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Home My WebLink AboutCO 396XHVZE Conservation Order Cover Page This page is required for administrative pUrposes in managing the sCanning process. It marks the extent of scanning and identifies certain actions that have been taken. Please insure that it retains it's current location in this file. "~'_~ Conservation Order Category Identifier Organizing CAN Color items: [] Grayscale items: [] Poor Quality Originals: [] Other: NOTES: DIGITAL DATA [] Diskettes, No. [] Other, NO/Type OVERSIZED (Scannable with large plotter/scanner) [] Maps: [] Other items OVERSIZED (Not suitable for plotter/scanner, may work with 'log' scanner) [] Logs of various kinds [] Other BY: Scanning Preparation , ~ YES ~ NO BY: ROBIN ~'~ ,, Production Scanning Stage 1 PAGE COUNT FROM SCANNED DOCUMENT: ~ PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: BY: Stage 2 ~F ,vo ,N STA~ ~. ~'A~(S) D,~CR~,'^.C,~S W~R~ .OU.D.' '~ .O _ (SCANNING IS COMPLETE 'AT THIS POINT UNLESS SPECIAL ATTENTION IS REQUIRED ON AN INDIVIDUAL PAGE BASIS DUE TO QUALrFY, GRAYSCALE OR COLOR IMAGES) General Notes or Comments about this Document: • • Index Conservation Order 396 MP J-09 1.) June 17, 1997 BP Exploration Alaska, Inc. request for Spacing Exception 2.) July 1, 1997. Notice of Public Hearing 3.) July 3, 1997 OXY USA, Inc. letter non-objection for the Milne Point Conservation Order 396 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 Porcupine Drive Anchorage Alaska 99501-3192 Re: THE APPLICATION OF BP ) EXPLORATION (ALASKA) INC. ) for an order granting an exception to ) spacing requirements of Title 20 AAC ) 25.055 to provide for the completion of ) the BP Milne Point Unit MPJ-09 ) oil well in an undefined oil pool. ) Conservation Order No. 396 BP Exploration (Alaska), Inc. MPJ-09 July 16, 1997 IT APPEARING THAT: . BP Exploration (Alaska), Inc. submitted an application dated June 17, 1997 requesting exception to 20 AAC 25.055(a)(3) to allow the completion of the BP Milne Point Unit MPJ-09 oil well in an undefined oil pool within the Ugnu Formation closer than 500 feet to a quarter-section line. . Notice of opportunity for public hearing was published in the Anchorage Daily News on July 1, 1997 pursuant to 20 AAC 25.540. 3. No protests to the application were received. FINDINGS: o The BP MPJ-09 well is a deviated hole drilled from a surface location 2347' from the south line (FSL) and 2090' from the east line (FEL) of Section 28, T13N, R10E, Umiat Meridian (UM) with a proposed Ugnu Formation producing interval from 4298' FSL and 87' FEL of Section 29, T13N, R10E, UM to 4427' FSL and 151 FEL of Section 29, T13N, R10E, UM. 2. Offset owner, Occidental Petroleum Corporation has been duly notified. o An exception to 20 AAC 25.055(a)(3) is necessary to allow the proposed completion of this well. Conservation Orde~~ No _ o July 16, 1997 Page 2 CONCLUSION: Granting a spacing exception to allow the completion of the BP MPJ-09 well within the Ugnu Formation undefined oil pool as proposed will not result in waste nor jeopardize correlative rights. NOW, THEREFORE, IT IS ORDERED: BP Exploration (Alaska), Inc.'s application for exception to 20 AAC 25.055 for the purpose of completing the Milne Point Unit MPJ-09 well as proposed is approved. DONE at Anchorage, Alaska and dated July 16, 1997. David W. Johnston, Alaska and Gas Con,. Commission Robert N.~tenson, Commissioner Alaska Oil and Gas Conservation Commission AS 31.05.080 provides that within 20 days after receipt of written notice of the entry of an order, a person affected by it may file with the Commission an application for rehearing. A request for rehearing must be received by 4:30 PM on the 23rd day following the date of the order, or next working day if a holiday or weekend, to be timely filed. The Commission shall grant or refuse the application in whole or in part within 10 days. The Commission can refuse an application by not acting on it within the 10-day period. An affected person has 30 days from the date the Commission refuses the application or mails (or otherwise distributes) an order upon rehearing, both being the final order of the Commission, to appeal the decision to Superior Court. Where a request for rehearing is denied by nonaction of the Commission, the 30-day period for appeal to Superior Court runs from the date on which the request is deemed denied (i.e., 10th day after fl~e application for rehearing was filed). OXY OXY USA INC, 50250, Midland, TX 79710 Edward J. B.>hm, Aaset Team Leader Heavy Oil Team Western Region 0RI Pl~on¢ (9 ! 5) 6R5-$673 Fax: (915) 685-593!, r,.:Mail Ed_B~m~,.oxy, corn July 3, 1997 Alaska Oil and Gas Conservation Commission FAX No. 907 276-7542 Attention: Mr. Bob Crandall Reference: Application for Spacing Exemption for the Milne Point Unit J-09 Well RECEIVED ~..aska.Oil,& Gas Cons. Dear Mr. Cmadall: OXY USA Inc., as affected party, bas no objection for the Milne Point J-09 Well as proposed in Robert Laule's request to you. Should you have any questions, Please give me a call at 915 685-5673. Thank you, Joe Petrov for Ed Behm, Jr. Asset Team Leader Heavy Oil Team EJB/esm too~ 'l.'g6g g99 g~fi X'V2t -['£:gT llHff~ Ltl~gO~LO Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re~ The application of B.P. Exploration (Alaska) Inc. for exception to 20 AAC 25.055 to allow completion the Milne Point J-09 development oil well in an undefined oil pool. B. P. Exploration (Alaska) by letter dated June 17, 1997 has requested an exception to the provisions of 20 AAC 25.055(a)(3) to test produce an undefined oil pool in the Milne Point area. The exception would allow B. P Exploration (Alaska) to perforate the Milne Point J-09 development oil well in an interval that is closer than 500 feet from a quarter section line. The surface location is 2347' from the south line (FSL), and 2090' from the east line (FEL) of Section 28, T13N, R10E, Umiat Meridian (UM) and the proposed top of the perforation interval is 4298' FSL and 87' FEL of Section 29, T13N, R10E, UM. A person who may be harmed if the requested order is issued may file a written protest prior to 4:00 PM July 15, 1997 with the Alaska Oil and Gas Conservation Commission, 3001 Porcupine Drive, Anchorage, Alaska 99501, and request a hearing on the matter. If the protest is timely filed and raises a substantial and material issue crucial to the Commission's determination, a hearing on the matter will be held at the above address at 9:00 am on July 31, 1997 in conformance with 20 AAC 25.540. If a hearing is to be held, interested parties may confirm this by calling the Commission's office, (907) 279-1433 after July 15, 1997. If no protest is filed, the Commission will consider the issuance of the order without a hearing. If you are a person with a disability who may need a special modification in order to comment or to attend the public hearing, please contact Diana Fleck at 279-1433 no later than July 23, J.99.7.,, Robert Christenson, Commissioner Alaska Oil and Gas Conservation Commission Published July 1 1997 ADN AO-02714037 ' BP EXPLORATION 900 East Benson Boulevard Anchorage, Alaska 99519-6612 (907)561-5111 June 17, 1997 David W. Johnston, Commissioner Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, AK 99501-3192 RE: Request of Exemption to Provisions of 20AAC 25.055 and Conservation Order 173 Rule #3 for MP J-09. Dear Commissioner Johnston, BP Exploration (Alaska), Inc. hereby applies for an exemption to the provisions of 20 AAC 25.055 and Conservation Order 173 Rule #3 for MP J-09 Well. 1. Surface Location: 2347 NSL 2090 WEL Sec 28 T13N R10E UM., AK 2. Top Ugnu Target Location: 4298 NSL 87 WEL Sec 29 T13N R10E UM., AK 3. Bottom Ugnu Location: 4427 NSL 151 WEL Sec 29 T13N R10E UM., AK The owners and operator of all governmental quarter sections directly and diagonally offsetting the proposed location of the well are BP Exploration (Alaska), Inc., and Occidental Petroleum. This is a test of the UGNU no other well in the adjacent quarter sections produce from the Ugnu although the Ugnu is penetrated to access deeper formations. The plat required by the regulation is attached as Exhibit 1. The verification required by the regulation is attached as Exhibit 2. Copies of the notification to the owners and operators, as well as the required information with respect to the mailing are attached in the package designated as Exhibit 3.The Sundry Notice for the proposed scope of work is attached as Exhibit 4. Thank you for you assistance in this matter. Please direct any questions to Tom Niswander at 564-5472 or myself at 564-5195. Respectfully, Exhibit I BPE&O 64.38 BPX 26.81 OXY USA 8,81 ADL025515 BPE&O 64.38 BP~ 2~.~!~i ADL315848 BP E & O 64.38 BPX 26,81 OXY USA 8,8'~. OXY USA 8.81 BPE&O 64,38 AD L025518 BPE&O 64.38 23 L~¢P E & O BPX 26.81 OXY USA 8,81 N PAD WEST SAK 25 ~ ~PU J PAD BPX 26.81 OXY USA 8.817¢ ¢I~-~- BPX 26,81 OXY USA 8,8' BP EXPLORATION (ALASKA) INC, MILNE POINT UNIT J PAD - LEASE OWNERSHIP Leases Current To 4/30/97 DATE: SCALE: SHEET: 6/97 1" = .5 MILE 1 of 1 Ira13524,dtg NW Sec 29 T13N R10E Umiat M. X=544733.14 Y=6017629.83 5279.49 89o38'08'' SW Sec 29 5279.49 T13N R10E Umiat M. 89°38'08" X=544783.55 Y=6012350.55 Well MPJ-09 Downhole Information J. Cotton 6/4/97 Scale ~1 "-1500' + N Sec 28&29 T13N R10E Umiat M. X=550012.52 Y=6017663.41 5279.49 89o35'42" MPJ-09 Bottom Taraet ~ X=549869.~ 1 , '"'d~.ff?'~o,_~.: Y:6016809.70 a~ ~ M P J-00 ' Top Of Ugnu Target ~ X=549935.04 Y=6016681.11 - O,1° MPJ-09 Surface Loc. X=552129.93 =6014745.62 se(..-rt D hs S Sec 29&28 T13N R10E Umiat M. X=550062.93 Y=6012384.14 5279.48 89035'42" NE Sec 28 T13N R10E Umiat M. X=555291.88 Y=6017700.73 o;-- SE Sec 28 T13N R10E Umiat M. X=555342.28 Y=6012421.46 Coordinates shown are ASP Zone 4 (NAD 27) NWSec29 T13N R10E Umiat M. X=544733.14 Y=6017629.83 N Sec 28&29 T13N R10E Umiat M. - 5279 X=550012.52 5279 89o38,08'' Y=6017663.41 89o35'42" Bottom Target 5e(,,,~ L.~ ~ '~.~:;~ X=549869.81 Y=6016809.70 151 MPJ-09 87 Top Of Ugnu Target X=549935.04 Y=6016681,11. i' i ! ~ MPJ-09 o_,- Surface Loc. ~o r,,. X=552129.93 m~ Y=6014745.62 3190 Well MPJ-09 Downhole Information Detail J. Cotton 6/4/97 Scale 1 "-1500' .. POL Sec Tie Point X-552146.52 y=6012398.87 SW Sec 29 5279 S Sec 29&28 T13N R10E Umiat M. 89°38'08" T13N R10E Umiat M. X=544783.55 X=550062.93 Y=6012350.55 Y=6012384.14 5279 89035'42" Coordinates shown are ASP Zone 4 (NAD 27) EXHIBIT 2 VERIFICATION OF APPLICATION FOR SPACING EXCEPTION MILNE POINT J-09 R. Laule, Drilling Operations Engineer, BP Exploration (Alaska) Inc., does hereby verify the following' 1. I am acquainted with the application submitted for the drilling of Milne Point J-09 Well. 2. I have reviewed the application submitted for the exemption to 20 AAC 25.055, Conservation order 173 Rule #3 and all the facts therein are true. 3. I have reviewed the plat attached as exhibit 1 and it correctly portrays pertinent and required data. DATED at Anchorage, Alaska this 12th day of June, 1997. Drilling Operations Engineer STATE OF ALASKA THIRD JUDICIAL DISTRICT SUSCRIBED AND SWORN TO before me this 12th day of June, 1997. 41a$.~'.a.Oil.& Gas C'm'~s. Commis~, Y PUBLIC IN AND FOR ALASKA My commission expires: P 583 693 177 us Pos~ se~c~ "~~ Receipt for Certified Mail -! No Insurance Coverage Provided. Do not use for Intemational Mail.'See reverse,) ?.D.DoX $o~..,.~ u Post Offll:e, State,re& Z[E..~ojle Sped~l D~ivery Fee Restricted I:)e~very Fee R~um Rac~~ / /.,~:~, · Scope of work for the MP J-09 workover is to decomplete the well, suspend the Schrader Bluff perforations with an isolation plug, perforate the Ugnu and recomplete with an ESP and 2-7/8" tubing to test the production of the Ugnu. Pre Rig activity Pull the dummy valve from the lower GLM above the ESP and set BPV. MIRU 4ES Pull BPV with lubricator kll well and set TWC. ND tree. NU BOP and test. Pull TWC with lubricator. Pull tubing, ESP and heat trace. RIH with GR/JB. RIH and set bridge plug. (temporary suspension of the Shrader Bluff Perforations) RU wireline and perforate the Ugnu formation. Run ESP with 3 glm's & heattrace to new setting depth. Set TWC. ND bop. Nu and test tree. BP EXPLORATION 900 East Benson Boulevard Anchorage, Alaska 99519-6612 (907)561-5111 Bob Crandall Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, AK 99501-3192 June 17, 1997 Subject: Application requesting Spacing Exemption for MP J-09 to provisions of 20 AAC 25.055 and Conservation Order 173 Rule #3. Dea,' Mr. C~andall, .The MP J-09 well is a planned test of the Ugnu Formation in the NW/4 of Sec 29T13N, R10.E ',,ithin ADL lease 025517. BP Exp~,:~ration (Alaska), Inc. hereby applies for an exemption to the provisions of 20 AAC 25.055 .~md Conservation Order 173 Rule #3 for MP J-09 Well (the well), for which the following is proposed: 1. Surface Location: 2347 NSL 2090 WEL Sec 28 T13N R10E UM., AK 2. Top Ugnu Target Locatio~..: 4298 NSL 87 WEL Sec 29 T13N R10E UM., AK 3. Bottom Ugnu Location: 4427 NSL 151 WEL Sec 29 T13N R10E UM., AK The well MP J-09 will be comp~'¢l'¢d with an electrical submersile pump. The surface location of MPJ-09 is located in Sec 2~ .which is within ADL lease 025906. The target and bottom hole locations are located in the N'IE/4 ,~f Sec 29 which is within ADL lease 025517 as indicated in the enclosed exhibits. The proposed target and bottomhole locations are within the NE/4 of Sec 29 T13N, R10E but are in close proximity to the eastern and northern boundaries of this quarter section. The spacing requirements of 20 AAC 25.055 and Conservation Order 173 Rule #3 do not allow without exemption the drilling of a well closer than 500 feet to any quarter section line. This request for exemption is being sought to allow testing of the Ugnu formation from MPJ-09. The owners and operator of all governmental quarter sections directly and diagonally offsetting the proposed target and bottom hole location of the well are BP Exploration (Alaska), Inc., and Occidental Petroleum. The plat required by the regulation is attached as Exhibit 1. The verification required by the regulation is attached as Exhibit 2. Copies of the notification to the owners and operators, as well as the required information with respect to the mailing are attached in the package designated as Exhibit 3. The Sundry Notice for the proposed scope of work is attached as Exhibit 4. As indicated by the information enclosed in Exhibit 1, Exhibit 2, Exhibit 3, and Exhibit 4 we verify these facts to be true and that the plat portrays the pertinent and required data. We also feel that this addresses the requirements of the provisions in 20 AAC 25.055 and Conservation Order 173 Rule #3. Thank you for you assistance in this matter. Please direct any questions to Tom Niswander at 564-5472 or myself at 564-5195. R¢~p,ectfully, ~ ...~ Robert Laule cc BPX OXY Exhibit 3 BP EXPLORATION 900 East Benson Boulevard Anchorage, Alaska 99519-6612 (907)561-5111 June12,1997 Occidental Petroleum Ed Behm P.O.BOX 50250 Midland, TX79710-0250 RE: Request for Spacing Exemption for MP J-09 to provisions of 20 AAC 25.055 and Conservation Order 173 Rule #3. Dear Mr. Behm Pursuant to the provisions and requirements of 20 AAC 25.050 (b) BP Exploration (Alaska) Inc. hereby gives notice of a request to the Alaska Oil and Gas Conservation Commission for an exemption to the provisions of 20'AAC 25.055(a) 1, 20 AAC 25.055 and Conservation Order 173 Rule #3 for MP J-09 Well (the well).' Specifically, the exemption location applied for will beas followed:: . Surface Location: Top Ugnu Target Location: Bottom Ugnu Location: 2347 NSL 2090 WEL Sec 28 T13N R10E UM., AK 4298 NSL 87 WEL Sec 29 T13N R10E UM., AK 4427 NSL 151 WEL Sec29 T13N R10E UM., AK A copy of the request is attached. Very truly yours, Robert Laule enc. i STATE OF ALASKA (', ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVAL Exhibit 4 1. Type of Request: []Abandon [] Alter Casing [] Change Approved Program 2. Name of Operator BP Exploration (Alaska) Inc. [] Suspend [] Plugging [] Time Extension [] Repair Well [] Pull Tubing [] Variance [] Operation Shutdown [] Re-Enter Suspended Well [] Stimulate 3. Address P.O. Box 196612, Anchorage, Alaska 99519-6612 4. Location of well at surface 2347' NSL, 2090' EWL, SEC. 28, T13N, R10E At top of productive interval 4522' NSL, 200' WEL, SEC. 29, T13N, R10E At effective depth 2495' NSL, 1523' WEL, SEC. 20, T13N, R10E At total depth 2912' NSL, 1616' WEL, SEC. 20, T13N, R10E [] Perforate [] Other Plugback to Re-complete 5. Type of well: I~ Development i---I Exploratory [--I Stratigraphic []Service 6. Datum Elevation (DF or KB) KBE = 65.06' 7. Unit or Property Name Milne Point Unit 8. Well Number MPJ-09 - 9. Permit Number 94-101 / 397-074 10. APl Number 50-029-22495 11. Field and Pool Milne Point Unit / Kuparuk River Sands 12. Present well condition summary Total depth: measured 10860 feet true vertical 7431 feet Effective depth: measured 10083 feet true vertical 6693 feet Casing Length Size Structural Conductor 80' 13-3/8" Surface 2905' 9-5/8" Intermediate Production 10811' 7" Liner Plugs (measured) Junk (measured) Cement plug at 10083' (4/97) Packer fish at 9893' Cemented MD TVD 250 sx Arcticset (Approx.) 112' 112' 572 sx PF 'E', 250 sx 'G' 2936' 2529' 400 sx Class 'G' 10840' 7479' Perforation depth: measured true vertical 10328'-10342',10355'-10361',10442'-10462',10475'-10507' Cqueezed) 5460'-5480',5792'-5802' ~pen) 7049'-7061',7072'-7077',7144'-7161',7172'-7198' ~queezed) 3906'-3919',4122'-4128' ~pen) Tubing (size, grade, and measured depth) 2-7/8" 6.3# L-80 tubing at 5512' Packers and SSSV (type and measured depth) 7" X 3-1/2" SABL-3 Baker packer w/K-anchor at 10019' 13. Attachments [] Description summary of proposal I--'1 Detailed operations program I--I BOP sketch 14. Estimated date for commencing operation August 15, 1997 16. If proposal was verbally approved Name of approver contact Engineer Name/Number: Bob Laule, 564-5195 Date approved 15. Status of well classifications as: I~ Oil [--I Gas I'-I Suspended Service Prepared By Name/Number: Kathy Campoamor, 564-5122 17. I hereby certify that the foregoing is tr~e and cprrect to the best of my knowledge Signed Tim Schofield /I,~'~ ~'*~ C).4"~~**~ Title Senior Drilling Engineer // Commission Use Only Conditions of Approval: Notify Commission' g so representative may witness Plug integrity Mechanical Integrity Test __ Subsequent form required 10- Date I Approval No. 397-074 Approved by order of the Commission Commissioner Date Form 10-403 Rev. 06/15/88 Submit In Triplicate P 583 693 177 US Postal Service Receipt for Certified Mail No Insurance Coverage Provided. Do not use for Intemational Mail 'See reverse~ Sent to ' ; ' ' Str~t ~Number ._.. _ ~.~.DoX ~o~-~ u Post Office, State.,& Special Deliveq/Fee Restricted Delivery Fee R~'m RK.~.~~ ... . ............. ..... BP EXPLORATION May 14, 1997 Mr. David Johnston, Chairman Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501-3192 BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 9951 I VED Dear Mr. Johnston, BP Exploration (Alaska), Inc., as operator of the Milne Point Unit is planning to evaluate the producibility of the M-sands, lower Ugnu formation. We intend to employ a new production practice that has been very successful in Canada in imprOving both production rates and recovery performance from reservoirs that. haVe highly viscous oil in unconsolidated formationS. This technique eliminates downhole screens and stabilizes fOrmation sand in the near wellbore region. A Schrader Bluff test is in progress and the next logical progression is to evaluate this technique on the lower Ugnu. Currently, an evaluation of the sand production characteristics of the Schrader Bluff N-sands in well MPJ-09 is proceeding. The objective of the MPJ-09 test is to determine if sand can be managed to a Iow sand rate without screens by minimizing drawdown rates to allow sand consolidation in the formation, and to determine if sand can be transported to the surface. An electrical submersible progressive cavity pump (ESPCP) is being used to produce the fluid. These pumps are more tolerant to sand production than a centrifugal electrical submersible pump (ESP). A portable test separator will monitor well 'performance and measure sand volumes throughout the test. The results of this test will influence the direction of future Schrader Bluff completions. In order to further 'increase our understanding of the heavy oil potential within Milne POint, BP Exploration is conSidering a similar type of test in the lOwer Ugnu using the same well. The objective of this test would be to initiate sand production, and monitor oil and sand production rates with time. To perform this BP Exploration (Alaska) Inc. test, well MPJ-09 would be completed, isolating the Schrader Bluff interval with a removable bridge plug, and a section of the M-sand formation perforated and produced. Following the M-sand test, the interval would be cement squeezed, the bridge plug pulled and Schrader Bluff interval put back on production. As BP Exploration formulates it's Milne Point Unit viscous oil development there may be opportunities to develop the M-sand concurrently with the Schrader Bluff reservoir. The information acquired from this test will assist in our understanding of the opportunities. A potential possibility for the lower Ugnu formation is commingling production from the M-sands with the Schrader Bluff. Commingling production from lower Ugnu with the Schrader Bluff reservoir is potentially attractive because oil from the Schrader Bluff would act as a diluent for the higher viscous lower Ungu oil at the same time reducing the lower Ugnu development costs. Please direct any questions or concerns regarding the lower Ugnu test to me at 564-5232 or to Steve Rossberg at 564-5637. Sincerely, ---¢'L Bruce J. Policky Exploitation Manager Western North Slope CC: Mr. Jack Hartz, AOGCC Ed Behm, Oxy USA Inc