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Home My WebLink AboutCO 721CONSERVATION ORDER 721 Prudhoe Bay Unit Lisburne Oil Pool Prudhoe Bay Oil Pool 1. September 30, 2015 BPXA Application to Commingle Production from Lisburne and Prudhoe Bay Oil Pools in K-322 well 2. October 8, 2015 Notice of Public Hearing, Affidavit of Publication, bulk mail list, email distribution list 3. January 18, 2016 BPXA response to AOGCC questions, revised application 4. January 5, 2016 Public Hearing Transcript, CIE presentation, sign -in sheet CONSERVATION ORDER 721 ORDERS STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF BP Exploration (Alaska) Inc. for an order authorizing the downhole commingling of production in Prudhoe Bay Unit well K-322 Lisburne Oil Pool and Prudhoe Oil Pool Prudhoe Bay Unit, North Slope Borough, Alaska IT APPEARING THAT: Docket Number: CO- 15-010 Conservation Order 721 Prudhoe Bay Unit Lisburne Oil Pool Prudhoe Oil Pool North Slope Borough, Alaska February 18, 2016 1. By application dated September 30, 2015, and in accordance with 20 AAC 25.215(b), BP Exploration (Alaska) Inc. (BPXA), in its capacity as operator of the Prudhoe Bay Unit (PBU), requested authorization to commingle production from the Lisburne Oil Pool (LOP) and Prudhoe Oil Pool (POP) in the proposed PBU well K-322. 2. Pursuant to 20 AAAC 25.540, the Alaska Oil and Gas Conservation Commission (AOGCC) tentatively scheduled a public hearing for November 10, 2015. On October 7, 2015, the AOGCC published notice of the opportunity for that hearing on the State of Alaska's Online Public Notice website and on the AOGCC's website, electronically transmitted the notice to all persons on the AOGCC's email distribution list. On October 8, 2015, the AOGCC mailed printed copies of the notice to all persons on the AOGCC's mailing distribution list and published the notice in the Anchorage Dispatch News. 3. No protest to the application or request for hearing was received. 4. The hearing was vacated on November 2, 2015. 5. On December 17, 2015, the AOGCC sent an email to BPXA requesting clarification on items in the application. 6. On January 19, 2016, BPXA responded to the AOGCC's December 17, 2015 email and proposed a different methodology for production allocation. FINDINGS: 1. BPXA is proposing to drill and complete the PBU K-322 well to target the Wahoo sands in the LOP. The proposed well would penetrate the gas cap of the POP on its way to the LOP. 2. The primary target for the well is the LOP, but it would be perforated also in the POP to be able to use the gas from the POP gas cap as a form of in -situ gas lift to help lift the LOP production to the surface. In the event that in -situ gas lift does not work the well will also be setup to utilize conventional gas lift. 3. The proposed well would be completed with a sliding sleeve with an interchangeable orifice over the POP perforations so that the volume of gas coming from the POP could be regulated to a fixed amount. Conservation Order 721 February 18, 2016 Page 2 of 3 4. The PBU K-322 well would be tested on a regular basis and production allocated to it in accordance with the established well testing and allocation methodologies for the PBU. 5. The formation gas rate from the LOP is anticipated to be small and therefore all NGLs allocated to the PBU K-322 well would be allocated to the POP. 6. The gas production from the POP will be determined based on the calculated pass through rate for the orifice in place. LOP gas would be allocated by subtracting the gas allocated to the POP from the total amount of gas allocated to the well based on the periodic well testing. 7. All oil and water produced by the PBU K-322 well would be allocated to the LOP. CONCLUSIONS: 1. Commingling of production from the LOP and the POP in the PBU K-322 wellbore should not harm ultimate recovery from either pool. 2. BPXA's proposed production allocation methodology provides a proper means by which to allocate production to the LOP and POP. NOW THEREFORE IT IS ORDERED: Commingling of production from the Lisburne Oil Pool and Prudhoe Oil Pool within the wellbore of the Prudhoe Bay Unit K-322 well is hereby approved, subject to the following conditions, in accordance with 20 AAC 25.215(b)(2). Condition 1 — The well must be completed with the sliding sleeve and interchangeable orifice over the POP perforations, as described in the application,. Condition 2 — The PBU K-322 well must be periodically tested in accordance with the established well testing and allocation procedures to allocate a total production volume for the well. Production to the LOP and the POP shall be allocated as follows: NGLs — allocated 100% to the POP Oil — allocated 100% to the LOP Water — allocated 100% to the LOP Gas — POP Formation Gas Rate = Orifice Gas Pass through Rate, LOP Formation Gas Rate = Total Gas Rate - Orifice Gas Pass Through Rate Cathy V Foerster Chair, Commissioner Daniel T. Seamount, Jr. Commissioner Conservation Order 721 • February 18, 2016 Page 3 of 3 RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10-days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. Carlisle, Samantha J (DOA) From: Carlisle, Samantha J (DOA) Sent: Thursday, February 18, 2016 1:30 PM To: Ballantine, Tab A (LAW) (tab.ballantine@alaska.gov); Bender, Makana K (DOA) (ma kana.bend er@alaska.gov); Bettis, Patricia K (DOA) (patricia.bettis@alaska.gov); Bixby, Brian D (DOA); Brooks, Phoebe L (DOA) (phoebe.brooks@alaska.gov); Carlisle, Samantha J (DOA); Colombie, Jody J (DOA) Oody.colombie@alaska.gov); Cook, Guy D (DOA); Davies, Stephen F (DOA) (steve.davies@alaska.gov); Eaton, Loraine E (DOA); Foerster, Catherine P (DOA) (cathy.foerster@alaska.gov); Frystacky, Michal (michal.frystacky@alaska.gov); Grimaldi, Louis R (DOA) (lou.grimaldi@alaska.gov); Guhl, Meredith (DOA sponsored) (meredith.guhl@alaska.gov); Herrera, Matthew F (DOA); Hill, Johnnie W (DOA); Jones, Jeffery B (DOA) (Jeff jones@alaska.gov); Kair, Michael N (DOA); Link, Liz M (DOA); Loepp, Victoria T (DOA); Mumm, Joseph (DOA sponsored) Ooseph.mumm@alaska.gov); Noble, Robert C (DOA) (bob.noble@alaska.gov); Paladijczuk, Tracie L (DOA)(tracie.palad ijczuk@alaska.gov); Pasqual, Maria (DOA) (maria.pasqual@alaska.gov); Quick, Michael J (DOA); Regg, James B (DOA) Oim.regg@alaska.gov); Roby, David S (DOA) (dave.roby@alaska.gov); Scheve, Charles M (DOA) (chuck.scheve@alaska.gov); Schwartz, Guy L (DOA) (guy.schwartz@alaska.gov); Seamount, Dan T (DOA) (dan.seamount@alaska.gov); Singh, Angela K (DOA) (angela.singh@alaska.gov); Wallace, Chris D (DOA) (chris.waIlace@alaska.gov); AKDCWellIntegrityCoordinator; Alan Bailey; Alex Demarban; Alexander Bridge; Allen Huckabay; Amanda Tuttle; Andrew Vandedack; Anna Raff; Barbara F Fullmer; bbritch; Becky Bohrer; Bob Shavelson; Brian Havelock, Bruce Webb; Burdick, John D (DNR); Caleb Conrad; Carrie Wong; Cliff Posey; Colleen Miller, Crandall, Krissell; D Lawrence; Dave Harbour; David Boelens; David Duffy; David House; David McCaleb; David Steingreaber; David Tetta; ddonkel@cfl.rr.com; Dean Gallegos; Delbridge, Rena E (LAS); DNROG Units (DNR sponsored); Donna Ambruz; Ed Jones; Elowe, Kristin; Evans, John R (LDZX); Frank Molli; Gary Oskolkosf, George Pollock; Gordon Pospisil; Gregg Nady; gspfoff, Hyun, James J (DNR); Jacki Rose; Jdarlington oarlington@gmail.com); Jeanne McPherren; Jerry Hodgden; Jerry McCutcheon; Jim Watt; Jim White; Joe Lastufka; Joe Nicks; John Easton; Jon Goltz; Juanita Lovett; Judy Stanek, Julie Houle; Julie Little; Karen Thomas; Kari Moriarty; Kazeem Adegbola; Keith Wiles; Kelly Sperback; Laura Silliphant (laura.gregersen@alaska.gov); Leslie Smith; Louisiana Cutler; Luke Keller; Marc Kovak; Mark Dalton; Mark Hanley (mark.hanley@anadarko.com); Mark Landt; Mark Wedman; Marquerite kremer (meg.kremer@alaska.gov); Mary Cocklan-Vendl; Mealear Tauch; Michael Calkins; Michael Duncan; Michael Moora; Mike Bill; MJ Loveland; mkm7200; Morones, Mark P (DNR); Munisteri, Islin W M (DNR); nelson; Nichole Saunders; Nick W. Glover, Nikki Martin; NSK Problem Well Supv, Oliver Sternicki; Patty Alfaro; Paul Craig; Paul Decker (paul.decker@alaska.gov); Paul Mazzolini; Pike, Kevin W (DNR); Randall Kanady; Randy L. Skillern; Renan Yanish; Richard Cool; Robert Brelsford; Ryan Tunseth; Sara Leverette; Scott Griffith; Shannon Donnelly; Sharmaine Copeland; Sharon Yarawsky; Shellenbaum, Diane P (DNR); Skutca, Joseph E (DNR); Smart Energy Universe; Smith, Kyle S (DNR); Sondra Stewman; Stephanie Klemmer; Stephen Hennigan; Steve Moothart (steve.moothart@alaska.gov); Suzanne Gibson; Tamera Sheffield; Tania Ramos; Ted Kramer; Temple Davidson; Terence Dalton; Teresa Imm; Thor Cutler, Tim Mayers; Todd Durkee; trmjrl; Tyler Senden; Vicki Irwin; Vinnie Catalano; Aaron Gluzman; Aaron Sorrell; Ajibola Adeyeye; Alan Dennis; Andrew Cater; Anne Hillman; Brian Gross; Bruce Williams; Bruno, Jeff J (DNR); Caroline Bajsarowicz, Casey Sullivan; Diane Richmond; Don Shaw; Donna Vukich; Eric Lidji; Graham Smith; Hak Dickenson; Heusser, Heather A (DNR); Holly Pearen; Jason Bergerson; Jim Magill; Joe Longo; John Martineck, Josh Kindred; Kenneth Luckey, King, Kathleen J (DNR); Laney Vazquez; Lois Epstein; Longan, Sara W (DNR); To: Marc Kuck; Marcia Hobson; Marie Steele; Matt A• trong; Mike Franger; Morgan, Kirk A (DNR); Pat Galvin; Pete Dickinson; Peter Contreras; Richard Garrard; Robert Province; Ryan Daniel; Sandra Lemke; Susan Pollard; Talib Syed; Terence Dalton; Tina Grovier (tmgrovier@stoel.com); Todd, Richard J (LAW); Tostevin, Breck C (LAW); Wayne Wooster; William Van Dyke Subject: Conservation Order 721 (PBU, BPXA) Attachments: co721.pdf Please see attached. Samantha Carlisle l Xec utive Sec retare 111 Alaska Oil all(, (""'Is ("onse"'Vation Commission '. WE"'at I7t1 AVi"nue AK 995011 Li p 7*17 221) CONFII)FNI'IAI,17Y NO"I'ICF. This e-mail. message:, including ally attactunents, contains information. from the Alaska Oil and. Gas Conservation Commission (A0GCC), 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 utay 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 AOC,C'C is aware of the mistake in sending it to you, contact SaMantha Carlisle at (907� 793-1223 or Sam<intha.Carlisleiz3alaska.g2v. 0 • Penny Vadla Jack Hakkila 399 West Riverview Avenue P.O. Box 190083 Soldotna, AK 99669-7714 Anchorage, AK 99519 Darwin Waldsmith James Gibbs P.O. Box 39309 P.O. Box 1597 Ninilchick, AK 99639 Soldotna, AK 99669 Bernie Karl Gordon Severson K&K Recycling Inc. 3201 Westmar Circle P.O. Box 58055 Anchorage, AK 99508-4336 Fairbanks, AK 99711 George Vaught, Jr. P.O. Box 13557 Denver, CO 80201-3557 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Richard Wagner P.O. Box 60868 Fairbanks, AK 99706 INDEXES ! 0 Wombie, Jody J (DOA) From: Roby, David S (DOA) Sent: Tuesday, January 19, 2016 2:10 PM To: Colombie, Jody J (DOA) Subject: FW: Application for downhole commingling of K-322 well. Attachments: K-322 Request to Co-mingle_11 Jan 2016 mlb.doc Jody, Please add this email and attachment to the docket folder for CO 15-10. Thanks, Dave Roby (907)793-1232 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 Dave Roby at (907)793-1232 or dave.robv@alaska.aov. From: Oshiro, Joleen [mailto:JOLEEN.OSHIRO@bp.coml Sent: Monday, January 18, 2016 5:33 PM To: Roby, David S (DOA) Subject: RE: Application for downhole commingling of K-322 well. Dear Mr. Roby, Thank you for your December 17 email about the K-322 application for comingling (Lisburne and Prudhoe Oil Pools). Please see my response to your questions below. Enclosed is a revised application letter to reflect the changes noted below. The letter will be submitted to your office in the near future. NGL Allocation: We expect K-322 will have a relatively small amount of Lisburne NGLs due to the low formation gas volume expected from the Lisburne, similar to K-317B (existing co -mingled Lisburne/Prudhoe producer that follows CO 362A). In the allocation of K-317B, all NGLs are gifted to the Prudhoe Oil Pool since the amount of Lisburne NGLs is low. Because the expected K-322 Lisburne NGLs will also be low, we propose that all K-322 NGLs be allocated to the Prudhoe Oil Pool. Gas Allocation: For the gas allocation of K-322, we agree with your statement that the IPA gas can be allocated as Prudhoe Oil Pool fluids since K-322 will have an interchangeable orifice. We propose that the K-322 IPA gas be allocated based on the gas pass through rate of the orifice and that the K-322 Lisburne gas will be allocated based on well tests and the following equation: K-322 Lisburne Formation Gas = K-322 Total Gas - K-322 orifice gas pass through rate Please get in touch if I can provide any more information or clarification. Thank you for your time. Best Regards, loleen Oshiro BP Alaska NWD PE —East Waterflood, Lisburne, GPMA Office: 907-564-4606 Cell: 650-483-4774 From: Roby, David S (DOA) [ma iIto: dave.roby(�balaska.govl Sent: Thursday, December 17, 2015 4:53 PM To: Oshiro, ]oleen Subject: Application for downhole commingling of K-322 well. loleen, I have a couple of questions about the proposed allocation method for this well. First, why is K-317B being used as the model for allocation purposes for this application when that well is not commingled downhole but only in the surface facilities? Second, if you're able to regulate the amount of gas coming from the IPA via the sliding sleeves with the interchangeable orifices why are you proposing to allocate all production to the Lisburne Oil Pool and allocate all NGLs to the IPA? It would seem to me that since the volume of the IPA gas would be known based on the orifice in the sliding sleeve that you could readily determine the gas and NGL splits between the two pools for allocation purposes in this well. Regards, Dave Roby Sr. Reservoir Engineer Alaska Oil and Gas Conservation Commission (907) 793-1232 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 Dave Roby at (907)793-1232 or dave.roby@alaska.gov. 0 • January 11, 2016 Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 RE: Request to Commingle Production from Lisburne Oil Pool and Prudhoe Oil Pool in Well K-322 (REVISED) Dear Ms. Foerster: On September 30, 2015 BP Exploration (Alaska) Inc. (BPXA), Operator of the Lisburne Participating Area (LPA), requested authorization to commingle production from the Lisburne Oil Pool and Prudhoe Oil Pool in proposed well K-322 at K-Pad and Gathering Center 1. BPXA withdraws that letter and replaces it with the following revised request. K-322 will be drilled from K-Pad, and it will target the Lisburne Wahoo formation. The planned bottomhole location of well K-322 is depicted in Exhibit A. Lisburne Oil Pool fluids will be commingled with Prudhoe Oil Pool fluids in K-322's tubing. K-322 will use a sliding sleeve and swell packer completion to target produced fluids in the Lisburne Oil Pool. K-322 will also be perforated in the Prudhoe Oil Pool to allow Prudhoe gas to serve as in -situ artificial lift. A sliding sleeve with an interchangeable orifice will regulate a fixed amount of Prudhoe gas flowing into the K-322 wellbore. The proposed completion for K-322 is shown in Exhibit B. In the event that in -situ gas lift does not work, the surface kit will be set up to provide gas lift to K-322 from source well K-03 (which is completed in the Prudhoe Oil Pool). According to the current drilling schedule, K-322 should be ready to commence production by mid-2017. For royalty and tax purposes, BPXA proposes that all K-322 NGL production be reported as Prudhoe Oil Pool fluids, as Lisburne NGLs will be small due to the low Lisburne formation gas rates expected from K-322. BPXA proposes that K-322 produced gas be allocated to the Lisburne and Prudhoe Oil Pools based on the following methodology: K-322 Prudhoe Oil Pool gas will be allocated based on well tests and the calculated gas pass through rate through the orifice placed in the sliding sleeve. K- 322 Lisburne gas will be allocated using the difference between the total K-322 gas rate and the orifice gas pass through rate (see Exhibit Q. BPXA staff are available should you have any questions or need any additional information. If you need any additional information, please contact Joleen Oshiro at 564-4606. Sincerely, Diane Richmond Attachment: Exhibit A - Map Exhibit B - K-322 Wellbore Schematic Exhibit C- K-322 Gas Allocation Equation 0 • Cc: Mark Vandergon Caroline Bajsarowicz Joleen Oshiro Exhibit A: K-322 planned bottomhole location (and pressure contours) 0 • Exhibit B: Proposed K-322 Wellbore Schematic IWL= CW5K Y"IA'AD= fwl!*( z M SAFMKOT :WRL A.WYLE>10'@ AX ACTUATORP (in -situ gas.) OMMF TW & - L - NR (,*w ftw g 9�„.q!y .. . . ......... __-, .............. KCe- W U. A -63, 0- 19,124' UIRI Minimum ID .. db 2 SIB 4-112" Sliding Sleeves (Series 562 PDX, 13CR) at -WO, UD &'04W'MD 40' - 51 x 4", 13CK VT Blast ,Joints V -9449' - 94W 20'1vishak Gas Pa f/94591- 9482' MD 4-14* 100, 1 ZAN, 13CR-64 VAM TOP, 0 152 W, ID , 3 959' (NOTE, 4-1 P2', 134 t"t'ing betw varl the packers - see Wr " 41WELL PACK NWO DEPM D 10 it ,7 6 5 4 3 2 1 r Lw 13'sk 13C1t40 bpf, K) = 3.Or rt LW *.W, 13CR-WWD52t, 13664` 50 b0f. ID = 100? rats I_U7 Utc:V—I vim= IMMZMMMI= Kim M 3,8*1 7" x 4-1 a' HES TNT Pkr at -9269' MD 4-IM',13.5#, VT. 13CR tubing 11 -9269'- 9790' MO 7" x 4.112*1 HE$ TNT Pkr at -9790'MO ONES Self -Aligning) ir Ur v K- fr FRAC PORT SLEEVES W-A_TSZ_FA_Cn_A_L_S9_E F&C-1 I U21.X -71 1 11 1 MONO" k I I9m: ! - -- --------- M !!!!!!!R M T'." Ful rMIT] MM'ImMmIM MINM • • Exhibit C: K-322 Gas Allocation Equation K-322 Prudhoe Formation Gas Rate =Orifice Gas Pass through Rate K-322 Lisburne Formation Gas Rate = K-322 Total Gas Rate - Orifice Gas Pass Through Rate Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO- 15-010 Lisburne Oil Pool Prudhoe Oil Pool Prudhoe Bay Unit Request to downhole commingle production in proposed well PBU K-322 BP Exploration (Alaska) Inc., by letter dated September 30, 2015, and in accordance with 20 AAC 25.215(b) requests the Alaska Oil and Gas Conservation Commission (AOGCC) authorize downhole commingling of production from the Lisburne Oil Pool and Prudhoe Bay Oil Pool in the proposed PBU K-322 well The AOGCC has tentatively scheduled a public hearing on this application for November 10, 2015, at 9:00 a.m. at 333 W. 7th Ave., Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on October 23, 2015. If a request for a hearing is not timely filed, the AOGCC may consider the issuance of an order without a hearing. To learn if the AOGCC will hold the hearing, call 793-1221 after October 26, 2015. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 W. 7th Ave., Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on November 6, 2015, except that, if a hearing is held, comments must be received no later than the conclusion of the November 10, 2015 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC's Special Assistant, Jody Colombie, at 793-1221, no later than November 4, 2015. Q Cath oerster Chair, Commissioner • STATE OF ALASKA ADVERTISING ORDER NOTICE TO PUBLISHER SUBMIT INVOICE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION WITH ATTACHED COPY OF ADVERTISMENT. ADVERTISING ORDER NUMBER AO-16-007 FROM: Alaska Oil and Gas Conservation Commission AGENCY CONTACT: Jody Colombie/Samantha Carlisle DATE OF A.O. 10/07/15 1(907) AGENCY PHONE: 793-1223 333 West 7th Avenue Anchorage, Alaska 99501 DATES ADVERTISEMENT REQUIRED: COMPANY CONTACT NAME: PHONE NUMBER: ASAP FAX NUMBER: (907)276-7542 TO PUBLISHER: Alaska Dispatch News SPECIAL INSTRUCTIONS: PO Box 149001 Anchorage, Alaska 99514 TI/6LEGAL DISPLAY CLASSIFIED OTHER (Specify below) DESCRIPTION PRICE CO-15-010 Initials of who prepared AO: Alaska Non -Taxable 92-600185 strsviITIrivOl"STIOWr(GAT>v�i3fiSING: :ORDERNO:. CERTIFIED ;AFFIDA:VIT:QF': ': P:uBtiicgTioiy: iTtln rrnciii 1) PY:iji ::: nnyl litsnrt io::::::::::'::::: Department of Administration Division of AOGCC 333 West 7th Avenue Anchors e, Alaska 99501 Page 1 of 1 Total of All Pa es $ - REF Type Number Amount Date Comments I PVN ADN84501 z Ao AO-16-007 3 4 FIN AMOUNT SY Appr Unit PGMWLGRbFY DIST LIQ I 16 02114771716 z 3 4 5 Purchasin A ho ' Na Title: s Signature Telephone Number 1. A.O. # and 2. The state i resale. ivin agency name must appear on all invoices and documents relating to this purchase. istered for tax free transactions under Chapter 32, IRS code. Registration number 92-73-0006 K. Items are for the exclusive use of the state and not for .......:.:..:.:.:.:. . . ... .: '' ri FIs ca 1:12ice rvI i :isw Dv DiYlswrc.FiscaUOrigmaf AO.... Coples: Pubhslier (faxed),. ........... , .... .. . Form:02-901 Revised: 10/8/2015 270227 0001373552 $224.12 STATE OF ALASKA 0 RECEIVED AFFIDAVIT OF PUBLICATION THIRD JUDICIAL DISTRICT EMMA DUNLAP being first duly sworn on oath deposes and says that he/she is a representative of the Alaska Dispatch News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on October 08, 2015 and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Signed Subscribed and sworn to before me t " 8th day of October, 2 115 4�1� eYrt ��s Notary Public in and for The State of Alaska. Third Division Anchorage, Alaska MY COMMISSION EXPIRES OCT 20 2015 •�e fll fllWNL"" AUWM oi4 AW Q" c sWA1r r coi tnssioN Re: , t)ocicet Npmber C071'"10 Lisburne It Pool Prudhoe Oil Pool prudhoe•8ay Unit � �,�� " , Well' PS � . th � cAh'lmlti 2Yi5.`:and in ..._s IikUvrswilV. -lir.w �a,.".,reitL}Yi ' .'A �#N�M7G �'�i A11S tf a for aan � tioNd twrin cell y9 31221 ' 6, later than the.cMq!uwn lc h �",T� ��'•'� —io..„v Jody Colombia, at 793-1221, no later than A •fi�tlii2�P,.�, � ,'sl ► a, %missioner AO-16AQ7 Notary Public BRITNEY L THOM.PSON State of Alaska 2019 my commission Expires Feb 23, Singh, Angela K (DOA) From: Carlisle, Samantha J (DOA) Sent: Wednesday, October 07, 2015 2:02 PM To: Ballantine, Tab A (LAW); Bender, Makana K (DOA); Bettis, Patricia K (DOA); Bixby, Brian D (DOA); Brooks, Phoebe L (DOA); Carlisle, Samantha J (DOA); Colombie, Jody J (DOA); Cook, Guy D (DOA); Crisp, John H (DOA); Davies, Stephen F (DOA); Eaton, Loraine E (DOA); Foerster, Catherine P (DOA); Frystacky, Michal (DOA); Grimaldi, Louis R (DOA); Guhl, Meredith D (DOA); Herrera, Matthew F (DOA); Hill, Johnnie W (DOA); Jones, Jeffery B (DOA); Kair, Michael N (DOA); Loepp, Victoria T (DOA); Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Scheve, Charles M (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); Singh, Angela K (DOA); Wallace, Chris D (DOA); AKDCWellIntegrityCoordinator, Alex Demarban; Alexander Bridge; Allen Huckabay; Andrew Vandedack, Anna Raff; Barbara F Fullmer, bbritch; Becca Hume; bbohrer@ap.org; Bob Shavelson; Brian Havelock; Bruce Webb; Burdick, John D (DNR); Carrie Wong; Cliff Posey; Colleen Miller, Crandall, Krissell; D Lawrence; Dave Harbour, David Boelens; David Duffy, David House; David McCaleb; David Steingreaber; David Tetta; Davide Simeon; ddonkel@cfl.rr.com; Dean Gallegos; Delbridge, Rena E (LAS); DNROG Units (DNR sponsored); Donna Ambruz; Ed Jones; Elowe, Kristin; Evans, John R (LDZX); Frank Molli; Gary Oskolkosf, George Pollock; ghammons; Gordon Pospisil; Greg Duggin; Gregg Nady; gspfoff, Jacki Rose, Jdarlington Oarlington@gmail.com); Jeanne McPherren; Williams, Jennifer L (LAW); Jerry Hodgden; Jerry McCutcheon; Solnick, Jessica D (LAW); Jim Watt; Jim White; Joe Lastufka; Joe Nicks; John Adams; Easton, John R (DNR); Jon Goltz, Juanita Lovett; Judy Stanek; Houle, Julie (DNR); Julie Little; Kan Moriarty, Kazeem Adegbola; Keith Wiles; Kelly Sperback; Gregersen, Laura S (DNR); Leslie Smith; Lisa Parker, Louisiana Cutler, Luke Keller, Marc Kovak; Dalton, Mark (DOT sponsored); Mark Hanley (mark.hanley@anadarko.com); Mark Landt; Mark Wedman; Kremer, Marguerite C (DNR); Mary Cocklan-Vendl; Michael Calkins; Michael Duncan; Michael Moora; Mike Bill; mike@kbbi.org; Mikel Schultz, MJ Loveland; mkm7200; Morones, Mark P (DNR); Munisten, Islin W M (DNR); knelson@petroleumnews.com; Nichole Saunders; Nick W. Glover, Nikki Martin; NSK Problem Well Supv; Oliver Sternicki; Patty Alfaro; Paul Craig; Decker, Paul L (DNR); Paul Mazzolini; Pike, Kevin W (DNR); Randall Kanady; Randy L. Skillern; Renan Yanish; Robert Brelsford; Ryan Tunseth; Sara Leverette; Scott Griffith; Shannon Donnelly, Sharmaine Copeland; Sharon Yarawsky, Shellenbaum, Diane P (DNR); Smart Energy Universe, Smith, Kyle S (DNR); Sondra Stewman; Stephanie Klemmer; Moothart, Steve R (DNR); Suzanne Gibson; sheffield@aoga.org; Tania Ramos; Ted Kramer, Davidson, Temple (DNR); Terence Dalton; Teresa Imm; Terry Templeman; Thor Cutler, Tim Mayers; Todd Durkee; Tony Hopfinger, trmjrl; Tyler Senden; Vicki Irwin; Vinnie Catalano; Walter Featherly; Aaron Gluzman; Aaron Sorrell; Ajibola Adeyeye; Alan Dennis; Andrew Cater, Anne Hillman, Brian Gross; Bruce Williams, Bruno, Jeff J (DNR); Caroline Bajsarowicz; Casey Sullivan; Diane Richmond; Don Shaw; Donna Vukich; Eric Lidji; Erik Opstad; Gary Orr; Smith, Graham O (PCO); Greg Mattson; Dickenson, Hak K (DNR); Heusser, Heather A (DNR); Holly Pearen; Hyun, James J (DNR); Jason Bergerson; jilt.a.mcleod@conocophillips.com; Jim Magill; Joe Longo; John Martineck, Josh Kindred; Kenneth Luckey, King, Kathleen J (DNR); Laney Vazquez; Lois Epstein; Longan, Sara W (DNR); Marc Kuck, Marcia Hobson; Steele, Marie C (DNR); Matt Armstrong; Matt Gill; Franger, lames M (DNR); Morgan, Kirk A (DNR); Pat Galvin; Pete Dickinson; Peter Contreras; Richard Garrard; Robert Province; Ryan Daniel; Sandra Lemke; Sarah Baker, Peterson, Shaun (DNR); Pollard, Susan R (LAW); Talib Syed; Terence Dalton; Tina Grovier (tmgrovier@stoel.com); Todd, Richard J (LAW); Tostevin, Breck C (LAW); Wayne Wooster, William Hutto; William Van Dyke • Subject: Pubic Hearing Notice CO-15-010 (Prudhoe Bay Unit) Attachments: Notice of Public Hearing, CO-15-010.pdf Please see attached. Samantha. Carlisle Executive Secretary ZI . 1taska Oil ands jas Conservation Commission 333 lVest ; .`avenue -Ancdiorage, -IX g) 5o] (y907) 1 93-1223 (Ph011e) (907) 276-7542 (fax) 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 Samantha Carlisle at (907) 793-1223 or Samantha.Carlisle@alaska.Qov. • • Bernie Karl James Gibbs Jack Hakkila K&K Recycling Inc. P.O. Box 1597 P.O. Box 190083 P.O. Box 58055 Soldotna, AK 99669 Anchorage, AK 99519 Fairbanks, AK 99711 Gordon Severson Penny Vadla George Vaught, Jr. 3201 Westmar Cir. 399 W. Riverview Ave. P.O. Box 13557 Anchorage, AK 99508-4336 Soldotna, AK 99669-7714 Denver, CO 80201-3557 Diane Richmond Richard Wagner Darwin Waldsmith BP Exploration (Alaska), Inc. P.O. Box 60868 P.O. Box 39309 P.O. Box 196612 Fairbanks, AK 99706 Ninilchik, AK 99639 Anchorage, AK 99519-6612 CL'11-�S4� Angela K. Singh by RECEIVED BP Exploration (Alaska) Inc. 0 September 30, 2015�1"1kf,�s"` goo East Benson Boulevard V't.Jt `'.i PO Box 196612 Anchorage, AK 99519-6612 Cathy Foerster, Chair (907) 564-5111 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 RE: Request to Commingle Production from Lisburne Oil Pool and Prudhoe Oil Pool in Well K-322 Dear Ms. Foerster: BP Exploration (Alaska) Inc. (BPXA), Operator of the Lisburne Participating Area (LPA), requests authorization to commingle production from the Lisburne Oil Pool and Prudhoe Oil Pool in proposed well K-322 at K-Pad and Gathering Center 1. K-322 will be drilled from K-Pad, and it will target the Lisburne Wahoo formation. The planned bottomhole location of well K-322 is depicted in Exhibit A. Lisburne Oil Pool fluids will be . commingled with Prudhoe Oil Pool fluids in K-322's tubing. K-322 will use a sliding sleeve and swell packer completion to target produced fluids in the Lisburne Oil Pool. K-322 will also be perforated in the Prudhoe Oil Pool to allow Prudhoe gas to serve as in -situ artificial lift. A sliding sleeve with an interchangeable orifice will regulate a fixed amount of Prudhoe gas into the K-322 wellbore. The proposed completion for K-322 is shown in Exhibit B. In the event that in -situ gas lift does not work, the surface kit will be set up to provide gas lift to K-322 from source well K-03 (which is completed in the Prudhoe Oil Pool). According to the current drilling schedule, K-322 should be ready to commence production by mid-2017. For royalty and tax purposes, BPXA proposes that K-322's production be reported using -the same reporting method as co -mingled well K-317B (see CO 362A). Production from K-317B is reported as Lisburne Oil Pool production, and K-317B NGLs are reported as Prudhoe Oil Pool gas. K-31713's produced gas is injected into the Prudhoe Bay Reservoir or consumed in operations. BPXA staff are available should you have any questions or need any additional information. If you need any additional information, please contact Joleen Oshiro at 564-4606. Si cerely, Diane Richmond Attachment: Exhibit A - Map Exhibit B - K-322 Wellbore Schematic Cc: Mark Vandergon Caroline Bajsarowicz Joleen Oshiro Exhibit A: K-322 planned bottomhole location (and pressure contours) 0 0 Exhibit B: Proposed K-322 Wellbore Schematic 114L = CNV 5K L r!�FAD=_ W (in -situ gas) ACTUATOR = 0". ELIEV W, H-EV - 7 K60 F'E'.50:1, 7271 19,4124' 113-WW CSC_ BEW L-110 HTC_ 10 - 112415 di -IA SW awvc thee 19-W CSG,4 W,L-80 TOk 10 = 8,681" 88IS' I—JA Minimum ID 2 SL8 4.112" Siding Sleeves (Series 562 PDX, 13CII) at -9309' MD & '940V MD 40'- 5" x 4". 13CH, VT Blast Joints V 948W MD- W Ivishak Gas Per fw— V9459'- 9482'MO 4-112' TOG, 12.6#, 13CR-SO V AM TOP. 0 152 Of, ID 3 956' (NOTE- 4- t Q-, 13 * tubing botw eon the packers - see addiitkival Potc,) 7- LW 2W L-83 VAMICP I Z= bot. 1) =617M $Or HIS SWELL PACHERS J6- ID 10 9 a 4 3 2 1 9- LW 13 Still, 1 3CW&! 1) 50 bpf, = 3_92- �E:r I0LWi3,5#A3CR48WD62%1_4 _Iw" 150 W. D = 3.902' KSAFETY NOTES' WELL ANGLE s 70' 40 _' — IAAX -322 DOGUBk _'Q _. — CHROMF 100 A LNR — 133nr TAM FORT ��R -22M 4-,,112'HES X NF, ID = IMI G t4 AS LlFTWf4Y;ELSl4At2x 1-1)7 MMGVakes) X 7- 8M FLEX -LOCK HGK ID ME H 4, irr NQmc %AFF"m (3AUGF-, D. = LSEJ ,7* x 4-1120 HE$ TNT Pkr at -9269' MD 4.1 Z, 11U, VT 13CS tubing it -9269'- 9790' MD 7" x 4. 1;2" HES TNT Pkr at -9790' MD IM' H4-IrrHESXwID=381_3"_1 99W kjrXS'f3KRIV4aEZXFWLTPID-*_V 91i/1' H4-112'(HES Self -Aligning) HiLmpfrriwL9GGf� ------ J-Lr X raw RIx H5- x4-rrxD 4-112^ FRAC PORT qI F r-vr--q NO UPI IWATSZ. ACTIJkLSIZE OIC DATE tt 1 'DEH 1rrXI-112"XO,1D=2902' IW X 4- 1/2- XO, U - 2.982'