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CO 098 A
Conservation Order Cover Page XHVZE 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. 0~A Conservation Order Category Identifier Organizing RESCAN Color items: .~ Grayscale items: Poor Quality Originals: [] Other: NOTES: DIGITAL DATA OVERSIZED (Scannable with large plotter/scanner) [] Diskettes, No. Maps: [] Other, No/Type [] Other items OVERSIZED (Not suitable for plottedscanner, may work with 'log' scanner) Logs of various kinds [] Other BY: ROBIN~ Scanning Preparation BY: ROBIN ~ Production Scanning Stage I PAGE COUNT FROM SCANNED DOCUMENT: PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: /~YES NO Stage 2 IF NO IN STAGE 1, PAGE(S) DISCREPANCIES WERE FOUND: ~ YES ~ NO (SCANNING IS COMPLETE AT THIS POINT UNLESS SPECIAL ATTENTION IS REQUIRED ON AN INDIVIDUAL PAGE BASIS DUE TO QUALITY, GRAYSCALE OR COLOR IMAGES) General Notes or Comments about this Document: 5/21/03 ConservOrdCvrPg.wpd STATE OF ALASKA DEPARTMENT OF NATI~AL RESOI~CES DIVISION OF OIL AND GAS Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive AnchoraRe, Alaska 9~504 Re: THE MOTION OF THE OIL AND GAS ) CONSERVATION COMMITTEE to hear ) testimony to determine pool rules ) for the ?rudhoe Bay Kuparuk River ) Oil Pool. ) Conservation Order No. 98-A Prudhoe Bay Field Prudhoe Bay Kuparuk River Oil Pool March 12, 1971 IT APPEARING THAT: 1. The Alaska Oil and Gas Conservation Committee moved to hear testimony to determine pool rules for the Prudhoe Bay Kupar%~ River Oil Pool, now regulated by Conservation Order No. 83-A which expires March 12, 1971. 2. Notice of public hearing was published in the Anchorage Daily News on December 24, 1970. 3. A public hearing was held in the Sydney Laurence Auditorium, Anchorage, Alaska, on February 9, 1971. Testimony was presented in response to the motion. Affected and interested Parties were heard. 4. The hearing was continued until the close of business on February 16, 1971. Additional statements were received. 5. The complete record of Conservation File No. 83-A was incorporated into the record. AND IT FURTHER APPEARING THAT: 1. A sequence of mudstones interbedded'with very fine- to medi%~-grained sands is provisionally called the Kuparuk River Formation. 2. Oil is found in some of the sandstones of the Kuparuk River Formation and an oil pool has been defined. 3. The areal extent of the hydrocarbon-bearing sands of the Kuparuk River Formation cannot be determined, but available information indicates an area where oil production can reasonably be expected. 4. The sandstones may occur at widely separated depths within the ~ formation. ~. The sandstones are lenticular and a single lens may not be continuous over wide areas and may not be continuous from well to well. AGO 10031492 Conservation Order No. 98-A Page 2 March 12, 19 71 6. The sand lenses may have sufficient permeability so that one well would drain 640 acres, but each lens may not he penetrated by development on 640-acre spacing. 7. Thin productive sands which do not merit individual completion attempts should be grouped together to prevent waste and to ensure the greatest ultimate recovery of hydrocarbons. 8. In order to prevent waste and protect correlative rights there should be at least 1,000 feet between wells, and wells should be at least 500 feet from property lines where ownership changes. 9. Conventional casing and cementing procedures are unsafe if thawing occurs because thawing of the permafrost during production might cause sufficient subsidence and frictional drag to result in collapse of the casing within the upper 500 feet, and it is necessary to either prevent thawing of the adjoining permafrost or to permit movement of the surface casing. 10. Either prevention of thawing or permitting movement of the upper portion of the surface casing is safe and technologically sound; however, other methods may likewise be safe and sound, and continued surveillance by the Committee of all techniques will be necessary to insure maximum safety in future operations. 11. Installation of downhole automatic shut-in valves below the base of the permafrost and adequate blowout prevention equipment and. practices might prevent an uncontrolled flow of oil or gas. 12. To properly regulate and operate the reservoir, performance must be carefully monitored and bottomhole pressure and gas-oil ration test data must be obtained soon after production commences. 13. Some reservoirs in the Kuparuk River Formation are undersaturated and without an associated gas cap. 14. Gas is dissolved in the oil and will be produced with the °il, and the flaring or venting of gas may constitute waste. 15. Unitization of the pools within the Prudhoe Bay Field would conserve natural resources, prevent waste, and secure other benefits including that of eliminating unnecessary operations, thereby minimizing adverse effects upon the ecology. 16. Completion of a well in the smallest governmental quarter section in the defined pool area will not adversely affect correlative rights. NOW, T}{EREFORE, IT IS ORDERED THAT the rules hereinafter set forth apply to the following described area: AGO 10031493 Conservation Order No. 98-A Page 3 March 12, 1971 T 11 N, R 10 E, U.M. Sections 1~ 2, 11, 12, 13, 14, 23, 24, 25, 26,. '35~ and 36. "" T 11 N,. R 11 .E~ II.M. All ,, seci'io'ns '3, 4,L 5, 6, 7, 8, 9, 10, 17, 18, 19, 20, 29, 30, 31, and 32. -- z N, .... ?._10 E,_ Sections 1, 2, 11, 12, 13, 14, 23, 24, 25, 26, 35, and 36. Ail T 12 N, R 13 E, U.M. Sections 5, 6, 7, 8, 17, 18, lq, and 20. T 13 Ny R iD E, U.M. Sections 13, 14, 15, 16, 21, 22, 23, 24, 25, 26, 27, 28, 33, 34, 35, and 36. T 13 N, R 11 E, U.M. Sections 1'7, 18, 19, 20, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, and 36. Sections 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, and 36. Rule 1, Definition of Pool. The Prudhoe Bay Kuparuk River Oil Pool is defined as the accumulation of oil that is common to and correlates with the accumulation found in the Mobil Oil Corporation Mobil-Phillips North Kuparuk State No. 26-12-12 well between the depths of 6,765 and 7,765 feet. Rule2. _ Well Sp~.c.~i~ng. Not more than one well may be completed in this pool in a governmental quarter section or governmental lot corresponding thereto, nor shall any well be completed in this pool in a governmental quarter section or governmental lot corresponding thereto which contains less than 125 acres, nor shall any pay opened to the well bore be closer than 500 feet to a property line where ownership changes or be closer than 1,000 feet to any pay in the same pool opened to the well bore of another well. .R. ule 3, : casing and ...C.em~e_nt_ing_ Re_qui~rem~nts_. (a) Casing and cementing programs shall provide adequate protection of all fresh waters and productive formations and protection from any pressure that may be encountered. (b) Wells shall be protected from damage caused by permafrost thawing by the use of refrigeration and/or insulation or by the use of slip Joint casing. AGO 10031494 Conservation Order No. 98-A Page 4 March 12, 19 71 (c) For proper anchorage and to prevent an uncontrolled flow, a string of casing shall be set at least 500 feet below the base of the permafrost section but not below 2,700 feet unless a greater depth is approved by the Committee upon a showing that no potentially productive pay exists above the proposed casing setting depth, and sufficient cement shall be used to fill the annulus behind the pipe to the base of the permafrost section. (d) Installation of a permafrost string of slip Joint casing above the casing string required by (c) without cementing through the expected zone of subsidence may be permitted. (e) Production casing shall be landed through the completion zone and cement shall cover and extend to at least 500 feet above each hydrocarbon- bearing formation which is potentially productive. In the alternative, the casing string may be set and adeq%lately cemented at an intermediate point and a liner landed through the completion zone. If such a liner is run, the casing and liner shall overlap by at least 100 feet and the annular space behind the liner shall be filled with cement to at least 100 feet above the casing shoe, or the top of the liner shall be squeezed with sufficient cement to provide at least 100 feet of cement between the liner and casing annulus. Cement must cover all potentially productive intervals behind the liner. (f) Casing or liner, after being cemented, shall be satisfactorily tested to not less than 50 per cent of minimum internal yield, pressure or 1,500 pounds per square inch, whichever is less. Rule 4. Blowout Prevention Equipment and Practice. (a) Before drilling below the casing string required by Rule 3(c), all drilling wells shall have three remotely controlled blowout preventers, including one equipped with pipe rams, one with blind rams and one bag type. The blowout preventers and associated equipment shall have 3,000 psi working pressure rating and 6,000 psi test pressure rating, and shall be installed prior to penetrating the Kuparuk River Formation. Ail such equipment shall include a drilling spool with minimum three inch ~ide outlets (if not on the blowout preventer body), a minimum three inch ~hoke manifold, or equivalent, and a fill-up line. Ail equipment shall have a minimum working pressure capable of withstanding formation pressures reasonably expected in this area at the depth being drilled, with adequate safety factors. The drilling string shall contain full- opening valves above and immediately below the kelly during all circula- ting operations with the kelly. Two emergency valves will be conveniently located on the drilling floor with rotary subs for all connections in use, one valve to be an "inside blowout preventer" of the spring-loaded valve type and the second to be of the manually-operated ball valve type or any other type which will perform the same function. (b) Ail blowout preventer rams, kelly valves, emergency valves and choke manifolds shall be tested to the manufacturers' recommended working pressure when installed or changed and at least once each week thereafter. An 10031495 Conservation Order No. 98-A Page 5 March 12, 1971 operator may request approval of blowout prevention equipment rated at a higher working pressure than that required by (a). In this event the operator will not be required to test the blowout prevention equipment to a pressure in excess of that which would be required for the equipment specified under (a) provided the approved drilling permit includes a statement of the operator's intent to test at the lower pressure. Bag-type preventers shall be tested to the recommended working pressure when installed and to 50% recommended working pressure once each week thereafter. Test results shall be recorded on written daily records kept at the well. (c) Ail blowout prevention equipment shall be adequately protected to ensure reliable operation under the existing weather conditions. Ail blowout prevention equipment shall be checked for satisfactory operation during each trip. The usa of blowout prevention equipment shall be in accordance with good established practice and all equipment shall be in good operating condition at all times. Rule 5. Automatic Shut-In Equipment. Upon completion, each well shall be equipped with a suitable safety valve installed below the base of the permafrost which will automatically shut in the well if an uncontrolled flow occurs. Rule 6. Bottomhole Pressure Survey_.. Prior to initial sustained production from each well, a maximum buildup bottomhole pressure test shall be taken. A key well bottomhole pressure survey shall be taken between 90 and 120 days after commencement of substantial production and each 90 days thereafter. Bottomhole pressures obtained by a static buildup pressure survey, a 24-hour shut-in instan- taneous test or a multiple flow rate test will be acceptable. The datum of the test and other details will be determined by the operators subject to approval by the Committee. The test results shall be reported on reservoir pressure report Form P-12 which shall be filed with the Committee by the fifteenth day of the month following the month in which each test was taken. Rule. 7. Gas-Oil Rati Tests. Between 90 and 120 days after substantial production starts and each six months thereafter, a gas-oil ratio test shall be taken on each producing well. The test shall be of at least 12 hours duration and shall be made at the producing rate at which the operator ordinarily produces the well. The test results shall be reported on gas-oil ratio test Form P-9 within fifteen days after completion of the survey. The Committee shall be notified at least five days prior to each test. Rule 8. Gas Venting or Flaring_~_ The venting or flaring of gas is prohibited except as may be authorized by the Committee in cases of emergency or operational necessity. AGO 10031496 Conservation Order No. 98-A Page 6 March 12, 1971 DONE at Anchorage, Alaska, and dated March 12, 1971. Thomas R. Marshall, Jr., Executive Secretary Alaska Oil and Gas Conservation Committee Concurrence: H~mer L. Burrell, Chairman Alaska Oil and Gas Conservation Committee O~-"k, Gilbr~th, .Ir,;. Member Alaska Oil and Gas Conservation Committee AGO 1OOB1497 • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7 Avenue, Suite 100 Anchorage, Alaska 99501 Re: AN ORDER rescinding those rules within ) Docket Number: CO -10 -21 existing Conservation Orders relating to ) Other Order No. 66 well safety valve systems. ) ) Statewide, Alaska ) January 11, 2011 IT APPEARING THAT: 1. On October 13, 2010 the Alaska Oil and Gas Conservation Commission (AOGCC or Commission) formally adopted new regulations relating to well safety valve systems, at 20 AAC 25.265. 2. The newly adopted well safety valve system regulations underwent final review by the Regulations Section of the Alaska Attorney General's Office and were forwarded to the Alaska Lieutenant Governor's Office on October 28, 2010. 3. The new regulations were signed by the Lieutenant Governor and took legal effect on December 3, 2010. 4. To ensure consistency with the new regulations, the AOGCC, on its own motion, proposed to rescind part or all of the outdated rules within existing Commission Orders relating to well safety valve systems. 5. On November 4, 2010, pursuant to 20 AAC 25.540, the Commission published in the Alaska Daily News notice of opportunity for public hearing on December 6, 2010. 6. The Commission received written comments in response to its public notice, and held a public hearing on December 7, 2010. 7. Oral testimony and written comments were provided at the December 7, 2010 hearing. FINDINGS: 1. Well safety valve systems are regulated under newly- adopted 20 AAC 25.265, which consolidates the requirements previously established in legacy documents, policies, and statewide guidelines relating to safety valve systems. 2. Thirty -four existing Commission Orders contain rules governing well safety valve systems. Twenty of those Orders contain broad regulatory requirements for safety valve systems that are now covered by the newly- adopted regulations. The remaining fourteen Orders include field- or pool- specific safety valve system requirements. . Other Order 66 • • Page 2 Statewide, AK January 11, 2011 3. Within existing Commission Orders are rules unrelated to well safety valve systems; these rules will continue in effect, unmodified. 4. Existing Commission Orders containing individual rules relating to well safety valve systems are enumerated in the attached Table. CONCLUSIONS: 1. Eliminating redundant requirements and standardizing wording for those field - and pool - specific safety valve system requirements deemed appropriate to retain will improve regulatory clarity. 2. Twenty existing Commission Orders that include rules relating to well safety valve systems are rendered unnecessary, and can be replaced by newly- adopted 20 AAC 25.265. As more fully set forth in the attached Table, those Orders are Conservation Orders 98A, 207A, 300, 311B, 317B, 329A, 341E, 345, 402B, 432D, 452, 457B, 471, 477, 484A, 505B, 553, 559, 570, and a Commission unnumbered Order signed March 30, 1994 (policy dictating SVS performance testing requirements). 3. Fourteen existing Commission Orders include field- or pool - specific safety valve system requirements that the Commission considers appropriate for retention. Wording for the same safety valve system requirements existing in different Commission Orders has been standardized. As more fully set forth in the attached Table, those Orders are Conservation Orders 406B, 423, 430A, 435A, 443B, 449, 456A, 458A, 562, 563, 569, 596, 597, and 605. NOW, THEREFORE, IT IS ORDERED THAT individual rules in thirty-four existing Commission Orders that relate to well safety valve systems are hereby rescinded or revised as enumerated in the Table. Remaining rules unrelated to safety valve systems within affected Commission Orders remain in effect, unmodified. DONE at Anchorage, Alaska, and dated ..- ary 11, 2011 i 110011 Daniel T. Se. .' o , r., Commissioner, Chair j f it . s Conservation Commission .. ►t _�' ��iman Co '* o ft. Al �, • a Oil - A • Ar . a Conserva ion Commission 4' if 4 r�`: `� Cat y P.:oerst-r, Commissioner if Alaska • it and Gas Conservation Commission Other Order 66 • • Page 3 Statewide, AK January 11, 2011 RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The Commission shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10 -days is a denial of reconsideration. If the Commission denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the Commission grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the Commission, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision on reconsideration. As provided in AS 31.05.080(b), "[t)he questions reviewed on appeal are limited to the questions presented to the Commission by the application for reconsideration." In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. • Fisher, Samantha J (DOA) From: Fisher, Samantha J (DOA) Sent: Tuesday, January 11, 2011 4:08 PM To: Ballantine, Tab A (LAW); '(foms2 @mtaonline.net)'; '( michael .j.nelson @conocophillips.com)'; '(Von.L .Hutchins @conocophillips.com)'; 'AKDCWelllntegrityCoordinator; 'Alan Dennis'; 'alaska @petrocalc.com'; 'Anna Raff; 'Barbara F Fullmer; 'bbritch'; 'Becky Bohrer; 'Bill Penrose; 'Bill Walker; 'Bowen Roberts'; 'Brad McKim'; 'Brady, Jerry L'; 'Brandon Gagnon'; 'Brandow, Cande (ASRC Energy Services)'; 'Brian Havelock'; 'Bruce Webb'; 'carol smyth'; 'caunderwood'; 'Chris Gay'; 'Cliff Posey'; 'Crandall, Krissell'; 'D Lawrence'; 'dapa'; 'Daryl J. Kleppin'; 'Dave Matthews'; 'David Boelens'; 'David House'; 'David Steingreaber; 'ddonkel @cfl.rr.com'; 'Deborah J. Jones'; Delbridge, Rena E (LAA); 'Dennis Steffy'; 'Elowe, Kristin'; 'Erika Denman'; 'eyancy'; 'Francis S. Sommer; 'Fred Steece'; 'Gary Laughlin'; 'Gary Rogers'; 'Gary Schultz'; 'ghammons'; 'Gordon Pospisil'; 'Gorney, David L.'; 'Greg Duggin'; 'Gregg Nady'; 'gspfoff; 'Harry Engel'; 'Jdarlington (jarlington @gmail.com)'; 'Jeanne McPherren'; 'Jeff Jones'; 'Jerry McCutcheon'; 'Jill Womack'; 'Jim White'; 'Jim Winegarner; 'Joe Nicks'; 'John Garing'; 'John Katz'; 'John S. Haworth'; 'John Spain'; 'John Tower; 'Jon Goltz'; 'Judy Stanek'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; 'Kelly Sperback'; 'Kim Cunningham'; 'Larry Ostrovsky'; 'Laura Silliphant; 'Marilyn Crockett; 'Mark Dalton'; 'Mark Hanley (mark.hanley @anadarko.com)'; 'Mark Kovac'; 'Mark P. Worcester; 'Marguerite kremer'; 'Michael Dammeyer; 'Michael Jacobs'; 'Mike Bill'; 'Mike Mason'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mkm7200'; 'nelson'; 'Nick W. Glover; 'NSK Problem Well Supv'; 'Patty Alfaro'; 'Paul Decker (paul.decker @alaska.gov)'; 'Paul Figel'; 'PORHOLA, STAN T'; 'Randall Kanady'; 'Randy L. Skillern'; ' rob.g.dragnich @exxonmobil.com'; 'Robert Brelsford'; 'Robert Campbell'; 'Ryan Tunseth'; 'Scott Cranswick'; 'Scott Griffith'; Scott, David (LAA); 'Shannon Donnelly'; 'Sharmaine Copeland'; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); 'Sondra Stewman'; 'Steve Lambert'; 'Steve Moothart; 'Steven R. Rossberg'; 'Suzanne Gibson'; 'tablerk'; 'Tamera Sheffield'; Taylor, Cammy 0 (DNR); 'Temple Davidson'; 'Teresa Imm'; 'Terrie Hubble'; 'Thor Cutler; 'Tina Grovier'; 'Todd Durkee'; 'Tony Hopfinger'; 'trmjrl'; 'Valenzuela, Mariam '; 'Vicki Irwin'; 'Walter Featherly'; 'Will Chinn'; Williamson, Mary J (DNR); 'Yereth Rosen'; 'Aaron Gluzman'; Bettis, Patricia K (DNR); caunderwood @marathonoil.com; 'Dale Hoffman'; 'David Lenig'; 'Gary Orr; 'Jason Bergerson'; 'Joe Longo'; 'Lara Coates'; 'Marc Kuck'; 'Mary Aschoff; 'Matt Gill'; 'Maurizio Grandi'; Ostrovsky, Larry Z (DNR); 'Richard Garrard'; 'Sandra Lemke'; 'Talib Syed'; 'Tiffany Stebbins'; 'Wayne Wooster'; 'William Van Dyke'; Woolf, Wendy C (DNR); Aubert, Winton G (DOA) (winton.aubert@alaska.gov); Brooks, Phoebe L (DOA) (phoebe.brooks @alaska.gov); Colombie, Jody J (DOA) (jody.colombie @alaska.gov); Crisp, John H (DOA) (john.crisp @alaska.gov); Davies, Stephen F (DOA) (steve.davies @alaska.gov); Foerster, Catherine P (DOA) (cathy.foerster @ alaska.gov); Grimaldi, Louis R (DOA) (lou.grimaldi @alaska.gov); Johnson, Elaine M (DOA) (elaine.johnson @ alaska.gov); Jones, Jeffery B (DOA) (jeff.jones @alaska.gov); Laasch, Linda K (DOA) (linda.laasch @alaska.gov); Maunder, Thomas E (DOA) (tom.maunder @alaska.gov); McIver, Bren (DOA) (bren.mciver @alaska.gov); McMains, Stephen E (DOA) (steve.mcmains @alaska.gov); Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA) (bob.noble @alaska.gov); Norman, John K (DOA) (john.norman @alaska.gov); Okland, Howard D (DOA) (howard.okland @alaska.gov); Paladijczuk, Tracie L (DOA) ( tracie.paladijczuk @alaska.gov); Pasqual, Maria (DOA) (maria.pasqual @alaska.gov); Regg, James B (DOA) (jim.regg @alaska.gov); Roby, David S (DOA) (dave.roby @alaska.gov); Saltmarsh, Arthur C (DOA) (art.saltmarsh @alaska.gov); Scheve, Charles M (DOA) (chuck.scheve @alaska.gov); Schwartz, Guy L (DOA) (guy.schwartz @alaska.gov); Seamount, Dan T (DOA) (dan.seamount @alaska.gov); Shartzer, Christine R (DOA) Subject: Other 66 Safety Valve Systems Attachments: other66. pdf A Oa/ cx haw Co lm -o - vat,01v Co-vvu aw (907)793 -1223 (907)276 -7542 (faw) 1 • • Mary Jones David McCaleb XTO Energy, Inc. IHS Energy Group George Vaught, Jr. Cartography GEPS P.O. Box 13557 810 Houston Street, Ste 200 5333 Westheimer, Suite 100 Denver, CO 80201 -3557 Ft. Worth, TX 76102 -6298 Houston, TX 77056 Jerry Hodgden Richard Neahring Mark Wedman Hodgden Oil Company NRG Associates Halliburton President 408 18 Street 6900 Arctic Blvd. Golden, CO 80401 -2433 P.O. Box 1655 Anchorage, AK 99502 Colorado Springs, CO 80901 Bernie Karl CIRI K &K Recycling Inc. Land Department Baker Oil Tools P.O. Box 58055 P.O. Box 93330 795 E. 94 Ct. Anchorage, AK 99515 -4295 Fairbanks, AK 99711 Anchorage, AK 99503 Jill Schneider North Slope Borough Gordon Severson US Geological Survey P.O. Box 69 3201 Westmar Circle Barrow, AK 99723 4200 University Drive Anchorage, AK 99508 -4336 Anchorage, AK 99508 Jack Hakkila Darwin Waldsmith James Gibbs P.O. Box 190083 P.O. Box 39309 P.O. Box 1597 Anchorage, AK 99519 Ninilchick, AK 99639 Soldotna, AK 99669 Kenai National Wildlife Refuge Penny Vadla Cliff Burglin Refuge Manager 399 West Riverview Avenue 319 Charles Street P.O. Box 2139 Soldotna, AK 99669 -7714 Fairbanks, AK 99701 Soldotna, AK 99669 -2139 Richard Wagner P.O. Box 60868 Fairbanks, AK 99706 \� ` \\ \``v Orders Establishing Requirements for Well Safety Valve Systems 1/7/2011 Conservation New Regulation Provisions Revised Rule - "Well safety valves stems" (2) Comment Unit/Field Pool Order (1) Rule Rescind Rule? Existing Order Requirement Addressing Regts from Order y y ( ) fail -safe auto SSV and SCSSV; injection wells (except disposal) require "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve 25.265(a); 25.265(b); 25.265(d)(2)(H); Check valve requirements for injectors are not covered by Colville River Unit Qannik 605 5 no (i) double check valve, or (ii) single check valve and SSV; injection 25.265(h)(5) arrangement or (ii) a single check valve and a SSV. A subsurface controlled injection valve or readopted regulation valve satisfies single check valve requirement; test every 6 months SCSSV satisfies the requirements of a single check valve." fail -safe auto SSV and SCSSV; injection wells (except disposal) re 25.265(x); 25.2659(b); 25.265(4)(1); Check valve requirements for injectors are not covered by 25.265(h)(5) "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve OOOguruk Oooguruk - Nuiqsut 597 6 no (i) double check valve, or (ii) single check valve and SSV; injection . arrangement or (ii) a single check valve and a SSV. A subsurface-controlled injection valve or readopted regulation valve satisfies single check valve requirement; test every 6 months ( )( 5 ) SCSSV satisfies the requirements of a single check valve." fail -safe auto SSV and SCSSV; injection wells (except disposal) re 25.265(x); 25.265(b); 25.265(4)(1); Check valve requirements for injectors are not covered by 25.265(h)(5) "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve Oo0guruk Oo0guruk - Kuparuk 596 6 no (i) double check valve, or (ii) single check valve and SSV; injection . arrangement or (ii) a single check valve and a SSV. A subsurface-controlled injection valve or readopted regulation valve satisfies single check valve requirement; test every 6 months ( )( 5 ) SCSSV satisfies the requirements of a single check valve." fail -safe auto SSV and SCSSV; maintain list of wells w/ removed or 25.265(a); 25.265(b); 25.265(d)(2)(F); Requirement to maintain a wellhead sign and list of wells with N/A deactivated SVS was replaced with requirement to maintain a Prudhoe Bay Unit Raven 570 5 yes deactivated SVS; sign on wellhead 25.265(m) tag on well when not manned fail -safe auto SSV and SCSSV; injection wells (except disposal) require 25.26a r "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve 25.265(a); 25.265(b); 25.265(d)(2)(H); arrangement or (ii) a single check valve and a SSV. A injection valve or 25.265(h)(5) Check valve requirements for injectors are not covered by arran Colville River Unit Fiord 569 5 no (i) double check valve, or (ii) single check valve and SSV; injection . () 9 readopted regulation valve satisfies single check valve requirement; test every 6 months ( )( 5 9 ) SCSSV satisfies the requirements of a single check valve." fail -safe auto SSV and SCSSV; injection wells (except disposal) require "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve C heck valve re for in ectors are not covered b 25.265(a); 25.265(b); 25.265(d)(2)(H); requirements i y Colville River Unit Nanuq - Kuparuk 563 6 no (i) double check valve, or (ii) single check valve and SSV; injection . h arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or 25265 readopted regulation valve satisfies single check valve requirement; test every 6 months ( )( 5 ) SCSSV satisfies the requirements of a single check valve." fail -safe auto SSV and SCSSV; injection wells (except disposal) require "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve 25.265(a); 25.265(b); 25.265(d)(2)(H); Check valve requirements for injectors are not covered by Colville River Unit Nanuq 562 6 no (i) double check valve, or (ii) single check valve and SSV; injection . h arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or 25265 readopted regulation valve satisfies single check valve requirement; test every 6 months ( )( 5 ) SCSSV satisfies the requirements of a single check valve." fail -safe auto SSV; SSSV landing nipple below permafrost; test as 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; Prudhoe Bay Unit Put River 559 3 yes prescribed by Commission 25.265(h)(5) replaces SSSV nipple requirement for all wells Deep Creek Unit Happy Valley 553 3 yes ssv or SssV 25.265(a) N/A fail -safe auto SSV; SSSV landing nipple below permafrost; test as 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; Prudhoe Bay Unit Orion 505B 3 yes prescribed by Commission 25.265(h)(5) replaces SSSV nipple requirement for all wells Prudhoe Bay Unit Polaris 484A 3 yes fail -safe auto SSV; SSSV landing nipple below permafrost; test as 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; prescribed by Commission 25.265(h)(5) replaces SSSV nipple requirement for all wells Milne Point fail -safe auto SSV; SSSV landing nipple below permafrost; gas/MI 25.265(a); 25.265(b); 25.265(d); Milne Point Unit yes injection require injection f N/A replaces SSSV ntppledrequieemenit fowells ll wells SSSV; Schrader Bluff 477 5 es in ection well re uire SSSV or in ection valve below permafrost; test 25.265(h)(5) every 6 months fail -safe auto SSV; SSSV landing nipple below permafrost; gas /MI 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; Prudhoe Bay Unit Borealis 471 3 yes injection well require SSSV below permafrost; test every 6 months 25.265(h)(5) replaces SSSV nipple requirement for all wells fail -safe auto SSV and SCSSV; test as prescribed by Commission; 500- Existing pool rule established a minimum setting depth for the Northstar Northstar 458A 4 no ft minimum setting depth for SSSV 25.265(a); 25.265(b); 25.265(d)(1) "The minimum setting depth for a tubing conveyed subsurface safety valve is 500 feet." SSSV fail -safe auto SSV; SSSV landing nipple below permafrost; test every 6 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; Prudhoe Bay Unit Aurora 457B 3 yes months 25.265(h)(5) replaces SSSV nipple requirement for all wells fail -safe auto SSV; gas /MI injectors require SSV and single check 25.265(x); 25.265(b); 25.265(d); "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve Check valve requirements for injectors are not covered by Kuparuk River Unit Meltwater 456A 5 no valve and SSSV landing nipple; water injection wells require (1) double arrangement or (ii) a single check valve and a SSV. A subsurface-controlled injection valve or readopted regulation; readopted 25.265(4)(5) does not include check valve, or (ii) single check valve and SSV; test every 6 months 25 SCSSV satisfies the requirements of a single check valve" SSSV requirement for MI injectors Prudhoe Bay 9 Unit Midnight Sun 452 6 yes fail -safe auto SSV (all injectors and producers capable of unassisted 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; flow to surface); test every 6 months 25.265(h)(5) replaces SSSV nipple requirement for all wells fail -safe auto SSV and SCSSV; SSSV may be installed above or below 25.265(x); 25.265(b); 25.265(d)(1); "The setting depth of a required subsurface safety valve must be located in the tubing either Existing pool rule established alternate SSSV setting depth; Duck Island Unit Eider 449 7 no permafrost; injection wells require double check valve; LPS trip 25.265 h 5 above or below permafrost. Injection wells must be equipped with a double check valve check valve requirements for injectors are not covered by pressure; test every 6 months ( )( ) arrangement." readopted regulation fail -safe auto SSV and SCSSV (producers and gas injectors); water "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve Check valve requirements for injectors are not covered by Colville River Unit Alpine 443B 5 no injection wells require (i) double check valve, or (ii) single check valve 25.265(a); 25.265(b); 25.265(d)(2)(H) arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or readopted regulation and SSV SCSSV satisfies the requirements of a single check valve." fail -safe auto SSV; gas /MI injectors require SSV and single check 25.265(a); 25.265(b); 25.265(d); "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve Check valve requirements for injectors are not covered by Kuparuk River Unit Tabasco 435A 6 no valve and SSSV landing nipple; water injection wells require CO double arrangement or (ii) a single check valve and a SSV. A subsurface-controlled injection valve or readopted regulation; readopted 25.265(4)(5) does not include check valve, or (ii) single check valve and SSV; test every 6 months 25 SCSSV satisfies the requirements of a single check valve." SSSV requirement for MI injectors fail -safe auto SSV (S /D well and artificial lift); sign on well if SVS Requirement to maintain a wellhead sign and list of wells with Kuparuk River Unit; deactivated; maintain list of wells w /deactivated SVS; test as 25.265(a); 25.265(b); 25.265(h)(5); deactivated SVS was replaced with requirement to maintain a Kuparuk 432D 5 yes prescribed by Commission; CO 432D.009 modifies Rule 5(b) - LPP N/A tag on well when not manned; administrative approval CO p Milne Point Unit may be defeated on W. Sak injectors w /surface pressure <500psi wl 25.265(m) 432D.009 remains effective [re:defeating the LPS when surface notice when defeated and placed back in service injection pressure for West Sak water injector is <500psi] I Page 1 of 2 Orders Establishing Requirements for Well Safety Valve Systems 1/7/2011 Unit/Field pool Conservation Rule Rescind Rule? Existing Order Requirement New Regulation Provisions Order (1) g q Addressing Reqts from Order Revised Rule - "Well safety valve systems" (2) Comment fail -safe auto SSV; gas /MI injectors require SSV and single check 25.265(a); 25.265(b); 25.265(d); "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve Check valve requirements for injectors are not covered by Kuparuk River Unit Tam 430A 6 no valve and SSSV landing nipple; water injection wells require (i) double arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or readopted regulation; readopted 25.265(d)(5) does not include check valve, or (ii) single check valve and SSV; test every 6 months 25.265(h)(5 SCSSV satisfies the requirements of a single check valve." SSSV requirement for MI injectors Milne Point - Sag fail -safe auto SSV; injection wells require double check valve; test Milne Point Unit River 423 7 n o every 6 months 25.265(a); 25.265(b); 25.265(h)(5) "Injection wells must be equipped with a double check valve arrangement." Check valve requirements for injectors are not covered by readopted regulation fail -safe auto SSV; gas /MI injectors require SSV and single check nipple; water injection wells require (i) double 1 (excluding disposal injectors) equipped with(i) Check valve requirements for injectors are not covered by valve and SSSV landing pP injection q (i) "Injection wells excludi dis osal injectors must be a ui ed wit i a double check valve readopted regulation; readopted 25.265(d)(5) does not include Kuparuk River Unit Kuparuk - West Sak 406B 6 no check valve, or (ii) single check valve and SSV; test every 6 months; 25.265(a); 25.265(b); 25.265(d); arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or SSSV requirement 406B.001 modifies Rule 6(e) - LPP may be defeated on W. Sak 25.265(h)(5) SCSSV satisfies the requirements of a single check valve. The Low Pressure Pilot may be l r e ma ent for MI injectors; administrative approval CO injectors w /surface pressure <500psi w/ notice when defeated and defeated on West Sak water injectors with surface injection pressure less than 500psi." 4068.001 remains effective [re:defeating the LPS when surface placed back in service injection pressure for West Sak water injector is <500psi] fail -safe auto SSV and SCSSV; LPS trip pressure; readily accessible Badami Badami 402B 6 yes control unit; SSSV below permafrost; NTE 210days between tests 25.265(a); 25.265(b); 25.265(h); N/A submit test results electronically within 14days; SVS defeated /removed 25.265(m) only if well SI or pad continuously manned fail -safe auto SSV (S /D well and artificial lift); sign on well if SVS 25.265(a); 25.265(b); 25.265(h)(5); Requirement to maintain a wellhead sign and list of wells with Prudhoe Bay Unit North Prudhoe 345 4 yes deactivated; maintain list of wells w /deactivated SVS; test as N/A deactivated SVS was replaced with requirement to maintain a prescribed by Commission 25.265(m) tag on well when not manned fail -safe auto SSV (S /D well and artificial lift); if SSSV installed it must Prudhoe Bay Unit Prudhoe 341E 5 yes be maintained and tested as part of SVS; sign on well if SV 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; deactivated; maintain list of wells w /deactivated SVS; test as 25.265(h)(5) replaces SSSV nipple requirement for all wells prescribed by Commission Prudhoe Bay Unit Niakuk 329A 5 yes fail -safe auto SSV and SCSSV; maintain list of wells w/ removed o 25.265(a); 25.265(b); 25.265(d); NIA Readopted 25.265(d) dictates which wells require SSSV; deactivated SVS; sign on wellhead 25.265(h)(5); 25.265(m) replaces SSSV nipple requirement for all wells Prudhoe Bay Unit Pt. McIntyre 3176 8 yes fail -safe auto SSV and SCSSV; SSSV may be rermoved as part of 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; routine well ops w/o notice 25.265(j); 25.265(m) replaces SSSV nipple requirement for all wells fail -safe auto SSV; sign on well if SVS deactivated; maintain list of wells 25.265(a); 25.265(b); 25.265(d); Prudhoe Bay Unit West Beach 311B 6 yes w /deactivated SVS; test as prescribed by Commission N/A Readopted 25.265(d) dictates which wells require SSSV; P y 25.265(h)(5); 25.265(m) replaces SSSV nipple requirement for all wells West Fork &B) Fork (Sterling 300 5 yes fail -safe auto SVS on each production tubing 25.265(a); 25.265(b) N/A Prudhoe Bay Unit Lisburne 207A 7 yes fail -safe auto SSV; sign on well if SVS deactivated; maintain list of well 25.265(a); 25.265(b); 25.265(h)(5); Requirement to maintain a wellhead sign and list of wells with y NIA deactivated SVS was replaced with requirement to maintain a w/deactivated SVS; test as prescribed by Commission 25.265(m) tag on well when not manned Prudhoe Bay Unit Prudhoe - Kuparuk 98A 5 e5 suitable automatic safety valve installed below base of permafrost t Readopted 25.265(d) dictates which wells require SSSV; yes uncontrolled flow 25.265(d) N/A replaces SSSV nipple requirement for all wells Statewide N/A N/A N/A yes Commission policy dictating SVS performance testing AOGCC Policy - SVS Failures; issued by order of the y requirements 25.265(h); 25.265(n); 25.265(0) N/A Commission 3/30/1994 (signed by Commission Chairman Dave Johnson) Footnotes (1) No SVS rules found in Injection Orders (2) New title for Revised Rule; "N /A" means entire pool rule to be rescinded Page 2 of 2 • • Public Hearing Record And Backup Information available in Other 66 ~xnchorage Daily News Affidavit of Publication I001 Northway Drive, Anchorage. AK 99508 5/6/2003 AD # DATE PO ACCOUNT 793048 05/06/2003 02314046 STOF0330 PRICE OTHER OTHER PERDAY CHARGES CHARGESg2 $39.48 $39.48 $0.00 $0.00 OTHER OTHER OTHER GRAND CHARGES#3 CHARGES#4 CHARGES#5 TOTAL $0.00 $0.00 $0.00 $39.48 STATE OF ALASKA THIRD JUDICIAL DISTRICT Kimberly A. Kirby, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all saidtime was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount, of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Signed Subscribed and sworn to me before this date: Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska Noti'ce of Cancellation of Public` H~arin'g ' STATE 'OFAI. ASKA' : , Al'aSka. C~i'l.and Ga's .'. Conservation comrnlssiol~ . 'Re,!::LJ~it~"0"P'o § ed.i"~m~"~'4'd'- ment of Cooservdtion 'der :No. 457. (Aur0ra Oil Po01, P ~udhOe, B'Oy,. Field)", ;and Prbposed ,'RevoCa-' ' tion of,ConServafiol~ Or-, der No.,;98-A~,,( pr,Od,hoe Bay Ku'Paruk Riv,~r Oil , Poo ,,: Ptud.hde Bay Field), . , The .'Public hearing on this ,proposal that Was.,,Previ- ously scheduled,,f~r May ,8~ 2003, at' 9:00 a.mi; has' been CANCELED. · , R6nd~ Ruedrich ', , 'Commissioner 'publish: May ~,'2003 . , RECEIVED MAY 2 7 2003 Alaska Oil & Gas Cons. Commission Anchorage Legal NoUce Notice *of_ Public Hearing STATE OF ALASKA NasKa Oil and Gas Conservation Commission. Re: Proposed Amendment of Conservation Order No. 457(Aurora Oil Pool, Prudhoe Bay Field)and PrOposed Revocation of Conservation Order No. 98-A (Prudhoe Bay Kuparuk River Oil Pool,.Prudhoe Bay Field)The Alaska Oil and Gas Conservation Commission on its own motion proposesto amend.Conservation. Order No. 457 and.to revoke Conservation Order No. 98-A. Among the changes to Conservation Order No.. 457 that.the Commission. may consider are: ~1.. Adding a def; inition ofthe Aurora Oil Pool, which is currently contained in Conservation Order~ No. 98-A; 2. Revising Rule 4 to .recognize the.applicability of.~the PBU Western-Satellite ProdUction Metering.Plan,' for allo- cation.of production, well test frequency,.and reporting.requirements, as adopted:within Conservation Order 471;.3, Revising Rule 5 to require.wells S-100, S~102~"S-105, S-.106, and S, 108 to' be ~tem, porarily shut', in :for reservoir pressure measurements, to require .those wells to remain shut in.. if the pressure.is ,below:. 2700 psi,. and to ,require the. submission .for C~mmission. approval of a ':~51an ifor water injection;, repressurization; and.enriched gas injection;':;4. 'ReVising Rule ?..to: provide ,for approval Of a ,waterflood program 'and tO.:require the reservoir, pressure "to' be maintained .above:2?0Opsi; 5'.~. Revising Rule 8 to require ~Submission .f°r .Commission.:.approval 0f'a~reservoir.depletion plan ~that ~Pi0-. rides 'for .reservoir: repmSSurizat!On .to:'a,*level:that: will .alloW for future misCible'gas?injecti0n.and: will'.. eh§ute greater Ultimate!recovery under waterflood. A"PubliC..'.hearing on:this proposal Will '. be . h, eld bef0~e .th~* 'CommiSsion *at 9:00 a.'m. on'~Uay 8', 2003, 'at;.the 'c6rhmission.'s..°fficesi 333"-W.':Tth Avenue; Suite-100~.Anchorage, :Alaska'*99501 ~.: If:you-ar.e~: a'~i~erson With a diSability' WhO may ~ed a GeLUII(~.D.U.U,'~' 911~nDiNl~ul-elqeUe · { Notice of Cancellation of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Proposed Amendment of Conservation Order No. 457 (Aurora Oil Pool, Prudhoe Bay Field) and Proposed Revocation of Conservation Order No. 98-A (Prudhoe Bay Kuparuk River Oil Pool, Prudhoe Bay Field) The public hearing on this proposal that was previously scheduled for May 8, 2003, at 9:00 a.m., has been CANCELED. Randy Ruedrich Commissioner Published Date: May 6, 2003 AO # 02314046 Re: Ad Order ., Subject: Re: Ad Order Date: 05 May 2003 09:53:43 -0800 From: Legal Ads Anchorage Daily News <legalads~adn.com> To: Jody Colombie <jody_colombie~admin.state.ak.us> Hi Jody: Following is the confirmation information on your legal notice. Please let me know if you have any questions or need anything further. Account Number: STOF 0330 Legal Ad Number: 793048 Publication Date(s): May 6, 2003 Your Reference 8: 02314046 Total: $39.48 Thank You, Kim Kirby Anchorage Daily News Legal Classified Representative E-Mail: legalads@adn.com Phone: (907) 257-4296 Fax: (907) 279-8170 On Friday, May 2, 2003, Jody Colombie <jody_colombie@admin.state.ak.us> wrote: >Please publish the attached on Tuesday may 6th. > >Jody 1 of 1 5/5/2003 11:29 AM STATE OF ALASKA .... NOTICE TO PUBLISHER~. ADVERTISING ORDER NO. ADVERTISING INVaCEi . BE iN TR~PUCATE SHOWING ADVERTiSiNG ORDER NO., ~ ,F~ED ^FF,D^v,T oF PUBL,C^T,O. Or TH,S O.MI W,TH OF AO'02314046 ORDER ADVERTISEMENT MUST BE SUBMI'I-I'ED WITH INVOICE SEE I~O'FrOM FOR iN~.,(~_.CEADDR,,ESS :', ,..~ ..,.~ ~,~ ~..,.-~,..., ~..~., ~.. ,. · ' "' ' .": ' ~,-"-'~" ..',. ,'"'"' .,. '. ~ ~ ';, -:"v',;,..: '. F AOGCC AGENCY CONTACT DATE OF A.O. ~ 333 W 7th Ave, Ste 100 Jody Colombie May 5, 2003 o Anchorage, AK 99501 PHONE PCN ~ - (907~ 793--1221 ~ATE~ ADVERTISEMENT REQUIRED: x Anchorage Daily News May 6, 2003 o P O Box 149001 Anchorage, AK 99514 THz MATERIAL BETWEEN THE DOUBLE LINTS MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account #STOF0330 Advertisement to be published was e-mailed Type of Advertisement X Legal I--] Display I-I Classified I--IOther (Specify) SEE ATTACHED PUBLIC HEARING .'sEN'O'iiNv01CE'!iN~TRiPEIc~TEiI AOGCC, 333 W. 7th Ave., Suite 100 ]PAGE I OF ITOTAL OF [ '. · '. '.. '.'..i :i, 7'..:".:',.i.::.:'T~;;i!;?~"i":i',i~!:!;?,3.!?'~i!'?.: ?{;:...] Anchorage~ AK 99501 [ 2PAGESI ALL PAGES$I REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARD 02910 3 4 FIN AMOUNT SY CC PGM LC ' ACCT FY NMR DIST LIQ t 03 02140100 73540 2 3 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM STATE OF ALASKA ~, NOTICE TO PUBLISHER ~, ADVERTISING ORDER NO. ADVERTISING ~NVO~CE~ I' BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO.,~, ~'IFIED AFFIDAVIT OF PUBLICATION (PART2 OF THIS FORM)WITH A'FFACHED COPY OF AC'02 31 4046 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7th Avenue, Suite 100 Jodv Colombie May 5.2003 o Anchorage, AK 99501 PHOI~E PCN' M - , (907~ 793 -! 22 ! I I~ATE~ ADVERTISEMENT REQUIRED: T Anchorage Daily News May 6, 2003 o P O Box 149001 Anchorage, AK 99514 T.E MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account #STOF0330 AFFIDAVIT OF PUBLICATION United states of America REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE, who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2003, and thereafter for__ consecutive days, the last publication appearing on the __day of ,2003, and that the rate charged thereon is not in excess of the rate charged private individuals. , Subscribed and sworn to before me This __ day of 2003, Notary public for state of My commission expires 02-901 (Rev. 3/94) AO.FRM Page 2 PUBLISHER Cancellation of Public heating Subject: Date: From: Organization: To: Cancellation of Public hearing Fri, 02 May 2003 17:17:31 -0800 Jody Colombie <jody_colombie~admin.state.ak.us> Alaska Oil and Gas Conservation Commission Robert E Mintz <robert_mintz@law.state.ak.us>, John Tanigawa <JohnT@EvergreenGas.com>, Terrie Hubble <hubbletl@bp.com>, Duane Vaagen <duane@fairweather. com>, Sondra Stewman <StewmaSD@BP.com>, stanekj <stanekj@unocal.com>, ecolaw <ecolaw~tmstees.org>, roseragsdale <roseragsdale@gei.net>, trmjrl <trmjrl @aol.com>, jbriddle <jbriddle@marathonoil.com>, rockhill <rockhill@aoga.org>, shaneg <shaneg@evergreengas.com>, rosew <rosew~evergreengas.com>, jdarlington <jdarlington@forestoil.com>, nelson <nelson~gci.net>, cboddy <cboddy@usibelli.com>, "mark.dalton" <mark.dalton@hdrinc.com>, "shannon.donnelly" <shannon.donnelly~conocophillips.com>, "mark.p.worcester" <mark.p.woreester@conoeophillips.com>, "jerry. c.dethlefs" <j erry. c.dethlefs~conocophillips.com>, arlenehm <arlenehm~gci.net>, bob <bob~inletkeeper.org>, wdv <wdv~dnr. state.ak.us>, rjr <tjr~dnr. state.ak.us>, bbritch <bbritch~alaska.net>, greg-noble <greg-noble~blm.gov>, mjnelson <mjnelson@purvingertz.com>, burgin_d <burgin_d~niediak.com>, "charles.o'donnell" <charles.o'donnell~veco.com>, "Skillem, Randy L" <SkilleRL@BP.com>, "Dickey, Jeanne H" <DickeyJH@BP.com>, "Jones, Deborah J" <JonesD6~BP.com>, "Hyatt, Paul G" <hyattpg~BP.com>, "Rossberg, R Steven" <RossbeRS~BP.com>, "Shaw, Anne L (BP Alaska)" <ShawAL~BP.com>, "Kirchner, Joseph F" <KirchnJF@BP.com>, "Pospisil, Gordon" <PospisG@BP.com>, "Sommer, Francis S" <SommerFS~BP.com>, "Schultz, Mikel" <Mikel. Schultz@BP.com>, "Jenkins, David P" <JenkinDP@BP.com>, "Glover, Nick W" <GloverNW@BP.com>, "Kleppin, Daryl J" <KleppiDE@BP.com>, "Platt, Janet D" <PlattJD~BP.com>, "Wuestenfeld, Karen S" <WuesteKS@BP.com>, "Jacobsen, Rosanne M" <JacobsRM~BP.com>, ddonkel <ddonkel~cfl.rr. com>, collins_mount <collins_mount@revenue.state.ak.us>, mckay <mckay~gci.net>, "barbara. f. fullmer" <barbara. f. fullmer~conocophillips.com>, bocastwf <bocastwf~bp.c°m>, cowo <cowo~chevrontexaco.com>, ajiii88 <ajiii88~hotmail.com>, doug_schultze <doug_schultze~xtoenergy. com>, "hank.alford" <hank.alford@exxonmobil.com>, yesno 1 <yesno 1 @gci.net>, "john.w.hanes" <john.w.hanes@exxonmobil.com>, gspfoff <gspfoff~aurorapower.com>, "gregg.nady" <gregg.nadY@shell.com>, "fred.steece" <fred.steece~state.sd.us>, rcrotty <rcrotty@ch2m.com>, jejones <jejones~aurorapower.com>, dapa <dapa@alaska.net>, jack_laasch <jack_laasch@natchiq.com>, jimwhite <jimwhite~satx.rr. com>, wrholton <wrholton@marathonoil.com>, "richard.prentki" <richard.prentki@mms.gov>, eyancey <eyancey@seal-tite.net>, markleypa <markleypa~alyeska-pipeline.com>, "jeffrey.walker" <jeffrey. walker~mms.gov>, tressler <tressler@ciri.com>, claire_caldes <claire_caldes~fws.gov>, jacobsenje <jacobsenje~alyeska-pipeline.com>, pcraig <pcraig~gci.net>, babsonandsheppard <babsonandsheppard@earthlink.net>, "james.m.mud" <j ames.m.mud~conocophillips.com> I of 2 5/2/2003 5:17 PM Cancellation of Public hearing "james.m.mud" <j ames.m.mud@conocophillips.com> ~Notice of Cancellation of Aurora Public Hearing.doc Name: Notice of Cancellation of Aurora Public Hearing.doc Type: WlNWORD File (application/msword) Encoding: base64 Name: jody_colombie.vcf ~jody colombie.vcf[ .. T.y. pe: VCard (text/x-vcard) -- -- [ ~ncoalng:7bit II)escription: Card for Jody Colombie 2 of 2 5/2/2003 5:17 PM Notice Subject: Notice Date: Fri, 02 May 2003 17:15:57-0800 From: Jody Colombie <jody_colombie@admin.state.ak.us> Organization: Alaska Oil and Gas Conservation Commission To: Howard D Okland <howard_okland@admin.state.ak.us>, jill_daniels@admin.state.ak.us, "Aaron Poschman, Classifieds Manager" <classifieds~gci.net> Please publish the attached notice. Jody Name: Notice of Cancellation of Aurora Public Hearing.doc ~Notice of Cancellation of Aurora pUblic Hearing. doc TyPe: WINWORD File (application/msword) Encoding: base64 I~jody colombie.vcf Name: jody_colombie.vcf Type: VCard (text/x-vcard) Encoding1 7bit Description. Card for Jody ColombieI 1 o fl 5/2/2003 5:17 P,M Ad Order Subject: Ad Order Date: Fri, 02 May 2003 17:12:29 -0800 From: Jody Colombie <jody_colombie@admin. state.ak.us> Organization: Alaska Oil and Gas Conservation Commission To: Legal Ads Anchorage Daily News <legalads@adn.com> Please publish the attached on Tuesday may 6th. Jody I Name: ADNAd Order form.doc ~ADNAd Order form.doc Type: WINWORD File (application/msword) Encoding: base64 Name: Notice ol" Cancellation ot' Aurora Public Hearing.doc ~Notice of Cancellation of Aurora Public Hearing. doc Type: WINWORD File (application/msword) Encoding: base64 ~' d 1 , · ~! Type: VCard (text/x-veard) ] [,ILO y_co omme.vc~i EncodingI 7bit i ] : Description. Card for Jody Colombiei 1 of I 5/2/2003 5:17 PM bp BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 April 28, 2003 Sarah Palin, Chair Randy Ruedrich, Commissioner Daniel T. Seamount, Commissioner Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Re: Application for Rehearing - Area Injection Order No. 22A Response to Proposed Amendment of Conservation Order No. 457 Aurora Oil Pool- Prudhoe Bay Field Dear Commissioners: Pursuant to AS 31.05.080(a), BP Exploration (Alaska) Inc. (BPXA), as Operator of the Aurora Oil Pool (AOP) on behalf of the Aurora Owners, timely submits this application for rehearing of Area Injection Order 22A (AIO 22A) issued by the Alaska Oil and Gas Conservation Commission (the "Commission") on April 3, 2003 and responds to the Commission's April 3, 2003 notice of public hearing concerning the Proposed Amendment of Conservation Order No. 457 (CO 457) and the Proposed Revocation of Conservation Order No. 98-A (CO 98-A). BPXA respectfully submits that approval of its application for the amendment to AIO 22 is essential to enhancing ultimate oil recovery within the AOP. BPXA hereby supplements the record in response to the above matters and requests that Attachments 1 and 2 to this rehearing application be maintained as confidential pursuant to AS 31.05.035(d). This material is not information that is required to be submitted under AS 31.05.035(a), and contains trade secrets and engineering, geological and other information, and interpretations thereof. BPXA initially addresses and responds to Area Injection Order No. 22A, followed by comments in response to the proposed amendments to Conservation Order No. 457. RECEIVED APR ~ B 2003 Alaska Oil & Gas Cons. Commission Anchorage Application for Rehearii,~ - AIO 22A 4/28/2003 Page 2 I. Response to Area Injection Order No. 22A A. Backqround On December 9, 2002 BPXA requested an Order from the Commission modifying Area Injection Order No. 22 to authorize the underground injection of miscible injectant ("MI") for enhanced oil recovery in the AOP. On March 4, 2003 the Commission conducted a hearing on BPXA's request and on April 3, 2003 issued its decision denying the request (Area Injection Order No. 22A) without prejudice to BPXA's right to renew the application at a later date. The Commission's April 3, 2003 Order indicated that the Commission felt certain issues were outstanding. BPXA hereby responds to the Order and supplements the record with the materials and information concerning AOP well pressures and additional information on the current reservoir management plan, including depletion strategy, which is contained herein and in Attachments 1 through 4. BPXA believes this material provides a more comprehensive understanding of AOP reservoir pressures and depletion strategy than is indicated by certain findings and conclusions contained in the Order. Before addressing the conclusions contained in AIO 22A, BPXA provides the following information related to certain findings by the Commission. B. Response to Certain Findinqs in AIO 22A 1. Operators/Surface Owners (20 AAC 25.402(c)(2) and 20 AAC 25.403(c)(3)) This paragraph should be updated to reflect the current PBU and Aurora aligned Working Interest Owners as follows: BP Exploration (Alaska)Inc. ExxonMobil Alaska Production Inc. ConocoPhillips Alaska, Inc. Chevron U.S.A. Inc. Forest Oil Corporation 6. Injection Fluid and Rates (20 AAC 25.402(c)(9)) a.) Additional Source Water AIO 22A does not anticipate the potential that exists for using source water that may be obtained from the Prince Creek Formation in the Application for Rehearir~,"~4'. AIO 22A 4/28/2OO3 Page 3 GC-2 area from dedicated source water production wells and used for injection into the AOP. Based upon Milne Point experiences, compatibility between the source water and the AOP Formation fluids will not be an issue. We therefore request that the Order also authorize the injection of Prince Creek source water. The following table depicts Prince Creek source water chemistry profiles from Milne Point source water wells. Well Units MPB-1 MPCFP-1 Sodium mg/I 1046 1083 Calcium mg/I 138 96 Magnesium mg/I 11 19 Barium mg/I 10 4 Chloride mg/I 1800 1820 Sulfate mg/I 4 0 Carbonate mg/I 0 0 Bicarbonate mg/I 151 140 Total Dissolved Solids mg/I 316O 3162 b.) Other Fluids AIO 22A also does not anticipate the possibility that fluids other than MI and water may be injected into the AOP at some future date during the life of the project in order to enhance recovery of oil and gas. We therefore request that the Order also authorize the injection of: 1. Solution gas associated with oil production - reinjected for reservoir pressure maintenance. 2. Tracer survey fluid - to monitor reservoir performance. 3. Non-hazardous water collected from PBU reserve pits, well house cellars and standing ponds. 11. Hydrocarbon Recovery and Reservoir Impact (20 AAC 25.402(c)(14)) Finding 11 does not capture the current technical understanding and development strategy for the AOP, which we are setting forth herein to provide context. Application for Reheari~,:, 4/28/2OO3 Page 4 AIO 22A Recovery Mechanisms Evaluation of hydrocarbon recovery mechanisms for the Aurora Oil Pool has been the subject of ongoing analysis. The technical characteristics of considerable faulting, Iow initial oil rates, gas cap presence and thin oil column indicate a phased development program is appropriate and will maximize ultimate recovery. Phased development of the AOP employs three reservoir mechanisms over field life. Initial development involves a period of primary production to determine reservoir performance and drainage areas. Primary production under solution gas and aquifer influx drive from both floodable and non-waterflood pay intervals provides information used to improve the depletion plan, including production pressure data to evaluate compartmentalization and conformance. This drilling and surveillance data influences the next steps in reservoir development, including proper injection pattern layout. In areas where injection is indicated, secondary water flood is initiated to improve recovery by reduCing residual oil saturation and maintaining well productivity via reservoir pressure support. Water injection should be initiated to maintain average reservoir pressure above 2400 psi in the flood area to ensure recovery targets are achieved. Tertiary EOR MWAG (miscible water alternating gas) provides additional oil recovery by further reducing residual oil saturation via injection of miscible gas alternating with water injection. In addition to enhancing oil recovery, injection of miscible gas provides additional reservoir benefits (Attachment 2). Slim tube study and compositional modeling indicate the Aurora reservoir fluid miscibility pressure with the Prudhoe Bay miscible gas supply is 2700 psi. Miscible gas injection will be operated to maintain miscibility between the reservoir fluid and the injected miscible gas. There will be higher pressure around injection wells and a pressure sink around the producers, which, in some cases can be below MMP. It is common practice in EOR projects to maintain pressure below MMP in the area of the producers due to several reasons: a) The Iow-pressure region around the producers is of generally small pore volume relative to the flooded area pore volume. This occurs for two reasons, both related to radial flow: first the pressure profile drops in a non-linear fashion near the wellbore (depending on skin) and secondly, pore volume is a function of the radius from the wellbore and increases at a rate proportional to r2. The variables determining the steady state pressure distribution in the reservoir include injection pattern geometry, formation permeability, formation Application for Rehear~.~, - AIO 22A 4/28/2003 Page 5 b) heterogeneities, injector and producer skin damage, maximum allowable injection pressure, and artificial lift method and efficiency. Maximum sweep efficiency occurs in most reservoirs when producing bottom-hole pressure is minimized, increasing the contribution and sweep of Iow permeability intervals. Analysis of the miscible displacement mechanism that has been performed shows that additional oil recovery by the miscible displacement mechanism is evident in all cases studied (Attachment 2). With average reservoir pressures above the MMP, incremental EOR recovery is essentially the same even though producer region pressures below the MMP are maintained. As a consequence, reservoir management guidelines for EOR should be based on average reservoir pressure rather than producer pressure. Early implementation of the secondary and tertiary injection processes allows adequate time for producers to capture mobilized oil. Proper field management includes monitoring of productivity, GOR, water cut, pressure, of injection voidage replacement ratios and other measurements. Reservoir data gathering employed in AOP development includes: 1) an Aurora seismic survey in the year 2000, 2) basic and enhanced well log data gathering, 3) whole and sidewall core analysis of reservoir properties, 4) a single-well chemical tracer test for initial oil saturation, residual oil saturation to water, oil-water fractional flow, and residual oil saturation to miscible gas injection, 5) well flow and pressure tests, 6) surface and subsurface PVT sample gathering, 7) black oil PVT experiments, and 8) slim tube miscibility experiments. Data gathering combined with early construction of the reservoir framework and appropriate evaluation tools has been employed by a multi-disciplinary team to insure proper field management. The quality of the six types of pressure data measurements taken at Aurora have been reviewed and ranked according to accuracy. Two of the data types require corrections for insufficient shut-in time and one for wellbore pressure gradients. These corrections and the resulting pressure database are shown in Attachment 4. To determine current field average pressure, these well data are integrated with a reservoir simulation model. The Aurora field average reservoir pressure is 3142 psi as of April 2003 (Attachment 2). Application for Rehearit,"~ 4/28/2003 Page 6 A high quality of match between field data and the reservoir model is evident in well-level comparisons of predicted versus measured pressures. Field Development Field development areas for the AOP have been defined by geological and reservoir performance data interpretation. Differing initial gas-oil and oil-water contacts and pressure behavior during primary production led to the definition of these field development management areas. These areas include the: 1) West Area (comprised of the previously separated V-200 and Beechey Areas), 2) North of Crest Area, 3) South East of Crest Area, and 4) Crest Area. An effective water injection flood has been established in the West and North of Crest areas providing pressure support and reducing residual oil saturations. Other development activities include: 1) 2) 3) Initiating water injection into the South East of Crest area with the pending conversion of pre-produced injectors S-110 and S-112 to injection. Crest area production began in mid-March 2003 with startup of Aurora well S-115; well S-117 production startup .is imminent. These wells' primary production performance and other well data will be considered in the evaluation of drilling a supporting injection well, i.e. the potential S-116 well. Evaluation of a lOcal water injection booster pump to increase water injection throughput rates by raising the available Aurora wellhead water injection pressure. Finally, an Aurora field development case history was published in the May 2002 SPE paper 76739, "Proactive Surveillance And Phased Development Yields Promising ResUlts From The Aurora Field 30-Years After Discovery" (see Attachment 3). This paper discusses development learnings and plan modifications made to "improve rate, increase reserves, and meet economic hurdles." C. Response to AIO22A Conclusions The paragraph numbers below correspond with the numbered Conclusions in AIO 22A. Application for Reheari .~ - AIQ 22A 4/28/2003 Page 7 1. The AOP average reservoir pressure is currently 3142 psia. The Minimum Miscibility Pressure (MMP) is 2700 psia, with 90% of the field area above MMP. Areas below the MMP are limited to the producing well areas and as discussed above, Iow pressures near producers are expected and are consistent with mechanistic simulation models that show incremental oil recovery due to the miscible displacement enhanced oil recovery mechanism. As a result, the proposed injection of fluids will act to enhance recovery and is an integral part of the AOP Plan of Development as outlined in the response to Finding 11. 2. Concerning current reservoir pressures and MMP, all areas of the AOP are of sufficient pressure for initiating an MWAG process, beginning in the West and North of Crest areas. In the South East of Crest area where water injection has not yet begun, the current reservoir pressure is also far above the MMP. Initiating water injection in the S-112i and S-110i wells will restore near-wellbore area pressure that declined during pre-production. 3. Current development plans and development strategy are fully consistent with testimony provided to the Commission in support of CO 457 and AIO 22. Testimony and analysis provided to the Commission in support of CO 457 indicated that primary production would be employed initially and that primary production less than 18 months would not jeopardize ultimate recovery. Updated information using current field evaluation tools, an updated reservoir description and the wells drilled in support of field development indicates that average reservoir pressures down to 2400 psi during primary production do not substantially impact ultimate recovery. This pressure corresponds with 24 months of primary production with full well density at startup; while field development has not occurred as rapidly and involves staggered production and injection timing. The current field pressure of 3142 psi is well above the limits established by these analyses. Water injection startup in the field was initiated within the 18- month period indicated to the Commission in support of CO 457 and AIO 22. Field development and operation are being conducted in a manner consistent with sound engineering and geosciences practices and with CO 457 and AIO 22. With Commission approval of the modifications requested by the Operator to AIO 22, including increasing to the maximum allowable surface water injection pressure and to allow the injection of EOR miscible gas injection, AOP oil recovery will be maximized. 4. Regarding cumulative voidage, voidage calculations made by the Commission used gas rate data that included artificial lift gas in the Application for Rehearir~ - Al© 22A 4/28/2OO3 Page 8 calculation, whereas the calculation should have been made using data that excluded artificial lift gas volumes. This may have occurred because BPXA volume accounting for November 2002 through February 2003 in wells S-102 and S-105 did not differentiate gas lift gas from formation gas. The combined total lift gas for these two wells, approximately 4,000 equivalent reservoir barrels per day, should not be included in the voidage calculation. BPXA has now reconciled this information with Commission staff. As shown in Attachment 1, over 90% of AOP voidage to date has occurred in the West and North of Crest areas that currently have a VRR greater than 1.0. In the South East of Crest area water injection startup is imminent with the two pre-produced injection wells, S-110 and S-112, shut-in for conversion to injection. In the Crest area, production voidage began in March of 2003 and continued primary production is necessary to determine drainage areas and injection plans consistent with the Aurora development plan described above in the response to Finding 11 included in Section B. 5. BPXA's current reservoir management strategy is discussed above and additional details are attached. 6. Current reservoir pressure and incremental EOR recovery are discussed above, with additional data regarding current average reservoir pressure set forth in Attachments 1,2 and 4. 7. Regarding additional well pressure measurements, the plan for acquiring additional well pressure surveillance data is included in Attachment 1. This plan addresses field-wide and area specific pressure data gathering in order to insure proper field development and operation. II. Notice of Public Hearing - Proposed Amendment of CO 457 The paragraph numbers below correspond to the proposed amendments to CO 457 included in the Commission's April 4, 2003 Notice of Public Hearing. 1. BPXA agrees that CE) 457 should contain a definition of the AOP, as follows: "The AOP is defined as the accumulation of oil that is common to and correlates with the accumulation found in the interval between 6765'and 7765' measured depth in the Mobil Oil Corporation Mobil- Phillips North Kuparuk State No. 26-12-12 well." Application for Rehearir~"u - AIO~'' 22A 4/28/2003 Page 9 . BPXA agrees that Conservation Order 457 should be revised to recognize the applicability of the PBU Western Satellite Production Metering Plan as described and adopted by the Commission in CO 471. . BPXA does not believe Rule 5 should be specifically modified as the Commission is considering. Continued production of all Aurora producers is consistent with the AOP development plan as described above and is necessary to maximize economic recovery. Surveillance pressure data gathering is planned for the field as described in Attachment 1. . BPXA does not believe Rule 7 should be specifically modified as the Commission is considering. The miscible gas injection project at Aurora will be operated to maintain the flood with an average reservoir pressure that insures miscible displacement recovery is achieved. 5. BPXA recommends that Rule 8 of Conservation Order No. 457 be revised to add the following: g) Review of Annual Plan of Operations and Development, including discussion of the reservoir depletion plan and the status of reservoir repressurization activity. As demonstrated in the information submitted in support of AIO 22A, as supplemented herein, the Aurora field development plan promotes greater field ultimate recovery under waterflood and miscible gas EOR injection. The planned miscible gas injection project will recover a significant incremental amount of oil over and above the expected waterflood incremental recovery. III. Summary BPXA respectfully requests that the Commission reconsider AIO 22A and grant this application for rehearing. BPXA has addressed herein the findings and conclusions that should be reconsidered and has submitted additional information for the record to address the issues raised in the Order. We believe the additional information provided demonstrates that because of the reservoir quality and fluid contact risks at Aurora, implementation of the development strategy as proposed is essential to enhancing ultimate oil recovery within the AOP. Further refinement of our understanding of the AOP and adjustments to the development plan highlight the need to accelerate EOR start-up. The surveillance plan and additional well pressure information should resolve the concerns expressed in AIO 22A. Application for Rehearir~ - 4/28/2003 Page 10 Ale 22A Therefore, we respectfully request that, based upon the additional information, the Commission withdraw and void the April 3, 2003 Ale 22A decision and issue an Order approving BPXA's application for injection of enriched gas in the AOP and for an increase in allowable water injection pressure. In addition, we conclude, as discussed herein, that several of the proposed amendments to CO 457 are unnecessary or should be revised as indicated herein. BPXA is prepared to have the Commission rule on the basis of the record as supplemented herein and without further public hearings, unless the Commission's concerns have not been resolved by the information supplemented herein. Please contact Gil Beuhler (564-5143) or Gary Gustafson (564-5304) if you have any questions regarding this correspondence. Maureen( .... Performance Unit Leader Greater Prudhoe Bay Attachments: Attachment 1 - April 17, 2003 BPXA Aurora Reservoir Presentation to AOGCC Attachment 2 - April 23, 2003 BPXA Aurora Reservoir Presentation to AOGCC Attachment 3 - SPE 76739 "Proactive Surveillance and Phased Development Yields Promising Results From the Aurora Field 30-Years After Discover" (J.P. Young, F.E. Bakun, F.K. Paskvan, SPE, E.H. Westergaard, BP Exploration (Alaska)Inc.). Attachment 4- Aurora Representative Well Pressures (BPXA) Application for Reheari - AIO 22A 4/28/2OO3 Page 11 cc: M. Vela, ExxonMobil K. Griffin, Forest Oil J. Johnson, CPAI G.M. Forsthoff, ChevronTexaco Francis Sommer, BPXA Gil Beuhler, BPXA Frank Paskvan, BPXA Rosy Jacobsen, BPXA Gary Gustafson, BPXA Mark Worcester, CPAI Steve Luna, ExxonMobil ATTACHMENT 3 Society of Petroleum Engineers SPE 76739 Proactive Surveillance And Phased Development Yields Promising Results From The Aurora Field 30-Years After Discovery. (J. P. Young, F. E. Bakun, F. K. Paskvan, SPE), E. H. Westergaard, BP Exploration. Copyright 2002, Socie~ of Petroleum Engineers Inc, This pape~ was prepared k)r presentation at the SPE Westem Regional/AAPG Pacific Section Joint Meeting held in Anchorage. Alaska. U.S~,.. 20-22 May 2002. This paper was selected for presentation by an SPE Program Committee following review of information contained in an abstract submitted by the author(s). Contents of the paper, as presented, have r~ been reviewed by the Society of Petroleum Engineers and are subject to cormctinn by the auth(x(s), The material, as presented, does not necessarily reflect any poei~3n of the Society of Peb'oteum Engineers. its officers, or members. Papers presented at SPE meetings are subject to publication review by Editorial Committees of the Society of Pe{roteum Engineers. Electronic reproduction, distribution, or storage of any part of this paper for commercial purposes without the written consent of the Society of Petroleum Engineers is prol~bited. Permission to reproduce in pdnt is restricted to an abstract of not more than 300 words; illustrations may not be copied. The abstract must contain conspicuous acknowledgment of where and by whom the paper was presented. Write Librarian, SPE, P.O. Box 833836. Richardson, TX 75083-3838. U.S.A., fax 01-972-952-9435. Abstract Although three 1969 exploration wells discovered hydrocarbons in the Aurora structure, development was not possible until a scope change to the V-200 exploration well demonstrated commerciality 30-years later. Commencing in June 2000, an aggressive 6-well horizontal and vertical development/appraisal program yielded over !.75 million barrels of oil in the first year and provided a better understanding of a reservoir previously thought marginally commercial. Investment in reservoir description and proactive suxveillance led to accurate decision-making, and with innovations, yielded significant return from a "marginal" field. Introduction The Aurora Pool is located on Alaska's North Slope and produces from the Kuparuk River Formation. See location map, Figure 1. Hydrocarbons were discovered in 1969 with three exploration wells: Beechey Point State #1, #2 and North Kuparuk 26-12- 12. Results from these wells, shown in table 1, did not give any confidence that commercial rates could be achieved from the field, and exploration work was minimal until 1999. The following key points were recognized from seismic data and exploration results: !) Severe faulting and compartmentalization with variable fluid contacts 2) Significant variations in reservoir pay thickness, quality, and mineralogy 3) Marginal quality, damage prone formation with gas-cap present. Table I Exploration Well Test Results Well (date) Gross Oil Oi._! GQ.R E.stimatcd Column ~ (scf/stb) Skin BPS#1 (1969) 60' (+gas) I$ >70,000 50+ BPS#2 (I 969) 15' 0 0 50+ NKUP 26-12-12 30' 32 <700 50+ (]969) _. V-200 (1999) 58' 1915 718 +12 In 1999, a late scope change was made to extend the V-200 exploration well, a dry hole in the Schrader Bluff, to penetrate and test the Kuparuk. The V-200 encountered approximately 58' of oil column and was tested in four stages while progressively adding perforations up hole with a final production test rate of 1915 bopd with a GOR of 718 scf/stb. By achieving commercial rates with the initial completion, V- 200 results unlocked development of the Aurora field. Due to Aurora's proximity with existing Ivishak Participating Area (IPA) infrastructure, an accelerated development path was taken. Instead of building a new development drilling pad centered on the V-200 well, which would require pipelines, power and access roads, the field was developed from the existing IPA S-pad. To date, ten development wells have been completed in the Aurora structure. The first three wells, located in the V-200 fault block, were drilled horizontally to take advantage of the relatively large and continuous block. The eastern segments of the field have been developed with vertical fractured wells to access separate producing intervals. The western portion of the field was accessed with extended reach drilling technology and a single U-shaped injector that was drilled to provide water flood support to two discrete fault blocks. The Aurora reservoir description has matured significantly over the last 2 years. An enhanced 3-D seismic survey acquired early in 2000 improved fault resolution, a new sequence stratigraphic framework more accurately describes the geology of the structure and a single well tracer test was 2 J. P YOUNG, F E. BAKUN, F. K PASKVAN, E, H, WESTERGAARD SPE 76739 utilized to improve estimates of cormate water, residual oil saturation to water flood and residual oil saturation to miscible gas flood. Future development ,a'elt locations will be based on thc integration of the aboxe, plus surveillance data from existing ',,,'ells and continued 3D fluid flor,' simulation. This paper provides a development case histoo' and discusses learnings made along the way. Structure 'Top Kuparuk structure in the Aurora area is essentially a northwest-southeast oriented antiform broken up by north- south striking faults. Gentle slopes dipping 2.5 to 6.5 degrees characterize the northeast and southwest flanks of the structure. In contrast, rotated fault blocks characterize the southern and western flanks of the structure. A major north-south striking fault: with up to 200 feet of down-to-the-west displacement effectively bisects the Aurora Pool area into an eastern half, which contains the S-Pad Sag River/lvishak development wells, and a western half, which contains the V-200, and Beechey Point State I. See figure 2 for a top of structure map showing various development blocks within the field. Stratigraphy The Kuparuk River Formation was deposited as deltaic and shore face to shelf sediments. The Kuparuk is composed of very fine to medium grained quartz-rich sandstone, interbedded with siltstone and mudstone. See figure 3 for the V-200 type log. The uppermost unit, the Kuparuk C interval, contains the pri~nary reservoir sands of the Aurora Pool and 'was selected tbr initial development with horizontal wells in the V-200 block. The Kuparuk C is characterized as lower to middle shore fact,' sands de.I.~sited in a basal transgression (C-l) a middle progradational package (C-2 and C-3) and a capping transgressive package (C-4). The t.hickness of the C-sands is; 'variable and ranges from 0 feet at the eastern truncation, to 210 feet at the Beechey Point 'wells in the northwestern portion of the Aurora Pool. The Kuparuk. C-1 m~d C-4 iMegazones are coarser grained and contain variable amounts of glauconite and digenetic siderite. The volume and distribution of siderite and glauconite can significantly reduce reservoir quality of the Kuparuk C-I and C-4 intervals. These minerals are unevenly distributed and challenge open hole log interpretation of fluid contacts and pay. New Reservoir Description. Post Phase I Development, it became apparent that 'the maps, stratigraphic :framework and resultant reservoir description required refinement. In conjunction with early appraisal and development drilling at the nearby sister field, Borealis. thc decision was made to pull together a ne~ integrated sub-regional Kuparuk River Formation geologic model and reser,,oir description. This new geologic model relied heavil) on ney, cores taken at Aurora and Borealis as ,.veil data from the vast Kuparuk Ri,,er Unit (KRU) dataset. The goal of this effbrt ,,,,'as to build an early rese~'oir description that is updateable and flexible enough to address a range of issues from well planning in undeveloped portions of the field to water flood implementation in more mature areas. Petrophysics, biostratigraphy, petrologic data, core analysis, ichnology and production data were integrated into a sequence stratigraphic framework to produce a robust geologic model. The business challenge was to build a geologic description early in the fields' history while simultaneously planning and managing ongoing development/appraisal drilling. The resultant stratigraphic framework and maps have had a significant impact in development planning at Aurora. See figure 4 for stratigraphic fYamework. Rock and Fluid Properties Field oil-water contacts have been interpreted to vary t¥om 6812 feet tvdss to 6835 feet tvdss between the East and Northwest end of the field. Based on RFT data, core analysis saturations, and core staining, a gas-oil contact (GOC) is interpreted to vary from 6631 feet tvdss to 6678 feet tvdss between 'the East and Northwest end of the field. The reservoir description .for the Aurora Pool is developed t'rom the Aurora Log Model. Geolog's Multimin is used as; the porosity/litho logy solver and is based on density, neutron,, and sonic porosity logs. Quality control procedures include normalization of the gamma ray, density and neutron logs. The Waxman-Smits correlation is used to model water' saturations. Results from the log model are calibrated with core data, including litho logic descriptions, X-Ray diffraction and point count data, obtained from wells in the Aurora Pool and the nearby Borealis reservoir. Supplemental core data was analyzed from wells in the eastern portion of the Kuparuk River 'Unit (KRU). Wells with Aurora cored intervals in the data set are Beechey Point State # 1, S-04, S- 104, and S- 16. Porosity and Permeability. Porosity and permeability measurements were based upon routine core analysis (air permeability with Klinkenberg correction)from the 'following well set: S-16, S-04, Beechey Point State #i, S-104, NWE 1- 01, NWE 1--02, and NWE 2-01. The ratio of' vertical to horizontal permeability (ky/kb)'was 0.006 per 20 feet interval, based on the harmonic average of' routine core data. Typical single plug ky/kb ratios ranged from 0.4 to 1.2. SPE 76739 NEW DEVELOPMENT CASE HISTORY: AURORA Hydrocarbons in Place Estimates of hydrocarbons in place for the Aurora Pool reflect current well control, stratigraphic and structural interpretation, and rock and fluid properties. The current estimate of original oil in place (OOIP) ranges between 110 mmstbo and 146 mmstbo primarily due to uncertainty in the GOC. Formation gas in place ranges from 75 to 100 bscf, and gas cap gas ranges from 15 to 75 bscf. Field Development Plan The Aurora accumulation had been recognized as a development target as far back as the late 1960's, but due to expected low production rates and uncertainty in fluid contacts, development was not aggressively pursued. As mentioned earlier, favorable results from the V-200 exploration well generated sufficient enthusiasm to proceed with field development in 1999. An accelerated development plan utilizing existing Prudhoe Bay infrastructure with three separate phases was generated. Phase I Development Six wells were planned for the Phase I development drilling program with three wells located in the V-200 Fault Block and three wells in the North of Crest Fault Block. V-200 Fault Block. The Aurora seismic survey indicated that the V-200 Fault Block was one of the least faulted in the field. in order to take advantage of the relatively large structure and thin reservoir, three horizontal wells were drilled for initial development, originally two producers, S- 10 ! and S- 102, and one pre-produced injector, S-100. Gas-cap. A GOC was screened as possibility in the V-200 Fault Block but considered unlikely. S-101 was drilled into a GOC at approximately 6678' tvdss, confirmed by an initial production test at over 20,000 scf/stb. The high producing GOR plus the need to conserve reservoir energy led to S-101 being shut in shortly after initial production. Compartmentalization. Compartmentalization was recognized prior to development, however its extent was underestimated and has had an impact on development plans. The first indication of this was encountering a significant change in the Kuparuk structure at the S-102 well that could not be determined with seismic data. Top Kuparuk was encountered 50' shallower than expected in this well, and at least two faults were crossed, forcing the horizontal section to be shortened due to missing formation. Initial pressure data and subsequent production data suggest that S-102 is in tortuous communication with the main V-200 block. See figure 5. Figure 5:S-102 Compartmentalization A S-1~2 P~ssue Pattern Reconfiguration. S-100, originally planned as the injector to support S-101 and S-102, was the best performing well in the fault block with initial rates in excess of 7000 bopd. There was considerable discomfort with converting the best producer in the block to injection service plus off take from S-101 would be limited for several years due to gas influx. A proposal was made to re-configure the V-200 fault block to retain S-100 as a producer and convert the S-101 well to injection. The final configuration had to meet three objectives: improve rate, increase reserves, and meet economic hurdles. Injection from S-101 would provide excellent sweep to the south of S-100 but would not provide pressure support to the north. As the evaluation progressed on the V-200 fault block, the S-107i well was in the planning stages to provide injection support to the Northern Beechey fault block. The well trajectory passed over the mid-point between the S-102 and S- 100 well locations. An additional injector was simulated in this location and it provided over 1.2 MMSTBO of additional reserves. Further it allowed S-100 to remain on production, substantially .increasing off take from the V-200 fault block in 2001-2004. Once the location had been identified and benefits established, an economic way to access the target had to be found. A stand alone well, a multilateral, and a high angle dual injection target well were evaluated in terms of cost, ease of drilling and operability. The best option was a U-shaped well passing down through the Kuparuk in the V-200 fault block then climbing back up to hit the Northern Beechey target from below. The dual target injection well met all three objectives of a successful reconfiguration: keeping S~IO0 on production, increasing reserves in the V-200 fault block, and was an 4 J P YOUNG, F E. BAKUN, F. K. PASKVAN, F--. H. WESTERGA.ARD SPE 76739 economically viable project (development cost less than $1.00bbl for V-200 target). See Figures 6a and 6b tbr the S- 107i u-shaped well along ,aith base case and reconfigured patterns. The complete evaluation, approval, and implementation process /'or V-20() pattern recontiguration took place in less than 4-months and did not delay the development schedule. Earl5 parmer involvement and multi-disciplinary team'aork we're crucial to timeliness of this project. The North of Crest Fault Block. l'he North of Crest (NO() area on the east side of Aurora was the next most favorable development target at Aurora. Because the NOC area is smaller and has a higher degree of structural complexity, it was developed with two vertical producers, S-103 and S-10:5, and one dual target injector, S-104. Several well placement scenarios were simulated at various gas oil contacts. The final well locations were based on mitigating the risk of gas in the S-103 location. S-1t.)3, located at the highest point in the structure, was the first development well in the block. Interpreted log data suggested a possible GOC in the C-4 sand at 6631' tvdss. To avoid high GOR production, initial perforations were limited to the C-I sand and had initial production of over 3000 bopd and proved excellent reservoir quality in the C-I in this fault block. Subsequent static pressures have suggested that there is a very active aquifbr in the NOC area. S-104, drilled in central portion of the block, was a pre.- produced injection 'well and initial unstimulated production was over 700 bopd. With slight modifications in the directional plan and completion equipment (tubing straddle), S-104 was able to access injection targets in both the Kuparuk and shallower Schrader Bluff reservoirs for a fraction of the cost of 2 stand-alone wells. S-105, structurally the lowest of the three 'wells, was drilled very close to the Iow productivity NKUP 26-12-12 well ami did not produce commercial rates initially due to a truncation of the higher quality C-4 sand. A fracture treatment in S-105 yielded sustained production of over 1000 bop& and highlighted the fon'nation damage concerns in the C-sand. Phase 2 Development The Phase 2 development program was initiated in 2001 to appraise and develop the remaining blocks in the Aurora fieM and reconfigure the V-200 water flood pattern.. The second phase of development drilling is expected to continue through 2()03-4, Beechey. The Beechey Fault Block, on the western edge of the Aurora field, had very high polential reserves but an uncertain gas oil contact. Mud logs from the Beechey State #il exploration well had a broad range of interpreted GOC's ranging from 6648' tvdss down to 6705' tvdss. It was recognized that if the GO( ,a. as shallo,a, then up to 7 ,aells could be drilled in this portion o1" tile field. A phased drilling approach v, as chosen for this block to help mitigate de~ elopment risk. S-106 ~aas drilled first, in mid 2()01, to define the gas oil contact arm prove up productivity. Post hydraulic fracturing. the well tested at over 6000 bopd confirming the presence of high quality Kuparuk C-Sands. While the ~,'ell did not intersect the GO(, production results suggest a GOC at approximately 6678' tvdss, consistent with the V-200 Fault Block. As mentioned earlier, the S-107i well was drilled tis a u-shaped injector to provide injection support to tile S-106 well and reconfigure the V-200 fault block. Based on the results of the S-106 producer, t,,vo additional wells are being evaluated for the Mid-Beechey Fault Block target (producer/injector pair) and three wells 'fbr the South Beechey Fault Block target. Additional simulation and further production testing are required before the development will continue in this block. Southeast (7:rest. The Southeast Crest (SEC)Fault Block was the next development target, The Kuparuk C-sands thin significantly moving towards the southeast and a key uncertainty was well deliverability, l_imited core data from the S-16 well suggested that a hydraulically fractured well could produce at economic rates. Two wells were drilled in 2001 in the northern portion of the block., S-11.)8 and S-110. Both wells had post hydraulic fracture rates in excess of 1501:) bopd. Based on the deliverability of the first two wells an injector and an additional producer are being evaluated. The two additional wells are expected to encounter thinner, but generally higher permeability rock in the central and southwest portions of the block. Crest. The Crest Fault Block carries significant structural uncertainty and has not been drilled as part of the Aurora development. The block has been penetrated several times with Prudhoe Bay Ivishak wells and open hole logs have demonstrated that Kuparuk sands are present. Unfbrtunately, the dense faulting raises serious concerns about the connectivity of each small compartment. It is expected that one well will eventually be drilled to test this area arm if multiple blocks are cornnqunicating then up to 3 more wells; could be drilled. Phase 3 Enhanced Oil Recovery The final Phase of development will occur concurrently with Phase 2 Development in 'which miscible gas will be utilized at Aurora to improve ultimate recovery. Early screening indicates EOR benefits on the order of 5% incremental ()il recovery. The S-104 single well tracer test was utilized to prove in-situ miscibility. See the Single 'Well Tracer Test section. SPE 76739 NEW DEVELOPMENT CASE HISTORY: AURORA Facilities design Aurora wells were drilled from an existing IPA drill site, S- Pad, and utilized existing IPA pad facilities and pipelines to produce Aurora reservoir fluids for processing and shipment to the Transalaska Pipeline System (TAPS). Aurora fluids are commingled with IPA fluids on the surface at S-Pad to maximize use of existing IPA infrastructure, minimize environmental impacts and to reduce costs to help maximize recovery. Use of existing facilities, reduced capital expenditure and allowed the project to be accelerated by providing early access to test separation equipment, injection water, and miscible injectant for EOR. The disadvantages were added drilling cost to reach reservoir targets, and close proximity of surface well locations, which caused delays due to equipment and simultaneous operations limitations. Well Design and Completions The horizontal well completions were designed to reach targets from existing infrastructure while maximizing horizontal displacement in the reservoir for increased productivity. Because formation damage was a concern, "banzai" completions, a combination of slotted and cemented/perforated liner, were used to minimize damage while allowing for fracture stimulation if necessary. The initial wells were completed with 7" production casing in vertical wells, 4-1/2" liners in horizontal wells. All the wells were perforated at 6spf with 60 degree, deep penetrating charges, and 0-1500 psi under-balance, depending on operational limitations. Field Development Learnings Because of the. pay quality and fluid contact risks at Aurora, evolvement of the development plan was critical. In addition to the stratigraphic framework mentioned earlier, we feel the following learnings had a favorable impact on, and were key to sustaining Aurora field development. Single well tracer test. As a small satellite Aurora does not have the scale to warrant a significant investment for the collection of native state core and special core analysis. Therefore properties like relatively permeability were based on analog data. The single well tracer test (SWTT) provided an economic way to collect the following key reservoir parameters in-situ: initial water saturation, water-oil relative permeability, residual oil saturation to water flood and residual oil saturation to miscible gas. S-104 was drilled in lQ 2001 and was selected to be the key data well for the Aurora field. The well was cored and standard core analysis was performed, plus a full suite of open hole logs was run including nuclear magnetic resonance and focused microresistivity. The well was considered an ideal candidate for a single well tracer test as it had a quality cement job and a detailed near well bore description. The SWTT was performed over a 30' interval in the S- 104 well. The connate water saturation test returned a value of 13,5%, considerably lower than the predicted 25-30%. This suggests a higher OOIP in reservoir. The residual oil saturation to water flood plus the water-oil relative permeability data suggested that the system was more oil-wet than analog data had suggested. The residual oil saturation to miscible gas was very low even with a minimal pressure delta at the perforations. The miscible gas entered the upper 80% of the open zone and swept it down to a residual oil saturation of 4.5%. Information from the SWTT impacted injector spacing, rate and recovery estimates and highlighted the need to accelerate EOR start'up. Productivity Data. Following promising results of the V-200 exploration well, the initial development began at Aurora with three horizontal wells followed by three conventional wells. Substantial log, core, and production data, including pressure transient analysis (PTA) was collected and is summarized in table 2. Table 2 Aurora Phase I Well Results V-200 Expl. 10,000 3,000 t00 . , , S-100 Hofiz. 10,204 4,000 0.7 . 7,2!3:.: '.' 109 S-101 Horiz. 6,063 1,925 0.4-- 78 S-102 Hodz. No data 600 8~0'. .... :i 600 ':: .~.30-80 , Conv. . .S-103 (C-1) 10,262 3,000 2.0 S-104 Cored 3,362. 15+ 800 50 S-105 Cony. 769 50+ 50 30.. S-105 Frac'd 769 1,200 ,,0 1,000 ......30 Pressure buildup and production log analysis showed significant skins in perforated completions, even when steps were taken to minimize formation damage with the use of KCL drilling fluid and under balanced perforatingt. The inability to achieve extreme under balance conditions required for perforation cleanup resulted in the lower permeability layers not communicating with the well bore. See figure 7 for a comparison of perforation skin and under balance in the Aurora wells relative to published under balance requirements for 0 perforation skin in Berea sandstone2. After fracturing S-105 and performing PTA, it was apparent that the permeability-thickness (kb) increased dramatically, even without correcting for relative permeability. Increased kh resulting from fracturing into lower permeability layers has been documented at the Kuparuk River Unit3. 6 J P YOUNG, F. E BAKUN, F. K. PASKVAN, E. H. WESTERGAARD SPE 76739 The low kv.'Kh also hindered productivity from horizontal ~ells relative to fractured wells. Sho~'n in figure 8 is a plot of productivity index, normalized to kh lbr Phase I and 2 Aurora ~xells versus net horizontal length or fracture length. Even when great care was taken to maximize productivity v, ith long, open-hole completion horizontal wells, the stimulation benefit did not compete with a high conductivity propped fracture. By providing excellent vertical communication to the full reservoir, high conductivity, tip screenout i, TSO) fractures provided superior productivity at a much lower cost than horizontal wells. Conclusions Tile following advancements ,.,,.'ere key to development at the Aurora field: 1) Success of the V-200 exploration well in attracting investlnent by achieving a commercial rate well test. 2) Use of existing facilities to mixfimize construction impacts and costs. 3t Reprocessed seismic data continually updated witt~ well control to refine structural description, compartmentalization issues, and well placement. 4) Stratigraphic framework using log, core, and analogue data to map reservoir quality variations and refine reservoir description. 5) Fit-tbr-purpose well trajectory and completion designs to match reservoir description (horizontal/dual target wells and TSO fracturing). 6) A single well tracer test provided key in-situ reservoir parameters in a timely manner that allowed for impact on development plans. 7) Investment in reservoir description led to significant changes in the &velopment plan. 8) Proactive surveillance leads to accurate decision-making, innovation and opportunity. Acknowledgements The authors would like to ti'tank the management of' BP, Exxon Mobil and Phillips tbr permission to publish this paper. We would also like to acknowledge the contributions of staff in Exxon Mobil, Phillips and BP who have worked on developing Aurora over the last 3 years. Specific thanks to Frank Paskvan for reservoir modelling and initial development planning, Gary. Molinero 'for geophysical interpretation of the structure, Ray Eastwood for developing the Aurora log model, and Bruce Weiler tbr facility planning, References l.. Bloys, J,B,, Murphy, J., Weingarten, J.S., Wheatatl, ~'Drilling and Completing 'Wells for High Productivity in the Point Mclntyre field: Strategy, Implementation and Verification", SPE 30461presented at the Annual Technical Conference, Dallas, TX, Oct., 1995. 2. Behrmann, L.A., "Undcrbalance Criterita for Minimum Formation Damage", SPE 30081 presented at the SPE European Formation Damage Conference, Hague, Netherlands. May, 1995. 3. Pospisill, G., Lynch, K.W,, Pearson, C.W., and Rugen, J.A.: "Results of a Large-Scale Ref'racture Stimulation Program, Kuparuk River Unit, Alaska," SPE 24857 presented at the Annual Technical Conference, Washington, D.C., Oct., 1992, Nomenclature Bopd :-' stock t~mk barrels q/'oi/ per day EOR = enhanced oil recovery GOfl .= Gas oil ralio Ky/Kb = r'alio q/'verzical lo horizontal permeabi/iO: koil =. Permeability, lo oil mdrfi = mi/lidaro'-jke~ ()OIP = Original Oil in Place RFT = Repea~brmation tcsler SI Metric Conversion Factors Bbl x 1.587873 E-01 n'r~ Ft x 3.048 E-01=m Psi x 6,894757 E+-OO=KPa SPE 76739 NEW DEVELOPMENT CASE HISTORY: AURORA Appendix Figure 1: Location Map ~ KuParuk ~ Non Kui:)~ruk Figure 2: Top Structure I ! Reservoir Properties Deposition Shore face GOC 6631 - 6678 tvdss '.. OWC 6812 - 6835 b/dss "OOIP 110-140 MMBO GOIP 50-75 BSCF Permeability 10 - 150 md Ky/Kb .001 - 1.0+ Porosity 16 - 25 % # Wells17-25 8 J P YOUNG. F E, BAKUN, F K PASKVAN, E. H WESTERGAARD SPE76739 Figure 3: Type log 2001 AURORA-BOR~.ALIS RESERVOIR DESCRIPTION AUI~OI~A TYPE LOG V-200 Figure 4: Stratigraphic Framework ~ C3c Proximol Lowec ~ C3b .! Distal Lower I ..... :.::: .- :.< C%', ~ Tr~n,s~tional Shelf 175 C-1 Cl.,' Lower Shore lo. ce ~iddie 5hor'el~ .... ,, ............ ,, ~,~~,-~ SPE 76739 NEW DEVELOPMENT CASE HISTORY: AURORA Figures 6a and 6b: Pattern Reconflguration and S-107 Well SE 10 J, P, YOLING, F, E. BAKUN, F K. PASKVAN, E H, WESTERGAARD SPE 76739 Figure 7: Perforation Skin 100 ............ u. 10 Aurora Perforating results ........... ~ '"" ~ ' ..... ; :".Z" :~I0~ ~l~$'cmt ~r~ . ' '"""'~--"t lextreme UB required for lower -' ' ~ . perm Skin In'Creases with sub-optimal underbalanc'e~,':'i,i..''' . :'i ..... .... < ~'i;'.; .i ,':: :.:! .i',.. · _ '.,.-...'.:,!.,,..:::.,.,,. _ ...... ~ .~..~ :..: ,;. 10.000 1,000 Skin calm from Tesl ~. Underbatance, psi · ""'"'""-SPE30081 UB for Oskin, BereaSS I t 0 · IOO 1 ,oo0 Fm. permeability, md Aurora Hz vs. Frac Well results 3.0. I __ , 2.5 . Ii.. [ ,~. S-102 Heel Fmc 0.0 0 200 400 600 800 1000 1200 140.0 1600 Effective Horiz. Length in Pay .--or-~ Frac 1/2 Length (tt) AURORA REPRESENTATIVE WELL PRESSURES Attachment 4 Categor y Description 4 Unstable stad0 5 Fluid level 6 Bad measurement AREA WEST ,WEST iWEST' WEST WEST. TEST RESULTS WEST' Well Good Name Test Date , P_datum S-101'"i.."28~No,z-00'."' · 3432.',. "8;:I02.'.. ':' ........ ~'1 ;D."~d+(JO;';::; ..'..'::{3375.' :-';"::. :s_10o:. '.' '01-1~1'ar201"' i.2809':,.: s-1'02 09:Ma'r,-O 1 ... 303'2'" ...' S-1'0'1: .'. '." .. '. lo'APr-01 ':' "..3080.'., 's- 1,00'~'.' ..'05;M ~y;0 ;i' · '27'7'~1:'..' TEST DETAILS Cate Pres SI, ~resType gory Datum HRS P* Comments ~.n: ".." '. · '~: '.' ~:.',~3~,.:..:' ...'.?.; '~¢....: ..i. ii.:.' "...'.'i ~'"~.. · ii4~:'.'-~": ":'..'~"~ ~:i:":"..'. :'.'~'.::.:. '.'.." ".:"" "..~"~aa ;'.o.~3o&'~/, :=.....', ", ..... .'.:.: .,' ...'".-':':..:..:::' · PBU . 3 ' .2809: '42 '.3123 P"flatat,42hSt .. . . . . . ~BU' 3 2946 268 3'032 P*=3032psi'atdatum ' ' ' BHp .... 2 "3080 .. 259, ."3080 Grad =0..341 psi/ft SBHP" 2 ' .' ' 2~7i 72 · '277i init/a! Pressure Static Sur~ey; Grad = 0.45 psi/ft WEST S-106 15-J'un-01 BAD 6 3643 Grad=0.45 psi/fi; unstable, dropp_ed 4.5 psi in 45 Tin ................................... ~ ..~, ......................... :..:...,.......~,....~,..... ,.... ,.~...:.-.., ...-., ,?=~ ~..,.,..=- .............. .--.-.:. -.. ...~ ~-.....~ ..!,.: ~~-.~ ........ · .......................... ~.,~ .............. ~.~-., r-' ............... · '--. ............................... .' ·. .................. WEST '. S;"1'.02.' ",i-....1 l'.'.:.~ul;0.;l.'., ". 27.36.. SBHP.. · '2., :. ,..2736....,.. !.88 · 27~36. ;'.: . ....... . WEST 'S;1:,06'.'"','.,i"' :".'.2';i:;~i~l .'i,.;i ',3.;21'.7..'3',..:...:. :SBH.P ... ' 2' :..'., 3273 .,' '.99.. '327S' G;ad = 0.~37; psi/ft." ' WESTi.'."S-:lO,l:"'.':'.....~:',O.];;,s:ep,.Ol?".'".'.2898:'"':'.'"~'~HP:' "... '2 ".':" .~¢~.';:'196.;.".' 28~8:'take:r;.~r~'o;.ioW~L.' '"'. . '.i' ' "' WEST S-102 20-Sep-01 2801 WEST .....$-.100' '.."23!sePiOi'.....'. 2Z'?~.... WEST'.s-106'". 17:NOV'-O1.." 2955. '" WEST S-102 08-Dec-01 2721 WEST...S: .!'.02 ...: .: .: .; ;17 ~.~;:e:o.~0 il ......:' :. 25~0.:.': :::::;: WEST" S-100 .... 2'6-D:e~:0'1 ': 26'83'" WEST S-102 27-Dec-01 2623 WEST. St1'01: . '14,Jam02 .: :" '. 2865. .'i wEST S-106 0g-Feb-02 2267 WEST S-102 12-Feb-02 2731 WEST S-100 10-Apr-02 2734 WEST S-102 10-Apr-02 2711 WE'ST.,.s':.i.0:7· .' "14..'Apr,:02 ..'. 2896 WEST' S-107 "'"09'-I~I~Y-O.2' 2810 WEST S-100 21-Jul-02 2749 WEST S-100 26-Sep-02 2683 WEST S-102 26-Sep-02 2593 WEST S-106 26-Sep-02 2360 USBHP 4 2389 114 2,801 4psi/hr build s.~.... ~ .:: ... .. psi/ft SBHP · 2 '2955' ' 4'18" 2955 Grad = 0.441 psi/fi; initial Survey USBHP 4 2267 72 2,721 6psi/hr build SB~'.i: 2.': :2~'0';: ;:291". ~530::'~BiL,~:i':G~=:O~P. SiicTi. SlTP=196~2 SBHP . · 2' 2683 201 ' 2683 Gra'd = 0.328 psi/ft FL 5 2361 579 2,623 LG=.368 GG=.07 200psi BELOW SBHP 'isPFo 3 3253 30 2953 I'.4DH ana:ys's, I000' I.:c;,ndery. Pba'=2865 '"~":""""":'": "~ "' "","' ' ': ' ~'~ ' ' D '~ ~ P' '~' m - H r" -- ~'~ ' '7 ,~.~'~',"1 i Si~HP ' ./. 3312 33 ,' INIT'A-. : R=S"*q... ".: .. I .-~:,re Gra,, e ,. - ,.,~4 ...... FL 5 2267 219 2,267 LG=.31 GG=.07; Interp FL at 6377ss USBHP 4 2286 80 2,731 6psi/hr build FL 5 2734 192 2,734 LG=.368 GG=.08 FL 5 2335 168 2,711 LG=.368 GG=.07 !SBHp 2896 64 2896 Grae = 0.493 ~)si.ft; ,hi:ia! S,.,rvey. % p.'cr .7od.~c,,on SBHP 2810 86 2810 G-ad = 0.518 ps:if: ; FL 5 2749 450 2,749 TBG FL for SBHP. TBG FL @ 10084'; FL 5 2683 240 2,683 Tbg FL for SBHP; FL 5 2249 240 2,593 Tbg FL for SBHP; iFL 5 1946 240 2,360 LG=.368 GG=.07 (should be 20'34) iSPFO 3 .. 3350 ... 29 '.3055 MDH.analysis~ 500~ xE~ boundary.reduces Pbar 125psi sEC. S4110.'"' .'13.L'Feb+02 "'"3.1.1.i. ': '[Ps'u ''3' 2596 · '57 311~ P*=3111'a'tdatum ' ' SEC S-108 10'Apr-02 3017 [FL 5 264~ ~68 3,0~7 LG=.368GG=.04 SEC S-110 10-Apr-02 2236 [FL 5 1729 120 2,236 LG=.368 GG=.03 INADEQUATE SI TIME [SEC .... s-i08 .... 26'S~p~02 ...... 2370' [~b ...... 5 .... 2~2~ 240' 2',s~0'TbgFb'~orssRP; ............ ~NoC":': "":~;~0~'"~": .:' :. "3 ~':;:~,~;~:-0:~ '.'" ':':: ~,~'o.:....:::'.l~..,','. '"~' '".='."". ":"';;;~'.""' ~'~: '"'.~;~0: ~,~';'0';'~Z¢ p..,,;; '".' ':.."' '" .... · '"" .... NOC".:'...S..103"'. '. 0d.~¢:r~0'~::'t"'"."~3'58'.':' 'p%' ' "S' "SS~'. 58' '"~sS~'.~;~'d = a':sz7.~/, ' ' ' ." ' NOC S-105 12-Jun-01 3350 NOC S: 105 i.'~'~'p=01 .. NOC.. S-103' '20~SeP;0!,'.. 3122.. NOG. ' ,S-'103 .... o7(Ma'r,'O2 ..... NOC. '..S-t 03 ....'...07..Mar. r:0.2' · ..3221'. NOc S-104 1.1-Apr-02. 3139 '. NOC S-105 26-Sep-02 2819 NOC ::SL:104:,':O8:;MaN:03': 2:900 Crest S-115 26-Mar-03 3420 USBHP 4 3279 677 3,527 ROSE 3.2PSI/HR, Corrected to Pi from S-104 RFT SBHP.. .2 '312~ :26 ' 3122 ?BU" 3 3043 14 3341 P'=3626psi, Pbar=3341 a: gaJge depth 'SBHP. 2 322! -"4 322'., Grac ~- 0.508 psi/f'. SBHP 2 3!39 83 3139 .")a'.u'n Pressure '¢easL,red ::: ; FL 5 2475 240 2,819 Tbg FL for SBHP; 'i~.PFo:' 2700 MD~':anal~~is.~ ii,rOe a~a,;~b~r_-2900, USBHP 4 3074 42 3,578 ROSE 6PSI/HR, Corrected to Pi from S-24A RFT nl~.nchorage Daily News Affidavit of Publication 1001 Northway Drive, Anchorage, AK 99508 417/2003 AD # DATE PO ACCOUNT 760133 04/04/2003 02314041 STOF0330 PRICE OTHER OTHER PER DAY CHARGES CHARGESg2 $219.96 $219.96 $0.00 $0.00 OTHER OTHER OTHER GRAND CHARGES#3 CHARGES#4 CHARGES#5 TOTAL $0.00 $0.00 $0.00 $219.96 STATE OF ALASKA THIRD JUDICIAL DISTRICT Kimberly A. Kirby, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. ~h_at said newspaper has been approved by the Third Judicial k, ourt, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in . . ' Anchorage, Alaska, and it i:.~ now and during all saidtime was . printed in an office maintained at the aforesaid place of publication of said newspaper. That 'the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was re ularl distributed to its subscribers g Y during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Subscribed and swor~to 5pc 'before this date: Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska MY COM~,MIBS~N EXPIRE~: ' / ~ ;.,'* .. = =;.". Notice of Public Hearing ,,, ' "~ STATE OF ALASKA ,, AiaSka Oil and Oas Conserva'tJ°n commission .Re: Proposec' .','"',':';~! ~[ vcr..~e.-V;tf;q Order N0.,45'~ · 1,,: ~a~r v'(~" I~,~' ~',t;:~," e.{' :,)~' ' '.'"?"',1 J:;~ LI.t'~'"',." '~ ~(~ ~ ?I'~''~'''';'':;':~ (.~'~h" ~.:: .":; IIu:l IIIO~ ~',.(:""' tli~ %'{:" '1"~. rC."~ · ('" t:f'.'. ~ ',.. < :..~,,,.,;' ' ..... ' I;'" .... ~ :, ~ :..:., v .: I ' hi. : F t: ':.'e~,:er ~,J ..... ~, ': , .. ....,., ,, (t:, .,,' I..~ :' ,.;,~ ~,,:..;;. '.'.:.. '.'.": .,;; Ic, r ;" {J:: '.:" ;,t' ,, e..:l~;.,'J ( · ~ ;,: I'., I:,,' ~.~'. l'. :'l,,~ ~.,,..j.,i., ij~ : e. ~:;:',,l:l."l .'.';l'l'" ~"'. 4/~;....... . ;...:;: . io. ,, Il' I~ .l.,r , . ' ......... .., I .~ .... · ;::: .~:,, v ~.., .~ .,' :," ,'e,,..r. :'=' ;t,,,~.,,., :'~ "'",~'J t,~.'..r','c a,,., "; ~ e~.;,,[ e those[ :~ rem:,r:e..t~e'I '~ '' , .....,, .:.., ,., ; ~ . .t,.. :;e.,,~',% ,'1,' ~ :~: '. .... .:,, ".. :.'.,:...., .... .,.,,::,, ::.,:. :,.:: :... · ' ,:..I.,,,.t":";:.",,.I. ;,"",~","~;I Lll('~'l ?l',;~ .~ " .... ~ ', '.','..'.' '?" r',' ¥'";"'~':' ,'...';n~intained abova 2700 psi; .~,,,, ~,, ,. :~ ,..~ ,,.:.,,. ', ,.."~,~,,~'?, ;.=.:.,,2L:,~;..:.'~?~~ ,?~,S I .'reservoir :,, ,:~. : .... ;':.,' m:'~ ~.~,:. :~ .. I:: ........ .'~ ~'],. ".,' .': , f:~ ] ,;,' ',Tu,';J,'r J 'l ' ' ' " '" ~' ' I'~ ' ,,~, '., IP :~; .[) !' rlJt% r ~..'" i: m.: .... .':., ~ ~:':'2 t:' ",'." ::.;:.. :: {p,., :.. ...,. .~...::,iC heacing, Please':; .::. " . . . .' .' .: ' .;": :.ch~i~, Al~'S.ka Oita'nd Gas .: :~....... ' . ConServation COmmission RECEIVED APR 1 1 2003 Alaska Oil & Gas Cons. Commission Anchorage STATE OF ALASKA ~ NOTICE TO PUBLISHER i'~'~ ADVERTISING ORDER NO. ADVERTISING ~NX~,,~ MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER'X ,,o., CERTIFIED ~:F,D^V,T OF PUBL,O^T, ON I..~. 2 Or TH,S ~O.MI VV,TH ^~^C.E0 CO~ OF AO'0231 400.1 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7th Avenue, Suite 100 Judy Colombie Aoril 3, :2003 o Anchorage, AK 99501 PHOI~E PC'N M - (90% 793 -1221 I~ATE~ ADVERTISEMENT REQUIRED: T Anchorage Daily News April 4, 2003 o P O Box 149001 Anchorage, AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account #STOF0330 AFFIDAVIT OF PUBLICATION o ^m .ca REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMI'I-I'ED WITH THE INVOICE. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2003, and thereafter for __ consecutive days, the last publication appearing on the __ day of ,2003, and that the rate charged thereon is not in excess of the rate charged pdvate individuals. Subscribed and sworn to before me This day of 2003, Notary public for state of My commission expires .... 02-901 (Rev. 3/94) AO.FRM Page 2 PUBLISHER Re: Notice Subject: Re: Notice Date: 03 Apr 2003 16:05:36 -0900 From: Legal Ads Anchorage Daily News <legalads~adn.com> To: Jody Colombie <jody_colombie~admin.state.ak.us> Hi Jody: Following is the confirmation information on your legal notice. Please let me know if you need anything further. Account Number: STOF 0330 Legal Ad Number: 760133 Publication Date (s): April 4, Your Reference #: AO-02314041 Total: $219.96 2003 Thank You, Kim Kirby Anchorage Daily News Legal ClassifiedRepresentative E-Mail: legalads@adn.com Phone: (907) 257-4296 Fax: (907) 279-8170 On Thursday, April 3, 2003, Jody Colombie <jody_colombie@admin.state.ak.us> wrote: > >Please publish in tomorrow paper if possible. > >Thank You. Jody 1 of 1 4/3/2003 4:05 PM STATE OF ALASKA_i.'_ ~ NOTICE TO PUBLISHER _,--~ ADVERTISING ORDER NO. ADVERTISING ~NV~UST BE IN TRIPLICATE SHOWING ADVERTISING ORDER ,~I~.ERTIFIED AFF,o~ OF .~,~,0. ~.~ O~ ~,S ~o~ w,~ ~C.~ CO.~ O~ A0-02314041 ORDER ADVERTISEMENT MUST BE SUBMI~D WITH I~OICE F AO~C AGENCY CO.ACT DATEOFA.O. a 333 W 7~ Ave, Ste 100 Jody Colombie April 3, 2003 o ~chorage, ~ 99501 ~o~ - (9073 793-1221 ~ ~chorage D~ly News April 4, 2003 o P O Box 149001 ~chorage, ~ 99514 m~ ~m~ ~~ ~a~ ~o~ u~s MVS~ ~ m~o ~ I~S ENTI~ ON THE DATES SHOWN, SPECIAL INSTRUCTIONS: Accost ~STOF0330 Adve~isement to be published w~ e-m~led Type of Adve~isement X Legal ~ Display ~ Classified ~Other SEE ATTACHED PUBLIC HE~NG ~'.'~,,.,[~~..~"~~*~:~*~:~,,~;~,[ ~chorage, AK 99501 12 PAGES REF ~PE NUMBER AMOUNT DATE COMMENTS ,, 1 VEN .... 2 ~ 02910 3 4 FIN ~OUNT SY CC PGM LC ACCT ~ NMR DIST LIQ 1 03 02140100 73540 2 3 REQUISITIONED BY: IDIVISION AP~L: ,,, .... 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Proposed Amendment of Conservation Order No. 457 (Aurora Oil Pool, Prudhoe Bay Field) and Proposed Revocation of Conservation Order No. 98-A (Prudhoe Bay Kuparuk River Oil Pool, Prudhoe Bay Field) The Alaska Oil and Gas Conservation Commission on its own motion proposes to amend Conservation Order No. 457 and to revoke Conservation Order No. 98~A. Among the changes to Conservation Order No. 457 that the Commission may consider are: 1. adding a definition of the Aurora Oil Pool, which is currently contained in Conservation Order No. 98-A; 2. revising Rule 4 to recognize the applicability of the PBU Westem Satellite Production Metering Plan, for allocation of production, well test frequency, and reporting requirements, as adopted within Conservation Order 471; 3. revising Rule 5 to require wells S-100, S-102, S-105, S-106, and S-108 to be temporarily shut in for reservoir pressure measurements, to require those wells to remain shut in if the pressure is below 2700 psi, and to require the submission for Commission approval of a plan for water injection, repressurization, and enriched gas injection; 4. revising Rule 7 to provide for approval of a waterflood program and to require the reservoir pressure to be maintained above 2700 psi; 5. revising Rule 8 to require submission for Commission approval of a reservoir depletion plan that provides for reservoir repressurization to a level that will allow for future miscible gas injection and will ensure greater ultimate recovery under waterflood. A public hearing on this proposal will be held before the Commission at 9:00 a.m. on May 8, 2003, at the Commission's offices, 333 W. 7th Avenue, Suite 100, Anchorage, Alaska 99501. If you are a person with a disability who may need a special modification in order to attend the public hearing, please contact Jody Colombie at 793-1230 no later than April 30, 2003. Sarah Palin---~ '~ Chair, Alaska Oil and Gas Conservation Commission Published Date: April 4, 2003 ADN AO # 02314041 TONY KNOWLES, GOVERNOR ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 PORCUPINE DRIVE ANCHORAGE, ALASKA 99501-3192 PHONE: (907) 279-1433 FAX: (907) 276-7542 January 23, 1998 John R. Denis PBU New Business Development BP Exploration (Alaska) Inc. P.O. Box 196612 Anchorage, AK 99519-6612 Dear Mr. Denis: Commission staff have reviewed your January 15, 1998 applications for exception to the provisions of 20 AAC 25.055 for the NWE 1-02, 1-03, and 2-01. These pool delineation wells are to be located in the Prudhoe Bay Field, Kuparuk River Oil Pool. Conservation Order No. 98-A defined this pool and established well spacing requirements (Rule 2) for initial development drilling. The locations of the proposed wells appears consistent with the spacing requirements of CO 98-A. A variance from the spacing requirements of 20 AAC 25.055 or Rule 2 of CO 98-A is not required for these wells. SO Chairman J°hnst°n~ From: Stu Hirsh To: Bob Crandall Date: 1/21/98 Time: 8:57:16 AM Page 2 of 2 BP EXPLORATION BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 January 21,1998 David W. Johnston, Chairman and Commissioner Alaska Oil and Gas Conservation Commission 3001 Porcupine Ddve Anchorage, Alaska 99501-3192 Withdrawal of Request. fqr....Exception to. the Pr;ovisions of 20.AAC 25.055 for the. NWE 1-02, 1-03 and 2-01 Wells Dear Chairman Johnston: BP Exploration (Alaska) Inc. ("BPX') recently requested spacing exceptions for the above cited welis within our NW Eileen project area. After discussions with Bob Crandall and Jack Hartz of your staff regarding their interpretation of Rule 2 of Conservation Order #98A, BPX agrees that the three requested exceptions to 20 AAC 25.055 we previously requested are not required since there are no lease ownership changes between the spacing unit upon which the wells will bottom and the cornering and contiguous spacing units for each well. Since we agree with Commission staff that exceptions to 20 AAC 25.055 are not required for the three subject wells, BPX hereby withdraws its spacing exception requests, Please indicate your concurrence with the interpretation of BPX and Commission staff in these matters by signing in the space provided below and returning a copy of your concurrence to Stu Hirsh at our letterhead address. Sincerely, J. R. Denis, Team Leader PBU New Business Development Col3cur; Alaska Oil and Gas Conservation Commission by: David W. Johnston Date From: Stu Hirsh To: Bob Crandall FACSIMILE COVER PA~~' To · Bob Crandall Sent · 1/21/98 at 8:57:16 AM Subject · Date: 1/21/98 Time: 8:57:16 AM From · Stu Hirsh Pages · 2 (including Cover) Page 1 of 2 Bob, Here is the letter we discussed. Please fax me back a signed copy to me at 564-5009. Thanks, Stu BP EXPLORATION BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 January 15, 1998 David W. Johnston, Chairman and Commissioner Alaska Oil and Gas Conservation Cornmission 3001 Porcupine Drive Anchorage, Alaska 99501-3192 RECEIVED ,~A~ 16 1998 Naska 0il & Gas Cons. Commission Anchorage Request for Exception to the Provisions of 20 AAC 25.055 for the NWE 1-02 Dear Chairman ,Johnston: BP Exploration (Alaska), Inc. ("BPX") hereby applies for an exception to the provisions of 20 AAC 25.055 for the drilling of the NEW 1-02 Well (the "Well"). Relevant location data for the Well is as follows' (1) Surface Location: 2612 ft. FSL, 1642 ft. FWL, Section 34, Township 12N; Range 11 E, UM on ARCO/Exxon oil and gas lea. se AD[.028239. (2) Bottom Hole Location: 0622 ft. FNL, '193-5 ft. FEL, Section 34, T12N, ' R11E UM on ARCO/Exxon oil and gas.lease ADL028239. (3) Total Depth: 7015 ft. SS TVD The owners and operators of all' governmental.quarter sections directly and diagonally offsetting the proposed location of the Well are ARCO AlaSka, Inc, and Exxon Corporation. 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 notifications to the owners and operators, as well as the required information with respect to mailing are attached in the package, designated as Exhibit 3. If you have any questions or require any additional information, please contact the Stu Hirsh at our letterhead address or at 564-4841. Sincerely, J. R. Denis, Team Leader PBU New Business Development BP EXPLORATION EXHIBIT A BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 January 15, 1998 ARCO Alaska, Inc. Exxon Corporation Attn: Dallam Masterson, Exploration Manager Attn: Raul Huerta, Manager P. O. Box 100360 Alaska Interest Organization Anchorage, AK 99510-0360 P. (3. Box 2180 Houston, TX 77252-2180 Gentlemen' Notice of Request for Exception to the Provisions of 20 AAC 25.055 NWE 1-02 Pursuant to the requirements of 20 AAC 25.055 (b), BP Exploration (Alaska) Inc.. hereby gives notice of a request to the Alaska Oil and Gas Conservation Commission for an exception to the spacing requirements of 20 AAC 25.055 (a) (3). BP Exploration's request, if approved will permit the intersection of the wellbore of the captioned .well.with the. top of.the Kuparuk formation within 500 feet of the governmental .spacing .unit :in which the well will .be"bottomed. Specifically, the intersection point applied for will be'as follows: 0622 feet from the north line and 1935 feet from the east line of Section' 34, Township 12 North, Range 11 East, Umiat Meridian A copy of the request is attached. Very truly yours, J. R. Denis, Team Leader PBU New Business Development EXHIBIT 2 VERIFICATION OF APPLICATION FOR SPACING EXCEPTION NWE 1-02 Floyd Hernandez, Drilling Engineer in the BP Exploration (Alaska) Inc. Shared Service Drilling Department, does hereby verify the following' 1. I am acquainted with the facts associated with the drilling of the NWE #1-02 Well. 2. I have reviewed the application submitted for the exception to 20 AAC 25.055 and all 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 \"~ day of January, 1998 STATE OF ALASKA THIRD JUDICIAL DISTRICT SUBSCRIBED AND SWORN TO before me this I~'J~day of January, 1998. NOTARY PUBLIC, IN AND FOR ALASKA My Commission Expires MyCommi~ F. xpires March 12, 2000 EXHIBIT B TO THE ALASKA OIL AND GAS CONSERVATION COMMISSION Before the Commissioners of the ) Alaska Oil and Gas Conservation ) Commission in the Matter of the ) Request of BP Exploration (Alaska)) Inc. for an Exception to the ) Provisions of 20 AAC 25.055 ) AFFIDAVIT OF MAILING OF NOTICE STATE OF ALASKA THIRD JUDICIAL DISTRICT SS, Rachel Fletcher, being first duly sworn, upon her oath, deposes and says: I am a citizen of the United States of America, over the age of 19 years, and employed as a secretary for BP Exploration (Alaska), Inc. That on the fifteenth day of January, 1998, I sent true and correct copies of J. R. Denis' January 15, 1998 Notice of Request for Exception to the Provisions of 20 AAC 15.055 via United States Registered Mail, to: Chevron U. S. A. Inc. Attn: Wade Fennel P. O. Box 1635 Houston, TX 77251 - 1635 Mobil Alaska E&P Inc. Attn: Jeff Hollier 12450 Greenspoint Drive Houston, TX 77060-1991 DATED at Anchorage, Alaska, this Rac'h'i'el Fletcher SUBSCRIBED AND SWORN TO before me this i.J~day of January 1998. My Commission Expires: t~'~ommissfon Expires March 12, 2000 NW EILEEN APPRAISAL WELLS LOCATION MAP b-RFA OO^T O. '~ / '"~;'}'~.:; ~// :'; ~ ~ '. :: ~ ~ ';~ ~:~'~:IN~2-01 J 570682 598~ C,,x_j ~. ;..:. :.~'~-~ - :.' T-'-._: [ . E~A~.~ ~ ,~. ' ...... : ........ ;. ~ ~ :-4 ': '-~ ~ .. ~ :: 2.'...h _ ~'~ ~ F '~c',, '-¥,::'~ ~' ,. ~ ~ ) ~ ~.'.:. -- ' .,:.: ~,'E.: '0 E ! . -'.-.--: ~-' >'E:' '=~.. /U,'~, ~, ~ ~ ~ ._ ~ · ;, . '~ "~, ~"E :~ .>~ : .~,-. ~: :'~- ~ , -- II ". () ,.' - ~: :,~ '-', '- ~- ~--~ ~ ,*~ - ~ --~ I ~ :'~ ~ 0~ '~ - ~ ~.- L ~-'-. . ~.' ' ~. ~ ~ : . ......... ~ ~ ~ ~._., : '~ ~ '- 7: .~ -- ~,,::', '~ /~ ................................ ~ ~ . ~ .~.:~.':-~ / h ~ ,.~ ~ .. ~ , ~ .: /,, ~ .... o ..... ~_ , / ........ 11 '~'~ ....... ' " 3719.DGN EXHIBIT 3 TO THE ALASKA OIL AND GAS CONSERVATION COMMISSION Before the Commissioners of the ) Alaska Oil and Gas Conservation ) Commission in the Matter of the ) Request of BP Exploration (Alaska)) Inc. for an Exception to the ) Provisions of 20 AAC 25.055 ) ) AFFIDAVIT OF STUART H. HIRSH STATE OF ALASKA THIRD JUDICIAL DISTRICT SS, Stuart H. Hirsh, being first duly sworn, upon oath, deposes and states as follows: 1. My name is Stuart H. Hirsh. I am over 19 years old and have personal knowledge of the matters set forth herein. 2. I am a Senior Landman for the well operator, BP Exploration (Alaska) Inc. 3. Pursuant to 20 AAC 25.055 (b), BP Exploration (Alaska) Inc. (BPX), the well operator, prepared a Notice of Request for an Exception to the Provision of 20 AAC 25.055. A copy of this notice is attached hereto as Exhibit A. 4. On january 15, 1997, pursuant to 20 AAC 25.055 (b) BPX sent a copy of said notice by registered mail to the last known address of each owner and operator of governmental quarter sections directly and diagonally offsetting the quarter section of the proposed location of the oil well. Attached hereto as Exhibit B is an Affidavit of Mailing of Notice. Subscribed and sworn to this /~'?/"~ day of January, 1998. STUART H. HIRSH STATE OF ALASKA ) ) THIRD JUDICIAL DISTRICT) SS. SUBSCRIBED AND SWORN TO before me this /~day of January, 1998. ~..' '-.~;~ -= o: NOTARY :.~_= ~.-.. PUBLIC ...' ~.~ % % ...'-~ ~ %~;~ .... ...:.;~{~ My Commission Expires _1~., C~i.~i~ Expires March 12, 2000 BP EXPLORATION BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 January 15, 1998 RECEIVED David W. Johnston, Chairman and Commissioner Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501-3192 JAN 1 G 1998 Alaska 0il & Gas Cons. Commission Anchorage Request for Exception to 'the Provisions of 20 AAC 25.055 for the NWE 1-03 Dear Chairman Johnston: BP Exploration (Alaska), .Inc. ("BPX") hereby applies for an exception to the provisions of 20 AAC 25.055 for the drilling of the NEW 1-03 Well (the "Well"). Relevant location data for the Well is as follows: (1) Surface Location: 2633 ft. FSL, 1663 ft. FWL, Section. 34, Township 12N, Range 11 E, UM on ARCO/Exxon oil and gas lease ADL028239. (2) Bottom Hole Location: 010'4 FNL, 1926 ft. FEL, Section 2, T11N, R11E UM on ARCO/Exxon oil and gas lease ADL028240.. (3) Total Depth' 7070 ft. SS TVD The owners and operators of all governmental quarter sections directly and diagonally offsetting the proposed location of the Well are ARCO Alaska, Inc. and Exxon Corporation. 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 notifications to the owners and operators, as well as the required information with respect to mailing are attached in the package designated as Exhibit 3. If you have any questions or require any additional information, please contact the Stu Hirsh at our letterhead address or at 564-4841. Sincerely, wW J. R. Denis, Team Leader PBU New Business Development BP EXPLORATION January 15, 1998 EXHIBIT A BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 ARCO Alaska, Inc. Exxon Corporation Attn: Dallam Masterson, Exploration Manager Attn: Raul Huerta, Manager P. O. Box 100360 Alaska Interest Organization Anchorage, AK 99510-0360 P.O. Box 2180 Houston, TX 77252-2180 Notice of Request for Exception to the Provisions of 20 AAC 25.055 NWE 1-03 Gentlemen: Pursuant to the requirements of 20 AAC 25.055 (b), BP Exploration (Alaska) Inc. hereby gives notice of a request to the Alaska Oil and Gas Conservation Commission for an exception to the spacing requirements of 20 AAC 25.055 (a) (3). BP Exploration's request, if approved will perrnit the intersection of the wellbore of the .captioned well with the top of the Kuparuk formation within 500 feet of the governmental spacing unit in which the well will be bottomed. Specifically, the intersection point applied for will be as follows: 0104 feet from the north line and 1926 feet from the east line of Section 2, Township 11 North, Range 11 East, Umiat Meridian A copy of the request is attached. Very truly yours, J. R. Denis, Team Leader PBU New Business Development EXHIBIT 2 VERIFICATION OF APPLICATION FOR SPACING EXCEPTION NWE 1-03 Floyd Hernandez, Drilling Engineer in the BP Exploration (Alaska) Inc. Shared Service Drilling Department, does hereby verify the following: 1. I am acquainted with the facts associated with the drilling of the NWE 1-03 Well. 2. I have reviewed the application submitted for the exception to 20 AAC 25.055 and all 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 \~ day of January, 1998 Fioyd Fl~rnande~ STATE OF ALASKA THIRD JUDICIAL DISTRICT SUBSCRIBED AND SWORN TO before me this I~day of January, 1998. PUBLIC, IN ~~0~ ~LASKA My Commission Expires My Commission Expires March 12,2000 EXHIBIT B TO THE ALASKA OIL AND GAS CONSERVATION COMMISSION Before the Commissioners of the ) Alaska Oil and Gas Conservation ) Commission in the Matter of the ) Request of BP Exploration (Alaska)) Inc. for an Exception to the ) Provisions of 20 AAC 25.055 ) AFFIDAVIT OF MAILING OF NOTICE STATE OF ALASKA THIRD JUDICIAL DISTRICT SS, Rachel Fletcher, being first duly sworn, upon her oath, deposes and says: I am a citizen of the United States of America, over the age of 19 years, and employed as a secretary for BP Exploration (Alaska), Inc. That on the fifteenth day of January, 1998, I sent true and correct copies of J. R. Denis' January 15, 1998 Notice of Request for Exception to the Provisions of 20 AAC 15.055 via United States Registered Mail, to: ARCO Alaska, Inc. Exxon Corporation Attn: Dallam Masterson, Exploration Manager Attn: Raul Huerta, Manager P. O. Box 100360 Alaska Interest Organization Anchorage, AK 99510-0360 P.O. Box 2180 Houston, TX 77252-2180 DATED at Anchorage, Alaska, this SUBSCRIBED AND SWORN TO before me this ....?,;% '/////[~l ll'lt~~'' / ~'~ay of January 1998. Notary Public, State oF/A~'aska My Commission Expires: My Commission Expires March 12, 2O0O NW EILEEN APPRAISAL WELLS SURFACE LOCATION WELL X (ASP4/NAD27) Y (ASP4/NAD27) NWE 1-02 583276 5978335 NWE 1-03 583297 5978356 ., ," " : ."~ , :'. - :'~)' NWE 2-01 570682 5986606 , .,. .' ::; -i " ' . :... "'.i '- " ;:, ,.~ B~--'~' HOLE/T-~--"~ LOCATION :.'-."~'" ..' . .-~ 'i :' ' 'B . WELL I X (ASP4/NAD27) Y (ASP4/NAD27) [ TARGET . :._.::... ." ;. ..: ...... .":,i'.~ NWE 2-.01' ,: "'. ' ",:"::.' ~ NWE 1-02 584950 5980400 t KUPARUK :' ..'., ..... ..... ,.NWE 2-01+,~, _.. ,.. ' ' '" '":- ,'"':.,~'~' ..."?, ;" NVVE 1-08 590800 5975700 / KUPARUK '" ' .:ii'i," '"" ' ';: '" :"'1/'; ":.i'(';" ';',!:. ' ':T. , ' ,\. ';. ii NWE 2.-01 I 571080 I 59883,90 / KUPARUK ' ' ~ .... ~r. : ' 'i:.¢: ;':' ; ~ '"" ';i '?'''-t''' '''~';.i NWE 2--01' 571700 5988760 / IVlSHAK/SAG' RIVER .v ~,,.itll¢ ..... . ,, ~ ' ', ..' ~';.' '",, ' "', ~ ~ ~. i -- .~-,~ · i ., 'NVVE2-01".., ' , " ~ ' ," , ,. . '. ' ........ ~-'.' .: ' ................ ¢ ' -' ;" ,' ', ..... ",~ , , ,. ' - ~-' ", ~, *' ' ¢ ~* . ", ~ ,. , .;, :.~' ~" ......:i!i,'';, ;" '~?;:., ;'.~. .... (i.?' .... ".,"NORTHW,~ TEl EN 0 ,, -',, ...', ' , ', ...... , ----~,.- ' ' .., 1) , ...... ' ..... , \. -, 1f '~~~.., ;.::, ~ / ¢~,* i ~',t .; u ,,' ,,., '¥*..- ,,,'" ', ,,' L..~' .,-'",'; I .. ~ '~", h 1.~'~;:~:~ ..... :....,.... .~.:1 ,:', ,~ ,.,,.:, , ~ ~:,'..~,...:~ .,, 1: ?' %t'""~ ~:...,'~'~?~ ':..,.~ ~ ~' '~'~ ~ " ' ": r ..... ~ .... ,~ '.. k~ ', , % ~ ~ "' . ....... ,... ~ .t . ' .. ~ ~ , ....... . ¢ ......~ .................. ~ t 'e ~ . r ..... , ,, f ......" ..... ~, ~ :;,,.k..~? .... , .... ~.r' ~ .... , ~ )k,.*,,,/t '; ~ ~ ' "' " '~'. ~ * t "' 'k I ~'~ .......................... :, ..... .. ................. ................. .................. .....:: ...................... :..: .:. ................................... ,...... .............. V ~~.".;,~,,', ,,,,',', t ', ~ ~ c', ' ~ '., ',,,,' ',' ' ~ · , ......... ' :.' ~ : : ~., ,;,_ ...~.. :,? '~, .,.,, ~.~/ 1 ,,~,: ....... .. .... ...,.,.:,,,.,,,,...~ ..~ . ..:,~.,: .... :,.,....... :......:. . l( WEST SAK 24A RUK . . WESTSAKa~'~m~ ~' ,; i~ ~ "~- . ~- ~ ~.. t ~KUPCRUK '~.' -'""( ' ~--~1 0 1500 a000Feetl '"" ""' ~ ."1' ./ .,~ ' 2~ U' ~" t STATE08~;~I '.,-')'..{"?' '.','.': ': . ~ : ,:,: .,~ ," ~ 'I~" " · ~:1,, I~~1':":.':,'"': ' BS13719. DGN EXHIBIT 3 TO THE ALASKA OIL AND GAS CONSERVATION COMMISSION Before the Commissioners of the ) Alaska Oil and Gas Conservation ) Commission in the Matter of the ) Request of BP Exploration (Alaska)) Inc. for an Exception to the ) Provisions of 20 AAC 25.055 ) ) AFFIDAVIT OF STUART H. HIRSH STATE OF ALASKA THIRD JUDICIAL DISTRICT SS, Stuart H. Hirsh, being first duly sworn, upon oath, deposes and states as follows: 1. My name is Stuart H. Hirsh. I am over 19 years old and have personal knowledge of the matters set forth herein. 2. I am a Senior Landman for the well operator, BP Exploration (Alaska) Inc. 3. Pursuant to 20 AAC 25.055 (b), BP Exploration (Alaska) Inc. (BPX), the well operator, prepared a Notice of Request for an Exception to the Provision of 20 AAC 25.055. A copy of this notice is attached hereto as Exhibit A. 4. On January 15, 1997, pursuant to 20 AAC 25.055 (b) BPX sent a copy of said notice by registered mail to the last known address of each owner and operator of governmental quarter sections directly and diagonally offsetting the quarter section of the proposed location of the oil well. Attached hereto as Exhibit B is an Affidavit of Mailing of Notice. Subscribed and sworn to this / ~"d, day of January, 1998. STUART H. HIRSH STATE OF ALASKA ) ) THIRD JUDICIAL DISTRICT) SS. SUBSCRIBED AND SWORN TO before me this I~"'~day of January, 1998. My Commission Expires: ;.fyC, c.,--.¥,is,sion Expires March 12, 2000 BP EXPLORATION BP Exploration (Alaska) Inc. 900 East Benson Boulevard RO. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 January 15, 1998 RECEIVED David W. Johnston, Chairman and Commissioner Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501-3192' JAN ] O Alaska 0D & Gas Cons. Commission Anchorage Request for Exception to the Provisions of 20 AAC 25.055 for the NWE 2-01 Dear Chairman Johnston: BP Exploration (Alaska), Inc. ("BPX") hereby applies for an exception to the provisions of 20 AAC 25.055 for the drilling of the NEW 2-01 Well (the "Well"). Relevant location data for the Well is as follows: (1) Surface Location: 0453 ft. FSL, 0284 ft. FEL, Section 19, Township 12N, Range 11 E, UM on Chevron/Mobil oil and gas lease ADL047446. (2a) Hole Location top of Kuparuk interval: 2233 ft. FSL, 0137 ft. FWL, Section 20, T12N, R11E UM on Chevron/Mobil oil and gas lease ADL047446. (2b) Bottom Hole Location top of Ivishak/Sag interval' 2597 ft. FSL, 0761 ft. FWL, Section 20, T12N, R11E UM on Chevron/Mobil oil and gas lease ADL047446. (3) Total Depth' 9150 ft. SS TVD The owners and operators of all governmental quarter sections directly and diagonally offsetting the proposed location of the Well are. Chevron U. S. A. Inc. and Mobil Alaska E&P Inc. 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. notifications to the owners and operators, as well as the required information with respect to mailing are attached in the package designated as Exhibit 3. BP EXPLORATION January 15, 1998 EXHIBIT A BP Exploration (Alaska) Inc. 900 East Benson Boulevard RO. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 Chevron U. S. A. Inc. Attn: Wade Fennel P. O. Box 1635 Houston, TX 77251-1636 Mobil Alaska E&P Inc Attn: Jeff Hollier 12450 Greenspoint Drive Houston, TX 77060-1991 Notice of Request for Exception to the Provisions of 20 AAC 25.055 NWE 2-01 Gentlemen: Pursuant to the requirements of 20 AAC 25.055 (b), BP Exploration (Alaska) Inc. hereby gives notice of a request to the Alaska Oil and Gas Conservation Commission for an exception to the spacing requirements of 20 AAC 25.055 (a) (3). BP Exploration's request, if approved will permit the intersection, of the wellbore of the captioned well with the top of the Kuparuk and Ivishak/Sag intervals within 500 feet of the governmental spacing unit in which the well will be bottomed. Specifically, the intersection point applied for will be as follows for the Kuparuk interval: 2233 feet from the south line and 0137 feet from the west line of Section 19, Township 12 North, Range 11 East, Umiat Meridian The intersection point applied for will be as follows for the Ivishak/Sag interval: 2597 feet from the south line and 0761 feet from the west line of Section 20, Township 12 North, Range 11 East, Umiat Meridian EXHIBIT 2 VERIFICATION OF APPLICATION FOR SPACING EXCEPTION NWE 2-01 Floyd Hernandez, Drilling Engineer in the BP Exploration (Alaska) Inc. Shared Service Drilling Department, does hereby verify the following: 1. I am acquainted with the facts associated with the drilling of the NWE 2-01 Well. 2. I have reviewed the application submitted for the exception to 20 AAC 25.055 and all 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 \~ day of January, 1998 Floyd Hernande~-"' STATE OF ALASKA THIRD JUDICIAL DISTRICT SUBSCRIBED AND SWORN TO before me this /~'/~day of January, 1998. N~O~TAR~y 'pu BL~iC, i~N AN O~~R ALASKA My Commission Expires ;,,'yCc.-r~i~-~.. ~J~lre$ March 12, 20(X) EXHIBIT B TO THE ALASKA OIL AND GAS CONSERVATION COMMISSION Before the Commissioners of the ) Alaska Oil and Gas Conservation ) Commission in the Matter of the ) Request of BP Exploration (Alaska)) Inc. for an Exception to the ) Provisions of 20 AAC 25.055 ) AFFIDAVIT OF MAILING OF NOTICE STATE OF ALASKA THIRD JUDICIAL DISTRICT SS, Rachel Fletcher, being first duly sworn, upon her oath, deposes and says: I am a citizen of the United States of America, over the age of 19 years, and employed as a secretary for BP Exploration (Alaska), Inc. That on the fifteenth day of January, 1998, I sent true and correct copies of J. R. Denis' January 15, 1998 Notice of Request for Exception to the Provisions of 20 AAC 15.055 via United States Registered Mail, to: ARCO Alaska, Inc. Exxon Corporation Attn: Dallam Masterson, Exploration Manager Attn: Paul Huerta,Manager P. O. Box 100360 Alaska Interest Organization Anchorage, AK 99510-0360 P.O. Box 2180 Houston, TX 77252-2180 DATED at Anchorage, Alaska, this SUBSCRIBED AND SWORN TO before me this l~"~"day of January 1998. . ~..." ...~ Uota~ Public, Sta~of Alaska ~'-~.' '.~ ~ My Commission Expires: 'O/lll~l~ll l~~' W,~ST 0 1500 3000 Feet ,' : I I I ,,~) BS13719. DGN EXHIBIT 3 TO THE ALASKA OIL AND GAS CONSERVATION COMMISSION Before the Commissioners of the ) Alaska Oil and Gas Conservation ) Commission in the Matter of the ) Request of BP Exploration (Alaska)) Inc. for an Exception to the ) Provisions of 20 AAC 25.055 ) ) AFFIDAVIT OF STUART H. HIRSH STATE OF ALASKA THIRD JUDICIAL DISTRICT SS. Stuart H. Hirsh, being first duly sworn, upon oath, deposes and states as follows: 1. My name is Stuart H. Hirsh. I am over 19 years old and have personal knowledge of the matters set forth herein. 2. I am a Senior Landman for the well operator, BP Exploration (Alaska) Inc, 3. Pursuant to 20 AAC 25.055 (b), BP Exploration (Alaska) Inc. (BPX), the well operator, prepared a Notice of Request for an Exception to the Provision of 20 AAC 25.055. A copy of this notice is attached hereto as Exhibit A. 4. On January 15, 1997, pursuant to 20 AAC 25.055 (b) BPX sent a copy of said notice by registered mail to the last known address of each owner and operator of governmental quarter sections directly and diagonally offsetting the quarter section of the proposed location of the oil well. Attached hereto as Exhibit B is an Affidavit of Mailing of Notice. Subscribed and sworn to this /~'~l/~ day of January, 1998. STUART H. HIRSH STATE OF ALASKA ) ) THIRD JUDICIAL DISTRICT) SS. SUBSCRIBED AND SWORN TO before me this /~-"~day of January, 1998. Notary Public, State of ATas"ka My Commission Expires: ,%' C~,T.~ission Expires March 12, 2OOO 11 12 13 14 17 18 2O 21 23 25 STATE OF ALASKA DIVISION OF NATURAL RESOURCES OIL AND .GAS CONSERVATION COMMITTEE HEARING PRUDHOE BAY FIELD RULES P ROCE EDINGS MR.- BURRELL: Good morning, ladies and gentlemen - one lady~ If anybody here can't hear me, please raise your hand. Okay. MR. VONDERAHE: Speak slower, Homer. MR. BuRRELL: Welcome to Anchorage to those of you from '. out Of town. My name ~s Homer Burrell. I'm Chairman of the Ala: Oil & Gas Conservation Committee. To my right at the end of the table is Mr. O. K. Gilbreth,..:,.wS~m is likewise a member of the Oil & Gas Conservation Committee and is Chief P~etroleum Engineer for the Division of Oil and Gas. To my left, immediate . left, is Mr. Tom Marshall who is the Chlef Petroleum Geologist of the Division of OKI & Gas and i's likewise a member of the Oil & Gas Conservation Committee. Starting at my extreme left have ~ at the end of this table ~e/Mr. Bill , Petroleum Engi- neer; Mr. Harry Kugler, ~Petr01~eum Geologist; Mr. Karl Vonderahe, Petroleum Engineer; Mr. JohnIe~~ Petroleum Geologist; to my immediate right is Mr. Bob~k§ ~from the Attorney General's Office; at the back table on the end w~e .have Mr.'Lonnie Smith, Petrole%~m Engineering. and Mr. JohnF~=, Petroleum Engineer, both with the Division of Oil & Gas. I have a couple of announcements to make before we start. . One is that the Jiffy Catering Service will be outside with a · AGO 100&1572 COURT REPORTER~ £i~HTH AVENUI~ -- ~UIT~ 277-4713 ANCHO~GE, A~8~ 99501 ~ka 10 11 lg 16 18 19 ~0 Page 2 :., truck full of coffee and doughnuts between ten-thirty and we can likewise get them back thiS' afternoon if we want them. Secondly, I've been adVised by several of. the companies in=ending to testify today that following the conclusion of the hearing, there will be copies of the prepared testimony and exhibits available for duly authorized members of the press just offstage. I think 'that covers the preliminary announcements. I 'd better read 'the official notice of the hearing here. This notic of this hearing is by motion of the Alaska Oil & Gas Conservatior. Conunittee to hold a public hearing to determine the pool rules for the Prudhoe Bay, Kuparuk River, and ~adlerochit Oil Pools, which expire March 12th of thi~ year. It states: notice is hereby given that the Alaska Oil · Gas Conservation Committee will hold a .public hearing pursuant to Title XI, Alaska Administm Code, Saction 2004~ on Febm.~uary 9, 1971, at 9:30 a.m. in the ~ydn~y Laurence Auditorium, Sixth Avenue and F Street, Alaska~ at which time affected, and interested parties will be hea Th~ Com.~itt~e will seek testi~lo, ny .on any matter relevant~, to the proper d~velop~,ent and. operation of. ~t~e referenced p~ols, includi~ bu'~. no~ limi'~ed to: 1) area to .be~'~affected by the orders; 2)~ ve~ d~fini.tion of th~ pools.;' 3) wel:'i s..pacing including footages to l~ase and proper'=y lines and. acreage spacing; 4) casing .an~ cemer r~quirem~n~s; $) bottom-hole pressure surveyz~quirements; 6) gas- % ra'=io %~%~t requir~lents; 7)methods of preventing uncontrol.led fl¢ AGO 10031573 ati rd. g tic~ tin(. oil WS; 10 11 12 13 i7 18 19 2O 9.1 23 24 25 ,,,]~ i Pa. g e 3 8) administrative '=' ,n~;~-~ '" =~ ~ = "~' .~/~ '~, ~"~ ~ ~ ~ ~, .. ~ ....... ~ ....... ~ ,~,.,' ...... '~ ~. ,. ~?,,.~ ~ ..... ,~, c-,~ ~ ~: ~ ~? ~,~,~ ',~'=:~];' ~,~".~.;'::~:' :,'"~':t'~? :'7,:'~ S~ ? ~';:'~ ..... "'~,, ;~ ~7 '~ ';~ ~, ~:~ ~K.'~ ?' ~ ,'~ :;?:,~? ;, '~% '~ '~:' ....... and ii) plan~ for uni~iza'ti,~n~ '~'~'~ .... '~'-'"~'" '~ Anchorage Daily News on Dece~u 24th~ 1970. crowd to. ay, Now, owing to the,size of'the/after ~e companies or individuals wishing to testify have been heard~ and after Co~ittee has finish~ their qu~stions~ ~e will open it to asked questions from the public~ You.d~to come up and take microphone, and we will of co. se res'~ic= the testimony pertinent questions and those asked by affected 'or,.,2, interested ~arties as required by statute and regulation. In order to expedite proceedings~ I would like to ask everyb~y wh° definitel~ intends to testify to come up on stage~ state ~r quaiificatiOns~ an~ be sworn as a group by ~ Marshall~ the Execu,~ive Secretary of the Alaska Oil ~ Gas Conservation Co~ittee, This does not-preclude ~ose' who have not yet made up their minds from coming up latar and testifying. But those ,who definitely intend to testify~ if they step now, and I ~i~ we could e~edite ~e' proceedings. ~. FLINT= If I migl%t, I would suggest that --- I have a list of about eight names of people w~ probably or might . testify. If you'd like me to~ I coul~ read that list of names' and have those people coma forward. MR. BUELL: YeS, ~. Flint~ Harlan Flint of British should have everybody would Pe~ole~. I ~ink I/stated a,eh'a.~ei~/iclentify ~emselves before' COURT' REPORTERS 277.4713 AGO 10031574 10 1]. 11.5 .i8 19 2O 21 22 ii · 'choy speak; it would be very helpfUl in preparing the record~ an{ if you would call them up here, that would be fine. ~ . ~41R~ FLINT: Mr. DoB~ Walker,.'V.C. Anderson, H.M. Porter, , . J.F. Vitcenda, Kenneth Dunne, Charles Woodruff, Dr o J.R. Lacey, and T~L, Pola~k. · .. ,. · I';IR. BURRELL: ~r. Flint~ are' tt~eY all prepared to stat.e their qualifications for the ~ecord and then be sworn? HR, FL,INT: This is Mr..~Flint~ .BP Petroleum- BP Alaska. .... ~.' . ', z ......... .. ; We have two people in this .g:.~,oUp..~ha~.......~.., ~.. have pr~vi, ous~y .qualified to ~estify; they are ~ Cha~',~es .'Woodruff and.. ~.~ V.c. ~derson. Tho o'~er witnesses are proper'ed ~o state thei~ qualifications. -:~ .~, [ '~';'/ I~IR. BU'R~LL: That will,.; be acceptable. The two that: have previously qualified need not do so again. MR ~R~,I:[ALL: Will you...~Please raise yo'~ right.~:hands? In the .~m"~'~'"~.'~"~xer" '~ now appearing~ do. you swear to tell the ~u~h, ~a who and nothing but the truth', so h.~%p you God? (I~'FI~M3~TIVE RESPONSE I.,$lO~ W, ITN. ESSES ) FiI~,,. ~iARSHALL: Thank 5o~a o. You may be sea'ted. 1~%. FLINT: Would you !~.~e tl~em ~o take seats., he~e?" ~R. BURRELL: If they would take;S.~atS~ and~ stat~,: tDoir qualJ fica~e, ions please~, just right~ down~ che. q:lis,'e and get., ~( ....... ;.i~;.......;~ ?ver:i..~, '.. . with. .....,.,.......: .~.. CWo pre~v'iousiy qualified wien~sseS....~:e:~eXcused?· ..... . of ~ia ~3U~m~.nL: In view 'of the " '.' ~, ,~: .i.'L, .~ ., " · . MR. FLIN~: Is i't yo~ w'i.sh~ ~. Chairman,.. ~at we jus~ haw tl%ese witnesses sta'~e~ [~%o~9.~~~ons to the'.Con~m'ittea star " ' '" ~ WEST ~I~HTH AVENUE ~ ~UIT~ ~ ~ze right;? ' . . . .. ~7.~.~,~ ' ':.:~:" .:' .>..' .., .' AGO 10031575 lng Page 5 10 11 12 13 14 15 16 i7 18 19 2O 21 9.5 MR. BURRELL.' Any order. MR. FLINT: Ail right. Mr. Lacey. DR. LACEY: I don't know if you can hear. Would you like me to come up to the microphone? MR. BURRELL: I think you can be picked up right there on that miorophone. Well, either One; I think we can get you. think you're being heard. DR. LACEY: Okay, fine. My name is John Robert Lacey. I'm Division Manager for BP Oil & Gas,' Ltd.~ in Calgary, Canada, and I'm Unit Coordinator for BP Alaska in New York. In 1953 I received a BFC Honors Degree in Petroleum Technology from London University and was granted an ARSM Honors from the Royal School of MAnes in London. Early in 1956 I was granted a Ph.D. Degree from London university, together with a BIC from Imperial colle.~e, London. During 1953 to 1956 I was involved in logical and reservoir engineering studies on Ecuadorian oilfield~ In 1956 I joined Triont Oil Company, Ltd., forerunner company to BP Oil & Gas, Ltd., and with that company have acted in the capacity of engineer, reservoir engineer, chief engineer, and division manager. In September of 1969, I 'was invited by BP Alaska to' participate, in~, various matters concerning Prudhoe Bay, .. including unit negotiations, and I am c,urrently acting as BP Alaska's representative tothe Steering Committee' and alternate ~epresentatiVe to the Management Committee. I am a 'Registered Professional ·Engineer in the province of Alberta, Canada. . cOURT REPORTERS AGO 10031576 10 1], 15 15 :16 2O 21 Page 6 HR~ )?LIN?: ~ 's ~. ~ Dr Lacey. ~t.,~n~ yo~ ~ . The nax~ witness is ~. Walker. I 'm Davi. d Walker. I 'm Senior Subsurface =o~o%~i=t: winh BP A~aska in New York° I ;received a BFC Honors. .Oegr,~:e 'iJ~,~ Ceo'Logy from '~e Oniv~sity of Sydney. Aus~alia in !c35~''''' ~ and. a ~C Degree from th~ same university in 1958. I ~'as employe~i as a d~lons~a'ting geologist at the Univ~sity of Sydney f~co~:~% 1956 to 1958 and in a similar position at th~ Uni've~'sity of BI~i~tol~ England from 195S-59. I a~tended'~e Co~ora~School of Mines in ~e acad~ic year. 1962-63~ undertaking courses in Pet~'o!e'z~u Engine~ing and G~ophysics~ Since 1969 I have been e~nploFed as a geologist, by the Bri=ish ,Pe~oleum .~' ~ ~o=.~nc3 concerned with ~xpioration and development in Lng~nd,, W~,~t, .A. frica~ Al,~'eria~ Libya~ Coio~ia, Kuwait, and Iran. . Since Ap,ri],. of !9G9 I ha'v~ been responsible for ~'eological studi~s .... ~,a,,lhoe Bay :fiel.,d~ first in London. and from October~ ~'.~:, Ala'ska~, Inc I represent BP Alaska in pre-ul~'~,i~;izatiot% geological ' ..... . =~co~m~lttea, and since June, 1970 haw a. cL~ct as chaim'man of that group~ I am a me. er of ~,~'T~ the SPE of AIt~. and the Geological Society of Aus~alia. and 'am:,a Fello%~ of .~2~e Geological SocieUy'of London. HR,, ]~'URi~]LL: Thank you ~ ~ I~R,~ PLI',NT: ~'~ Chairman.. the next wi~ess.is ~.. T. L. Pola :ek. I~R~,, POLAS~EK:: I am T.,L Polasek - c%~'~'e,n'~3~y manager %~f North Slope unitization for Atlantic ~c~,.~.i.~..,~.a{~ I ~oine~ Atlantic Richfield Company in 1957 in '~e . Page 7 10 1! 15 16 17 18 2O 9.5 Production and Research Laboratory in Dallas .after receiving a BS and MS Degrees in Pe-troieum Engineering from the University of Texas. In 1957 to 1964 I was involved in 'making reservoir performance predictions for water floods and miscible floods and did basic field research on sandstone reservoir characteri- stics. From 1964 to 1968 I worked ;.iin our line operations, per- forming various analytical engineering assignments while advancing t° the ~position of District Engineer for Bakersfield District. In 1968 I ~tc~v~d to our corporate headquarters as a member of Atlantic Richfield Company's corporate planning depart- ment~*,,~,rZn 1970 ~I returned to Dallas to become manager of North Slope unitization. I am a member of £PE qf~AIME~ AP~ and I am a ~.1{egistered Professional Engineer in 'the state of Texas° MRo BURRELL: ' Thank you,~Mr~ Pol~ek~ ~ Would you confirm i~the'spe~ling~'~of ~your name for us? .MR. POLAS~K: Polasek, P-o'-l-a-s-e-k~ MR. BURRELL: Thank you~ Mr. Polas~ko ., MR. FLINT: Mr. Chairman, our next witness is Mro Kenneth Dunne. MR. DUNNE: I"m Kenneth Dunneo I reside at 3438 Stanford here in Anchorage. I'.am a senior Production Engineer with Mobil Oil Corporation, I received a BS in Industrial Engineering in 1954 from Oklahoma State University. ~After nine years experienc~ in the oil industry in Venezuela an~ Oklahoma~ I received an MS in Petroleum Engineering at 'the University of Southern.California AGO 10031578 Pag~ 8, I0 14 1.5 23 been employed by Mobil since 1964 and have been A.:,as,~a Division, working on ~e Prudhoe Bay date~ since 1969. I have worked on the ,~.~aervoir Engineering Subco~ittee since its a me:~e3:' of the Society of Pe'~ol.e~ Engin~'s :~:~lea~ber of 'td'~ board of direc~o~sof ~ San. Joaquin I ~ au'~'~or of a paper in 1~68 and oo-au~or I965~ both papers ~re presented a~'nati~nal name is H. N. Porter. I liv~ at 3437 AGO 10031579 A'n~.ho:~:ag'e., I am '~x~ Alaska Division gxploitatiol Oil Corpo~'ation~. an~i I've been assigned to s.z.~.,~,~,~ Oct. obi' of 1969 In this capacity I super- ~nqinee:~'ing.. work for Mobil's Alaska Division,, . ,. ,' I g:~aduated f~:om ~e in P~:v~z:ol~a'~% .Engineering, I joined aobil in I have ba~n engaged in various engina~'ing i~:fobil in California and. t~av,a been in a sup~- si. hca 1966. I am a Regis~er¢~ Pa~olaum Page 9 10 11 12 13 14 15 16 17 18 19 20 22 23 ,. 24 25 MR. BURRELL: Thank you~ MR. FLINT: And finally, i~'~r. Chairman~ M2ro J. Fo Vitcenda, spelled V-i-t-c-e-n-d-a. MR. VITCENDA: I'm John Vitcenda~, residing at 1385 Bennington Drive in Anchorage° i :m the Division Production Geologist for the Alaska Division of Mobil Oil Corporation. I ,, was assigned to this position in the latter part of 1969 and am responsible for the geologic evalua%'~ion of Mobil ~s pro- ducing operations in Alaska. My" formal education consisted of a course of studies at the University of Wisconsin~ leading to the Bachelor'~ofDscience Degree wt~ich was granted by the Uni- versity in 1956. Upon completion of post-graduate work at the University of Wisconsin, I was granted the MaSter of Science · Degree in GeOlogy in 19580 As continuing education I have completed numerous short courses associated, 'with petroleum geology. My professional background consists of thirteen years' of varied geological experience in the ~ploy of Mobil Oil Corporation o In these thirteen years i ~v~ alternated between production geology and exploration geology in the Rocky Mountain area, and in Alaska, with a short period in 'the mid-continent , area. During the ~ast' four years~ I have been working ,in various geologic provinces of Alaska~ both as a~n exploration geologist and more recently in production geology again~ Over the past two years~ I have been -~- I have conceni~ated on the geology of the North Slope and ?rudhoe Bay~ I ~v~ been Mobil's , AGO 10031580 10 11 1Z 13 2O 21 Page ~ep~,~.~:.tati. v~ an the Prudhoe Bay Pre-Unit Geologic Subcomittee . its i~ncention Professional affiliations include i~': '~2a~ ~2~erican Association of Petroleum Geologists, Wyoming Geo- lof3ica". ~ Association~ and Pacific section of the AAPG. I'm also ~..,~.eu GeologisL in tt~e Sta~e of California. Thank you~ Mr. Vitcenda. If t/~at,Con¢lu~es t~. 'witnesses 'who~'~ you know ar~ going tO testify~ I will ask the Coma if 't'he~.'~ are any objections to any of them being accepted as exp~ w~tness~s. 'Being no objections, they are all accepted, as expert wi.~..nesses, You may excuse anybody you don't want up here at this · ti~'~e,, or they n%ay all stay as you wish~ i~R. FL~[N53: t~c. l?li.nt~ BP Alaska. ~.-Chairman~ I suggest ~ . . all of "abe witness~s with the exception of ~. Walker. b~ excused f.'r'om the ta. ble for' tile D~oa'~ent~ . . t~U~,ki..L~.L. Very wetl~ sir. ~. Flint, before We go any , t,o be biq p~:ob,2Le~ms~, can yo'~ or can the 'witnesses confirm ~at th~ copy of tJh. e. exhibits that they will be pointing to, pre- su.mab'l.y~, Lb.a'~s b~%en giv'~n to us is an exact duplicata? In which: cas.e.,, 'we wi'.Ll ~uark those officially as Committee exhibits rather ones thau go up. L1Ni: That ls correct~ Mr. Chairmano The extiibits fha , have be~n ~'c~ppl. ied I:o y'ou in this packet are duplicates of those will be shown .~n larger scale on the board. e it~ rt hat that /: '.~ , ,, ,,. 3~{b}.'~I~l~.,L: We ii ask each w~tness ~en as he con~ences t i'n.'~rofiuc~ each exb. ibit to confirm that the exhibit~, is marked and~ '~'~a'~: 'c.~"~e ,~xhibit conforms to the larger exhibits. ~2I~ WES¥ E~HTH AVENUE ~ ~UITE ~ 277-47 [ 3 10 11 12 13 15 17 18 19 2O 2]. 2211 24 25 MR. FLINT: The proce~h~re '!;hat. ?~?~ su?~st~ ~r. Chairman, is to have the witness MR. BUR~LL: Confirm ~ ~. FLINT: --- confirm ~'~hat~ they are marked? MR. BUR~LL: Right ~. FLINT- I'm's~e ttua-t can ~,= done yes~ sir C~nf a~ ...... !aenti. cai ~ ~e one . . MR. BURl{ELL.~ on the wall. MR. FLINT: matter, Mr. Chairman ,~ ~n~:,~ further preliminary Very well ,~' ~.~ · W~ woul~ pro~?<>se~ if there is no objectioI that the record, ~e complete ,ret, ora of the 1969 hearing be incorporated' into this hearing Se ttlat the Co~ittee can rely upon the evidence presented, at ~e last hearing toga~er wi~- what,.(willTbe pr. esented in this ,hearing for the ~eveiopment of ~e permanent pool rules~ MR FLINT: I have a brief Or~D']nc' statement before present o~ first wi~ess. ~ Cha' .,~.~ .... man,,~ Sembers of '~e Alaska Oil and Gas Conservation C~m~ittee~ I am F. Harlan Fiint,~ attorn( for BP Alaska, Inc. It %~ili be ~%y p'urpos~ 2o make an opening stat~ent in relation toce~"-~?aln ~ '~est:h'~ony, ..... ~'~a.t will. be presente~ at this hearing. and in ~e interest of an ~"~'~o':~'~ c~ .~:~.~ ....... L~.~ p.rasentation,~/the avoidance of duplica=ion and. the o~ga:b,i~a ~,,,~;~ o~ .... ~,~a't~er'ials to ba p~esente'd AGO 10031582 13 1.4 t¸,7 22 24 25 Page c'f:Eer'~s in the preparation of the matters to be presented ko you ~od,ay. In tha co'~se of the hearing you will be hearing from rep~e~enta-~ives of several companies who will offer testimony ~.,~ i~ems t ~ ~,~,:,,~.~ in ~he call of the ~ee'.~ing. ;, Yeu will recall that at the hearing for ~e establishment ~.e.,,,,,~ ...... ~:=~} fei.es in the Kuparuk River and Sadlerochit Oil Pools conducted by thi~ Co~'~ittee on Nov~er 13 and 14, 1969, the para'ties presenting testimony w~e 'unable to provide as much evidence as you weuld like to hav~ had available to you for use in the, fozmutat4~on of pool rules. This derived from two sources '~"'~ ~.,~,,~,~ ..... ~,,,~,, it was very early in the exploration and development of . this i ........' ~,,,~,a~,,. reg':~,,on and the data avail~ie to the individual companies w~ce very iimi"aed. Second, '.t~er'e were compelling ..... =~,..,,.,~.~L.~, for the operator's in tt~e area not to di'vulge,.,,informanion acqui;}ed b',y '{:he~:~ which at that time was protected under ~,:,~,.:~,~-~;,,, ~::~,~,~,..,~.,~:,,:~, rag'ar'ding confidentiality and had unique impor~an{ &',~:; 'th,<,~ compet::itive con~iitions that existS. The passage of x..~ ~.~1,,~,,~, -~ ~ ~:~.~,c~ the availability of more data makes it possible for us to provide you now with a substantial amoun'~ of information which we trus'a will assis~ you in' ~%e performance responsibility to review ~%e existing pool rules and adopt p,~Tma, nen'~ pool The ,:i:estimony to be presented and ~hich I will outlin~ will .~,~,~%~e meas'us;e'~, s~ppo~;t ~'~e retention of e~is~.ing ,.rules., The AGO 10031583 Page 13 10 11 17 18 19 21 extent to which changes will be recommended will be made self evident in the co~rse of these presentations. For reasons that on will be touched/later, t~he presentation I am outlining will be directed exclusively to Conservation Order 83-B, dealing with the Sadlerochit Oil Pool. May I now outline the order of presentations. It is intended that these presentations will generally follow the eleven items upon which tes'timony was elicited in the published notice of this hearing. . . The first witness will be D. Bo Walker, a geologist employed by BP Alaska, Inc., who i,will present evidence regarding the area to be affected by Conservation Order 83-B~ Following Mr. Walker will be two witnesses employed by Mobil Oil Corporation, who will testify in support of the co-mingling within a common well bore of the Sag River Sandstone (formerly called the Oxytoma Formation), the Shublik Formation and the Sadlerochit Formation. Those two witnesses' will be Ho N. Porter, a petroleum engineer, and J. F. Vitcenda~ a geologist o The next. witness will be B. C. Anderson, a reservoir''~ engineer~ employed by Atlantic Richfield Companyv who will pro- vide ~he Committee-Wi~h?~en~neering data on the Sadlerochit Oil Pool. The next several items within the call of this hearing cover elemen=s of the pool rules, including well spa¢ing~ casing AGO 10031584 10 11 12 I¸5 19 2O 22 23 24 25 Page 14 and cemen'hing~ bottom-hole pressure survey requir~uents, gas-oil ratio test requirements, methods of preventing uncontrolled flows and adrainistrative approvals. Mr. John Scott, attorney for Atlantic Richfield Company, will present the case on these £'tems. A statement, on the disposition of produced gas and r~servoir pressure maintenance will be given by R. F. Cox, ~esident Manager of A'~lantic Richfield Company. And finally, will offer a statement on ~e Progress of Unitization. Upon the completion of the above described testimony on Sadlerochit Pool~ counsel for the Standard Oil Company of California.- will address himself to the call of this hearing insofar as it applies to Corfservation Order 83.A, which establisl temporary pool rules for the Kuparuk River Oil Pool. I. had pz,"evious'ly mentioned the desire 0f the Operators in t".he Prudhoe Bay Field to disclose substantially more information 'tha'r~ could be pre=,enL=cl to you in the 1969 hearings I am s~e it will be obv'i, ous t.o you that there are still some data and a~,e some areas of tha Field that require strict -confi<~tentiality,~, Howew~r~ we are confident that 'this hearing will provide a sound ev~den'~iary base for the pool rules already in e, ffect and a good basis of information which will be useful tO the Cozr~az~ee in t:he performance of its responsibility to p~,ot..~,L the public interest in this great Alaskan reso~ce With no further ado, I would think that we are ready to p;~oc~:~ with tn, e" ~ substantive case, and would call ~. David Walkt }'k ~ ~¢ COURT REPORTERS ~2~ WI::'F~'~ E~NT~! AVENUE -- ~UITE AGO 100BL585 10 11 15 17 18 Page 15 who has been previously sworn. MR. BURRELL: Thank you, Mr. Flint. Mr. Walker may take stand. MRo FLINT: Mr. Walker. MR. WALKER: Mr. Chairman and members of the AlaSka Oil and Gas Conservation Committee, at this hearing I am presenting geologic testimony on behalf of the groups, involved in pre--uniti- zation negotiations. Following the previous hearing in November, 1969 to establish field rules to apply to the Prudhoe Bay Field, field .rules for the Prudhoe Bay Sadlerochit Oil Pool were~ issued on January 12, 1970. We intend at this present hearing to present testimony with regard to the areal definition of the pool affected by these rules. This is to establish whether any revision to the extent of the pool, as previously established, is necessary. At the last hearing, BP presented testimony describing the geology of the Prudhoe Bay area. That testimony will not be repeated at this time~ but we do present a generalized strati- graphic column to review the vertical sequence of the formations and to indicate the minor changes in terminology which have been introduced. Exhibit A is this generalized stratigraphic column. MR. FLINT: Mr° Chairman,' just a ,matter of mechanics. I · wonder if it would be possible to dim the lights on the screen so that the slide would be more evident. MR~ BURRELL: Yes,' Mr. Flint, we made arrangements wi. th a · R & R COURT REPORTERS ~s w~s~ g~o.~. ^v~.u~-- ~u~ ~ A~0 10031586 · , 277-4713 ; ANCHORAGE, ALASKA 99501 ;r Page i6 14 ge.i',~;ie;:~an in '~;,i'~.e back there with a key to ~he li33'~: box who will · taka care of that for us~ if we can just wai~ a minute, I'm s~'e HR,~ '~,TALRER: k?E. Chairman, the slides to be exhibited on th~ · ~ .... wi'ah ~u:he ,axhi. bkts that you have been handed earlier 'this morning ~',.'.[~ ,. ~B~RRE,LL: Thank you. Will you ma'~ and des:~nate 'wh:~t 'you~x~'%~'~tking i~ for ~e rec,c~'d. Dces from the bacJz; can yeu s~'tl~t allrk~h'~ Oki'. 9~L~w~ n~ Ex. A HR. WALKER:: The minor changes in 'terminology have been made larg'ely as a result of informal discussions of the Nor'th Slc Strati/',,}~z'aphic Col~tm'~,i'~;;tee o~ the Alaska Geological Society. Considering the section from' the top downwards, an additional forma%ion name,~ ~;hat of the Pleistocene to Recent Gubik Formatioz has been add, ed~,~ its 'thickness is believed to be two hundred t,o " ,~,,,,u~,~.,,,.~.ee f,a~.;t in the Prudhoe Bay area. The remaining por'tio~s of' the b" :~' ~' Iertiary Sagavanirktok e~s previously ascribed to the ~'~" ~.'~' "~,~. ............. m~,:~ ~"~...,~u.n,'~ ........ ~, consisti, ng. of gravels ~, sands re, mains as ~ '~,~' ..... "~'~ "~" , de~,,~,,~.:~.bec~ in the testimony presented at the previous ,, Cz=~a(.eous formations in the hearing ,I,he naming' of the Upper , area now aliew's for facies differences,,,: The upper part of this in~eerv'ai i,s referred, 'to as Prince Creek Pormation/Schrader 2~olma, t, mo}~ un,o,,Iff'erentiated The former name applies to coal mea, s'u~;es ...... sandstone lithology, and the latter name appi",i=e'" '~" i',f' '"~ae ..... sedi~eents are of more marine aspect. The und, er'kving Upper c.l=taceou,,s mudstones and siltstones have been correia'ked with 'Lhe Sea, bee Formation and ~ese overlie an as 2 7 ~'-4 7 ~ 3 , i i I 10 11 13 14 15 16 17 19¸ 2O 21 23 24 25 Pa.ge 17 yet unnamed Lower Cretaceous shale. Where seen beneath an unconformity, other Lower Cretaceous rocks are still officially unnamed. In the west this interval contains the Kuparuk River Sands,but over the major part of the Sadlerochit pool area these are absent due to truncation. The Kuparuk River Sands have .been discussed in a paper included with the Proceedings of 'the North Slope Seminar publishe~ by the Pacific Section· of AAPG in 1970'. The Jurassic. beds are still referred to as the Kingak Shale o The Triassic and Permian beds'are shown on an expanded scale in Exhibit B. Exhibit B MR. BURRELL:' Is this/the same one that we have? MR. WALKER: yes, identical. MR. BURRELL: We, ~wil-t~' mark,,',i~t,'Exhibit'B.'~hen likewise fcrthe MR. WALKER: The sandstone lying beneath the Kingak Shale and above the Shublik Formation in the Prudhoe Bay Field, which was previously termed the Oxytoma sandstone,' 'has been more correctly renamed as the Sag River Sandstone. The type section was defined in the Previously mentioned ,Proceedings of the North Slope Seminar as the 'interval 8~40' to 8482' in the Atlantic Richfield-Humble well Sag River State /qoo '1. This fine grained, glauconitic sandstone varies in thickness throughout the Prudhoe Bay Field from approximately twenty feet to sixty .feet.. 8~ R COURT REiRORTER$ 82B !/~"1'8"1' I;IQ, HTH AVI;NU~ -- ~UITn~ B 2'77-4713 ANCHORAGE, AL,ASKA 9950~ AGO 10031588 i0 11 12 15 17 19 20 2,2 .23 2~ 25 Page '?ke Sh'ablik Formation consists o f varyin9 li=.hologies of ~.~L'~=~;ne, snata , and sandstone: wi~ distinctive phosphatic D~ ~.'~ v~ries in '~ickn~ss from approximately forty feet to '~wo kundr ~J~ cong'lon~e~'a'~e~ in varying. proportion toge~l~ wi~ minor int~ beddad~ shal~s~ The sandstones consist principally of de~'ital quartz and ,chert ,together with pyrite, siderite~and som~ clays. Th~ G~ol~'ical S~conuuittea formed by companies involved in pre-unitization negotiations has pick~ '~'~e top of this sand- stolia at S206 fe~'t in Pr~dhoe Bay State No. 1 and the base at S~73 fe~t in the same weil~ Throughout ~'le field. ,area 'this base i,s at present piCka~ at 'the lowest limit of significant sand de~e,~topi'l'~ent~ Th~ Sadl~rochit ~ands%on~ has b~en seen to uary ~.kn~:~,~'~ ,'~t"~'o'~'h the field a,~'ea from approximately 450 feet' 'to 630 The Sadle:rochit sandstone and the underiying' shales are refe~:~r'e,;~3i to as 't:.he' Ivishak Member of '~he Sadlerochit Formation. ,A sa:nds~::one which is present in places' benea=h t~e Sadl~ochit shales is known as the Echooka Me~er.- T,na previous %znofficial ~ro'uping of the Sag Riv~' Sandstone Sh%~,~iik Foriu~a'C,i,on and Sadl~'ochit Formation into ~e Prudhoa ~ay G:~;;o'up i.s no lo,nc3ez' applicable. The ~ennsy,7i;vani~"-MiSsissippian succession can be s~ivided AGO 100B1589 ', · · 10 11 14 15 17 19 2O 21 9,5 on an arbitrary basis into an upper predominantly carbonate section termed the Lisburne Group and a lower shale and sand- stone section termed the Kayak Shale. In the Prudhoe Bay area the Kayak Shale and Kekiktuk Conglomerate rest unconformably on the "Argillites". This testimony is only 'concerned with Conservation Order No. 833B and consequently on~ with the Sadlerochit Oil Pool. We no~ intend to present data concerning the areal extent of this p~Ool so that it might be determined whether any change is necessary in defining the area to which .the field rules apply. Exhibit C is a structure contour map drawn on the top of the Sadlerochit sandstone in the Prudhoe Bay field area° MRo BURRELL: Mr'.Walker~. is/this Exhibit E'--id~'ntical to~-t~at we have at our ..de%~ser~s? MR. WALKER- . identical with the exhibits that you have been h~'~nd~/ko' MR° BURRELL: In which~, case., ~we ".~,il~t"mmark~. it Committee Exhibi for the record o .~. WALKER: This map was drawn b9 the Geological Subcommit- 'tee formed by the companies involved in pre-unitization nego- tiationso The .map was most recently updated by that Subcommittee in July, 1970. .The map is based on well data' and the interpre- tation of the geophysical data available to those companies. it is, thereforew a compromise interpretation and does not · necessarily represent the views of any one of the companies, but is a map initially acceptable to all parties.. One area, indicate~' by sha4ing, in the southwest has not .yet been .' R & R COURT REPORTERS 8~ W'-;BT n'i(~HTH AVENUe.-- BUITI; ~l 277.4v,~ AGO 10031590 ANGHORAG~-, A~ASKA ~O! %~hic ' C ,i . . . 9 '" .' .... itit .,',, :,:. ~ 'l', ',,r,~! ,':'; '"' ~h; ,,. ,,,~ ' ¢ ,', , , , . 18 l0 lI 13 15 19 24' <it '.i Page 21 updip lin~'~ts of the oil column are also shown, the updip limit being determined from the intersection of the gas-oil contact and ~b/%e base of the Sadler°chit sandstone. In the western area the downdip limit of the gas cap is shown and also the downdip 1. imit of the oil column. In the western part of the field, oil completely underlies the gas cap. These gas-oil contacts and oil-water contacts have been established from tests and wireline logs in individual wells., The contacts have been determined by the members of the .Reservoir Eng.ineering Subcommittee formed by the companies involved in pre-unitization negotiations. The contacts ~in wells have generally~ been established by averaging the interpreted picks of the individual companies involved. For initial studies · it was accepted that in the east a level plane at 8572 feet sub-sea approximated the gas-oil contact, and in the west a level plane at 8775 feet sub-sea is initially acceptable° The oil-water contact's 'were found to vary throughout the' field area and as yet the reason for this is not apparent° The agree~ oil-water contacts for the wells were treated as a surfa¢~ which could be contoured for estimating the dis'tribution of the oil column. This contoured surface, prepared by the Reservoir Engineering Subcommittee is. presented as Exhibit D and requires no further comment excePt to restate ~hat it is purely empirical in natur~ and was acceptable to the companies involved. This. E,w/~ibi~.. D on th~ s~reen and on the board' is identical ~th the ~ R & F~ C:OURT REPORTERS 825 WEST EIGHTH AVENUE ~ ~UITg D 277.47 ! 3 ANCHORAGE. ALASKA 19950! * AGO 1003159Z Page 22 .. small exhibits that have been han~ed to you this morning. MR. ~URRELL~ Thank you, Mr. Walker. We'll. mark that Exhibit D. for the record. MR. ¥~%RSHALL: What is the number of the exhibit on the 1,',,7 F&{. WALK~R~ Exhibit D. MR. ~ARSHALL ~ Fine, ~hank you. HR. WALK~R: This map warn ms~d to oons=uut ~e oil-Wat~' ~on~o~ ~a~s on ~e m~u~e contour ~p, ~at is E~ibit C~ To illus~a~e f~mr ~e s~uc~e and fluid contacts of Sadl~-ochi~ sanas~one in ,~he area, two cross sections have prepar~ approxi~tely west. to east and sou~ ~o nor~ acro~ss ~,e fiela ~ea. ,These s'ec~ions 'have been ara~ on ~e '~ s~ horizon~l scale am ~he previously p=esent~ s~uct~e well .l~gm~,l T0 i~dica~e ~e s=uc=~e and log characteristic . . v~%ical s, cale, of 1" - 100 '~'' has been usm~ which gives ~e ~ec,~io~s a vertical e~aggera%ion of ~or=y to one. I might h,~'m ~,a~ ~ts scale 1"' ~ 100,' ref.ers =o ~e diagram wh~ will appeax: on ~he board. ~h, ibt= ~ is the west t.O east cross section ~hrough Atlantic Ri=hf'im~-H~le s Nor~-Wes= Eileen %1, Mobtl/Phillip s Wes= ~uparuk,, ~obil/Philltp's/~o=al"s '7-11-~2 (original) an~ Kupar~ , S=a~e ~'o. 1. ~P's 09-11-13, Atlantic Ri~hfiel~-H~le'~ Pru~oe a~ ~P'm 31i11-16.. This E~ibi E is tdmn~ical-' , ,. AGO 10031593 10 11 12 13 14 15 16 17 18 19 2O 21 Page 2 3 with the. small copy handed to you this morning. 5~R. BURRELL: It will be marked Exhibit D~for the record. MR. WALKER: The resistivity logs for these wells are shown for the Permo-Triassic interval and the immediately over- lying beds. The Sag River Sandstone, Shublik Formation and Sadlerochit sandstone are correlated throughtthe-~area. In the east the position of the unconformity is shown truncating the Sadlerochit sandstone. The cross section has been left blank near 'the area which was indicated to be as yet unresolved structurally. The electric logs indicate the distribution of permeable beds, and 'the fluid contacts have been placed on the diagram to conform.with the map ,(Exhibit D), for the oil- water contact and with the defined gas-oil contacts. The south-north cross section, Exhibit F, is constructed . following the 'same principles used to construct the west to' east section. The exhibit on the slide and on thebboa~.d is identical, except in scale this morning. MR~ BURRELL: We'll mark that Exhibit F,for the record. Th~ MR~ WALKER~ This south to north cross section passes through Atlantic-..Richfield-Humble's Put River State (7-10-14), BP~s 32-iI-14~ BP's 27-11-14 and Atlantic Richfield-Humble's' Prudhoe. Bay State No. '1. , This section, indicates the main. South flank' of the eastern oulmination extending up to the Prudhoe Bay State area~ and also, a fault between the wells Put River .State No. 1 R & R COURT REPORTERS ~g WE~ST 'EIGHTH AVENUI~- SUITE 2'77.47 ! 3 ANCHORAGE. ALASKA AGO 10031594 Page 11 lg 13 15 ].6 19 22, 23 and 32-11-14 as indicated downthrowing to the south. This fault interpretation was neceSSary to satisfy ~he well data and has some confirmation in seismic data. To return to Exhibit C, the structure contour map on the of the Sadlerochit sandstone, 'the area to which ~e field rules in Conservation Orde~ No. 83~.B apply for ~e Sadlerochit Oil is ou'tline~ on this map. In light of thm results of the coop~a studi~s of th~ ~xtent of the pool which we have presented realizing that our knowl~ge of the area is far from .complete, do not at t, his time request~ any change in the area to which field rules apply.. This concludes ~e..testimony conc~ning areal extent of the oadlerochlt Oil Pool~ and I wish to .thank gentl~en for yo~'. attentions,, ~R. B'UR,~LL: Thank you, ~. Walker. We would prefer to all o~ questions until comple~ion of the testimony unless somer body will no't b~ available later. Would .that be 'all right, Mr. Flint, wi~h you? . I~R. ~'LINT: I ~m sure all the witnesses can be available. MR. 'BU~LL: we"d. prefer ~o hold our questions. I= may eliminate a few; questions we-.may ask now migl%t be answ~ed later Thank you~ I~'. Walker. ~..FLINT: ~ Chairman, these exhibits will 'of course be available on the stage~ and whenever thee is a break~ we will attempT. ~o have them on display so that '~ey will be available to the Co~nmi'~itee an~. any mea~ers of the audience~who would like ~to AGO 10031595 Page 25 10 I1 I2 17 2,5 MR. BURRELL: We'll be taking a coffee break somewhere in twenty or thirty minutes. As a matter of fact, if somebody in back wants to sneak out and scout the coffee wagon whichi, is due out front just after ten-thirty and give me a signal, that would baa good time to take a break. MR. FLINT: Then Mr. Walker may be excused at this time? MR. BURl{ELL: Yes, he certainly may. ~R. FLINT: We next call H.M. Porter. He will be introduced by'counsel for Mobil Oil Corporation, Joe Trimble. MR. TRIMBLE: Mr. Chairman, I'~am Joe Trimble, General Attorney for Mobil Oil Corporation, Alaska Division. I will read a short introductory statement. In November, 1969, a hearing was held-to establish pool rules for the Prudhoe Bay Field. At this hearing, BP Alaska~ inco submitted a definition of three pools for consideration. ~One of these pools was called 'The~Prudhoe Bay Sand.~!Pool'. It. was defined as the acc%unulation of oil and/or gas common to and which correlates with the accumulation found in the Atlantic Richfield-Humble Prudhoe Bay State #1 well between the depths of 8110 feet and 8680 feet. BP Alaska, Inc. described the accumulation in the interval as consisting of three formations ~hich they ~lled the Oxytoma, Shublik and Sadlerochit. The , Oxytoma formation has subsequently been renamed the Sag River Sandstone and will be referred to by t. his name throughout the remainder of this testimony. R & R C:OURT REPORTERS 825 WEBT EIGHTH AVENUE- SUITE ~ 277-471:3 :' ANCHORAGE:, AL.AE;KA l~9B0! AGO 10031596 10 11 12 14 16 17 15 19 20 21 22 23 24 25 Page the previous hearing on' the Sa Lit. L1 data was presented ak River and sh'ublik formations. As a result~ the Conoervation Ord~:r No. 83-B that was issued following the hearing established field rules for the Sadlerochit formation only. It was noted in the Ozda that there %~as insufficient evidence to define the Sag River Sand stone as an oil pool.. The Shublik formation 'was not mentioned b' name in this Order~ bu't it was stated that ~h~ Sag River and SadJer chi~ fo~q~ations were separated by .40,':?to ].,50 ~eet of shales~ lime- stone and phospha,te'~ ~k roe s which may constitute a penmeab//ity bam~i,~r We ,feel tha~ there is now 'sufficient data '~o justify expanding the interval covered by the existing Sadlerochit field rules to include t',he o . ~ag Riv(~r and Shublik formations. We will present eng£nee~-ing" and geologic .'testimony 'to subs~antiate this position, In the handou,'t which I have given all Of yo, u are contained -the exhibits whict~ will back up 'the 'h~s'~J. mony. Our first wi'hnes: will be H'.Yi. ~?orter w'ho is the Alaska Division Reservoir' EngineeI for Mobil Oil, Corporation~ MR~ BURi~LL: Excuse mcr, ~'~ Trimble. Would, you ask to identify,, as 'th~.~ last wi'tn~-~ss d. id~ 'that '~e maps we have are rapr, oduct, ions; and fu,:rther,more~ since I .see we have ~uplicates we're going to re-letter ri.g,~%t now for, the record ~he exhibits viously submi'hte~ .as BP Exhibits A thrQugh F. SR. TRII~JLE: So o'u~~ first exhibit,~ will be Mobil Exhibit Aq ~IR. BURRELL~ N'o~ we'll put 'th~ ¢orpo~a'~ion name in fron~ it. ~.~h'a'~ way ~'e.' can keep them straight. AGO 10031597 Page 27 il 13 14 17 i9 .MR~ .PORTER: Mr. Chairman, it will be the purpose of my t~-~stimony to show that the Sag River and Shublik Formations are hydrocarbon bearing over a wide area as indicated by well test results and to state reasons why we recommend that these formations be included with the Sadlerochit Field Rules and ~,~, downhole commingling of production be allowed. At this 'time I 'd like to ·submit Exhibit A', which is ~.sseL,~ ..... ally the same as BP Alaska'S, Exhibit C. I confirm that the ~:e~uced map in your possession is identical to .the one I will show. MR. TRIMBLE= These were prepared under your direction and supervision, Hr. Porter? MR. PORTER: They'were. as MR~ BURRELL: .:. Th&~ will be ~s~ for'the record/Mobil Exhibit A. MRo PORTER:, This. k~,,exh~bi'~ shows the lo6atiOn'of wells where the Sag River and Shublik have been' tested. The colored" · tziangles on the map indicate 'that a test was made at~ the location: green 'to show Sag River 'tests and red tO show Shublik tests~ Tests that recovered .hydrocarbons are' indicated by a solidly-Colored triangle and tests that did not are shown by a colored outlined 'triangle only. ~ River Tests: The Sag River s~ndstone has been. tested. in eleven wells~ Ten of. these .tests, yielde~ 'hydrocarbons. r,.angi from traces .to a recovery of sixty-three barrels of oil in one R & R COURT REPORTERS ~,~ WEBT HIOHTH AVENUE ~ BUITg ~ ~,?.,~?~ AGO 10031598 ANCHORAGE, Ai.,ASIfu~ ggSO! . Page 28, I0 11 13 1.4 15 16 17 18 19 21 25 well and Two and a half million cubic feet per day of gas flow in another. One test showed no hydrocarho~ recovery. 'Shublik Tests: The Shublik has been tested in five wells. Three wells recovered oil ranging from a few barrels to a flowin¢ race of two ~lousandf five h'undred barrels per day. Another well flc~;c~i gas at iow rate. One test showed no hydrocarbon .. COMP~.ISON 'WITH $ADLEROCHIT: .L i__~:~[u id G~a_v_i~, Gravi~ti~s of liquids recov~ from o .o Sag River ranged from 26.,5 to 38.0 ~I. Liquid gravities O O from ~ Sh~lik rang'~d fro~ 27~.1 to 27.4 ~I., These O to a typical Sa~l~ochit gravity of-aPproximately 28 This com'pa~'ison can b~ on'~y approximate because ~ Sadler gravity varies depending upon ,dep~ and proximity to the gas-Oil and oil~-wat,e~ contacts It is exP~ted ~%at ~e' liquids ~.from the Sag River and Sh'~lik'~ry in a s~miliar fas.hi'on. Bottom Hole Press'ur__. 9.: The Sag RiW~r~ Sh~'I'ik ~ and ochit exhibit similar press~e gradients with ~apth. Repr~s~nta' shut-in press%~s froa~ tas'~ssof .these ,intervals indicate an g~.acl,:t, ent of 0~507 psi/ft~ for the. Sag River a'v~rage press~.le ....... and 0.500 psi/ft, for ~he Shubli~. Thes~ compare with a represen't,~ive gradient of 0.500 ps'i/ft~ fo~ ~e Sadlerochi Th~se~ data indica't~ ~ press~es of .~%ese' 'formations are compatibl~, Ga~Oil Ratios ~ Producing. gas-oil 'ratio~ "on $t~%~blik and 's~.~ '~'r ~,~,'. *w~u,~,-- ~.,T~ ~ AGO 10031599 .'/' ',, .,,.,, '., ;, ...,, Page 29 1 £adlerockit tests were similiar. Areal Extent: As this Exhibit shows, the Sag River and 3 Sh.Ublik are hydrocarbon-bearing over a large ar~a. The overall between wells which tested hydrocarbons in the Sag River ~ is approximately twenty-five miles. overall distance between wells which tested hy~ocarbons in the Shublik formation is approximately ten miles° However, ~,~is iE~l%ibit shows 'that n° wells have tested the ShUblik in 17 ~t/~e ~.aastern portion of the Field. From our evaluation of the Shublik formation, we expect it to be hYdrocarbon-bearing in this portion of the Field also. Economic and O~e~rational Considerations: These results show that these formations are. hydrocarbon-bearing over a large area substantially the same as the Sadlerochit. We believe that it 'will be uneconomic to fully develop, and deplete the Sag River and Shublik unless they are developed with the Sadlerochit Probably there are limited locations where these formations can b~ econo~%ically drilled on their own, 'but we believe that full ~5~ev,~lopment over the area cannot practically be accomplished tl~is way. Therefore, inclusion of-these 'formations with the Sadlerochit operations should result in .greater. 'overall reserves , ~.or the ar~a We believe that inclusion 'and co~ingling 'of the Shublik and Sag River with the Sadleroch~ will'have no. det=imental effec% on the SadlerOchit reservoir performance, If. there is R ~ R COURT R=PORT£R$ 10031600 ~12,~ WEB" EI(~HTH AVENUE -- SUITE 277-4713 ,: ,, 10 11 lg 14 ].7 18 2O Page 30, inter-formation ¢oxm~unication, the intervals should be produced as an entity for maximin efficiency and conservation. Industry efforts to unitize the Prudhoe Bay Field have included the Sag River and Shubliki::formations with the Sadter-. ochit. W~ believe 'that the Field Rules should include them also. " That concludes yo~r testimony? That C. onclud~s it. Tnan~, you, ,~z. por,ter. We'~ll call as o~ next witness J. P. Vitcenda who is Alaska Division Production Geologist° MR. VITCENDA: ~r. Chairman, ~'y name is John Vitcenda Mobil Oil Corp. I will pr~sent' testimony indicating three met/%o~s in 'which the Sag River and Shublik productive intervals c~uld b~ in pressur~ and fluid communication with ~the Sadlero-- chit sand pool in 'the P~'udhoe Bay ar, ea~ The fi.z's'~ method to be discussed is a:ppliCable to b'oth tho Sag Riw~r and ~h%~li.k zones. I~ i~ by t3ea.n~ of ~isplacemen~ of t/%es{% z{:)nes against 't/%~ Sadl~roch:it sand'.alOng non Sea[li.n~g'. faults. The s~cond 'two mett~ods apply pr'imarily, to the .Shublik prO~lutive zone. They are~ (1) through vertical fracture co~unica~ion~, and, (2) ~rough s~atigr~aphio contact. Let's cons,ider,: ~e.-first method,~ I would lika at ~is:,'time to 's~mi,~,'~hibi"ts','--- Mobil 'Exhibits B.'.~and,' C. These 'exhibits we%re prepar~ '=nde~'.'my supervision, and: you have an AGO 10031601 13 15 2O Page 31 reproduction at a reduced scale without color. lqR~ BURRELL: Thank you, Mr. Vitcenda. We will mark those as Mobil Exhibits B and C. ~R,, VITCENDA: On your copy of Exhibit C, there the colors ~:',.'-~pres~nted on the large one is ~llustrated by symbols on yours ~ . · Exhibit B, on my left,.is a structural section similar to .which .wa_s ~? Alaska ' BP Alaska's north-south sec=1on,/Exhinzt F, It goes across t2~e fault shown between the ARCO-Humble Put River %1 well and the BP Alaska, Inco 32-11-14 well. The line of section is shown on E:d~ibit C. The purpose of Exhibit B is to illustrate the method by which 'the Sag River and Shublik come in fault contact with-the Sadlerochit sand~ which may lemd to pressure communication between the formations, suggesting a common reservoir system. 'The Sag River-Shublik interval ~aries from approximately nine'ty~ feetl on '~he east side of the field thickening to about twor:hundLred, and fifty feet on the west in the vicinity of. SOCA,L-Hob'il 33-29E well. This thickening occurs mainly within the Shublik: interval.. The rate of thickening increases west of TllN, R13E. -.' - Exhibit B 'illustrates the juxtaposition of the Sag River and Shublik interval against the Sadlerochit sand along the fa'~;l.i,t ~apped on Exhibit C. The major faults shown on Exhibit C are basea primarily on geophysical evidencel other smaller ' R ~ R COURT REPORTERS 825 WEBT EIGHTH AVENUE ~ BUITg ~1 277-4713 ANCHORAG~'. A'L, ASKA ~01 AGO 10031602 Pag~ 10 11 13 15 16 17 21 22 23 25 fau]lts have not been mapped. Similarity of 'the Sadlerochit oil-water contacts in the wells on either side of the .f'ault suggests that this is not a sealing' fault~ thus allowing pressure communication and fluid migration., Th~ sam~ situation oco~s wherever there is sufficient displao~en't along a fault such as to place ~e Sag River and/or Sh'~lik porosity in contact wi~ the Saldez~ochit sand; that is, wherever fault displacements rang~, from approximately one bund:red to six hunf4red feet~ The firs~ fig~ would place the Sag Riw~ and Shublik in oontact with t~e upper part of ~e ~ad~ ' lero~l~i'~:, while th~ ~.a'~ter ~ould place ~ese formations in contact wi'~l the lower po='tion of ~e Sadlerochit sand. E~.ibi~ C illusi:ra%,~s ar~%as wher~ ."khis situation ~co~'m alon~'~ mapp~ faults~ bu~: the concept ia applicable along any fault wi~ Now we will consider %-~,~ other '~%~o methods by which we believe the prod, uctive Shr~lik zones ~ould be in c0~m~unication with the Sad. lerochi't .sancl, Thsse are through la'feral or vertical s~atigraphic changes which place the pr~uctive zone's in virtual sand to sand or lim~ to sand contact with 'the Saa:~arochit~ and ~ough frao%~es whioh may pe=mit v~%:ical co~unicat%on .betwe~ ~e Sadlerochit' and~ ~ overlying pr~uotive zones. To 'i.llus~=ate ~s'm points I would li'k~ to' s~mit' Mobi~ AGO 10031603 Page 33 Exhibit D~ and this again was prepared under my direction, and .<.~,~e ~.~,~u~,.~on.,, --~ reduced copies were presented to you in yo r ~.a c k e t ~ . ~[R~. BUR~LL: Thank you~ It'll be, for ~he record, .~.~..~ VITCENDA~ Ex, it D is a west to. east correlation se~':~tic, n hung. on the top of the Sag River sand~ It includes ~,~.~ell~ :.fron% SOCAL-Mobil 33-29E on the west 'through the Mobil- North Kuparuk well in Section. 26, T12N, R12E to the Bay %1 well on the east~ a distance of some twenty The wells are relatively spaced~ not to scale. This section illustrates the log character and correlation ,, the formations from the west to the east and how the forma- .to the Prudhoe Bay %1 well The tops of the formation~ are tAhose ::selected by the .Unit Geologic Subcommittee. ~gased on core data from the Mobil-Philiip's-SOCAL #7-11-12 which cored the complete interval~ there is no obvious evid. e. nce of an unconformity between the Shublik and the'Sadler- ©chit i:!~:':~ the western area, ~Bedding~ both above and below the ,,.~,©nta~t is conformable. Core descriptions indicate that the Shublik is made up of s~-~nd~st©nes~ limestones with some phosphatic sands, and inter- ~mestone~ si.ltstone~ and shale. 'Phosphatic minerals become increasingly abundant toward 'the middle part of this ~.~.on~ This phosphate is, a character'isti~ feat~e of ~e . , ~"]~.2~'~aL t,:~.~,k. ~ :~ I~ OCe~S . both in granular and ' nodular fo~. and ,,also ,}. z~'~ AGO 10031604 11 17 1.9 24. Page 34 as a cementing and replacement mineral. It has a marked effect on radioactive logs, and it is this log response'that has been usad in selec%ing' the log top of the Sadlerochit, although the lower sandy unit of the Shublik may more properly be related .to th~ Sadiero~hit sand. ~ef~;ring again t0 Exhibit D~ the sand a~. ~,e top of ~e Sadlerochi'%: in th~ Mobil-Phillips-,,.Nor~% Kuparuk well has characteristics co~:~on to both ~e Sh'~lik sands to ~e west and the Sadleroohi.~ sands to ~e east. It is ~ipolitic,, similar to typical Sadlerochit sand~ and phosphatic, similar to sh~blik sand~%'.. ~'his suggests '~%e possibili~of a ties change and/or on-lap of '~%e Shublik from the west 'onto the big'her por.~:iOn',s of ~%e Prudhoe Bay $'~uct~'e. In any event~ ~ere is ~vi~antly sand 'tO. sand or lim~ to sand contact of ~e forxnatio:ns. ~'h~.s is th~ second me,'~od of possible co.unica.rich Sh'ablik core ~.D. alyses sho~ pDrosities ranging up to twen'tY-~ig~ht per cent wi..~ an average of approximately, five p~ c~nt. 'l'he sam~ col:'e ~ata shows ,permeabili'ties ranging up tO a ma::i,m~ of 580 millid~%rcies~ but it is '~ypically less ~an , . , . one-~.en~h millidar(:y. ~.orosities. and parmeabili'~ies seem to be as va~:iabl~ as ~e li~ology. It should be noted, however, that core analyses cannot, nor~%ally measure f~,act~e permeability. Fract~'es have-been noted in ~.s cores. '~hs,se fract~'es are impo~'tant in providing permeability and could provide ver'~ical co~unication wi~k' ~he underlying oad,ler~h~t.,, Frac'~ur~s. 12 13 14 Page 35 are the "'- ~ =n~,rd possible met/'~o~ of con~'lunication. }~n summary~ }{r. Chagrman~ we have indicated how the Shubiik productive units are in s~atigraphic contact with ~e Sa~!erochit sand and could b~ in. vertical fracture co~unication aisc~ We hav~ shown how ~e Sag River and ShUblik are in fault contact ~i,"t~'~ the Sadlerochit sand across apparently non-sealing faults ~ %~'e c°nclude~ '~erefore, ~at one could' expect press~e an~:i fluid .co~u~cation between ~e .Sag Riv~ Shublik and' Sadie~rochit formations wh~'e any of these conditions exist, ~::~ TRI~LE: Joe Tri~le again~, For preceding 'testimonys we believ~ ~a :following points have been subs"~antiat~: 1. The. Sag River and Shubiik formations are hydrocarbon- bea~'ing over essentially the same area as the Sadlerochit. 2~ We. believe it will"be unece%nomic to fully develop and aep~ete t~s Sag River and Sh~lik unless they can be aevelopea ~h~, co~d. ngie~ downhole~ with t~e Sadler~hit. 3~ Unitization efforts are consid~'ing all ~ree int~vals I~'o~' ~.~.et~,~m~natlon~ = ~=~' ~ ~ of equities, 4, I'[a is in ~e interest~ of efficien=y and conserVation to ~roduce ~ese formations as an entity~ Faille to allow ~ownhois commingling probably will result ina decreased .~ ........ ~ ............ .~=.~.~ of the State's natural .5~ It appears that ~he Sag Rive~ and Sh~lik coula be in .., .' '1 I0 11 14 L5 16 17 18 21 Page 36 co~unica.tion with the Sadlerochit under ce~tain conditions° Therefore.~ we recommen, d that the existing Prudhoe Bay Sadlerochit Field Rules be'amended to permit downhole commingling of produc~ from the Sadierochit~ Shublik an~ Sag River intervals~ We further recommend '~at the vertical limits of the presen~iy defined Sa~e,~-ochit' Sand Pool be expanded to include Sag River and Shublik formations: to wit~ the intervals from 8 feet 'to 86~0 feet~ as exhibited in t~%e Prudho~ Bay ~1 well: th~ present Sadlerochi~ Field Rules apply to all, and tl~at co~binati'on be given .an' inclusive D~ame, such as the Prudhoe Bay Field, Prudhoe Bay Pool., or some other appropriate name. MR. BUR~ELL: Thank you," Mz'. Trimble. Before proceed.ing . the next witness~ has anybody sneaked out to see if there, is a coffee wagon out, t~here? UNIDi~NTIFIED .~.DICE: He wash' t out there when I looked. MR B, URR,LLL: W, el,l~, we '11: proceed ,with the next witness MR,, TR.I]..~BLE: Excuse me, Fir, Chairman. I would like to int~roduce ~at this time "the' exhibits which we 'have previously Mobil' s Ex!hibits A through .... ~.~R. BURRELL: Thank you~ ~c~ Trimble. They are marked. Th~ repr'oductions have been accepted into evidence~ I.~m' now advised Jiffy Cat,ring -~s out tt%ere~ We'll take a t~.~n"~:Y minute i: ('OFF THE RECORD) (ON TI-IE RECORD) · _ MR BURRELL ~ L(~t ~ s reconvene this hearing right now. I understand '~/%ere have been some problems hearing out there... I"d,lik . , AGO 10031607. Page 37 10 11 :,[2 13 14 17 1§ ~2 to point out that the four squat mikes that you see up here are hooked up to this tape recorder in th, e back here° The three taller ones are the ones that reach ~e audience out ~ere~ so who~var speaks, please attempt tc c~ ~.~aar cna of these tall one of ones as well as/~e short ones~ Go a. head~,,~ lV~,~ Flint~ HR FLINT: ~e Flint ~ BP ~}{~i: .... u,,~a'~ .... our next witness is/B~ C~ ~derson. ;{R,~ ~DERSON: ~. Chairman ,~ ~i~'ent,lemen ~, a't ~e previous hearing~ the Alaska Oil and Gas Com~ittee r~quest~ certain ,, ,released at that time. and we have -:' ,~:~f{d[i!~iionaI data ~at we would like to presen% now~ O~ :first slide is E~ibit ~1~, and }[r~ Chairman~ each of '~,e slides and the exhibits were prepared under my supervision~ , and the slides are examt.~ep~.odu~,l~.~n~ of the e~libits ~at yo~ , have ~ 0' ~ BUR~LL- We ' 11 e~;~b.~,e~ for "~"' gl~e~, ~o~,,e ~lata for twenty~t~ee wells cored in the Sadlerochit ~' .... a-~ ' Fez:m~t.~on~,, Tt~esc~ are ali' ~e cor~ data tJlat have been processed.. Av,era~'e porosity and permeabilit d. ata are shown for the entire ce:ued Porosities w~e meas~ed either by +~'~ ....... ~ ~,~'~ ~'~,~2 .... ~=~ S Law or resa,,~,,~t~:a~,i~n method and samples %~e:~::e a';,?e~'aq'ed arithmetically for p'~irpOses of ~his t~stimon'y ................. AGO 10031608 10 11 · . 15 17 18 24 Page 38 parmeabili'ty were excluded from both porosity and permeability data° Air pmrmaabilitiss a~=e reported except where it is indicated 'tha~ the I{linke~g ~orrection has been made. The average permeabili't, ies given on th~ exhibit are ari~meti= averages of th~ wa:~i samples. Th,(~ next slide. The next sl. id~ is E~ibit %2. th a t ~R. i-Y~LL: We'.~b eh'ret/for ,~e record as ARCO 'EXhibi't availablc~ froi~% s~ven of '~'~ ten wells shown on the BP geological . cross sections. These ~ata repre, sen~ ~i.~ s~%ic sh,'ut-in tes't:s or the proje~tion of buildup dal:a to an infinit~ shut-in time. The e~ibit sho'ws ~e perforated interval~ t~e ,test Stati~ botto,~l% hole pr'ess~r~ a%. ~;~e '~est deptb,~ ~e re'corded %ea~p~:'atur,~ a%: "~::,1%~ 'fast dep~.~ and the sta'~iO bottom hole press~ co:c:~?ect{~d ',to a 9,~000' ss da%~. '~his ,dat~ is roughly ~%e baS~- of %h~ oil, co1'~'~%. .Ihe data given t%ere is Wry represen'~ative seven ~,,el..L~:~ on ,~.,~Ix:,,b~t ,~2 is 4460 psig. ~" average of fif'ty- severn pres~s%~re tests in ~wenty walls is 4462 psis',. If d~.s~es a tab~la,~;ion of ~h~ .'~yp~ shown on ,, E~.ibi~ for ~e, fi,fty-.~ev~% available ~.es~s~ ehen on yo~ requ~s,~ we ' . ..,.~ · wall compile ~is da~ and get 'i= J:o, ~e. Co~ttee before. official o~ios,e~ of ,'~i.s hearing... . : ,. - . . AGO 10031609 I1 12 14 15 19 2O 22 24 25 Page 39 .~u~[nibit ~3. ~-' ";~' '~:~' >~,I~'.e P%~Y analyses of seven ~¢R. ANDERSON: ~x.n ............ ~ ~', .,~.'~:~ ...... reservoir fluid samples %,~:~,,h,.~:~,~ ,, ,~" ~.~..:: .~ ~ ~I ,~ .... erochit Oil Pool. In addition to the = ......... "" "' per~o~ ~,-: .:-,,":~ ~ , ,, the sampling depth recorded temperature~ ~:~,;.~:~h~-~::~:~:~','.,ui. ned bubble point pres- · <"' d'; fferential formation sure ~ f lash formation volu:m :::~ ~.~,,,:.,:"~:::?~:' ~ vol~e factor, solution ga~,,.'~,>J,,'~'~ ?,~':?,:<:.i,~>,,~, oil viscosity at b~ble point Conditions, and oil g':~.:':'~:<'~:" <":? ,~'::.?::~;~ ..... 'j?iv'en,~ We feel that the BP 27-11-14 analysis is ~t,?~.,<-{~ most representative analysis avail~le' for. 'the ~ ........ ~'¥ ~'~,,~:'"~ '~',~'"'~'",~:~ oil col~. The 27-11-14 :. ......... ~.~. ,,~ ,.%~ well is cen~ally located ,~,,.:?<~:~:::~'~ "~ ......... ~ ,..,,,,~,:~ ,~..~,~.,~ ,~,,~.,~.~ .... well was selectively perforated over an int~cv'a,[.( ',~':,~'? i~:~/u, ndred feet. With these perforati, ons~ the i'~'i'~,~.i,,d~ ?~,~as a, composite of the . major portion of t~e oil ~"~",' ........ ~,,,,..~:~ ~,,~,,~,~,~;,~,ash formation volume '~'"~ ?':e~<~rt, ed is 1 390 rvb/stb . , . ~.~:,..~.a,l, tcwest, short Ou't of s even. ava i table . )' ¥"'~'7 .:',:'?,,, ~. .... h.~,, inter'al sample was taken f:/:': ::',,:~':; ?, f,?,"[~ ~':~ ?ss (a fif teen foot ' interval) in ARCO's 4-10~,!5 ',',':',':~' '" ,,,,,~,,~::~,,~,,':~ {~:,:,ad qa,v'e a flash formation vol~e factor of 1 399 ~'~ '"':":~": ?'~""~:~ '? +" ~, ...... ........ ~:~erval~ "' was from 8936-8986 ' ss ( a fifty foot i~':;~t,:e:,c,?val} in Placid's 3-10-13 well which gave a flash fc, rm,a,<",:~,'f,,,<::,~,n '"?,~'~i'u'm<~ factor of The next exhibit is E~L~,~,,.,o~.~..~t ,~,~,~,,,. ~,~.,~,,.,,.~,.:,~:, ,~:.,~,:~ ~%,~.~O S Exhibit ' '~' "~'~'~', ...... ~>'~'""",~- ,.~cmpos~t~onal analysis AGO 10031610 11. 18 2.4- Page 4 0 ~,,,.,,~:..~; '"".='s, er'voir fluid sample taken from the BP 27-11-14 well. i'~'e~ct sli~, Exhibit ~4. ~h73~, [~,U/~:r~LL: :Enter that for ~e record as E~ibit 94. ~.~.,D~Roc,~.~: E~ibit ~4 shows compositional analysis weil~ T.h:~s i~ our Prudhos Bay State 91 well. The data includes analysis <~f sepa~'ator gas, separator' liquid, specific gravity ,~,e],2~,..~a~.~. ga~ and hydr~en sulphide content of ~e gas. ~M,~ .... B'~,~{i{ALL~ W~ll ent~~ it for ~e record as ~CO : ~I~:~, ANDERSON,~ Exhibit %5 shows formation water data for ~,a .... Les,o~:~,~t ~?ooi Although ot~er samples of formation water have been taken~, '~e data reported for, ~e sample from ~e BP 3i/10 '" ~''' very representative data, This test pro- d~ced fc~rma't:ton water to the s~face, The exhibit shows ~e We~,tl enter, that for ~e recora as ARCO shows representative ,test data fo'r fou:..~'~ d~'.~ve].,©pm¢~n'~: ~ells in the Sadl~rochit Oil Pool, other but most were for .oth~ purposes and are not :~ai~<ce~'.enta. tiva of the initial capacities' of developmant AGO 10031611 Page 41 Wells' ."Data'of a gan=al' nature includes· the well lo~ation, : ..'date of' the test;. :. the . per£orated inte~valand net feet of. per- these ';' tests being '"reported i'nclude ~e oi'i'rate' gas-oil ratio, water' cut, ::::." fi°wi~g'Weilhead' PressUre, i~le~,i~g' bOttom'.hOle press~e, oil ~"~'gr' vity', 'and"" spe~cifi~?:'pr~u:~tivity'indeX'.~calculat~ from ~e . :::,?~ u~ 'd'i~f~:en~:'-. C0adit~ons ,... .... we "feel. ~t,, ~ey 'are capable of" ' · ,.. ,: .[ · . .. ... '.. '.....,. ~.1 ~fi?~.~;:'.:':;:L~' :.:x~y:~J.':;.'..:,. J.l, :.. 7,: ;_~:t..';.';.';.}I< ;.',:: ;~; L~i' '..... i'?,L %': ::',' ... . ...... ....... . ,."· . '' . Mr. 2!' "! ~'xhibits t.1:~:.~' throU~h :~:6 aa~ t'tea:7 22 25 ',t is. ~' ::: ~Uc~ory stat~ent: and.-si~:at~,'~,'~"tha .point' in the 'proceeding "'?'"" ~'~t":';;;~. Johh" Sc0tt,'Attorney for Atianti~ RiChfield, wall speak ~ ..~eve~al ad~a~aonal" items. ::on-, ,~h'e' call of "~e ~,~~ ' . .' . ......... '"'~ ' .~, BUELL: ...::~'Thank you..' "Go ahead, ~.. SCott.'~ R~PORTER$ AGO' 1:0!0~1'6,12 Page 42 10 11 12 13 1,5 16 17 18 20 gl MR. SCOTT: Mr. Chairman, Members of the Alaska Oil and as Mr. Flint indicated, Gas Conservation Committee, I am/John Scott. I am appearing before you as legal counsel for Atlantic Richfield Company. I relatively field will suggest some/minor changes to three of the/rules contained in Conservation Order 83-B. Additionally, some very general statements and observations regarding Items 93 through 910 on the call of this hearing will be made. First, let me co~nent briefly on Item .%3, Well Spacing. At the first Prudhoe Bay Field Rules Hearing held in November of 1969~ .Atianti¢ Richfield Company requested 640-acre spa~ing for '~e Pr. udhoe Bay Field. In the ~¢ase of the Sadlerochit Formation~i our spacing proposal was supported by all industry representatives who expressed their position at the hearing. ~n testi,~ny we supported our proposal on the basis that the fiel~ was .in an early stage, of development and more data was nea~e~ We requested wid~ spacing to prevent the drilling of unnecessar.y w~lls until the field could be,?i~developed ',to a point where it.s limits could be properly defined and data could be gathered '~hat would enable us 'to determine proper spacing for the field. :£he desirability of early wide spacing for Sadlerochit reservoir is consistent with the concepts presented by the interstate Oil Compact,Commissi,on in their booklet ~n~itled~ ?'General. Rules and Regulations., for the Conservation of Oil and ~.~",~ ~ published, in 1969~ We~ th~refore, have no objections to the .continuatiOn, of COURT REPORTERS 'ANC}iORAGE,'A~s~ 99~01 ' , ,, ,, AGO 10031613 10 11 12 13 14 16 17 19 2O 9.3 Page 43 the present 640-acre spacing rules provided by Conservation Order 83-B for the Prudhoe Bay Sadlerochit' Oil Pool, and request no substantial change in the basic spacing rules. Accordingly, we stand on the record of our previous testimony presented' at the November, 1969 Prudhoe Bay Field Rules Hearing insofar as concerns the justification ~Or 640~acre spacing for the Sadleroch~t Oil Pool. We will, howewer, suggest one. minor change to Rule 2 of Order 83-B, namely, that the figure 600Cf'acres be changed to 575 acres... Since the earth's longitudinal lines converge as they approach the North Pole, governmental sections on the western ed~ge of each range decrease in size below the usual 6'40-acre section as you move northward.. .We request this' change to Rule 2 lin Order to accommodate ~rilling on the smallest governmental section in the Prudhoe Bay Field Rules area,which smallest section contains approximately 577 acres. This change would, we believe., avoid some undesirable administrative in-' convenience. Regarding Items 9.4, %5, and 96 on the call of the hearing, pertaining to casing and cementing requirements, bottom hole pressure s~urvey requirements, and gas-oil ratio test require- ments, we have nothing to present 'or s~ggest except that the existing r~ules remain as they are.. Regarding Item #7 on the agenda for this 'meeting,' covering "Methods of' Preventing Uncontrolled Flows'~'', we do suggest one & R COURT REPORTERS ANCHORAGE, A~8~ 99D01 '. , AGO 10031614 10 i1 ].2 15 16 t8 21 24 25 Pag'e 4 4 change,~ 'the resutn of which will be to require automatic shu=-in equipment, no be installed below the base of the p~'mafrost~ .... ~'~" ~" ' ~[~200 fee~ below ~e surface. Mor~ specifically, we z'eco~'~nend '[:hat Rule 5 of the Conserve'rich Order 83-B be changed to read as follows: "Upon completion~ each well shall b~ equipp~ wi~ a suitable safety ,valve install~ below the base of the permafrost w,h.icl'k will automatically shut-in ~%e well if an uncon'~:olled flow Occku:S.. ~ This change will reflect the actual practice of the North% Slope operators and~ I believe, the desires of the c0~ittea as reflected'[ by recently proposed statewi, de rules. Wa wil,.i fuzt,her sugg'est that RUle 4 of Conservation Order 83--B be cha..nge~i so as to :reflect language contained in your ~e~e.n~,,.~.,./ proposed statewide rules, namely, ilAAC 51 095 The proposed change in Rule 4 would als° allow the use of higher actuall~ working pressure blowout prevent~s t. han/requ,~red 'for formation contu:'oi] ,,.w'i',thout ~he require~nent for unnecessarily high tes~ p~=es,~,~uz.,~,: ..... ~..s:~. Specifically,. we suggest that Rule 4 be changed to r~ad as follows: (Copies ha~ed to m~ers of Committee.), (a} Be:for~ dr. illing b~lo%,~ ~he ~ casing s'~ing' required by , Rule 3 (c)~ all drilling wells shall have thr~e r~otely con- c:c ~., 11~..~c~.ov~OUt preventers including one equipp~ wi~ pipe z~ams~ one wi~h blind rams~ and one bag' type. ~I Series 15Q0 AGO 10031615 Page 45 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 (5,000 pound working pressure - 10,000 pound test pressure) sba be installed prior to penetrating the Permo-Triassic formation. Ail such equipment shall include a drilling spool with three- inch minimum side Outlets (if not on the blowout-preventer body~ a three-inch minimum (or equivalent) choke manifold, and a fill- up line. Ail equipment shall' have a minimum working pressure capable of~ withstanding formation pressures reasonably expected in this area at the depth being drilled with adequate safety factors. The drilling string will contain one valve above and one below the kelly during all circulating operations with the kelly. Two emergency valves will be conveniently located on the drilling floor with .rotary.subs for all Connections in use, one valve to be an 'inside blowout preventer' of the spring- loaded valve type, and the second' %o he'of the manually-operated , ball valve type. (b) All blowout preventer z.~ms ~ kelly~ valves, emergency valves and choke manifolds sk~ll be tested to the manufacturer's recommended working pressure when installed or changed and at least once each wee'~ thereafter. An operator may request a~ 1 of BOP equipment~£ated at a higher working pressure than required by (a".t'~ In this event, the 'operator will not be required to ~est the BOPs' equipment to ,a pressure in excess ~f that which ,/ould be required for the equipment specified under (a), provided the approved drilling per~%it includes a statement of thru ~pe~r. ator's intent to ~test at the/lower pressure. Bag-typ~ . R & R COURT REPORTERS 8~'1~ W~T IrlGHTN AVENUE -- I~UITi~ ~ J ~"~ ·/ ~??-~?,s AGO 10031616 ANCHORAGE. AL.A~KA 9950! , I Pag-~ 4 6 10 11 ].3 14 2O ,21 pz'~venters shall be tested to the reconmlended working pressure when ii',~.staii, e~ and ~o fifty per cent recor~e~ working pres- sure onca ~ach week ~eafter. Test results shall be recorded on ~ri~en c~a~i.y ~-ecor'ds kept at ~e w~il (c) Ail Dlowout preventer eq~uipment shall be adequately protect~ ~o insur~ reliable op~ation under ~e existing waather conditions. All blowout preventer equipment shall be checked for satisfactory operation during each ~ip. The ~se of blow'out: praventer equipmen~ shall b~ in accordance wi'~ go~ ss'~ablished pr~actice and all equipment shall b~ in good ope~'ating ~ondi%i, on a~ all times. 'f ~ 2[ ~'uight point out :~%at~,~wa:,;will have a technical witness , available to answer any questions 'you hav~ about this proposal. Ttl~a nex'~: i,~em on ~ie call of .the hearing', N'~[~ 8. covers th~ $'~,lbjec't of "Administra'~ive. Approvals,. . 9~,~R. ~ lvIAP~.t~LL: Pardon me ~ ~. Scott, Would you choose to not per se ju~"c~ ~ p~i~3'~ of ~%,' s=a~emen~ and/tes'~imony~ We f~nished you C~O~3~ias/"fof c:onvenienc~ sake~ merely so you ~ould follow along the 'T~:i~ n.~.~x~::. :i.t~m on ~.~ call of '~le h~aring, 'N~~ 8, covers AGO 10031617 .i 'i'll' P a ge 4 7 .10 11 12 14 15 16 17 18 19 20 21 9.2 9.3 9.4 9.5 Excuse me just a moment, please. MR. FLINT:. May I have one moment, please? Mr. Flint, MR. BURRELL: Yes/ go ahead. (PAUSE) MR. SCOTT: Excuse us for the delay. Regarding Items #9 and #10 on the agenda for this hearing (covering 'Plans for Disposition of Produced Gas' and "Plans for Reservoir Pressure Maintenance'), I will call on Mr. Ralph Cox, Resident Manager of Atlantic Richfield Company in Alaska. Mr. Cox will be speaking to you,no.t~:.as a scientific or .technical witness, but in his management capacity. Therefore, it should notc.'-.be necessa! many for him to enumerate his/technical qualifications, although of course you will want to swear him in. MR. MARSHALL: Why' don ' t you remain standing, Mr. Cox, and raise .your right hand? In the matter now appearing, do you : swear to tell the t~.uth, the.whole t~uth, and nothing but. the truth, so help you God? MR. COX: I do. MR. MARSHALL: You may be seated. MR. COX: The first part of my statement deals with 'Plans for Disposition of Produced Gas'~ Our. current.-field~development plans with regard to the Sadlerochit Reservoir include plans · which are directed-towards the conservation .of produced gas in accordance with Rule 8 which provides, '~The venting or flaring of gas is prohibited' except as. may. be authorized by the~ R & R COURT REPORTERS 8~B WIgleT EIGHTH AVENUE- SUITE B c' 77-4T ! 3 ANCHORAGE, AI. ASKA 99~01 AGO 10031618 Y 20 ~.,,o~,u'~_Cu~:.;e :..i~. cases o~ emergency or operational necessity. l:aue~iately following ~at'~e State Lease Sale late in i969~ c~-'!e cl. ev'e:~ pa~c'cicipa'Cin9' companies formed a Pre-Unitization Gt~s Conser"v'ation Subconu'ai, ttee to study gas handling and gas ci:::il.'i~:'~,:i~i.c~::~. Nor'e zt'e. cently~ '~he Ralph h. Parsons Company has been empl. oyed ce make $'t:edies and reco~'u'nen~a'gions regarding gas handling z.<~,,,..~l~.t.~.~,..=, fos the 'Prudhoe Bay' Field~ The studies will cover 'v'a, rious alternatives for process design~, gas 9'athering~, ,c. omp~"ession and inje~'tion equipment,. Consideration w'ili be given '~o several, different combinations of in'jection and/or sales p~rog'rams. This ~t'udy will evalua'~e the feasibility of various gas ~ra~c,herin,g' systems and cen~'al compression plan'cs .,. wi,::h :facJ.,l, iti, es tha"~, can be converted from injection to trans- ~:issien }2e:cposes should this prove 'to be desirable~ This is onl. y a brief s~'~t'~ary of a great deal of wo~'k that is ~:n{terw'ay' w'h:i, ch wii,,l previde 'the basis for specific detai,',led plans :::or co,nse,:"v'a'Si~en a,nd be:lef,ioial use of t,he N"ortih, SLope gas ",cese:rves,~ Wlhile ,it i.s recognized, that. o~' statement does 'dO :ope '~h. is Com;'::it"N:e ::e(~og:lizes ::hat it is imp:tactical 'Ui'::e op:~:r~,toz's to .... -:~, pecific a ;¢~,. anymore s t ~'~is time. in m, eaRtJ.','¢['~e.,, Rule 8~ es written a~d adopted' by ~'.Jle Aiaska~ Oil a,~'l,d Gas Co~ps~ittee for Pz'"udhoe Bey F,ield~ effectively prevents wa, s'~,e~,, and we see no reason for changing ~lis Regar'd,;it~'N~' o's:u: Plans for :[<eser~;oir Press'~'e Ma, i,n't:enan~e? AGO 10031619 10 11 13 17 18 20 9.1 il ili~ P a ge 49 the plans for optimizing recovery are dependent upon many factors which are currently unknown and could b'e contingent on the actual reservoir performance under producing conditions. Plans for projects, whether required for the whole p0ol or only specified portions, will be based up~ninjecting the necessary volumes of fluids, if and when the reservoir per- formance studies so dictate, to optimize' oil recoverY con- · sistent with good .reservOir management. work Reservoir s$imulation/is being and will continue to be carried out. 'The results of these' studies, should indicate the' . . possible Volumes of injection' fluids and injection points ~hat may be required to incr'ease recovery· under various reservoir voidage rates and producing mechanisms. The results of the simulation wOrk will become more reliable as the field is fully defined and further data is generated. ~MR. SCOTT: .That concludes the presentation by Atlantic Richf!ield 'Company. At this point I '.will yield Flinty who will comment on the final item which appears on the agenda of ithe hearing, namely "Plans for unitization". Mr. Cox and MR. BURRELL: Thank you,/Mr. Scott. MR. ~LINT: Mr. Chairman, Mr. Cox, together with all other witnesses will of course re~ain available to answer any question~ , you may have later. Turning t0 the item on Plans for Unitization, refer back to the hearing on November 13, 1969, at which time a letter of R 6; R COURT REPORTERS Ii~,~ WI;BT EIGHTH AVENUE- BUITE ~ 277-4713 . ANCHORAGE:, ALASKA 99501 AGO 10031620 i. 0 ii 14 ],8 2i '2, 2 23 24 i'x'~'a~::i'~.t l-xc~'Vio~siy ~ubmitted ~o eleven companie~,~ w'a,~ presen-~d . ' ~ .... re. We~ are t%anding' o'uL '~o v'ou now a copy of r. he ~tt~.'~:~.~n:en~ 'cl].a-~ i~ am r~a~iing b~causa it contains some a~i,~'~ 2ou mz,.y wi~.h. :o refer to. I :hink ]'. '!i wai.'~ un't~.l you ~-~UDi~:~N~.~ ~ Can ~ ~>4R,, .::.~z~ If yo'~ have ~ha~ stat~'~'~en~ be~foze you/~ I 1i '~?~is le'~:.'Z~ ou'tlJ,.n~d a proposed unitiza'~ion of the acc,~ulations as defined by the Prudkoe ,i~ l.,:~sio hydrocarbon ' '~ ..... " ~' '" shor~,iy aft:e,r "the hearing. A copy of the letter of in'tent is ae%ache~i to this s~missiox{ for yo~ records and basically outlines ai?'. ,aglt'e~d,. to basis of unitization. i=~.Ll of 1969~ 'ghe Steering Co~m%ittee convened and ~,~.'e~ '~" s'~:uctu~'e w'as o~ganized This organization is sho>~,~il on 't31~ a't:,ta~he~d pta't 'called BP No. 1~ part of this , ........ ,~ ...... .~,. .......... ~,,,.,:, .... a, nCl the aI'ea 'to be unitized initially is ~tlown on E:~:~,i, bit No,,, 2 '~?~[ iz2i;i.s submission. At this poin't~ I think it E~llbit G. '~h,ii: s~ib~nissJ,,,on w~re ~dent~z, led as BP "'' '~ }V'''~ : . last, mentioned ,~:;,,.r "r"NT Since '~lat/'da'te~,, tho sub~o~tiittoes' and various t, ask fc,,.~ca~ attacl'i~d to the s'uboo~nitt~es have 'been mee~'t:ing' on' an a.i~'~o$% ~:~;~zr'~,izr~ou~ basis and a g'r.~at, d~al, of, progress has AGO 10031621 10 11 12 13 14 15 17 18 19 2O 21 9.5 Page 5 1 been made. In order to illustrate the amount of effort that is being devoted to unitization, the attached table shows the approximate man hours that have been applied to the effort of negotiatin~ the terms and conditions to be implemented. It must be realized that in light of the sparseness of data and the enormous size of the pool, it is imperative thiat every consideration be given to the possible factors and future events that may affect unitization. This, unfortunately, . requires time. HoweVer ~ definite progress has been made and every effort is continuing' to lead to as early an unitization as possible in order to optimize the development of the field and to protect the environment of the North Sl°pe~ ' for the purposes of this hearing It was felt/that a report on 'the specific progress by committees' and subcommittees would not assist the Committee at this time; however, we would like to point out certain areas of progress°. : The Legal Subcommittee has. prepared a draf~ Unit Agreement which has been discussed with the Oil and Gas Conservation subcommittee is Committee. Tho~'same/¢urrentlY working onan Operating Agree- ., ment. ~ The Geological Subcommittee has prepared geological maps and has reached agreement on the 'interpretations for the- majority, of the field. .It is hoped that complete, resolution will be possible 'in the near future'. We ~ould es'pe¢ially like to indicat, to the Committee ,that, . . R & R COURT REPORTERS ~77-~7'3 AGO 10031622 A~C.O~A~. ^~S~ 11 Page 52 yet un~.a£za'tion has not/been completed~ benefits are these d.~ri, vad f~?om/.pre-un~izat~on efforts, Enviro~:n~'~en'=ai Subconuui'tte~ is actively engaged in. Subcom~itt~ is coordinating operations' prevent minix~'~i, ze s'~'face usage and/dist~bances, develop a plan of unitization ~a~ will conse:~:'va'tion and protect corr~lativ~ rights in '~%at s~atem~nt concludes o'~ presentation Ord.' No. 83-B. I think in light of ~e me~ you hav~ desc~:ibed', it still would be useful Chairman ,and m~rs of ~ Alaska Oil and n'~y nam~ ,,is ~U,gene Wiles I am , . a'~'~..~ ~ ~ AGO lOOB162B 10 11 12 13 14 15 16 17 18 19 2O 21 29. Page 53 California. As indicated by Mr, Flint who represents BP Alaska, Inc., I will confine my. statements to Conservation Order 83-A, which concerns only the Kuparuk River Pool. Since the last hearing of November 13 and 14, 1969, which resulted in the establishmant of temporary rules for the Kuparuk River Pool , there have been insignificant data ob,rained from additional wells to present · meaningful, updated testimony on:aay of the eleven agenda items outlined in your' notice of' this hearing. We would, therefore, like 'to stand on the record '.of the previous hearing and respectfully request no change in ,the Kuparuk River Pool field rules nor the area. affected by these rules at this time. MR. BURRELL: Thank you, Mr.. Wiles e MR. FLINT: I believe that's all that the comp,.=nies that. participated in these efforts are prepared to present at this time, Mr. Chairman. I did identify this one ~dditional Exhibit G in ~my last statement. MA~::.:~I !~es~e]':..~h~.~='~,s?ad~T~t~d$. MR. BURRELL: That is. admitted i~ the record as BP Exhibit Ge MR. ~LINT: Thank you, Mr/ Chairman. In that case, we have nothing further to off-' .at this time. MR. BURRELL: Thank ~./ou very much,, Mr. Flint. At this time .i~.ili?..as~ if t~lere~:: ?t~ybody else in the audienc~ who'wants ~to testify or make/~.,.,'~tatoment., I think we'll probably ~ep~¢&'n~.'~, ":ime here, we"Il probably, hold up ~e qu~s~ons R ~ R COURT REPORTERS ~' o~ w~ ~,o.~. ~v~.u~-- ~U~T~ ~ AGO 10031624 /", . 277-4713 ,//, ANCHORAGE:, A~$~ · Page 54 ~.,,~vzi::ij., this afternoon...W~;mi~tadjourn early for lunch unless t'h~e:~i~e's a great deal more testimony. W~'~d anybody else tsstify or make a statement .for the record. (Pause) . please come up and identify yourselves, who you represent~ . ~9~R~ ~ILSON: ~. Ch irman~ my name is Thomas Wilson~ : ,~,~,~..~,~.~.~ageDist~'~c.~b~Expt:ora~iph,,~'anager for Marathon Oil pa.rticipan*~ in the Prudho~ Bay unitization efforts. On b~half Marath~n~, I wish to state that we are essentially in agree-,~ c with the t~sti:mony presented by Atlan~i~ Richfield Company ~z~:it'ish Pa~oleum ..... BP Alaska,. Inc.. and Mobil Oil Corporation ~r~hei. r rsqums'c for field rules for the prudhoe Bay Pool. . ~.:~ch:~%.~v~ un~t~zat~on and prope~ development of this impor~an~ l~lR., BURn,ELL: MR. NUNL'EY: Thank you,. Mr, Wilson. I am R, ~K, Nunley~ representing Amerada Corpc~ration~ We support the request made here today to continue t.n~ fie~ld rules now in effect:for the Prudhoe Bay Sadlerochi. t Qi. 1 3[~ooJl~ with the proposed changes in Rules 4 and '%q'e al~o support expansion of. the Vel~tical. Iimits of the pool 'ao include tl~e Sag River ~.and Shublik~.4 Although the Sag ~:~.~tve~:~ and Sh%~blik may not be hydr'ocarbon~..bearing o~r as large , an ar~a as~ the Sad,,~erochi't, neither could b~. economically .~...!~.cd ~ep~rate from ~ Sadlerachit, Since ~ey 1 .b~ ,p:~'~",~d, uced. togetd%~er.~., they. should be classified, as a.-singl~ z,~=.~7~ AGO 10031625 10 11 13 '17 19 2O 29. ~. 23 Page 55 Thank you. MR. BURRELL: Thank you, Mr. Nunley? MR. SAWYER: Mr. Chairman, Members of the Alaska Oil and Gas Conservation Committee, I am Jerry Sawyer, a representative of Placid Oil company and various Hunt Accounts,, Placid and Hunt own interests in certain State of Alaska oil and gas leases / within thei Prudhoe Bay' area affected by Conservation Order 83-B. Alsov we are actively engaged ~in the 'current Permo-Triassic Formation unitization efforts. We ar~e basically in accord with the prepared testimony and exhibits as .presented here today by British Petroleum, Atlantic Richfield, and Mobil and Support the field rules as requeSted..i In' our opinion, adoption of these field rules will be to the best interests of 'conservation and will provide .fOr proper development and operation Of the Prudhoe Bay Permo- . . Triassic F~rmation. ~ Also~,~iMr.%~i~Chairman, I have a. statement for the record nd from Louisiana Lan~ExploratiOn Company which I'd like to read. The Louisiana Land and Exploration Company is a holder of !. interests in certain State of Alask, a' oil and gas leases within the Prudhoe Bay area affected by Co~nservation Order 83-B. The Company is lalso 'a participant in the current unitization effort directed toward the Sadlerochi.t Oil Pool, ~ We have been furnished, information concerning the field rules ,being sought by British Petroleum~. Atlantic Richfield , R & R ~:OUI{T REPORTSR~ 8~B WE~3T II~]OHTH AV~NU~ ~ ~;T~ ~ ANCHORAGE, A~8~ 99~01 .. AGO 10031626 10 15 18 2O 21 2~ and Mo£~ii~ as ~eli as most of. the prepared testimony and engineer, lng exhibits '~.o be presented at the hearing. We are in agreemen~ with the information f~nished and we endorse the field rules bei~]'~ sought. In our opinion, these rules wilk foster good conservation 'techniques and efficient reservoir development and management. They will prove beneficial all of the interests in the Prudhoe Bay Fieid.~ including the State of A. taska~ and we therefore urge their adoption. E. Williamson~ Exec'~i'tive Vice~Pre~ident~ Louisiana Land and Exploration Compa~%y. HR. BU'RRELL: Thank yo'e~ 1~'. Sawyer. ~' MR~ C~{~L.~WAY~ ~'. Chairman~ Meal'S}ers of {~2he Alaska Gas Conservation Co~m~i'ttee~ ~ am R. O. Cailaway~ a representativ~ of Getty 0il Company. Getty 0il Company is presently co-owner of ce~'.'tain leases in t'~e State of Alaska affected by Cons{~rvatior Order 83-~, Ou, r company is also a parti~ipan'~ in the pre-unit ac'tiv'i't~:ies i}:,~resent, ly being conducted. ~e are in ,.~3enera. 1 support of the testimony presented here B.~, Alaska~. Yncorporated~ ,Atlan'tic Richfield Company~ and Mobi,~ Oil Corporation and feel 'that acceptance of thei;r reqees~ will be in, t, he bes'~ interest for the S'ta~ce of Alaska end 'will provide fez:' an oZ}de~ly development of the Permo-Triassic M,R,~ BU'.R~LL~ Thank y'ou, N~. Cal. laway. , 24 AGO 10031627 .e Page 57 10 11 12 14 15 17 18 19 20 Refining Company. Humble Oil and Refining Company Supports the recommendation of Atlantic Richfield~ BP Alaska~ and Mobil Oil Corporation for the rules {o;govern the Prudhoe Bay,='Shublik and Sadlerochit and urge t'heir adoption. Thank you. MR. BURRELL: Thank you, Mr o Holmesley~ Is there anybody else who wishes to testify or make a statement? Let's go off the record for about one minute here. (OFF THE RECORD) (ON THE RECORD) MR.. BURRELL'. Back on the record~ we~!l adjourn for lunch . and return at '1:15 and commence questions at that time. (OFF THE R~CORD) (ON T~-:~ RECORD) '11 MR. BURRELL: Gcod afternoon, la~ies and gentlemen~ We, reconvene this Oi) and Gas' conservation Committee Hearing° As a matter of forrat; .I thought what we'd do is run through the agenda item b' item and call the people who testified as to that and the Divisio] item to coF: up and answer questions of the Committee/at that time; an/ then after we run through the entire .eleven items~, we'll ,.~pen it to questions from interested and affected parties in t]:e audience. So Item #1 on the agenda~ which is Area to be Af.ected by the Orders, would the pe, ople who testified on t2~e Are. come up to the ,stage, Please~ and we will ask questions. MR. FLINT: This-is Mr~ F~lint from BP~ for the record. We .will have people available to put up 825 WEBT EIGHTH AVENU~ ~ ~U~TE ~ ANCHORAGE, A~G~ ~g~OI AGO 10031628 ,t 10 11 12 13 2O Page 58 'no refer uo in questions, and 'the slides are also available for ~se. in c.~'oss examina'tion. ~ .~.~UA].~2~L: Thank you, b~r. Flint; I'm sure we'll need then Ail :c'ighn, item one on the agenda: does anybody on t?.ze Conm'~ittee question '~'.£~h respect to the area, or would they like to have an.y' e. xhibi't p~rg up. ~'. Marshall'; do you have a question? Actually not at the moment, Homer~ blR. ~ILD~ETI-I: iv.S=, Walker, on your E~d%ibit C structure map, ove~: in the northwest, er.'n part of the area that you have colored, you s[how an area underlain by water and then to the north of it there'apparently is no other information. Do you believe 'that th~ area that's uncolored there contains hydrocarbons? biR,. W~.d]KER: I ~m sorry~, I 'm not quite, sure which area you're PiR,, GiL]3RE%~H: Weil~ I ~m referring to the area s~raigt~t hOSt Of t'.he TM Rile in 'that vicinity .~,ileen area in. T12N, Yes In 'that area '~2%ere, we .have no data avail able '~o L.t:~.~.~ g'~={'3'%J[p '~,O (~O~%tizlue mapping up into tha't; area at time~ so we have not mapped tha~ area, this And this is because no wells have been d.rille up 't. hez'e at t~his t. ime? ' . WA.LAER: That is true, },iR '" .......... ;" There, are no wells available to ..tmm'~.~d. ia~e area. ,. .LbkEit~" Over in the north cen~'ai part of 'the field, ~, .,~, ..... ~, , in 't:he .... '~ ......... "' ' ......... Renge i~E, you show a fault, , . , AGO 10031629 10 11 12 13 14 15 16 17 18 19 21 22 25 Page 59 and nothing beyond the fault. Does this imply that you have no information or that you think this is a separate accumulation? MR. WALKER: The former, Mr o Gilbreth; we have no informati¢ there. The group .and the companies involved could see faultin~ in that area which we have interpreted as a fault downthrown to the north as indicated, and we have no information available to / the group further to the north so we have not included it on o~r MR.~ GILBRETH: In your opinion~ is there enough throw in the fault that it'might be a sealing type fault? MR. WALKER: It's difficult to answer that sort of a questi¢ under what conditions faults may be' sealing or may not be sealin¢ and certainly our work is not clear on the exact throw of these faults, s~ I couldn't answer that question specifically now. MR. GILBRETH: My concern here is that there's ~ fairly · large area there that there's no testimony on that will be subject to the rules° Did I understand you to say in your.. testimony !ithat there is a difference in the gas-oil contact in the east and west parts of the field? ' i ' MR. WALKER: That is correct~ and it's indicated, on the map .as 'such. ~ ~MR. GILBRETH: Was this meant for the two separate colored areas, or' was it a difference Within the eastern area? ~ MR. WALKER: Nee .The map indicates on the eastern side the contours of the down dip limit of the'gas is at 8572~ and on the western side the contour indicates' it's 8775 R ~ R COURT REPORTERS 27~-4713 ANCHORAGE, A~;~ 9950~ AGO 10031630 m~ Page. 6 0 MR. GILBRETH: Is the. ~is-gil contact, so far as you can tell, level in the eastern p'~.iQn., of the field that's colored ,, y'ellow? ~i.~, .~.. MR. WALKER: No. In individual well basis, there are. dis- crepancies which we can't Ye.t~.e~la'in, and I ha~e '-said ~at we'v~ .. . accepted ~s a compromise ~ le~i plane Certainly on the Well logs we've observed slight, variations. ~ ~:~he MR~ GILB~TH: ~at.a ..... ~, water-oil conga, ct; is that a similar-situation? ~'~, .., WALKER: B, I think it was, yaried · . The rang~ of 'variations'" MR. ~.ILBRE. TH: In the ar~a of southwest corn~ the major ~fault of tha'~ should be P o o 1 ? · MR. WALKER: I ~O' ' happens in that area; da'ia available to u~, HR. GiLBR~TH.: Thai MR. KUGLER: Mr. W~ ghQut ~he area we had mapped · ·, I think, ..on .Exhibit B. (p~use.) I'm sorry, sir l',, ...y~u show not'hin~q beyond ,,: WhiCh is in the extreme that,-the area outsi¢le Bay.. Sadlerochit [nion '!specifical,ly what area wh~r.e .W,e';i"dO,..,~.not have .. ',{.';",~0,.~,:'.'.hav...e: ~ iwell in !2N, 13E, .r~he Kup River~ The legend °n.~hg?:ma.'~ tliis' w.ell'3enqountered oil : .... .,~,,~.,....~,~ .... ..,..~,.:, Says ..... .... '.. ..:'~' i..n th~ Sadlerochit,' and i..t,'i.~.?;..no~ Snc!~d~ in anY'.of this. Coul~ ~, ..,. ,, ,, 1 0031631 'l 10 11 15 16 17 18 19 2O 29. Page 61 explain why this is not included as having an oil-water contact so much --- how it fits into this structural picture? MR. WALKER: Yes. The data on that well was made available to the group. It has a ,.top of the Sadlerochit at 9188' as indicated on the map; it also had a small amount of oil in the top of the Sadlerochit. It's in an area which structurally' we are uncertain of the interpretation, and we cannot say at this time the relationship of this well to the area further south. MR. KUGLER: I see. And you 'feel like it should be include~ as part of the Sadlerochit oil pool? MR. WALKER: No, I have no feeling on this question~ · saying we're l~ncertain of the position here° I have no specific feeling as to how it can b~ interpreted at this time° MR o KUGLER: I see, okay° Thank you° MR. MARSHALL: Mr. Walker, could you detail for us the geological justification of the north boundary fault? MR. WALKER: Yes. Ali. the groups involved combined togethe~ to make this map recognized there Was faulting in this area, not. necessarily restricted to one fault. This map, I've said.before, is a compromise which all companies can live with, and we. all recognize that faulting ,occurred in that area and was down thrown to ithe north, and we've shown 'this as a single faf~lt~ and that is the limit we can interpret the data available to us at this time ~ MR. MARSHALL :' Thank you ~ R & R C:OURT ~EPORTE~S 82~I, WEBT EIGHTH AVENUE-r-- ~UITE ~ 277-4713 ANCHORAGE, ALAS~ ~9~0~ AGO 10031632 Page ~2 t,, MR. BURRELL: Mr. Walker, how do you justify including · area nor.~h of the fault in some rules unless you're willing 'ko make the assertion that it is pressure communicated with area south of the fault? The's~ are.pool rules, and the def initic of a pool is a separate accum..~lation. ., }~R. W.DLLKER: Yes, s ir . ~?.~'. hav~. said we have not got information available in 'and we'r~'unce~ain of in~erpmetation. The area' up~ ere'2',hes previously been includ~d~ . We canno'~ suggest any ~viden~$ to change it a't that stage, and certainly it satisfiea us in ~r minds~ with the uncertainty involved~ 'khat w~ would not be doing anything d~imental '=o p~Tactice b~ leaving the rules as they are as they apply at presen . . ~. BUR~L: We've received absolutel'y no test~mgny on any- thing nor'th of thau fault~ ind~'cated faul= but yet we have from yo'~ar map indication there are hydrocarbons there, and we da~pez'at seek some kind of clue as tO '~Bether or not you consider i~ in th same pool or not and beuausa t~%~s.~"are pool rules~ so we've got to have some kind of a handle' .~ on this or we'r~ going to have ~o t~.ke ~he assumption 'that we ~a~'not ~extend ~ese pool rules int'.o an area in which wa are off, n~, '~stimony. - MR~ W~KER: We've go~. )ns ~p ~e.~ on on~ we!] only, Kup River State~ a.s hydrocarbon, ii have stated aGre~what~ is the significa wells up there, information ~.. ely ou~ map as~ .encoun'~ering .cannot de¢ida~, or ,cannot t Well at.this', stage. The '~he: . . Page 6 3 10 11 13 15 17 18 20 to the group by the operators. MR. BURRELL: Let me ask you a question. Since there is no information available, would you see an objection to having two~ separate Sa~leroc_.hit pools roughly separated by the fault there? MR. WALKER: I would be unwilling~ to speculate on the information available to the group what occurs up there. MR. BURRELL: Thank you, Mr.. Walker o MR. GILBRETH: 'This is Gilbreth. Mr. Walker~ on the north east side of this same exhibit we've been talking about~, you sho~ a tru~ncatlon base Sadlerochit sand. Does this mean that east of that line that the. Sadlerochit sand is .missing? MR. WALKER: That is the~ implication in the map, but I must point out tthat different groups have different interprl-.etations~ and this represents a compromise. There are no wells in this ara but at the moment we think this is a reasonable compromise of the position. MR. GILBRETH or another'? MR. WALKER: In other Words~ this lin~ could moVe one way It certainly could~ yes~ MR. GiLBRETH: Well, .I was wondering about the area clear , on up toth~ edge of the map there. Do you. t~Sink there's a' likelihoOdl that the po°l could extend over to some reasonablo · distance' there? i. MR. WALKER: I think the '].ikelihood - it's a reasonable corn- promise in~terpretation. Anything is possible~ and as .T say~ oth~ interpretations are possible; but 'since this interpretation .i R & R COU~T ~EPO~TERS 277.~7,~ AGO 10031634 ' ANCHORAGE, ALAS~ 10 11 13 16 2¸0 gi 23 Page ,64 was a compromise acceptable to all, I think it must be treated as the most reasonable interpretation on the basis of data avail~t HR. GILBRETH: Ail right. . MR. KUGLER: Mr. Walker, at our previous hearing on the Prudhoe Bay areat the well in 13N10E, 'the'~{avearak Point well was the only well that indicated it had shows in all three formations, the KUparuk River, the Sadlerochit, and the Lisburne. And I notice at this time it's called a well data not released ' · well. At .our previous hearing it was indicated· that there were shows, in this well in the Sadlerochit. MR..WiALKER: That .is. correct, but this represents a group map, and '~,ho group has not been supplied with any information on this well.I MR. K1UGLER: I see, and there i's nothing to indicate that the , area around the Kavearak Point should be included in the same poe rules, as the area you have colored there? MR. WALKER: No data has ;been supplied ~o us by the operatox on this we,ll, so we can't draw .any conclusions either way. MR. KUGLER: Do you think it would be ~a seParate pool? MR. W~ALKER: I think 'the~questions on this .well should' be refer'red to the operator. The g~oup has not got this informatioI: and such qge~tions arise. I 'm in no position to answer t~at question concerning wha~ happens, in ~hat well. 1~{. KUGLER: ~ see. Thank you. ~R. BURl{ELL: Mr. Walker,, I have a question which your couns may wish 'to refer to on I.tem #9. el Item %9 is Plans for Unitizaticn.. R & R COURT RF.,PORTE:R.~ ~.g$ WE~T E:IGHTI'I AVENUE- 8UITI~ I~ ANCHORAGE, A I,.A~IKA AGO 10 ~ 0~1635 10 11 12 13 15 17 18 19 20 21 22 23 24 25 They may want to refer this question to t~a person who deals wit~ that item, but let me throw it out now~ and I"ll leave it up to your people to decide on. It's my understanding and there's beer testimony to the effect that there is a unit plan for this area in general. We have not seen t~%e out.line of the unit~ the State hasn't yet'. I understand you're still resolving 'that among your- selves; a~ least as far as I know~ 'the State has not seen it. general criteria we apply to a proven area as being logical for unitization is that it encompasses'one or' more pools that are pressure communicated, if not actualls? fiui~ i:n con~a~nicationo 'if I wonder we're going to have a situation here~ and this con- cerns me, Whereby we .have testimony to~ay that we cton~t know Whether or~ not different area~ are in communication~ and then wh( the unit comes in for approval, sudclenly?;everybody agrees that half of itl is in or not in. Is there going to be a change lin stories, i~ other words, in a irelatively short period of time? Now, I'll ~let you people, decide whether you want t© field ~this now or later. ~ ' -~'~ ~ str ~.ct geologic MR. WALKER: Well, I think it goe~ be¥ond~ .... ~ '~ testimony, and I prefer to refer that to a %~itness who might be called in response to Item MR. FLINT: Mr. Chairman,. if I c©%~i~-t just respond not as a witness but as a spokesman on ~this matter ~ I think it's clear f~om what Mr. Walker has said ithat there is not necessarily': an. absence of., the kind of data that will .permit a d. ecision to,be AGO 10031636 10 11 13 18 2,0 2:[ 23 25 · ~ .: '--~, ~ ?.' .. ~ :'T'u , · 'j- ', ' . .... .: =', 3.., ": . ·, ... ~.. f., '. . [ '', . · , , :' ' . i '. , '. ' -,~.' "! '.t." f \-'-"' '.. c~ , · . :' ' · . ~ ' ~" 3 ~ .. ~'. .... . ~'.: ~ ' ':" .'7" ' '.- ~. ~ · .'; k% - made of a scientific 'nature, ','bu~ thap- e' ~aeg consensus which permits, ;,:, him":'to .~'~;~i~ oh':th~'$~'~, .gint. And.,, I' .-' .. think that ~t s not un$~k~.,'~.a~ ua~t~z~t~a ma~ mo~' ah~a - p~.e~entat~on 9f ~e k~nd 9~ ~.eT~gC~..~.:.ygg.,.~g ~e ~sg ' · ' ' .... ~ " ".% .... ' .-:' ' '~ 't.'%~ ,~. ~." : ' . " , - ' · · ' · '~ ~ '.: ' ' ~' ' "'":~, "':.'":~' '. " .." , : ",-a'.~f: '; ' ' '' ' un~t~zatlon that will b~ /s~ti':~f~=t~ry., to you.'Y~"! don't t~ink ' ' '. ' ~ ~ ,~ , ' ' ~3 · ' . % ' ' ' ' · ': ~ ' ',~ ' '~' that they,'re nec,.~s~ar~I~ .:i':s~en~: .~.~, '". '.'.. '~":"..,:.~,:'";"'..~"' ~ '~ '' that ha . . the geological pic't{~e .. · .. ... i. nforn~a'~ion or greater: , ' ' ,~.. ' ".;"': · ',:'.~,.~: "' ".;..'5':.' ~..::'.-. , ,. aillO~l~' t~ ' ' ' ' ' ' ~'"'~' ' .... "'":~"~ ' ':"" '" ' ' ..... '"" par t ~c ~nt's~'. abo~'~...-~ -r~a't-~ -. .,' .. ' :':...::'. . :,::....:': '.."."-.; :..'." · :.. ' '- "'" ..... ~:' ~<Ci?:,3''~, ',' '" .;.;:~"..:[":;,~ .... :'":'::i..' ' " ": .' ~ ;, ,t,,* . · ,~.1 ;.. : ...~ , '"... · MR, bUR~,L.~ ,,~ :' .. ., from . .. ., say~ it might naca~$i- ,., ... ither ., a boundary thai; we m. ign'~.'"b..a..:,in'ds:~%!i.~d:.it0 se.~.:.... ~o...~i.~' · ' "' ':: · .".- .' .... ', "' .....' ' ,.? :~. ~' "i: A'i .' ,:.~ .... .... ,,. ~ , - .....~ ',.,, . .~ '. ..,~. ,,,.. ', . ' .... .. ," . ,... . . ::..,., ,..- ..: .... . of, today '. ' ' ' '-.'· " ;'-" '.". ;i"',..[',,j.'-.:%: :' %: .... . " ;,':~" ','..-..'.g;:..;'o.' '', .. .... .'-' 7.::',."..'sf" :": :,.:f':,.?7;".';...... .-.: . ::' .'~ ~ ~ · · '.' · . ', .~.";9%".~:~,~'. :~: ..... ~' "..· ~,... .... ':. '~F~ .... .~ '~ *~' ~ ...~... .. 'F' .'~' ' ' ~ :~ , , .. , . .. ,... !:i!'"' .... " · '""' ' :': ' th~. hear.;tng w'~ 17i be c,~kl ~c~ "O~-~-maisen.~-' ~o~':':-~,,.:-<J'""'. ':~'~= ~" ''':~ ..- . ,.:.,.' '. ..~.,.'~ :,..~' !., ..... . . .': :..'.~:... ' . '.' ' . '... "' ' .' ?'.'., "':'.' ' '- ' ' .' · ',."' :': 'i'"-!:" "~' ': '.'"' '"""' .,'~:."'": . ". ' " ,:',, · ,. ' . '.." . .' "" '. . ,.,..,::..,..i,, ! · ":: . "'"" .' ' ' '".'.:':,,'.,' ·" '.. '." .~..' :,. '-.. .- ' ',- ". ;":"., · ~ .... 5' '." .'" ': · ". · :. .' . · '.', ",' ""'v ." · ";~ /'' ~4, t. ,,~:,:.:.~>,,.,,.,;.. .. · . . .,. 10 11 12 13 '' 15 16 17 18 19 21 23 Page 67 within your continuing jurisdiction to review boundaries and make such. adjustments as newly revealed information justifies /qR. BURRELL: Thank you. I believe .that's the only questior~ we have on item one on the agenda. We'll move on to item two on the agenda. MR. FLINT: Is Mr. Walker excused then, Mr. Chairman? / MR. BURRELL: If he isn't going to testify on item two, which is Vertical Definitio~ of the .Pools, yes, he is excused. MR. FLINT: Yes. MR. BURRELL: That's fi~e. We'll now move to Item #2. MR. FLINT: Mr. Walker will of course remain available for questions fr~m the floor. .MR. BURRELL: Thank you. MR. FLINT: Mr'. Trimble ~ill call 'the witnesses on this ite~ , MR. TRIMBLE: M.~. Chairman, we will have Mr. Vitcenda, 1~'. Porter, and in addition Kenneth Dunne who was sworn and qualified ~arlier to answer any questions you may have. MR. BURRELL: Thank you, Mr. Trimble. MR. MARSHALL: Mr. Porter, I'd like to refer to your'Ex,bit D, in particular the line on your cross section which rDpresents the top of the Sag River Sandstone. In the Prudhoe Bay State --- pard'on~ me, have you--- MR. ~OaTER: B? MARSHALL: 'D as in dog~ PORTERi' Okay,· we have it. I. COURT REPORTERS EIOHTH AVENUJ: ~ BLIITr~ 277.4713 ANCHORAGE. A~6~A 10031638 · ::':' 'your' -.. Nag River.' in "~he '~ '":', .... "~ ' ' .~og''''~ "~" ~' 'pick ,Pz .'adhoa..Bal.-.'I'.'a~c'~ic ,,~. :?ne top · , ~ '~,-, '.,-' , ."~,,', ~, ,- , ~ ,"~' .,. , .~. " . . ; · -~. I would like to 'hcar.:...~an '.op~.nion.' fr~m you,,':as)~0:' ~'he~'~r., .or' not '... '. .', . -. - ' . ' ".'"' ~ ,:'.- '"'." '~ ' ¥ · ' :'," ?' .' ' 2'.': '.7 ".;',.......l '~ ,'~ ' ".'., ~.'. ~' ,.. ' ' , '~ , . · ' . , . - - . ,:.. ,., . . 9 ,. , , ' ] . . , . ,. . ' , ,, , ,r ~ - in yo~r N~,r~ K¢~a~uk¥ % !~ :, .~h~...~'~.~.rc~.::.;log.~ from:, the. ~ef.~. -z.f yOu ': ..... '-' .... ' ,' . ' ' .~ -' ', "'. "":.,'~Y.." ": ' ~.,:.;'{ "{..' ':,'~,'~:,(:", ' ',. "','" : .': .'. ".".:~."]::' ~":: .: :";'t'; -~' ~ ' .', '. ' , ' ' ...... ' · t-'." ~. ' :'.J' ::. '..' F""¢. ':,':-; "',~' ", ,' 'O" .F'" ',2', ?. ~'~ ' . · ', ~ ' ,' .',, '~ 'L ~':~ '. :~ , '. ~"- .... ', f e~l ~a:.a 'tl;er'e' -W°u't~''') b'eS.. ~::" ' ..... "~Voir)..dCve'~o'P~fl.¢;'.'~bo~':i yo~' : '? .' '. '... -' :.'~''..,. ,...'j2::.:'.'.,':'.'J"J:":;'~ ~.:.:.:',,,;.,';."..:,:. '. t..:t~.:.,,.f:?'~.:',; 'k.~,,,,~,,,,V,- ::'..../. : ~ ,, ~ .... ' ...." ...... ,:: ,': ',; -~','...-',.':' ,' ~ ., :..: ?~ .,'.,.;, ,h<':',, '"~ :,:. .' ,, ' ,,.',,:%:,.. , :.%.:, . .', '. ,., ..? ' , - Sag ' Ri'~er' 'picX?in ': th~ ~: :p~':: ~i~1¢:~:::') .':"-~I7 '~:.'q[~s:~i~i~?.~i~:.. prompted . . ..........,.:?,..., :,. :,,, .,~: ...,: . ,.~-,'],.',' ,.- ,. ;;~. .... ,. ~ ...... ,,/· .. , ., .,,... v ,'.., . by the ch~ng'e ~n .:, aupar~ 8 -:: "'~'"'" ""." ):~:' :;, ~,,.7':'..:.'":~ :~,'..- t: ":=,i . .'.." 10 I1 12 13 14 15 16 17 18 19 20 21 2Z 23 25 te t~ie .Prudhos~,, .. ~ould make top in.' th~ North .. ("~-' '%';'1 ' ':)?"'4 ,'" ;:'.i?t,_ ' ~.' , V~::~cenda .~ .., ',. · ,:,,".' . ,.- you" i -n< ,on . , ..... , - .' ',.. ,, - .. and logging. . . .. ' ' ",F ' ~ '~';:.,,,;.~' ~a" Sag 'Ri;v, ..... . , ,). ~..', ;. ;,,.,~'.,:' above ifc · .[..,. ':./,.'~":../.:..:'.: in top. of a..;. .,r :' ..,.',~[:' ', ... ~, ,,~ · ~ ... .. '."',. ' . .~/[¢'.,..,. 5 ,. ~',. ,,j, . ,..~ "~ ..'..../. · ' .,.~:.. , :..b;',"}. ,',: ',: : ~.'. ¢.'.~ ,.:'. ..' ..j.. ,.. '.;'-",. .:. ,, ' . .... ,. , ., .:, .? . ,: , I. .; AGO River ',.' ~; , '.~.,..,.;:i,- . ;,- ,',.. ... ¢7 .?' ' :" '" .. '.~:; .,.,, · .'~: t, ' ~r.., ,,. ,,, .. ?,',,r:'?~. 10 11 12 13 15 16 17 18 19 20 21 Page 6 9 that there becomes ten, fifteen, twenty feet which really is part of that pool and is correlative with the type section~ an%~ we have to have another pool rules hearing in order to include it. Do you see any problem in rai~ing the top of the Sag River sand in the Prudhoe Bay State' #17 MR. VITCENDA: I don't visualize any problem now in the sense that this top and these: tops that' were picked in the field there were picked at --- like at the base of the Sadlerochit were picke~d at the highest occurrence of any sand as evidenced on the SB !there, and on that basis there's good correlation as exhibited !on the cross section and some picks above that that you can carry across the field, and in the absence of undrilled locations, that this might occur, I don't visualize it at .th~.s time. MR. MARSHALL: Thank 5ou. Mr. Porter ~ I believe ~ir ~ Porter testified, gave us some information on the API gravities of the formations which occurred on his cross section D~ Do You happen to have a viscosity rating for the Sag' River~ Shublik~ ' and Sadle~ochit reservoirs? : MR. P!ORTER: Well, the-fluids recovered from Sadlerochit' have been rather large, and reasonably ,large from the Shublik some locations, so we have a 'value tha,t we feel is representativ~ In the caste of the Sag River, I don't think we have a r~presenti.~ value of'viscosity. MR. MARSHALL: How about~ the Shublik? R ii: R COURT REPORTERS g12~ WEST rrlGHTH AVENUE -- BUITE ~ 27'~-47 ~ 3 ANCHORAGE.ALASKA 995GI AGO 100316&0 .iv, 10 2.'~R, POt:~TER: in the Shubiikt yes. ' MR. bLARSItALL: Could we have those figure~, please? MR. ~>ORTER: I~il give you tho viscosity from the Sadi~roch~t from Mobii's Kuparuk SUate well~ which was analyzed ,a~ 32.5 centis'~okes. The Shublik was 36.3 a~ Kuparuk S~a~e 7-iI-12~ MR. ~,~RSHALL: Thank you. ~IR. GI,LlgRETH: ~. Porter, this is Gilbreth. Following' somewhat along' the saate lin~ ~e o~er charact~is~ics of :fluids tha'e you find in the Shublik~ the Sag River~ and Sad.l~'ochitt do you find anythin~ that would indicate '~ese fl'uids az'e[ not c~apatibie or that they are in fact different f 1 u id s ? MR. ~-~}ORTER,: Our analysok indicate tiler the crudes are sia~ila~:t and, w~ see no problem with putting them toge'~xar or , ' .Z~[2, :~',Oi::TER: They az'~ similar, I?~R. GiLI:~:$'2:[t~ F:rom the Work that you have d°ne~ and , V'i.'ecenda may wan~ ~;o answer ,this~ do you expect the Shubli~ to "b~:~ p:~:oductiv'e over l'[lost of ~he field~ yo'u would imply this? lv~R. POR'~'ER: I believe I~made suct~ an estimate in my ' te. stimony. As we indicated a'r, that tim,e~ the Shublik has not . , ,:b~en tasted in Che ea~'~;ern po~rtion of ~he field; however our o:~ this' ferment, ion in~i, cato to us '~'~ae ig will ., , ,. , 10 11 12 13 14 15 17 1.9 20 24 9.5 Page 71 there also. MR. GILBRETH: I believe you testified that if you were not allowed to commingle fluids from the Shublik and Sag River with the Sadlerochit that it will result in unrecoverable reserves or recoverable reserves being' left in the ground~ 'that you could not economically drill for these two pays, is this the reason? MR. PORTER: Yes, sir. MR. GILBRETH: Can you give us an idea of what the oconomic~ are on this? MR. PORTER:~. Well, a well drilled to the depths that we're speaking of' 'on the North Slope will cost on the order of one I , and a half to two million dollars~ and in order to pa7 out investment of tha~,'..~agnitude, a well must .recover in excess of a mil:lion barrels, so we must' consider productivities of wells in light ~f this necessary recovery for pay' out. I 'LBRETH ' MR. : Well~ I believe that your testimony indicated that 'some i°f it' is, at' least~ fairly prolific~ if you're talking about productivity? MR. PORTER: Yes. I referred to rates up to 2500 barrels ': i ! , I a day. MR. t~ILBi~Ttt: Is this not an economic rate? MR. PORTER: Well, I could hardly, say that 2500 barre~s a day isn't economic, but as I indicated already,-i 'm not --- can't say for sure that such a well would recover a million barrels. · Initial production does not necessarily indicate ultimate r, ecove~ R & R COURT REPORTERS S:IB WEST El(~HTH AVENUE 277-4713 ANCHORAGE, A~$KA AGO 10031642 10 11 12 13 14 15 16 17 19 20 21 Page 72 MR. GILBRETH: I realize that. I believe from the informatJ that Mr. Vitcenda presented that the permeability, at least in the Shublik, were of the order of 1/10 millidarcY as a typical, is that right? MR. VITCENDA: Yes. MR. GILBRETH: Which obviously is fairly tight. Now, with. the rules that are being pro. posed~ you're· proposing development of the Sadlerochit On 640 ~pacing;. then of necessity this · . . would imply that you would plan One:well. to ~drain the Shublik and the Sa~ River on. the..640~ ...'.that~,a'I1 the other~ fluid ',that could not be drained would be eft unr~ then. ils .this not right? ', ..... .,' MR. DUNNE: I think Mr these permaabilities were does not measure fracture test results indicates his.i'.statement s~i~' lth.~at. ., core analysis normally ..'., · analysis~ 'of the have to, b~" ~::'~ ~'~' the primary so%=ce of the. we can obtain much more would,bo difficult to make coul~ be d~:ained by one MR. ~ILBR~TI{~ Well,',,', 'thi,~ "is, exact m~. W~'r~ a~king for you'=~ asking to be added 'to ~he do we haveOnou~h data to warr~nt:~ thi.s. couRT on the. Shubiik. Until .! . : have.at present', it~ i' to how :large'an.' ~rea ": · ~t's 10 11 13 15 17 19 20 21 25 Page 7 3 reservoir properties within the Sag River and Shublik are quite variable across the field. And as we indicated in our testimony, we believe it would be uneconomic to fully develop and deplete them without putt'in~ them with the Sadlerochit. Therefore; in these circumstances, we feel that the only practics well spacing for these intervals is the same as that for the Sadlerochit. ~ MRo GILBRETH: I believe there's been testimony that you do have fractures and branched vugs. Do you have evidence of any vertical ~ommunication outside of these beds-individually? Do you have evidence of communication through any sort of a test or anythin, g~. else from the Shublik to the Sag River or Sag River-' Shublik t6 the Sadlerochit? There have been some tests run for this 'purp6se., have. there not?' MR. ~UNNE: There has not been a test run over a long enougk period witch the proper, equipment to determine this° In reality, it will pDobably require putting 'the wells on production, producing ;them for an extended period of time, and observing pressures !in the other formations in order to answer this question. w]ith anything more than just a guesstimate. MR. GILBRETH: That's all I have, sir. :MR. ~.R$ttALL:' Mr. Por.ter, you have given test±mony this morning t~at the API gravity range in the Sag River varied ~from 25°to 36° ~gravity; this is nine points. Could you postulate an expla, nat~gn for 'that --- pardon me, eleven points. Could .you ANCHORAGE', A~SKA i ,:,:,,, .,.,,, ,~,, ~,,' ,,r,,~ ~,> ,i ,,,'~,,,:': , ,,,, ,,,,,~,. '1, .,'.:~, ',~ :::.,:.. ,.: ', , ,,,~, ,,~., ,, .,, ,~, . . ,..:~,1 , : , ... , , 10 12 13 15 :].7 t9 2O ~2 23 24 25 Page 74 pos'calate, an. explanation for. that variance? ~R. PORTER: This difference., that you've noted does not .. just apply to the Sag River. Actually, within the Sadlerochit, the variation in gravity is even larger than this. Probably the c4-~ly .reaso:~:~ 'Lhat the Shublik does not exhibit ~is is because all of the tests have been from relatively, the same subsea eievation;~ If they' were tested furth~ up dip and/or do'~n dip, we'd prob~,bly see a variation in our test results ~ere also. I~R~ ~ARSH~-~LL: Thence.my fig~'e of a v'ariation of 25 degrees to 36 degrees in the Sag River is incorrect? lViR, PORTER: No, I 'm saying ~here's a larger ~ariation within the ~ ~:,adlerochit~ and it is our feelin ~ ~%at all of these format~ons~ when we get enough information~ will show v~iat$ons in qravity~ primarily rela.~d to '~e ~elevation at Which the ~ ~ ") C~ .......... T '% ~' ~ .... .~)~,, )~ko]~2~,L.,~ :~.o~7: gz:av~ty figures ',presented this morning leave the questi, on over how large an areal extent are these ~.~, .,~.c.~a. nc ~.d ? Is ~a you ,, speak:Lng of ~:he :fie:h~t aa a. Wt~i~? ~i:R.~ 'P~O'IV'~'*''' ,...... ~,.z,,,.,:~: These were the variations taken from ~e anaiy:sis r, epo:~:'t, ed on the data that was available' to us from all ',j of the z:eat, s illus'~ate~ on our Exhibit A. -, . I~R. i~A. RSIiA, L,L: Within the area shown in your. cross section : Exhi. bi~'.; B~ it wou.:~d appea.r::~ possible to Produce` water from the Sadlerochi~t san(l~' and oil from the Shub'lik and =he".Sag River sand . 100316~5 10 11 12 13 15 17 18 19 20 21 24 25 Page 7 5 Have you any comment on the possibility of intermingling of the fluids if that were the case? In other words, water from the lower producing formation and oil from the upper, or vice versa? MR. PORTER: I'm sorry, we don't understand your question. MR. MARSHALL: Okay. Your Exhibit B has an oil-water contact in the Sadlerochit sand, and if the production from that ~form~'tion were commingled with the Shublik and Sag River, then we would have the possibility of intermingling of fluids. How would you' prevent this or! do~you think it's of particular concern? ~ ~ MR. DUNNE: I think on this matter here obviously you :have to examinel each well carefully before you determine what i~terva should be ~perforated~';. We would certainly attempt to do it such a manner as to recover aS much of the hydrocarbons that are there in the ground as possible, without ~ taking a risk of a problem subh as you were mentioning. MR. MARSttALL: This leads me to speculate on the wording ~ of our order. In view of thi~ possibility, perhaps we should think, in t~rms of administrative approval for commingling~ rathez than a car~e blanche fo~ comminglin~go I'm thinking, out 'loud here We have a question here that's been handed to me. I believ~ this is Mri Kugler's writing, i Was the,well that tested 2500 plu~ or minus barrels of oil per day in ithe Shublik also tested in th~ Sadlerochit? If so, what were the .resUlts of the test? 'MR.. PORTER:' It produced ~approximately five hundred barrels R & R COURT REPORTERS SZS WEST EIGHTH .AVENUE- SUITE !) 277,-4713 · ANCHORAGE, AI.ASKA 99501 AGO 10031646 ,,,I! .1.0 11 12 13 t4 15 16 i8 19 2O 2i 2.4 25 Page 76 ,, . a day of s lug-~,ow~'~ and tended to die.~ TheJwell, incidentally, was our West "~'~ ' ~paru~ 3-11-11, which I believe' is shown on both T2,P and our cross secuion. MR. F3~:~RSHALL: Thank you~. Just for the recOrd,~, what was ~he "~ ~ ~ c~e of your !a~'est in'fo~tion used: in your ~.t~stimony in .... . ,.j,. ~ . A%..; ,.,. .<... . . ~ ,..~ MR. PORTER: Would you .r.~paat-". ~%e ,question? MR. MARSH~LL: Yes .' What" was".fhe ' well information used in your ~ ~ "~" ' , ,.'. < ~,. "'~' ". ;J"'. ,., ','7 . ,'.,J' ' "( ,' , : """'* '"." ~'j, ':.''; , ; , ,' ~' './.h ":,. . ~' · , >',. " :, "' ," ' '?..," . ~'" .'">~, <"' information that you used .".i~ 'yOur '~stimony?.'< I~': 9~ller.,,..':~f'Or~S, is ."this a:':'month ag,O; or can: you this as of, 1,asr ,Monday; of [ :';::[~',~',<':::~'"~' . ~<, ,:,.:~.~ us some kind of fix on ",L~.,:. . MR. DUNNE: Subject to':'?~:,gcheCk"i~?,' .':[ we any ....... we' didn,~t use a,.nythin~, f~omjWel'i~s dri t the Ju~iy.~ 1~70; cutoff date. No~;.: just exact y ~hen every 'anal~FsiS'. . was run or when avery other pi. ece,".of~ wa.s":~ °'b,tain~,, cou dn't s~a wz~h certa~n~: ~.,~u~, wa wkich ara inciu~ea ~n, ',~ " AGO 1970 cutof~f date,,. · MR. BORAA,LL: I thi~'~]~;;: sO . .. ,.....: .... ..>.,'~[.. por'haps~ and ~ '.d like tO D: should say. It's my 'undtrStand Page 7~7 10 11 12 13 14 '15 16 17 18 19 2O 9.1 9.9. 23 25 unit negotiations, the cutoff date of information available by some date in July, 1970, was the cutoff date because as we all know, as each well goes another foot, you could continue to negotiate and never consummate them. And that was used as the cutoff date for information used in the negotiations. Is that a correct statement? MR. DUNNE: Yes, it is. , MR. BURRELL: I had a feeling that a lot of us didn't- understand that, so I said it. MR. V~TCENDA: Yes. ~ MR. BURRELL: Are there amy other questions, on item two? We'll move on to item three on. the agenda then. Before you bring the people.'up, let me ma~e sure we have questions on Item three.~ Item three is Well Spacing Including Footages to Lease and. Proper~y Lines and Acreage Spacing. MR. FLINT: Flint, BP. Mr. Chairman, while Mr. Anderson provided testimony on engineering data, I presume that he is the witness that the Committee would like to hear from at this time. even MR. B~RRELL: That's fine, except we hayen't/decided if~ we have any questions on Item thr~e. . MR. FLINT: Because in addition to,the testimony provided by Mr Anderson, there was a statement on well spacing-presented ' I : · by Mr. Sco~t. .' ~ ~ MR. B~RRELL: We have no specific, questions on Item three, · but while ~e have Mr. And~'son. up here, Mr. Gilbreth has some R & R COURT REPORTERS 825 Wi;ET I;IGHTH AVENUE -- I;UITE B 277~4713 " ANCHORAGE, ALASKA 9950! AGO 100~16~8 24: Pag'a '7 $ specific quest:io:ns in connec~:,ion w,i~:h N~:,, Anderson's testimony and we':~:',e n.c'~: s~r4'e w'hlci"~, .i~cem i'e is~ bu~: we:re goi. n9 '~o get, yo'u while y'ou ~re ~a~., ,d...~.~.,.~:,'.~.~:-Z; ..~':~C~ Ande:c'son, you:~ Exhibit ~:1 set't.i~'~9~ OUt .... ~: L~.e core da~a in '[:he fi, eld ~!~,o~,~ an a'v'~'age ou,~,~,.~ 65 mill'~ .... ' ~ .................................. ~3.~C.v {~..,~:: ,,. .lcla:~. (,.J. es and an averag'e porosi'~y of.~,~'~")~.,, 4 ~:~.~) .... cent %n ,~.You~? opinion oz' in the opinion of the .~gu~,~es fa.i;r'ly well rep~c~esez'.~t H.k ..... A,NI:i~,~:~,:~,ON ~ 'I,n :my opin,ion, 'glaey, defini~e!y' do,,~ H~(. G,,,~L,,~,,}:~,.,L,~;'~. In y'ouz:' E,,~,,,~,~,~,,,~, %3~ s of o'uz: quite v"a:~:'i.,:~.'tion bet,w'e,ea'~ ~,I"~,e flu. id ana:Lys~s ef the sev'eral fluids that, ~.~,,,~,~.,n(,.,~,,.c,~. Do you agz:'~e wLth -~.he t~.,~,t.imony' of a p:['~vic witness as 't::e sc, me e:[f the. causes of 'these variations? The subse.a ,,,:.,~:~,~a,~:,,,i,:i, ng ccu'u,,',:~i'tions and thing's o~ th, is ................ cond,,:~,,i::i, oz:~,s L,,),,,,,~::,~t. &,a%~e,, a'~:~: ':~ ......... t' .... ~ '"'" ...... ~, ~,.~,.~,,,.,,~,~t~ E~,,L,,g~ L, ~:::~,,~ data, ~ d~.~;, ]: '""'"'~" :'"~'""' "'"'~' .......... " ..... and as i,t 'was ai,~e our %es '[';:'La"~o:t.~p" ,, she~'::[,,ag' 't:he to',ba, Z range tha'e; was sno~,~ n to be .~,,,~,,,. ~,.,,~,:~ ~,,.~,,~,~ .... 7-1i-1,4 welZ ~, %,y'p,~,~,,.~ ~:~, ,~,, ,~,'~"'"- :~, ,~ ,,,,.: ,,~.:, . wh ich s amp :L ed f r om ov'e:r a . ~,Le~¢~,d, also a compa,r:ison of tttis data and 300" ,,inte,r'v';a: iL ~ a:ad ~,.'"' .......,',,' ~ ':' ~' ..... ~ ..... ~'.,, ,~ ~ ,,., Z.o,~ m~ ~,.~.o~, V'el~,une fac t::oz .... ~,erm~ with.~ the ~ha ::L Lowest ' +"'",",~, 0 an~ :t:he deepest tested inter~a -,,.,~,,~,:~ ,~<~,~ the z~a. ng'e in this po:r"~.ien of '~'~e ~ese~"voir 10031649 10 11 19. 14 15 16 17 18 19 20 9.1 9.2 Page 7 9 MR. GILBRETH: Do you know, Mr. Anderson, if over in the eastern part of the field have there been any fluid analyses of the Shublik and the Sag River, fluid samples? MR. ANDERSON: To my knowledge, I have no data on the Sag and Shublik. I didn't prepare for ~that portion of the testimony and you may want to check that again with the Mobil witness. MR. GILBRETH: Your~:;Exhibit #4 shows 3 PPM hydrogen sulphid4 content and about 12.21 carbon dioxide. Are either one of these concentrations enough to result-in concern about corrosion? MR. ANDERSON: Well, I think certainly when you have carbon dioxide, ybu're concerned about corrosion. Let's take them one at a time. Your concern about corrosion there is dependent primarily on the accompaniment of water with it, and certainly it's well known in industry that the presence of carbon dioxide and water ,~at you have a situation where you can have corrosion and this iS certainly something that will be and is being con- sidered and watched. But insofar as saying that we do have an environment that will have corrosion problems, I cannot say that. Ail I can Say is that the carbon dioxide is something that is watched, d so far as the hydroge.n sulphide content, thist in my opinion.~ appears to be a very low content. It' is something that is noi;ed by a metallurgist in terms of metal embrittlement, but I do not know of any particular problems that are anticipated I think that these will certainly all' be covered by the metlallur~ of the installations. R & R COURT RE:PORTERS ~ W£BT £1OHTH AVENUE:- 13UITi~ ~ 27'~-47 ! 3 ANCHORAGE,; A~SKA 9950t AGO 10031650 10 11 12 i6 1.9 2(I 21 22 23 24 25 work wi'~ ~ take '~":' .~ ..... ,~l~:~.=..~ conc antr~'L:±oi-~s .into c,on~idera-~:ion for their preduci_,,ig scrings ~.rld p:'cod.:~cing equipment? that '~ s a il we have eli ~6iiis ~ E 'think we ~re ready '~..o me'v'e 'to agenda i.'t{~, n'm~lber fo'urn' ~ Casi. ng and Cementing Requiremen'ts,~ B:ritig 'up the cementing and casing team~ I guess. The casing and cementing '~';eam .is here already~ :next f!ew items~ i~z.~, Scot, t expressed. "~e views e.l..bbi~.l.~,~.'.: IS i~I~:~, SO0't.t willing 'to %estify? Nil{., PLiIiN'T; fiefs no"~; prepared 't:e be sworn¢, but I~m sure t.o some ©:~; '""'~'1 .... " '~ ........ ~ ..... types of .c{asj. i'lg al'id i. nsuiation and.: so fes'th~ I won, der at this time are '%here o't]::~e,~ i'ae't:hods that' "~ '~,' ..... ' ...... ., ,ml. gh.'~,..~Je appropria'~::e or if the '~.' ...... ~':' . th~.,.,,a s,%tisfacte:cy? Do you feel ttia'~, they ope:caters al, ..... fi, nd.i:n9 ..... "~' :=~:' ~ afe u?t,d e J::' '~:h e c o:ad i 't:.i on s ? MiR~ FLINT~ N,r Chairman ~ l'leed, te,~,~ ~' .... , %.o, salZ as you anticipate8 10031651 d~ 10 I1 14 15 I6 17 18 19 9.0 2I Page 81 I'm sure that neither ~ir. Scott nor I are able to answer that. I don't believe that we have'anybody here that is specifically prepared to testify, but if you would like that question --- like a response to that and other questions relating to casing design, cementing, we will be pleased to respond as long --- within th~ time that the record is kept open. If that particulaz question Will cover it, .we'l~ attempt to respond to that. I 'm sure that !is agreeable to our. clients. MR'. ~ILBRETH: Ail right~. MR. ~COTT: I think I po~inted out earlier that the eleven companies ,have nothing to present ~or suggest except that the existing rules ..r:ema£n as they are. I 'm wondering if that fact alone might provide the answe~ to your question. Otherwise, of course, we're perfectly willing to submit more specific answers · to any questions you may have if youT1 leave the record open. 'MR. ~ILBRET~: Could we !leave it this way then: we on the Committee iwill assume that ev:erything is fine. I don't think we have any ~eason to believe thlat there .is any change needed, and , in the absence .of testimony, ~e will so assume. My next , ..question ~-- .~. I MR. FLINT: Could I just respond once more to that. I think y~u're exactly right.i We do ?ertainly feel that there is no need for any change in the rules, but if you wish any informat supporting this conclusion, ~e would be happy to try and respond MR. GILBRETH: Thank you~. In Order 83-A, no provisiQn ' R & R COURT REPORTERS 828 WEST EIGHTH AVENUE- 8UITE ~ 2'77-4713 ANCHORAGE, ALASKA 9950! A$O ion 10 11 12 15 16 1'7 1.8 19 2O 21 23 24 is made there for p!acin9 tile shut-in valve be,low the base o,~ the per.m, afrost,. I ~'ve heard nothing in the ~estimony today z~co~a~e.~c, ac.ion from anyone to so place it tl'lere~ Do 01% a:~l~~ ......... ~ .... the operators see any objection :in a :requirement. to Place shu't-~:a valve be'',.~,,t.>~' the ,..P~z'mafrost in Order 83-3t? .MR,~, CtiAT(t{E~i:CPON ~ i~D::. Chairman,, I ~m Chat Cha'~t. er-ton~ Dis'~ict $'uperin'tendent, Producing Depaz'~nent for Alaska,. wi'th Standard of Catifoz':nia. in answer "to your question t I~', Gilbrettlt why we would h..ave no ob"'.ecti, on3 . 'to~. your including that because tha't is the .MR, GI, LE;R~TH ,: Thank you ~ lV~ ~. Chatter ton ~ ~' ...... . I~L~,iL~I,~L~ L.,,~cu, se me~ me interrupt a minute. Before ~,,,,t~t,~,:,ten gets a, way t 'there's another proposed rule ,reg',~=a:'d, t,e ,spacing,~ and I aon't know that that:," s applicable because 'we hav'e t60 ~': ..... ~ ...... ~' :'.:' lo0 in the ~{.,,.z~e ~-~La<..~,,n9 wit. h a minimum of '= ,k.,,,v ~.,,z7 pool.. ~, . Kc~pa:cuk ':' '~ ......~' the change that was proposed fz'om 600 to 575 on the ,,adierochi'C pool would n~,,t be applicable .......... let me ~ask y'ou wh i '1 ,, (you "* = % ~,,. here; .... .... e are y6u satisfied with the spa. ting el',lle},i:i,.:~ e,;a 't;he !{'t,ipa, iifttk i':tJ. Vei' pOOl? ar:~,aI,x,9 ..... ~ ,, '...,H,AI,IA~dON: ,As we ind, icated~ w'e~re ask;ir~g for no c, hange in t. tle s'"':,ac2.,n,~,[. ':' c as far as ,83.-A. is conceznee~'. Again an aa':'m.',~" ~..,,.i,' ,,. ...... ~;rative s.ituation ~ i.f you see your way el, ear to redU, ce the sec~.,~o~n -, - reduce the minimum size of 'et'ie sec~ion to 575 acres,,, we ~%¢o'u, ld agree t.o i;hat,? ~'""" ' .... "~" }i.r, Chatterton, AGO 10031653 10 11 12 13 14 15 16 17 18 19 .. 20 21 22 23 24 25 Page ~83 MR. GILBRETH: This is Gilbreth again. We've seen some problems developing with freezing of fluids in the Prudhoe Bay Field the' last year. There has been a statewide regulation adopted requiring that non-freezing fluids be left between strings of casing. The regulation:~,has not been in effect very long, but there's been nothing touched on that today. We're currently enforcing the regulation.statewide within the Prudhoe Bay field. I 'm wondering is there anything from the operator's standpoint --- does anyone have any better solution than what we have, or any ~infOrmation that shows that this is not the safest way to go? MR. ~cOT'T: I think tha~ the problem has been solved both from the regulatory standpoint and from the scientific standpoint and for that .reason we didn't makO any comment or submit any witness to discuss it. We agree, with you completely that the present regulation is effective. · MR. GILBRETH: Ail right. I just wanted to make sure since the record was silent that we did cover it. Thank you, sir. That's all I have, sir. MR. BURRELL: We're done with number four. Item number five whicl~ is l$ottom-hole Pr0ssure Survey Requirements. ProductJ being wha~ it is, I don't really think, we have too much tel say on that. Agenda item number six, Gas-Oil Ratio,~?.2'est Requirement~ We have nothing .on 'that. Agenda item seven, Methods of Preventir Uncontrolled k"lows, which woutld include both the downhole .equ~.pm~ : . R & R'COURT REPORTERS AGO 10031654 I)Z~ Wi;ST E~IOH~'H AV£NU£ ~ ~UIT~ 2~7.4713 ANCHORAGE. A~S~ 99501 on .g 10 11 12 13 ],5 16 18 19 2O 21 22 2,3 24 25 and the surface blowou'U preven-cion equipmen'c, i think we have scmethin{/ on that~ This is Giilbreth again. A reco~m'~enda'tion was made ~co revise Rule 4 in Order 83-,-B. I'm wondering' after , the proposal .that has been made if the operators have any ebjectio~:,~ t:o a~opt,l,,~] a similar ~eg'u].ation in Order 83-A~ except changin9~ the pressure ratin9 on the blowout equipment. Can we hear fi:om tl,~e operator:s on that? M,R. CHAT~fERTON: Again Chat Chatter'ton speaking for Standard ; of California. To the best ,of my knowledge, w'e would have no ob j ections. , MR. GZL.~ P~TH: Anyone else? That~s all I have~ sir ~ ~R. B, UR~.~.~,L:: Ag~enda item e,~9'¢xt~ Administrative Approvals. if any. D~oes anybody have any questi, ons or cormnents? I don't, believe there's any testimony o,,n that even' except leave it ;alone. i~[R,~ c-~;1L.,,~R[u,,1H: 1].~,e.~.,e s no provision for it no'w~ 3iR~ Df:fRt'~ELL: Ag'enda i,~:en'tx'ine¢ Plans for Disposi'tiorl of Pr~,uced Gas~ i,~,e testimony '{:.ha't was glven on agenda item nine made ..refeI~ence to ,the, Ralph Parsons~ Company study and said tha't ~ the cu,rrent, ~:uie ~'hich p~f'oh,ibits flaring or venting of gas except , in cases c~f emerger~,cy 0=' opera't;ional necessity was acceptable to th,e ope~rators~ and I think[ ther'e~s no'thin9 further' to say on that. Agenda item '~;en~ Plans~ for Reservoir Pressure iMaint,enanco. Ag'ain,~, the testimony on agenda item ten was to the effect wi~out pr(>duction histo:~:,Ty,, they didn't know whether. reser~oir ' AGO 10031655 ! , 10 11 14 15 16 17 18 19 20 21 9.5 Page 85 if pressure maintenance would bela problem, but/it was, they'd look into it and take appropriate steps. Agenda item eleven, Plans for Unitization. I'll ask a question on that. Are you prepared to show the outline of the unit area at this time? ~ MR. ~LINT: I'm sorry, I~didn't understand you. MR. BURRELL: Are you prepared to disclose the outline of the unit area at this time? MR. PLINT.' I think this is an appropriate question to refex to Mr. Pollasek or Dr. Lacey who were sworn and qualified. They are Steering Committee representatives of their two comDanies. Would you ~are to direct it to either one of them? MR. BURP, ELL: That's fine with me. Please don't misunder- stand me; ~.'f it's .not to be p~ibli¢ at this time, it doesn't'~ make · any real d~fference except toithe extent tha~ it will have a bearing on what we-do ~about the limit of the .pool, the area~ , affected.. ~ MR. FLINT: "I' think we'll ask Mr. Lacey to respond to that. DR. LACEY: Mr'.. Chairman; .this is John Lacey~ BP Alaska, and Mr. Po~asek~.sitting beside me. You raised a question whethez we'd be willing to show the outline of the unit area that is currently under discussion in icase i it has any. effect on thel field rule~, the pool rules that you'r~ trying to set at the present ti~e. our Exhibit which is Exhibit BP-G actually shows the outline of the proposed unit which we are negotiating a~ the presen~ time~. .It's included in your folder, the large.folde~ R & R COURT REPORTERS ~.~ WEJ3TEIOHTH AVENUE ~ BUITE · z~.~,~ 1003~656 ANCHORA~.' A~S~ ..~0~ AGO 10 12 i3 14 15 i?I 2O 21 25 Page 86 of maps and plans that was supplied to you; not in the binder, NLr. Gilbreth. It's also shown on a separate map, the strucl;ure map, MR., ~URRiqLL: in order to identify this for the record, what ar~ ~ looking ak? Is this ~CO E~ibi, t ~2 w~'re looking at~ or is ,,it a BP exhibi'~? , DR. LACEY: This was called BP Exhibit %2. MR. 3BUtlRELL: BP Exhibit, %2 we're looking' at. DR. LACEY: And you re-n~ered it BP E~ibit G. MR~ F~LINT: Flint for BP; ~. Chairman, I believe ~is an attachment to the statemen~ on progress of unitization. Ttler~ were several it, ems ,~hat were ~ttached to that stat~nent~ HR. I~UR}~]LL: We're going to ~y and find the unit ar~a on this map one way or another. ~Okay, I thank, you, 1~. LaceY.~ Apparently we~ve now found the unit area and you'd already it %o 'us and we didn't know it ,~ LA~S~ Does i.~ answer the question you want on th:is? FiR. B~RI{ELL: It answers .{mine , but ~. Gilbreth has on~e'~ ,MR. G!LBIel~TH: t don't have a question. I was just le6king in the bro.Dhure that was passed ou't~ and I '11 make 'the observati( that I believe 'the time spent over 70~,00Q man hours. MR. B'IiJR.KELL: A11 r~ i3'bt. on unitization so far adds upi to At 'this time I 'd like to ask if 'there's anybody in the audil, ence ~'ho is an interested or affected party who would, like to s~ep forward; t/~ez'e'is a microp~ AGO 10031657 one 10 11 13 15 17 ].8 9.5 Page 87 on a stand here, if t~ey'd come up and identify themselves, stat~ their interest, and ask a question. Mr. Trimble, are you asking or answering? MR. TR!MBLE: I'm asking° I would like to request~ Mr. Chairman, .that the record be left open for a few days in order to prodUce written testimony in response to Mro Marshall's question where he questioned the water-oil contact between the Shublik and Sadlerochit referenced in Exhibit B. MR. BURRELL: Yes t Mr. Tri~le. How much time would you request? ~MR. TRIMBLE: The rest of the~ek? ~4R BURRELL: How about - .... ' what~s today the 9th about clo~e of business MondaY, the 15th? !MR. T. RIMBLE: It's a holiday. How MR. BURRELL: Oh, well '!MR. TRIMBLE: Friday? , MR o BURRELL: The state ~as a ho].iday Friday and Monday. MR. TRIMBLE: IMR. BURRELL: Tuesday? Until the 0lose of business TuesdaYt the 16th 4: 30 p.m. iAnchorage time. MR. TRIMBLE: Thank you~ sir. .MR. EURRELL: .Very good~ sir~ MR. ~LINT: Mr. Chairman!~ why don~t we just take the rest of th~aek off? MR. BURRELL': Are~ there any other questions? Are there any R & R COUkT REPORTERS 27~7.4713 . ANCHORAGE, A~5~. g~01 10 12 14 15 16 I7 18 2O 23 Pacja 8 any' questions from tb.e audience f','om any interested or affected parties: If so~ please come forward. Is there anyb~y who wishes to give any testimony who has not yet had the opportunity to do so? Or to make a statement? ~e there any further queSti(n from the Committee or other me, ars of the Division of Oil and Gas? Appaz'ently not. ' i 'd like to take this 'occasion to congratulate everyb~ly who put on testimony today for an outstanding job and outstanding presentation. The exhibits showed a great deal of work and a great deai of thought. It was more than we expected frankly the they'd have copies available.like this for all of us to work . with. I't ~couldn't have been a bigger help, and I"d really like to cong'ra'C~klate t~em. And I think that some of the public relations representatives for~ ; ~the companies involved here have got some Copies of certain of'the ~estimony available for Various and sundry peop~.e here. I don't know what their dis~ibution pl2~ns are~. i will ask them to make. a stat~x~ent as to what they have avail~abl, e~and how ' ~ ' 'them they want to hand efore adjourn Is th~'e Somebody here who~s handing out brochures~' }~'. T i{R~ T~LOW: W'e have a few copies of the .testimony, BP , ~ testimony, and Mobil testimony, and the Atlantic Richfield which.' we're giving out to the[press, b~t they're very, very limit.ed . . so that' m,.: anyone additional ~o the press wants any copies, we c¢,ul make a few. available, but they're ex~'~ely limited. MR. BURPCELL: Thank you, IWr. Tallow'. adjou~'n the hearing.' Being nothing else, w~ AGO 10031659 '1 Mobil Oil Corporation F E B ANCHO~G~ Alaska Oil & Gas Conservation CommJ 3001 Porcupine Drive Anchorage, Alaska 99501 Dear Mr. Marshall' OIL and 'GAS J NFER: ' At the Prudhoe Bay Field Rules Hearing of February 9, 1971, the Committee indicated concern that the area to which the Prudhoe Bay Field Sadlerochit Oil Pool Rules be applied should not be substantially different from the area enco'mpassed by the proposed Prudhoe Bay Unit. In view of the Com'mittee's concern, we believe it is pertinent to include in the Record of the February 9 Hearing data from the Mobil-Phillips- SOCAL ~33-11-1Z well, even though this well was completed after the 'mid-year 19?0"cut-off" date for initial consideration of data for Unit mapping. We hereby submit the following data pertaining to said well for inclusion in the Record of said hearing. The Sadlerochit was drill stem tested in this well and flowed water-free oil at the surface. This information has been considered proprietary and has not been released to the Prudhoe Bay Pre-tmitization Committees. However, we hope that the information included here will be sufficient to assist in your decisions regarding the Sadlerochit Oil Pool Rules area. The surface and bottom hole locations are as follows: Surface location - 2000' FNL and 1800' FEL, Sec. 33-11N-1ZE Bottom hole location - 179.49' S and 694.86' W of Surface Location If you desire additional information on this well, we will be pleased to discuss this matter with you. Yours very truly, . .~.,/ C. C. Woodruff 1/11 Division Engineer ~/ Alaska Division AGO 10031690 GRAYLOC ;~':'~ TEMS OF WELL CONTROL it,'. ROTARY SWIVELS P. O. BOX 2291 HO [I..~"'~T~~A~S ,qJv~r.--,;de 7-i2 i), ACCEPTED [[ ' '"' ALASKA OILond GAS Alaska Department ef Natura~ R~ATION COMMITTEE'~ SO01 Porcupine Drive _-..EXHIBIT, ,, - ~chorage, ~aska 99502 [[ ¢ . ..... Gentlement O rage, Alaska ary 15, 1971 I," CONFER', change be made in the wording of testimony presented by Mr. John Sco ~.. ~~ in the above noted hearing. STATEMENTS BY LEGAL COUNSEL (Re: Items $ through 8 on the Call. of the hearing) Testimony by John Scott, legal comnsel for Atlantic 'Richfield Co. Rule 4. : Blow?_.Mt~ prevention Equipment and Practice we recommend that the last sentence in the paragraph be amended to read; "Two emergency valves will be conveniently located on the ~ill- ing floor with rotary subs for all connections in use, one valve to be an "inside blowout preventerS of the spring-loaded valve type and the second to be a manually-operated valve Of the ball~alve or equivalent type. AGO 10031687 Respectful ly, ,.. ~f? , Area Manager Mobil Oil Corporation · Mr. Thomas Marshall, Jr. Executive Sec retary Alaska Oil & Gas Conservation Committee 3001 l~orcupine Drive Anchorage, Alaska 99501 February 11, 1971 POST OFFICE POUCH 7-003 ALASKA 99501 _~-- · , .. ' -',~1 I(..~ Dear Mr. Marshall: ~ . ...... - -- At the I~rudhoe Bay Field Sadlerochit Oil 1~ool Rules Hearing held on February 9, 1971, you asked a question with reference to Mobil's Exhibit B, concerning intermingling of fluids (that is water and oil) if production from the Sadlerochit were commingled with that from the Shublik and Sag River in cases where perforated intervals were near oil/water con- tacts in one or the other of these intervals. Mobil's witness answered to the effect that it should be necessary to examine each well before the intervals to be perforated were determined. In any event, good oil field practices dictate the necessity to perforate in a manner to in- sure the recovery of the maximum amount of hydrocarbons with minimum water production. We wish to amplify the answer requested at that time to help insure that there is no misunderstanding. Certainly, any time a well is perforated and produced from an interval near a water/oil contact, there is a danger of water production either from the na~ral water influx and movement of the water table or water coning. It is emphasized, with reference to Mobil's e~ibit B that this si~ation (that is the possible production of water) exists even if only Sadlerochit were perforated for production. The perforating of the Shublik and Sag ~iver intervals would not add to this potential problem. In fact, the ability to perforate and commingle all three intervals could reduce the danger of water production by enabling an operator to obtain the desired oil rates without the necessity for perforating so near the oil/water contact. It is also noted that Mobil's prepared testimony presented at the Prudhoe Bay Sadlerochit Oil 1°ool Rules hearing pointed out three possible methods by which communication bet-ween the Sadlerochit, Shublik and Sag Iliver could exist. Where any of these conditions do, in fact, exist, it is noted that the commingling or intermingling of fluids from these reservoirs would occur regardless of whether the zones were perforated and com- mingled in a wellbore. AGO 10031688 Mr. Thomas Marshall, Jr. - 2 - February 11, 1971 Following the answer to the aforementioned question, the comment was made to the effect that it might be advisable to consider each well in- dividually and allow commingling only on an administrative basis. The extension of the existing vertical delineation for the Sadlerochit Oil Pool to include the Shublik and Sag IKiver zones as was recommended by Mobil and others at the February 9 hearing would in effect make the recommended interval the equivalent of one over-all zone for production purposes. The selection of perforated intervals would then create, in effect, the same decisions as would be effected if only the Sadlerochit interval were being considered. It is not normal practice to require an operator to get administrative approval as to the selection of perforated intervals within a single zone. Therefore, it is believed that if the Sadlerochit Oil Pool Vertical Delineation is extended to include the Shublik and Sag 1{iver intervals, there should be no more necessity for requiring ad- ministrative approval for specific perforated intervals in this case than would be the case where the only productive interval was the Sadlerochit. In view of the above, we respectively request that the Commission revise the existing definition for the vertical delineation to include the Shublik and Sag IKiver as was recommended in the Mobil testimony and allow commingling of these zones in the wellbore. It is requested that this letter and the contents thereof be included as a part of the record of the Prudhoe Bay Field Sadlerochit Oil Pool 1%ules Hearing held on February 9, 1971. Yours very truly, C. C. WOodruff Division Engineer Alaska Division DjV~St,',)'N OF OIL AND GAS ANCHORAGe; AGO 10031689 _ · . AGO 10031660 PUBLIC HEARING - PRUDtlOE BAY FIELD_ Februa_r~ 9, 1971 Call to Public Hea.ving wi. th respect to Conservation Order No~ f~'-'_,..?-.~-'.~ ~ sadlerochit. Oil Pool · Introductory Statement 1, Area to be Affected by the Ord~ers 2~ Vertical Definition of the Well Spacing ilncludin~ ~o~,~~'~. ... ~.o Lease ~d Property Lines and Acreage Spacing -4, Casing and Cementing Req[.ui~'~-~ment~ 5, ~ottom-Hole Pressure St~r~r~3.r Recit~:i-remellts 6 Gas-Oil RatJ. o Test Methods of Preventin~ Uncontrolled Flows Administrative Approvals; ~ i:C any Plans fo37 DisposJ-~'',-~.on~ ,_o~.,. Produced Gs.s 10. Plans for Reset-air Pressure [4aj[n'?.enance; .. il, Plans ~[or Unitization * Te$i:in~ony included AGO 10031661 AFFIDAVIT OF PUBLICATION STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT, ) ss. being first duly sworn on oath She deposes and says that ................ T ~.~ ~ is the....~..e.~.e.-.~..--~-e-.T--~. ...... of the Anchorage News, a daily news- paper. That said newspaper has been approved as a legal news- paper by the Third Judicial Court, Anchorage, Alaska, and it is now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all of said time was printed in an office maintained at the aforesaid place of publication of said news- paper. That the annexed is a true copy of a ...h_e_g~_.~Lo_.C.~.c_..e...~.O00 as it was published in regular issues (and not in supplemehtal form) of said newspaper for- a period of ........ j~_e___, insertions, commencing on the ............ day ~:ecember 70 of _fi_ ..................... ,19 ......, and ending on the ..... .2_/?_ ......... day of of .... ......... , both dates inclusive, and that such newspaper was regularly distributed to its subscribers dur- ing all of sa.id period. That the full amount of the fee charged for the foregoing publication is the sum of $ 17.25 which amount has been paid in full at the rate of 25¢ per line; Mini- mum charge $7.50. / Subscribed~jYfd ~worn to before th,~ ........ ua¥ ~, .................... , 19VO... Notary Public in an'd for the State of Alaska, Third Division, Anchorage, Alaska comm ss o. xPm S ......... : ~ sT~?i~OF~aLas-~:a D~pA_R~ta~-WiL OF NATURAL' ~ ~ ~d: ~Gas?;~e~a~°n- ".. ~.~. t~ ~~- ~- - :; . ~ ~ .. ... : : . . te: T~ ~on '~,~e ~ska 0U ~d : GaS ;',Co~~a~on- ~ttee ~ bom a: p~bae .h~g ~. :deter'_ : ~ne,~e- P~l~es.~r the P~d- . - ........-... - . . _ ;~;-~e~c~::~;-P~.;.~e' :~ are t C0m~ttee_ ~?~ld '~ ~bHe .~ p~t~ ~ ' ~/iij~s~ Ad, min~t~Ve Code, ~n~ on Feb~ .~ l~'at ~q.m. :in ~e Sy~ey-~erene~ AU~, '.~th Avenue: :~d-. r i~ee~,:: j~Ch~ge, ~a, at W~eh ~e ~f~,and intere~'p~-: ~ ~ h~M.: mo~ on '~y: mawr r6le~t~ ~e prier d~vet6pment ~d of ~. ~t~m-hqle p~eSsure~e~, Ke- :TL Me~ho~ .~- Pteven~~ ~eon- ~oHed '[flows; · -[- ~: 8. Admini~a~ve app~v~, duced~g~;. :; -/-~.:-" - :::. ~. P~S: ~ . ~e~oi~; pre,ute maintenance; and · : ' ThornieR;; Marsh~, ~r~ : Executive Secre~ . . ~001 P0~uP~e D~V~ L DIVISION OF OIL AND GAS ANCHORAGli AGO 10031691 NOTICE OF PUBLIC HEARING STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS Alaska Oil and Gas Conservation Committee Conservation File No. 98 Re: The motion of the Alaska Oil and Gas Conservation Committee to hold a public hearing to determine the pool rules for the Prudhoe Bay Kuparuk River and Sadlerochit Oil Pools. These pools are regulated by Conservation Orders 83-A and 83-B, respectively, which expire March 12, 1971. Notice is hereby given that the Alaska Oil and Gas Conservation Committee will hold a public hearing pursuant to Title 11, Alaska Administrative Code, Section 2004, on February 9, 1971, at 9:30 A. M. in the Sidney Lawrence Auditorium, Sixth Avenue and "F" Street~, Anchorage, Alaska, at which time affected and interested parties will be heard. The Committee will seek testimony on any matter relevant to the proper development and operation of the referenced pools including, but not limited to, the following: le me me e Be e Ye Area to be affected by the orders; Vertical definition of the pools; Well spacing including footages to lease and property lines and acreage spacing; Casing and cementing requirements; Bottom-hole pressure survey requirements; Gas-oil ratio test requirements; Methods of preventing uncontrolled flows; AGO 10031692 Conservation File No. 98 -2- December 23, 1970 8. Administrative approvals, if any; 9. Plans for disposition of produced gas; t0. Plans for reservoir pressure maintenance; and 11. Plans for unitization. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 AGO 10031693 · .i~ ~l~i(.'[dC Hurlh 'mmriCq~.Pjofldcinq l~iVision Snl~ FranciscO, California] ]~hillh)s Petroleum 1300 3ecurit3, Life Denver, Co]orado'¢.O202" · Attcntion Mr. C. I. funt Potrole~mt COrpo~ien" ""' . 2900 First National B 7,oOz "' tlouston, Texas .- '" 539 8c, ttth ~]filn Ffiic!J.ay, ~O]~fo ;4 084 O, _ . ilo} ?-: PropO CoO - ~:ott e, tch ll&go~beon furnlsl~d .~th 1,~ AGo 10031673 It was felt that a report· on the Specific progress by committees and . subcommittees-would not assist the Committee at'this time, however, we would like to point out certain areas of prOgress. · The Legal Subcommittee has prepared a.draft'Unit Agreement which has beene.. discussed with .t. he Oil & Gas Conservation Committee. They. are currentl~~ . · working on an Operating Agreement. . · . . . The Geological'SubcOmmittee`has prepared geological maps and has reached . agreement on the. interpretations for the majority of the field. It is - hoped 'that complete'~resolution will be possible in the near future. . . we-would especially like' to indicatej to the. Committee that, although · unitization has not been completed, benefits are already being derived . .. · . from pre-unitization ·efforts. · . · . .. . . ' The 'Environmental Subcommittee. is actively engaged in studies to protect _ the ecologY and '~o conserve .the resources of the area. . · . . The Operations Subcommittee is coordinating operations on the Slope to · minimize s~rface usage and disturbances. · In addition', the guiding principle behind the pre-unitization negotiations . . is to develop a plan. of'unitization that will optimize conservation and protect, correlative, rights in accordance with the. State Statutes. AGO 100~1672 · . Page 2 October 29, ]969' · ............................... ii , _ _ ,il · .. ' . '- ._ oil and oas interval sand 1)ody which xx'as encountered in tl~e ].)rudl~oc ]):t), ' . State No. 1Well between the depths of 8,066 feet subsert and the top of . . - . the c'arbonntd format/on at 8,747 feet subsea (])crein:tfter c'allcd '~Pcr~n.~- - Triassic"). You each lmrcby are Wen an opportunity to join with trz ~n .- ' ' the unitizatirm project which is the subject melter of ihat letter, with the . . · undorstm~ding that: each separate Permo-Triassic reservoir underlying the unit area, when defined, will constitute a separate oil rim and a separate gas cap participating area or area(s). The probable first initial patti- · cipating area(s) lie East of the lir.,a labeled on Exhibit A-1 attached hereto as 'Tarticipating' Ares."; such area(s) may be adjusted at tho times prox,Sded in paragraph 2 of the letter of August 6, 1969; ge ihe plat attached he, fete as Exhibit A-1 will be and hereby is substi-- tuted for the plat attached as Exhibit A to the aforesaid letter; l hat such letter shall be and is he;'eby amended to indude each of you as a party hereto with the same force and er'feet as if su(h ]_et~c:r, as so amended, had been executed and/or accel>ted by you and by all of us; e thc letter of August 6, ~969, as hcccin anacnded and ratified, i.s to l:.e construed solely as a commitment, on thc part of each party to said letter to negotiate in good faith wi[:h the other parties to achieve uni. t- ization in accordanm witli thc prir. ciplcs set forth tl~erein. Such let- _ ler shall not commit any Party to the execution df any document which. proves unacceptable to it Neither' shall the execution of this letter (or the letter of Aug'ust 6, 1969) be consi'rucd as a waiver by any party of any legal, or equitable r],~l~t which it otherwise would have' provided that nothing herein shall be construed to negate or relieve ' liP, Atlantic or lltunble of any cmmnitmcnts undertaken in or pu!:- suant to tl~e letter of August 6, 19{;9; any geolog'i, cal, seismic, well or related infm'mation concerning' the lands within the unit area, as shox~n) on Exhibit A-l, w]~id~ we may ~,,¥,' ia~ ion ~'nal<e available to you pursuant to this ]ct[or.and during n~,,, toward formation of the unit slm]l be held co~ffidc~itial by you a~d ~ot be disclosed by you to anyone Who has not aec{,pted'tl~is letter . prior to eonsumn~ation of rite Unit Agree~nent or A!)ril 1, 1970, ¥.'hicl~eVcr is later, witl~out our w~'ilten consent. _ 1003167~+ ~ -~ : ~:~' .'..~. . · ... ~. ...... :, ... ; . ~:-'~, . " ~'~ ~7 ~-', .'~ . : ' '"' ' '"-' · , :' ' : ~'*". ' , : . .., , · , . · . .. ,-. · .:... .~ i~ . ~..:..- . ..- .:, . .... :- . . ~. : .~.. .,. .'., : ... ..... : ._ ~. .. ~ -.. :,f '. . :? ~':~.. -, .~ ., ~ -:". . ..: . .' .. . .. . Page-~ : ~ ...' .~ - . . . .":..:.'. ~. - '... '. .. ' '' ~ i' ~ "~ ' ~-.-. ~' :: ' ' '; '~' ' - ~ ~ · ...... .-.. .~.' '. :,,~.; .'. . :. Our l',reseOt {:imOtable ant:iCJl~ai, es that-tho O;)'Jt:.Agr°omo, nt~' "'' : ' and URJt. Operating A[[rccmcnt will be~:'ii)' final fgrni }md executed ~i~ or bcforo will t,e. made at the.Field, II'ul[s'~ ])earing.on 'NOvember 131:h.' 1)re-uni~ comndtl'ecs are being f0rme~:hnd recomm~ndrtt, i°nJfor lmndling of important matter5 wili:':Pe fon[hcon!ing, :" -: - ;' ' , ;'.i' , ··'2 . '" ~ . .. :~ : . ~ ." .~ ' 5 " If you aga-ee fo joh~ x~ith us; End wi~h~ Shch';f:the'.otl~er addressees of' . . ~ . ~ ' ~ '~ , · ,,. ;~- - . . · . . . - . . . flus 1.ed.e~ as aga'ee'-to ~o~n,' re,the undcrtald}ng :.~¢scribed' in said letter, as herein an~ended,-please sd indiea[e bY exemd;Thig"-anrl by:rctunling copy of this l.e~ter to *~9h of ~lle undersigumd ' Bre would appreciate ym~r repl3~ to this lette?~by:~ovemberJ 10, but in" any evenf:, not'later 1 ~.~mm~-y 1, 1970 ' ". . . .. ; . e . ~ : .. . :: . .. , : i i'. ~ ~ ' '- . .[ ' . -, i(- . t~ly ' ~ ' ' ' Yours vol'y tr .- .,, ~ .., . , ) ' .. ' . ~. X.i. ~enSOn, ar., '·Vice pre'sidhn['-~77~f~/d0 p. O. Box 2819 : -';- - · , ' ". '"" .... - , - .~ , Texas 75221 · ' '"~' . '- .. ;; ; , . '.. . . ., · : - [ ; ', By. · ,~-. ';. : ~'"" ':' ' ' ": ' :'"'~":'"'::"".' ' " -; O'- · ' ' ~ ' :'. ,:.~ ,. 7 /j..';-'": · · '.,'. . ' ', .' ' - 'E " ~-~" : - ' ' . ' . . v ...' 'f' ;j'' ' , ' '" · ' ': ~ · ' . :-:' ~2~ -. ~ - : , , : ~ -, ... . ' 620 FifthAvemte" : ~'( ',~ , '-... New York, New York 0020. ~ [-~.. · . .: :- j; : . . . .- . ,' IIUh-I]3]~E OIL & REFININGCOhrP~[NY~ -'-'~,~:'~-' ',~" " .. ,: . ~ ~ j ;2:~ - . : '. :. .- . ,.'[.,, .: ~ ,: . : · _~, :, ..--, .... . ..,,.. . ..,.{.. ~ lIouston,.'j'exas 77001 -.',~:-;7~'/;~ ' '~' :,-~:',:"))[i ,: ' : .:~..:,[,: ...' ,.: ' ._ ' · .~ - .3 ~ ',5 ' ' . [ ~j; '..: :-'- ~ ..t~~:: . : ~ -. . ,;. -.. . . .- '.. . :: ;. -~ ... · ~ ~ . ~.. .- '. : . .:. -...:, - . .... . :." . . :..:' ' .'~ ~ .,- '~2..(-'",' '5..:': ;. '.".' ' -~ '..' .: i' :;'.., '. ' , }; ,:, ... .: .... .;...:' ...:-. f,'¢~ ... '.(.. - . . · . . ..-. . .. :. ,,... ? ~;,,.~..~:.'~ · . ~..~. . : :~. ~:-~' ' ....:./ ; . :- :. : . . . i'... . . . , . ':. ,... .~.', . . · :.. .: ....:.~. .;: ~. ~,. .. ' .~ .~. ;.. , . :~,.:~: .~ · .: ....:. . ... ,~'.~ j:.~,'; ~'~.~...~'..:.. . ' ' '" ~ ~'tr.. '~ ' f~' . ' , . . :. ' =,, ;: ~-~ ,'... · . . .~. .. .:,.. .... .~, :y;..~' '., ': ' :[[j:.~::,:9;; .' ~ .. ,, ; , ~'.':'~ ,'~ ... ...' ; · . . f - ~ ~-.' . ; ·, ...,, ¢f ~ .:'ti ¢>. ;. '. . ,.. ,. ..-, . · . :. : - . ' · :[., ' d · - : ~"' ' -,, · .. :' -.:~ ,.~,~' .>(* :... " ,. . -~,'~-t'~ ~,-,~ -- ~..~,',xq:?~o . - ..... AGO 100B1675 Ocl:ebcr 29, ~[969 ACCEl)TED AND AGREED TO This day of , 19 6 9 STANDARD OIL COMPANY OF CALII,'ORN/A PHILLIPS PETROLEUM COMPAN~~ By. MOBIL OIL CORPORATION By, HUNT PETROLEUm{ CORPORATION AMER ADA- HE SS By; GETTY OIL COMPANY · - . : AGO 10031676 O. · '; '/"[' ;'.'.,'.,~-~? ..':.'. ?.-i':'¥-.~ :.'.,' ':'?'.. ,. ',:i .... ~' . 'q" .-::- ~ , .['..~J~, '..~i.~f.':'.,. ~ ' ",: ·.-... "?..,~... ~ , .:~..~.';-:.' .,.~. '.- ." :;':.: 5 ~'~: '""[ '.:: '-9'"'.'~_ :' , '." :' ,¢'..';5',::" .'; ·. [' .~...... . .:. {,:~[ ;: .'.. ..'t..:.,i ' :";"l"; ' '~'~ ..¢[ ... . ,.'. "-.-."':"' ~ '-. ,'. . .,.. t'. .. j. .'. . .. -.~ :,~ -.~'.. '.;~. ~ ' , t.. ?'q , - .. · ," :'.;3 · -'; ' .... :. ,,'::~"..' )- .. ,,...? ~2 :~, .,,~ .~). ....'-.f,: .'. ~. t ' ~ · '. .' ~' "; ;" -. .;- ,.~ , :t..., .,'.t:'..[..~. -,.- ~ -..:¥,..t, .' -;'..~?'- -, ~,.~.'..;., ·:; ..,,.[' , ,' ';, ,',-1,. '&" 3',,'- k ..... ;i ' ~' · - "~:" .,..... ...... , , · 1.... . .. .. - ..:~. , .. ['c. ";: :' '" . ?~i". ': t.~, ' .4 : ~., ' [ ~i, ' ' ' ,': :' 'f .:,:.. - . ~;- :, .~ ~:") ' ' · r~'. :'. r L . . -'.r:¢ .t . - . ~z;.. ~ . /[ki'-"' .' ... . ' 2' ~''4 '5"}" '.~ " ],~'.'L.'.;::~.' :'.' . . .. ~ .''".... .,. :, ] f? ~.- _...- ;.iy-_.~ .... ~_ f.:~, ... 2~..... - -..., .~... . *_ ~- . ... ~?[. *::~ .-.)-~[., - ~ .T , ' ' ' . ' . · .,. . ¥~: .,:~ :', ~,..,:. · .. ;C? , : "- ¥.., ,'.'-:. ; [1_' : ' ~ ..~,,.;. .~.:-,~ ~': ~.~-.'--:'- .:.. ~;. ,,.:, . . ?,.,.... ?:.[..;.:..:.;.~':'..::.:-' · .. :, .'¢1. ';,- Y. r-~:'?:. . . -,....':. :%' -~.,:,.(.. ': ~.-~::.-~, :..-.:~ ~.: ~ ~.[. ;:- -.. ,-~"~ ~,,~.:, ~;: ..... . .:.:'.~.~ .,~ .~ ,.....,.... ,. ., ,.. .." . -. q ~-' .-.-/. ,}.¥... . . · .: .? ,~ . 5 .' . · . ~ . . ,..; ~ ~ ~ ':. .. : ,.- .' .. ..... . . :~.L.2 .,..., . ;. . ' -'. ,f .~ . ;;~: .t: , . . , ,,..........f'i:::,. ~...:... , ~..'.'. ~ ,~:~.,~ ,. . ~ .- . ' · :' "/:",5": ':~ .'J~ :: :'.., '. ; '. ' i". '.[~[.~,.-:~. :?":~- , - ' ' ." ,. (f'~. ?r."?-':': i~g '"" ' , ':~ ; ' ' [ "i" '. '. ' ': '"'.' '-? :~ i' ':i.'::' .~,. ' '. . ' ' )',:': ', ~i.. i'."':' ' ; . . '-['t.,.;.,..::'~'. ".', ?,: '. · · · ~-'...' ...--'>,.-:,- ... .... : ,. . .. . .~.. ~..- ~ -- . . · .':.: · .. · 2j~-.'?,"t-: ~"~: "~;: .. ..... k.- ~ -"~" '~'2 "'f' · "'' ? -' ' -. J.x~.. · ' ' ' . ' .... ' ' ~ ' tZ.t;~_~Y. ' . ,. ' :".:-" "..' ' : ;,- ....... .,. }.-. -,, ~,I" .' -,. . . .;, :q'.:,..~.."..~; . ~ ...-- . ",' ,.- .' ...,-, . ,.,', --;" '.~':~ff:; '. ¢ '¢ '-¢': "V-~ ". ':'" .':' 10031677 . . . ,. - .: _.., .: ,-;~ . ., .~..... -; .,. ,. .... ,,. - . . .~. . '~.~.:~- ~ :~ - . .-~-.- .~ . .,.;. · , .oi ' ,.''- _:',.-:" '-., :. . -. -_ - . : .:. :--::: ':-"-:.'-'.'--'--'.'.:": ::,:_-'." H~?le Oil. ~t~:.Refini~6/[~°mP~nY :'-":.' - ' "' :-;' "--.:-:-.-' :'t.' .-::.-.:-- :.'.:.::: al: . ox ' :: .':' .:. :?- -; ' ' . ."'-_~ .- . . .... :-" ." -' ':-~.:'i:,.R,::(~:;:~:'g.~oPosea Cooperative Development - . . -.- ..: - .. :.~ . . .-.: '-. : . ' -. : _ ~ '- '. ' ..:.. -..- :~ ..... - :-'.: . ,,:,~ :.- . :. . .... - :).- ..- . - ' - '.: -: ~-'-- '-.--:-.-- .-:' Gentlemen: -.~ · '-:[, ,'~::- ~.:'~ ' . . - ' .-_.: .~:..~:. : _-- 5.,:. :~ ..:: . ._.:-:'-. . .... · ': . .' '- '." .... ":' ~ '----:_ .'_.:-;-:."'(-_:': In order t0 p~%:ote' COnservation, to increase dril.l-i-ng, to ~V6fd--~st~., and. to ihsure each · :_._.-..-,:::-_ :.: _"(::::::-.-::.. --.,. ._ ., ?- ..., . par~tc]pant a-rca, sm~ab3e opporLxm~ty to recover . - "-' :- '.-:'--'--_. its fair share, bf th:~ o'il.~and gas 'in Place, it . , '.- : :; - . ,. . . ~ . : .. ]~-..._ .-. . : :;_:-. - -appears desirable ~o':uS' that the oil and gas '" ' 1'1 - Prudhoe-Bay-~t~f~ :N~/~::~ :We~t':bet~vcen the , -. ' ..... .:-:-':-'::':':'::~.'-: d~p/tl~s of 8,0~,6-fee~ S~)sea and thc top of the. . :.- - -'...-' '.-"~.- '. Carb0natc fo'x~-~a~i6h ~::.'8'-7,~7 feet subsca as "'-: '-. :". -- ":-."' -' .dct.e~mined b~::.refe~c~e':t° ~U. aI incluCti°n log :""" .. '"-.'~' ..- : - '-.'-" .'of said welld~Cd'-~'IaX~tt 9, 't'968, and fu~-nished '. ,"" · ::" '--.' -." --:.::" .-'-:':' the patqi'~,s herd~° :6~nd~rlyi.~g the re:it, area out- _..: '- ';' . ':-'" ~_-: :.:"":;' '-lined'on the. PI:at at~acl~d hereto as'Exhibit A ' -..- . '. . '' '" :;:, .' .be developed.;¥oi~er:ate~:'an~ p~OduCed 'as if ~c ~mit.- . : >' -' - · ' :"":':.: ": area;had becn-~.inelud~d."~-i:n-a single lease, Acv . , .- -..., ..... . ,: _' ~,- - :;._~:-:--:::~._-:..;. :. ., . . . .... :cordinzly,. we' 'p~OpO~.q'l.~hat appropvie, tc" legal,and . .~ . . :-'-":. unitization c0f!:~igte~:~:~.be--apP0~nted-to commence' -_ _ · .. _. work immcdiatety.,~f~'"the.nex~:competitive Sta. te' ..~ . .... :. -. - -., :~.. - . ,... ' l~as~ sale (e~q~?t'ed a~out September !1, 1969) to. -' . . '.' agree on.dcfi~iti~c:'fO:~]~S' efta' Unit Agreement " . ~, ---:' '-.~; and a-Unit O~-~r.~-h~'~grcem~ea~.a~?~i. el~..would,- .' "~,, :~ "-':"" · ' . . t. EstabIish s:cP~6~ate parfi.cip6ting areas - ",- ' .' - '".for ~hc oil rim ~d. thS:.~.gas-'chp eacl~;With sepa'.. '. ;-. .. . ~.. ' - ; - .i ...' ':-: _ --': ': '.::: ':;-~-. ~; ::%': -.L .. ':- . ' :, :- L..~":;-k-" : ':' -" '- .-',".. ' ' .'~. · ' -.. ' '- · ' .: '-~ '- '· -'~?'.-. :-:.-:'.::-: '.~'-'-::'~ :L'-' : :--~-''. '~ :-'. ';: :'-' ' · ' ,' · ,,:_'.: ' ':._ ~--~ --:'~...'_:'_' ..,~,~::~ ~..~ ,:~t ["-, :-., ~_,-.:' -~:~?[~ .- . · - . '.:-' "- ' - -v:~ ':~-~- ..... .':":~'(:.'_~:. ~. :'."-/.: - ,: .. '.: ..' ~' ' ' ~ '. . - . . --. _. · . --. . _-'::......' .. _ .: -: . .~_.: ,....., ;~-.:;.~ .- _ . .: .. - ,,-: . .-.. , ·, ·, . . . '.."---:-.'.. '--:::"'~'~.. -::.-: ?-:,q::C ':'-::-"~'[~(' '---'-:..':. :"" -'. . - - - ' ' ' '"- ~ ": [~2:[~'.". --'~,',~'::;'---:' :-:h'/~?:~::~;::'.',~:--'.-- "- · - - ', - ,,'-''- · ": . .':~.:,~:;,,"i:~:~:. :,~.. '- -:: '-.L~,~-::~:~'z~ ' : AGO ..... .... - ..,n-.::~:;; . !::', :t'. ..-,~:J:.~::~?'~;:f'- -', : . ' ' 10031678 Al) ~.,licP, ichlieldComDan¥ O, ./ k oil originally in place and' ijas oril.~inally in place with each tract in cae},, partici- paring arcs bcinl.~ a!locai, cd its al>pt'opriate percentage of production uudcr thc Unit A~rcement and with each tract working interest ox~mer bearin~ the royalties, overriclh~¢~ royalties and production pa}m~eats on produc- tion allocated to the particular tract and other lease burdens applicable to such tx'act, Any lease covering lands within fi~e Exhibit A area proven to be productive in tim same sand interval and subsequently accluircd by any party hereto may be added to thc unit on the same basis. Each participant shall take its share of the oil and gas in kind and . separately'shall dispose of its share of the ' production, In any event thc benefit of discovery royalty on production allocated' to the lease on which P~m&~.oe Bay State No, 1 well was drilled shall be shared equa]!y by Humble and Atlantic' Richfield. 2, i'VIake initial separate determination of oil and gas originally in place underlying separately ox~mcd.tracts included within the ~anit axes outlined on Exhibit A. by April 1, 1970,. based on data available as o~ September 30, 1959 .... ~ ~'~--,-~¥~ot~o~'~ of oil and gas and another sopai~t~. ,~.,~ originally in place underlying se~-~arately tracts included within the unit area outlined on Exhibit A, by Janua~b' ~ ].90'3 u~:iiizi, ng data' aVaiial0le as of july 1, ].972,. A. final and separate determination of oil[ m~d gas origfinally in place underlying the s;_~.?a.?a~.ely owned tracts included witi~in the unit awes. v~.,i].], be made by Janua~ 1, 1976, 3, Each party shall co:.,~sult with other parties hereto as to location a~c~ p~m;~,~.teri depths to be drilled on all wells proiectcd fez completion in the subject sand in order to assure an orderly develop- ment of the field in accordance with sound engi~ neet'lng principles, Not~vithstanding anything herein AGO 100B1680 Atlaaiic Ri c hlieidCompa ny -3- to thc contrary, tach party at its :;ole vis]c, cost and C.Xl~en:.:e. shall be f~'c¢', to de. vclol) its own leases wilh whntcvcv drilli~g or other activity it alone scc:; fit. It is contcml)lated that the uuit a~,~t.cment :lllfl tho uait operating agreement make appropri;tte investment adjustment as to such prior e.xpendttures, however, the unit shall not be necessarily obligated to pay for wclls not abn'eed ut~n by the above consultation. 4. Permit the oxx.mers of tim oil rim participating area to store, at their sole cost, risk and expense, solution gas in the gas cai) or in another appropriate sand underlying the unit area. Since a g'iven well sinkuli~qneodsly may produce oil, solution gas, and gas cap gas, a formula will.be included in thc operating agree- merit setting out a method of separately measuring and accountin[( for such products where that condition occurk.' · ,. 5, Providd for possible expansion of the unit area and revision of the participating oil rim and gas cap areas, on the basis of oil and gas respectively originally in place, with provisions for handling investn~eut adjustments, prior production.and oilier relevant matters-upon expansion and revision. 6. Provide for more than one 6perator, with BP being one of the operators. 7. Provide for formulas that will allocate the relative production from the gas cap and thc oil rim. 8, The participants in the oil rim 1)articl- paring area agree to the objective of development of the field as quicldy as is economically prudent so as to permit each such participant a level of 10031681 AtlanticFfichli¢ldOompany off[akc not later th:tn January, 1976 o[atlcast three percent (3q) auto, ally of thc oil orilTinally in place uudcr [i~c leases prcsc~tly ovmcd or to be obtained by each of the partioipants within thc unit area, All the foregoing is subject to valid rules and reg-ulations of i:he State Rcgxtlatory Agency having jurisdiction and to applicable laws, rules and reg-ulations of the Skate of Alaska and the Government of the United States. If the above is in accordance with your understand- ing, please execute and return to us one copy of this letter~ .' Yours very truly~ T.F. Bradshaw . ACCEPTED AND AGItEED TO this ¢'* ''~'--~'' day of ~ .... ~-.,-/~-- 1969 BP OIL CONPORATION , / TFB/sa AGO ../ 1003165Z ]~X}i J.i.l 'I'T "A" ..;I..l"r~.~.',, I,t,~; 1" ' -. AGO 10031683 },:.:: O '0 0 0 0 , ,GAS l CONSERVATION,.,, _ J ENVIRONMENTAL I1 GEOLOGICAL o :,1.,..¢ ~:::, C 0 MM tTTEE $ RESERVOIR ENGINEERING j i JOPERATIONS FIELD DEVELOPMENT &l IPLANNING TAX ACCOUNTING J [ LAND AND LEGAL O. TABLE _A~.proximate Man Hours on Meetings of Subcommittees to Date Sub commit te~ Ac court t lng Enviro~nnen'tal Field/Dev. Planning Gas Conservation Geological Operations Reservoir Eng.. Land and Legal Tax No. of Formal Meetings 11 .].'2 ].2 15 12 Time Man/Hours 1,900 1,100 2,300 6,500 7,000 1,20o-' ~42,500 '7,200 In addition to the above major subcolmmittee meetings and preparatory work, various small ~ask 'forces have been conducting work on an almost continuous basis. AGO 100B1685 February 9, 1971 sTATE OF ALASKA HEARING - PRUDHOE BAY SADLEROCHIT POOL · . · . INTRODUCTORY STATEMENT Mr. Chairman, Members of the Alaska Oil and Gas Conservation Committee, , I .am F, Harlan Flint, attorney for BP Alaska Inc. It~w~ll be my purpose · to make an opening statement in relation t6 certain testimony that will · be presented at this hearing. -In the interest of an orderly presentation, the avoidance.', of duplication and the organization of materials to be presented, the pre-unit participants have attempted-to coordinate their efforts in.the preparation Of the matters to be presented to you today. In the course' of the hearing . you will be hearing from representatives of'several companies who will _ · - offer testimony on items listed in the-call of the hearing. · '.You will recall-that at the hearing for the establishment of temporary . ' rules in the Kuparuk RiVer and Sadlerochit Oil Pools conducted by this . committee on November 13 and 14, 1969, the parties presenting testimony r were unable to provide as much evidence as you would like to have had available to you for use in 'the formulation of pool rules. This derived from two source's. First, it was very early in the exploration and development of this great region and the data aVailable to the individual · companies were very limited. Second, there were compelling reasons for. the operators in the area not to divulge information acquired by them which at that time was.protected under the State Statutes regarding confidentiality and had unique importance in the competitive conditions -$ that existed. ·The pas~sgge of time, the progress that has been made in the development of the. Fieid and the availability of more data makes · · it'possible for .us to Provide you now with a substantial amount of information whichwe trust will assist you in the performance of your responsibility to review the existing pool rules and adopt permanent pool rules. . · · . AGO 10031662 The testimony to be presented and which I will outline'will, in large measure, support the retention of existing rules. The extent to which changes will be recommended will be made evident in the course of these presentations. For reasons that will be touched on later, the presentation I am outlining will be directed exclusively to Conservation Order 83-B, dealing with the Sadlerochit Oil Pool. May I now outline the order of presentations. It is intended that these presentations, will generally follow the eleven items upon which testimony was elicited in~the published notice of this hearing. The first witness will be D. ~B. Walker, a geologist employed by BP Alaska Inc., who will present evidence regarding the area to be affected by Conservation Order 83-B. · _. Following Mr. Walker will be two witnesses employed by Mobil Oil Corporation, who will testify in support of the co-mingling within a common well bore of the Sag River Sandstone (formerly called the Oxytoma Formation), the Shublik Formation sn~ the Sadlerochit Formation. Those · two witnesses will.be H. No Porter~ a petroleum engineer, and J. F. Vitcenda, a geologist. -'~ The next witness will be Bo C0 Ander~on, a reservoir engineer, employed · by Atlantic Richfield iCompany~ who ,~ill provide t]~e Committee with engineering data on the Sadlerochit Oil Pool. The next several items within the csll of 'this hearing cover elements of the pool rules~· including well spacing, casing and cementing, bottom hole pressure survey requirements~ gas/oil ratio test requirements, methods · of preventing uncontrolled flows an~ administrative approvals. Mr. John Scott, attorney for Atlantic Richfield Company, will present the case on these items° Testimony on the disposition of produced gas will be given by R. F. Cox, Resident Manager of Atlantic Richfield Company. Mr. Scott will comment on. reservoir p~essure maintenance~ and finally, I will offer a statement on~ the pr°gre:ss".'Of ~.~' ~'.: · · Un.. ~zation ~ .-.. <'....'. '/":"".'. . -' ': "':" &GO 10031663 · . I'' ~ I I I I II IlflI - - ' February 9, 1971 STATE OF ALASKA. HEARING - PRUDHOE BAY SADLEROCHIT POOL GEOLOGIC TESTIMONY M~. Chairman and members of the Alaska Oil and Gas Conservation Committee, at this hearing I am presenting geologic testimony on behalf of the groups · involved in.pre-unitization negotiations. Following the previous hearing in November 1969 to establish fiel~ rules to apply to the Prudhoe Bay Field, field rules for the Prudhoe Bay Sadterochit Oil Pool were issued on January 12, 1970. We intend at this present hearing to present testimony with regard to the areal definition of the pool affected by these rules. This 'is to establish whether any revision to the extent of the pool, as previously established~ is necessary. · At the last'hearing BP presented testimony describing the geology of the Prudhoe Bay area. That testimony will not be repeated at this time, but we do present a generalized stratigraphic column to review the vertical sequence of the formations and to indicate the.minor changes in terminology which have been introduced° E~Xhibit A'is this generalized strati~aphic column. The minor changes in terminology have been made largely as a result of informal discussions of the North Slope Stratigraphic Committee of the , Alaska Geological Society.- Considering the Section from the top-downward~ an additional formation name, that of the Pleistocene to Recent G~_bik Formation, has been added. Its thickness is believed to be 200 t° 500 feet in the Prudhoe Bay area. The remaining portion of the beds previously ascribed to the Tertiary Sagavanirktok Formation~ consisting of gravels, 'sands, silts and clays, remains as. described in the testimony presented in the previous hearing. The naming of the' Upper Cretaceous formations in the area now allows for facies differences° The upper part of this interval is referred to as AGO 10031665 f%l i ilii ................. Upon the completion of the above described testimony on the Sadlerochit Pool, counsel ~for the Standard Oil Company of California will address himself to. the call of this hearing insofar as it applies to Conservation , . Order 83-A, which established temporary pool rules for the Kuparuk River Oil Pool. I had previously mentioned the desire of the operators in the Prudhoe Bay Field to disclose substantially more information than could be presented to you in the' 1969 hearings. I am sure it will be obvious to you that there are still some data and there continue to be some areas of the Field that require strict confidentiality. However we are confident that this hearing'will provide a sound evidentiary base for the pool rules already in effect and a good basis of information.which will. be useful to the Committee in the performance of its responsibility to protect the public interest in this great Alaskan resource. .. ' AGO 10031§6~ Prince Creek Formation/Schrader Bluff FOrmation undifferentiated. The former name applies to coal measures - sandstone litholo~ and the latter name is applied if the sediments are of a more marine aspect.. The 'underlying Upper cretaceous mudstones and siltstones have been correlated . wi%h the Seabee Formation and these 'overlie an as yet unnamed Lower Cretaceous- shale. . where Seen' beneath an unconformity,~ other Lower Cretaceous rocks are still officially unnamed. In the west this interval contains the Kuparuk River Sands but over the major part of the Sadlerochit pool area these are absent due to' truncation. The Kuparuk River Sands have been discussed in a paper included with the Proceedings of the North Slope Seminar published by the pacific SectiOn of A.A.P.G. in 1970. The Jurassic bed's are still re.ferred to as the Kingak Shale. The Triassic and Permian beds are shown on an expanded scale in Exhibit B. The sandstone lying beneath the Kingak Shale and above the Shublik Formation.in the Prudhoe Bay Field, which was previously termed the Oxytoma sandstone, has~been more correctly renamed as the Sag River Sandstone. The type section was defined in the previously mentioned Proceedings of The North Slope-Seminar as the interval 8440' to 8482' in the Atlantic Richfield-Humble well Sag River State No. 1. This fine grained, glauconitic sandstone varies in thickness throughout the Prudhoe Bay Field from .approximately 20 feet to,60 feet° The. ShUblik Formation consists of varying lithologies of limestone, shales . and sandstones with distinctive phosphatic beds. It varies in thickness from approximately 40 feet'to 200 feet. The Sadlerochit sandstone is comprised of sandstones and conglomerates in varying proportion together with minor interbedded~shales. 'The sandstones Consist principally of detrital quartz and chert together with pyrite, : · . . ' ' AGO 10031666 siderite and some clays· The Geological Subcommittee formed by companies involved in pre-unitization negotiations has picked the top of this sandstone'at 8206 feet in~.Prudhoe Bay State No. 1 and the base at 8673 feet in the same well. Throughout the field area this base is at present picked a~ the lowest limit of significant sand development. The Sadlerochit sandstone has been seen to vary in thickness through the field ·area from approximately 450 feet. to 630 feet. The Sadlerochit Sandstone and the underlying shales are referred to as the Ivishak Member of, the Sadlerochit Formation. A sandstone which is present in places bengath the Sadlerochit shales is known as the Echooka Member The previous unofficial grouping of the Sag River Sandstone, Shublik · Formation and Sadlerochit Formation into the Prudhoe Bay Group is no longer applicable. · The PennSylvanian -Mississippian succession can be subdivided on an . arbitrary basis into an. upper predominantly carbonate section termed the Lisburne Group and a lOwer shale and sandstone section termed the Kayak Shale~ In the Prudhoe Bay area the Kay~ Shale and Kekiktuk Conglomerate rest unconformably on the Argmllites". This testimony is only concerned with Conservation Order No. 83-B and 'consequently only with~the Sadlerochit Oil Pool. We now intend to present data concerning the areal extent of this pool so that it might be determined whether any change is necessary in defining the area to . which the field'rules apply. Exhibit C 'is a structure contour map drawn on the top of the Sadlerochit sandstone in the Prudhoe Bay field area. This map was drawn by the Geological Subcommittee .formed by the companies involved in pre-unitization · negotiations. The map was most recently updated by that Subcommittee in · July, 1970. AGO 10031667 The map is based on well data and the interpretation of the geophysical data available to those companies. It is, therefore, a compromise interpretation and does not necessarily represent the views of any one · · of the companies, but is a map initially acceptable to all parties. One ar~a, indicated by shading, in the southwest has not yet been fully .resolved and further work is necessary to. interpret the structure in that , area. On this map is shown the outline of the area to which Sadlerochit Pool field rules currently apply. Wells in the area are indicated as either having encountered oil in the Sadlerochit sandstone, not having encountered oil in the Sadlerochit sandstone, or for-which data has not been released. !,The map shows a structure culminating in a high Centered on the area around Prudhoe.Bay State No..1 and truncated on the east by an easterly dipping unconformity surface° This structure has a predominant flank dipping gently to the south and southwest, with average dips of the order of one and half degrees. The structure also dips gently to the west from the high Prudhoe Bay State No. 1 area. The north and northwest flanks of · the structure are pOOrly defined and are shown to be faulted. The northwest striking linear trend to the west is faulted along its southwestern margin-. It must be appreciated that ~the present well data are too sparse and the seismic control inadequate for delineating details~of the structure. These will be revealed as additional wells are drilled. The map also shows the currently interpreted limits of the oil and gas accumulations in the Sadlerochit sandstone. In the eastern area the downdip limit of the gas cap .is shown, this gas cap extends through the crestal area. The downdip and updip limits of the oil· column are also shown, the updip limit being determined from the intersection of the gas-oil contact and the base of the Sadlerochit sandstone. In the western area the downdip limit of the gas cap is Shown and also the downdip limit.of the oil column. in the western part of the.field oil completely underlies the gas cap. AGO 10031668 These gas-oil contacts and'oil--water contacts have been established from tests and wireline logs in individual wells. The' contacts have been determined by the members of the Reservoir Engineering Subcommittee formed by the companies involved in pre-unitization negotiations. The contacts in wells have generally been established by averaging the interpreted picks of the individual companies involved. For initial studies it was accepted that. in the' east a level plane at 8572 feet sub-sea approximated the gas-oil contact and in 'the west a level plane at 8775 feet sub-sea is initially acceptable. . The oil-water contacts were found to vary throughout the field area and as yet the reason for this is not apparent. The agreed oil-water contacts for the wells were-treated.as a surface which could be.contoured for estimating the distribution..of the oil column. This contoured surface, prepared by the.Reservoir Engineering Subcommittee-is presented as Exhibit D and requires no further comment 'except to restate that it'is purely empirical in nature and was acceptable to the companies involved. 'This map. was used to construct the oil-water contact traces on th~ structure Contour. map (Exhibit C). To illustrate further the structure and fluid contacts of the Sadlerochit sandstone in the'area, two cross sections have been prepared, approximately west to east and south to .north across the field area. These sections have been drawn on the same horizon{al scale as t~e previously presented structure map although they are expanded at the well points to include the well.logs.- To indicate the structure and log. characteristics, a vertical scale of 1" = 100' has been used which gives the sections a vertical exaggeration.of forty to one. , Exhibit E is the west to east cross section through Atlantic Richfield- -- Humble's North-West Eileen #1, Mobil/Phillips' West Kuparuk, Mobil/ Phillips/Socal's 7-11-12 (original) and Kuparuk State No. 1, BP's 09-11-13, Atlantic Richfield-Humble's Prudhoe Bay State #1 and BP's 31-11-16.' AGO 10031669 The resistivity logs for these wells are shown for the Permo-Triassic interval and the immediately overlying beds. The Sag River Sandstone,. Shublik Formation and Sadlerochit sandstone are correlated through the area., in the east the position of the unconformity is shown truncating the Sadlerochit sandstone. The cross section has been left blank near the area which was indicated to be as Yet unresolved structurally. The ~ ~ electric logs indicate the distribution of permeable beds, and the fluid · contacts have been Placed on the diagram to conform with the map .(Exhibit · ~ D) for the oil-water contact and with the defined gas-oil contacts. The south-north croSs section (Exhibit F) is constructed following the same-principles used to construct the west to east section. This south · · · ~ . to north cross section passes through Atlantic Richfield-Humble's Put ~ - ~ ~" ' River State (7-10-14), BP's 32-11-14, BP's. 27-11-14 and Atlantic Richfield-Humble's Prudhoe Bay State No. 1. .This section indicates the main south flank of the eastern culmination .. extending up to the Prudhoe Bay State No. 1 area, and alSo, a fault between the wells Put River State No. 1 and 32-11-14 is indicated downthrowing to the south. This fault interpretation was necessary to satisfy the well data and has some confirmation in seismic data. To return to Exhibit C, the structure contour map on the top of the Sadlerochit sandstone, the area to which the field rules in Conservation Order No. 83-B apply for the Sadlerochit Oil Pool is outlined on this map~ In light of the results of the co-operative studies of the extent of the pool which we have presented here, and realizing that our knoWledge of the area is far from complete, we do-not at this time request any change in the area to which these field rules apply. This concludes the testimony Concerning the areal extent of the Sadlerochit Oil Pool and I wish to~ thank' you gentlemen for your attention. AG0 10051670 Februa.ry 9, 1971 STATE OF ALASKA HEARING - PRUDHOE BAY SADLEROCHIT POOL PLANS FOR UNITIZATION At the hearing on November 13, 1969 a letter of intent, previously submitted to eleven companies, was presented to the State. This letter outlined a proposed unitizatio~ of the Permo-Triassic hydrocarbon accumulations as defined by the Prudhoe Bay State No. 1 well. The letter was'agreed to by all parties shortly after the hearing. A copy of the letter of intent is' attached to this submission for your · records and basically outlines '"an agreed to basis of unitization. In 'the fall of'1969 the Steering Committee .convened and the Subcommittee · structure was organized. This organization is shown on the attached plat BP No. 1 and the area to be unitized initially is shown on Exhibit~ No. 2. Since that date the 'subcommittees and various task forces attached to the subcommittees have been meeting on an almost'continuous basis and a great deal of progress has been made. In order to illustrate the amount of effort that is being devoted' to unitization, .th.e attached Table shows the approximate man hours that have been applied to the' effort of negotiating the terms and Conditions to be implemented. . It must be realized that in light of the sparseness of data and the enormous size of this pool, it is imperative that every consideration be given to the PoSsible' factors and future events 'that mayl effect unitization. This, unfortunately, requires time. ,, However, definite progress has been made and ever~ effort is continuing to lead to as early an unitization as possible in order to optimize the development of the' fiel'd and to protect the envir?~ment of the North Slope. · ~G0 1003~6~ Rule 4. Blowout Prevention Equipment and ?ractice. (a) Before drilling below the casing string required by Rule 3(C)~ all drilling wells shall have three remotely controlled blowout preventers~ including one equipped with pipe rams~ one with blind rams and one bag type. API Series 1500 (5~000 pound working pressure - 10~O00 pound test pressure) shall be installed prior to penetrating the permo-Triassic formation. All such equipment shall include a drilling spool with three-inch minimum side outlets (if not on the blowout preventer body), a three-inch minimum (or equivalent) choke manifolds and a fill-up line. All equipment shall have a minimum working pressure capable of withstanding formation pressures reasonably exPected in this area at the depth being drilled with adequate safety factors. The drilling string will contain one valve above and o~e below the kelly'during all circulating operations with the kelly. %~o emergency valves will be conveniently located on the drilling floor with rotary subs for all connections .in uses one valve to be an "inside blowout preventer" of the spring-loaded Valve type and the second to be of the manually-operated, ball valve type. (b) All blowout preventer rams, kelly valves, emergency valves and choke manifolds shall be tested to the manufacturers' recommended working pressure when installed or changed and at least once each week thereafter. An operator may request approval of BOP equipment rated at a higher working pressure than that required by (a). In this event the operator will not be. required to test the BOP equipment to a pressure in excess of that which would be required for the equipment specified under (a) provided the approved drilling permit includes a statement of the operator's intent to test at the lower pressure. Bag-type preventers shall be tested to the recommended working pressure when installed and to 50% recommended'working pressure once each week thereafter. Test results shall be recorded on written daily records kept at the well. (c) All'blowout preventer equipment shall be adequately protected to insure reliable operation under the existing weather conditions. Ail. blowout preventer equipment shall be checked for Satisfactory operation .during each trip. The use of blowout preventer equipment shall be in accordance with good established prac.tice a~d all equipment shall be in good operating condition at all 'times. AGO 10031686 CUMULATIVE THICKNESS (FEET) IObO 2000 3000 - 4000 - 5000 - v.~'.'.'.~.'.:.v.-i 'X..':-.:;: v:.-....-..: o.o. OOOoOOOo "V'";'8""'81~:''8:::%'? · . --:.:-f.X......x-......;.~-....-. O- O' O' .0 0 '..0.-...:0, '... 0 '.'. O. · :~.,...21.I. .'".' ..': ~:.. .... , , ,~ .o.., , .o .~ o ~? .,. o ...o o. 'o.. 0. -o '..'..o'.- · · 0'..'.0 · :. 0 · '0':' O. ! ". ~ . ....{' ...'. i .'..': · : ... i "'i ' ..... . i i ii i '~,' i J _._ x-.. ,-~........ ~.',.. > :, ~.~'.:,. ............ '"~ % ? "N ....... - i" '" ..:.i ,.". i':.:.'{:..'...{:-".-..L v.'. '. }'.-..:.v.:.,.T. }~,.:-.,:.'..'.)?v .._ ,.. .... .... 6000 - OIL 7000 - 8000-_ 9000 - ~*~o,," t I0000 - 12000 - 13000 - 14000 - LEGEND MUOSTONE SHALE COAL SANOSTONE CONGLOMERATE LIMESTON~ FORMATION (INFORMAL) APPROXIMATE AGE 200-500 FT SAGAVANIRKTOK 3000- 5000 FT PRINCE SCHRADER CREEK / BLUFF 2000 FT. QUATERNARY T E RTIARY UPPER CRETACEOUS SEABEE c. IOO0 FT. UNNAMED SHALE c. 800 F'r7 UNNAMED SHALE INTERVAL CONTAINING KUPARUK RIVER SANDS O - 800 FT. KINGAK FORMATION O- 1800 FT LOWER CRETACEOUS CRETACEOUS JURASSIC ~ _-----'~SakG. RIVER .~i~I;~TONE c 1 ' :; :. r, oo r~. ~ SADLEROCHIT TRIASSIC / PERMIAN ~~ SHALE ¢. ZOO FT. UMESTONE CISBU RNE GROUP P E N NSY LVANIAN SAND AND SHALE KAYAK SHALE I MISSISSIPPIAN PRE-UPPER DEVONIAN COLUMN OF PRUDHOE BAY AREA (N. B. FI GURES AT LEFT ARE NOT DEPTHS) EXHIBIT A
