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Home My WebLink About182-186Memorandum State of Alaska Oil and Gas Conservation Commission To: Well File: <~ --' ~3~3 DATE Cancelled or Expired Permit Action EXAMPLE: Point McIntyre P2-36AXX API# 029-22801-95 This memo will remain at the front of the subject well file. Our adopted conventions for assigning APl numbers, permit numbers and well names did not specifically address expired or cancelled permits. This omission has caused some inconsistencies in the treatment of these kinds of applications for permit to ddil. Operators have asked us to adopt formal procedures for this class of permit application in order to prevent future database disparities. If a permit expires or is cancelled by an operator, the permit number of the subject permit will remain unchanged. The AP! number and in some instances the well name reflect the number of preexisting reddlls and or muitilaterals in a well. In order to prevent confusing a cancelled or expired permit with an active well or multilateral these case sensitive well identifiers will be changed for expired and cancelled applications for permits to ddll. The APl number for this cancelled or expired permit is modified so the eleven and twelfth digits is 95. The well name for a cancelled or expired permit is modified with an appended xx. These procedures are an addendum to the APl numbering methods described in AOGCC staff memorandum "Multi-lateral (weilbore segment) Ddiling Permit Procedures, revised December 29, 1995. AOGCC database has been changed to reflect these changes to this permit. St-eve McMains - ~ "' - Statistical Technician Reply Refer To: WSH-ONFO UNITED STATES DEPARTMENT OF THE INTERIOR Minerals Management Service ~. Alaska Region 411 W. 4th Ave., Suite 2A Anchorage, Alaska 99501 SOHIO Alaska Petroleum Company Pouch 6-612 Anchorage, Alaska 99502 Gentlemen: Your Application for Permit to Drill (APD) and the:Surface Use Plan (SUP) for the Siksrik Well No. 1 in the NPR-A are approved. The drilling and work pad areas are approved for ice construction as detailed in the SUP. Construction of a sand pad will require prior approval of the District Supervisor. Conditions of approval for the construction and daily operations (see enclosure No. 1) and the drilling of the Siksrik well (see enclosure No. 2), as well as the Final 30 'CFR Part 221 Oil and Gas Operating Regulations (see enclosure No. 3), must be followed. In addition, all the terms of the Bureau of Land Management's conditional approval of SOHIO's subsistence study shall be complied with, and the approved environmental training program shall be reviewed by all personnel involved in the exploration activity and a certification card shall be issued and carried by such personnel. This office must be notified 24 hours in advance of the commencement of construction activities. Once drilling activities begin, it is our intention to have an onsite inspector in camp until the well is plugged and abandoned. Any modifications to the approved plan must be approved in advance. If you have any questions, please call. Sincerely, Enclosures (3) ,~.Joseph A. Dygas RECEIVED DEC 0 1 1982 Alaska 0il & Gas Cons. C;ommi$ ion Anchorage Form 9-331 C · ' (~Iay 196~) .,IITED STATES DEPARTMENT OF' THE INTERIOR GEOLOGICAL SURVEY SUBMIT ~.~ ~IPLICATE * Form a~proved. Budget ~ureau No. 42-R1425. (Other ' IonB On rem y.de) APPLICATION FOR PERMIT TO DRILL, DEEPEN~ OR PLUG BACK la. TYPE OF WORK DRILL !~ DEEPEN l-~ PLUG BACK [] b. TYPE OF WELL SINOLE [~ MULTIPLE[] O,L [ WELLO~S ~ o~n~ Wildcat ~ ~ W~LL 2. NAME OF OPERATOR Sohio Alaska Petroleum Company ~. ADDRESS OF OPERATOR Pouch 6-612, Anchorage, Alaska 99502 4. LOCATION OF WELL (Report location clearly and in accordance with any State requirements.*) ... At surface 900' NSL, 1020' WEL, Sec.-2, T10N, R1W UPM At proposed prod. zone -' 900' NSL, 1020' WEL, Sec.;2~ T10N.~ R1W UPM (Vertical Hole) 14. DISTANCE IN MILES AND DIRECTION FROM NEAREST TOWN OR POST OFFICEs 30 Miles West of Nuiqsut 5. LEASE DESIONATION AND SERIAL NO. AA46601 Tract 821-03 6. IF INDIAN, ALLOTTEE OR TRIBE NAME N/A ?. UNIT AGREEMENT NAME ' 8. FARM OR LEASE NAME .. "NPRA Block #3- -; 9. WELL NO.- . o ~ . 'c~r~''~..~ ~.~ No. 1 1~. FIELD A~ P~L, OR..W~DCAT . REC., T., R., M., OR BLK.. ~ AND SURVEY OR AREA :- ,~ . ;-; Se~. 2, T10N~..'_R1W UPM 12. COUNTY OR PARISH{ '13~ STATE ~ N0rth .'SloPe I/',k~aska 1~. DISTANCE FROM PROPOSED* LOCATION TO NEAREST PROPERTX OR LEASE LINE, FT. (Also to nearest drlg. unit line, if any~ 16. NO. OF ACRES IN LEASE 22896 17. NO. OF ACRES ASSIONED ' (.-. TO THIS WELL .. 20. ROTARY·~)R.CABLE TOOLS 6300 ' 18. DISTANCE FROM PROPOSED LOCATIONS 19. PRopOSED DEPTH -' TO NEAREST WELL, DRILLINO, COMPLETED, ry' ' ="~ o~ ~ ~B, ON TInS r~,sE, Fr. None 8050 ' Rota , .,' 21. ELEVATIONS (Show whether DF, RT, GR, etc.) ' 22.-.APPR0X. DAT~ WORK WILL START RTE = 110' AMSL (Estimated) "' .': 5. Decg~be~ 23. PROPOSED CASING AND CEMENTING PROGRAM '" ~, :-: SIZE OF HOLE SIZE OF CASING SETTING DEPTH QUANTITY OF C~IMENT... _. iWEIOHT PER FOOT 26" 20" 104# Grade (B) 115 ~ KB 17 1/2" 13 3/8" 72# (L-80) 2700'-KB 12 1/4" ~9 .5/8" 47# (L-80) 7750' KB 360 :cu:ft" permafrost" ~: .. 3200 cu.ft~ Permafrost :'. ,. 1st. Stage: ' 360' cu.ft ' Class/. ;'.G" 2nd Stage: -1370 cu.ft.iCla~s, "G" 3rd Stage: ~:130 cu.ft '.Permafrost 8 1/2"- 7" 29# (L-80) BOP Program From Conductor to +2~00·' 21 1/4" x 2000 psi diverter system From +2700' to TD 13 5/8" x 5000 psi BOP cOnsisting of 3 ram assemblies and one annular w/ 5000 psi choke manifold and lines. 7250'-8050'KB 120 cu.'ft. :.Class "G" ONSHORE -~ EL~ OpEP~T{O~S · _. ~- .. SIP . -.. ..· .. .': ...... .... : . ,.: ~ ~ ~ , ,. . -. -- ~. f. :~ See attached BOP procedure for details. A~.~o~;v,~,s~..~! :~ ~!' ,~; '"-5 IN ABOVE SPACE DESCRmE PROPOSED PRO~RAM: ~ pro~s~ iS to d~pen or plug back, ~ve da~ on present productive jAnac ~n~ ~0Pos~ ~ew vroducflve zone. ~ propos~ is to d~n or d~pen dir~tion~ly, ~ve perfln~t da~ on subsurface locations and measur~ ~d true verflc~ dep~s.:: ~ive blowout preventer program, ~ any .... =, :.L j.. :[: [:[ ?/ ]-[ ? .]. ~, '~'. 24. SIGNED (This space for Federal or State office use) PERMIT NO. APPROVAL DATE DISTRICT SUPERVISOR *See InCiSions On Reverse Side DATE .: 2 ~ 1:1982. · . DEC 0 ]. ]982 Alaska Oil & Gas Cons. Commission Anchorafe Enclosure No. 1 Conditions of Approval Concerning Winter Operations on Oil and Gas Leases Within the National Petroleum Reserve in Alaska The conditions listed below are those which contractors or subcontractors, at any tier, will be required to follow in order to minimize damage to the land, waters, and to the fish and wildlife on oil and gas leases within the National Petroleum Reserve in Alaska (NPRA)-. 1. To the extent possible, maximum use will be made of the ice roads extending from the wellsite to the water sources and airstrip. · 2. On-tundra travel will follow areas where an average snow depth of six inches and freeze up of the ~active layer of 12 inches is maintained. These requirements may be modified by the Arctic Resource Area Manager, BLM, for the use of light weight equipment specialized for use in tundra environments. 3. No bulldozing of tundra areas for roads or trails will be allowed. This prohibition against the bulldozing of tundra areas includes the organic ridges outlining low-centered polygonal areas. This condition, however, does not prohibit the clearing of drifted snow along a trail or road or in a camp, to the extent that the tundra mat is not disturbed. Also, it does not prohibit the clearing of snow on a lake or on a river ice surface in order to prepare an aircraft runway. 4. Camps used for road, pad site or airstrip construction will be situated on gravel bars, sand or other stable lands. Where leveling of trailers or modules is required and the surface has a vegetative mat, leveling will be accomplished with blocking rather than by leveling with a bulldozer. ., 5. Crossing of waterway courses shall be made using a low angle approach in order not to disrupt the naturally occurring stream or lake banks. There will be no bulldozing of stream or lake banks. 6. Ail oil spills will be reported to the District Supervisor, MMS and the Arctic Resource Manager, BLM, immediately. Additional fuel handling requirements are: a. Ail fuel spills will be cleaned up immediately, taking precedence over all other matters, except the health and safety of personnel. b. Oil spill clean up materials will be incinerated in approved receptacles but not on lake or river ice. c. Although fuels may be off-loaded from aircraft on the ice, there will be no storage of fuels on lake or river ice, even on a temporary bas is. RECEIVED DEC 0 1 _ j82 .al~.~k;~ Oil & Gas Cons. Commission 7. All fuel containers used, including barrels, shall be marked with the contractor's name and date, i.e., SOHIO, 1982. '8. Wastewater .from all activities, shall receive treatment conforming to Federal requirements for secondary .treatment if Arctic tested package facilities are used. Grey wash and kitchen wastewater will be filtered to remove the solids and greases and the liquid discharged to the land surface. This discharging of the liquid shall be done in such a manner as to take advantage of existing depressions or shallow ponds, but in no event will the discharge be within 100 feet, measured h6rizontally, of any natural or man-made lake, river, slough or coastal water. All solids and sludges shall be incinerated. 9. The Antiquities Act of June 8, 1906, (34 Stat 225; 16 USC 431-433) prohibits the appropriation, excavation, injury or destruction of any historic or prehistoric ruin or monument, or'any other object of antiquity, situated on lands owned or controlled by the United States. No historic archaeological site, or camp, either active or abandoned, shall be disturbed in any manner 'nor shall any item be removed therefrom. Should such sites be discovered during the course of field operations, the Arctic Resource Manager, BLM, will be promptly notified. 10. A copy of these conditions shall be posted in a conspicuous place in any site established for the purposes of winter operations on oil and gas leases within NPR-A. 11. Hunting, feeding, harassing or disturbing any fish or wildlife is prohibited during all operations. This includes, but is not limited to, the following: a. No vehicle operations within one-half mile of any known denning barren ground grizzly (in the upland area) or of any denning polar bear (near the sea coast or in the lower reaches of major rivers or estuaries). b. No chasing by vehicles or buzzing by aircraft of any wildlife. Particular attention will be given to not disturbing caribou. In this regard, it is assumed, and experience has shown, that small groups of caribou, which habitually hang around airstrips and airstrip approaches, are not unduly disturbed by normal aircraft operation. 12. An area adjacent to the staked reserve pit will be iced and the organic layer and excess material from the reserve pit will be stored on this protective ice cover. RECE ED DEC 0 1 Alaska Oil & Gas CoDs. Co~nmissJoD Anchorage Enclosure No. 2 Page 1 of ? DEPARTMENT OF THE INTERIOR Minerals Management Service ALASKA ONSHORE DISTRICT CONDITIONS FOR DRILLING APPROVAL OPERATOR :' WELL: SOHIO ALASKA PETROLElrM COMPANY SIKSRIK WELL #i LEASE: A-46601 LOCATION: 900' NSL~ 1020' WEL, SEC. 2, T i0 N, R 1 W, UPM ALL OPERATIONS ARE TO BE CONDUCTED IN SUCH A MANNER THAT WILL INSURE COMPLIANCE WITH TPIE LEASE TE~fS, THE PERTINENT OPERATING REGULATIONS OF TITLE 30 CFR PART 221, AND THE APPLICABLE NOTICES TO LESSEES AND OPERATORS. The following items are emPhasized: 1. Plan ChJnge, Suspension of Operations or Plugging Do not change the submitted plan, suspend operations, plug, or plug back without filing written notification of such intent with, and receiving approval from, the District Supervisor. Form 9-331, "Sundry Notices and Reports on Wells", will be used for this writ~ten notification. Emergency approval may be obtained verbally, but such approval does not waive the written notice requirement. The same Form 9-331 shall also be used by the operator for filing, within 15 days, a subsequent report with details of the completed operation. 2. .Spud Date The spud date shall be promptly (within 48.hours) reported to the District Supervisor. The spud hour and date shall subsequently be reported on Form 9-331. 3. Well Sign Ail drilling wells shall have a well sign in legible condition · from spud date to final abandonment. Information shall include operator's name, lease number, Well name and number, and location. RE£EiYED DEC 0 '[ 0il & Gas Cons. Commission Anchorage 'Page 2 of ? 4. Daily Reoort Submit a W~itten daily progress report until tile well is completed or'abandoned. This report should-include bub is not limited to: Current T.D., Mud Wt., P.V., Vis., W.L., pH, Coring, Logging,. BOP tests, running~casing, cementing, special problems, and current operations. 5. Contact With District Suoervisor Recognizing that the, written daily report may not always be transmitted in a timely fashion, routine'telephone and personal contact shall be maintained with the District Supervisor, or his representative, to assure sufficient advance notice of pertinent operations requiring on-site compliance inspections. 6. Form 9-329 '!Monthly Report of Operations" This report shall be filed each month starting with the month in which the well was spudded. A record of the spud date shall be a part of the first month's report. 7." workmanlike Operation$. ~The well and lease premises shall be maintained in a workmanlike manner with due regard to safety, conservation, and acceptable environmental, sanitary and health standards. 8. Immediate Reoorts Spills, blow-outs, fires, leaks, accidents, or any other unusual occurrences shall be promptly reported in accordance with the requirements of NTL-3. . Drl!lln~ Ooeratin~ Pra_ct!c~s "~ , a. Hole conditioned before making t~ip.. b, CI Fluid levels observed in pits and drill pipe-casing annuluS, and change evaluated before continuing trip. D~illing fluid tested for viscosity, water loss, wall cake thickness, weight and gel strength at least every eight hours. DEC 0 ii. 8 Alaska Oil & Gas Cons, CornI~isz, ior~ Anchorag~ .,, Page 3 of 7 d, e. Prior to drilling out the plug or perforating the casingafter cementing, all casing strings should be pressure tested over the interval from the cement collar to the casinghead to a pressure of 1000 psi or 0.2 psi/foot, whichever is greater. If pressure declines more than 10% in 30 minutes,'or if there are other indications of-a leak, corrective measures shall · be taken. , Qualifications: the test pressure shall not exceed the internal yield pressure of the casing. Conductor casing shall be tested to a minimum of 200 psi. Automatic gas detectors and alarms installed and operative. f. Mud degasser installed and operative. g. Test lines, separators and tanks installed and operative before testing any potential hydrocarbon zones when fluid is expected to reach the surface. h. "Fill-up Volume" required to fill-up hole on trips calculated and posted. 10. Mud Reserve Sufficient quantities of pre-mixed mud or mud materials to insure well control shall be kept readily accessible for immediate use at all times. This reserve shall not be less than the amount necessary to make a mud volume equal to the calculated capacity of the active downhole and surface mud systems. 11. Blow-Out.PreveD~ou E~ui~men~ and Fractices Blow-out preventer and control valves must be installed prior to drilling below surface casing. Blow-out prevention equipment shall consist of an annular type and the specified number of ram-type preventers, one of which shall contain a blind ram, as set forth in API RP 53. The pipe rams shall be of proper size to fit the pipe in use. The rated working pressure of any blow-out preventer system shall exceed the maximum anticipated surface pressure to which it may be subjected. All blow-out prevention equipment shall be adequately prote~ted to ensure reliable operation under existing weather conditions. a. (1) (2) (3) b, C. d. Page 4 of 7 Testing The equipment shall be tested when it is installed, before drilling out after each string of casing is set, not less than once each week while drilling, and following repairs that require disconnecting a pressure Seal. Ram-type blow-out preventers and related control equipment shall be tested at the rated working pressure of the stack assembly or at 70% of the minimum internal yield pressure of the casing, whichever is the lesser. Annular-type preventers shall be tested at 70% of the rated working pressure. Pipe rams shall be actuated daily and the blind rams shall be actuated each time the drillpipe is out of the hole. The District Supervisor should be notified prior to the initial and weekly testing procedures so that Minerals Management Service representative may witness the test. Ail well control tests and crew drills shall be recorded on the drillers log and the Minerals Management 'Service shall be furnished a copy of the pressure test report. Accumulator Accumulator system shall maintain a pressure capacity reserve at all times to provide for repeated operation of hydraulic preventers. Ram-Type Preventers Ram-type preventers' shall be equipped with extension hand wheels or hydraulic locks. Other Equipment An inside blow-out' preventer assembly (back pressure valve) and an essentially full-opening drill-string safety valve in the open position shall be maintained on ~the rig floor to fit all pipe in the drill string. A kelly cock shall be installed below the swivel, and an essentially full-opening kelly cock of such design Page 5 of 7 that it can be run through the blow-out preventers shall be installed at the bottom of the kelly. e. BOP Drills A blow-out prevention drill shall be conducted weekly for each drilling crew. f. Well Control Training Ail drilling personnel, shall be familiar with the blow-out prevention equipment before starting work on the well. Supervisory' personnel must be trained in well control techniques and evidence of their latest well control training courses shall be maintained at the well site. 12. Multiple Zone or Alternate Zone Completions All multiple or alternate zone completions must be approved in advance~ Applications for such approval must be accompanied by: a. electric log of well with separate zones clearly marked. b. diagrammatic sketch of mechanical installation proposed. 13. Oil and Gas Shows Ail showings of oil and gas must be evaluated, and if commercial, must be depleted before abandonment (depletion of commercial producing zones is not applicable to present NPR-A exploration drilling program). Any show of oil and gas not completed shall be isolated with cement behind pipe in any producing well, or isolated with cement plugs in any dry hole. All other minerals penetrated will be reported to the District Supervisor, and must be isolated in the same manner as oil and gas shows. 14. General Uses of Form 9-331 This form is to be generally used by the Operator to submit SUBSEQUENT reports of COMPLETED dri!li~ng operations that have been described, and .approved, in a previously subm{tted plan. Note that item one (1) contains examples of when Form 9-331 is prescribed to serve as a notice of proposed operations, and again, as a subsequent report of completed operations. · DEC 0 Page 6 of 7 15. Form 9-330, "Well Completion or Recompletion Report and Log" This form shall be submitted not later than 15 days after completion of the well or after "~ompletion of operations being performed, in accordance with 30 CFR 221.59. Two final copies of all logs run, core descriptions, core analysis, well test data, geologic 'summaries including formation tops and sample descriptions, and all other surveys or data obtained and compiled during the drilling, workover and/or completion operations will be filed with Form 9-330. Samples (cuttings, fluid and/~or gas) will be submitted only when requested by this office. 16. Condition of Compliance for. Fiscal Accountability "This APD is approved subject to the requirement that, should the well be successfully (completed for production), (recompleted for production in a new interval) this office must be notified when it is placed in a producing status. Such notification may be provided orally if confirmed in writing and must be received in this office by no later than the fifth business day next, following the date on wh'ich the well is placed on production. The notification shall provide, as a minimum, the following informational items: 1. Operator name. 2. Well name, number and location. 3. Date well was placed on production. 4. The lease, or communitized tract, or unit participating area to which the well's production is attributable. As these reports are received by the respective District Offices, the applicable records should be noted with the notice thereafter being furnished promptly to the appropriate royalty management office. The appropriate royalty management office is that office which, at the time of notification, has the responsibility to account for the royalty revenues generated by the involved well. At present, the responsible office for wells in the Alaska OCS/Alaska Region, is the Accounting Center in Lakewood, Colorado. Page 7 of 7 17. Removal of Equipment Do not remove drilling equipment from any abandoned or suspended well without consent of the District Supervisor. Mailing Address Office Address Alaska Onshore District Supervisor Minerals Management Service 411W. 4th Avenue Anchorage, Alaska' 99510 (Samples and core cuts' only) Onshore Resource Evaluati. on Minerals Management'Service 411 W. 4th Avenue Anchorage, Alaska 99501 Minerals Management Service 411W. 4th Avenue Ancbor~ge~ Alaska 9501 Telephones: Office: 272-9461 Telephones:~ : office: 272-~465 Enclosure No. Wednesday · October 27, 1982 Part III ' · DePartment of the Interior ' . · Minerals Management Service Oil and Gas Operating Regulations; Final · ., Rule ' . . 47758 Fe.d,~[al Register_. L ::: / 4?, No. 20/} [ Wednesday,"October'ZT,.'"-'"'~ ..... / Rules and. Regulations. L, . . · Indian representatives. 3 from Stale gt,vcrnmenls, 1 from a general member" of Ihs public, and several from offices wilhin Ihs Departmenl of Ihs lnlerior. In acidition, the Commission on Fiscal, accountability of the Nation's Energy Resources (l,inowes Commission), eslablishcd by Ihs Secretary. of the Inlerior in July 1981 lo invesligule lhefl undother alleged shortcomings in the accountability of production'from Federal and Indian oil and gas'lease~, provided a'draft of its report for inch:sion as comments in Iht&. ' rulemaking. Specific discussion concerning the adoption of recommendations of the Commission which relale lo sections of the regulations already under review is : .' cow:red herein. However, Ihs majority of Ihs report denis with royalty ri:quiremenls which are not the subject of this rulemaking, and lhose comments will be addressed in a separate rulemaking relating to royalty '.. accounting provisions for all leasable " minerals. , · The following discussion relates to -' some general comments which did not · -concern any one specific section. One general change which has been included in lhis rule~naking is the - revision of responsible officials' titles to. rc[lccl Ihs creation of Ihs Mira:reis Management Service on January 19, 1982 (47 FR 4751). These title changes do eel t;{mnge or alter the basic rt:sptmsibilJly of these officials excepl for lhose . detailed in the definitions section. Several commenters were concerned DEPARTMENT OF THE INTERIOR Minerals Management Service 30 CFR Part 221 OII and Gas Operating Regulations AGENCY; Minerals Managenu:nt Service, Inleriur. ' ACTION: Final rulemaking.. SUMMARY: This final rulemaking will amend the regulations governing the exploration, developlm:nt, and~ " produclion of oil and gas from onshore . Federal and reslricled Indian leases. The final regulations revise and moderni~ the regulations in 30 CFR Part 221 which were last promulg, led in their entirely in 1942, The revised regulatiot}s {1} eliminate unnecessary ilems, (2] rcflecl advances in lechnology, (3] incorporate provisions for environmental protection, {4} recognize applicable Department opinions and ' policy directives, [5} provide ft)r more meaningful enforcement notions, and segregate'Ihs royally provisions from those relating to operational matters. EFFECTIVE DA~; November 20, 1982. ADDn~SS: Associale Direclor for Onshore Minerals Opcrali(ms. Minerals M.n.gmnent Service, 12203 Sunrise Valley Drive, ResiGn Virginia 22~11. FOR FURTHER INFORMATION CONTACT: {FYi) 9~7535. or Mr. 51cphen i 1. SUPP~MENTARY INFORMATION: principal aulhurs u[ thi~ final rtdumakin8 ! New Old 221.102 ............................... 221.35 {pos'~on o~. 221.103 ............................... 221.3e Z~1.104 ............................. 221.3~ (.DO('W~ {fi'}. 221.105 .......................... 221.40 (porbo~ 221.'10~ ............................ 2~I.~3(d). 221.107 ......................221.44 (per, on 22t.10~ ..................... 221.45 {porlJon 221.109 ............................. 221,4{i. - 221.110 .......................... 221.47. 2~t.111 ............................ 221 46. 22t.112 ........................... 2'2'1.49. 221.11:1 ............. ' ...... 221.50. 221.114 ................. L. 221.51. 221.115 ........................... 221.52. 221.116 (a) ariel (b) ............. 221.54 [0 ~nd ~.' 221.117 .....................~_, 221.60. 221.119 .......................... 221.61. 221.119 ...... ................ 221.S2.. 221.1Z0 ............. : ................. 221.63. 221.121 ...................... 221.64. 221.122 ..................... 221.§5. 221,123 .............................. 221.00. a,'e Mr. Gerald R. Daniels. Acting Assistant Chief, Onshore Fluid Minerals llivision; Mr. C. J. Curlis, Office of the . Deputy Minerals Manager for Oil and Gus, Norlh Central Region; Mr. Frank A. Salwerowicz, Deputy Minerals Manager for Oil and Cas, Central Region; Mr. Thomas E. Godfrey, Acling Dialricl Supervisor. ]at:kson, Mississippi; Mr. Raymond W. Vinyard, Drilling Unit Supervisor, Tulsa, Oklahoma: and Mr. Slcphen H. Specter. Onshore FlUid Minerals Division, assisted by the of the Solicitor. The Minernl~ Management Servfl;e'~ (MhlS) predecessor, the Conservation Division of Ihs U.S. Ceologicnl Survey. published fi,eau regulation, {JU l'rulmm:d litJlt'rnaking (m Novmnlmr 17, 19ltl (41} FR 5~51M}. Comments wcre invilcd for 30 days and. in response Io severnl pt:liliona, were extended f,,r an l~}{S2. ~oilllliUlll8 Wel'tl rt:t:tfivcd [l't}lll 44 ' Selmrale antilles and imhvidunls. inchJding Z from oil and gas imluslry aasociations, 23 from oil and gas lessees and operah)rs, 0 from Indian Tribes and . by the.reservation of specific numbers in the regulations without explanation of future uso. The Federal Regisler "' recommend~ the listing of any number col used, and it has been deemed ' desirable to set apart general categories · o[ the rules. With regard to current royally requirements, this rulemaking reslale~ the porliona of provisions whi~ rchslu to royally requirements, without change, except to renumber them beginning wilh ~ 221,1ffi. It la anticipated that eventually royalty requirements for all leased commodities will utilize Ihs same numbering within z, pi~ii(;able purls of the regul.lions of the MMS. This numbering change also ri:suited in other section number clmnac, from those In propt)s~d rulemaking. - For the convenience of lundeen and operators and Ihs public, the followln8 clmrl shows lho old nnd new royally ~m;li(m iitlmbur8; 271.100 ................................ 221.12. ~'~1.101 ,..~. ............ ; ......~21.h3. . .. rules. Therefore, 11 is determined thai these references should be c¢)nlinued as · they were shown in Ihs Final Rulemaking of December 1, 1981 {4§ FR 58304}. That final rulemukin8 als() added the references to the Nalional Petroleum Reserve-Alaska {NPR-A} to Part 221. Comments were inviled concerning decision not lo promulgute u scparale part of Ihs CFR for NPR-A operuti,ms. even thou8h leasing would be under separale authorily. Only one conlmenl~r 'specifically addressed this point, and the comment s0pported the'singh: opt:rating rcgululion concept. 'i'ht:ref.re. no change is made. · EigIil of Ihs Linowes Commissi,,n re{:ommendltlions uddrussl:d puinh, which had already been considered in Ibis rulemuking. Changes In the .proposed rules have been made fur 'clarification and to focus more specificully on these eight l,inow, es '- .... recommendulitms. One of Ihese recommendation~ {Production start.up noliricallon) would require lhe lessee !o notify tbs Department of new product~ue atari-up: Wording has been added 1o The proposed rulenmkin~; omitted any reference to the naval petroleum reserves or the jurisdiction of the : · Department of Energy {DOE}. Since these regulations could be incorporated by reference by DOE, it was originally ' -deemed inappropriate Io reference DOE authority herein. However, Ihs Director, Naval Petroleum and Oil Shale Reseme, has requested that the references Io both naval pelroleum reserves and the Secretary of Energy be rcinserted for Ih~ presenl lime. The Adminislralion is -. proposing h:gislulion which would lransl'er the imwd petroleum reserves lo the jurisdiction of the St:crelary of the Interior. In view thereof, further . .' ' responsibllily for the oil anti gas '- operaliorm on the naw,! pelrolet, m reserves is still uncertain and evenlually may be. more directly subject to lhese Federal Reg~lei' / Vol.' 47.''-~',. 208 / Wl:dm:sday, Oct0bdr 27, 19132 'des and ReRulalions 47759 § 221.32(c} lo require notice of new .: ' violations while providing for initiation Tbs request to wilhhoid MMS production 8turl-up. This allows of action by MMS. .- . ~q)l)rovM of all document8 submitted by , ~l)ccifics, such as time frames and . Cooper~live ~greemenl~ with ~lole8 operslo~ unlil concu~ence of Ihs : Indian owner i~ oblained ia a mark~ melhod of nolificatiom Io be deluiled in :" :. ~nd lndia~ Tribes for pu~ses of ::'" .applicable ordcra or helices. ' hmpcglion, uudils, and Iraini~ wc~ .. dep~rtu~ from pas1 policy. Consideri~ A ~econd recomm~ndslion ~lso advocated by the ~mmis~ion~. Ihs hundmd~ of ~quired concurrences, {Verificalion of production and sales] Although m)operalive ~greRments esp~ially on alloUed Indian }and~ suNgusted that well test d~l~, run tickets, / relulJng to these topic~ and technical MMS hesitate~ at present Io ~dopt ~uch ~nd ~ meter ~adinge be obtained ussislmme ~re an ongoing p~cese and ". a course election ein~ futu~ on ~ ~ample basis. Well test data arc in some instances may require specific operations could.be parolyzed while' · rmluired under ~ ~1.~ and the . .stalulory aulho~ty, la.usgs has ~en atlempting to oblain ~ncu~ence. I~nguage has been expanded to-specify '. added in [ 221A1 {Reducibility of ihs The following vo~ent~ are qu.nlily as well as qualily. In ~ 221,36{c} Depuly Minerals Manager} Io provide under the ~eclion of the proposed (l,~un tickets}, specific procedures have b,:cn eliminaled antl replaced wilh a sldlcmenl lhul run lickels must be c.mph:ted in accordance with iq,ldic~ble notices and orders. 'l'tlis .lh,ws flexibility in de.ling with the difh'rin8 situalions on Federal hnd lmli.n leases while being more in... keeping with lbs needs of a general Ihs DMM's with some aulhority and ,,, regulation Io which they relate. responsibility lo provide technic, al Aulhority 'advice and information and Io negotiate . · and consummate cooperative - .. '- .. One e~ommenter staled thai the agreemenls, authorities should be expanded to A number of comments suggested that include all environmenlal laws which recurtLs be made available lo the- .. control operations on an oil and gas Indians. whelher Tribes, owners, . - lease. While we agree that operations ' lessors, or individual aliotlees. Further. on a leasehold are subjecl to laws such ruh:making. Refinements of an existing' halite are expected to be promulgated shorlly by MMS in the form of a revised notice or order. With regard to rile security, the Commission recorn, mended eliminalion of dclailed ~gulalo~ requi~ments ~nd .dvoc~ted placing ~s~nsihi~ly for ~ite sct:urily on ihs lessee through a lessee- prepared site security plan. Several seclions of the proposed rulemaking d(:dll with aspects of sile security, and, where necessary, changes have been ma~h~ I. reflecl the Commission's ~h:clion 22~ (General requiremenls} now specifies ~al Ihs lessee is responsible far-site securily, while ~ 2gl.32 IWell records and reporlsJ now requires schematic diagrams Io be mainlained by the operalor. As cmollary, ~ ~I.M [Measurement of oilJ ami f 22~.~5 (Measurement of gas] have In:ca expended !o include submission of , st:ht:malic diagram wilhin 30 days im~ldlhilion or modification of facililies. 'i'o emphasize ~ile securily, a new ~ 221.37 [Sil~ securily] has been added ami lhe elements of the proposed rich:making which misled Io se,Is im:l,ded wiihin this general scclion. '1'~-, of the seven Commission r~rommendalions concerning cnhn'cemenl of regulations are implemenled in this ndcmaking. These - two rucummendaliuns suggesl lh~l ,hut- in t~ulhorily bo used In eases of sih. uecurity noncompliance and thai the Sccsel,sry pur~ue lease c~ncellalion if ne~:t:ssary. Section 221.~1 [now 221.51} n,w slmcifi~ally ~uthorizes Ih~ Supervisor 1o order a well or uperalions shul.in for regaled instances of l.oneompliance, and ~ ~l.fi2 (now ~ g21.53J emphasizes the ~urelary's alhorily Io canal ~ases for many of the commentera requested that the MMS send copies of each document directly to the Indian owner to assure thal they receive records of all acliooa laken, and further, that no action be taken unlil the Indian owner has concurred. The MMS has not ~tlopled th~se auggesli~mS for inclusion in the oil and gas otmraling regulations. Since these regulalions apply to the preferments of work on oil and gus leases and Io the as the National Hisloric Preservation ' ' ' - Act,'the Endangered Species Act, the "". ":/~5':,i:i . ~'~" WaterClean Water ACt.mentionand the Safe Drtnki-ngdo Act, to only a few, we '..._ il ..... '. ':'not believe they are the statutory :. :- authortUe~ forpromu]gating these . : .~.. · general provisions of § § 221.20, 221.23 and 221,30. the National F, nvlronmentaI .... -,':'.. Policy Act of 11~19 is ciled as an authority. All other applicable laws must al~o be complied with and are exercise of Ihs Secretory of Ihu Interior's ..generally cited aa sllpulatlons Io the Irusl rusponsiblily to supu~ise those lease. olier~lions on behalf of the ~diun'~ Definitions. I~cfion interest, inclusion of policy mullein ~ud~ as Ihose requesled by the commenlera The aeparalion of fie ~S from the would be out of place. Su~ matte~ USGS tesullud in ~a~es in lilies and would bu belier ad~essed by di~clives · r~alignmenl of some duliem For such as the Minerals Management pareses of ~is definition aeolian, this _Service o~ratio~ manual or specific change ~d a previous reoraanizalion inslrucliona, are both referred Io us "the The MMS will gontinuu the tLS. ' rnoranni~lJon." Because of ~hnnaes in {;~ologirdd Su~uy'a [U~S} policy of ·ulphabeU~! order of lbo definitions muinlainin8 ~omplule openness of its gaused by changes, additions, and files and record~ lo any aulh,fized dulotionJ, the definitions are now lislud r~:l)re~tmlnlive Of lin lndi.n Trilm or ' wilhout any Individual deai~lion lmli.n Allollee. 'l'hese are ~vuiluble for .[.~, [bJ, ~t~J a~ Ihey appeared in examination al any of the MMS field offices. I lowever, we hope thai requests for such data will be kept within reasonable bounds since many of the older records cover louse ]fislories of 50 or more years and have been archivgd,. .nd relrieval and/or reproduction may be time-consuming and expensive, ~e MMS also will c.nttnue past policy of providin8 documenl~ ~rtainin8 !o oper. lions on Indium oil and 8as lease~ Io Ihu appropriale Superinlendenl'~ office of the Bureau of Indian Affaim [BIA} since lhese office~ are more convenienl Io Ibc Indian le~sor, or owner, and the BIA has a more lhomuah knowledge of Ihs lo~tion and aulhorily of Ihs varioud ~lbal en~tie~. ~ · . proposed rulemukir~, Additional definitions appear at the end of this discussion. If no commenls were received concerning the definilion as · published for comment, no change was made in lhe definition as proposed. Conse~ution Manager. Due lo the reo~anjzntlon, Ibc Uric i~ now "Minerals Munuger." ' Deputy Conservation Manager {~M). ~e lo the reo~aniz~lion, the lille now sppca~ as "Deputy Minerals Manager (DAIM]. "Several nommenters ' ' r ~(luested'lhat ch.nges be made which .' will limit the DMM's approval authority for conl~ctual ag~ements to those involving F~eral le~e~ [nol Indi~; .nd further limit ,uch ,ulhoril~ lO~ '.- C ~ I V ~' ~'. ":);~' ~l::~,=:~:;~ O~l ,:-~ ~as C~rts. C0~,~15~ 4776O MI 'Vol. 47, No. 208 [ Wednesday,-Oclobl % ·1982 [ Rules and Regulations Il . II .L_ l_ Il_ I II Il I I Federal Reglste agreements between thc Government' and Ihs lessees and ual Io agreemenls between lessees and/or operators. We agree that the DM/vl's authoritY [or approval of contraclual agreements Is limted to only Federal lands {not lndiaq}. However, we do not specfically. limit the.authority of the DMM with respect to agreements belween lessees and/or operators since such authority never eaxtended to those types o/ agreements, nor is there any intent herein to so exlend thai authorily. Designated Operalor or A3,ent. Two commenlers requested definition of the difference between desisnaled operator and designated agent. We agree that the two tot,ns in common usage cause confusion and therefore we have dropped "or Agent" from the definition. No other changes were made. Director. The reorganization created the position of Director, Minerals Management Service, which is now the applicable definition of "Director." The definition formerly meant Director, U.S. Geological Survey. Dislrict Supervisor/Supervisor]. The only revision in this definition is to change DCM to DMM in the body o/the lexl. Two commencers comidainud about confusion introduced by referring to the officer in charge o1' a district office as "thc Supervisor" when the term "Supervisor," which appears in leases and olher regulations, refers to a differenl officer with differing aulhorily and responsibility. 1 iowever, recommendations anti comments by Ihs Linowes Commission, which hdve been adopted by the Secretary, prescribe separation of some of thc duties - perfrSrmcd by the previously designated "Supervisor" as that lille appears in leases and olher regulations. The redefinition of officers and duties appearing in this rulemaklng implemenls thai decision. Lease. several commencers recommended defining Ihs lerm more broadly to include both Federal and Indian h:ases. Clarifying changes have been made. Notice to Lessees and Operators 0NFrL}. Two commencers suggested that the definition be changed to provide an opportunity for comment before issuance of NTL's. This change has been made in § 221,15, {.)il, Alii.rash no COillilll:ill5 wi,'rt; recuiw:d. Ihs d.finiliou h.~ bm.'u revised to inuorpor;lte Ihs shllul°ry tidilnlliol~ contained in Ihs Combined 1 lydroc, rbon Leasing ,Act of NOvumlmr ltl. lgBI. This dcl'inifi~m wus l.'opoaed by a separale rulcmaking publish.d in Ihs Federal Register of May 12, 19112 (47 FR 20,324 }. Operator. No cOmments; only editorial changes muds for clarity. Paying welL Several comments were received on this definition. SOme of the com,nenlers felt lhut the definition was Ioo restrictive while others felt it was too broad. After careful consideration, the definition was not allered except for minor editorial changes. This basic definition has served adequately for ' many years. For additional clarification and consistency of terms, a separate dcfinilion of "Production in paying ' quantilies" has now beach provided. Waste of oil or sas. A single comment was received concerning the phrase "sanctioned by the Supervisor" and recommending that the Supervisor approve all such actions. The requested change-was not made. Currently, the Supervisor may accept actions taken by State regulatory agencies without Ihs need for formal approvals. Accordingly, the word "sanctioned" is believed to be appropriale. · Additions to the definition section {§ 221.2} resulled from comments requesting further clarification or from ' the reorganization. Additions are listed in Iheir proper alphabetical order for inclusion in this final rulemakin8. A ssocia te Diredtor for Royalty Management. Thereorganizalion . established Ihb new position which has authority and responsibility for royalty management functions formerly purformed by the Supervisor. : Fresh waler. Since MMS is responsible for protecting fresh water as well as protecting usable water as -.. required by other regulatiOns, we believed it.advisable Io define "fresh" other lransfcrs which may not be technically sales. The final phrase has been omitted from the senlence. Several commenters reiterated lhe proposal originally made in comments on the Notice of Intent, Ia change the filing lime on both forms 9-330 and 9- 331 from '15 days to 30 days following complelion. In. considering this request, ' the recommendation of the Linowes Commission Io require a notice of new production start-up was also evaluated. It ha,, been determined lhat when adopled together, Ihese two changes will provide the Supervisor a porlion of · the required lnl'ormation immediutely and allow Ihe lessee an additional 15 d,ya to provide the remainder of the date. The proposed rulemakln8 specifically requested comments on the information ' gathering requirements of the ." regulations which do not require the '. filing of specific forms. We received no "comments specifically directed to these "requirements. We have included a · separate portion of § 221.2-1 which refers Ia the information collection requirements contained in the various seclions of Fart 221 which do not call for forms. The information collection approval data is listed Icier in this preamble. .. recovery. Several commencers requested a definition of this term. That definition is provided. , . .'". ' Information collection. JSomion 221.2-1] Allhough this rulemaklng does not' revise any of the royally requiremenls, It does restate all existing royally requirements to avoid a lapse in the -' r.les governing the collection of rents and royalties. As a result, the forms for - royalty accounting are included in this seciion. A third royally accounting form i~ lisl0d which ha~ been ad0pl~d for ll.m. cases lransforred It) the Royalty Accotmlh~g Cenler, la~kewoo'd, Colorado, and consolidates two previous forms. It will eventually be used by all oil and gas payor,, ht tho'"' juslificution statement for the royalty accounting forms, one commenler recommended that the word "sales" may be too limiting lo include royalty on Jurl~tlction. [Section 221.10] ' .:' ... One commenler suggested that . authorily to supervise their own oil and · gas operations be delegated to the .' ~.~.. · Indian Tribes. The suggestion is not ' . adoplod as it is current policy that ihs :' Secretary's auihorily is now vesled in '' water as walor containing loss Ihan ' 1,ooo p.p.m./t.d.s., and other usable .' "'the MMS, and these rules reflecl the , waters as prescribed by NTI.,-2B. ' ' existing policy. Further discussion of '.. · :. Maximum ultimdte economic m'erits of the suggestion will be --.' '.:..": continued with those Tribes expressing' .' i' ' interest in such a policy. "' :': Tho only other comment suggested that the laws affecting Indian land , · leasing be cited in the "Authority · Section" so that violations of 25 CFR Part 171 are also violations of~ CFR . . · Part 221. The citalions under - "Authority" beginning with 25 U.S.C. ard the appropriate citations of existing law .. pertaining Io Indian lands insofar a~ ws can determine. However. we believe tbs regulnlions in Tills Z5 CFR and Tills 30 CFR pcrlalning lo oil .nd gas lo.sing und opt~rillhms can un(I should he .' mutually exclusive Ih(~ugh complementary for Ihs mo~l pad u~ the rcsponsibilily for their administrathm i~ vesled in different Ag.holes. la lhose ureas wheys they do overlap or conflict. one or the olher should prevail as is prescribed in 30 CFR 221.71. aa, .o l"oderal Regislor / \ 47. No. 208 / Wednesday, Oclob(:r 27, ,,a82 /'RUles and Regulalions 47761 ....... -__' · _ ' ~ '~___ - _ ' _ _ ~l_~& _ _1 _ _1 ! · - ~ _ :~' :_:__~£~.L.___ ' · ' _ t"_'~.~. _ ' '" ___L ' , _ ~_. ,, , ~ u i __ _ - -~ - - - Responsibility of tho DMM. [Section · One cornmenler suggt:sled that the ald~reviation "DCM" be spelled oul at. leaM once. We agree and have revised the heading. Several commentate advised that the DMM's authorily approve t:erla in forms ! agr(:emen ts on bt:half of the Department of the Interior should be limiled to those involving Federal oil and gas leases and should hal include authority lo approve ,g~eemems involving italian oil and gas leases as th,t authority is vested in Ihs Bureau of indian Aflairs. We agree and h,ve made the appropriate changes. Two commenlers su~esled Ih0t the dt:legqlion of authority lo the DMM lo ,pprove gu~ storage agreemenls is apl~ropriate, bul Ihal il confliul~ with 43 CFR 31~.~1 which provides that slomge agreements be approved by Ihs Scc,'etary of Ihs Interior. They suggested lhat the "conflicts" provision. 30 CFR ~21.71. clearly prescribe thai insofar as - operalional matters are concerned that 3o CFR Part 221 will prevail in Ihs even( of con,icl. We agree and have made approl)ri,,te chanBc. Several commenlerS questioned Ihs meaning of the word "assess" as used in conneclion with cumpensato~ royalty. They proposed several resotulion~ of the perceived problem with the lerminology. ,md one ~u~esled thai the Asaociale l)irectur for Royalty Management be rCslmnsib~.e for assessment. We believe tim lerm "assess" is pmpbr and 3hat it ,pplies l~o the percentage of producliun from a well or wells on offsetting properly which represents a los~ of prmluction from drainage from the leased hsd. We al~o believe that the - ' I)MM is the responsible officer for ' making Ihs assessment. The pricing ' prt~v~sim~s applicahle lo regular lauds:lion will be employed by the . Associate Director for Royally hl.~h~gem,ml in computing and ~:,lhu:ling the imynn:nl due.. One commenldr suggesled a lime certain filing requirements be cstablishml for unil communilization agreements {i.e., ~ d,ys before the expiraliun date of Ihs primary term of the first involved leaseJ. While we agree that the principle involved might in,reuse efficiency of processing Ihese agreen~enls, we do not believe this type of detail belongs in the regulations and have not made the requested change. If "llth hour" agreement filings are burdening all Idfice~ In the degree that they are inh:rfering with pro~gsh~g of more thm:ly filed agreements, it may become necessary lo correct the Mhmtiun via operating order. , . . q'wo commenlers suggested that local NTl,'s-(Notices lo Lessees and Operators) eel be issued unlil after they have iicen published with an 9pporhmily for comment since lhey perceive that additional ~porting burdens or other requirements may be imposed. We agree that new notices will not be issued wilhoul opportunity for coulmenl. M.ny commen~ers objected Io provision in the propo, ed regulations pertaining to exploration and devchqm~ent contracts for restricted Indian lands, i.e., proposed aa ~ ~1.~2. We agree with the comments and have d}deled ~ 221.72. Also, the Commission recommended closer' cooperation ~ith ~dian Thee, State . governments, and other Federal Ages;les. In view of the forego~g, we have added a provision to ! ~1.11 previously existing in 30 CFR Part 221. The royally provisions have been retained but renumbered commencing with § 221.'100. }lowever, since the ' . duties formerly performed by the Conservation Division of the USGS have been transferred to the hIMS with a -. realignment al duties, we believe it is important lo change tim royalty provisions to reflect the responsibility now vested in the Associate Director for Royally Management. .. Because or this change, we have . added a section, i.e., § 221.13, to ' describe the duties of this newly ~: ...:,"' ".:" - .. designated officer and the , ..-corresponding reduction in ' ..... '.'- responsibility of the Supervisor. Many .' :{ .- .... · ;. leases still Indicate that these duties.are ,..' · . performed by the Supervisor. ' ' . In some cases, sections of the ·. :.'?- which assigns responsibility to the "- . ' ' previous edition of the regulations : '. '" DMM for providing technical ' contained both operational and royalty . :. information and advice relative to oil accounting'provisions. The operations! -: and gas exploration and development . !i'.. aspects are included In this rulemaking control:ts and for negotiating and ~. and revised. The royalty p~-ovislons will ' ·' :' entering into cooperative agreements · stand as written In the previous edition ' .- wilh the SI.res, other Federal Agencies, of the regulations bul will be - . .. ".!-: and wilh Indian Tribes. "' :.. renumber'ed, the appropriale officer · - Responsibility of Iho $uporvisor. ... designated, and the operalional . - - ISection 221.12]- : , . . provisions deleted. ; '. ' ... - One commenler requested that the ' ' i".:' Onshore otl and gas orders. ISectJon ' . ' ' ", :i: royally pti)vlsi(ms enumerated in Z21.13] various edilions of lease terms and Only one comment was received n:gulations bc continued as the ~ regarding the oil and gus orders section responsibility of the Supervisor. Another {now § 221.141, and it suggested joint .. - commenter suggesled that the lille be authority be 8ivan the Director. Office of - ' fully spelled out as District Supervisor to avoid confusion with past regulations and lease terms. We acknowledge that · some confusion ts probably engendered · by the appearance of the samo title with differing meanings in different .documenls. floweret, we believe that· 118 I,I,q;IgC IJe¢:omes nlore common, the confusion or problems will abate. Also. thi, rah;making does not Involve royalty ne,liars. The royalty provisions are renambercd starting with § 221.100 and - revised to sho~ Ihs Associate altec!or . . Trust Responsibilities [of the Bureau of Indian Affairs}, in approving Orders thai apply to Indian lands. We do not agree 'i :':"' . .... thai such joint authority should be ' eslablished by regulation. Most ordera :': which apply lo Indian lands will.also. ' ' ' .." :...:: · apply Ia Federal lands which have four to live times the volume of operations. The MMS will certainly seek the advice and cooperation of the Director. Offi~ of Trust Responsibility, in drafting and completing operating orders, but believes final authorily and . for Royalty Managt:menl as the - responsible officer. Two uommenters suggested deletion' of similar language appearing at § § 221.12. 221.20, and 221.22 concerning environm,nlal protection and maximum recovery, We agree thai the language was repeated too often and have deleted it from § 221.-"-2. Ilowever~ we believe it. lB important to retain the language In barb § 221.12 and § 2,2,1.20. Responsibility of the Asset-lets Director for Royally Management. [Se~tlon These regulations did hal propose changing any of the royalty provisions other Agency. The authority and responsibility to supervise operations is vested in the MMS. The MMS plans to Isgue opur8tln~ orders as soon as posqlble after these resolutions become final. Each order, · will be published In the Federal Register ' for comment before issuance in final form. The operating orders will aervi~ as '~ tht~ muln vehicle for dutailln8 how these ' operating regulations will be implemented. Until such time aa operating orders can be completed. Ihus · superseding or cancellin8 the existing NTLs, It will be necessary lo maintain rcsponsibilily must rest with one or the - ,' . . . ~ o, 47762 Federal Rag; ] Vol. 47, No. 200 ! wednesday, Oct r 27, '1982 ! Rules and Regulations all current Notices to Lessees and Olmralors in effecl. Notices'to lassoer, and olh.r implementing prm. mduro,. IS.clion ~z.~Sl Several commenters expressed concern about fulure Nolices lo LeSsees and Operators, their extent, the oHioers aulhorized to issue them, and Ihs melho~s of issuanm~. We have added Drilling and producing obligations. ISoction 221,22] Several comments suggested that the :'g.mmd doscriplion of the ]essee's drilling and producing obligations in tho proposed § 221.2.2[a) was identical !o Similar language In other seclions. We agree that there was duplication in the .language and that the language, as proposed, was not consislenl with lease terms relating to the lessee's drilling and this section in response to those producing obligations. Accordingly, the comments and to advise that: (1} Thc ' enlire section has been,$evised to DMM may only issue NTI.,~ after some eliminate duplication and for form of notice and opportunity for consislency with the. applicable lease comment hy directly affected parties; {2} provisions. ' all existing NTLs will remain in effect until superseded or cancelled; and (3} With regard t° proposed § 221.22 (b}:" internal guidance within MMS will be and (c}, several comments suggested · that language be Included to provide the included in the operations manual or ':' lessee an opportunity to submit . .'. other written instructions. 'evidence showing that drainage is not General requirements, lSoction 221.20] .' occurring under a specific lease. · The term "site securily' was added 1o - Language has been included tO clarify and emphasize lhat sile sccurily - accomplish this. Suggestions were also of leasehold production is a general . .. made Ihat language be added to specify responsibility of the lessee. TI,is is In ". Ihs economic r~uirements lhat apply in accord with the recom~ncndalion of the determining whether compensatory Linowes Commission regarding site · royally Is assessed. These criteria are . considered Internal and this are not security, appropriate for Inclusion in the Included In applicable orders and notices. It wa8 suggested that § 221.23{d} be modified to allow the Supervisor Io '." approve necessary changes in drilling plan as needed. This was done· Language was also included !o permit an applicant to submit a drilling plan for a single well o'r for several wells to be drilled to the same zone in a field or area of geologic and environmental similarity. An individual application for each wall would still be required. Since a drlllin, g plan Is one element of an applicatlor{, It was deemed advisable to revs{se paragraphs id} and is}. Several suggestions were made regarding modifications of the "30-day" period proposed In § 221.23[e}, Several . commentate Interpreted this provision as precluding processing in less than 30 days. This was not the intention of the proposed provislon; 11 has therefore been revised for clarlly. Operators · should be aware that applications submitted less than 30 days before ' desired commencement of operation might not be completely processed in. '.. that time frame. ~ Section § 221.23(!] received a wide spectrum of comments requesting both Conduct of operations. [Section 2,21,211 regulations. - :...::. :. .. shorlening and lengthening Ihs 3a-day Several comments suggested that .'-Drilling applications and plans. [Section. approval period. Since efforts are now cum;nt requlremenls for designation 'of '" 221.2.-1] ...;- ..!:.:. underway to streamline APD processing an operator be simplified and bo.d .':- '":':: :" - :; and It is unllclpated that improvements coverage correlaled lherewilh. Bond . · Two comments 'suggested Ihs! . will be forthcoming. 11 was decided lhal coverage must be provided for each '~ .§ 221.23{a) be clarified to recognize the § 2z1.23{1] as proposed la reasonable operation both on Federal and Indian relalionshlp between Stale spacing and was only slightly modified for' leases. However, current BLM regulation orders and the Federal jurisdiction on clarity at this time. .. in 43 CFR Part 3104 app]icable to Indian lands and to include a reference Federal leases do not authorize a to field rules. Changes were made to Well identification. [Section 221.241. designated operator to provide such accommodate these soggestions. A . · One ~uggestio'n was made that the bond. Modification of thc appropriate suggestion thai language be included to : requirement for s marlcer on abandoned provisions of 43 CFR Croup 3100 has waive archeologicai clearance unless a .' wells be clarified, and this has been. been recommended ~o allow operators proposed well is within a designated ' done. One comment suggested either to {1} submit a "designation of archeolo, giuaI site was not adopted eliminating all markers on abandoned operator" form where bond coverage is . ' because such procedure is not in accord., wells. However, since many markers I,rovide. d by the lessee{s} or approved wilh the applicab]e departmental now waived, this requirement is ~ot huhlcr{s} el' operating rib;hts, or {2} regulations, 30 CFR Chapter VIII. - considered unduly burdensome. . submit a letter certifying that the Section 221.23{c} was rewritten for Control of wells. [,~ctlon 22~.251 h;ssee{s} of record agrees lo the clarity. It was suggested that an designalion ,nd to having bond ' ' operator may stake a location at the several comments suggested that the coverage provided by such desigmded lime of filing a preliminary requirement in t 221.25(b} for reporting operator. Evidence of actual notice to all environmental review. This was not' well deviation in excess of 6' was too lessees of record would be required. We ' considered appropriate since such detail restrictive. We.agree, and the , will continue to work with BtM in is more appropriate in an operating requirement has been increased to 10'~' seeking this modification, order, tlowever, consideration is still, and also made dependent upon Ihs A few commenls suggosh:d th,! u being given to the susg0ation In other ' Io~ollon of tho belles hole well localion copy of uny order, lnulruction, or notice streamlining efforts, In relation to the spacing unit or lease specific lo a lease be mulled to the Seven cam,ne, elate stated that some Of boundary. h:sseeis} us well as delivered to the the items detailed in § 221.23{d} wer~ Two comments sug8ested that in local representative. We agree with this unnecessary or Inappropriate for § 221.25{d} "fresh water" be defined or suggeslidn and have lmpl'emonted it. inclusion in regulations. We agree, and . clarified, This suggestion.wes adopted Scctmn "..21.2I was also revised for Ibis s,ction wt~8 modified to inciddo' 'by adding "fresh water" in the editorial clarity and io specify th.l any only Ihs principal operational and Definition~ mecllon and also adding contractor served a halite or order is the m~vironmental items in the drilling plan.' language to clarify Ihal usable water up party responsible for the parlieuh,r Details concerning the actual Items Io 5,000 ppm of total dissolved solid~ activity involved In Ihs holies, which must be included in the plan are to be protecled. Several comments · . l Federal Regisl(;r [ Vol., '40. 2[)ii / Wednesday, October 27, 198;. Rules and l;',egulalions i ~ _ _ ~ ] : j ] ...... = ,__ ., ~. ~ .... __... ,. . , Il - :1 st~);Ro, st(;d that the requiremenl for tests : requir~iments. Paragraph (a} lisle the of lite cffecliveness of prt)h:clive :types of well operations requiring both nte,surt:s be clurilied and expressed prior ,i)t)rowtl and a eubsetluen[ reporL' concern that lesls are mandy, led i)y - 'Paragraph {b} ]isis operations which presen! language. 'Tesls ,re m)l dn not require prior approval bul do mandaled bul m~y be requesled by the · require eubsequenl reporls, and Supervisor when conditions diclate. ! iistorically, such requested lesls have been infrequent, and no change is expected. The words "and surveys" were added to clarify thal ~ well survey such as a cement bond log mighl bu ,ppropriately requested !o verify is,hi[ion of fresh waler or mira:rule. Samples, lasts, and surveys, lsection p,rugraph [c) lists the types of opera lions requiring no report "OIher lease oper0tlone. [Beclion 221.Z8] · ' Suction 221.213 was clarified by adding a reference lo § § 22'1.23 {drilling lo approve operallons Io cnn[tel ,nd remove i)ollulanls. These are lechnicul · aclJone fully wilhin Ihe scope of lhese . opcraling regulations. Accordingly, lhe requested change has eel been made. Well records and reports. [Section zz~ZZl . The Linowes Commissifn recommendolions relating to Ihe need for schemalic fscility diagrams and notiCes of initial well production have operations} and 221.27 (subsequent well ' been adopted. op(:r;~lions}. ~"'_- A aural)er ofcomment~ euggesled ' :.. ediforiul Chunges. Changee have been "~ -' made lo clarify the section as requested,' Conndontiallty. [S~tion'ZZl.aa,.l"...'.. ' ii: · The mujorily of the c~mmeniers . - ' - m.dified 1o require thai such h:sls, lilld surveys I)e al Ihu exp(:fls(:. ~ requircmenl Ihill Ihe It:user Imar no expense was included in Ihe pre.~ ices toga]aliens for ninny wilh lillle, if any. objeglions or abuse. Tiffs su~estion was nth adtq)led l,m,use ¢he lessee is ami sh,uhl Ii,hie Io show thai his Ol,eralions ,re in . n,fhmls lhu lc,se lerms. Std~SCtluunt well oporallons.'lSoclkm A numlmr of comments su~:sl~d Ihat ~ 221.27 be ~larifietl lo holler define Ihe Nmcil'i~ lypea of operulion perlin~nl e,ch ruporling requirement. This suggestion was adopted by ulilizing ~cln,r~l~ paragr,phs Io Iisi lhe well Ol,:r, lion$ has'lng Ihe same r~porlin8 w~,rd "reasonably" be added lo Ibc first de(:ision lo .Imndon ehould be the eole :' , ............. ,.._ ,__'_.__,0 · :: , - . . - 'ano como aoverscly iJJ/uGi tile JcuBl~,e . scnl~nce of ~ 221.~[a} and lhal Ihe time . province of lhe lessee. ~s concept was~ comp~lilive posilion u'nd resell in lhe ~'-/.'/=?:~:~('~.:.:':~:~ of lesling be al the opur, lor's discretion ' not adopted because the Supervm~r i~ ' ' ........ i wells W, ' :: ;':' ' ':"' .... ' ' , . . . ' Orllllng el le~r exploral on . u '..':':;':':..-,~/:.~ q his serilenoe has been moddmd lo rcsl)onsdAe for maximum ultinmlo - '" ' ........ ," 'i ..... ':';'" ~nclude reasonably and to clarify Ilia{ : economic recover, ns defined. One -':':< ' . - . ........ v, "' durinR the drilling and coml)lelion ora ': : re(luiremenla~e more explicit. This was ? ...... ~ ., p .... 8 .. ... pr()po~ed rule w,~ dulelo(l.'l'h~ ~ ~' :are defined in uppropri~le nolic~ and :' , . ~ ~ ,' '. r~:qmn:menla of pur,gr, ph {!)} for oral,tm "- ' - :'" . ........ ' ::'.'< ., , ' Envm)nnmnlal obhg~lmn~. Isectmn .. ' for Indian lends. 8om~ or lheae - · .-..~:::-?.:-:..:: :'.:. s,,r,grapn to}. : 221 301 ' "":' commenlor~ were disturbed that ' ' '?'"c">:]~ ]=:''.: ~-'; '',~ Several comments sug~esled Ih,! " ' ' ' ;" "";' - ' "'an 'and 1~ no : paragraph {c} be made more explicil or ' Several comment~ were received ':" :: .... inlo~hon.~n lndi I _ 8 _ I.... d,h:led because of II~e puhmlial for ' ".concerning Ihe environmenlal ,...:]'..SLailaOl~ un,er lh~ Fr?do~ ~f :. d,n,,g(: lo the well Il.re m,! aSa,lei,led ' ': ol)ligafi,n~ c,ntuined in proposed -~ :-( .:-~lnlormaljo~ Acl. The A~TocmL~ "...' ::::.],~:-..?~ h:gul r, mificntions, l)aragrul)h {c] Ires :: :' t ~z~.ao{,,). 'rhu~u commenl$ were' '": :'": S~li?tRr. Dsyi~lon of Indmn ~lI~l~. ha~,.:.:. been deleled. . ' "'. divided between tho~e who desired thai ' odwsed us that our proposal m. -, ;,. ,'..,:.,-.:.;.V':.] A new paragr, ph was added as a :~ ' addilionM environmental consuilalions ]' I 221.aa{c} aa wHited'was owrly ':.. :: .:]' :' ,.,,~,m ofon~ suggeslion nad h) ~o,,form .wid~ other interested parties be required r, tricUve, a~d it h3$ noV b~en '~ ..]..~]'.'?.~ ~,) a recommendation of fl;e l,inowes :through r(:Rulutions and those who . ' modified to ~how that only' confj~ntial C-mmission~This paragraph, now "desired, relaxing of ~ome of the : '.: nnd privileged" ipformalion wo~ld be. ] ~ 221.20{b} provides thai [he lessee " ruquiremenls. II was delermined {hal the'"': wilhheld. Several commenter~ also. : .' ' · . ' · · . ~ · .- ,' . · . . (:onducl pcnodm represenlalive well prov~smn~ of t'2~1.30{a), aa proposed,. -. ~. suggested lhal $pecffm reqmrements be . h~sls in accord wilh applic~d~le orders were adequate as written and thai :/...added for handling geological, · .,,d notices. Such lesta ,,re c.mmonly ' ' specific instructions would be i.ued by .)". geophysical, or other privileged or '... t~ken pursuant !o standard induslry means oforders and notices ' ; ;' confidenliut information oblained from Ar('ordingly only edilorlul ~hanRea for:/.: 'oulside the bodndarics of Ibc l~aae. This pr;~clice .... ~ ..... . ... . ,. ~wt, rul comnmn~s suggested thai tim s,ke of clarity have been made. ' ].; recommendation has been udopled..' .'; '... paragraph Id} {now p,r,gr, ph {c}} be Comments were received concerning .:' Me%uremont of o11. [Soclion 221~4J ' lhu requiremento of proposed ' ' ' '§ 221.:!0[c}. l'}.: requirenu;nle In Ibis " l:mragrlq)h arc general in nalure und all cummenters requested that addilionul -, del,ils be in,lulled for purpoge$ of :: ~ clarific, liun. The~ ~hang~s have eel ::.~ :~ been made sin~ N~aA ~ur~ntly .". '~ provides specific requirements ' com:~:rning the questions raised by these :' ~OIIHIH:III~, ~ few commen[$ were received 'c~mcurning lhe requiremnnl~ ~onltdn0d in in'el)CUed ~ 22'l.ao{d}. Two of the . .. ~ommenls concerned the relalionship i)elween lhe required contingency plan and I':PA's SPCC plans. This relalionship ': is clarifi~d in N'H~aA, and an SPCC plan will meet lhe requirements of .. proposed p,r,grnph {dj. A lhird ' comment recommended lhat Ihe BIA ~uperint~nd~nl b~ delegaled aulhorily Ih0 Indlun le~sor. The lechnic~sl review el' Ihu,e ~clmmutic~ i~ tully respon~lbiiily of the Supervisor, und no change in Ibis requiremenl hue been made. For clarity, a change was made ~ddressing when such schemulics will be required, Mcasuromoni of sas. ISocllon ?.21.35] "Suveral of tho commont~ con[turned . ... _ Ihe need fur l']exibility in approving .. -, allemate melhods for measurin8 crude ,. oil. We agree that MMS may wish Io. ' .' '.<~ iq}prove olher me,sur]ng syslem8 ]n Ihe future, and the reque~led change was '. · made. Other comments boncerned lbo . '-' and Ih. ruvl.w of .uch .ch~mulic, by ' A chnnge eimilar Io that made in "§ 2ZI,M bas been made Io allow Rules arid -47764- Federal Regist~ , Vol, 47, No..208 ! Wednesday, Octob. L7, 1982 / ~egmaL,ons ,i MMS to approve lhe use of turbine rulemaking. Because the interim rule has meters or other nmasuremenl systems. bec, n published, § 221.37 is om§tied from The requirement fur gas facility - this final rule. :/.:.?.... _: . schematic diagrams has also been Acts of noncompliance. [Section clarified. Several comments were. received concerning the change in ~'Several comments received on pressure base from 15.025 psis lo 14.73 § 221.00 {now § 221.50) expressed psis for reporting volumes of gas concern that remedies for acts of produced. This change has been in effect noncompliance as proposed are unduly r,,r several years {NTL-1 and NTL-1A}. . harsh if the lessee is not afforded an It only spree§lies the pressure base at opportunity to be heard and a which 8as production shall be reported; reasonable period of time In which to it docs not alhlr existing h:ase royalty comply. In response to these comments,' provisions. Other changes were a new paragraph 221.51{aJ"has been recommended and, where necessary for added to provide'for notice and clarity, were made. opportunily to be heard, and time for provision is also listed in § 221.116. It has been suggested that, because ., drilling without approval is a very ' serious offense and creales numerous problems for both the MMS and surface management agencies, the assessment of liquidated damages for this act df noncompliance should be levied each day of the noricompliance. In response to this suggestion, paragraph (c) has · been added to those assessments to be levied daily. Other changes have been made for clarily. In response !o commenl8 that the assessment for · - abandonment without approval should be equivalent to the assessment for - -- .-corrective action and/or to show cause - drilling without approval, or subsequent ' ' Disposition of production. [SeCtion before some remedies are imposed. One -... well work without approval, and that '. "::'i. 221.a6] :. of the comments suggested that the -. - the assessment for failure to maintain :i.:i.:' :.'::' Eighleen comments were received Immediate shutdown for environmental seals should eel be more than these '. ,:" .. '- concerning the proposed disp0silion of protection should be.changed from "may other assessments, we have made the '" production requirements. Many of the :' ' be taken" lo "shall be taken." Since the i'i .following changes: the assessment in. '.: comments requested that the .Supervisor is expected to exercise hl~ . paragraph {il has been raised to $250, '"':' requiremenls for run tickets be modified ' responsibilities with regard to '" and the assessment in paragraph {j) has .. and thal additional details be provided. ' environmental protection very been lowered to $250 per day. For ' - 7: Although minor editorial changes have judiciously,-§ 221.51{b) is unchanged : clarily, the phrase in paragraph [j) :f ' been made, most of the requested with regard to immediate shutdown for reading "For failure to maintain seals. '~ changes were not made. The MMS .' .' i: 6perations conducted without approval ° *" was revised to read "For failure" requiremenls for run tickets are or those which coUld herin life, property, lo maintain effective seals ..... Some ' contained in NTL-7, the final version Of or the environment. The additional . '" :omments received expressed opinions which reflects many of the.comments, reason "for repealed instances of ..:. ihut it would be unfair lo levy '~ :. The regulnlions in this part are intended noncompliance" has been inserted to assessments on lessees and operalors ~ :':.'- to I)e general, anti specific requiremenla deal with the chronic offender, and t.o -.. 7or deficiencies caused by third parties, ~l}oa tr :hn;nl ld:=~o ': '-.,uch as when vandal, or thieve, remove '..'f will be contained in applicable orders re~t)ond to comments hal and notice. Many oilier comments should not be Impose . : or destroy well si~tns or seals, l! is the '.' relah:d to the requirement for sloruge of or insignificant acls of noncompliance. - ' " . . operator is the responsible parly, and. royalty oil. This provision was ' The only other comments received ..... - position of MMS that the lessee or : '" ". Opreviously contained in § 221.40{b} and regarding § 221.00 were that the criteria this responsibilily extends to making :[i; has been in effect for almost 40 years. ' for shutdown of operations should be · ,- . appropriate corrections'in conjunction ' We see-no convincing arguments for expanded to include specifically, with law enforcement agencies and/or changing these requirements. .. shutdown for economic loss or waste. It .. · development of adequate security - :":!'/-. Accordingly, only minor ed§lot§al . '.'"is believed that the definition of : . -' changes have been made. Other ' ' .... : '. noncompliance contained in this t~ection syslems when problems are encounlered wilh vandals or thieves. The penalties . comments recommended that provisions "adequately covers these concerns, and provided for in § 221.62 {now § 2Zl.aa} '.'." be added concerning royalty " .= that no revision is necessary. ' '.... :i i'.':'are'not lo be levied until after the lessee . requiremenls on produclion which is :'." Assessmenls for n°nC°mpllanca. -" . · receives a notice of the.noncomplianc~ ' . avoidably lost or wasted. These '* and is offered an opportunily lo remedy .~.:' ' '.. ISection 221.61] - -...:i...":'-:: . requirements are currently contained in ' .. NTI.,-4A and can be addressed when the The schedule of liquidated 'damage ":'any defaults or violations. Since it is ,.. . royalty provisions in §§ 221.100 to assessments proposed in § 221.§1 [now "intended thai this i~hould be a wrillen 221.123 are proposed for modification. § 221.52J has been described by some notice, the words "in writing" have be0n ' Since seals are peri of the site security commencers as "excessive," and by ." "'inserted. Some editorial changes have ' olher commenlers as "unrealislically .'. '.". been made in § 221.03{b) {now ' · .. been remow.d fram'the proposed - . . small" or "grossly inadequate." As.. ' . , § 221.54{b)} to clarify when penalties ':.~: .'..~ requirement,, these requirements have explained in Ihs proposed rulemaking, ,- must be paid and that they are subject, . ~" § 221.36 and a new section, 221.37 Site to Isle payment charges. · :....:' · ,,-.'.: se:;urily, has been established. A Notice . the amounts have been increased by a . - · · . .:. .~ ..- · factor of 10 fr~m those established in Surfaco rights./Section g21.?01 I' : r I I ~I Intent It) lin)pose site security .~tamlards has be~n published for t:olntmml in tim Fodurui R~gislor of April 21, 19112, {47 1,'1{ 1707u}, and un.interim rah: wilh re,l.USi for comments was pid,lish,,l Ot:h)i)er 15, I[182 147 FR Tim m:w 1 221.:17 which i~ the inlerim rule provide~ Ihat ;ecurily phlns shall Im develolmd in accordnnce wilh applit;nlfle shmd.rds. Such minimum standards ute developed as a part of th~ above-described Interim , . 1942, and are considered udequa!e for the ~l~tlecl purp0~,~, Consequently, thi? s~;hu(lule has been revised only slightly, for reasons slated hereafter. The existing assessments for royally matture ars lislmi In I 221.110, and $inuo Ilmy were m)l i)ropos.d for nmdlfh;utlun-lhgy will cojilinun al their ~urrenl lewl lemporarily, ltowever, since I 221.~1{a) of the proposal dealt with wrillen orders of lhn officials and a new official 1~ now addeddu~ toroorgan~alion, ~at . . ~uv0r. I commenls urged that Ih0 ",'.:: section [trow §221.00) concerning aurfnce righto be de]eled while olher~' . recommended Ihal the section be made... more realri~llve, Thi8 aeclion duea col · .- IJilund Io define Ih() provi~hfi)a of Ihu lasso; however, ti Is lnlundud to clarify ', that Ihe Supe~isor may col granl surface use in ex~e~ of ~at defined the lease Instrument. Aa a resulL no · ' $ubslanllal oha~es were made, : . . · -.~ ., ,, F(:(ternl R(:gisler / Vt)l. ,1' o. 2(m ./ Wcdnestlny, O(:lolmr 27, 1(,1II2 ',uhm and Regululions 47765 ....... Mo. ~1~,_,_, , J I I RI ! E.O. 12291 Fuderal Regulation Th~: Department of the Interior has' - dutt:rndnt:d thai ibis documenl is not a .. major rule and does not require a regtthdory analysia under Execulive Order 12291 because the exisling - regulatory ~chcme was found lo be basically sound and required only minor 9-3~ 1 ...... : ........ 9-331C ........... D-~014 .............. l)ian.ages on restricted Indian Inn(ts. ISe(;tio,~ 221.711 ,qt:vt:rnl commenters que.sliont:d ih(: ' nmlhodology of assessment o[aurhu:e . (h,nlagt~'s. However, this st:cli()n [now §2'21.61} is only inlended lo delineate reslmnsil)ilily and not Ih(: nmnn(:r of carrying out that responsil]ilily. r~:.suh, lhe..seclion stands as prol]osed. (iii &nd gas exploralion and modernization lo reflect 40 years of (:ha ng(:d conditions. The orga nizalion the ruh:s is revised to group like The infornmtion colleclion 1028-0000 · : IO~'O--O~XJ? ' ~ .'. " 1010-0002 . 1010-0,003 ' ,02tt-.oo2g ;. ' ]'-' "" '!:" ~_ 'i ~ · ; :', · :.. ~. ~ . ~.'.' 47766 Federal Register /ol. 47, No. 208 ! Wednesday, Octobe~ . 1982 ! Rules and Regulations Requirements for Lessees and Operators ,.~1.,O C, cm:ral 221.21 Comluct o! operulionu. 221.22 Drilling and producing ohligali0os. 221.23 Drilling appli~alions and plans. 221.24 Well identification. 221.25 . Conlrol of wells. ' 221.20 Samples. tests, and surveys. 221.27 ~ubSequenl well op.rathma. 221.28 Olln~r hmse operalhm~. 221.30 Environmental 2~1.31 Safelyprecauliuns. g21.3Z Well records ami reports. 221.33 Confidenlialily. 221.34 Meosurem~nl of oil. 221.35 Me~suremenl of gas. 221.3~ I)i~lmSilmn of pro,lust/on. 221.37 ~ile securily. Z2~.a~2~l.49 ]Reservedl Noncompliance and Assessments· ~1.51 Remedies for aclu of nonconq)liam;c, Shulhng down opcrulions; lease - 221.118 Daily report of gas-producing wells ! Form 9-352}. '.'-21.119 Slnh;monl of oil ami gus runs and , royalties {Form 9-361 Public; Form ~ ' 361A Indian). .' ' 22'1.120 Royalty and ~ntal remittance [Form ~14A Indian). ' 221.~21 Royalty and renlal remittance {Naval Petroleum Reserves]. 2Z1.1~2 Special fo~s or reporls. ~1.123 ~to payment ur undu~nyment ~hurges: Authority: The Act of Febmu~ 25, 3920 [30 U.S.C. 1111, el seq.), es amen~; the A~I of May 21, 1930 [30 U.S.C. 3~); th~ Mineral l.easing Act {or Acquired ~nd~ (30 U.S.C. 351-359), as amended; Ihs Act of March 3, lf~ [25 U.S.C. 396), aa amended; the Act o{ May 11, 3g3g [25 U.S.~ 3~-3~1J, as amended; the Acl of Feb~u~ ~, 3091 (25 : U.S.C. 3~7), as amended; the Act o{ May 1~24 [25 U.S.C. 398); ~e Act of March 3, 3927 ~25 U.S.C. 398a-398e]; Ihs Act of June 30, 125 u.s.C. 3~), as amended; R.S, ~ ~1 {43 Avoid. bly lost. Avoidably lost production shall mean the venting or flaring of i)roduced gas wilhoul the prior aulhorizulion, approval, raliriculion, or acceptance of the Supervisor and the loss of produced oil or gas when the Supervisor delermines lhal such loss occurred us u respll of [1) nugligem;e on the purl of Ihs lessee, or [2] the failure of the lessee h) luke all reasonable . measures h) prevent an<t/or control tho loss, or (3} the failure of the lessee 16 comply fully wilh Ihs applicable lease - '. :-' terms and regululions, applicable orders and helices, or the wrllten orders of Su'pe~isor. or {4} any combination of : the foregoing. Com/llunilizolion ~gruenlu/it. An · agreemenl approved to allow sel)aralu tracls to be developed and operated in conformity with an established well- spacing or well-development program [see 43 C~ Part ~105). . '.. .' ..-. I 1 canceilalions. 221.52' Assessment for noncompliance.' 221.53 l)enahies. 221.54 i)aymunl of assessmenls or punahius. -2.1.55-.~1.5.) [Reservedl · S~ciai Provision~ ~.1.~) Surface rights. 221.61 Damages on reslricled lad//ina lands. 221.B2-221.~. [Rese~edl ~ellel, ~onlliets, and ~als ~1.70 Relief from operuling and producing r~uiremenls 221.71 Conflicts between r.gulalions. 221.72 Te(;hnicul .nd prm;edural review. o221.73 APlmuls. 22~.7~2z].~ . IReservedl Royalty Requirements ~1.1[~ Prod,clion r~:urds; renlulu. royalties. ~nd paymunls; drainngc and waste. · 221.101 Division orders, run lickels, sale~ 221.102 Waste prevention; imnefici.l usu. 221.303 Sales (:ontru~ts: division orders. 221.1~ Relic[ from opuraling, royalty, and renlal requirements. 221.105 Royalty and mnlal payments. ' 223.3~ Measurement of oil. 221A07 Measuremenl of gas. ~1.1~ Delcrminalion of gasoline conhml nalural gas. 221.1(~ Quan~i~y basis for computing royalties on nulur.l gasoline, hut.m., prop,ne, anti other liquid hydrocurbon subshmces extracled frmn gas. 221.1 I0 Vidu,t basi~ for con,p,ding roy.liie~. 2'~1.111 g.ynlly niles m~ 0il; 221.112 Roy.lty r~les on oil: ~iidmg. und sh.p-sc.le lc.scs [puhlit: hind rally). 2'21.113 Royally on 221.114 R.y.lly m~ s;.sing-head ur gasolim:, bulmm, prolmne, or other hquid by,Iron, rhea subslunces exlraclnd from 22~.1 ~5 R.y.lty on drip gusolism ur oiher natural 221.11fi I.hluidalCd damages. ~1.1~ Monlhlyr~lmrlofolm~.liona[Form ~32~ Public: F0m ~A indian). U.S.CJ 1457l, see also AIIorney General's · ' Opinion of April 2, 1041 [40 Op. Atty. Gun, · 41 }; Ihe Federal Properly and Adminislrative Services Act of 1949 {40 U.S.C. 471, et seq.), as amended; Ihs National F~viromncntal . Policy Act of 1969 {42 U.S.G. 4321. et ~eq.}. ~s amended; Ihs Acl of December 12, ~91~ {Pub. L. 96-514, 94 Stat. 2.cff}4}; and the Gombined ' i lydro(:arbon Leasing Act of 1981 [Pub. L 97-'. 78, 95 Stat. 10701. '!.-: ~.. Deputy Minerals Manager {DMM}. . ' '. -~ · The officer in charge of a Regional Oil ' _ and Gas Office, or its equivalent, who Is .authorized, Under Ihs d/reel/on of the appropriate Minerals Manager, to approve unitization, communitizalion," .. .8as storage, and'olher contractual ~- :' agreements for Federal lands; and Io .'-.' approve, supervise, and direct .- General Provisions :' · Ii 221.1 Purpose and sc. op~. . " ' The regulations in this purl govern operalions associated with the exploralion, developmenl, and production of oil and gas deposils from h:"ses issued or approved by the United Slates, restricted bid/an land lease~, and lhose under the jurisdiction of the · Secretary of the Interior by law or : -u(Infinistrative arrangement,including ' Ihs National Petroleum Reserve in ' .. Alaska. They are intended to promote ' .officer in charge of a District Oil and thc orderly and efficient exploralio_n, . ... development, and production of oil and , · Ga~ Office, or its equivalent, who is - ,~. authorized, under the d/reel/on of the gas. The regulations in this part are operations on oil and gas leases on Federal and restricted Indian lands that ' ' il -':': '. lie within the juflsdictional boundaries 'of that Region. ":.' ' ' · DesignatedOperotor. The'party '.' .-'- " '-design,led by Ihs lessee{s) ur holder{s) : ~' · of operating rights under un approved · .:'~. operating agreement, who is aulhorized .-'- :.. lo conduct operations on the leased land ' fi~ .or a portion thereof. :: .' .~' D/rector. The Director of the Minerals ~' ' ~ :. Management Service. . "" :'" ?' D/strict Supervisor (Supervisor]· The ':' : administered under the direction of the '- ' appropriate DMM, to approve drilling . and other well operations and to ' Il/reeler of the Minerals Management .... Service {MMS}; except that as to lands ' ~upervise and direct oil and gas · within naval petroleum reserves, they ' . operations under Federal and restricted shall be adminislered under such official Indian lands oil and gas ieases that lie -' within Ihs jurisdictional boundaries of i · that District. ' ' Fresh water. Water conlainin8 not . ~ .~-~ as the Secretary of Energy shall designale. ·. § 221.2 Definitions. - ' .' ,'lsuocitttu D/rector for [loyalty IUmmgement. The officer tn charge of Ibc Royally Managemenl Program. Minerals Munag~mcnl Service, or any uuborditmle acting undur Ida direction in nmlters relating lo the collection of rent .nd royalties, the oblainin8 of appropriate records, computations, and any audits of Ihs royally payments ,nd obligations of lessees, operators, or payers.. .. more th.n 1,tXX) ppm of total dissulv~d ". ~olids, prtlvhlud that such wuh:r dt)e~ .. not contain objectionable level~ of any . consliluenl lhnl is toxic Io animal, plan~ or aquali(; life, unle~, otherwise · specified in al)plicabl~ not/cea or arden., Gas, Any fluid, either combuslll)lu or noncombustible, which 1~ extrncted fr~ a resumoir and which has nellher independent shape nor volume, bul tend~ to expand indefintlely; a ,,: eub~tance lhat exl~t~ In a gaseous or -~::. , ': t Federal Re§ist(;r / Vol. ""'"' No. 20Ii / Wednesday, October 27, 19""--" Rules and Regulations rarefied siale under shmdard h:nq,uralure and pressure c(mdltions. (/us Slor~e Agr~en~et~t. An ' ngreemenl authorizing the subsurface ' ah)rage of gas, whether or not produced frnm federally owned lands, in Federal Innds leased or subjecl to leasing. Lease. An a~eemenl issued pursuanl 'Fills 43 CF~ or Title 25 CFR, or other special Federal leasing uuthorily, whigh, 47767 _ tar snnd areas, any hydrocarbon subatunce wilh a 8as-free viscositY, at original reservoir temperature, steerer Fo,~ no. than 10,000 centipoise Is termed tar '; $-331 ......... sand. Hydrocarbon extraction from tar sand is also 8eventual by the regulation ' at 30 CFR Part 231 and applicable orders ~.o3,c ....... and notice~. . Onshore Oil and Gas Order. A formal numbered order issued by the Director in consideration of covenanls to be observed, grants to, a lessee the exclusive right and privilege of exploring for. developing, and producin8 oil or gus deposits owned by the lessor subject to the terms and conditions of the lease, regulalions, and statutes. Leased Lands, Leasehold. Lands and deposits made subject to an oil and 8as lease. L~ssee. 'The party authorized by or Ihrongh a ]ease or an approved assignment thereof, to explore for, develop, and produce oil or gas on the leased lands in accordance wilh the lease terms, regulations, and law. . Lt:$sor. The party Io a lease who holds h:gnl or beneficial lille !o Ihs mineral cai. It: in Ihe leased lands. h I(~A h;w/;; Llllfmule l::cono/,ia ilt:t:ovt~Fy. The recovery of oil and 8as I'l'oln the leased lands which a prudent opcrntor couhl be expecled to make [z nm that field or reservoir given t:xistin8 knowledge of reservoir and that implements the regulations in this The above information is being - "' part. collected for Federal and Indian lease ' ' ' "-' Open, tot. The parly that has conlrol ' managemenl purpo8es. The information "'~ ' or mam~gement of operations on lhe,,- . will be used to allow evalualion of the leased land or a portion thereof. The --" technical, safety, and environmental operator may be a lessee,, holder of factors Involved with drilling and rights under an approved operating ~ producing oil and gas on Federal and agreement, or detfigaated operator. Indian oil and gas leases, The obligation Pvyifg Well. A paying well is a well '.' to ~espond is mandatory only if the - . . that is capable of producing oil or gas of lessee elects lo Initiate drilling, - st,ffit:ient value to exceed direct : completion, or subsequent operations'on operating costs and the costs of lease an oil and 8as well. The Monthly Report ..... rentals or minimum royalty. ' "of Operations is mandatory after drilling . , . Production in Paying Quantities. .. ' has commenced .... . .... ' '.- Lease production of oil and/or gas of ' ·: ' ' 'sufficienl value to exceed direct ' ".'":. . ROYALTY Accou~'nno Fom~s .":,-.'..':- ' '° ' ":'~';" operalion'cosls and the cost of lease '"" · rentals or minimum royalty. ~ .. . ron~no. : Secretary. The Secretary of tho ": . .~..__ · Interior or his duly authorized ' ... .. represenlattve, except where lands in .... naval petroleum reserves are included, · ~-%4.,~i ~ and in lhnt case, Ihs Secretary of .-: · :Energy.' ..' '- ':-i":;-' ::'..'.-: ' : ,. other pertinent facts and utilizing -:. Stwerin'te/nlent. The Superintendent.. ' ~.zo~4 .... :__.mootR.mi,~n~..o~ ~ ~ ~~ ~ ~. common industry practices for prizna~. : -of an Indian Agency, or o~er officer : :' ''~' .::'.~. .-~-~ ~ ~ ~ .-- :. . seconda~, and tertiary recovery authorized to act in matte~ of record "" : ' ~ ~* ~ ~ ' ' ":: '" ' ' ' o])(,rtllion~ ~ m n~ ~ .'.": · ... . Mh~emls Manager, ~e officer in and law wi~ respecl to oil and 8as -'... ...... ' ~, ~ ~ · ' ' charge of a Regional Office of the MMS. leases on reatricted Indian land~. ~ ...... ~.. · - :" ~ ' "' ' :": National Petmteum Rese~e in Waste of Oil or Gas. Any act or ':-..' .. -.;~ , . . :"~":':-. :"' ::: - :':~;~. '. · . '. "' '-' Al, s~a. ~e area al~o known as ~R-A ' failure to act by the lasses ~at la not ~ · ~e info--alien la being a0llocted for" ...... ~"~ :": which was designaled by section 102 of '. - ~anclioned by ~e Fupe~iaor as ':- '"'~. Federal and Indianroyally accounting ' the Naval Per,loam'Reserve ~duafion ' necesaary for proper dowlopm~nt and" pudenda. ~o ~formatlon ~ill be u$ed .'. Act of 1970 (~ Stat. 303} and' production and which results In {1] a ' ': ..::. 1o po~lt a~ounlin8 and auditing of · ..; established by Execulive Order of Ihs reduction in the quantity or quality of oil ~ ' royalfi~a submitted by the operalor of. "" ' ..~-'~ ~.t'~)' l'resident, deled Feb~a~ 27, 1923, ' and gas ullimalely pr~lbla ~m a .:../ ~ FodarM ~d Indian oil and gas lease~. :~::" excepl for tracl Number 1 a~ described reservoir under prudent and proper ~ ~' ' ~ obligation lo respond 1~ m~dato~' .. in Public Land Order Z3~ dated April .operuliona~ or {2} avoidable $~aea lo~a '.: o~y after ~ l~s$ee begins production . 24, 19Ol. ofoil orgaa, ' ' ' .... · ..?.'ofoll ~dgaa.· '-" Notice to Lessees and Ope~tors ' ~ 221~-1 Info,etlon ~~m '~- ' Other ~eponi~ ~qu&eman~ "' '':::~: '''''':'~': [.V77.}. A written notice issued by tim . ..... "~ :" '"' -"~.'.~';L'::- I Jr, I'M. NTL's implement the regulations - - ~e information coll~etio~ ' : '" %a l~oma~on ~lle~aon '~:~'"~: '~.:'..'~: in this part and opernling orders, and - roquiremenla contained In Peri ~1 have -:~- requi~~ ~nlalned M il ~,' "~'.:'~/ s,rve as in~tructions on specific item{s} been ~,pproved by tho Office of 22~.Z3, ~lg~, 2z1~5, ~.~ ~, "' "~.' of imporlance wilhin a Region or porlion Management and Budget ~der 44 U.S.~. 221,2K ~,~, ~1.~ ~1.~ ~1.~' ~ ':.' 3507 and assigned the following ' ~ 221.35, ~l.a0, ~.aT, 221~, ~1.~, and ;'~" lh,.*rco[. Oil. An>, nongnflunu.~ hydru(:;,rhnn le,s.ble a~ caul, oil ~haie, or 8ilsonile Jn.:h,,ling all vuin-lylm solid hydrocurbons}. Oil includes liquefiable hydrocarbon snbstam:ea such ~$ drip gn~,Jline and oil:er haler,il condensulus rccov~:~cd .r n:t:uveruble iua liquid 51die [rum produced gila without ~esotling Io a manufacluring prncuss. Fur rnyully rule consideration in special Ch:n rn nco Numbcr~: OPE~ATINO FOP, M g No. N~nn a~d ~ ~ C~a No, S-~O0 ,... ........... 9-3L-'~/;J 20A. .... 221.72 have been approved by the O[fico ','" · ' of Manngoment and I}udfel under 44 :'"~.'~' U.S.C. 3507 and assigmed Clearance ' Number 1010--0001. Tho lnforsnutlon may · - : :,.. be collected from some lessees to either pro~ide data so Ihat proposed :-~' operations may be approved or lo enable lh~ monilorin8 of compliance '" with granted approval. The lnformalion will be used lo 8rani upproval Io begin or allot operalions or lo allow 47768 Fedm-al Regis ] Vol. 47, No. 20/3 ] Wednesday, Oclo' 27, 3.982 [ Ruh:s and Regulalions ' - 7_- .... __ _7__i._Z_ '- · - ,11~ _~. J i i ii i ii -- - - i - - ~11 ii i i i operations to conlinue. The obligation to respond is required to obtain the benefit under the lease. · ~ 221.3 Cross references. 25 CFR Parts 211, 2~2, 2~3, and 227 30 CFR Paris 223, 225, 226, 231, and 290 40 CFR Chaplet V . 43 CFR l)nrt8 2, 4, and 1820 and Groups } 221.4-221.9 [Reserved} . Jurisdiction and Responsibility wrillen or oral orderS !o govern specific lease operations. Any such oral orders shall be confirmed in writing by the Supervisor within 10 working days from isstlance Ihereof. Before approving operations on a leasehold, the Supervisor shall determine that the '-lc;me is in effect, that the operalor is .ulhorized lo conducl such operations, lhlll acceplable bond coverage has been provided, and thai the proposed plan of opcralions is sound from both a lechnical and environmenlal slandpoln. I. dm,. § 221.10 Jurisdiction. § 221.13 Responsibilities of Ihs Associate Subject lo Ihs supervisory ilulhorily of Direclor for Royally ManagemenL tim Set:rclary and the Director. all The Associale Director is rb. sponsible operations conducted on or for thc for the collection of certain rents, - benefil of a Federal or Indian oil .nd gas roy,allies, and other payments; for the lease by. or on behalf of, the lessee are receipt of sales and production reports; suhject to the rest, lotions in this part ' for determining royalty liability;, for ' and are under the jurisdictio'n of the · _ _. - maintaining accountin8 records; for any audits of [he royalty payments and . . obligations; and for any and all other · funclions relating lo royalty .-. managemt:nl on Federal and Indian oil .and.gas leases. § 221.14 Onshore Oil and Gas Orders. (u) The Directbr is authorized to issue Onshore Oil and Gas Orders when necessary to implement and supplemen! the regulations in this part. All orders will be published in the Federal Register both for public comment and in final form. · (bi These Orders are binding on' lessees and'operators of Federal and . - reslricted Indian oil and gas leases ' which have been, or may hereafter be.'-'7. · issued. The Onshore Oil and Cas listed below are currently in effect: .' .. :..';:' 3.:;1 DMM for the Region in which the h:ased hind is Iocalcd. ~ 221.11 Responslbilily of the Deputy Minerals Manager (DMM). The DMM is authorized .nd dir,:cled '"' . · . . lo approve unilization, communilizalion, ' g,s sloruge, and other contractual ,_. § 221.15 NTL'~ and other Implementing agreements for Federal lands; lo assess procedures. .:..:: ~ , compensatory royalty; to approve .. - (al The DMM is authorized to issue ' suspensions of operations or production, NTL's when necessary to implement the or both; to issue NTL's; to approve and onshore oil and gas orders and the monitor olher operator proposal~ for regulations in this part. All NTL's will be drilling, development, or production of' · lashed after notice and opportunity for oil or gas; Io perform technical end - · procedural reviews; to assess mont:htry penalties or liquidated damages; It) exercise supe~isory control over operations apl)roved, inspect.d, and 'regulated by tim Disiricl Supervisor; provide technical information and .dvice relative lo oil nmi gas development and opt:rations on Federal m~d lmli.n hmtls: and IO enl.r into coopt:r;dive agreements with Sluice, Federal Agencies, and lntlian Tril)es relative to oil and gasdevelopm.nl and operations. ~ ~21.1~ ~espons{bll{ty of lh~ District - ~pervlsor The Supe~isor is authorized and directed to approve, insptmt, and regulate the operations that are subjunt h) the regulations in this'part; ia require compliance with lease terms, with the regal.lions in this part, and all uther applical)le regulations promuigalcd under the cited laws; and to require thai all operations be conducled in a manner which protects other natural resources .nd the environmental qtm[ily, life and property, and results in the m;iXilllUm ttllimd[{: ecollomig I-iH:t)ver~ oil end glia wilh ndnimum wusle and wilh minhnun~ adverse effut;l un the ~ilhnulo rt:cuvury of other minor. I rusotu't:us. 'l'he. Sup.rviaor Inay issue · comment. "-.- ..' ' ' - (bi All NTL's issued prior to Ihs promulgation of these regulations shall . remain in effect imtil modified, superseded by an Onshore Oil and Gna Order, or otherwise terminated. (¢:1 A manual and olher written inslruclions will be used lo provide policy and procedures for internal guidance of fl,e Minerals Managemenl. Service. ..... .. , §~'221.16-22t19 IFleserVedl ". Requirements for Lessens and Operators § 221.20 GenerafrequirementL The lessee shall comply with applicable laws and regulations; with' the lease terms, Onshore Oil and Gas ' Orders, NIL's; and with other orders · and instructions of the Supervisor. · :" 'These include, but are not limited to, conducting all .operations in a manner' :' which ensures me proper handling, .measurement. disposition, and site security of leasehold production; which ' protects other natural resources and environmenlal quality; which protects life and property; and which results in maximum ultimate economic recovery of oil and sas with minimum waste and wilh minimum adverse t:fIect on ultimate recovery of other mineral reSOUrCeS. ;. . "§ 221.21 Conduct Of Ol~ration~ ': ':-' ' .~ . ia) Leasehold operations shall be conducted by the lessee or ils designees. The lessee may authorize the actual conduct of operations in its behalf by designating another party as operalor in a manner and form acceptable to the' ' Supervisor. Acceptance of an execuled ': designation aB authorily for the designee to act for the lessee in matters relati~ to the conduct of lease operations does not relieve'the lessee from the ultimate responsibility for compliance wilh .." applicable iuws,'regulations, lease ·" terms, Onshore Oil and Gas Orders, N'lL's, and the orders and instructions of Ihs Sapervtsor. Lessees shall notify the SUl,ervisor in wrilinl4 when a designation of operator has I)uun canceled, A designated operator cunnoi designate a different party as operator. (bi The contractor or other person in charge of or conducting operations on a leasehold will be considered the ages! of the lessee for such operations with - full responsibility for acling on behalf the lessee insofar as complying with ' . applicable laws, regulations, the has? · terms, NTt's, Onshore Oil and Gas 'Ordurs, and other orders and '. Instructions of the Supervisor. The serving of orders, instructions, or notic~ on the contractor or olher person in ' charge of conducting such operations o n leasehold, when delivered personally or by ordinary mail, will be deemed to be service upon the lessee. When serve in this manner, u copy will be mailed I~ the lessee ~nd the d.signaled operator at their uti.dress of record. .~ 221,2'2 Drilling and producing obligalions. {,l) The less,,e shall drill diligenlly and pr.duce conlinuously from such wells as h)s~ of royally by reason of draimlge. The DMM may a~sess compcnsalury roy.lly under which the lessee will pay a sum determined as adequate to ' compensate the lessor for lessee's l,,/lm'e Io drill and produce wells ' rmluired Io prelect th~ lessor from loss Il;rough drainage by wells on adjacent I~nd~. Any ~uch assessment will be nmde after a review of available informu lion relaling to development of lira leased lands. Such assessmenl is subject lo lerm/nalion or modificaliun l~,,sud upon Ihe DMM'~ conlinuing rrview of sm~h informaliOn. 11~1 The iesmm..I ils t:h~ctit}ll, llltly' ~1~ ill ami prt~dut:e t;Iher wells in (:onfurmity with any system of well Sleeting or production t~llolmtmls i~ff*mlin8 the fit:hi or men in which Ihe h~,sed lands .re siluahM, and which is ,ulhurized mai sam:lioned by applicable l;~w or by lhe S~qmrvisor. lc} After celica in wriling, lhe lessee sls.~ll lmm~ptly drill nmi produce such ol]it~r wells as the Supervisor may Fmh:ral Regi.ster / V(~I , No. 2t)~l / .VVt:dnes~tay, Oclober 27, IL / Rules and Regtlli~tion8 47769..' '!:..- upin.oval, lhu ~q}pliealion musl be . . . udminislralively and technically oomph:lc. A complete application :. consisls of Form ~331C ~nd the " following nlhmhmenls: [1J A drilling plan, whi.h m~y lsh'eady be on file. ctmlnining information required by paragraph fei below and appropriate orders nnd notices, (2] evidence'of bond coverage as required by Department of lhe lnlerior regulations, [3] designation . of open~lor, where necessary, and [4] such other informalion a~ may r~quimd by applicable orde~ nnd helices. If the process is inilialed less Ihan 30 days prior to the desired date of commencemenl of drilling operalion~, Ihe process may not be compleled by lhe desired dele. lei Each drillifig plan 6hali conluin the allotted lessor preceding lhe lease serial ... number. The lessee shall mainlain ali well markings in a legible conditio,n.. [bi All abt/nd.ned wells shall be marked wilh u pcrmancnl ,monumenl conlaining lhd informulion In la}. The well identification requirement for an abandoned well may be.waived in writing by the Supervisor upon submission of ~ requesl by the surface owner or sm'face management agency. § 221.25 Control of wells. , , (a) Drillh~g wells..The lessee shall take all necessary precautions lo keep each well under control al all limes, and "shall utilize and muinluin malerials and equipment necessary lo Insure lhe safely of operutin8 conditions and infonm~lion specified in appli.able ' : . procedures. ' . ' . ' eel ices or orders, hmludin8 a description ' · {~J. VerticaldrfHing. The lessee slmll ' ' "'l ' ; ~ ':" of the drilling program, lhu surface and . conducl drilling operalions in a manner. projecled Cnml,lelion zone location, so thal the completed well does not · '".} ':~ ;:'~ .~'-':J~?~ perlimml geologic dale, expected ' ' deviate signifibanlly kom the vorlica]' : probh,ms qnd h,,z.rds .nd proposed .' "wilhoul the prior writlen approval of the nfilJgalJon, road nnd drillpad ]o~lJon'. ~'J:. Supe~i~or. Significnnl devJ~ljon means- . ,~nd conslrucliun, melhod8 for -" a projected deviation of the well bore ' . containmenf and disposal of waste 'from the vertical of 10' or more. or a . ', . . ,,-..' ..~,. . malarial, pi,ns for reslurotion of the projecled bollom hole loc, lion which ~ '' ' surfa~:e..nd-other pertinent date as Ihe . could be lose than 2~ feet from Ihe .... h:as{mi~bly require in order thai I"he S ' , ..... ._ upermsor ma3 reqmre. A dnlhng plan . spamn8 umt or lease boundu~. Any . h.~se m.y be properly and limely amy be submilled for a single well or for" well which deviates more limn 10' from" d.veh~ped end produced in accordance . several wells whit:h are proposed lo be' .;" the vertical or could ma. Il in a bollom :.' wi~h g.od economic operating practices, drilled to thc same zone within a field 0r''': ·hole localion less lhnn 2ffi feet from the ~ 221.23 ~illing applications and plans2 area of geologic and environmental . .. ~ "spacing unit or lease bounda~ wifioul '-' - t.~} t-"mh ~!! shqn ~,~ ,~--~-~ :- similarity. A drilling plan may be '5. ,' prior written approval must be promptly' c,,',[f[,r;[ i'~ ,~'" ........ j':'y" '"., modified from lime to time as '- reported lo the Supemisor In these ' I y 'lIB ~ accepIaDle Well- Jr , ' ' ' . C cumslanc~ s amy wa~nnt, wJlh lhe ca8es a direclional -,,~ ,, i- o, · sp,c~ng pro-ram at a surveyed well , ..; ~- . . . .... aa.. r.~mred ....... . o a . approval oIlne DupeFVlSOr . · '-.'. h,:alion annroved or nrescribed b,, the .~ ..... : ..... '. ,. :. "(c) High pressure or loss of . - · .' .. . .-~. r 4 - [Il upon inli~a~t()n oI [~e ~ppilcallon "~/rcn/nf/nn ~o Jo.~oo ~hMl ~.b~" '" ~'~r~}~r eH~r at~propr,a~ for Permil Io Drill process lhe '...'. .... -- ' t , .nla~ and technical reviews "Se-e- v'- - '" ,. 7 .... -..' '.' - e p aba Utilize gecesfa~., :- ' ~ ', 3 ' ' ~ 's~ion h~ke one of Ihe following ~clion~ within ' . { ] roleclion oJJrceh waleto~dolher inJnei'aJ& The Je~eo ~hall lool~l~ ' lit lhmrd lllld acceph~d by Ihe DMM, or · 30 they,: ['I] Approve the opplic~llon ~ ' [re~hwaler-beari~ nnd other u~abl~ ' 12) one which is Iocalcd on. lease submilled or with nppropriule waler contuinin8 5.~ ppm or loss of [~mmfilled lo a communilized or modificulions or 81ipulalion~; [2} return. tmil}zmJ lrm:l al a lot:alien approv~:d by lhe upplicalion nnd advise the applicant dissolved solids and other mineral- - lira DNIM, ur [31 ~ny olher program of Ihe ruasou8 for disi~pproval; or [3} . bearing fomallons and prolecl them" eslal)lished I)y the I)MM. {It} Any well drilled on reslricled Indian land shall be subject to the Im:,lion reslriclions specified in the la,se and/or Tille 25 of lhe Code of Federal Regulalions. .. Icj The h:ssee shall sol)mil Io the S.imrvisor for approval an Apl)liclltion fur Permil h) Drill for each well. No d~dling operalions, nor surf. ce dislurbance preliminary therelo, may be c,,mmenced prior Io Ihe Supcrvisor's up{,r,)v{~{ of ibc permit. {dj The Ap{,{iculion for Permit lo D~ili {,n,,:ess sba{{ be {nitiuled ~1 least 30 d,ys before commencenmnl of ,. upcral{on8 i8 nnlicipn{ed. Priur 1o advise Ihe applit:ant, either in writing or orally wilh subsequenl wrilten confirmation, of'the reasons why final eolian will be del,yed along with the date such final action can be. expected. §221,24 Well Idsntlficatlon. .. (al Lessee. shall properly idenlify in a con,'Jpicuous place e~ch drilling, prodm:ing, or ~bandoned well, with the , name of the operator, the lease serial number, the well number, the surveyed dt:scription of Ihe well [either footsges or Ihe q.arler-quarter section, the scclion. Iownship, and rnngeJ, and, when specific~dly requesled by lhe Supervisor, Ibc name of the Indisn , from conlamination. Tests and surveys of the effectiveness of such measures shall be conducted by the lessee using procedures and practices approved or 'prescribed by the Supervisor. · . J 2~1,25' 8ampler, t~tl~, and ~urvey~. Ia) During the drilling and completion of a well, the lessee ah. Ii, when required by the Supervisor, conduct lasts, run lolls, and make other ~urveys reasonably necessary Io determine Ihe presence, quantily, end qualily of oil, 8as/other mineral~, or lhe presence or qualily of water;, to determine the amount and/or direction of deviation of any well from lhe verticlal: and lo delermine Ihe g 47770 Federal Registe~ Vol. 47, No. 208 [ Wednesday, Oclobe , !982 [ Rules_ . and Regulations. _ rah:rani charucterislics of Ihs oil and gas reservoirs pt:lw, lriited. {b] After the well bas bel:n comph:h:d, the lessee shi~ll conducl periodic well lesis which will dl:monslri~le ihs qu.nlily and qualily of oil and ga~ and walcr. Thc n.:lho~l ami frmlum.:yof . such well lesls will be sp,:cified in .pin'ol~riah~ notices and orders. When needed. Ihs lessm~ ah. Il ~onducl r~asmmb~e Insls which will demonslrule Ihs nmch~nical inlegrily of downhule equipment . lc} RcuulIu of sunq)hm, legits, anti surveys approved or I~u~cribed under Ibis aeolian shall be provided lo Supervisor wilhoul coal Jo Ihs lessor. ~ 221.2? Subsequenl well operations. ill) A plan proposing further well . . service well for injeclion Io recover additional oil or gas or.for subsurface disposal of produced water. In Ihs case of u newly drilled or recompleted'well, iht: approval Ia abandon may be written. or oral with wrilten confirmation. {bi Completion of a well as Plugged end abandoned may ul.u Include conditioning the well as waler supply source for lease operations or for use by the surface owner or appropriate · Government Agency, when authorized by the Supervisor. All coals over and above the normal plugging'and .b.ndonmont expense will be paid by Ihs parly acceplin8 the water well, 0:] No well may be lemporarily abandoned for more Ihan 30 days . , ' withot!t Ihs prior approval of the Supervisor. The Supervisor may "~ operalions shall be subnlitled by the authorize a delay in the permanent h:ssee on Form D-331 for approval by Iiie 'abandonment or a well for a period of 12 Supervisor. Upon ihs concluMon of " operations, Ihs lessee shall restore or rehabilih,te the disturbed surface in a munner approved or reusonul,ly --'.-'.'.' .. prescribed by Ihs Supervisor. '.' .. {c} All spills or leakages of oil, gas, produced water. Ioxic liquids, or wasle - nmtorialu, I~lowouts, fires, Imrsonul ' . injuries, and fululilie8 shall t,e rep(Dried ' by the lessee in accordance wilh Ihese regul,ltions and as prescribed in .- .~ - applicable order or nolices. The lessee shall exercise due diligence in luking necess.ry measures, subjecl to approval. by the Supervisor, to conlroi and remove pollutants and to extinguish fires. A .. · lessee's compliance wilh the ' requirerhenls of Ihs regulations in this· :.. part shall.not relieve the lessee of the obligalion to comply with other .. .... applicable laws and regulations.. :" ..-"-:'-'. :-;- .-. :.. Supcrvis.r prior to commencing "months. When justified by the lessee,. Supervim)r,{dJ When area oonublYcontingencyrequiredplun ~hallbY tho~. ~[:.~: r,-{.:... :'-;: opurpli.ns ia redrill, deepen, perform .-Ihs Supervisor may authorize additional '..6ubmilled describing procedures lo ~ :".-'-.~' :;-'.: casing repairs, plug-back, alter casing, delays, no one of which may exceed an .': lmplomenled to protect life, properly, ('":: .-:: ;.[. perform nonroutine fracturing jobs, additional 12 months. Upon the r~movul ' . recomplete in a differ~nl interval, ~ of drilling or producing equipment kom .and the environment,' ·: perform wa~cr shut-off conversion Ia 'the sile of a well which is Io be .... {e} ~e lessee's liability for damage~' injection. A subsequenl reporl on these permanenlly abandoned, the surface of lo third parties shall be governed by :~.:.~(.:," ..:: al)craSsus also will be riled on Form ~ the hinds disturbed In connection with :' -' applicable law. .... - .'. . .. ~.~ :'-,~].'[; 331. The Supervisor may prescribe Ihat the conduct of operations shall be '- ~ 221 31 Safely precJu'ti~ rehabilitated or restored in accordance' '' _.' ..... e a.i information set forth in j 221.23. ~ . q p . ..., .., ... (b) Unless additional surface by Ihs Supe~isor] ~ .)/ ::'.:. . · .workmanlike manner. The lessee ~hall ':: .... . dislurbvnce is involved and if the operations conform to iht: standard of prutlcnl operalin8 pr.clice, prior approval is ual required for routine fracturing or acidizing jobs, or .:. recomplclion in Ihs same inlerw~l; however, a subsequent rel)orl on Ih.se operations musl be filed on Form ~331. (c} No prior approval or a sulmctluenl report is required for well ch:nasal . work, routine well mlsinlenance, or : . harlem hole pressure surveys. ~ 221.28 Other lease operations. Prior to commencing any operal/on Ihs leasehold which will resell in addilional surface dislurbance, other Ihan those authorized under ~ 221.23 or ~1.27, Ihs lessee shall submil proposed plan of operalions on Form 331 to the Supe~isor fac approval. ~ 221.29 Well abandonment (el The lessee shall promplly plug .nd almaden, In .cuortlancu wilh a plan first apl~roved in writing or pruscrilmtl by Supervisor, each newly comphm:d or recompleted well in which oil or gus is . not encountered in paying quantities whit:h, after bning compleled as producing well.· is dumonstr, ted !o thc aulisf, ction of Ihs Supervisor Io be no iong,:r c. pid~h: of producing oil or gas in payiu8 qtmnlJlics, unless lira Supervisor ah. Il approve the up? of Ihs w.I! as a -§ 221.30 Enviro.nmental obligations.. .-' ::'.'!". take all precautions necessary to ..- .::),::":..:.. :, (a} The lessee shall conduct . provide adetjuate protection [or the ' ':'-'' ' opernlJons in a manner which protects" Ihs mineral resources, olher natural resources, and environmental qualityt In that respect, the lessee shall comply -. with Ibc pertinent orders of the Supervisor and other slandards and : health end safety of life and the .' '" prolection of properly. Compliance with · heailh and safely requiremems -' ' prescribed by the Supervisor shall nol relieve Ihs lessee or ,he responsibility · ' for compliance with other pertinent procedures as scl forth in the applicable .' health and surety requirements under: laws, regulations, lease terms and..applicable laws or regulalions.-. -:. -": '-. conditions, and the approved drilling: plan or subsequenl operations plan. ' § 221.32 Welt records and reports. ' '-':' -.. Before approving any Application for (a) The lessee shall keep accurate and Permit lo Drill submitled pursuant to ~ '" oomph:lc records with respect to all § 221.23, or olher plan requiring lease operulions including, but not "': : environmenlal review, the Supervisor limited to, production facililies and · shall prepare an environmenlal record - equipment' drilling, producing, redrilling. of review ~r an environmental deepening, repairing, plugging buck, and ' assessment, 88 appropriate. These ' abandonment operations, disposition of environmental documents will be used ;: leasehold products, and olher malten in determining whether or not an · . perlaining Io operations. With respecl ~" ' environmental impact statement Is ...... · production facilities and equipment, 11~ roquirod and in determining any ' -. record shall include schematic diagrams" .ppropriule terms and condition~ df us required by applicabl~ orders and.' approval of the submitled phm. noth:es. · [b} The lessee shall exercise due care end diligence to assure that leasehold operations do not resell in undue damage lo surface or suhsurfuce resources or surface improvements, ~li produced water must t,c disposed of by injection into thc subsurfuc, o, by approved pits, or by other methods wMuh haw been .pprovod by tho (b) Standard forms for providing basic data are listed in § 221.2-1. As noted on Form 9--330, two copies of all electric and other lo8s run on the well musl b~ submitled Ia the Supervisor. Upon request, the lessee shell transmit tp.lha. .. :. Supervisor copies of such other recur& maintained in ~rlllp~ta~yi~hl~ , .,. puruaruph (u} dlt-tbhl-,~cti.oh.[: [J ': DEC 0 11982 ,,. -.o Alaska Oil & Gas Cons. C0mmissio~ . A~chorag~? Federal Register / Va:~ ' Pt}. 2{)1l / Wednesday, Oclober 27. ~"-"" / Rules and Regulations 47771 - .~ .~_ ~ -- _, ~ _,L~ ,, ..... ~ "' ~ ' ' ~ ' - -.'.-.':,- (,:) The lease, ,h,ll fLJl',~is]~ the pr~s(:f'ib~:d i,] applicable ord(~rs and being removed [rom tho lease in .. :.'- S~,pervt,or a copy or Ihs d~ily drilling notices. Where production ca~ot be accordance with applicable orders end " ..-' . :.. report, when requested, and 8 notice o[ measured due. lo ~pillage or leakage, the notices. .. - ..... [,n,duction start-up. - -- ,mount of production ~hall be - '" . (d) The lessee.~h~,ll conduct '-'.- ;~ .-..:-: determined in accords-ncc with the ' operation~ in such a manner a8 to ~ 221.33 Confidentiality. nmlhotls ~ml procedure8 approved or- · prevenl avoid,bls io88 or otl and gus. (,1 lnf~rm~Jtion obt,im~d purse"al lu pr?f:rilm~l.l,y lh~ ~up%rviBor. . . ' (el When requested by Ihs DMM. the " Ihi~ p~rl Had on file sh~ll be nl~n h~r (i~} Wilhm :i(~ d,ys L~ller Irealmg and hmso(~ shall h~rni~h ~toraflo for ro3, A~lly ' iml,I/c htsi~et:l/on and ct)i~yi~g dm'inN ,,,~,su,',:,mmt [ut;Jlltlus are lash,lied or oil, on the leasehold or HI a'mulually rugL,lu~ oifice hours upon a writlen modil'ied on ~ lease, or when othe~ise agreed upon delivery petal off lbo · request, pursuant to rules at 43 CFR Part requested by the Supe~isor, a leased land without cost lo the le~uor, "" 2. excepl that: (1) U~on requesl, schem~,lic tlingram will be 8ubnfilted Io for 30 day~ following Ihs end of the "' - inh,rm~tion oblained from n lessee . the Supervisor clearly depicting the · calendar monlh In which the royalty un,let Ibis Part thai constitutes trnde vessel~, piping, and metering 8yste~ "· accrued. ' ' " ~:~ ~ecrets and commerci~d or [in~mcinl involved with handling and disposa[of _ - · '~'." .: i~ft~rmation'which is privileged'or oil. wuler, and gus. }221.~7 Site ~flty. ' · ~" " con[identiul or olher inrorm~lion that · . , , .., , ,. "~ , m~,y be withheld under the Freedom o[ ~ 221.35 Measurement of ~a~ · . Information Act (5 U.S.C. 552(b)]. such ia) All g;ts production shall be .~ 221.3~221.49 [Re~erv~] ,s geologic ~nd geophysical d~ta nnd measured by orifice melers or olher ..' ' m~p~, shall not be nvaih~ble [t~r pulflic melhods a<;ceptnble lo the DMM on the Noh~mpliance and Assessments . .. -., . inslmCtion or m~de pul)li~; ~)r disclosed h:ase pursLmnt to methodB and ' - " ' ~ 221.~0 Remedle~ f~ ~ct~ of ' "~." · "."' -: ' ' ~vilhoul the consent o[ Ihu lessee for a pr[,ceduru's prescribed In applicable .' noncompliance. -- . . "' . : .::': period of 12 months; [2} up(m expiri~tit)n, ordL~rs and ~n)lJt:es. The measurement of In the event or 8n 8ct o[ . .. o[ the 12-month period, the lessee may : Ibc volume of ell 8us produced shall be noncompliance, the Supe~lsor Is' - .- -:- :: ~'.' _~ . ~:;' request that the d,lu be held adjusted by computation to the 61undnrd . · - ' .... ~.onridential fur an nddiliomd 12-month " pressure ~nd temperature of 14.73 p~i8 .' authorized lo shut down operol]on8; lo .-' enter upon 8 leu~e ~nd Io perfex, or .. -'.'?: I,,,riod; ,,nd (3] upon termimJtion or, "' ,nd ~' F un]ess otherwise prescribed '- , have performed, at the ~02~ ri~k and: :-... :-:'~._-' hm5~. ~hethur by expiralion of ils terms by the Supervisor. regardless of the expense of the lessee, ap otlon8 that . ' or ~,~herwise. such inf[)rm~]Iion s}mll b~e pressure m~d temperalure at which the the lessee fails lo perform when directed: m,,de ~x.~il~i)le to the pulflic, gna is actually measured. Gus lost .... ..... '-- :;.- [I,) Information requested to be kept without me~surement by meter shall be In writtn8 by the Supemisoc I0 . ' recommend cancellation of the lease ' ' ' (:onfitlenli~fl under fins set:lion shush be estimated in ~ccord~nce with methods" and forfeiture under the bond; and t° ' '.' : ";':~ ~;le~rly identified by the lessee by prescribe.d in applicable order8 and ' ' osse~8 penullle8 and/or liquid,ted ~n;~rking each p~ge of documtmls n~lit;(m. - - - '"'" sol,milled wilh Ihs w~rds ' {1~) Within 30 d~s's uflor Ireulin8 m~d damages In ~pecJ[i?,insl~nces o~ .. : .' :.. :' '...'~ . ' ' noncomplinnce when the lessee fulls lo .'.-.' "(:ONI~IDENTIAL INFOi~MA'I'ION" i~l m~msu]'ement fi~cilitie8 ute Jnshdled or - . ' t~L~tlified on l~ lui~se or when otherwluu ' comply with applicable law, the ~ln~ I~,p t)f~he juLge. All i)ilgt~s st) m~tl'ked '- reguh~lJon8 Jn this part or promulgated '~' sh,dl be physical]y separated from other reque~led by the Supervisor, 8 .... ;- .-' ' l,t,rlions of the submitted nmleri~ls. All schematic die,gram will be submitted I0 under Ihs cited laws, the le~se te~8, . information not nmrked the Supcrvi~o~ clearly depicting the . . the approved operating plan, or the .. rCONFIDENTIAL INFORMATJON" will vessels, piping, and metering system '".. wrillen orderB or inslruclion8 issued by . . I,e ay,liable for public inspection .... involved with handling and disposal of. t~e Supervisor. ~ .... ., . -... [el Confidenlial and privileged -8~]s end liquid hydrocarbons. . .. ~ ~1.6~ ~huttlnD down op~rationa; Isaac ._.-. - mh~rmalion obt~fined from a lessee ' ' - cancellat~n~. ' under this purl on H re~lrictud Indium ~ ~21.36 Disposition of producflom ' . ~ ~' Itms[~ sh~ll be avaihdfle only !o the Tribe (,,) The lessee shall put into -. (,) When nece~uury for compliance.~ ' ' . .r ~dlotted lndi,n lessor, their nmi'kal,bls condition, if economically entry upon the lease to conducl ' -. ,h:sigm~ted agent, or m]thol-ized U.S. fe,sible, nil oil, other hydrocarbons, 8a8, operations and recommendations for I)L:p,rtmenl o[ the Interior officii, ls. Such end sulphur produced [rom the leased lease cancellation and for forfeiture . .. i~d,~['mation shrill not he m~de i~x'~ih, ble l,nd. . , . . under ~e surety bond will be taken only ~:- t~, a~v other party without the expr(ms (i~} Where oil accumulates in a'pil, after the lessee J8 duly notified in '~ ,~lhL~rizi~lion of ti~e Tribe or alloted su(:h oil mu~t either be [l) recirculuted wrltln8. The lessee will bo provided a ....:...--. Indi,n ia,sar. ~ 'thr~mgh the rcsulur IreRtln8 8y~.tem and reasonable period or time to either take .-. ~-.-....~; - Id) Any geological, geophy~Jc~tl, or . returned to the 8tuck tank~ for 8,le, or "corrective action or to show why ~e. ~ ' [m~mfial inform~lion which i8 eithernot . '(g) pumped inlo IL slack lan~ wilhout lease should not be 8o enlered or. ' " required trader Ihs reg~l,li~ms, in lifts Ire;~lment nad meaHured for ~ule in the recommended for cancellation and ..... ~-," p,rl ~)r [:t~vuru Iii'nils eel under I~ed~,l ~,me m,nm~r ,.s from any 8ule8 tank in forfeiture declared under Ihs ~urely ..... o~ Indigen le~e~, bul ~vhi~:h Ihs IUHH~m i~t:~;t~rdllm;L: ~¥ilh al}plicuble ordori nnd bond, . .; ~,d,,l~ils lu I111~ SUl~erx'is,~r. shlfll be held m~li~:ea, in Ih~ tfl~unctt of prior ~q~prnw~l lb] lmmudi~te ahul.in anlion amy bfl : ,~diih.nli.~l nmi ~1~11 md I~ rehmsml ' l'r~m I}tlt ~pi~rviaor. no uti ahl~uld No lu ll~kun where upurulionu l~ru tnJliulud nnd , ~-dl,t~ul lhu iesKue'u cuuuc:nl, u lJil ux~:~:lJl Jn un emergency. Each each conducted wilhoul priuLuppruvul: ur . . .: :-. ~;currencu must be reported !o Ihs where continued operalio~a could reuul~ . . -. ~ 221.34 Measurement at oil. ~Ulmrvi~or and the oil promplly in Ihs lose of revenue, or serious h.~ Jo I,~) All oil i~odu[.li~ln [h~ll be r~:ov~r,~d in l,~:~:ordl~nce wilh Ul~pliu,ble life; propurly, or Ihu ~mvirunmenl; or [ur n~e,,~urud by hmL gauging, po~ilivu o~-dt~r~ ~nd nulJce~, rupuulud Jnaluncea uf nuncompliuncu. d~l,l.~cemenl malaria8 syslem, or ullmr (,:) A proper run ti~:ket mu~t be Shut-in actions in olhur ailuuliuna mug · n~,4h~d~ ~(:cepl~l~le t~) Ihs I)MM. t:~mqfl~:lml by the purchaser or only be t~kon uflur due nolice, In ~,~rstmnl Io m~th~)ds ~m] prm:edure~ Ir, nslmrlur prior 1o Federal or Indian °il writing..hu~ boon given , . .. . , -.. ~ - :- .. ..... 47772 § 221.52 Assessments for noncompliance. Certain inslances of noncoml)liance result in loss or damage to the lessor, the amount ofwhiuh is difficull or ...... imi)racticuble Io ascertain. Exccpl where actual losses or damages can be nscertoin'ed in an amounl-]urger than that set forth below, the following omounts ah,Il be deemed 1o cover toss or damage lo Ihs lessor from specific inslances of noncompliance. Provided that hs lo paragraphs [a},/c], [f}, (gl, and [il ct this section the specified [o~s or damage shall be applicable to'each ' successive day of Ihs uom:oml~liance. [al For failure to cnmply w'ilh u v,,.rillen order or instruclions of Ihe Supervisor or DMM, $250 if compliance ~ i:~ not obtained within tilt: lime specified. . (h} For failure Io perform any .i)er. tion ordered in wriling by lilt: Federal Re,"-'"~r / Vol. 47, No. 2013 / Wednesday, ac''''~er'27' 1902 / Rules and Regulalions ~. n01ices, or for failure Io maintain the integrily of any seal placed upon any property or equipment by the Supervisor, S250. '-~ ~ ' § 221.63 PermltleL .' Whenever a lessee fails to comply with any provisions of the lease, of the regulations tn this part, of applicable orders or notices, or of any other appropriate orders of Ihs DMM or.his represenlative, the DMM shall give the lessee notice in writin~g to remedy any defaults or violations. Failure by the lessee lo perform or commence the necessary remedial action pursuant to tile notice may subject the lease !o cancellation proceedings pursuant lo 43 CFR Subparl 3108 for Federal leases or p~:ovlsions of Title Z5 CF~ for Indian peri and.by apPlicable orders and shall n,I be construed ss precluding an assessment pursuant to § 221.52 for any olher act of noncompliance occurring st the same lime or at any other time. · §§ 221.55-22'1.59 [Re~eot~d] . Special Provisions .- § 221.60 Surlace rights. {a] Lessees shall have the right of surface use only to the extent spucificu]ly granted by the lense. Wilh respecl to reslricled Indian lands, addilional surface righls may be :' ' exercised when 8ranted by a writlen agreement with the Indian surface owner and approved by Ihs ' Superintendent of the Indian agenc.v having jurisdiction. {b} The Supervisor Is responsible for.. approving end supervising the surface Supervisor, if said operation is there.fief performed l)y or lhrough the Supervisor; Ihs uclual cost of performance nnd un addilional 25 -' .~"" percent of such amount to comtmnsate Ihs Untied Stales for udminislrntive costs, {c} For failure to obtain approval of App]icnlion for Permit io Drill prior to commencing operations or causing surface disturbance p~ eliminary lhereto or fur failure to oblain approval before initialing any major departure from a - previously approved permit lo drill, $250. (dj For failure lo obtain npprowd of a~ -plan for subsequent well operations before commencing work on a well Io redrilJ, deepen, convert lo injection, using any well for gas storage or water disposal, or anYsther operation requiring prior approval under ~ 221.27 of this Part, $250. {e) For failure lo properly identify a well location or derrick, whether the well is drilling, producing, or abandoned. (fl For failure Io inslall idowout prevcnlers or other related drilling safely and control eqtfipnmnl as n:quired b~ the npprow~d drilling phm, -~r . {g} For failure lo exercise dm: care and diligence in preventing undue dansage to surface or subsurface i'esour{:e~; or surface improvemenls as required by the regulalions in this Purl and Ihs alq)licuble louse terms, $250, [hJ Fur f. ilure Io mainlain rc~:.rds mad file required reporls, records, SUmldeS, or dal~ us required by Ihu regul~ti-ns in Ihis lmrl anti by. opplicable orders anti helices, $~. (il For failure lo obi,in approw~l of u ph~n for well ~bundonmenl prior !o commenccmenl of such opcralions, $250. ii) For failure Io maintain effective se~ls required by the regulations in Ibis leuses, or the lessee lo a penalty of not ' . . use of all drilling, development, and more than $1,000 per day for each and . production activities, on the leuseh01d.' ' every day the terms of the lease, the ':" ' This includes storage tanks and regulations, or such Orders are violated; or to both stich penalty and cancellation: "processing facilitieS, sales facilities, all ': pipelines upstream from such facilities,' Normally, a penalty would only be ,ssessed for violations lnvolv!ng serious threats lo health, safety, property, or Ihs environment, or for conllnuous - disregard of orders. The lessee shall be shrilled lo notice of noncompliance and a hearing within ~ days after such '.' notice, with respect to the terms of the - lease, regulations, or orders violated. '.:' and other facilities lo aid production ' such as water disposal pits and lines,: and gas or water injection lines. § 221.61 Damages on restricted ImJi~n lands. ' ' · Assessments for damages to lands,' · crops, buildings, and lo other · improvements on restricted indiunlands The Penally shall be assessed beginning shall be made by the Superinlendent with the date specified in the notice of "' and be payable in the manner ...,. noncompliance, subiect to the outcom~ prescribed by said official. of the hearing; The hearing shall be held . · ::' by tile appropriate Minerals Manager . .' §§ 221.62-221.69 [Reaervedl -. whose findings shall be conclusive - -[,. unless an appeal is taken pursuant t° 30: Relief, Conflicts, and Appeals .-. : .. CFR Part 290. .. . --' . § 221.70 Relief from operating ~ -":":;""-' ':' ' '- producing requlrementL .-: .:.,. § 221.54 Payment of assessment or · .. penalties. ,', ..... . .; : ' (a) Applications for relief fr°~ either. (a) Assessments made under § 221.52 the operating or the producing " .... are due upon issuance and shall be paid requirements of a. lease, or both, ~hall wilhin 30 days of receipt of "Certified filed in Iriplicate with the DMM, and Mail" written halite, as direcled by the "thcy shall include a full slalemenl of Sul)crvisor or DMM in the notice, Failure to pay assessed damages timely will he subject lo late payment charges un(le.r § 221,123 of this part. -{bi Penalties under { 221,5a shall be paid wilhin a0 days of Ihs completion of any requested hearing us authorized by that section; or wilhin 50 days of Ihs c,mplelion of an appeul pursuanl Io 30 CFJ~ Part 2~. Failure to pay penalties timely will be subject Io late payment cha~es under ! 221A23 of Ihi8 circumstances that rer~der sur'.lg relief ' .~' necessary, · {b} The DMM,'in the inleresl of ' ' conservation, is aulhorizcd to act on · applications submilled for u suspension of operuliOns or production or bod~ filed pursuant to 43 CFR Subparl 3103. Tbs -.~ uppliculion for suspension must be lilt, id- . wilh the DMM prior to the expiration dale of Ihs lease: must be executed by' nil lessees of record or. in the cuss cfa Federal unil approved under 30 CFR ,... the responsibility of coml)lizmce with· the regulations in this part or from liability for waste or any other damage. A · waiver of any particular assessment .. . . purl. Pt)ri 226, by the unit operator on behalf {c} P. ymenls made pursu.'nt to this · . of commilted tracts or by all lessees of section-shall not relieve the lessee'from sut:h tracls; and Include a full of Ihs circumetances that render ~" relief necessa~ ' - {~} If npprowd, a suspension of operations and production will ~ ' :.-'fi' Federal Register / Vel. No. 20(~ / Wednesday, Oclo~E:r 27, 191 Rules nnd lh:gul~timm 4777,3 - i 11_ , , , · i_ ii ._ i i~ i i %vhi(:h the compleled applicnlion wits I~hM with Ihs DMM. Suspensions will It~l II/illiilo WhOll they are m) h,nger luMilicd in Ibc internal of svhen nm;h eolian ia in Ihs inh,~ml ~[ Ihs: h-:.:.~,', or isa olhpr~'iae ~h~lmi by Ilu~ i JNIM in Ibc spin'oval h:lh:r. ~221.71 ~onlliclsbetweentegulaliona. In Ils evenl of any conflicl belween Ibc regulalions in l]~is purl mid leguhllion, in Tills 25 CFR or in 43 CFR Group ~11~. concerning oil ~nd ga8 opmalions on FedcrM and Indian h.,~t:hold$. Ihs regulalions in this peri slmll govern wilh respecl Io Ihs lessee's oblig,li°ns in lhe conducl of oil and otmr~lions, acts of noncom~litmce, and ihs }t, risdiclion and ~ulhorily uf DMM and Ihs Supervi~ur. ~ 221.72 T~hnlem{ and procedural t~vi~w. A lesbee or operalor may requital ~,:chnicai and procedural review of any ~nslruclions, orders, or decisions issued l,y Ihs Supervisor or DMM under Ihs: rvgulalions in lhis peri. Such requesl is:lulling all aupporling docunmnlalion ,,mM I,e filed in writing within 30 sv,,l king days ol-Iht dixie sut;h ~slruclions, orders, or decisim~s ~,Hl'lt sm:sired and musl t,e filed wilh Ihs m~xl higimr level reviewing official {flu: DMM ,,r glinernls Munnger. ,a ill~t.'o{)rilile]. Sm.h {~ requesl nh,Il eel rlmull in a .. ~n~pens}On o[ Ibc }nslrucl}on or order unless Ibc reviewing oi'ficinl so ,h:h:rn~ines. The reviewiug offici,l will iss,,e a final decision wiihin l0 working d,,ys. Where a lechnical and procedural ,-nview is requested, lhe decision issued ,,pon review will represenl lhe final ' decision from which an appe,I nmy be ~,skun pursuant !o { 221.73 of Ibis part. ~ 221.73 ~ppe~l$. inslrm:lions, orders, or decisions ,ssuud under lhe regululi,ns in lifts purl may be appealed in accurdance wilh Ihe p~ovisions of a0 CFR Parl .jo. An sh,,ll nol resull in u suspension of ~mluirement for conipliunce wilh Ihe o~ dar ur decisioq [rani which Ihe ~s h,kt:n unless Ihu of f tel,{ Io whom . alU)esl is made delurminus Ihat ,uslH:nsiou ()[ Ibc }'(:qiiil'elill:lliS ~)[ Ihs m~h:r ur dm:isles will Imf he sl~l~ IO Illl~ inlCrt,M8 of Ih~: ht~m~r m' Ul,t,ii Royally Requirumunls ~ 221.100 P~ofluclion records; rentals, ~oyaltlea, an6 payments; drainage an6 Tim Assucii~le D,'e(:lor h)r Royally M~tllagellle~l shall gOllll)ile it~iil lIHtil~l,in records of produclion and prices, .-del,:rnfine royullies accrued, and -"' eslimale lhe amounl and value of oil.'. gas..nd olher products wasted. The ' ~ As:.m:i.te Director shall render monthly u[ the laws of the Untied the State i,n which Il occurs. ~e lesee~ shall file with ~e h, tl,e.'h:s:4t:e, or his agent, statements, -.. :ihl~lX'lVq{ the 41mlltll'lt Of oil, gus, casing- .' ' h,.~,,i m' nnlurnl {.Intmline. PrOl)uno. l,ul.,,.:, or .Iher hydrocarbons produced m' .st,Id and the amount or value el p,-ml,.;li'.n neon,lng 1o the lessor as ." ruyalty from each lease: the loss by t{rni,~age or wlisle and Ihe compensalion . due Io Ihe lessor as reimbursement' and : excepl as lo any disposal of gas Iha~: ' s}.,ll have been delermined by lhe Associate Director triplicate '.." . -" ' :' "-~' (qaadruplicale I'or production of;.:'":.. :':"-!i:-:'"'i-~ "~ restricted Indian lands or naval ' ' ." petroleum reserveB) executed cople~ of -:::; :: i :. all co'htracts for the dispdsltion of nil ' "~'''':' products of the leased land except that '.. -.. ,, ... parties'used for purposes of production' . on the leased land or unavoidably lost,..' ... and he shall not sell or otherwise.... dispose of said products except in .' ' ' accordance with a sales contract, ':. · :" ":'! Sccrelary of lite lnlerior to be division order, or olher arran8ement sanclioned by Ihe laws of the Uniled " ' firsl approved, as provided in § ~.21.101. St;lies and of the State in which it ' occars, the nmounl and full value, ' { 221.104 Relief from operating, royalty, . - and renal r~ulrements. ·" - . computed at n price or not lea~ than 5 . :... 'Applicalion~ for any modifi~lion': ":' :'~'' ~':':''- cm~ls per 1.~ cubic feet. of all 8u8 whaled by blowin8, release, escape lnlo '..' authorized bY lfiw of the royalty'or · '~': ' .'. ~.~: the air, or otherwbe. Also. as to ' rdnlul requirement8 of a lease'for lands 5':: j'...:'::'.j-~ producing leases of Indiandands and of lhe Untied Slales 8hall be filed in '::.: .~, l;Jl~tls wilhin naval petroleum reaches," triplicate in the office of the Associate. :. dm Assm:i.te Direclor shall determine 'j :Director. '.' ....... . .. . ' r/mhd liabilily, record rental royalty, C~ss Rofumn~ For resulationu t,f the ' ~tnd oil)er payments, and mainlain leuse Bureau of ~nd Manaffemenl relating to :: - .....- ;.:c~,unlu. royally .nd renlal relief. ~n(! suspension el '" . . olmruliun8 and produclJon, aec 43 CFR Parl~ ' ~ 221 101 Division orders, run tickets,'- ;' - 3~[~ 1o31~ ' : [ales'agreement or contra~l. ' ' " "' ~ ~ t th ~ 221 105 Royalty and renal payment~ Ti e As.' m'; : Director is aulhorized ' ' .J~.' Io approve, subiect lo .uch conditions au [u) When due in money, lhe. leaaee·: ' ..'?:-: ':--~.[ im ~hnll i.'e.crilm, division order, or .hull tender all payments of renlal and: :~:.".: lemlmrnry purcha.e a~reemenl, · ' .... ro~ally by check or draft on a aolvenl "..- Hr; sling 1~ lrnn.porlulion agencies or'~ ~' bank or by money order drawn lo the, ', :'.. - ~ · · " '" purchasers authority to ~ceive products - order of the approprmle receiwn$ - ...:: from leased lands in hccordunce with ~ ' officer, tn accordance with statements-;~, 'r ~f':~ :..'~ G;~vernment rules and regulations; sign .~ rendered by the Associate Director :.'-;.- run lickcls or other receipts for ro~nlly purstmnl Io { Zgl 1~ or in the case or '~ . ' ~ :' q' ~. '..--:1 oil or gas delivered to a representulive ' - pnblic-l~nd leases in accordance with :: of Ihs lessor or lo the lessor'a account; :. instructions of the Bureau of ~nd and approve sales agreements and .-,,'~ .i % Management. ' ': ' c.nh'acts, m~bject lo any conditions, ' ' {b} If Ihs lessor elm:Is to take royally ' ~..~-.~?'~5..'. '.'~: ' .... · nmdification, or revocation thai may bu l),'escribed on review thereof by the , -::' l_)irecior. '. £'.rus~ Rah;renew: For reaulalion~ relaling ai,l,~ oval of sales agreements ur contracls. u,,: Pnrl 223 of Ibis chapter. - ' ~ 221.102 Waste prevention; beneficial · : US~. The lessee iu obligaled 1o prevenl Ibc w.sh: of oil or ga~. and Io avoid - t,hy~,imsl 'svasle of gna, lhe lessee slmll ... c,,,~sm,m il l,e.uficI,dly or murkul il or : I't~{L~l'li iL !. lhe produclive furmuLiun. sv.s~e urgas ocm~rs, the lessee shall pay Ils h:s,.r lhe full value of ail Ra, wauled by bi.wing, release, escape, or .lhe,'wise ill II price sol 1e88 ihan 5 cents. h,' imc}~ l.{ff~) cubic feel unh:~s, on apl,liualion by lhe lessee, such wusle uf gna umler ll,e parlicul,r circumslnnces involved shall be delnnnincd by ~ccrclary Io be sanctioned by the law8 in oil or gas; unless olherwise agreed upon, 6uch royalty shall be delivered nn" the leasehold, by Ihs lessee !o the order of and withoat cost to the lessor, ~s inBtruutedby Ihe Associale Director. : .§ 221.1011 Measurement of oIL · · Lease Production; p/pe//ne runs. - For Ihs convenience of the lessor and lessee, monthly slatements of production and roy.lly shall be based in 14anertd on produclit,n recorded in plpellnn run,, or olhttr shlpmenls, When shlpmenl8 are infrequent or do not ,pprox{malu unh, ul production, Ihe Assoclule Direclor may require . slatumenls of produclion and royally to be made on sllt:h oltu:r t,a~iR aS he fi'icy prescribe, gains or losses in vulume of sloruge being laken isle account when ~q~propri,le. Evidence of all shlpmunls of oil shall be furnished by pipeline or Federal Registc Vol. 47, No. 206 / Wednesday, Octotm ' ~1982 ! Rules and Regulations .. h:as{:holds from which gas is delivered to the plani. · ' '-' ' ': {d) If the nel output of butane, · pmlmne, or other liquid hydrocarbon substances of a plant is derived from gas obtained from several leaseholds, the proportion of nel output of such substnnces allocable lo each leasehold as a basis for computing royalty will be determined by subslituting the bulane, propane, or other liquid hydrocarbon content for' the gasoline content and following the method outlined in ln,ragraph th) or {c} of thi~'section, whit:hayer is applicable: Progided, Thai other run tickets signed by . representatives of the lessee and of the purchaser who have witnessed the mensuremenls reporled and Ihe determinalions of gravity, temperature, and the percentage of impurities contained in the oil. § 221.107 Measurement of gas. Gas of all kinds [except gas used for purpuses~of production on the leasehold or unavoidably lost) is subject lo . royally. §221.108 Determ~ation of gasoline where the leased lands are situated will . [ be consith:red to be a reasonable ~.alue....-.'. · -. § 221.111 Royalty r~ta o~ oil; tiM-tutu..:..'" ~'::.-.:'~ I~ases. Thc royalty on crude oil shall be the' - . perct:ntuge [established by the terms of .~ the lease} of the value or amount of the ... crude oil produc, ed from the leased lands. '. § 221.112 Royalty rates on o11; $1kllog- ~ step-scale leases (publh; laud o~ly). Sliding- and'step-scale royalties are .- based on the average dally produt:lion content of natural gas. Tests to delcrmine the gasoline content of~as delivered to l)lants nmnufacturing Nasoline are required to che~k plant cfl'i~ienuy nad h) oblain nn equil;d~le basis for allocating Ihs gasoline oulpul oF any plash !o Ihs several retort:es from which Ibc gas lrealed in derived. when in the judgment of tile Associate per well. The Supervisor shall specify Di,-eclor, it is impracticable to test gas to which wells on a leasehold are demrmine the conical of buhme, propane, or other liquid hydrocarbon st,bstaimcs, the gasoline content will be used in detcrminin8 the proportion of Iht: net output of such substances allocable Io each leasehold. lc} The Associate Director is commercially productive, Including in that category all wells, whether . produced or not, for which the annual "- vnlue of permissible produclion would ' · be greater than the estimated reasonable annual lifting cost, but only .' ' wells which yield a commercial volume - § 221.109 Quantity basis for computing royalties on natural gasoline, butane, propane, and other liquid hydrocarbon substances exlracted from gas. The primary quimtily [);isis For compuling monthly royalties on casing- head or natural gasoline, butane, proplme, or ollu:r litl,id hydrocarbon sol)stances uxlr~tcted from gus is the monthly net oulpul of Ihs planl al which the subslanues arc ntanufaclured, "net oulpul" being defined as Ihs quunlily-o[ e.ch such substance thai the plant produces for sale. fa} 1[ lhe nel oulput of a plant is gerived from the gas obtained Irum only one leasehold, Ihs quantily of gasoline or other liquid hydrocarbon subshmccs of which con~puhstions of royalty for the lease are based is the net output of the planl. {b} If the nel gasoline oulput of a phml is derived from gas obluined from several least:holds producing gas of uniform gasoline coillenl, thc proporlion authorized, whenever in his judgment · of production during at least part of the -" .. re:tiber method prescribed In paragraph month shall be considered In :'.; ... 11)1 and {el of this section is practicable, ascertaining tho average daily · · :-:-:. "- lo estimute the production of natural '..,..:.~: production per well. The average dally ...... gum)line, butane, propane, or other . production per well for a lease is .' liquid hydrocarbon substances from any computed tm the basis of a 28-, 29-, ~0~; leasehold frmn (1) Ihe quanlity of gas or 31-day month (as the case may bo},. . '- l)rodaced from the leasehold and ' . ." the number of wells on the leasehold. .- trnnsmilh:d to tho extraction plant, (21 equaled as producing, and the gross :'".' Ihu gust)line, butane, propane, or other . production from th(*, leasehold, i'l'ubies: ' liquid hydrocarbon'content of such 8as ' ' for computing royalty on the sliding-' :'-'.' as determined by test, and [3) a factor ." scale m~d on the step-scale basis may be - ': based on plant efficiency or recovery · ' obtained upon application Io the ' ' ' · and so determined as to insure full Associate Director.} The Supervisor will' ' prolection of the royalty inlerest of the". determine which commercially : lessor. . . productive wells shall b~ considered ":.' each month as producing wells for the.'~: § 221.110 Value ba~ls for comp~lng ':' purpose of computing royalty in royalties. ' ' '" ' accordance with the following rules, and .The value of production, for th~ ' ' ". purpose of computing royalty, shall be in his discretion may count as producln~ .. · any commercially productive well shut- ' lhe estimated reasonable value of the" ' . in for conserve.tiaa purpos, es. product as determined by the Associate (a) For a previously producing .-' Director due consideration being given leasehold, count as producing for every. to Ihe highest price paid for a part or for t)f net tnillml tlr gasoline slim:able to u nmjorily of production of like quality day of the monlh each previously · " producing well Ihat produced 15 days or each lease us a hnsis for cOral)sling in Ihs same field, to the price received .. more during Ihs month, and disregard roy~ity will hc determined by dividing l)y the lessee, 1o posted prices, and to .. wells'that produced less than 15 days lisa illllt)tlill of gas tlelivcrml lo thc l)iilnt · -other relevant matters. Under no during the month. " from each leasehold by Ihs lolal uniounl : circumstances shall the value of of gas delivered by the plunl from all leaseholds. (c} If th(: nel gasoline output of u plant is d,rivud [rt)m g,s obtained froin several leaschold~ producing 8a~ of diverse gasoline content, the proporlion of nel oulpul of gasoline allocable to each leasehold as a basis for uompuling royally will be determined by mu}liplying lhe amounl of gas delivered In the phial from the leaseholds by tim gasoline content of the gus and divitling Ihs arithmeliual producl Ihua oblainetl by the sumof Ihs simular arilhmeligal products separately 9blained for production of any of said substances for · lb} Wells approved by the Supervisor the purposes of computing royalty be as input wells shall be counted as ' · :.. producing wells for the.enlire month if deemed to be less than the gross .- proceeds accruing to the lessee from lbo" ' so used 15 days or more during the '.'.:.. sale thereof or !ess than lite value . ,:]. 'month and shall bc disregarded if so' - k;ompuled on such reasonable unit value used less than 15 days during the month. us shall have been determined by the (c) When the Initial production of a Secretary. In the absence of good reason leasehold is made during the calendar to the contrary, value computed on the month, compute royalty on the basis of basis of the highest price per barrel .... producing well-days, · thousand cubic feet, or gallon paid oi" (d) When fl new well is 'completed offered at the time of production in a fair production on'a previously producing and open market for the major portion of leasehold and produces for 10 days or like-quality oil, 8as, or other products more during the calendar month in produced and sold from the fluid or area. which it is brought in, count such Federal Register ] '~ 47, No. 208 ! Wednesday, October 27, 32 ] Rules and Regulations 47775 .... --- - - _;-£- 3[ i JJ ii i i i ! i i ..... j~___j ii1~1 .IL I . I II ' .-' ..... ',,4 :';: :.~., wells as producing every day of ihs tlUOli~:nt thus obtained by the number of § 221.115 Royalty on drip gasoline ur nmnlh, in arriving al Ihs number of day~ in Ihs monlh, other neural oonden~le. prodm:ing w.ll-days. Do ual counl any The royally on ail drip g.solin~, or new well lhal producu~ for less than 10 ~ 221.113 . Royally on ga~. ' :~" olher natural condensate recovered from d,~ys during the calendar munlh. ' Th.e royally on gas shall ~ the ' - gas produced from the leased lands fo} Consider "head ~elis" Iha~ make percenlage eslablished by Ihs terms of without resort to manufacluring process, their be~t prodat:lion by inlcrmillenl Iht: hmse of Ihs value or amounl of the shall be Ihs same percentage as .' pumping or flowing as producing avery gas i~roduced, probided in the lease for other oil, day of ~hc monlh, provided lhey are ia) Royally accrues on dry gas,. except Ihal auci~ subsluhce, if processed rcgular}y operalcd in Ibis manner, with wlu~lhm' produced as such or as residue in a casing-head gasoline plant, shall be i~plnoVal of lh~ Supervisor. gas slier Ihs exlraclion of gasoline'.. Ireated for royally purpoaea a~ though il [fl For previously producing Ih} If Ihs icsse~ derives revenue on were gasoline. h:aacholds on which no wells prodm:t~d gi~s from Iwo or more producls, a royalty . , for 15 days or nmrc~ compute: royally on naturally will be collecled on all~uch } aal.l~ ~qui0al~d ~a~g a b~sis of actual prodtn;ing well-days, prodtmls. . AdminislraHve cohls ar/sing oul of {g} For previously producing {el For Ihs purpose of computing certain defaulls or violations of orders leaseholds on which no wells were royally, the value of wet gas shall be requiring ~o perfo~anca of ceaain producing during Ihs calendar mtmfl~ bul ei~hm' ~h. gross pro~eads a~cruing lo Iho dulio~ by lassoes, a~ sot forth in the '.' frmn which oil was shipped, compule h:s~.m from Ihs sale lharoof or Ihs . ' regulaHons ~ Ibis peri, conslllute Iaaa or . royally t~t Ihs same royally percentage aggregale valOe dete~ined by the ' damage Io Ihs United Sla~ the amount as Ihat of Ihs last prec. din8 calendar. Secrelary of all commodilies, Including of which i~ difficult or Impractirable of mtmlh in whit;h prtnlut;lion and . . r~:~id.e gna, obh~ined therefrom, '- ascorlainmonl. Tharoforo, the following shipmenls were norm,H. ~ whichevt~r is 8r.aler. .. - - · amounts shall be deemed to corot ~u~ . . fbi Rt~ies for special cases not subjcul "' ~ 22~.114 ' ao~a,y on casln0-h~a~, or : loss or damage and shall be payable. ~iveraging Ihs produclion from lwo ' liquid hydroca~on aubst~ces extr~t~ ' ~ Associate Director of such loss or dislin~,l sands or horizons when Ihs . ': from gas. . . damage. ~ .~". ::' produclion of one sand or horizon is ' A royally as provided in Ihs lease ' [a} For failure io comply wilh a relatively insignificanl compared lo lhal shall be paid on the value of'one-third wrilten order or Jnslruclions of the ~[ Ihe oth.r, ~ha!l be made by the · ' [or Ihe le~ee'~ porlion if Stealer th~n ~ociate Director, $2~ If ~ompli~nce 1~ ~sociate Director au need arises, one-thirdl o[ all caMng-head or naturd not obtained ~lthin Ihe ffme ~pecified. {i} Il ) In the following Summary of gasoline, butane, propane, or o~er ~1 For hilure lo file sales contrac~ or operations on a typical leasehold for the liquid hydrocarbon substances division orders.as required by lease month of June, the wells considered for exlracled from the gas produced kern' lerms, $25 for each violation, and for ' the purpose of comp.ting royalty on the ' Ihs leasehold. The value of the · failure lo submit pipeline ~n tickets, or entire produclion of Ihs in operly tar the remainder is un allowance for the C°sl' olher proper evidence of disposal as ., months are indicaled, of manufuclure, and no royalty thereon required by thesE ~8ulationa, ~0 for -- o is required. The value shall be aa each violation. ' ' dt:lcrmined lhol the minimum royally - {c} For failure lo file the following ......................... ].. ..... w~ ~. .~u ~ ~a~ m:(;r.ing to the lessor shall be ~e - . reports within the time specified In the" ._ x~ percenlage established by ~e lease of - regulations in this pa~, or.within ~uch "'; '-" ~ ................... ~ ~o~ ,~ ,. ~ x. .fl~e amouni or value of all extracted other time designated in ~ting by the . ' a~. hydrocarbon substances accruing lo the . Associate Director, $10 for each .~ ~":. z ................... ~- ~ ~'; ~.~,: x. lessee under an arrangemenL by .-violation. ' ~n 4 days ~ ~[ : . ' - a ................ ~ ~. ~s ~,.. x. ' conlract or olherwise, for extraction and '{11Lessee', Monthly Rep~rl of . . ~ ~ s, ~ ~,, sale that has been approved by the Operations. Daily Report of Cas-'" '.~/'.' ;"'~" t~; ~m 14. 6 ~S, .m~ ~: &.. ~. Associale Direclor. ~oducing Wells, when required. '~; ~' '~. ~",m ,~ la} When a minimum price ~asee'a Statement of Oil and Gas Ru~'.':".' "~ ~' eslablished by the Secretary is used in and Royalties .... -.- :' :~. ~. ~ ~a ~ ~0. delerminin~ the value of natural {21 Special forms or reports as a ................ ~,=, ~, ~m x. gasoline accruin~ lo the lessee, Ihs ' - "'"" ~ ~.o ~,~ - required by the Associate D~ec~r. ' s .................... ~ ,~., ~ ~. volume of such gasoline may be ' . ~. p~ ~ ~ a~. the Associale Direclor lo such slandard : (Fo~ ~329 Public; Form ~329A Indian). ' · ~ ~. ~ ~ and by such mclhod as may be ' ' A separale reporl et operations for ' ' ~a' ~ ~ ~ ~' approved by Ihs Associale Director, in. each leese must be made on Form ~3~ . order lhal volumelric differences for public land and on Form ~32DA for' 12) In this example, lhera are eighi bolwecn natural gasolines of various Indian land, for each calender month, . wells on tho leasehold, bul wells Naa, 4, specil'icationa may be equilably beginning with the monlh in which 6, and 8 are nol'counled in cOmpuling adjusted, drJllin8 operations are initiated, and '.' royalties. Wells Nos. 1, 2, 3, 5, anti 7 are (b} The preseni policy is to.allow the musl be filed in duplicale with the counled as producing for 30 days. The use of a reasonable amount of dry gao Supervisor on or before the oth d~y pt average produclion per well per day is for op,:ration of Ihs gasoline plant, Ihs the.succeeding month, unless an ' dclermintnl by divitlin8 Ihs iolal . umounl ullow.d being determined or exlenMon of lime for Ihs filing of such produclion of Ihs luust~hold for the approved by Ihs Associate Direclor, but report la granled by Ihs Supervisor. The month (ira:lading the oil prOdm:~d hy no allowance .hall be nmde for boosling reporl on Ihia form shall disclose wells 4 and fi) hy 5, Ibc humbler of w~:lls rusiduc gas. or other expenses incidunt. I accurately all open~lions conducted on counled ua producing, and dividing Ihs to markeling, each wo]l during each monlh, Ihs -.. " ,.% 47776 Federal Rogist Vol. 47, Nt). 208 ] Wednesday. Octo't, :7. 1082 / P, ulcs and Regulalions t,f operations on the lust day of thc month, and a general stlmmary of the slalus et operations on tire leased land~, and Ihe report musl be submitted each monlh until the lease is lerminuted or § 221.11B Dally report of gas-producing wells (Form 9-352). Unless otherwise directed by the Associate Director, the readings of all meters showing production of natural paymenl charge may be grunled when estimated paymenls on minerals - produclion have already been made limely and otherwise in accordance with instructions provided by MMS to the until omission of the report is aufimrized by lhe Associate Director. It is particularly necessary thai the report . ~hall show for each calendar month: {a} The lease be identified by inserlio8 Ihe name of the United Sluice hind office and the serial number, or in the case of Indian land, the lease number and ]essor's nume~ in the space provided in lhe upper right corne~ {I)} Each well be listed sepuralely by number, its h)cation be given by 40-acre subdivision {~ ~ sec. or loll section number, township, range, and meridian; {c} The number of days each Well produced, whether oil or gus, and the number of days each inpul well was in operation be stated; {dj The quanlity of oil. 8as~ and water produced, the total amount of gnat,line. 'and other lease producls recovercd~ and other required information. ~'hen oil i~nd gas. or oil, gas. nad gasoline, or other hydrocarbons are cuncurrtmlly produced from Ihe same lease. SCl)Stale rept)rls on lhis {arm should be submilied otherwise aulhorized or direcled I~y lira Associate Director. {e} The deplh of each active or suspended well, and Ihe nqme, - i:haracler, and depth of each formation drilled during the month, the dale each such depth was reached, the date anti reason for every Mlut-down, the names and deplhs of important formation changes and contents of formations, lhe umounl and size of any casing run since last report, the dates and results of any tests such as production, waler shut-off, or gasoline content, and uny other noleworlhy information on operations not specifically provided for in the form. lq The footnote must be completely filled out as required by the Associale Director. If no ~ns or sales were made during the calendar month. Ifa rupert mum so ~tale. gas fram leased lands shall be submitted daily on Form 9-352, together with the meter charts. After a check has been had. the meter charts will be returned. § 221.119 Statement of oll and gas runs and royalties (Form 9-361 Public; Form 9- 361A indian). When directed by the/~sociate Director, a monthly report shall be made by'the lessee in duplicate, on Form 361 or Form 9-.-301A, showing, each run of oil, all sales of gas, gasolin.e, other lease products, and the royalty accruing therefrom to the lessor. When use of this form is required, it must be completely filled out and sworn to. § 221.120 Royalty and rental rer~lttafice ' (Form 9-614A Indian), Form 9-014A, compleleiy filled out · different rate, this percenlage and signed, shall be submittedlo the ' 'assessment rate is prescribed by the Associate Director in triplicate and shall · accompany each remittance covering payments of royalty or rental on Indian lands. ' · § 221.121 Royalty and rental remittance (naval petroleum re~erves). Remiltance covering payments of royally or realm on naval pelroloom reserves musl be accomplished by necessary identification information and sent direct 1o the Director, Naval l'elroicum Reserves in California. ' · § 221.12.2 Special forms or reports. When special forms or reports other than those referred to in the regulations in this part may be necessary, instructions for the filing of such forms or reports will be given by the Associate . Director. . . § 221.12:3 Late payment or underpayment charges. [a} The failure to'make timely or · proper payments of any monies due pursuant to leases, permits, and contracts subject to these regulations . will resull in Ihe collection by the MMS., other, enforcement proceedings.. · of the full amount past due plui a late.: I~'a r~ ~-:~*~ v,.d ~o-:,-~'-u .,,,I: ' · .-, pvyment charge. Expeptions to this late ~aJ~ coot / .. ': : payor. However~ late payment charges assessed with respect to any Indian lease, permit, or.contract shall be collected and paid to the Indian or tribe lo which the amount overdue is owed. {b) Late payment charges are assessed on any late payment or underpt~ymcnt from the dale that the payment was due unlil the date on which the paymenl is ..' received in the appropriate MMS accounling office. Paymenls received after 4 p.m. local time on the date duo will he acknowledged us received following workday. "' (c) Lale payment charges are -calculated on the basis.of a percentage. assessment rate. In the absence of a ' · · - . . specific lease, permit, license, or contract provision prescribing a "-: '" ':. Department of the Treasury as the - '": ."Treasury Current Value of Funds 'Rate." ' ' {d} This rate is avail[~ble in Treasury Fiscal Requirements Manual Bulletins .. that are pul)lished prior to the first day .. of each tmlendar quarter for application' · .Iooverdue payments or underpayments . in that new cah:ndar quarter. The rate is ' else published in tire Notices section of '- the Federal Register and indexed under .. "Fiscal Service/Notices/Funds Rate; ' .Treasury Current Value." (e} Late payment charges apply to all underpayments end paymenls received after the date due· The charges include production and minimum royalties; '.assessments for liquidated damages; administrative fees and payments by .purchasers of royalty taken-in-kind; or - any other payments, fees, or · assessments that a lessee/operator] permitter/payor/royally taken-in-kind purchaser is required to pay by a specified date. The failure to pay pasl . due amounts, including isle-payment . · charges, will result in the initiation of lqovember 9, 1982 Mr. P. R. Jndd ~ril ling Manager ~ Sohio Alaska Petroleum Company Pouch 6-6!2 Anchorage, Alaska 99502 Dear k~r. Judd: Thank you for your ~¢tober 26, t989 letter tranmnitting your company'~ application for a permit to drill Siksrik I~o. !. have approved your application and returned same directly to Mr. R. H. Reiley, signator to the application. Mr. Judd, th~ Commisszon rea~zzy identifies with the potential for problems arising where a party is subject to regulation by two sek ar=to entities However, i believe that your concern may well be alleviated upon review of the tract record of cooperation existing between ~ ~t ~- ~,,~ and its ~ed~_esSor . the Com~_s~l~ n~ , -~ ~ the with the Minerals i,~anagement Service (~R-~S).and its predecessor the "Geolo~',.&cat Survey" on federal lanqs operated, by others within Aia~ka. And further afield one nay be comforted by that sa[~e spirit of cooperation which exists between ?~%S and similar ' ~ ~eral and Tndian lands in the "South Ag" states agenczes zor . ~az~ to ~,are your ~e~'~n,,.- that re~ula, t~ons of necessarily eawrv~ _ ., out the intent and purpose., of Title ,~i. In fact, ten decades m¢o the Federal Government placed itself on record in support of conservation programs executed by the s¢~es. ~e= - ~. ~',= i~ of conservation statutes still remazns~ a function of the states. ¥3~ere ~tate statute and repmlations provide a stricter 'standard of operation than those oz ~-=~-~_~ zc o=co~.~s an impl it rather than a voluntary .option to comply with state requirements, And it would have to be a ~_~ost unique event for the federal repro- _ c..,=l to approve prow sion of sentative h. avin~: ~ur~sdiction to ~ .~ AS ~ ~ ~-_, .05. ~. P. R. Judd November 9, 19 8 2 Pa~.e 2 Again, may I assure yOu that the dual role played by MMS and the Commission will not prove to be onerous nor burdensome to your operations on federal lands. Sincerely, C. V. C~attert0n ~ Chairman cc, ~r. Robert E. Golf ~e/rvie~~e ~-~.~o~ Minerals Mmnagement_ ! CVC z be i~ovember 3, 1982 Mr. R. H, Reitey District Drilling Engineer Sohio Alaska Petroleum Company Pouch 6-612 Anchorage, Alaska 99502 Re: I~PRA Block No. 3 Siksrik No. 1 Sohio Al'as~a Petroleum Company Pe~it No. 82-186 Sur. Loc. 900'NSL, 1020'WEL, Sec. 2, T10N, Btmhole Loc. S A~i E mr. Reiley~ Enclosed is the approved application for pert~it to drill the aboVe referenced well. If coring is conducted, a one cubic inch chip fro.~ each foot of recovered core is required. Samples of well cuttings and a ~.~.ud log are required. An inclination survey is required as per 'C 20 AA- 25.050(b)(5). If available, a tape containing the digitized log information shall be submitted on all logs for copying except experi~enta! logs, velocity surveys and dipr~eter surveys. ~ny rivers in Alaska and their drainage systens have been classified as important for the spa~ing or migration of anadron~ous fish. Operations in these areas are subject to AS 16.05.870 and the regulations promulgated thereunder (Title 5, Ata~a~' Administrative Code) . Prior to commenc'~ ~ operations you may be~contacted by the Habitat Coordinator s m~'u~ce, Departsnent~ of Fish and Gan~e. Pollution of any waters of the State is prohibited by AS 46, Chapter 3, Article 7 and the regulations promulgated thereunder (Title 18, Alaska Administrative Code, Chapter 70) and by the Federal Water Pollution Control Act, as amended. Prior to c~nc~_~, operations you may be 'contacted by a representative of the~pa~n~-~--rtment of Environ,mental Conservation. WOr~- ~ To aid us in scheduling field ~ ~' please notify this office ~,+ nours przor to com~ .... ci~ installation of the blowout b~ro R. H. Reiley NPRA Block No. 3 $iksrik No. 1 -2- November 3, 1982 prevention equipment so that a representative of the CommiSsion may be present to witness testing of the equipment before the surface casing shoe is drilled. %~ere a diverter system is required, please also notify this office 24 hours prior to commencing equipment installation So that the Commission may witness testing before drilling below the shoe of the conductor pipe. In the event of suspension or Wbandonment, please give this office adequate advance notification so that we may have a witness present. Very~ ,,truly yours, u. V. Chatterton Chairman of ~¥ OROF. R :Of IH~ GO~]iSM~ON Alaska Oil and Gas Conservation Comml-~sion Eno lo sure cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. CVC ~ be SOHIO ALASKA PETROLEUM COMPANY 3111 "C" STREET ANCHORAGE, ALASKA TELEPHONE (907) 276-5111 MAIL: POUCH 6-612 ANCHORAGE, ALASKA 99502 cc# 49.162 October 26, 1982 Mr. C. V. Chatterton, Commissioner ALASKA OIL & (~S C05~ERvTLTION ~IC~ 3001 Porcupine Drive Anchorage, AK 99501 Re: Siksrik Well No. 1 Dear Commissioner Chatterton: On September 8, 1982 we furnished you with a copy of the USGS application for a permit to drill the referenced well and other information, as indicated in the attached copy of the cover letter, and copy of the application for permit to drill to the geological survey. We have enclosed the following documents, in triplicate, along with our check for $100 to cover the permit filing fee: Proposed drilling program outline; proposed blowout prevention diagram & surface diverter system detail; and, surveyor's plat showing well location. We understand that the Commission requires a separate permit to drill under 20 AAC 25.005. We have enclosed an application for permit to drill on this basis, but conditioned on the matters stated below. AS 31.05.027 extends the authority of the Commission to all land in the State lawfully subject to the police power of the State. The statute purports to apply the jurisdiction of the Commission to land of the United States, but only to the extent that control and supervision of conservation of oil and gas and prevention of waste by the United States on its land fail to carry out the intent and purpose of Title 31. Provision is also made for a federal officer to approve any of the provisions of Title 31 or orders of the Commission which affect federal land, thereby voluntarily submitting land of the United States to jurisdiction of the Commission. RECEIVED OCT 2 8 1982 Alaska 0it & Gas Cons, 0ommission Anchorage Mr. C. V. Chatterton, Commissioner October 26, 1982 Page two At the present time we do not feel that the regulations of the Geological Survey in any way fail to carry out the intent and purpose of Title 31, with respect to the prevention of waste or conservation of oil and gas. Of course, to the extent that State regulations may provide a stricter standard of operation, we may well choose to voluntarily adopt these regulations as they in fact reflect our usual operating practice on the North Slope. Accordingly, we do not anticipate any actual conflict between orders of the Geological Survey and the Conservation Commission; however, should such a conflict develop, we expect that the two agencies will proceed in good faith to resolve the conflict as between themselves. Pending resolution of the conflict, we intend to follow the specific directions of the U.S. Geological Survey. I am sure you can understand that, as the regulated party, we can find ourselves in an uncomfortable position if the two agencies are unable to agree on a specfic course of action -- particularly if a decision should be required on short notice. We are sure you will work in good faith to alleviate any possibility of such a conflict. Very truly yours, P. R. Judd / Manager Drilling PRJ: cyn Enclosure s ~--'" STATE OF ALASKA --" ALASKA ,3IL AND GAS CONSERVATION CuMMISSION PERMIT TO DRILL 20 AAC 25.005 la. Type of work. DRILL REDRILL DEEPEN lb. Type of well EXPLORATORY [~ DEVELOPMENT OIL [] DEVELOPMENT GAS [] SERVICE ~] STRATIGRAPHIC [] SINGLE ZONE [] MULTIPLE ZONE [] 2. Name of operator Sohio Alaska Petroleum Company 3. Address Pouch 6-612, Anchorage, Alaska 99502 4. Location of well at surface 900' NSL, 1020' WEL, Sec. 2, T10N, R1W, UPM At top of proposed producing interval 900' NSL, 1020' WEL, Sec. 2, T10N, R1W, UPM At total depth 900' NSL, 1020' WEL, Sec. 2, T10N, R1W, UPM 5. Elevation in feet (indicate KB, DF etc.) ] 6. Lease designation and serial no. Est. KBE = 110' AMSL I AA 46601 Tract 821-03 12. Bond information (see 20 AAC 25.025) Type Blanket Surety and/or number Safeco Ins. 2975387 -I 13. Distance and direction from nearest town 14. Distance to nearest property or lease line West of Nuiqsut - 30 miles 6300 feet 16. Proposed depth (MD & TVD) 17. Number of acres in lease 8050 ! ~ feet 22,896 Vertical Hole 120. Anticipated pressures MAXIMUM HOLE ANGLE o I (see 20 AAC 25.035 (c) (2) I 19. If deviated (see 20 AAC 25.050) KICK OFF POINT feet. 21 9. Unit or lease name NPRA Block #3 10. Well number Siksrik No. 1 11. Field and pool Wildcat (Exploration Proposed Casing, Liner and Cementing Program Amount $200,000.00 15. Distance to nearest drilling or completed well 29,000 feet 18. Approximate spud date December 1, 1982 3111 psig@ Surface 3783 psig@_ 8050 ft. SIZE Casing 20 Hole Weight !26" 104# 72# 47# i17 1/21 13 3/8 1/4[ 9 5/8 i8 1/21 7 29# 22. Describe proposed program: CASING AND LINER I co..,i.,l -80I utt. L-80 I Butt' L-80 I Butt. SETTING DEPTH QUANTITY OF CEMENT Length MD TOP TVD MD BOTTOM TVD (include stage data) 80 ' Surface 115 ' 115 ' 360 cu. ft. Permafrost 2700' Surface 2700' 2700' 3200 cu.ft. Permafrost 7750' Surface 7750' 7750' 360 cu.ft. Class G; J1370 cu. ft. Class G; 130 cu. ft. Permafrost 800' 7250' I ,7250' 8050' ~ 8050' . 120 cu.ft. Class G See attached Drilling Program Outline. RE£'EIVE Alaska 0ii & 6as Cons. Cornmiscicr~ 23. ' hereby cer~Cy~t the f/~reg~orrect to the best of my knowledge I\ / ~ ~ / ~, % /~"-,. District Drilling Engineer SIGNED \O ~-"t.,/ "~ '4 ~ TITLE The space below for Commission use R. H. Reile~% CONDITIONS OF APPROVAL Samples required ' ~YES []NO Permit number i Mud log required J~YES []NO Approval date · - DATE I O'ZS'8'L Directional Survey required I APl number I-lYES I~'NO I 50- 103-20022 SEE COVER LETTER FOR OTHER REQUIREMENTS .COMMISSIONER DATE November 3, 1982~'''- by order of the Commission SIKSRIK ~1 DRILLING PROGRAM 1. Prior to moving rig, auger 26" hole and install 80' of 20" conductor. 2. Install and function test 21 1/4" x 2000 psi diverter system. 3. Spud well and vertically drill 17 1/2" hole to 2700'. 4. Run open hole logs, as required. ' 5. Run and cement 13 3/8" casing to surface in one stage with permafrost cement. 6. Nipple up and test 13 5/8" x 5000 psi BOP. 7. Drill out 13 3/8" shoe. Perform leak-off test. 8. Vertically drill and core 12 1/4" hole to 7750'. 9. Run open hole logs, as required. 10. Run and cement 9 5/8" casing in three stages. The first stage will place Class G cement from the shoe up to f7000' BKB. The second stage will place Class G cement from 6900' BKB up to 3400' BKB through a DV collar placed at 6900'. This will provide zone isolation for a possible test in the Torok Sands and also bring cement 500' above possible hydrocarbon bearing zones in the upper Torok interval. The third stage will place non-freezable fluid in the 9 5/8" x 13 3/8" annulus from surface down to 2200' BKB followed by permafrost cement from 2200' to 2600' BKB through, a DV packer collar placed at f2600' BKB. 11. Drill out 9 5/8" shoe and perform leak-off test. 12. Vertically drill and core 8 1/2" hole to TD (~8050'). 13. Run open hole logs, as required. 14. If encouraging hydrocarbon shows are found in the lower Torok siltstones, a 7" liner may be run and cemented in one stage with Class G cement such that a cased hole drill stem test may be carried out. 15. The 8 1/2" hole/7" liner will be abandoned and a second drill stem test performed in the 9 5/8" casing if encouraging shows are found in the Torok interval. 16. The well will be abandoned and the wellhead removed. ~las?,a Oil $ Gas Cons, gnChorago REVISED'SURFACE LOCATION ~ '~1 I~ . ALTERNATE NO. I - I~ % JJ I J) ' .: s,KS,,No.~ .:-. ' '~' -, - ~ 'J/ ,_ ~ ., . LAT. · 70~)4'4~.46' "~ I II ~ 12 7 LONG., 15~eO)' 07.7)' I J X, ?4).m)S I , I I I Y = 5,94~,0~2 I I0 I I 16 I I I I 1 I 2~ I I L f hereby t I I I I- I I I I I I '0 ! CERTIFICATE OF sURVEYOR I? ' I ~ 2~ I l I I SCALE: I"= IMILE certify that I om properly .registered and licensed to practice land surveying in the State'of Alaska and .. that this plat represents a location survey made by me or · under my supervision, and that all dimensions and other . details are correct.- SURVEYOR . . Date Gory T. IIN T. ION. I ECE/VED OCT 2 8 i982 Anchorage COmmlscion PROPOSED REVISED SURFACE LOCATION ALTERNATE No. I - SIKSIK No.I Located tn SE I/4 i SEC. Z I T. lC N. iR. I W.I UM ~ AT MERIDIANiA K. Surveyed for SOHIO ALASKA PET.ROLEUM CO. m I Surveyed by F. M. LINDSEY I~ ASSOC. LAND I~ HYDROGRAPHIC SURVEYORS 2502 West Northern Lights Boulevard Box 4-081 ~nchnrnna AIn~kn &_ i~t?t GROUND LEVEL l/ F DRILLING RISER DIVERTER SYSTEM DETAIL DRILL. DEPT. MARCt{ 1980 20" 2000 PSI WP ANNULAR PREVENTOR DRILLING SPOOL 20" CONDUCTOR PIPE NOTE: DIVERTER LINE HAS TWO DIRECTION DISCHARGE CAPABILITY AFTER LEAVING RIG SUB-BASES. SURFACE HOLE-DIVE~RT~R SYSTEM Two lines venting 90° apart --, 10 3/4" manual butterfly valves · ~ 10 3/4" 55~ Buttress 10-3/4" Hydraulic operated ~ ~Butterfly valve C~AR . x~_ ~,/ ~ 20~ Diverter Spool w/10 3/4" ~S~oe OJtlet. 1. All pipe_ connections 150~ ~SI Flanges or' welded connections. 2. ~,~_nual 10 3/4" butterfly rs]yes, safety wired in open position at diverter line tee. £ Alaska Oil &~ChorageGas Co~. In Reply Refer To: REG-ONFO Mr. Chat Chatterton Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99510 UNITED STATES DEPARTMENT Of THE INTERIOR Minerals Management Service Alaska Region 411 W. 4th Ave., Suite 2A Anchorage, Alaska 99501 ' ' - Enclosed for your review and cogent is a copy of Permit to Drill and Surface Use Plan submitted by SOHIO Alaska Petroleum Company for NPR-A Lease ~-46601. As part of the permit review process, this office will review the potential environmental impact of the proposal in accordance with the National E~n~v_iron~m~ntal Policy Act of 1969. We plan to write an Environmental Assessment on the proposed action and we ask that you review the enclosed proposal and furnish comments within your area of expertise and administration. In order for our office to fulfill our environmental and regulatory review of this plan, comments should be received from the State of Alaska, Office of Coastal Zone Management. In accordance with a Memorandum of Understanding between the Minerals Management Service and the State Office of Coastal Zone Management, the State'will provide the Minerals Management Service with a coordinated response within twenty (20) calendar days. Robert'~E. Goff Deputy Minerals Manager Onshore Field Operations Enclosures ~vCH-,JE2,"-',LS MAi, ~.~,GZ}.;:E;"J SER'-/iC~ 411 V-/. 41-i'i /:,,VE., SL]J'[E 2,\ ANCHOKAGE, A L/-,S',<A SOHIO ALASKA PETROLEUM COMPANY PRELIMINARY SPILL PREVENTION CONTROL AND COUNTERMEASURE PLAN (SPCC PLAN) OIL DISCHARGE CONTINGENCY PLAN SIKSRIK $1 (02-10-01) RECEIVED SEP 2 ? ]982 Alaska Oil & Gas Cons. Commission Anchorage Explanation of Preliminary Status for Siksrik ~1 SPCC Plan The information contained in this Preliminary SPCC and Oil Discharge Plan for the Siksrik ~1 well, reflects all permit application proposals and preplanning decisions known at the time of composition. Signed approval of the Plan will take place when all appropriate planning decisions have been finalized. This plan does reflect all current Sohio policy and decisions concerning spill prevention, notification, and response. PRELIMINARY SPILL PREVENTION CONTROL AND COUNTERMEASURE PLAN (SPCC PLAN) OIL DISCHARGE CONTINGENCY PLAN SIKSRIK 91 (2-10-1) RELATIONSHIP WITH OTHER SPCC AND CONTINGENCY PLANS Siksrik 91 is to be drilled utilizing · A Spill Prevention Control and Countermeasure Plan (SPCC Plan) has been prepared covering that drilling rig and associated equipment. A copy is available for review. The material in the rig plan is generally applicable to any drilling site. This present plan provides additional information pertinent to this specific drilling site. It supplements the material in the basic rig plan. Additional information and guidance is contained in Sohio Alaska Petroleum Company Emergency Response Annex - Spill Prevention Control and Countermeasure and Oil Discharge Contingency Plan (SPCC Plan) for Alaska - Revision 93, M~.y 17, 1982. This SPCC plan will be updated as required by Federal Regulation, i.e., a yearly review and update every three years if appropriate, as well as after any major modification. MANAGEMENT APPROVAL AND MANPOWER AUTHORIZATION This plan is approved for implementation as herein described. Manpower, equipment and materials will be provided as required in accordance with this plan. P. R. Judd Manager Drilling Sohio Alaska Petroleum Co. Anchorage, Alaska Date ENGINEER'S CERTIFICATION I hereby certify that I have examined the facility, and being familiar with the provisions of 40 CFR, Part 112, attest that this SPCC Plan has been pre- pared in accordance with good engineering practice. I further affirm that this plan satisfies the applicable requirements contained in the amended (Sep- tember 9, 1981) State regulation 18 AAC 75.325 and 18 AAC 75.335, which are supported by Alaska Statute AS 46.04.030 (2 Ch 116 SLA 1980). Richard V. Shafer Professional Engineer Alaska Registration No: 3640-E Manager Environmental Affairs Sohio Alaska Petroleum Co. Anchorage, Alaska Date SPILL PREVENTION CONTROL AND COUNTERMEASURE (spCc) PLAN AND OIL DISCHARGE CONTINGENCY PLAN DISTRIBUTION ANCHORAGE 1 President SAPC 1 Vice President for Operations and Engineering 1 Director Public Affairs 1 Director Government Affairs 1 Manager Engineering 1 Manager Safety 1 Senior Attorney 1 District Field Engineer 1 Manager Security and Contingency Planning 2 Manager Environmental Affairs 2 Environmental Scientists 3 Manager Drilling 2 Manager Exploration 15 Manger Lands 1 Library NORTH SLOPE Drilling Supervisor, Siksirk ~1 Exploration Tool Services Prudhoe Bay Field Manager Field Administration Superintendent Field Service Supervisor Senior Safety Supervisor Field Environmental Engineer CONTINGENCY RESPONSE GROUPS Director of Environmental Affairs and Product Safety - SOHIO, Cleveland Alaska Offshore Crowley Environmental Services 20 Extra Copies ii 1. General Information 1.1 '1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 CONTENTS Facility Name Type of Facility Location of Facility Site Location Description Time Period Covered by Plan Name and Address of Operator Responsible Officials Potential Spills - Prediction and Control Containment Policy 1.10 Personnel Training 2. Design and Operating Information 2.1 Drill Site Details 2.2 Site Drainage 2.3 Site Access 2.4 Fuel Transfer and Storage 2.5 Blowout Prevention Program and Equipment 2.6 Relief Well Drilling Plans 3. Contingency Plan 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 Response Organization Spill Detection and Notification Procedures Response Times Cleanup Equipment Cleanup Procedures Communication Environmental Data Restoration PAGE 11 14 16 16 18 18 19 12 23 29 32 32 33 37 37 41 iii TABLES TABLES, FIGURES AND APPENDICES PAGE 1.1 Potential Spills-Prediction and Control 10 1.2 Spill Prevention During Transfer Operations 13 3.1 Agency Reporting Requirements 28 3.2 Response Sequence for Reporting to State ADEC 30 FIGURES 1.1 Siksrik #! Location Map 2 1.2 Siksrik #1 Site Location Diagram ~1 3 1.3 Siksrik #1 Camp Facilities and Proposed Gravel Fill 12 2.1 Siksrik ~1 Camp and Rig Placement 17 3.1 Siksrik ~1 Spill Response & Notification Procedures 24 3.2 Sohio Spill Response Organization 25 3.3 Sohio Spill Response Team 26 3.4 Handling of a Spill Incident 35 3.5 Siksrik ~1 Site Location Diagram %2 40 REFERENCES Appendix A: Spill Response Support Contracts Appendix B: Drill Rig Fuel Systems Appendix C: Administrative Practice Document- Reporting Oil and Hazardous Substance Spills Appendix D: Sohio Alaska Petroleum Company 0il Spill Countermeasure Resources iv SPILL PREVENTION CONTROL AND COUNTERMEASURE (SPCC) PLAN AND OIL DISCHARGE CONTINGENCY PLAN SIK SIK ~1 (2-10-1) 1. GENERAL INFORMATION 1 · 1 Facility Name Siksrik ~1 well, Bottom hole (Lease ~46601,Tract 821-03) 1.2 Type of Facility Oil and/or gas exploratory well dr_illing site. 1.3 Location of Facility The proposed site of Siksrik #1 is in the Fish Creek area of the National Petroleum Reserve of Alaska, Section 2, Township iON, Range 1W, Umiat Meridian. The proposed drilling pad site is located 85 miles west of Deadhorse airstrip. Figure 1.1 is a map of its loca- tion. 1.4 Site Location Description The site in which the drill pad will be constructed is approximately 75 feet above sea level and covers approximately one-half section along Fish Creek in the northeast portion of NPR-A. The village of Nuiqsut is located 32 miles east of the proposed location. The Dew line site at Camp Lonely is 67 miles northwest and the Kuparuk Oilfield Operations Center is 71 miles east. Figure 1.2 shows the Fish Creek area and proposed rig location. -1- IO I I 16 I 15 I I I i I 22 I ! I I I 2~ 24 19 ! I I ~ T. IIN. T. ION. SCALE: I"= IMILE CERTIFICATE OF SURVEYOR I hereby certify that I am properly registered and licensed to practice land surveying in the State of Alaska and that this plat represents a location survey made by me or under my supervision, and that all dimensions and other details are correct. Date EYOR Figure 1.1 PROPOSED SURFACE LOCATION SIKSRIK No. 1 Located in SE I/4~ $EC.2~ T. I0 N.~R. IW.~UMIAT MERIDIAI~iAK. Surveyed for SOHIO ALASKA PETROLEUM CO. Surveyed by F. M. LINDSEY ~ ASSOC. LAND 6 HYDROGRAPHIC SURVEYORS 2502 West Northern Lights Boulevard Box 4-081 Anchorage, Alaska A. 12676 °82 ' ¢ . " ' "' : " ',:,:o /~ ;. BOUNDARY ,-,¢',, , '- __~"7__7.~_12f_c%:_ '::.- .......... / r :[ ,-.; -' '?, -- '--:.'7~---, ....... . .- . ~ ..~ , . > :: ""'" '"' t .', X~ ~ ¢ : ' ' : : "--: !~- ,'¢: : ""'" ' " .,. ~-.. '; ',. ¢ '" ' , ~, i' ':-A'' '' , ~ ~>'''.' ~ 1.- . -,,,.~ ,~ '.. , ) _ ~ '--~"- '" i/t-, ' ql\: i ' ! :: .- -~-x , -¢; '-,' ', ",~ ~ ',:ri',,,. ,,.,~'~ ,..,;": :--'>:, . ! -...~, ... ~I ~...,~' "' ' %. %- %.'%- '~,~,,. ~~%.-,,,.~,,, - :..": ,: '.~ ' ~O '~ ' .,, , · -.I, .-'.._.'xx.",.~_',,..,.',,~.:~......_.,_~:_._,~ .... : ^; ,, ~ , GIN_G,~AREA FOR i-- ~---~' ~' >'.~,' ~ %..%/ -:' t .4:", AY " '""' "" t-'"i' '~:~:'-:' '<':"- b' "' · ' 2 '),-- --'~-M,.J , ' ic F 6 ,:...' LOCA TmN~_%~-~. '~ . ~ PROPOSED RE ~ ----------"~-.-.~. 'f :~--1020 ] WELL LOCATION?. :. ¢-' . ..-". -.:...~-f-,., "~. ,: ~ ~ - : '. ~ ~- _. e'O0 '.,'~ \ ! "; L. ',-.. " ~---' ~ ii i'~i . { '~" ~" '"' '" ' PROPOSED ^-~'TR~_ ...... __~b-. Z ~ --,-~ ...................... " TO SUPPORT ' ' I ' ~..-.'~"" RELIEF WE,LL -" 'ix _ :':. :. . . / ~ ?',.,',, .C~~ '~ q. ': . .. · '~,.., - _.-; ~-_.~.. ' 1~ -:."' -- :"- ' .'" ,87 ~o2 ,8~,o, SOHIO -r~.z,_o~ ':- .-__,; :.~, ...... '- .. :_.. .!: , ,-- · ~- ' .' ~ 't~ : J __ _~ ...., -.. · ~ ~ . >. ~ . .~c - .~ ,. ':. SOHIO ALASKA PETROLEUM ,- SIKSRIK WELL # I LEGEND' _ _ . LOCATION MAP PROPOSED WATER SOURCES SCALE: = 1' I mile I ,~ o I MI. -., .... Il II SAPC CARTOGRAPHY LA-01-AN-0008-02 Figure 1.2 1.5 1.6 1.7 Time Period Covered by Plan Work will commence at the site sometime after October 15 when cold weather conditions permit the construction of an ice strip capable of landing Hercules C-130 aircraft to permit access and equipment move- ment into the area. Work at the site will terminate in late March prior to breakup. The down hole drilling operation will commence sometime approximately in early December. Name and Address of Operator The operator for this exploration well drilling operation is: Sohio Alaska Petroleum Company Pouch 6-612 Anchor~ge,.Alaska 99502 Responsible Officials The following individuals should be contacted in regards to: Overall responsibility: George N. Nelson President SAPC Phone: 263-5421 Overall exploration responsibility: Roger C. Herrera Exploration Operations Manager - Alaska ~. Phone: 263-5474 -4- Overall drilling responsibility: P. R. Judd Manager Drilling Phone: '263-5182 Overall planning and coordination of pollution control efforts: Richard V. Shafer Manager Environmental Affairs Phone: 267-4174 The tract in which the well will be located is leased to Sohio. The well will be operated by Sohio Alaska Petroleum Company. When the rig is on location at the drilling site, the Sohio drilling supervisor has full authority and responsibility for all activity, including pollution control, at the site. In addition to the rig supervisor, a site pollution control supervisor is present during all shifts to provide on-site capability for the prevention, control and containment of spills. A full job description for this position is on file in the drilling department and may be reviewed by appoint- ment. In the event of a spill requiring more than on-site response, the drilling supervisor and/or site pollution control supervisor may request assistance from Sohio Alaska Petroleum Company resources which include Sohio Prudhoe Bay personnel, Anchorage Environmental personnel, local spill contractors, and Sohio Corporate Environmental Affairs. (See section 3.1) Appendix A is a list of the support contracts held by SAPC which may have relevance to oil spill response activities. Additionally, the rig is supported through the Exploration Tool Services group at Discovery Base Camp (East Dock), -5- which can provide immediate first aid spill response to any Sohio Exploration activity. The Tool Services Supervisor may be reached 24 hours a day at the Discovery Base Camp. One of the following two individuals are always assigned to duty: Tom Graham Exploration Tool Svcs. Supv. Phone: 659-4655 or 4656 Radio: 901/902 (Drilling) Gerry Guidry Exploration Tool Svcs. Supv. Phone: 659-4655 or 4656 Radio: 901/902 (Drilling) The Field Administration Superintendent, who can always be reached through the Sohio Operations Center, Prudhoe Bay oilfield, is the closest facility with special oil spill training. One of the follow- ing two individuals is always assigned to duty as Field Administra- tion Superintendent: Dan Knauss Field Admin. Supt. Phone: 659-4160 Bill Childress Field Admin. Supt. Phone: 659-4160 The Drilling Supervisor or the Field Administration Superintendent may request special environmental expertise or additional assistance from the Manager Environmental Affairs should it be needed for large spills or environmentally sensitive concerns. At their request, the -6- additional resources available to Sohio Alaska Petroleum Company may be called upon. Detailed notification information is available in the Sohio Alaska Petroleum Company SPCC Plan Revision #3. Pertinent notification information is summarized in Section 3.2 of this SPCC plan. 1.8 Potential Spills - Prediction and Control When considering oil spills, the major response strategy appropriate- ly concentrates on techniques for spill prevention. Spill prevention is a basic component and the ultimate result of conducting safe and efficient operations. Safe operations significantly reduce the prob- ability of injured personnel, lost or damaged equipment, lost product and remote spill response operations being conducted. Highly trained personnel are essential to a safe and efficient opera- tion. Workers receive extensive training prior to and after a specific assignment whether it be drilling well control, equipment operation and maintenance, safety device surveillance, oil spill con- trol and innumerable other tasks. Employees are educated in site-specific ecological values appropriate to their position. An example of this training is the "Sohio Spill Prevention and Response Training for Rig" course, presented to exploration rig personnel and supervisors at the onset of the drilling Operation. -7- Movement of personnel is restricted and access to the various facili- · ties for non-operations personnel is closely controlled. Authorized visitors are accompanied by a designated Sohio representative. Ac- cess to operating areas is controlled through a permit system that ensures the safety of visitors, personnel and equipment. See Section 500 of the SAPC/SPCC and Oil Discharge Contingency Plan for Alaska, revision ~3 for further information concerning SAPC spill prevention policy. Table 1.1 lists several human or mechanical failures which could create the potential for an oil spill and which might occur during the drilling of this well. It should be recognized that the pro- bability of occurrence of an extremely large spill is very small, and that the quantities and details pertaining to potential spill events are difficult to predict with precision. The quantities listed in Table 1.1 should be considered as estimates of the order of magnitude of the largest spill event in each category which might be reasonably conceived. Sohio has utilized as a planning tool, the example of a short and long (4 months) duration uncontrolled flow from a well. The worst case well source figure listed in Table 1.1 represents the unlikely possibility of an oil and gas uncontrolled flowrate incident, in which a 20,000 bpd occurs initially then reduces to a 13,000 bpd flow and continues for a total period of four months amounting to the -8- total quantity 1,751,000 bbls. Out of the total oil release of 1,751,000 bbls it is predicted that the majority would be consumed by a fire at the wellhead (about 1,607,000 bbls), recovery operations would account for approximately 135,000 bbls, and 9,000 bbls would remain after freeze-up. Potential spills associated with general drilling operations, includ- ing all rig camp fueling operations will be recognized and avoided by daily visual inspection of all connections and tankage by the Site Pollution Control Supervisor. Because of the remote location of this site fuel for the Siksrik %1 well will be flown in every few days as required. A 500 bbl fuel storage tank will be staged at the airstrip and a fuel transfer vehicle will transport fuel to the rig day tanks located at the drill site. All fuel use will be monitored and logged daily. Ail fuel tank storage areas will be located on the well pad lined with an impermeable membrane material and surrounded by containment berms. The containment capacity of these berms will exceed 110 per- cent of the largest fuel tank. Additional piping required for servicing camp and drilling facilities will be maintained above ground if possible. Any buried lines will have premium connections and will be installed with secondary con- tainment, i.e., protective welded piping with a positive slope to -9- TABLE 1 · 1 POTENTIAL SPILLS - PREDICTION AND CONTROL SOURCE TOTAL MAXIMUM MAJOR TYPE QUANTITY SPILL RATE OF FAILURE (bbls) (bbl/hr) SECONDARY CONTAINMENT Fuel Tank rupture 200 Delivery Vehicle Broken hose 75 None unless in a loading or unloading mode. Fuel Tank Tank rupture 595 Overflow 2 Berm sealed with impermeable liner. Fuel Transfer Line Rupture On Land 100 50 Permanent and portable drip pans. Well Short dura- tion uncon- trolled flow from well. Worst case (4 month dur- ation uncon- trolled flow from well). 200,000 500 1,751,000 833 Snow berm sealed with ice. Natural snow and ice containment. -10- collection point or impermeable liners. Ail transfer operations will be monitored for leakage, pipe or hose rupture and overflows. Fuel use and transfer records are maintained with the rig supervisor. Even though winter conditions (including white-outs for several days) can make complete inspections for any fuel spillage difficult, fre- quent (several times per week) complete site inspections for the pur- pose of detecting spills, leaks and overflows will be conducted at each site by the Site Pollution Control Supervisor. These inspec- tions will be logged and immediate corrective action taken if needed. All fuel transfers will follow proper procedure to prevent spills. A general checklist outlining pertinent points is given in Table 1.2, Spill Prevention During Transfer Operations. Additional information dealing with fuel transfer and storage may be found in Section 2.4. 1.9 Containment Policy Containment structures are practical for the fixed fuel storage facilities at this drilling site, and they will be provided. An impermeable membrane material will be used to line fuel reserve pits, and will be placed under the rig structure. The location of the lined fuel storage areas are indicated on the camp facilities diagram (Pigure 1.3). For a large spill from the rig in which oil flows out over the drilling pad and onto adjacent ice, the surrounding areas will be quickly bermed with snow utilizing on-site construction equipment. -11- TOPSOIL STORAGE PILE 3oo' ! ~ 250' PLOT PLAN 380' 1~ A 340' RESERVE 280' PIT --~ 20' 300' FLARE PIT FILL STORAGE FOR FLARE PIT BERM MATERIAL N.T.S. A 11 · = 200 SECTION AA LIMIT OF NEW FILL \ EXISTING 1.5 ~ LIMIT OF NEW FILL J_} ~ 3' MIN.~ 6' MIN. ~I.5GROUNDI 1~.~-'/ NEW FILL , ~ ~ _~// ~,1 ~ - / 20' -I ~250 j NEW FILL N.T.S. ~280'~ NEW FILL NOTES: SELECTED FILL MATERIAL FROM A LOCAL SOURCE TO BE USED TO BUILD A DRILLING PAD, RESERVE PIT AND A FLARE PIT, IF REQUIRED FLARE PIT IS TO BE ADDED IF TESTING IS JUSTIFIED FILL AREA IS INTENDED TO BE USED AS A DRILLING PLATFORM TO SUPPORT AN EXPLORATORY PETROLEUM WELL APPROX. 30,000 CU YDS OF FILL WILL BE REQUIRED LEGEND- ~ STORAGE AREA NEW FILL PROPOSED FLARE PIT SECTION BB LIMIT OF NEW FILL ~ 3' MIN. 1.5 EXISTING GROUND N.T.S. SOHIO ALASKA PETROLEUM CO. SIKSRIK WELL No. I DATE: 8/19/82 Figure 1.3 SAPC CARTOGRAPHY LA-0 1-AN-0010-02 TABLE 1 · 2 SPILL PREVENTION DURING TRANSFER OPERATIONS Spill prevention is the best method of oil spill control action. Conduct all work so as to prevent spills: Check for proper grounding prior to commencing transfer. Check all transfer equipment regularly. Use portable and permanent drip pans. Have appropriate lighting. Watch for weather changes that may effect transfer. Check each tank capacity daily. Note in fuel logs. Know emergency shutdown procedures prior to starting transfer. Inspect all tankage, containment and piping before and after each transfer for signs of fuel loss, leakage or failure. Maintain no smoking areas around tankage and transfer points. BE AWARE OF POTENTIAL SPILL SOURCES: Hose rupture Tank overfilling Leaky flanges, valves and strainer boxes Improper or poorly sealed hose connections Drip pan overflowing Containment area leaks Tank damage Pump failure Whenever possible, use dry disconnect Kam lok or similar type fittings or positive valves. -13- 1.10 Personnel Training All personnel involved in the exploration activities at the Siksrik ~1 site will participate in an approved environmental training pro- gram which includes the following spill response training, in addi- tion to films dealing with environmental and cultural concerns of the region of interest. All supervisory personnel have been trained by Sohio in the preven- tion and initial control of oil spills, relating to their duties. This training consists of in-class and on-site spill response and equipment operation training. Selected foremen, rig supervisors and Tool Services support personnel also receive ABSORB warehouse/ equipment training. All rig crews receive special on-site training in spill response and equipment use given by Sohio at the beginning of every drilling season. This on-site training includes, in addition to slides/classroom presentations and spill scenarios, on-site information such as rig,camp and maintenance area potential problems. The rig crew, under the direction of the rig supervisor and drilling supervisor, provide on-site spill response and general spill control with good operating practices and prevention during all drilling operations. -14- Back-up personnel with special spill training are available at the Sohio Prudhoe Bay base camp on a 24-hour basis for assistance as needed (discussed further in Section 3.2, Spill Detection and Notification), as well as'Sohio, Anchorage. Anchorage based environ- mental and drilling department management and selected staff have also received spill response training and have participated in spill response and equipment operation training courses. Personnel train- ing is outlined in the SAPC Emergency Response SPCC Plan, Section 1000. Records of all individuals who have undergone spill response training are on file in the SAPC Training Department. Although this site is out of the ABSORB area of interest,in the unlikely case of a major spill response emergency requiring additional support, the ABSORB Spill Response Team (ART) and ABSORB spill response equipment wouid be made available to Sohio for a calculated fee. -15- 2. DESIGN AND OPERATING INFORMATION 2.1 Drill Site Details An ice pad has been proposed for this site with a sand pad as a al- ternative proposal. If a sand pad is constructed, approximately 30,000 cubic yards of fill material will be required for construction of the pad. The primary source of fill material will be obtained from the excavation of the reserve pit. The pad will have a reserve pit constructed adjacent to it in which will be surrounded on all four sides by three foot high berms. The berms will be made up from the excaveted material obtained from the pit construction and will be lined with ice and snow. Figure 1.3 and 2.1 gives the approximate location of all contemplated facilities. 2.2 Site Drainage The drill site pad surface and work area will have an elevation of at least one foot above the surrounding ground level to accommodate an ice pad; or one to three feet above ground level for sand pad con- struction. The surrounding area is seventy five feet above sea level. The site floor beneath the rig and other machinery will be covered by a reinforced, low temperature tolerant impermeable mem- brane over which rig matting boards and foundation timbers will be placed. This will prevent minor drips and spills of diesel or sump oil and dirty wash down water from penetrating into the pad surface area. The plastic membrane will allow all liquids to drain into a water-tight cellar which will be emplaced below ground level. The -16- PROPOSED ICE SEC. 2 TION RIW PROPOSED PRIMARY WATER SOURCE FOR DRILLING OPERATIONS \ \ ,-~ PROPOSED ~\ \ ICE ROADS ~ /I // I FLARE PIT / /(IF REQUIRED)/ ~ i ~ IIi ROAD~Xxx ~. ~~_. '~---"~ "'" ~G & CAMP SOHIO ALASKA PETROLEUM CO. SIKSRIK WELL #1 RIG & CAMP PLACEMENT SCALE' 1"-800' Figure 2.1 SAPC CARTOGRAPHY LA-O1-AN-0015-01 cellar is rectangular, eight feet deep, ten feet in length and eight feet wide for ice pad construction; or four feet deep, ten feet in length and eight feet wide for gravel pad construction, and will be permanently attached to the conductor pipe. In addition to the area beneath the rig, other locations on the pad where oils are handled are provided with liners to contain any spillage. 2.3 Site Access Access to the drilling location will be by air or all terrain vehicle. All-weather airstrips are also located 67 miles northwest of the site at Camp Lonely, 71 miles east at the Kuparuk Base Operations Center and the Nuiqsut airfield located 32 miles east of the .proposed site. An emergency fixed wing airstrip is also located west of the site in the Fish Creek Delta area. Figure 3.5 is a map of the area surrounding the Siksrik ~1 well site. 2.4 Fuel Transfer and Storage Fuel will be stored in steel tanks which will be surrounded by con- tainment berms constructed for secondary containment. Their dimen- sions will satisfy regulation criteria that the bermed volume capacity equal 110 percent of the steel tank fillage. Once the berm is constructed, it will be lined with an impermeable membrane. The filling of these tanks will be on a daily basis, with fuel being -18- trucked in from a 500 bbl fuel tank located at the airstrip. The initial filling of the 500 bbl storage tank (discussed in Section 1.8) will take place concurrently with the moving of the rig onto the location. Transfer operations and procedures have been outlined in Section 1.8, Potential Spills. All precautions will be taken to avoid any spillage at the time of transfers. All personnel working in the fuel handling area will be thoroughly trained in procedures to avoid possible mishaps. Appendix B contains the operating procedures for the drilling pad fuel system. 2.5 Blowout Prevention Program and Equipment This rig will be equipped with a 20 inch 2,000 psi W. P. Hydril an- nular diverter system installed on 80 feet of 20 inch conductor pipe while drilling a 17 1/2 inch surface hole to 2,700 feet. In the un- likely event that surface gas is encountered, the well bore fluid can be diverted away from the drilling rig through a 10-3/4 inch line to the reserve pit and the gas allowed to vent to the atmosphere. After running and cementing 13-3/8 inch 72# L-80 surface casing at 2,700 feet, blowout prevention equipment (BOPE) consisting of three 13 5/8 inch 5,000 psi W. P. ram type preventers, a 13 5/8 inch 5,000 psi W. P. Hydril GK annular preventer, and a two-choke manifold will be in- stalled. These preventers are powered by a 80-gallon Hydril ac- cumulator system with both nitrogen and manual backup. The BOPE will be thoroughly tested for leaks upon installation and at least weekly -19- thereafter. Operational tests and crew drills will be conducted daily. Primary well control will be maintained by overbalancing for- mation pressure with a column of drilling fluid. Automatic and manual monitoring equipment will be installed to detect any abnormal variation in the mud system and drilling parameters. A mud-logging unit manned by experienced personnel will be in con- tinuous use while drilling and will monitor formation pressures, hydrocarbon shows, and loss or gain in the mud pits. In the event that the well kicks, the BOPE will be used to shut in the well immediately and confine the influx within a closed system. The casing program is designed so any anticipated kick pressures can \~ . be shut in at the surface without breaking down the formation at the casing shoe. Fluids resulting from a kick will be circulated out using the balanced bottom hole pressure method and the well will be restored to its normal operating condition. In the unlikely event that the secondary control of the well is lost and premature well flow occurs, the company has at its disposal specially designed equipment plus a blowout contingency plan, ex- perienced backup personnel, and access to a cementing unit at all times. Eight Hercules transportable rigs are available in the Prud- hoe Bay area that could be used to drill relief wells. -20- The Company representatives assigned to the drill site have had extensive training, including courses at USGS certified well control schools, together with actual experience in controlling and killing kicks. Such training is an ongoing program of the Company. These personnel will be further supported by well-trained drilling crews approved by the Company. A description of the Company's current blowout prevention training program, together with a copy of its "Drilling Operations Blowout Prevention Manual" is available for inspection by appointment. 2.6 Relief Well Drilling Plans · In the unlikely event that a relief well is required, the surface location of the relief well would be based upon on the following con- siderations: A. Standoff from target objective to allow a 30 degree + relief angle. B. Relief well drilled at a direction 180 degree + into the object well. C. Not to be within 1/2 mile of uncontrolled well. D. Maximize use of any available existing roads, pads, and gravel i s lands · E. Prevailing wind directions. F. Runoff and impoundment directions and areas. G. Ample water supply available. -21- Additional information on the drilling of relief wells can be found · in Section 502.4 of the SAPC/SPCC and Oil Discharge Contingency Plan for Alaska revision ~3. -22- 3. CONTINGENCY PLAN 3.1 Response Organization The Company Drilling Supervisor shall take charge at the scene of all oil spills and shall notify the appropriate responsible officials (depending on the magnitude of the spill) without delay. (Refer to Figure 3.1) In the case of an emergency equivalent to a moderate or major spill event or blowout, Sohio management would be immediately notified by the Drilling Supervisor and/or the. Company drilling personnel in charge. This notification would put into effect some level (to be determined by management) of the SAPC Emergency Response Plan including setting up the control centers on the North Slope and/or in Anchorage. If the emergency involved spilling oil, the SAPC/SPCC Plan, which is an annex to the SAPC Emergency Response Plan, would also be implemented. This would involve contacting the appropriate spill response personnel in the Anchorage and North Slope facilities. Figure 3.2 displays in detail the Sohio Spill Response Organization and assistance call out procedure in detail. The Field Task Force Leader (Rig Supervisor) is responsible for the Field Activities at his site. Figure 3.3 details by position, name and phone numbers the Specialized Response Team (outlined in Figure 3.2) that may be called upon for field spill response activities. The Exploration Tool Services Supervisor and/or the Field Administra~ tion Superintendent will provide manpower or technical assistance as needed. Immediate assistance may also be requested from the Anchorage office environmental staff and other support sources. The Specialized Response Team Members designated include Drilling Depart- ment and Environmental Department representatives. -23- SIKSRIK 1 SPILL INITIAL RESPONSE & NOTIFICATION Check SPCC Plan Regulatory Agencies Notify (As Appropriate) ALL SPILLS ADEC Fairbanks 452-1714 SPILL IN WATER OR ON ADJACENT ICE U.S.C.G. MSO Anchorage 27 1-5 137 (Gee Table 3.2 For Additional Reclulrementa) SPILL I SlKSRIK '~' 1 I Spill Observer Report to 8OHIO Operator 81Ol~e: 659-3101 Anchorage: 276-5111 DRILLING SUPERVISOR: i Telel~hone: Radio Call Number:. Site Supervisor Determines Emergency Response (Safety) Initial Spill Response and Notification Recluirement s Request Assistance Exploration Tool Services (24hrs) 659--4655 or 4656 or Unit Tool Services (24hfs) 659-4634 or 4635 or Prudhoe Field Manager 659-4450 (24hfs) and/or Prudhoe Bay Field Adminlalrallon 659-4 160 (24hfs) Field Envtronmen! 659-4178 (24hfs) Anchorage Environment 267-4136, 4113 or 4174 Advise (As Appropriate) DRILLING SUPERINTENDENT: Jeff Votava Work: 263-5257 Home: 345-2876 DISTRICT DRILLING SUPERINTENDENT' Brian Rose Work' 263-5151 Home: 344-4965 Notify (As Appropriate) COMPANY MANAGEMENT RESPONSIBLE OFFICIALS: i G.N. Nelson, Pres. 8APC R.C. Herrera, Mgr. E xpl. P.R. Judd, Mgr. Drilling R.V. Shafer, Mgr. Envir. (ABSORB Representative) Check Response Plans Determine SOHIO and ABSORB Callouf Needs Additional Response Information SAPC-SPCC Plan for Alaska ABSORB Contingency Plan NOTE: If the Onsite Facility Supervisor cannot be reached, call the SOHIO Operator and they will notify responsible officials. Figure 3.1 SOHIO SPILL RESPONSE ORGANXZATXON ANCHORAGE " ' Im:idant Con'tr~iler"(IC2 Pres. G.N. Nelson 5423 NORTH SLOPE P.J. Martin S421 ~ , , Field Task Force Leadex (FTFL) .... PBFM: Parsons/Packer Government Affairs Asst 4450 or Designee FI~.LD ACTlVlTI~.S IMM~.I:)IATE . Manager: Bob Straub 5483 Public Affairs Asst. Environmental Advisor 4178 Field Eng. Enq. Gloason/Billington _~Public A. ff~rs AS'iL SrTs. Coord.! Stabinow/.Hartzl.e..r 41.8_0 . ! -~TransP°rtation CoOrdinator 4i7.21 Field Trans. Sup. lohnson/KanlaI Collin~/M_ower ..... ,r (FL) (Designated by IC o~ FTFI.) Supervis0~s: Production: 434S Field Admin: 4160 Construction: 4101 or Appropriate Drill Rig Supervisor ..~ _Communication Asst. 4220' Comm. Supe.rvis_.o_r Souse/Stout: Admini~t,ative .Assr ~~ Field Adman. Supt · Childress/Kauss 4160 Fire/Safety A_sst. 4457. ~ Sr. Sar,t, Supt Le.w..i,/Caraon ~"Emplo,.e Relations As,f. 4305 E.R. Supt H.e. rri.s/Bar, r _[ Security Ad '_v~sor 4435 ~:awel~, u,.~ 4482 Other Tach. AssL Specialized Response Team Source Elimination Exploration: Tool ISFv. (Drilling Only)l 4655/4656 .. I ' [ Field Maintenance ! S~pt. 4400 J ! l,Contractors: As Required I Field Service . I Supervisors 4170 ': Osowski/Chu.rch Team Response. A~tivity Containment/ Recovery/Dispose]/ Restoration field S~ort Sushi Pomponi/Hopkins/ Juliussen/Sliger Field Eng. Tach. (1) Oswalt/Meuers Contractors (Al:OS) (CF.S) (ADV SORS) M.nag.r: Charles Towill 5483 Medical: Medical AsoL 'Dr. Rigg 5255 Dr. Rigg 5255 Austin Reid 5152 As!ign U necessary Environment: ] Hillmin/Pope 4136/4113 Firm Safety: Harold Ritchie 5230 Dri~ng AssL ~er Drillin( ludd ..Man. ager Eno.' F. Wl.gn..~ 4522 Environmental ~dvisor Manager:. R.V. Shafer 4174 Fire/Safety Advisor Manage.r:.. Harold Ritcki., 5230 Manager:.. Leroy .C.o~ 5530 Staff and Administration Manager:. D: D~,y 552~ Security/Plans Advisor Manager: Cas Bi?..rman 5138 Lands/EmergencY Permits / ' Manager:. Herman Schmidt 54271 Figure 3.3 COMPANY RESPONSE TEAM SOHIO ALASKA PETROLEUM COMPANY FIELD ADMINISTRATION Bill (Tinker) Childress Dan Knau ss Field Environment Engineer (Advisor) Lynn Billington Bob Gleason~ Field Services Supervisors (Main Coordinator) Leon Osowski Gene Church Field Support Supervisors (Field Equipment & Labor Coord./Sup.) Equipment - Ralph Hopkins Greg Pomponi Labor Eugene Jul iussen Ron Sliger Field Environmental Technicians (Spill Specialty - Direct Field Efforts and Equipment) Jim Oswalt Ken Meuers Larry Raburn Jeff Russell SPILL RESPONSE TEAM 659-4160 659-4160 650-4178 659-4178 659-4170 659-4170 ANCHORAGE Environmental (Advisor) Sharon Hillman Home Paine la Pope Home R. V. Shafer Home Technical: Drilling Austin Reid Home 267-4136 276-7545 267 -4113 344-5362 267-4174. 274-3149 263-5152 337-2383 659-4182 659-4183 DRILL RIG SPILL RESPONSE Rig 2 Rig 3 Rig 18E Rig 22E Rig 26E 659-4605 659-4626 659-4608 659-4613 659-4620 659-4182 659-4182 Exploration Tool Services (Initial Response, Well & Rig Assistance) Tom Graham 659-4655/4 Jerry Sager 659-4655 659-4182 659-4182 659-4182 659-4182 Unit Tool Services (Additional Assistance ) Mike Dinger Scott Grieve 659-4634 659-4634 The Manager of Environmental Affairs or his designee is responsible for notification of the appropriate regulatory agencies (See Agency Reporting Requirements, Table 3.1) and shall arrange for additional cleanup equipment or outside spill cleanup assistance as required by the circumstances of the event. In addition, the Company maintains contracts with local contractors (Alaska Offshore, Inc. and Crowley Environmental Services) for special spill response should the need arise. A list of other support contracts which have relevance to oil spill response are pro- vided in Appendix A. Additional information and guidance is con- tained in the Sohio Alaska Petroleum Company Spill Prevention Control and Countermeasures Plan and Oil Discharge Plan (SPCC Plan) for Alaska - Revision ~3 of 17 May 1982, and the Sohio Alaska Petroleum Company Emergency Response Plan, revised November 1981. These plans include detailed information on complete Response Teams for a major incident response and will be accessible on-site at all times in the Rig Supervisor's office, along with the SPCC Plan for the particular site, the Rig SPCC Plan, the A~m~nistrative Practice Document (ex- plained in Section 3.2) and the Agency Contingency Plan. In addi- tion, a wallet card is given to all rig personnel, which outlines in- itial spill response actions, and includes spill notification pro- cedures. -27- Agency Table 3.1 Reporting Requirements ; · Oil Any .Size in Or (211)'Z~nith '~5555 U.S. Coast Guard threatening Immediately or (907)271-5137 Not Required navigable waters (Days) Any size on land ' (211)'Zenith 5,~'55 For facility requiring SPCC or (907)271-5083 Plan if spill is 1000 or more U.S. Environmental but threatening Immediately (Days) or Protection Agency or in surface (206)442-1263 gallons or If second spill in waters (Seattle-Days) 12 months .... U.S. Minerals Management Spills on Federal Immediately 272-9.461 All Spills (Form 9-1880) Service Oil Leases 271-4303 (Nights) .. . .. WATER (211) Zenith 9300 )55 gal. or Immediately or 452-1714(Fbks) Alaska Department 1000 sq. ft. Telex 36608 of En,~ironmental <.5 pt. or D. Lowery (Home) Within 15 Days of Conservation 100 so.ft. . .7. Da~/s 456-4861 end of cleanup All other water J. Jansen (Home)' spills 24 Hours 486-2834 LAND >55 gal. ~ ~ 5 Hours (211) Zenith 9300 Alaska Department 10 Io 55 gal. 24 Hours or 452-1714 Within 15 Days of of Environmental (Fairbanks) Conservation <10 gal. 7 Days end of cleanup Telex 36608 ' [ · Alaska OII and Gas All spills from Chat Chatterton Within 5 Days of Conservation wells or Involving Immediately 279-1433 end of cleanup Commission any crude loss North Slope All spills As soon as 852-2611 (8-5) Copy of any reports Boroughe possible (Barrow) submitted as requested , , 356-2409 BLM * Spills on Federal Immediately Arctic Area O!1 Leases j Manager · REPORTING REQUESTING ,, ~ Hazardous Subst~3nces All Hazardous Substance Sl3111s National Response that equal or Immediately (800)424-8802 Center exceed ils , reporlable Quantity . .. (211) Zennlth 9300 or 452- 1714(Fbks) Alaska Department Ail hazardous Immediately Telex 36608 Within 15 days of of Environmental substance spills D. Lowery (home) end of cleanup Conservation 456-486 1 J.Jansen (home) 488-2834 ii iii i i i i i ii date: 3.2 Spill Detection and Notification Procedures The detection of an oil or hazardous material spill and the ability to contain, cleanup and dispose of the materials are secondary to the prevention of spills and an effective safety program. Positive de- tection and timely reporting of any spill of oil and hazardous materials provides a capability for prompt response to minimize in- jury to personnel, damage to property and the environment. Appendix C contains a copy of the SAPC Administrative Practice Document R-1-EA entitled, "Reporting Oil and Hazardous Substance Spills". This document informs all Sohio employees and contractors of the need for immediate reporting of all spills and the procedure to accomplish this action. In addition, it instructs in accordance with Alaska State Regulation 18 AAC 75.120 the placement of a notification placard on all storage structures, equipment and in areas which are involved with oil and/or hazardous substances. This placard provides the necessary information for a spill observer to contact the Sohio Communications Operator or the Site Supervisor immediately by radio or telephone so that proper immediate notification may be made to ap- propriate responsible officials and agencies. Agency Notification procedures for the North Slope and Anchorage are detailed in the SAPC/SPCC and Oil Discharge Plan for Alaska Revision ~3, Section 600 and are summarized in Table 3.1. Since the location of this well is on federal land, the U.S. Minerals Management Service would be the primary agency to be notified. Table 3.2 outlines the response sequence and required information for reporting to the State ADEC. -29- TABLE 3 · 2 ~SPONSE SEQUENCE FOR REPORTING TO STATE ADEC 18 AAC 75.080 requires notification of the Alaska Department of Environmental Conservation of any spill on state lands or waterways. A written report must be submitted within 15 days of the end of cleanup operations (18 AAC 75.110). This report must contain: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Date and time of discharge. Location of the discharge. Person or persons causing or responsible for the discharge. Type(s) and amount(s) of hazardous substance(s) discharged. Cause(s) of the discharge. Environmental damage caused by the discharge. Cleanup actions undertaken. Location and method of disposal of the hazardous substance and con- taminated cleanup materials, including date of disposal. Actions being taken to prevent recurrence of the discharge. Other information ADEC requires in order to fully assess the cause and impact of the discharge. -30- ALL SPILLS MUST BE REPORTED EITHER DIRECTLY TO THE SOHIO COMMUNICATIONS OPERATOR (SEE ADMINISTRATIVE PRACTICE DOCUMENT R-1-EA APPENDIX C) TO INITIATE THE FOLLOWING RESPONSE SEQUENCE OF TO THE SITE SUPERVISOR. A. Protect Life and Limb If the spill is endangering personnel or facilities, the SAPC Emergency Response Plan would be implemented and an immediate re- port to the Sohio Radio/Communication Center would be made so that Emergency Response Teams can respond with manpower and equipment and the Control Center can be activated as soon as pos- sible, as discussed in the previous Section 3.1 (Response Organization). Bo Eliminate the Source The Operating Function and/or Facility Supervisor experiencing a spill must be notified by the most rapid means available so that immediate action can be taken to eliminate the source of the spill. C. Initiate Spill Containment and Cleanup Actions If the spill is not endangering personnel or facilities, the Site Supervisor will initiate measures to contain, cleanup, and dis- pose of the oil or hazardous materials. Immediate assistance may -31- be requested from Exploration Tool Services or the Prudhoe Bay Field Administration. Methods for cleanup and disposal will be discussed in more detail in Section 3.5. D. Notify Agencies The Site Supervisor is responsible for notification of management personnel. In the case of a moderate to major emergency re- sponse, the operator may be requested to provide for notification as outlined the the Emergency Response Plans. In either case, the Environmental Affairs Department representative must be notified immediately to provide for the required Federal, State and local agencies notifications. See Tables 3.1 and 3.2 for agency and State ADEC reporting requirements and contact information. 3.3 Response Times The speed at which a crew is able to respond to an oil discharge in- cident will be dependent on several factors. The most critical being prevailing weather conditions. Information dealing with sum~er and winter season containment techniques including the various climate factors which change the state of the oil being dealt with, are dis- cussed in Section 700 of the SAPC/SPCC and Oil Discharge Plan for Alaska revision ~3. Information concerning site access to the Siksrik ~1 well is contained in Section 2.3. 3.4 Cleanup Equipment A portable spill countermeasure building containing sorbent materials will be located at the well site. Various hand tools and construc- -32- tion equipment are standard and are always available at the drill site. In addition, specialized equipment and sorbent materials are readily available from Company supplies in Prudhoe Bay (see Inventory List, Appendix D), from other sources in Prudhoe Bay by local agree- ments, and via air and road transport from Anchorage. Heavy equip- ment such as dozers, front loaders, forklifts and graders will be located at the well site, and can be used to construct emergency con- tainment areas, diversionary diking, and remove contaminated snow and debris for disposal. A full description of the available equipment and instructions for its use are contained in the Sohio Alaska Petroleum Company Emergency Response Plan. All operation manuals for equipment used in containment and cleanup activities are kept in the Field Environment Technicians office (Figure 3.3 provides the names and phone numbers of the individuals of this position) located in the equipment storage warehouse. Additional copies are on file in the Field Environment office. 3.5 Cleanup Procedures Initial Actions: (See Section 3.2) Figure 3.1 indicates in sche- matic form the initial notifications to be made and concerns to be addressed before the start-up of cleanup operations. Spill EvalUation and Response: A broad outline encompassing all of the necessary steps to be taken to handle a spill incident is pre- sented in Figure 3.4 (Handling of a Spill Incident). These involve: -33- the assessment of the seriousness of a spill, management notifica- · tion, planning the response, cleanup operations, agency notification, final documentation and restoration attempts and a monitoring program. Detailed descriptions of cleanup methods and equipment use may also be found in the SAPC/SPCC and Oil Discharge Plan revision %3. -34- HANDLIN OF A SPILL INCIDENT SOHIO ALASKA PETROLEUM COMPANY SPILL INCIDENT [ IDENTIFY SPILL ! I OILSPILL ! . Secure Property ~No Immediate Containment I Spill ii a J Hagardou. Subitance Refer to Hazardous Subitance] Identification and Reporting Determination Flowchart IA Sohio 8PCC Plan ~Consult and Implement Notification ' ' Management ~ I Government Agencies/J Yes ~UNCONTROLLED~ ~ / [ Requirement~ ~ Policy ~ Sourc. b. ~o Drill Relief Well and Ignite [ KILL,WELL Activate Initial 5pill Response Actton~. 'l Refer to Containment end ~ Recovery Section of SPCC Plon Contain and Begin Remove of Spilled Oil (M~intain Records) IHln-Situ Treatment /Di.po.al ay be Considered for Remote Site ~'--- (Requires Agency Approval) Oil and/or Burned Re.iduals to °' Approved Di.posai Site Clean Gear. Inventory. Repair and Reorder Support Items LEGEND Direct Action Accompanying Action ..... ~. . No Spill Source 'Monitor Spill and Coordinate with Gov®~nmeflt Aqencie. i crltiqu, a"d Documellt F...... _:~Fi]e Required Written Report, -~Accordanca with Company Policy ~ [ and Procad.r.., ~e. with ~ ! ~ Appr°priat' A~encie' / MONITOR SITE I Restoration Applied [ . No if Needed C,,,Ci t [ .... Figure 3.4 Disposal Plans · Ail mud and cuttings at this site will be placed in the reserve pit during the drilling period and then encapsulated into the permafrost at the completion of operations during cleanup activities. In the unlikely event of a spill incident specific sites and pro- cedures for recovered spill debris and oils will be determined based on consideration of the location of a spill event and approval (re- quired prior to disposal for each case). The information on already approved procedures is contained in the SAPC/SPCC and Oil Discharge Plan revision ~3 Section 800 (Disposal Techniques). These include for the Prudhoe Bay area, the permitted injection wells, North Slope Borough Incinerator and landfill facilities and burning of oiled debris in place for remote locations. In addition to these disposal sites, in an emergency situation which would require additional disposal areas, other available temporary storage structures are: empty storage tanks at various locations around the field, bladders which could be placed in temporary lined pits (these are available through the Field Administration office), storage tanks at gathering centers and in an extreme emergency, the East Dock reserve pits. If the recovered oil is liquid and not highly contaminated with debris, it can be filtered and as necessary cut with diesel for pro- cessing and reinjection. -36- 3.6 Communication A satellite microwave disk will be placed at the Siksrik #1 well site to provide radio telephone communications. Two radio frequencies (454.000 - 459.000, National Oil Spill fre- quency and 451.650 - 546.650 Drilling frequency) are available at all times plus telephone service. The Field Environmental Office main- 'rains four oil spill frequency radios. The rig call number is given in Figure 3.1. 3.7 Environmental Data Timing Construction and drilling operations for the proposed well will begin after freeze-up (airstrip construction around October 15), and be completed prior to breakup. Previous field experience and observations indicate that this time- table and activity will create little or no adverse effects on the wildlife and vegetation of the Siksrik ~1 area. The major threat to wildlife on or surrounding the Siksrik %1 vicinity would be the un- likely occurrence of a major oil spill. Area Sensitivity The following information on the sensitivity of the Siksrik ~1 area is taken from the NPR-A Task Force 105(c) Land Use Study: Study Report %..~ NPRTA ~c~%og%gal P~o~ile , the ABSORB draft publication, Oil Spill Response Considerations Manual, and on-site visits. Geobotanical Information As discussed in Section 1.4, the proposed Siksrik ~1 site is located approximately 32 miles west of the village of Nuiqsut, 71 miles west of the Kuparuk Base Operations Center, 67 miles south ~s~h of Camp Lonely , and within a meander of Fish Creek running through the northeast, corner of NPR-A. The terrain in this area is char- acterized by large low centered polygons with wide rims and narrow troughs, and is refered to as upland tussock tundra. Vegetation of this area consists of a variety of arctic sedges, grasses, dwarf shrubs, and numerous lichens; with the dominant plant species being Eriophorum vaginatum the tussock forming cottengrass. In the tussock zone Eriophorum is an important food sourse for caribou in the spring. The soils present in this area are silty and well drained. Due to the type of soils present, the vegetated shorelines and mud flats of the Fish Creek area have minimal load bearing capacity and caution should be used to minimize the chances of erosion. Because drilling activity at this site is a winter season process and will be completed before breakup; in the unlikely event of a major spill, the incident would be taken care of before ice melt. Thus oil retention Potentials or erosion problems should not be a factor of concern. Biological Concerns Previous drilling experience in similar habitats has shown that winter operations do not interfere or cause detrimental effects on the daily habits of the surrounding wildlife. Field experience and observations have revealed that few wildlife species utilize the Siksrik ~1 region during the anticipated operational period (October- March). The species that may be found in the general area are as follows: -38- Fish The Fish Creek area(see Figure 3.5) is an important area for anadromous fish. Fish °verwintering areas have been identified in the Fish Creek water system. In accordance with lease stipulations for this tract, facilities will not be located within 200 meters of Fish Creek in order to protect the biological resources of the water system. Birds Birds found year round in this region are the willow and rock ptarmigan, snowy owl, and the common raven. After breakup swans and numerous other waterfowl utilize the general area for nesting, molting and staging. Lease stipulations for this site require that exploration activities not be conducted during the period between May 20 and August 25 in order to protect nesting, molting and staging activities and habitat, unless an exception is granted by the Fairbanks District Manager, BLM. Mammals The Fish Creek area is within the year-round range of the Teshepuk Lake caribou herd and includes the eastern portion of the wintering range of the Western Arctic caribou herd. The seasonal operations lease stipulations on this tract prohibit exploration and drilling activities at this site between May 15 and June 15 unless an excep- -39- ! i I ! I. ! I I I I I I I E~lm~ Illenda Jones LOCATI~ Figure 3.5 WINTER ROLLIGOH TRAIL FOR ACCESS TO SIKSRIK WELL ~'1 0 · MIIll SAPC C PHV LA-O 1-AN*OOO7'Ol tion is granted, in order to protect seasonal caribou calving habitat. Other wildlife which may be found in the general vicinity during winter are the occasional wolf if caribou are present, arctic fox and lemming. During the summer vole, shrew, wolverine, arctic ground squirrels and an occasional bear may also use this area. Social Concerns There are no known permanent establishments and/or facilities located in the Siksrik ~1 area. The village of Nuiqsut is located 32 miles east and Barrow is located approximately 110 miles northwest of the proposed location. The Fish Creek area may be used by villagers of Nuiqsut and Barrow for hunting, trapping and fishing. General meteorological data for this region may be found in Appendix A of the ABSORB Oil Spill Contingency Plan and in the ABSORB Oil Spill Response Considerations Manual. The data available includes temperature, precipitation, wind and visibility conditions likely to be encountered through the year. -41- 3.8 Restoration Upon final completion of all drilling operations the well will be plugged and abandoned in compliance with all State and Federal regulations. Abandonment will include setting cement retainers and cement plugs above all hydrocarbon bearing formations and/or casing shoes and laps. The surface 'casing will be cut off and a 50-foot cement plug placed inside the casing. The drill site will be cleaned of refuse as thoroughly as possible in its frozen condition during April/May. A final detailed cleanup will be completed after breakup in the summ~er of 1983 at a time compatible with wildlife considerations and lease stipulations. If an oil spill is discovered, containment and recovery procedures will be initiated. After cleanup the site will be monitored to de- tect any additional contamination or degradation of the environment, especially after breakup. If inspection indicates a need, additional restoration measures will be initiated. Section 300 of the SAPC/SPCC and Oil Discharge Contingency describes in detail various restoration procedures and techniques used by Sohio on the .arctic coastal plain. -42- APPENDIX A SPILL RESPONSE CONTRACTS Support Contracts Which Have Relevance to Oil Spill Response Alaska Offshore Alaska International Air Anglo Nabors 22E · Anglo Alaska Drilling Associates Arctic Slope Alaska General Construction Co. Brinkerhoff Signal/Nabors Joint Venture 36 Crowley All-Terrain Corp. Crowley Environmental Services Corp. ERA Helicopters Fairweather, Inc. Nabors Alaska Drilling, Inc. Northern Air Cargo, Inc. Oilfield Services, Inc. Purcell Services, L.T.D. Professional Contractors, Inc. Pingo Corp. Petroleum Services, Inc. Petroleum Nana Joint Venture Quadco of Alaska, Inc. Sea Airmotive, Inc. Vanguard Industry Veco, Inc. APPENDIX B DRILL RIG FUEL SYSTEMS DRILL RIG DIESEL SYSTEM Notes: 1. All valves to remain closed except where operation of system requires they be open. 2. Valve tagged M-8 on diesel storage tank must remain locked closed at all times. Filling Storage Tank: A. Check level of tank to determine required volume. B. Connect tanker hose to inlet. C. Open valve tagged M-2 (close M-3 to tank). D. Open valve tagged M-1 at inlet. E. Start pump on fuel tanker and fill tank. F. Stop pump when tanker is empty or required volume is in tank. G. Close valve tagged M-2. H. Start tanker pump with reverse flow to remove liquid in piping and transfer hose. I. Close valve tagged M-1. J. Stop tanker pump and disconnect hose. Transferring Fuel To Day Tank: A. Check level of day tank to determine required volume. B. Check that valves tagged M-i, M-6 and M-9 are closed. C. Open valves tagged M-2, M-3, M-4 and M-5. D. Open valve tagged M-7. E. Start transfer pump and transfer fuel through fuel meter until required volume has been pumped. F. Stop transfer pump and close valve tagged M-7. G. Close valves M-2, M-3, M04 and M-5. H. Check accuracy of fuel meter frequently by comparing actual volume of fuel pumped with meter reading. Inventory Control: A. The drilling supervisor shall ensure that the following information is recorded daily: 1. Quantities and times of fuel deliveries. 2. Quantities of fuel consumed. 3. Quantity of fuel on hand and time of inventory. B. The drilling supervisor shall promptly investigate and report any di s cr epanc ies · I I I I 20~000 OAL DIESEL 20,000 GAL. DIESEL STORAGE M-2B ~INMEHT BER , DRILLING RiG DIESEL SYSTEtJ -- '"'" '"'"' """-'' "'"" I . FUEL TRANSFER t OOTTOM FILL :' J GEtlt:rlATOrlJ ' NOTE: ALL BURIED SECTIONS, J DAY T^NK J OF FUEL LINES SHALL J2030 6AL. J USE WELDED CONNECTIONS. GENEIIATORS DRILLING RIG GASOLINE SYSTEM Notes: Ail valves to remain closed except where operation of system requires they be open. Filling: A. Check level of tank to determine required volume. B. Check that valve tagged N-1 is closed. C. Fill tank using tanker hose, taking care not to over fill or spill fuel when removing hose. Transferring Fuel: A. Open valve tagged N-1. B. Fill vehicle using service station type valve, taking care not to spill any fuel. C. Close valve tagged N-1. DOTTOI~ FILL ..... - .... CONTAINMENT BERM // ., I000 a Al., OA$OLINE: L_ e . j ~ e' e S[RV~CE STATION TYPi~ VALVE DRILLING RIG GASOLINE .......... -., J,. ± _ _: 7 _ SYSTEM . · _ e e ' "n~ 33 fr m~TM. C APPENDIX C ADMINISTRATIVE PRACTICE DOCUMENT ADMINISTRATIVE PR~, 'iCE NO. · R-'i-~EA SOHIO ALASKA PETROLEUM COMPANY SUBJECT Reporting Oil and Hazardous Substance Spills CROSS REF. SAPC Emergency Response Plan AUTHORITY-ENDORSEMENT , Manager Environmental Affairs APPROVAL President 7'~., -_ ~-.._ ~-..,~-'/_-'-_~,..~'~..,~J'C ISSUE DATE May 1'2, 1982' REVISION PAGE 1 iDF 3 ADMINI~TIVE PRACTICE I. II. PURtK~E AND SCOPE To inform all Sohio employees and contractors of the need for immediate reporting of all spills and how the spills shall be reported. This practice applies to Sohio's operations anywhere in Alaska. PROCEDURE A. All spills, regardless of size, of oil or other hazardous substances Will be reported. The individual discovering the spill shall immediately inform either the Sohio communications operator (Base Operations Camp or Anchorage Office) or the site supervisor. The operator or site supervisor shall immediately inform all concerned departments of the spill so that action can be expedited to minimize injuries and environmental d~nage. Alaska State Regulation 18 AAC 75.080 requires that all spills be reported, regardless of size. See Section III of this dooanent for specific duties of the Sohio operator or site supervisor. B. In accordance with Alaska State Regulation 18 AAC 75.120, the placard shown on Attachment A will be placed anywhere there is a spill potential. The placard is obtainable in a large and small size from the Environmental Affairs Department. It will be placed in conspicuous locations on the following equipment and facilities: 1. Facilities which have an above ground storage capacity in excess of 1,000 gallons of oil or hazardous substances. 2. Facilities which have an underground storage capacity in excess of 1,500 gallons of oil or hazardous substances. AC019/B/22 ADMINISTRATIVE PRACTICE NO. R-1-EA REVISION 1 PAGE 2' OF 3. Tanker trucks containing more than 500 gallons of oil or hazard- ous substances, in addition to that required to operate the vehicle. 4. Vehicles carrying or towing oil or hazardous substances as cargo off-road over frozen or non-frozen ground. 5. Tugboats, tankers, and all other vessels transporting oil or hazardous substances as cargo over waters of the state. 6. Cc~unication operator positions. 7. Well houses. C. Drill Si[e Supervisors and Gathering Center Supervisors shall ensure that placards are displayed in all areas of their facilities where there is a spill potential. D. After reporting the spill, personnel shall take appropriate actions to minimize spill damage. Guidance for communication and response is contained in the Spill Prevention Control and Countermeasure Annex to the Sohio Alaska Petroleum Company Emergency Response Plan. III. DUTIES A. The Sohio operator receiving the Spill report will immediately notify the applicable Site Supervisors, Safety (Fire Chief), the Prudhoe Bay Field Manager (for initial spill response and notifica- tion of Anchorage Management), and the Field Environmentalist Engineer or Anchorage Environmental Affairs Representative (to notify the appropriate agencies). Other notification in accordance with Sohio Emergency Response notification will be activated as advised by Safety or the Prudhoe Bay Field Manager. B. Any site supervisor receiving direct report of a spill will take either of the following actions: 1. Notify the Sohio ~unications operator who will then provide · emergency notification and callout of personnel. The operator wi'll also notify the Field Environmental Engineer or the Anchorage Environmental Affairs Representative so that appro- priate agencies can be informed. 2. As an alternative, the site supervisor will arrange for appro- priate on-si~e safety and spill response/cleanup and immediately notify the appropriate environmental representative. AC019/B/23 ADMINISTRATIVE PRACTICE NO. REVISION PAGE_ 3 OF C. The environmental representative will notify the appropriate agen- cies as outlined in the Table "Agency Reporting Requirements" noted on Attachment B. The notification of the spill will be in accord- ance with appropriate agency regulations (U.S. Coast Guard, 33 CFR 153.203; U.S. Environmental Protection Agency, 40 CFR 110; U.S. Geological Survey - OCS Order No. 7: Alaska State Department of Environmental Conservation, 18 AAC 75.080; .Alaska Oil and Gas Conservation Ccm~aission, 20 AAC 25.205). D. For all spills in exce~s of one barrel, the .Field Environmental Engineer or the Anchorage Environmental Affairs Representative will notify the Manager Environmental Affairs by telephone immediately. If the Manager is not available, the Sohio ccx~nunications operator will have an alternate contact. AC019/B/24 ALASKA STATE LAW REQUIRES THE REPORTING OF ALL REPORT ALL sPILLS IMMEDIATELY TO THE BY EITHER RADIO (CALL SOHIO BASE RADIO) OR PHONE (S OHIO "O ") TELE- THE SOHIO OPERATOR WILL TAKE APPROPRIATE ACTION FOR PROPER NOTIFICATION OF RESPONSIBLE OFFICIALS. AFTER CONTACTING OPERATOR, ADVISE YOUR SUPER- VISOR AS SOON AS POSSIBLE (PROCEDURES AS AP- PROVED BY SOHIO MANAGEMENT). FORM APPROVED BY THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION - ADEC PHONE NO, ZENITH 9300 d,~l l[ I Illl[ [[ [11 Il Il It Illll I Il I Il I I Il mi I I Attachment B : Agency Reporting Requirements 011 ,~ny size in or (211) Zenith 5555 U.S. Coast Guard threatening Immediately or (907)271-5137 Nol Re(tulred navigable walers (Days) Any size on land (211) Z'~ntlh 5555For facility requiring SPCC U.S. Environmentalbut threatening or (907)2Z1-5063 Plan If spill Is 1000 or more Protection Agency or In surface Immediately (Days) or gallons or If second spill In (206)442-1283 waters l[Seatlle-Oa),s~ 12 months U'.S. Minerals Management Spills on Federal 272-9.461 Service Oil Leases Immediately 271-4303 (Nights) All Spills (Form 9-1880) WATER. (211) Zenith 9300 >55 gal. or Immediately or 452-1714(Fbks) Alaska Department 1000 s~. fl. Telex 36608 of Environmental Within 15 Days of Conservation <.5 pt. or D. Lowery (Home) ~00 so.ff. 7 Days 456-4861 end of cleanup All other waist J. Jansen (Home) spills 24 Hours 46G-2834 LAND )55 gal. 5 Hours (211) Zenith 9300 Alaska Department ~ to 5~'gal. -- ~4"H°;j~-~s or 452-1714 gl Environmental Within 15 Days of Conservation < 10 gal. 7 Days (Fairbanks) end of cleanup Telex 36608 Alaska OII and Gas All Sl:)ills from Conservation well8 or InvolvingImmediately Chat Chatterton Wilhin 5 Days of Commission any crude loss 279-1433 end of cleanup North Slope All spills AS aeon as 852-2611 (8-5) Copy of any reports Boroughe possible (Barrow) submitted as requested 356-2409 BLM * Spills on Federal Immediately Arctic Area Oii Lessee Manager · REPORTING REQUESTING Hazardous Substances All Hazardous National Response Substance that e~ual or Immediately (800)4~4-8802 Center exceed Ils reporlable quanllty ._ (211) Zennlth 9300 or 452- 1 ! 14(Fbks) Alaska Department All hazardous Telex 36608 Wllhln 15 days of of Environmental substance spills Immediately O. Lowory (home) end of cleanup Con servatlon 4 J.Jansen (home) 488-2834 APPENDIX D PRUDHOE BAY SOHIO SPILL EQUIPMENT SPILL EQUIPMENT AND MATERIALS SOHIO ALASKA PRUDHOE BAY OIL SPILL ODUNTERMEASURE RESCIIRCES June 1982 The oil spill containment and cleanup equipment listed below is stored at Sohio Alaska facilities at Prudhoe Bay for in~nediate deployment and use in the event of a spill. A field support environmental technician is on duty at all times to provide routine maintenance and/or replacement of all spill equipment and vehicles. In addition, this equipment is entered into the central ccm- puterized preventative maintenance system which involves frequent visual and mechanical testing. In an emergency situation, field maintenance crews are also available to handle major repairs. Equipment operating instructions are available from the Field Environmentalist. Orion Spill Tracking .System -- 6 each 1 each 1 each 1 each DESCRIPTION Tracking buoys. Helicopter antenna. Storage case. Track receiver (extra batteries and instructions. Portable Response Bldg. 1 each 3 each Hercules transportation field command post 9' x 9' x 24' trailer with office, restroom, and ~rk area. Portable spill response buildings with sot- bents. Containment Boom 1 each 1 each 2 each 1 each (on order) replacement for boom damaged during spill response Baby Boom (600') with four aluminum carrying cases. Helo Pallet with 525' standard floatation series 10 (10" x 16") ocean dike containment boom. Helo Pallet with 900' compactable series 10 (10" x 16") ocean dike containment boom with helicopter cargo nets and movable pallets. ESS047/B/23 QUANTITY Containment Boom (con't) 1 each 1 each 2 each 2 each 10 each 2 each (on order) 1 each 30 each Skia~ers 1 each 2 each 2 each 2 each 1 each 200 ' 1 each 2 each 100 ' 1 each ESS047/B/24 DESCRIPTION Helo Pallet with 900' compactable series (450' boom). Compactable series 10 (10" x 16"). River dike, 450'; Ocean dike, 450'. Mini Boom (300') in carry cases (4" floata- tion x 6" skirt). Mini Boom (150') in carry cases (4" floata- tion x 6" skirt). Helo Pallet with 1,800' River Dike Contain- ment Boom. Including 8 slings amd toe connectors. Tw~ adaptors. Patch kits. Beach anchor set with winch. Pole anchors. Scavenger portable oil-water separator, oil recovery system with pump, probe and heavy oil filter. Z14 E-L Pull Wringer (CSI) Rop Mop Type Skimmer. Tail Pulleys RI-6. Swivel Bases SB1. Pumping unit with arctic pack. Four-inch oil swab MV4. 26 DP-C Puller Wringer (CSI) with electric start arctic pack and mounted on trailer with storage box. Two tail pulleys RI-6. Six-inch oil' swab MV6. 26-E Puller Wringer (CSI) with arctic pack mounted on trailer with two tail pulleys. QUANTITY Skimmers (con't) 200 ' 2 each 2 each 1 each 1 each Lqg~ istical Support 2 each Engines in Use 4 each prop 4 each jet 2 each 2 each jet 2 each 4 each 4 each 2 each 12 each 1 package 6 each 24 each 8 each 1 each 1 each 2 each 2 each 4 sets ESS047/B/25 Six-inch oil swab MV6. Manta Ray suction heads. Closed top TK1B Vac-u-max. Komara mini-skin~er with electric start power back o Morris MI-2 battery operated mini-disk skinner. 24' Raider work boats with tow post, twin 75 hp (1 set jet; 1 set prop) engines and trailers. 16' Valco work boats with tow post and 55 hp total engines jet engines and trailers. 55 hp prop engines. 75 hp prop engines. 75 hp jet engines. 55 hp jet engines. 6-gallon gas cans. Boat accessories for four boats. Spare fuel lines for 55 hp and 75 hp engines. Gentex personal flotation devices USCG Type II, Type V with Sohio Logo's Cc~fort King II - E8-706. Stearns work floatation USCG Type II suits. First aid boxes. Industrial wet-dry vacuum. Arctic model welder's tent 10' x 10 '. Aluminum response boxes with hand tools and miscellaneous support equipment for six men. Hand tools (shovels, rakes, etc.). QUANTITY _Logistical Support (con 2 each 2 each (one on order) 1 each 't) Block and tackle (1/2") sets. 3.5 KW generators. 5KWgenerator. Sorbents * 1,300' - 6" boom 400' - 4" boom 50 bales 25 rolls Sorbent boom stock. Sorbent boom stock. 18 x 18 sorbent sheets anti-static (25/bale). Sorbent. * Additional Sorbent Stock Inventory available at Sohio Warehouse. Pum~s and Storage 1 each 1 each 100 each 2 each 2 each 2 each 1 each 1 each' 1 each 3 each 1 each 120 ' 150 ' 2,000-gallon air berm with blower. 1,000-gallon air berm with blower. 55-gallon drums. 500-gallon polyurethane heavy duty, 3-ply arctic grade bladder tanks. 1,000-gallon polyurethane heavy duty, 3-ply arctic grade bladder tanks. 1,000-gallon ground barriers. 3" centrifugal trash pump, gas. 2" centrifugal trash pump, gas. 3" diaphragm pump, electric driven. 3" diaphragm pump, gas driven. Transvac. 3" arctic petroleum service suction hose. 3" arctic petroleum service discharge ESS047/B/26 QUANTITY Pumps and Storage 900 ' 50' 100 ' 5,200 ' 3,000 ' (con 't) 3" water service discharge hose. 2" arctic petroleum service suction hose. 2" water discharge hose. Quick couple 6" aluminum pipe. Sand bags. SOHIO EAST DOCK TOOL SERVICES Non-Unit Spill Equipment 1 each 26 EP-H-M Puller Wringer. Skiamer machine. (2 Helicopter transportable skids with elec- tric drive machine pump, generator, lighting system, tail pulleys, and rope mop.) ESS047/B/27 HIO RECEIYEO SEP 2 ? 1982 Oil & Gas Cons. Commission Anchorage II. III. TABLE OF CONTENTS Description of the Proposed Action ................................. 1 A) Objective ....................................................... 1 B) Location.. ~ ..................................................... 1 C) Operators ....................................................... 2 D. Schedule for Operations ......................................... 2 Drilling and Camp Site Preparation ................................. 3 A) Transportation .................................................. 3 B) Fuel Storage .................................................... 3 C) Ice Airstrip and Access Road Construction ....................... 4 D) Site Descriptions, Details, and Characteristics ................. 4 F) Drilling Pad Construction & Source of Construction _Materials..5-7 Drilling Rig and Drilling Camp Operations .......................... 7 A) Access to the Area .............................................. 7 B) Drilling Rig Camp & Food Service ................................ 8 C) Locations of Water Supply & Treatment ......................... 8-9 D) Methods of Handling Waste Disposal ........................... 9-10 E) Blow-Out Prevention Program Equipment ....................... 10-11 F) Spill "Prevention"Control & Countermeasure Plans & Oil Discharge Contingency Plans .............................. 11-12 G) Pollution ...................................................... 12 H) Testing & Abandonment Procedures ............................... 12 I) Plans for Restoration of the Surface ................... ' ........13 IV. A) TABLE OF CONTENTS (Cont'd) Area Wildlife and Environmental Characteristics ................... 14 Regional Characteristics 1) PhySiography & Geology .................................. 14 2) Terrestrial Biotic Environemnt .......................... 14 2a Vegetation ............................................ 14 2b Birds ................................................. 14 2c Mammals ............................................... 15 3) Freshwater Environment 3a Rivers & Lakes ........................................ 15 4) Sensitive Environments .................................. 15 5) Threatened or Endangered Species ........................ 15 6) Cultural, Socio-Economic and Land Use ................... 16 B) Site Specific Characteristics .................................. 16 1) Timing .................................................. 16 2) Area Sensitivity ........................................ 16 3) Geobotanical Information ................................ 17 4) Biological Concerns .................................. 17-18 5) Fish .................................................... 18 6) Birds ................................................... 18 7) Mammals .............................................. 18-19 8) Social Concerns ......................................... 19 9) Meteorology ............................................. 19 Certificate of Operator Responsibility ...................... 20 FIGURE NO TABLE NO ENCLOSURE NO LIST OF FIGURES Surface Location Location Map (This map includes:) On Tundra Ice Airstrip Staging Area for Airplane Offloading Proposed Airstrip to Support Relief Well Proposed Relief Well Location Proposed Ice Roads Drill Pad Layout & Stockpile Locations Rig & Camp Placement & Proposed Ice Roads Waste Disposal Flow Chart LIST OF TABLES & ENCLOSURES Waste Disposal Table Siksrik %1 Drill Pad Configuration (1"=50') Winter Rolligon Trail Map APPENDIX A Archaeological Survey of Siksrik %1 Well Site, NPR-A by Cultural Resource Consultants (included with text) APPENDIX B Subsistance Study of Siksrik %1 Wellsite, NPR-A by Cultural Resource Consultants -- to be submitted on October 15, 1982 I. DESCRIPTION OF THE PROPOSED ACTION A) Objective Siksrik %1 wi~h an anticipated total depth of -7900', will be drilled into Cretaceous sediments. The primary objective is sandstones believed to be present in the middle and lower Torok section at a depth of approximately -6700'. B) Location (Figure 1 & 2) The wellsite is located 32 miles west of Nuiqsut, 67 miles south east of the DEW Line Station at Camp Lonely, and 71 miles west of the Kuparuk Base operations camp. The facilities at Camp Lonely, Kuparuk and Nuiqsut include all-weather airstrips. Well control is provided by West Fish Creek %1 5.1 miles to the north, Fish Creek %1 and South Harrison Bay %1 6.8 and 14 miles respectively to the northeast, and North Inigok %1 16.5 miles to the west. These nearby wells were all drilled in the NPR-A. This well will be a straight hole at a bottomhole location in Federal Lease AA46601, Tract 821-03, which is leased to Sohio. The location is: Latitude: 70° 14' 42" Longitude: 152° 3' 08" Sect. 2-T10N-R1W, 900'NSL, 1020'WEL UTM Zone 5: x=741,116, y=5,943,862 C) Operators Sohio Alaska Petroleum Company will be the operator of this well. Contractors for construction or drilling operations have not been selected at this time. D) Schedule for Operations The pre-operational program is scheduled to begin on or about October 15, 1982. During this initial construction phase and before the ice airstrip is operational, fuel and any required supplies required for the construction of ice strip and pad will be transported overland from Deadhorse using low-ground-pressure rubber-tired vehicles. The drilling rig, followed by the drilling camp and any remaining drilling supplies, will be airlifted to the site from Deadhorse using Hercules Aircraft. The schedule for the various phases is approximately as follows: October 15 - Begin flooding tundra for a 6000' herc strip November 8 - Start construction of iceroads and pad November 15 - Begin flying in rig equipment December 1-15 - Spud well We realize that December 1 is almost impossible, but a December 15 spud is realistic. II. DRILLING AND CAMP SITE PREPARATION A) Transportation The initial construction equipment to be transported to the Siksrik site will include: D-6 Dozer Water Trucks Sno Tuckers Rolligon with Drill and Pump The equipment will be transported cross-country to the site. The on-site arrival will be dependant on weather conditions, on-tundra approval, and the ability to cross Fish Creek, Judy Creek, Ublutoch River, and the Colville River. B) Fuel. Storage Fuel will be stored on the pad location in single wall steel tanks with a combined storage capacity of approximately 75,000 gallons. All fuel tanks will be surrounded by herculite lined fuel containment berms. (Any fuel from a spill coming in contact with.this berm would be at ambient temperatures.) Inasmuch as the drilling program calls for completion prior to break-up, these ice-sealed berms will be competent during the period of operations, based on past experience. Fuel-flow diagrams and transfer procedures, valving sequence and safety precautions are provided with the Spill Prevention Control and Countermeasure Plan & Oil Discharge Contingency Plan. Ail personnel working in the fuel handling area will be thoroughly trained in these procedures. The movement of personnel, as well as that of general small construction supplies, will be by helicopter. C) Ice Airstrip and Access Road Construction (Figure 2 & 4) Construction of the ice airstrip and ice roads will utilize equipment specified in Part A and take 10 to 25 days depending on weather conditions and start dates. Plans call for construction of a ice airstrip, 150 feet wide by 6,000 feet long, to be used by all fixed wing aircraft. Approximately 49 acre feet of water will be needed to build the ice airstrip. Plans also call for construction of approximately 11,000 feet of ice road; 50' wide and 1' thick. Approximately 13 acre feet of water will be required to build the ice road. The water will be obtained from the water source lakes in the vicinity of the wellsite, and will be hauled by rubber-tired vehicles via the established ice roads. (See Section III, Part C for specific water location details.) D) Site Descriptions, Details and Characteristics (Fig 3, Encl. 1) The site on which the drilling pad will be constructed is located 85 miles west of Deadhorse airstrip. The location is about 75 feet above sea level and is underlain by recent point bar sands and silts with a few shallow lakes in the surrounding area. The drill site pad surface and work area will have an elevation of at least one foot above the surrounding ground level to accomodate an ice pad; or one to three feet above ground level for sand pad construction. The site floor beneath the rig and other machinery will be covered by a reinforced, low temperature, plastic membrane (herculite) over which rig matting boards and foundation timbers will be placed. This will prevent minor drips or spills of diesel or sump oil or dirty washdown water from penetrating into the pad surface area. The cellar is rectangular, and will either be eight feet deep, ten feet in length and eight feet wide for ice pad construction; or four feet deep, ten feet in length and eight feet wide for sand pad construction. The cellar will be permanently attached to the conductor pipe and it has been designed to allow a "Christmas tree", to be fitted on the wellhead at ground level in the event of the well discovers hydrocarbons. The "Christmas tree" will be used for testing purposes only, and will be removed with the wellhead upon abandonment of the well. No permanent facilities will be left on location. F) Drilling Pad Construction and Source of Construction Materials (Fig 3) The equipment required for pad construction listed below will be transported by air 'after completion of the air strip. The period of time required for construction of the pad will be 10 to 20 days depending on weather conditions. The required pad constrcution equipment will include: D-6 Dozer D-8 Dozer Belly Dump Trucks Portable Arctic Camp Tucker Sno-Cats Portable Shop Grader s Cat Loaders Pick-up Trucks The drill site will consist of an ice pad or sand pad constructed on the tundra. The pad area of 250 feet by 380 feet is adequate to accommodate the rig and necessary operating supplies. The pad will have a reserve pit constructed adjacent to it with dimensions of 380 feet by 300 feet and walls 3 feet thick and 20' at base tapering to 10' at the surface. The reserve pit will be excavated to a minimum of 6' below the existing ground level and the volume of the drill cuttings and spent muds is not expected to exceed the capacity of the excavated portion. The dike will provide a safety factor in the unlikely occurance of a large discharge of mud. Most residue from the drilling operation is composed of earth substances and will have an insulation barrier of a minumum of 6'. (Figure 4) An ice pad is proposed, and if constructed, 3 1/2 acre feet of water will be required. Water will be obtained from water source lakes in the vicinity of the wellsite. (See Section III, Part C for specific water locations). However, if a sand pad is to be constructed approximately 30,000 cubic yards of fill material will be required for the construction of the drilling pad. The primary sand source will be the fill material excavated from the reserve'pit at the drilling location which is located in the SE 1/4 of Section 2, Township 10N, Range 1W. An alternate fill material source will be the point bar sands located in the NE 1/4 of Section 11, Township 10N, Tange 1W. An additional 3,000 cubic yards of fill material for construction of a flare pit could be required if it is decided to test the well. Precise extraction areas will be staked out by Sohio. Full details of extraction, haulage, and stockpiling procedures will be communicated to the Bureau of Land Management by Sohio Alaska Petroleum Company. A material purchase agreement will be executed prior to construction. (Figure 2) III. DRILLING RIG AND DRILLING CAMP OPERATIONS A) Access to the Area In mid-November 1982, the drilling rig and camp will be transported by C-130 aircraft to the Siksrik wellsite. Approximately 250 trips, utilizing C-130 type aircraft will be required to transport the drilling rig, camp, and necessary drilling supplies to the wellsite. Air travel will take a northwestern route from Prudhoe Bay along the coast and drop south of the wellsite avoiding the area between Nuiqsut and the wellsite. During the estimated 60 days required to complete drilling operations, the camp will be supplied almost exclusively by aircraft. An estimated 300,000 gallons of diesel fuel will be required to complete drilling operations. In addition to fuel and drilling supplies, the camp will require about 7,000 pounds of food and other general supplies per week. Special tools, parts, and test equipment also will arrive by air. B) Dri~lin~ Rig Camp & Food Service The camp area on the drilling pad will be sufficient for a typical 80-man camp. The modular structures are provided for safety, comfort, and convenience of the occupants. The drilling contractor provides food service for the drilling camp. ge is responsible for ensuring that all food is from an approved source, is properly refrigerated, and stored on shelves off the floor. Cleanliness will be maintained in the kitchen and dining areas in compliance with applicable government regulations. C) Locations of Water Supply & Treatment (Figure 2 & 4)) Permission will be requested under the authority of the Bureau of Land Management and the Division of Land & Water Management where necessary to obtain water for camp and drilling operations from Oxbow Lake located in the NE 1/4 of Section 2, T10N, R1W. The secondary water source for camp and drilling operations will be the lake in the NW 1/4 of Section 1, T10N, and the SW 1/4 of Sec 36, TllN, R1W. Domestic water requirements are estimated to average about 5,000 gallons per day, with drilling water requirements averaging about 20,000 gallons per day. The use of lake water for camp and drilling operations requires that it be treated to remove most of the contaminants, especially in late winter when water quality becomes poor. Camp water from the lake source will be made potable using a water treatment facility enclosed in a skid-mounted insulated steel building. The suction hoses to be utilized for water intake will be properly screened so that any fish, if present, will not endanger or be endangered by the operation. 8 A series of filtering processes will remove sediments, iron and manganese, and also any taste, odor, or color. Water will then pass through a water softener where calcium and magnesium will be removed. Treated water will be stored in storage tanks located in the camp. Sixteen acre-feet of water will be needed for ice pad and ice road construction which will take place from October 15 to December 1. Permission will be requested for use of the lake encompassing Section 26, TllN, R1W; the lake encompassing the SW 1/4 of Section 25, the SE 1/4 of Sec 26, and the NW 1/4 of Sec 36, TllN, R1W; and the lake encompassing the middle sections of Section 35 and 36, TllN, R1W as the primary water sources for construction purposes. If the water sources from these lakes become insufficient, permission will be requested for use of Oxbow Lake as a secondary water source. D) Methods of ~andling Waste Disposal (Figure 5, Table 1) Pollutants will not be permitted to accumulate at the drilling site. In general, burnable wastes will be disposed of on site, and other waste material will be transported away from the site on a frequent basis for disposal in an approved location on land. Garbage, noncombustible trash, ash from the incinerator, and other solid wastes will be transported to the North Slope Borough Solid Waste Disposal Facility. Sewage will be treated by the approved camp physical-chemical treatment unit. Effluent from this unit will be chlorinated prior to discharge and sludge will be incinerated on the pad.. Used drilling fluid and drill cuttings will be discharged into the reserve pit at the drill site. See the attached chart and flow diagram for a more detailed description of the above procedures which are intended to eliminate all potential discharges on the pad. E) Blow Ou% Prevention Program ~.-~uipment This rig will be equipped with a 20" 2,000 psi W.P. annular diverter system installed on 80 feet of 20" conductor pipe while drilling 17 1/2" surface hole to 2,700'. In the unlikely event that high-pressure, low-volume surface gas is encountered, the well bore fluid can be diverted away from the drilling rig through a 10 3/4" line to the reserve pit and the gas allowed to vent to the atmosphere. After running and cementing 13 3/8" 72% N-80 surface casing at 2,700 feet, blow-out prevention equipment (BPOE) consisting of three 13 3/8" 5,000 psi W.P. ram type preventers, a 13 3/8" 5,000 psi W.P. annular preventer, and a two-choke manifold will be installed. These preventers are powered by a 80-gallon accumulator system with both nitrogen and manual back-up. The BOPE will be thoroughly tested for leaks using glycol/water upon installation and at least weekly thereafter. Operational tests and crew drills will be conducted daily. Primary well control will be maintained by over-balancing formation pressure with a column of drilling fluid. Automatic and manual monitoring equipment will be installed to detect any abnormal variation in the mud system and drilling parameters. A mud-logging unit manned by experienced personnel will be in continuous use while drilling and will monitor formation pressures, hydrocarbon shows, and loss or gain in the mud pits. In the event that the well kicks, the BOPE will be used to shut in the well immediately and confine the pressure within the closed system. 10 The casing program is designed so any anticipated kick pressures can be shut in at the surface without breaking down the formation at the casing shoe. The Company representatives assigned to the drill site have had extensive training, including industry seminars, workshops, and nationally recognized well-control courses at Louisiana State University and Oklahoma University, together with actual experience in controlling and killing kicks. Such training is an on-going program of the Company. These personnel will be further supported by well trained drilling crews approved by the Company. Fluids resulting from a kick will be circulated out using the balanced bottom hole pressure method and the well will be restored to its normal operating condition. In the unlikely event that the secondary control of the well is lost and premature well flow occurs, the company has at its disposal specially designed equipment and a blow-out contingency plan, experience backup personnel, a cementing unit at location at all times, and several Hercules transportable rigs available in the Prudhoe Bay area which can be utilized to drill relief wells. F) Spill "Prevention" Control & Countermeasure Plans & Oil Discharqe Contingency Plans Spill prevention control and countermeasure plans and oil discharge contingency plans for the site will be prepared and available for review. The plans will describe spill prevention considerations as well as environmental and social economic concerns. 11 Also included in the plan will be identification and instruction on activation of the Sohio Spill Response Contingency Organization and other applicable notification and spill response procedures necessary for spill contingency planning. Emphasis will be given to awareness training on spill prevention, reporting requirements and response procedures and techniques, and training will be administered to personnel on all levels, including contractor personnel. G) Pollution The-incinerator and diesel-powered generators on the rig site (over 250 KV capacity) are permitted with the State Department of Environmental Conservation. No other equipment should be a source of air pollution. Should hydrocarbons be encountered and flow testing deemed necessary, an appropriate permit will be obtained from the Department of Environmental Conservation. H) Testing and Abandonment Procedures If the presence of hydrocarbons is detected in the drilling mud or other evidence indicates it to be desirable, the wellsite geologist will call for a drill stem test (DST). The potential producing formation will be isodatd, and an attempt will be made to produce the fluid through the drill stem. If hydrocarbons are produced during the test, they will be disposed of by flaring. The well is to be abandoned and it will be plugged with cement at intervals, as required by the Conservation Division, Minerals Management Service, and the State of Alaska 0il & Gas Conservation Commission.. 12 I) Plans For Restoration of the Surface Upon final completion of all drilling and testing operations, this well will be plugged and abandoned in compliance with all Federal and State regulations. Abandonment will include setting mechanical plugs and/or cement plugs above all hydrocarbon producing formation and/or casing liner laps. The cement plug will be placed within the casing at the surface and a well cap installed with a marker post as per Federal MMS and State Oil & Gas Conservation Commission regulations; equipment will be removed and the drill site thoroughly cleaned of any refuse.The stockpiled tundra material excavated during the construction of the reserve pit will be replaced on top of the surface of the frozen contents of the pit. This six foot thick layer will insulate the pit contents from melting and will also function as a natural landscaping medium. The drill site will be cleaned of refuse as thoroughly as possible in its frozen condition during April/May. A final cleanup will be completed after breakup in the summer of 1983 at a time compatible with wildlife considerations as per lease stipulations. If an oil spill is discovered, thorough containment and recovery procedures will be initiated. After clean up the site will be monitured to detect any additional contamination or degradation of the environment, especially after breakup. If inspection indicates a need, additional restoration measures will be initiated. Section 300 of the SAPC/SPCC and Oil Discharqe Contingency describes in detail various restoration procedures and techniques used by Sohio on the arctic coastal plain. 13 IV. AREA WILDLIFE AND ENVIRONMENTAL CHARACTERISTICS A. REGIONAL CHARACTERISTICS 1) Physiography and Geology The wellsite and winter trail routes lie entirely within the Arctic Coastal Plain Province. The region is characterized by low lying sand dunes and elongated partially drained thaw lakes. The surface landscape is controlled by eolian and alluvial reworking of previously deposited sediments (National Petroleum Reserve-Alaska/Environmental Assessment, 10/1/82, NPR-A/EA Sect. II.A.l.a). The surface geology of this area (NPR-A/EA Sect. II.B.2.b), along with that of the foothills and Brooks Range provinces, has been described in the NPR-A/EA Sect II.A.2. 2) Terrestrial Biotic Environment 2a) Vegetation The Fish Creek area is classified as tussock Tundra [Ecological Profile NPR-A 105(c) Study Report ~4, (EP/NPR-A) Plate I]. Cottongrass is the dominant plant species and indicative of well drained areas [NPR-A/EA Sect II.A.3.a.5), and Sect. II.A.3.c.5), EP/NPR-A, pp 37-44]. The tussocks characteristically are 6-12" wide and high and separated by 1' troughs; associated plants include dwarf birch, cranberry, heath, willow, and various forbs, sedges and grasses (NPR-A/EA Sect IIA. 3.a.5). 2b) Birds The well site is approximately 36 miles to the southeast of Teshekpuk Lake and 20 miles away from the Special Area surrounding it. 14 2c) Mammals Small mammals such as the Arctic shrew and Arctic ground squirrel are associated with the tussock tundra habitat. Large carnivores such as grizzly bears and wolves are locally and seasonally abundant. (NPR-A/EA Sect. II A.3.a..5)., Sect II B.2.c.2).3. 3) Freshwater Environment 3a) Rivers and Lakes West Fish Creek is the principal river in the region and drains northeast into the Beaufort Sea. Drainage at the wellsite is generally southeast towards West Fish Creek. The fresh water lakes in the area fall into two categories. Thaw lakes which are approximately 6-8 feet deep and glacial lakes which are clear and deep (AEIDC, 1975). Most lakes are devoid of fish and Lakes shallower than 6' deep freeze to bottom. 4) Sensitive Environments The Siksrik ~1 wellsite and its ancillary water sources are located outside of and approximately 20 to 21 miles southeast of the Teskekpuk Lake Special Area. The winter scheduling of operations does not interfere with migratory waterfowl or their habitat. 5) Threatened or Endanqered Species There are no known, officially designated, threatened or endangered terrestrial or freshwater, plant, or animal species within the area of the proposed activity. 6) Cultural, Socio-Economic and Land Use A historical and archarological survey of the wellsite was conducted by Cultural Resource Consultants during the week of August 2, 1982. No cultural resources were found and clearance has been decided. A subsistance study is being conducted by Cultural Resource Consultants and will be submitted on October 15, 1982. B. SITE SPECIFIC CHARACTERISTICS Sections 1) - 9) are referenced directly from Siksrik 91 Spill Prevention Countermeasure Contingency Plan and Oil Discharge Plan. (Pope, 1982). 1) Timing Construction and drilling operations for the proposed well will begin after freeze-up (airstrip construction around October 15), and be completed prior to breakup. Previous field experience and observations indicate that this timetable and activity will create little or no adverse effects on the wildlife and Vegetation of the Siksrik 91 area. The major threat to wildlife on or surrounding the Siksrik ~1 vicinity would be the unlikely occurrence of a major oil spill. 2) Area Sensitivity The following information on the sensitivity of the Siksrik 91 area is taken from the NPR-A Task Force 105(c) Land Use Study: Study Report ~4 NPR-A Ecoloqical Profile, the ABSORB draft publication, 0il Spil! Response Considerations Manual, and on-site visits. 16 3) Geobotanical Information As discussed in Section 1.4, the proposed Siksrik %1 site is located approximately 32 miles west of the village of Nuiqsut, 71 miles west of the Kuparuk Base Operations Center, 67 miles south east of Camp Lonely in NPR-A, and within a meander of Fish Creek running through the northeast corner of NPR-A. The terrain in this area is characterized by a large low centered polygons with wide rims and narrow troughs, and is refered to as upland tussock tundra. Vegetation of this area consists of a variety of arctic sedges, grasses, dwarf shrubs, and numerous lichens; with the dominant plant species being Eriophorum va~igatum the tussock forming cottongrass. In the tussock zone Eriophorum is an important food source for caribou in the spring. The soils present in this area are silty and well drained. Due to the type.of soils present, the vegetated shorelines and mud flats of the Fish Creek area have minimal load bearing capacity and caution should be used to minimize the chances of erosion. Because drilling activity at this site is a winter season process and will be completed before breakup; in the unlikely event of a major spill, the affected area would be cleaned prior to ice melt. Thus oil retention potentials or erosion problems should not be a factor of concern. 4) Biological Concerns Previous drilling experience in similar habitats has shown that winter operations do not interfere or cause detrimental effects on the daily habitats of the surrounding wildlife. 17 Field experience and observations have revealed that few wildlife species utilize the Siksrik ~1 site and surrounding region during the anticipated operational period (October - March). 5) Fish The Fish Creek area (see Figure 3.5) is an important area for anadramous fish. Fish overwintering areas have been identified in the Fish Creek water system. In accordance with lease stipulations for this tract, facilities will not be located within 200 meters of Fish Creek in order to protect the biological resources of the water system. 6) Birds Birds found year round in this region are the willow and rock ptarmigan, snowy owl, and the common raven. After breakup swans and numerous other waterfowl utilize the general area for nesting, molting and staging. Lease stipulations for this site require that exploration activities not be conducted during the period between May 20 and August 25 in order to protect nesting, molting and staging activities and habitat, unless an exception is granted by the Fairbanks District Manager, BLM. 7) Mammals The fish Creek area is within the year-round range of the Teshekpuk Lake caribou herd and includes the eastern portion of the wintering range of the Western Arctic caribou herd. The seasonal operations lease stipulations on this tract prohibit exploration and drilling activities at this site between May 15 and June 15 unless a exception is granted, in order to protect seasonal caribou calving habitat. 18 Other wildlife which may be found in the general vicinity during winter are the occasional wolf, caribou, arctic fox and lemming. During the summer vole, shrew, wolverene, arctic ground squirrels, and an occasional bear may also use this area. .. 8) Social Concerns There are no permanent establishments and/or facilities located in the Siksrik %1 area. The village of Nuiqsut is located 32 miles east and Barrow is located approximatelu 110 miles north west of the proposed location. The Fish Creek area may be used by villagers of Nuiqsut and Barrow for hunting, trapping and fishing. 9) Metereorology General meterological data for this region may be found in the Appendix A of the ABSORB Oil Spill Contingency Plan and in the Absorb Oil Spill Response Considerations Manual. The data available includes temperature, precipitation, wind and visibility conditions likely to be encountered through the year. 19 CERTIFICATE OF OPERATOR RESPONSIBILITY {~2) Le.~see'~ or Opera:or'~ R~-pre.~entat~ve. Include :he name, addres,-, and phone number of :he lc.~see's or operator's ~eld representative ~ho Es reaponsEble for assuring compliance wE:h the approved surface use and ope rac~ons plan. P.R. Judd- M~ager Drilling c/o Sohio - Pouch 6612 ~c~rage, ~aska 99502 - 263-5182 (13)' Certification. ~e fol]o~{n~ sta~en: is :he plan and mus~ be s~gned by the lessee's or operator's f~e]d represen~a~ive.~ho ~s identified ~n i~ no. 12 of ~he plan: ,. I hereby certify :ha: I, or persons under my direc~ supe~ision, have inspected the proposed drills/:e and access route; that I am familiar ~:h the conditions ~ich presently ex~s:; tha: the statements made in th~s plan are, to :he best of my knowledge, true and correct and, that the work associated w~th the operations proposed here~n ~11 be perfo~ed by so~o ~aska Petrol~ Ch- . . and subcontractors in confo~ty w~th this plan and the :e~s and conditions under approved. 9-21-82 ~ -' ' Date' Name and Title P. R. Judd - Manager Drilling Note: If private surface is involved, the permit to drill must be accompanied by the rehabilitation plans as required by NTL-6 in one of the following forms: (a) written agreement between operator and fee or--net describing rehabilita- tion requlrements; .or (b) a letter from operator describing surface o--~er'e rehabilitation requirements; or .mm=== · (c) a letter from operator sl:ating tha: he could not obtain rehabilitation require- ments from surface o~er and ~v{n~ reason therefor. 2O ,1' .cE ~R. ~ g. - ' ' -r' '"' 1~./~ - ~ . i I ~:~ ~//'~-~* ' /+--,.. ~ I I , I o ii I~ a 7 I kO~.~ 1~2°0~07.73' ! I I Xs 741~116 I I I I I R. IW. I yt 5,943,062 I i0 I I I t I I i IS I I I I ~ I i I i I I. I I ~ I I I I I I 21 I 22 I 23 I I I I I I I I I SCALEi I": IMILE T. IIN. T. ION. CERTIFICATE OF SURVEYOR I hereby certify that lam properly registered and licensed to practice land surveying Jn the State of Alaska and that this plat represents a location survey made by me or' under my supervision, and that ali dimensions and other details are correct. - . FIG. I PROPOSED SURFACE LOCATION SIKSRIK No. 1 Located iff SE I/41 SEC. 2,~ T. I0 N. 1R. I W.1UMIAT M~RtOIAI~IAK. Surveyed for SOHIO ALASKA PETROLEUM CO. Surveyed by F M. LINDSEY I~ ASSOC. LAND & HYDROGRAPHIC SURVEYORS. 2502 West Northern Lights Boulevard Box 4-081 Anchoro~]o, Alaska A. izs"re.s2 ! RELIEF WELL~ ~ : : ~~ ,' ~ " ~ ~OHI~ 8OH~ A~SKA PETROLEUM 1~,. LEGEND: "~, ~ LOCATION MAP PROPOSED WATER SOURCES 'o ~ ~ " SCALE: = ~' ~ mi~ 8APC CARTOGRAPHY LA-O1-AN-0008-02 FIG. 2 . , TOPSOIL ~~ STORAGE PILE 380' PLOT PLAN- A ,) 340' ~ RESERVE 280' PIT --)' -. 20' I-- ,.,. 380' ...J N.T.S. 300' /////////////.///////'/J 280' FLARE PIT '~'~FILL STORAGE FOR FLARE PIT BERM MATERIAL · 200 SECTION AA LIMIT OF NEW FILL , \ EXISTING L.,LIMIT OF NEW FILL~I ~ 3' MIN.~ 6 MIN. ~ GROUND 1~'/' 'NEW FILL . . I- _._O~ ' / ~1~~ NEW FILL N.T.S. ~280/T NEW FILL NOTES: SELECTED FILL MATERIAL FROM A LOCAL SOURCE TO BE USED TO BUILD A DRILLING PAD, RESERVE PIT AND A FLARE PIT, IF REQUIRED FLARE PiT IS TO BE ADDED IF TESTING IS JUSTIFIED FILL AREA IS INTENDED TO 8E USED AS A DRILLING PLATFORM TO SUPPORT AN EXPLORATORY PETROLEUM WELL APPROX. SO,000 CU YDS OF FILL WILL BE REQUIRED LEGEND: ~ STORAGE AREA NEW FILL PROPOSED FLARE PIT SECTION BB LIMIT OF NEW FILL 1.5 ~( 3', MIN. EXISTING ~- 20' GROUND N.T.S. SOHIO SOHIO ALASKA PETROLEUM CO. SIKSRIK WELL No. I DATE' 8/19/82 FIG. 3 i i SAPC CARTOGRAPHY LA-O1-AN-O010-O2 .- ~! ,. ~~ 'OPERATIONS. ~ ~~/j11"-'~. ~~ ~ . ~ PROPOSED ~/! ~,,~-,-" .:~' I ~ '~ ~ FLARE PIT/ ~~ ', ~) /i(,F REQUIRED) ~i-r---P-SED ICE ROAD ~~ RESERV~ PIT~~ }~ I ~'~ A M P z~:::~¢ ~ ~ SOHIO ALASKA PETROLEUM CO. '~ ~ SIKSRIK WELL ~ 1 RIG & CAMP PLACEMENT SCALE: I "=800' FIG. 4 I I SAPC CARTOGRAPHY LA-O 1-AN-OO 15-01 Garbage, combustible waste 'CAMP I' "-[ ~C"~ERATOR1 Sewage ~ SEWAGEpLANT Non-combustible waste DRILLING RIG Drlll!n~ fluid and cuttings Fresh Water ' DrlUing .. Recycle Fluid Whe;e Feasible Waste 011 Effluent L~ IKSiR IK W E__LL N 0.__1 ....... Ash FIG. 5 I I I I IINORTH SLOPE IIBOROUGH SOLID IIWASTE FACILITY I I I" I~-''-i,ONSHORE SIT , I I I I I I I I I I ..! WASTE OIL i I J IRoad Oiling '1 STOR^GEI ' ' VARIOUS SITES INLAND J 8APC CARTOGRAPHY LA-O 1-AN-O016-00 SiKSRIK WELL NO.1 . o - WASTE MATERIAL DISPOSITION i i i s~a~ S~e ,, , , ~ , Com~stib~ waste . , ~at~ ash , , . Oril~ f~d Cuttings See · Waste oil Note TABLE ONE NOTE: Waste oil (if any) shall be transported by truck for approved storage inland. It will subsequently be used for approved road oiling purooses, or disl3osal in an injection welL APPENDIX A Archeological Survey of Siks~Ak #1 Well Site, NPR-A by Linda Finn Yarborough Report Submitted to Sohio Alaska Petroleum Company Contract No. 82J139 Federal Antiquities Permit No. 82-AK-334 Cultural Resource Consultants Anchorage, Alaska ABSTRACT An archeological survey of Sohio's Sik sik #1 well site was conducted by L. Yarborough and N. Campbell of Cultural Resource Consultants on August 4-9, 1982. The project area is along Fish Creek, Townships 10~and 11 North, Range 1 West, Umiat Meridian, in the NPR-A. The area surveyed included the well location, three potential ice airstrips, two potential borrow areas, and the proposed ice roads which would connect the airstrips and borrow areas with the well location. No cultural features or artifacts were located. Introduction ,, From August % through August 9, 1982, L. Yarborough and N. Campbell of Cultural Resource Consultants conducted an mrcheological survey of Sohio's proposed "Sik sik #1" well site near Fish Creek, in Townships 10 and-11 North, Range 1 West, of the Umiat Meridian. '. The project area is in the National Petroleum Reserve, Alaska (NPR-A), land owned bM the Bureau of Land Mamagement. Besides the well-drilling pad location, north of Fish Creek, the area surveyed included three proposed ice air strips, two potential borrow sites, and the ice roads connecting the airstrips and borrow sites with the well location (figure 1). The survey was conducted under Federal Antiquities Act Permit #$2-AK-33~. The original records from this survey are on file at the office of Cultural Resource Consultants in Anchorage, Alaska. Study Area Fish Creek is a meandering stream which runs northeast through the Arctic Coastal Plain to the Arctic Ocean. It lies west of the Colville River, and southeast of Teshukpuk Lake. The creek drains a "Pleistocene Sand Sea'~ an area composed of large stable dunes of Pleistocene-age wind-blown sand~ with a·thin cover of Holocene-age eolian sand (Carter 1951:351). The lower part of the younger sand layer has been radiocarbon dated at 9,6~0~150 to 11,&00!160 B.P. (Carter 1951:382). Numerous thaw lakes are found in the area, and the surface is covered by low-centered ice-wedge polygons. The dominant plant community is moist tundra, including mosses, sedge, cottongrass, saxifrage, bistort, mountain avens, labrador tea, crowberry, cranberry, willows and dwarf alders. Fauna seen in the area include caribou, ground squirrels, ptarmigan,, arctic char, grayling and whitefish. Evidence was also noted of Sori- cidae species (shrews), and Cricetidae species (lemmings and voles), arctic fox, grizzly bear and wolf. ,, Previous Archeology. As no cultural remains were discovered during this survey, only a short recounting of previous archeological work will be included here. The 1952 manuscript by Hall and Gal, "A Summary of the USGS/BLM Cultural Resource Program in the National Petroleum Re- serve in Alaska:1977-81", contains an up to date summary of past research and a tentative cultural historical sequence which may be refered to for further information. Past research which has contributed information about, the history and prehistory of the general Fish Creek area includes studies at Teshukpuk Lake (Davis et al. 1951, C. Davis personal communication), traditional land use research by the North Slope Borough (noted in Hall 1976 and 1980), and studies by USGS/BLM associated with oil exploration programs (Hall and Gal 1982; hall 1976, 1980). Very briefly, human habitation of areas in NPR-A is known from as early as 9500 B.C. Early sites are generally characterized by microblade complexes of the northern Archaic, and beginning about 2500 B.C., the Arctic Small Tool Tradition. Younger complexes include 01d Bering Sea, noted for its decorative art styles and harpoon heads.; Punuk; and Western Thule, characterized by the development of whaling techniques that were in use at the beginning of the historic period (Hall and Gal 1982:81-83). Inland sites known'from NPR-A are predominantly sUrfac~ sites, although they range in age from several thousand years old to the historic period. Older prehistoric sites are generally character- ized by lithic remains, occasional bone and wood artifacts, and few surface~features. Sites from the proto-historic and historic .. periods frequently include surface features such as house depres- sions, caches, graves, or cabin remains. Sites such as South Meade No. 1, near the Meade River, which is associated with a deeply buried soil layer, are unusual (Hall and Gal 1952:64-65)o Two sites are recorded for Townships 10 and 11 North, Range 1 West of the Umiat Meridian. One is a small, trapping or reindeer herding cabin, on the north rim of a ridge overlooking a lake, in the north- west quarter of ~Townsh~p 11 North, Range 1 West (Hall 1976:16). The other is a traditional use site located in the southwest quarter of Township 10 North, Range 1 West (Hall 19S0: Appendix F, map 2). Neither of these are in the immediate project area. Field Methods The Siksik #1 drilling pad-well location was inspected four surface features and artifacts and tested for subsurface cultural material. Two stakes, approximately SO0 feet apart, labelled "primary surface- well locatien" and "bottom hole" served as reference points for a grid of shovel tests extending a radius of 700 feet out from each stake. Tests were roughly 30 meters apart. Much of this area was marshy, with standing water, and was not tested. Approximately 180 tests were made, ranging from 30 to 50 centimeters in depth, de- pending on the permafrost level. In the area east of the "bottom hole" .stake, alone the bank of Fish Creek, the numerous ground squirrel holes were examined in addition to the testing. The proposed borrow sites are in low sand dunes, noted as A and B in figure 1. Area C .was also examined, although it is not part .o of the proposed project. Survey methods for the proposed borrow sites included shovel tests, examination of the numerous ground squirrel holes and their backdirt, examination of the frequent sand blow-outs, and cuts in the sides of dunes in attempts to discover and/or clarify stratigraphy. Tests and examinations were made approximately every 10 to 20 meters. About 100 shovel tests were made in are A, 35 in area B, and 125 in area C. A surface survey was undertaken for the rights-of-way of the proposed air strips and ice roads. This type of survey was deemed sufficient as these portions of the project are not anticipated to cause any surface disturbance, and, being made of ice, will not be permanent. Neither the ice roads nor ithe air strips were marked on the ground by stakes, so maps and drawings supplied by Sohio were used to determine their placement. Although the proposed rights-of-way are 60 feet for ice roads and 120 feet for ai'rstrips, an area approximately three times that wide was examined because of the lack of staking. In carrying out the ice road survey, the two crew members stationed themselves approximately 30 meters apart, and then walked the length of the ice roads in a zig-zag manner, covering approximately 15 meters to each side. In this manner, an area approximately 60 meters -5- wide was examined for each road. In the case of the ice road to the North Alternate Lake Strip, two different maps from Sohio showed two different routes, so both were checked (see £igure 1). With the aid of a helicopter, four flagged stakes were placed ,, along the route mapped by Sohio as the Tundra Airstrip. Archeolo- gical survey covered approximately 60 meters to each side of our stakes, proceeding in the same manner as for the ice roads along first the northwest side of ~he route, then the southeast side. The proposed North Alternate Lake Airstrip and South Alternate Lake Airstrip will be located~ for the ~ost part, on lakes. Those portions which are not are in marshy wet areas adjacent to the lakes. Neither the lakes nor the marsh were surveyed on foot. Reswlts No cultural features or artifacts were located during the archeo- logical survey of the Sik sik #1 Well Project. The tests made in the vicinity of the well location and drilling pad and the borrow sites-showed no stratigraphy which could be construed as a level of previous habitation or use of the area. The subsurface deposits in all tests were sand. Near the shore of Fish Creek, east of the "bottom hole" stake, the sand was a whitish color, with three slightly darker layers of sand in the top 15 centi- meters. The stratigraphy of the creek bank showed the light colored sand continuing down 2 meters to the water's edge, with occasional darker tan areas in the bottom 50 to 75 centimeters. Closer to the stakes, the sand increased in humus content and darkened in co'lor, being a dark brown color as deep as 50 centi- . meters near the "primary surface" stake. About 100 meters north- west of the "primary surface" stake is a small dune where the sand was a uniform light tan color. The sand in Borrow A was, for the most part, light.tan, with infrequent narrow darker bands of sand noticeable in some places. Nothing resembling peat or a paleosol was note~d. The sand in Borrow area B was generally dark brown, with occasional small patches of lighter sand. The sand in area C was uniformly light tan in color. Con c. lusi.q.n.s. The negative results of the archeological survey lead to the con- clusion that no cultural resources will be disturbed during acti- vities connected with the proposed Sik sik #1 Well Project. It should be understood, however, that an archeological survey is only a sampling of a particular area~ If any cultural resources are encountered during construction, work harmful to the resource should be stopped, and the Bureau of Land Management archeologist and the State Historic Preservation Officer notified. -7- Bibliography Carter, L. David 1981 "A Pleistocene Sand Sea on the Alaskan Arctic Coastal Plain". Science, vol. 211 no. 4480, 23 January 1981, pp, 381-383. Davis, Craig W.; Dana C. Linck, Kenneth M. Schoenberg and Harvey M. Shields. i981 Slo~inE, Humping and Mucking Through. the NPR-Ar an Archeological Interlude,~_vols. 2 and 3..'Anthropolog2 and. Historic Preservation, Cooperati.ve Park Studies Unit, University of Alaska, Fairbanks, Alaska. Occasional Paper No. 25. Hall, Edwin 1976 An Archaeological Reconnaissance of Selected Locales in NPR-4, Arctic Alaska. Report for Husky Oil NPR Operations, Inc. 1980 Cultural Resource Survey and Clearance~ National Petro- leum Reserve in Alaska,.. U.S.Geological Survey Report. Hall, Edwin and Robert Gal 1982 "A Summary of the USGS/BLM Cultural Resource Program in the National Petroleum Reserve in Alaska: 1977-81". Draft Manuscript submitted to U.S. Geological Survey for publi- cation. :...;- L.,' ' z. f~- ,~ ~: "" ' ~ ¢~ -~- ' " · ' ' ~ ~'"" ~' ~ '"~'~'~:-' ' "-'" '" ~ ( "" ' ~ ~"""'"" ', II ': ..~. . . . .. ~ r..... ~ ~ .-' % - ..~ '~. 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' '- -"" ' r i. . , ~ , -~ :, _% ~~ ~N, .. .,. )'-- '"'"2~->' '°~'""'"':-?* "~ 7 '/'~'~'P"~'~;': ,:,-._:....-~ -.=.~ - -_.:~-'_ '.'.:.~*-'""' ~. -C ,~~.,..t,..6.,,,~. ~.:,~_: . ' !.-~.:~ -., :-_.--....; .[- - : .-'. '---. : - ~ ~ : .~r" - ' ~ _ ,, ; .:_3 i' · .: .... ' _ , . % :-~-, ,--"-'~:-- ...--"'.." ~"-.~:'~.:." ~?"', _~-~-_-~ "'-~:--" ,--.:;'~ ~ ~ff ~'~ ._-._~/' '~: "- ,-' ..... .:r- ~......' ::'`~," ':" ~-~--'- ..... :':l.i:'t ::,-%," :'-. :'" '-~'~.~" '- 'i -- -?~ ~ P" ~ ' -:' "· .' ~ --."" ","."" .' ':" ,," .- _.~_......: .. . . ~ ..~ ~ . ~ .: g! ,~.-'~-.~-.7~- ...... ' '"' ':"- ~ .;'~/ p '4: ~." - .... .... i .,~_'.,~, ,., .. .---_ ~- ..... ?, ~ ~ \.. ,~%-?.% ........ N~ .... \ '"'- ". '---";:- '!~ '-. ".. ""--- ' --. ~ --~, ~,,~-"z~-t~-, .~' 2]/'/.)2 ..r.~..:.~.,~ ~ .Re j.f,.i' - ---:--' " ,",P <;- - ~_, -*'~.:'" .'" :'~,',.L/I'-;... '-- C' , :~- ~..._.:, ,,>-_.~, ~ ,., % o'--'v./,,~~:.'./ ~\ ,; ,, '~,, --7- q ,v-~-.--.-:;,.x/~.~". ,..,:.x,¥---,,~t--, ,, .... '- '-.., ~--'~-.- / .-. _~..~. '=,--: ,.. ,., :4, .~ , x~,--~-~,~ ,'~~.,,_ -,~..'..'~ ;L ~...'~- -:':- ~-~ {-~>'~1-_1t I ,,,,%'k./.~ -''~ ..... ~ .~ &-;.-',--tx ,,,.-~, ~::~-s,~~..~%'=~~--.~_. ~ -., _--- - _: , . __._,, . _ .._- ~ I · ....- , - .~ ,k, -- ~'. ....... , ' : ~ · ' ' ;.~ "T "~" ~-'-' . -,,.-" ' ""~ ,~-,-. ', "---..4- I II -, ,. v.,._~ I \--..~N ~ ~il ~"% '~ --~Y"'ff'"--' ;'~ :'{( ~ 'N.~--.~ ..-~.--,.l~-'~ ",'3,"~:~: :~..~- .... ....~;.. _,v._ '"_~j~"Z_ ~ / ;.~ -- I N%%,.~-_~_..,..~9_~-,,.~'~ I~";-,,~--'f('t ]' ,'-- '~"N '~'"" '" ' '~"~U' "~'~-~c"~ ..~- October 4, 1982 D~t~t ~ ~ M~sra/s ~mnag~mmt Service 411 W. 4th Ave~, Suite 2A ~, Alaska 99501 ~: ~ of ~'s SP0C plan and Surfa~ U~ P/an, Sik~ik #1, ~R-A Lease AA-46601 of which are critical. . .... . SPCC 1. Pa~e 20, ~_~ ~ara~- w~ que~ if u~ c~i~ ~ c~ be desi~ "so any an~cipated ~ pressure can be shut in at th~ surfao~ withou~ brea~ ~'tbe formaticn of the casing "~lief well drilled at a ~on 180 degrees - into the _ ~ Use Plan: ti~ of the ~ pi~, th~ ~confusing part ze~_ as follows: "and %~03~ 3 feet ~ and 20' at base tapering to 10' at 2. Page 6, first paz-~]raph- th~ last sentence is confusir~ a ~dn/au~ of 6' ." 3. ~ 11 para~. 1 ~ you can see, these ar~ not'Si~ic~t_ items but w~re noted during our review of ~'s SPOC Plan and Surface U~ plan, for S/ksrik Sl, NPP.--A ~ AA-46601. { - SIKSRIK #1 DRILLING PROGRAM 1. Prior to moving rig, auger 26" hole and install 80' of 20" conductor. 2. Install and function test 21 1/4" x 2000 psi diverter system. 3. Spud well and vertically drill 17 1/2" hole to 2700'. 4. Run open hole logs, as required. 5. Run and cement 13 3/8" casing to surface in one stage with permafrost cement. 6. Nipple up and test 13 5/8" x 5000 psi BOP. 7. Drill out 13 3/8" shoe. Perform leak-off test. 8. Vertically drill and core 12 1/4" hole to 7750'. 9. Run open hole logs, as required. 10. Run and cement 9 5/8" casing in three stages. The first stage will place Class G cement from the shoe up to i7000' BKB. The second stage will place Class G cement from 6900' BKB up to 3400' BKB through a DV collar placed at 6900'. This will provide zone isolation for a possible test in the Torok Sands and also bring cement 500' above possible hydrocarbon bearing zones in the upper Torok interval. The third stage will place non-freezable fluid in the 9 5/8" x 13 3/8" annulus from surface down to 2200' BKB followed by permafrost cement from 2200' to 2600' BKB through, a DV packer collar placed at ~2600' BKB. 11. Drill out 9 5/8" shoe and perform leak-off test. 12. Vertically drill and core 8 1/2" hole to TD (i8050'). 13. Run open hole logs, as required. 14. If encouraging hydrocarbon shows are found in the lower Torok siltstones, a 7" liner may be run and cemented in one stage with Class G cement such that a cased hole drill stem test may be carried out. 15. The 8 1/2" hole/7" liner will be abandoned and a second drill stem test performed in the 9 5/8" casing if encouraging shows are found in the Torok interval. 16. The well will be abandoned and the wellhead removed. DHcTO¢, sHo~ SET AT ~o ' T,P,'AT ' $oso ' SOHIO ALASKA PETROLEUM COMPANY 3111 "C" STREET ANCHORAGE, ALASKA TELEPHONE (907) 276-5111 MAIL: POUCH 6-612 ANCHORAGE, ALASKA 99502 September 8, 1982 Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501 Gentlemen: Siksrik Well No. 1 Enclosed in triplicate are the following documents for the above named well. 1. Federal form 9-331C. Application for permit to drill. 2. Proposed Drilling program outline. 3. Blowout prevention equipment and diverter system diagrams. 4. Surveyors plat showing proposed-well location. The well is to be drilled on Federally leased land and as such, we are sending these details to you for your information only. If you have any questions, please contact either R. H. Reiley at 263-5183 or D. L. Reid at 263-5560. DM:RHR:pw Attachments cc: Well File Siksrik No. 1 Very truly yours, District Drilling Engineer SE? I ]98? .~,iaska Oii & 6as Cons. ;ITED STATES DEPARTMENT OF THE INTERIOR GEOLOGICAL SURVEY SUBMIT IN TRIPLICATE* (Other Instr~"ons on reverse ) APPLICATION FOR PERMIT TO DRILL, DEEPEN, OR PLUG BACK la. TYPE OF WORK DRILL [] DEEPEN r-i PLUG BACK I-] b. Tn°E OF WELL SINGLE ~ MULTIPLE ~-~ O,LwELL [-] WELLOAS ['--] OTHER Wildcat zoNE ZONE 2. NAME OF OPERATOR Sohio Alaska Petroleum Company ~DDRESS OF OPERATOR Pouch 6-612, Anchorage, Alaska 99502 Form approved. Budget Bureau No. 42-R1425. LEASE DESIGNATION AND SERIAL AA46601 Tract 821-03 6. IF INDIAN, ALLOTTEE OR TRIBE NAME N/A 7. UNIT AGREEMENT NAME 4. LOCATION OF WELL (Report location clearly and in accordance with any At surface 900' NSL, 1020' WEL, Sec. 2, T10N, R1W At prol~osed prod. zone 900' NSL, 1020' WEL, Sec. 2, T10N, RIW UPM ('Vertical Hole) 14. DISTANCE IN MILES AND DIRECTION FROM NEAREST TOWN OR POST OFFICEs 30 Miles West of Nuiqsut 8E NAME #3-.. NO. . :SikSrik No'J 1' 10. FIELD AND POOL, OR WILDCAT . · Wildcat - ' 11. SEC., T., S., M., OR BLK. ' · AND SURVEY OR AREA ' ~ See. 2. T10N'.,.. R!W UPM COUNTY OR PARIRH[ '13. STATE . . N0r'th SlopeI"' kiaska 10. DISTANCE fROM PROPOSED* 16. NO. OF ACRES IN LEASE 17. NO. OF ACRES ASSlONED LOCATION TO NEAREST TO THIS WELL N;A/ PROPERTY OR LEAS~ LINE, ~. 6300' 22896 ~ .~ (~ W nearest drlg. unit l~e, ff any{ ' .. ,. ~8. DISTANCE FROM PR0~SED ~CATION* 19. PRO~ED DE~H 20. ROTARY OR CABLE ~OL8 .., " _. · O NEAREST WELL, DRILLING, COMPLETED, f' . ~'*~ . o~ ~ ~s, o~ ~ ~, ~. None 8050 ' Rotary . : . 21. ~vA~o~s (Show whe~er DF, RT, O~ e~.) { 22,-~PPaox. RTE = ~10' ~SL (Estimated) ~ { December li-1982 .. 23. PROPOSED CASING ~D CEMENTING PROGR~ f . S~E OF HOLE ~IZE O~ CASINO WEIOHT PER FOOT SE~ING DEPTH QUANTITY OF CEMENT 26" 20" 10M/ Grade (B) 115' KB 360 :cu'.f~ - permafrost 17 1/2" 12 1/4" 113 s/8" >9 5/8" 72# (L-80) 2.700t KB. 47]/ (L-80) 7750' KB 3200 cu.ft' Permafrost.' lst Stage: 360·cu.ft. ClasJ:",G" 2nd stage:-1370 cu.ft.' ClaJs "G" 3rd Stagei(130 cu.ft.'.Permaf~ost 8 1/2"- 7" 29# (L-80) BOP Program From Conductor to +2~00' 21 1/4" x 2000 psi diverter system From +2700' to TD 13 5/8" x 5000 psi·BOP consisting of 3 ram assemblies and one annular w/ 5000 psi choke manifold and lines. 7250'-8050'KB 120 cu.ft. ·Class "G". ..: ~7~ .:~ . ']~ '~' . :' . ~ 5~,-~ ~' .... See attached BOP procedure for details. ~ '.' ' IN ABOVE SPACE DESCRIBE PROPOSED PaOOaAM: If proposal is to deepen or plug back, give data on present productive Zone and' p~oposed neW productive zone. If proposal is to drill or deepen directionally, give pertinent data on subsurface locations and measured and true vertical depths>' Give blowout preventer program, if any. '-- . .. q .... 24. SIGNED __ (This space for Federal or State office use) PERMIT NO. APPROVAL DATE APPROVED BY TITLE DATE -, CONDITIONS OF APPROVAL, IF ANY: ~ ~ '' *See Instructions On Reverse Side SIKSRIK 91 DRILLING PROGRAM 1. Prior to moving rig, auger 26 hole and ~nstall 80 of 20 n tan 'an unct on te t 000 3. Spud well and vertically drill 17 1/2" hole 4. Run open hole logs, as required. 5. Run and cement 13 3/8" casing to surface in one stage with permafrost cement. 6. Nipple up and test 13 5/8" x 5000 psi BOP. 7. Drill out 13 3/8" shoe. Perform leak-off test. 8. Vertically drill and core 12 1/4" hole to 7750'. 9. Run open hole logs, as required. 10. Run and cement 9 5/8" casing in three stages. The first stage will place Class G cement from the shoe up to ~7000' BKB. The second stage will place Class G cement from 6900' BKB up to 3400' BKB through a DV collar placed at 6900'. This will provide zone isolation for a possible test in the Torok Sands and also bring cement 500' above possible hydrocarbon bearing zones in the upper Torok interval. The third stage will place non-freezable fluid in the 9 5/8" x 13 3/8" annulus from surface down to 2200' BKB followed by permafrost cement from 2200' to 2600' BKB through, a DV packer collar placed at f2600' BKB. 11. Drill out 9 5/8" shoe and perform leak-off test. 12. Vertically drill and core 8 1/2" hole to TD (~8050'). 13. Run open hole logs, as required. 14. If encouraging hydrocarbon shows are found in the lower Torok siltstones, a 7" liner may be run and cemented in one stage with Class G cement such that a cased hole drill stem test may be carried out. 15. The 8 1/2" hole/7" liner will be abandoned and a second drill stem test performed in the 9 5/8" casing if encouraging shows are found in the Torok interval. 16. The well will be abandoned and the wellhead removed. -~ ...... ~ ...... ~ ...... (PROPOSED) REVISED-SURFACE LOCATION ~ '~ I~ E E .o., , ,. LAT. = 70°14' 42.4~" I II ~' 12 7 LONG.: 152 °O ~' 07.73" I I X= 741,116 I Y: 5,943~062 I0 i I 16 I 1,5 I I I -I 22 CERTIFICATE OF SURVEYOR T. ION. I hereby certify that ! am properly registered and . licensed fo practice land surveying in the'State of Alaska and that. this plat represents a, location survey made by me or under my supervision, and that all dimensions and other details are correct. Date ~"URVEYOR "~ ~, Gory L. McNeil ~,,~ L.S. 5121 ~.'~:' _. ' !4 ('!~!'; ;'~',~,,:. /',,: . . PROPOSED ,.' ~E'V'/~;"E'D":SU R FA CE LOCAT ION ALTERNATE No. I - SlKSlK No.I Located in SE I/4 uMIAT MERIDIAN Surveyed for SOHIO ALASKA PET.ROLEUM CO. Surveyed by F M. LINDSEY I~ ASSOC. LAND B HYDROGRAPHIC SURVEYORS 2502 West Northern Lights Boulevard Box 4-081 i Anchorage, Alaska A. 12676 -a2 F~oWLIm~ DRILLING RISER 20" 2000 PSI WP ANNULAR PREVENTOR DIVERTER SYSTEM DETAIL DRILL. DEPT. MARCR 1980 10-3/4" CONTROL 10" DIVERTER GROUND LEVEL _ ,I 12" MAX. DRILLING SPOOL 20" CONDUCTOR PIPE , .1 NOTE: DIVERTER LINE HAS TWO DIRECTION DISCHARGE CAPABILITY AFTER LEAVING RIG SUB-BASES. B.O.P.-,~'TACK .... CONFI<3Ui~/:LI IUIN 1 3 5/8" TRIPLE RAM STACK 5000 PSI WP , DRILLING ANNULAR PREVENTER PIPE RAMS BLIND RAMS 2" KILL LINE CHECK GATE GATE DRILLING SPOOL ,I 1 HAND GATE SURFACE HOLE DIVERTER SYSTEM Two lines venting 90° apart lo 3/4" manual butterfly valves e ~ 10 3/4" 55~ Buttress 10-3/4" Hydraulic operated Butter fly valve automatically opens when Annular Preventer closes. 20" Diverter-Spool w/10 3/4" Side Outlet. All pipe connections 150~ ANSI Flanges or welded connect ions. M~nnual 10 3/4" butterfly valves, safety wired in open p~sition at diverter line tee. This document is the property of Sohio. It may not be copied downgraded/declassified or circulated further by addressee without the consent of the originator. Copy No. Title Permit to Drill SiksrikWell 91 sent to Robert Goff, Deputy Minerals Manager U. S. Onshore Field Operations, Minerals Originator Diedre J. J. Noonan SE'p 1 .'~ ~982 Alaska Oil & i~ Cons. C°mrnissiot DISTRIBUTION LIST ON REVERSE AK 1606 (2-81) ESS-SG DISTRIBUTION LIST COPY NO. . . . 1 SENT TO UNIT __. Robt. Goff, Dep: ~.~ 1'~__~. U. S. Onshore Field Operations Minerals ~nnagement Service '411 W. 4th Ave/~nchorage, AK _ .. Alaska Oil & Gas Conservation Commission ~k300i Porcupine Drive Anchorage, Alaska 99501 R. C. Herrera, Operations Mgr. Expl()ration ~Sohio Al a s ka~?eTTul~/~ -CO-mpany '-, ...... Anchorage, Alaska Well File - Drilling Department -Sohio Alaska Petroleum~ompany Anchorage, Alaska . -~- REPRODUCTION L APPROVED DATE 9-10-82i ,J ~.. -.-- ?- - .... 9-10-82 9-10-82 9-10-82 SOHIO ALASKA PETROLEUM COMPANY COURIER DELIVERED September 09, 1982 3111 "C" STREE'[ ANCHORAGE. ALASKA TELEPHONE (907) 276-5111 MAIL: POUCH 6-612 ANCHORAGE. ALASKA 99502 CC #57,165 (B12) Robert Goff, Deputy Minerals Manager Onshore Field Operations U. S. Minerals Management Service 411 W. 4th Avenue Anchorage, Alaska 99501 Subject: Siksrik Well #1 NPRA Lease AA-46601 Sec. 2, T10N, R1W, Umiat Application for Permit to Drill USACE Waterway: Fish Creek #3 (FC-3) Dear Mr. Goff: As an agent for Sohio Alaska Petroleum Company, and in accordance with the requirements of NTL-6, and other applicable regulations, I hereby submit the following materials in support of an application for permit to drill and operate on the referenced oil and gas lease: 3 copies of the Surface Use and Plan of Operations including location maps, pad layout plan and results of the Archeological Survey 3 copies of the Preliminary Spill Prevention Control and Counter measure Plan (SPCC) 1 original and 2 copies of the completed APD form 1 copy of the drilling outline (proprietary information) 1 copy of SAPC Blow-out Prevention Procedures As agreed upon in previous discussions with your office, it is expected that those items designated "proprietary information" will not be repro- duced for further distribution and that they will be handled as confi- dential in accordance with MMS standards for such materials. Concurrent with this application, I will be filing for a temporary surface use permit for operations, rolligon travel, and water source usage from the Bureau of Land Management. Additionally, permission for rolligon travel over State lands and c~ossings of anadramous streams will be requested through the Division of Land and Water Management and the Department of Fish and Game respectively. The Alaska Oil and Gas .Conservation Commission Robert Goff Page 2 September 09, 1982 has been furnished a copy of the drilling plan and completed APD. An application for placement of fill on wetlands for pad construction was filed with the U. S. Army Corps of Engineers on August 25, 1982 and the public notice is now scheduled for release on Friday, Septemeber 10. It is my understanding that after a 10 day review for completeness, Sohio is to furnish an additional 15 copies of the application package (without the proprietary information) for MMS distribution to commenting agencies. This submittal does not include results of the required Subsistance Study which is expected to be completed this month with the report release scheduled for October 15. Therefore, I am requesting a determination of "conditional" completeness based upon having the subsistance report to you by that date. In this way, the distribution and review for comments process can proceed for the major portion of the application. As related to your staff in earlier discussions, it is anticipated that initial access to the site to begin Work will be approved as early as late October with a projected spud date in mid-December so time is of the essence for this appl ic at ion. Since this will be the first private industry well in the NPR-A, it seems to be viewed with special interest at all levels of local, state and federal government. It is my hope that everyone concerned can continue to work together in the spirit of cooperation to complete this project in an exemplary fashion. I wish to thank you and your staff for their assistance, and request that I be contacted promptly if there is anything further required for processing of this application. Thank you. ~ J. Noonan · Sen..~'or L~andman/Explor ation DJJN: lp cc: Tom Dean, BLM Fairbanks, w/o Tom Barnes, NSB Barrow, w/o Shehla Anjum, NSB Anchorage, w/o Sam Taalak, Mayor Nuiqsut, w/o Joe Nukapigak, Kuukpik Corp, w/o Doug Lowery, ADEC Fairbanks, w/o Scott Grundy, ADF&G Fairbanks, w/o Jerry Stroebele, USFWS Fairbanks, w/o CHECK LIST FOR NEW WELL PERMITS ITEM APPROVE DATE ,, (1) Fee /~,i,.~ .... /0 ~ f-~ 1. Is Company ~,__)~ ,'/9 / ~ ~ Lease & Well No. the pe~it fee attached .......................................... ~. R~ ARK S (2) Loc ~- ~ :--..- ,'(2 thru 8) 2. Is well to be located in a defined pool ................. ............ (~_ 3. Is well located proper distance from property line '' '''''''''' aM~ 4. Is well located proper distance from other wells ..--[[[[[[---------- /~.'>~ 5. Is sufficient undedicated acreage available in this pool ..... [.,Z~---.~,~_. 6. Is well to be deviated and is well bore plat included ...1..1111 .... ., 7. Is operator the only affected party ....... ~ ./ 8. Can permit be approved before ten-day wait ~[1111[]111][1111[1111111] ~/~__._. i (3) Admin ~-'/'] ? ',- ~ ~/':"~; ''~ ~(9 thru 11) 9~ 10. 11. Does operator have a bond in force .................................. Is a conservation order needed .. ............................................. d d Is administrative approval nee e .................................... (4) Casg ~4~_)/ /b',l~-,~'~ (12 thru 20) 12. 13. 14. 15. 16. 17. 18. 19. 20. Is conductor string provided ............. Is enough cement used to circulatg'g~'go~dgg[gr'~gd'~u~}acg'[[[[[. Will cement tie in surface and intermediate or production strings ] Will cement cover all kno~ productive horizons .................... Will surface casing protect fresh water zones ..................... Will all casing give adequate safety in collapse, tension and burst Is this well to be kicked off from an existing wellbore ........... Is old wellbore abandonment procedure included on 10-403 .......... Is adequate well bore separation proposed ......................... (5) BO PE ///F/t/f /Z~ -~?°~>~ (21 thru 24) 21. 22. 23. 24. Is a diverter system required ....................................... ~ Are necessary diagrams of diverter and BOP equipment attached . /~orf~ Does BOPE have sufficient pressure rating - Test to ~'Zr~ ;gi~ 11 '~ Does the choke manifold comply w/API RP-53 (Feb.78), ................. (6) Add: 25. Geology: {WK ,ZVA Engineering LCS -- BEW :ev: 08/19/82 INITIAL GEO. UNIT . ON/OFF' POOL CLASS STATUS AREA NO. SHORE , , ._-- .... ,!;'Y ,':' ....... :'.., o ~-~ o ~>~