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Home My WebLink About210-098 of 711, • 0"S'\ lyy eTHE STATE Alaska Oil and Gas Nom%"ice OfALAsKA.. Conservation Commission _` 333 West Seventh Avenue 1/4' '' ti' GOVERNOR BILL WALKER Anchorage, Alaska 99501-3572 �� Main: 907.279.1433 OF ALAS Fax: 907.276.7542 www.aogcc.alaska.gov January 20, 2017 Mr. Scott Kessler Land and Lease Manager Ormat Nevada, Inc 6225 Neil Road Reno,NV 89511-1136scitiap 1 JAN 2 - Dear Mr. Kessler: On January 19, 2017 Ormat Nevada Inc. (Ormat) provided a copy of its "End of Project Completion Report" for the Mt. Spurr geothermal exploration project involving three wells: - Spurr West 26-11 (PTD 2110690) - Lower Chaka 62-02 (PTD 2101170) - Upper Chaka 67-34 (PTD 2100980) Abandonment operations were completed during July 2016. The Alaska Oil and Gas Conservation Commission (AOGCC) was not available to witness the abandonment operations of these three wells. Based on our review of the information provided, the wells meet the requirements established in the approved sundry applications for abandonment of these wells. In lieu of location inspections, AOGCC accepted photographs of the three abandoned well locations taken after burial,site clean-up and reclaiming the locations to match the existing terrain. The photographs show the Mt. Spurr drillsites are in compliance with onshore location clearance requirements as stated in 20 AAC 25.170. The AOGCC requires no further work on the subject wells or locations at this time. However, Ormat remains liable if any problems occur in the future with these wells. Sincerely, Cathy °. Foerster Chair, Commissioner CIS° t, STATE OF ALASKA SEP 3 0 2016 ALASKA OIL AND GAS CONSERVATION COMMISSION WELL__ COMPLETION OR RECOMPLETION REPORT AN9 k-QG 1a.Well Status: Oil C i Gas SPLUG Other Abandoned • Suspended lb.Well Class: 20aac 25.105 20AAC 25.110 Development ] Exploratory L1 P`i.1•t l D GINJ Lj WINJ , WAC WDSPL __ No.No.of Completions: 1 • Service '" Stratigraphic Testa t, 2.Operator Name: 6.Date Comp.,Susp.,or14.Permit to Drill Number/ Sundry: Ormat Nevada, Inc. (Aband.:' 7 016 . 210-098/31(4,-Z'1( 3.Address: 7.Date Spudded: Ay..., 15.API Number: 6225 Neil Rd., Reno, NV 89511 / 9/21/2010 -'-',7;./1 r ,n./ �' 50- 283-20139-00-00- 4a.Location of Well(Governmental Section): �i'u.✓Y.r c•,--y i4-7:74P 8.Date TD Reached: 16.Well Name and Number: Surface: T14N R16W Section 34 • / F.5L/ 9/28/2010 Upper Chaka R 67-34 Top of Productive Interval: 9.Ref Elevations: KB: 2881 • 17.Field/Pool(s): 1 L�93�"f=SL / 1-6-4-' N/A � / /O./?rt' GL: BF: 4k.S u:s'r' L"..0 ,-fie i l e4-br14-t Total Depth: 10.Plug Back Depth MD/TVD: 18.Property Designation: ,D '' `Low / a( N/A State Lease ADL 391355 / • a lc.,/7<ic, to .0 7.it. 4b.Location of Well(State Base Plane Coordinates,NAD 27): A;s.'cf./4 11.Total Depth MD/TVD: 19.Land Use Permit: Surface: x- Y- a-�J�$29400 , y- _265g�$7 ,Zone- 5 1000 feet . N/A TPI: x- f3/��`� ') -'7`4y Zone- 12.SSSV Depth MD/TVD: 20.Thickness of Permafrost MD/TVD: Total Depth: x- . %r rZone- 5 N/A N/A 5.Directional or Inclination Survey: Yes [(attached) No 1 13.Water Depth,if Offshore: 21.Re-drill/Lateral Top Window MD/TVD: Submit electronic and printed information per 20 AAC 25.050 N/A (ft MSL) N/A 22.Logs Obtained: List all logs run and,pursuant to AS 31.05.030 and 20 AAC 25.071,submit all electronic data and printed logs within 90 days of completion,suspension,or abandonment,whichever occurs first.Types of logs to be listed include,but are not limited to:mud log,spontaneous potential, gamma ray,caliper,resistivity,porosity,magnetic resonance,dipmeter,formation tester,temperature,cement evaluation,casing collar locator,jewelry,and perforation record. Acronyms may be used.Attach a separate page if necessary .SCANNED MAR 0 6 2017 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 HWT 11.7 BLY Surf 100 Surf 100 • PQ 15 sacks @ 15ppg N/A 24.Open to production or injection? Yes Li No ( 25.TUBING RECORD If Yes,list each interval open(MD/TVD of Top and Bottom;Perforation SIZE DEPTH SET(MD) PACKER SET(MD/TVD) Size and Number): 2 3/8 STC 1000 ft N/A u%;0o>J -BeMP.6E-T4G4 26.ACID,FRACTURE,CEMENT SQUEEZE,ETC. DATE Was hydraulic fracturing used during completion? Yes No f ?/ZS/2 01 to Per 20 AAC 25.283(i)(2)attach electronic and printed information VERIFIED DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED It_ N/A N/A C'm..T' Al.ct6; I3 -L,_ 27. PRODUCTION TEST Date First Production: Method of Operation(Flowing,gas lift,etc.): N/A 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 -.-11.- Form ..'Form 10-407 Revised 11/2015 CONTINUED ON PAGE 2 Submit ORIGINIAL only ` z RBDMS '-t- ON IP 2016 -- rz- �� ,�� z.e._/7.1c_ IG s • 28.CORE DATA Conventional Core(s): Yes V No rj Sidewall Cores: Yes ` No V • If Yes,list formations and intervals cored(MD/TVD,From/To),and summarize lithology and presence of oil,gas or water(submit separate pages with this form, if needed).Submit detailed descriptions,core chips,photographs,and all subsequent laboratory analytical results per 20 AAC 25.071. Please see 2010 completion report for full information on core lithology, etc. 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD ND Well tested? Yes [ No {/ Permafrost-Top N/A N/A If yes,list intervals and formations tested,briefly summarizing test results. Permafrost-Base Attach separate pages to this form,if needed,and submit detailed test Top of Productive Interval N/A N/A information,including reports,per 20 MC 25.071. Formation at total depth: 31. List of Attachments: Full technical description of P&A Process; Final P&A Well Diagram Information to be attached includes,but is not limited to:summary of daily operations,wellbore schematic,directional or inclination survey,core analysis, paleontological report,production or well test results,per 20 MC 25.070. 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Email: ecolbert@ormat.com Printed Name: Elton J Colbert Title: Reservoir Engineer Signature: ; Phone: 775-830-5570 Date: 9-28-16 INSTRUCTIONS General: This form and the required attachments provide a complete and concise record for each well drilled 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.All laboratory analytical reports regarding samples or tests from a well must be submitted to the AOGCC,no matter when the analyses are conducted. Item la: 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 lb: Well Class-Service wells:Gas Injection,Water Injection,Water-Alternating-Gas Injection,Salt Water Disposal,Water Supply for Injection, Observation,or Other. Item 4b: TPI(Top of Producing Interval). Item 9: The Kelly Bushing,Ground Level,and Base Flange 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 15: The API number reported to AOGCC must be 14 digits(ex:50-029-20123-00-00). Item 20: Report measured depth and true vertical thickness of permafrost.Provide MD and ND for the top and base of permafrost in Box 29. Item 22: Review the reporting requirements of 20 MC 25.071 and,pursuant to AS 31.05.030,submit all electronic data and printed logs within 90 days of completion,suspension,or abandonment,whichever occurs first. Item 23: Attached supplemental records should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: 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 27: Method of Operation:Flowing,Gas Lift,Rod Pump,Hydraulic Pump,Submersible,Water Injection,Gas Injection,Shut-in,or Other(explain). Item 28: Provide a listing of intervals cored and the corresponding formations,and a brief description in this box.Pursuant to 20 MC 25.071,submit detailed descriptions,core chips,photographs,and all subsequent laboratory analytical results,including,but not limited to:porosity, permeability,fluid saturation,fluid composition,fluid fluorescence,vitrinite reflectance,geochemical,or paleontology. Item 30: 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 MC 25.071. Item 31: Pursuant to 20 MC 25.070,attach to this form:well schematic diagram,summary of daily well operations,directional or inclination survey,and other tests as required including,but not limited to:core analysis,paleontological report,production or well test results. Form 10-407 Revised 11/2015 Submit ORIGINAL Only i MT. SPURR 2016 PLUG AND ABANDON PROJECT FINAL REPORT — 26-11, 62-2, and 67-34 Elton J Colbert Ormat Nevada Inc. Table of Contents • Objective– Intention of the project, goals and brief statement on the results. • Preparation –The project preparation and equipment used. • Plug and Abandon Process for 26-11 – How the project was conducted, obstacles, and quantities. The cutting of each wellhead, the completion cap and conclusion. • Plug and Abandon Process for 62-2– How the project was conducted, obstacles, and quantities. The cutting of each wellhead the •a . - *die . - . _ i . el 'fit ., -:—Plug and Abandon Process for 67-34– How the project was conducted, obstacles, and quantities. The cutting of each wellhead, the completion cap and / conclusion. • Timber Disposal –The burning of all timbers originally brought in by Ormat. • Appendices – P&A well diagram for each well. Obiective To close out Ormat's project located at Mt. Spurr, Alaska. The project consisted of (3) temperature core holes, this report outlined the plug and abandon process. Core holes 26-11, 62-2, and 67-34 are located on state lands leased by Ormat. The specific project areas are located in ADL 391360/lease tract 007, ADL 391354/lease tract 001, and ADL 391355 - tract 002 respectively. The purpose of this project was to plug, cap, and abandon the geothermal exploration holes at all three sites. The end result was a successful P&A and reclamation of each as outlined in the approved programs. This final report contains the entirety of the process and other related activities. Ormat Nevada Inc.—Mt. Spurr Plug and Abandon Project—Final Report 1 • Preparation Since there is no access to the site overland, all material was brought in (and taken out) via helicopter. Serving as a base of operations, a temporary camp was setup for personnel to live onsite while to project was conducted. The camp was in-part setup using existing timber decks left on location from the initial drilling of all three wells in 2010/2011. All other camp material was flown in approximately a week prior to entering the first well. Access to each well site to-and-from the main camp was also achieved via helicopter. The ten-member crew consisted of a cook, driller, driller's helper, laborer, Ormat consultant, Ormat representative, camp manager, camp manager's helper, bear guard, and pilot. A portable core rig was brought in by Alaska Earth Sciences whom Ormat i .,,,6,x.7-, _ y hired to handle all the equipment r` coordination as outlined in the state '� �� . approved P&A program. The rig was 41 assembled and the P&A process "`" '`, - conducted from a temporary platform built from existing timber decks left on location. ✓..-- I Water for both the camp and the rig was " ,, .0-�'-. provided by permitted stream sources and ,-- , pumped to each location. A containment -. i lir .. basin was set under the water pump y located near the stream. (Picture at right: rig & platform) Containment basins were also built around the well and were used to catch any residual cement that may spill out or might be displaced during the P&A process. The project was also expected to displace some well water and possibly .1401" some non-toxic formation/drilling material which would drain out a side valve through .4111C an installed hose beyond the containment basin. (Picture at right: containment basin) Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project—Final Report 2 • • Plug and Abandon Process for 26-11 Well Bore Properties Prior to Entering the Well: • Wellhead Pressure: 0 PSI • Fluid level: -325 ft. • Casing: 3.5-in. from surface to 3170 ft. • Fish: 780 ft. of 2.36-in. core rod left in well from initial drilling. • Total depth: 3988 ft. After rigging up, the goal was to cement from the bottom up using 2.22-in. core rod (BTE) run in 10 ft. lengths from the surface. In an attempt to enter the fish at the bottom of the well, 1110 ft. of 1.75-in. core rod (AQ) was used at the bottom of the P&A string. All went according to the approved program until 1730 ft. of cementing rod was in the hole. According to the manufacturer, the rig was rated well beyond the weights and depths that it would be subjected to during the project. When a depth of 1730 ft. was reached, the top chuck on the rig slipped and the tubing dropped. A mechanical foot clamp had been installed by field personnel as a precaution and this device caught the tubing at surface before it had a chance to fall downhole. The entirety of this incident is outlined in external document Mt Spurr 26-11 - P&A Incident 7-15-16. At that point, operations were shut down for the day and Ormat's representative reached out to the AOGCC to request a revision to the P&A program: that we cement from 1730 ft. up with no further attempt to go deeper. The AES crew, Ormat's representative, and Ormat's consultant felt that it was not safe to attempt a greater depth with the existing rig. Approval was granted that evening and so the following day the crew moved forward with cementing from 1730 ft. up. Cementing Process: Portland cement with -27% Gel was mixed at surface in accordance with the approved drilling program. The cement was pumped away in (8) different batches while the tubing was pulled in (5) segmented lengths. The following batch #'s represent an accurate account of the process. 1. Pumped -100 gal. (263 ft.) of slurry - measured fluid level at 138 ft. 2. Pumped -190 gal.. (503 ft.) of slurry - water was displaced at surface. Stopped pumping until displaced water stopped. 3. Pumped -50 gal. (132 ft.) of slurry - water then cement were displaced at surface. Pulled 560 ft. of BTW rod. Measured fluid level at 87 ft. 4. Pumped -50 gal. (132 ft.) of slurry - water then cement were displaced at surface. Pulled 60 ft. of BTW rod and 430 ft. of AQ rod. 5. Pumped -110 gal. (289 ft.) of slurry - water then cement were displaced at surface. Pulled 500 ft. of AQ rod. Measured fluid level at 85 ft. 6. Pumped -90 gal. (237 ft.) of slurry- only cement was displaced at surface. Pulled final 180 ft. of AQ rod. Note: at this point the master valve was shut and batches#7 & 8 were bull Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project—Final Report 3 • • headed through the side inlet valve to the pressures listed. 7. Pumped -30 gal. (79 ft.) of slurry -to a WHP of 600 PSIG. Bled off pressure to check cement level: cement at surface. 8. Pumped -30 gal. (79 ft.) of slurry - to a WHP of 1,000 PSIG. Left the well shut in. Quantities: • Actual Hole Volume: 657 gal. equal to 1730 linear ft. (I.D. of well's BTW casing to achievable depth) • Total Slurry Pumped: 651 gal, equal to 1713 linear ft. • Slurry Displaced: Two barrels (-84 gal) of displaced slurry was collected. • Displaced Water: Considering the initial fluid level was at -300 ft. prior to running cementing rod, approximately 540-560 gal. (1430 ft.) of fluid was displaced at surface. • Slurry Properties: Average Density: 11.43 Ib/ft3, Average Viscosity: 32.46 At this point the top portion of the well was full of cement and the crew started rigging down. It was decided to hold off on the final P&A process (cut wellhead and weld cap) until after the cementing of all three wells was completed. The rig and related equipment were then flown to 62-2. Some of the timbers from 26-11 were used to construct the pad at 62-2 but most were flown out and used for well pad 67-34. Eventually the pad was cleared of all timbers and equipment. Notes: Y E • All residual cement was caught in the containment basin and was collected and flown out for proper _. disposal. (Picture at right: full barrel of cement over flow.) moi.y • Any displaced water was allowed to drain beyond bs the containment basin in a manner that did not alter the existing topography. • See Appendix A for a final diagram of the well plugged and abandoned. Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project—Final Report 4 . • . Cut Wellhead and Weld Completion Cap: After the cementing of all three wells was completed, the crew returned to 26-11 to cut off the wellhead and a portion of surface casing at 5 ft. below grade. As shown in Picture 4 there was good cement to surface. Picture 5 shows the marker as outlined in the P&A program. �3. + . e w k � 1 r T _ . _ - ,' c. . , i2 n ` �'i • «vt X Picture 4 Picture 5 Conclusion for 26-11: Though difficulties were encountered, well 26-11 was successfully plugged and abandoned from 1730 ft to surface. The cement cap in place will be sufficient to prevent any possible inflow zones that might exist around the casing shoe at 3070 ft. from migrating up the casing string. Any residual cement discharged at surface during the P&A process was successfully captured and removed from location. All timbers leftover from the original drilling process and those used in the P&A process were removed from the site. The well cap was buried 5 ft. below grade and back filled along with the containment area to match the existing terrain. Finally, this pad was reseeded and proper reclamation completed. Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project—Final Report 5 • • Plug and Abandon Process for 62-2 Well Bore Properties Prior to Entering the Well: • Wellhead Pressure: 0 PSI • Fluid level: -174 ft. • Casing: 4.5 in. from surface to 100 ft. • Open hole: 3.8 in. from 100-822 ft. • Total depth: 822 ft. After rigging up, the goal was to cement from the bottom up using only 1.75-in. core rod (AQ). While running in, we tagged shallow in open hole at 424 ft. We were able to wash past obstruction to 525 ft. where we encountered a 2nd harder tag and we were unable to wash past this point. It was decided to cement from here up. Cementing Process: Portland cement with -27% Gel was mixed at surface in accordance with the approved drilling program was used. The cement was pumped away in (5) different batches while the tubing was pulled in (2) segmented lengths. The following batch #'s represent an accurate account of the process. 1. Pumped -190 gal. (317 ft.) of slurry- pulled 310 ft. of AQ rod. 2. Pumped -190 gal. (317 ft.) of slurry- pulled final 210 ft. of AQ rod. Measured fluid level at 170 ft. 3. Pumped -190 gal. (317 ft.) of slurry from surface - still no water or cement displaced at surface. Measured fluid level at 22 ft. 4. Pumped -60 gal. (158 ft.) of slurry-cement observed at surface. Note: at this point the master valve was shut and batch #5 was bull headed through the side inlet valve to the pressures listed. 5. Pumped -24 gal. (63 ft.) of slurry-to a WHP of 600 PSIG. Left the well shut in. Quantities: • Actual Hole Volume: 318 gal. equal to 525 linear ft. (I.D. of well's PQ casing and open hole to achievable depth) • Total Slurry Pumped: 654 gal, equal to 1171 linear ft. • Slurry Displaced: -1/2 barrel (-21 gal) of slurry was displaced straight into barrel. • Displaced Water: Very minimal amount mixed with cement displacement. Not quantifiable. • Slurry Properties: Average Density: 11.84 Ib/ft3, Average Viscosity: 31.16 At this point the top portion of the well was full of cement and the crew started rigging down. It was decided to hold off on the final PM process (cut wellhead and weld cap) until after the cementing of all three wells was completed. The rig and related equipment were then flown to 67-34. The timbers from 62-2 were eventually flown out to Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project—Final Report 6 • • the camp burn site. Notes: • All residual cement was caught directly in a barrel via a hose from the side valve. On this P&A, no overflow spilled into the containment basin. (Picture at right: barrel of cement over flow from 26-11.) • If there was any displaced water, it ended up in the partially filled barrel on location. • This well took —350 additional linear feet (160 gal.) beyond the total well bore capacity for cement to reach surface. This means that we pushed cement past the 525 ft. bridge to TD and into formation sealing off the entirety of the well and any inflow zones. • See Appendix B for a final diagram of the well plugged and abandoned. Cut Wellhead and Weld Completion Cap: After the cementing of all three wells was completed, the crew returned to 62-2 to cut off the wellhead and a portion of surface casing at 5 ft. below grade. As shown in Picture 4 there was good cement to surface. Picture 5 shows the marker as outlined in the P&A program. F 4 44 : Y, feie V4, 0,04„ i ` 4 s -, .;s\# •w C r . E Picture 4 Picture 5 Conclusion for 62-2: Though a bridge in open hole was encountered, well 62-2 was successfully plugged and abandoned from 822 ft to surface. The cement in place was also sufficient to plug any inflow zones that might exist. Any residual cement discharged at surface during the P&A process was successfully captured directly in a barrel and removed from location. All timbers used in the P&A process were removed from the site. The well cap was buried 5 ft. below grade and back filled along with the containment area. Finally, this pad was reclaimed to match the existing terrain. Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project—Final Report 7 • • Plug and Abandon Process for 67-34 Well Bore Properties Prior to Entering the Well: • Wellhead Pressure: 7 PSI • Fluid level: surface • Casing: 4.5 in. from surface to 100 ft. • Tubing: 2.375 in. from surface to 1000 ft. • • Open hole: 3.8 in. from 100-1000 ft. • Total depth: 1000 ft.. When we first arrived, 67-34 appeared to be leaking. After digging it out it was discovered a side outlet ball valve had been pulled open (perhaps by a bear). This well originally had a diesel cap on it to prevent freezing at surface and while we were able to easily close the valve, the diesel cap had long since drained out. This well has slotted liner in it but it was uncertain if we could pump cement through the slots and up the annulus as outlined in the approved program. After rigging up, we hooked up to the liner but were unable to pump anything down the liner up to 800 PSIG. We then hooked up to the annulus via one of the side valves and were able to pump (1) annulus volume (313 gal.) away with (0) wellhead pressure. Since we were able to pump down the annulus we requested a revision to the original program from the AOGCC. Instead of pumping down the liner and up the annulus, we asked to run AQ rod down the liner and fill it with cement every -500 ft. (exactly as the other 2 wells were P&A'd). Then, we would hook up to the wing valve and pump cement to 150% excess -- the annulus volume away. Approval was granted that same day. Liner cementing process: Portland cement with -27% Gel was mixed at surface in accordance with the approved drilling program. The cement was pumped away down the liner in (2) different batches while the tubing was pulled up in (2) segmented lengths. The following batch #'s represent an accurate account of the process. 1. Pumped -190 gal. (792 ft.) of slurry - pulled 500 ft. of AQ rod. Displaced an equal amount of water. 2. Pumped -40 gal. (208 ft.) of slurry - pulled final 500 ft. of AQ rod. Displaced an equal amount of water. Note: at this point cement was seen at surface and the liner portion was shut in. Quantities: • Actual Liner Volume: 230 gal. equal to 1000 linear ft. (I.D. of well's liner) • Total Slurry Pumped: 230 gal. equal to 1000 linear ft. • Slurry Displaced: None. By well number (3) the crew was very adept at cementing to surface with no excess. • Displaced Water: One full tubing volume (230 gal.) was displaced as surface Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project—Final Report 8 • discharge. • Slurry Properties: Average Density: 12 Ib/ft3, Average Viscosity: 30.5 Annulus cementing process:1„,-- Portland cement with -27% Gel was mixed at surface in accordance with the approved drilling program. The cement was pumped away through a side valve in (3) different batches. The following batch #'s represent an accurate account of the process. 1. Pumped -140 gal. of slurry- (0) well head pressure. 2. Pumped -190 gal. of slurry- (0) well head pressure. 3. Pumped -190 gal. of slurry- (0) well head pressure. Note: at this point 520 gal. had been pumped away or -150% of the annulus volume and the well was shut in for the night. The following morning we tagged solid cement at 5 ft. down in the liner and 22 ft. down the annulus. A small top-job was performed in each. Quantities: • Actual Annulus Volume: -350 gal. equal to 1000 linear ft. (area between the open hole portion and the O.D. of the well's liner) • Total Slurry Pumped: 520 gal, equal to -150% excess of the annulus volume. • Slurry Displaced: None • Displaced Water: None • Slurry Properties: Average Density: 12.47 lb/ft3, Average Viscosity: 31 At this point the well was full of cement and the crew started rigging down. The rig and related equipment were then flown to camp in preparation for de-mobilization. The timbers were also flown out to the camp burn site. Notes: • No residual cement was discharged at surface and no overflow spilled into the containment basin. • All displaced water was non-toxic and considered in-line for surface discharge as • outlined in the original P&A program. • This annulus took 150% excess (520 gal.) beyond the total annulus volume for cement to reach surface. This means that we pushed cement into formation sealing . off the entirety of the well and any inflow zones. • See Appendix C for a final diagram of the well plugged and abandoned. Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project—Final Report 9 i . • Cut Wellhead and Weld Completion Cap: After the cementing of all three wells was completed, the crew returned to 67-34 to cut off the wellhead and a portion of surface casing at 5 ft. below grade. As shown in Picture 4 there was good cement to surface. Picture 5 shows the marker as outlined in • the P&A program. • • 34 a • • Fd 5 • o 4sJ+ •S tet.' 1 ?''y,. • I Picture 4 Picture 5 Conclusion for 67-34: Though the slotted liner was plugged off, well 67-34 was successfully plugged and abandoned from both inside the liner and in the annulus from 1000 ft to surface. The cement in place was also sufficient to plug any inflow zones that might exist. There was no residual cement discharge during the P&A process and all timbers used in the P&A process were removed from the site. The well cap was buried 5 ft. below grade and back filled along with the containment area. Finally, this pad was reclaimed to - match the existing terrain. Timber Disposal It was decided that the approved process of burning wood timbers at two separate locations (lower 26-11 and upper 67-34/62-2 areas) was too risky considering the potential for fire hazard. Over the course of ten days all of the timbers from three well pads and a fourth location (staging area near 26-11) were flown to the main camp where a suitable fire area was established. Once there, all the wood from the entirety of the project was burned in an area that was easier to supervise and control. At the Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project—Final Report 10 i • conclusion of the burn, all nails/screws were sifted out and the ground was back-filled to • match the surrounding topography. APPENDIX A Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project—Final Report 11 • • MT SPURR CORE HOLE 26-11 FINAL P&A WELL DIAGRAM LATITUDE 61° 14' 51.9" N, LONGITUDE 152° 05'2.2"W INITIAL WELL BORE FROM SURFACE AT 5°ANGLE FROM VERTICAL WITH AZIMUTH OF 318° TRUE NORTH ALL DEPTHS REFERENCED TO KB ELEVATION: 1693 FT MSL APPROX. 3 FT ABOVE Gr. 7. 5.66-in. HOLE ::' 5.66-in. 14.4 Ib/ft PW Casing adt PW CASING SHOE 85 Fr " 4.5-in. 11.3 Ibfft HWT CASING 4.88-in PQ. HOLE --( :� `. .:..::� •: , : . 4.5-in.HWT CASING SHOE 452 Fr i. t. ,x ' • •`4 ' ` ' 1730 ft.of CEMENT s , NOTE: 1730 ft. MAXIMUM . CAPABLE DEPTH OF PM RIG 1. '..:..;: : 7 l F '--^" 3.5-in. 11.3 Ib/ft HQ ROD Ir i 3.80-in. HQ HOLE . ri :• 3.5-in.HQ ROD SHOE 3170 Fr i i j °�,,. 780 ft UNRETRIEVABLE 3-in. NQ HOLE r NQ CORE ROD LEFT ON BOTTOM i, i NOT DRAWN TO SCALE i i i I ! TD 3988 FT MD APPENDIX B Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project— Final Report 12 i • MT SPURR CORE HOLE 62-2 FINAL P&A WELL DIAGRAM LATITUDE 61° 15'01.03" N, LONGITUDE 152°05' 11.33"W C. T BAD . ALL DEPTHS REFERENCED TO KB CUT ALLCONCASITO NG STRINGS GRTO E APPROX.3 FT ABOVE Gr. 5-FT BELOW GRADE.WELD ON STEEL(N) CAP WITH5-FNUMBERELOW ELEVATION:2410 FT MSL • tS } (E)5.66-in. HOLE to 50 FT 1Jw - (E)4.5-in. 11.7 lb/ft HWT CASING (E)4.88-in PQ. HOLE to 105 FT (E)4.5-in.HWT CASING SHOE 100 FT iilp:r. i u FIRST BRIDGE AT 424 FT. !" "':•_: '!i (PASSABLE) • SECOND BRIDGE AT 525 FT. (E)3.80-in. HQ HOLE :;. • ` (IMPASSABLE BUT PERMEABLE) ENOUGH CEMENT TO FILL ENTIRETY OF WELL BORE. • (E)TD822FTMD •w :�. NOT DRAWN TO SCALE 1AT NEVAL 8/16/16 APPENDIX C Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project—Final Report 13 . i e MT SPURR CORE HOLE 67-34 • FINAL PM WELL DIAGRAM LATITUDE 61° 15'20.96"N, LONGITUDE 152°07'00.64"W (N)CONC.TO 5-FT BELOW GRADE. ALL DEPTHS REFERENCED TO KB CUT ALL CASING STRINGS TO 5-FT APPROX.3 FT ABOVE Gr. BELOW GRADE.WELD ON STEEL CAP WITH NUMBER / ELEVATION:2878 FT MSL 5.66-in.HOLE to 30 FT • - v • •• .4.88-in PQ.HOLE to 108 FT --'- `�' W4.5-in. 11.7lbfft HT CASING 4.5-in.HWT CASING SHOE 100 FT A'.•'. •• • CONCRETE FROM SURFACE TO `..*:^.:'': 1000 FT. IN BOTH THE LINER AND ` THE ANNULUS. 3.80-in.HQ HOLE -'� 2.375-in.STEEL TUBING WITH BULL NOSE ON BOTTOM I.•'`)• ''h TD 1000 FT MD NOT DRAWN TO SCALE 8116116 Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project—Final Report 14 • Ormat Nevada, Inc. Mt. Spurr Geothermal Exploration Core Hole Drilling Project Phase 2a Upper Chaka-R 67-37 2010 Completion Report Inclination Survey • S "" REFLEX EZSHOTTM DRILLHOLE SURVEY RECORD REFLEX EZ-SHOT* DRILLHOLE SURVEY RECORD L Project/Property.67-3`V Project/Property Drillhole Reference Drillhole Reference Date + �' Date Time..;;?.pew Time Hole Depth.../ce'.2.0 Hole Depth Pulled Back... Pulled Back Surveyed by.6?/t .-1.6.., n-i1... Surveyed by Azi/Dir Inch/Dip Station Azi/Dir Inch/Dip Station (5Z 5C) ex :3 Roll (Toolface) Roll (Toolface) Roll (Toolface) Roll (Toolface) rel to dip rel to Mag North rel to dip rel to Mag North 3 /6, Magnetic Field Temperature Other... Magnetic Field Temperature Other... 5.c/f3 � . 3 Wedge Information Wedge Information Notes Notes REFLEX EZ-SHOTTM DRILLHOLE SURVEY RECORD REFLEX EZ SHOTTM DRILLHOLE SURVEY RECORD Project/Property Project/Property Drillhole Reference Drillhole Reference Date Date Time Time Hole Depth Hole Depth Pulled Back Pulled Back Surveyed by Surveyed by Azi/Dir Inch/Dip Station Azi/Dir Inch/Dip Station Roll (Toolface) Roll (Toolface) Roll (Toolface) Roll (Toolface) rel to dip rel to Mag North ret to dip ret to Mag North Magnetic Field Temperature Other... Magnetic Field Temperature Other... Wedge Information Wedge Information Notes Notes • Mt Spurr—P&A Daily Operations Thursday the 1491: • Arrived in camp along with remaining crew.The rig was already rigged up over 26-11 (the deep core well) and the camp was fully stocked and equipped. Friday the 15th: • Twelve hour shifts began at 7:00 am.The rig crew started in on running tubing down 26-11 to deliver cement. Myself along with Steve Barnwell examined 67-34 which appeared to be leaking. After digging it out, it was just a ball valve that had been pulled open perhaps by a bear. But better that than cracked and leaking casing. • We then spent the remainder of the day at the rig while the crew ran tubbing. An incident with the rig's equipment caused us to stop running tubing at 1660 ft. (TD: —3900 ft.) and immediately request a variance from the state allowing us to cement from this depth up.After a brief write-up concerning the incident and submitting a revised program,the state approved the variance vie email late Friday night. Saturday the 16th: • We started and completed cementing fn 26-11 to surface and began rigging down.The remainder of the camp began work on 62-2 well pad where we'll be moving tomorrow after completion of the pad. We will also verify that the cement to surface at 26-11 has not dropped and if so,we'll top it off. Sunday the 17th• • 62-2:The pad at 62-2 was completed and the rig moved by 1:00. After which the crew spent the remainder of the day rigging up. • 26-11:After checking the completed P&A at 26-11, the cement has not dropped and is setting up nicely. • 67-34: Camp crew will start moving timbers for the 67-34 pad tomorrow. Monday the 18th: • 62-2: Ran in and tagged shallow in open hole at 424 ft. (TD 822 ft.). We were able to wash past obstruction to 525 ft.where we encountered a 2nd harder tag and we're unable to wash past. It was decided to cement from here up. We completed cement delivery to surface and after removing the tubing we bull nosed cement to 600 psig and left the well shut in. We will check tomorrow. • 67-34: Camp crew started in on pad construction but had to stop midday due to a scheduled 100-hr. • helicopter maintenance. Tuesday the 19th: Summary:The wind has us shut down for the day, it's too much for the helicopter to sling the heavy timbers. • 62-2:The crew walked over and rigged down then walked back. Cement is still at surface. • 67-34: High winds kept the helicopter from moving any timbers for the pad. We'll attempt to complete the pad and move the rig tomorrow. Wednesday the 20th: • Summary:The wind shut us down for half the day.At noon it subsided enough that we were able to get stuff done and make a quick crew member change. • 67-34:At noon, the rig crew was dropped off so that we could swap out the well head and stab onto . the slotted liner sitting on bottom.The helicopter did a quick crew member swap and upon return everyone was placed such that the pad was constructed and the rig moved from 62-2 by the end of today.Alaska Hustle! Thursday the 21st: Summary: Fog had us grounded till 10:00 am. Rig Crew worked on 67-34 while Camp crew broke down . 26-11. Official visit from the state tomorrow. 67-34: • After grabbing onto the slotted liner, we attempted to pump water down the liner, out the slots, and up the annulus simulating the P&A process.We deadheaded up to 800 PSIG and no circulation. Either the slots are clogged or there are no slots. • We then hooked up to the annulus (wing valve)and pumped one volume away with 0 PSIG WHP. According to old documents we believe there is an inflow zone at' 300 ft. • We then requested from the AOGCC to change the manner in which we P&A this well. It was granted. Now, using core rod we'll deliver cement to depth then we'll pump cement 150%the annulus volume down the wing valve. • After receiving approval, we ran all the joints in the liner. We'll cement both the liner and the annulus tomorrow. 26-11: • The camp crew was able to completely clear this pad. Friday the 22nd: Summary: Department of Natural Resources came and looked at all three locations. 67-34 has been - P&D'd. 67-34: • The wells liner and annulus has been plugged. We will check the cement levels tomorrow. DNR Representative Site visit • He was very pleased and other than the existing protocol,there is no additional regulations we need to adhere to nor did he see any issues with the way to project has been handled to this point. • The AOGCC has declined to witness the removal of the well heads and installation of the P&A cap. We just need to take pictures.They are also very pleased with hoe things have been handled. Camp Crew • After returning the DNR gentleman to Tyonek, the camp crew cleared the wood stack pile down near the 15t well (26-11). We continue to burn. Saturday the 23rd: Summary: Winds too much to sling heavy timbers. We dug out 26-11 and also dug out and welded caps ✓ on 67-34 and 62-2. Rigged down and slung rig back to camp. Permit request for timbers denied; burning continues. 26-11: • We dug out 26-11 in preparation of cutting off wellhead for final cement inspection and to weld on P&A cap before backfilling and burying. 62-2: • • • We dug out, cut, made final cement inspection and welded on marker cap at 62-2. Backfilled and buried marker. Camp crew will break down pad tomorrow. 67-34: • We dug out, cut, made final cement inspection and welded on marker cap at 67-34. Backfilled and ✓ buried marker. Broke down rig and had it sling back to camp in preparation for removal from mountain. Camp crew will break down pad tomorrow. Permit Request to Take Over Timber Responsibility: • The state trooper office has already denied permission to the party wishing to use the timber due to its hunting affiliation.The camp crew will run a 24-hr burn rotation (weather permitting) until all the wood has been burned. Sunday the 24th: Summary:Welded cap on 26-11. Continue to rig down at camp and burn timbers. 26-11: • Cut and made final cement inspection then welded on marker. Backfilled and buried marker. Camp crew will make final sweep of site. Notes: • Alaska Earth Sciences will complete the breakdown of camp and reclamation of all three sites.After which they will deliver pictures of all locations and any other supporting documentation to Ormat. Tuesday the 26th: Summary: • We've had weather problems the last few days but things are moving right along. We have all three sites capped, reclaimed, and most of the timbers burned. • We will begin breaking down camp today and have already begun sling operations to get equipment and gear back to town. If things go smoothly we hope to have things wrapped up by end of week. Thursday the 28th: Summary: • Off the hill, camp is completely torn down and removed with all drill timbers and camp wood burned.Took lots of photos from both ground level and in the air. Final report. • i Upper Chaka River Well No. 67-34 (PTD #210-098) - Surface Coordinates For Upper Chaka R 67-34 (PTD 2100980), the surveyor's plat displays approximate footages from section lines (1557' FEL, 861' FSL) that are much closer to the surveyor's reported lat/long and ASP X,Y coordinate values than are the coordinates reported by the operator on the Well Completion Report (1595 FEL, 935' FSL) . Will use surveyor's approximate coordinates in the AOGCC's database. SFD 10/17/2016 Page 1 • S Office Project 17 October 2016 INPUT OUTPUT Geographic,NAD27 State Plane, NAD27 5005-Alaska 5,U.S.Feet Upper Chaka 67-34 1/1 Latitude: 61 15 20.96 Northing/Y: 2655744.089 Longitude: 152 07 00.64 Easting/X: 831549.348 Convergence: 1 39 04.47491 Scale Factor: 1.000025073 c'l JiG Remark: Corpscon v6.0.1,U.S.Army Corps of Engineers . a . • f • �, . .1%)/ 'N. • , • ,'! / ' _ /' V,. //-,G ' /i_,/•.. 7 /�y/ ' ..// - ' ,.• .. - ' • / ', 4 ,4;44111Ir / • ' / — ' /(../ , lir : -poi ''' .',,j0.. 'A Iv ..::-., ,---"''- '-40,...e TgrAt..747 ,,.., ..,,, z- , ,,,,,,,,,,,,/ , , ! l / ; ,-.. -. , , -,, le:, 2 .---- x , / - .17011,, . i -.. . , ' ' ' / / / / ' •,' At, A 7,_4, ., . /.,,,../--- — : #.,,,-, dr40or ''' - "/Fr isfAr iNt4, ' ,,.-i, :'.i. ".%..Ar 444tifrr - 4/ ,,,...4. Air ..,.. „„... �'/ i / . os. ,. `* M�' #4.` •ire►'- -': r4,. / A AI: tosof 't•:::'''" .; • '.. -tOje- . 1----- " n -7.) .:4114VIROW r';',,,-Y, ,-....4. , ,i::"'...-..*...*---':.,,:,,,./".. \ .#4, .. . z;;„, ... c_,:i.). .'....:4", 4t.,,I,N46.;,,,, ,./.,,t",,,-y,-....„,./.., ,f,e;:./. -, ,_,, ,,..,r, ,,,, 4,7 ,,,,...,cs„,„ ,... .. . , { ~r% ., ,! :.../.. . , f„../,,, ,,, ,c,„. titin, j / „° r v l . ' ' .. Jam, < r ..yo i,/ _f e___-_,„2- 4-, v '< -r.;'10' • z - .. ,:. ..;:-... --•:.' • .- .. •,,,:, -TN- '•,..i-t 14\ # ------- (-/ ,s, r, X , ' . - .' ,, ,p, \,H .. . ..,: -„,.,,,---.,\ ,1 c- ,_, t i 4 .." y, , , 4„. , , . ..„7„,/ ,,....,,,,,,„ 40„,...... / , ...,..:.„.....„ ,,t,..„ , .,.., ) ,, ... • ..., ,,,,., ,,,,,,A, , „,,,„,....,,,, op, At' ./..: .„ . , , .,,, -,,‘„.0, p .. . ,. , , c I/ . __ ,_ . dip . _ ,,,,.‘N. _ _'.__,-___”. fl NOTES: LEGEND: -`-0.71>>4 1. COORDINATE SYSTEM: ASPz5, NAD27, USft 67-34 SURFACE '�%QF AL,q t1 2. DATUM: NAD27, CRK i 3. LEASE BOUNDARYLALOCATION6PROVIDED BY LOCATION -'k'.' ' •I-- + CLIENT ORMAT LEASE AREA ...co..4.7 l �� .. 4. SURVEY CONDUCTED 8/19/2011 (SEE NOTE 3) • SURFACE LOCATION: I %`��' LOCATED WITHIN PROTRACTED SEC. 34, • MICHAEL R.E� c T14N, R16W, SM �l 'r,••. LS 11794 •',��/ SECTION 34 LINE OFFSETS: !� Q 861' F.S.L. 1557' F.E.L (APPROX.) - �tFe d An:•.iO.. .alp•.,� LAT= 61'15'20.96"N l LONG= 152'07'00.64"W / 1,>>\��e�� N= 2,655,744 - 0 0.5 mile 1 mile E= 831,549 ✓ I I �_A 1- = 0.5 mile Ormat Mt. Spurr 67-34 Rowland Engineering Consultants GEOTHERMAL WELL 481 West Arctic Avenue,Palmer,AK 99645 Technologies, Inc. ASBUILT 907-746-3630. 907-746-3240 fax DATE: 8/26/2011 I DRAWING: SPURR_AOGCC 1 SHEET: 1 OF 1 I REV: 0 • • oR m AT August 26, 2016 Thomas Barrett Alaska Department of Natural Resources Division of Oil and Gas 550 West 7th Ave. Anchorage, AK 99501 Re: End of Project Completion Report Ormat Nevada, Inc. Mt. Spurr Geothermal Exploration Leases: LOCI 10-005 (ADLs 391354, 391355, 391360) Dear Mr. Barrett, In 2008 Ormat Nevada Inc. acquired 15 leases from the State of Alaska in the Mt. Spurr Geothermal Lease Sale No. 3 (June 16, 2008)to explore for a viable geothermal power resource on the southern flanks of Mt.Spurr volcano, some 80 miles west of Anchorage,Alaska. After two full seasons of geological and geophysical surveys and active drilling in 2010 and 2011, no commercially viable geothermal resource was discovered. Between July 15 and July 28, 2016, Ormat Nevada, Inc., completed the Plug and Abandonment (P&A) of their three geothermal wells on Mt. Spurr,to the satisfaction of the Alaska Oil and Gas Conservation Commission (AOGCC). At that time, Ormat also completed the clean-up and } removal of all remaining project materials, and the rehabilitation of all lease areas. Ormat has previously released 12 of the original leases back to the State, and is in process of releasing the remaining 3 leases. This report serves to notify the State of Alaska Agencies of the details on the 2016 operations, which represent the closing out of this project. 2016 end of project completion activities ORMAT NEVADA INC. 6225 Neil Road • Reno, NV 89511-1136 • Phone : (775) 356-9029 • Fax : (775) 356-9039 E-mail: ormatormat.com Web site:www.ormat.com • • tri covered here include the plug and abandonment process with AOGCC;the burning/removal of project materials; and land rehabilitation, as required by the original Alaska Department of Natural Resources (ADNR) Plan of Operations Approval from September 23, 2010. We provide field photos of 2016 operations and final photos after rehabilitation. Water sources and water usage data is provided as per requested by ADNR Division of Mining, Land, &Water(ADNR- DMLW), as regards the Temporary Water Use Authorization (TWUA). We also include a copy of our recent communications with the local Tyonek Native Corporation and the Native Village of Tyonek,with whom we have cooperated throughout the course of the project. This report is herein submitted to the ADNR Division of Oil and Gas (ADNR-DOG) as required under LOCI 10-005. Copies of this report shall also be submitted to ADNR-DMLW,Alaska Department of Environmental Conservation (ADEC),Alaska Department of Fish and Game (ADFG) and United States Fish and Wildlife Service (USFWS)as notification of project completion. We are happy to provide DNR with any additional information as requested. Sincerely, Scott Kessler Land and Lease Manager Ormat Nevada Inc. Page 2 of 3 2016 Completion Report Phase 3 - Abandonment Mt. Spurr Geothermal Exploration Prepared for ORMAT * Ormat Nevada, Inc. 6225 Neil Road Reno, Nevada 89511 Prepared by Cardno Shaping the Future Cardno, Inc. 3150 C Street, Suite 240 Anchorage, Alaska 99503 Submitted to DNR-DOG on August 26, 2016 • Table of Contents Permitting Requirements 3 Major Contracted Parties 4 Brief History of Project Operations 4 2016 Field Operations Schedule 5 Plug and Abandonment of Three Geothermal Wells 5 P&A of Well 26-11—Technical Summary 5 P&A of Well 62-2—Technical Summary 6 P&A of Well 67-34—Technical Summary 6 Burning and Removal of Project Materials 7 Rehabilitation of the Land 7 Well Site 62-2 7 Well Site 67-34 8 Well Site 26-11 9 Temporary Camp Site 11 DNR Site Visit 13 Topics of Concern from Original 2010 DNR Plan of Operations 13 a. Completion date and description of activity including status,safety concerns,and issues affecting surface interests 13 b.A statement describing the incidents and corrective actions taken on any noncompliance findings, spills,fires, incidents and complaints. 14 c.A statement describing clean-up activities conducted,the method of debris disposal,and a narrative description of known incidents of surface damage. 14 2016 Water Sources and Water Usage 15 Photographs of Water Sources: 16 Appendices Appendix A.AOGCC Well Completion Report A-1 Appendix B.Communications with Tyonek Native Corporation and the Native Village of Tyonek B-1 2 Permitting Requirements The following permits/authorizations were secured for past phases of the Ormat project,as well as the 2016 P&A field operations: Alaska Department of Natural Resources(ADNR) Division of Oil and Gas • Lease Plan of Operations(and Amendments) Alaska Department of Natural Resources(ADNR) Division of Mining, Land, &Water • Temporary Water Use Authorization(TWUA) Alaska Oil and Gas Conservation Commission (AOGCC) • Sundry Application to Plug and Abandon (one application per each well) Alaska Department of Environmental Conservation(ADEC) Division of Environmental Health and Water • Temporary Camp Authorization Alaska Department of Fish and Game(ADFG) Division of Habitat • Title 16(Fish Habitat) Permit Application Division of Wildlife Conservation • Bear/Wildlife Interaction Plan United States Fish and Wildlife Service(USFWS) Division of Migratory Bird Management-Migratory Birds Treaty Act • Request for Clearance Division of Migratory Bird Management-Bald and Golden Eagle Protection Act • Request for Clearance State Historic Preservation Office(SHPO)-Section 106 Historic Preservation Act • Archeological Clearance 3 • Major Contracted Parties Alaska Earth Sciences(AES) Logistical support has been provided by Anchorage-based Alaska Earth Sciences throughout the duration of the project from 2009/2010 through the close of the 2016 season. Steve Barnwell also served as a drilling consultant under AES during the 2016 P&A operations. Tyonek Native Corporation/Native Village of Tyonek Local hires were utilized whenever possible through the Native Village of Tyonek/Tyonek Native Corporation. Hires included positions of bear guards, laborers,etc. Ormat also contracted temporary lodging,storage facilities,equipment use,etc., in Tyonek throughout the course of the project. Please see Appendix B for recent communications with the Native Village of Tyonek/Tyonek Native Corporation. Cardno Inc. Cardno Inc. (formerly Cardno Entrix) has provided the environmental permitting and compliance support throughout the project's history,from prior to the 2010 field season through the present. Payne Geothermal LLC Allison Payne of Anchorage-based Payne Geothermal LLC served as well-site geologist and operations manager during the 2010 and 2011 field seasons. Payne Geothermal also conducted the annual well inspection in 2014. Brief History of Project Operations • Ormat's 2010 field season included extensive geophysical surveys and the drilling of two shallow wells(less than 1,000 feet),wells 62-2 and 67-34. For complete details on the 2010 field season, please see the 2010 DNR Completion Report. • In 2011,Ormat drilled deep well 26-11 to a total depth of 3,988 feet. For complete details on the 2011 field season, please see the 2011 DNR Completion Report.At the close of the 2011 season,drill core from the 2010 and 2011 field seasons was donated to the Alaska Geologic Materials Center for research and educational purposes. • In 2012,Ormat contracted a geohazard study to determine a feasible safe location for a power plant in the central portion of the volcano,closer to recent volcanic activity, and likely closer to a geothermal system at depth,as evidenced by numerous warm/hot springs. • In 2013, brief field investigations were carried out by Ormat personnel to site potential future wells. Well inspections were completed by Ormat personnel. • In 2014,well inspections were completed by Payne Geothermal LLC. • In 2015, plans were initiated for the P&A operations, but the plans were put off until the following year. Well inspection requirement was waived by AOGCC for 2015. 4 • • • 2016 field operations included three components: (1)the P&A of the three existing geothermal wells as per AOGCC regulations; (2)the dismantling/burning/removal of the remaining camp and drilling infrastructure and materials;and (3)the completion of restoration and rehabilitation of all well sites and the temporary camp site,to the satisfaction of the ADNR. 2016 field operations occurred on Alaska State Land, located within Ormat's three remaining lease tracts.These include:well site 62-2 and the camp site were located on lease tract number 001(ADL 391354);well site 67-34 was on lease tract number 002 (ADL 391355);and well site 26-11 was on lease tract number 007 (ADL 391360). 2016 Field Operations Schedule July 12—begin mobilization of materials from Beluga/Tyonek to Mt.Spurr July 15—July 16-P&A at well site 26-11 July 17—July 18—P&A at well site 62-2 July 19-20—weather delay July 20—July 22—P&A at well site 67-34 July 23-27—burning of timbers,clean-up of materials, rehabilitation work July 28—final rehabilitation activities completed; last crew off the mountain Field work was completed ahead of anticipated schedule. Plug and Abandonment of Three Geothermal Wells P&A operations at the three wells were achieved using a fly-in rig,the Discovery I Drill,which utilizes a Kubota V3800T 100HP diesel engine,a wire line winch with swaged cable,an FMC L09/420 pressure pump model, and a single cylinder mast module with 14,000 pounds pull back. A summary of the technical operational details is provided here. For complete technical operational details, please refer to Ormat's final AOGCC well completion report in Appendix A. P&A of Well 26-11 —Technical Summary Well Bore Properties Prior to Entering the Well: • Wellhead Pressure:0 PSI • Fluid level: "325 ft. • Casing: 3.5-in.from surface to 3,170 ft. • Fish:780 ft.of 2.36-in. core rod left in well from initial drilling. • Total depth:3,988 ft. 5 • Though difficulties were encountered,well 26-11 was successfully plugged and abandoned from 1,730 ft to surface.The cement cap in place will be sufficient to prevent any possible inflow zones that might exist around the casing shoe at 3,070 ft.from migrating up the casing string. Any residual cement discharged at surface during the P&A process was successfully captured and removed from location.All timbers leftover from the original drilling process and those used in the P&A process were removed from the site.The well cap was buried 5 ft. below grade and back filled along with the containment area to match the existing terrain. Finally,this pad was reseeded and proper reclamation completed. P&A of Well 62-2 —Technical Summary Well Bore Properties Prior to Entering the Well: • Wellhead Pressure:0 PSI • Fluid level:^'174 ft. • Casing:4.5 in.from surface to 100 ft. • Open hole:3.8 in.from 100-822 ft. • Total depth:822 ft. Though a bridge in open hole was encountered,well 62-2 was successfully plugged and abandoned from 822 ft to surface.The cement in place was also sufficient to plug any inflow zones that might exist.Any residual cement discharged at surface during the P&A process was successfully captured directly in a barrel and removed from location. All timbers used in the P&A process were removed from the site.The well cap was buried 5 ft. below grade and back filled along with the containment area. Finally,this pad was reclaimed to match the existing terrain. P&A of Well 67-34—Technical Summary Well Bore Properties Prior to Entering the Well: • Wellhead Pressure:7 PSI • Fluid level:surface • Casing:4.5 in.from surface to 100 ft. • Tubing: 2.375 in.from surface to 1000 ft. • Open hole:3.8 in.from 100-1000 ft. • Total depth: 1000 ft. Though the slotted liner was plugged off,well 67-34 was successfully plugged and abandoned from both inside the liner and in the annulus from 1000 ft to surface.The cement in place was also sufficient to plug any inflow zones that might exist.There was no residual cement discharge during the P&A process and all timbers used in the P&A process were removed from the site.The well cap was buried 5 ft. below grade and back filled along with the containment area. Finally,this pad was reclaimed to match the existing terrain. 6 • 0 Burning and Removal of Project Materials Ormat had maintained some wooden camp infrastructure and rig timbers on site from the 2010 and 2011 seasons for reuse.The materials were utilized during the 2016 season, and then burned on-site in accordance with ADEC open burning policy and guidelines (18 AAC 50 as amended through May 5, 2015). Burning lasted from approximately July 23 until July 27. All remaining noncombustible waste, including plastic, metal, and other materials (very low volume)was hauled out and disposed of at the ADEC approved Class Ill Beluga Landfill in Tyonek. Rehabilitation of the Land The footprint of the Mt. Spurr Geothermal Exploration Program has been modest. Much of the existing ground cover on the south-eastern flanks of Mt. Spurr volcano is composed of loose volcanic debris from recent eruptions, often referred to as volcanic"cinders."This natural gravel-type ground covering was only minimally disturbed in field operations between 2010 and 2016 at well sites 62-2 and 67-34, and the camp site.The lower elevation deep well site 26-11 is a more vegetated area, and required more clearing and reseeding. Rehabilitation of the land followed the plans as stated in the 2016 Amendment to the Plan of Operations. Details of the rehabilitation for each site are provided here: Well Site 62-2 Minor excavations were required at well site 62-2 to complete the P&A operations in 2016.The cinders at well site 62-2 were then re-graded, and the land now shows only very minor evidence of recent disturbance (see photos of well site 62-2). Reseeding was not required in this naturally rocky landscape. The sparse natural vegetation that is able to survive among the cinders at this site is expected to make a full return as it did after the close of drilling operations in 2010. eW f , . Y � ,. ,.. 44e + ,. n.. - —, may^' b + .' Setting up the drill pad at site 62-2. 7 • • Site 62-2 after rehabilitation was completed. Well Site 67-34 Well site 67-34 required minor excavation during P&A operations in 2016. At the close of the P&A operations,the excavations were backfilled with locally present cinders and graded to match the surrounding slope (see photos). Vegetation in this area is naturally extremely sparse, particularly due to the rocky terrain and slope of the land. Reseeding was therefore not required. r • Site 67-34 prior to commencing operations in 2016. 8 • • Installed drill pad at site 67-34. Site 67-34 after rehabilitation was completed. Well Site 26-11 Well site 26-11 is located at a lower elevation than the other drill sites, and has a natural soil cover and naturally more vegetation than the higher elevation sites. The land at this site was cleared in 2011 at the start of the drilling season, and since that time vegetation quickly returned to the site. Only minimal additional clearing of young grasses was required prior to 2016 P&A operations. Minor excavations were required for P&A operations in 2016. At the close of the P&A operations,the excavations were backfilled and graded to match the surrounding terrain (see photos).The area was then reseeded with Creeping Red Fescue. 9 • • F Aerial view of well site 26-11 prior to commencing 2016 operations. ' • 4,4 t ; Close-up view of disturbed area at well site 26-11 after rehabilitation. 10 • 0 a 4. mak 44' * * -4-1:::,,,,..„!` � ' ; _,..,,,,40,:7t1.. w IS a am '"`�. I+'., �, : �`�,., ". x „,.;',.,%.-,..,z;-.,,..;,-..,-,,-...-,•,., yx^ d*`. c.. "I.,n. 1 -,:,,-...0,-'--.A.,„ ., y a ky r”, a s F � .. .. . ' ' .. a ....4„:, • ./'?:14,...- r4P4' tw s-',, Cty 1,n *1, #a ,1. •Lamp4. h,5. 0 , - r a`i= 'y ° 'fr "# I dJ. ';',...'.1/4.....,......„;;'",,,---- �,- r J,,:,- aF • ze .4,- .....:,-.--;::44.------ ,�., _x \. ... . - Another view of well site 26-11 after rehabilitation. (Light patches are sawdust.) Temporary Camp Site The temporary camp site is also located in an area of naturally sparse vegetation, covered mostly by volcanic cinders with some low lying berry bushes and other shrubs. There was minimal impact to the landscape at the camp during its use from 2010-2016.The only regrading required was after filling in the temporary outhouses. Reseeding was not required due to the natural rocky groundcover. ''1111- - 1„'-'-',,,,..,,, _________.-01.1 j ,Pi .- _ "at .w i:�Ctu� 1*.. .. Camp site prior at the onset of 2016 operations, with remaining infrastructure from 2010/2011. 11 • Camp site after all materials were removed and rehabilitation was completed. Another view of camp site after rehabilitation. 12 • DNR Site Visit ADNR representative Tom Barrett was on site on Friday,July 22 to assure that the project was operating according to the approved Plan of Operations and to assure that land reclamation/rehabilitation was being carried out to the satisfaction of the State of Alaska. ADNR had no noncompliance findings or complaints during the site visit. AOGCC waived their requirement for well site inspections in 2016. Topics of Concern from Original 2010 DNR Plan of Operations As per Ormat's original approved Plan of Operations in 2010, here are the required topics of concern for this completion report: a. Completion date and description of activity including status, safety concerns, and issues affecting surface interests. Completion date P&A operations took place on Mt. Spurr between July 15 and July 22, 2016. Demobilization of the drill rig and other equipment,and land rehabilitation occurred between July 23 and July 27. Burning of the remaining combustible materials, largely timbers from the rig support and some remaining wooden infrastructure from the camp shelters also lasted from July 23 until July 27. Demobilization of the camp site, and final clean-up and rehabilitation activities were completed on July 28.The last members of the field crews departed the lease areas on July 28. Description of Activities Activities conducted were as outlined in the 2016 Amendment to the Plan of Operations, and were completed ahead of schedule.The technical portions of the P&A were carried out with some modifications from the original plan,and were all approved by the AOGCC. Removal of materials and burning of remaining wooden infrastructure were carried out as outlined in the Plan of Operations. Rehabilitation and reseeding of the land was also carried out as planned. Details provided above. Safety concerns • There were no significant safety issues during the brief field operations in 2016. • As noted in previous reports, Mt. Spurr has previously been used as a firing range. During the 2010 and 2011 season,several Unexploded Ordinances (UXO's)were found throughout the lease areas. No additional UXO's were found in the 2016 season. • There were some weather delays due to high winds,and the helicopter did not operate on some of those days for safety reasons. • One crew member suffered a minor back injury while moving a fuel drum. Full recovery is expected. • Bears were sighted from camp on several occasions in 2016, but never came near enough to pose a threat. • No bird nests were discovered at any work sites in 2016. 13 • • Issues affecting surface interests There were/are no other known issues affecting surface interests. b. A statement describing the incidents and corrective actions taken on any noncompliance findings, spills, fires, incidents and complaints. There were no incidents or noncompliance findings,spills,fires,or complaints during the 2016 season. c. A statement describing clean-up activities conducted, the method of debris disposal, and a narrative description of known incidents of surface damage. Clean-up activities At all three drill sites and the camp,all timbers and other materials were removed from the sites by helicopter.Visual inspection was used to retrieve any remaining materials. Remaining timbers and other combustible materials were burned at the camp site.A magnet was used to retrieve any remaining metal debris from the ground. Containment pits,trenches,and any other holes or disturbed areas were backfilled and regraded to match the surrounding terrain. Creeping Red Fescue seed was used to reseed well site 26-11,the lower elevation well site, in places where the ground had been disturbed.The camp site and higher elevation drill sites did not require reseeding,as the ground surface in those areas is covered with volcanic tephra/gravel,and vegetation is naturally sparse. Combustible Debris Disposal All remaining combustible materials were burned on site.This mostly included the large timbers from the drill rig supports, and wooden materials from the camp shelters.ADEC open burn regulation guidelines were followed to ensure safety during the burning process. Non-combustible Debris Disposal Non-combustible waste materials were hauled off site by helicopter and disposed of at the ADEC approved Class Ill Beluga Landfill in Tyonek. One small container of Stanadyne Lubricity hazardous material was taken to the Eagle River Municipal hazmat site for disposal. Surface damage No surface damage occurred,except the minor excavations for containment pits,etc.,that were then back-filled with the excavated soil and re-graded. 14 • • 2016 Water Sources and Water Usage Ormat held ADNR Temporary Water Use Permit(TWUP)A2010-98 for 2010 field operations,which was then amended for 2011 operations. In 2016 Ormat was approved for Temporary Water Use Authorization (TWUA) A2016-70. Water use during 2016 operations was modest compared with former water use,as there was no active drilling, and the field campaign was brief, approximately two weeks. Water withdrawal was required for cement mixing to install in the existing wells, camp operations, and miscellaneous uses. Location of water use varied from approximately 200-800 feet away from water withdrawal points. Discharge was onto adjacent land. Water sources used in 2016 were the same sources as used in 2010 and 2011 field operations. All the water sources were intermittent/seasonal streams,which are unnamed. Due to the dynamic nature of the hydrology on the side of an active volcano, it's never certain which streams will be flowing in any given year. Thus,the TWUA authorized a variety of potential water sources for each drill site and the camp site. Please see map below for locations of water sources. Note that drill sites are designated DH on the map. As designated on the map below those water sources utilized in 2016 were: 11-15 for drill site DH 26-11; 10-12 for drill site DH 62-2; 10-11 for drill site DH 67-34; and 10-09 for the camp site. St1000 515000 MONO WON 600100 Sf 0000550000 554050 53]000 550000 "�.!/ • 1 • 4 • ./j f�f P Ormat - Mt. Spurr Water Source Locations A Water Source P&A Well 544000 546000 514010 647000 510000 549000 550000 551L'JO 55i000 550010 15 • Approximate volumes of water use during the 2016 field season were as follows: • Unnamed stream 11-15 near well site 26-11 Utilized July 15—16: 1200 gal used for cement mixing '1000 gal tool washing, misc. per day Total usage:^3,200 gal • Unnamed stream 10-12 near well site 62-2 Utilized July 17-18: ^'750 gal for cement mixing 1000 gal tool washing, misc. per day Total usage:^2,750 gal • Unnamed stream 10-11 near well site 67-34 Utilized July 20-22: —600 gal for cement mixing 1000 gal tool washing, misc. per day Total usage: 3,600 gal • Unnamed stream 10-09 near Camp Site Utilized July 13—July 28: Average^'600 gal/day for 16 days Total usage: "9,600 gal Photographs of Water Sources: its* • Unnamed stream 11-15 near well site 26-11—before operations 16 • • -'n,,Ct a+'., ., ., f .i-N s tii i . ,,, ,a. -t*--- r Unnamed stream 11-15 near well site 26-11-during operations �y q �f t p l,.-,-.--;,-.,-44,--t F {AAS Y fr,-‘-.,,,,,,. .:..;„.0. + :,Js y 1 + i� w I "l ' R e l ,H l" .."443 i F 1 .1.r s _.„ '- •_ ' „P,,- I -' ,;'n, _,+I d*'-1 4 3a {�•i,,is -' t _ - ti..•i°' W 4 0i Y . °�7 '.,"" a'�> is '�7 4 <' .,,u e ,. L -, _ �; .I% �1-.. "":, ,.: :' M ' �'`~ . 2 k. ..4....,,,„y f'''',..: '•:.7.-_Af. ..Q..L; ';'4.7'.....0' 7�k:+.�¢ . '- am_ Unnamed stream 11-15 near well site 26-11-after operations 17 • • +G4T_ ,rte .,„:.5.7.,,,,,,}15.61.4.4. , ,,t:i.,,,,, ,..,,. --,,, (.4 t,..., ; , ,., r,.....,,; , ._,,,, iv, Vit_.. 7. int' 4. +.t \("Sc ppµ .* ' ,4'''''' Mme *) ., x r $- .,y " 5 :; ,4 .-r Jr, , #' 4.1.-„r.,,,?,. y, ,,x x L ,-,2-‘,?,-: g,-*#s,- Ta, 4V— N ✓b+: .,- '.yiyq•" `s_ ' .w ' es-," Y F 4� aa ".' - � �, {�---4t�,� F; �fcT -,:,ry" +'T Aft . ,S nay •Unnamed stream 10-12 near well site 62-2-before operations ,-t,;,.: :.1 ",T Yom° -€'' • 4)1 t t-,,,,1,_.* ,i.' i � 'SY . 1.F f GS'•° � R ; . :__41----,....„--7.9.-7.-4- 1,-....-. . ' x , �s. .1,11 0. a....g, . ,eme �- s f * -en trt 4 Vr I I 4117, SR. +'.4�/ LL .71 Unnamed stream 10-12 near well site 62-2-during operations 18 • S is Unnamed stream 10-11 near well site 67-34-before operations Unnamed stream 10-11 near well site 67-34-during operations 19 0 • L ,ra .,,,,,"....•-.,." ,- ar" • . „," ....... ,.„.....z...4„ .„ -,,,., , TN ' . . -. '"-"'-'..: - " - * - -•— = . 4 -:-.. - te,_ .;s.��t � �.....,.?=• f . mak -8 3 .; «.. y ,.. nit. s Unnamed stream 10-09 near Camp Site-during operations u , ' . • •• w� n --� R_ ,r� 3... 1"•, , h'�� *xi,f�,y°"�R.' 4� 4,;:t,',,,-.,..''.',..':';-=',:,„'-''.14.,-,.."::i. `,`'F* t [ u: .... i, ,'-°- E - av } b 'ig 7. .� i - : Unnamed stream 10-09 near Camp Site-after close of operations 20 • 0 Appendix A. AOGCC Well Completion Report MT. SPURR 2016 PLUG AND ABANDON PROJECT FINAL REPORT — 26-11, 62-2, and 67-34 Elton J Colbert Ormat Nevada Inc. Table of Contents • Objective — Intention of the project, goals and brief statement on the results. • Preparation — The project preparation and equipment used. • Plug and Abandon Process for 26-11 — How the project was conducted, obstacles, and quantities. The cutting of each wellhead, the completion cap and conclusion. • Plug and Abandon Process for 62-2 — How the project was conducted, obstacles, and quantities. The cutting of each wellhead, the completion cap and conclusion. • Plug and Abandon Process for 67-34 — How the project was conducted, obstacles, and quantities. The cutting of each wellhead, the completion cap and conclusion. • Timber Disposal — The burning of all timbers originally brought in by Ormat. • Appendices — P&A well diagram for each well. Objective To close out Ormat's project located at Mt. Spurr, Alaska. The project consisted of (3)temperature core holes, this report outlined the plug and abandon process. Core holes 26-11, 62-2, and 67-34 are located on state lands leased by Ormat. The specific project areas are located in ADL 391360/lease tract 007, ADL 391354/lease tract 001, and ADL 391355 -tract 002 respectively. The purpose of this project was to plug, cap, and abandon the geothermal exploration holes at all three sites. The end result was a successful P&A and reclamation of each as outlined in the approved programs. This final report contains the entirety of the process and other related activities. Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project—Final Report 1 • • Preparation Since there is no access to the site overland, all material was brought in (and taken out) via helicopter. Serving as a base of operations, a temporary camp was setup for personnel to live onsite while to project was conducted. The camp was in-part setup using existing timber decks left on location from the initial drilling of all three wells in 2010/2011. All other camp material was flown in approximately a week prior to entering the first well. Access to each well site to-and-from the main camp was also achieved via helicopter. The ten-member crew consisted of a cook, driller, driller's helper, laborer, Ormat consultant, Ormat representative, camp manager, camp manager's helper, bear guard, and pilot. A portable core rig was brought in by i; Alaska Earth Sciences whom Ormat hired ..»-, to handle all the equipment coordination as ,....40,-, ' ,�'". - KK outlined in the state approved P&A `_� � �- program. The rig was assembled and the op,*410-1 � ` P&A process conducted from a temporary platform built from existing timber decks left on location. Water for both the camp ander ,� '4 f the rig was provided by permitted stream '=., �. ,-� �; sources and pumped to each location. A ...�� , , containment basin was set under the water pump located near the stream. (Picture at right: rig &platform) . Containment basins were also built around the well and were used to catch any residual cement that may spill out or might be displaced during the P&A process. The project was also expected to displace some well water and possibly some non-toxic '— formation/drilling material which would drain out a side valve through an installed hose -- -. � beyond the containment basin. (Picture at _ ;,,,. .{ right: containment basin) Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project—Final Report 2 • PIM! and Abandon Process for 26-11 Well Bore Properties Prior to Entering the Well: • Wellhead Pressure: 0 PSI • Fluid level: -325 ft. • Casing: 3.5-in. from surface to 3170 ft. • Fish: 780 ft. of 2.36-in. core rod left in well from initial drilling. • Total depth: 3988 ft. After rigging up, the goal was to cement from the bottom up using 2.22-in. core rod (BTE) run in 10 ft. lengths from the surface. In an attempt to enter the fish at the bottom of the well, 1110 ft. of 1.75-in. core rod (AQ) was used at the bottom of the P&A string. All went according to the approved program until 1730 ft. of cementing rod was in the hole. According to the manufacturer, the rig was rated well beyond the weights and depths that it would be subjected to during the project. When a depth of 1730 ft. was reached, the top chuck on the rig slipped and the tubing dropped. A mechanical foot clamp had been installed by field personnel as a precaution and this device caught the tubing at surface before it had a chance to fall downhole. The entirety of this incident is outlined in external document Mt Spurr 26-11 - P&A Incident 7-15-16. At that point, operations were shut down for the day and Ormat's representative reached out to the AOGCC to request a revision to the P&A program: that we cement from 1730 ft. up with no further attempt to go deeper. The AES crew, Ormat's representative, and Ormat's consultant felt that it was not safe to attempt a greater depth with the existing rig. Approval was granted that evening and so the following day the crew moved forward with cementing from 1730 ft. up. Cementing Process: Portland cement with -27% Gel was mixed at surface in accordance with the approved drilling program. The cement was pumped away in (8) different batches while the tubing was pulled in (5) segmented lengths. The following batch #'s represent an accurate account of the process. 1. Pumped -100 gal. (263 ft.) of slurry - measured fluid level at 138 ft. 2. Pumped -190 gal. (503 ft.) of slurry - water was displaced at surface. Stopped pumping until displaced water stopped. 3. Pumped -50 gal. (132 ft.) of slurry - water then cement were displaced at surface. Pulled 560 ft. of BTW rod. Measured fluid level at 87 ft. 4. Pumped -50 gal. (132 ft.) of slurry - water then cement were displaced at surface. Pulled 60 ft. of BTW rod and 430 ft. of AQ rod. 5. Pumped -110 gal. (289 ft.) of slurry - water then cement were displaced at surface. Pulled 500 ft. of AQ rod. Measured fluid level at 85 ft. 6. Pumped -90 gal. (237 ft.) of slurry- only cement was displaced at surface. Pulled final 180 ft. of AQ rod. Note: at this point the master valve was shut and batches #7 & 8 were bull headed through the side inlet valve to the pressures listed. Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project—Final Report 3 • • 7. Pumped -30 gal. (79 ft.) of slurry-to a WHP of 600 PSIG. Bled off pressure to check cement level: cement at surface. 8. Pumped -30 gal. (79 ft.) of slurry - to a WHP of 1,000 PSIG. Left the well shut in. Quantities: • Actual Hole Volume: 657 gal. equal to 1730 linear ft. (I.D. of well's BTW casing to achievable depth) • Total Slurry Pumped: 651 gal, equal to 1713 linear ft. • Slurry Displaced: Two barrels (-84 gal) of displaced slurry was collected. • Displaced Water: Considering the initial fluid level was at -300 ft. prior to running cementing rod, approximately 540-560 gal. (1430 ft.) of fluid was displaced at surface. • Slurry Properties: Average Density: 11.43 lb/ft3, Average Viscosity: 32.46 At this point the top portion of the well was full of cement and the crew started rigging down. It was decided to hold off on the final P&A process (cut wellhead and weld cap) until after the cementing of all three wells was completed. The rig and related equipment were then flown to 62-2. Some of the timbers from 26-11 were used to construct the pad at 62-2 but most were flown out and used for well pad 67-34. Eventually the pad was cleared of all timbers and equipment. Notes: 1:',4„;, • All residual cement was caught in the containment basin and was collected and flown out for proper ,:r� disposal. (Picture at right: full barrel of cement over � • flow.) .' • Any displaced water was allowed to drain beyond the '_ containment basin in a manner that did not alter the ` existing topography. • See Appendix A for a final diagram of the well fv' plugged and abandoned. Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project—Final Report 4 • Cut Wellhead and Weld Completion Cap: After the cementing of all three wells was completed, the crew returned to 26-11 to cut off the wellhead and a portion of surface casing at 5 ft. below grade. As shown in Picture 4 there was good cement to surface. Picture 5 shows the marker as outlined in the P&A program. - - • x. r /i• gyp( 0 ti • • ' • • Picture 4 Picture 5 Conclusion for 26-11: Though difficulties were encountered, well 26-11 was successfully plugged and abandoned from 1730 ft to surface. The cement cap in place will be sufficient to prevent any possible inflow zones that might exist around the casing shoe at 3070 ft. from migrating up the casing string. Any residual cement discharged at surface during the P&A process was successfully captured and removed from location. All timbers leftover from the original drilling process and those used in the P&A process were removed from the site. The well cap was buried 5 ft. below grade and back filled along with the containment area to match the existing terrain. Finally, this pad was reseeded and proper reclamation completed. Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project—Final Report 5 S Plug and Abandon Process for 62-2 Well Bore Properties Prior to Entering the Well: • Wellhead Pressure: 0 PSI • Fluid level: -174 ft. • Casing: 4.5 in. from surface to 100 ft. • Open hole: 3.8 in. from 100-822 ft. • Total depth: 822 ft. After rigging up, the goal was to cement from the bottom up using only 1.75-in. core rod (AQ). While running in, we tagged shallow in open hole at 424 ft. We were able to wash past obstruction to 525 ft. where we encountered a 2nd harder tag and we were unable to wash past this point. It was decided to cement from here up. Cementing Process: Portland cement with -27% Gel was mixed at surface in accordance with the approved drilling program was used. The cement was pumped away in (5) different batches while the tubing was pulled in (2) segmented lengths. The following batch #'s represent an accurate account of the process. 1. Pumped -190 gal. (317 ft.) of slurry- pulled 310 ft. of AQ rod. 2. Pumped -190 gal. (317 ft.) of slurry- pulled final 210 ft. of AQ rod. Measured fluid level at 170 ft. 3. Pumped -190 gal. (317 ft.) of slurry from surface - still no water or cement displaced at surface. Measured fluid level at 22 ft. 4. Pumped -60 gal. (158 ft.) of slurry- cement observed at surface. Note: at this point the master valve was shut and batch #5 was bull headed through the side inlet valve to the pressures listed. 5. Pumped -24 gal. (63 ft.) of slurry- to a WHP of 600 PSIG. Left the well shut in. Quantities: • Actual Hole Volume: 318 gal. equal to 525 linear ft. (I.D. of well's PQ casing and open hole to achievable depth) • Total Slurry Pumped: 654 gal, equal to 1171 linear ft. • Slurry Displaced: -1/2 barrel (-21 gal) of slurry was displaced straight into barrel. • Displaced Water: Very minimal amount mixed with cement displacement. Not quantifiable. • Slurry Properties: Average Density: 11.84 lb/ft3, Average Viscosity: 31.16 At this point the top portion of the well was full of cement and the crew started rigging down. It was decided to hold off on the final P&A process (cut wellhead and weld cap) until after the cementing of all three wells was completed. The rig and related equipment were then flown to 67-34. The timbers from 62-2 were eventually flown out to the camp burn site. Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project—Final Report 6 • • Notes: • All residual cement was caught directly in a barrel via a hose from the side valve. On this P&A, no overflow spilled into the containment basin. (Picture at right: barrel of cement over flow from 26-11.) • If there was any displaced water, it ended up in the partially filled barrel on location. • This well took —350 additional linear feet(160 gal.) beyond the total well bore capacity for cement to reach surface. This means that we pushed cement past the 525 ft. bridge to TD and into formation sealing off the entirety of the well and any inflow zones. • See Appendix B for a final diagram of the well plugged and abandoned. Cut Wellhead and Weld Completion Cap: After the cementing of all three wells was completed, the crew returned to 62-2 to cut off the wellhead and a portion of surface casing at 5 ft. below grade. As shown in Picture 4 there was good cement to surface. Picture 5 shows the marker as outlined in the P&A program. a 4 , , 5 h w s ft yr I 4'44- le)7 Picture 4 Picture 5 Conclusion for 62-2: Though a bridge in open hole was encountered, well 62-2 was successfully plugged and abandoned from 822 ft to surface. The cement in place was also sufficient to plug any inflow zones that might exist. Any residual cement discharged at surface during the P&A process was successfully captured directly in a barrel and removed from location. All timbers used in the P&A process were removed from the site. The well cap was buried 5 ft. below grade and back filled along with the containment area. Finally, this pad was reclaimed to match the existing terrain. Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project—Final Report 7 • • Plug and Abandon Process for 67-34 Well Bore Properties Prior to Entering the Well: • Wellhead Pressure: 7 PSI • Fluid level: surface • Casing: 4.5 in. from surface to 100 ft. • Tubing: 2.375 in. from surface to 1000 ft. • Open hole: 3.8 in. from 100-1000 ft. • Total depth: 1000 ft. When we first arrived, 67-34 appeared to be leaking. After digging it out it was discovered a side outlet ball valve had been pulled open (perhaps by a bear). This well originally had a diesel cap on it to prevent freezing at surface and while we were able to easily close the valve, the diesel cap had long since drained out. This well has slotted liner in it but it was uncertain if we could pump cement through the slots and up the annulus as outlined in the approved program. After rigging up, we hooked up to the liner but were unable to pump anything down the liner up to 800 PSIG. We then hooked up to the annulus via one of the side valves and were able to pump (1) annulus volume (313 gal.) away with (0) wellhead pressure. Since we were able to pump down the annulus we requested a revision to the original program from the AOGCC. Instead of pumping down the liner and up the annulus, we asked to run AQ rod down the liner and fill it with cement every -500 ft. (exactly as the other 2 wells were P&A'd). Then, we would hook up to the wing valve and pump cement to 150% excess the annulus volume away. Approval was granted that same day. Liner cementing process: Portland cement with -27% Gel was mixed at surface in accordance with the approved drilling program. The cement was pumped away down the liner in (2) different batches while the tubing was pulled up in (2) segmented lengths. The following batch #'s represent an accurate account of the process. 1. Pumped -190 gal. (792 ft.) of slurry - pulled 500 ft. of AQ rod. Displaced an equal amount of water. 2. Pumped -40 gal. (208 ft.) of slurry - pulled final 500 ft. of AQ rod. Displaced an equal amount of water. Note: at this point cement was seen at surface and the liner portion was shut in. Quantities: • Actual Liner Volume: 230 gal. equal to 1000 linear ft. (I.D. of well's liner) • Total Slurry Pumped: 230 gal. equal to 1000 linear ft. • Slurry Displaced: None. By well number (3) the crew was very adept at cementing to surface with no excess. • Displaced Water: One full tubing volume (230 gal.) was displaced as surface discharge. • Slurry Properties: Average Density: 12 lb/ft3, Average Viscosity: 30.5 Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project—Final Report 8 • e Annulus cementing process: Portland cement with -27% Gel was mixed at surface in accordance with the approved drilling program. The cement was pumped away through a side valve in (3) different batches. The following batch #'s represent an accurate account of the process. 1. Pumped -140 gal. of slurry- (0) well head pressure. 2. Pumped -190 gal. of slurry- (0) well head pressure. 3. Pumped -190 gal. of slurry- (0) well head pressure. Note: at this point 520 gal. had been pumped away or -150% of the annulus volume and the well was shut in for the night. The following morning we tagged solid cement at 5 ft. down in the liner and 22 ft. down the annulus. A small top-job was performed in each. Quantities: • Actual Annulus Volume: -350 gal. equal to 1000 linear ft. (area between the open hole portion and the O.D. of the well's liner) • Total Slurry Pumped: 520 gal, equal to -150% excess of the annulus volume. • Slurry Displaced: None • Displaced Water: None • Slurry Properties: Average Density: 12.47 lb/ft3, Average Viscosity: 31 At this point the well was full of cement and the crew started rigging down. The rig and related equipment were then flown to camp in preparation for de-mobilization. The timbers were also flown out to the camp burn site. Notes: • No residual cement was discharged at surface and no overflow spilled into the containment basin. • All displaced water was non-toxic and considered in-line for surface discharge as outlined in the original P&A program. • This annulus took 150% excess(520 gal.) beyond the total annulus volume for cement to reach surface. This means that we pushed cement into formation sealing off the entirety of the well and any inflow zones. • See Appendix C for a final diagram of the well plugged and abandoned. Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project—Final Report 9 • • Cut Wellhead and Weld Completion Cap: After the cementing of all three wells was completed, the crew returned to 67-34 to cut off the wellhead and a portion of surface casing at 5 ft. below grade. As shown in Picture 4 there was good cement to surface. Picture 5 shows the marker as outlined in the P&A program. ar /.v . • ' •pt ti „ • ,lw • • Picture 4 Picture 5 Conclusion for 67-34: Though the slotted liner was plugged off, well 67-34 was successfully plugged and abandoned from both inside the liner and in the annulus from 1000 ft to surface. The cement in place was also sufficient to plug any inflow zones that might exist. There was no residual cement discharge during the P&A process and all timbers used in the P&A process were removed from the site. The well cap was buried 5 ft. below grade and back filled along with the containment area. Finally, this pad was reclaimed to match the existing terrain. Timber Disposal It was decided that the approved process of burning wood timbers at two separate locations (lower 26-11 and upper 67-34/62-2 areas) was too risky considering the potential for fire hazard. Over the course of ten days all of the timbers from three well pads and a fourth location (staging area near 26-11) were flown to the main camp where a suitable fire area was established. Once there, all the wood from the entirety of the project was burned in an area that was easier to supervise and control. At the conclusion of the burn, all nails/screws were sifted out. Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project—Final Report 10 • APPENDIX A MT SPURR CORE HOLE 26-11 FINAL P&A WELL DIAGRAM LATITUDE 61° 14'51.9" N, LONGITUDE 152°05'2.2"W INITIAL WELL BORE FROM SURFACE AT 5°ANGLE FROM VERTICAL WITH AZIMUTH OF 318°TRUE NORTH ALL DEPTHS REFERENCED TO KB ELEVATION: 1693 FT MSL APPROX.3 FT ABOVE Gr. 5.66-in. HOLE * 5.66-in. 144 Ibtft PW Casing PW CASING SHOE 85 FT • • ••• 4.88-in PQ. HOLE 4.5-in. 11.3 lb/ft HWT CASING • 4.5-In.NWT CASING SHOE 452 FT • 1730 ft.of CEMENT NOTE: 1730 ft. MAXIMUM CAPABLE DEPTH OF P&A RIG • .• , 3.5-in. 11.3 lb/ft HQ ROD 3.80-in. HQ HOLE 4. 3.5-In,HO ROD SHOE 3170 FT 780 ft UNRETRIEVABLE 3-in. NQ HOLE NQ CORE ROD LEFT ON BOTTOM NOT DRAWN TO SCALE ORMAT NEVADA 8/5/16 TD 3988 FT MD Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project—Final Report 11 • • APPENDIX B MT SPURR CORE HOLE 62-2 FINAL P&A WELL DIAGRAM LATITUDE 61° 15'01.03°N, LONGITUDE 152°05' 11.33"W (N)CONG.TO ELOW GRADE. ALL DEPTHS REFERENCED TO KB CUT ALL GAS11%17RINGS TO APPROX.3 FT ABOVE Gr. 5-FT BELOW GRADE.WELD ON STEEL CAP WITH NUMBER ELEVATION:2410 FT MSL (E)5.66-in. HOLE to 50 FT—y �": s. a :* :4 .r ::*=.:"':»74:.''''' (E)4,5-in. 11.7 lbfft HWT CASING (E)4.88-in PQ. HOLE to 105 FT (E)4.5-in.HWT CASING SHOE 100 FT 4:•:* . `*'•``';•:. r:e. g. FIRST BRIDGE AT 424 FT. �' (PASSABLE) tI-,II�� • SECOND BRIDGE AT 525 FT. (E)3.80-in. HQ HOLE ;.+`� ` (IMPASSABLE BUT PERMEABLE) =•''';::�"" ENOUGH CEMENT TO FILL ENTIRETY '•` OF WELL BORE. aV i (E)TD 822 FT MD ?`+� NOT DRAWN TO SCALE Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project— Final Report 12 • • APPENDIX C MT SPURR CORE HOLE 67-34 FINAL P&A WELL DIAGRAM LATITUDE 61° 15'20.96"N,LONGITUDE 152°07'00.64"W (N)CONC.TO 5-FT BELOW GRADE. ALL DEPTHS REFERENCED TO KB CUT ALL CASING STRINGS TO 5-FT APPROX.3 FT ABOVE Gr. BELOW GRADE.WELD ON STEEL CAP WITH NUMBER ELEVATION:2878 FT MSL 5.68-in.HOLE to 30 FT-' • :y .t..ti,�, . A .. :i • A"' 4.5-in.11.7 lb/ft HWT CASING 4.88-in PQ.HOLE to 108 FT 4.5-in.HWT CASING SHOE 100 FT CONCRETE FROM SURFACE TO •' Y " 1000 FT. IN BOTH THE LINER AND THE ANNULUS. 3.80-in.HQ HOLE ` " : 2.375-in.STEEL TUBING ?, •>' •, WITH BULL NOSE ON BOTTOM TO 1000 FT MD °.;?..4•,• NOT DRAWN TO SCALE ORMAT NEVADA 8/18116 Ormat Nevada Inc. —Mt. Spurr Plug and Abandon Project—Final Report 13 • • Appendix B. Communications with Tyonek Native Corporation and the Native Village of Tyonek • • ORMAT %4-.3 Tyonek Native Corporation 1689 C Street, Suite 219 Anchorage,AK 99501-5131 Attn: Connie Downing Director of Alaska Lands Native Village of Tyonek P.O.Box 82009 Tyonek,AK 99682-0009 Ormat Nevada Inc. is sending this communication to Tyonek Native Corporation and the Native Village of Tyonek to inform of the close of the Mt. Spurr Geothermal Exploration Project. In 2009-2010, Ormat began active exploration for a source of renewable geothermal power from the Mt. Spun volcano,near the Native Village of Tyonek. The goal was to provide a quality,local source of clean renewable energy for Alaskans. Unfortunately,after significant investments by both the State of Alaska and Ormat,no viable geothermal resource has been identified on Mt. Spun. In July of 2016,Ormat plugged and capped the three geothermal wells on Mt. Spurr,and fully rehabilitated the land where exploration activities had been conducted. Prior to fieldwork beginning in 2010,Ormat met with the Tyonek Native Corporation Board and the Native Village of Tyonek Council. We also created a Cooperative Agreement to agree to work together for the benefit of all involved in the exploration project. We appreciate the open dialogue and the support that we have received from the people of Tyonek throughout the life of the project. Ormat and our subcontractors Alaska Earth Sciences(AES)were able to contract various employees and services from Tyonek Native Corporation and the Native Village of Tyonek over the years from 2010- 2016. We hired bear guards, laborers and other field workers,as well as contracting temporary housing and long-term materials storage from Tyonek. More recently,AES and Ormat have worked with TNC, the Tyonek Construction Group,and the Native Village of Tyonek to contract housing,equipment staging area,barge landing area,heavy equipment use,vehicle use,etc,for the final phase of the project in July of 2016. We appreciate all of the collaboration. We wish the Tyonek Native Corporation and the Native Village of Tyonek a prosperous future. cott Kessler Land&Lease Manager,Business Development ORMAT NEVADA INC. 6225 Neil Road • Reno, NV 89511-1136 • Phone : (775) 356-9029 • Fax : (775) 356-9039 E-mail: ormat@ormat.com Web site:www.ormat.com • • Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Thursday,July 21, 2016 4:08 PM To: 'Elton Colbert' Cc: Allison L Payne; Scott Kessler Subject: RE: Mt. Spurr 67-34 Update (PTD 210-098) • Elton, You have approval to modify the sundry#316-291 as outlined below. Bullheading cement down the annulus followed by spotting the cement inside the 2 3/8"tubing/liner with AQ rod will accomplish the same goal. A fully cemented and secure wellbore. Good luck with the rest of the operation. Regards, Guy Schwartz Sr. Petroleum Engineer AOGCC907-301-4533 cell Noy . 82.°j6 907-793-1226 office CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Guy Schwartz at(907-793-1226) or(Guy.schwartz@alaska.aov). From: Elton Colbert [mailto:ecolbert@ ormat.com] Sent: Thursday, July 21, 2016 3:44 PM To: Schwartz, Guy L(DOA) Cc: Allison L Payne; Scott Kessler Subject: Mt. Spurr 67-34 Update Guy, per our conversation we were on high wind hold for—36 hours and were just today able to get on 67-34. After hooking up to the slotted liner we were unable to pump anything down the liner up to 800 PSIG. We then hooked up to the annulus via one of the wing valves(the opposite one shut)we were able to pump one annulus volume (313 gal.)away with 0 WHP buildup. Since we were able to pump down the annulus we are requesting a revision to the original program. Instead of pumping down the liner and up the annulus, we'll first run AQ rod down the liner and fill it with cement—every 500 ft. (exactly as the other 2 wells were p&a'd).Then,we will hook up to the wing valve and pump cement 150%of annulus volume away. Thanks for your assistance/understanding and please let me know if you have any further questions.Otherwise, we will still notify you 48 hours prior to the removal of the well heads and a full P&A report will be issued for each well. Regards, Elton Colbert I Resource Engineer I ecolbert(c�ormat.com Main: (775)356-9029 Ext.32226 I Cell: (775)830-5570 6225 Neil Road, Reno, NV 89511 ORMAT 1 of nith&\��1//p7 4., THE STATE Alaska Oil and Gas o fLASI�:A Conservation Commission A .#__;_ ;- 333 West Seventh Avenue r GOVERNOR BILL WALKER--"_--.! Anchorage, Alaska 99501-3572 Main: 907.279.1433 ALAS Fax: 907.276.7542 www.aogcc.alaska.gov Elton J. Colbert Resource Engineer SCA JUL 1 2 2016 Ormat Nevada Inc. 6225 Neil Road Reno,NV 89512 Re: Exploratory Field, Mt. Spurr Field Undefined Geothermal Pool, Upper Chaka-R 67-34 Permit to Drill Number: 210-098 Sundry Number: 316-291 Dear Mr. Colbert: 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. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration 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. Sincerely, Cathy P. oerster 30t . Chair DATED this 30 day of June, 2016. RBDMS ( A JUL 0 6 2016 RECEIVED STATE OF ALASKA MAY 24 2016 ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS � �� 20 AAC 25.280 1.Type of Request: Abandon l ' Plug Perforations❑ Fracture Stimulate ❑ Repair Well ❑ Operations shutdown❑ Suspend ❑ Perforate ❑ Other Stimulate El Pull Tubing ❑ Change Approved Program❑ Plug for Redrill ❑ Perforate New Pool ❑ Re-enter Susp Well ❑ Alter Casing ❑ Other: ❑ 2.Operator Name: 4.Current Well Class: 5. Permit to Drill Number: Ormat Nevada IncExploratory �;4 • Development ii210-098 • 3.Address: Stratigraphic El Service ii 6.API Number: 6225 Neil Rd,Reno,NV 89512 50- 283-20139-00-00 • 7.If perforating: 8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Upper Chaka-R 67-34 Will planned perforations require a spacing exception? Yes ❑ No ❑ 9.Property Designation(Lease Number): • 10.Field/Pool(s): State Lease ADL 391355 - Tract 2 Mount Spurr Field Undefined Geothermal Pool 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD: Effective Depth TVD: MPSP(psi): Plugs(MD): Junk(MD): 1000 • 1000 0 psi Casing Length Size MD TVD Burst Collapse Structural Conductor Surface 100-ft HWT 100-ft • 100-ft Intermediate Production Liner 1000-ft 2.375-in 1000-ft • 1000-ft Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): Packers and SSSV Type: Packers and SSSV MD(ft)and TVD(ft): 12.Attachments: Proposal Summary ® Wellbore schematic ® 13.Well Class after proposed work: Detailed Operations Program I BOP Sketch ❑ Exploratory NI • Stratigraphic❑ Development❑ Service ❑ 14.Estimated Date for 15.Well Status after proposed work: CommencingOperations: July 18, 2016 • OIL WINJ WDSPL ❑ ❑ ❑ Suspended El 16.Verbal Approval: Date: ' GAS El WAG ❑ GSTOR ❑ SPLUG El Commission Representative: GINJ ❑ Op Shutdown ❑ Abandoned pci • 17.I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Contact Elton J Colbert Email ecolbert@ormat.com Printed Name Elton J Colbert Title Resource Engineer Signature Phone Date 775-830-5570 3-2-16 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: \ta - 29 l Plug Integrity i BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance D Other. d,�'�Y n ai� i e/u_'€, L..r.;'11-- r �3�p»tom-ra- G_1pp 'o at•-.Aper'/1 £O ,4Ac_ Zs. 037 Post Initial Injection MIT Req'd? Yes ❑ No ❑ Spacing Exception Required? Yes ❑ No Subsequent Form Required: I ®— L/O.7 RBDMS L-` JUL 0 6 2016 4147 ,/ APPROVED BY Approved by: "Pe 1CA.,____ COMMISSIONER THE COMMISSION Date:6 - 30 .-/ Submit Form and Form 10-403 Revised 11/2015 Approved application is valid for 12 onths from the date of approval. Attachments in Duplicate ORIGINAL rfr/ja, A S.2?,, R m AT May 13,2016 Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission RECEivaD 333 West 7th Ave., Ste. 100 Anchorage,Alaska 99501 MAY 2 4 2016 Delivered via email AOGCC Re: Mt. Spun Geothermal Exploration Applications for Sundry Approvals(P&A) Permit to Drill No. 210-117 for Well 62-2 issued on September 3, 2010 Permit to Drill No.210-098 for Well 67-34 issued on September 21, 2010 - Permit to Drill No. 211-069 for Well 26-11 issued on June 2,2011 Dear Ms. Foerster, Ormat is currently in the process of preparing for 2016 field operations,which will include the • plug and abandonment of the three existing geothermal exploration wells on Mt. Spurr, and rehabilitation of the leased land. Ormat has received DNR-DOG approval of the 2016 Amendment to the Plan of Operations (attached). Other agency permit applications are currently being processed. We appreciate AOGCC's previous review of the draft 2016 Plug and Abandonment programs. In recent weeks, Ormat has made some modifications to the former drafts of the technical programs. The main changes are: (1) We now propose to fully cement all three wells,in order to ensure that plugging of the wells . is complete. This will require the use of the drill rig on each well, and may require slightly more field time,but we feel that this is justified to ensure thorough,effective plugging of the wells. (2) We request that the P&A of the three wells be completed without the use of a blow out preventer(BOP). All three wells were drilled with no indications of high pressures or gases • present at depth. Analysis of rock core also indicates that there is no danger of encountering • pockets of gas/high pressure zones. Wells have been monitored annually since 2010/2011 and pressure gauges have continually read '0' psi. We feel that there is no reasonable likelihood of • encountering blow out conditions on these wells. Use of a BOP would add additional time and expense that we do not feel is logically required. Check valves will be used at surface on all • downhole cementing equipment. ORMAT NEVADA INC. 6225 Neil Road • Reno, NV 89511-1136 • Phone : (775) 356-9029 • Fax : (775) 356-9039 E-mail: ormat@ormat.com Web site:www.ormat.com law Please find attached the modified P&A Programs for each of the three wells. We are submitting the programs in PDF format, and also in Word format, should AOGCC wish to insert any comments directly into the Word documents. Also attached are the Applications for Sundry Approvals for each of the three wells. Finally,we are attaching the approved DNR Amendment to the Plan of Operations,for reference on any other project details. Please do not hesitate to contact us for further clarification, Sincerely,. 411P" 4L- Scott Kessler Land&Lease Manager, Business Development Ormat Nevada,Inc. Elton Colbert Resource Engineer Ormat Nevada,Inc. aP(6<el;;C-- Attached to this message are the following 11 documents: • P&A Programs for the three wells(in PDF format)—3 documents • P&A Programs for the three wells (in Word format)—3 documents • Applications for Sundry Approvals for the three wells—3 documents • DNR 2016 Amendment to the Plan of Operations— 1 document • Copy of cover letter— 1 document Page 2 of 2 f r ORMAT NEVADA INC. DRILLING PROGRAM PROJECT DESCRIPTION P&A EXISTING TEMPERATURE GRADIENT CORE HOLE 67-34 Mt.Spurr Prospect,Alaska I. PROJECT DESCRIPTION A. Introduction and Location Ormat Nevada Inc. (Ormat) proposes to Plug and Abandon the temperature core hole: 67-34 located on state lands leased in the Mt. Spurr prospect, Alaska. The specific project area is located in ADL 391355/ lease tract 002. The purpose of this proposed program is to plug, cap, and abandon existing geothermal resources at this site. Ormat anticipates activities to commence after July 15 in the summer of 2016. Figure 1 depicts the proposed design for the new core hole. B. Proposed Plug and Abandonment a. Program: For the plug & abandonment, Ormat proposes to follow the program in Appendix A Ormat plans to satisfy AOGCC and ADEC plugging and abandoning criteria by cementing the entirety of the well from total depth (TD) to surface. b. Containment Basins: A containment basing will be built around the well using timber decks left on location from the initial drilling of all three temperature gradient wells. The containment basin will be used to catch any non-toxic material that may spill on, out, or over during the P&A process. The P&A is expected to displace some well water and possibly non-toxic formation/drilling material which will drain out the wing valve through a hose beyond the containment basins in a manner that will not alter the existing topography. See Appendix A for quantities. At the end of the P&A process, there will be overflow cement indicating the plug has reached surface. This is to be to be flown out for proper disposal. There is a diesel fuel cap on this well. The overflow line will initially be connected to containers that will catch all liquid until it is verified that all the diesel has been contained. The remaining overflow material will be water and possibly non-toxic formation/drilling material. All diesel material is to be flown out for proper disposal. c. Wood Timbers: Once the P&A process is complete for all three wells, Ormat is requesting permission to collect all the timber into two locations (lower 26-11 and upper 67-32/62-2 areas), construct a pit of suitable size (or use one of the existing containment areas) and burn in place. At the conclusion of the burn, the containment area will be back-filled with the excavated native topsoil and revegetated. PLUG & ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 2 d. Un-Reclaimed Containment Areas: In addition to the burn pit, and other un- reclaimed containment areas will be back-filled with excavated native topsoil and revegetated. e. Other: i. Well Site Access: Helicopters will be used. ii. Water: Water from permitted sources will be used for drilling. C. Personnel Requirements Approximately 4 to 7 workers will be on location at any given time. At the discretion of the contractor, drilling crews will live on site at the permitted camp. Ormat Nevada Inc.—Geothermal Resources Office PLUG & ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 3 FIGURE 1 MT SPURR CORE HOLE 67-34 PROPOSED P&A WELL DIAGRAM LATITUDE 61° 15' 20.96" N, LONGITUDE 152°07'00.64"W (N)CONC.TO 5-FT BELOW GRADE. ALL DEPTHS REFERENCED TO KB CUT ALL CASING STRINGS TO 5-FT APPROX.3 FT ABOVE Gr. BELOW GRADE.WELD ON STEEL CAP WITH NUMBER ELEVATION:2878 FT MSL 5.66-in. HOLE to 30 FT r 4.88-in PQ. HOLE to 108 FT • 4.5-in. 11.7 lb/ft HWT CASING 4.5-in.HWT CASING SHOE 100 FT N,. • 3.80-in. HQ HOLE 2.375-in. STEEL TUBING BOTTOM 20-30 ft. PERFORATED Note:if slots are free of dibris, WITH BULL NOSE ON BOTTOM no rig or tubing will be used to P&A.Cement will be pumped from surface down liner,out slots and up through wing valve. TD 1000 FT MD r NOT DRAWN TO SCALE (*MAT NEVADA 6-22-16 Ormat Nevada Inc.—Geothermal Resources Office PLUG & ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 4 FIGURE 2 k MT SPURR CORE HOLE 67-34 PROPOSED P&A 4 1/2-in CASING DIAGRAM (N)2.25-in BTW Drill rod run —4— through open ended master valve with check valve installed at each cementing phase only (E)2-in.NPT Nipple by if slots are clogged Plain End Welded to HWT e Class 150 Gate Valve (N)2-in.Kill Line i j � � i Valve as"Master Valve" —_�- (N)2-in.3M Ball Valve---"\--6. . \ I I (--_--"-_ I ' (E)2-in.3M Ball Valve /* i I I i To be used as possible tit cement inlet of slots are .9(' liIll II 11 clogged. (N)2-in. Displacement Line 7 p I I 0;:.t._ (N)4-Way Cross 11 Finished Grade C A P . (E)Relocated 11 I (E)2.375 Steel Piping Pressure Gage Perforated at bottom 20-30 ft. 11 II Hung off of flange at surface 7....____ 1 1 -.41-------(E)HWT Casing Note:If slots are free of dlbris, 11 11 no rig or tubing will be used to 1 �r PM.Cement will be pumped f from surface down liner,out I NOT DRAWN TO SCALE slots and up through wing valve. I i II i ORMAT NEVADA INC. 6/22/16 Ormat Nevada Inc.-Geothermal Resources Office PLUG & ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 5 II. PROTECTION OF THE ENVIRONMENT All Ormat and drilling contractor personnel will be informed of Ormat's policy regarding undue degradation of the environment. These measures are intended to prevent all unacceptable impacts from occurring as a result of these drilling operations. A. Fire Prevention The drilling sites and access paths were already cleared of all vegetation. The cleared areas have experienced new growth since then. Fire extinguishers will be available on the site and around the drilling rig. Water that is used for drilling will also be available for fire fighting. Personnel will be allowed to smoke only in designated areas. Any special permits required for fires, welding, and etc., will be obtained. Note: all personnel onsite involved in P&A process to have H2S portable monitors attached to person B. Prevention of Soil Erosion Minimal soil erosion problems are anticipated from this project as cut and fill slopes were completed during the drilling process. A site inspection by AES will verify the any necessary site work. C. Surface and Ground Water Quality Protection Ground water zone is between 10 and 100-ft below grade. The location of the operation was selected to minimize the potential for surface water pollution from runoff during drilling, the same applies to the P&A process. Pollution from the P&A process will be prevented by the containment basins as outlined in the Proposed Plug and Abandonment section. Any displaced water not absorbed into the system will discharge to surface in a manner that will not alter the existing topography. Only non-toxic, non-hazardous mud constituents will be utilized during P&A operations. Waste mud, and any displaced fluids from the well site will be discharged into the containment area as allowed by exemption pursuant to AS 46.03.100 (e)(4) and waiver pursuant to 18 AAC 60.900(a)(1). The wells will be P&A's to prevent interzonal migration of fluids. Ormat Nevada Inc.—Geothermal Resources Office PLUG &ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 6 D. Air Quality Protection Fugitive dust generation will be minimized by watering as necessary. E. Prevention of Noise To abate noise pollution, mufflers will be utilized on engine-driven equipment. F. Protection of Public Health and Safety In addition to the Ormat's Emergency Contingency Plan and Blowout Action Plan, instructions to work crews and contractors regarding compliance with regulations will be provided to protect employee and public health and safety (such as Welding Procedures). These plans and procedures can be made available upon request. G. Protection of Fish, Wildlife, and Botanical Resources Direct impacts to fish and wildlife habitat and botanical resources will be minimized by clearing only the small area required for each pad. H. Protection of Cultural Resources Cultural resources will be protected as required by the State Historic Preservation Office. I. Non-Drilling Solid Waste Disposal Solid waste materials (trash) will be deposited at an authorized landfill at Beluga. Portable chemical sanitary facilities will be used by all personnel and material will be removed. J. Environmental Monitoring Regular, routine visual inspections of the sites will be conducted by the on-site operational personnel to quickly detect and correct any operational problems that could lead to environmental problems. The process itself and all displaced fluids will be monitored by visual inspection by the drilling personnel and the well-site engineer to detect any problems which may be occurring downhole. Environmental specialists will monitor and inspect the operations, if necessary, during the course of the project. Ormat Nevada Inc.—Geothermal Resources Office PLUG & ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 7 ORMAT NEVADA INC. APPENDIX A - PLUG & ABANDONMENT PROGRAM DESCRIPTION Existing Temperature Gradient Core Hole Mt. Spurr Field, Undefined Geothermal Pool, Spurr West 67-34 (All depths referenced to KB unless specified) Location: 1595 FEL, 935 FSL, T14N R16W Sec. 34 Permit No: 210-098 Ground Elevation: 2881 FT MSL KB: Approximately 3-ft above ground Objective: Plug and abandon observation well and reclaim site in the Mt. Spurr Prospect. Regulatory Agency: Alaska Oil and Gas Conservation Commission and the Alaska Department of Environmental Conservation. For the plug & abandonment, Ormat will follow Alaska Administrative Code: 20 AAC 25.105. Abandonment of wells Sections C - I And furthermore, in accordance with U.S. Department of Interior's Geothermal Resource Operational Orders (GRO) #3 1.B(1)—This well has a slotted liner in the well, as a result, the cementing job will attempted to be made in one process from the surface. The goal is that the entirety of the well will be cemented. Note: all cement quantities are incorporating 50% excess. • Total cement to P&A well from 0— 1000 ft is 120-ft3 o Displaced water: 598 gal. 1. Notify the AOGCC representative 48 hours before plug and abandonment commences in order to witness the cutoff of the wellhead and capping of the casing. 2. Rig up water pump above master valve. To verify perforations at bottom of liner are unobstructed, pump water until one complete hole volume is displace out of the wing 't valve. If water dead heads and liquid is not displace, move in rig and move to next step, otherwise proceed to Step #11. 3. Move in and rig up Alaska Earth Services (AES) rig on Mt Spurr Temperature Gradient Hole and nipple up according to Figure 2. �� .. .i, to 4. Setup containment basin and attach overflow line to wing valve according to Figure 2. Yft.`� Ormat Nevada Inc.—Geothermal Resources Office PLUG & ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 8 5. Drill rod to be used for P&A process is 2.25-in BTW (Actual size is 2.225-in). 6. Run-in-hole (RIH) to ^25-ft. above TD. a. Notes: i. In all cases, while cementing, the delivery rod shall be moved up in a fashion so as not to get stuck. Pump cement and pull-up, pump cement and pull-up, etc. ii. At all times maintain a greater distance between the top of cement and bottom of drill pipe than the distance between the master valve and first connection at surface in case drill pipe needs to be dropped and the master valve closed in emergency situation. cfY 7. Pump & pull first plug, 500 linear ft. of cement (30-ft3 assuming 50% excess) of Type I-II ( ` Portland Cement with ^'27% Gel (or approved equivalent) from 500-1000-ft. / 8. WOC and tag top of cement. If tag is deeper than 500 ft pump additional cement. Otherwise, proceed to next step. 9. Pump & pull second plug, 500 linear ft. of cement (30-ft3 assuming 50% excess) of Type I-II Portland Cement with ^'27% Gel (or approved equivalent) from Surface-500-ft. 10. Once liner is cemented, connect cement pumping equipment to wing valve (make sure opposite valve is disconnected of all fittings and open). Squeeze cement in one wing valve until cement returns are seen out 2nd wing valve. At this point the well shall be considered completely P&A'd. Proceed to Step #14. 11. Hookup cement equipment to same water pumping equipment. r,,� 12. Pump 1,000 linear ft. cement plug (120-ft3 assuming 50% excess) from surface to the bottom of the well with Type I-II Portland Cement with ^27% Gel (or approved equivalent) 1,000-ft—surface (see Figure 1) until cement returns are scene out the water displacement wing valve. 13. WOC and tag top of cement. Pump additional cement if tagged depth is deeper than 5-ft. Otherwise, proceed to next step. 14. Cut off all existing casing strings to 5-ft below ground. Weld on a steel cap to existing casing stub. Weld on "flag" with stenciled information according to 20 AAC 25.120 (Well abandonment marker). Photo document. 15. Nipple down and rig down AES equipment. 16. Remove containment basin any other existing structures. Ormat Nevada Inc.—Geothermal Resources Office PLUG &ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 9 17. Re-contour surface to as near as practicable to its original condition using whatever tools are necessary to accomplish the task. Ormat Nevada Inc.—Geothermal Resources Office PLUG &ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spun Prospect,Alaska Page 10 MUD PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLE 67-34 Mt.Spurr,Alaska Use gel-based mud and water system with additives as necessary for system control. The following parameters should be maintained: Mud Weight: <9.2 pounds per gallon unless it is necessary to weight up to control artesian flow. Viscosity: 38 to 45 API FL: 8 to 12 PV: 8 to 12 YP: 8 to 12 Initial Gel: 3 to 10 pH: 8 to 9.3 Continuously remove solids from mud pits if applicable. Maintain enough barite on site to kill well. Keep H25 control chemicals on site. Ormat Nevada Inc.—Geothermal Resources Office PLUG &ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 11 CEMENTING PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLE 67-34 Mt.Spurr,Alaska Casing: HWT casing Depth: 0-100-ft Hole Size: PQ and HQ Proposed Cement Volume: 120-ft3 (50% Excess) Proposed Cement Weight: >10 lb/gal Proposed Cement: Type I-II Portland Cement with —27% Gel Specific Gravity 3.15 Slurry Yield —4.8 ft3/sack or—36 gal/sack =—25 sacks Water Requirements 30 gallons/sack = ^'749 gallons Total Mixing Water N/A Ormat Nevada Inc.—Geothermal Resources Office PLUG & ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 12 APPENDIX B - EMERGENCY PLANS EXISTING TEMPERATURE GRADIENT CORE HOLE 67-34 Mt.Spurr,Alaska A. Injury Contingency Plan In the event injuries occur in connection with an Ormat Nevada (Ormat) operation, specific and immediate attention will be given to proper transportation to a medical facility. B. Blowout Contingency Plan 1. No blowout equipment will be installed or used in the P&A process. Cement tubing will be run through open master valve. 2. Cold water and barite will be stored at the wellsite for use in killing the well in case of an emergency. The wing valve will contain a two-way connection. One for displaced liquid to exit and one for emergency cold water to kill the well. 3. In the event of an emergency, such as a blowout, immediate efforts will be taken to shut surface valves after dropping drill pipe from surface. 4. At all times the distance between the bottom of the drill pipe and nearest obstruction shall be greater than the distance between the master valve and the first connection at surface. 5. If the means to shut-in or control the flow from the well is lost, the Drilling Supervisor is to: C. Initiate appropriate control procedures. 1. Arrange for any injured persons to be taken by the helicopter to the nearest medical facility, as shown in the Injury Contingency Plan. 2. Contact the Project Manager and advise of the situation. The Drilling Supervisor will follow the same procedures stated in the Spill or Discharge Plan. 3. Initiate any further or supplemental steps that may be necessary or advisable, based on consultation with the Project Manager. 4. Be certain that all safety practices and procedures are being followed and that all members of the drilling crew are performing their assigned duties correctly. 5. Attempt to control the well at the rig site with rig personnel and supervisors. 6. If fluid flow is of an uncontained nature, attempt containment with required equipment by constructing sumps and/or dikes as rapidly as possible and as needed. 7. Attempt to construct and/or fabricate and install any wellhead facilities require to contain fluid flow at the well or casing head. 8. Maintain a continuing inspection of the pad area immediately around the well site subject to erosion that may cause failure to the drilling rig structure. Take necessary steps to avert areas of possible erosion by excavation and rebuilding of the area as necessary. 9. Following complete containment of the well, initiate steps to return the area to its normal state prior to the blowout or fluid flow, such as reseeding with similar and approved vegetation. D. Fire Contingency Plan Ormat Nevada Inc.—Geothermal Resources Office PLUG & ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 13 1. Any small fires which occur around the well pad during drilling and/or testing operations should be able to be controlled by rig personnel utilizing on site firefighting equipment. 2. The Forest Service will be notified of any fire, even if the available personnel can handle the situation or the fire poses no threat to the surrounding area. 3. A roster of emergency phone numbers will be available on-site so that the appropriate firefighting agency can be contacted in case of a fire. E. Hazardous Gas Contingency Plan Ormat does not expect to encounter hazardous gases during the P&A process, however H2S monitors will be available onsite, and a contingency plan will be in place and a copy will be maintained at the rig. Emergency Personnel and Telephone Numbers Fire 911 Law Enforcement 911 Hospital 911 Cnotractor Representatives Alaska Earth Sciences, Inc. 907-205-1217 (cell) Andy Angel - aangel@alaskaearthsciences.com 907-522-4664 (office) CARDNO Allison Payne—allison.payne@cardno.com 907-261-7716 (office) 907-632-3422 (cell) Ormat Company Representatives Ormat Nevada (Reno, NV) 775-356-9029 (office) Scott Kessler- skessler@ormat.com (775) 848-049 (cell) Skip Matlick - smatlick@ormat.com 562-544-5141 (cell) Brad Peters - bpeters@ormat.com 775-225-2288 (cell) Elaina Shope - eshope@ormat.com 775-223-7910 (cell) James Tennison -jtennison@ormat.com 760-562-4000 (cell) Ormat Nevada Inc.—Geothermal Resources Office PLUG & ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spun Prospect,Alaska Page 14 Elton Colbert - ecolbert@ormat.com 775-830-5570 (cell) APPENDIX C - RESERVOIR CONDITIONS EXISTING TEMPERATURE GRADIENT CORE HOLE 67-34 Mt.Spurr,Alaska RESERVOIR PARAMENTERS Temperature was not recorded. Pressure was not measured. APPENDIX D - EXISTING CEMENTING EXISTING TEMPERATURE GRADIENT CORE HOLE 67-34 Mt.Spurr,Alaska CONDUCTOR— No conductor set CASING —4 % in. 11.7 lb. HWT Casing DEPTH —0-100-ft KB HOLE SIZE—4.88-in STEEL TUBING —2.375-in Perforated DEPTH —0-1,000-ft KB HOLE SIZE—3.8-in Used Type I-II Portland Cement with 5% Calcium Chloride Slurry Density— 15 lb/gallon Specific Gravity—3.15 Slurry Yield — 1 ft3/sack Water Requirements—<5.5 gallons/sack Total Mixing Water— N/A Ormat Nevada Inc.—Geothermal Resources Office Lease Plan of Operations Amendment Phase 3 — Abandonment Mt. Spurr Geothermal Exploration July-August 2016 Prepared for: ORMAT` Ormat Nevada, Inc. 6225 Neil Road Reno, Nevada 89511 Prepared by: Cardno, Inc. 3150 C Street, Suite 240 Anchorage, Alaska 99503 Submitted to: State of Alaska Department of Natural Resources Division of Oil & Gas March 18, 2016 Wage Table of Contents Section 1: Introduction 4 Table 1: Geothermal Leases Legal Description 5 Project Location 6 Site Access 6 Figure 1: Regional Area Map 7 Figure 2: Project Location Map 8 Section 2: Project Timeline 9 February-April: Field Work Planning/Permitting/Logistics 9 May/June:Site Visit 9 Early/Mid July: Rig and Equipment Mobilization 9 Approximately July 18 through early August:Abandonment Operations 9 November 2016:Completion Reports due 10 Section 3: Abandonment Operations Program 10 I. P&A of Three Existing Geothermal Wells 10 Ground Elevation: 2413 FT MSL 11 Ground Elevation: 2881 FT MSL 13 Ground Elevation: 1693 FT MSL 15 Ground Elevation: 1693 FT MSL 18 II. Removal/Open Burns of Remaining Camp Infrastructure and Rig Timbers 20 Ill. Restoration and Rehabilitation of Land 21 Well Site 62-2 21 Well Site 67-34 21 Well Site 26-11 21 Temporary Camp Site 22 Section 4: Logistics and Facilities 22 Transportation 22 Temporary Camp Facility 23 Section 5: Permitting Requirements 23 Table 2:Required Permits/Authorizations 24 Permitting Timeline 25 21 Page Section 6: Environmental Topics and Community Outreach 25 Environmental and Safety Training 25 Bear/Wildlife Interaction Plan 26 Community Outreach/Public Involvement 26 Coordination with Subsistence Users 26 Local Hire 26 Section 7: Project Supervision and Communications 27 Appendix A: Plug&Abandonment Program Descriptions 29 Appendix B: Photographs Field Sites (August 2014) 30 Well site 62-2 30 Well site 67-34 31 Well site 26-11 31 Temporary Camp site 32 Appendix C: Bear/Wildlife Interaction Plan 32 31 Page Section 1: introduction Ormat Technologies,Inc. is a leading geothermal developer in the U.S. and globally. Ormat Nevada,Inc. (Ormat),a wholly owned subsidiary of Ormat Technologies, Inc.,won fifteen geothermal leases on Mt. Spurr from the State of Alaska in 2008(see Table 1 below). Ormat spent the 2010 and 2011 exploration seasons conducting a multi-phased geothermal exploration campaign that included a full suite of geophysical surveys,and the drilling of two shallow(1000 feet)and one deep(-4000 feet)exploration wells. Drilling was focused on the eastern portion of the volcanic edifice,farther from the active hazards of Crater Peak in the central area of the volcano,and somewhat closer to the nearest infrastructure. The goal of the exploration program was to locate a geothermal resource capable of supporting the development of a utility-scale geothermal power plant to supply baseload,renewable energy to Alaska's railbelt. Though some of the geophysical survey results and early drilling were promising,the exploration wells did not intersect any elevated temperature gradients. In 2012,Ormat contracted a geohazard study to determine a feasible safe location for a power plant in the central portion of the volcano,closer to recent volcanic activity,and likely closer to a geothermal system at depth,as evidenced by numerous warm/hot springs. Subsequent to and as a result of this early exploration work,Ormat concluded the resource was inadequate to support power generation. In 2012 and 2013,Ormat relinquished 12 of the original 15 leases,maintaining only the three lease tracts which contain well sites. In the winter of 2015,Ormat announced plans to plug and abandon(P&A)existing wells pursuant to the terms and conditions of State regulation. Ormat is submitting this 2016 Amendment to its existing 2010 Lease Plan of Operations for approval by the Alaska Department of Natural Resources(ADNR). The Plan Amendment describes Ormat's Phase 3 (Abandonment)of the Mt. Spurr Geothermal Exploration Project(Project).The Abandonment includes 3 components: (1)the Plugging and Abandonment(P&A)of the 3 existing geothermal wells as per Alaska Oil and Gas Conservation Commission(AOGCC)regulations;(2)the dismantling/burning/removal of the remaining camp and drilling infrastructure;and(3)the completion of restoration and rehabilitation of all well sites and the temporary camp site,to the satisfaction of the ADNR. Ormat will fully comply with all mitigation measures,as outlined in the original 2010 Plan of Operations. Ormat will be the operator of the Project and permittee of record. 41Page Table 1: Geothermal Leases Legal Description Tract Number Section Township Range Meridian 001 35 and 36 14N 16W Seward 1 and 2 13N 16W Seward 002 33 and 34 14N 16W Seward 3 and 4 13N 16W Seward 003 31 and 32 14N 16W Seward 5 and 6 13N 16W Seward 004 35 and 36 14N 17W Seward 1 and 2 13N 17W Seward 005 33 and 34 14N 17W Seward 3 and 4 13N 17W Seward 006 31 and 32 14N 17W Seward 5 and 6 13N 17W Seward 007 11, 12,13,and 14 13N 16W Seward 008 9, 10, 15,and 16 13N 16W Seward 009 7, 8, 16,and 17 13N 16W Seward 010 11, 12, 13,and 14 13N 17W Seward 011 9, 10, 15,and 16 13N 17W Seward 012 7, 8, 17,and 18 13N 17W Seward 013 21 and 22(partial) 13N 16W Seward 014 19 and 20(partial) 13N 16W Seward 23 and 24 13N 17W Seward 015 19,20,21, and 22 13N 17W Seward Note:Lease tracts 001,002 and 007(in bold above)are still held by Ormat. All other leases have been relinquished.Project activities have occurred on the 3 held lease tracts. Lease tract 001 contains the temporary camp site and well site 62-2. Least tract 002 contains well site 67-34. Least tract 007 contains well site 26-11. 51Page Project Location The Abandonment will occur on 3 lease tracts of the 15 geothermal lease tracts originally acquired from the State of Alaska in the Mt. Spurr Geothermal Lease Sale No. 3 on June 16,2008(see Table 1 above). The leases are located approximately 80 miles west of Anchorage(see Figures 1 and 2 below). Abandonment procedures will be limited to the three lease tracts which contain the camp and three well sites. These include:well site 62-2 and the camp site on lease tract number 001 (ADL 391354);well site 67-34 on lease tract number 002(ADL 391355); and well site 26-11 on lease tract number 007(ADL 391360). The Abandonment will occur entirely on Alaska State Land. Please refer to the original 2010 Plan of Operations for a map and complete information on Land Ownership in the vicinity. Site Access The Mt. Spurr leases lie in a remote roadless region,approximately 35 miles west of the nearest infrastructure at the village of Tyonek. As such,all exploration activities have been air-based to avoid expensive,remote ground presence. 2016 Abandonment activities will be helicopter supported. Public access to,or use of,the lease sale area has not been,and will not be restricted, except within 1,500 feet of activities,for reasons of public safety near heavy machinery in operation. Lease facilities and operations have not been and will not be located so as to block access to or along navigable or public waters. 61 Page o i .1C la 1 i ''''.'.1',. •' L� at .. M s: t = Lid .i ♦_ 1 t Y m i� �� + IQj j ` .11. + , f 2 m I f E• e C) CD N t 7- M . r., °' N LO CD if/ S;. rfq u. O { a fa cu co f� rr U e I C) ,'*•,•° , * .,,:: S aye,. I *10t.°a 1' '.i x f J 1,' ya«,�k',. , . - ' .'',..."‘ i -'. t `' -.-...--4,2*t ..-..,t k,c.......32—,,,,t ,A,-;--- 4, ,,-,..,- c . ro • •....maY • 1 QQ g.•'`kA,'-!.t �. = )s= 4'-i614- ati`,,,l„,,,k.' 441. 4 in r Ey my za,. , 'a -0 U 7.4 V mao ° N m C') . ~ O � Illi eso L- i! = 0 - a a> 1-4 r ,I • I) i ,- , r, f . �0 O n) InFm O 4 ,44,4',...;;'--t,N.1' •• -0 ” . 1 -'' .• .fik, :••, G> U bA 6, C O ti.... n .'r.Via.4 .3 Nth ---� co CA cd N..0.0Z.19 N..0.01,19 N O.O0L9 a Q n d Y N d S g w 3 I 16 V Y _ O y 8 fA e c - iD ; j a` C d C jr) 7 egla e e : Q a c : $ a a 7.8 -• rd a o N a) c c Cl) Vi g t 8 i r i w s o -s ~ e i ° 1 a o 4 a w — cN .0 m C T J Y+ o i o 2 : S '' $ S » W : : o g Y 77 e y C N Q o $ Fi % § .q `s " 9 'O ,au 4Q 28 L 11 y ci x x x x $ $ $ :z — _ o' G d o' S o 5 Y U U x z z z z O O.. Wa I : f ' a Q C� 'a O x x x x x x x s x s x 0 0 5 8 F1 0 LLLL!!!!YYYY� fa, : Ai PIP 11, N n v N .4 a 3 S"r t0 � .. 1t ' ' '1,x..1%' L 3 , _ s c t, 1 1. s *cam: d is t '� �, . ,,, .. tit+. ., . 1 Ft p', rt z; L. •75 � �' ',' % , 04 3 ee" 111 t: �9e "Fd to cc c 4 f �.� - Alai 40 in el .I—' • g , u `. >, r 1 0 f CD * 1., ,444.1‘4:la' '''''iiiiii... a. i 41111 ') 1-ilill a .ell �! N a \ r a Lam. # •" 1, rzia` M 47+ 0 7..t. " CO Section 2: Project Timeline February-April: Field Work Planning/Permitting/Logistics Ormat is currently formalizing field work plans,logistics, and preparing applications for submittal to State and Federal agencies. Pending approval of this Amendment to the Plan of Operations,all required applications will be submitted to the appropriate agencies. See Section 5 below for full anticipated Permitting requirements. May/June: Site Visit Brief site visits will be made to each of the three well locations, as well as the former camp location,prior to the start of Abandonment operations. The timing of the site visits will be some time in spring, after most snow has melted from the area, likely in late May or June. The site visits will accomplish the following: • At each well site,the condition of the wellhead will be checked, including the pressure readings at the wellheads. Pressures at all three wellheads have consistently read`zero' psi since the close of drilling, and are anticipated to be `zero' psi presently. • At the camp site,an assessment will be made as to the total volume of lumber and other materials that need to be removed or burned. • Lumber present at the deep well site(26-11)will be assessed as to what will be useable for 2016 operations,and the amount to be burned at the close of operations. • Water sources will be checked to determine if there is sufficient flow from the sources used in past years and/or if new water sources need to be located. • General status of the lease areas will be assessed,to determine if there are any additional cleanup/rehabilitation needs not already addressed. Early/Mid July: Rig and Equipment Mobilization Rig will be mobilized to Tyonek or Beluga in preparation for P&A of deep well. Other equipment will be mobilized for P&A of the shallow wells. Approximately July 18 through early August: Abandonment Operations Abandonment operations are anticipated to begin shortly after the critical migratory bird nesting period ends July 15.At this time,crews will be mobilized to Mt. Spurr. Operations are anticipated to last approximately 17-20 days into early August,dependent upon weather.Ormat recognizes the potential for extreme weather in Alaska and is prepared to adjust the schedule for abandonment activities as the 2016 season requires. See Section 3 below for full details on Abandonment operations. DNR Division of Oil and Gas-(DOG)representatives have expressed interest in being on site to observe some of the Abandonment operations,if possible. Ormat or its contractors will contact the DNR-DOG in 91 Page anticipation of field activities,and will provide helicopter transportation to DNR representatives from Tyonek/Beluga to Mt. Spun. AOGCC representatives may wish to be on site for BOP inspections and/or other times. The AOGCC will be contacted prior to field activities,and Ormat will provide helicopter transportation for AOGCC representatives from Tyonek/Beluga to Mt. Spurr. November 2016: Completion Reports clue Ormat will be submitting the final report on the P&A process and the status on the restoration and rehabilitation of all sites. Section 3: Abandonment Operations Program 1, P&A of Three Existing Geothermal Wells The P&A of the two shallow wells,62-2 and 67-34,is planned to be carried out manually without the use of a rig. The P&A of the deep well,26-11,will be carried out using a fly-in rig.If needed,the rig can also be available to assist with the P&A of the two shallow wells. The fly-in rig will be a Discovery I Drill,which utilizes a Kubota V3800T 100HP diesel engine,a wire line winch with swaged cable,an FMC L09/420 pressure pump model,and a single cylinder mast module with 14,000 pounds pull back. Up to 11 workers are anticipated to be on site during P&A operations; likely 4-7 will be on site for the manual P&A, and up to 11 for rig operations/P&A of the deep well. For complete technical operational details including well/casing diagrams,mud/cementing programs, reservoir conditions,environmental,health and safety information, etc.,please see the Drilling Program Project Descriptions for all three wells in Appendix A herein. Approximate schedule of P&A Activities: Mobilization of the camp,rig,and personnel is anticipated to take 2-3 days. P&A of the shallow wells is anticipated to take approximately 3-4 days per well,while P&A of the deep well is anticipated to take approximately 7 days. Burning and most rehabilitation activities will take place during/after rig activities as weather/crew time allows. Remaining demobilization/cleanup/rehabilitation activities will likely require an additional 2 days. Entire field time is estimated at 17-20 days,plus contingency time for weather delays or unforeseen circumstances. Plug and Abandonment Program Summaries: Below are summaries of the Plug and Abandoment Program Descriptions for each of the three wells to be P&A'd. Please see Appendix A for complete Program Descriptions, including well/casing diagrams, mud/cementing programs,reservoir conditions,environmental,health and safety information,etc. 10IPage Well 62-2 PLUG & ABANDONMENT PROGRAM DESCRIPTION Existing Temperature Gradient Core Hole Mt.Spurr Field, Undefined Geothermal Pool,Spurr West 62-2 (All depths referenced to KB unless specified) Location: 1114 FNL, 1438 FEL,T13N R16W Sec. 2 Permit No: 210-117 Ground Elevation: 2413 FT MSL KB: Approximately 3-ft above ground Objective: Plug and abandon observation well and reclaim site in the Mt.Spurr Prospect. Note: if P&A cannot be achieved with equipment outlined below,the rig will be moved in and its equipment will be used to complete same process.To verify,well will be hooked up to pump to see if water can pumped away before trying to run cement Regulatory Agency:Alaska Oil and Gas Conservation Commission and the Alaska Department of Environmental Conservation. For the plug&abandonment, Ormat will follow Alaska Administrative Code:20 AAC 25.105. Abandonment of wells Sections C-I And furthermore, in accordance with U.S. Department of Interior's Geothermal Resource Operational Orders(GRO)#3 1.B(1)-A cement plug shall be placed across the shoe extending TD"822-FT and to surface.As a result,the entirety of the well will be cemented. • Cement Zone#1-from 822-ft—100-ft(57-ft3)—Displaced water:425 gal. • Cement Zone#2 -from 100-ft—0-ft(9 ft3)—Displaced water:65 gal. • Total max displaced water:490 gal. 11IPage Blowout Prevention Equipment(BOPE) Since the P&A process will take place without the assistance of a rig, and there is currently no pressure at surface, no BOPE will be used.A check valve will be installed in the cement pumping line at surface. 1. Notify the AOGCC representative 48 hours before plug and abandonment commences 2. Move in and rig up on wellhead according to Figure 2. 3. Setup containment basin and attach overflow line to wing valve according to Figure 2. 4. Run-in-hole (RIH)with 2.5-in PVC Tremie Pipe to total depth (TD) at 822-ft and pull up 60-ft. (Deepest point possible if bridging or collapse has occurred.) 5. Pump 822 linear ft. cement plug(99-ft3 assuming 50%excess)on the bottom of the well with Type I- II Portland Cement with^'27%Gel (or approved equivalent)822-ft—surface (see Figure 1).Wait on cement(WOC)for about 8 to 12 hours. 6. RIH and tag top of cement. Pump additional cement if tagged depth is deeper than 5-ft. Otherwise, proceed to next step. 7. Cut off all existing casing strings to 5-ft below ground. Weld on a steel cap on existing casing stub. Stencil in well number on steel cap. 8. Nipple down and rig down AES equipment. 9. Remove containment basin any other existing structures. 10. Re-contour surface to as near as practicable to its original condition using whatever tools are necessary to accomplish the task. 12IPage Well 67-34 PLUG & ABANDONMENT PROGRAM DESCRIPTION Existing Temperature Gradient Core Hole Mt. Spurr Field, Undefined Geothermal Pool,Spurr West 67-34 (All depths referenced to KB unless specified) Location: 1595 FEL, 935 FSL,T14N R16W Sec. 34 Permit No: 210-098 Ground Elevation: 2881 FT MSL KB: Approximately 3-ft above ground Objective: Plug and abandon observation well and reclaim site in the Mt. Spurr Prospect. Note: if P&A cannot be achieved with equipment outlined below,the rig will be moved in and its equipment will be used to complete same process.To verify,well will be hooked up to pump to see if water can pumped away before trying to run cement. Regulatory Agency:Alaska Oil and Gas Conservation Commission and the Alaska Department of Environmental Conservation. For the plug&abandonment, Ormat will follow Alaska Administrative Code: 20 AAC 25.105. Abandonment of wells Sections C- I And furthermore, in accordance with U.S. Department of Interior's Geothermal Resource Operational Orders(GRO)#3 1.6(1)-A cement plug shall be placed across the shoe extending TD^'1000-FT and to surface.As a result,the entirety of the well will be cemented. • Cement Zone#1-from 1,000-ft—100-ft(71-ft3)—Displaced water: 530 gal. • Cement Zone#2 -from 100-ft—0-ft(9 ft3)—Displaced water: 65 gal. • Total max displaced water: 595 gal. Blowout Prevention Equipment(BOPE) Since the P&A process will take place without the assistance of a rig, and there is currently no pressure at surface, no BOPE will be used.A check valve will be installed in the cement pumping line at surface. 13IPage 1. Notify the AOGCC representative 48 hours before plug and abandonment commences 2. Move in and rig up on wellhead according to Figure 2. 3. Setup containment basin and attach overflow line to wing valve according to Figure 2. 4. Pump 1,000 linear ft. cement plug(120-ft3 assuming 50%excess) from surface to the bottom of the well with Type I-II Portland Cement with^'27%Gel (or approved equivalent) 1,000-ft—surface(see Figure 1).Wait on cement(WOC)for about 8 to 12 hours. 5. RIH and tag top of cement. Pump additional cement if tagged depth is deeper than 5-ft.Otherwise, proceed to step 8. 6. If cement deadheads, and does not squeeze through perforated tubing, remove setup from top flange and install on displacement wing valve (remove pressure gauge opposite side). Pump remainder of cement or until returns are seen on opposite wing valve. 7. If cement deadheads in initial wing valve before total volume is pumped, remove setup and install on opposite wing valve and pump away until total volume is achieved or until no more can be pumped. Wait on cement(WOC)for about 8 to 12 hours. 8. Cut off all existing casing strings to 5-ft below ground. Weld on a steel cap on existing casing stub. Stencil in well number on steel cap. 9. Nipple down and rig down AES equipment. 10. Remove containment basin any other existing structures. 11. Re-contour surface to as near as practicable to its original condition using whatever tools are necessary to accomplish the task. 14IPage Well 26-11 PLUG & ABANDONMENT PROGRAM DESCRIPTION Well 26-11 PLAN A Existing Temperature Gradient Core Hole Mt.Spurr Field, Undefined Geothermal Pool, Spurr West 26-11 (All depths referenced to KB unless specified) Location: 1726 FSL, 1228 FWL,T13N R16W Sec. 11 Lat/Long:61°13.72' N, 152°6.21' W Ground Elevation: 1693 FT MSL KB: Approximately 3-ft above ground Objective: Plug and abandon observation well and reclaim site in the Mt. Spurr Prospect Regulatory Agency:Alaska Oil and Gas Conservation Commission and the Alaska Department of Environmental Conservation. For the plug&abandonment, Ormat will follow Alaska Administrative Code: 20 AAC 25.105. Abandonment of wells Sections C-I And furthermore, in accordance with U.S. Department of Interior's Geothermal Resource Operational Orders(GRO)#3 1.B(1)-A cement plug shall be placed across the shoe extending 100-ft above and 100- ft below.As a result, plug#2 would be 200-ft thick and the plugging specifications would be as follows: • Plug#1-100-ft plug from 3888-ft—3988-ft(3.3-ft3)—Displaced water: 23 gal. • Mud from 3270-ft—3888-ft(19-ft3)—Displaced water: 140 gal. • Plug#2-200-ft plug from 3070-ft—3270-ft(8.8 ft3)—Displaced water: 61 gal. • Mud from 150-ft—3070-ft(150-ft3)—Displaced water: 1,123 gal. • Plug#3-150-ft plug from 0-ft—150-ft(8.8-ft3)—Displaced water:58 gal. • Total max displaced water: 1,405 gal. Blowout Prevention Equipment(BOPE) An API 4" 3000 psi annular preventer will be used below±400 ft to TD. BOPE testing will be witnessed by the State of Alaska's Oil&Gas Conservation Commission (AOGCC)or their designated agent. 15 IPage 1. Notify the AOGCC representative 48 hours before plug and abandonment commences 2. Move in and rig up Alaska Earth Services(AES) rig on Mt Spurr Temperature Gradient Hole and nipple up BOPE according to Figure 2. Notify the AOGCC representative 24-hrs before testing BOPE. Test BOPE. 3. Setup containment basin and attach overflow line to wing valve according to Figure 2. 4. Drill rod to be used for P&A process is 2.25-in BTW(Actual size is 2.225-in). First run 900-ft AQ (1.752-in)stinger for NQ portion of well. 5. Run-in-hole (RIH)to total depth (TD) at 3988-ft.(Note: in all cases,while cementing,the delivery rod shall be moved up in a fashion so as not to get stuck. Pump cement and pull-up,pump cement and pull-up,etc.) 6. Pump 100 linear ft. cement plug(3.3-ft3 assuming 10%excess)on the bottom of the well with Type I-II Portland Cement with—27%Gel (or approved equivalent) 3888-ft—3988-ft(see Figure 1).Wait on cement(WOC)for about 8 to 12 hours. 7. Pump drilling mud down hole on top of cemented plug at TD (3888-ft)to 3270-ft. 8. Pump second cement plug across the shoe extending 100-ft above and-100-ft below;the shoe is at 3070-ft KB. Pump 200 linear ft.cement plug(8.8-ft3 assuming 10%excess)with Type I-II Portland Cement with^'27%Gel (or approved equivalent)from 3070-ft—3270-ft; (see Figure 1). WOC for 12 hours. 9. RIH and tag top of cement. Pump additional cement if tagged depth is deeper than 3070-ft. Otherwise, proceed to next step. 10. Pump drilling mud down hole on top of cement plug at TD (3070-ft)to 150-ft. 11. Set 150 linear ft. surface cement plug inside 3.5-inch surface casing. Top of cement plug should be no more than five feet below original ground level. Pump 8.8-ft3(assuming 10%excess)of Type I-II Portland Cement with—27%Gel(or approved equivalent)from 0-ft—150-ft; (see Figure 1). WOC for 12 hours. 16IPage 12. Tag top of cement. Pump additional cement if tagged depth is deeper than 5-ft.Otherwise, proceed to next step. 13. Cut off all existing casing strings to 5-ft below ground. Weld on a steel cap on existing casing stub. Stencil in well number on steel cap. 14. Nipple down BOPE and rig down AES rig. 15. Remove containment basin any other existing structures. 16. Re-contour surface to as near as practicable to its original condition using whatever tools are necessary to accomplish the task. 17IPage Well 26-11 PLAN B (If bottom of well cannot be reached) Existing Temperature Gradient Core Hole Mt. Spurr Field, Undefined Geothermal Pool,Spurr West 26-11 (All depths referenced to KB unless specified) Location: 1726 FSL, 1228 FWL,T13N R16W Sec. 11 Lat/Long: 61° 13.72' N, 152°6.21'W Ground Elevation: 1693 FT MSL KB: Approximately 3-ft above ground Objective: Plug and abandon observation well and reclaim site in the Mt.Spurr Prospect.There is rod that was left in the bottom of this well.This plan is in case we are not able to retrieve the rod or get past it to cement the bottom portion of the well. Regulatory Agency:Alaska Oil and Gas Conservation Commission and the Alaska Department of Environmental Conservation. For the plug&abandonment, Ormat will follow Alaska Administrative Code: 20 AAC 25.105. Abandonment of wells Sections C-I And furthermore, in accordance with U.S. Department of Interior's Geothermal Resource Operational Orders(GRO)#3 1.B(1)-A cement plug shall be placed at the shoe extending 100-ft above.The plugging specifications would be as follows: • Mud from 3170-ft—3988-ft(25-ft3)—Displaced water: 188 gal. • Plug#1- 100-ft plug from 3070-ft—3170-ft(5.8 ft3)—Displaced water:38 gal. • Mud from 150-ft—3070-ft(150-ft3)—Displaced water: 1,123 gal. • Plug#2- 150-ft plug from 0-ft—150-ft(8.8-ft3)—Displaced water:58 gal. • Total max displaced water: 1,405 gal. Blowout Prevention Equipment(BOPE) An API 4" 3000 psi annular preventer will be used below±400 ft to TD. BOPE testing will be witnessed by the State of Alaska's Oil&Gas Conservation Commission (AOGCC)or their designated agent. 18IPage 17. Notify the AOGCC representative 48 hours before plug and abandonment commences 18. Move in and rig up Alaska Earth Services(AES) rig on Mt Spurr Temperature Gradient Hole and nipple up BOPE according to Figure 2. Notify the AOGCC representative 24-hrs before testing BOPE.Test BOPE. 19. Setup containment basin and attach overflow line to wing valve according to Figure 2. 20. Run-in-hole (RIH)to 10-ft above HQ shoe.3160-ft.(Note:in all cases,while cementing,the delivery rod shall be moved up in a fashion so as not to get stuck. Pump cement and pull-up, pump cement and pull-up,etc.) 21. Pump drilling mud down hole on top of NQ section (3988-ft to 3170-ft). 22. Pump first cement plug across the shoe extending 100-ft above;the shoe is at 3170-ft KB. Pump 100 linear ft. cement plug(5.8-ft3 assuming 10%excess)with Type I-II Portland Cement with ^27%Gel (or approved equivalent)from 3070-ft—3170-ft; (see Figure la). WOC for 12 hours. 23. RIH and tag top of cement. Pump additional cement if tagged depth is deeper than 3070-ft. Otherwise, proceed to next step. 24. Pump drilling mud down hole on top of cement plug at TD (3070-ft)to 150-ft. 25. Set 150 linear ft.surface cement plug inside 3.5-inch surface casing. Top of cement plug should be no more than five feet below original ground level. Pump 8.8-ft3(assuming 10%excess) of Type I-II Portland Cement with^27%Gel (or approved equivalent)from 0-ft—150-ft; (see Figure 1). WOC for 12 hours. 26. Tag top of cement. Pump additional cement if tagged depth is deeper than 5-ft.Otherwise, proceed to next step. 27. Cut off all existing casing strings to 5-ft below ground. Weld on a steel cap on existing casing stub. Stencil in well number on steel cap. 28. Nipple down BOPE and rig down AES rig. 19IPage 29. Remove containment basin any other existing structures. 30. Re-contour surface to as near as practicable to its original condition using whatever tools are necessary to accomplish the task. H. Removal/Open Burns of Remaining Camp Infrastructure and Rig Ormat would like to utilize the most environmentally/resource friendly method for removing the remaining infrastructure from drilling operations on Mt. Spurr. The vast majority of the remaining infrastructure is wooden. The wooden materials remaining will include the support frames/floors of the temporary camp structures(see camp site photo in Appendix B), and a variety of wooden timbers used in the drill rig deck at site 26-11. Some of the wooden materials will be reused for P&A operations in the 2016 season. Ormat then proposes to burn all remaining wooden infrastructure on site in either one or two open burns. This will avoid the excessive helicopter time/fuel consumption that would be required to haul out heavy wooden materials. All remaining plastic,metal, and other materials(very low volume)will be hauled out and disposed of properly in the ADEC approved landfill in Beluga. Open burning is regulated by the ADEC Division of Air Quality and the DNR. No permits or written approval are required from ADEC or DNR for an open burn of wooden materials on Mt. Spurr. All burning for this Project will be in accordance with ADEC open burning policy and guidelines(18 AAC 50 as amended through May 5,2015). Open burning of wooden materials will be carried out with safe burning procedures in order to avoid(1) the fire spreading to become a wildfire and(2)to reduce potential air pollution that could create a health hazard or a public nuisance. Vegetation on Mt. Spurr is thin to sparse in most areas, so the risk of a fire spreading to cause a wildfire is minimal. The Mt. Spurr area is also remote from human habitation, so the air pollution concern is also minimal. The following burning guidelines will be followed: • Material to be burned will be kept dry or covered to the greatest extent possible prior to burning • Before igniting the burn,noncombustibles will be separated • Natural or artificially induced draft will be present • To the greatest extent practicable, combustibles will be separated from grass or peat • Combustibles will not be allowed to smolder(burn and smoke without flame) • Burning will be under observation of Ormat employees or contractors at all times • Burning will not be conducted during times of moderate or high winds • Burning will be done in a way that maintains maximum combustion efficiency throughout the burning period 20IPage • Fire-fighting/fire safety equipment and water will be available during the burns • There will be no burning of petroleum-based materials,asphalt,rubber products, or other materials in a way that would give off black smoke • There will be no burning of asbestos materials III. Restoration and Rehabilitation of Land The footprint of the Mt. Spurr Geothermal Exploration Program has been modest. Much of the existing ground cover on the eastern flanks of Mt. Spurr volcano is composed of loose volcanic debris from recent eruptions, often referred to as volcanic"cinders." This natural gravel-type ground covering was only minimally disturbed in 2010 at the shallow well sites 62-2 and 67-34,and at the camp site in 2010 and 2011. The lower elevation deep well site 26-11 is a more vegetated area,and required more clearing in 2011. Well Site 62-2 The cinders at site 62-2 were re-graded at the close of drilling in 2010, and the land now shows virtually no evidence of disturbance(see photo of wellsite 62-2 in Appendix B). The sparse natural vegetation that is able to survive among the cinders at that site has made a full return. Minor excavation will be required at site 62-2 to complete the P&A operations. After operations are completed,site will be regraded. Reseeding will not be required. Well Site 67-34 Well site 67-34 required some minor excavation during the drilling season in 2010. Erosion since that year has mobilized additional cinders,so that there is a small depression present around the wellhead, on the order of an estimated 5 feet wide by 10 feet long by 3 feet deep(see photo of wellsite 67-34 in Appendix B). At the close of the P&A operations at site 67-34,this depression will be backfilled with locally present cinders and graded to match the surrounding slope. Vegetation in this area is naturally extremely sparse, particularly due to the slope of the land. Reseeding will not be required. Well Site 26-II Well site 26-11 is located at a lower elevation,and has a natural soil cover and naturally more lush vegetation than the higher elevation sites. The land at this site was cleared in 2011 at the start of the drilling season,and excavations were made for the well cellar_and the tailings pit. At the close of the 2011 drilling season,the excavated areas were filled in and regraded. Vegetation has quickly returned to site 26-11 (see photo below in Appendix B). P&A operations in 2016 will require additional excavations for the installation of the rig. At the close of the P&A operations,the holes will again be filled and graded to match the surrounding terrain,and the area will again be reseeded. 21 I Page Temporary Camp Site The temporary camp site is also located in an area of naturally sparse vegetation,covered mostly by volcanic cinders with some low lying berry bushes and other shrubs. There was minimal impact to the landscape at the camp during its use in 2010 and 2011. The only regrading required was after filling in the temporary outhouses. Currently there remains some wooden infrastructure at the camp site,which will be burned at the close of the 2016 P&A field season. Any minor carbon residue left on the volcanic rocks from burning should naturally wash away quickly in the wet environment. Reseeding shall be carried out if required. Section 4: Logistics and Facilities Transportation Equipment and Project personnel will be transported by helicopter from both the village of Tyonek and the community at the Beluga Power Plant to the Project site. Tyonek is approximately 35 miles from the Mt. Spurr Project lease area,and Beluga is approximately 40 miles. A dedicated helicopter will be on site at all times,with the exception of when it is hauling supplies, equipment,or personnel between Tyonek/Beluga and Mt Spurr. In rare circumstances,the helicopter may need to fly to Anchorage briefly for repairs or unforeseen circumstances.The helicopter pilot will be housed with other field crew at the temporary camp on Mt. Spurr. Helicopter support will likely consist of a Hughes 500D or E or similar helicopter certified for VFR operations. The Hughes 500D has room for the pilot and 4 passengers. The Hughes 500D on high skids is one of the most maneuverable and capable bush helicopters,with 26 foot rotor blades,sling load capability up to 1200 pounds,and cabin weight capability of up to 1400 pounds. Rig mobilization and demobilization will likely require the use of an additional heavy-load helicopter, such as an A-star or a Hughes 204-205. The additional helicopter would sling heavy rig equipment loads to and from Tyonek/Beluga at the start and close of the Abandonment operations. One fuel cache will be established at the former camp site as a fuel source for helicopter operations. An additional fuel cache will be established at the lower well site 26-11. The fuel caches will be designed with secondary containment in accordance with ADEC regulations. Containers with an aggregate storage capacity of greater than 55 gallons that contain fuel or hazardous substances will not be stored within 100 feet of a water body or within 1,500 feet of a drinking water source. The Project sites will be protected from leaking or dripping fuel and hazardous substances during operations by the placement of drip pans or other impermeable surface liners designed to catch and hold fluids under the equipment. During fuel or hazardous substance transfer,secondary containment or a surface liner will be placed under all container or helicopter fuel tank inlet and outlet points,hose connections,and hose ends. Appropriate spill response equipment,sufficient to respond to a spill of up to five gallons will be on hand during any transfer or handling of fuel or hazardous substances. Trained personnel will attend transfer operations at all times. Helicopter refueling will not occur within the 22IPage annual floodplain. All independent fuel and hazardous substance containers will be marked with the contents and Ormat's or contractor's name using paint or a permanent label. The helicopter vendor will provide safety briefing for all Project personnel regarding all flight operations. Temporary Camp Facility Abandonment operations will be based from the same existing temporary camp facility that was in use during the 2010 and 2011 field operations. The camp is located in lease tract 001,close to well site 62-2. See the original 2010 Plan of Operations for full location details. The temporary camp is located more than 500 feet from fish-bearing streams and water bodies,and more than 1,500 feet from current surface drinking water sources. The temporary camp is not within a sensitive habitat area. Wooden platform floors from the former temporary camp site were left on site at the close of the 2011 drilling season for potential future use. See Appendix B herein for a recent photograph of the remaining camp infrastructure/camp site. Abandonment operations will utilize the remaining wooden infrastructure, plus additional materials,to erect some 5-7 Weatherport-style tent structures. These structures are composed of a steel frame covered by a heavy fiberglass-reinforced canvas cover. The tent covers are secured with steel cables and the frameworks are bolted to the wooden platforms. There will be some 3-4 sleeper tents.The camp will also include a tent with cooking and dining facilities, and an additional 1-2 tents for showers, dry tent,storage,and/or office. A temporary outhouse will be dug on site. An electric bear fence will be installed around the perimeter of the temporary camp facility. ADEC's Division of Environmental Health and Water manages drinking water safety,food service safety, solid waste disposal,and domestic wastewater treatment and disposal for camps. ADEC has combined these guidelines and requirements into a single,consolidated package for operators of remote temporary camps with an average of 24 or fewer people. Ormat will obtain the necessary ADEC temporary camp authorization prior to camp operations and will comply with following applicable guidelines: Potable Water Treatment and Storage Practices,Pit Privy Guide,Graywater Treatment and Disposal Guide,Camp Graywater Handling,Food Condition and Source(certified food service provider),and Safe Camp Kitchens in Bear Country. In addition,camp fuel storage and use(i.e.,small quantities of stove oil and propane)will also comply with the provisions of fuel handling as mentioned in the Transportation section above. Ormat camp personnel will be briefed on fire-safety and response. Fire safety equipment will be present at the camp location. Section 5: Permitting Requirements Ormat has been in contact with state and federal agencies regarding permitting of the phase 3, Abandonment of the Mt. Spurr Geothermal Exploration Project. Table 2 below lists the regulatory agencies; specific permits,approvals, and/or reviews;and agency contacts that are applicable as required 23IPage by the mitigation measures and lease advisories contained in the Mt. Spurr Geothermal Lease Sale No. 3 Final Finding of the Director June 16, 2008 (see Appendix B in original 2010 Plan of Operations). Deliverables Contact Status Alaska Department of Natural Resources(ADNR) Division of Oil and Gas Tom Barrett Submitted herein. , • Lease Plan of Operations 550 West 7th Ave., Ste. 800 Amendment Application Anchorage,AK 99501 • Lease Plan of Operations 907-269-8885 Amendment Division of Mining, Land,& Michael Walton To be submitted pending Water 550 West 7th Ave., Ste. 1020 approval of Plan of Operations • Temporary Water Use Anchorage, AK 99501 Authorization(TWUA) 907-269-8609 Alaska Oil and Gas Conservation Commission(AOGCC) Alaska Oil and Gas Conservation Steve Davies To be submitted pending Commission 333 West 7th Ave., Ste. 100 approval of Plan of Operations • Sundry Application to Plug Anchorage, AK 99501 and Abandon(one steve.davies@alaska.gov application per each well) 907-793-1224 Alaska Department of Environmental Conservation(ADEC) Division of Environmental Health Lynn Crance To be submitted pending and Water 610 University Ave. approval of Plan of Operations • Temporary Camp Fairbanks,AK 99709 Application 907-451-2100 Alaska Department of Fish and Game(ADFG) Division of Habitat Michael Daigneault To be submitted pending • Title 16(Fish Habitat)Permit 333 Raspberry Rd. approval of Plan of Operations Application Anchorage, AK 99518 907-267-2172 Division of Wildlife Sean Farley Previously approved;to be Conservation 333 Raspberry Rd. reviewed again pending approval • Bear/Wildlife Interaction Anchorage,AK 99518 of Plan of Operations. Plan 907-267-2203 24IPage Table 2: Required Permits/Authorization, Deliverables Contact Status United States Fish and Wildlife Service(USFWS) Division of Migratory Bird Frances Mann Ormat will not begin work until Management-Migratory Birds 605 West 4th Ave.,Rm.G-62 after July 15,when the critical Treaty Act Anchorage, AK 99501 nesting period is over. Ormat • Request for Clearance 907-271-2772 will also comply with other • Bear/Wildlife Interaction recommendations as outlined in Plan the Bear/Wildlife Interaction Plan. Division of Migratory Bird Frances Mann Ormat will comply with Management-Bald and Golden 605 West 4th Ave.,Rm.G-62 recommendations as outlined in Eagle Protection Act Anchorage,AK 99501 the Bear/Wildlife Interaction • Request for Clearance 907-271-2772 Plan. • Bear/Wildlife Interaction State Historic Preservation Office Mark Rollins Archaeological clearance for (SHPO)-Section 106 Historic 550 West 7th Ave., Ste. 1310 Phase 3 is anticipated,pending Preservation Act Anchorage,AK 99501 approval of POO. • Archeological Clearance 907-269-8722 Permitting Timeline The above permits are to be submitted to their respective Agencies as soon as possible upon approval of the DNR Amendment to the Plan of Operations. Ormat recognizes that approval of permits may require weeks to months,depending on Agency availability. Section 6: Environmental Topics and Community Outreach Environmental and Safety Training The Abandonment will involve only brief fieldwork,and is a minor portion of the entire exploration Project. Ormat staff and contractors have previously completed thorough environmental and safety training. For the brief field visits during the Abandonment,on-site personnel will be briefed in first aid safety and response. Ormat will provide Project personnel with the Alaska Safety Handbook,which will be adopted as guidance,reference,standard operating procedures, and best safety practices. Ormat corporate and Project-specific health and safety plans,procedures,and practices such as the Ormat Illness and Injury Prevention Plan will also be used to supplement Alaska Safety Handbook,where applicable. First aid equipment will be present at work sites and in the helicopter. On-site personnel will also be briefed in fire-safety and response. 25IPage Bear I Wildlife Interaction Plan A Bear/Wildlife Interaction Plan has been developed by Ormat to describe procedures to protect bears, other wildlife,and personnel;and to avoid encounters(see Appendix C). The ADFG and USFWS were consulted for guidance during the plan development prior to the 2010 field season. Project personnel will read the contents and meet the requirements of this plan. Such measures will include instructions for Project personnel to avoid feeding wildlife of any type,or in any other way attempt to attract or harass animals or birds. In addition,Project personnel will ensure that all food is kept inside wildlife proof containers that minimize odors. A modification of the original 2010 Bear/Wildlife Interaction Plan is the lack of a dedicated bear monitor. Ormat initially chose to have a dedicated bear monitor on site at all times. It was later determined that this was not necessary. In 2010,the ADNR approved a modification of this plan,in allowing Ormat to operate without a dedicated bear monitor. During the brief P&A operations in 2016,an electric fence will be utilized around kitchen/camp facilities,as has been used in the past to effectively deter bears. No dedicated bear monitor will be utilized for Abandonment operations. The Project operations timeline has been set to avoid the critical nesting period for migratory birds(i.e., between May 1 and July 15). Operations will commence after July 15. Only very limited land-clearing (mostly of grasses)will be carried out during operations at deep well site 26-11. Prior to designating helicopter landing areas,Ormat will visually inspect the area for nests. If a nest is found(e.g.,Lapland Longspur),Ormat will locate the landing area at least 200 feet away, and will avoid walking by the nest on a regular basis. If a bald eagle nest is found,Ormat will locate the landing area a minimum of 660 feet away. In the event that a golden eagle nest is found, Ormat will consult with the USFWS to establish a buffer distance. In addition,surface entry within one-quarter mile of trumpeter swan nesting sites will be avoided between April 1 and August 31. Community Outreach /Public involvement Ormat will contact the Tyonek Native Corporation and the Native Village of Tyonek to provide an update on the Abandonment operations. Coordination with Subsistence Users Ormat and affected stakeholders have previously discussed any possible conflicts with subsistence hunting, fishing activities,residential,commercial,and recreational areas,and Native allotments. No conflicts ever arose,and no conflicts are anticipated in this brief phase of the Project. Ormat will contact the Tyonek Native Corporation and the Native Village of Tyonek to provide an update on the Abandonment operations. Local Hire As part of community outreach,Ormat has employed local residents throughout earlier phases of the exploration Project. Ormat is currently taking steps to utilize employees and/or services from the Tyonek Native Corporation and/or the Native Village of Tyonek during the Abandonment operations. 26IPage Section 7: Project Supervision and Communications An Ormat designated representative will be on site at all times during Abandonment operations. Personnel will have radio contact from the field operations via the helicopter and logistics contractor. The following persons or positions are designated contacts for the Project. Rahm Orenstein VP of Business Development,Business Development Main:(775)356-9029 Ext.32274 Cell: (775)303-6511 6225 Neil Road Reno,NV 89511 www.ormat.com I rorenstein@ormat.com Scott Kessler Land&Lease Manager,Business Development Main: (775)356-9029 Ext.32273 Cell: (775)771-8717 6225 Neil Road Reno,NV 89511 www.ormat.com I skessler(u7ormat.com Elton Colbert Resource Engineer Main:(775)356-9029 Cell:(775)830-5570 6225 Neil Road Reno,NV 89511 www.ormat.com ecolberti@ormat.com Brad Peters Resource Engineer Main:(775)356-9029 Cell: (775)225-2288 6225 Neil Road Reno,NV 89511 www.ormat.com I bpeters@ormat.com Andy Angel Operations Manager Alaska Earth Sciences Direct:(907)522-4664 Cell:(907)205-1217 11401 Olive Lane Anchorage,AK 99515 www.alaskaearthsciences.com I aangel,c alaskaearthsciences.com 27IPage Steve Lombard Senior Project Scientist Cardno Inc. Direct:(907)261-7704 Cell:(907)230-2323 3150 C Street,Ste 240 Anchorage,AK 99503 www.cardno.com I steve.lombard@cardno.com Allison Payne Senior Project Scientist Cardno Inc. Direct:(907)261-7716 Cell:(907)632-3422 3150 C Street,Ste 240 Anchorage,AK 99503 www.cardno.com I allison.payneacardno.com 28IPage Appendix A: Plug &Abandonment Program Descriptions 29IPage ORMAT NEVADA INC. DRILLING PROGRAM PROJECT DESCRIPTION P&A EXISTING TEMPERATURE GRADIENT CORE HOLE 62-2 Mt.Spurr Prospect,Alaska I. PROJECT DESCRIPTION A. Introduction and Location Ormat Nevada Inc. (Ormat) proposes to Plug and Abandon the temperature core hole: 62-2 located on state lands leased in the Mt. Spurr prospect, Alaska.The specific project area is located in ADL 391354/lease tract 001. The purpose of this proposed program is to plug, cap, and abandon existing geothermal resources at this site. Ormat anticipates activities to commence after July 15 in the summer of 2016. Figure 1 depicts the proposed design for the new core hole. B. Proposed Plug and Abandonment a. Program: For the plug &abandonment, Ormat proposes to follow the program in Appendix A Ormat plans to satisfy AOGCC and ADEC plugging and abandoning criteria by setting a cement plug at total depth (TD), across the liner hanger, and at surface with mud filling the two voids between the plugs. Note: This well is not cased so bridging/collapse may have occurred. In instance cement delivery mechanism cannot achieve TD, the cementing process will begin at deepest possible point. b. Containment Basins: A containment basing will be built around the well using timber decks left on location from the initial drilling of all three temperature gradient wells. The containment basin will be used to catch any non-toxic material that may spill on, out, or over during the P&A process. The P&A is expected to displace some well water and possibly non-toxic formation/drilling material which will drain out the wing valve through a hose beyond the containment basins in a manner that will not alter the existing topography. See Appendix A for quantities. At the end of the P&A process, there will be overflow cement indicating the plug has reached surface. This is to be to be flown out for proper disposal. c. Wood Timbers: Once the P&A process is complete for all three wells, Ormat is requesting permission to collect all the timber into two locations (lower 26-11 and upper 67-32/62-2 areas), construct a pit of suitable size (or use one of the existing containment areas) and burn in place. At the conclusion of the burn, the containment area will be back-filled with the excavated native topsoil and revegetated. d. Un-Reclaimed Containment Areas: In addition to the burn pit, and other un- PLUG & ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 2 reclaimed containment areas will be back-filled with excavated native topsoil and revegetated. e. Other: Well Site Access: Helicopters will be used. ii. Water: Water from permitted sources will be used for drilling. C. Blowout Prevention Equipment (BOPE) Since the P&A process will take place without the assistance of a rig, and there is currently no pressure at surface, no BOPE will be used. A check valve will be installed in the cement pumping line at surface. D. Personnel Requirements Approximately 4 to 7 workers will be on location at any given time. At the discretion of the contractor, drilling crews will live on site at the permitted camp. Ormat Nevada Inc.—Geothermal Resources Office PLUG & ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 3 FIGURE 1 MT SPURR CORE HOLE 62-2 PROPOSED PM WELL DIAGRAM LATITUDE 61° 15'01.03" N, LONGITUDE 152°05'11.33"W (N)CONC.TO 5-FT BELOW GRADE. ALL DEPTHS REFERENCED TO IB GUT ALL CASING STRINGS TO APPROX.3 FT ABOVE Gr. 5-FT BELOW GRADE,WELD ON STEEL CAP WITH NUMBER ELEVATION:2410 FT MSL (E)5.66-in. HOLE to 50 FT I I _ It . ' (E)4.5-in. 11.7 Itrlft HWT'CASING (E)4.88-in pa HOLE to 105 FT . • 1. (E)a.5•in.HWT CASING SHOE 100 FT AliI �, I (N)1-in PVC Tremie Pipe Left In I d: Place After Conclusion of P&A (E)3.80-i,. un"OLE I (' i._ 1. 1 I .II. I .I (E)TO 822 FT MD NOT DRAWN TO SCALE ORMAT NEVADA 1)15116 Ormat Nevada Inc.—Geothermal Resources Office PLUG&ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 4 FIGURE 2 MT SPURR CORE HOLE 62-2 PROPOSED P&A 4 1/2-in CASING DIAGRAM ia---------- (N)2-In.Check Valve {N)Cross (E)Relocated Pressure Gage IL, '- I II glIO Existing stack to be . ,.�- � ' reconfigured for PM (N)2-in. I t Displacement Line L. ; "'' (E)2-in. 3M Ball Valve i i (E)4-in.ANSI 150 RTJ Flange 1 „ , , r � -(E)4-in.ANSI 150 Gate Valve as"Master Valve' II (E)4-in.ANSI 150 RTJ Flange I Welded to HWT Casing Vi (N)1-in Cement (E)HWY'Casing Delivery Pipe Finished Grade I I 1 I I i I I 1 1 NOT DRAWN TO SCALE I I 1 1 ORMAT NEVADA INC. 1/15/2016 Ormat Nevada Inc.—Geothermal Resources Office PLUG&ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 5 II. PROTECTION OF THE ENVIRONMENT All Ormat and drilling contractor personnel will be informed of Ormat's policy regarding undue degradation of the environment. These measures are intended to prevent all unacceptable impacts from occurring as a result of these drilling operations. A. Fire Prevention The drilling sites and access paths were already cleared of all vegetation.The cleared areas have experienced new growth since then. Fire extinguishers will be available on the site and around the drilling rig. Water that is used for drilling will also be available for fire fighting. Personnel will be allowed to smoke only in designated areas. Any special permits required for fires, welding, and etc., will be obtained. Note: all personnel onsite involved in P&A process to have H2S portable monitors attached to person. B. Prevention of Soil Erosion Minimal soil erosion problems are anticipated from this project as cut and fill slopes were completed during the drilling process. A site inspection by AES will verify the any necessary site work. C. Surface and Ground Water Quality Protection Ground water zone is between 10 and 100-ft below grade. The location of the operation was selected to minimize the potential for surface water pollution from runoff during drilling, the same applies to the P&A process. Pollution from the P&A process will be prevented by the containment basins as outlined in the Proposed Plug and Abandonment section. Any displaced water not absorbed into the system will discharge to surface in a manner that will not alter the existing topography. Only non-toxic, non-hazardous mud constituents will be utilized during P&A operations. Waste mud, and any displaced fluids from the well site will be discharged into the containment area as allowed by exemption pursuant to AS 46.03.100 (e)(4) and waiver pursuant to 18 AAC 60.900(a)(1). The wells will be P&A's to prevent interzonal migration of fluids. Ormat Nevada Inc.—Geothermal Resources Office PLUG & ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 6 D. Air Quality Protection Fugitive dust generation will be minimized by watering as necessary. E. Prevention of Noise To abate noise pollution, mufflers will be utilized on engine-driven equipment. F. Protection of Public Health and Safety In addition to the Ormat's Emergency Contingency Plan and Blowout Action Plan, instructions to work crews and contractors regarding compliance with regulations will be provided to protect employee and public health and safety (such as Welding Procedures). These plans and procedures can be made available upon request. G. Protection of Fish, Wildlife, and Botanical Resources Direct impacts to fish and wildlife habitat and botanical resources will be minimized by clearing only the small area required for each pad. H. Protection of Cultural Resources Cultural resources will be protected as required by the State Historic Preservation Office. I. Non-Drilling Solid Waste Disposal Solid waste materials (trash) will be deposited at an authorized landfill at Beluga. Portable chemical sanitary facilities will be used by all personnel and material will be removed. J. Environmental Monitoring Regular, routine visual inspections of the sites will be conducted by the on-site operational personnel to quickly detect and correct any operational problems that could lead to environmental problems. The process itself and all displaced fluids will be monitored by visual inspection by the drilling personnel and the well-site engineer to detect any problems which may be occurring downhole. Environmental specialists will monitor and inspect the operations, if necessary, during the course of the project. Ormat Nevada Inc.—Geothermal Resources Office PLUG &ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spun Prospect,Alaska Page 7 ORMAT NEVADA INC. APPENDIX A - PLUG & ABANDONMENT PROGRAM DESCRIPTION Existing Temperature Gradient Core Hole Mt. Spurr Field, Undefined Geothermal Pool, Spurr West 62-2 (All depths referenced to KB unless specified) Location: 1114 FNL, 1438 FEL,T13N R16W Sec. 2 Permit No: 210-117 Ground Elevation: 2413 FT MSL KB: Approximately 3-ft above ground Objective: Plug and abandon observation well and reclaim site in the Mt. Spurr Prospect. Note: if P&A cannot be achieved with equipment outlined below, the rig will be moved in and its equipment will be used to complete same process.To verify, well will be hooked up to pump to see if water can pumped away before trying to run cement Regulatory Agency: Alaska Oil and Gas Conservation Commission and the Alaska Department of Environmental Conservation. For the plug& abandonment, Ormat will follow Alaska Administrative Code: 20 AAC 25.105. Abandonment of wells Sections C- 1 And furthermore, in accordance with U.S. Department of Interior's Geothermal Resource Operational Orders (GRO) #3 1.B(1) -A cement plug shall be placed across the shoe extending TD—822-FT and to surface. As a result, the entirety of the well will be cemented. • Cement Zone#1-from 822-ft—100-ft (57-ft3)—Displaced water: 425 gal. • Cement Zone#2 -from 100-ft—0-ft (9 ft3)—Displaced water: 65 gal. • Total max displaced water: 490 gal. 1. Notify the AOGCC representative 48 hours before plug and abandonment commences 2. Move in and rig up on wellhead according to Figure 2. 3. Setup containment basin and attach overflow line to wing valve according to Figure 2. 4. Run-in-hole (RIH) with 2.5-in PVC Tremie Pipe to total depth (TD) at 822-ft and pull up 60- ft. (Deepest point possible if bridging or collapse has occurred.) 5. Pump 822 linear ft. cement plug (99-ft3 assuming 50%excess) on the bottom of the well Ormat Nevada Inc.—Geothermal Resources Office PLUG & ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 8 with Type I-II Portland Cement with —27%Gel (or approved equivalent) 822-ft—surface (see Figure 1). Wait on cement (WOC) for about 8 to 12 hours. 6. RIH and tag top of cement. Pump additional cement if tagged depth is deeper than 5-ft. Otherwise, proceed to next step. 7. Cut off all existing casing strings to 5-ft below ground. Weld on a steel cap on existing casing stub. Stencil in well number on steel cap. 8. Nipple down and rig down AES equipment. 9. Remove containment basin any other existing structures. 10. Re-contour surface to as near as practicable to its original condition using whatever tools are necessary to accomplish the task. Ormat Nevada Inc.—Geothermal Resources Office PLUG& ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 9 CEMENTING PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLE 62-2 Mt.Spurr,Alaska Casing: HWT casing Depth: 0-100-ft Hole Size: PQ and HQ Proposed Cement Volume: 99-ft3 (50% Excess) Proposed Cement Weight: >10 lb/gal Proposed Cement: Type I-II Portland Cement with 'r27%Gel Specific Gravity 3.15 Slurry Yield —4.8 ft3/sack or—36 gal/sack Water Requirements 30 gallons/sack=^'620 gallons Total Mixing Water N/A Ormat Nevada Inc.—Geothermal Resources Office PLUG & ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 10 APPENDIX B - EMERGENCY PLANS EXISTING TEMPERATURE GRADIENT CORE HOLE 62-2 Mt.Spurr,Alaska A. Injury Contingency Plan In the event injuries occur in connection with an Ormat Nevada (Ormat) operation, specific and immediate attention will be given to proper transportation to a medical facility. B. Blowout Contingency Plan 1. Blowout prevention equipment will be kept in operating condition and tested in compliance with State of Nevada (NDOM) regulations, and industry standards. 2. In addition, cold water and barite will be stored at the wellsite for use in killing the well in case of an emergency. 3. In the event of an emergency, such as a blowout, immediate efforts will be taken to shut surface valves and blowout preventer system. 4. If the means to shut-in or control the flow from the well is lost, the Drilling Supervisor is to: C. Initiate appropriate control procedures. 1. Arrange for any injured persons to be taken by the helicopter to the nearest medical facility, as shown in the Injury Contingency Plan. 2. Contact the Project Manager and advise of the situation. The Drilling Supervisor will follow the same procedures stated in the Spill or Discharge Plan. 3. Initiate any further or supplemental steps that may be necessary or advisable, based on consultation with the Project Manager. 4. Be certain that all safety practices and procedures are being followed and that all members of the drilling crew are performing their assigned duties correctly. 5. Attempt to control the well at the rig site with rig personnel and supervisors. 6. If fluid flow is of an uncontained nature, attempt containment with required equipment by constructing sumps and/or dikes as rapidly as possible and as needed. 7. Attempt to construct and/or fabricate and install any wellhead facilities require to contain fluid flow at the well or casing head. 8. Maintain a continuing inspection of the pad area immediately around the well site subject to erosion that may cause failure to the drilling rig structure. Take necessary steps to avert areas of possible erosion by excavation and rebuilding of the area as necessary. • 9. Following complete containment of the well, initiate steps to return the area to its normal state prior to the blowout or fluid flow, such as reseeding with similar and approved vegetation. Ormat Nevada Inc.—Geothermal Resources Office PLUG &ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 11 D. Fire Contingency Plan 1. Any small fires which occur around the well pad during drilling and/or testing operations should be able to be controlled by rig personnel utilizing on site firefighting equipment. 2. The Forest Service will be notified of any fire, even if the available personnel can handle the situation or the fire poses no threat to the surrounding area. 3. A roster of emergency phone numbers will be available on-site so that the appropriate firefighting agency can be contacted in case of a fire. E. Hazardous Gas Contingency Plan Ormat does not expect to encounter hazardous gases during the P&A process, however H2S monitors will be available onsite, and a contingency plan will be in place and a copy will be maintained at the rig. Emergency Personnel and Telephone Numbers Fire 911 Law Enforcement 911 Hospital 911 Contractor Representatives Alaska Earth Sciences, Inc. 907-205-1217 (cell) Andy Angel - aangel@alaskaearthsciences.com 907-522-4664 (office) CARDNO Allison Payne—allison.payne@cardno.com 907-261-7716 (office) 907-632-3422 (cell) Ormat Company Representatives Ormat Nevada (Reno, NV) 775-356-9029 (office) Scott Kessler-skessler@ormat.com (775) 848-049 (cell) Skip Matlick-smatlick@ormat.com 562-544-5141 (cell) Brad Peters - bpeters@ormat.com 775-225-2288 (cell) Elaina Shope - eshope@ormat.com 775-223-7910 (cell) James Tennison -jtennison@ormat.com 760-562-4000 (cell) Ormat Nevada Inc.—Geothermal Resources Office PLUG & ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 12 Elton Colbert- ecolbert@ormat.com 775-830-5570 (cell) APPENDIX C - RESERVOIR CONDITIONS EXISTING TEMPERATURE GRADIENT CORE HOLE 62-2 Mt.Spurr,Alaska RESERVOIR PARAMENTERS The measured temperature at 400-ft was 36°F. (This is the deepest temperature reading taken) Pressure was not measured. APPENDIX D - EXISTING CEMENTING EXISTING TEMPERATURE GRADIENT CORE HOLE 62-2 Mt.Spurr,Alaska CONDUCTOR—No conductor set CASING—4 Y2 in. 11.7 lb. HWT Casing DEPTH—0-100-ft KB HOLE SIZE—4.88-in HQ HOLE— No Casing Set, Open Hole DEPTH— 100-822-ft KB HOLE SIZE—3.8-in Used Type I-II Portland Cement with 5%Calcium Chloride Slurry Density- 15 lb/gallon Specific Gravity—3.15 Slurry Yield —1 ft3/sack Water Requirements—<5.5 gallons/sack Total Mixing Water—N/A Ormat Nevada Inc.—Geothermal Resources Office ORMAT NEVADA INC. DRILLING PROGRAM PROJECT DESCRIPTION P&A EXISTING TEMPERATURE GRADIENT CORE HOLE 67-34 Mt.Spurr Prospect,Alaska I. PROJECT DESCRIPTION A. Introduction and Location Ormat Nevada Inc. (Ormat) proposes to Plug and Abandon the temperature core hole: 67-34 located on state lands leased in the Mt. Spurr prospect, Alaska.The specific project area is located in ADL 391355/ lease tract 002. The purpose of this proposed program is to plug, cap, and abandon existing geothermal resources at this site. Ormat anticipates activities to commence after July 15 in the summer of 2016. Figure 1 depicts the proposed design for the new core hole. B. Proposed Plug and Abandonment a. Program: For the plug & abandonment, Ormat proposes to follow the program in Appendix A Ormat plans to satisfy AOGCC and ADEC plugging and abandoning criteria by setting a cement plug at total depth (TD), across the liner hanger, and at surface with mud filling the two voids between the plugs. b. Containment Basins:A containment basing will be built around the well using timber decks left on location from the initial drilling of all three temperature gradient wells. The containment basin will be used to catch any non-toxic material that may spill on, out, or over during the P&A process.The P&A is expected to displace some well water and possibly non-toxic formation/drilling material which will drain out the wing valve through a hose beyond the containment basins in a manner that will not alter the existing topography. See Appendix A for quantities. At the end of the P&A process, there will be overflow cement indicating the plug has reached surface. This is to be to be flown out for proper disposal. There is a diesel fuel cap on this well.The overflow line will initially be connected to containers that will catch all liquid until it is verified that all the diesel has been contained.The remaining overflow material will be water and possibly non-toxic formation/drilling material. All diesel material is to be flown out for proper disposal. c. Wood Timbers: Once the P&A process is complete for all three wells, Ormat is requesting permission to collect all the timber into two locations (lower 26-11 and upper 67-32/62-2 areas), construct a pit of suitable size (or use one of the existing containment areas) and burn in place. At the conclusion of the burn, the containment area will be back-filled with the excavated native topsoil and revegetated. PLUG &ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 2 d. Un-Reclaimed Containment Areas: In addition to the burn pit, and other un- reclaimed containment areas will be back-filled with excavated native topsoil and revegetated. e. Other: Well Site Access: Helicopters will be used. ii. Water: Water from permitted sources will be used for drilling. C. Blowout Prevention Equipment (BOPE) Since the P&A process will take place without the assistance of a rig, and there is currently no pressure at surface, no BOPE will be used. A check valve will be installed in the cement pumping line at surface. D. Personnel Requirements Approximately 4 to 7 workers will be on location at any given time. At the discretion of the contractor, drilling crews will live on site at the permitted camp. Ormat Nevada Inc.—Geothermal Resources Office PLUG &ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 3 FIGURE 1 MT SPURR CORE HOLE 67-34 PROPOSED P&A WELL DIAGRAM LATITUDE 61° 15'20.96" N,LONGITUDE 152°07'00,64"W (N)CONC.TO 5-FT BELOW GRADE. ALL DEPTHS REFERENCED TO KB CUT ALL CASING STRINGS TO 5-FT APPROX.3 FT ABOVE Gr. BELOW GRADE.WELD ON STEEL CAP WITH NUMBER ELEVATION:2878 FT MSL 5.66-in.HOLE to 30 FT '~ " 4.88-in PQ. HOLE to 108 FT�- 4.5-in. 11,7 Ibff HWT CASING 4.54n.HWT CASINO SHOE 100 FT 4:•-,+ `. a • i.i yI 3.80-in,HQ HOLE _ 2.375-in.PERFORATED STEEL TUBING • • • TD 1000 FT MD '••( _ NOT DRAWN TO SCALE ORMAT NEVADA 919/2013 Ormat Nevada Inc.—Geothermal Resources Office PLUG &ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 4 FIGURE 2 MT SPURR CORE HOLE 67-34 PROPOSED P&A 4 1/2-in CASING DIAGRAM i....0------- (N)2-in.Check Valve (N)2-in.Nipple To Stab In (N)4-in.ANSI 150 RTJ Flange ..,,N41/4.tildi Tubing for Conc.Pumping (E)4-in.Class 150 Gate ___Valve as"Master Valve" (E)4-in.Class 150 Flange (__——��_ Welded to HWT Casing (N)2-in. \IL Displacement Line IL ,. it O'r (E)Pressure Gage (E)2-in.3M Ball Valve (E)2-In.3M Ball Valve (E)2-in.NPT Nipple by Plain End Welded to HWT Finished Grade ��"'-----(E)HWT Casing i NOT DRAWN TO SCALE 1 1 ORMAT NEVADA INC_ 1/15116 Ormat Nevada Inc.—Geothermal Resources Office PLUG& ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 5 II. PROTECTION OF THE ENVIRONMENT All Ormat and drilling contractor personnel will be informed of Ormat's policy regarding undue degradation of the environment. These measures are intended to prevent all unacceptable impacts from occurring as a result of these drilling operations. A. Fire Prevention The drilling sites and access paths were already cleared of all vegetation.The cleared areas have experienced new growth since then. Fire extinguishers will be available on the site and around the drilling rig. Water that is used for drilling will also be available for fire fighting. Personnel will be allowed to smoke only in designated areas. Any special permits required for fires, welding, and etc., will be obtained. Note: all personnel onsite involved in P&A process to have H2S portable monitors attached to person B. Prevention of Soil Erosion Minimal soil erosion problems are anticipated from this project as cut and fill slopes were completed during the drilling process. A site inspection by AES will verify the any necessary site work. C. Surface and Ground Water Quality Protection Ground water zone is between 10 and 100-ft below grade. The location of the operation was selected to minimize the potential for surface water pollution from runoff during drilling, the same applies to the P&A process. Pollution from the P&A process will be prevented by the containment basins as outlined in the Proposed Plug and Abandonment section. Any displaced water not absorbed into the system will discharge to surface in a manner that will not alter the existing topography. Only non-toxic, non-hazardous mud constituents will be utilized during P&A operations. Waste mud, and any displaced fluids from the well site will be discharged into the containment area as allowed by exemption pursuant to AS 46.03.100 (e)(4) and waiver pursuant to 18 AAC 60.900(a)(1). The wells will be P&A's to prevent interzonal migration of fluids. Ormat Nevada Inc.—Geothermal Resources Office PLUG& ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 6 D. Air Quality Protection Fugitive dust generation will be minimized by watering as necessary. E. Prevention of Noise To abate noise pollution, mufflers will be utilized on engine-driven equipment. F. Protection of Public Health and Safety In addition to the Ormat's Emergency Contingency Plan and Blowout Action Plan, instructions to work crews and contractors regarding compliance with regulations will be provided to protect employee and public health and safety (such as Welding Procedures). These plans and procedures can be made available upon request. G. Protection of Fish, Wildlife, and Botanical Resources Direct impacts to fish and wildlife habitat and botanical resources will be minimized by clearing only the small area required for each pad. H. Protection of Cultural Resources Cultural resources will be protected as required by the State Historic Preservation Office. I. Non-Drilling Solid Waste Disposal Solid waste materials (trash) will be deposited at an authorized landfill at Beluga. Portable chemical sanitary facilities will be used by all personnel and material will be removed. J. Environmental Monitoring Regular, routine visual inspections of the sites will be conducted by the on-site operational personnel to quickly detect and correct any operational problems that could lead to environmental problems.The process itself and all displaced fluids will be monitored by visual inspection by the drilling personnel and the well-site engineer to detect any problems which may be occurring downhole. Environmental specialists will monitor and inspect the operations, if necessary, during the course of the project. Ormat Nevada Inc.—Geothermal Resources Office PLUG&ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 7 ORMAT NEVADA INC. APPENDIX A - PLUG & ABANDONMENT PROGRAM DESCRIPTION Existing Temperature Gradient Core Hole Mt. Spurr Field, Undefined Geothermal Pool, Spurr West 67-34 ° (All depths referenced to KB unless specified) Location: 1595 FEL, 935 FSL, T14N R16W Sec. 34 Permit No: 210-098 Ground Elevation: 2881 FT MSL KB: Approximately 3-ft above ground Objective: Plug and abandon observation well and reclaim site in the Mt. Spurr Prospect. Note: if P&A cannot be achieved with equipment outlined below, the rig will be moved in and its equipment will be used to complete same process.To verify, well will be hooked up to pump to see if water can pumped away before trying to run cement. Regulatory Agency: Alaska Oil and Gas Conservation Commission and the Alaska Department of Environmental Conservation. For the plug & abandonment, Ormat will follow Alaska Administrative Code: 20 AAC 25.105. Abandonment of wells Sections C- I And furthermore, in accordance with U.S. Department of Interior's Geothermal Resource Operational Orders (GRO) #3 1.B(1) -A cement plug shall be placed across the shoe extending TD 1000-FT and to surface. As a result, the entirety of the well will be cemented. • Cement Zone#1 -from 1,000-ft—100-ft (71-ft3)—Displaced water: 530 gal. • Cement Zone#2 -from 100-ft—0-ft (9 ft3)—Displaced water: 65 gal. • Total max displaced water: 595 gal. 1. Notify the AOGCC representative 48 hours before plug and abandonment commences 2. Move in and rig up on wellhead according to Figure 2. 3. Setup containment basin and attach overflow line to wing valve according to Figure 2. 4. Pump 1,000 linear ft. cement plug (120-ft3 assuming 50%excess) from surface to the bottom of the well with Type I-II Portland Cement with —27%Gel (or approved equivalent) 1,000-ft—surface (see Figure 1). Wait on cement (WOC) for about 8 to 12 hours. Ormat Nevada Inc.—Geothermal Resources Office PLUG& ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 8 5. RIH and tag top of cement. Pump additional cement if tagged depth is deeper than 5-ft. Otherwise, proceed to step 8. 6. If cement deadheads, and does not squeeze through perforated tubing, remove setup from top flange and install on displacement wing valve (remove pressure gauge opposite side). Pump remainder of cement or until returns are seen on opposite wing valve. 7. If cement deadheads in initial wing valve before total volume is pumped, remove setup and install on opposite wing valve and pump away until total volume is achieved or until no more can be pumped. Wait on cement (WOC)for about 8 to 12 hours. 8. Cut off all existing casing strings to 5-ft below ground. Weld on a steel cap on existing casing stub. Stencil in well number on steel cap. 9. Nipple down and rig down AES equipment. 10. Remove containment basin any other existing structures. 11. Re-contour surface to as near as practicable to its original condition using whatever tools are necessary to accomplish the task. Ormat Nevada Inc.—Geothermal Resources Office PLUG&ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 9 CEMENTING PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLE 67-34 Mt.Spurr,Alaska Casing: HWT casing Depth: 0-100-ft Hole Size: PQ and HQ Proposed Cement Volume: 120-ft3 (50% Excess) Proposed Cement Weight: >10 lb/gal Proposed Cement: Type I-II Portland Cement with —27%Gel Specific Gravity 3.15 Slurry Yield ^'4.8 ft3/sack or—36 gal/sack Water Requirements 30 gallons/sack= "'750 gallons Total Mixing Water N/A Ormat Nevada Inc.—Geothermal Resources Office PLUG &ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 10 APPENDIX B - EMERGENCY PLANS EXISTING TEMPERATURE GRADIENT CORE HOLE 67-34 Mt.Spurr,Alaska A. Injury Contingency Plan In the event injuries occur in connection with an Ormat Nevada (Ormat) operation, specific and immediate attention will be given to proper transportation to a medical facility. B. Blowout Contingency Plan 1. Blowout prevention equipment will be kept in operating condition and tested in compliance with State of Nevada (NDOM) regulations, and industry standards. 2. In addition, cold water and barite will be stored at the wellsite for use in killing the well in case of an emergency. 3. In the event of an emergency, such as a blowout, immediate efforts will be taken to shut surface valves and blowout preventer system. 4. If the means to shut-in or control the flow from the well is lost, the Drilling Supervisor is to: C. Initiate appropriate control procedures. 1. Arrange for any injured persons to be taken by the helicopter to the nearest medical facility, as shown in the Injury Contingency Plan. 2. Contact the Project Manager and advise of the situation. The Drilling Supervisor will follow the same procedures stated in the Spill or Discharge Plan. 3. Initiate any further or supplemental steps that may be necessary or advisable, based on consultation with the Project Manager. 4. Be certain that all safety practices and procedures are being followed and that all members of the drilling crew are performing their assigned duties correctly. 5. Attempt to control the well at the rig site with rig personnel and supervisors. 6. If fluid flow is of an uncontained nature, attempt containment with required equipment by constructing sumps and/or dikes as rapidly as possible and as needed. 7. Attempt to construct and/or fabricate and install any wellhead facilities require to contain fluid flow at the well or casing head. 8. Maintain a continuing inspection of the pad area immediately around the well site subject to erosion that may cause failure to the drilling rig structure. Take necessary steps to avert areas of possible erosion by excavation and rebuilding of the area as necessary. 9. Following complete containment of the well, initiate steps to return the area to its normal state prior to the blowout or fluid flow, such as reseeding with similar and approved vegetation. D. Fire Contingency Plan Ormat Nevada Inc.—Geothermal Resources Office PLUG &ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 11 1. Any small fires which occur around the well pad during drilling and/or testing operations should be able to be controlled by rig personnel utilizing on site firefighting equipment. 2. The Forest Service will be notified of any fire, even if the available personnel can handle the situation or the fire poses no threat to the surrounding area. 3. A roster of emergency phone numbers will be available on-site so that the appropriate firefighting agency can be contacted in case of a fire. E. Hazardous Gas Contingency Plan Ormat does not expect to encounter hazardous gases during the P&A process, however H2S monitors will be available onsite, and a contingency plan will be in place and a copy will be maintained at the rig. Emergency Personnel and Telephone Numbers Fire 911 Law Enforcement 911 Hospital 911 Cnotractor Representatives Alaska Earth Sciences, Inc. 907-205-1217 (cell) Andy Angel - aangel@alaskaearthsciences.com 907-522-4664 (office) CARDNO Allison Payne—allison.payne@cardno.com 907-261-7716 (office) 907-632-3422 (cell) Ormat Company Representatives Ormat Nevada (Reno, NV) 775-356-9029 (office) Scott Kessler- skessler@ormat.com (775) 848-049 (cell) Skip Matlick-smatlick@ormat.com 562-544-5141 (cell) Brad Peters- bpeters@ormat.com 775-225-2288 (cell) Elaina Shope - eshope@ormat.com 775-223-7910 (cell) James Tennison -jtennison@ormat.com 760-562-4000 (cell) Ormat Nevada Inc.—Geothermal Resources Office PLUG &ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 12 Elton Colbert - ecolbert@ormat.com 775-830-5570 (cell) APPENDIX C - RESERVOIR CONDITIONS EXISTING TEMPERATURE GRADIENT CORE HOLE 67-34 Mt.Spurr,Alaska RESERVOIR PARAMENTERS Temperature was not recorded. Pressure was not measured. APPENDIX D - EXISTING CEMENTING EXISTING TEMPERATURE GRADIENT CORE HOLE 67-34 Mt.Spurr,Alaska CONDUCTOR—No conductor set CASING—4% in. 11.7 lb. HWT Casing DEPTH—0-100-ft KB HOLE SIZE—4.88-in STEEL TUBING—2.375-in Perforated DEPTH—0-1,000-ft KB HOLE SIZE—3.8-in Used Type I-II Portland Cement with 5% Calcium Chloride Slurry Density— 15 lb/gallon Specific Gravity—3.15 Slurry Yield —1 ft3/sack Water Requirements—<5.5 gallons/sack Total Mixing Water—N/A Ormat Nevada Inc.—Geothermal Resources Office ORMAT NEVADA INC. DRILLING PROGRAM PROJECT DESCRIPTION P&A EXISTING TEMPERATURE GRADIENT CORE HOLE 26-11 Mt.Spurr Prospect,Alaska I. PROJECT DESCRIPTION A. Introduction and Location Ormat Nevada Inc. (Ormat) proposes to Plug and Abandon the temperature core hole: 26-11 located on state lands leased in the Mt. Spurr prospect, Alaska.The specific project area is located in ADL 391360/lease tract 007.The purpose of this proposed program is to plug, cap, and abandon existing geothermal resources at this site. Ormat anticipates activities to commence after July 15 in the summer of 2016. Figure 1 depicts the proposed design for the new core hole. B. Proposed Plug and Abandonment a. Program: For the plug &abandonment, Ormat proposes to follow the program in Appendix A Ormat plans to satisfy AOGCC and ADEC plugging and abandoning criteria by setting a cement plug at total depth (TD), across the liner hanger, and at surface with mud filling the two voids between the plugs. Note: If TD cannot be reached due to fish in the hole, the bottom plug is to be omitted in lieu of mud and the first cement plug will be placed across the liner hanger. Everything above will be as previously described. b. Containment Basins:A containment basing will be built around the well using timber decks left on location from the initial drilling of all three temperature gradient wells.The containment basin will be used to catch any non-toxic material that may spill on, out, or over during the P&A process. The P&A is expected to displace some well water and possibly non-toxic formation/drilling material which will drain out the wing valve through a hose beyond the containment basins in a manner that will not alter the existing topography. See Appendix A for quantities. At the end of the P&A process, there will be overflow cement indicating the plug has reached surface.This is to be to be flown out for proper disposal. c. Wood Timbers: Once the P&A process is complete for all three wells, Ormat is requesting permission to collect all the timber into two locations (lower 26-11 and upper 67-32/62-2 areas), construct a pit of suitable size (or use one of the existing containment areas) and burn in place. At the conclusion of the burn, the containment area will be back-filled with the excavated native topsoil and revegetated. d. Un-Reclaimed Containment Areas: In addition to the burn pit, and other un- PLUG&ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 2 reclaimed containment areas will be back-filled with excavated native topsoil and revegetated. e. Other: Well Site Access: Helicopters will be used. ii. Water: Water from permitted sources will be used for drilling. C. Blowout Prevention Equipment (BOPE) An API 4" 3000 psi annular preventer will be used below±400 ft to TD. BOPE testing will be witnessed by the State of Alaska's Oil & Gas Conservation Commission (AOGCC) or their designated agent. D. Personnel Requirements Approximately 8 to 11 workers will be on location at any given time. At the discretion of the contractor, drilling crews will live on site at the permitted camp. Ormat Nevada Inc.—Geothermal Resources Office PLUG &ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 3 FIGURE 1 MT SPURR CORE HOLE 26-11 PROPOSED P&A WELL DIAGRAM LATITUDE 61° 14'51.9° N, LONGITUDE 152°05'2.2"W INITIAL WELL BORE FROM SURFACE AT 5°ANGLE FROM VERTICAL WITH AZIMUTH OF 318°TRUE NORTH ALL DEPTHS REFERENCED TO KB ELEVATION; 1693 FT MSL APPROX.3 FT ABOVE Gr. 5.66-in. HOLE--• - ' I` 5.66-in. 14.4 Ib/ft PW Casing PW CASING SHOE 85 FT . 150-FT PLUG 0-150-ft. 4.88-in PQ.HOLE-= 4 4.5-in. 11.3 lb/ft HWT CASING 4.54n.HWT CASING SHOE 452 FT I I s I. = i 1: 3.5-in. 11.3 lb/ft HQ ROD 3.80-in. HQ HOLE i — 200-FT PLUG 3070-3270-ft. 3.54n.HQ ROD SHOE 3170 FT Mil 780 ft UNRETRIEVABLE 3-in. NQ HOLE J NQ CORE ROD LEFT ON BOTTOM 100-FT PLUG 3788-3988-ft. NOT DRAWN TO SCALE ORMAT NEVADA 12!78/15 t :4 1 TD 3988 FT MD Ormat Nevada Inc.—Geothermal Resources Office PLUG &ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 4 FIGURE la MT SPURR CORE HOLE 26-11 PROPOSED PM WELL DIAGRAM LATITUDE 61° 14'51.9"N, LONGITUDE 1520 05'2.2"W INITIAL WELL BORE FROM SURFACE AT 50 ANGLE FROM VERTICAL WITH AZIMUTH OF 318°TRUE NORTH ALL DEPTHS REFERENCED TO KB ELEVATION: 1693 FT MSL APPROX.3 FT ABOVE Gr. 5.66-in.HOLE 5.66-in. 14.4 Ib/ft PW Casing PW CASING SHOE 85 FT II 150-FT PLUG 0-150-ft. 4.88-in PQ. HOLE - 4.5-in. 11.3 Ib/ft HWT CASING 4.5-in.HWT CASING SHOE 452 FT 2 3.5-in. 11.3 lb/ft HQ ROD 3.80-in.HQ HOLE '- 100-FT PLUG 3070-3170-ft. •1 3.5-in.HO ROO SHOE 3170 FT 780 ft UNRETRIEVABLE 3-in.NQ HOLE I NO CORE ROD LEFT ON BOTTOM MUD FILL 3170-3988-f1 NOT DRAWN TO SCALE ORMAT NEVADA 12118/15 TD 3988 FT MD Ormat Nevada Inc.—Geothermal Resources Office PLUG & ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 5 FIGURE 2 MT SPURR CORE HOLE 26-11 PROPOSED P&A 4 1/2—in CASING BOPE DIAGRAM Existing stack to be -. removed for P&A C _ I I 31 I 1 I I (N)41-1n.3M ANNULAR PREVENTER i I (E)2-In.NPT Nipple by I I r Plain End Welded to NWT L-��-1,—f (E)Relocated I ' I '�� Pressure Gage (E)4-in.Class 150 Gate Valve as"Master Valve (N)Tee (E)4-In.Class 150 Flange Welded to HWT Casing (E)HWT Casing (N)24n. Displacement Line (E)24n.3M Bali Valve Finished Grade I I I I I I I I I NOT DRAWN TO SCALE I I I I ORMAT NEVADA INC. 12/18/15 Ormat Nevada Inc.—Geothermal Resources Office PLUG&ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 6 II. PROTECTION OF THE ENVIRONMENT All Ormat and drilling contractor personnel will be informed of Ormat's policy regarding undue degradation of the environment. These measures are intended to prevent all unacceptable impacts from occurring as a result of these drilling operations. A. Fire Prevention The drilling sites and access paths were already cleared of all vegetation.The cleared areas have experienced new growth since then. Fire extinguishers will be available on the site and around the drilling rig. Water that is used for drilling will also be available for fire fighting. Personnel will be allowed to smoke only in designated areas. Any special permits required for fires, welding, and etc., will be obtained. B. Prevention of Soil Erosion Minimal soil erosion problems are anticipated from this project as cut and fill slopes were completed during the drilling process. A site inspection by AES will verify the any necessary site work. C. Surface and Ground Water Quality Protection Ground water zone is between 10 and 100-ft below grade. The location of the operation was selected to minimize the potential for surface water pollution from runoff during drilling, the same applies to the P&A process. Pollution from the P&A process will be prevented by the containment basins as outlined in the Proposed Plug and Abandonment section. Any displaced water not absorbed into the system will discharge to surface in a manner that will not alter the existing topography. Only non-toxic, non-hazardous mud constituents will be utilized during P&A operations. Waste mud, and any displaced fluids from the well site will be discharged into the containment area as allowed by exemption pursuant to AS 46.03.100 (e)(4) and waiver pursuant to 18 AAC 60.900(a)(1). The wells will be P&A'd to prevent interzonal migration of fluids. D. Air Quality Protection Ormat Nevada Inc.—Geothermal Resources Office PLUG &ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spun Prospect,Alaska Page 7 Fugitive dust generation will be minimized by watering as necessary. E. Prevention of Noise To abate noise pollution, mufflers will be utilized on engine-driven equipment. F. Protection of Public Health and Safety In addition to the Ormat's Emergency Contingency Plan and Blowout Action Plan, instructions to work crews and contractors regarding compliance with regulations will be provided to protect employee and public health and safety (such as Welding Procedures). These plans and procedures can be made available upon request. G. Protection of Fish, Wildlife, and Botanical Resources Direct impacts to fish and wildlife habitat and botanical resources will be minimized by clearing only the small area required for each pad. Note: all personnel onsite involved in P&A process to have H2S portable monitors attached to person. H. Protection of Cultural Resources Cultural resources will be protected as required by the State Historic Preservation Office. I. Non-Drilling Solid Waste Disposal Solid waste materials (trash) will be deposited at an authorized landfill at Beluga. Portable chemical sanitary facilities will be used by all personnel and material will be removed. J. Environmental Monitoring Regular, routine visual inspections of the sites will be conducted by the on-site operational personnel to quickly detect and correct any operational problems that could lead to environmental problems.The process itself and all displaced fluids will be monitored by visual inspection by the drilling personnel and the well-site engineer to detect any problems which may be occurring downhole. Environmental specialists will monitor and inspect the operations, if necessary, during the course of the project. Ormat Nevada Inc.—Geothermal Resources Office PLUG&ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 8 ORMAT NEVADA INC. APPENDIX A - PLUG & ABANDONMENT PROGRAM DESCRIPTION PLAN A Existing Temperature Gradient Core Hole Mt. Spurr Field, Undefined Geothermal Pool, Spurr West 26-11 (All depths referenced to KB unless specified) Location: 1726 FSL, 1228 FWL,T13N R16W Sec. 11 Lat/Long: 61° 13.72' N, 152° 6.21' W Ground Elevation: 1693 FT MSL KB: Approximately 3-ft above ground Objective: Plug and abandon observation well and reclaim site in the Mt. Spurr Prospect Regulatory Agency:Alaska Oil and Gas Conservation Commission and the Alaska Department of Environmental Conservation. For the plug &abandonment, Ormat will follow Alaska Administrative Code: 20 AAC 25.105. Abandonment of wells Sections C- I And furthermore, in accordance with U.S. Department of Interior's Geothermal Resource Operational Orders (GRO)#3 1.B(1) -A cement plug shall be placed across the shoe extending 100-ft above and 100-ft below. As a result, plug#2 would be 200-ft thick and the plugging specifications would be as follows: • Plug#1- 100-ft plug from 3888-ft—3988-ft (3.3-ft3)—Displaced water: 23 gal. • Mud from 3270-ft—3888-ft (19-ft3)—Displaced water: 140 gal. • Plug#2 - 200-ft plug from 3070-ft—3270-ft (8.8 ft3)—Displaced water: 61 gal. • Mud from 150-ft—3070-ft (150-ft3)—Displaced water: 1,123 gal. • Plug#3 - 150-ft plug from 0-ft—150-ft (8.8-ft3)— Displaced water: 58 gal. • Total max displaced water: 1,405 gal. 1. Notify the AOGCC representative 48 hours before plug and abandonment commences 2. Move in and rig up Alaska Earth Services (AES) rig on Mt Spurr Temperature Gradient Hole and nipple up BOPE according to Figure 2. Notify the AOGCC representative 24-hrs before testing BOPE. Test BOPE. 3. Setup containment basin and attach overflow line to wing valve according to Figure 2. 4. Drill rod to be used for P&A process is 2.25-in BTW (Actual size is 2.225-in). First run 900-ft Ormat Nevada Inc.—Geothermal Resources Office PLUG&ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 9 AQ(1.752-in) stinger for NQ portion of well. 5. Run-in-hole (RIH) to total depth (TD) at 3988-ft. (Note: in all cases,while cementing,the delivery rod shall be moved up in a fashion so as not to get stuck. Pump cement and pull- up, pump cement and pull-up, etc.) 6. Pump 100 linear ft. cement plug (3.3-ft3 assuming 10%excess) on the bottom of the well with Type I-II Portland Cement with ^'27%Gel (or approved equivalent) 3888-ft—3988-ft (see Figure 1). Wait on cement (WOC) for about 8 to 12 hours. 7. Pump drilling mud down hole on top of cemented plug at TD (3888-ft) to 3270-ft. 8. Pump second cement plug across the shoe extending 100-ft above and-100-ft below; the shoe is at 3070-ft KB. Pump 200 linear ft. cement plug (8.8-ft3 assuming 10%excess) with Type I-II Portland Cement with ^'27%Gel (or approved equivalent)from 3070-ft—3270-ft; (see Figure 1). WOC for 12 hours. 9. RIH and tag top of cement. Pump additional cement if tagged depth is deeper than 3070- ft. Otherwise, proceed to next step. 10. Pump drilling mud down hole on top of cement plug at TD (3070-ft) to 150-ft. 11. Set 150 linear ft. surface cement plug inside 3.5-inch surface casing. Top of cement plug should be no more than five feet below original ground level. Pump 8.8-ft3(assuming 10% excess) of Type I-II Portland Cement with —27%Gel (or approved equivalent)from 0-ft— 150-ft; (see Figure 1). WOC for 12 hours. 12. Tag top of cement. Pump additional cement if tagged depth is deeper than 5-ft. Otherwise, proceed to next step. 13. Cut off all existing casing strings to 5-ft below ground. Weld on a steel cap on existing casing stub. Stencil in well number on steel cap. 14. Nipple down BOPE and rig down AES rig. 15. Remove containment basin any other existing structures. 16. Re-contour surface to as near as practicable to its original condition using whatever tools are necessary to accomplish the task. Ormat Nevada Inc.—Geothermal Resources Office PLUG&ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 10 PLAN B (If bottom of well cannot be reached) Existing Temperature Gradient Core Hole Mt. Spurr Field, Undefined Geothermal Pool, Spurr West 26-11 (All depths referenced to KB unless specified) Location: 1726 FSL, 1228 FWL,T13N R16W Sec. 11 Lat/Long: 61° 13.72' N, 152° 6.21' W Ground Elevation: 1693 FT MSL KB: Approximately 3-ft above ground Objective: Plug and abandon observation well and reclaim site in the Mt. Spurr Prospect. There is rod that was left in the bottom of this well. This plan is in case we are not able to retrieve the rod or get past it to cement the bottom portion of the well. Regulatory Agency: Alaska Oil and Gas Conservation Commission and the Alaska Department of Environmental Conservation. For the plug & abandonment, Ormat will follow Alaska Administrative Code: 20 AAC 25.105. Abandonment of wells Sections C- I And furthermore, in accordance with U.S. Department of Interior's Geothermal Resource Operational Orders (GRO) #3 1.B(1) -A cement plug shall be placed at the shoe extending 100- ft above. The plugging specifications would be as follows: • Mud from 3170-ft—3988-ft (25-ft3)— Displaced water: 188 gal. • Plug#1 - 100-ft plug from 3070-ft—3170-ft (5.8 ft3)—Displaced water: 38 gal. • Mud from 150-ft—3070-ft (150-ft3)— Displaced water: 1,123 gal. • Plug#2 - 150-ft plug from 0-ft—150-ft (8.8-ft3)—Displaced water: 58 gal. • Total max displaced water: 1,405 gal. 17. Notify the AOGCC representative 48 hours before plug and abandonment commences 18. Move in and rig up Alaska Earth Services (AES) rig on Mt Spurr Temperature Gradient Hole and nipple up BOPE according to Figure 2. Notify the AOGCC representative 24-hrs before testing BOPE.Test BOPE. 19. Setup containment basin and attach overflow line to wing valve according to Figure 2. 20. Run-in-hole (RIH)to 10-ft above HQ shoe. 3160-ft. (Note: in all cases,while cementing, the delivery rod shall be moved up in a fashion so as not to get stuck. Pump cement and pull-up, pump cement and pull-up, etc.) Ormat Nevada Inc.—Geothermal Resources Office PLUG&ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 11 21. Pump drilling mud down hole on top of NQ section (3988-ft to 3170-ft). 22. Pump first cement plug across the shoe extending 100-ft above; the shoe is at 3170-ft KB. Pump 100 linear ft. cement plug (5.8-ft3 assuming 10% excess) with Type I-II Portland Cement with —27%Gel (or approved equivalent) from 3070-ft—3170-ft; (see Figure la). WOC for 12 hours. 23. RIH and tag top of cement. Pump additional cement if tagged depth is deeper than 3070- ft. Otherwise, proceed to next step. 24. Pump drilling mud down hole on top of cement plug at TD (3070-ft)to 150-ft. 25. Set 150 linear ft. surface cement plug inside 3.5-inch surface casing. Top of cement plug should be no more than five feet below original ground level. Pump 8.8-ft3(assuming 10% excess) of Type I-II Portland Cement with —27%Gel (or approved equivalent)from 0-ft— 150-ft; (see Figure 1). WOC for 12 hours. 26. Tag top of cement. Pump additional cement if tagged depth is deeper than 5-ft. Otherwise, proceed to next step. 27. Cut off all existing casing strings to 5-ft below ground. Weld on a steel cap on existing casing stub. Stencil in well number on steel cap. 28. Nipple down BOPE and rig down AES rig. 29. Remove containment basin any other existing structures. 30. Re-contour surface to as near as practicable to its original condition using whatever tools are necessary to accomplish the task. Ormat Nevada Inc.—Geothermal Resources Office PLUG &ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 12 MUD PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLE 26-11 Mt.Spurr,Alaska Use gel-based mud and water system with additives as necessary for system control.The following parameters should be maintained: Mud Weight: <9.2 pounds per gallon unless it is necessary to weight up to control artesian flow. Viscosity: 38 to 45 API FL: 8 to 12 PV: 8 to 12 YP: 8 to 12 Initial Gel: 3 to 10 pH: 8 to 9.3 Continuously remove solids from mud pits if applicable. Maintain enough barite on site to kill well. Keep H2S control chemicals on site. Ormat Nevada Inc.—Geothermal Resources Office PLUG & ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spun Prospect,Alaska Page 13 CEMENTING PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLE 26-11 Mt.Spurr,Alaska Casing: HWT casing Depth: 0-3988-ft Hole Size: HQ and NQ Proposed Cement Volume: 20-ft3 (10% Excess) Proposed Cement Weight: >10 lb/gal Proposed Cement: Type I-II Portland Cement with "'27%Gel Specific Gravity 3.15 Slurry Yield ^'4.8 ft3/sack or—36 gal/sack Water Requirements 30 gallons/sack= —125 gallons Total Mixing Water N/A Ormat Nevada Inc.—Geothermal Resources Office PLUG&ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 14 APPENDIX B - EMERGENCY PLANS EXISTING TEMPERATURE GRADIENT CORE HOLE 26-11 Mt.Spurr,Alaska A. Injury Contingency Plan In the event injuries occur in connection with an Ormat Nevada (Ormat) operation, specific and immediate attention will be given to proper transportation to a medical facility. B. Blowout Contingency Plan 1. Blowout prevention equipment will be kept in operating condition and tested in compliance with State of Nevada (NDOM) regulations, and industry standards. 2. In addition, cold water and barite will be stored at the wellsite for use in killing the well in case of an emergency. 3. In the event of an emergency, such as a blowout, immediate efforts will be taken to shut surface valves and blowout preventer system. 4. If the means to shut-in or control the flow from the well is lost,the Drilling Supervisor is to: C. Initiate appropriate control procedures. 1. Arrange for any injured persons to be taken by the helicopter to the nearest medical facility, as shown in the Injury Contingency Plan. 2. Contact the Project Manager and advise of the situation.The Drilling Supervisor will follow the same procedures stated in the Spill or Discharge Plan. 3. Initiate any further or supplemental steps that may be necessary or advisable, based on consultation with the Project Manager. 4. Be certain that all safety practices and procedures are being followed and that all members of the drilling crew are performing their assigned duties correctly. 5. Attempt to control the well at the rig site with rig personnel and supervisors. 6. If fluid flow is of an uncontained nature, attempt containment with required equipment by constructing sumps and/or dikes as rapidly as possible and as needed. 7. Attempt to construct and/or fabricate and install any wellhead facilities require to contain fluid flow at the well or casing head. 8. Maintain a continuing inspection of the pad area immediately around the well site subject to erosion that may cause failure to the drilling rig structure. Take necessary steps to avert areas of possible erosion by excavation and rebuilding of the area as necessary. 9. Following complete containment of the well, initiate steps to return the area to its normal state prior to the blowout or fluid flow, such as reseeding with similar and approved vegetation. D. Fire Contingency Plan Ormat Nevada Inc.—Geothermal Resources Office PLUG &ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 15 1. Any small fires which occur around the well pad during drilling and/or testing operations should be able to be controlled by rig personnel utilizing on site firefighting equipment. 2. The Forest Service will be notified of any fire, even if the available personnel can handle the situation or the fire poses no threat to the surrounding area. 3. A roster of emergency phone numbers will be available on-site so that the appropriate firefighting agency can be contacted in case of a fire. E. Hazardous Gas Contingency Plan Ormat does not expect to encounter hazardous gases during the P&A process, however H2S monitors will be available onsite, and a contingency plan will be in place and a copy will be maintained at the rig. Emergency Personnel and Telephone Numbers Fire 911 Law Enforcement 911 Hospital 911 Contractor Representatives Alaska Earth Sciences, Inc. 907-205-1217 (cell) Andy Angel - aangel@alaskaearthsciences.com 907-522-4664 (office) CARDNO Allison Payne—allison.payne@cardno.com 907-261-7716 (office) 907-632-3422 (cell) Ormat Company Representatives Ormat Nevada (Reno, NV) 775-356-9029 (office) Scott Kessler- skessler@ormat.com (775) 848-049 (cell) Skip Matlick- smatlick@ormat.com 562-544-5141 (cell) Brad Peters- bpeters@ormat.com 775-225-2288 (cell) Elaina Shope - eshope@ormat.com 775-223-7910 (cell) James Tennison - jtennison@ormat.com 760-562-4000 (cell) Ormat Nevada Inc.—Geothermal Resources Office PLUG &ABANDON PROGRAM EXISTING TEMPERATURE GRADIENT CORE HOLES Mt. Spurr Prospect,Alaska Page 16 Elton Colbert - ecolbert@ormat.com 775-830-5570 (cell) APPENDIX C - RESERVOIR CONDITIONS EXISTING TEMPERATURE GRADIENT CORE HOLE 26-11 Mt.Spurr,Alaska RESERVOIR PARAMENTERS The measured temperature at 3600-ft KB is 132° F. The measured pressure at 3150-ft KB is 1,364 PSIA. (This is the deepest pressure reading taken) APPENDIX D - EXISTING CEMENTING EXISTING TEMPERATURE GRADIENT CORE HOLE 26-11 Mt.Spurr,Alaska CONDUCTOR—5.66-in Conductor to 85-ft below ground surface CASING—4%2 in. 11.3 lb. HWT Casing DEPTH—0-452-ft KB HOLE SIZE—4.88-in CASING—3 Y2 in. 11.3 lb. HQ Rod DEPTH—0-3170-ft KB HOLE SIZE—3.8-in Used Type I-II Portland Cement with 5% Calcium Chloride Slurry Density— 15 lb/gallon Specific Gravity—3.15 Slurry Yield— 1 ft3/sack Water Requirements—<5.5 gallons/sack Total Mixing Water—N/A Ormat Nevada Inc.—Geothermal Resources Office Appendix B: Photographs Field Sites (August 2014) 41410 Well site 62-2 Photograph of Wellhead 62-2 taken in August of 2014. This area is naturally sparse in vegetation,as the ground is covered with young volcanic cinders. 30 ' Page > , ,7. - .cam r :, ..'„...% ',. .,4W4 -YS:+ ., i." { - } : -sz- •t J. y 't*+_ r '' 1 Well site 67-34 Photograph of Wellhead 67-34 taken in August of 2014. This area is naturally sparse in vegetation, as the ground is covered with young volcanic cinders. Installation of the wellhead has left a depression at the site which will be filled in with local gr and regraded to the satisfaction of the DNR. 41110 Well site 26-11 Photograph of Wellhead 26-11 (deep well)taken in August of 2014. Vegetation has rapidly returned to disturbed areas of this site since the close of drilling in 2011. Large timber/structural supports remain on- site which will be used during P&A operations,and will then be burned at the close of operations. 31 lPage - �r. '�" � '��` � ,�' ' ;'4` t ' l#� , shy; ht 'ell � ta°.' � � v3 X43# � xE 1,4:40,��p ,y�.x x ::44" d r t .�w` .✓ `" a9a....'' Vias.. 99,M 5 gypp" 1' A` Temporary Camp site Photograph of camp site area taken in August of 2014. Most remaining materials are wooden frames from the temporary camp housing/buildings,and can be burned on site. Any metal,plastic, or other noncombustible materials would be hauled out by helicopter during 2016 field work. Appendix C: Bear/Wildlife Interaction Plan Note: Appendix C: Bear/Wildlife Interaction Plan is the original plan from Ormat's operations in 2010. Modifications to this plan are noted in text above. Some company data/information within Appendix C may not be current. 32 � Page Bear / Wildlife Interaction Plan Phase 1 Mt. Spurr Geothermal Exploration June — August 2010 Prepared for ORMAT Ormat Nevada, Inc. 6225 Neil Road Reno, Nevada 89511 Prepared by ENTRIX, Inc. 1600 A Street, Suite 304 Anchorage, Alaska 99501 June 2010 33IPage Introduction Ormat Nevada, Inc.(Ormat)prepared this Bear/Wildlife Interaction Plan as part of its Lease Plan of Operations for its Phase 1 Mt. Spurr Geothermal Exploration Project. This Phase I activity will be referred to in this document as the"Project". The Project entails conducting fundamental field,imaging, and geophysical exploration with a goal of defining a viable geothermal resource. The Ormat Project will be located on 15 geothermal lease tracts acquired from the State of Alaska in the Mt. Spurr Geothermal Lease Sale No. 3 on June 16,2008. The leases are located approximately 80 miles west of Anchorage on approximately 36,052 acres at Mt. Spurr. There are three main areas of exploration interest at the Project,termed the Western, Central, and Eastern regions. All three regions will be surveyed for geologic,geophysical,and geochemical properties. Because the prospect lies in a roadless region, approximately 40 miles west of the nearest infrastructure at the village of Tyonek or Beluga,much of the exploration planned for 2010 will be air-based to avoid an expensive,remote ground-presence. Ground-based survey,mapping,and sampling activities will be based at either Beluga,Tyonek or a remote base temporary camp set up within the lease area,which will be serviced by helicopter. Phase I of the Project is scheduled to occur in late spring through summer 2010. Exploration will begin with the acquisition of high resolution aerial photography,LiDAR and hyperspectral data(late-June 2010 timeframe). An air-based magnetic survey is planned for an early July 2010 timeframe. Ground-based MT(Magneto-telluric)and gravity data will be acquired over the leases in the July through August 2010 timeframe. In addition,Ormat will carry out approximately two weeks of field-based mapping, geochemical sampling(including soil CO2 flux surveys)and ground-truthing of the various exploration datasets. Additional geophysics may also be carried out in this timeframe if warranted(e.g.,higher resolution gravity in specific locations,CSAMT,etc.). Ormat will then site potential gradient and slim hole drilling locations based on analysis and synthesis of these datasets. Any potential drilling will not begin until September 1,2010 and will be authorized in subsequent permit authorizations. Objective The objective of this Bear/Wildlife Interaction Plan is to ensure that the effects from the Phase I Mt. Spurr Geothermal Project on wildlife and wildlife habitats within the Project area are minimized. Practices and procedures aimed at preventing,minimizing or mitigating potential adverse effects of the Project on wildlife and wildlife habitats are outlined below. This plan focuses on species of interest that were identified during the environmental assessment process. Species of interest which specific mitigation measures have been developed for their habitat or protection include grizzly bear,golden and bald eagles,and migratory birds. Other species such as moose, wolverine,black bear,ground squirrels,red fox,mountain goats,resident birds,and Dall sheep are considered using generalized mitigation measures. 34IPage Regulations The following regulations apply to the wildlife and wildlife habitats within the Project area. Migratory Birds Under the Migratory Bird Treaty Act(MBTA)(16 U.S.C. 703),it is illegal for anyone to"take" migratory birds,their eggs,feathers or nests. "Take"includes by any means or in any manner,any attempt at hunting,pursuing,wounding,killing,possessing or transporting any migratory bird,nest,egg, or part thereof. In Alaska,all native birds except grouse and ptarmigan(protected by the State of Alaska) are protected under the MBTA. The destruction of active bird nests,eggs,or nestlings can result from mechanized land clearing,grubbing, and other site preparation and construction activities and would violate the MBTA. Eagles Bald and golden eagles are protected under the Bald and Golden Eagle Protection Act(BGEPA: 16 U.S.C. 668-668c). All parties working in the vicinity of eagles are responsible for avoiding the taking,"at any time in any manner(of)any bald eagle...or any golden eagle... or any part,nest or egg thereof"(16 U.S.C. 688a). "Taking"is defined as to, "pursue, shoot, shoot at,poison,wound,kill, capture,trap, collect,molest or disturb"(16 U.S.C. 688a). During the nesting period(March 1 through August 31), eagles may be sensitive to noise and obtrusive human activity in the vicinity of nest sites. Eagle nests occurring in the vicinity of any Project component,including borrow sources,roads, staging areas,etc. must be identified. Bears Under Alaska State Regulations,"you may kill game animals in defense of your life or property if you did not provoke an attack or cause a problem by negligently leaving human food,animal food or garbage in a manner that attracts wildlife and if you have done everything else you can to protect your life and property." In addition,baiting and feeding bears and other wild game by photographers,tourists,hunters or others is prohibited by regulation(5 AAC 92.230)except for trapping furbearers or hunting black bears consistent with regulations on black bear baiting[5 AAC 92.085(4)]. General Wildlife Mitigation A number of general mitigation measures have been proposed to limit the effects of the Project on wildlife. These policies and practices will apply throughout Phase I activities of the Mt. Spurr Geothermal Project and are aimed at minimizing or preventing wildlife problems through the training of employees,management of food and garbage,treatment of problem animals,and establishment of procedures and policies on wildlife management. These general mitigation measures include the following: • All company and contractor personnel will complete awareness training. The training program will be designed to inform each person working on the Project of environmental,cultural,and social concerns. It will be designed to ensure that personnel understand and use techniques 35IPage necessary to preserve geological, archeology, and biological resources. In addition,the program will be designed to help personnel increase their sensitivity and understanding of the community values, customs, and lifestyles in the Project area. • Additional specialized training will be provided to employees as needed,including permit compliance requirements. • Any activities, including camp set up, will not occur within 500 feet of any fish bearing waterbody. • Project personnel will be instructed not to feed wildlife of any type or in any other way attempt to attract or harass animals or birds. • Food will be kept inside wildlife proof containers that minimize odors. Any grease, oils,fuels, or antifreeze stored on-site must also be stored in bear-proof areas or containers. • Waste must be reduced,reused, or recycled to the maximum extent practicable. Garbage and domestic combustibles must be incinerated daily or hauled daily whenever possible to an approved site in accordance with 18 AAC 60. • Dogs, other than those used to assist in bear control,will not be allowed on site. • Personnel must avoid all interactions with wildlife unless crew safety is at risk. • Firearms will be used on-site by authorized personnel only(i.e.,bear monitors). Personal firearms are not permitted on-site. • No hunting or fishing by Project personnel will be permitted. Personal fishing gear is not permitted on-site. • Birds,nests,and eggs must be left intact. If an active nest is directly near or in the path of the construction work, a no-work buffer zone will be established and crews will work in another area until birds have vacated the nest. • Surface entry will be avoided if within one-quarter mile of trumpeter swan nesting sites between April 1 and August 31. Species Specific Mitigaticii4 In addition to the General Management Practices, specific management practices have been established for the following species. Bears Dedicated bear monitors will be maintained on location to look for and identify evidence of bear presence in the Project vicinity. Bear monitors will also be assigned to continually watch a bear when present in the Project vicinity. If a bear is sighted,personnel will be directed to keep their distance,look around for other bears(cubs accompanying their mothers)and move to a secure location. 36 IPage Bear monitors will use bear deterrents, such as air horns,bear spray,and/or bear bangers. Pilots will be informed when transporting personal bear deterrents by aircraft. Bear monitors will carry two-way radios to notify the onsite Ormat designated representative of the presence of bears in the area. The Ormat representative will be responsible for informing all Project personnel of the bear siting. When working outside,all Project personnel should be aware of any visual or auditory barriers that may contribute to surprising bears and other wildlife(e.g.,noise of river). The bear monitor is aware that a bear may be shot only in defense of life and property, and the incident must be immediately reported to ADFG. • Monday to Friday(8:00 am-5:00 pm): ADFG-Division of Wildlife Conservation: 907-465-4359 • Evenings and Weekends: Alaska State Troopers: 907-465-4000 Golden and Bald Eagles Project personnel will be made familiar with golden and bald eagles that could be in the Project vicinity. During exploration,if a nest of a golden or bald eagle is found,Ormat will avoid or mitigate the potential loss of the active nest. Prior to camp set up and designation of a helicopter landing area, Ormat will visually inspect the area for nests. If a bald eagle nest is found,Ormat will locate the camp or landing area a minimum of 660 feet away. In the event that a golden eagle nest is found, Ormat will consult with the USFWS to establish a buffer distance. In addition, spring and summer(i.e.,between May 1 and July 15)mechanized land-clearing,placement of fill, or grubbing that could destroy active bird nests,eggs, or nestlings will be avoided. Any eagle nests found will be documented and reported to the onsite Ormat designated representative who will contact designated USFWS personnel. Migratory Birds Project personnel will be made familiar with migratory birds that could be in the Project vicinity. During exploration, if an active nest of a listed or migratory bird is found,Ormat will avoid or mitigate the potential loss of the active nest. Prior to camp set up and designation of a helicopter landing area,Ormat will visually inspect the area for nests. If a nest is found(e.g.,Lapland Longspur),Ormat will locate the camp or landing area at least 200 feet away,and will avoid walking by the nest on a regular basis. In addition, spring and summer(i.e.,between May 1 and July 15)mechanized land-clearing,placement of fill, or grubbing that could destroy active bird nests,eggs,or nestlings will be avoided. 37IPage Schwartz, Guy L (DOA) From: Elton Colbert <ecolbert@ormat.com> Sent: Wednesday,June 29, 2016 9:06 AM To: Schwartz, Guy L(DOA) Cc: Allison.Payne@cardno.com Subject: RE:67-34 Mt Spurr Geothermal well P &A (PTD 210-098) Follow Up Flag: Follow up Flag Status: Flagged Good morning Guy,thank you for the quick response. Yes,the BTW rod (2.225" O.D.) will fit inside the liner(2.375" I.D.) but it's tight. If the slots are plugged then moving forward will mean the alternate plan of cementing the liner with drill rod and then cementing across the annulus from surface. If that is the case,there will be no way of knowing that the cement reached TD other than measuring volume. If cement returns are seen at the other annulus wing valve too soon then we will know cement did not get to bottom. If the slots are plugged, and we're seriously concerned about cementing across the wing valves,then perhaps the liner should just be removed and we can P&A in the same fashion as 62-2. But,that will mean we'll be completely open to the world while pulling liner and reinstalling the well head. Please let me know your considerations regarding this. If the slots are plugged,there is no easy way about it. In regards to artesian flow and the diesel cap, in the program under: I. PROJECT DESCRIPTION/B. Proposed Plug and Abandonment/b. Containment Basins: We have: There is a diesel fuel cap on this well.The overflow line will initially be connected to containers that will catch all liquid until it is verified that all the diesel has been contained.The remaining overflow material will be water and possibly non-toxic formation/drilling material.All diesel material is to be flown out for proper disposal. The artesian flow should be minimal is at all since there is 0 PSI WHP as witnessed in 2014. But if it does flow,we are confident it will be minimal and well within our means to control/kill the flow. Thanks again, please keep the questions and concerns coming and I'll respond ASAP. Regards, Elton From:Schwartz,Guy L(DOA) [mailto:guy.schwartz@alaska.gov] Sent:Tuesday,June 28, 2016 4:58 PM To: Elton Colbert<ecolbert@ormat.com> Cc:Allison.Payne@cardno.com Subject: RE: 67-34 Mt Spurr Geothermal well P&A(PTD 210-098) ***Please be aware : This is an EXTERNAL EMAIL*** Elton, One follow-up question for 67-34 . If it does lock up or you can't circulate how are you going to get cement into the backside (tubing X casing annulus.) Your plan states you will run work string into well inside the tubing(steps 3-10). Will 2 .25" BTW fit inside the tubing or are you planning on pulling tubing first? 1 Schwartz, Guy L (DOA) From: Elton Colbert <ecolbert@ormat.com> Sent: Friday,June 24, 2016 1:28 PM To: Schwartz, Guy L(DOA) Cc: Allison L Payne;Scott Kessler; Rob Retherford; Brad Peters;Steve D. Barnwell Subject: RE: Spurr West P&A (PTD 211-069) Response to questions and concerns. Attachments: Mt. Spurr Report on Well Inspections -2014.pdf; Mt Spurr- Core Hole PA Program 26-11 -6-22-16.doc; Mt Spurr- Core Hole PA Program 62-2 -6-22-16.doc; Mt Spurr- Core Hole PA Program 67-34 - 6-22-16.doc Follow Up Flag: Follow up s / 6-'7-.3 `1 Flag Status: Flagged to ciJ Guy, I'm back in the states and I want to make sure there are no further questions in regards to the Mt.Spurr P&A.To begin with, I've answered your questions for all three wells in red below.Also, attached are revised Programs (including diagrams)with only the recent changes and clarifications highlighted in yellow. Please contact me directly with any further clarifications and or questions.Thank you and regards, Elton . 26-11 1) This well has a 2" nipple on top wellhead yet in step 4( appendix A)you are using 2.25" BTW rod for the workstring. Will this drift the wellhead or are you using something else as a cementing string? Guy, I was incorrect we are using BTW drill rod is 2 1/4 inches OD (Actual size is 2.225" &3.45 lbs/ft). We'll be running the drill pipe right through the master valve and open ended between the valve and the drill pipe.The displaced liquid will exit via the wing valve before it gets to surface. We'll have to enter and displace slowly so as not to displace out of the top of the master valve though the containment basin will catch all displaced liquid if this does happen. 2) It is unclear to me how you will displace cement to the bottom of the well in step 5 if you only RIH with the workstring to 3170 ft. Is it possible to RIH inside the existing fish to TD with the workstring?? Also Is there some kind of low pressure packoff in the 2" nipple shown in figure 2 to help direct the returns to the containment or help to bullhead cement? We have 1000-ft of AQ rod (1.75-in O.D. 1.37 ID)that we will be using in an attempt to get inside the existing fish. A stinger if you will. There is no pack off at surface (see answer to question#1).Typically this would be accomplished with a BOP but we're asking for that to be omitted in lieu of the fact that there is no pressure on all three wells. 3) In step 7 after first 818 ft cement plug is pumped the work string should be RBIH and tag the top of cement to verify it is solid before the mechanical bridge plug is set at 3160 ft. After the plug is set the casing should be pressure tested to 500 psi and charted for 30 min . Guy, after careful consideration and internal discussions with support staff,this whole section has been re- worked and incorporates what you are asking for. Please see yellow highlighted sections in Appendix A. 4) Is the 31/2" HQ casing cemented back to surface? (0-3170 ft) yes Same questions as 62-2 below: 5) All the welded caps(step 15) should be made according to 20 AAC 25.120 . There is not much room on the 4.5" cap to so you may request a variance or some other way to ID the wellhead after burial. Be sure to notify the AOGCC inspectors 48 hrs in advance in order to witness the cutoff of the wellhead and capping casing. This should all be photo documented as well. We will likely weld a "flag"to the side of the exposed casing to fit all the necessary information rather than request a variance. 6) In your emergency response (appendix B) in the unlikely event the well kicks I didn't see any reference to how you would secure well with the workstring across the master valves. How will you remove pipe or will it be dropped etc. (No BOP OR Annular) Please see Appendix B/B. Blowout Contingency Plan which has been updated with the following: 1) No blowout equipment will be installed or used in the P&A process. Cement tubing will be run through open master valve. 2) Cold water and barite will be stored at the wellsite for use in killing the well in case of an emergency. The wing valve will contain a two-way connection. One for displaced liquid to exit and one for emergency cold water to kill the well. 3) In the event of an emergency, such as a blowout, immediate efforts will be taken to shut surface valves after dropping drill pipe from surface. 4) At all times the distance between the bottom of the drill pipe and nearest obstruction shall be greater than the distance between the master valve and top of the drill pipe at surface. 7) How did you come up with a Zero psi MPSP number. Is this based solely on the current wellhead pressure and has this been checked lately? Is there a known current fluid level in all the three wells? This is based on the latest well inspection of all three wells in 2014 (the state waived the inspection requirement in 2015 because of the upcoming plans to P&A). I have attached a copy. 8) What are you doing with the returned water as far as disposal? Are cement returns going into the containment area also? Please see I. PROJECT DESCRIPTION/B. Proposed Plug and Abandonment/b. Containment Basins: which contains the following: A containment basing will be built around the well using timber decks left on location from the initial drilling of all three temperature gradient wells. The containment basin will be used to catch any non-toxic material that may spill on, out, or over during the P&A process. The P&A is expected to displace some well water and possibly non-toxic formation/drilling material which will drain out the wing valve through a hose beyond the containment basins in a manner that will not alter the existing topography.See Appendix A for quantities.At the end of the P&A process, there will be overflow cement indicating the plug has reached surface. This is to be to be flown out for proper disposal. 62-2 1) This well has a 2"valve and nipple on wellhead yet in step 4( appendix A)you are using 2.25" BTW rod for the workstring. Will this drift the wellhead or are you using something else as a cementing string? The same applies to 62-2 as to 26-11. But instead of an existing wing valve, we will be welding on the overflow and kill line to the side of the casing and stripping 2.25-in BTW drill pipe through the top of the master valve.The wellhead diagram has been updated to reflect this. 2) It is unclear to me how you will displace cement to the bottom of the well in step 5 if you only RIH with the workstring to 400 ft. Did you mean to say RIH to 800 ft?? Is there some kind of low pressure packoff in the(N) cross in figure 2? We are running in the hole to—25 ft above TD,this should give us enough space for the initial volume of cement and still maintain room as we pull up in case we need to drop the pipe in case of an emergency. Again, no pack-off. 3) In step 7 after first 400 ft cement plug is pumped the work string should be RBIH and tag the top of cement to verify it is solid before second 400 ft cement plug is pumped back to surface. Yes, we will be tagging the top of the cement on all 500-ft intervals on all (3) wells.The plans incorporate this. 4) All the welded caps (step 10)should be made according to 20 MC 25.120 . There is not much room on the 4.5" cap to so you may request a variance or some other way to ID the wellhead after burial. Be sure to notify the AOGCC inspectors 48 hrs in advance in order to witness the cutoff of the wellhead and capping casing. This should all be photo documented as well. Please see previous answer.Thank you. 2 5) In your emergency response (appendix B) in the unlikely event the well kicks I didn't see any reference to how you would secure well with the workstring across the master valves. How will you remove pipe or will it be dropped etc. (No BOP OR Annular) Please see previous answer.Thank you. 6) How did you come up with a Zero psi MPSP number. Is this based solely on the current wellhead pressure and has this been checked lately? Is there a known current fluid level in all the three wells? Please see previous answer.Thank you. 7) What are you doing with the returned water as far as disposal? Are cement returns going into the containment area also? -e 'revious answer.Thank you. ('134 1) Do you have a detail of the wellhead showing how the tubing is landed in wellhead and how you will get returns of water/cement back to surface and outlet valves? ( need a fluid path diagram of what you are proposing.) This is the only well with existing tubing that you are pumping cement in. It is our intention and this has been reflected now in the program to hook up a water pump to the welihea• If we are successful in pumping through the liner, out the 20-30 ft.of slots at bottom and up the annulus out a wing valve a full well bore volume we will cement in a similar fashion with no rig. If the slots are plugged we will need to rig up and run tubbing to cement the liner then squeeze the annulus from one wing valve to another.The program and diagrams have all been updated to reflect this. 2) Where is the 2 3/8"tubing actually perforated and is it bull plugged on the end? How will you verify cmt is going to well TD. ( have you considered pumping tracer before cmt to verify hole volume of 80 ft3?) It is capped, 20-30-ft of perforations, don't know the size of the perforations 3) In this specific case are you even rigging up the AES rig(see step 2 on appendix A)? If so why?Assume your cementing equipment is separate from rig. Please see the answer to 67-34#1 above for clarification. 3 1 Report on Mt. Spurr Observation Well Inspections 2014 Mt. Spurr,Alaska Geothermal Exploration Ormat Nevada 2014 Observation Well Inspections—Wells 62-2,67-34 and 26-11 Inspections conducted by Payne Geothermal LLC of Anchorage,AK Summary: -All wells inspected on August 23, 2014. -All wells were found locked and in good condition. -Surrounding environments appear healthy with no additional disturbance. -All wellhead pressure readings were at'zero' PSI. -All temperatures were within expected ranges. Lower Chaka-Well 62-2 (Installed 2010) 61° 15'01.03"N 152°05'11.33"W Wellhead was found to be locked and in good condition. The pressure gauge read 0 PSI. A probe was run down-hole to check depth to water and temperature at the water level. Depth to water was 174 feet and temperature was 47.3°F. The environment around the wellhead is on a gentle slope covered with volcanic tephra/gravel with naturally sparse vegetation. The small amount of . vegetation disturbed during drilling has largely recovered. Upper Chaka-Well 67-34 (Installed 2010) 61° 15'20.96"N 152°07'00.64"W Wellhead was found to be locked and in good condition. The pressure gauge read 0 PSI. Due to artesian flow conditions at the close of drilling,this ~y,. well is topped off with diesel to prevent freezing. ' The well therefore cannot be opened,and depth to water and temperature cannot be measured at this T . time. The environment at well 67-34 is naturally void of all but sparse vegetation,as the area is completely • covered with volcanic tephra/gravel. The _ • ,:a , ` � environment is unchanged since the close of drilling. Spurr West-Well 26-11 (Installed 2011) 61° 13'45.28"N 152°06'00.70"W Wellhead was found to be locked and in good condition. The pressure gauges read 0 PSI. A probe ' arm was run down-hole to check depth to water and temperature at the water level. Depth to water was 325 feet and temperature was 44.2°F. The environment around the wellhead that was , cleared of vegetation in 2011 is re-vegetating,with Y „ abundant grasses and young willows repopulating the area. • upper C tt a, 6_ b 7- 34 ZQ o o ciw Regg, James B (DOA) From: Regg, James B (DOA) !� 517-7(� - Sent: Thursday, August 27, 2015 2:31 PM '� � To: 'Allison.Payne@cardno.com' Cc: Davies, Stephen F (DOA); Schwartz, Guy L (DOA) Subject: RE: Ormat/Mt. Spurr update Site visit this year is not required. A report ' e by 3/31/16 per 20 AAC 25.115 (Shut-in wells)and must address plans to abandon the 3 wells (Upper Chaka 7-34, PTD 210098( Lower Chaka 62-02, PTD2101170; Spurr West 26-11, PTD 2110690) Jim Regg Supervisor, Inspections 9, " AOGCC sato 333 W.7th Ave,Suite 100 Anchorage,AK 99501 907-793-1236 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information. The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Jim Regg at 907- 793-1236 or jim.regg@alaska.gov. From: Davies, Stephen F (DOA) Sent: Wednesday, August 26, 2015 4:01 PM To: Regg, James B (DOA) Subject: FW: Ormat/Mt. Spurr update Jim, Apparently Ormat needs a reply soon concerning site inspection for this season (see Item 2, below). Would you have time to reply? Or I can if you let me know the proper answer. Thanks, Steve D. From: Allison Payne [mailto:Allison.Payne@ cardno.com] Sent: Wednesday, August 26, 2015 3:36 PM To: Davies, Stephen F (DOA) Cc: Steve Lombard Subject: RE: Ormat/Mt. Spurr update Thanks, Steve. Next week is just fine to discuss the water well issue. Right now, the only pressing issue is whether Ormat needs to complete another inspection of their 3 existing wells during this 2015 field season. Wells have had no problems in past inspections and will be abandoned next season. If you have a quick response to this, or can refer us to someone/somewhere else for assistance, we would appreciate it. 1