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Home My WebLink AboutO 134Other Order 134 Emergency Order — Review of well conditions and safety 1. November 30, 2017 Hileorp 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-17-042 Other Order 134 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, Hilcorp 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. Hollis S. French Chair, Commissioner Cath P. Foerster Commissioner AND APPEAL DanKSeamount, Jr. 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 AGGCC 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: Monday, October 30, 2017 3:32 PM To: 'AK, GWO Projects Well Integrity'; 'AKDCWellIntegrityCoordinator'; '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 (arlington@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'; '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) oody.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: deffjones@alaska.gov)'; Kair, Michael N (DOA); Laubenstein, Lou (DOA); 'Link, Liz M (DOA)'; Loepp, Victoria T (DOA); 'Mumm, Joseph (DOA sponsored) (joseph.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 134 corrected (Hilcorp) Attachments: other134 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) 793-1.223 CONFIDE MALITY NOTIC13: This e-mail m ssage, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), Slate of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged infomtation. The unaulhoriz.e.d revicne, use or disclosure of stich information may violate state or federal lana. If you are an unintended recipient of this e-mail, please delete it, Without hist saving or forivarding it, and, so that the AOGCC is aware of the mistake in sendingit to you, contact Samantha Carlisle at (907) 793-M3 or Samantha.Carllslecu)slaska.uov. Armstrong Energy, LLC 510 L St., Ste. 310 Anchorage, AK 99501-1952 ConocoPhillips Alaska, Inc. P.O. Box 100360 Anchorage, AK 99510-0360 Hilcorp Alaska, LLC 3800 Centerpoint Dr., Ste. 1400 Anchorage, AK 99503-5832 Brooks Range Petroleum Corporation 510 L. St., Ste. 601 Anchorage, AK 99501-1959 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 Caelus Natural Resources Alaska, LLC 3700 Centerpoint Dr., Ste. 500 Anchorage, AK 99503-5818 ExxonMobil Oil Corporation P.O. Box 196601 Anchorage, AK 99519-6601 Bernie 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 60868 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-17-042 Other Order 134 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, Hilcorp 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. � Hollis S. French Chair, Commissioner Cat P. oerster Commissioner Commissioner I 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: 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 J; '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) oody.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) I To: Qeft Jones@alaska.gov)'; 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 134 (Hilcorp) Attachments: other134.pdf Please see attached. Samantha Carlisle Executive Secretary III Alaska Oil and Gas Conservation Commission 333 West 70, Avenue Anchorage, AK 99501 (907) 793-1223 CONFIDENTIALITY NOTICF• This e-mail message, including any attachments, contains infomration from the Alaska Oil. and Gas Conserva ti( 11 Commission (AOGCC), State of Alaska and is for the sole use of the intended recifeient(s). It may conladn confidential and/or privileged information. The unauthorized review, use or drselosurc of such information may violate stat< or tederal 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 (905 793-1213 or Sanraniha.Carlislc@.alatika 'o 1 Hilcorp Alaska, LLC November 28, 2017 Hollis S. French, Chair Alaska Oil and Gas Conservation Commission 333 West 7`" Avenue, Suite 100 Anchorage, Alaska 99501 Re: Other Order -134 (Docket OTH-17-042) Dear Commissioner French, John Barnes Asset Team Leader Post Office Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive Suite 1400 Anchorage, AK 99503 Phone: 907/777-8350 Fax: 907/777-8351 jbarnes@hilcorp.com RECEIVE® NOV 3 0 2011 AOGCC Hilcorp Alaska, LLC (HAK) has conducted a review of well construction for all HAK operated North Slope wells in response to Other Order -134 (00-134). Wells were reviewed to identify any similarities in well construction geometry to Prudhoe Bay Unit DS02-03B including whether the outer casing shoe was set in the permafrost per the 00-134 language. No wells were found with the same well construction geometry as DS02-03B. Based on the DS02-03B wellfile, the well has three unusual construction elements that could contribute to rapid surface casing subsidence/movement: 1) The surface casing shoe is completed above the base of permafrost. 2) The surface casing is not cemented to surface. 3) Slip joints were installed in the surface casing above the top of cement. In contrast, all HAK North Slope wells were confirmed to have a surface casing shoe set below the base of permafrost. All wells were constructed with a fully cemented surface casing. No wells were found with slip joints in the surface casing. While all North Slope wells were found to be completed with surface casing set below permafrost, five wells were identified with an additional outer casing string set exterior to the surface casing but interior to the conductor. Additional review of these wells was conducted to ensure the extra casing would not contribute to an event similar to DS02-03B. Schematics are attached for reference. Endicott Wells 2-02 (PTD 1860630),2-04 (PTD 1860820) & 3-47 (PTD 1860640). Three Endicott wells were found to be completed with an additional 20" conductor string set to —380' MD interior to a 30" conductor driven to —120' MD. All three wells are also completed with a fully cemented 13-3/8" surface casing set below permafrost at --2450' MD. Further examination of each well showed the 13-3/8"casings to be both the outermost pressure containing casing and Re: Other Order 134 Page 2 of 2 the starting head/support for the wellhead. The additional 20" string is effectively a 2nd conductor with no additional structural or pressure containing function. Milne Point Wells MPS-11(PTD 2021130) and MPS-31(PTD 2020140). Two Milne Point wells were found to be completed with a 9-5/8" casing string set to —130' MD interior to the 20" conductor string set at —110' MD. Both wells are considered single casing "monobore" water injectors with a fully cemented 7" casing completed below permafrost to at least 4200' TVD. The cemented 9-5/8" string was installed during surface casing repairs of the 7" casing. Following the repairs, a starting head was mounted on the 9-5/8" casing. The 9-5/8" casings may contain a small amount of thermally induced pressure from the cemented annulus however the 9- 5/8" casing is not a barrier to the wellbore. Similarly, with fully cemented 7" and 9-5/8" casings, the 7" casing remains the well's structural anchor completed below permafrost. All five wells completed with additional outer casings were confirmed to have a fully cemented surface casing completed below the base of permafrost. The fully cemented surface casing continues to anchor the well; preventing the issues observed on DS02-03B. HAK's review of North Slope well construction indicates there are no wells with similar construction geometry to DS2-03B and that no additional actions need to be taken. If you have any additional questions, please contact Wyatt Rivard at 777-8547 or by email at wrivard@hilcorp.com. Sincerely, HILCORP ALASKA, LLC John Barnes Asset Team Leader Cc: Guy Schwartz Attachments: 1) END 2-02, 2-04 & 3-47 Wellbore Schematics 2) MPU 5-11 & 5-31 Wellbore Schematics TREE= CNV CSG, 26#, IJ4S, ID = CSG 72# L-80 BTC, ID = 12.347" 1— EbV V Minimum ID = 3.725" @ 6919' 4112" XN NIPPLE r I Z IPC TBG, 12.6#, L-80 NW5. 0152 bpf, ID = 3.958" 2" IPC TBG, 12.6#, L-80 52 bpf, ID = 3958" END2-02 958" CSG, 47#, NT80S NSCC, ID = SAI NOTES: H2S READINGS AV EPAGE 230 -260 PPM UN AIL & GAS INJECTORS. 1609' 12" 0 nS OTIS X NIP, ID = BKR LOCATOR W 122' SEAL ASSY, ID = 4.00" 9-518" X 4-112'BKR MOD D PKR W 20' SEAL BORE EXT, ID = 4.75" 6836' 4112" OTIS X NIP, ID = 3.813" aa7a' 1 412"OTIS XN NIP, I0=3.72' 1 7609' 1 10 = 3.958" to ENDICOTT LINT WELL: 2-021P-18 PERMIT No'.1860630 API No: 50-029-21568-00 SEC 36, T1 2N, R1 6E, 1835' FNL & 2168' FEL BP EXPloration (Alaska) n¢- CMV WELLHEAD= FAC Opn/Sqz DATE ACTUATOR= _ BAKERC 30" Conductor S 10107/95 KB. ELEV = 54S 1to 111' S 10ro7/9s BF. ELEV = 4 10612 - 10634 S 10/07/95 KOP= - 4 ' CSG. 94#, 379' Max Angle = 26• @ 748T 55 BUTT, rK S 10/07/95 Wtum MD = 10539'= 19.124" S 10/07/95 Datum TVD = 10000 SS 10665 - 10700 S 10/07/95 13-3/8" CSG, 72#, L-80 BTC, ID = 12.347" 2413' 4 10665 - 10700 S 10/07/95 2-1/8" Minimum ID = 3.725@'@ 9799- S 10/07/95 4-1/2" XN NIPPLE 10680.10700 S 10/07/95 2-1/8" 9-5/8" CSG, 47#, NT805 XO TO NT95HS 526V TOP OF 7" LNR a-12" TBG, 12.6#, 13CR-80 NSCT, .07 52 bpf, ID = 3.958" CSG, 47#, NT95HS NSCC. ID = 8.681" PERFORATION SUMMARY REF LOG: ATLAS CLJSFL on 0529/86 & WA GR/CCL on 07/09/94 ANGLEAT TOPPERF: 22° @ 10710' Note: Refer to Production DB for historical pert data SIZE SPF INTERVAL Opn/Sqz DATE 2-1/8" 4 10536-10 582 S 10107/95 2-1/8" 4 10578 - 10584 S 10ro7/9s 2-1/8" 4 10612 - 10634 S 10/07/95 3-3/8" 4 10615 - 10645 S 10107/95 2-1/8" 4 10638-1 0680 S 10/07/95 2-1/8" 4 10655 - 10685 S 10/07/95 3-3/8" 4 10665 - 10700 S 10/07/95 3-3/8" 4 10665 - 10700 S 10/07/95 2-1/8" 4 10669 -10684 S 10/07/95 2-118" 4 10680.10700 S 10/07/95 2-1/8" 4 10685-10695 S 10/07195 2-7/8" 6 10710 - 10730 O 08131/08 /" LNR, 29111, L-80 BTRS, .0371 bpf, ID = 6.184" 1021091951 D15 IRWO PPh,JNNA1LT8GGAS1I ECDTIORSAWEELLLREOU/RESA END2-O4 SSS V. ••'4-112" [ETBG—* © 1563' 4-12" OTIS X NIP, ID = 3.813" (.A C I IFT nnn A�rob e ST MD ND DEV VLV LATCH PORT DATE 7 3502 3602 2 DOM RM 16 05/12/09 6 5352 5327 23 DMY RM 0 04/18/09 5 6546 6414 24 SO RM 20 08/05/11 4 7275 7077 25 DMY RM 0 04/19/09 3 8052 7781 26 DMY RM 0 0724/86 2 8829 8481 25 DMY RM 0 0724/86 1 9567 9154 22 DMY RM 0 0724186 9674' 41 /2" OTIS X NIP, ID = 3.813" 1 9685' 9-5/8" X 4-1 TITIW HBBP PKR, ID = 4.00" � yrub- ��412"OTISX NIP, ID=3813" 9799' 4-1/2" OTIS XN NIP ID = 3 725" 9811' 9796'ELMDLOGGEDONO8/31/08 4-12" WLEG, ID = 3.958 0556' H7" MARKER )FISH- PDS CALIPER CENTRALIZER ARM (8/4/111) FISH - TOP OF 26.5' UNSHOT PERF GUN (723/93) -- -- is AV/TLH GLV C/5/12) JWSV GLV O ENDICOTT UNIT WELL: 2-G4/M19 PERMETNo. '1860820 API No 50-029-21585-00 SEC 36, T12N, R16E, 1844'FNL DJ/JMD CONVEAS (0127/12) W1JMO ADDED NOTE W SS/ PJC FISW G/11) & 2174' FEL BP Exploration (Alaska) ACTUATOR- - -- BAKE2C is E.EV = 55.4' / BF E -LV = 16.7' KOP =30" 161' Max Angle - 23 @ 9732' 1 STRIX:i Datum MD = - 10209'. 20' GOND 379' Datum ND= 101X10 SS 13-316' CSG, 72#, L-80 BIRS, D = 12.347' 2496' Minimum ID = 2.750"@ 1515' 3-112" OTIS SVLN 9-58- CSG, 47#, NT805 XO TO NT95HS --F 460 3-1r-'- IBG, 9.2#, 13CR-80 NSCT, .0087 bpf, D = 2.992" 3-12- TBG, 9.2#, 13CR-80 NSCT, .0087 bpf, D = 2.997 CSG, 47#, NT95HS NS )C. ID = 8.681' PERFORATION SUMMARY REF LOG: DLL -GR on 0524/86 ANGLEAT TOP PE RF: 22'@ 10190' Note: Refer to Reduction DB for historical pert data SIZE SPF Rfg-ZVAL OpNSgz DATE 7 4 10142 - 10172 O 07106/99 2-118" 4 10172-10177 S 08131/99 2-118' 4 10190- 10206 O 03/04/94 2-118" 4 10270-10278 O 03104194 2-118' 4 10290- 10302 O 03/04194 2-1/8' 4 10310-10322 O 03/04/94 2-118' 4 10324 - 10338 O 03/04/94 2-118' 4 10356 - 10370 O 03/04/94 2-1/2" 4 10430-10450 O 08131/96 7 4 10450m 10474 O 07/06/99 2-12" 4 10518-10538 O 06!03!95 29#, L-80 BTRS, .0371 bpf, D = 6.184- I 1141W END3-47 SA Y NOTES: H2S READINGS AV ER4GE 230 - 260 PR.. SNA/L 8 GAS INJECTORS. WELL REQUIRES SSSV WHEN ON AIL —3-112" CHROM E TBG"' 13- 117 FES XDB SSSV NP, D= 2.750. 1 GAS M MtANf1RH S ST MD ND DEV VLV LATCH PORT I DOTE 02/01/94 3556 3554 3 OW RK 0 0820196 6 5553 5550 0 DMY RK 0 08/20/96 5 7064 7061 2 OW RK 0 02/13/95 4 7772 7768 8 DMY RK 0 02/18/94 3 8380 8359 20 DN0' RK 0 02/18/94 2 8901 8842 22 OM1' RK 0 02118194 1 9541 194381 21 1 DMI I RK 0 02/18194 9570' - JIIE sVJS x NP, D = z.750- 9573' BKR GBH -22 LOCATOR w 118' SEAL ASSY AND MULE SHOE 9573' H9-5/8" X 4-314" BKR DB PKR w I LOWffi SEAL BORE ASSY, D= 300- 9592' f-{ 13-1/2- SWS r M1LLouT EXT, D = 6.00- 9598' 7- X 3-12' XO, D = 2.972- 9651' 3112- SVVS X NP. D = 2.750- 50' 1 9755' 1 I -1128T I 13-1/2-SWS X NP, D=2.750- I DATE REV BY CDK#vFw S DATE REV BY COMMENTS 09/01193--W—[)M CTU SQ ZE 08115111 DIN/JMD ADD® H2S SAFETY NOTE 02/01/94 MDM RWO 0&091141 CIPY PJC SSSV UPDATE(1/27114) 0001195 TLR RB43tF 07!08/98 OBRADMWS 06/16/11 AW/JMD CONVERT TOCAN✓AS 06117/11 KF/JMD PEiFODRRTS, UNS 2.99" ELEMENTS FROM E'DICOTT UNIT WELL 3-47/Q-35 PE8v1T No: 1860640 AR No: 50-029-21569-00 T11 R R1 7E 2499' FNL 8 621' FE. 8P Exploration (Alaska) MI Nf Original KB Elev.: 66.617 TO= 5,939 (MD) / TO=4,486'(TVD) PBTD = 5,843' (MD) / PBTD=4,401'(ND) SCHEMATIC TREE & WELLHEAD Milne Point Unit Well: MP S-11 Last Completed: 4/27/2008 PTD: 202-113 Tree 3-1/8" SM Wellhead Gen SA USH 9-5/8" x 11", 11" x 3-1/8" SM Adapter and 3" CIW-H BPV Profile w/TC-II T&B Thread OPEN HOLE / CEMENT DETAIL 20" 260 sx Arctic Set in a 42" Hole 9-5/8" ???? sx in a 12-1/4" Hole 7" 1,322 sx PF'C, 376 sx Class'G' Class "G" in a 9-7/8" Hole CASING DETAIL Size Type WIe/Conn ID Top Btm BPF 20" Conductor 215 / A-53 / N/A N/A Surface 112' N/A 9-5/8" Production 47/L-80/BTC 8.681" Surface 138' 0.0732 7" Liner 26/L-80/BTRC 6.184" Surface 5,928' 0.0383 TUBING DETAIL 3-1/2" 1Tubing 9.3/L-80/TC-II PxB 2.992" Surface 5,620' 0.0087 DETAIL Max Angle is 56 deg. @ 3,758' JEWELRY DETAIL No Depth ID Item 1 1 2,399' 1 2.813 1 3.5" HES X Nipple Size GLM DETAIL: 3.5" x 1.5" MMG 2 5,176' 2.920 STA 6:'W' w/ RD Dummy & RK Latch 3 5,274 2.813 3.5" HES X Nipple 4 5,290' 2.880 Baker 7" x 3.5" Premier Packer 5 5,317' 2,920 STA 5:'410 SS' w/ RD Dum & RK Latch Stuck Prong see 8-15-17 WSR 6 5,375' 2.920 STA 4:'W' w/ RD Dummy & RK Latch 7 5,436' 2.880 Baker 7" x 3.5" Premier Packer 8 5,463' 2.920 STA R3 RK -1.5" RWF-B (400 bwpd) 8-15-17 9 5,511' 2.920 STA 2:'W w/ RD Dummy & RK Latch 10 5,567' 2.880 Baker 7" x 3.5" Premier Packer 11 5,584' 2.920 STA 1: RK -1.5" P-15 X)R WFV (400 bwpd)8- 15-17 12 5,613' 2.750 XN Nipple 2.75" SET PXN PRONG (1-3/4" FN, DAL = 96") IN PXN PLUG BODY 13 5,619' 2.992 3-1/2" WILES Bottom @ 5,620' PERFORATION DETAIL GENERAL WELL INFO API: 50-029-23092-00-00 Drilled & Cased by Doyon 14 - 6/29/2002 Completed by 4ES - 8/31/2002 R WO / Perf Add by Doyon 14 - 5/15/2006 RWO & Recomplete as 3-1/2" by Doyon 14 Created By: BK 8/15/2017 (MD) Top (TVD) Btm (TVD) FT Date s Size ,405' 4,012' 4,028' 20 5/13/2006 3-3/8",502' :NB 4,105' Walv4A,11�9o` 4,106' 2 8/28/2002 ed 3-3/8",540' 4,129' 4,138' 15 5/13/2006 110/9/2009 3-3/8",550' 4,134' 4,147' 10 8/29/2002 3-3/8",560' 4,147' 4,155' 10 5/13/2006 3-3/8",615' 4,190' 4,203' iS 8/29/2002 3-3/8" NB Sand PSI= 2,057 on 8/4/2012 // OA Sand= 1,380 on 5/24/2009 // OB Sand= 972 GENERAL WELL INFO API: 50-029-23092-00-00 Drilled & Cased by Doyon 14 - 6/29/2002 Completed by 4ES - 8/31/2002 R WO / Perf Add by Doyon 14 - 5/15/2006 RWO & Recomplete as 3-1/2" by Doyon 14 Created By: BK 8/15/2017 ff Ailwrp Alaska, LLC Orig KB Elev.: 73.54' / Orig GL Elev.: 39.0( TD= 8,143 (MD) / TD=4,287(JVD) PBTD = 8,044' (MD) / PBTD=4,211'(TVD) SCHEMATIC TREE & WELLHEAD Milne Point Unit Well: MP S-31 Last Completed: 5/15/2008 PTD: 202-014 Tree 4-1/16"- 5M Wellhead FMC 11" Gen 5 casing hanger. TBG Hanger: 4-1/2" TC -II threads on top W/ 4" CIW'H' BPV Profile OPEN HOLE/ CEMENT DETAIL 20" 260 sx Arctic Set (Approx.) in a 42" Hole 9-5/8" 62 6615 10.7 ppg Cenn rete in 7" x 9-5/8" annulus 7" 1,250 sx Class'G' in a 9-7/8" CASING DETAIL Size Type Wt/Grade/Conn ID Top Btm BPF 20" Conductor 215/A-53/N/A N/A Surface 112' N/A 9-5/8" Intermediate 47/L-80/BTC 8.681" Surface 135' 0.0732 7" Production 26/L-80/BTC 1 6.276" 1 Surface 1 8,133' 1 0.0383 TUBING DETAIL 3-1/2" 1Tubing 9.2/L-80/TC-II 2.992" Surface 7,931' 0.0152 WELL INCLINATION DETAIL KOP @ 571' to 941' Max Hole Angle= 77.8 deg. @ 4,039' Hole Angle thru Perfs= 40 deg. JEWELRY DETAII PERFORATION DETAII Sand Top (MD) Btm (MD) -7,68 Top (TVD) Btm (TVD) FT Date Status Size NB 7,679 STAB:JUDE 3,843' 3,844' 2 7/22/2003 Open 2-1/2" OA 7,846' 7,876' 4,311' 4,331' 30 8/13/2002 Open - ID= 2.88 8 7,816' SiA 3: oa MMG-W RK Latch w/DGLV 9 7,844' STA 2: Camra MMG-W P-15 19/64" 500 bwpd & RK Latch (Set 11/21/13) 10 7,878' Baker 7" x 3.5" Premier Packer (Assembly A) - ID= 2.88 11 7,894' STA 1: Camra MMG-W P-15 19/64" 500 bwpd & RK Latch (Set 8/07/15) 12 7,923' 3.5"HES'XN'Nipple w/PXN (Set 5/23/08)—Min ID=2.75 13 7,929' WLEG-Bottom@7,931' PERFORATION DETAII Sand Top (MD) Btm (MD) -7,68 Top (TVD) Btm (TVD) FT Date Status Size NB 7,679 1' 3,843' 3,844' 2 7/22/2003 Open 2-1/2" OA 7,846' 7,876' 4,311' 4,331' 30 8/13/2002 Open 2-1/2" OB 7,900' 7,920' 4,364' 4,384' 20 8/13/2002 Open 2-1/2" GENERAL WELL INFO API: 50-029-23066-00-00 Drilled by Nabors 27E - 2/19/2002 Initial Completion by Doyon 141- 8/14/2002 Add NB Sand Perf - 7/22/2003 Surface Casing Repair & Completion by Doyon 14 5/15/2008 Revised By: TDF 10/4/2017