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Home My WebLink AboutO 130Other Order 130 Emergency Order — Review of well conditions and safety 1. November 1, 2017 Caelus response STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue Anchorage Alaska 99501 Re: Review of well conditions and safety. ) Docket Number: OTH-17-038 Other Order 130 October 30, 2017 CORRECTED EMERGENCY ORDER Review of a well failure and uncontrolled release of fluids at Prudhoe Bay Unit DS02-03B revealed the root cause of the incident to be a combination of the well construction geometry — outer casing shoe set in the permafrost — and thawing permafrost and subsidence. As a result, AOGCC is undertaking a review of all wells on the North Slope. No later than December 31, 2017, Caelus Natural Resources Alaska, LLC shall shut in all North Slope wells it operates which have similar construction geometry and provide to AOGCC a list of those wells. Failure to comply with this order will result in AOGCC taking action pursuant to AS 31.05.150. Done at Anchorage, Alaska and Dated October 30, 2017. kAX C Hollis S. French y P. Foerster Daniel T. Seamount, Jr, XZ Chair, Commissioner Commissioner Commissioner 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 From: Carlisle, Samantha J (DOA) Sent: Monday, October 30, 2017 3:32 PM To: 'AK, GWO Projects Well Integrity'; 'AKDCWelllntegrityCoordinator'; 'Alan Bailey';'Alex Demarban'; 'Alicia Showalter'; 'Allen Huckabay'; 'Andrew Vanderlack'; 'Ann Danielson'; 'Anna Raff';'Barbara F Fullmer'; 'bbritch'; 'Becky Bohrer';'Ben Boettger;'Bill Bredar'; 'Bob'; 'Brandon Viator'; 'Brian Havelock'; 'Bruce Webb'; 'Caleb Conrad'; 'Candi English'; 'Cocklan-Vendl, Mary E'; 'Cody Gauer'; 'Colleen Miller'; 'Connie Downing'; 'Crandall, Krissell'; 'D Lawrence'; 'Dale Hoffman'; 'Darci Horner'; 'Dave Harbour'; 'David Boelens'; 'David Duffy'; 'David House';'David McCaleb';'David McCraine';'ddonkel@cfl.rr.com'; Diemer, Kenneth 1 (DNR); 'DNROG Units'; 'Donna Ambruz'; 'Ed Jones'; 'Elizabeth Harball'; 'Elowe, Kristin'; 'Elwood Brehmer; 'Evan Osborne'; 'Evans, John R (LDZX)'; 'Garrett Brown';'George Pollock'; 'Gordon Pospisil'; Greeley, Destin M (DOR);'Gretchen Stoddard'; 'gspfoff'; 'Hunter Cox'; Hurst, Rona D (DNR); Hyun, James 1 (DNR); 'Jacki Rose'; 'Jason Brune'; 'Jdarlington Qarlington@gmail.com)'; 'Jeanne McPherren'; 'Jerry Hodgden'; 'Jill Simek'; 'Jim Watt'; 'Jim White'; 'Joe Lastufka'; 'Joe Nicks'; 'John Burdick'; 'John Easton'; 'John Larsen'; 'John Stuart'; 'Jon Goltz'; 'Josef Chmielowski'; 'Juanita Lovett'; 'Judy Stanek'; 'Kari Moriarty'; 'Kasper Kowalewski'; 'Kazeem Adegbola'; 'Keith Torrance'; 'Keith Wiles'; 'Kelly Sperback'; 'Kevin Frank'; Kruse, Rebecca D (DNR);'Kyla Choquette'; 'Laura Silliphant (laura.gregersen@alaska.gov)'; 'Leslie Smith'; 'Lori Nelson'; 'Luke Keller'; 'Marc Kovak'; 'Mark Dalton'; 'Mark Hanley (mark.hanley@anadarko.com)'; 'Mark Landt'; 'Mark Wedman'; 'Mealear Tauch'; 'Michael Bill'; 'Michael Calkins'; 'Michael Moora';'Mike Morgan';'MJ Loveland'; 'mkm7200'; 'Motteram, Luke A'; Mueller, Marta R (DNR); 'nelson'; 'Nichole Saunders'; 'Nick Ostrovsky'; 'NSK Problem Well Supv'; 'Patty Alfaro'; 'Paul Craig'; 'Paul Decker (paul.decker@alaska.gov)'; 'Paul Mazzolini'; Pike, Kevin W (DNR); 'Randall Kanady'; 'Renan Yanish'; 'Richard Cool'; 'Robert Brelsford'; 'Robert Warthen'; 'Sara Leverette'; 'Scott Griffith'; 'Shahla Farzan'; 'Shannon Donnelly'; 'Sharon Yarawsky'; Skutca, Joseph E (DNR); 'Smart Energy Universe'; Smith, Kyle S (DNR); 'Stephanie Klemmer'; 'Stephen Hennigan'; 'Sternicki, Oliver R'; 'Steve Moothart (steve.moothart@alaska.gov)'; 'Steve Quinn'; 'Suzanne Gibson'; 'Tamera Sheffield'; 'Tanisha Gleason'; 'Ted Kramer'; 'Teresa Imm'; 'Tim Jones'; 'Tim Mayers'; 'Todd Durkee'; 'Tom Maloney; 'trmjrl'; 'Tyler Senden'; Umekwe, Maduabuchi P (DNR); 'Vinnie Catalano'; 'Well Integrity'; 'Well Integrity'; 'Weston Nash'; 'Whitney Pettus'; 'Aaron Gluzman'; 'Aaron Sorrell'; 'Ajibola Adeyeye'; 'Alan Dennis'; 'Andy Bond'; 'Bajsarowicz, Caroline J; 'Bruce Williams'; Bruno, Jeff J (DNR); 'Casey Sullivan'; 'Corey Munk'; 'Don Shaw'; 'Eppie Hogan 'Eric Lidji'; 'Garrett Haag'; 'Graham Smith'; Heusser, Heather A (DNR); 'Holly Fair'; 'Jamie M. Long'; 'Jason Bergerson'; 'Jesse Chielowski'; 'Jim Magill'; 'Jim Shine'; 'Joe Longo'; 'John Martineck'; 'Josh Kindred'; 'Keith Lopez'; 'Laney Vazquez'; 'Lois Epstein'; Longan, Sara W (DNR); 'Marc Kuck'; 'Marcia Hobson'; 'Marie Steele'; 'Matt Armstrong'; 'Melonnie Amundson'; 'Mike Franger'; 'Morgan, Kirk A (DNR)'; 'Pascal Umekwe'; 'Pat Galvin'; 'Patricia Bettis'; 'Pete Dickinson'; 'Peter Contreras'; 'Rachel Davis'; 'Richard Garrard'; 'Richmond, Diane M'; 'Robert Province';'Ryan Daniel'; 'Sandra Lemke';'Susan Pollard'; 'Talib Syed'; 'Tina Grovier (tmgrovier@stoel.com)'; 'William Van Dyke'; 'Ballantine, Tab A (LAW) (tab.ballantine@alaska.gov)'; 'Bender, Makana K (DOA) (makana.bender@alaska.gov)'; 'Bixby, Brian D (DOA)'; 'Brooks, Phoebe L (DOA) (phoebe.brooks@alaska.gov)'; Carlisle, Samantha J (DOA); 'Colombie, Jody J (DOA) Qody.colombie@alaska.gov)'; 'Cook, Guy D (DOA)'; 'Davies, Stephen F (DOA) (steve.davies@alaska.gov)'; Earl, Adam G (DOA); 'Foerster, Catherine P (DOA) (cathy.foerster@alaska.gov)';'French, Hollis (DOA)';'Frystacky, Michal (michal.frystacky@alaska.gov)'; 'Guhl, Meredith (DOA sponsored) (meredith.guhl@alaska.gov)'; Herrera, Matthew F (DOA); 'Jones, Jeffery B (DOA) To: QeffJones@alaska.govy; Kair, Michael N (DOA); Laubenstein, Lou (DOA); 'Link, Liz M (DOA)'; Loepp, Victoria T (DOA); 'Mumm, Joseph (DOA sponsored) Qoseph.mumm@alaska.gov)'; 'Noble, Robert C (DOA) (bob.noble@alaska.gov)'; 'Paladijczuk, Tracie L (DOA) (tracie.paladijczuk@alaska.gov)'; 'Pasqual, Maria (DOA) (maria.pasqual@alaska.gov)'; 'Quick, Michael (DOA sponsored)'; 'Regg, James B (DOA) Qim.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)'; 'Wallace, Chris D (DOA) (chris.wallace@alaska.gov)' Subject: Other Order 130 corrected (Caelus) Attachments: other130 corrected.pdf Please replace order previously sent with this one. Thank you, Samantha Carlisle Executive Secretary III Alaska Oil and Gas Conservation Commission 333 West 711, Avenue Anchorage, AK 99501 (907) 793-1223 CONFIDENTIALITY NOTICF. This e-mail message, including any attachments, contains inf a ination front the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It map contain confidential and/or privileged information. The tin outhori7r d 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 Sam rnth a Gorli_dc aata=ka f±ov. Armstrong Energy, LLC Brooks Range Petroleum Caelus Natural Resources Alaska, 510 L St., Ste. 310 Corporation LLC Anchorage, AK 99501-1952 510 L. St., Ste. 601 3700 Centerpoint Dr., Ste. 500 Anchorage, AK 99501-1959 Anchorage, AK 99503-5818 ConocoPhillips Alaska, Inc. P.O. Box 100360 Anchorage, AK 99510-0360 Hilcorp Alaska, LLC 3800 Centerpoint Dr., Ste. 1400 Anchorage, AK 99503-5832 Eni US Operating Co. Inc. 3800 Centerpoint Dr., Ste. 300, Anchorage, AK 99503-5826 Savant Alaska, LLC 601 W. 5th Ave., Ste. 310 Anchorage, AK 99501-6301 ExxonMobil Oil Corporation P.O. Box 196601 Anchorage, AK 99519-6601 Bennie Karl K&K Recycling Inc. Gordon Severson Penny Vadla P.O. Box 58055 3201 Westmar Cir. 399 W. Riverview Ave. Fairbanks, AK 99711-0055 Anchorage, AK 99508-4336 Soldotna, AK 99669-7714 George Vaught, Jr. Darwin Waldsmith Richard Wagner P.O. Box 13557 P.O. Box 39309 P.O. Box gne Denver, CO 80201-3557 Ninilchik, AK 99639-0309 Fairbanks, AK 99706-0868 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue Anchorage Alaska 99501 Re: Review of well conditions and safety. ) Docket Number: OTH-17-038 Other Order 130 October 30, 2017 EMERGENCY ORDER Review of a well failure and uncontrolled release of fluids at Prudhoe Bay Unit DS02-03B revealed the root cause of the incident to be a combination of the well construction geometry — outer casing set in the permafrost — and thawing permafrost and subsidence. As a result, AOGCC is undertaking a review of all wells on the North Slope. No later than December 31, 2017, Caelus Natural Resources Alaska, LLC shall shut in all North Slope wells it operates which have similar construction geometry and provide to AOGCC a list of those wells. Failure to comply with this order will result in AOGCC taking action pursuant to AS 31.05.150. Done at Anchorage, Alaska and Dated October 30, 2017. SII Hollis S. French Cathy oerster Daniel T. 8eamount, Jr.Ji Chair, Commissioner Co issioner Commissioner 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 mns until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. Carlisle, Samantha J From: Carlisle, Samantha J (DOA) Sent: Monday, October 30, 2017 2:23 PM To: 'AK, GWO Projects Well Integrity'; 'AKDCWeIIIntegrityCoordinator'; 'Alan Bailey'; 'Alex Demarban'; 'Alicia Showalter'; 'Allen Huckabay; 'Andrew VanderJack'; 'Ann Danielson'; 'Anna Raff'; 'Barbara F Fullmer'; 'bbritch'; 'Becky Bohrer'; 'Ben Boettger'; 'Bill Bredar'; 'Bob'; 'Brandon Viator'; 'Brian Havelock'; 'Bruce Webb'; 'Caleb Conrad'; 'Candi English'; 'Cocklan-Vendl, Mary E'; 'Cody Gauer'; 'Colleen Miller'; 'Connie Downing'; 'Crandall, Krissell'; 'D Lawrence'; 'Dale Hoffman'; 'Darci Horner'; 'Dave Harbour'; 'David Boelens'; 'David Duffy'; 'David House'; 'David McCaleb'; 'David McCraine'; 'ddonkel@cfl.rr.com'; Diemer, Kenneth J (DNR); 'DNROG Units'; 'Donna Ambruz'; 'Ed Jones'; 'Elizabeth Harball'; 'Elowe, Kristin'; 'Elwood Brehmer'; 'Evan Osborne'; 'Evans, John R (LDZX)'; 'Garrett Brown'; 'George Pollock'; 'Gordon Pospisil'; Greeley, Destin M (DOR); 'Gretchen Stoddard'; 'gspfoff'; 'Hunter Cox'; Hurst, Rona D (DNR); Hyun, James J (DNR); 'Jacki Rose'; 'Jason Brune'; 'Jdarlington Oarlington@gmail.com)'; 'Jeanne McPherren'; 'Jerry Hodgden';'Jill Simek';'Jim Watt'; 'Jim White';'Joe Lastufka';'Joe Nicks'; 'John Burdick'; 'John Easton'; 'John Larsen'; 'John Stuart'; 'Jon Goltz'; 'Josef Chmielowski'; 'Juanita Lovett'; 'Judy Stanek'; 'Kari Moriarty'; 'Kasper Kowalewski'; 'Kazeem Adegbola'; 'Keith Torrance'; 'Keith Wiles'; 'Kelly Sperback'; 'Kevin Frank'; Kruse, Rebecca D (DNR); 'Kyla Choquette'; 'Laura Silliphant (laura.gregersen@alaska.gov)'; 'Leslie Smith'; 'Lori Nelson'; 'Luke Keller'; 'Marc Kovak'; 'Mark Dalton'; 'Mark Hanley (mark.hanley@anadarko.com)'; 'Mark Landt'; 'Mark Wedman'; 'Mealear Tauch'; 'Michael Bill'; 'Michael Calkins'; 'Michael Moora';'Mike Morgan';'MJ Loveland'; 'mkm7200'; 'Motteram, Luke A'; Mueller, Marta R (DNR); 'nelson'; 'Nichole Saunders'; 'Nick Ostrovsky'; 'NSK Problem Well Supv'; 'Patty Alfaro'; 'Paul Craig'; 'Paul Decker (paul.decker@alaska.gov)'; 'Paul Mazzolini'; Pike, Kevin W (DNR); 'Randall Kanady'; 'Renan Yanish'; 'Richard Cool'; 'Robert Brelsford'; 'Robert Warthen'; 'Sara Leverette'; 'Scott Griffith'; 'Shahla Farzan'; 'Shannon Donnelly'; 'Sharon Yarawsky'; Skutca, Joseph E (DNR); 'Smart Energy Universe'; Smith, Kyle S (DNR); 'Stephanie Klemmer'; 'Stephen Hennigan'; 'Sternicki, Oliver R'; 'Steve Moothart (steve.moothart@alaska.gov)'; 'Steve Quinn'; 'Suzanne Gibson'; 'Tamera Sheffield'; 'Tanisha Gleason'; 'Ted Kramer'; 'Teresa Imm'; 'Tim Jones'; 'Tim Mayers'; 'Todd Durkee'; 'Tom Maloney'; 'trmjrl'; 'Tyler Senden'; Umekwe, Maduabuchi P (DNR); 'Vinnie Catalano'; 'Well Integrity'; 'Well Integrity'; 'Weston Nash'; 'Whitney Pettus'; 'Aaron Gluzman'; 'Aaron Sorrell'; 'Ajibola Adeyeye'; 'Alan Dennis'; 'Andy Bond'; 'Bajsarowicz, Caroline Y; 'Bruce Williams'; Bruno, Jeff J (DNR); 'Casey Sullivan'; 'Corey Munk'; 'Don Shaw'; 'Epple Hogan 'Eric Lidji'; 'Garrett Haag'; 'Graham Smith'; Heusser, Heather A (DNR); 'Holly Fair'; 'Jamie M. Long'; 'Jason Bergerson'; 'Jesse Chielowski'; 'Jim Magill'; 'Jim Shine'; 'Joe Longo'; 'John Martineck'; 'Josh Kindred'; 'Keith Lopez'; 'Laney Vazquez'; 'Lois Epstein'; Longan, Sara W (DNR); 'Marc Kuck'; 'Marcia Hobson'; 'Marie Steele'; 'Matt Armstrong'; 'Melonnie Amundson'; 'Mike Franger'; 'Morgan, Kirk A (DNR)'; 'Pascal Umekwe'; 'Pat Galvin'; 'Patricia Bettis'; 'Pete Dickinson'; 'Peter Contreras'; 'Rachel Davis'; 'Richard Garrard'; 'Richmond, Diane M'; 'Robert Province'; 'Ryan Daniel'; 'Sandra Lemke'; 'Susan Pollard'; 'Talib Syed'; 'Tina Grovier (tmgrovier@stoel.com)'; 'William Van Dyke'; 'Ballantine, Tab A (LAW) (tab.ballantine@alaska.gov)'; 'Bender, Makana K (DOA) (makana.bender@alaska.gov)'; 'Bixby, Brian D (DOA)'; 'Brooks, Phoebe L (DOA) (phoebe.brooks@alaska.gov)'; Carlisle, Samantha J (DOA); 'Colombie, Jody J (DOA) Qody.colombie@alaska.gov)'; 'Cook, Guy D (DOA)'; 'Davies, Stephen F (DOA) (steve.davies@alaska.gov)'; Earl, Adam G (DOA); 'Foerster, Catherine P (DOA) (cathy.foerster@alaska.gov)'; 'French, Hollis (DOA)'; 'Frystacky, Michal (michal.frystacky@alaska.gov)'; 'Guhl, Meredith (DOA sponsored) (meredith.guhl@alaska.gov)'; Herrera, Matthew F (DOA); 'Jones, Jeffery B (DOA) ( f To: Qerrjones@alaska.gov)'; Kair, Michael N (DOA); Laubenstein, Lou (DOA); 'Link, Liz M (DOA)'; Loepp, Victoria T (DOA); 'Mumm, Joseph (DOA sponsored) (oseph.mumm@alaska.gov)'; 'Noble, Robert C (DOA) (bob.noble@alaska.gov)'; 'Paladijczuk, Tracie L (DOA) (tracie.paladijczuk@alaska.gov)'; 'Pasqua[, Maria (DOA) (maria.pasqual@alaska.gov)'; 'Quick, Michael (DOA sponsored)'; 'Regg, James B (DOA) Qim.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)'; 'Wallace, Chris D (DOA) (chris.wallace@alaska.gov)' Subject: Other Order 130 (Caelus) Attachments: other130.pdf Please see attached. Samantha Carlisle Executive Secretary III Alaska Oil and Gas Conservation Commission 333 West 7ua Avenue Anchorage, AK 99501 (907) 793-1223 CONFIDENTIALITY NOTICE This c -mail message, including any attachments, Contains information from the Alaska Oil and Gas Conservation Commission (AOC CC), State of Alaska and is for the soh use of the intended recipient(s). It may contain contidentia l and/or privileged information. The unauthorized review, , use or disclosure of such information nnav violate state or tederat 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 Sainantha Carlisle at (9(177) ,'93- 1223 or Samantha CarlisleC!aliskii ov. 1 CE CAELUS r, Alaska November 1, 2017 Mr. Hollis French, Chair Alaska Oil & Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, AK 99501-3539 Docket No: OTH-17-038 Other Order 130 Corrected Emergency Order Dear Commissioner French: Dale Hoffman, CPL Manager, Land and External Affairs dale. hoffman@caelusenergy.com 907-343-2108 Direct 907-830-2571 Cell Pursuant to your request contained in the Corrected Emergency Order of October 30, 2017, Caelus Energy Alaska, LLC has reviewed its wells and finds that we have no wells of similar construction geometry to the Prudhoe Bay Unit DS02-03B well. We assume no further action is required in this matter. Please advise if you have questions. Sincerely, Dale Hoffman 3700 Centerpoint Dr., Suite 500 • Anchorage, AK 99503 • Main Line 907-277-2700 • Fax 907-343-2190 • www.caelusenergy.com