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Home My WebLink AboutAIO 037 AArea Injection Order 37A 1. July 24, 2020 ON ITS OWN MOTION the Alaska Oil and Gas Conservation Commission proposes contraction of the Affected Area of Area Injection Order No. 37, within the Oooguruk Field, Oooguruk Unit, East Harrison Bay, Beaufort Sea, Alaska Pages 10-13 Held Confidential 2. August 4, 2020 Notice of hearing, affidavit of publication, email distribution, mailings ORDERS STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue Anchorage Alaska 99501 Re: ON ITS OWN MOTION the Alaska Oil and ) Docket Number: AIO 20-16 Gas Conservation Commission proposes ) Area Injection Order No. 37A contraction of the Affected Area of Area ) Injection Order No. 37, within the Oooguruk ) Oooguruk Field Field, Oooguruk Unit, East Harrison Bay, ) Oooguruk Unit Beaufort Sea, Alaska ) Oooguruk-Torok Oil Pool January 21, 2021 IT APPEARING THAT: By application Dated July 24, 2020, ConocoPhillips Alaska, Inc. (CPAI), as operator of the Kuparuk River Unit (KRU) and on behalf of the Working Interest Owners (WIOs), requested Area Injection Order No 39 (AIO 39) be amended to expand the areal extent of the Affected Area of the order. The proposed expansion of AIO 39 would overlap with the defined Affected Area of AIO 37. Therefore, on its own motion the Alaska Oil and Gas Conservation Commission (AOGCC) proposes to contract the Affected Area of AIO 37 to exclude the acreage proposed to be added to AIO 39. This contracted Affected Area will conform to the acreage operated by Eni US Operating Company Inc. (Eni). Pursuant to 20 AAC 25.540, the Alaska Oil and Gas Conservation Commission (AOGCC) tentatively scheduled a public hearing for September 15, 2020. On August 4, 2020, the AOGCC published notice of 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, mailed printed copies of the notice to all persons on the AOGCC's mailing distribution list, and published the notice in the Anchorage Daily News. No comments on the application were received. CPAI's application and the public domain contain sufficient information to make a decision without the need to hold the hearing, so the hearing was cancelled on September 1, 2020. FINDINGS: Pool Definition: Conservation Order No. 645A defines the Oooguruk-Torok Oil Pool (O -TOP) and establishes pool rules that govern development operations and production. Order History: AIO 37, which established injection rules for Pioneer Natural Resources Alaska, Inc.'s (Pioneer) O -TOP, was issued on October 8, 2012. Operatorship History of O -TOP: The 0 -TOP was initially established by Pioneer, operator for the Oooguruk Unit (OU) and additional acreage within the O -TOP that lies outside of the OU. Subsequently, Caelus Energy, LLC (Caelus) acquired Pioneer's assets on the North Slope and became operator of the OU and the O -TOP. In 2019, Caelus sold its interests in the OU and 0 - TOP to CPAI and Eni US Operating Company Inc. (Eni). CPAI, operator of the KRU, purchased the portions of Caelus' Oooguruk holdings to the south, and Eni purchased the northern portions. Area Injection Order 37A January 21, 2021 Page 2 of 5 4. Contraction of the OU: On June 17, 2019, the Department of Natural Resources (DNR) approved Caelus' request to contract the OU to exclude the leases in the southern portion of the unit. And on June 20, 2019, the DNR approved Eni as the new operator of the OU. Need for Contraction of the Affected Area of AIO 37: 20 AAC 25.460(a)(3) requires that an area injection order be limited to a single operator. Since the portions of the existing Affected Area of AIO 37 are no longer operated by Eni it is necessary to contract A10 37 to include only acreage operated by Eni. CONCLUSION: To comply with 20 AAC 25.460(a)(3), it is necessary to contract the Affected Area of AIO 37 to Eni- operated acreage. NOW THEREFORE IT IS ORDERED: AIO 37 is superseded by this order. The record, findings, and conclusions for AIO 37 are incorporated by reference into this order. Underground injection of fluids for pressure maintenance and enhanced oil recovery is authorized in the following area, subject to the following rules and 20 AAC 25, to the extent not superseded by these rules. Affected Area: Umiat Meridian (Revised This Order) Township, Range Description T13N, R07E Section 3: SW 1/4 SW '/4 Section 4: SE'/4 SE'/4, W'/2 SE'/4, SW'/4, SE'/4NW'/4, W'h NW 1/4 Section 5: E''/Z E''/i Section 8: E''/2 E'/2 Section 9: All Section 10: SW'/4NE'/4, SE'/4 SE'/4, W %z SE'/4, W'/z Section 11: SW 1/4 SW 1/4 Section 14: SE'/4 SE'/4, W'h SE'/4, W'/z Section 15: All Section 16: All Section 17: E'/2 E'/2, SW'/4 SE'/4 Rule 1 Authorized Infection Strata for Enhanced Recovery (Source AIO 37) Fluids authorized under Rule 3, below, may be injected for purposes of pressure maintenance and enhanced oil recovery within the Affected Area into strata that are common to, and correlate with, the interval between 4,991 and 5,272 feet MD on the resistivity log recorded in exploratory well Kalubik No. 1. Rule 2 Well Construction (Source AIO 37) To facilitate wireline access, packers in injection wells may be located more than 200' MD above the top of the Oooguruk-Torok Oil Pool; however, packers shall not be located above the top of the confining interval. Production casing cement volume must be sufficient to place cement a minimum of 300' MD above the planned packer depth. Production casings must be cemented to a minimum of 500' MD above the Oooguruk-Torok Oil Pool. Area Injection Order 37A January 21, 2021 Page 3 of 5 Rule 3 Authorized Fluids (Source AIO 37) Fluids authorized for injection are: a. Source water from the Kuparuk or Prudhoe seawater treatment plants; b. Produced water provided by the Kuparuk River Field; c. Produced water from the Oooguruk-Kuparuk, Oooguruk-Nuiqsut, and Oooguruk-Torok Oil Pools; d. Tracer survey liquid to monitor reservoir performance; e. Biocide -treated and oxygen -scavenged seawater extracted from Harrison Bay, adjacent to the ODS; f. Biocide -treated and oxygen -scavenged water from the ODS shallow water source wells; g. Biocide -treated and oxygen -scavenged effluent from the ODS reverse osmosis unit; h. Mixtures of the fluids described in (e), (f), and (g) above; i. Diesel associated with freeze protection; j. Non -hazardous glycol and water mixtures; and k. Natural gas. Injection fluids shall be properly treated to mitigate the potential for scaling and permeability degradation in the Oooguruk-Torok Oil Pool. The injection of any other fluids, or mixtures of the above fluids, shall be approved by separate administrative action. Rule 4 Authorized Infection pressure for Enhanced Recovery (Source AIO 37) Injection pressures must be maintained such that the injected fluids do not fracture the confining intervals or migrate out of the approved injection stratum. Wellhead injection pressure shall not exceed 4,500 psi during gas injection or 2,800 psi during water injection. Rule 5 Monitoring Tubing -Casing Annulus Pressure (Source AIO 37) The tubing and casing annuli pressures of each injection well must be monitored at least daily, except if prevented by extreme weather conditions, emergency situations, or similar unavoidable circumstances. Monitoring results shall be documented and made available for AOGCC inspection. Rule 6 Demonstration of Tubing/Casing Annulus Mechanical Integrity (Source AIO 37) The mechanical integrity of an injection well must be demonstrated before injection begins, and before returning a well to service following a workover affecting mechanical integrity. An AOGCC-witnessed mechanical integrity test must be performed after injection is commenced for the first time in a well, to be scheduled when injection conditions (temperature, pressure, rate, etc.) have stabilized. Mechanical integrity tests must be conducted in accordance with AOGCC Industry Guidance Bulletin No. 10-02 — Mechanical Integrity Testing and done to a test pressure equal to the maximum anticipated surface injection pressure. The AOGCC must be notified, following the procedures in AOGCC Industry Guidance Bulletin No. 10-01 — Test Witness Notification, at least 48 hours in advance to enable a representative to witness mechanical integrity tests. Results of mechanical integrity tests must be readily available for AOGCC inspection. Rule 7 Well Integrity and Confinement (Source AIO 37) Whenever any pressure communication, leakage or lack of injection zone isolation is indicated by injection rate, operating pressure observation, test, survey, log, or other evidence, the Operator shall notify the AOGCC within 24 hours and submit a plan of corrective action on a Form 10-403 for AOGCC approval. The Operator shall immediately shut in the well if continued operation would be unsafe or would threaten Area Injection Order 37A January 21, 2021 Page 4 of 5 contamination of freshwater, or if so, directed by the AOGCC. A monthly report of daily tubing and casing annuli pressures and injection rates must be provided to the AOGCC for all injection wells indicating well integrity failure or lack of injection zone isolation. Rule 8 Notification of Improper Class II Infection (Source AIO 37) Injection of fluids other than those listed in Rule 3 without prior authorization is considered improper Class II injection. Upon discovery of such an event, the operator must immediately notify the AOGCC, provide details of the operation, and propose actions to prevent recurrence. Additionally, notification requirements of any other State or Federal agency remain the operator's responsibility. If fluids are found to be fracturing through a confining interval or migrating out of the approved injection stratum, the Operator must immediately shut in the injection wells. Upon discovery of such an event, the operator must immediately notify the AOGCC, provide details of the operation, and propose actions to prevent recurrence. Injection may not be restarted unless approved by the AOGCC. Rule 9 Annual Surveillance Report (Source AIO 37) A report evaluating the performance of the enhanced recovery injection must be submitted to the AOGCC by April I st of each year covering injection operations during the previous calendar year. The report shall include data sufficient to characterize the injection operation, including, among other information, the following: injection and annuli pressures (i.e., daily average, maximum, and minimum pressures); fluid volumes injected; injection rates; mechanical condition of the injection wells; and integrity of confining layers. An assessment of the applicability of the injection order findings, conclusions, and rules based on actual performance shall be included with the annual performance report. Rule 10 Other Conditions (Source AIO 37) The AOGCC may suspend, revoke or modify this authorization if injected fluids fail to be confined within the designated injection strata. Rule 11 Administrative Action (Source AIO 37) Upon proper application, or its own motion, and unless notice and public hearing is otherwise required, the AOGCC may administratively waive the requirements of any rule stated herein or administratively amend this order as long as the change does not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in an increased risk of fluid movement into freshwater. DONE at Anchorage, Alaska and dated January 21, 2021. Jeremy Digit ally signed by Y Jeremy M. P ice M. Price Date: 2021.01.20 13:14:34 -09'00' Jeremy M. Price Commissioner, Chair Digitally signed byDigitally signed by Daniel T. Daniel T.seamoont,Jr. Jessie L. Jessie L. Chmielowski Seamount,Jr.112413-09 ' Chmielowski 11:4452-0900 Daniel T. Seamount, Jr. Jessie L. Chmielowski Commissioner Commissioner Area Injection Order 37A January 21, 2021 Page 5 of 5 TION 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 ofthe matter determined by it. If the notice was mailed, then the period oftime 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. As provided in AS 31.05.080(b), "[t]he questions reviewed on appeal are limited to the questions presented to the AOGCC by the application for reconsideration." In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend 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. Bernie Karl K&K Recycling Inc. P.O. Box 58055 Fairbanks, AK 99711 George Vaught, Jr. P.O. Box 13557 Denver, CO 80201-3557 Gordon Severson 3201 Westmar Cir. Anchorage, AK 99508-4336 Darwin Waldsmith P.O. Box 39309 Ninilchik, AK 99639 Richard Wagner P.O. Box 60868 Fairbanks, AK 99706 INDEXES STATE OF ALASKA ADVER'T'ISING ORDER NOTICE TO PUBLISHER SUBMIT INVOICE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION WITH ATTACHED COPY OF ADVERTISMENT. ADVERTISING ORDER NUMBER AO-00p -21-004 FROM: AGENCY CONTACT: Jody Colombie/Samantha Carlisle Alaska Oil and Gas Conservation Commission DATE OF A.O. AGENCY PHONE: 333 West 7th Avenue 8/3/2020 (907) 279-1433 Anchorage, Alaska 99501 DATES ADVERTISEMENT REQUIRED: COMPANY CONTACT NAME: PHONE NUMBER: ASAP FAX NUMBER: (907)276-7542 TO PUBLISHER: Anchorage Daily News, LLC SPECIAL INSTRUCTIONS: PO Box 140147 Anchorage, Alaska 99514-0174 TYPE OF ADVERTISEMENT: t/ LEGAL i` DISPLAY CLASSIFIED 7 OTHER (Specify below) DESCRIPTION PRICE CO-20-013 and AIO-20-016 Initials of who prepared AO: Alaska Non -Taxable 92-600185 SUBMIT INVOICE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION WITH ATTACHED COPY OF ADVERTISMENTTO: AOGCC 333 West 7th Avenue Anchora e, Alaska 99501 Pae 1 of 1 Total of All Pages $ REF Type Number Amount Date Comments I PvN VCO21795 2 AO AO-08-21-004 3 4 FIN AMOUNT SY Act. Template PGM LGR Object FY DIST LIQ 1 21 AOGCC 3046 21 2 3 5 Purcha in ri e: T' e: Purchasing Authority's Signature Telephone Number O. # and re8 g agency name must appear on all invoices and documents relating to this purchase. estateis registered 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 . Va DISTRIBUTION: Division Fiscal/Original AO Copies: Publisher (faxed), Division Fiscal, Receiving Form: 02-901 Revised: 8/3/2020 Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO -20-013 And AIO-20-016 Kuparuk River Unit, Kuparuk River -Torok Oil Pool Oooguruk Unit, Oooguruk-Torok Oil Pool The application of ConocoPhillips Alaska, Inc. (CPAI) for amendments to Conservation Order (CO) No. 725 and Area Injection Order (AIO) No. 39 to expand the areal extent of the Kuparuk River Unit (KRU), Kuparuk River -Torok Oil Pool (KRTOP). On its own initiative the Alaska Oil and Gas Conservation Commission (AOGCC) is proposing to contract the affected areas of CO No. 645 and AIO No. 37 for Eni US Operating Company, Inc.'s (Eni) Oooguruk Unit( OU), Oooguruk-Torok Oil Pool (OTOP). CPAI, by letter dated July 24, 2020, requests the AOGCC amend CO No. 725 and AIO No. 39 to expand the affected area of the KRTOP to include acreage that is currently part of the OTOP but the acreage is now leased by CPAI. On its own motion the AOGCC is proposing to amend CO No. 645 and AIO No. 37 to contract the affected area of the OTOP to remove acreage that is currently defined as part of the OTOP but for which Eni does not hold the leases for. The AOGCC has tentatively scheduled a public hearing on this application for September 15, 2020, at 10:00 a.m. at 333 West 7th Avenue, 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 August 21, 2020. 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 (907) 793-1221 after August 24, 2020. If a hearing is requested, the COVID-19 virus may necessitate that the hearing be held telephonically. Those desiring to participate or be present at the hearing should check with AOGCC the day before the hearing to ascertain if the hearing will be telephonic. If the hearing is telephonic, on the day of the hearing, those desiring to be present or participate should call 1-800- 315-6338 and, when instructed to do so, enter the code 14331 followed by the # sign. Because the hearing will start at 10:00 a.m., the phone lines will be available starting at 9:45 a.m. Depending on call volume, those calling in may need to make repeated attempts before getting through. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 West 7th Avenue, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on September 7, 2020, except that, if a hearing is held, comments must be received no later than the conclusion of the September 15, 2020 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 (907) 793-1221, no later than September 10, 2020. je ya Pare Jeremy M. Price Chair, Commissioner Order Number: W0017173 Order Status: Submitted Classification: Legals h Public Notices Package: Legals ADN Final Cast: 323.72 Referral Code: AO-08-21-OD4 Payment Type: User ID: V/0010085 ST OF AK DNRi OIL AND GAS 550 W 7TH AVE STE 1100 ANCHORAGE. AK 99501 907-269-8805 legalads@adn.com ST OF AK/DNR/OIL AND GAS ACCOUNT INFORMATION TRANSACTION REPORT Date 1:01 PM - Mon, Aug 3.2020 Amount: 323.72 SCHEDULE FOR AD NUMBER W00271730 Tue Aug 4.2020 Anchorage Daily News Legals Notice of STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number. CO -20-013 And AJO-20-016 KUparuk River Unit, KUparUk River -Torok oil Pool Oooguruk Unit, OOOgUrUk-Torok Oil Pool The application of ConOCOPhllilps Alaska, Inc. (CPAI) for amendments to conservation Order (CO) N0. 725 and Area Injection Order (AIO) No. 39 to expand the areal extent of the Kuparuk River Unit (KRU), KUparUk River -Torok Oil Pool (KRTOP). On its own Initiative the Alaska Oil and Gas Conservation Commission (AGGCC) is prOpoSiflg t0 contract the affected areas Of CO N0.645 aril AIO 140.37 for En US Operating Company, Inf.'s (EOU OOOguruk Unl(OLQ, Oooguruk-Tarok Oil Pool (OTOP). CPAI, by letter dated Jury 24, 2020, requests the AOGCC amend CO NO. 7'25 and AlO 140.39 t0 expand the affected area Of the KRTOP t0 include acreage that Is currently part of the OTOP but the acreage is now IeaSed by CPAI. On its Own motion the AOGCC is proposing to amend CO N0. 645 and AK) N0. 37 t0 Contract the affected area of the OTOP to remove acreage that Is currently defined as part of the OTOP but for Which Eni does not hold the leases for. The AOGCC has tentatively Scheduled a public hearing on this application for September 15, 2020, at 10:00 a.m. at 333 West 7th Avenue, Anchorage, Alaska 99501. To request that the tentatively' scheduled heady g be held, a written request must be filed With the AOGCC n0 later ffian 4:30 p.m. On August 21, 2020. If a request for a hearing Is not timely filed, the AOGCC marY consider the Issuance of an order Without a hearing. TO )earn If the AOGCC will hold the hearing, call (907) 793-1221 after August 24, 2020. If a hearing is requested, the COVID-19 virus may necessitate dot the hearing be held telephonically. Those desiring t0 paR)Cipate or be present at the hearing should check With AOGCC the day before the hearing t0 ascertain If the hearing will be telephonic. If the hearing Is telephonic, on the day of the hearing, those desiring to be present Or participate Should Call 1-80D-315-6338 and, when Instructed t0 do so, enter the code 14331 followed by the M sign. Because the hearing will start at 10:00 a.m., the phone lines will be available staling at 9:45 a.m. Depending on call volume, those calling In may need to make repeated attempts before getting through. In addition, written comments regarding this application may be Submitted to the AOGCC, at 333 West 7th Avenue, Anchorage, Alaska 99501. Comments must be received n0 later than 4:30 P.M. on September 7, 2020, except that, if a hearing Is held, comments must be received no later than the conclusion of the September 15, 2020 hearing If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCCs Special Assistant, Jody COIOmble, at (907) 793-1221, n0 later than September 10, 2020. Jeremy M. Price Chair, commissioner Published: August 4, 2020 Bernie Karl K&K Recycling Inc. P.O. Box 58055 Fairbanks, AK 99711 George Vaught, Jr. P.O. Box 13557 Denver, CO 80201-3557 Gordon Severson 3201 Westmar Cir. Anchorage, AK 99508-4336 Darwin Waldsmith P.O. Box 39309 Ninilchik, AK 99639 Richard Wagner P.O. Box 60868 Fairbanks, AK 99706 Carlotta Chernoff Manager GKA Development ConocoPhillips Alaska ATO -602 700 G Street Anchorage, AK 99501 Phone 907-263-4692 July 24, 2020 Jeremy Price Chair, Alaska Oil and Gas Conservation Commission 333 W. 71h Ave #100 Anchorage, Alaska, 99501-3539 RE: Application for Area Injection Order, and Pool Rules expansion Kuparuk River -Torok Oil Pool, North Slope, AK Dear Commissioner Price, ConocoPhillips Alaska, Inc. as operator of the Kuparuk River Unit, and on behalf of the working interest owners, requests that the Alaska Oil and Gas Conservation Commission approve administrative amendments to Conservation Order 725 and Area Injection Order 39 to allow for the expansion of the Kuparuk River - Torok Oil Pool and area injection order to include lands acquired and recently incorporated into the Kuparuk River Unit. Please find a digital copy of the application attached to this e-mail. Please contact Patrick Perfetta (907-263-4531) if you have questions or require additional information. Regards, Carlotta Chernoff CPAI Application for Kuparuk River -Torok Oil Pool Expansion July 2020 Page 11 ConocoPhillips Alaska APPLICATION FOR EXPANSION OF THE KUPARUK RIVER-TOROK OIL POOL July 24, 2020 Outline 1. Introduction 2. Kuparuk River -Torok Oil Pool History 3. Proposed Kuparuk River -Torok Oil Pool Expansion 4. Torok Development 5. Development Drilling Plans 6. Proposed Amendments to the Kuparuk River -Torok Conservation, and Area Injection Orders 7. No Underground Sources of Drinking Water List of Figures 1. Location Map 2. Torok Oil Pool Type Log 3. Chemistry of Sampled/Produced Water, 3S area 4. Confidential: Torok Oil Pool, Gross Interval Isochore 5. Confidential: Torok Oil Pool, Top Depth Structure 6. Confidential: Well Log Cross -Section A -A' 7. Confidential: Seismic Cross -Section B -B' Confidential materials are submitted in Appendix 1. CPAI Application for Kuparuk River -Torok Oil Pool Expansion July 2020 Page 12 1. INTRODUCTION Document Scope This application is submitted for approval by the Alaska Oil and Gas Conservation Commission ("Commission") to expand the Kuparuk River -Torok Oil Pool (KRTOP) under Conservation Order (CO) 725, and Area Injection Order (AIO) 39. The proposed expansion area includes all lands acquired by ConocoPhillips Alaska, Inc. (CPAI) from Caelus Natural Resources Alaska, LLC (Caelus) in 2019. These lands were subsequently included in the 12th expansion of the Kuparuk River Unit (KRU), as it pertains to the Torok (Figure 1). This expansion would make the western, northern, and southern boundaries of the KRTOP equivalent to the current KRU boundary in the expansion area, to allow for development of the Torok over this area. 2. KUPARUK RIVER-TOROK OIL POOL HISTORY Original KRTOP CO 725 & AIO 39 CO 725, issued in July 2016, includes the accumulation of hydrocarbons common to and correlating with the interval between the measured depths of 4,991 and 5,272 feet in the Kalubik No. 1 well (Figures 1 & 2). This accumulation stratigraphically defines the Kuparuk River -Torok Oil Pool. AIO 39 authorizing injection of fluids for enhanced oil recovery from the KRTOP was also issued in July 2016. CO 725.001 In September 2016, the Commission modified the original order in the following ways: • Finding 10: Removal of the term "Regular production", due to the potential tax implications of this language. • Conclusion 12: Removal of language related to pre -production from injectors. • Expiration clause replaced by Rule 13 related to expiration date. CO 725.002 In May 2017, the Commission modified the original order to administratively remove the requirement for an annual reservoir review meeting for KRTOP. CPAI Application for Kuparuk River -Torok Oil Pool Expansion July 2020 Page 13 3. PROPOSED KUPARUK RIVER-TOROK OIL POOL EXPANSION Requested Scope CPAI requests the Commission to amend CO 725 and AIO 39 to expand the Kuparuk River -Torok Oil Pool to include lands acquired by CPAI from Caelus in 2019. These lands were included in the 12th expansion of the KRU, as it pertains to the Torok, approved in August 2019 by the Alaska Department of Natural Resources (Figure 1., and Table 1.). These lands previously belonged to the Oooguruk Unit (OU) and were voluntarily contracted by Caelus. As these lands once belonged to the OU, the Oooguruk-Torok Oil Pool (OTOP) covers a portion of these lands. The OTOP will need to be contracted in order to accommodate the expansion of the Kuparuk River -Torok Oil Pool. This will allow KRU owners the ability to develop and implement enhanced oil recovery operations on these lands. Development plans are summarized in Section 4 4. TOROK DEVELOPMENT Development Plans The expansion of the KRTOP will extend the existing pool to include the area currently covered by the OTOP. In addition, it is requested that the expansion include all acreage included in the 12th expansion of the KRU, as it pertains to the Torok reservoir. This would make the western, northern, and southern boundaries of the Kuparuk River -Torok Oil Pool consistent with the current unit boundary in the expansion area, as the Torok exists over an area larger than that covered by the existing OTOP on the lands under consideration. The expansion will allow for development of the Torok from KRU 3S pad, and the newly named KRU 3T pad (previously known as Nuna pad). The KRU owners began testing the Torok with a recompletion of the 3S-19 well in 2013. Since that time four horizontal wells (2 producers, and 2 injectors), and a vertical data collection well (Moraine 1) have been drilled to assess the Torok. To date 1.05 MMSTBO have been produced from the Torok from these wells. The Torok consists of lower Cretaceous -aged, Brookian lower slope -to -basin floor turbidite deposits comprised of thinly laminated mudstones, siltstones, and very fine to fine-grained sandstones sourced from the paleo-Brookian shelf margin to the west. The sandstones and siltstones have been interpreted to be locally continuous, sheet-like deposits within turbidite lobe complexes. Gross thickness of the Torok reaches ^300 feet but thins basin -ward to the southwest, southeast, and northeast. The Torok also pinches -out to the west against the paleo-slope. Appendix 1 is a confidential section that expounds upon the geology of the pool expansion area. CPAI Application for Kuparuk River -Torok Oil Pool Expansion July 2020 Page 14 5. DEVELOPMENT DRILLING PLANS Planned Wells Two additional horizontal wells (1 producer, and 1 injector) have been approved by KRU working interest owners. These wells will be drilled as part of the next rotary drilling program at 3S pad (purple dashed lines emanating from 3S pad, displayed on Figure 1.). 6. PROPOSED AMENDMENTS TO KUPARUK RIVER-TOROK CONSERVATION ORDER AND AREA INJECTION ORDER Affected Area CPA[ proposes the area subject to the conservation order for the KRTOP (CO 725), and corresponding area injection order (AIO 39) be expanded, so that these orders apply to the following, restated lands: Umiat Meridian T11N, R8E Section 1 - 4 all Section 9 - 12 all T12N, R7E Section 1 - 26 all Section 35 - 36 all T12N, R8E Section 2 - 11 all Section 13 - 36 all T13N, R7E Section 19 - 36 all T13N, R8E Section 19 - 21 all Section 28 - 34 all Table 1. Description of restated lands. 7. NO UNDERGROUND SOURCES OF DRINKING WATER No Underground Source of Drinking Water History In AIO 37, Conclusion #3, the AOGCC concluded that the Torok injection interval is not a potential source of drinking water. Finding #19 of the same order, provides supporting documentation. This documentation includes details of sampled water from the Torok from the ODST-45A being equivalent to 16,980 mg/I (which is greater than the 10,000 mg/I cut off for freshwater). Also, Finding #19 documents a ruling from the Environmental Protection Agency, authorized by Disposal Injection Order 31, that the Torok is not a source of drinking water. This is based on calculations from ten nearby wells in the Torok ranging from 17,000 to 24,000 mg/I NaCl. CPAI Application for Kuparuk River -Torok Oil Pool Expansion July 2020 Page 15 In AIO 39, Conclusion #3, the AOGCC determined that the Torok injection interval does not contain freshwater and is not a potential underground source of drinking water. Finding #19 of the same order, provides a summary of supporting documentation. This documentation includes water samples collected from Moraine 1 core measurements (21,363 mg/I of total dissolved solids) and produced water samples from KRU 3S-19 and 3S-620 wells ranging from 16,000 to 20,000 mg/I NaCl. Additional data related to No Underground Source of Drinking Water In addition to the above Conclusions, and Findings, CPAI has sampled additional waters from the Torok interval in several wells in the 3S area. The composition of the water is on average 18,635 mg/I, consistently above the 10,000 mg/I cut off for freshwater. A summary of the tested waters from all the 3S area wells is included in Figure 3. CPAI Application for Kuparuk River -Torok Oil Pool Expansion July 2020 Page 16 FIGURES ?., c owcoph➢6ps Kalubik 1 conocoPhillips Q- Torok Reservoir =" Administrative Boundaries and •` Proposals ��- Oooguruk Unit Legend Bottom Hole Location Well Spider Es ,�,, KRU Torok Oil Pool Oooguruk Torok Oil Pool Nuna/3T Pad -s Torok PA Unit Outline Coastline ' Gravel Footprint Proposed Well Plan — — — — - ` 3S Pad t_ �j,,•• .1t1F':fi. t� S�J �,,�•^.t •fix, .. 4a''Z' »_ ,t. < t .• i'. L .�, #-'. N 0 1 2 ts' * 1. Milesn " t Figure 1. Map displaying existing boundaries and proposed amendments related to the Torok Oil Pool: current Kuparuk River -Torok Oil Pool (CO 725)/AIO 39 (blue polygon with blue diagonal lines), current Oooguruk Torok Oil Pool (CO 645)/AIO 37 (green polygon with green horizontal lines), proposed area to be amended to the Kuparuk River -Torok Oil Pool/AlO 39 (blue shaded polygon), Oooguruk Torok Participating Area (red polygon), next round of approved Torok horizontal wells (purple dashed lines emanating from 3S pad). A note on the wellbore originating from the Oooguruk pad that extends into the Kuparuk River Unit: This is the ODST-47, a well which has subsequently been P&A'd. CPAI Application for Kuparuk River -Torok Oil Pool Expansion July 2020 Page 17 Kuparuk River - Torok Oil Pool Coarelv,on Dean Re: IForosarr uR <HD Rest�KD) I PH* 10 AF% 24: D2 CSA 65 GMCC 265 Tvfx S� Fie!KR"i D.2 C#al SP ReSSfRFOCI NKR 10) 2 040 20D so Co 'MU otc�r� o iii ro 4800 {j {{ 4900 z 5100 -5140 ---- 5200 -5284 6300 53t'ao 6400 �a 8500 -5500 Figure 2. The Kalubik No. 1 well serves as the type log for both the Oooguruk, and Kuparuk River -Torok Oil Pools (The above image is presented for illustration purposes. Refer to the well log measurements recorded in exploratory well Kalubik No. 1 for the precise representation of the Kuparuk-Torok Oil Pool.). See figure 1 for location of the Kalubik 1. CPAI Application for Kuparuk River -Torok Oil Pool Expansion July 2020 Page 18 Well Sample Date Total Cations (mg/1) Total Anions (mg/1) Total ionic composition (mg/1) Comment Moraine 1 2/26/2015 8,128.5 13,203.7 21,332.2 average of 2 RDTsamples 3S-19 8/23/2013 6,969.3 11,414.0 18,383.3 anion Cl only 3S-19 9/15/2013 7,567.6 11,248.0 18,815.6 anion Cl only 35-19 11/4/2013 7,608.1 11,145.0 18,753.1 anion Cl only 3S-19 5/21/2014 7,797.6 12,792.2 20,589.8 35-19 10/11/2014 7,205.3 10,951.2 18,156.5 35-611 11/8/2019 8,157.2 11,332.5 19,489.7 anions Cl, and SO4 only 3S-611 3/31/2020 8,158.2 10,508.2 18,666.4 3S-613 7/22/2016 5,964.1 54,969.8 60,933.9 likely contaminated 3S-613 7/28/2016 5,854.9 9,528.4 15,383.3 likely dilluted with frac water 3S-613 8/12/2016 6,014.1 9,755.4 15,769.5 likely dilluted with frac water 3S-613 8/14/2016 6,614.9 10,191.8 16,806.7 likely dilluted with frac water 3S-613 8/16/2016 6,583.3 10,150.1 16,733.4 likely dilluted with frac water 3S-613 8/23/2016 7,276.4 10,177.2 17,453.6 3S-620 6/2/2015 13,615.8 17,833.5 31,449.3 likely contminated; anions Cl, and SO4 only 3S-620 6/4/2015 8,828.7 13,168.4 21,997.1 cation Na, and K; anion Cl only 3S-620 6/6/2015 8,398.7 10,935.3 19,334.0 cation NA only; anion Cl only 3S-620 6/8/2015 11,518.0 10,359.5 21,877.5 cation NA only; anion Cl only 3S-620 7/4/2015 6,780.9 12,085.9 18,866.8 3S-620 9/11/2015 7,398.4 8,772.2 16,170.6 anion Cl only 3S-620 12/20/2015 6,681.3 11,024.8 17,706.1 3S-620 1/26/2017 7,053.6 11,501.5 18,555.1 3S-620 10/22/2017 8,081.7 12,421.7 20,503.4 7,556.0 11,079.4 18,635.4 Average Unless otherwise noted, cations include Ca, Mg, Na, and K Unless otherwise noted, anions include Cl, CO3, HCO3, and SO4 Samples noted as 'likely contaminated" ore not included in averages Figure 3. Summary of Torok water composition from samples collected from 3S area wells. CPAI Application for Kuparuk River -Torok Oil Pool Expansion July 2020 Page 19 APPENDIX 1 Additional Geologic Information To expand on the information included in the non -confidential portion of the application, the following is provided for additional context for the Torok. The Torok consists of lower Cretaceous -aged, Brookian lower slope -to -basin floor turbidite deposits comprised of thinly laminated mudstones, siltstones, and very fine to fine-grained sandstones sourced from gullies associated with the paleo-Brookian shelf margin to the west. The sandstones and siltstones are interpreted to be locally continuous, sheet-like deposits within turbidite lobe complexes (see Figure 6 for a well log cross-section demonstrating the lateral extent of the Torok, see Figures 4 and 5 for section location). Gross thickness of the Torok reaches —300 feet but thins basin -ward to the southwest, southeast, and northeast. To the west it pinches -out against the paleo-slope. The exact location of the westward pinch -out of the Torok comes with a degree of uncertainty. Figure 4 contains the Torok gross interval isochore. The western pinch -out in this interpretation shows the western limit of the Torok extending well past the western boundary of the current Oooguruk-Torok Oil Pool (CO 645)/AIO 37. The western pinch -out has the potential to extend farther up the paleo-slope for the entire western margin, as it does in the northwest corner of the Kuparuk River Unit (seismic section in Figure 7 shows this interpreted extent, see Figures 4 and 5 for seismic line location). It is due to this uncertainty, that the western boundary of the KRTOP be extended to be equivalent to the western margin of the Kuparuk River Unit. Fluid contacts within the Torok are uncertain. Both Pioneer and CPAI, as part of their applications for establishing Pool Rules from the AOGCC, addressed that a distinct oil -water contact (OWC) had not been identified within the Torok. Figure 5 contains a Top Torok depth structure map. It shows that the area is defined by a southeast plunging anticline. The Colville Delta No. 3 exploration well tested oil down to a true vertical depth subsea (TVDSS) of -5,150 feet. The highest -known water is established in the Ivik No. 1 exploration well within the Oooguruk Unit at -5,212 feet TVDSS. In establishing the Kuparuk River - Torok Oil Pool Rules, CPAI observed that mobile water is present in the Torok beginning at a depth of - 5,190 to -5,275 feet TVDSS. It is undetermined whether this represents a single OWC or multiple OWC's. In either case, there appears to be a wide transition zone where oil and water will be produced together at varying percentages, driven by capillary effects within the reservoir. All the wells produced to date, even those above -5,190 feet TVDSS have produced some level of formation water from the start. Initial water -cuts range from approximately 10-75%, generally depending on depth. Given the high variability in water -cuts in the wells produced to date, the expected produced water -cut within the expansion area can only be estimated with production from additional wells. CPAI Application for Kuparuk River -Torok Oil Pool Expansion July 2020 Page 1 10 Conor phtfLOs ... a Piojectiw+ Kalubik 1 ConocoPhillips W.— Torok Reservoir " 4« Administrative Boundaries and l i0 A' Proposals with Gross Isochore Oooguruk Unit = Legend f Bottom Hole Location - Well Spider w..f. KRU Torok Oil Pool Oooguruk Torok Oil Pool Nuna 3T Pad Torok PA C Unit Outline 0 Coastline Gravel Footprint - :;'" Proposed Well Plan ---- 3S Pad , r. p .f. .. r. n0.. .• fi. ,. n �, h��4. .J. �dayf' ♦. A N 0 1 2 A. Miles s Figure 4. Map from Figure 1 with addition of Torok gross interval isochore color overlay, location of well log cross-section A -A', and location of seismic line B -B'. CPAI Application for Kuparuk River -Torok Oil Pool Expansion July 2020 Page 111 conocoPhH4ps rrgxn}n Kalubik 1 ConocoPhillips Torok Reservoir Administrative Boundaries and A Mk 9 Proposals with Depth Structure r B 8ogu k U Legend Bottom Hole Location t Well Spider :: yti• KRU Torok Oil Pool Oooguruk Torok Oil Pool 3, Nuna/3T Pad Torok PA Unit Outline 0 Colville Delta 3 g' r Coastline s'P' Gravel Footprint .y4� Proposed Well Plan --�— 3S Pad / Z � �� i j 4� • qa 1, ,A . V � 1R ♦ f 9 N y T p a -. t1 2�p A I`, Miles Figure S. Map from Figure 1 with addition of Top Torok depth structure overlay, location of well log cross-section A -A', location of seismic line B -B', and key wells mentioned in text. CPAI Application for Kuparuk River -Torok Oil Pool Expansion July 2020 Page 1 12 #MV _. A ; _ A' i w Figure 6. Well log cross-section A -A' demonstrating lateral extent and continuity of the Torok (wells included are Placer 3, Moraine 1, Nuna 1 P131, Colv Delta 2, Kalubik 2, and Kalubik 1). Torok Oil Pool CPAI Application for Kuparuk River -Torok Oil Pool Expansion July 2020 Page 1 13 GKA Merge 2017 0-20deg Stack (Time) B' Figure 7. Seismic cross-section B -B' demonstrating lateral extent and continuity of the Torok (Green horizon is —equivalent to top of the Torok Oil Pool, Yellow horizon is equivalent to the base of the Torok Oil Pool). CPAI Application for Kuparuk River -Torok Oil Pool Expansion July 2020 Page 1 1 ConocoPhillips Alaska APPLICATION FOR EXPANSION OF THE KUPARUK RIVER-TOROK OIL POOL July 24, 2020 Outline 1. Introduction 2. Kuparuk River -Torok Oil Pool History 3. Proposed Kuparuk River -Torok Oil Pool Expansion 4. Torok Development 5. Development Drilling Plans 6. Proposed Amendments to the Kuparuk River -Torok Conservation, and Area Injection Orders 7. No Underground Sources of Drinking Water List of Figures 1. Location Map 2. Torok Oil Pool Type Log 3. Chemistry of Sampled/Produced Water, 3S area 4. Confidential: Torok Oil Pool, Gross Interval Isochore 5. Confidential: Torok Oil Pool, Top Depth Structure 6. Confidential: Well Log Cross -Section A -A' 7. Confidential: Seismic Cross -Section B -B' Confidential materials are submitted in Appendix 1. CPAI Application for Kuparuk River -Torok Oil Pool Expansion July 2020 Page 12 1. INTRODUCTION Document Scope This application is submitted for approval by the Alaska Oil and Gas Conservation Commission ("Commission") to expand the Kuparuk River -Torok Oil Pool (KRTOP) under Conservation Order (CO) 725, and Area Injection Order (AIO) 39. The proposed expansion area includes all lands acquired by ConocoPhillips Alaska, Inc. (CPAI) from Caelus Natural Resources Alaska, LLC (Caelus) in 2019. These lands were subsequently included in the 12th expansion of the Kuparuk River Unit (KRU), as it pertains to the Torok (Figure 1). This expansion would make the western, northern, and southern boundaries of the KRTOP equivalent to the current KRU boundary in the expansion area, to allow for development of the Torok over this area. 2. KUPARUK RIVER-TOROK OIL POOL HISTORY Original KRTOP CO 725 & AID 39 CO 725, issued in July 2016, includes the accumulation of hydrocarbons common to and correlating with the interval between the measured depths of 4,991 and 5,272 feet in the Kalubik No. 1 well (Figures 1 & 2). This accumulation stratigraphically defines the Kuparuk River -Torok Oil Pool. AIO 39 authorizing injection of fluids for enhanced oil recovery from the KRTOP was also issued in July 2016. CO 725.001 In September 2016, the Commission modified the original order in the following ways: • Finding 10: Removal of the term "Regular production", due to the potential tax implications of this language. • Conclusion 12: Removal of language related to pre -production from injectors. • Expiration clause replaced by Rule 13 related to expiration date. CO 725.002 In May 2017, the Commission modified the original order to administratively remove the requirement for an annual reservoir review meeting for KRTOP. CPAI Application for Kuparuk River -Torok Oil Pool Expansion July 2020 Page 13 3. PROPOSED KUPARUK RIVER-TOROK OIL POOL EXPANSION Requested Scope CPAI requests the Commission to amend CO 725 and AIO 39 to expand the Kuparuk River -Torok Oil Pool to include lands acquired by CPAI from Caelus in 2019. These lands were included in the 12th expansion of the KRU, as it pertains to the Torok, approved in August 2019 by the Alaska Department of Natural Resources (Figure 1., and Table 1.). These lands previously belonged to the Oooguruk Unit (OU) and were voluntarily contracted by Caelus. As these lands once belonged to the OU, the Oooguruk-Torok Oil Pool (OTOP) covers a portion of these lands. The OTOP will need to be contracted in order to accommodate the expansion of the Kuparuk River -Torok Oil Pool. This will allow KRU owners the ability to develop and implement enhanced oil recovery operations on these lands. Development plans are summarized in Section 4. 4. TOROK DEVELOPMENT Development Plans The expansion of the KRTOP will extend the existing pool to include the area currently covered by the OTOP. In addition, it is requested that the expansion include all acreage included in the 12th expansion of the KRU, as it pertains to the Torok reservoir. This would make the western, northern, and southern boundaries of the Kuparuk River -Torok Oil Pool consistent with the current unit boundary in the expansion area, as the Torok exists over an area larger than that covered by the existing OTOP on the lands under consideration. The expansion will allow for development of the Torok from KRU 3S pad, and the newly named KRU 3T pad (previously known as Nuna pad). The KRU owners began testing the Torok with a recompletion of the 3S-19 well in 2013. Since that time four horizontal wells (2 producers, and 2 injectors), and a vertical data collection well (Moraine 1) have been drilled to assess the Torok. To date 1.05 MMSTBO have been produced from the Torok from these wells. The Torok consists of lower Cretaceous -aged, Brookian lower slope -to -basin floor turbidite deposits comprised of thinly laminated mudstones, siltstones, and very fine to fine-grained sandstones sourced from the paleo-Brookian shelf margin to the west. The sandstones and siltstones have been interpreted to be locally continuous, sheet-like deposits within turbidite lobe complexes. Gross thickness of the Torok reaches ^300 feet but thins basin -ward to the southwest, southeast, and northeast. The Torok also pinches -out to the west against the paleo-slope. Appendix 1 is a confidential section that expounds upon the geology of the pool expansion area. CPAI Application for Kuparuk River -Torok Oil Pool Expansion July 2020 Page 14 5. DEVELOPMENT DRILLING PLANS Planned Wells Two additional horizontal wells (1 producer, and 1 injector) have been approved by KRU working interest owners. These wells will be drilled as part of the next rotary drilling program at 3S pad (purple dashed lines emanating from 3S pad, displayed on Figure 1.). 6. PROPOSED AMENDMENTS TO KUPARUK RIVER-TOROK CONSERVATION ORDER AND AREA INJECTION ORDER Affected Area CPAI proposes the area subject to the conservation order for the KRTOP (CO 725), and corresponding area injection order (AIO 39) be expanded, so that these orders apply to the following, restated lands: Umiat Meridian T11N, R8E Section 1 - 4 all Section 9 - 12 all T12N, R7E Section 1- 26 all Section 35 - 36 all T12N, R8E Section 2 - 11 all Section 13 - 36 all T13N, R7E Section 19 - 36 all T13N, R8E Section 19 - 21 all Section 28 - 34 all Table 1. Description of restated lands. 7. NO UNDERGROUND SOURCES OF DRINKING WATER No Underground Source of Drinking Water History In AIO 37, Conclusion #3, the AOGCC concluded that the Torok injection interval is not a potential source of drinking water. Finding #19 of the same order, provides supporting documentation. This documentation includes details of sampled water from the Torok from the ODST-45A being equivalent to 16,980 mg/I (which is greater than the 10,000 mg/1 cut off for freshwater). Also, Finding #19 documents a ruling from the Environmental Protection Agency, authorized by Disposal Injection Order 31, that the Torok is not a source of drinking water. This is based on calculations from ten nearby wells in the Torok ranging from 17,000 to 24,000 mg/1 NaCl. CPAI Application for Kuparuk River -Torok Oil Pool Expansion July 2020 Page 15 In AIO 39, Conclusion #3, the AOGCC determined that the Torok injection interval does not contain freshwater and is not a potential underground source of drinking water. Finding #19 of the same order, provides a summary of supporting documentation. This documentation includes water samples collected from Moraine 1 core measurements (21,363 mg/I of total dissolved solids) and produced water samples from KRU 3S-19 and 35-620 wells ranging from 16,000 to 20,000 mg/I NaCl. Additional data related to No Underground Source of Drinking Water In addition to the above Conclusions, and Findings, CPAI has sampled additional waters from the Torok interval in several wells in the 3S area. The composition of the water is on average 18,635 mg/l, consistently above the 10,000 mg/I cut off for freshwater. A summary of the tested waters from all the 3S area wells is included in Figure 3. CPAI Application for Kuparuk River -Torok Oil Pool Expansion July 2020 Page 16 FIGURES :... '.x.'::., .. Kalubik 1 z� Oooguruk Unit Conoco -Phillips Torok Reservoir Administrative Boundaries and Proposals Legend Bottom Hole Location Well Spider KRU Torok Oil Pool Oooguruk Torok Oil Pool Nuna/3T Pad -'r: Torok PA—' Unit Outline 0 - Coastline Gravel Footprint Proposed Well Plan ---- 3S Pad Figure 1. Map displaying existing boundaries and proposed amendments related to the Torok Oil Pool: current Kuparuk River -Torok Oil Pool (CO 725)/AI0 39 (blue polygon with blue diagonal lines), current Oooguruk Torok Oil Pool (CO 645)/AIO 37 (green polygon with green horizontal lines), proposed area to be amended to the Kuparuk River -Torok Oil Pool/AlO 39 (blue shaded polygon), Oooguruk Torok Participating Area (red polygon), next round of approved Torok horizontal wells (purple dashed lines emanating from 3S pad). A note on the wellbore originating from the Oooguruk pad that extends into the Kuparuk River Unit: This is the ODST-47, a well which has subsequently been P&A'd. CPAI Application for Kuparuk River -Torok Oil Pool Expansion July 2020 Page 17 Kuparuk River - Torok oil Pool Co"r"'M Dein PV,-, I paeosti'Y (;Pt AI[� kestt(f Lj PH06 AP, ? 2 6Pi► a sg WkC 965 S,Q . Cqu3'r vw RnSiffi C) NPOR $P i OHM 0 14_' 10'" <M DTCKII ) 170 tT 70 j 4800 Jr r 4900 4 --� -40 i 5100 C -5ttfii �" t 5300�a< s, 5400 Sat 5500 Figure 2. The Kalubik No. 1 well serves as the type log for both the Oooguruk, and Kuparuk River -Torok Oil Pools (The above image is presented for illustration purposes. Refer to the well log measurements recorded in exploratory well Kalubik No. 1 for the precise representation of the Kuparuk-Torok Oil Pool.). See figure 1 for location of the Kalubik 1. CPAI Application for Kuparuk River -Torok Oil Pool Expansion July 2020 Page 18 Well Sample Date Total Cations (mg/1) Total Anions (mg/1) Total ionic composition (mg/1) Comment Moraine 1 2/26/2015 8,128.5 13,203.7 21,332.2 average of 2 RDT samples 3S-19 8/23/2013 6,969.3 11,414.0 18,383.3 anion Cl only 3S-19 9/15/2013 7,567.6 11,248.0 18,815.6 anion Cl only 3S-19 11/4/2013 7,608.1 11,145.0 18,753.1 anion Cl only 3S-19 5/21/2014 7,797.6 12,792.2 20,589.8 3S-19 10/11/2014 7,205.3 10,951.2 18,156.5 3S-611 11/8/2019 8,157.2 11,332.5 19,489.7 anions Cl, and SO4 only 3S-611 3/31/2020 8,158.2 10,508.2 18,666.4 3S-613 7/22/2016 5,964.1 54,969.8 60,933.9 likely contaminated 35-613 7/28/2016 5,854.9 9,528.4 15,383.3 likely dilluted with fracwater 35-613 8/12/2016 6,014.1 9,755.4 15,769.5 likely dilluted with fracwater 3S-613 8/14/2016 6,614.9 10,191.8 16,806.7 likely dilluted with fracwater 3S-613 8/16/2016 6,583.3 10,150.1 16,733.4 likely dilluted with fracwater 3S-613 8/23/2016 7,276.4 10,177.2 17,453.6 3S-620 6/2/2015 13,615.8 17,833.5 31,449.3 likely contminated; anions Cl, and SO4 only 3S-620 6/4/2015 8,828.7 13,168.4 21,997.1 cation Na, and K; anion CI only 3S-620 6/6/2015 8,398.7 10,935.3 19,334.0 cation NA only; anion CI only 3S-620 6/8/2015 11,518.0 10,359.5 21,877.5 cation NA only; anion CI only 3S-620 7/4/2015 6,780.9 12,085.9 18,866.8 3S-620 9/11/2015 7,398.4 8,772.2 16,170.6 anion Cl only 3S-620 12/20/2015 6,681.3 11,024.8 17,706.1 3S-620 1/26/2017 7,053.6 11,501.5 18,555.1 3S-620 10/22/2017 8,081.7 12,421.7 20,503.4 7,556.0 11,079.4 18,635.4 Average Unless otherwise noted, cations include Ca, Mg, Na, and K Unless otherwise noted, anions include Cl, CO3, HCO3, and SO4 Samples noted as' likely contaminated" are not included in overages Figure 3. Summary of Torok water composition from samples collected from 3S area wells. CPAI Application for Kuparuk River -Torok Oil Pool Expansion July 2020 Page 19 APPENDIX 1 Additional Geologic Information To expand on the information included in the non -confidential portion of the application, the following is provided for additional context for the Torok. The Torok consists of lower Cretaceous -aged, Brookian lower slope -to -basin floor turbidite deposits comprised of thinly laminated mudstones, siltstones, and very fine to fine-grained sandstones sourced from gullies associated with the paleo-Brookian shelf margin to the west. The sandstones and siltstones are interpreted to be locally continuous, sheet-like deposits within turbidite lobe complexes (see Figure 6 for a well log cross-section demonstrating the lateral extent of the Torok, see Figures 4 and 5 for section location). Gross thickness of the Torok reaches ^300 feet but thins basin -ward to the southwest, southeast, and northeast. To the west it pinches -out against the paleo-slope. The exact location of the westward pinch -out of the Torok comes with a degree of uncertainty. Figure 4 contains the Torok gross interval isochore. The western pinch -out in this interpretation shows the western limit of the Torok extending well past the western boundary of the current Oooguruk-Torok Oil Pool (CO 645)/AIO 37. The western pinch -out has the potential to extend farther up the paleo-slope for the entire western margin, as it does in the northwest corner of the Kuparuk River Unit (seismic section in Figure 7 shows this interpreted extent, see Figures 4 and 5 for seismic line location). It is due to this uncertainty, that the western boundary of the KRTOP be extended to be equivalent to the western margin of the Kuparuk River Unit. Fluid contacts within the Torok are uncertain. Both Pioneer and CPAI, as part of their applications for establishing Pool Rules from the AOGCC, addressed that a distinct oil -water contact (OWC) had not been identified within the Torok. Figure 5 contains a Top Torok depth structure map. It shows that the area is defined by a southeast plunging anticline. The Colville Delta No. 3 exploration well tested oil down to a true vertical depth subsea (TVDSS) of -5,150 feet. The highest -known water is established in the Ivik No. 1 exploration well within the Oooguruk Unit at -5,212 feet TVDSS. In establishing the Kuparuk River - Torok Oil Pool Rules, CPAI observed that mobile water is present in the Torok beginning at a depth of - 5,190 to -5,275 feet TVDSS. It is undetermined whether this represents a single OWC or multiple OWC's. In either case, there appears to be a wide transition zone where oil and water will be produced together at varying percentages, driven by capillary effects within the reservoir. All the wells produced to date, even those above -5,190 feet TVDSS have produced some level of formation water from the start. Initial water -cuts range from approximately 10-75%, generally depending on depth. Given the high variability in water -cuts in the wells produced to date, the expected produced water -cut within the expansion area can only be estimated with production from additional wells. PAGES 10-13 HELD CONFIDENTIAL