGEL: Right, we're asking for the clarity on that
19 topic.
20 COMMISSIONER FOERSTER: Uh -hum. No other questions.
21 CHAIR SEAMOUNT: Okay.
22 MR. ENGEL: Okay. Lastly, I would like to make a
23 recommendation for consideration for a future revision to the
24 safety valve system regulations. The regulations effectively
25 define a quote, safety valve system, unquote, in Sections 20
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1 AAC 25.265(b) and (c). These sections reference surface safety
2 valves, actuators, low pressure detection devices and other
3 surface related components. Subsurface safety valves are
4 mentioned in section (d) yet not specifically referenced as
5 being included as part of the entire safety valve system.
6 Therefore, it appears one could interpret that subsurface
7 safety valves are not included in the definition of a, quote,
8 safety valve system. This could possibly impact the
9 applicability of section (c)(8) which provide a one year period
10 after December 3rd, 2010, to gain Commission approval to
11 operate components of a safety valve system that do not meet
12 the requirements of section (c) items 1 through 7. This
13 section applies to surface equipment only. It could also
14 possibly impact the calculation of safety valve system test
15 results depending upon if the subsurface safety valve is
16 included in the calculation. A clear definition of a safety
17 valve system would avoid potential confusion in the future.
18 That concludes my comments this afternoon.
19 COMMISSIONER FOERSTER: Could you give me an example of a
20 situation where this confusion would occur?
21 MR. ENGEL: The one that I see, Commissioner Foerster,
22 would be around the section C -7 provides a one year period for
23 an operator to gain Commission approval to operate a well
24 without the approved equipment in place at the moment, and it
25 applies to surface only, so if an operator had subsurface
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1 equipment that didn't meet the intent, the confusion arises is
2 it part of the system or not part of the system.
3 CHAIR SEAMOUNT: Okay. I have no questions. Mr. Engel,
n in case we can think of other
4 please stick around questions or q
5 comments for you.
6 MR. ENGEL: Okay. I have one last comment for
7 Commissioner Foerster. Commissioner Foerster, I was sad to
8 learn recently that University of Texas is not bowl eligible
9 this year.
10 COMMISSIONER FOERSTER: Every cloud has a silver lining.
11 My Saturdays are now completely free to do other things besides
12 watch football.
13 CHAIR SEAMOUNT: Finally there's life beyond football,
14 huh?
15 Thank you for your comments, Mr. Engel.
16 MR. ENGEL: You're welcome.
17 CHAIR SEAMOUNT: Okay. It looks like next we have
18 ConocoPhillips. Okay. I can't remember, am I allowed to swear
19 them both in at the same time?
20 COMMISSIONER FOERSTER: Yeah.
21 CHAIR SEAMOUNT: Okay. Please raise your right hands?
22 (Oath administered)
23 MS. LOVELAND: I do so swear.
24 MR. KANADY: I do so swear.
25 CHAIR SEAMOUNT: Thank you. Okay. Who's first?
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1 MS. LOVELAND: I guess I am.
2 CHAIR SEAMOUNT: Okay. Please state your name, if you
3 want to be considered as an expert witness please give us your
4 qualifications and what discipline you're going to be -- you
5 want to be designated as an expert witness in.
6 M.J. LOVELAND
7 called as a witness on behalf of ConocoPhillips, testified as
8 follows on:
9 DIRECT EXAMINATION
10 MS. LOVELAND: My name is M.J. Loveland, and I do want to
11 be considered an expert witness. I am currently well integrity
12 project supervisor for ConocoPhillips Alaska. I have a
13 Bachelor of Science degree in Petroleum Engineering from the
14 University of Wyoming. I've 21 years of industry experience
15 and have been working with safety valve systems and the safety
16 valve regulations since 2003. At the time I was the supervisor
17 that gave work direction and training to the crews that perform
18 the actual safety valve performance tests. I've also been an
19 active member on the team working with the AOGCC on the safety
20 valve system regulation update since 2006. My current role is
21 acting as an advisor and a single point of contact that
22 addresses issues, questions, and projects regarding -- to well
23 integrity issues which -- including safety valve systems.
24 CHAIR SEAMOUNT: Commissioner Foerster, questions or
25 comments?
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1 COMMISSIONER FOERSTER: Nope
2 CHAIR SEAMOUNT: Okay.
3 COMMISSIONER FOERSTER: I'm very familiar with Ms.
4 Loveland's qualifications.
Do you have any objections?
5 CHAIR SEAMOUNT: y y ections? ]
6 COMMISSIONER FOERSTER: None.
7 CHAIR SEAMOUNT: Okay. I don't either. Ms. Loveland,
8 you're designated as an expert witness.
9 MS. LOVELAND: Thank you. ConocoPhillips appreciates the
10 opportunity to give comment and testimony for this process
11 that's been going on for awhile. And we hope this is the last
12 one, but
13 CHAIR SEAMOUNT: So do I.
14 MS. LOVELAND: Specifically today I'm here to talk about
15 two Conservation orders, 406B.001 and 432D.009. They're both
16 on the list to be rescinded. And these Conservation orders
17 allow the low pressure pilots on West Sak wells and Kuparuk
18 injection wells that have low pressure -- low surface pressure
19 in- -- or have low surface pressure less than 500 or 700 psi
20 respectively, to be defeated until that pressure exceeds those
21 that I just said.
22 We understand that an allowance to defeat the low pressure
23 pilots in 20 AAC 25.265(j) (2) , however (j) (2) also states that
24 we have to have Commission authorization to not have 24 hour
25 man watch when these pilots are defeated. ConocoPhillips
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1 suggests leaving these two orders in place as that
2 authorization to have the pilots defeated with Commission
3 permission.
4 In West Sak operations it is very common for the surface
5 injection pressures to take several weeks to stabilize above
6 500 psi after a shut -in event that's even as short as 12 hours.
7 Most of the time it's not known until after the well is brought
8 online that the pressure will stabilize below 500 psi.
9 Therefore, advance notice for authorization isn't very
10 practical and a 24 hour man watch is a burden in our opinion
11 for a low risk practice. Roughly one well per month for up to
12 two weeks a month -- two weeks to a month would require a man
13 watch. There are four separate drill sites which have West Sak
14 injection wells that could have injection pressures less than
15 500 psi at any one time. The injection pressure can be so low
16 that they start out on a vacuum and they'll be at that for
17 several days and so actually get a low pressure pilot set point
18 is impossible or nearly impossible to manage.
19 The Kuparuk injectors have similar issues when the
20 injection wells have been pre - produced before swapping them to
21 injection. Rescinding 406B.001 and 432D.009 without replacing
22 them with equivalent authorization to defeat lower pressure
23 points on wells with low surface injection pressure will hamper
24 our ability to manage the West Sak flood and to a smaller
25 degree the Kuparuk flood in a cost efficient as well as in a
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1
1 pressure efficient manner. Therefore, ConocoPhillips requests
2 406B.001 and 432D.009 to be retained or replaced with like
3 authorization that allows the lower pressure pilots to be
4 defeated within pressure restrictions without the 24 hour man
5 watch.
6 CHAIR SEAMOUNT: Questions?
7 COMMISSIONER FOERSTER: Yes. So you're saying just leave
8 in the piece of the CO that relates to the low pressure pilots,
9 not the entire CO?
10 MS. LOVELAND: On one of them, on 406B the whole
11 Conservation order is being retained except .001. And on 432D
12 the Conservation order is being rescinded completely.
13 COMMISSIONER FOERSTER: So you want that, the LLP part
14 saved in both cases?
15 MS. LOVELAND: Yes.
16 COMMISSIONER FOERSTER: Okay. So have you thought about
17 this 24 hour man watch as a job stimulus? No, just kidding.
18 MS. LOVELAND: Good idea, but
19 COMMISSIONER FOERSTER: That was a joke.
20 CHAIR SEAMOUNT: It was?
21 COMMISSIONER FOERSTER: That was my only question, the
22 first one, the other one was just levity. No more questions.
23 CHAIR SEAMOUNT: Okay. Thank you. Thank you, Ms.
24 Loveland. And we may have further questions for you. Okay.
25 Okay. We've sworn you in so
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1
1 MR. KANADY: I -- we have -- Conoco has no further
2 comments.
3 CHAIR SEAMOUNT: Oh, you have no further
4 MR. KANADY: Yeah.
5 CHAIR SEAMOUNT: Oh, okay. At this point then did anybody
6 in the public or anybody at all have any questions or comments
7 to make? Mr. Engel?
8 MR. ENGEL: Yes, Commissioner Seamount. Could you provide
9 us with a rough estimate of the plan for it for answering or
10 addressing our questions this morning -- or this afternoon
11 regarding this topic?
12 COMMISSIONER FOERSTER: Not until we've talked to staff.
13 CHAIR SEAMOUNT: I think we need to talk to staff first
14 and probably the best way to go would be to contact which one?
15 Which one of you guys will be the contact?
16 DR. AUBERT: Either.
17 CHAIR SEAMOUNT: Okay. It'd be either Mr. Regg or Mr.
18 Aubert.
19 MR. ENGEL: Okay. Thank you.
20 CHAIR SEAMOUNT: We should have an answer -- we should
21 have that answered real shortly.
22 MR. ENGEL: Thank you. There's a consideration though of
23 potential compliance locations of this subject, a timely
24 response would be beneficial and really appreciated.
25 COMMISSIONER FOERSTER: We're not going to consider you
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1 out of compliance before we've made a decision.
2 MR. ENGEL: Thank you very much.
3 COMMISSIONER FOERSTER: But the second we do you better
4 watch out.
5 MR. ENGEL: Thank you very much.
6 CHAIR SEAMOUNT: Okay. You feel like adjourning?
7 COMMISSIONER FOERSTER: Yeah.
8 CHAIR SEAMOUNT: Okay. We are adjourned at the timely hour
9 of 2:29.
10 (Recessed - 2:29 p.m.
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0 •
1 C E R T I F I C A T E
2 UNITED STATES OF AMERICA )
) ss .
3 STATE OF ALASKA
4 I, Rebecca Nelms, Notary Public in and for the State of
Alaska, residing at Anchorage, Alaska, and Reporter for R & R
5 Court Reporters, Inc., do hereby certify:
6 THAT the annexed and foregoing Public Hearing held on
December 6th, 2010 was taken by William P. Rice, commencing at
7 the hour of 9:00 o'clock a.m, at the Alaska Oil and Gas
Conservation Commission of Alaska in Anchorage, Alaska;
8
THAT this Public Hearing, as heretofore annexed, is a true
9 and correct transcription of the proceedings taken by William
P. Rice and transcribed by myself.
10
IN WITNESS WHEREOF, I have hereunto set my hand and
11 affixed my seal this 10th day of December 2010.
12 (ik01
13 Notary Public in and for Alaska
My Commission Expires:10 /18/14
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ANCHORAGE, ALASKA 99501
• •
STATE OF ALASKA
OIL AND GAS CONSERVATION COMMISSION
Rescinding Safety Valve System Rules in Existing Conservation
Orders
December 6, 2010 at 2:00 pm
NAME AFFILIATION PHONE # TESTIFY (Yes or No)
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BP Exploration (Alaska) Inc.
900 East Benson Boulevard
P.O. Box 196612
Anchorage, Alaska 99519 -6612
(907) 564 -5006
December 3, 2010
Mr. Daniel T. Seamount, Jr
Alaska Oil & Gas Conservation Commission
333 West 7 Avenue, Suite 100
Anchorage, Alaska
99501
Reference: Proposed Changes to Safety Valve System Rules in
Existing Conservation Orders
Dear Commissioner Seamount,
BP Exploration (Alaska) Inc. (BPXA) has reviewed the proposed changes to the various existing
conservation orders concerning safety valve system (SVS) rules. BPXA operates in 20 of the 33
pools included in the November 03, 2010 Notice of Public Hearing.
We agree with the intent to rescind language from conservation orders that is redundant to the
recently adopted changes to the safety valve regulations, and we commend the AOGCC for
taking this step to simplify and standardize the SVS requirements. We also agree with nearly all
of the proposed specific changes, however, we question the proposed language in two of the
conservation orders (CO) included in the notice.
During the process leading up to the new SVS regulations there was extensive discussion
related to the potential requirement for subsurface safety valves (SSSV) in water - alternating -gas
(WAG) wells. The new SVS regulations specifically require SSSV in gas only injection wells but
not in WAG wells. Miscible injection (MI) wells could be MI only or MI WAG wells. In the new
SVS regulations, MI only injection wells are required to have a SSSV as "gas -only injection
wells ", yet MI WAG wells do not require a SSSV. Maintaining the requirement for SSSV in WAG
wells at Prudhoe Bay Borealis and Milne Point Schrader Bluff Oil Pools seems inconsistent with
the intent of standardizing the SVS regulations. It is not apparent why these pools would have
differential SSSV requirements compared to nearby pools.
Milne Point Schrader Bluff Oil Pool Conservation Order 477, Rule 5c contains the following
requirement: "SSSV or injection valves capable of preventing backflow to the surface must be
installed at a depth below the permafrost on gas or miscible injection wells when in service."
The proposed language for the revised pool rule is: "A SCSSV or subsurface- controlled
subsurface safety valve capable of preventing backflow to the surface must be installed at a
depth below the permafrost on miscible injection wells when in service." This requirement is
inconsistent with those contained in the other Milne Point conservation orders. Specifically, there
is no requirement for a SSSV in existing or the proposed conservation orders which apply to
Milne Point Unit operations: Kuparuk River Oil Pool (CO 432D, Rule 5) or the Sag River Oil
Pool (CO 423, Rule 7). Depending on the location, a SSSV may be required in wells under the
new SVS regulations.
•
Prudhoe Bay Borealis Oil Pool Conservation Order 471, Rule 3c contains the following
requirement: "Subsurface safety valves (SSSV) must installed y st be nstalled on gas or miscible (MI)
injection wells when in service." The proposed language for the revised pool rule is: "A SCSSV
or subsurface- controlled subsurface safety valve capable of preventing backflow to the surface
must be installed at a depth below the permafrost on miscible injection wells when in service."
This requirement is inconsistent with those contained in the other Prudhoe Bay Unit
conservation r
o ders. Specifically, there is no requirement for SSSV q SSV in existing or the
proposed conservation orders which apply to the following Prudhoe Bay Unit (PBU) pools:
Prudhoe (CO 341E, Rule 5), Midnight Sun (CO 452, Rule 6), Aurora (CO 457B, Rule 3), Orion
(CO 505B, Rule 3), Polaris (CO 484A, Rule 3), Put River (CO 559, Rule 3), Raven (CO 570,
Rule 5), North Prudhoe (CO 345, Rule 4), West Beach (CO 311B, Rule 6), or Lisburne (CO
207A). In addition, the current explicit requirement for SSSVs contained in several existing PBU
conservation orders is proposed to be removed. Depending on the location, a SSSV will be
required in some wells under the new regulation.
We respectfully request the Commission rescind without replacement the existing language in
the Milne Point Schrader Bluff and Prudhoe Bay Borealis Conservation Orders related to SSSV.
If you have any questions, please call me at 564 -4194.
Sincerely,
0---,4,(gcr,„„
Harold R. Engel
Alaska Drilling & Wells
Engineering Team Leader
BP Exploration (Alaska) Inc.
2
BP Exploration (Alaska) and Alaska Oil & Gas Association
Testimony regarding AOGCC's consideration to rescind part
or all the Safety Valve System Rules in Existing Conservation
Orders
Public Hearing December 6, 2010
Harry Engel, BP Engineering Team Leader and Chairman of
the Alaska Oil & Gas Association AOGCC Task Group
Good afternoon Chairman Seamount and Commissioners Norman and
Foerster. My name is Harry Engel. This afternoon I will be wearing 2 hats,
first representing BP Exploration (Alaska) regarding the subject of this
public hearing and then representing the Alaska Oil & Gas Association
(AOGA) as Chairman of the AOGCC Task Group on several related topics.
I am the Engineering Team Leader responsible for Integrity Management in
BP's Alaska Wells organization. My responsibilities span all of BP's Well
operations in Alaska. I hold undergraduate degrees in Civil and
Environmental Engineering and have over 30 years experience in the oil &
gas industry, primarily associated with drilling and well intervention
activities. My assignments have included drilling engineering, well site
leader roles and various Health, Safety and Environmental management
positions. The majority of my experience has been in most of the operating
areas in Alaska. I have also worked in the Rocky Mountains and have had
several temporary international assignments.
II '
Page 1 of 5
•
I submitted written comments on December 3, 2010 to the AOGCC
concerning the proposed changes to the safety valve system rules in
existing Conservation Orders and have provided additional copies this
afternoon. I request that my December 3, 2010 letter be included in the
public record concerning this subject.
We agree with the intent to rescind language from conservation orders that
is redundant to the recently adopted changes to the safety valve
regulations, and we commend the AOGCC for taking this step to simplify
and standardize the SVS requirements. We also agree with nearly all of
the proposed specific changes, however, we question the proposed
language in two of the conservation orders included in the public notice, the
Prudhoe Bay Borealis oil pool, CO 471 and Milne Point Schrader Bluff oil
pool, CO 477.
During the process leading up to the new SVS regulations there
was extensive discussion related to the potential requirement for
subsurface safety valves (SSSV) in water - alternating -gas or WAG wells.
The new SVS regulations specifically require SSSV in gas only injection
wells but not in WAG wells. Miscible injection (MI) wells referenced in the
proposed changes to the two Conservation Orders could be MI only or MI
WAG wells. Per the new SVS regulations, MI only injection wells are
required to have a SSSV as "gas -only injection wells ", yet MI WAG wells do
not require a SSSV. Maintaining the requirement for SSSV in WAG wells
at Prudhoe Bay Borealis and Milne Point Schrader Bluff Oil Pools seems
inconsistent with the intent of standardizing the SVS regulations. It is not
apparent why these pools would have differential SSSV requirements
Page2of5
compared to nearby pools. We respectfully request the Commission
rescind, without replacement the existing language in the Milne Point
Schrader Bluff and Prudhoe Bay Borealis Conservation Orders related to
SSSV.
At this point I would be happy to address any questions.
Now I would like to represent the Alaska Oil & Gas Association (AOGA) as
Chairman of the AOGCC Task Group on several related topics that are of
interest to AOGA member companies.
The main topic I would like to present is the transition period for operators
to design, order, fabricate, transport, install and test necessary equipment
to comply with the new SVS regulations that became effective December 3,
2010.
The interpretation of 20 AAC 25.265 (f) could significantly impact the
number of wells required to have a SSSV and the type of valve installed
before the next tubing workover. Section (f) refers to wells completed
before December 3, 2010 that are subject to section (d) and that are not
equipped with functional hardware that would allow installation of a
subsurface safety valve. These wells must comply with section (d) no later
than the date of the next tubing workover. Section (d) requires a fail -safe
automatic surface controlled subsurface safety valve. It's reasonable to
interpret that if a well does not have the functional hardware necessary to
install a surface controlled subsurface safety valve, the operator would be
Page 3 of 5
11/ 110
required to install a surface controlled subsurface safety valve no later than
the next tubing workover.
It is not clear if the Commission would expect an operator to install non -
surface controlled subsurface safety valves in wells that have a suitable
profile for that type of SSSV in the tubing. We would appreciate clarity
related to this issue due to the impact on the number of appropriate valves
that would need to be designed, fabricated and installed.
Considering the timing to design, order, fabricate, transport, install and test
necessary the equipment to comply with the new regulations, we request
the Commission formally document a one year transition period for
operators to comply with the regulations.
The next item I would like to address relates to a proposed Industry
Guidance Bulletin. It would be appreciated if the Commission could provide
an update on the effort to prepare the Bulletin related to testing, reporting,
calculation of SVS pad failure rates and potential consequences.
Page 4 of 5
4.
Lastly I would like to make a recommendation for consideration for a future
revision to the SVS regulations. The regulations effectively define a "safety
valve system" in sections 20 AAC 25.265 (b) and (c). These sections
reference surface safety valves, actuators, low pressure detection devices
and other surface related components. Subsurface safety valves are
mentioned in section (d) yet not specifically referenced as being included
as part of the entire safety valve system. Therefore it appears one could
interpret that subsurface safety valves are not included in the definition of a
"safety valve system ". This could possibly impact the applicability of
section (c)(8) which provide a one year period after December 3, 2010 to
gain Commission approval to operate components of a safety valve system
that do not meet the requirements of section (c) items 1 -7. This section
applies to surface safety equipment only. It could also possibly impact the
calculation of SVS test results depending upon if the SSSV is included in
the calculation. A clear definition of a "safety valve system" would avoid
potential confusion.
Thank you for the opportunity to provide comments.
Page 5 of 5
•
SVS Testimony
My name is MJ Loveland. I'm currently a Well Integrity Project
Supervisor for ConocoPhillips Alaska. I have a Bachelor of Science
degree in Petroleum Engineering from the University of Wyoming. I
have 21 years of industry experience and have been working with
safety valve systems and the safety valve regulations since 2003. At
that time I was the Supervisor that gave work direction and training to
the crews that perform the safety valve performance tests. I have
also been an active member on the team working with the AOGCC
on the Safety Valve system regulation update since 2006. My current
role is acting as an advisor and a single point of contact that
addresses questions and projects in regards to Well Integrity issues
including safety valve systems.
Conservation Orders 406B.001 and 432D.009 are on the list to be
rescinded. These CO's allow LPP's to be defeated on West Sak and
Kuparuk Injection wells that have low surface injection pressure, less
than 500 psi and 700 psi respectively, until the injection pressure
reaches or exceeds those injection pressures. ConocoPhillips
understands that an allowance to defeat the LPP is covered under
•
20AAC 25.265.j2 However, J2 also states we must have
authorization from the Commission to not have 24 man watch when
the pilots are defeated. ConocoPhillips suggests leaving these two
orders in p lace as that authorization.
In West Sak operations it is very common for the surface injection
pressure to take several weeks to stabilize above 500 psi after a shut
in event or well work that lasts even as short as 12 hours. Most of the
time it is not known until after the well is brought online that the
pressure will stabilize below 500 psi. Therefore advance notice for
authorization is not practical and a 24 hour man watch is a large
burden for in our opinion a low risk practice. Roughly one well per
month for up to 2 weeks to a month would require a man watch.
There are 4 separate drill sites which could have WS injectors with
injection pressures less than 500 psi at any one time. The injection
pressure can be so low as the wells actually start out on a vacuum for
several days which makes a LPP set point impossible to set or
manage.
Kuparuk injectors have similar issues when injection wells are pre
produced before swapping them to injection.
• •
Rescinding 406B.001 and 432D.009 with out replacing them with
equivalent authorization to defeat LPP's on wells with low surface
injection pressure will hamper our ability to manage the West Sak
flood and to a smaller degree the Kuparuk flood in a cost efficient as
well as ressure efficient manner. Therefore Conoco Phillips request
P p q
406B.001 and 432D.009 be retained or replaced with like
authorization that allows the LPP's to be defeated within pressure
restrictions with out a 24 hour man watch.
41
1
STATE OF ALASKA • PUBLISHER S
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R 333 W 7th Ave, Ste 100 Jody Colombie
0 Anchorage, AK 99501 PHONE PCN
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• •
Y114/2010:
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PRICE OTHER OTHER OTH IE t GRAND
AD # DATE /AQ ACCOUNT PER DAY CHARGES CHARGES #2 CHARGES #3 TOTAL
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$149.40 $0.00 $0.00 80.00 $149A0
Nsdce et Public Hart
SPATE OP 'ALASKA
Alaska OE and Gas Conservation Csnonsbadon
STATE OF ALASKA ▪ Rescinding
Conservation Orders Safety save System Rules in
THIRD JUDICIAL DISTRICT Pursuant to AS 31.05.030(b), the Alaska OH and Gas
Conservation Commission (Commission) wilt
Shane Drew, being rst duly sworn on oath deposes and says that convene a public hearing at 2:00 p.m. on December
g Y P oses Y 6, 2010 to consider rescinds part or all of those
he is an advertising representative of the Anchorage Daily News, rules within existing cal riders relating to
a daily newspaper.
well safety valve systems. See Commission weblike y news p p er. for a complete listing of affected Conservation
That said newspaper has been approved by the Third Judicial • www•aogcc.aiaska.gov.
Court, Anchorage, AIaska, and it now and has been published in The Commission has tentatively sch$duted a public 1
hearing on this matter for Decenter 6, 2010 at 2:00
the English language continually as a daily newspaper in p.m. To request that the hearing be held, a written
Anchorage, Alaska, and it is now and during all said time was request must be filed by 4 :30 p.m. on November 19,
printed in an office maintained at the aforesaid place of d a request is not time tiled, the Commission may
publication of said newspaper. That the annexed is a copy of an consider the issuance an order without a hearing. ,
advertisement as it was published in regular issues (and not in To learn if the Commission will hold a hearing, caii
907 793 - 1221 after November 23, 2010.
supplemental form) of said newspaper on the above dates and
that such newspaper was regularly distributed to its subscribers s • comments Commission, the on, at 333 West Ziu Y submitted to the Commission, at 333 West 7th
during all of said period. That the full amount of the fee charged Avenue, Suite 100, Anchorage, Alaska 99501.
oin publication is not in excess of the rate charged onrDeie December must be received no th than e a r p.m.
for the foregoing g p g on December 6, 2010, except that, if a hearsrrg is
private individuals. Qn ofntts tI breceived no later than dm
hearing.
if, because of a disability, special accommodations
may be needed to comment or attend the hearing,
Gad 907- 793 -1221 by November 29, 2010.
Signed .Ll. t&i 40f411 oasts., t : 3eeniount x.
Chair, Commissioner
Subscribed and sworn to me before this date: AO-02114019
Published: November 4, 2010
NOV 042010
Notary Public in and for the State of Alaska.
Third Division. Anchorage, Alaska
MY COMMISSION EXPIRES:
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RECEIVEiD'
' �OTAI I 4J $ ins & Sat Cans. COMI 3i0IR
Aathorage
;__ �; • ,,
1
• •
Notice of Public Hearing
STATE OF ALASKA
Alaska Oil and Gas Conservation Commission
Re: Rescinding Safety Valve System Rules in Existing Conservation Orders
Pursuant to AS 31.05.030(b), the Alaska Oil and Gas Conservation Commission (Commission)
will convene a public hearing at 2:00 p.m. on December 6, 2010 to consider rescinding part or all
of those rules within existing Conservation Orders relating to well safety valve systems. See
Commission website for a complete listing of affected Conservation Orders.
www.aogcc.alaska. gov.
The Commission has tentatively scheduled a public hearing on this matter for December 6, 2010
at 2:00 p.m. To request that the hearing be held, a written request must be filed by 4:30 p.m. on
November 19, 2010.
If a request is not timely filed, the Commission may consider the issuance of an order without a
hearing. To learn if the Commission will hold a hearing, call 907 - 793 -1221 after November 23,
2010.
Written comments regarding the application may be submitted to the Commission, at 333 West
7th Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30
p.m. on December 6, 2010, except that, if a hearing is held, comments must be received no later
than the conclusion of the hearing.
If, because of a disability, special accommodations may be needed to comment or attend the
hearing, call 907-793-1221 by November 29, 2010.
Daniel T. Seamount, Jr.
Chair, Commissioner
•
STATE OF ALASKA NOTICE TO PUBLISHER
ADVERTISING ORDER NO.
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SEE ,, BOTTOM FtR INVOICE ADDRESS, 0
., a'IiIIIIPM rVN II I
F AOGCC AGENCY CONTACT DATE OF A.O.
R 333 West 7 Avenue. Suite 100 Jody Colombie November 3. 2010
° Anchorage_ AK 99501 PHONE PCN
M (9071 793 -1221
DATES ADVERTISEMENT REQUIRED:
o Anchorage Daily News November 4, 2010
PO Box 149001
Anchorage, AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN
g ITS ENTIRETY ON THE DATES SHOWN.
SPECIAL INSTRUCTIONS:
Account # STOF0330
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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
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Published at in said division and
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appearing on the day of , 2010, 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 2010,
Notary public for state of
My commission expires
Orders Establishing Requirements for Well Safety Valve Systems
AOGCC; 11/2/2010
Unit/Field Pool Conservation Rule Rescind Rule? Existing Order Requirement New Regulation Provisions Revised Rule - Well safety valve systems" (2) Comment
Order 111 Addressing Regts from Order
fall - are auto SSV and SCSSV; injection wells (except disposal) require "Injection web (evck ding disposal injectors) must be equipped wiM(i) a dou ble check valve Check valve requirements f« AE injectors are nBl covered by
Colville River Unit Qannik 605 5 no (i) double check valve, o(11) single check valve and SSV; Injection valve 25. 285 (x);25.265(6);25.265(d)(2)(H): a nrangement or (11) ngle oneckvalve andassv. A SUbaurfaoecontrolled injection valve«
satisfies single check valve requirement; test every 6 months 25.265)h)(5) scssv satisfies the requirements m a single check valve.' reatlopted regulation
fail -safe auto SSV and SCSSV; injection wells (except disposal) require ' Injection wells (excluding disposal injectors) must be equipped wd h() a double check valve
Oooguruk Oooguruk • Nuiqsut 597 6 no (ft double check valve, or (ii) single check valve and SSV; injection valve 25.265(x); 25.2659(6); 25.265(tl)(1); argen,mt or (ii) a single check valve and a SSV. A subsurface-controlled injection valve or cha k regrequirements for injectors are 6d covered subsurface-controlled satisfies single check valve requirement; test every 6 months 25.265(h)(5) scssv satisfies the requirements of a single check valve' aPt 9U
ion
fad -safe auto SSV and SCSSV; injection wells (except disposal) require 'Injection wells (excluding disposal injectors) must be equipped with(I) a double check valve
Oooguruk Oooguruk - Kuparuk 596 6 no (i) double check v a l v e , single check valve and SSV; injection valve 25 .265(x);25.265(6);25.265(9)(1); arrangement or Oft a single check valve and aSSV. A subsurface-controlled injection valve or rhaked rev irements for Injectors are �owered by
satisfies single check valve requirement; test every 6 months 25.265(h)(5) scssv satisfies the requirements or a single check valve.' fpl f rogs
fail-safe auto SSV and SCSSV; maintain list of wells w removed or 25.265(a); 25.265(6); 25.265(tl)(2)(F); Requirement In maintain a wellhead sign and list of wells tom,
Prudhoe Bay Unit Raven 570 5 yes wA le t SVS was with requirement to maintain a tag
deactivated SVS; sign m wellness 25.265(m)
Colville River Unit Fiord 569 5 no () check valve, or () single check valve 565; InjectNm�valve 25.265(a); 25.265(6); 25.265(tl)(2)(H); a rron B M� or (ii) a�sln9le m l valvvo and a ssv. ti unaurtacv lection w Ch7k valve requirements for injectors are not covered by
satisfies single check valve requirement; test every 6 months 25.265(h)(5) sessysadsr time requirements m a single cheek valve." d0 d ` ati0
fail-safe auto SSV an; SCSSV; injection wells (except disposal) require " Inection wells ( exclutling disposal injeclars) must be equipped wnh(i) a double check valve equbemen injectors are yid covered by
25.265(a); 25.265(6); 25.265(d)(2)(H); cneckvalver isnor in
•
Colville River Unit Nanuq - Kuparuk 563 6 no (i) double check valve, or (Ii) single check valve and SSV; injection valve 50600 D ent «(ii) a single check valve antl a SSV. A subsurlace- cmlmlled injection valve a readopted regulation
satisfies single check valve requirement; test every 6 months 25.2650)(5) SCSSV satisfies the requirements of a single check valve"
•
•
fail -safe auto SSV and SCSSV; injection wells (except disposal) require ' Injection wells (excluding disposal injectors) must be equipped wthn) a double check valve
25.265(x); 25.265(6); 25.2650)(2)(H); a Check valve requirements for injectors are rwt covered by
Colville River Unit Nanuq 562 6 no () double check valve, w (ii) single check valve and SSV; injection valve 25 h nangement w (ii) a single check valve and SSV. A subsurface-controlled injection valve « readopted regulator
satisfies single check valve requirement; test every 6 months ()( ) SCSSV satisfies the requirements of a single a check valve."
Prudhoe Ba Unit Put River 559 3 es fat-safe auto SSV; SSSV landing nipple belay permafrosC test as 25.265(a); 25.265(b); 25.265(d); Readopted 25.265(d) dictates which wells require sssv;
Y y prescribed by Commission 25.265(h)(5) WA replaces SSSV nipple requirement for all wells
Deep Creek Unit Happy Valley 553 3 yes SSV or SSSV 25.265(2) N/A
Prudhoe Ba Unit Orion 5058 3 es fail -safe auto SSV; SSSV landing nipple below permafros test as 25.265(2); 25.265(b); 25.265(d); Readopted 25.265(9) dictates which wells require 0555;
Y Y prescribed by Commission 25.265(11)(5) WA replaces SSSV nipple requirement for all wells
Prudhoe Ba Unit Polaris 484A 3 yes fan -axle auto SSV; SSSV landing nipple below permafrost; test as 25.265(a); 25.265(b); 25.265(d); Readopted 25.265(d) dictates which wells require sssv;
Y Y prescribed by commission 25.265(h)(5) WA replaces SSSV nipple requirement for all wens
fail-safe auto SSV; SSSV larding nipple below permafrost; gas/M1 pre, requirement
Milne Point Unit Milne Point • 477 5 no injection well require SSSV or injection valve below permafrost; test every 25.265(a); 25.265(b); 25.265(d); "A SCSSV w su�urtececontrolle9 injection valve capable m preventing beckflow to the surface Readopted 25.285(9)(5) does LxA Include SSSV r octet r«
Schrader Bluff 6 months 25.265(h)(5) must be installed at a depth below the permafrost on miscible injection wells Mien In service." MI injectors
Prudhoe Bay Unit Borealis 471 3 no fail -safe auto SSV; SSSV landing nipple below permafrost; 900/MI 25.265(a); 25.265(b); 25.265(d); "A SCSSV or subsurface-controlled injection valve capable of preventing backnow to the surface Readopted 25265(91(5) does N4 include SSSV regt for MI
injection well require 565 below permafrost; test every 6 months 25.265(5)(5) must be installed at a depth below the permafrost on miscible injection Mods when in svelte" injectors
Northstar Northstar 458A 4 no fail -safe auto SSV and SCSSV; test as prescribed by Commission; 500- 25 25.265(b); 25.265(d)(1) "The minimum setting depth far a tubing conveyed 0uteurface safety valve is 500 feet" Elating pod rule established a minimum sexing depth f« Me
ft minimum setting depth 1« SSSV SSSV
fail -safe auto SSV; SSSV landing nipple below permafrost; test every 6 25.265(a); 25.265(b); 25.265(d); Readopted 25.265(d) dictates which wells require SSSV;
Prudhoe Bay Unit Aurora 4578 3 yes months 25.265(h)(5) N/A replaces SSSV nipple requirement for all wells
fail-safe auto SSV; gas/N11 Injectors require 665 and single check valve "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve Check valve requirements f« injectors are nut covered by
Kuparuk River Unit Meltwater 456A 5 no and SSSV landing nipple; water injection wells r a check 25.265(a); 25.265(6); 25.285(9); a (ii) valve subsurface-controlled injection valve « readopted
valve, or (ii) single check valve a V; test every 6 months 25.265(h)(5) SCSSV satisfies the of single check vane. readopted for M injectors
ec d)(5) does �t include
ran -safe auto SSV (ad injectors and produces capable of unassisted 25.265(a); 25.265(b); 25.265(4); Readapted 25.265(d) dictates which wens require SSSV;
Prudhoe Bay Unit Midnight Sun 452 6 y flow surface); test every s months 25.265(h)(5) N/A replaces SSSV nipple requirement for all wells
fall -safe auto SSV and SCSSV; SSSV may be installed above or below "The setting depth of a required subsurface safety valve must be located In the tubing either Existing pod rule established alternate 550V setting depth;
Duck Island Unit Eider 449 7 no permafrost; injection weds require double check valve, LPs trip pressure; 25.265(a); 25.265(6); 25.285(9)(1); above or below permafrost. Injection wens must be equipped with a double check valve check valve requirements for injectors are not covered by
test every 6 months 25.265(h)(5) arrangement." readopted regulation
lai1sa(e auto SSV and SCSSV (producers and gas injectors); water 'injection wells (excluding disposal injectors) must be equipped with() a double check valve Check valve requirements for injectors are not covered by
• Colville River Unit Alpine 443B 5 no injection wells require (i) double check valve, Of (1i) single check valve 25.265(2); 25.265)b); 25.265(d)(2)(H) arrangement or (ii) a single check valve and a SSV. A subsurface-controlled injection valve Of readopted regulation
and 5511 SCSSV satisfies the requirements of a single check valve."
fan -safe auto SSV; gas/MI injectors require SSV and single check valve "Injection wells (excluding disposal injectors) must be equipped with() a double check valve Check valve requirements f« Injectors are IL covered by
ng nipp injection squire () 2$265(x); 25 25.26$(4); heck valve and a 5511. A subsurrace-ccontrolled i valve or readopted r Nation; readopted 25.265(9)(5) does iwt include
Kuparuk River Unit Tabasco 435A 6 no and SSSV landi le; water in tion wellsr 1 double check arrangement or(ii)a single check injection erg
valve, or (ii) single check valve and SSV; test every 6 months 25.265(h)(5) SCSSV satisfies the requirements of a single check valve" SSSV requirement for MI injectors
fail -safe auto SSV (5 /D well and artificial lift); sign on well if SVS Requirement to maintain a wellhead sign and list of wells with
Kuparuk River Unit; Kuparuk 432D 5 yes deactivated; maintain list of wens wmeactieated SVS; test as prescribed 25.2fi5(a); 25.265(6); 25.265(h)(5); N/A deactivated SVS was replaced with requirement to maintain atag
Milne Point Unit . Commission 25265(m) on well when not manned
fail -safe auto SSV; gas/MI injectors require SSV and single check valve "Injection wells (excluding disposal injectors) must be equipped with(1) a double check valve Check valve requirements for injectors are rid covered by
h 265 25.265(a); 25.285(6); 25.265(9);
Kuparuk River Unit Tam 430A 6 no and SSSV landing arrangement w heck valve and a SSV. A subsurface-controlled injection readopted r lation, readopted 25 d .260 s Ixt include
ng nipple; wafer injection w ells require (1) double check . ranger (ii) a single c lec ion va ve or egu pt ()( ) does
valve, or (ii) single check valve and SSV; test every 6 months 25 ()( ) SCSSV satisfies the requirements of a single check valve" SSSV requirement for MI injectors
Milne Point - Sag fail -safe auto 65V; injection wells requke double check valve; test every Check valve requirements for injectors are nut covered by
Milne Point Unit 423 7 no 6 months 25.265(a); 25.265(6); 25 "Injection wells must be equipped with a double check valve arrangement."
River readopted regulation
Check valve requirements for injectors are nd covered by
fail-safe auto SSV; gas/MI injectors require SSV and single check valve
and SSSV landing nipple; water injection wells require (1) double check "Injection wells (excluding disposal injectors) must be equipped with() a double check valve readopted regulation; readapted 25.265(9)(5) does nd include
valve, or (ii) Stigler check valve and SSV; test every 6 months; CO 25.265(a); 25.265(5); 25.265(d); arrangement or (ii) a single check valve and a SSV. A subsurface-controlled injection valve w SSSV requirement for MI injectors; CO 4066.001 is rescinded,
Kuparuk River Unit Kuparuk - West Sak 406B 6 no 4066.001 modifies Rule 6(e) - LPP may be defeated on W. Sale injectors 25.265(h)(5) SCSSV satisfies the requirements of a single check valve. The Low Pressure Pilot may be replaced by language about defeating the LPS when surface
w /surface 500 / notice when defeated and laced back in defeated on West Sak water injectors with surface Mjecti00 less than 500 injection pressure (« West Sak water injector is 2 'notice
pressure < psi w p j ) pressure Psi" requirements are covered by readopted 20 AAC 25.265()(2) and
service 25265(m))
fan -sale auto SSV and SCSSV; LPS trip pressure; readily accessible
Badami Badami 402B 6 yes control unit; 5550 below permafrost; NTE 210days between tests; 25.265(a); 25.265(6); 25.265(11); N/A
submit test reruns electronically within 14days; SVS defeated/removed 25.265(m)
only if well SI or pad continuously manned
Page 1 of 2
Orders Establishing Requirements for Well Safety Valve Systems
AOGCC; 11/2/2010
Conservation New Regulation Provisions s Comment
Unit/Field Pool Rule Rescind Rule? Existing Order Requirement Revised Rule - "Well safety valve systems'' ( 2 1
Order (11 Addressing Refits from Order
fail -sate auto SSV (S/D well and artificial lilt); sign on well if sys 25.285(a); 25.265(5); 25 Requirement to maintain a wellhead sign and list of wells with
Prudhoe Bay Unit North Prudhoe 345 4 yes deactvated; maintain list of wells w /deactivated sys; lest as prescribed (5)(5); NIA deactivated SVS was raced with requirement to maintain a tag
by commission 25.265(m) on well when not manned
fail-safe auto SSV (S/D well and artificial In); if SSSV installed a must be
maintained and tested as part of SVS; sign on urea if SVS deactivated; 25.285(8); 25.265(5); 25.265(d); NIA Readopted 25.265(d) dictates which webs require SSSV;
Prudhoe Bay Unit Prudhoe 341E 5 yes maintain list of wells wldeactiveted sys; test as prescribed by 25.265(h)(5) replaces SSSV nipple requirement for all wells
Commission
fa0.eafe auto SSV and sCSsV; maintain list of wells wI removed or 25.265(8); 25.265(5); 25.265(d); Readopted 25.265(d) dictates which weds require SSSV;
N/A
Bay Unit Niakuk 329A 5 yes deactivated SVS; sign on wellhead 25.265(h)(5); 25.265(m) replaces SSSV nipple requirement for all wells
ail-safe auto SSV and SCSsV; SSSV may be rermoved as pad of 25.265(a); 25.265(5); 25.265(4); Readopted 25.265(d) dictates which wells require SSSV;
Prudhoe Bay Unit Pt. McIntyre 3178 8 y routine well opts wre notice 25.285(1); 25.265(m) N/A replaces SSSV nipple requirement for all wells
fall-safe auto SSV; sign on well if SVS deactivated; maintain list of wells 25.265(8); 25.265(5); 25.265(d); Readopted 25.265(d) dictates which wells require 5000;
Prudhoe Bay Unit West Beach 311B 8 y wmeectivated SVS; test as prescribed by Commission 25.285(5)(5); 25.265(m) N/A replaces SSSV nipple requirement for all wells
West Folk West Fork (Sterling 300 5 yes fail auto 5V5 on each production tubing 25.265(a); 25.265(5) NIA
A&B)
Requirement to maintain a wellhead sign and fist of wells with
Prudhoe Bay Unit Lisburne 207A 7 yes fail -safe auto SSV; sign on well a SVS deactivated; maintain asl or was 25.265(0); 25.265(5); 25.265(h)(5); N/A deactivated SVS was replaces with requirement a maintain a tog
w /deacbvated SVS; test as prescribed by commission 25.265(m) on well when not manned
• Prudhoe Bay Unit Prudhoe - Kuparuk 98A 5 yes prwa uncontrolled valve installed below base or permafrost to 25.265(d) NIA Readopted 25.26 dictates which wens require sssv;
spaces SSSV nipple requirement for all wells
Commission policy dictating SVS performance testing AOGCC Policy - SVS (signed by by order of the
Statewide N/A N/A N/A yes p y g 25.265(h); 25.265(1); 25.265(o) N/A commission 3/30/1994 (sgned by commission chairman Dave
requirements Johnson)
Footnotes
(1) No SVS notes found in Injection Orders
(2) New title for Revised Rule; "N /A" means entire pool rule to be rescinded
•
Page 2 of 2
•
Mary Jones David McCaleb
XTO Energy, Inc. IHS Energy Group George Vaught, Jr.
Cartography GEPS P.O. Box 13557
810 Houston Street, Ste 200 5333 Westheimer, Suite 100 Denver, CO 80201 -3557
Ft. Worth, TX 76102 -6298 Houston, TX 77056
Jerry Hodgden Richard Neahring Mark Wedman
Hodgden Oil Company NRG Associates Halliburton
President
408 18 Street 6900 Arctic Blvd.
Golden, CO 80401 -2433 P.O. Box 1655 Anchorage, AK 99502
Colorado Springs, CO 80901
Schlumberger CIRI
Baker Tools
Drilling and Measurements Land Department 795 E. Oil . 94 h Ct.
2525 Gambell St, #400 P.O. Box 93330
Anchorage, E
Anchorage, AK 99503 Anchorage, AK 99503 Anchorage, AK 99515 -4295
Jill Schneider
North Slope Borough Gordon Severson
US Geological Survey
P.O. Box 69 3201 Westmar Circle
Barrow, AK 99723 4200 University Drive Anchorage, AK 99508 -4336
Anchorage, AK 99508
Jack Hakkila Darwin Waldsmith James Gibbs
P.O. Box 190083 P.O. Box 39309 P.O. Box 1597
Anchorage, AK 99519 Ninilchick, AK 99639 Soldotna, AK 99669
Kenai National Wildlife Refuge
Penny Vadla Cliff Burglin
Refuge Manager 399 West Riverview Avenue 319 Charles Street
P.O. Box 2139 Soldotna, AK 99669 -7714 Fairbanks, AK 99701
Soldotna, AK 99669 -2139
Richard Wagner Bernie Karl
P.O. Box 60868 K &K Recycling Inc.
Fairbanks, AK 99706 P.O. Box 58055
Fairbanks, AK 99711
\.\\ .,,,,.\.' ,,,,,71
• •
Colombie, Jody J (DOA)
From: Colombie, Jody J (DOA)
Sent: Wednesday, November 03, 2010 1:43 PM
To: Ballantine, Tab A (LAW); 'Aaron Gluzman'; Bettis, Patricia K (DNR); caunderwood @marathonoil.com;
'Dale Hoffman'; David Lenig; 'Gary Orr; 'Jason Bergerson'; 'Joe Longo'; Marc Kuck; 'Mary Aschoff;
'Matt Gill'; Maurizio Grandi; Ostrovsky, Larry Z (DNR); Richard Garrard; 'Sandra Lemke'; Talib Syed;
'Tiffany Stebbins'; 'Wayne Wooster; 'William Van Dyke'; Woolf, Wendy C (DNR); (foms2
@mtaonline.net); ( michael .j.nelson @conocophillips.com); ( Von. L.Hutchins @conocophillips.com);
Alan Dennis; alaska @petrocalc.com; Anna Raff; Barbara F Fullmer; bbritch; Becky Bohrer; Bill
Penrose; Bill Walker; Bowen Roberts; Brad McKim; Brady, Jerry L; Brandon Gagnon; Brandow, Cande
(ASRC Energy Services); Brian Gillespie; Brian Havelock; Bruce Webb; carol smyth; Chris Gay; Cliff
Posey; Crandall, Krissell; dapa; Daryl J. Kleppin; Dave Matthews; David Boelens; David House; David
Steingreaber; 'ddonkel @cfl.rr.com'; Deborah J. Jones; Delbridge, Rena E (LAA); 'Dennis Steffy';
Elowe, Kristin; eyancy; Francis S. Sommer; Fred Steece; Garland Robinson; Gary Laughlin; Gary
Rogers; Gary Schultz; ghammons; Gordon Pospisil; Gorney, David L.; 'Greg Duggin'; Gregg Nady;
gspfoff; Harry Engel; Jdarlington (jarlington @gmail.com); 'Jeanne McPherren'; Jeff Jones; Jeffery B.
Jones (jeff.jones @alaska.gov); Jerry McCutcheon; Jill Womack; 'Jim White'; 'Jim Winegarner; 'Joe
Nicks'; 'John Garing'; 'John Katz'; 'John S. Haworth'; 'John Spain'; 'John Tower; 'Jon Goltz'; 'Judy
Stanek'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; 'Kim Cunningham'; 'Larry
Ostrovsky'; 'Laura Silliphant'; 'Marilyn Crockett'; 'Mark Dalton'; 'Mark Hanley
(mark.hanley @anadarko.com)'; 'Mark Kovac'; 'Mark P. Worcester; 'Marguerite kremer; 'Michael
Dammeyer; 'Michael Jacobs'; 'Mike Bill'; 'Mike Mason'; 'Mike) Schultz'; 'Mindy Lewis'; 'MJ Loveland';
'mjnelson'; 'mkm7200'; 'nelson'; 'Nick W. Glover; 'NSK Problem Well Supv'; 'Patty Alfaro'; 'Paul
Decker (paul.decker @alaska.gov)'; 'Paul Figel'; 'PORHOLA, STAN T'; 'Randall Kanady'; 'Randy L.
Skillern'; ' rob.g.dragnich @exxonmobil.com'; 'Robert Brelsford'; 'Robert Campbell'; 'Rudy Brueggeman';
'Ryan Tunseth'; 'Scott Cranswick'; 'Scott Griffith'; Scott, David (LAA); 'Shannon Donnelly'; 'Sharmaine
Copeland'; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); 'Sondra Stewman'; 'Steve
Lambet; 'Steve Moothart'; 'Steven R. Rossberg'; 'Suzanne Gibson'; 'tablerk'; Tamera Sheffield;
Taylor, Cammy 0 (DNR); Temple Davidson; Teresa Imm; Terrie Hubble; Thor Cutler; Tina Grovier;
Todd Durkee; Tony Hopfinger; trmjrl; Vicki Irwin; Walter Featherly; Will Chinn; Williamson, Mary J
(DNR); Yereth Rosen; Aubert, Winton G (DOA); Brooks, Phoebe; Davies, Stephen F (DOA); Fisher,
Samantha J (DOA); Foerster, Catherine P (DOA); Johnson, Elaine M (DOA); Laasch, Linda K (DOA);
Maunder, Thomas E (DOA); McIver, Bren (DOA); McMains, Stephen E (DOA); Norman, John K
(DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James
B (DOA); Roby, David S (DOA); Saltmarsh, Arthur C (DOA); Scheve, Charles M (DOA); Schwartz,
Guy L (DOA); Seamount, Dan T (DOA); Shartzer, Christine R (DOA)
Subject: Public Notice SVS Rules.pdf - Adobe Acrobat Professional
Attachments: Public Notice SVS Rules.pdf
1