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Home My WebLink About209-035 • • Image Project Well History File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. i co./ _ 0 3.5 Well History File Identifier Organizing (done) Ili Two - sided III 11 lIlH IIII ❑ Rescan Needed I (I11111 11 1119 g g RE C AN DIGITAL DATA OVERSIZED (Scannable) C for Items: ❑ Diskettes, No. ❑ Maps: Greyscale Items: ❑ Other, No/Type: ❑ Other Items Scannable by a Large Scanner ❑ Poor Quality Originals: OVERSIZED (Non - Scannable) Other: ❑ Logs of various kinds: NOTES: e ❑ Other:: BY: �. ., - f " ca Date: �lO i /s' Project Proofing illiiiiitlitill 1 ! BY: __ Date: 4./16143 /s/ yr f Scanning Preparation o` x 30 = (00 + c2 L4. = TOTAL PAGES ig Lf. (Count does not include cover sheet) vii BY: Maria Date: a r,, I3 /s/ Production Scanning IlIlE1IIIlllhIIII Stage 1 Page Count from Scanned File: ' (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: YES NO BY: Date: a /3 /s/ 1/14f) Stage 1 If NO in stage 1, page(s) discrepancies were ound: YES NO BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. I ReScanned 111111111111 BY: Maria Date: /s/ Comments about this file: Quality Checked 1311111111111 12/22/2011 Well History File Cover Page.doc ■ DATA SUBMITTAL COMPLIANCE REPORT 2/21/2013 Permit to Drill 2090350 Well Name /No. WAINWRIGHT 10 Operator U S DEPT OF INTERIOR API No. 50- 301 - 20012 -00 -00 MD 1360 TVD 1360 Completion Date 7/4/2009 Completion Status P &A Current Status P &A UIC N REQUIRED INFORMATION Mud Log Yes Samples No Directional Survey No DATA INFORMATION Types Electric or Other Logs Run: (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr Data Digital Dataset Log Log Run Interval OH / 110 Type Med /Frmt Number Name Scale Media No Start Stop CH Received Comments ED Las 1 19047 Induction /Resistivity 0 1359 Open 11/19/2009 Electronic Transfer ED C 19313 See Notes 0 0 P &A Form, Timeline, Combo, Induction, Completion Diagram Log Induction /Resistivity OTH Col 0 1340 Open RES, GR Log Induction /Resistivity OTH Col 0 1340 Open RES, GR, Cali Well Cores /Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments k, i % 3- 43 Nisi : U 4- R 11�� ao 9 h Cores and /or Samples are required to be ` submitted. This record automatically created from Permit to Drill Module on: 6/9/2009. ADDITIONAL INFORMATION �` �.� �/ N Well Cored? N �� c • rZ ', Daily History Received? ill Chips Received? Y /bl .�,,A, \ ` 1 c y Formation Tops 8/ N Analysis Y Received? Comments: PI e. 1 ill r i-v.Zraip.off Sul -1-t+ 'Re ■■ (sb r ( :„„& o, s,,,,, Rv r41. blot 5•..L, ffJ K, t l/S /A 9 Compliance Reviewed By: 4--1/4• Date: E FULL PetI1 FREL SUSI' '' omme , w 50scriptfon5 Publications http://www.petroleumnews.com/pnads/891782894.shtml Vol. 16, No. 13 Week of March 27, 2011 Providing coverage of Alaska and northern Canada's oil and gas industry BLM admits to drilling safety lapse Federal agency concedes diverter wasn't used on well drilled near Alaska village of Wainwright; AOGC tto OG continue probe 3 0'1 _ �o Wesley Loy ' cy1 For Petroleum News —Q7\ The Bureau of Land Management has admitted responsibility for a failure to use a safety device called a diverter on a federal drilling project near the northwestern Alaska village of Wainwright. 4.-\ Ca But the BLM also seemed to steer accountability for the lapse toward its designated operator on the project, the U.S. Geological Survey. — Q Y The BLM stated its position in a March 15 letter to the Alaska Oil and Gas DOS S Conservation Commission, which had been pushing the agency for months to show proof it had used the required diverter on the seven wells at issue. "BLM understands it is responsible for the actions of its operator," said the letter signed by Julia Dougan, the BLM's associate state director for Alaska. "BLM has no immediate plans for additional drilling but can assure the Commission if future drilling should be permitted, operations will be carried out in full compliance with state regulations." How conflict unfolded 10 • The letter is the latest twist in a long - running conflict between the BLM and the AOGCC. The Wainwright project, which began in 2007, was a joint effort involving the BLM, the USGS, the North Slope Borough and Arctic Slope Regional Corp. The goal was to test a local coalbed as a potential source of natural gas to meet energy needs in the remote village of about 550 people on the Chukchi Sea coast. The AOGCC has authority to regulate drilling statewide, whether on federal, state or private land. On June 22, 2010, the AOGCC hit the BLM with a "notice of violation" for possibly drilling wells without the required safety equipment. A diverter, which sits atop the well, is designed to direct any unexpected release of dangerous hydrocarbons safely away from the rig work area. Like blowout preventers, diverters are a last line of defense for drillers. The two agencies swapped letters over several months, with the AOGCC contending it was not seeing the verification it wanted on whether a diverter was used on the exploratory wells. On Dec. 9, the AOGCC threatened the BLM with a public hearing to get answers. Ultimately, Pat Pourchot, the U.S. Interior secretary's special assistant for Alaska affairs, was brought into the discussion. In its March 15 letter, the BLM said it was the applicant for the state permit to drill one of the wells, Wainwright No. 2, but that it had designated the USGS as operator. "Our documentation confirms no diverter was used on the Wainwright well #2," the letter said. But the BLM said the USGS was both the applicant and operator for the other wells, Wainwright Nos. 3, 4, 5, 6, 9 and 10, and it directed the AOGCC to send any correspondence about those wells to a USGS official. Investigation to continue Cathy Foerster, one of the three AOGCC commissioners, told Petroleum News the Alaska Department of Law had advised the agency it probably doesn't have the power to fine the BLM for failure to use a diverter on Wainwright No. 2. But Foerster said the BLM letter is significant, an indication "that the federal 1 government is perfectly capable of self - correcting." The AOGCC now plans to make inquiries to the USGS regarding whether the safety gear was used on the other Wainwright wells. Foerster said the state's objective is plain. "When the federal government comes into our state to operate, we want their assurance that they will abide by our laws like any other operator," she said. The Wainwright matter isn't the only source of friction between the AOGCC and the BLM. The commission has pointedly questioned the federal agency's attention to dozens of derelict "legacy wells" located chiefly in the National Petroleum Reserve - Alaska. 0 USGS - BLM Wells • Missing Required Information Well Name Permit to Drill Number Missing Information Prior Requests DOI -04 -1A (Ft. Yukon) 2040830 Core analysis Requested 11/5/2009 2040830 Core chips Requested 11/5/2009 2040830 Cuttings samples Requested 11/5/2009 2040830 Mud log Requested 11/5/2009 2040830 Open hole logs - Paper Print Requested 11/5/2009 2040830 Open hole logs - Reproducible Requested 11/5/2009 Franklin Bluffs 1 2051050 As built survey plat Requested 11/5/2009 2051050 Core description and analysis Requested 11/5/2009 2051050 Mud log Requested 11/5/2009 2051050 Open hole logs - Digital Requested 11/5/2009 2051050 Open hole logs - Paper Print Requested 11/5/2009 2051050 Open hole logs - Reproducible Requested 11/5/2009 Wainwright 01 2070650 Core analysis Requested 11/5/2009 2070650 Core chips Requested 11/5/2009 2070650 Location information (coordinates as metes & bounds, Required on Completion Report form coordinates in AK State Plane NAD 27) 2070650 Location information (lat /long datum) Wainwright 02 2071060 Cuttings samples Requested 11/5/2009 2071060 Inclination survey Requested 11/5/2009 2071060 Lithology log Requested 11/5/2009 2071060 Location information (coordinates as metes & bounds, Required on Completion Report form coordinates in AK State Plane NAD 27) 2071060 Location information (lat /long datum) Wainwright 09 2080770 Core chips Requested 11/5/2009 2080770 Core description and analysis Requested 11/5/2009 2080770 Lithology log - Paper Print Requested 11/5/2009 2080770 Location information (lat /long datum) Wainwright 10 2090350 Core chips Requested 11/5/2009 "....----- 2090350 Core description and analysis Requested 11/5/2009 2090350 Cuttings samples Required on Completion Report form 2090350 Inclination survey Requested 11/5/2009 2090350 Location information (coordinates as metes & bounds, Required on Completion Report form coordinates in AK State Plane NAD 27) 2090350 Location information (lat /long datum) 2090350 Mud log (required by permit to drill; drilling history states "will Requested 11/5/2009 not collect mud -gas log at this site. ") Wainwright 03 2080710 In compliance Wainwright 04 2080720 In compliance Wainwright 05 2080730 In compliance Wainwright 06 2080740 In compliance Wainwright 07 2080750 Expired permit: never drilled Wainwright 08 2080760 In compliance Wainwright 11 2090360 Cancelled permti: never drilled AOGCC February 17, 2011 w. • Alaska regulators continue pressing BLM Lack of clarity on whether Wainwright gas wells had proper blowout prevention equipment could lead to public hearing, AOGCC warns Wesley Loy For Petroleum News \I' \‘, , _�.w , �. For months now, Alaska drilling regulators have been asking federal officials to prove they used the required blowout prevention equipment on a series of test wells near the remote village of Wainwright. Thus far the issue remains unresolved — and it might be intensifying. The latest twist: Commissioners with the Alaska Oil and Gas Conservation Commission are threatening to hold a public inquiry in the conflict with the U.S. Bureau • Management. 0S_,0-S "In an effort to maintain a constructive relationship between State an• ee era regulatory bodies, the AOGCC is extending the Bureau of Land Management one final opportunity to demonstrate that BLM's Wainwright wells number 2, 3, 4, 5, 6, 9 and 10 were drilled with appropriate blowout prevention equipment," said a Dec. 9 letter to BLM officials in Anchorage. "To date BLM has declined to provide the requested information. This correspondence marks AOGCC's final request prior to proceeding to convene a public hearing on the matter." The letter was copied to Alaska's congressional delegation, Gov. Sean Parnell and the U.S. Environmental Protection Agency. How it started Since the summer, the AOGCC has been trying to verify whether the BLM and its partners used a safety device known as a diverter on wells drilled to test for coalbed gas near the northwest Alaska village of Wainwright. The drilling project is a joint effort involving the BLM, the U.S. Geological Survey, the North Slope Borough and Arctic Slope Regional Corp. The Wainwright issue broke open on June 22 when the AOGCC hit the BLM with a "notice of violation," saying the federal agency appeared to be in violation of state regulations in drilling the wells without the required safety equipment, and improperly securing suspended wells. • In response to letters from the AOGCC, officials with the BLM have attempted to supply proof that the diverter was used on at least some wells. On Nov. 16, the BLM supplied the AOGCC with drill site photos as evidence of the use of the diverter during the Wainwright project's 2007 and 2008 drilling seasons. "I hope this information is helpful and provides the clarification you are seeking," wrote Julia Dougan, the BLM's acting state director. Unsatisfactory response Commission Chairman Dan Seamount, in the AOGCC's Dec. 9 letter back to Dougan, said the photos were insufficient, as they were taken at Wainwright wells 1 and 8. Seamount wrote: "Neither of these wells was included in the AOGCC's notice of violation; the wells for which AOGCC requested documentation of diverter usage were the Wainwright No. 2, 3, 4, 5, 6, 9 and 10 wells." Seamount set a deadline of Jan. 31 for the BLM to show its wells were drilled with the proper blowout prevention gear. The AOGCC has authority to regulate drilling statewide, whether on federal, state or private land. Its relations with the BLM have been tenuous for some time, with the commission questioning the federal agency's handling not only of the Wainwright wells but also dozens of old "legacy wells" on Alaska's North Slope. 1 Colombie, Jody J (DOA) From: Seamount, Dan T (DOA) Sent: Tuesday, November 10, 2009 10:21 AM To: Colombie, Jody J (DOA) Subject: FW: Wainwright Please put in files Original Message From: Greg_Noble @blm.gov [mailto:Greg_Noble @blm.gov] Sent: Monday, November 09, 2009 10:01 AM To: Seamount, Dan T (DOA) Subject: Wainwright Dan, Called and left message for you with your staff assistant. I would like to speak with you. I am not pleased with your letter of support. Please call me. Greg J Noble Energy Section Chief (907) 267 -1429 "Seamount, Dan T (DOA)" <dan.seamount @ala To ska.gov> Greg Noble(ak.blm.gov cc 11/06/2009 11:40 AM Subject FW: Greg, Here are your courtesy first to see copies. dan From: Colombie, Jody J (DOA) Sent: Friday, November 06, 2009 11:39 AM To: Seamount, Dan T (DOA) Subject: • Jody J. Colombie Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 (907)793 -1221 (phone) (907)276 -7542 (fax) [attachment "BLM Wainwright 11- 6- 09.pdf" deleted by Greg Noble /CTF /AK /BLM /D0I] [attachment "USGS Wainwright 11- 5- 09.pdf" deleted by Greg Noble /CTF /AK /BLM /DOI] 2 • • . 03 5 l c = r P X 1 ` k 4 • b �. f C i L C P : I E j . —' f C 1' r " w { i c ;` " C: 2n\. \, \ ' c a �, s t, F F f a} _` �� SEAN PARNELL, GOVERNOR ALASKA. 0114 AND &A.S d 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 September 9, 2009 Art Clark, Supervisory Physical Scientist Gary Reimer, District Manager USGS CR RM WRD USGS, Anchorage District Office Box 25046, Denver Federal Center Mail Stop 939 4700 BLM Road Denver, CO 80225 -0046 Anchorage, AK 99507 Dear Mr. Messrs: The U.S. Geological Survey (USGS) has again failed to meet the Alaska Oil and Gas Conservation Commission's (Commission) regulatory requirements for exploratory coal bed methane wells drilled near Wainwright, Alaska. During the current drilling season, the USGS failed to file Sundry permit applications — required by 20 AAC 20.015, 20 AAC 25.280 and 20 AAC 25.110 — for the following operations: 1. repairing of monitor well Wainwright 6, 2. plugging and abandoning of well Wainwright 9, and 3. plugging and abandoning of well Wainwright 10. The USGS also failed to file, in a timely manner, weekly operations summaries for the current Wainwright exploratory drilling program. These summaries are authorized under 20 AAC 25.300. Alaska Statute 31.05.027 and Regulation 20 AAC 25.515 require Federal agencies to conform to the Commission's permitting and reporting requirements. Without permit applications in advance of well operations, it is not possible for the Commission to review proposed operations to ensure that they meet Alaska's statutory requirements to prevent waste, protect correlative rights, and improve ultimate recovery while protecting underground freshwater, health, safety and the environment. Without weekly operations summaries, the Commission cannot, in a timely manner, review actual well operations to ensure conformance with our requirements. The current failures reflect a continuing pattern of poor compliance by the USGS and the Bureau of Land Management (BLM) over the past five years. On May 23, 2008, the Commission issued Conservation Order No. 600 (CO 600), which found that the BLM had drilled the Wainwright No. 2 exploratory coal bed methane well before the Commission received or approved a Permit to Drill application for the well. This inaction drew the BLM and the USGS, the operator for the well, a rebuke from the Commission. CO 600 also concluded that the BLM and the USGS had not submitted all information required for the Wainwright No. 1 and No. 2 exploratory wells. CO 600 ordered BLM and the USGS to submit, by June 23, 2008, the reports and information required by 20 AAC 25.070 and 20 AAC 25.071. Attachment 1 presents the continued reporting deficiencies for Wainwright No. 1 and Wainwright No. 2 along with reporting deficiencies for the Franklin Bluffs No. 1 and DOI -04 No. lA exploratory wells that were drilled about five years ago. • • U.S. Geological Survey September 9, 2009 Page 2 of 3 If the USGS and BLM continue to fail to meet Alaska's statutory and regulatory requirements, the Commission will issue notice and convene a public hearing to address these matters further. Daniel T. Seamount, Jr. Chair Leslie Holland - Bartels, Regional Executive - Alaska Area USGS WR AA DO 4210 University Drive Anchorage, AK 99508 -4626 Anne Kinsinger, Western Regional Director USGS WR -- DO 909 1st Avenue, Suite 704, 7th Floor Seattle, WA 98104 -1055 Peter Lyttle, Acting Associate Director for Geology USGS HQ -- GD 12201 Sunrise Valley Drive, Mail Stop 911 Reston, VA 20192 -0002 Thomas P. Lonnie, State Director Bureau of Land Management Alaska State Office 222 W 7th Avenue 1413 Anchorage, Alaska 99513 Public Room: 907 - 271 -5960 Bob Abbey, Director BLM Washington Office 1849 C Street NW, Rm. 5665 Washington DC 20240 • • U.S. Geological Survey September 9, 2009 Page 3 of 3 Attachment 1 Continued Reporting Deficiencies for BLM and USGS Wells Wainwright 1 No hardcopies of open hole logs were submitted (PTD 207 -065) No core chip samples submitted No core description submitted No core analysis submitted No header information on the .pdf digital graphics files submitted on dataset number T14024. Wainwright 2 No washed and dried samples submitted (PTD 207 -106) No lithology / sample log submitted (hard copy nor digital) No core chips submitted No core description submitted No core analysis submitted No header information on the .pdf digital graphics files submitted on dataset number T14024 No directional survey submitted (hardcopy nor digital) Franklin Bluffs 1 No mud logs submitted (hardcopy nor digital data) (PTD 205 -105) No dry samples submitted No as -built submitted Core cut and was apparently directly sent to Alaska Geological Materials Center No core analysis submitted No core description submitted No open hole logs submitted (hardcopy nor digital) DOI -04 lA No mud logs submitted (hardcopy nor digital data) (PTD 204 -083) No dry samples submitted No open hole logs submitted (hardcopy nor digital data) No core chip samples submitted No core analysis submitted No core description submitted Density and porosity data missing from submitted digital data. (407 states that those types of logs were run.) ' ~ 0 STATE OF ALASKA 0 ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG la. Well Status: Oil ❑ Gas ❑ SPLUG ❑ Plugged i0 • Abandoned i0' Suspended 1b. Well Class: 20AAC 25.105 20AAC 25.110 Development ❑ Exploratory El GINJ ❑ WINJ ❑ WAG ❑ WDSPL ❑ Other ❑ No. of Completions: Service ❑ Stratigraphic Test ❑ 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill Number: USGS Aband.: 7/4/2009 -. 209 -035 - 3. Address: 6. Date Spudded: 13. Affaumber: _ PO Box 25046 MS 939 DFC Denver, CO 80225 6/28/2009 jb•- 301 - 20012 -00 - 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and Number: Surface: N70 38' 6.6" W 160 1' 45.3" 7/2/2009 Wainwright 10 - Top of Productive Horizon: 8. KB (ft above MSL): 15. Field /Pool(s): GL (ft above MSL): 50 ft Total Depth: 1360 ft • 9. Plug Back Depth(MD +TVD): 1360 ft - land surface 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Property Designation: , Surface: x- y- Zone- 1360 ft , 1 6 , e - - 4 L/c ‘( • i ,z -+ TPI: x- y- Zone- 11. SSSV Depth (MD + TVD): 17. Land Use Permit: Total Depth: x- y- Zone - 18. Directional Survey: Yes ❑ No i0 19. Water Depth, if Offshore: 20. Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) (ft MSL) -1000 ft 21. Logs Obtained (List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re- drill /Lateral Top Window MD/TVD: gamma, caliper, resistivity, induction, density 23. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD FT PULLED 6 5/8 18.99 sch 40 0 95 ft • 9.875 inch arctic cement 0 -95 ft P &A 1360 -50 ft: bentontite grout 50 -land surface: Arctic cmnt . 24. Open to production or injection? Yes ❑ No i0 If Yes, list each 25. TUBING RECORD interval open (MD +TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD/TVD) 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 27. PRODUCTION TEST Date First Production: Method of Operation (Flowing, gas lift, etc.): Date of Test: Hours Tested: Production for Oil -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: Test Period -+ Flow Tubing Casing Press: Calculated Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): Press. 24 -Hour Rate 28. CORE DATA Conventional Core(s) Acquired? Yes El . No ❑ Sidewall Cores Acquired? Yes ❑ No ❑ - If Yes to either question, list formations and intervals cored (MD +TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. Nanushuk Fm: 1300 -1317 ft through coal and underlying siltstone. No oil shows; gas in coal. ' - '14" RECEIVED NOV 2 3 ZUU9 Alaska Gil & � G n a r s h Co g n � s.. Commissic n form 10 407 Rcviocd 7/2009 AV 11 1 l IUED 9N REVCRCE SUbnilt'OY ITI6T only /Z: lo .Z�0 ,,.sS f iz is ♦ t • 28. GEOLOGIC MARKERS (List all formations and markers encountered): 29. FORMATION TESTS NAME MD TVD Well tested? U Yes No If yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if needed, Permafrost - Top land surface and submit detailed test information per 20 AAC 25.071. Permafrost - Base —1000 ft —12 hr drawdown /recovery test conducted in Nanushuk sandstone isolated .( between 1140 -1180 ft using airlift method. Sandstone producing — 2 -3 gpm Nanushuk from land surface to TD water when fully developed. QW sample collected at conclusion of test. Results of test pending. Formation at total depth: Nanushuk 30. List of Attachments: P & A diagram 31. I hereby certify that Clip foregoing is true and correct to the best of my knowledge. Contact: 1 „# Printed Name: Arth r lark Title: Supervisory Geologist Signature: � Phone: 303-236-5793 Date: 11/19/2009 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10 -404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water - Alternating -Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50- 029 - 20123- 00 -00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 27: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 29: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10 -407 Revised 7/2009 • Wainwright -2009 Daily Record DATE ACTIVITY 06/05/09 Drill crew arrives in Wainwright 06/06/09 unpacking equipment Set up drill rig over production well (Wainwright -3). Repair cracked well enclosure on Wainwright -6 06/07/09 (hit by snow plow) and remove —10 ft of ice from well using portable NSB steam unit. 06/08/09 Reaming ice from production well. Drill to 360 ft. 06/09/09 Ream ice to 1260 ft, drill 6" hole to 1295 ft. Circulate well, mix water /propylene glycol mix and fill well. Trip pipe and prepare for production 06/10/09 testing. 06/11/09 Set pump on 2" drop pipe w /pressure transducers attached to 1265 ft. Program transducers for test. 06/12/09 Begin production test. Having icing issues. Severe icing issues. Pull pump, order heat trace and gas/water separator, begin moving equipment 06/13/09 to landfill site (Wainwright -9) Finish moving equipment to W -9. Coordinates N70 39' 58.6" W159 58' 13.0 ". Will collect mud -gas 06/14/09 logs at this site. Set 6" steel conductor casing to 45 ft. Drill 6" hole to 245 ft through Nanushuk silstone, sandstone, 06/15/09 coal etc. 06/16/09 Drill 6" hole to 760 ft thru Nanushuk sediments. 06/17/09 Drill 6" to 1161 ft. Run gamma log through drill steel. Trip steel and prepare to core. 06/18/09 Core from 1161 - 1230 ft. Encounter "w" coal bed at 1170 ft. Begin coal desorption. 06/19/09 Core from 1230 - 1286 ft. Pull barrel, ream hole, and drill to 1300 ft. 06/20/09 Pull steel and run geophysical logs - gamma, resistivity, caliper, sonic. Plug and abandon W -9 with bentonite abandonment grout to 50 ft bis, Arctic cement to surface. Cut 06/21/09 casing at 3' bls. Move equipment back to production well. Set up and ream /flush to 1295 ft. Warm drill mud to 06/22/09 increase borehole temp. 06/23/09 Circulate fluid. Have 220V power dropped at site. Fill well with glycol from 1100 ft to surface. Set pump and drop pipe w /transducers, separator, and heat trace to 1255 ft. Turn on heat trace and 06/24/09 let borehole fluid warm. 06/25/09 Begin test. Having transducers problems (too much current in well). Continue test with limited transducers. Pump still cavitating and silting up. Terminate test and fill well 5- w /glycol. 1 0 Pull pump and order new transducers. Move equipment to delineation site Wainwright -10. Will not 06/27/09 collect mud -gas logs at this site. Finish moving equipment. Coordinates N70 38' 6.6" W 160 1' 45.3 ". Sri ll 10" hole and set 6" steel 06/28/09 casing to 95 ft. , 06/29/09 Drill 6" hole to 600 ft thru Nanushuk sediments. 06/30/09 Drill 6" hole to 1000 ft thru Nanushuk. Drill to 1260 ft and run gamma thru drill steel. Drill to 1300 ft, core to 1317 ft. Hit w-coal at 1300 ft. 07/01/09 Begin desorption. Drill to 1360 ft, trip steel, and run logs - caliper, gamma, resistivity, induction, density, sonic. Set 07/02/09 packers in 1150 ft sandstone. Air develop sandstone between packers at 1140 -1180 ft. Install transducer and collect recovery data. 07/03/09 Collect water samples for QW. Pull packers, plug and abandon W -10 with abandonment grout and Arctic cement from 50 ft to e'ip 07/04/09 surface. Move equipment to production site. l(3 Set production pipe to 1200 ft. Plug in heat trace to warm well and one shorts out. Can't run test with 07/05/09 only one trace. 07/06/09 Order new trace. 07/07/09 Trace arrives late. Install and let it run ovemight to warm well. 07/08/09 Begin test but more transducers blow out. Running test w /reduced monitoring. 07/09/09 Continue test. 07/10/09 Pump cavitating and silting. End test, fill well w /glycol, pull pump and clean. 07/11/09 Reset pump and program transducers. Test pump and it's having problems. 07/12/09 Another heat trace shorts. Pull trace, rehead, and reinsert. Begin test. 07/13/09 pump testing pump testing. Lose communication in reservoir between production and monitor wells (gas 07/14/09 plugging ?) 07/15/09 fill production well w /glycol and slowly reestablish connection. Let reequilibrate overnight. 07/16/09 Begin test with slow drawdown rate. • • 07/17/09 testing 07/18/09 testing testing. Lose communication with deep transducer. Fill well w /glycol and order new high - pressure 07/19/09 transducer 07/20/09 standby for transducers to arrive 07/21/09 pull old transducers, install new. Begin test. 07/22/09 testing 07/23/09 testing 07/24/09 testing 07/25/09 testing 07/26/09 testing 07/27/09 testing 07/28/09 testing 07/29/09 testing 07/30/09 testing 07/31/09 testing 08/01/09 testing 08/02/09 testing 08/03/09 testing 08/04/09 testing 08/05/09 testing 08/06/09 testing 08/07/09 testing • 08/08/09 testing 08/09/09 testing 08/10/09 testing 08/11/09 testing 08/12/09 testing 08/13/09 testing 08/14/09 testing 08/15/09 testing 08/16/09 testing 08/17/09 testing 08/18/09 testing 08/19/09 End test. Wells refilled with glycol /water mixture. 08/20/09 no project activities 08/21/09 no project activities 08/22/09 no project activities 08/23/09 no project activities 08/24/09 Drill crew arrives in Wainwright. Pull submersible pump and test equipment from production well 08/25/09 Move rig from well. Winterizing equipment. 08/26/09 Finish winterizing equipment and park in wareyard. Install well enclosures. 08/27/09 Crew leaves Wainwright. End of 2009 activities. • • ck 06/25/09 Begin test. Having transducers problems (too much current in well). 4 :0 Continue test with limited transducers. Pump still cavitating and silting up. Terminate test and fill well 06/26/09 w /glycol. Pull pump and order new transducers. Move equipment to delineation site Wainwright -10. Will not 06/27/09 collect mud -gas Togs at this site. Finish moving equipment. Coordinates N70 38' 6.6" W 160 1' 45.3 ". SriII 10" hole and set 6" steel 06/28/09 casing to 95 ft. 06/29/09 Drill 6" hole to 600 ft thru Nanushuk sediments. 06/30/09 Drill 6" hole to 1000 ft thru Nanushuk. Drill to 1260 ft and run gamma thru drill steel. Drill to 1300 ft, core to 1317 ft. Hit w -coal at 1300 ft. 07/01/09 Begin desorption. Drill to 1360 ft, trip steel, and run logs - caliper, gamma, resistivity, induction, density, sonic. Set 07/02/09 packers in 1150 ft sandstone. Air develop sandstone between packers at 1140 -1180 ft. Install transducer and collect recovery data. 07/03/09 Collect water samples for QW. Pull packers, plug and abandon W -10 with abandonment grout and Arctic cement from 50 ft to 07/04/09 surface. Move equipment to production site. Set production pipe to 1200 ft. Plug in heat trace to warm well and one shorts out. Can't run test with 07/05/09 only one trace. - 07/06/09 Order new trace. 07/07/09 Trace arrives late. Install and let it run overnight to warm well. 07/08/09 Begin test but more transducers blow out. Running test w /reduced monitoring. 07/09/09 Continue test. 07/10/09 Pump cavitating and silting. End test, fill well w /glycol, pull pump and clean. 07/11/09 Reset pump and program transducers. Test pump and it's having problems. 07/12/09 Another heat trace shorts. Pull trace, rehead, and reinsert. Begin test. 07/13/09 pump testing pump testing. Lose communication in reservoir between production and monitor wells (gas 07/14/09 plugging ?) 07/15/09 fill production well w /glycol and slowly reestablish connection. Let reequilibrate overnight. 07/16/09 Begin test with slow drawdown rate. • • 07/17/09 testing 07/18/09 testing testing. Lose communication with deep transducer. Fill well w /glycol and order new high - pressure 07/19/09 transducer 07/20/09 standby for transducers to arrive 07/21/09 pull old transducers, install new. Begin test. 07/22/09 testing 07/23/09 testing 07/24/09 testing 07/25/09 testing \v 07/26/09 testing r■ 07/27/09 testing 07/28/09 testing 07/29/09 testing 07/30/09 testing 07/31/09 testing 08/01/09 testing 08/02/09 testing 08/03/09 testing 08/04/09 testing 08/05/09 testing 08/06/09 testing 08/07/09 testing • 08/08/09 testing 08/09/09 testing 08/10/09 testing 08/11/09 testing 08/12/09 testing 08/13/09 testing 08/14/09 testing 08/15/09 testing 08/16/09 testing 08/17/09 testing `a1 08/18/09 testing - s' c.4 08/19/09 End test. Wells refilled with glycol /water mixture. 08/20/09 no project activities 08/21/09 no project activities 08/22/09 no project activities 08/23/09 no project activities 08/24/09 Drill crew arrives in Wainwright. Pull submersible pump and test equipment from production well 08/25/09 Move rig from well. Winterizing equipment. 08/26/09 Finish winterizing equipment and park in wareyard. Install well enclosures. 08/27/09 Crew leaves Wainwright. End of 2009 activities. Well abandonment diagram Wainwright -10 Land surface • 3 ft below land surface Arctic blend cement • 9 718 -in diameter borehole Top of Grout = 50 ft • Depth of 6 5 /8 -in casing = 95 ft 0 0 L • 6 -in diameter borehole E c 0 �t '3t 0 N c0 1--- Total Depth = 1360 ft O 0 0 O O O 0 LI 0 F m F 2 ZL 2 CO 2 W 2 o o ~ W W 0 COMPANY USGS g WELL ID Wainwright -10 FIELD Wainwright COUNTRY USA STATE Alaska LOCATION OTHER SERVICES N7038'05.8" W16001'45.6" o 0 0 co ur f N Z w O i w a O 3 w U CA w SEC TWP RGE PERMANENT DATUM ELEVATION K.B. w iii d U U LOG MEAS. FROM ABOVE PERM. DATUM D.F. Q — w C9 0 0 DRILLING MEAS. FROM G.L. DATE July 2, 2009 TYPE FLUID IN HOLE drill mud RUN No 1 SALINITY Ilk LOG gamma - density- caliper - resistivity DENSITY A v — H- DRILLER 1360 LEVEL — O 0 DEPTH - LOGGER 1360 MAX. REC. TEMP. N BTM LOGGED INTERVAL I TOP LOGGED INTERVAL I r OPERATING RIG TIME ` 1 RECORDED BY A Clark Q tY I 1 WITNESSED BY z a Q Q I RUN BOREHOLE RECORD CASING RECORD 0 4 NO. BIT FROM TO SIZE WGT. FROM TO p� JI Y 0 —__ _ r — a ° co O O O 0 0 0 CV c-I N N d� l0 N r-I 0 14 Willikadillil , p--7 arr__ 16 0 — - r --= I — —W =_ I '1----r-limiA. I W -m 180 M t 200 r •�� 220 7_1-7 L _j; 240 260 I ,,.;__ _.____ ii-_, 280 A MIL 300 1119 s 320 Ell 340 ' ill I 360 IMEW� 380 ' M 111 W 1 I I MEI NW MI I FM 1 400 ` a IMMIMIIMIN MI 420 � AMMIll 440 1j_ r Kir +�- 460 �� Mi� IFSAIMIMI 480 IM AM! --....- Ila 50 -� Z W il: I I OM I I W4 540 ` .. s 560 i L ,. ill - em. 580 __ 600 7 --T— Ea 'ow- tar 620 a 1 1 640 laill_ 660 ,� 680 __INI_ HIF --%/64......., M illi' iki 700 -.di iii.... ,-. -.... 720 _c 740 1 760 0 -ice` 1, 780 r R - 800 1 E - i 820 E_ 7 840 - � 860 �► t 8 8 0 - - � �� - FIW - 900 . l it.... _ 920 l 4. 940 4 r � 960 -"Illar; i 980 F • 1 7 l 1000 - ---- ---______ ge--- 1020 ___411.). - _ lb) 1040 4 �� f 1060 '� 1080 IMP11 -...- "Alti6-1.111M1 1100 1 1120 s�� 1140 �VI 1160 IIr , i 1180 liiii� N �IE tail fir W; 1200 i 1220 A li 1 ± 1 , 1240 1260 J�i 1280 - MWrill-WMIE 1MM! 1300 *- �I 1320 4jP61W �' 1340 4 _. - LATERAL 1 I 0 OHM -M 100 DEN(SS) RES(64N) I 1 I 1 G /CC 2.5 0 OHM -M 100 Depth GAM(NAT) CALIPER RES(16N) 1ft:480ft 0 API -GR 200 r INCH 8 0 0 OHM -M 1001 . , E • , w U) ra a, — o — 0 o 0 M M OE 0 O g .....z.... zo. O = . I U 2 Q 2 C USGS • WELL ID Wainwright -10 FIELD COUNTRY U is A STATE k, LOCATION OTHER SERVICES Wainwright, AK ; • o u-) . N la "3�p (�5.8 'o z W t6b 01' `1S,1o` w G it W 1 U • 3 w U cA w SEC TWP RGE PERMANENT DATUM ELEVATION K.B. 2 CO • 2 LOG MEAS. FROM ABOVE PERM. DATUM D.F. c[ == DRILLING MEAS. FROM G.L. DATE 7/2/2009 TYPE FLUID IN HOLE drill mud II RUN No 2 SALINITY • TYPE LOG induction DENSITY DEPTH - DRILLER 1360 LEVEL o 0 DEPTH - LOGGER 1360 MAX. REC. TEMP. a BTM LOGGED INTERVAL TOP LOGGED INTERVAL OPERATING RIG TIME RECORDED BY A Clark ~ Q cf WITNESSED BY Z C7 2 d Q Q CD RUN BOREHOLE RECORD CASING RECORD NO. BIT FROM TO SIZE WGT. FROM TO Ilfit4 1 o — o a co CN di • • 60.0 I =IMMINENT 80.0 111111111111 1 100 �_� r i 120 - - '� 140 0 - -�T � !ter 160.0 180 .0 200.0 — � — -z �! 220.0 240. 7 c 260.0 - a 280.0 — 300.0 1 �� 320.0 �f 340. • r _ 360 .0 380 r Page 2 • • 400.0 420.0 440.0 460.0 480.0 500.0 520.0 540.0 560.0 — — 580.0 — 600.0 620.0 640.0 T - t 660.0 680.0 t 700.0 07 720.0 Page 3 • • 740.0 -------- 760.0 - _,,..atul■mmil■r.,----- 780.0 800.0 = ' 820.0 M 840 860.0 880. 900.0 MI 920.0 .--Air 940.0 960.0 980.0 - 1000.0 -7--IIILW 1020.0 1040.0 3 1060.0 ___....11- , Page 4 a 410 1080.0 �- -i 1100.0 1120.0 1140.0 1160.0 1180.0 1200.0 1220.0 1240.0 1260.0 1280.0 IgE 1320.0 - 1340.0 Page 5 • • STATE OF ALASKA • ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1a. Well Status: Oil ❑ Gas ❑ SPLUG ❑ Plugged E Abandoned 0 Suspended 1b. Well Class: 20AAC 25.105 20AAC 25. 110 Development ❑ Exploratory El GINJ ❑ WINJ ❑ WAG ❑ WDSPL ❑ Other ❑ No. of Completions: Service ❑ Stratigraphic Test ❑ 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill Number: USGS Aband.: 7/4/2009 209 -035 3. Address: 6. Date Spudded: 13. API Number: PO Box 25046 MS 939 DFC Denver, CO 80225 6/28/2009 301 - 20012 -00 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and Number: Surface: N70 38' 6.6" W 160 1' 45.3" 7/2/2009 Wainwright 10 Top of Productive Horizon: 8. KB (ft above MSL): 15. Field /Pool(s): GL (ft above MSL): 50 ft Total Depth: 1360 ft 9. Plug Back Depth(MD +TVD): 1360 ft - land surface 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- y- Zone- 1360 ft TPI: x- y- Zone- 11. SSSV Depth (MD + TVD): 17. Land Use Permit: Total Depth: x- y- Zone - 18. Directional Survey: Yes ❑ No is 19. Water Depth, if Offshore: 20. Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) (ft MSL) -1000 ft 21. Logs Obtained (List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re- drill /Lateral Top Window MD/TVD: gamma, caliper, resistivity, induction, density 23. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING FT GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 6 5/8 18.99 sch 40 0 95 ft 9.875 inch arctic cement 0 -95 ft - P &A 1360 -50 ft: bentontite grout 50 -land surface: Arctic cmnt 24. Open to production or injection? Yes No pi If Yes, list each 25. TUBING RECORD interval open (MD +TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD/TVD) 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 27. PRODUCTION TEST Date First Production: Method of Operation (Flowing, gas lift, etc.): Date of Test: Hours Tested: Production for Oil -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas-Oil Ratio: Test Period .0.. Flow Tubing Casing Press: Calculated Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): Press. 24 -Hour Rate -► 28. CORE DATA Conventional Core(s) Acquired? Yes El No ❑ Sidewall Cores Acquired? Yes ❑ No ❑ If Yes to either question, list formations and intervals cored (MD +TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. Nanushuk Fm: 1300 -1317 ft through coal and underlying siltstone. No oil shows; gas in coal. Form 10 -407 Revised 7/2009 CONTINUED ON REVERSE Submit original only Well abandonment diagram Wainwright -10 Land surface 3 ft ::::::::::orehole (0? 1000 0 4 40 40 404 0 004 4 N rqiill 44 Ai rillftWalietiolzopro.val ii .titr...; :Atild :14#43,144041.1461004004; 00 g � r l taki 3 t '. oikIL Top of Grout = 50 ft iki �£ 4 ££ 4 r S r s Y , ,,, E o 4 W r t £4£j Depth of 6 5 /8 -in casing = 95 ft } u r r 4 i t £ aOi ` £U 4 4 � rx'.r iPtilqiriNiV4P 40,411 { r 4 I,r } M £r€ rr Ste `,,[£ }}..},,� t r r C' € ` 4i .,,,,. r. m 7 irtiPtifilliniVtAlfiefiehililleikM 4 kVi ..,:03,3, 4, ?* s ,I n t1. £ t ri 4f i r r r �rY , r ,, S 6 -in diameter borehole rt , I,t�} k € € ft'€ r £ €t r3 � 4 £ 4 E r£r � ,,£ f �'s.i tifititte t ,,, 4 i .41-`31. 4, rr ir1P!£r 0,0:041 us ri 41, r � 4 €} iit£ 4A, a t r£ ari} 3 P ([ r ,g E � S£ atr 4 £ N'€o s 4 i 4 al £ 'e 4� iiF1 • — Total Depth = 1360 ft , • ilv k rt a t .� SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS 1 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMNIISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 t� FAX (907) 276 -7542 Mr. Art Clark Geologist US Geological Survey PO Box 25046 MS 911 DFC Denver, CO 80225 Re: Exploratory Field, Wainwright #10 Sundry Number: 309 -272 Dear Mr. Clark: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. This work was completed prior to filing Form 403, in violation of 20 AAC 25.105(e). This is another instance of the Bureau of Land Management's untimely compliance with requirements of Alaska State Law. As provided in AS 31.05.080, within 20 days after written notice of this 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 rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, Daniel T. Seamount, Jr. Chair h DATED thisZday of December, 2009 Encl. RECEIVED `""' 0.01 0 • AU G 0 3 2009 8s 9 Q � i STATE OF ALASKA V P ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS�a$ka Oil & Gas Cons. Commission Anchorage 20 MC 25.280 1. Type of Request: Abandon[E] / Suspend ❑ Operational shutdown❑ Perforate Waiver❑ Other': Alter casing❑ Repair well ❑ Plug Perforations ❑ Stimulate ❑ Time Extension ❑ Change approved progran❑ Pull Tubing❑ Perforate New Pool❑ Re -enter Suspended Well ❑ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: US GEOLOGI CAL SURVEY Development ❑ Exploratory ®, 209 - 0 3 5 3. Address: P . 0 BOX 25046 , MS 406 Stratigraphic ❑ Service ❑ 6. API Number: DENVER FED.CTR. DENVER, CO 80025 301 - 20012 -00' 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: WAINWRIGHT 10 - Spacing Exception Required? Yes ❑ No ❑ 9. Property Designation: 10. KB Elevation (ft): 11. Field / Pool(s): NORTH SLOPE BOROUGH, SID 12. PRESENT WELL CONDITION SUMMARY Total 3 ep MD (ft): Total 3 epth TVD (ft): Effective Depth MD (ft): Effectiv Depth TVD (ft): Plugs (measured): Junk (measured): �Q co I ) ti (4Svr tt- 13 teo Casing Length Size MD TVD Burst Collapse Structural Conductor Ct s ( r/k " Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): Packers and SSSV Type: Packers and SSSV MD (ft): 13. Attachments: Description Summary of Proposal ❑ 14. Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ® Development ❑ Service ❑ 15. Estimated Date for 16. Well Status after proposed work: IP.if(ll Commencing Operations: JUNE 29 , 2009 Oil ❑ Gas ❑ Plugged Abandoned ID 17. Verbal Approval: Date: WAG ❑ GINJ ❑ WINJ ❑ WDSPL ❑ Commission Representative: 18. I hereby certify that t e foregoing is true and correct to the best of my knowledge. Contact Printed Name C v* , CJ c —' Title S �A to ( + 7/ / Signature / Phone Date J i / 1 iff c COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: J R Plug Integrity `❑ BO P Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ • Other: TA l J O C. 44 re-4.--a....1 teeth 4) ov- 1' ' t o - c( 4 7 / is 1 4, t..t Go / 4 s.,ol e. c' pr!mr - .Pd,. &Av..,1i t D 3 � r. �/ %0 `4/T�' 4 .-1 00 ,4A C. 2 5. /0 (e) . - VI- brr.-. i / 3 Was o S 5 ... , rnrJ ( * 4 / 4 ► (q0 b `� �-�- ,(.... 4 Y C G . d Subsequent Form Required: / d • � APPROVED BY l Approved by: / , j Form 1 � -403 Revised 06/2006 COMMISSIONER THE COMMISSION Date: / zz/ 0NIGINALR f a P- yd- Submit in Duplicate ' . Well abandonment diagram Wainwright-10 Land surface 4-- ft below land surface villikpowailatiomogg lialimilaiiiiim »,Nr i Top of Gr u = 5 ft ----• Liwirffinint110410441411041 „ «a> 1--- Depth o casing =9 ft \ v y \'' © � / . p ifilk,. ; Aii? .144.40404 riatigaRhil • 2 N4400116 art,, W4414 - f : ) oli,WilikViiV. 14444; ƒ Ake y \ :111, *att.kakirtn 4----- a Depth - 13 0 ft • k � i p 4 \ pp t t ro � s s `" G ! I) i y " ! � � � SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS / 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 November 6, 2009 Greg Noble Section Chief — Energy Section Bureau of Land Management 4700 BLM Road Anchorage, Alaska 99507 Dear Mr. Noble: This letter responds to your November 9, 2009 email expressing displeasure with my November 5, 2009 letter. While the November 5 letter may not have been what you were expecting, the AOGCC is statutorily charged with assuring compliance with our drilling regulations. The AOGCC remains amenable to resolving this matter without the necessity of a public hearing. To that end, Guy Schwartz, an AOGCC petroleum engineer, will contact Art Clarke to discuss the situation with him. If you would care to participate in that dialogue, please contact Guy at 907 - 793 -1226. Sincerely, Daniel T. Seamount, Jr. Chair � j` ` r 1 h� ' r G i , t 6.' �', i g� � i (' - 5 . l y t f \. \ p � F 0 k r a " `, r l ' SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION / ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276-7542 November 6, 2009 Greg Noble Section Chief — Energy Section Bureau of Land Management 4700 BLM Road Anchorage, Alaska 99507 Dear Mr. Noble: This letter is a follow -up to discussions regarding the USGS's ongoing violations of AOGCC regulations at the Wainwright, AK exploratory coal bed methane project. In those discussions you questioned the AOGCC's support for the coal bed methane project. AOGCC strongly supports the project. However, that support is predicated on compliance at Wainwright with AOGCC regulations. Wainwright well operations are continually conducted in violation of AOGCC regulations. Some of those violations, including well work undertaken without a permit, are very serious. The AOGCC's prior efforts to obtain regulatory compliance have essentially been ignored. The AOGCC remains amenable to resolving these issues informally. But as much as the AOGCC supports the project, we are rapidly approaching a point where other options need to be considered, including a public hearing regarding the violations. To the extent you may be able to obtain or encourage USGS compliance with AOGCC regulations, we welcome your support. In closing, let me again express the AOGCC's support for the program and the hope that once the compliance issues are resolved it is a resounding success. Sincerely, �7 Daniel T. Seamount, Jr. Chair Enclosure • Art Clark, Supervisory Physical Scientist USGS CR RM WRD Box 25046, Denver Federal Center Mail Stop 939 Denver, CO 80225 -0046 Gary Reimer, District Manager USGS, Anchorage District Office 4700 BLM Road Anchorage, AK 99507 Leslie Holland - Bartels, Regional Executive - Alaska Area USGS WR AA DO 4210 University Drive Anchorage, AK 99508 -4626 Anne Kinsinger, Western Regional Director USGS WR -- DO 909 1st Avenue, Suite 704, 7th Floor Seattle, WA 98104 -1055 Peter Lyttle, Acting Associate Director for Geology USGS HQ -- GD 12201 Sunrise Valley Drive, Mail Stop 911 Reston, VA 20192 -0002 Thomas P. Lonnie, State Director Bureau of Land Management Alaska State Office 222 W 7th Avenue #13 Anchorage, Alaska 99513 Bob Abbey, Director BLM Washington Office 1849 C Street NW, Rm. 5665 Washington DC 20240 I �_i I � �,,� � 4� � L -y ak , k ; t � ti r \ h e E n � ( L � pq �� 5G e k 'cLYI ( j . i- ` . u c a L ' : F, � Er) .. , ^ Y l' SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMhIISSION / PHONE ) FAX (907) 276 -7542 November 5, 2009 Art Clark, Supervisory Physical Scientist Gary Reimer, District Manager USGS CR RM WRD USGS, Anchorage District Office Box 25046, Denver Federal Center Mail Stop 939 4700 BLM Road Denver, CO 80225 -0046 Anchorage, AK 99507 Dear Mr. Messrs: On September 9, 2009 the Alaska Oil and Gas Conservation Commission (AOGCC) wrote to request compliance with AOGCC regulations at the Wainwright, AK exploratory coal bed methane project. The USGS provided no response. Because Wainwright well operations are being conducted in violation of AOGCC regulations, and because some of those violations, including well work undertaken without a permit, are very serious, the AOGCC is making a final attempt to resolve these issues informally. The following actions are required in order for the USGS to bring its Wainwright operations into compliance with AOGCC regulations: Wainwright #6 (PTD 208 -074 ) - Submit AOGCC forml0 -407 documenting 2009 activities in detail. (as per 20 AAC 25.070 (3)) - Submit a current wellbore drawing. (as per 20 AAC 25.300) - Submit hard and digital copies of all logs obtained drilling and completing the well. (as per 20 AAC 25.071 (6)) Wainwright #9 (PTD 208 -077) - Submit AOGCC form 10 -407 documenting all activities including the P & A. (as per 20 AAC 25.070 (3) ) - Submit a current wellbore drawing. (as per 20 AAC 25.300) - Submit hard and digital copies of all logs obtained drilling and completing the well. (as per 20 AAC 25.071 (6)) - Submit Core sample chips. (as per 20 AAC 25.071 (4) ) - Submit Core description and analysis (as per 20 AAC 25.071 (3)) - Submit Lithology log (as per 20 AAC 25.071(3)) • Wainwright #10 ( PTD 209 -035) - Submit AOGCC form 10 -407 documenting all activities including the P & A. (as per 20 AAC 25.070 (3) ) - Submit a current welibore drawing. (as per 20 AAC 25.300) - Submit hard and digital copies of all logs obtained drilling and completing the well. (as per 20 AAC 25.071 (6)) - Submit Core sample chips. (as per 20 AAC 25.071 (4) ) - Submit Core description and analysis (as per 20 AAC 25.071 (3)) - Submit Lithology log (as per 20 AAC 25.071(3)) - Submit inclination log (as per 20 AAC 25.050 (2)) Additional wells out of compliance as referenced in Attachment #1 — September 9, 2009 letter are: Wainwright # 1 (PTD 207 -065) - No hardcopies of open hole logs were submitted (as per 20 AAC 25.071 (6)) - No core chip samples submitted(as per 20 AAC 25.071 (4) ) - No core description submitted(as per 20 AAC 25.071 (3)) - No core analysis submitted(as per 20 AAC 25.071 (3)) - No header information on the .pdf digital graphics files submitted on dataset number T14024. (as per 20 AAC 25.071 (7)) Wainwright #2 (PTD 207 -106) - No washed and dried samples submitted (as per 20 AAC 25.071 (2)) - No lithology / sample log submitted (as per 20 AAC 25.071 (1)) - No core chips submitted(as per 20 AAC 25.071 (4) ) - No core description submitted(as per 20 AAC 25.071 (3)) - No core analysis submitted(as per 20 AAC 25.071 (3)) - No header information on the .pdf digital graphics files submitted on dataset number T14024 (as per 20 AAC 25.071 (7)) - No directional survey submitted. (as per 20 AAC 25.050 (2)) Franklin Bluffs 1 (PTD -2M0'61 o? Q / O S - No mud logs submitted. (as per 20 AAC 25.071 (1)) - No dry samples submitted (as per 20 AAC 25.071 (2)) - No as -built submitted (as per 20 AAC 25.070(2)) - No core analysis submitted(as per 20 AAC 25.071 (3)) - No core description submitted(as per 20 AAC 25.071 (3)) - No open hole logs submitted (hardcopy nor digital) (as per 20 AAC 25.071 (6)) DOI -04 1A (PTD 26*- 20 -6Y3 - No mud logs submitted. (as per 20 AAC 25.071 (1)) - No dry samples submitted (as per 20 AAC 25.071 (2)) - No OH logs submitted (hardcopy nor digital data) (as per 20 AAC 25.071 (6)) - No core chip samples submitted(as per 20 AAC 25.071 (4) ) - No core analysis submitted(as per 20 AAC 25.071 (3)) • • • - No core description submitted(as per 20 AAC 25.071 (3)) - Density and porosity data missing from submitted digital data. (407 states that those types of logs were run.) (as per 20 AAC 25.071 (6)) Within 40 days of the date of this letter, the AOGCC requests USGS provide written verification that the violations listed above have been rectified and that all Wainwright operations are being conducted in compliance with AOGCC regulations. Upon receipt of such verification, the AOGCC will consider this matter closed. Should the USGS fail to submit the required information the AOGCC will notice a public hearing on the Wainwright violations to determine, among other things, the reasons for noncompliance and whether non - compliance poses any threat to human health or the environment. If you have any questions regarding this request for information, please contact Guy Schwartz at 907 - 793 -1226 or guy.schwartz @alaska.gov. Sincerely, Daniel T. Seamount, Jr. Chair Encl. cc: Greg Noble, BLM • \ E t 1 a F k ` k ' -� \ ` , ; r SEAN PARNELL, GOVERNOR 1 _� h 4_ ' l' i 1, � t t t Y t � \ Li t 1 ' / �1 ALASKA OIL AND GAS F " 333 W. 7th AVENUE, SUITE 100 CONSERVATION CommiSSION F ANCHORAGE, ALASKA 99501 -3539 1 PHONE (907) 279 -1433 FAX (907) 276-7542 September 9, 2009 Art Clark, Supervisory Physical Scientist Gary Reimer, District Manager USGS CR RM WRD USGS, Anchorage District Office Box 25046, Denver Federal Center Mail Stop 939 4700 BLM Road Denver, CO 80225 -0046 Anchorage, AK 99507 Dear Mr. Messrs: The U.S. Geological Survey (USGS) has again failed to meet the Alaska Oil and Gas Conservation Commission's (Commission) regulatory requirements for exploratory coal bed methane wells drilled near Wainwright, Alaska. During the current drilling season, the USGS failed to file Sundry permit applications — required by 20 AAC 20.015, 20 AAC 25.280 and 20 AAC 25.110 — for the following operations: 1. repairing of monitor well Wainwright 6, 2. plugging and abandoning of well Wainwright 9, and 3. plugging and abandoning of well Wainwright 10. The USGS also failed to file, in a timely manner, weekly operations summaries for the current Wainwright exploratory drilling program. These summaries are authorized under 20 AAC 25.300. Alaska Statute 31.05.027 and Regulation 20 AAC 25.515 require Federal agencies to conform to the Commission's permitting and reporting requirements. Without permit applications in advance of well operations, it is not possible for the Commission to review proposed operations to ensure that they meet Alaska's statutory requirements to prevent waste, protect correlative rights, and improve ultimate recovery while protecting underground freshwater, health, safety and the environment. Without weekly operations summaries, the Commission cannot, in a timely manner, review actual well operations to ensure conformance with our requirements. The current failures reflect a continuing pattern of poor compliance by the USGS and the Bureau of Land Management (BLM) over the past five years. On May 23, 2008, the Commission issued Conservation Order No. 600 (CO 600), which found that the BLM had drilled the Wainwright No. 2 exploratory coal bed methane well before the Commission received or approved a Permit to Drill application for the well. This inaction drew the BLM and the USGS, the operator for the well, a rebuke from the Commission. CO 600 also concluded that the BLM and the USGS had not submitted all information required for the Wainwright No. 1 and No. 2 exploratory wells. CO 600 ordered BLM and the USGS to submit, by June 23, 2008, the reports and information required by 20 AAC 25.070 and 20 AAC 25.071. Attachment 1 presents the continued reporting deficiencies for Wainwright No. 1 and Wainwright No. 2 along with reporting deficiencies for the Franklin Bluffs No. 1 and DOI -04 No. 1A exploratory wells that were drilled about five years ago. • • • U.S. Geological Survey September 9, 2009 Page 2 of 3 If the USGS and BLM continue to fail to meet Alaska's statutory and regulatory requirements, the Commission will issue notice and convene a public hearing to address these matters further. Daniel T. Seamount, Jr. Chair Leslie Holland - Bartels, Regional Executive - Alaska Area USGS WR AA DO 4210 University Drive Anchorage, AK 99508 -4626 Anne Kinsinger, Western Regional Director USGS WR -- DO 909 1st Avenue, Suite 704, 7th Floor Seattle, WA 98104 -1055 Peter Lyttle, Acting Associate Director for Geology USGS HQ -- GD 12201 Sunrise Valley Drive, Mail Stop 911 Reston, VA 20192 -0002 Thomas P. Lonnie, State Director Bureau of Land Management Alaska State Office 222 W 7th Avenue #13 Anchorage, Alaska 99513 Public Room: 907 - 271 -5960 Bob Abbey, Director BLM Washington Office 1849 C Street NW, Rm. 5665 Washington DC 20240 • U.S. Geological Survey September 9, 2009 Page 3 of 3 Attachment 1 Continued Reporting Deficiencies for BLM and USGS Wells Wainwright 1 No hardcopies of open hole logs were submitted (PTD 207 -065) No core chip samples submitted No core description submitted No core analysis submitted No header information on the .pdf digital graphics files submitted on dataset number T14024. Wainwright 2 No washed and dried samples submitted (PTD 207 -106) No lithology / sample log submitted (hard copy nor digital) No core chips submitted No core description submitted No core analysis submitted No header information on the .pdf digital graphics files submitted on dataset number T 14024 No directional survey submitted (hardcopy nor digital) Franklin Bluffs 1 No mud logs submitted (hardcopy nor digital data) (PTD 205 -105) No dry samples submitted No as -built submitted Core cut and was apparently directly sent to Alaska Geological Materials Center No core analysis submitted No core description submitted No open hole logs submitted (hardcopy nor digital) D0I -04 lA No mud logs submitted (hardcopy nor digital data) (PTD 204 -083) No dry samples submitted No open hole logs submitted (hardcopy nor digital data) No core chip samples submitted No core analysis submitted No core description submitted Density and porosity data missing from submitted digital data. (407 states that those types of logs were run.) r - SARAH PAUN, GOVERNOR ALASKA. OIL AND OAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 • �rII t7 PHONE (907) 279 -1433 FAX (907) 276 -7542 May 27, 2009 i tJ L 11 CI in Dianne Munson MAY 2.9 2009. . EY Acting Section Manager Dept. of Environmental Conservation Division of Spill Prevention and Response z ' ' • E N TAL .(NS1 • N Exploration, Production & Refineries 555 Cordova Street Anchorage, AK 99501 Re: Request for Determination Under AS 31.05.030(1) for Coal Bed Methane Exploratory Wells Near Wainwright, Alaska Dear Ms. Munson: By letter dated May 1, 2009, Tom Mortensen Associates, LLC (Mortensen) requested an exemption under AS 46.04.050(c) from the. State of Alaska's oil discharge prevention and contingency plan requirements (AS 46.04.030) and financial responsibility requirements (AS 46.04.040) for the proposed Wainwright coal bed methane exploratory wells planned by the U.S. Geological Survey (USGS) in and near Wainwright, Alaska. On May 4, 2009, the Alaska Oil and Gas Conservation Commission (Commission) received Mortensen's May 1, 2009, letter. AS 31.05.030(l Under AS 31.05.030(1), the Commission makes determinations that result in the exemption of wells at a "natural gas exploration facility" from the requirements of AS 46.04.030 and AS • 46.04.040. Mortensen's May 1, 2009, letter is an application for such a determination. Determination Based on the documents reviewed, the evidence shows with reasonable certainty that the proposed Wainwright Nos. 10 and 11 coal bed methane exploratory wells will not penetrate a formation capable of flowing oil to the ground surface. Documents Reviewed The Commission has reviewed the following documents: 1) confidential well records for the nearby Wainwright Nos. 1, 2, 3, 4, 5, 6, and 8 exploratory coal bed methane wells; and 2) public well records, including mud logs, for the Tunalik No. 1, Peard Test No. 1 and Kugrua No. 1 exploratory wells. Diane Munson • May 27, 2009 Page 2 of 2 Findings 1. The information examined shows that the planned Wainwright Nos. 10 and 11 exploratory coal bed methane wells will be used solely for the exploration for natural gas. 2. None of the information examined even suggests that in the vicinity of the planned wells the formations that would be penetrated will be capable of flowing oil to the ground surface. • Please contact Mr. Steve Davies (at 907 -793 -1224 or steve.davies @alaska.gov) if you have questions concerning this letter. Daniel Seamount, Jr. ! li , 4 o Cathy . Foerster Chair •mmi loner Commissioner cc: Laurie Silfven, DEC Tom Mortensen Associates, LLC Art Clark, USGS 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), "[title 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 state holiday, in which event the period nms until 5:00 pm. on the next day that does not fall on a weekend or state holiday. • , , C , (i i a ; ; c � / SARAH PALIN, GOVERNOR ALASKA AND ALASKA OIL AN GAS / 333 W. 7th AVENUE, SUITE 100 CONSERVATION CO11II1'IISSION / ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Mr. Arthur Clark Supervising Geologist U.S. Geological Survey - DOI P.O. Box 25046 MS 406 Denver Federal Center Denver, CO 80225 Re: Exploratory Well Wainright No. 10 U.s. Geological Survey - DOE Permit No: 209 -035 (Corrected) Surface Location: 500' FNL, 1970' FEL, T15N, R32W, Sec. 25 Bottomhole Location: 500' FNL, 1970' FEL, T15N, R32W, SEC. 25 Dear Mr. Clark: Please disregard the original transmittal letter that was sent to you on June 8, 2009 it contained a typographical error, note the changes in the first paragraph. It should have indicated that the transmitted letter approved an application was for an exploratory well not a development well. Sincerely, Daniel T. Seamount, Jr. Chair DATED this/ day of July, 2009 cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. • . 5 MB.G Q� �R + t SARAH PALIN, GOVERNOR [L Inc ALASKA OIL AND GAS " 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION l PHONE 907ALASKA 39501 -3539 FAX (907) 276 -7542 Arthur Clark Supervising Geologist U.S. Geological Survey - DOI P.O. Box 25046 MS 406 Denver Federal Center Denver, CO 80225 Re: Exploratory Well Wainright No.10 U.S. Geological Survey - DOE Permit No: 209 -035 Surface Location: 500' FNL, 1970' FEL, T15N, R32W, SEC. 25 Bottom Location: 500' FNL, 1970' FEL, T15N, R32W, SEC. 25 Dear Mr. Clark: Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. Conservation Order No. 618 (attached) grants a spacing exception to allow the drilling of this well as well as equipment exemptions requested by the U.S. Geological Survey - DOI associated with the drilling of this well. Please note that production testing and hydraulic fracturing must be approved by separate Commission action. Except as provided in this permit, operations must be conducted in accordance with AS 31.05; Title 20, Chapter 25 of the Alaska Administrative Code (e.g., 20 AAC 25.055); and any applicable orders or permits of the Commissioin. Failure to so comply may result in the revocation or suspension of the permit, other enforcement actions, and penalties. 4111 1 Permit No: 209 -035 June 5, 2009 Page 2 of 2 When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659- 3607 (pager). Sincerel Dan . Seamount, Jr. Chair ii DATED this o day of June, 2009 cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. D =@9 • I 4l -bP, STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION PERMIT TO DRILL 20 AAC 25.005 1 a. Type of Work: 1 b. Current Well Class: Exploratory E s Development Oil ❑ lc. Specify if well is proposed for: Drill E , Redrill E Stratigraphic Test E Service ❑ Development Gas ❑ Coalbed Methane ® ■ Gas Hydrates 0 Re -entry E Multiple Zone E Single Zone E Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket 0 Single Well ❑ 11. Well Name and Number: US Geological Survey -DOI Bond No. DOI, SELF- INSURED A Wainwright 10 - 3. Address: PO Box 25046, MS 406, Denver Federal Center 6. Proposed Depth: 12. Field/Pool(s): Deriver, CO 80225 MD: 3000' TVD: 3000', 4a. Location of Well (Governmental Section): 7. Property Designation: Bi..r74 At. 3, T , b`f Surface: MTRS: Umiat T15N R32W, Sec. 25 NOrthe Borough Top of Productive Horizon: FNL:500', FEL:1970' 8. Land s e Permit: 13. Approximate Spud Date: 70 °37'49.55 "N 160 °1'29.69'W Lang June 1, 2009 Total Depth: 9. Acre- '1 Property: 14. Distance to Nearest Vertical Well: 3000' /�T Property: 4b. Location of Well (State Base Plane Coordinates): (i5e1 32- " 10, KB Elevation 15. Distance to Nearest Well 7 / Surface: x1 3.9,--470-4, 4 3 92,_ 62$4..0-7-3 Zone �7 (Height above GL): 5' feet Within Pool: - # .-.1 �1 f Y . 16. Deviated well! ` YOU Kickoff depth: feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) / C 3. m Hde Angle: degrees Downhde: 12 93 • Surface: 0 4 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks He Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) 9 7/8 6 5/8 18.97 20 0 80 30 cu. ft. ppt 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re -Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Conductor/Structural Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Filing Fee ❑ BOP Sketch 0 Drilling Program ® Time v. Depth Plot 0 Shallow Hazard Analysis 0 Property Plat ® Diverter Sketch © Seabed Report ❑ Drilling Fluid Program 0 20 AAC 25.050 requirements El 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Printed Name 2y7 CLARK Title SUPV'. GEOLOGIST Signature t 'U---------- Phone 303 - 236 - 5793 Date C VO ( /0 9 Commission Use Only Permit to Drill pp API Number: Permit Approval See cover letter for other Number: 2L 1 •- 50- 30/ -- lrt x/ Z. -!� Date: O (requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed melba e, as by rates, or gas contained in shales: Other: Samples req'd: Yes[ ' No ❑ Mud log req'd: Vesta' No❑ H YesE No Directional svy req'd: Yes❑ No[ * L " / 1] 1 r v .en (J ( / It VVV / APPROVED BY THE COMMISSION DATE: COMMISSIONER Form 10 .401 Revised 12/2005 Submit in Duplicate,, .5 CFI ,:*_ 041 Permit to Drill, Form 10 -401 RECEIVED MAR 1 6 2009 AOGCC Permit to Drill. Form 10 -401. Wainwright #10 Alaska Oil & Gas Cons. Commission March 04, 2009, Page 5 of 25 ORIGINAL Anchorage RECEIVED 1 STATE OF ALASKA 0 ALASKA OIL AND GAS CONSERVATION COMMISSION MAR 0 9 2009 PERMIT TO DRILL �o�� 006 Alaska Oil & Gas Cons. Commission la. Type of Work 1b. Current Well Mac Exploratory im • Development OII 1 a Specify If well le prOPONd foRncnorage Drill • RedrAi a Slratigreehic Teel ❑ Service In Developmefht Oat ~❑ Otelbed MOthan0 ® • Oa$ Hydrates Re -entN Multiple Zone rrI� Slnde rzhe Cl Stele C a 0 2, Opierator Nam — - __ J��' S. Bond: Blanks( 21 - Single Well ❑ 11. Well Norm and Number: US Geological Survey -DOI Bond No, DOI, SELF - INSURED Wainwright 10 8. Addreiu; •. Pro eD 12. leldrPoolt�)' - + ' PO Sox 2304 8, MS 40d, Denver Federal Center Ma i 3000 e r gyp 3000 Denver, GO 80275 4e Looaddn or Weir (Oo ernmerdal Seater): 7. Properly Desl9nation: Surface: PAIRS: Urnlat T1 5N R32W, Seri. 25 North Slope Borough Top or Productive Horizon; FNL :600', FEL :1070' O. Lel yr Permit: 13, 8p e m+l! $ SR 70°3740,55' N 100 9 28.88'W Total Ds r: 0, ACM In PMPerLY: 14. Dlatanea to Nearest Vertical Well; 3000' Pr 12 4b. Loran f Pane Coordinates); 10. KB Dweaon 15. Detente to Nearest Well Surface, ' is • -1 .. 6084073.859 6 (Height above G1): 5 r feat Within Pool: 5 0 00 r 15. DaM a: t9e ated walla: caper T •• mum r•- . • • - memo, n • g tee ' T • . A Max Hale Angle: degrees Downhole: 3.2 9 3 Surfa 0 11, using Program: apaatAaarbons Tap • Setting t)epth - - - Cement Quantity, al or seeks -- - - Hde Casing Weight Oracle Coupling Len •Ih MD 1147 MD , TV:1 (Including stage dela) - - - 1 , - a 1 - f 1 Cu, L•) . PPE 10. PRESENT WELL CONDITION SUMMARY (To be completed for R Ill and Re•Enhry Open Iona) Totes Depth MO (It): Toast Depth TVD (It): w - T • ae • .: F , 1: Junk Imaaured): , Geeing Length Illgnr MD TVD Conauct lStniclural (� r • STAB +a C} \ as 7 "` - T late _ - WAIMIIIIIN Production IIIIIIIIMPO / MOSIMINIMS Liner Parlbretion Depth MO ((): A Perrnradon Dept IVIO (I1) : -- -- i ■••■ 20. Attachment.: Pl) ng PN M BQP WWI ■ print, Progrvn Time v. Deg Plat Shallow Hazard Analylla E Property Piet i Divert& Sketch ► :*, Seabed Report Drilling Flute Program 01 20 A/C 25.050 regulremenra Ei 21, Verbal Approval: Commission Representative: Dale 22. 1 hereby certify Motels foregoing la true and oktreCV. Contact Printed Name ate' CLARK TI S SLTPV' . GEOLOGIST Sigrahre ,.-r i Phone 303-236-5793 its 0 /0 40 9 Commraalon Use Only Permit to Driil p API NLJDSP 2 ppro sae o ver Inter Tor other Number: / - j5" so 3c / - � / Z- -�._ Da requirement,. 1 Gorrdie:no of appraval : If boar 14 meaked, ay not be used to explore rar, test, or produce oaalbed methane, gee hydrates, or oat oontelnad In evaiea:I Odd; Samples req°d: Yeeff No Mud tog raga: Yss► Nc HAIMOauret: Veal: [] Nor dlreollonr svrrec Yea No APPROVE) SY THE COMMISSION DATE: , COMMISSIONER Fort 10.401 Revised 12/2005 Submit In Duplcate • TOM MORTENSEN ASSOCIATES, LLC ENVIRONMENTAL PERMITTING & MANAGEMENT P.O. Box 113192 ANCHORAGE, ALASKA 99511 -3192 • TEL (907) 345 -5789 • Fax (907) 345 -3575 RECEIVED MAR 1 6 2009 °k s Oil & Gas Cons. Commission March 12, 2009 4nch3race Alaska Oil & Gas Conservation Commission 333 W. 7th Ave., Ste. 100 Anchorage, Alaska 99501 Attn.: Mr. Steve Davies , Senior Petroleum Geologist Re: Wainwright Coal Bed Methane Exploration. Original Signed Forms 10-401 and 10-411 for Proposed Wells Wainwright 10 and 11. On March 9"' I hand delivered the applications for Permits to Drill two exploration wells for coal bed methane within the village of Wainwright. The wells will be drilled by the US Geological Survey as the Operator, in corporation with the Bureau of Land Management. The original signed forms 10-401 and 10-411 were not included in the two applications on March 9 The original forms have now been received and are attached to this letter. Sincerely, /Au*-0" Thomas W. Mortensen cc: Arthur C. Clark, USGS, Denver. Bob Fisk, BLM, Anchorage. Teresa Imm, ASRC, Anchorage. SURVEYED TOWNSHIP 15 NORTH,RANGE 32 WEST OF THE UMIAT MERIDIAN, ALASKA STATUS OF PUBLIC DOMAIN LAND AND MINERAL TITLES TI TA RSi. W. VAC J. MTP ..,..r,g.t .t m OT !TRAM / SUPPL Sec 24, 25 Products.. R.- II "' PERMITTED WELLS ....ft... � •� _ INDE% t0 Sd81KWTEp T111CT5 / - 114.1.41 Sr ,..VR /*PM MTH Ka MI 1111T ,/ j a lgor Corp MC r u _ 1444A,4111 / DUI AD May e>•�w�e>_ 4 4 P / ffirffl �� a Cli. yss 4411. Tr A sT w r y u .r i4- 24.011- War, MP_ P�£PP :Mt PA . 'LPIr j 24 ■ . ,� .14RYAATO 44W AFT/1111. Mr LtASL, _ #‘ 1. / i.wtarq►t ArC.t' FSYf'.d eeptt3+1.17_FR '. eyeLtu •+�r ` + V / Ta.aa its w. y e oneo ∎ A 40 OF wycycc.wcow oocw.eArs • / SS C 001 O'NAJ N•I.v tr l C er.rh G r.C..... + =_ / ■vTATT. / .t 4 441:..., A.. T1 / a±. • 1 b it -.. - -- Well #11,Offset - // Well #10 Offset f / - - . - -- -- ./ We mwriera / IrM, — — / i 1,...... / 1tr.z....r.. ;- PROPOSED WELLS #10 and #11. RECEIVED SURFACE ESTATE OWNER: MAR 2099 OLGOONIK CORP. , filaska ail & has Goes. commission -I SUBSURFACE ESTATE OVyNER: Anchorage FEDERAL, BLM No, LI Mar _Meg SS .F114.44rSOAL4 KALE 'rZ T -- Ia 1 - 11 11 IAA.. a... r.. :�'. N » 3M nww.. ll to. 11111111111 RUM. 14 _XI r . .. . b i .»»».. N r. .,M N.N» Wh. sd.MN w»...w .6.a1 rnr. +...+..►nM ''. • • TONI MORTENSEN ASSOCIATES, LLC ENVIRONMENTAL PERIVIITTIN G & MANAGEMENT P.O. BOx 113192 ANCHORAGE, ALASKA 99511-3192 • TEL (907) 345 -5789 • FAx (907) 345 -3575 March 12, 2009 Alaska Oil & Gas Conservation Commission 333 W. 7th Ave., Ste. 100 Anchorage, Alaska 99501 Attn.: Mr. Steve Davies , Senior Petroleum Geologist Re: Wainwright Coal Bed Methane Exploration. Original Signed Forms 10-401 and 10-411 for Proposed Wells Wainwright 10 and 11. On March 9 I hand delivered the applications for Permits to Drill two exploration wells for coal bed methane within the village of Wainwright. The wells will be drilled by the US Geological Survey as the Operator, in corporation with the Bureau of Land Management. The original signed forms 10-401 and 10-411 were not included in the two applications on March 9 The original forms have now been received and are attached to this letter. Sincerely, /A4•440.8 Thomas W. Mortensen cc: Arthur C. Clark, USGS, Denver. Bob Fisk, BLM, Anchorage. Teresa Imm, ASRC, Anchorage. • • Application for Permit to Drill. State of Alaska, Alaska Oil & Gas Conservation Commission Permit to Drill. Application Summary. Well Name and Number: Wainwright #10, (Exploration, Offset Well) Well Location Area: North Slope Borough, Airport at Wainwright. Well Location Legal: MTRS: Umiat T15N R32W, Sec. 25. FNL:500' FEL:1970' NAD83 Lat.: 70 °37'49.55 "N Long.: 160°1'29.69"W ��2 17 State Base Plane Coordinates. .5.1P e 1"3- r/ e e Zone 6 ,-, 7 x- 1394054.391 1/457 63 y- 6084073.859 (p o i3/ 3 32 . yz o Purpose of Well: Coal Bed Methane, Exploration offset well. <<1 Waivers Requested: Bonding requirements of 20 AAC 25.025, • Blowout prevention equipment requirements of 20 AAC 25.035. • Well bore survey requirements of 20 AAC 25.050(a)(2). • Well site seismic survey requirements of 20 AAC 25.061(a). • Gas detection requirements of 20 AAC 25.066. Well Spacing Exemption Requested: • Requested exception for the well spacing requirements of 20 AAC 25.055(a) for proposed wells Wainwright #10 and #11 Proposed Depth: MD: 3,000' TVD: 3,000' Survey: Conduct geophysical logs (caliper, gamma, resistivity, density, sonic) Property Ownership: Surface: Olgoonik Corp. Sub - surface: BLM Applicant / Operator: USGS. AOGCC Permit to Drill. Form 10 -401. Wainwright #10 March 06, 2009, Page 1 of 25 Office Project 19 March 2009 INPUT OUTPUT Geographic, NAD83 State Plane, NAD27 5007 - Alaska 7, U.S. Feet Accuracies of conversions from NAD 83 to NAD 27 are typically 12 to 18 cm. Wainwright #10 1/1 Latitude: 70 37 49.55 Northing/Y: 6084332.420 Longitude: 160 01 29.69 EastingiX: 940314.031 Convergence: 1 51 59.76104 Scale Factor: 0.999965601 Datum Shift (m.): Delta Lat. = 57.502, Delta Lon = - 126.331 Remark: Corpscon v6.0.1, U.S. Army Corps of Engineers • III Application for Permit to Drill. Contents of Application Application Summary. Contents of Application. Project Description and Overview. Permit to Drill, Form 10 -401. Designation of Operator, Form 10 -411. Figure #1. Wainwright Townsite. Plat T15N R32W UM. Figure #2. Location of Proposed Offset Wells #10 -11. Wainwright Townsite. Plat T15N R32W, Sec 24, 25 UM. Figure #3. Location of Proposed Offset Wells #10 -11. Wainwright, Aerial Photo. Figure #4. Location of Proposed Offset Wells #10 -11 Shown with the Runway Protection Zone, Wainwright Airport. Figure #5. Location of Proposed Offset Wells #10 -11, Spacing Exemption. Plan View. Explanation of land Ownership shown on Figures #1 and #2. Plat T15N R32W. Wells #10 -11. Permission to Enter Lands and Drill from the Land Owners: • Surface Estate: Olgoonik Corp. • Subsurface Estate: BLM. Requested Waivers and Drill Spacing Exemptions. Bonding requirements of 20 AAC 25.025, • Blowout prevention equipment requirements of 20 AAC 25.035. • Well bore survey requirements of 20 AAC 25.050(a)(2). • Well site seismic survey requirements of 20 AAC 25.061(a). • Gas detection requirements of 20 AAC 25.066. AOGCC Permit to Drill. Form 10 -401. Wainwright #10 March 06, 2009, Page 2 of 25 • • Well Spacing Exemption Requested: • Requested exception for the well spacing requirements of 20 AAC 25.055(a) for proposed wells Wainwright #10 through #11. Figure #6. Diverter Diagram. Figure #7. Well Spacing Exemption Checklist. Figure #8. Letter from the President of Olgoonik Corp. regarding the public involvement and knowledge of the drilling program in Wainwright. Drilling Plan • Offset Wells. • Logging. • Decommission wells in 2009 Drilling Fluid Plan Figure #9. Depth v Time Graph, Offset Well. Borehole Sampling. Well Closure Procedures. Other Permits • DNR Temporary Water Use Authorization for 4,000gpd, 150,000 gal total. ACMP B -List GCD -8, and No Review Required decision. • ADEC ODPCP Exemption. • ADEC Solid Waste Disposal for cuttings, Plan Review • ADEC Drill Fluids and Produced Water Disposal. • NSB Development Permit, Planning Department. • NSB Dept. of Civil Works, approval to use of landfill for cuttings disposal. • FAA Determination of No hazard to Air Navigation, Wainwright Airport. AOGCC Permit to Drill. Form 10-401. Wainwright #10 March 06, 2009, Page 3 of 25 • Project Description and Overview Alaska Rural Energy Project Wainwright, Alaska, 2009 The Alaska Rural Energy Project is currently conductng a multi -welt production test in Wainwright at the same location (Olgoonik Wareyard) as where exploration and testing activities occurred in June -July 2007. All wells have been be completed in an 8 ft coal seam encountered at a depth of -1242 to 1250 ft. The test array consists of one central production well (10" hole with 6" steel casing cemented to -1240 ft, 6" open -hole completion through the coal zone) and 4 monitor wells (6" hole with 2.5" PVC casing, 10 , ft of slotted PVC screen in the coal, sand packed around screen, annular area grouted (abandonment bentonite and cement) to land surface). Additionally, a separate well (which is currently permitted) will be drilled at the Wainwright landfill. Two additional off -set wells (proposed Wainwright #10 and #11) will be drilled during the summer 2009 season. For all three off -set wells a 6 inch steel . surface casing will be set and cemented to a depth of -50 ft and a 6 inch open hole drilled to a depth of -1500-2000 ft. Core samples will be collected from the 1242 -ft coal . bed and associated roof and floor rock. Geophysical Togs (caliper, resistivity, gamma, density, sonic) will be run in the well and permeability tests will be conducted after which the wells will be plugged and abandoned with bentonite grout and cement. The following information will be gathered from these wells: • Lateral extent and continuity of individual coal seams between original site and landfill site (- 2 miles), and the airport runway in Wainwright. • Confirm gas content of the 1242 -ft coal bed • Accurate determination of hydraulic conductivity and transmissivity • Storage coefficient (amount of water to be produced) • Detailed produced water chemistry Drilling is scheduled to begin on or about June 1, 2009 and completed on or about August 10, 2009. The first well drilled will likely be the landfill well. Exact start and finish dates for each well cannot be accurately predicted at this time. The offset wells will be abandoned in 2009. AOGCC Permit to Drill. Form 10 -401. Wainwright #10 March 06, 2009, Page 4 of 25 lb STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION PERMIT TO DRILL 20 AAC 25.005 1 a. Type of Work: 1 b. Current Well Class: Exploratory Eil Development Oil ❑ 1 c. Specify if well is proposed for: Drill ® Redrill ❑ Stratigraphic Test ❑ Service ❑ Development Gas ❑ Coalbed Methane ® Gas Hydrates ❑ Re -entry ❑ Multiple Zone ❑ Single Zone ❑ Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket Single Well ❑ 11. Well Name and Number: US Geological Survey -DOI BondNo. SELF - INSURED Wainwright 10 3. Address: PO Box 25046, MS 406, Denver Federal Center 6. Proposed 3 0 0 12. Field/Pool(s): Denver, CO 80225 MD: ' TV 3 0 0 0 ' 4a Location of Well (Governmental Section): 7. Properly Designation: Surface: MTRS: Untiat T15N R32W, Sec. 25 North Slope Borough Top of Productive Horizon: FNL:500', FEL:1970' s. Lanc[ Penmt: 13. Approximate June m at S 2 009 70 "N 160 °1'29.69'W N/A Total Depth: 9. Acres in Property: 14. Distance to Nearest Vertical Well: 3000' Proper: 4b. Location of Well (State Base Plane Coordinates): 10. KB Elevation 15. Distance to Nearest Well surface: x .1394054 .391y 6084073 .859 zone 6 (Helght above GL): 5' feet Within Pool: 5000' 16. Deviated wells: Kickoff depth: feet 17. Maximum Antidpated Pressures in psig (see 20 AAC 25.035) Maximum Hde Angle: degrees Downhde: 12 93 Surface: 0 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hde Casing Weight Grade Coupling Length MD TVD MD TVD (inducing stage data) 9 7/8 6 5/8 18.97 20 0 80 30 cu. ft. ppt 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re -Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD CanductorlStructural Surface Intermediate Production liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attadvnents: Filing Fee ❑ BOP Sketch ❑ Driling Program 17 Time v. Depth Plot ® Shallow Hazard Analysis gi Property Plat M Diverter Sketch © Seabed Report ❑ Dulling Fluid Program IN 20 AAC 25.050 requirements 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct Contact Printed Name ARTHUR CLARK Title SUPV' . GEOLOGIST Signature Phone 303 - 236 -5793 Date Commission Use Only Permit to Drill API Number. Permit Approval 'See cover letter for other Number: 50- Date: requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce ooalbed methane, gas hydrates, or gas contained in shales :❑ Other Samples req'd: Yes❑ No❑ Mud log req'd: Veep No❑ H measures: Yes❑ No❑ Directional svy req'd: YesO No❑ APPROVED BY THE COMMISSION DATE: , COMMISSIONER Form 10 -401 Revised 1212005 Submit in Duplicate Permit to Drill, Form 10-401 AOGCC Permit to Drill. Form 10.401. Wainwright #10 March 06, 2009, Page 5 of 25 • • SURVEYED TOWNSHIP 15 NORTH,RANGE 32 WEST OF THE UMIAT MERIDIAN, ALASKA STATUS OF PUBLIC DOMAIN LAND AND MINERAL TITLES / 1154 Alt MTP SUPPL Sec 24.25 PERMITTED WELLS / ir TO SEGNSOITO TRACTS ex 0111, 7=4 / UN 00. 11•1111111ME1111111■11 111111111•11HIMI11111•1111•11 r 1" 4 -'*' IMUNOMMINEw / MUM / / Aso rr e 24 " .19*(0. LAM natAt.Le PLASSL. _ maxsArLot AVIJCPPO "pr., mioaragor_____ 4 11.,;•• 4103.40A4707 irmows / 911., IFS gk tsyt Own 1.0**es r , ven, ,ve-ar / IA r.. d . „ Well #11,Offset V \Well •10 Offset _ - / ommON / •."'" / PROPOSED WELLS #10 and #11. / SURFACE ESTATE OWNER: OLGOONIK CORP. SUBSURFACE ESTATE ONER: FEDERAL, BLM hatee,_Da_greszaist.a.... „ WPM MOW —4Z-X Figure #2. Location of Proposed Offset Wells #10-11. Wainwright Townsite. Plat TI 5N R32W, Sec 24, 25 UM. AOGCC Permit to Drill. Form 10-401. Wainwright #10 March 06, 2009, Page 8 of 25 • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION DESIGNATION OF OPERATOR 20 AAC 25.020 1. Name and Address of Owner: Bureau of Land Management, 222 West Seventh Ave.. #13, Anchorage, AI( 99513 2. Notice is hereby given d a designation of operatorshp for the oil and gas property described below: Legal description of property: We Name and Number. Wainwright #10, (Exploration, Offset Well) Well Location Area: North Slope Borough, Airport at Wainwright Well Location Legal: MTRS: Umiat T15N R32W, Sec. 25. FNL:500' FEL:1970' NAD83 Lat.: 70 °3T49.55 "N Long.: 160 °129.69'W State Base Plane Coordinates. Zone 6 x- 1394054.391 y- 6084073.859 Property Plat Attached: 3. Name and Address of Designated Operator. US Geological Srvey, PO Box 25046, MS 408, Denver Federal Center, Denver, CO 80225 4. Effective Date of Designation: 5. Acceptance of operatorship for the above described property within all attendant responsibilities and obligations is hereby acknowledged: Signature Date Printed Name Title , 6. The Owner hereby certifies that the foregoing is true and correct (attach Power of Attorney or other evidence of authority of person signing): Signature Date Printed Name Title _ 7. Approved: Commissioner Date Approved: Commissioner Date Approved: Commissioner Date (Requires approval by two Commissioners) Form 10-411 Ravi 2/2005 Submit in duplicate Designation of Operator, Form 10-411 AOGCC Permit to Drill. Form 10 -401. Wainwright #10 March 06, 2009, Page 6 of 25 • • SURVEYED TOWNSHIP 15 NORTH RANGE 32 WEST OF THE UMIAT MERIDIAN, ALASKA STATUS OF PUBLIC DOMAIN j LAND AND MINERAL TITLES %/ SUPPL SEC 24, 25 CHUKCHI / ' "" S/4 / FOF Xr.NS,I1C //NG 1,55 ,,.. ON 0'1 OF VI / 1J0,11 LA 'S *I -.VAN t0 (YASS,CA:. 1.2HA3; SWAN ..,/(1 ON, ryag� +V6er,-, %- MF2N /O N.,' OP /.HSU- AlkarS IX , 4.5. 'It . MF. Stk3 aw' f' b n.2/ir. ar�vr.r nl,'xfn , rrrc. . i OM O v a x cm` Kd / ' 9d / Y w -2B . PPP-A Secs 24 8 .2, / bl h Ater..e "Y° /l 4?,417 r ws nk Sse set % / d l 4. tit.. 6 ' / 111 NI h 1.1 �` :/. '�. iYoin wr j / 25 Figure #1. Wainwright Townsite. Plat TI5N R32W UM. AOGCC Permit to Drill. Form 10-401. Wainwright #10 March 06, 2009, Page 7 of 25 • Permitted, drilled ells #3 #S. • e • • Production Test • ' � , and Monitoring. Ito At OC yard. • r 5 • , • • r ' ; • • • ,� f • Wainwright 0 a r • Pro iI s sed Wells 00 and 011. Offset southwest of Runway. rm.go 02006 C ,tuI0tobe 220 t q 0 2006 Tele Atom Figure #3. Location of Proposed Offset Wells #10 -11. Wainwright, Aerial Photo. AOGCC Permit to Drill. Form 10 -401. Wainwright #10 March 06, 2009, Page 9 of 25 I • 11, Nlir r .•iy /II li • 6 s rf ii - p• lb 0 A }.:. r • • Wells #10 and #11_ RPZ: Runway • et. Protection Southwest of Runway. Zone RPZ: Runway (Ultimate) Protection Zone Runway (Existing) 04 Airport •roperty Boundary #10 Y m.o. 4:407 C'VsI[3 L ®1 GOOgie f.py p1 4MIS Ino• A is [J Figure #4. Location of Proposed Offset Wells #10 -11 Shown with the Runway Protection Zone, Wainwright Airport. AOGCC Permit to Drill. Form 10 -401. Wainwright #10 March 06, 2009, Page 10 of 25 • I 4 4 a WAI N GHT 3 (Drilled> " {) 0 ar n J • ` .__, r - fiti 3 EP . +'; 41. n :%'..--- L YALA F:A 47.5% '.'_ D • !, tl °a e • . l n • . 0 Wain.oriyht 0 ` 4 �n r 0 1 r r • +• WAINWRIGHT 11 (Pr, posed) Y WAINWRIGHT 10 IPruposudl fl . Google 300311 Image o 2000 Dip.I.IG oI I 4.'000 Tele Fola Figure #5. Location of Proposed Offset Wells #10 -11, Spacing Exemption. Plan View. AOGCC Permit to Drill. Form 10 -401. Wainwright #10 March 06, 2009, Page 11 of 25 • • Explanation of Land Ownership. Plat of T15N R32W. UM Section 24 and 25. Patent Number 50 -77 -0089 conveyed surface estate to Olgoonik Corporation on the following parcels of land (refer to plat): The subsurface estate was reserved to the Federal Government. Patent Number 50-85 -0526 conveyed the surface estate to Olgoonik Corporation on the following parcels of land (refer to plat): USS 4418, Tr B The subsurface estate was reserved to the Federal Government. AOGCC Permit to Drill. Form 10 -401. Wainwright #10 March 06, 2009, Page 12 of 25 • • Permission to Enter Lands and Drill from the Surface Land Owner. Surface Estate: Olgoonik Corp. June 7, 2007 Ma. Beth Maclean Bureau of Land Management 222 West Seventh Avenue, #13 Anchorage. AK 99513 Dear Ms. Maclean: Olgoonik Corporation (OC) is supportive of your efforts to evaluate coalbed natural gas potential of Wainwright as outlined in the town meetings you have held in Wainwright. We appreciate the effort that you have put forth on this project on behalf of our community. '— OC has land entitlements within the city limits of Wainwright and also outside of these boundaries. OC recognizes the benefits that could occur from having a local, energy source available for the community. We recognize the cooperative work planned between Federal, State, and the private sector and are pleased to be a part of this effort in conjunction with Arctic Slope Regional Corporation. We appreciate the fact that the Bureau of Land Management and US Geological Survey are making a good faith effort to involve local communities in locating local sources of energy in rural Alaska. Sincerely, Vgillt. Lucille Mayer President, Olgoonik Corporation Cc: Teresa Inun, Arctic Slope Regional Corporation AOGCC Permit to Drill. Form 10 -401. Wainwright #10 March 06, 2009, Page 13 of 25 • Waivers and Drill Spacing Exceptions Alaska Rural Energy Project Wainwright, Alaska, 2009 The Permit to Drill application includes requests for waivers for proposed wells Wainwright #10 and #11 for the following: • The bonding requirements of 20 AAC 25.025, • The blowout prevention equipment requirements of 20 AAC 25.035 ' • The well bore surveys requirements of 20 AAC 25.050(a)(2), • The well site seismic survey requirements of 20 AAC 25.061(a), • The gas detection requirements of 20 MC 25.066. The Permit to Drill application includes a requested exception for the well spacing requirements of 20 MC 25.055(a) for proposed wells Wainwright #10 through #11 Information in Support of Requested Waivers and Well Spacing Exemptions Bonding Waiver Request, The operator is the US Department of the Interior, Geological Survey. The Department is self- insured under the Federal Tort Claims Act, 28 USC Sec. 26.71. BOP Waiver Request. For the previous permit to drill at this location at the Village of Wainwright #1 through #8, the operator (DO1) examined all well logs for the wells within the general vicinity of the Wainwright #1 well. They included Tunalik, Kugrua, and Peard Bay. In the upper 3,500 feet of each of these wells, measurable gas readings were associated with coal seams only. Mud weights were kept between 9 -10 pounds per gallon (ppg) above 3,500 feet in each well indicating that no overpressured conditions were expected or . encountered. Seismic information shows no indication of the presence of shallow gas. In addition, drilling records and mud log information from the nearest exploration wells show no indication of abnormal pressure. Additionally, the Wainwright #1 and #2 wells that were drilled to a depth of 1,613' in 2007 encountered no gas kicks. The Wainwright #3 through #8 wells that were drilled to a depth of 1,200' +1- in 2008 encountered no gas kicks AOGCC Permit to Drill. Form 10 -401. Wainwright #10 March 06, 2009, Page 14 of 25 3 *D °;d0 a s' G) sg C) o 2. C) Sn N 7' - 3 o s Drilling Rig DOI Drilling Operation Diverter Head so CO o °' .— 3.5" core rod Mfg. Washington Rotating Head Ui o $ p cn ., N _ Valve o - '_ 1 ° i. 100 psi rubber seal • co Diverter_ T- fitting <, ;' To holding pit v head ♦ • 4, ► Threaded coupler --i 6 5/8" OD X.y,, ` Valve Conductor " b ,, !, casing ts losio , ) i 5 LL ,�( Fluid discharge to /'a" to ' recirculation pit °' "' .1 40' -80' bls ---- -► ^ l Diverter photograph 4P • The proposed 2009 drilling of Wainwright #10 and #11 will use a weighted mud system typically ranging from 9.0 ppg -9.8 ppg. If over - pressured gas is encountered, a 10.5+ , ppg mud will be circulated down the well to stop the gas from venting. Optionally, a cement slurry weighing from 13 ppg -15 ppg could be mixed and pumped through the drill steel from the bottom to the surface to kill the well. In this situation, the well would be considered abandoned. If a gas kick were to be encountered, the amount of gas that can safely be vented . during drilling is considerable. The operator is proposing to utilize a Washington stripping head sealing 3'/2" drill pipe on 6 5/8" casing, and a 40 foot by 4" ID blooey line. Well Site Seismic Survey Waiver Request. DOI, the operator, has examined two seismic surveys in the Wainwright area. The first is an E -W line that runs from the S. Meade well to the Arctic coast approximately 5 -10 miles SW of Wainwright. The second is a NE -SW line that parallels the coastline from north of the Peard Bay well to north of the Tunalik well and runs directly through Wainwright. These surveys, while shot for deeper targets, do not show any shallow hazards in the vicinity of the proposed drill site. Gas Detection Requirements, H2S and Methane Waiver Request For the previous permits to drill at this location at the Village of Wainwright (Wainwright #1 through #8) the operator (D01) examined all well logs for the wells within the general vicinity of the Wainwright #1 well. They included Tunalik, Kugrua, and Peard Bay. In the upper 3,500 feet of each of these wells, measurable gas readings were associated • with coal seams only. Mud weights were kept between 9 -10 pounds per gallon (ppg) above 3,500 feet in each well indicating that no overpressured conditions were • expected or encountered. The drilling will be done with a portable truck - mounted drilling rig. This equipment has no enclosures where methane could accumulate sufficiently to pose a risk of explosion or fire, or where a methane detector could practicably be located. Additionally, the Wainwright #1 and #2 wells that were drilled in 2007, and the Wainwright #3 through #8 wells drilled in 2008 encountered no gas kicks. Requested exception for the well spacing requirements of 20 AAC 25.055(a) for proposed wells Wainwright #10 and #11. Well #10 and #11 both require a spacing exception because they are closer that 3,000' to state submerged lands, Chukchi Sea and Wainwright Inlet. AOGCC Permit to Drill. Form 10 -401. Wainwright #10 March 06, 2009, Page 16 of 25 1 • • Jute 7, 2007 Ms. Beth Maclean Bureau of Land Management 222 West Seventh Avenue, #13 Anchorage, AK 99513 Dear Ms. Maclean: Olgoonik Corporation (OC) is supportive of your efforts to evaluate coalbed natural gas potential of Wainwright as outlined in the town meetings you have held in Wainwright. We appreciate the effort that you have put forth on this project on behalf of our community. OC has land entitlements within the city limits of Wainwright and also outside of these boundaries. OC recognizes the benefits that could occur from having a local, energy source available for the community. We recognize the cooperative work planned between Federal, State, and the private sector and are pleased to be a part of this effort in conjunction with Arctic Slope Regional Corporation. We appreciate the fact that the Bureau of Land Management and US Geological Survey are making a good faith effort to involve local communities in locating local sources of energy in rural Alaska. Sincerely, volitaivioiti Lucille Mayer President, Olgoonik Corporation Cc: Teresa Imm, Arctic Slope Regional Corporation Figure #8. Letter from the President of Olgoonik Corp. regarding the public involvement and knowledge of the drilling program in Wainwright. AOGCC Permit to Drill. Form 10 -401. Wainwright #10 March 06, 2009, Page 18 of 25 ! . Drilling Plan. Alaska Rural Energy Project Wainwright, Alaska, 2008 Airport Offset Wells 1. Move equipment to airport sites. Drill 9 7/8" hole through surficial deposits to depth of -50'. Set and cement 6 5/8" schedule 40 steel surface casing. 2. Mud rotary 6" open hole (no core) to between 1500 and 2000 ft. 3. Core will be collected from the 1242 -ft coal bed and associated roof and floor rock ( -100 ft total core) 4. Conduct geophysical logs (caliper, gamma, resistivity, density, sonic) • 5. Conduct single -well permeability (drawdown- recovery) test 6. Abandon well with abandonment bentonite grout and cement. AOGCC Permit to Drill. Form 10 -401. Wainwright #10 March 06, 2009, Page 19 of 25 • 1 Decommission Wells • Abandon well with abandonment bentonite grout and cement. • Clean and Pack equipment. Transport equipment from Wainwright via barge. AOGCC Permit to Drill. Form 10 -401. Wainwright #10 March 06, 2009, Page 20 of 25 • 0 Borehole Sampling. Alaska Rural Energy Project Wainwright, Alaska, 2009 Airport Offset Wells During the drilling of the landfill offset well, mud -gas will be continuously monitored to detect the presence of hydrocarbons in the drill mud. Borehole cuttings will be collected, described, washed, and bagged at 10 -ft intervals. . AOGCC Permit to Drill. Form 10-401. Wainwright #10 March 06, 2009, Page 21 of 25 • • Days 0 • 0 1 � 2 3 4 5 6 • 9 -500 — Setandcement surface casing - 1000 Well abandonment _ - 1500 Q ° -2000 -2500 -3000 Geophysical logging -3500 - Figure #9. Depth v Time Graph, Offset Wells at the Wainwright Airport. AOGCC Permit to Drill. Form 10 -401. Wainwright #10 March 06, 2009, Page 22 of 25 • Drilling Fluid Plan Alaska Rural Energy Project Wainwright, Alaska, Summer 2009 The hole will be drilled using standard fresh water bentonite drilling fluids. Additives to be used include (all listed products are NL Baroid trade names): • Quick -Gel high yield bentonite (hole stability, circulation control, clay -shale control) • Aqua -Gel bentonite (hole stability, circulation control, mud - density control) • Pac -L and Pac -R powdered cellulose polymer (clay -shale control, water loss, viscosity control) • EZ mud liquid polymer (clay -shale control, water loss, viscosity control) • Pennetrol liquid detergent (bit cleaning, control clay build up around bit face and teeth) Drill fluids will be monitored for viscosity, weight, and temperature on a full -time basis. Drilling fluids will have cuttings removed and will be recirculated via a 1000 gallon trailer- mounted shaker system incorporating shaker screens and centrifugal desilting cones. Cuttings and used drill mud will be contained in above - ground tanks. At project's end, cuttings /mud will be disposed of at the Wainwright wastewater disposal pond. Rotary drilling and reaming operations will be conducted using a rig- mounted 5' /a" X 8" 350 gpm, duplex mudpump and a Gardner - Denver 5" x 6 ", 200 gpm, duplex mudpump. AOGCC Permit to Drill. Form 10 -401. Wainwright #10 March 06, 2009, Page 23 of 25 • • Well Closure Procedures Alaska Rural Energy Project Wainwright, Alaska, Summer 2009 During drilling and coring operations, aquifers will be protected by mixing bentonite and polymer additives in the drill mud specifically designed to seal and protect water - bearing strata. Encountering water bearing strata that could contain a useable aquifer is not expected since the drilling will be within the permafrost. Upon completion of the airport offset wells, the wells will be plugged from total depth to 100 ft below land surface (Ns) with an abandonment bentonite grout mixture mixed at land surface with a grout plant and pumped from the bottom up. The top 100 ft of the well will be filled with Arctic -blend cement. AOGCC Permit to Drill. Form 10 -401. Wainwright #10 March 06, 2009, Page 24 of 25 1 Other Permits Alaska Rural Energy Project Wainwright, Alaska, Summer 2009 DNR Temporary Water Use Authorization for 4,000gpd, 150,000 gal total. ACMP B -List GCD -8, and No Review Required decision. ADEC ODPCP Exemption. ADEC Solid Waste Disposal for cuttings, Plan Review ADEC Drill Fluids and Produced Water Disposal. NSB Development Permit, Planning Department. NSB Dept. of Public Works, approval to use of landfill for cuttings disposal. FAA Determination of No Hazard to Air Navigation, Wainwright Airport. AOGCC Permit to Drill. Form 10 -401. Wainwright #10 March 06, 2009, Page 25 of 25 • TRANSMITTAL LETTER CHECKL WELL NAME `C/Ll- t 1-1 LLB ' `Z r /0 PTD# 209 - �> Development Service Exploratory Stratigraphic Test Non - Conventi onal Well -7 FIELD: ( // qj POOL: J Circle Appropriate Letter / Paragraphs to be Included in Transmittal Letter CHECK ADD -ONS WHAT (OPTIONS) TEXT FOR APPROVAL LETTER APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in Permit No. , API No. 50- - - . API number are between 60 -69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - - ) from records, data and logs acquired for well SPACING The permit is approved subject to •_a .liance with 20 AAC EXCEPTION 25.055. Approval to perforate . d .roduce / in'ect is contingent upon issuan of n co ervati• :.er approving a spacing exception. ` ' 3 „ e << c /.Su +'v assumes the liability of any prot st to th spacing exceptio4,that may occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Non - Conventional Please note the following special condition of this permit: Well production or production testing of coal bed methane is not allowed for (name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such water well testing program. Ne) z acs � 1�r Rev: 1/11/2008 6�� l �/� L l �9 12s �l� t4— - S 7 c g • • TRANSMITTAL LETTER CHECKLIST WELL NAME Ay / /1 CO Y( 5 / /6) PTD# 7, -� Development Service / Exploratory Stratigraphic Test Non - Conventional Well FIELD: POOL: Circle Appropriate Letter / Paragraphs to be Included in Transmittal Letter CHECK ADD -ONS WHAT (OPTIONS) TEXT FOR APPROVAL LETTER APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in permit No. , API No. 50- - - API number are between 60 -69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(0, all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - - ) from records, data and logs acquired for well SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION 25.055. Approval to perforate d produced inject is contingent upon issuance of a -. corservation , orcTer approving a spacing exception. Li � /6-1 / 5 v assumes the liability of any protest to the spacing exception4hdt may occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Non - Conventional Please note the following special condition of this permit: Well production or production testing of coal bed methane is not allowed for (name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such water well testing program. 1-61 -c .vtk�c t G ` Z ` !S 4 c- 51 4 / / C� Rev: 1/11/2008 l / CU ``e° WELL PERMIT CHECKLIST Field & Pool Well Name: WAINWRIGHT 10 Program EXP Well bore seg ❑ PTD #: 2090350 Company U S DEPT OF INTERIOR Initial Class/Type _ EXP / PEND GeoArea 890 Unit On /Off Shore On Annular Disposal ❑ Administration 1 Permit_fee attached NA 2 Lease _number appropriate No No lease_ involved: _BIM_ land. SPACING EXCEPTION NEEDED because of nearby shoreline (state - federal bound: 3 Unique well name and number Yes 4 Well located in _a_ defined pool No Exploratory CBM well 15 Well located proper distance from drilling unit boundary No SPACING EXCEPTION NEEDED: <150Q' of the shoreline, which is landownership change from Fed_to State_acreai '6 Well located proper distance from other wells No Nearest well wilt be Wainwright 11, -1850' to NNW. 5/27/2009: Draft text of exceptions order completed. 7 Sufficient acreage available in drilling unit Yes Only well in section 8 if deviated, is_wellbore plat_included NA Vertical w ell 9 Operator only affected party No Received designation of operator form on 3/16/2009 in which BLM_designates USGS as operator of the wen. X 10 Operator has_appropriate_bond in force No WAIVER_NEEDED_ Hearing regarding waiver of bond requirements required. _5/27/2009: _Draft text of exceptions 11 Permit_can be issued without conservation order Nto order completed. Appr Date 12 Permit_can be issued without administrativ_e_approval Yes SFD 5/27/2009 13 Can permit be approved before 15-day wait Yes • 14 Well located within area and strata authorized by_Injection Order # (put_IO# In comments) (For r NA 15 Ail wells within 1 /4_rnite area_of review identified (For service well only) NA 16 Pre- produced injector, duration of pre production less than 3 months_ (For service well only) NA 17 Nonconven, gasconforms to AS31.05.03QO 1.A),ta2.A -D) Yes Permafrost is about 1000' thick, No freshwater aquifers serve or will serve as sources of drinking water. 18 Conductor string_ provided Yes 6 -5/8" @ 80'. Engineering 19 Surface _casing_ protects_ all known USDWs NA No known US DWs. 20 CMT_voi adequate_to circulate on conductor & surfcsg Yes Adequate excess for conductor. 21 CMT_vol adequate_ to tie-inking string to surf csg NA 22 CMT_will cover all Known productive horizons No 23 Casing designs adequate for C,_T, B &pemmafrost Yes 24 Adequate tankage_or reserve pit Yes Plan states rig equipped with tanks. 25 if a_re- drill, has a_ 10-403 for abandonment been ap proved NA 26 Adequete wellbore separation proposed Yes Nearest proposed well_( Wainwright #11) 1020' away. 27 If diverter required, does it meet regulations Yes Will employ a rotating head. Rotating _head will protect driller's area and divert flow. Appr Date 28 Drilling fluid_ program schematic_&_ equip _list _adequate Yes Expected formation pressure 9.0 - 9.8EMW._ Provision to weight up to 10.5 ppg if needed. TEM 6/4/2009 29 BOPEs, do they meet regulation No BOP exception requested. Granted by CO 616. liN A 30 BOPE_press rating appropriate; test to(put psig in comments) NA 1 "�' ` 31 Choke_manifold complies w /API_ RP -53 (May 84) NA • 32 Work will occur without operation shutdown Yes 33 Is presence_ of H2S gas probable No 34 Mechanical condition of wells within AOR verified (For service well only) NA 35 Permitcan be issued w/o hydrogen sulfide measures Yes WAIVER REQUIRED for gas detection equipment. _ 5/27/2009_ Draft text of exceptions order completed. Geology 36 Datapresented on potential overpressure zones Yes Offset seismic and widely separated well control examined by operator: _ no evidence of any shallow drilling Appr Date 37 Seismic analysis of shallow g as zones Yes hazards are indicated. _ None encountered in previous Wainwright coal bed methane test wells. SFD 5/27/2009 38 Seabed condition surYey (if off - shore) NA 39 Contact name /phone for weekly_progress reports_ (exploratory only Yes Art Cla rk 303 - 236 -5793 Geologic Engineering EXCEPTION AND WAIVERS REQUIRED: Wainwright 10 will require an exception to 20 MC 25.055 (a)(2) because it will be 150' from the shoreline, which Commissioner. Date: Commissioner: Date t+ ner Date is a change in landownership between Federal and State acreage. Wainwright 10 may require an exception to 20 AAC 25.055 (a)(4) if Wainwright 11 is driller 4)4 first, because Wainwright 10 will be about 1,860' from Wainwright 11. WAIVERS REQUESTED from the following requirements: BOPE Equipment, well bore Or b w 6• goo survey, well site seismic survey, and gas detection. (Federal -State property line). Waiver needed from bonding requirements. 5/27/2009: Draft text of �` 9 exceptions order completed and sent to legal for review. SFD