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Home My WebLink AboutCO 449Ima Pro'ect ~rcler t=ile Covea e J g XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. .~-t.~` Order File Ides#ifier Organizing (done) RE CAN Color Items: ^ Greyscale Items: ^ Poor Quality Originals _.~,nea irir~iiimuuu DIGITAL DATA ^ Diskettes, No. ^ Other, No/Type: aa.~a~Nee~ed Ilillllllglllllll OVERSIZED (Scannable) ^ Maps: ^ Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) ^ Other: ^ Logs of various kinds: NOTES: ^ Other:: BY: Maria Date: ~ !sl Project Proofing ~~~ ~~'~~~ ~~ ~~~ ~~ ~~) BY: Maria Date: ;~. ~ /s/ i Scanning Preparation x 30 = + =TOTAL PAGES ~~~ j~~ ~ (Count does not include cover sheet) ~ :~ BY: Mana Date: / /s/ Production Scanning i / / III IIIIIIIIIII VIII Stage 7 Page Count from Scanned File: y1'~_~~-A' (Count does include cov r sheet) Page Count Matches Number in Scanning Preparation: YES NO BY: Maria Date: / ~] /s/ IM P Stage 7 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. II I II II II VI II I I III ReScanned III IlillIIIIII II III BY: Maria Date: /s/ Comments about this file: o~a,,.~~e~kea iuimiiii!iiii 10/6/2005 Orders File Cover Page.doc • 1. February 3, 2000 2. February 5, 2000 3. February 9, 2000 4. February 17, 2000 5. March 3, 2000 6. April 15, 2000 7. May 25, 2000 8. June 12, 2000 9. November 20, 2008 10. March 31, 2010 Index Conservation Order 449 Eider • BP Exploration request for Eider Pool Rules (Exhibits held Confidential) Notice of Public Hearing, Affidavit of Publication e-mail regarding hearing BP Exploration's request to AOGCC request for information (Exhibits held Confidential) Notice of Public Hearing, Affidavit of Publication Notice of Public Hearing, Affidavit of Publication Transcript of Hearing (Exhibits held Confidential) BP Exploration submittal of Eider Date BP Exploration (Alaska), Inc. request for surface commingling of production (co 449-001) BP request Change to Rule 9b Conservation Order 449 ~ M STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 Porcupine Drive Anchorage Alaska 99501-3192 Re: THE APPLICATION OF BP EXPLORATION (ALASKA) INC. for an order defining and classifying the Eider Oil Pool and establishing rules for its operation and development. Conservation Order No. 449 Endicott Field Eider Oil Pool July 21, 2000 IT APPEARING THAT: 1. By letters dated January 27 and 28, 2000, BP Exploration (Alaska) Inc. ("BPXA") requested a public hearing to present testimony to define the Eider Oil Pool in the Duck Island Unit and establish pool rules for development and production of the reservoir. Supplemental information was also provided by letters dated February 3, 2000 and February 17, 2000, and electronic mail dated June 12, 2000. On April 17, 2000, BPXA substituted an amended Eider pool rules application. 2. Notice of opportunity for public hearing was published in the Anchorage Daily News on February 5, 2000. A second public hearing notice changing the date of public hearing was published in the Anchorage Daily News on March 3, 2000. A third public hearing notice for a continuance of the hearing was published in the Anchorage Daily News on April 15, 2000. The Commission did not receive a protest. 4. BPXA presented testimony at hearings convened in conformance with 20 AAC 25.540 at the Commission's offices on Apri16, 2000 and May 25, 2000. FINDINGS: 1. The Eider Oil Pool (EOP) is the name proposed to describe a common accumulation of hydrocarbons trapped within the Sag River, Shublik and Ivishak Formations in the S 1/2 of Township 12 North and Range 16 East Umiat Meridian. 2. The Duck Island Unit has been expanded and the Prudhoe Bay Unit has been contracted to accommodate development of the EOP. 3. BPXA is the operator and owner of the current Eider Participating Area (PA) contained within Alaska State Lease ADL-034634 in the Duck Island Unit. 4. BPXA has drilled a total of two completed wells, the 2-56A/EI01 and the 2- 30A/EI02, and five additional plugbacks into the EOP. 5. EOP development wells have been drilled and completed in accordance with Alaska Conservation Order No 4~ July 21, 2000 Page 2 Oil and Gas Conservation Regulations 20 AAC 25 and Conservation Order (CO) 202 as amended by CO 216 and CO 334. 6. The proposed development plan does not include additional drilling at this time. 7. Well and 3-D seismic data are adequate to characterize the accumulation within the Eider PA. 8. The vertical limits of the EOP are defined by the accumulation in the BP Exploration 2-56A/EI01 well between the measured depths of 16,785 and 17,928 feet, which appears to be typical and representative of the pool. 9. Within the EOP, producible oil is known to exist only within the Ivishak Formation, which occurs in the BP Exploration 2-56A/EI01 well between the measured depths of 17,338 and 17,928 feet. 10. Petrophysical log, RFT and production data have been used to determine the EOP reservoir properties. 11. The currently delineated EOP is trapped within a fault controlled anticlinal structure, which is truncated by the Lower Cretaceous Unconformity and has an areal extent of approximately 300 acres. 12. Estimate of the original oil-in-place (OOIl') is 13.2 MM STB for the EOP. A significant gas cap is present and has approximately 40 BSCF ofgas-in-place. 13. Area Injection Order 19 authorized enhanced recovery water injection in the EOP Ivishak Formation. 14. The EOP Ivishak Formation is composed of three stratigraphic units named, in stratigraphic order, the Lower Sand, Middle Shale, and Upper Sand. 15. The EOP Ivishak Formation is interpreted by BPXA to represent a regressive sequence of depositional environments, ranging from upper shoreface or marine influenced fluvial and distributary sands in the Lower Sand, floodplain or bay fill in the Middle Shale, and a predominantly fluvial environment in the Upper Sand. 16. The Lower Sand gross thickness ranges from 80 to 125 feet, net to gross ratio is 0.8, average porosity is 21% and average permeability is 30 millidarcies. 17. The Middle Shale gross thickness ranges from 75 to 90 feet, net to gross ratio is 0.5, average porosity is 16% and average permeability is 300 millidarcies. 18. The Upper Sand gross thickness ranges from 60 to 125 feet, net to gross ratio is 0.8, average porosity is 20% and average permeability is 300 millidaries. 19. The three stratigraphic units constitute a single flow unit due to vertical permeability enhancement by faulting and fracturing. 20. The oil column average porosity is 21% and average permeability is 134 millidarcies. 21. The degree of pressure communication between the sandstones of the Ivishak and Sag River Formations is unknown at present. 22. Eider crude oil gravity ranges from 23.1 to 23.8° API, solution gas-oil ratio is 769 Conservation Order No 4 July 21, 2000 Page 3 SCF/STB, formation volume factor is 1.36 RB/STB, viscosity is 1.0 centipoise, gas gravity is 0.778 and bubble point pressure is 4365 psia. 23. BPX recorded an initial reservoir pressure of 4635 at 9,700 feet subsea datum. Water saturation calculated from open-hole logs averaged 36% using the Archie equation. 24. BPX proposes to measure reservoir pressure at one single point annually in the field, rather than once per every governmental section. 25. BPX estimates primary recovery at about 15% of OOIP. 26. Predictive runs with a full field simulation model indicated that water injection is preferred to gas injection or primary depletion to maximize ultimate recovery. BPXA's studies indicate incremental recovery increase of 12-23%, up to 27-38% of total OOIP from waterflood. 27. Enhanced recovery injection will use seawater and/or produced water from Eider, Sag Delta North or Endicott. A formation water analysis will be conducted prior to initiating injection operations to ensure compatibility of the injected water with formation water. 28. BPXA plans to commingle Eider production with Endicott and Sag Delta North production in Duck Island Unit surface process facilities. Production from each pool will be allocated by using individual well production tests in a common test separation facility. 29. BPXA submitted confidential supplemental exhibits and information with their letters to the Commission dated February 3, 2000 and February 17, 2000. 30. BPXA presented testimony during the confidential portion of the hearing held at the Commission's offices on May 25, 2000. 31. BPXA representatives agreed during the hearing held at the Commission's office on May 25, 2000 to release all confidential exhibits, information and testimony submitted to the Commission in support of establishment of the EOP on the date the well information from 2-30A/EI02 is publicly released. CONCLUSIONS: 1. Pool rules for the initial development of the EOP are appropriate at this time. 2. Development of the EOP will occur within the proposed expanded portion of the Duck Island Unit. 3. Two EOP wells have been drilled and completed as stipulated in Commission statewide regulations and three Conservation Orders for the Duck Island Unit, Endicott Oil Pool. 4. Well spacing units of 160 acres will allow the operator sufficient flexibility to locate wells to accommodate geologic, stratigraphic and structural factors throughout the project area. 5. Implementation of an enhanced recovery operation to support reservoir pressure will preserve reservoir energy and enhance ultimate recovery. Conservation Order No 4~ . Page 4 July 21, 2000 6. Eider production will be allocated using existing test facilities and methods applied to the Endicott and Sag Delta North pools. 7. Reservoir pressure will be measured using standard industry practices on a regular basis to manage production and monitor reservoir performance. 8. Exception from the gas-oil-ratio limitations of 20 AAC 25.240 is appropriate provided a pressure maintenance project starts concurrent with regular production. 9. A minimum of two well tests per month will help ensure that accurate well test data are available for reservoir management and production allocation. NOW, THEREFORE, IT IS ORDERED THAT the following rules, in addition to statewide requirements under 20 AAC 25 (to the extent not superseded by these rules), apply to the affected area described below: Umiat Meridian T12N R16E Sections 27: All state lands Sections 28: NE '/a of SE '/a Rule 1 Field and Pool Name and Classification The field is the Endicott Field. Hydrocarbons underlying the affected area within the Sag River, Shublik and Ivishak Formations constitute a single oil and gas reservoir classified as an oil pool and called the Eider Oil Pool (EOP). Rule 2 Pool Definition The EOP is defined as the accumulation of hydrocarbons common to, and correlating with, the interval between the measured depths of 16,785 feet and 17,928 feet in the Duck Island Unit 2-56A/EI01 well. Rule 3 Spacing Units Spacing units within the pool will be 160 acres. The pool shall not be opened in any well closer than 500 feet to an external boundary of the affected area. Rule 4 Casing and Cementing Practices a) Structural casing is required. However, conductor casing is not required. b) Surface casing adequate to provide for proper anchorage, for preventing uncontrolled flow, and to protect the well from the effects of permafrost thaw-subsidence and/or freeze-back loading, shall be set at least 500 measured feet below the base of the permafrost, but not below 4,500 feet true vertical depth. c) Surface casing shall be cemented to surface. Surface casing cement may be washed out or displaced to a depth not exceeding the structural casing shoe to facilitate casing removal upon well abandonment. Conservation Order No 4~ July 21, 2000 Page 5 d) Alternate means for maintaining the integrity of the well from the effects of permafrost thaw-subsidence and freeze-back may be administratively approved by the Commission upon application and presentation of data which show the alternatives are appropriate, based upon accepted engineering principles. e) Formation leak-off tests are not required below structural casings. Rule 5 Diverter System A diverter system is not required on the structural casing. Rule 6 Completion Practices Wells completed for production or injection in the EOP may utilize casing strings or liners cemented through the productive intervals and perforated, slotted liners, screen wrapped liners or open hole methods, or a combination thereof. The commission may administratively approve alternate completion methods where appropriate. Rule 7 Automatic Shut-in Equipment a.) All wells must be equipped with afail-safe automatic surface safety valve capable of preventing an uncontrolled flow. b.) All wells capable of unassisted flow of hydrocarbons must be equipped with afail- safe surface-controlled subsurface safety valve (SSSV) system capable of preventing an uncontrolled flow. This valve must be in the tubing string and located above or below the permafrost. c.) Injection wells must be equipped with a double check valve arrangement. d.) Surface safety valves and surface-controlled subsurface safety valves must be tested at six-month intervals. e.) Low-pressure sensor (LPS) trip pressure must be at least 50% of the primary separator pressure or 25% of the flowing tubing pressure, whichever is greater. Rule 8 Common Production Facilities and Surface Commingling a) Production from the EOP may be commingled with production from the Endicott and Sag Delta North oil pools in surface facilities prior to custody transfer. b) The allocation factor for the EOP will be 1.00 for the first year of production to evaluate the allocation method, testing frequency and quality. c) Each producing Eider well must be tested a minimum of twice per month. d) The Commission may require more frequent or longer tests if the allocation quality deteriorates. e) The operator shall submit a monthly report and file(s) containing daily allocation data and daily test data for agency surveillance and evaluation. Conservation Order No 4~;~ ~ Page 6 July 21, 2000 f) The operator shall provide the Commission with a well test and allocation review report in conjunction with an annual reservoir surveillance report. Rule 9 Reservoir Pressure Monitoring a) Prior to regular production or injection, an initial pressure survey must be taken in each well. b} At least one bottom-hole pressure survey per four producing or injecting governmental sections shall be measured annually. No less than four reservoir pressures will be measured annually. Bottom-hole surveys in paragraph (a) may fulfill the minimum requirement. c) The reservoir pressure datum will be 9,700 feet subsea. d) Pressure surveys may consist of stabilized static pressure measurements at bottom- hole or extrapolated from surface, pressure fall-off, pressure buildup, multi-rate tests, drill stem tests, and open-hole formation tests. e) Data and results from pressure surveys must be reported quarterly on Form 10-412, Reservoir Pressure Report. All data necessary for analysis of each survey need not be submitted with the Form 10-412, but must be available to the Commission upon request. fl Results and data from special reservoir pressure monitoring tests or surveys shall also be submitted in accordance with paragraph (e) of this rule. Rule 10 Gas-Oil Ratio Exemption Wells producing from the EOP are exempt from the gas-oil-ratio limits of 20 AAC 25.240(b) so long as the provisions of 20 AAC 25.240(c) apply. Rule 11 Pressure Maintenance Proiect A pressure maintenance project must be initiated concurrent with regular production. Rule 12 Reservoir Surveillance Report An annual reservoir surveillance report for the prior calendar year will be required on or about April 1. The report shall include but is not limited to the following: a) Progress of enhanced recovery project implementation and reservoir management summary including engineering and geotechnical parameters. b) Voidage balance by month of produced fluids and injected fluids and cumulative status. c) Analysis of reservoir pressure surveys within the pool. d) Results, and where appropriate, analysis of production and injection log surveys, tracer surveys and observation well surveys. Conservation Order No 4=~ July 21, 2000 Page 7 e) Review of pool production allocation factors and issues over the prior year. ~ Future development plans. Rule 13 Production Anomalies In the event of oil production capacity proration at or from the Duck Island Unit facilities, all commingled reservoirs produced through the Duck Island Unit facilities will be prorated by an equivalent percentage of oil production, unless this will result in surface or subsurface equipment damage. Rule 14 Administrative Action Upon proper application or its own motion, the Commission may administratively waive the requirements of any rule stated above or administratively amend this order as long as the change does not promote waste or jeopardize correlative rights, and is based on sound engineering and geoscience principles. DONE at Anchorage, Alaska and dated July 21, 2000. Camille Oechsli Taylor, Comm sinner Alaska Oil and Gas Conservation Commission Daniel T. Sean Alaska Oil and AS 31.05.080 provides that within 20 days after receipt of written notice of the entry of an order, a person affected by it may file with the Commission an application for rehearing. A request for rehearing must be received by 4:30 PM on the 23r`' day following the date of the order, or next working day if a holiday or weekend, to be timely filed. The Commission shall grant or refuse the application in whole or in part within 10 days. The Commission can refuse an application by not acting on it within the 10-day period. An affected person has 30 days from the date the Commission refuses the application or mails (or otherwise distributes) an order upon rehearing both being the final order of the Commission, to appeal the decision to Superior Court. Where a request for rehearing is denied by nonaction of the Conunission, the 30 day period for appeal to Superior Court runs from the date on which the request is deemed denied (i.e., 10'}` day after the application for rehearing was filed). DRI / McGraw Hill Randall Nottingham 24 Hartwell Lexington, MA 02173 PIRA ENERGY GROUP LIBRARY 3 PARK AVENUE (34th & PARK) NEW YORK, NY 10016 OVERSEAS SHIPHOLDING GRP ECON DEPT 1114 AV OF THE AMERICAS NEW YORK, NY 10036 NY PUBLIC LIBRARY DIV E GRAND CENTRAL STATION P O BOX 2221 NEW YORK, NY 10163-2221 ALASKA OFC OF THE GOVERNOR JOHN KATZ STE 518 444 N CAPITOL NW WASHINGTON, DC 20001 ARENT FOX KINTNER PLOTKIN KAHN LIBRARY WASHINGTON SO BLDG 1050 CONNECTICUT AV NW WASHINGTON, DC 20036-5339 US MIN MGMT SERV CHIEF OCS STATS & INFO 381 ELDEN ST MS 4022. HERNDON, VA 20170-4817 LIBRARY OF CONGRESS STATE DOCUMENT SECTION EXCH & GIFT DIV 10 FIRST ST SE WASHINGTON, DC 20540 U S DEPT OF ENERGY PHYLLIS MARTIN MS EI823 1000 INDEPENDENCE SW WASHINGTON, DC 20585 TECHSYS CORP BRANDY KERNS PO BOX 8485 GATHERSBURG, MD 20898 ~~ ~~ c~ ~-ai - US GEOLOGICAL SURVEY LIBRARY ~. NATIONAL CTR MS 950 ~ RESTON, VA 22092 DPC DANIEL DONKEL 1420 NORTH ATLANTIC AVE, STE 204 DAYTON BEACH, FL 32118 SD DEPT OF .ENV & NATRL RESOURCES OIL & GAS PROGRAM 2050 W MAIN STE #1 RAPID CITY, SD 57702 AMOCO CORP 2002A LIBRARY/INFO CTR P O BOX 87703 CHICAGO, IL 60680-0703 ILLINOIS STATE GEOL SURV LIBRARY 469 NATURAL RESOURCES BLDG 615 E PEABODY DR CHAMPAIGN, IL 61820 LINDA HALL LIBRARY SERIALS DEPT 5109 CHERRY ST KANSAS CITY, MO 64110-2498 ALFRED JAMES III 107 N MARKET STE 1000 WICHITA, KS 67202-1811 MURPHY E8~P CO ROBERT F SAWYER P O BOX 61780 NEW ORLEANS, LA 70161 UNIV OF ARKANSAS SERIALS DEPT UNIV LIBRARIES FAYETTEVILLE, AR 72701 CROSS TIMBERS OPERATIONS SUSAN LILLY 210 PARK AVE STE 2350 OKLAHOMA CITY, OK 73102-5605 DWIGHTSfNERGYDATA INC JERLENE A BRIGHT DIRECTOR PO BOX 26304 _ OKLAHOMA CITY, OK 73126 IOGCC P O BOX 53127 OKLAHOMA CITY, OK 73152-3127 R E MCMILLEN CONSULT GEOL 202E 16TH ST OWASSO, OK 74055-4905 OIL & GAS JOURNAL LAURA BELL P O BOX 1260 TULSA, OK 74101 GAFFNEY, CLINE & ASSOCIATES LIBRARY 16775 ADDISON RD STE 400 ADDISON, TX 75001 GAFFNEY, CLINE & ASSOC., INC. LIBRARY 16775 ADDISON RD, STE 400 ADDISON, TX 75001 BAPI RAJU 335 PINYON LN COPPELL, TX 75019 MARK S MALINOWSKY 15973 VALLEY VW FORNEY, TX 75126-5852 US DEPT OF ENERGY ENERGY INFORMATION ADMINISTRATION MIR YOUSUFUDDIN 1999 BRYAN STREET STE 1110 DALLAS, TX 75201-6801 DEGOLYER & MACNAUGHTON MIDCONTINENT DIVISION ONE ENERGY SO, STE 400 4925 GREENVILLE AVE DALLAS, TX 75206-4083 JERRY SCHMIDT 4010 SILVERWOOD DR TYLER, TX 75701-9339 STANDARD AMERICAN OIL CO AL GRIFFITH P O BOX 370 GRANBURY, TX 76048 CROSS TIMBERS OIL COMPANY MARY JONES 810 HOUSTON ST STE 2000 FORT WORTH, TX 76102-6298 PRITCHARD & ABBOTT BOYCE B BOLTON PE RPA 4521 S. HULEN STE 100 FT WORTH, TX 76109-4948 SHELL WESTERN E&P INC G.S. NADY P O BOX 576 HOUSTON, TX 77001-0574 ENERGY GRAPHICS MARTY LINGNER 1600 SMITH ST, STE 4900 HOUSTON, TX 77002 H J GRUY ATTN: ROBERT RASOR 1200 SMITH STREET STE 3040 HOUSTON, TX 77002 PURVIN & GERTZ INC LIBRARY 2150 TEXAS COMMERCE TWR 600 TRAVIS ST HOUSTON, TX 77002-2979 RAY TYSON 1617 FANNIN ST APT 2015 HOUSTON, TX 77002-7639 CHEVRON PAUL WALKER 1301 MCKINNEY RM 1750 HOUSTON, TX 77010 BONNER & MOORE LIBRARY H2O 2727 ALLEN PKWY STE 1200 HOUSTON, TX 77019 OIL & GAS JOURNAL BOB WILLIAMS 1700 W LOOP SOUTH STE 1000 HOUSTON, TX 77027 PETRAL CONSULTING CO DANIEL L LIPPE 9800 RICHMOND STE 505 HOUSTON, TX 77042 MARK ALEXANDER 7502 ALCOMITA HOUSTON, TX 77083 MARATHON OIL CO GEORGE ROTHSCHILD JR RM 2537 P O BOX 4813 HOUSTON, TX 77210 UNOCAL REVENUE ACCOUNTING P O BOX 4531 HOUSTON, TX 77210-4531 EXXON EXPLORATION CO. T E ALFORD P O BOX 4778 HOUSTON, TX 77210-4778 EXXON EXPLOR CO LAND/REGULATORY AFFAIRS RM 301 P O BOX 4778 HOUSTON, TX 77210-4778 CHEVRON USA INC. ALASKA DIVISION ATTN: CORRY WOOLINGTON P O BOX 1635 HOUSTON, TX 77251 PETR INFO DAVID PHILLIPS P O BOX 1702 HOUSTON, TX 77251-1702 PHILLIPS PETR CO ~ . ALASKA LAND MGR P O BOX 1967 _ HOUSTON, TX 77251-1967 PHILLIPS PETROLEUM COMPANY W ALLEN HUCKABAY PO BOX 1967 HOUSTON, TX 77251-1967 WORLD OIL MARK TEEL ENGR ED P O BOX 2608 HOUSTON, TX 77252 EXXONMOBIL PRODUCTION COMPANY J W KIKER ROOM 2086 P O BOX 2180 HOUSTON, TX 77252-2180 EXXONMOBIL PRODUCTION COMPANY GARY M ROBERTS RM 3039 P O BOX 2180 HOUSTON, TX 77252-2180 PENNZOIL E&P WILL D MCCROCKLIN P O BOX 2967 HOUSTON, TX 77252-2967 CHEVRON CHEM CO LIBRARY & INFO CTR P O BOX 2100 HOUSTON, TX 77252-9987 MARATHON Ms. Norma L. Calvert P O BOX 3128, Ste 3915 HOUSTON, TX 77253-3128 ACE PETROLEUM COMPANY ANDREW C CLIFFORD PO BOX 79593 HOUSTON, TX 77279-9593 PHILLIPS PETR CO JOE VOELKER 6330 W LP S RM 492 BELLAIRE, TX 77401 PHILLIPS PETR CO ERICH R. RAMP 6330 W LOOP SOUTH - BELLAIRE, TX 77401 PHILLIPS PETR CO PARTNERSHIP OPRNS JIM JOHNSON 6330 W LOOP S RM 1132 BELLAIRE, TX 77401 TEXACO INC R Ewing Clemons P O BOX 430 BELLAIRE, TX 77402-0430 WATTY STRICKLAND 2803 SANCTUARY CV KATY, TX 77450-8510 TESORO PETR CORP LOTS DOWNS 300 CONCORD PLAZA DRIVE SAN ANTONIO, TX 78216-6999 INTL OIL SCOUTS MASON MAP SERV INC P O BOX 338 AUSTIN, TX 78767 ROBERT G GRAVELY 7681 S KIT CARSON DR LITTLETON, CO 80122 DIANE SUCHOMEL 10507D W MAPLEWOOD DR LITTLETON, CO 80127 GEORGE G NAUGHT JR P O BOX 13557 DENVER, CO 80201 AMOCO PROD CO LIBRARY RM 1770 JILL MALLY 1670 BROADWAY DENVER, CO 80202 C & R INDUSTRIES, INC. KURT SALTSGAVER 1801 BROADWAY STE 1205 - DENVER, CO 80202 US GEOLOGICAL SURVEY LIBRARY BOX 25046 MS 914 DENVER, CO 80225-0046 JERRY HODGDEN GEOL 408 18TH ST GOLDEN, CO 80401 NRG ASSOC RICHARD NEHRING P O BOX 1655 COLORADO SPRINGS, CO 80901-1655 RUBICON PETROLEUM, LLC BRUCEICLARDY SIX PINE ROAD COLORADO SPRINGS, CO 80906 JOHN A LEVORSEN 200 N 3RD ST #1202 BOISE, ID 83702 RUI ANALYTICAL JERRY BERGOSH P O BOX 58861 SALT LAKE CITY,. UT 84158-0861 TAHOMA RESOURCES GARY PLAYER 1671 WEST 546 S CEDER CITY, UT 84720 US GEOLOGICAL SURVEY LIBRARY 2255 N GEMINI DR FLAGSTAFF, AZ 86001-1698 MUNGER OIL INFOR SERV INC P O BOX 45738 LOS ANGELES, CA 90045-0738 LA PUBLIC LIBRARY • SERIALS DIV 630 W 5TH ST _ LOS ANGELES, CA 90071 BABSON & SHEPPARD JOHN F BERGOUIST P O BOX 8279 VIKING STN LONG BEACH, CA 90808-0279 ANTONIO MADRID. P O BOX 94625 PASADENA, CA 91109 ORO NEGRO, INC. 9321 MELVIN AVE NORTHRIDGE, CA 91324-2410 76 PRODUCTS COMPANY CHARLES BURRUSS RM 11-767 555 ANTON COSTA MESA, CA 92626 TEXACO INC Portfolio Team Manager R W HILL P O BOX 5197x Bakersfield, CA 93388 US GEOLOGICAL SURVEY KEN BIRD 345 MIDDLEFIELD RD MS 999 MENLO PARK, CA 94025 SHIELDS LIBRARY GOVT DOCS DEPT UNIV OF CALIF DAVIS, CA 95616 H L WANGENHEIM 5430 SAWMILL RD SP 11 PARADISE, CA 95969-5969 ECONOMIC INSIGHT INC SAM VAN VACTOR P O BOX 683 PORTLAND, OR 97207 US EPA REGION 10 LAURIE MANN OW-130 1200 SIXTH AVE _ SEATTLE, WA 98101 MARPLES BUSINESS NEWSLETTER MICHAEL J PARKS 117 W MERCER ST STE 200 SEATTLE, WA 98119-3960 DEPT OF REVENUE OIL & GAS AUDIT DENISE HAWES 550 W 7TH AV STE 570 ANCHORAGE, AK 99501 FAIRWEATHER E&P SERV INC JESSE MOHRBACHER 715 I ST #4 ANCHORAGE, AK 99501 GUESS & RUDD GEORGE LYLE 510 L ST, STE 700 ANCHORAGE, AK 99501 STATE PIPELINE OFFICE LIBRARY KATE MUNSON 411 W 4TH AVE, STE 2 ANCHORAGE, AK 99501 TRUSTEES FOR ALASKA 725 CHRISTENSEN DR STE 4 ANCHORAGE, AK 99501 DUSTY RHODES 229 WHITNEY RD ANCHORAGE, AK 99501 DEPT OF REVENUE BEVERLY MAROUART 550 W 7TH AV STE 570 ANCHORAGE, AK 99501 FORCENERGY INC. JIM ARLINGTON 310 K STREET STE 700 ANCHORAGE, AK 99501 YUKON PACIFIC CORP JOHN HORN VICE CHM 1049 W 5TH AV . ANCHORAGE, AK 99501-1930 PRESTON GATES ELLIS LLP LIBRARY 420 L ST STE 400 ANCHORAGE, AK 99501-1937 ALASKA DEPT OF LAW ROBERT E MINTZ ,ASST ATTY GEN 1031 W 4TH AV STE 200 ANCHORAGE, AK 99501-1994 GAFO GREENPEACE PAMELA MILLER 125 CHRISTENSEN DR. #2 ANCHORAGE, AK 99501-2101 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS TIM RYHERD 550 W 7th AVE STE 800 ANCHORAGE, AK 99501-3510 DEPT OF REVENUE OIL & GAS AUDIT FRANK PARR 550 W 7TH AVE STE 570 ANCHORAGE, AK 99501-3540 BRISTOL ENVIR SERVICES JIM MUNTER 2000 W. INTL AIRPORT RD #C-1 ANCHORAGE, AK 99502-1116 HDR ALASKA INC MARK DALTON 2525 C ST STE 305 ANCHORAGE, AK 99503 BAKER OIL TOOLS ALASKA AREA MGR 4710 BUS PK BLVD STE 36 ANCHORAGE, AK 99503 N-I TUBULARS INC 3301 C Street Ste 209 ANCHORAGE, AK 99503 ANADARKO . MARK HANLEY 3201 C STREET STE 603 ANCHORAGE, AK 99503 ALASKA OIL & GAS ASSOC JUDY BRADY 121 W FIREWEED LN STE 207 ANCHORAGE, AK 99503-2035 ANADRILL-SCHLUMBERGER 3940 ARCTIC BLVD #300 ANCHORAGE, AK 99503-5711 AK JOURNAL OF COMMERCE OIL & INDUSTRY NEWS ROSE RAGSDALE 4220 B Street Ste #210 ANCHORAGE, AK 99503-5911 DEPT OF NATURAL RESOURCES PUBLIC INFORMATION CTR 3601 C STREET STE 200 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS JIM STOUFFER 3601 C STREET STE 1380 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS JAMES B HAYNES NATURAL RESRCE MGR 3601 C ST STE 1380 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS JULIE HOULE 3601 C ST STE 1380 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OIL & GAS WILLIAM VAN DYKE 3601 C ST STE 1380 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS BRUCE WEBB 3601 C ST STE 1380 ANCHORAGE, AK 99503-5948 FINK ENVIRONMENTAL CONSULTING, IN~ . THOMAS FINK, PHD 6359 COLLATE DR. ANCHORAGE, AK 99504-3305 ARLEN EHM GEOL CONSLTNT 2420 FOXHALL DR ANCHORAGE, AK 99504-3342 JAMES E EASON 8611 LEEPER CIRCLE ANCHORAGE, AK 99504-4209 US BUREAU OF LAND MNGMNT ANCHORAGE DIST OFC DICK POLAND 6881 ABBOTT LOOP RD ANCHORAGE, AK 99507 RUSSELL DOUGLASS 6750 TESHLAR DR ANCHORAGE, AK 99507 STU HIRSH 9630 BASHER DR. ANCHORAGE, AK 99507 AMERICA/CANADIAN STRATIGRPH CO RON BROCKWAY 4800 KUPREANOF ANCHORAGE, AK 99507 US BUREAU OF LAND MNGMNT ANCHORAGE DIST OFC PETER J DITTON 6881 ABBOTT LOOP ROAD ANCHORAGE, AK 99507 US BLM AK DIST OFC RESOURCE EVAL GRP ART BONET 6881 ABBOTT LOOP RD ANCHORAGE, AK 99507-2899 TRADING BAY ENERGY CORP PAUL CRAIG 5432 NORTHERN LIGHTS BLVD ANCHORAGE, AK 99508 THOMAS R MARSHALL JR • 1569 BIRCHWOOD ST ANCHORAGE, AK 99508 UNIVERSITY OF ALASKA ANCHORAGE INST OF SOCIAL & ECON RESEARCH TERESA HULL 3211 PROVIDENCE DR ANCHORAGE, AK 99508 US MIN MGMT SERV AK OCS REGIONAL DIR 949E 36TH AV RM 110 ANCHORAGE, AK 99508-4302 US MIN MGMT SERV RESOURCE STUDIES AK OCS REGN KIRK W SHERWOOD 949 E 36TH AV RM 603 ANCHORAGE, AK 99508-4302 US MIN MGMT SERV RICHARD PRENTKI 949E 36TH AV ANCHORAGE, AK 99508-4302 GORDONJ.SEVERSON 3201 WESTMAR CIR ANCHORAGE, AK 99508-4336 US MIN MGMT SERV LIBRARY 949E 36TH AV RM 603 ANCHORAGE, AK 99508-4363 US MIN MGMT SERV RESOURCE EVAL JIM SCHERR 949E 36TH AV RM 603 ANCHORAGE, AK 99508-4363 US MIN MGMT SERV FRANK MILLER 949E 36TH AV STE 603 ANCHORAGE, AK 99508-4363 REGIONAL SUPRVISOR, FIELD OPERATNS MINERALS MANAGEMENT SERVICE ALASKA OCS REGION 949E 36TH AV STE 308 ANCHORAGE, AK 99508-4363 U JOHN MILLER 3445 FORDHAM DR ANCHORAGE, AK 99508-4555 USGS -ALASKA SECTION LIBRARY 4200 UNIVERSITY DR ANCHORAGE, AK 99508-4667 CIRI LAND DEPT P O BOX 93330 ANCHORAGE, AK 99509-3330 ANCHORAGE TIMES BERTTARRANT P O BOX 100040 ANCHORAGE, AK 99510-0040 ARCO ALASKA INC JOANN GRUBER ATO 712 P O BOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC LEGAL DEPT MARK P WORCESTER P O BOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC STEVE BENZLER ATO 1404 P O BOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC LIBRARY P O BOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC MARK MAJOR ATO 1968 P O BOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC LAND DEPT JAMES WINEGARNER P O BOX 10036 ANCHORAGE, AK 99510-0360 • ARCO ALASKA INC ~ • SAM DENNIS ATO 1388 P O BOX 100360 . ANCHORAGE, AK 99510-0360 ARCO ALASKA INC SHELIA ANDREWS ATO 1130 PO BOX 100360 ANCHORAGE, AK 99510-0360 PETROLEUM INFO CORP KRISTEN NELSON P O BOX 102278 ANCHORAGE, AK 99510-2278 ARCO ALASKA INC KUP CENTRAL WELLS ST TSTNG WELL ENG TECH NSK 69 P O BOX 196105 ANCHORAGE, AK 99510-6105 ALYESKA PIPELINE SERV CO CHUCK O'DONNELL 1835 S BRAGAW - MS 5306. ANCHORAGE, AK 99512 ALYESKA PIPELINE SERV CO PERRY A MARKLEY 1835 SBRAGAW - MS 575 ANCHORAGE, AK 99512 ALYESKA PIPELINE SERV CO LEGAL DEPT 1835 S BRAGAW ANCHORAGE, AK 99512-0099 US BUREAU OF LAND MGMT OIL & GAS OPRNS (984) J A DYGAS 222 W 7TH AV #13 ANCHORAGE, AK 99513-7599 ANCHORAGE DAILY NEWS EDITORIAL PG EDTR MICHAEL CAREY P O BOX 149001 ANCHORAGE, AK 99514 DAVID W. JOHNSTON 320 MARINER DR. ANCHORAGE, AK 99515 JWL ENGINEERING • JEFF LIPSCOMB . 9921 MAIN TREE DR. _ ANCHORAGE, AK 99516-6510 NORTHERN CONSULTING GROUP ROBERT BRITCH, P.E. 2454 TELEQUANA DR. ANCHORAGE, AK 99517 GERALD GANOPOLE CONSULT GEOL 2536 ARLINGTON ANCHORAGE, AK 99517-1303 ASRC CONRAD BAGNE 301 ARCTIC SLOPE AV STE 300 ANCHORAGE, AK 99518 DAVID CUSATO 600 W 76TH AV #508 ANCHORAGE, AK 99518 ARMAND SPIELMAN 651 HILANDER CIRCLE ANCHORAGE, AK 99518 HALLIBURTON ENERGY SERV MARK WEDMAN 6900 ARCTIC BLVD ANCHORAGE, AK 99518-2146 OPSTAD & ASSOC ERIK A OPSTAD PROF GEOL P O BOX 190754 ANCHORAGE, AK 99519 JACK O HAKKILA P O BOX 190083 ANCHORAGE, AK 99519-0083 ENSTAR NATURAL GAS CO BARRETT HATCHES P O BOX 190288 ANCHORAGE, AK 99519-0288 MARATHON OIL CO BRAD PENN P O BOX 196168 ANCHORAGE, AK 99519-6168 MARATHON OIL CO OPERATIONS SUPT P O BOX 196168 ANCHORAGE, AK 99519-6168 UNOCAL P O BOX 196247 ANCHORAGE, AK 99519-6247 UNOCAL KEVIN TABLER P O BOX 196247 ANCHORAGE, AK 99519-6247 EXXONMOBIL PRODUCTION COMPANY MARK P EVANS PO BOX 196601 ANCHORAGE, AK 99519-6601 BP EXPLORATION (ALASKA), INC. MARK BERLINGER MB 8-1 PO BOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC SUE MILLER P O BOX 196612 M/S LR2-3 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC PETE ZSELECZKY LAND MGR P O BOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC INFO RESOURCE CTR MB 3-2 P O BOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC BOB WILKS MB 5-3 P O BOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC MR. DAVIS, ESQ P O BOX 196612 MB 13-5 ANCHORAGE, AK 99519-6612 AMSI/VALLEE CO INC WILLIAM O VALLEE PRES PO BOX 243086 ANCHORAGE, AK 99524-3086 DIANA FLECK 18112 MEADOW CRK DR EAGLE RIVER, AK 99577 L G POST O&G LAND MGMT CONSULT 10510 Constitution Circle EAGLE RIVER, AK 99577 D A PLATT & ASSOC 9852 LITTLE DIOMEDE CIR EAGLE RIVER, AK 99577 PINNACLE STEVE TYLER 20231 REVERE CIRCLE EAGLE RIVER, AK 99577 DEPT OF NATURAL RESOURCES DGGS JOHN REEDER P O BOX 772805 EAGLE RIVER, AK 99577-2805 COOK INLET KEEPER BOB SHAVELSON PO BOX 3269 HOMER, AK 99603 COOK INLET VIGIL JAMES RODERICK P O BOX 916 HOMER, AK 99603 PHILLIPS PETR ALASKA OPERATIONS MANAGER J W KONST P O DRAWER 66 KENAI, AK 99611 RON DOLCHOK ~ • P O BOX 83 KENAI, AK 99611 DOCUMENT SERVICE CO JOHN PARKER P O BOX 1468 KENAI, AK 99611-1468 KENAI PENINSULA BOROUGH ECONOMIC DEVEL DISTR STAN STEADMAN P O BOX 3029 KENAI, AK 99611-3029 NANCY LORD PO BOX 558 HOMER, AK 99623 PENNY VADLA P O BOX 467 NINILCHIK, AK 99639 BELOWICH COAL CONSULTING MICHAEL A BELOWICH HC31 BOX 5157 WASILLA, AK 99654 PACE SHEILA DICKSON P O BOX 2018 SOLDOTNA, AK 99669 JAMES GIBBS P O BOX 1597 SOLDOTNA, AK 99669 KENAI NATL WILDLIFE REFUGE REFUGE MGR P O BOX 2139 SOLDOTNA, AK 99669-2139 ALYESKA PIPELINE SERVICE CO VALDEZ CORP AFFAIRS SANDY MCCLINTOCK P O BOX 300 MS/701 VALDEZ, AK 99686 VALDEZ PIONEER • P O BOX 367 • VALDEZ, AK 99686 VALDEZ VANGUARD EDITOR P O BOX 98 VALDEZ, AK 99686-0098 NICK STEPOVICH 543 2ND AVE FAIRBANKS, AK 99701 UNIV OF ALASKA FAIRBANKS PETR DEVEL LAB DR V A KAMATH 427 DUCKERING FAIRBANKS, AK 99701 RICK WAGNER P O BOX 60868 FAIRBANKS, AK 99706 JACK HAKKILA P O BOX 61604 FAIRBANKS, AK 99706-1604 C BURGLIN P O BOX 131 FAIRBANKS, AK 99707 FAIRBANKS DAILY NEWS-MINER KATE RIPLEY P O BOX 70710 FAIRBANKS, AK 99707 FRED PRATT P O BOX 72981 FAIRBANKS, AK 99707-2981 DEPT OF NATURAL RESOURCES DIV OF LAND REG MGR NORTHERN REGION 3700 AIRPORT WAY FAIRBANKS, AK 99709-4699 ' K&K RECYCL INC . • P O BOX 58055 FAIRBANKS, AK 99711 ASRC BILL THOMAS POBOX129 BARROW, AK 99723 RICHARD FINEBERG P O BOX 416 ESTER, AK 99725 UNIV OF ALASKA FBX PETR DEVEL LAB SHIRISH PATIL 437 DICKERING FAIRBANKS, AK 99775 UNIVERSITY OF ALASKA FBKS PETR DEVEL LAB DR AKANNI LAWAL P O BOX 755880 FAIRBANKS, AK 99775-5880 SENATOR LOREN LEMAN STATE CAPITOL RM 113 JUNEAU, AK 99801-1182 DEPT OF ENVIRON CONSERV SPAR CHRIS PACE 410 WILLOUGHBY AV STE 105 JUNEAU, AK 99801-1795 • • 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. 0 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 Adiop Daniel T. Se. •• o , r., Commissioner, Chair • . • it . • : , s Conservation Commission r 1 � . . L im an, Co der fAcitil'c'''''%%.- a Oil , • a Conserva ion Commission 41r. ;... ; ? a� .l rjh , ` , f '' %A O. Cat y P. oerst r, Commissioner Alaska 11 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 (pautdecker @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 SawNUxGV F Aia la/ otwt.cii ga's- u e rvatfcnvCo-ww icrw (907)793 -1223 (907)276 -7542 (fa/xi) 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 R Associates NRG ss ate s Hodgden Oil Company 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 95 Tools K &K Recycling Inc. Land Department E. Oil h 7 P. Box 58055 P.O. Box 93330 795 E. 94 Ct. Anchorage, AK 99515 -4295 Fairbanks, AK 99711 Anchorage, AK 99503 North Slope Borough Jill Schneider Gordon Severson P.O. Box 69 US Geological Survey 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 Y 1/4°.'\ \�` 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 systems" ) 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) require "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve 25.265(x); 25.2659(b); 25.265(d)(1); Check valve requirements for injectors are not covered by Oooguruk Oooguruk - Nuiqsut 597 6 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 th irements of a sin es the requgle check valve." fail -safe auto SSV and SCSSV; injection wells (except disposal) require wells (excluding disposal injectors) must be equipped with(i) a double check valve Oooguruk Oooguruk - Kuparuk 596 6 no (i) double check valve, or (ii) single check valve and SSV; injection 25.265(a); 25.265(b); 25.265(d)(1); arrangement or (ii) a single check valve and a SSV. A subsurface - controlled injection valve or Check valve requirements for injectors are not covered by 25.265(h)(5) SCSSV satisfies the requirements uirements of a si le check valve." readopted regulation valve satisfies single check valve requirement; test every 6 months q n9 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 25.265(a); 25.265(b); 25.265( "In wells (excludin dis injectors) must be equipped with(i) a double check valve Check valve requirements for injectors are not covered by Colville River Unit Fiord 569 5 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 25.265(h)(5) 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 25.265(a); 25.265(b); 25.265(d)(2)(1-1); "In wells (excludin dis injectors) must be equipped with(i) a double check valve Check valve requirements for injectors are not covered by Colville River Unit Nanuq - Kuparuk 563 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 25.265(h)(5) 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 wells (excludin dis injectors) must be equipped with(i) a double check valve 25.265(a); 25.265(b); 25.265( 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 t 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 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 Polaris 484A 3 yes 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); N/A Readopted 25.265(d) dictates which wells require SSSV; Milne Point Unit Schrader Bluff 477 5 yes injection well require SSSV or injection valve below permafrost; test 25.265(h)(5) replaces SSSV nipple requirement for all wells 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); a ) ; 25.265 ( b ) ; 25.265 ( d )( 1 ) "The minimum setting depth fora 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(d)(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 (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; Prudhoe Bay Unit Midnight Sun 452 6 yes 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 �- "The setting depth of a required subsurface safety valve must be located in the tubing either Existing pool rule established alternate SSSV setting depth; 25.265(a); 25.265(b); 25.265(d)(1); Duck Island Unit Eider 449 7 no permafrost; injection wells require double check valve; LPS trip 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 25 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 and SSV SCSSV satisfies the requirements of a single check valve." readopted regulation fail -safe auto SSV; gas /MI injectors require SSV and single check 25.268(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 Tabasco 435A 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 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 deactivated; maintain list of wells w /deactivated SVS; test as 25.265(x); 25.265(b); 25.265(h)(5); deactivated SVS was replaced with requirement to maintain a Kuparuk River Unit; to on well when not manned; administrative approval CO 25 m Kuparuk 432D 5 yes prescribed by Commission; CO 432D.009 modifies Rule 5(b) - LPP N/A 9 pp Milne Point Unit may be defeated on W. Sak injectors w /surface pressure <500psi w/ 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] 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 Regts from Order Revised Rule - "Well safety valve systems" (2) Comment fail -safe auto SSV; gas /MI injectors require SSV and single check "I wells (excluding disposal injectors) must b equipped with(i) a requirements injectors y 25.265(a); 25.265(b); 25.265(d); h() double check valve Check valve r uirements for i 'ectors are not covered b Kuparuk River Unit Tarn 430A 6 no valve and SSSV landing nipple; water injection wells require (i) double 25.265(h)(5) 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 SCSSV satisfies the requirements of a single check valve" SSSV requirement for MI injectors Milne Point - double check valve; test Sag fail -safe auto SSV; injection ection wells require Check valve requirements for injectors are not covered by 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" readopted regulation fail -safe auto SSV; gas /MI injectors require SSV and single check valve and SSSV landing nipple; water injection wells require (i) double "Injection wells (excluding disposal injectors) must be equipped with(i) a double check valve Check valve requirements for injectors are not covered by 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 readopted regulation; readopted 25.265(d)(5) does not include Kuparuk River Unit Kuparuk - West Sak 406E 6 no CO 4066.001 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 SSSV requirement 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." 406B.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 re laced with r prescribed by Commission 25.265(m) p equirement to maintain a 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 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 or 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25265(d) dictates which wells require SSSV; deactivated SVS; sign on wellhead 25.265(h)(5); 25.265(m) replaces SSSV nipple requirement for all welts Prudhoe Bay Unit Pt. McIntyre 317B 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 Prudhoe Bay Unit West Beach 311 B 6 yes fail -sate auto SSV; sign on well if SVS deactivated; maintain list of wells 25.265(a); 25.265(b); 25.265(d); N/A Readopted 25.265(d) dictates which wells require SSSV; w /deactivated SVS; test as prescribed by Commission 25.265(h)(5); 25.265(m) replaces SSSV nipple requirement for all wells West Fork West Fork (Sterling West 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 wells 25.265(a); 25.265(b); 25.265(h)(5); Requirement to maintain a wellhead sign and list of wells with w /deactivated SVS; test as prescribed by Commission 25.265(m) N/A deactivated SVS was replaced with requirement to maintain a tag on well when not manned Prudhoe Bay Unit Prudhoe Kuparuk 98A 5 yes suitable automatic safety valve installed below base of permafrost t Readopted () require prevent uncontrolled flow 25.265(d) N/A pted 25.265 d dictates which wells re uire SSSV; 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 ALASSA OIL A1~TD GAS COI~TSERQA7'IO1Q COrII-'IISSIOI~T • SARAH PALIN, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501.3539 PHONE (907) 279-1433 FAX (907) 276-7542 ADMINISTRATIVE APPROVAL NO. CO 202.043 (Endicott Oil Pool, Endicott Field) ADMINISTRATIVE APPROVAL NO. CO 275.001 (Alapah and Ivishak Oil Pools, Endicott Field) ADMINISTRATIVE APPROVAL NO. CO 449.001 (Eider Oil Pool, Endicott Field) Mr. R. L. Skillern Senior Landman BP Exploration (Alaska) Inc. P.O. Box 196612 Anchorage, AK 99519-6612 Re: Surface Commingling of Production from Proposed Endicott Field Well 2-30B/ME-O1 with Production from Defined Endicott Field Oil Pools Dear Mr. Skillern: The Alaska Oil and Gas Conservation Commission (Commission) received your letter, dated November 20, 2008, requesting approval to commingle production on the surface from the proposed Endicott Field Well 2-30B/ME-O1 with production from the Eider, Ivishak, Alapah, and Endicott Oil Pools (i. e., "defined Endicott Field oil pools"). The Commission GRANTS your request subject to certain conditions as listed below. Proposed Well 2-30B/ME-O1 is on lease ADL 34633 (Tract 13), which is within the Endicott Field, but is not part of any defined Endicott Field oil pool. Based on seismic information, proposed Well 2-30B/ME- O1 production will not drain those oil pools. BP Exploration (Alaska) Inc. (BPXA) has requested that Well 2-30B/ME-O1 be allocated on a daily basis using the same methodology employed for wells in the Eider Oil Pool. Well 2-30B/ME-O1 allocated production will be based upon a minimum of two well tests per month. BPXA proposes that the allocation factor be fixed at i.0 (i.e., it will not be adjusted for discrepancies between measurements of total Endicott Field oil production derived from well tests and from the Lease Automated Custody Transfer (LACY) meter). The Commission grants BPXA's request to commingle production on the surface from the proposed Endicott Field Well 2-30B/ME-O1 with production from the defined Endicott Field oil pools prior to custody transfer. This approval is conditioned upon the following: 1. Unless the Commission otherwise requires, production from Well 2-30B/ME-O1 will be determined through well tests conducted at least twice per month at a stabilized flow rate lasting more than four hours. 2. Unless the Commission otherwise requires, production from We112-30B/ME-O1 will be allocated on a daily basis using the same methodology employed for wells in the Eider Oil Pool, with a meter allocation factor fixed at 1.0. 3. The operator shall provide the Commission with a written well test and allocation report at the end of • • Mr. L. R. Skillern January 22, 2009 Page 2 of 2 each calendar year. 4. Within one year after the start of production from Well 2-30B/ME-O1, the operator shall (1) provide the Commission a written report with al! reasonably available evidence regarding whether the well is in communication with any defined Endicott Field oil pools, and (2) apply to the Commission to include the well within an already defined Endicott Field pool or within a new Endicott Field pool. 5. Unless notice and a public hearing are required, upon proper application or its own motion, the Commission may administratively amend this order as long as the change does not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in an increased risk of fluid movement into freshwater. ENTERED at Anchorage, Alaska, and dated January 2 , 2009. ~ i ~., •~ ev° ~ ~'" ~`~,~ Daniel T. Seamount, Jr., Chair 12:a;='.fie.,` ~ ~~' i ,~ .r `...~ ~ 3~ ,: pad Cathy P. oerster, Commissioner 1 ? := 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 reconsid- eration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for re- consideration 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. Fail- ure 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 af- ter 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 oth- erwise distributes, the order or decision on reconsideration. As provided in AS 3I.05.080(b), "[tlhe questions reviewed on ap- peal 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. i ~ Mary Jones David McCaleb Cindi Walker XTO Energy, Inc. IHS Energy Group Tesoro Refining and Marketing Co. Cartography GEPS Supply & Distribution 810 Houston Street, Ste 2000 5333 Westheimer, Ste 100 300 Concord Plaza Drive Ft. Worth, TX 76102-6298 Houston, TX 77056 San Antonio, TX 78216 George Vaught, Jr. Jerry Hodgden Richard Neahring PO Box 13557 Hodgden Oil Company NRG Associates Denver, CO 80201-3557 408 18th Street President Golden, CO 80401-2433 PO Box 1655 Colorado Springs, CO 80901 Mark Wedman Schlumberger Ciri Halliburton Drilling and Measurements Land Department 6900 Arctic Blvd. 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99502 Anchorage, AK 99503 Anchorage, AK 99503 Baker Oil Tools Ivan Gillian Jill Schneider 4730 Business Park Blvd., #44 9649 Musket BeII Cr.#5 US Geological Survey Anchorage, AK 99503 Anchorage, AK 99507 4200 University Dr. Anchorage, AK 99508 Gordon Severson Jack Hakkila Dan~vin Waldsmith 3201 Westmar Cr. PO Box 190083 PO Box 39309 Anchorage, AK 99508-4336 Anchorage, AK 99519 Ninilchick, AK 99639 James Gibbs Kenai National Wildlife Refuge Penny Vadla PO Box 1597 Refuge Manager 399 West Riverview Avenue Soldotna, AK 99669 PO Box 2139 Soldotna, AK 99669-7714 Soldotna, AK 99669-2139 Richard Wagner Cliff Burglin Bernie Karl PO Box 60868 PO Box 70131 K&K Recycling Inc. Fairbanks, AK 99706 Fairbanks, AK 99707 PO Box 58055 Fairbanks, AK 99711 North Slope Borough PO Box 69 Barrow, AK 99723 ~U,r ~ i~~~ ~u~ Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Friday, January 23, 2009 11:30 AM Subject: co202-043, co275-001 and co449-001 Endicott Attachments: co202-043, co275-001, co449-001.pdf BCC:Aleutians East Borough; Anna Raff; Barbara F Fullmer; bbritch; Bill Walker; Brad McKim; Brandon Gagnon; Brian Gillespie; Brit Lively; Bruce Webb; buonoje; Cammy Taylor; Cande.Brandow; carol Smyth; Cary Carrigan; caunderwood@marathonoil.com; Charles O'Donnell; Chris Gay; Cliff Posey; Dan Bross; dapa; Daryl J. Kleppin; David Brown; David Gorney; David Hall; David House; David L Boelens; David Steingreaber; ddonkel; Deborah Jones; doug_schultze; Eric Lidji ;Evan Harness; eyancy; foms2@mtaonline.net; Francis S. Sommer; Fred Steece; Garland Robinson; Gary Laughlin; Gary Rogers; Gary Schultz; ghammons; Gordon Pospisil; Gregg Nady; gspfoff; Hank Alford; Harry Engel; Havelock, Brian E (DNR); jah; James Scherr; Janet D. Platt; jejones; Jerry McCutcheon; Jim Arlington; Jim White; Jim Winegarner; Joe Nicks; John Garing; John S. Haworth; John Spain; John Tower; John W Katz; johnny.aiken@north-slope.org; Jon Goltz; Julie Houle; Kari Moriarty; Kaynell Zeman; Keith Wiles; knelson@petroleumnews.com; Krissell Crandall; Kristin Dirks; Laura Silliphant; Lynnda Kahn; mail=akpratts@acsalaska.net; mail=fours@mtaonline.net; Marilyn Crockett; Mark Dalton; Mark Hanley; Mark Kovac; Mark P. Worcester; Marquerite kremer; Matt Rader; Melanie Brown; Mike Bill; Mike Jacobs; Mike Mason; Mikel Schultz; Mindy Lewis; MJ Loveland; mjnelson; mkm7200; Nick W. Glover; NSK Problem Well Supv; NSU, ADW Well Integrity Engineer; Patty Alfaro; Paul Decker; Paul Winslow; Pierce, Sandra M (DNR); Randall Kanady; Randy L. Skillern; rcrotty; Rice, Cody J (DNR); rmclean; Rob McWhorter ; rob.g.dragnich@exxonmobil.com; Robert Campbell; Robert Fowler; Robert Province; Roger Belman; Rudy Brueggeman; Scott Cranswick; Shannon Donnelly; Sharmaine Copeland; Sondra Stewman; Sonja Frankllin; Stan Porhola; stanekj; Steve Lambert; Steve Moothart; Steven R. Rossberg; tablerk; Tamera Sheffield; Temple Davidson; Terrie Hubble; Tim Lawlor; Todd Durkee; Tony Hopfinger; trmjrl; Von Gemmingen, Scott E (DOR); Walter Featherly; Walter Quay; Wayne Rancier; Aaron Gluzman; Dale Hoffman; Fridiric Grenier; Gary Orr; Joe Longo; Lamont Frazer; Marc Kuck; Mary Aschoff; Maurizio Grandi; P Bates; Richard Garrard; Sandra Lemke; Scott Nash; Steve Virant; Tom Gennings; Willem Vollenbrock; William Van Dyke; Woolf, Wendy C (DNR); Birnbaum, Alan J (LAW); Crisp, John H (DOA); Davies, Stephen F (DOA); Fleckenstein, Robert J (DOA); Foerster, Catherine P (DOA); Grimaldi, Louis R (DOA); Johnson, Elaine M (DOA); Jones, Jeffery B (DOA); Laasch, Linda K (DOA); Mahnken, Christine R (DOA); Maunder, Thomas E (DOA); McIver, Bren (DOA); McMains, Stephen E (DOA); Noble, Robert C (DOA); Norman, John K (DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Saltmarsh, Arthur C (DOA); Scheve, Charles M (DOA); Seamount, Dan T (DOA); Smith, Chasity R (DOA); Williamson, Mary J (DOA) Attachments:co202-043, co275-001, co449-OOl.pdf; Jody J. Colombie Special Assistant to the Commission Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 (907) 793-1221 Direct Line (907) 276-7542 Fax 1/23/2009 • • O a ~ ~ SEAN PARNELL, GOVERNOR ALASSA OII, A1~D GAS 333 W. 7th AVENUE, SUITE 100 C01~5ERQA`i`IO1~T COrII-IISSIOI~T ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 ADMINISTRATIVE APPROVAL NO. CO 449.002 (Eider Oil Pool, Endicott Field) Mr. David J. Szabo Head of Resource Management Alaska Consolidated Team (ACT) BP Exploration (Alaska) Inc. P.O. Box 196612 Anchorage, AK 99519-6612 Re: Application to modify the annual reservoir pressure monitoring requirements for the Eider Oil Pool, Endicott Field Dear Mr. Szabo: The Alaska Oil and Gas Conservation Commission (Commission) received your letter, dated March 31, 2010, requesting modify Rule 9.b of Conservation Order (CO) 449 to reduce the minimum number of annual reservoir pressure surveys required for the Eider Oil Pool from four to one. The Commission GRANTS your request as detailed below. The Eider Oil Pool began producing in July 1998, and has produced over 2.7 million barrels of oil to date. Water cut increased to near 100% by late 2006 and the field was effectively shut in by the end of that year. Attempts at production have been undertaken intermittently, a total of 9 days in 2007 and 6 days in 2009, but they have proved unsuccessful at restoring regular production from the pool. Under Rule 9.b of CO 449 (the Commission's pool rules for the Eider Oil Pool) four pressure surveys per year are required. Requiring four surveys in an essentially shut in pool provides the Commission with no more useful data than can be obtained by a single pressure survey each year. Therefore, Rule 9.b. of CO 449 is hereby revised as follows: Rule 9 Reservoir Pressure Monitorin;? b) At least one bottom-hole pressure survey per four producing or injecting governmental sections shall be measured annually. No less than one reservoir pressure survey will be conducted annually. Bottom- hole surveys in paragraph (a) may fulfill the minimum requirement. Should regular sustained production from the Eider Oil Pool recommence the Commission must be notified immediately and. may revisit this issue to revise the reservoir pressure monitoring requirements. • Mr. David J. Szabo July 15, 2010 Page 2 of 2 DONE at Anchorage, Alaska and dated July 15, 2010. • The Alaska Oil and~slConservation Commission ' ,- Daniel T~eamount, Jr. J Orman Cathy . Foerster Commissioner, Chair Commissioner Commissioner 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 fal-s 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. i • Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Monday, July 19, 2010 10:59 AM To: 'Aaron Gluzman'; Bettis, Patricia K (DNR); caunderwood@marathonoil.com; 'Dale Hoffman'; Frederic Grenier; 'Gary Orr'; 'Jason Bergerson'; Jerome Eggemeyer; 'Joe Longo'; Marc Kuck; 'Mary Aschoff'; Maurizio Grandi; Ostrovsky, Larry Z (DNR); Richard Garrard; 'Sandra Lemke'; 'Scott Nash'; Talib Syed; 'Tiffany Stebbins'; 'Wayne Wooster'; 'Willem Vollenbrock'; 'William Van Dyke'; Woolf, Wendy C (DNR); (foms2@mtaonline.net); (michael.j.nelson@conocophillips.com); (Von.L.Hutchins@conocophillips.com); Alan Dennis; alaska@petrocalc.com; Anna Raff; Barbara F Fullmer; bbritch; Becky Bohrer; Bill Walker; Bowen Roberts; Brad McKim; Brady, Jerry L; Brandon Gagnon; Brandow, Cande (ASRC Energy Services); Brian Gillespie; Brian Havelock; Bruce Webb; carol smyth; Charles O'Donnell; Chris Gay; Cliff Posey; Crandall, Krissell; daps; Daryl J. Kleppin; David Boelens; David House; David Steingreaber; 'ddonkel@cfl.rr.com'; Deborah J. Jones; Delbridge, Rena E (LAA); 'Dennis Steffy'; doug_schultze; Elowe, Kristin; Evan Harness; eyancy; Francis S. Sommer; Fred Steece; Garland Robinson; Gary Laughlin; Gary Rogers; Gary Schultz; ghammons; Gordon Pospisil; Gorney, David L.; Gregg Nady; gspfoff; Harry Engel; Jdarlington Qarlington@gmail.com); Jeff Jones; Jeffery B. Jones Qeff.jones@alaska.gov); Jerry McCutcheon; Jim White; Jim Winegarner; Joe Nicks; John Garing; John Katz (john.katz@alaska.gov); John S. Haworth; John Spain; John Tower; Jon Goltz; Joseph Darrigo; Judy Stanek; Julie Houle; Kari Moriarty; Kaynell Zeman; Keith Wiles; '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); PORHOLA, STAN T; Rader, Matthew W (DNR); Raj Nanvaan; Randall Kanady; Randy L. Skillern; rob.g.dragnich@exxonmobil.com; Robert A. Province (raprovince@marathonoil.com); 'Robert Brelsford'; Robert Campbell; Roberts, Susan M.; Rudy Brueggeman; Scott Cranswick; 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 O (DNR); Temple Davidson; Teresa Imm; Terrie Hubble; Thor Cutler; Tina Grovier; Todd Durkee; Tony Hopfinger; trmjr1; Vicki Irwin; Walter Featherly; Williamson, Mary J (DNR); Winslow, Paul M; Yereth Rosen; Aubert, Winton G (DOA); Ballantine, Tab A (LAW); Brooks, Phoebe; Davies, Stephen F (DOA); Fisher, Samantha J (DOA); Foerster, Catherine P (DOA); Johnson, Elaine M (DOA); Laasch, Linda K (DOA); Mahnken, Christine R (DOA); Maunder, Thomas E (DOA); McIver, Bren (DOA); McMains, Stephen E (DOA); Norman, John K (DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Saltmarsh, Arthur C (DOA); Scheve, Charles M (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA) Subject: Public Notice Nicolai Creek #10 and Admin Approval co449-002 Eider, Endicott Attachments: Public Notice Nicolai Creek #10.pdf; co449-002.pdf Jod}~ J. Colo~rabie Special Assistant Alaska Oil and Gas Conservation Commission 333 !'Vest 7th Avenue, Suite 100 Anchorage, AK 99501 (90')?93-1221 (phone) (90')2?6-?542 (fax) Mary Jones David McCaleb George Vaught, Jr. XTO Energy, Inc. IHS Energy Group PO Box 13557 Cartography GEPS Denver, CO 80201-3557 810 Houston Street, Ste 2000 5333 Westheimer, Ste 100 Ft. Worth, TX 76102-6298 Houston, TX 77056 Jerry Hodgden Richard Neahring Mark Wedman Hodgden Oil Company NRG Associates Halliburton 408 18th Street President 6900 Arctic Blvd. Golden, CO 80401-2433 PO Box 1655 Anchorage, AK 99502 Colorado Springs, CO 80901 Schlumberger Ciri Baker Oil Tools Drilling and Measurements Land Department 4730 Business Park Blvd., #44 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99503 Anchorage, AK 99503 Anchorage, AK 99503 Ivan Gillian Jill Schneider Gordon Severson 9649 Musket Bell Cr.#5 US Geological Survey 3201 Westmar Cr. Anchorage; AK 99507 4200 University Dr. Anchorage, AK 99508-4336 Anchorage, AK 99508 Jack Hakkila Darwin Waldsmith James Gibbs PO Box 190083 PO Box 39309 PO 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 PO Box 2139 Soldotna, AK 99669-7714 Fairbanks, AK 99701 Soldotna, AK 99669-2139 Richard Wagner Bernie Karl North Slope Borough PO Box 60868 K&K Recycling Inc. PO Box 69 Fairbanks, AK 99706 PO Box 58055 Barrow, AK 99723 Fairbanks, AK 99711 Iry^µi le i~~~0 ~i0 by ~ David J. Szabo Head of Resource Management Alaska Consolidated Team (ACT) March 31, 2010 BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 Phone: (907) 564-4788 Fax: (907) 584-4440 Email SzaboDJ~bp.com Web: www.bp.com ~~, ~2ECEI'1/EEI Mr. Daniel Seamount Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 APR p ~ 2010 . ~ ~ G86 COtli. ~111111pf 1 RE: Administrative Approval Request: Change to Rule 9b, CO 449 (Eider Oil Pool) Dear Mr. Seamount: BP as Operator of the Duck Island Unit requests that the minimum annual Reservoir Pressure Monitoring requirement for Eider Oil Pool (CO 449, Rule 9.b) be reduced from four (4) reservoir pressure surveys per year to one (1) reservoir pressure survey per year. We propose CO 449, Rule 9b be changed to read as follows: °At least one bottom-hole pressure survey per four producing or injecting governmental sections shall be measured annually. No less than one reservoir pressure will be measured annually. Bottom-hole surveys in paragraph (a) may fulfil the minimum requirement." Eider Oil Pool currently contains only one well, well 2-56A/EI-01. This well has produced for less than 8 days per year since the beginning of 2007 due to its high watercut (100%). Reservoir pressures based on surveys in Eider pool have been 4260 psi plus or minus 70 psi since the beginning of 2008. A single annual reservoir pressure survey will be adequate to monitor the pressure in the reservoir given the very limited offtake. Reducing the minimum requirement from four to one per year will preserve monitoring and reduce the risk of unnecessary operations in the well. Should you have any questions, please contact John Garing at (907) 564-5167. Sincerely, David J. Szabo wwwol MUaw 1 • r~ r~ ,~ R. L. Skillern Senior Landman -Alaska November 20t", 2008 Mr. Kevin Banks, Acting Director Division of Oil & Gas State of Alaska, Dept. of Natural Resources 550 West 7t" Avenue, Suite 800 Anchorage, AK 99501-3560 Mr. John Norman Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 RE: Request for Surface Commingling of Production for Well 2-30B/M E-01 Gentlemen, BP Exploration !Alaska) Inc. 900 East Benson Boulevard PO Box 196612 Anchorage, AK 99519-6612 (907) 564-5111 Phone: (9071564-5567 Fax: (907) 564-4264 Email SkilleRL~bp.com Web: www.bp.com ~~~ - ,.~ ~''~ In accordance with 20 AAC 25.215, BP as Operator of the Duck Island Unit and sole Working Interest Owner o lease ADL 346 3 (ract 13) hereby requests permission for surface commingling of production from Well 2-30B/ME-01 with production from the Eider, Sag Delta North, and Endicott Oil Pools. The Operator proposes the following methodology for tracking production from Well 2-30B/ME-01. • Production from Well 2-30B/ME-01 will be allocated on a daily basis using the same methodology employed for wells in the Eider Oil Pool (Conservation Order No. 449) and will be tracked through BP's production tracking system. Allocations will be based on well tests as described below. • VVeii 2-30B/iviE-Ui will be tested a minimum of two times per month during periods when the well is on production. The meter allocation factor for Well 2-30B/ME-01 will be fixed at 1.0 • Allocated data will be reported monthly to the DNR using form 10-405 as required by 20 AAC 25.230. This methodology for Mr. Kevin Banks, Acting Director Division of Oil & Gas Mr. John Norman Alaska Oil and Gas Conservation Commission November 20t", 2008 Page 2 lJ allocation and reporting will continue until final determination of the Producing Area for Well 2-30B/ME-01. Should you have any questions, please contact John Caring at (907) 564-5167. Sincerely, 1 ti;; --~ #~ R.L. Skillern cc: John Caring Endicott Files ~$ Eider pata, • • Subject: Eider Data Date: Mon, 12 Jun 2000 15:25:18 -0500 From: "Ding, Eric R" <DingER@BP.com> To: "'jack_hartz@admin.state.ak.us"' <jack_hartz@admin.state.ak.us> Jack, Here is the data that you requested. «Eider PVT Data.xls» Please let me know if I can be of further assistance, Eric Ding BPXA Reservoir Engineer - Endicott phone: (907) 564-5594 fax: (907)564-5200 PVT Data.xls Type: Microsoft Excel Worksheet (application/vnd.ms-excel .Encoding: base64 Description: Eider PVT Data.xls 1 of 1 6/12/00 12:45 PM Viscosity at 210 F Pressure (psia) Viscosity (cP) 6000 1.072 5600 1.041 5200 1.011 4800 0.980 4200 1.107 3700 1.220 3200 1.333 2700 1.482 2200 1.682 1700 1.926 1200 2.266 700 2.702 200 3.582 15 4.419 Sheetl Separator Gas Composition Gas Gravity = 0.778 Component Mole Nitrogen 0.24 Carbon Dioxide 14.781 Methane 74.068 Ethane 7.252 Propane 2.452 Isobutane 0.263 Normal Butane 0.492 Isopentane 0.103 Normal Pentane 0.119 Hexanes 0.077 Benzene 0.019 Heptanes 0.063 Toluene 0.01 Octanes 0.031 Nonanes 0.016 Decanes 0.007 Undecanes 0.004 Dodecanes 0.002 Tricanes Plus 0.001 Page 1 ~ 7 • ~ • 2 I 3I1 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 • ALASKA OIL AND GAS CONSERVATION COMMISSION PUBLIC HEARING In Re: ) EIDER POOL RULES HEARING. ) TRANSCRIPT OF PROCEEDINGS Anchorage, Alaska May 25, 2000 9:10 o'clock a.m. APPEARANCES: Commissioners: MS. CAMILLE OECHSLI TAYLOR MR. DAN SEAMOUNT Attorney General's Office: MR. ROBERT E. MINTZ ORIGINAL METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • • 2 • 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 r~ L~ P R O C E E D I N G S (On record - 9:10 a.m.) COMMISSIONER SEAMOUNT: I would like to call this meeting or this hearing to order. The date is May 25, 2000. It's approximately 9:10 a.m. We're located at 3001 Porcupine Drive, Anchorage, Alaska, which is the offices of the Alaska Oil and Gas Conservation Commission. I'll introduce the head table first. My name is Dan Seamount. I'm one of the commissioners holding the geologic seat. To my left is Cammy Oechsli Taylor, the other commissioner at this meeting. Laura Ferro of Metro Court Reporting is making a transcript of the proceedings. If you want a copy of the transcript of the proceedings, you need to get a hold of Metro Court Reporting. Purpose of this hearing is to consider an application from British Petroleum Corporation to establish pool rules for the Eider Oil Pool, and to approve the area injection order i authorizing enhanced oil recovery operations in that pool. ~I Previously, the meeting or the hearing was scheduled for April 6, 2000, and it was continued to today. Published notice for today's hearing was on April 15, 2000. I guess we'll go through the ground rules first. These proceedings are held in accordance with Regulation 20 AAC 25.540, which are regulations that govern public. hearings. It provides that we consider sworn testimony as well METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 3 1 as unsworn statements. We give greater weight to sworn 2 testimony. Also, if wish to be considered an expert witness, 3 you must state qualifications, and the Commission will rule 4 whether to consider you as an expert. We'll hear from the 5 applicant first, and then we'll allow opportunity for other 6 interested parties to ask questions. The way to do that is -- 7 the way for those who want to ask questions is to write the 8 questions down, forward them to the head table, and then the 9 Commission will ask the question. 10 So, we'll start the hearing. I would like to invite 11 the applicant to introduce themselves and approach the 12 Commission. 13 MR. OSBORNE: My name is Gary Osborne. 14 COMMISSIONER SEAMOUNT i i A v ng sworn : re you g 15 testimony, Mr. Osborne? 16 MR. OSBORNE: Yes, sir. 17 COMMISSIONER SEAMOUNT: Please raise your right 18 hand. 19 (Oath administered) 20 MR. OSBORNE: I do. 21 COMMISSIONER SEAMOUNT: Thank you. Please, 22 could you give us your qualifications? 23 MR. OSBORNE: As I said, my name is Gary 24 Osborne. I'm a Subsurface Manager for Endicott on behalf of 25 BP, the operator of the field. METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • • 4 • i • 1 2 3 41 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COMMISSIONER SEAMOUNT: Commissioner Taylor, do you have any questions? COMMISSIONER TAYLOR: Do you wish to be sworn as an expert? MR. OSBORNE: Absolutely, yes. COMMISSIONER TAYLOR: If you -- proceed then with your qualifications. MR. OSBORNE: I have a Bachelor of Science degree from Ohio Wesleyan University in Geology, a Master of Science degree in Structural Geology from the University of Southern California, worked in the oil industry for 20 years. COMMISSIONER TAYLOR: I don't have any objections. COMMISSIONER SEAMOUNT: No objections. Please proceed. MR. OSBORNE: This hearing continuance has been scheduled in accordance with statutes 20 AAC 25.520 and 20 AAC 25.540, in order to consider evidence relevant to the establishment of pool rules and an area injection order for the Eider Oil Pool. Our letters dated January 27, 2000, contain the formal applications both for the pool rules and area injection order related to the implementation of a water flood in the Eider Pool. Supplemental information was also provided to the AOGCC in our letter dated February 17, 2000. Further, as a follow up METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 i ~ 5 1 to the initial hearing on April 6, 2000, BP clarified and 2 modified its position regarding the confidentiality of certain 3 data within the supporting testimony to the establishment of 4 pool rules. This position was discussed with Commission staff 5 at a meeting on April 13, 2000, and detailed in our letter of 6 April 17, 2000. 7 Specifically, BP requests the Commission to approve 8 several concepts which are considered necessary for the 9 development of Eider. These are, one, initiation of water 10 injection for enhanced oil recovery; two, surface commingling 11 of production from the Eider Pool with the Endicott and Sag 12 Delta North Pools; and, three, exemption to the gas-oil ratio 13 limit as set forth in 20 AAC 25.240(b). 14 BP is presenting testimony today in support of our 15 application. We will discuss our present understanding of the 16 Eider geological and reservoir description, reservoir 17 performance history, predictions of future performance, and the 18 plan of field development. Testimony related to the geological 19 description will be presented by Bill Rathke. Eric Ding will 20 present testimony related to the reservoir engineering and 21 development considerations of Eider. Each of the witnesses is 22 prepared to respond to questions concerning his testimony and 23 related exhibits. 24 Some of the materials to be presented today are 25 confidential, and we request that the public be excluded from METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • • 6 • 2 3 4'i 5' 6 7 8 9 10 11 I 12 I 13 14 15 16 i 17 ~I 18 19 20 21' 22 23 24 25 • hearing this confidential information. As discussed with your staff, we have endeavored to keep this confidential information to a minimum. The main reasons for requesting this information be held confidential are issues related to adjacent leases; and secondly, precedent setting na- -- precedent setting of premature release of proprietary well information. For the avoidance of doubt, we are claiming confidentiality of this data under AS 31.05.035. BP considers the documents could be released upon the date of release of the remaining Eider well data in February 2001. COMMISSIONER SEAMOUNT: Let's see, you said issues related to adjacent leases. And what were the other -- you had two other reasons? MR, OSBORNE: Two reasons in total, the first being the adjacent leases; and second, we'd rather not establish a precedent for premature release of proprietary well data. COMMISSIONER SEAMOUNT: The well data? MR. OSBORNE: Right. COMMISSIONER SEAMOUNT: And the well data becomes public February of next year, 2001. MR. OSBORNE: Exactly. Correct. That concludes my statement. At this time, I would be happy to turn it over to Bill Ratlike who will testify regarding a geological description. METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 7 1 COMMISSIONER SEAMOUNT: Are. you or is any of 2 the staff going to describe what it is you want to hold 3 confidential? 4 MR. OSBORNE: The..... 5 COMMISSIONER SEAMOUNT: Without divulging the 6 confidential information but..... 7 MR. OSBORNE: Right. 8 COMMISSIONER SEAMOUNT: Okay. 9 MR. OSBORNE: Right. 10 COMMISSIONER SEAMOUNT: Are you going to do 11 that now or are we going to do it as we go through? 12 MR. OSBORNE: Let's do it in the course of the 13 testimony. We have ordered the enclosures or attachments to 14 the application such that all of the non-proprietary enclosures 15 are up front, and the few that are confidential are together at 16 the end of the testimony. 17 COMMISSIONER SEAMOUNT: Okay. 18 COMMISSIONER TAYLOR: Mr. Osborne, I had a 19 question in the original application, the application itself as 20 well as the exhibits was confidential. I didn't see anything 21 that addressed that subsequently. 22 MR. OSBORNE: Right. The original application 23 contained material which we thought very strongly was 24 considered confidential. Subsequent to that original 25 application, then we had the original testimony, and modified METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 1 those enclosures or -- or re-designated them as non- . 2 confidential. With a few exceptions then several were still 3 held confidential. But the original application contains data 4 that is confidential. And in the interest of supplying the 5 Commission's needs as well as moving the application forward, 6 we did modify those original documents. 7 COMMISSIONER TAYLOR: The exhibits. 8 MR. OSBORNE: Yes. 9 COMMISSIONER TAYLOR: Right. But my question 10 was aimed at the -- I don't know, eight or ten pages before 11 that, all of the pages except for the rules themselves is 12 stamped confidential. 13 MR. OSBORNE: Right. 14 tit ti i COMMIS IONER TAYL A b u ng n re you su s S OR: 15 the subsequent document that contains your testimony today as 16 the application? 17 (Side conversation) 18 MR. FELL: Can we go off the record for a 19 second? 20 COMMISSIONER SEAMOUNT: Yes. 21 (Off record 9:20 a.m.) 22 (On record 9:22 a.m.) 23 COMMISSIONER SEAMOUNT: We're back on record. 24 And we are discussing the application and the confidentiality 25 issues. METRO CDURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 8 • 9 • 2 3 4 5 6. 7' 8' 9 10 11 12 13 ~ 14 15 16 17 18 19 20 21 22 23 24 25 • COMMISSIONER TAYLOR: And I guess for a summary, as I understand it, Mr. Osborne, then the document that was filed, and I'm not sure the exact date on that. Do you have it in front of you? COMMISSIONER SEAMOUNT: Which date is that? COMMISSIONER TAYLOR: The latest one. April 18. Right. Okay. That document is -- will be substituted and treated as the application. That was what the Commission prepared for the public to view excluding the pages that were marked confidential. MR. OSBORNE: Correct. COMMISSIONER TAYLOR: And that will be substituted in as the application for pool rules. COMMISSIONER SEAMOUNT: So, the pages have to be marked confidential to be considered confidential, is that correct? MR. OSBORNE: Right. COMMISSIONER SEAMOUNT: Okay. COMMISSIONER TAYLOR: And the application for the area injection order didn't have anything attached to that that was confidential so that didn't change. Okay. MR. OSBORNE: Okay. COMMISSIONER SEAMOUNT: Okay. MR. RATHKE: Good morning. My name is Bill Rathke, and I'll be presenting testimony on the geological METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • • 10 • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 '~, i 18 19' 20 21 22 I 2 3 ~' 24 25 description of the Eider Field on behalf of BP Exploration. I'm the BP Geophysicist responsible for Endicott and related areas. I received a Bachelor of Arts degree in Geological Sciences from Dartmouth College, and a Master of Science in Structural Geology from Cornell University. I've worked as a geophysicist in the oil industry for about 22 years. The last 19 years have been with BP and predecessor companies in several ~ locations around the world. COMMISSIONER SEAMOUNT: So, I take it you are requesting expert witness status? MR. RATHKE: Yes. COMMISSIONER SEAMOUNT: And are you giving sworn testimony? MR. RATHKE: Yes, sir. COMMISSIONER SEAMOUNT: Okay. We'll start with please raise your right hand. (Oath administered) MR. RATHKE: I do. COMMISSIONER SEAMOUNT: Commissioner Taylor, do you have any questions concerning Mr. Rathke's qualifications? COMMISSIONER TAYLOR: No, I don't. And I have no objection to his being qualified as an expert witness. COMMISSIONER SEAMOUNT: Okay. Please proceed. MR. RATHKE: Okay. Can we get this to work? COMMISSIONER SEAMOUNT: Yes. We were working METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • 11 1 on that earlier. 2 (Off record comments) 3 MR. RATHKE: Exhibit A shown here is a location 4 map for the Eider Field, showing the extent of the exploitable 5 hydrocarbon-bearing reservoir, the bounding faults, and the 6 existing wells used for field delineation. Also shown are the. 7 Eider Field's relationship to Endicott and Sag Delta North 8 Fields, and the participation area outlined for which the field 9 rules for Eider reservoir would apply. 10 The Eider Field was discovered in 1998, and underlies 11 state leases located approximately 1-1/2 miles offshore. The 12 Eider Field is a fault controller anticline structure, 13 truncated at the top by the Lower Cretaceous unconformity, and 14 within the Triassic it contains oil below a roducibl as ca p g p e 15 Ivishak Formation. These hydrocarbon bearing zones cover an 16 area of approximately 300 acres. 17 The delineation of the Eider reservoir is based on two 18 completed wells, and those are the 2-56A Eider 1, and the 2-30A 19 Eider 2, and five additional sidetracks or plugbacks of these 20 wells, the 2-56 Eider 1, 2-56A Plugback 1, and 2 -- the 2-38 21 Plugback 1, and 2-30A Plugback 2. As shown in this Exhibit A, 22 these seven reservoir penetrations provide a wide distribution 23 of control points encompassing all three of the major fault 24 blocks of the field. The data from these wells consists 25 primarily of logging while drilling log data, and repeat METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • • 12 • 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ~~ formation test data. The log and RFT data were used to determine the petraphysical and reservoir properties. Structural control and fault identification are based on the interpretation of the Endicott MPI 3D seismic survey. The seismic dataset is of generally fair to good quality in the area of the Eider Field. The major bounding faults are clearly resolved and are considered to be accurately located. The hydrocarbons in the Eider Field are trapped in sandstones and conglomerates of the Ivishak Formation, correlative to Prudhoe Bay Ivishak Zone 2, and to Sag Delta North Ivishak Formation. Exhibit B shown here, the Eider type log, illustrates the formation and the zonal nomenclature. The formation has been subdivided into an Upper Sand, a Middle Shale containing a sandstone unit, and a Lower Sand, very similar to the Sag Delta North Field. Exhibit C summarizes the dominant lithologies and the interpretative depositional environments of the reservoir section. The depositional environments are expected to be analogous to Sag Delta North based on log and cuttings data. And overall regressive sequence is interpreted, ranging from upper shoreface or marine influenced fluvial and distributary sands in the Lower Sand Unit, floodplain or bayfill in the middle shale, to a predominantly fluvial environment in the Upper Sand. Core data was not obtained in any of the Eider wells. METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • 13 • 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 I 18 19 20 21 22 23 24 25 • Individual well averages and averages of well porosity, net to gross, and one minus Sw were multiplied to acre-feet divided by formation volume factor of 1.36 to estimate oil in place. The acre-feet calculations were based on isopachs of net pay of the light oil column using the fluid contact data from the wells. The total original oil in place is 13.2 million barrels. More than half of this oil in place is contained in the Lower Sand Unit. A significant gas cap also exists with an estimated volume of 33 billion standard cubic ~~ feet originally in place. And that concludes my testimony on the subsurface description of Eider Field. If there are any questions, I'd be pleased to answer them now or later. COMMISSIONER SEAMOUNT: I have no questions. It's a good presentation. Any questions from the audience we'll take in writing and ask them later. MR. DING: My name is Eric Ding. I'd like to give sworn testimony and be considered an expert witness. COMMISSIONER SEAMOUNT: Okay. I guess we'll start with the oath. Please raise your right hand. (Oath administered) MR. DING: I do. COMMISSIONER SEAMOUNT: Thank you. I guess, Mr. Ding, you can start by giving us your qualifications. MR. DING: Okay. My name is Eric Ding. I METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • • 14 1 2 3 4 5 6 7 8 9 10 11 12 '' 13 14 15 16 17 '' 18 19 20 21 22 23 24 25 ~~ ~~ received a Bachelors of Science in Chemical Engineering from the University of Oklahoma, and a Masters of Science in Chemical Engineering from the University of Wisconsin-Madison. I've worked for BP since January of '97 as a Petroleum and a Reservoir Engineer. I've been responsible for the reservoir engineering for the Eider Field since July of 1998, and am intimately familiar with the information to be presented. COMMISSIONER TAYLOR: I don't have any questions and I have no objection. COMMISSIONER SEAMOUNT: Okay. Please proceed. MR. DING: Okay. My testimony will consist of an overview of the petrophysical properties; an overview of the past reservoir performance; a review of the reservoir studies describing depletion mechanisms, discussion of performance predictions and surveillance plans and other development issues. I would like to start with the petrophysical properties. In the absence of core data, porosity was calculated from open hole logs, and permeability was estimated based on the permeability-porosity functions that have been derived from Prudhoe Bay Zone 2 Ivishak core data. Exhibit B summarizes the average zonal petraphysical properties. The average porosity is 21 percent, and the average permeability is 134 mD in the oil column. The permeability varies by zone from approximately 30 mD in the Lower Sand to 300 mD in the Middle METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • • 15 • 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ~~ `._J Shale Sands and the Upper Sand. The Kv/Kh ratio is expected to be approximately 0.1 for all sands. The net pay at each well is estimated using a shale volume cutoff of 0.4. The average net to gross ratio is 0.72. The water saturations were determined from open hole logs, The average water saturation is calculated to be 36 percent -- excuse me -- 36 percent using the Archie model. Relative permeability data is not available for Eider. Oil water and gas oil relative permeability data developed for the Prudhoe Bay Zone 2 was used for the Ivishak reservoir modeling studies. Initial water saturation used was 36 percent, with a residual oil to water of 20 percent. The absolute residual oil to gas was three percent, with an effective residual to gas over the time frame investigated of 25 percent. Surface separator samples were collected from 2-56A Eider 1, and laboratory analysis yielded an initial solution GOR of 769 standard cubic feet per barrel at the saturated bubble point of 4,635 psia. API gravity at the 2-56A Eider 1 samples was measured at 23.1 to 23.8 degrees similar to Endicott Kekiktuk crude. Now I will discuss the production history. Two wells have been drilled to date. 2-56A Eider 1, and 2-30A Eider 2. Both produce from the Lower Sand Unit only. The production history to date from the Eider reservoir is shown on Exhibit D. METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 L 16 • 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Well 2-56A was brought on production on June 1, 1998, at 3,000 stock tank barrels of oil per day. After two months of near solution GOR production, the GOR began to steadily increase. Well 2-30A was brought on production on January 25, 1999, at 80,500 stock tank barrels of oil per day, solution GOR and only trace water. The GOR began to rise quickly reaching 5,800 standard cubic feet per stock tank barrel by the end of February. When 2-30A was shut in at the end of the 128 test period, it was tested at 2,365 barrels of oil per day, 9,000 GOR, two percent water cut. Well 2-56A was produced intermittently throughout this period and was shut in on September 30, 1999, for reservoir management. The initial pressure of the field was 4,635 psia at the GOC depth of 9,700 TVD subsea, which is therefore the bubble point pressure. The measured field pressure was 3,856 psia in November of 1999, shortly after the field was shut in. Good pressure communication has been seen between the two wells, as shown by static pressure and RFT data. To move on to the development plans. A full field reservoir simulation model was developed to study the performance and to develop a depletion plan for the field to maximize economic recovery. The VIP-Executive reservoir simulator was used to perform the study. Reservoir performance was history matched to the available production data. Exhibit E shows similar generated rates versus the actual field data. METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 ~ i 17 1 The original oil in place estimate has been reduced to 13.2 2 million stock tank barrels of oil from the original estimate of 3 18 million. The history match indicates the presence of fewer 4 hydrocarbons than previously thought, resulting in a reduction 5 of the hydrocarbon pore volume. 6 Predictive runs were then undertaken to determine the 7 production plan which would maximize the economic recovery. 8 Primary depletion, water injection, and gas injection were the 9 options investigated in depth. Voidage replacement with water 10 injection is considered to be the most beneficial and efficient 11 approach to enhance recovery, producing over five million 12 barrels within the next 10 years. Water injection is predicted Z3 to suppress the free gas production preserving reservoir energy 14 d ti th fi ld f b i h i d an preven ng e e rom e n ng s ut ue to 15 uncompetitive GOR. 16 BP requests that waterflood implementation be 17 authorized within the pool rules based on the recovery benefits 18 to be gained, and that an area injection order be issued. 19 Reservoir simulation shows an expected incremental increase and 20 ultimate recovery of 1.5 to three million barrels of oil as a 21 result of the proposed water injection into 2-56A. 22 Recovery from primary depletion is estimated at 15 23 percent, while recovery with water injection is estimated at 27 24 to 38 percent, an incremental recovery of 12 to 23 percent. 25 Initial production will begin upon implementation of METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • • 18 • 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the waterflood, with an expected initial rate of 1,500 barrels of oil per day. Maximum water injection rates are expected to range from 15,000 to 20,000 barrels of water per day. Water injection will then match voidage, rather than attempting to repressurize the reservoir to original pressures. Simulation shows little reservoir benefit to repressurization to the bubble point, but significant potential downside due to resaturation of the gas cap. The proposed strategy will maximize sweep in the Lower Sand Unit, which holds the largest single amount of reserves in the reservoir. Because this sand has the lowest permeability, the high angle section in Eider 2 will enable reserves to be maximized in this sand body. Once the Lower Sand reserves have been maximized, the other units will be considered and accessed as appropriate. The higher permeability of these sands makes them more susceptible to early gas and water breakthrough, and accessing them later will avoid putting the reserves in the Lower Sand at risk. This two stage strategy will maximize the reserves in the overall reservoir. The potential ultimate recovery impacts of additional drilling within the delineated portion of the reservoir are seen to be small, and no further penetrations within the Eider Pool are foreseen at this time. The added reserves of a third well are predicted at less than two million barrels maximum, with a P50 estimate of 0.8 million barrels. This will be METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • • 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 4 J reviewed as the pool matures and more information is gathered. At this time it is believed that 160 acre spacing is sufficient for the two well field development. BP requests, as a result of the pressure maintenance project proposed, an exemption to the gas-oil ratio limit as set forth in 20 AAC 25.240(b) While BP expects the GOR to eventually be suppressed by water injection, some formation gas production is expected to occur. Voidage replacement of the produced fluids with water injection will be sufficient to maintain reservoir energy. BP requests that one pressure survey be required in the field per year rather than one from each producing government section. Well 2-30A Eider 2 produces from two different government sections, but the requirement to obtain isolated statics from each producing interval in the well would present significant risk to operations. Therefore, BP proposes a minimum of one survey in the field each year for reservoir management. At this time, I would like to go to a confidential session. The data to be discussed is proprietary data and may be released when all well data has become public. The reasons for keeping Exhibits F through I confidential have been discussed with the Commission staff and are outlined in the letter dated April 17th. COMMISSIONER SEAMOUNT: The reasons for keeping METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • • 20 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 251 them confidential have been discussed with our staff. Also, it was mentioned earlier the two reasons were issues related to adjacent leases. These are leases that are not held by production, is that correct? MR. DING: That are not held by production or solely by BP. COMMISSIONER SEAMOUNT: Right. So that they do have a term on them. And then the other reason was for well data, is that correct? MR. DING: Yes. COMMISSIONER SEAMOUNT: Do you have any questions, Commissioner Taylor? COMMISSIONER TAYLOR: I don't have any questions. Perhaps..... ', MR. MINTZ: Could I ask a question? By what -- you mean that this data includes or refers to well data that's of the sort that's required to be filed by the -- with the Commission and is still within the confidentiality period? MR. DING: Yes. MR. MINTZ: I also suggest that the Commission inquire into whether the applicant wishes everyone not associated with the applicant to be excluded or whether they have any objection to some DNR or I don't know whether there's another working interest owner here. MR. FELL: We -- can I speak off the record? METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • C. 21 1 2 3 4 5 6 7 8'~, 9 10 11 12 '' 13 14 15 16 17 18 19 20 21 22 23 24 25 r-~ U (Indiscernible) On the record, we would be happy for the DNR to be present at this confidential session. (Side conversation) COMMISSIONER SEAMOUNT: Could you peruse the room and tell us who is allowed to stay and who isn't? MS. NELSON: I think I'm the only one who needs to leave. Will you guys holler at me when you go off confidential? MR. FELL: Of course. MS. NELSON: I'll wait out here. (9:45 a.m.) (Executive Session Portion) (9:52 a.m.) COMMISSIONER SEAMOUNT: We'll invite the public back in. Mr. Ding, could you describe what you just..... MR. DING: I actually do have more testimony but that that's okay. COMMISSIONER SEAMOUNT: Well, we're coming out of executive..... MR. DING: Go ahead, I'm sorry. COMMISSIONER SEAMOUNT: .....session so we need to describe to the public what we just -- what you just talked about without divulging any confidential information, please. MR. DING: Okay. In the confidential session, I presented more details on the internal structure of the Eider METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • • 22 • 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ~~ L.J Field, presented some more data on the history match, particularly some detailed pressure data, a map of the internal faulting structure of the reservoir, and then the predictive profiles for the various depletion mechanisms that were shown, demonstrating the optimal depletion strategy of water ~ injection . COMMISSIONER SEAMOUNT: Thank you, Mr. Ding. MR. DING: At this point, I'd like to discuss ', well planning. The Eider casing and cementing requirements are ', identical to the Endicott Pool requirements. Wells drilled to '~, the reservoir interval encounter the exact same formations prior to entering the pay zone as the Endicott wells. It is recommended that Endicott Conservation Order Number 275, Rule 4, or similar, be adopted for the casing and cementing requirements, with modifications as shown in Exhibit J. I was going to say that I just -- Order Number 275, Rule 4. Exhibit K shows a typical well configuration for Eider. This would be Eider 1 completion diagram. Are you finished? I'm sorry. COMMISSIONER SEAMOUNT: That was fine. MR. DING: For facilities, the development and continued production of the Eider Pool is dependent upon utilizing the existing production and injection facilities of the Endicott Field. This requires commingling of Eider and Endicott crude prior to processing and metering. Eider METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • 23 1 production will be allocated on the basis of test separator 2 measurements of oil and gas. Water volumes will be determined 3 by measurement with an AGAR watercut meter. Each Eider well 4 will be tested at least once monthly for a minimum of four 5 hours at a stabilized flow rate. 6 This concludes my portion of the testimony. 7 COMMISSIONER SEAMOUNT: Thank you, Mr. Ding. 8 MR. OSBORNE: This concludes our technical 9 presentation. We'd be happy to address any questions that have 10 come up over the course of the testimony, and for your 11 convenience and consideration, we've assembled some proposed 12 pool rules for the Eider Field. Thank you. 13 COMMISSIONER SEAMOUNT: At this time I would 14 lik th t k fi f h i ll l ff d e o as rst o ca o -- was ere a our tec n sta , 15 need to take a recess, a short recess? Okay. We would like to 16 take a short recess, and we'll be back in 10 minutes. 17 (Off record 9:56 a.m.) 18 (On record 10:12 a.m.) 19 COMMISSIONER SEAMOUNT: We're back in session. 20 There were four questions that we have, three of which I will 21 ask, one Cammy will ask. 22 The first question is on your type log -- I have to 23 find it first so I'm not talking from memory. And also want to 24 make sure it was not one of the ones marked confidential. 25 Okay. The type log shows a gas saturation of 80 percent in the METRO COURT REPORTING, INC. ~' 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • 24 • r~ L • 11 2 3 4~ 5 6 7, 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Sag River formation. Was that included in your 33 BCF reserves? MR. DING: No, it wasn't. COMMISSIONER SEAMOUNT: Do you know what the reserves are in the Sag River? Have you done any work on that? MR. RATHKE: Our assumption from the log response is that it's low porosity and very tight, which would suggest that there is some in place but there's very little in the way of reserves. COMMISSIONER SEAMOUNT: Okay. Let's see, so it's got..... entirely gas. • MR. RATHKE: And we believe it would be COMMISSIONER SEAMOUNT: It's got pretty good ~~ porosity but low permeability. MR. RATHKE: Uh-hum. COMMISSIONER SEAMOUNT: Do you believe it's in 'vertical communication with the Ivishak? MR. RATHKE: Unknown. MR. DING: It's unknown but unlikely considering that we don't see it in Prudhoe Bay or any of the other areas where we (indiscernible). COMMISSIONER SEAMOUNT: Okay. Did that answer your question? Okay. Second question, what type of pressure tests are planned? METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • • 25 • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. DING: Static pressure measurements, be they're using memory gauges on a slip line unit or electric line. COMMISSIONER SEAMOUNT: Okay. MR. CRANDALL: How would that be (indiscernible) or static? MR. DING: They would be static. That's the plan. COMMISSIONER SEAMOUNT: The third question concerns allocation. Do you guys have a problem measuring production two times a month? MR. DING: Considering the large number of wells on the main production island, the Eider wells have to use the same testing facilities as the rest of the -- two times a month, it starts to interfere with the standard surveillance for the rest -- standard well testing for the rest of the island for Endicott Field, and makes it more difficult to properly allocate and -- not properly allocate, excuse me, but properly prioritize the most competitive wells for Endicott Field. It is possible but we prefer not to. COMMISSIONER SEAMOUNT: Okay. COURT REPORTER: Excuse me. Can you have them use the mike? COMMISSIONER SEAMOUNT: I'm sorry. (Off record comments) METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Ataska 99501 (907) 276-3876 • 26 • • 1 2~ 3 4 5~, 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. DUKES: I'll speak real loud. I've also noticed that we've had that exception in the past in some of the fields. COMMISSIONER SEAMOUNT: Which exception is that? Commissioner? • MR. DUKES: Testing ones. Yeah. COMMISSIONER SEAMOUNT; Fourth question, COMMISSIONER TAYLOR: And I'm not sure if I should address this to you, Mr. Dukes, or to Mr. Osborne. But with respect to the confidential material that's been filed with these two applications, is there anything that cannot be released when the well file is ultimately released? MR. DUKES: Can we talk about that for a moment? ', COMMISSIONER TAYLOR: We just want to make sure that we understand exactly what treatment to give. (Side conversation) MR. DUKE: There's nothing that cannot be released in February 2001. COMMISSIONER TAYLOR: Which well is it that's still in confidential status, is it 1 or 2? UNIDENTIFIED MALE SPEAKER: The 2 well. COMMISSIONER TAYLOR: The 2 well. So, we can tie the release of it to the 2 well. METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • 27 1 MR. DUKE: Yes, that would be fine. 2 COMMISSIONER TAYLOR: Thank you. 3 COMMISSIONER SEAMOUNT: Are there any other 4 issues concerning this hearing? 5 MR. FELL: I have a question. 6 COMMISSIONER SEAMOUNT: Okay. Go ahead. 7 MR. FELL: Off the record, I have a question. 8 MR. MINTZ: Actually -- excuse me. 9 MR. FELL: (Indiscernible) 10 MR. MINTZ: I should have spoken up earlier but 11 we really can't go off the record. If you want to have a 12 private conversation, that's fine. 13 MR. FELL: Okay. 14 MR ti CRANDALL I h t h i l ave a ques on. . : ec n ca 15 Bob Crandall with the Commission. 16 COMMISSIONER TAYLOR: Can you hear me or do you 17 want him to put the mike on? 18 COURT REPORTER: Speak up. 19 MR. CRANDALL: Anyway, I'm just kind of 20 curious. Is there any reason why we wouldn't want to include 21 the Sag River in this pool? I'll take it that the issue of 22 vertical communication is indeterminate at this point. And at 23 Prudhoe the Sag River is included in the Prudhoe Pool, the 24 reason for that is because they have common fluid contact. 25 The -- so, I'm just curious, is there any reason why you want METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 28 1 to exclude it? 2 (Side conversation) 3 MR. FELL: I'm not sure that we see anything 4 advantageous to adding it in there. I mean I don't see any 5 reason..... 6 MR. CRANDALL: It's just that a pool is -- when 7 you describe pool, you're supposed to identify all the 8 hydrocarbons that are common to it. And if it's at least as 9 likely that the Sag River's in pressure communication with the l0 Ivishak (indiscernible) and hydrocarbons exist in the Sag River 11 (indiscernible) . 12 MR. DUKES: Would you describe all the pools 13 that are common to it or just those pools that are producible? 14 MR It' wh t would CRANDALL C it t . : ommon o . s a 15 be considered in evaluating pressure maintenance. 16 MR. DUKES: But I would have thought it would 17 have only included those pools that you think are going to be 18 producible as opposed to every pool. 19 MR. CRANDALL: No, that's not how you do it. 20 MR. DUKES: Do you have a definition or 21 something you mean that you're referring to? 22 MR. CRANDALL: Yeah, we do. It's in our 23 statutes. 24 COMMISSIONER SEAMOUNT: I guess if we're going 25 to continue this conversation, I think we -- in deference to METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • 29 • ~~ 11 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the court reporter we need to be using the microphone here so why don't you come on up, Bob. MR. CRANDALL: Actually, I've got to get the statutes. here. COMMISSIONER TAYLOR: I have a copy of it right MR. CRANDALL: Oh, do you? Okay. COMMISSIONER TAYLOR: Pull out all my extraneous pieces of paper. Right there. MR, CRANDALL: Okay. Pool means an underground reservoir..... MR. MINTZ: Bob. MR. CRANDALL: Pool means an underground reservoir containing or appearing to contain a common accumulation of oil or gas. Each zone of a general structure, which is completely separated from any other zone in the structure, is covered in the term, pool. Basically, what that means is if they're in pressure communication, they're in the same pool. And I think from what we talked about today, while that issue is indeterminate, that at least it's likely that they are as they aren't. So, unless there's a reason to not do it..... (Side conversation) MR. MINTZ: If I can make a suggestion. I mean if the applicant wanted additional time to consider that METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • 30 1 question, the Commission could accept a written supplementary 2 response after the hearing. 3 COMMISSIONER SEAMOUNT: It doesn't have to be 4 decided right now, is that what you're saying? 5 MR. MINTZ: Right. 6 COMMISSIONER SEAMOUNT: Okay. 7 (Side conversation) 8 MR. FELL: We don't need to submit as 9 supplemental information. We're willing to have the Sag 10 incorporated into the pool. Is that okay, Bob? 11 MR. CRANDALL: Uh-hum. 12 MR. FELL: Yeah. Okay. 13 MR. CRANDALL: There is one additional thing 14 then We'll need a estimate of the volume of as so estimate . g , 15 the full volume of gas of the pool. And you can supply that to 16 us later. 17 MR. RATHKE: Okay. 18 MR. MINTZ: If the applicant could suggest a 19 date by which that could be supplied? Then the Commission 20 could establish the closing date for the record. 21 (Side conversation) 22 MR. FELL: We'll submit the estimate by the end 23 of next week, which would be the 2nd of June. 24 COMMISSIONER SEAMOUNT: Thank you, Mr. Fell. 25 Okay. We are -- I think it's appropriate to go ahead and close METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • • 31 r-~ ~~ ~~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the meeting. I thank you all for coming to the second meeting. You gave a very good presentation. Thanks again. (Off record 10:24 a.m.) END OF PROCEEDINGS METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • • 1 2~ 3, 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ~.J C E R T I F I C A T E UNITED STATES OF AMERICA) ss . STATE OF ALASKA ) I, Laura Ferro, Notary Public in and for the State of Alaska, and Reporter for Metro Court Reporting, Inc., do hereby certify: That the foregoing Alaska Oil & Gas Conservation Commission Public Hearing, was taken before myself on the 25th day of May 2000, commencing at the hour of 9:10 o'clock a.m., at the offices of Alaska Oil & Gas Conservation Commission, 3001 Porcupine Street, Anchorage, Alaska; That the hearing was transcribed by myself to the best of my knowledge and ability. IN WITNESS WHEREOF, I have hereto set my hand and affixed my seal this 27th day of May 2000. otary Public in and for Alaska My commission expires: 05/03/01 -, ~_; . , METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 l ALASKA OIL AND GAS CONSERVATION COMMISSION 2 PUBLIC HEARING 3 In Re: ) 4 ) EIDER POOL, ENDICOTT FIELD, ) 5 DUCK ISLAND UNIT POOL RULES AND ) AREA INJECTION ORDER ) 6 ) 7 TRANSCRIPT OF PROCEEDINGS 8 Anchorage, Alaska 9 April 6, 2000 9:10 o'clock a.m. 10 APPEARANCES: 11 Commissioners: MR. ROBERT N. CHRISTENSON, CHAIRMAN 12 MS. CAMMY TAYLOR MR. DAN SEAMOUNT 13 14 15 ~R~G1~AC 16 . 17 ~~' ~A 18 APR 17 zoos 19 Alaska tail & Gas Cons. Commiss~an 2 o Anchorage 21 22 23 24 25 METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • • 2 • 2 3 4 5i 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 • P R O C E E D I N G S (On record 9:10 a.m.) CHAIRMAN CHRISTENSON: Good morning. We would like to call this hearing to order. This hearing is for the purpose of accepting testimony on the Eider Pool, Endicott Field, Duck Island Unit, for pool rules and area injection order. The date is April 6th, year 2000. It's about 10 minutes after 9:00, at 3001 Porcupine Road, the Alaska Oil and Gas Conservation Commission. The notice was published in the Anchorage Daily News on March 3, 2000. The Commission will receive both sworn and unsworn testimony. However, it will give greater weight to sworn testimony. All persons wishing to testify will be sworn. Each witness shall state the witness's name and who he wishes to represent. Each witness who wishes to give expert testimony shall state the witness's qualification. The Commission will rule on whether the witness qualifies as an expert. The applicant will be asked to present the testimony first. All those wishing to present testimony will be heard next. No cross examination of the witnesses will be accepted under the decision of the Commission. And if disclosure of otherwise confidential information is required, the Commission will limit the condition and disclosure to the extent necessary to comport with applicable constitutional, statutory, and common law doctrines that protect trade secrets within the METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • 3 • 2 3 4 5 6 7 8 9 10 11 12 13' 14 15 16 17 18 19 20 21 22 23 24 25 ~~ meaning of AS 45.50.940 and other commercially sensitive, confidential, and proprietary information. So, we'll need to discuss that if that's an area we need to look at. Without further adieu, then, I guess we need to get the witness list and begin the testimony. Mr. Osborne, I believe you're leading off? MR. OSBORNE: Right. Good morning. My name is Gary Osborne. I am the subsurface manager for BP Exploration Endicott Field in Alaska. CHAIRMAN CHRISTENSON: can we swear you in? MR. OSBORNE: Sure. CHAIRMAN CHRISTENSON: right hand, please? (Oath administered) MR. OSBORNE: I do. • Before you go further, Will you raise your CHAIRMAN CHRISTENSON: Okay. Please proceed. MR. OSBORNE: It's duly noted that BP is the operator of Endicott Field. Therefore, it is testifying on behalf of the recommendations today. This hearing has been scheduled in accordance with statutes 20 AAC 25.520 and 20 AAC 25.540 in order to consider evidence relevant to the establishment of pool rules, and, notably, an area injection order for the Eider Pool. Our letters dated January 27, 2000, contain for the METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • 4 1 formal applications both for the pool rules and the area 2 injection order related to the implementation of a water flood 3 in the Eider Pool. Supplemental information was also provided 4 to the AOGCC in our later dated February 17, 2000. 5 Specifically, BP requests the Commission to approve 6 several proposals, which are considered necessary for the 7 development of Eider Field. These are, one, the initiation of 8 water injection for enhanced oil recovery; two, surface 9 commingling of production from the Eider Pool with the Endicott 10 and Sag Delta North Pools; and, three, exemption to the gas oil 11 ratio limit as set forth in Statute 20 AAC 25.240(b). 12 BP is presenting testimony today in support of our 13 application. We will discuss our present understanding of the 14 Eider geological and reservoir description, the reservoir 15 performance history, predictions of future reservoir 16 performance, and the plan of field development. Testimony 17 related to the geological description will be presented by Bill I 18 Rathke. Eric Ding will present testimony related to the 19 reservoir engineering and development considerations of Eider. 20 Each of the witnesses is prepared to respond to questions ', 21 concerning his testimony and related exhibits. 22 Regarding confidentiality, some of the materials to be 23 presented today and in the original application are 24 confidential, and we request that the public be excluded from 25 hearing this confidential information. The main reasons for METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • 5 • 2 3 4 5 6 ~ 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ~~ `._J requesting this information to be held confidential .are, one, ', issues related to adjacent leases; and, two, precedent setting nature of premature release of proprietary well information. BP considers the documents could be released by the Commission upon the date of release of the remaining Eider well data in 2001. With that, if there's any questions, I'd be happy to answer regarding the confidentiality. We will be showing 11 figures, displays in overhead form. And we would at this point like to go into the technical discussion. CHAIRMAN CHRISTENSON: Okay. Is your presentation structured so that we can have a confidential part of it and a non-confidential part? MR. OSBORNE: We will refer specifically and directly to the information that is presented visually. So, we don't see a meaningful way we can differentiate between the testimony and the figures, themselves. MS. TAYLOR: I have some questions actually about the confidentiality, if we could go through that. The January 27th area injection order, as I understand it, it has -- there's no request for confidentiality with that. MR. OSBORNE: The figures should have been stamped confidential. MS. TAYLOR: Show Eider Field area map and a completion diagram -- well completion diagram. They're not METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 6 1 stamped confidential. 2 MR. OSBORNE: Then if we show that today, we 3 won't request that that be..... 4 MS. TAYLOR: Okay. The pool rules application, 5 the entire application, just about, is stamped confidential. 6 The geologic description, the reservoir description, the 7 production history, the development plans, everything here is 8 confidential? 9 MR. OSBORNE: Right. In reference to the -- my 10 primary point, that is data that needs to be held tight and is 11 protected in terms of current statutes through well data given 12 the issues that we have with offsetting acreage and operators, 13 we feel that we would be premature to release that data now. 14 MS. TAYLOR: So, .are you maintaining that the 15 economic value that you have in this information, that it would 16 be lost if it was released? 17 MR. OSBORNE: It's at risk. 18 MS. TAYLOR: And then with respect to the 19 remaining exhibits, Exhibit A is a location map. It's a 20 surface description of the Eider Field. You're requesting that 21 that be kept confidential, as well? 22 MR. OSBORNE: If it is marked confidential, we 23 would maintain that. If it's not, then we would not. But in 24 so far as it is part of the pool rules, we would assume it 25 wouldn't be held confidential. METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • 7 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MS. TAYLOR: On February 4th, you also followed up with a supplemental Exhibit A that has attachments 5, 6, and 7. One is -- let's see, it's the same as -- yeah, it's a reservoir type log. Then there are two others, structure map and cross section, and then the response to the questions that were submitted on the 17th of February. They're exhibits. And all those are confidential? MR. OSBORNE: Yes. MS. TAYLOR: Are you also asking that the Commission issue an order that it be held confidential? MR. OSBORNE: If the order references or states information that has been requested as confidential, then certainly we would expect the Commission to be consistent with that ruling. MS. TAYLOR: I would suggest that we take a recess and look through these individually and make a determination before we go on. CHAIRMAN CHRISTENSON: Okay. Is that all right with you, Dan? MR. SEAMOUNT: It's fine with me. MR. CHRISTENSON: Okay. We'll recess. (Off record) (On record) CHAIRMAN CHRISTENSON: We would like to go back on the record here, back in session. What we decided is we METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • 8 C~ • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 would like to have an executive session here with the presenters to talk about this confidentiality issue in more detail. And don't know how long that will take but that's. what we would like to do now. So, Gary, do you want to check over the audience and see who goes and who stays? MR. OSBORNE: I would leave that to your discretion, Mr. Christenson. CHAIRMAN CHRISTENSON: I don't think we can do that. (Off record comments) MR. OSBORNE: Without knowing everybody in the audience (indiscernible - away from microphone). CHAIRMAN CHRISTENSON: Well, do you not want to be here -- you don't want the ARCO people here, is that it? MR. OSBORNE: Well, we think this is between the AOGCC and BPXA. So, anybody else is extraneous to the discussion and doesn't need to be here for that. CHAIRMAN CHRISTENSON: Okay. So you don't want DNR either? MR. OSBORNE: Well, we have separate discussions with DNR. So..... CHAIRMAN CHRISTENSON: Well, they're all right as far as we're concerned, unless you want to exclude them. MR. OSBORNE: I mean I don't object to DNR METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • ~ 9 • I~ I~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 being here. UNIDENTIFIED MALE SPEAKER: No. CHAIRMAN CHRISTENSON: Okay. So we would like to excuse the ARCO folks. (Executive session portion) CHAIRMAN CHRISTENSON: Okay. For the record, we ended the executive session. We're now into regular session. And what the Commission has decided to do is to ask BP to furnish additional information with regard to the request for confidentiality in 10 days, and then the Commission will make a decision on the -- make a decision on that, and the hearing is continued until..... MS. TAYLOR: May 25th. CHAIRMAN CHRISTENSON: .....May 25th. We'll reconstitute the public hearing. So, is there any other business before us this morning? In that case, we are adjourned. (Off record 10:23 a.m.) END OF PROCEEDINGS METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 • 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 U • i C E R T I F I C A T E UNITED STATES OF AMERICA) ss . STATE OF ALASKA ) I, Laura Ferro, Notary Public in and for the State of Alaska, and Reporter for Metro Court Reporting, do hereby certify: That the foregoing Alaska Oil & Gas Conservation Commission Public Hearing, was taken before Cari Ann Ketterling on the 6th day of April 2000, commencing at 9:10 o'clock a.m., at the offices of Alaska Oil & Gas Conservation Commission, 3001 Porcupine Street, Anchorage, Alaska; That the hearing was transcribed by me to the best of my knowledge and ability. IN WITNESS WHEREOF, I have hereto set my hand and affixed my seal this 11th day of April 2000. Notary Public in and for Alaska My commission expires: 05/03/01 >. ,_, METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1650 Anchorage, Alaska 99501 (907) 276-3876 TESTIMONY FOR EIDER FIELD RULES C ALASKA OIL AND. GAS CONSERVATION COMMISSION APRIL 6, 2000 HEARING AND MAY 25, 2000 CONTINUANCE I. INTRODUCTION (Gary Osborne) My name is Gary Osborne. I am the Subsurface Manager for Endicott for BP Exploration (Alaska) Inc., the operator of the Endicott field. This hearing continuance has been scheduled in accordance with statutes 20 AAC 25.520 and 20 AAC 25.540 in order to consider evidence relevant to the establishment of pool rules and an area injection order for the Eider Oil Pool. Our letters dated January 27, 2000 contained the formal applications both for the pool rules and area injection order, related to the implementation of a waterflood in the Eider Pool. Supplemental information was also provided to the AOGCC in our letter dated February 17, 2000. Further, as a follow up to the initial hearing on April 6, 2000 , BP clarified and modified its position regarding the confidentiality of certain data within the supporting testimony to the establishment of pool rules. This position was discussed with Commission staff at a meeting on April 13, 2000 and detailed in our letter of April 17, 2000. Specifically, BP requests the Commission to approve several concepts which are considered necessary for the development of Eider. These are: 1. Initiation of water injection for enhanced oil recovery. 2. Surface commingling of production from the Eider Pool with the Endicott and Sag Delta North Pools. 3. Exemption to the gas-oil ratio limit as set forth in 20 AAC 25.240(b). BP is presenting testimony today in support of our application. We will discuss our present understanding of the Eider geological and reservoir description, reservoir performance history, predictions of future reservoir performance and the plan of field development. Testimony related to the geological description will be presented by Bill Rathke. Eric Ding will present testimony related to the'reservoir engineering and development considerations of Eider. Each of the witnesses is prepared to respond to questions concerning his testimony and related exhibits. ~ ~ Some of the materials to be presented today are confidential, and we request that the public be excluded from hearing this confidential information. As discussed with your staff we have endeavoured to keep this confidential information to a minimum. The main reasons for requesting this information be held confidential are: -Issues related to adjacent leases -Precedent setting of premature release of proprietary well information For the avoidance of doubt, we are claiming confidentiality of this data under AS 31.05.035. BP considers the documents could be released upon the date of release of the remaining Eider well data, in February 2001. II. GEOLOGY (Bill Rathke) Introduction My name is Bill Rathke and I will be presenting testimony on the geological description of the Eider Field on behalf of BP Exploration. I am the BP geophysicist responsible for Endicott Field and related areas. I received a Bachelor of Arts degree in Geological Sciences from Dartmouth College and a Master of Science in Structural Geology from Cornell University. I have worked as a geophysicist in the oil industry for 22 years. The last 19 years have been with BP and predecessor companies in several locations in the U.S. and overseas. Geological Description Exhibit A is a location map for the Eider Field showing the extent of the exploitable hydrocarbon-bearing reservoir, bounding faults, and existing wells used for field delineation. Also shown are the Eider Field's relationship to the Endicott and Sag Delta North Fields and the Participation Area outline for which the field rules for the Eider reservoir would apply. The Eider Field was discovered in 1998 and underlies state leases located approximately 1-1/2 miles offshore. The Eider Field is a fault controlled anticlinal structure truncated at the top by the Lower Cretaceous unconformity, and contains producible oil below a gas cap within the Triassic Ivishak Formation. These hydrocarbon bearing zones cover an area of approximately 300 acres. The delineation of the Eider reservoir is based on two completed wells (2-56A/E101 and 2-30A/E102) and five additional sidetracks or plugbacks (2-56/EI-01, 2-56A/PB1, 2- 56A/PB2, 2-30A/PB1, 2-30A/PB2). As shown in Exhibit A, these seven reservoir penetrations provide a wide distribution of control points encompassing all three of the major fault blocks of the field. The data from these wells consists predominantly of logging-while-drilling (LWD) log data and repeat formation test data (RFT). The log and RFT data were used to determine petrophysical and reservoir properties. Structural control and fault identification are based on the interpretation of the Endicott MPI 3D seismic survey. The seismic dataset is of fair to good quality in the area of the Eider Field. The major bounding faults are clearly resolved and are considered to be accurately located. The hydrocarbons in the Eider Field are trapped in sandstones and conglomerates of the Ivishak Formation, correlative to Prudhoe Bay Ivishak Zone 2 and to Sag Delta North Ivishak. Exhibit B, the Eider type log, illustrates the formation and zonal nomenclature. The formation has been subdivided into an Upper Sand, a Middle Shale containing a sandstone unit, and a Lower Sand, similar to the Sag Delta North Field. Exhibit C summarizes the dominant lithologies and interpreted depositional environments of the reservoir section. The depositional environments are expected to be analogous to Sag Delta North, based on log and cuttings data. An overall regressive sequence is interpreted, ranging from upper shoreface or marine influenced fluvial/distributary in the lower sand, floodplain or bayfill in the middle shale, to a predominantly fluvial environment in the upper sand. Core data was not obtained in any of the Eider wells. Individual well averages and averages of well porosity, net to gross, and 1-Sw were multiplied to acre-ft and then divided by formation volume factor of 1.36 to estimate oil in place. The acre-ft calculations were based on isopachs of net pay of the light oil column, using the fluid contact data from the wells. The total original oil in place is 13.2 million barrels. More than half of the oil in place is contained in the Lower Sand unit. A significant gas cap also exists with an estimated volume of 33 bscf originally in place. III. RESERVOIR ENGINEERING (Eric Ding) Introduction My name is Eric Ding and I will be presenting testiriAOny on the reservoir engineering and development considerations for the Eider Field on behalf of BP Exploration. I received a Bachelor's of Science in Chemical Engineering from the University of Oklahoma and a Master's of Science in Chemical Engineering from the University of Wisconsin-Madison. I have worked for BP since January of 1997 as a Petroleum and Reservoir Engineer. I have been responsible for the Reservoir Engineering for the Eider Field since July, 1998, and am intimately familiar with the information to be presented. My testimony will consist of: an overview of petrophysical properties; an overview of past reservoir performance; review of the reservoir studies describing the depletion mechanisms; discussion of performance predictions, surveillance plans and other development issues. PetrophYsical Properties In the absence of core data, porosity was calculated from open hole logs, and permeability was estimated based on permeability-porosity functions derived from Prudhoe Bay Zone 2 Ivishak core data. Exhibit B summarizes the average zonal petrophysical properties. The average porosity is 21 % and the average permeability is ~ ~ 134 mD in the oii column. The permeability varies by zone, from ~30 mD in the Lower Sand to 300 mD in the Middle Shale Sands and Upper Sand. The Kv/Kh ratio is expected to be ~0.1 for all sands. The net pay at each well was estimated using a shale volume cutoff of 0.4. The average net-to-gross ratio is 0.72 . The water saturations were determined from open hole logs. The average water saturation was calculated to be 36% using the Archie model. Relative permeability data is not available for Eider. Oil water and gas oil relative permeability data developed for the Prudhoe Bay Zone 2 was used for the Ivishak reservoir modeling studies. The initial water saturation used was 36% with a residual oil to water of 20%. The absolute residual oil to gas was 3%, with an effective residual to gas over the time frame investigated of 25%. Surface separator samples were collected from 2-56A/E101 and laboratory analysis yielded an initial solution GOR of 769 scf/bbl at the saturated bubble point of 4635 psia. API gravity of the 2-56A/E101 samples was measured at 23.1-23.8°, similar to Endicott Kekiktuk crude. - Production History Two wells have been drilled to date, 2-56A/E101 ("Eider 1 ") and 2-30A/E102 ("Eider 2"). Both produce from the lower sand unit only, Eider 1 from the Central Fault Block and Eider 2 from both the Central and Western Fault Blocks. The production history to date from the Eider Reservoir is shown in Exhibit D. Well 2-56A/E101 was brought on production on June 1, 1998 at 3000 stbopd. After two months of near solution GOR production, the GOR began to steadily increase. Well 2-30A/E102 was brought on production on January 25, 1999 at 8500 stbopd, 750 scf/stb, and only trace water. The GOR began to rise quickly, reaching 5800 scf/stb by the end of February. When 2- 30A/E102 was shut-in at the end of the 120 day test period it was tested at 2365 bopd, 9000 GOR, and 2% WC. Well 2-56A/E101 was produced intermittently throughout this period, and was shut in on September 30, 1999 for reservoir management. The initial pressure of the field was 4635 psia at the GOC depth of 9700' TVD ss, which is therefore the bubble point pressure. The measured field pressure was 3856 psia in November, 1999, shortly after the field was shut-in. Good pressure communication has been seen between the two wells, as shown by static pressure and RFT data. Development Plans A full field reservoir simulation model was developed to study the performance and to develop a depletion plan for the field to maximize economic recovery. The VIP- EXECUTIVE reservoir simulator was used to perform the study. Reservoir performance was history matched to the available production data. Exhibit E shows simulator • generated rates versus actual field data. The OOIP estimate has been reduced to 13.2 mmstbo, from the original OOIP estimate of 18 mmstbo. The history match indicates the presence of fewer hydrocarbons then previously thought, resulting in a reduction of hydrocarbon pore volume. Predictive runs were then undertaken to determine the production plan which would maximize economic recovery. Primary depletion, water injection, and gas injection were the options investigated in depth. Voidage replacement with water injection is considered to be the most beneficial and efficient approach to enhanced recovery, producing over 5 mmbbls within the next 10 years. Water injection is predicted to suppress the free gas production, preserving reservoir energy and preventing the field from being shut-in due to uncompetitive GOR. BP requests that waterflood implementation be authorized within the pool rules based on the recovery benefits to be gained, and that an Area Injection Order be issued. Reservoir simulation shows an expected incremental increase in ultimate recovery of 1.5 to 3.0 MMstb of oil as a result of the proposed water injection into 2-56A/E101. Recovery from primary depletion is estimated at 15%, while recovery with water injection is estimated at 27-38%, an incremental recovery of 12-23%. Initial production will begin upon implementation of the waterflood, with an expected initial rate of 1500 bopd. Maximum water injection rates are expected to range from 15,000 to 20,000 barrels of water per day. Water injection will then match voidage, rather then attempting to repressurize the reservoir to original pressures. Simulation shows little reservoir benefit to re-pressurization to~he bubble point, but significant potential downside due to resaturation of the gas cap. The proposed strategy will maximize sweep in the lower sand unit, which holds the largest single amount of reserves in the reservoir. Because this sand has the lowest permeability, the high angle section in Eider 2 will enable reserves to be maximized in this sand body. Once the lower sand reserves have been maximized the other units will be considered and accessed as appropriate. The higher permeability of these sands makes them more susceptible to early gas and water breakthrough, and accessing them later will avoid putting the reserves in the lower sand at risk. This two stage strategy will maximize the reserves in the overall reservoir. The potential ultimate recovery impacts of additional drilling within the delineated portion of the reservoir are seen to be small, and no further penetrations within the Eider Oil Pool are foreseen at this time. The added reserves of a third well are predicted at less then 2 million barrels maximum, with a P50 estimate of 0.8 mmstbo. This will be reviewed as the Pool matures and more information is gathered. At this time it is believed that 160 acre spacing is sufficient for the two well field development. • BP requests, as a result of the pressure maintenance project proposed, an exemption to the gas-oil ratio limit as set forth in 20 AAC 25.240(b). While BP expects the GOR to eventually be suppressed by water injection, some formation gas production is expected to occur. Voidage replacement of the produced fluids with water injection will be sufficient to maintain reservoir energy. BP requests- that one pressure survey be required in the field per year, rather then one from each producing government section. Well 2-30A/E102 produces from two different government sections, but the requirement to obtain isolated statics from' each producing interval in the well would present significant risk to operations. Therefore, BP proposes a minimum of one survey in the field each year for reservoir management. • Request to resume public session IV. Well Planning (Eric Ding) The Eider casing and cementing requirements are identical to the Endicott Pool requirements. Wells drilled to the reservoir interval encounter the exact same formations prior to entering the pay zone as the Endicott wells. It is recommended that Endicott Conservation Order No. 275, Rule 4 or similar be adopted for the Casing and Cementing Requirements with modification as shown in Exhibit J. Exhibit K shows a typical well configuration for Eider. V. Facilities (Eric Ding) Development and continued production of the Eider Pool is dependent upon utilizing the existing production and injection facilities of the Endicott field. This rQquires commingling of Eider and Endicott crude prior to processing and metering. Eider production will be allocated on the basis of test separator measurements of oil and gas. Water volumes will be determined by measurement with an AGAR watercut meter. Each Eider well will be tested at least once monthly for a minimum of 4 hours at a stabilized flow rate. VI. PROPOSED EIDER FIELD RULES (Gary Osborne) This concludes our technical presentation. We would be happy to address any questions you might have. For your convenience and consideration, we have assembled some proposed pool rules for the Eider field. ~ ~ The rules hereinafter set forth apply to the following described area of the proposed expanded Duck Island Unit, Eider Field, referred to in this order as the affected area: Eider Field Rules UMIAT MERIDIAN T12N R16E Section 27: All state lands Section 28: NE 1 /4 of SE 1 /4 Rule 1 FIELD and POOL NAME. The field is in the proposed expanded Duck Island Unit and the pool is the Eider Pool. Rule 2 POOL DEFINITION. The Eider Oil Pool is defined as the accumulation of hydrocarbons that are common to and which correlate with the accumulation in the BP Exploration 2-56A/E101 well between the measured depths of 17,338 and 17,928 feet. Rule 3 WELL SPACING. (a) The Commission may administratively approve modifications to well spacing when justified. , Rule 4 CASING AND CEMENTING REQUIREMENTS. (a) Surface casing, to provide for proper anchorage, for preventing uncontrolled flow and to protect the well from the effects of permafrost thaw-subsidence or freeze-back loadings, shall be set at least 500 measured feet below the base of the ice-bearing permafrost. Sufficient cement shall be used to fill the annulus behind the casing to at least the mud line. (b) Alternate means for maintaining the integrity of the well from the effects of permafrost thaw-subsidence and freeze-back may be administratively approved by the Commission upon application and presentation of data which show the alternatives are appropriate, based upon accepted engineering principles. (c) Conductor casing is not required. (d) Formation leak-off tests are not required below structural and intermediate casing. Rule 5 DIVERTER SYSTEM. A diverter system is not required on the structural casing. Rule 6 COMPLETION PRACTICES. Wells completed for production or injection in the Eider Participating Area may utilize casing strings or liners cemented through the productive intervals and perforated, ~ ~ slotted liners, screen wrapped liners or open hole methods, or combination thereof. The Commission may administratively approve alternate completion methods where appropriate. Rule 7 PRESSURE SURVEYS. (a) Prior to regular production, a pressure survey shall be taken on each well. (b) The datum for all pressure surveys is 9,700 feet subsea. (c) A minimum of one bottom-hole pressure survey shall be run in the field annually. The survey in part (a) of this rule may be used to fulfill the minimum requirements. (d) Pressure survey, as used in this rule may mean a static bottom-hole pressure survey, pressure transient survey, or open hole pressure tests such as repeat formation tests and drill stem pressure tests. (e) Data from all pressure surveys shall be filed with the Commission on Form 10-412 within 45 days after the survey is taken. Rule 8 POOL-WIDE WATERFLOOD PROJECT. (a) A waterFlood project is approved for the Eider Pool. (b) Well 2-56A/E101 is approved as a water injection well in the Eider Pool. (c) The Commission may approve additional wells as water injectors upon written application. (d) Annual fluid withdrawal from the Eider Pool shall not exceed annual fluid injection by more than 10%. Rule 9 GAS-OIL RATIO EXEMPTION. Wells producing from the Eider Pool are exempt from the gas-oil ratio limits set forth in 20 AAC 25.240(b). Rule 10 COMMON PRODUCTION FACILITIES AND COMMINGLING. (a) Production from the Eider Pool may be commingled on the surface with production from the Endicott Oil Pool prior to custody transfer. (b) Each producing well completed in the Eider Pool shall be tested at least once a month for a minimum of four hours at a stabilized flow rate. (c) The Commission may require more frequent or longer well tests if the summation of the calculated monthly production volume for all pools is not within 10% of the actual LACT metered volume. (d) The operator shall provide the Commission with a well test and allocation report at the end of each calendar year. The report will consist of a thorough analysis of all surveillance data relative to the well test system and the resulting allocation factors. Rule 11 GAS OFFTAKE. (a) Gas produced from the Eider Participating Area may be utilized as fuel in the Endicott Field facilities. (b) Gas produced from the Eider Participating Area not utilized as fuel will be injected into the Endicott Pool gas cap. ~ ~ Rule 12 ADMINISTRATIVE ACTION. On its own motion or upon written request, the Commission may administratively amend this order so long as the change does not promote waste, jeopardize correlative rights, and is based on sound engineering principles. • LIST OF EXHIBITS Exhibit A Eider Field Location Map Exhibit B Eider Field Reservoir Type Log Exhibit C Eider Field Reservoir Lithologies and Interpreted Deposition Environments Exhibit D Eider Production Profile Exhibit E History Match: Simulated Rates vs. Field Data Exhibit F History Match: Simulated Pressure vs. Field Data (Confidential) Exhibit G Eider Field Structure Map (Confidential) Exhibit H Eider STOOIP by Region (Confidential) Exhibit I Depletion Plan Comparison (Confidential) Exhibit J Casing and Cementing Requirements Exhibit K Eider Wellbore Diagram Eider Pool Rules Application Exhibits -Reasons for ~Sonfidentiality Exhibit A :This Exhibit contains interpretative information about internal Field structural style derived from proprietary well and seismic data. It may or may not be directly applicable to adjacent structures which cross lease boundaries and as such is deemed confidential. It will be released when all well data has become Public. Exhibit B : "The Oi!-Down-Tom in this Exhibit is particularly confidential. It may have ramifications for analagous prospects in adjacent acreage and beyond and has been derived from proprietary well and seismic data. It may or may not be directly applicable to adjacent structures which cross lease boundaries and as such is deemed confidential. It will be released when all well data has become Public. Exhibit C :Upon reflection , we would be willing to release this Exhibit. Exhibit D :The internal distribution of Oil-In-Place in Eider is only relevant to the Eider Owner and the AOGCC and is proprietary data. The fault segmentation and reservoir compartmentalization described may or may not impact other analagous prospects. It will be released when all well data has become Public. Exhibit E :Not confidential Exhibit F1 : Upon reflection , we would be willing to release this Exhibit. Exhibit F2 : The matching of pressure data held there-in is proprietary interpretative data of a wholly owned BP Asset. It will be released when all well data has become Public. Exhibit G :Confidential because it reveals the time value of recovery by waterflooding. It will be released when all well data has become Public. Exhibit H :Not confidential Exhibit I :Not confidential Exhibit J :Not confidential L' Eider Pool Rules Testimony Exhibits -Reasons for Confidentiality Exhibit A :Not confidential Exhibit B :Not confidential Exhibit C :Not confidential Exhibit D :Not confidential Exhibit E :Not confidential Exhibit F :The matching of pressure data held there-in is proprietary interpretative data of a wholly owned BP Asset. It will be released when all well data has become Public. Exhibit G :This Exhibit contains interpretative information about internal Field structural style derived from proprietary well and seismic data. It may or may not be directly applicable to adjacent structures which cross lease boundaries and as such is deemed confidential. It will be released when all well data has become Public. Exhibit H :The internal distribution of Oil-In-Place in Eider is only relevant to the Eider Owner and the AOGCC and is proprietary data. The fault segmentation and reservoir compartmentalization described mayor may not impact other analagous prospects. It will be released when all well data has become Public. Exhibit I :Confidential because it reveals the time value of recovery by waterflooding. It will be released when all well data has become Public. Exhibit J :Not confidential Exhibit K :Not confidential r C~ z z > > ~ c a Z m g W ~, o - S Y l] U > > ~ O a NK-23 ~} EXHIBIT A TO EIDER POOL RULES TESTIMONY SD-08 RESOLUTION IS. f" - - - ~ -66/EI-01 ~ 2-56A/E/0 I ~~~ I 2-30A/E/02 ~56A/P81 I ~ ~ _ _ 2.66A/PB2 -t ~ 2-30A/PB1 ~ 2-30A/P82 0 1000 2000 FT. 1 Eider 389 Delta 1 North ~rt MPIV '. ~_.. F~~ s ~ • Re e~OO~ ':.. /~. ~~~~ ~ SDI C~ ~ DUCK ISI _ i ND UNIT `~.Y j~ 0~2MIlea EIDER FIELD LOCATION MAP ~~ • EXHIBIT B TO EIDER POOL RULES TESTIMONY ~ ~ EIDER FIELD Composite EIDER 1 GROSS NET CALC a CALC s ~ LITHOLOGY a "- ZONATION Gamma Ray MD GROSS I r ~ (~ ~ ( Z ~ O Shale, tight. _ ~ HRZ w ~ ~ U O lJ.. Lower Cret ceous Unconformit y O W > SAG 0-75 0.80 0.24 0.80 Fine-grained, glauconitic i ~ sandstone, non-product ve. Z YO j ~ SHUBLIIC 0-125 0.00 0.00 0.00 Calcareous shale, tight. _~ ~O ~ 17,338 Pebble to cobble conglo- Q merate, with variable ~ UPPER SAND 60-125 0.80 0.20 0.80 amounts of thin, inter- bedded sandstones. ~ Z a Y ~ Q ~- MIDDLE SHALE 75-90 0.50 0.16 0.65 Shale with sandy n l m r te g . co o e a = Q ~ ~ ~ Fine- to medium-grained O LOWER SAND 80-125 0.80 0.21 0.65 sandstone, locally pebbly - V Eider productive interval. - 17 928 IcAVII< GOC at 9690 TVD ss shale, tight. Z Pre-Kavik O Z Q Unconfonnity 1___: __ ~~ Finely crystalline lime- ~ w Q t; I -` stone, dolomitic and oolitic LL ? :~-- i ~? in part, poor poro-perm, m ~ ~ ~~ tght. t a J O 150 ft tom.. ,, EIDER FIELD RESERVOIR TYPE LOG EXHIBIT C TO EIDER POOL RULES TESTIMONY w EIDER Com osite LITHOLOGY DEPOSITIONAL a ~ FIELD Gamma Ray ENVIRONMENT ZONATION UPPER PRIMARILY SANDSTONE WITH FLUVIAL OR SAND "''~" ~'~ MINOR SILTSTONE OR MUDSTONE DISTRIBUTARY CHANNEL Z v ~ Y ~ MIDDLE MUDSTONE WITH MINOR FLOODPLAIN, BAYFILL OR Q Q I- SILTSTONE VERY SHALLOW MARINE ~ SHALE AND SOME SANDSTONE ~ ~ > w 0 LOWER SANDSTONE WITH MARINE UPPER SHOREFACE OR a ~ SAND MINOR MUDSTONE FLUVIAUDISTRIBUTARYOHANNEL KAVIK MUDSTONE MARINE 150 ft EMG 1199 EIDER FIELD RESERVOIR LITHOLOGIES AND INTERPRETED DEPOSITIONAL ENVIRONMENTS ~ s Exhibit D to Eider Pool Rules Testimony 2-56A/EI01 Production 16000 700 q 14000 600 a 12000 500 ~ 0; ~ 10000 400 ~ ,D 8000 6000 300 7 ;; 200 U ,~ 4000 a 2000 100 O 0 0 May-98 Jul-98 Sep-98 Nov-98 Jan-99 Mar-99 May-99 Jul-99 Sep-99 2-30A/EI02 Production 12000 ---_ _. _ _.__ ..--.__ ._ _ __..._ ..__ __ _ _ ._----,.__. .._._.-----...._.. 400 a -GOR 350 10000 -Oil Rate -Cum Oil 300 a ~ 8000 250 ,~ 6000 200 O a =' 4000 150 ~ U d is a 100 2000 50 0 0 May-98 Jul-98 Sep-98 Nov-98 Jan-99 Mar-99 May-99 Jul-99 Sep-99 Field Production 16000 ----..__.__._ ----.----------_ _...____ __-_-_ -_._-.. 1,000. ~ ta00o -Oil Rate 900. a -GOR 800. y 12000 -Cum Oil 700. ~ ~ 10000 600. ~ ,0 8000 500. ~ 6000 " 400. ~ : Eider 2 Shut-In 300 ~ U m 4000 CL ! ~ - 200. 2000 ~ \ Eider 2 on Produ ^+~ ~~ 100. 0 0. May-98 Jul-98 Sep-98 Nov-98 Jan-99 Maz-99 May-99 Jul-99 Sep-99 Eider Production Profile Exhibit E~o Eider Pool Rulesestimony Oil Rate and Cumulative Oil Production 10000 .------__.__...~_..__.._. _ _ __ . __ _ _ __.___..._.__._._ _ . ___. ^ 1000 _ Oil Rate (Simulator) ° 9000 900 o Oil Rate (Field) 8000 -Cum Oil (Simulator) 800 7000 ^ Cum Oil (Field) 700 ,1 ~ 6000 600 ~ y `/ 5000 500 ~ ~, 04 4000 400 I ~ ~ U 3000 ° 300 2000 200 1000 ° ° ° 100 0 0 Apr-98 Jul-98 Nov-98 Feb-99 May-99 Aug-99 Dec-99 GOR and Cumulative Gas Production 20000 18000 16000 14000 12000 10000 a ~ 8000 6000 4000 2000 0 GOR (Simulator) o GOR (Field) Cum Gas (Simulator) ^ Cum Gas (Field) o ~ 18000 16000 14000 12000 8 10000 ~ 8000 t7 E 6000 U 4000 2000 0 Apr-98 Jul-98 Nov-98 Feb-99 May-99 Aug-99 Dec-99 History Match Simulated Rates vs. Field Data • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 Porcupine Drive Anchorage Alaska 99501-3192 Re: THE APPLICATION OF BP ) Conservation Order No. 275 EXPLORATION (ALASKA) ) INC. for classification of new ) Endicott Field oil pools and prescribing pool } Ivishak Oil Pool rules for development in the ) Alapah Oil Pool Duck Island Unit of the ) Endicott Field. ) April 24, 1991 Rule 4 CASING AND CEMENTING REQUIREMENTS (a) Surface casing, to provide for proper anchorage, for preventing uncontrolled flow and to protect the well from the effects of permafrost thaw-subsidence or freeze-back loadings, shall be set. at least 500 measured feet below the base of the ice-bearing permafrost. Sufficient cement shall be used to fill the annulus behind the casing to at least the mud line. (b) Alternate means for maintaining the integrity of the well from the effects of permafrost thaw- subsidence and freeze-back may be administratively approved by the Commission upon application and presentation of data which show the alternatives are appropriate, based upon accepted engineering principles. (c) Conductor casing is not required. (d) Formation leak-off tests are not required below structural and intermediate casing. Exhibit J to Eider Pool Rules Testimony __ _ - .: --_ _ • --- /Cameron 9 5/8" 47# L-80 BTC Casin 7079' 7". 29#. L-80. BTC Casing _. 41/2" 12.6# L-80 BTC Tubin r" log 5/25/98 ~ 7/8 ~ 8Open 17714 -17904 41/2", 12.6#. 13 Chr NSCT Liner PBTD 17930 6" bit on btm of liner 17988 Date B C t RT ELEV= 55.1 BF ELEV= 16.6' MAX. DEV. = 68 degrees. Ave hole angle 60 degrees • SSSV LANDING NIPPLE 1574 ALL GLV's HAVE BTM INTEGRAL LATCHES CAMCO 4.5" X 1" KGB-2-LS MD TVD s _~ Angle 6 5102 ' 3490 - 60 5 8748 5242 62 4 10902 6294 61 3 12320= 7002 2 13899 7702. 59 1 15040 8394 58 41R" "X" NIPPLE 15108 7" BAKER S-3 PACKER 15119 4-1/2" X" NIPPLE 15142 (HES) (3.813" ID) 41/2" '~CN^ NIPPLE 15164 4-1/2" WLEG 15176 ELMD ~~ ZXP Liner Packer 16652 Top of 7" window 15958 y ommen s ENDICOTT WELL: 2-56/Eider-O1 5/27/98 gm COMPLETION API NO: 50-029-22863-03 COMPLETION DIAGRAM BP EXPLORATION (ALASKA), INC Exhibit K to Eider Pool Rules Testimony ~~ i` R '~ r e s ~~ M~' z,._ BP EyCPLdRATIdN FNril 17, 2000 ~~~~~~~ ApR 18 20th BP Exploration (Alaska) Inc. 900 East Benson Bculevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (90~ 561-5111 Alaska 4ii & Gas Cans. Con~misa~n Ancharage Robert N. Christenson, Chairman Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, AK 99501-3192 Re :Eider Pool Rules and Injection Order Application Dear Mr. Christenson, As requested at the Eider Pool Rules Hearing of April 6, 2000 please find attached our reasons for the request to keep certain Eider Exhibits in our Pool Rules application confidential. For the avoidance of doubt, we are claiming confidentiality of this data under AS 31.05.035. We will make all confidential data available to the Public once all the Eider well data has becom Public in February 2001. Following a meeting with AOGCC staff on 13th April, 2000 you will find attached some modified exhibits and text which we have agreed will. become part of the Public Testimony and should assist the AOGCC in their findings and Pool Rules Exceptions rulings for Eider. We have agreed with the AOGCC staff that this information should be sufficient to enable the AOGCC to issue findings, conclusions and Pool Ruies without recourse to the confidential material. Our intention would be to submit this formally as supplemental information to support our Pool Rules and Injection Order application. Can you please confirm that this proposal is acceptable to the AOGCC? I look forward to your response. J-~y,: r ' ~~ x'12, e;' '' I ! ji~/ ~Z"-.--1~`e_..,, ... Gary M. /Osborne ENS Subsurface Manager Attachments Part of the BP Amoco Group ~ ~ ALASKA OIL AND GAS CONSERVATION COMMISSION Mav 25, 2000 9:00 AM Eider Pool Rules Hearing NAME -AFFILIATION PHONE # DO YOU PLAN TO TESTIFY? YES NO (PLEASE PRINT) ~Irt ~;~t~%`Y1 i ~~~'~r'") ~" `~d.J<:_= ~'-.. '(,`C~' `co,l ,1-' 1~,,,., ...o ~,~- ct.~~G- ~~ GC~ ~~ f R Notice of Change of Date of Public Hearing STATE OF ALASKA. Alaska Oil and Gas Conservation Commission Re: Eider Pool, Endicott Field, Duck Island Unit -Pool Rules and Area Injection Order BP Exploration (Alaska) Inc. by letter dated January 27, 2000. petitioned the Alaska Oil and Gas Conservation Commission under 20 AAC 25.520 to hold a public hearing to present testimony to establish pool rules and allow enhanced recovery operations on an area basis in the Eider Pool, Endicott Field, Duck Island Unit on the North Slope of Alaska. The hearing previously scheduled for April 6, 2000, has been continued to May 25, 2000, at 9:00 AM. The hearing will be held at the Alaska Oil and Gas Conservation Commission, 3001 Porcupine Drive, Anchorage, Alaska 99501. All interested persons and parties are invited to present testimony. If you are a person with a disability who may need a special modification in order to comment or to attend the public hearing, please contact Diana Fleck at 793-1221 before May 18, 2000. ~ fv; Robert N. Christenson, P.E. Chair Published April 15, 2000 ADN AO# 02014031 Anchorage Daily News Affidavit of Publication 1001 Northway Drive, Anchorage, AK 99508 AD # DATE PURCHASE ORDER EDITION ACCOUNT 347512 4/15/200 02014031 DN STOF0330 PRICE PER DAY $69.66 $69.66 ~''.'' 25 240 STATE OF ALASKA THIRD JUDICIAL DISTRICT E3i1 & Gas Eons. ~ommiss~rl ~ls~cxa,~~ Eva Alexie, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularl distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. ~ ~ , C~ ~~j Signed ~ ~ f ~ _. '~..~ Subscribed and sworn to me before this date: ~ Doo Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska MY COMMISSION EXPIRES:-~~~/ ~~~~ - - ,t±i ^~ `~' 4~ a-._ ~ '"mow ~. g _- .L i ^1. i ~ d~At_1§^ ~~ of Public Hearing STATE OF ALASKA'' I Alaska Oif and Gas COaSerVatlOfl Cpn7mis$Ipn 'Re: Eider Pdol, Endicott Field, .Duck Island Unit - Pootl2ules and Ared Iniec- Tion Order -BP "Exploration (Alaska) Inc. by letter dared Janu- ary 27, 2000, petitioned the Alaska Oil and Gas..Cpnser- vation Commission under 28 AAC 25.520 to hold a public heprin9 10 present feSTl-. mony to establish pool rules and allow enhanced recov- erY OperdTlOgs On pn area basisin'The EiderPpol, ~ Endicott field; Duck is• land udifon the North slope. pf Alaska. The hearingpreviously scheduled for April 26> 2000, has been. continued to May 25, 2000; aT-4:00 AM. The hearing-will be heldatthe Alaska0iland Gas Conser- vation Commission, 3001 Porcupine Drive, Anc.hor- age, Alaska 99501. Allinte~- ested persons and ppries pre invitedt0 presenlfes- timonv. If youare q person with a disability who`mpyneed~ a "special mod ificgtion M pr- Fder to comment or topt- 'Tend-Thepoblic hearing, pleasecontact Diana Fleck at 793-1221 .before May 18, zooo. /s/Rpbert N..Christenson, P:E'., Chair ~4,Q;()2014031 Pub.': April 15, ~0 ~/17/zooo p- DRI / McGraw Hill °~. Randall Nottingham ~ m' ~ ~ , ~ ~ f /~ 24 Hartwell Lexington, MA 02173 PIRA ENERGY GROUP LIBRARY 3 PARK AVENUE (34th & PARK) NEW YORK, NY 10016 OVERSEAS SHIPHOLDING GRP ECON DEPT 1114 AV OF THE AMERICAS NEW YORK, NY 10036 NY PUBLIC LIBRARY DIV E GRAND CENTRAL STATION P O BOX 2221 NEW YORK, NY 10163-2221 ALASKA OFC OF THE GOVERNOR JOHN KATZ STE 518 444 N CAPITOL NW WASHINGTON, DC 20001 ARENT FOX KINTNER PLOTKIN KAHN LIBRARY WASHINGTON SQ BLDG 1050 CONNECTICUT AV NW WASHINGTON, DC 20036-5339 US MIN MGMT SERV CHIEF OCS STATS & INFO 381 ELDEN ST MS 4022 HERNDON, VA 20170-4817 LIBRARY OF CONGRESS STATE DOCUMENT SECTION EXCH & GIFT DIV 10 FIRST ST SE WASHINGTON, DC 20540 U S DEPT OF ENERGY PHYLLIS MARTIN MS EI823 1000 INDEPENDENCE SW WASHINGTON, DC 20585 TECHSYS CORP BRANDY KERNS PO BOX 8485 GATHERSBURG, MD 20898 US GEOLOGICAL SURVEY LIBRARY NATIONRL CTR MS 950 _ RESTON, VA 22092 DPC DANIEL DONKEL 1420NORTH ATLANTIC AVE, STE 204 DAYTON BEACH, FL 32118 SD DEPT OF ENV & NATRL RESOURCES OIL & GAS PROGRAM 2050 W MAIN STE #1 RAPID CITY, SD 57702 AMOCO CORP 2002A LIBRARY/INFO CTR P O BOX 87703 CHICAGO, IL 60680-0703 ILLINOIS STATE GEOL SURV LIBRARY 469 NATURAL RESOURCES BLDG 615 E PEABODY DR CHAMPAIGN, IL 61820 LINDA HALL LIBRARY SERIALS DEPT 5109 CHERRY ST KANSAS CITY, MO 64140-2498 ALFRED JAMES III 107 N MARKET STE 1000 WICHITA, KS 67202-1811 MURPHY E&P CO ROBERT F SAWYER P O BOX 61780 NEW ORLEANS, LA 70161 UNIV OF ARKANSAS SERIALS DEPT UNIV LIBRARIES FAYETTEVILLE, AR 72701 CROSS TIMBERS OPERATIONS SUSAN LILLY 210 PARK AVE STE 2350 OKLAHOMA CITY, OK 73102-5605 DWIGHTS ENERGYDATA INC • JERLENE A BRIGHT DIRECTOR . PO BOX 26304 - OKLAHOMA CITY, OK 73126 IOGCC P O BOX 53127 OKLAHOMA CITY, OK 73152-3127 R E MCMILLEN CONSULT GEOL 202E 16TH ST OWASSO, OK 74055-4905 OIL & GAS JOURNAL LAURA BELL P O BOX 1260 TULSA, OK 74101 GAFFNEY, CLINE & ASSOCIATES LIBRARY 16775 ADDISON RD STE 400 ADDISON, TX 75001 GAFFNEY, CLINE & ASSOC., INC. LIBRARY 16775 ADDISON RD, STE 400 ADDISON, TX 75001 BAPI RAJU 335 PINYON LN COPPELL, TX 75019 MARK S MALINOWSKY 15973 VALLEY VW FORNEY, TX 75126-5852 US DEPT OF ENERGY ENERGY INFORMATION ADMINISTRATION MIR YOUSUFUDDIN 1999 BRYAN STREET STE 1110 DALLAS, TX 75201-6801 DEGOLYER & MACNAUGHTON MIDCONTINENT DIVISION ONE ENERGY SQ, STE 400 4925 GREENVILLE AVE DALLAS, TX 75206-4083 JERRY SCHMIDT 4010 SILVERWOOD DR _ TYLER, TX 75701-9339 STANDARD AMERICAN OIL CO AL GRIFFITH P O BOX 370 GRANBURY, TX 76048 CROSS TIMBERS OIL COMPANY MARY JONES 810 HOUSTON ST STE 2000 FORT WORTH, TX 76102-6298 PRITCHARD & ABBOTT BOYCE B BOLTON PE RPA 4521 S. HULEN STE 100 FT WORTH, TX 76109-4948 SHELL WESTERN E&P INC G.S. NADY P O BOX 576 HOUSTON, TX 77001-0574 ENERGY GRAPHICS MARTY LINGNER 1600 SMITH ST, STE 4900 HOUSTON, TX 77002 H J GRUY ATTN: ROBERT RASOR 1200 SMITH STREET STE 3040 HOUSTON, TX 77002 PURVIN & GERTZ INC LIBRARY 2150 TEXAS COMMERCE TWR 600 TRAVIS ST HOUSTON, TX 77002-2979 RAY TYSON 1617 FANNIN ST APT 2015 HOUSTON, TX 77002-7639 CHEVRON PAUL WALKER 1301 MCKINNEY RM 1750 HOUSTON, TX 77010 BONNER & MOORE LIBRARY H2O 2727 ALLEN PKWY STE 1200 _ HOUSTON, TX 77019 OIL & GAS JOURNAL BOB WILLIAMS 1700 W LOOP SOUTH STE 1000 HOUSTON, TX 77027 PETRAL CONSULTING CO DANIEL L LIPPE 9800 RICHMOND STE 505 HOUSTON, TX 77042 MARK ALEXANDER 7502 ALCOMITA HOUSTON, TX 77083 MARATHON OIL CO GEORGE ROTHSCHILD JR RM 2537 P O BOX 4813 HOUSTON, TX 77210 UNOCAL REVENUE ACCOUNTING P O BOX 4531 HOUSTON, TX 77210-4531 EXXON EXPLORATION CO. T E ALFORD P O BOX 4778 HOUSTON, TX 77210-4778 EXXON EXPLOR CO LAND/REGULATORY AFFAIRS RM 301 P O BOX 4778 HOUSTON, TX 77210-4778 CHEVRON USA INC. ALASKA DIVISION ATTN: CORRY WOOLINGTON P O BOX 1635 HOUSTON, TX 77251 PETR INFO DAVID PHILLIPS P O BOX 1702 HOUSTON, TX 77251-1702 PHILLIPS PETR CO ALASKA LAND MGR P O BOX 1967 _ HOUSTON, TX 77251-1967 PHILLIPS PETROLEUM COMPANY W ALLEN HUCKABAY PO BOX 1967 HOUSTON, TX 77251-1967 WORLD OIL MARK TEEL ENGR ED P O BOX 2608 HOUSTON, TX 77252 EXXONMOBIL PRODUCTION COMPANY J W KIKER ROOM 2086 P O BOX 2180 HOUSTON, TX 77252-2180 EXXONMOBIL PRODUCTION COMPANY GARY M ROBERTS RM 3039 P O BOX 2180 HOUSTON, TX 77252-2180 PENNZOIL E&P WILL D MCCROCKLIN P O BOX 2967 HOUSTON, TX 77252-2967 CHEVRON CHEM CO LIBRARY & INFO CTR P O BOX 2100 HOUSTON, TX 77252-9987 MARATHON Ms. Norma L. Calvert P O BOX 3128, Ste 3915 HOUSTON, TX 77253-3128 ACE PETROLEUM COMPANY ANDREW C CLIFFORD PO BOX 79593 HOUSTON, TX 77279-9593 PHILLIPS PETR CO JOE VOELKER 6330 W LP S RM 492 BELLAIRE, TX 77401 PHILLIPS PETR CO ~ • ERICH R. RAMP 6330 W LOOP SOUTH - BELLAIRE, TX 77401 PHILLIPS PETR CO PARTNERSHIP OPRNS JIM JOHNSON 6330 W LOOP S RM 1132 BELLAIRE, TX 77401 TEXACO INC R Ewing Clemons P O BOX 430 BELLAIRE, TX 77402-0430 WATTY STRICKLAND 2803 SANCTUARY CV KATY, TX 77450-8510 TESORO PETR CORP LOIS DOWNS 300 CONCORD PLAZA DRIVE SAN ANTONIO, TX 78216-6999 INTL OIL SCOUTS MASON MAP SERV INC P O BOX 338 AUSTIN, TX 78767 ROBERT G GRAVELY 7681 S KIT CARSON DR LITTLETON, CO 80122 DIANE SUCHOMEL 10507D W MAPLEWOOD DR LITTLETON, CO 80127 GEORGE G NAUGHT JR P O BOX 13557 DENVER, CO 80201 AMOCO PROD CO LIBRARY RM 1770 JILL MALLY 1670 BROADWAY DENVER, CO 80202 C & R INDUSTRIES, INC. • • KURT SALTSGAVER 1801 BROADWAY STE 1205 - DENVER, CO 80202 US GEOLOGICAL SURVEY LIBRARY BOX 25046 MS 914 DENVER, CO 80225-0046 JERRY HODGDEN GEOL 408 18TH ST GOLDEN, CO 80401 NRG ASSOC RICHARD NEHRING P O BOX 1655 COLORADO SPRINGS, CO 80901-1655 RUBICON PETROLEUM, LLC BRUCEICLARDY SIX PINE ROAD COLORADO SPRINGS, CO 80906 JOHN A LEVORSEN 200 N 3RD ST #1202 BOISE, ID 83702 RUI ANALYTICAL JERRY BERGOSH P O BOX 58861 SALT LAKE CITY, UT 84158-0861 TAHOMA RESOURCES GARY PLAYER 1671 WEST 546 S CEDER CITY, UT 84720 US GEOLOGICAL SURVEY LIBRARY 2255 N GEMINI DR FLAGSTAFF, AZ 86001-1698 MUNGER OIL INFOR SERV INC P O BOX 45738 LOS ANGELES, CA 90045-0738 LA PUBLIC LIBRARY SERIALS DIV 630 W 5TH ST LOS ANGELES, CA 90071 BABSON & SHEPPARD JOHN F BERGQUIST P O BOX 8279 VIKING STN LONG BEACH, CA 90808-0279 ANTONIO MADRID, P O BOX 94625 PASADENA, CA 91109 ORO NEGRO, INC. 9321 MELVIN AVE NORTHRIDGE, CA 91324-2410 76 PRODUCTS COMPANY CHARLES BURRUSS RM 11-767 555 ANTON COSTA MESA, CA 92626 TEXACO INC Portfolio Team Manager R W HILL P O BOX 5197x Bakersfield, CA 93388 US GEOLOGICAL SURVEY KEN BIRD 345 MIDDLEFIELD RD MS 999 MENLO PARK, CA 94025 SHIELDS LIBRARY GOVT DOCS DEPT UNIV OF CALIF DAVIS, CA 95616 H L WANGENHEIM 5430 SAWMILL RD SP 11 PARADISE, CA 95969-5969 ECONOMIC INSIGHT INC SAM VAN VACTOR P O BOX 683 PORTLAND, OR 97207 US EPA REGION 10 ~ • LAURIE MANN OW-130 1200 SIXTH AVE _ SEATTLE, WA 98101 MARPLES BUSINESS NEWSLETTER MICHAEL J PARKS 117 W MERCER ST STE 200 SEATTLE, WA 98119-3960 DEPT OF REVENUE OIL & GAS AUDIT DENISE HAWES 550 W 7TH AV STE 570 ANCHORAGE, AK 99501 FAIRWEATHER E&P SERV INC JESSE MOHRBACHER 715 I ST #4 ANCHORAGE, AK 99501 GUESS & RUDD GEORGE LYLE 510 L ST, STE 700 ANCHORAGE, AK 99501 STATE PIPELINE OFFICE LIBRARY KATE MUNSON 411 W 4TH AVE, STE 2 ANCHORAGE, AK 99501 TRUSTEES FOR ALASKA 725 CHRISTENSEN DR STE 4 ANCHORAGE, AK 99501 DUSTY RHODES 229 WHITNEY RD ANCHORAGE, AK 99501 DEPT OF REVENUE BEVERLY MAROUART 550 W 7TH AV STE 570 ANCHORAGE, AK 99501 FORCENERGY INC. JIM ARLINGTON 310 K STREET STE 700 ANCHORAGE, AK 99501 YUKON PACIFIC CORP JOHN HORN VICE CHM 1049 W 5TH AV . ANCHORAGE, AK 99501-1930 PRESTON GATES ELLIS LLP LIBRARY 420 L ST STE 400 ANCHORAGE, AK 99501-1937 ALASKA DEPT OF LAW ROBERT E MINTZ ASST ATTY GEN 1031 W 4TH AV STE 200 ANCHORAGE, AK 99501-1994 GAFO GREENPEACE PAMELA MILLER 125 CHRISTENSEN DR. #2 ANCHORAGE, AK 99501-2101 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS TIM RYHERD 550 W 7th AVE STE 800 ANCHORAGE, AK 99501-3510 DEPT OF REVENUE OIL & GAS AUDIT FRANK PARR 550 W 7TH AVE STE 570 ANCHORAGE, AK 99501-3540 BRISTOL ENVIR SERVICES JIM MUNTER 2000 W. INTL AIRPORT RD #C-1 ANCHORAGE, AK 99502-1116 HDR ALASKA INC MARK DALTON 2525 C ST STE 305 ANCHORAGE, AK 99503 BAKER OIL TOOLS ALASKA AREA MGR 4710. BUS PK BLVD STE 36 ANCHORAGE, AK 99503 N-I TUBULARS INC 3301 C Street Ste 209 ANCHORAGE, AK 99503 ANADARKO ~ . MARK HANLEY 3201 C STREET STE 603 _ ANCHORAGE, AK 99503 ALASKA OIL & GAS ASSOC JUDY BRADY 121 W FIREWEED LN STE 207 ANCHORAGE, AK 99503-2035 ANADRILL-SCHLUMBERGER 3940 ARCTIC BLVD #300 ANCHORAGE, AK 99503-5711 AK JOURNAL OF COMMERCE OIL & INDUSTRY NEWS ROSE RAGSDALE 4220 B Street Ste #210 ANCHORAGE, AK 99503-5911 DEPT OF NATURAL RESOURCES PUBLIC INFORMATION CTR 3601 C STREET STE 200 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS JIM STOUFFER 3601 C STREET STE 1380 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS JAMES B HAYNES NATURAL RESRCE MGR 3601 C ST STE 1380 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS JULIE HOULE 3601 C ST STE 1380 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OIL & GAS WILLIAM VAN DYKE 3601 C ST STE 1380 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS BRUCE WEBB 3601 C ST STE 1380 ANCHORAGE, AK 99503-5948 FINK ENVIRONMENTAL CONSULTING, INC~ THOMAS FINK, PHD 6359 COLLATE DR. -ANCHORAGE, AK 99504-3305 ARLEN EHM GEOL CONSLTNT 2420 FOXHALL DR ANCHORAGE, AK 99504-3342 JAMES E EASON 8611 LEEPER CIRCLE ANCHORAGE, AK 99504-4209 US BUREAU OF LAND MNGMNT ANCHORAGE DIST OFC DICK POLAND 6881 ABBOTT LOOP RD ANCHORAGE, AK 99507 RUSSELL DOUGLASS 6750 TESHLAR DR ANCHORAGE, AK 99507 STU HIRSH 9630 BASHER DR. ANCHORAGE, AK 99507 AMERICA/CANADIAN STRATIGRPH CO RON BROCKWAY 4800 KUPREANOF ANCHORAGE, AK 99507 US BUREAU OF LAND MNGMNT ANCHORAGE DIST OFC PETER J DITTON 6881 ABBOTT LOOP ROAD ANCHORAGE, AK 99507 US BLM AK DIST OFC RESOURCE EVAL GRP ART BONET 6881 ABBOTT LOOP RD ANCHORAGE, AK 99507-2899 TRADING BAY ENERGY CORP PAUL CRAIG 5432 NORTHERN LIGHTS BLVD ANCHORAGE, AK 99508 THOMAS R MARSHALL JR 1569 BIRCHWOOD ST ANCHORAGE, AK 99508 UNIVERSITY OF ALASKA ANCHORAGE INST OF SOCIAL & ECON RESEARCH TERESA HULL 3211 PROVIDENCE DR ANCHORAGE, AK 99508 US MIN MGMT SERV AK OCS REGIONAL DIR 949E 36TH AV RM -110 ANCHORAGE, AK 99508-4302 US MIN MGMT SERV RESOURCE STUDLES AK OCS REGN KIRK W SHERWOOD 949E 36TH AV RM 603 ANCHORAGE, AK 99508-4302 US MIN MGMT SERV RICHARD PRENTKI 949E 36TH AV ANCHORAGE, AK 99508-4302 GORDONJ.SEVERSON 3201 WESTMAR CIR ANCHORAGE, AK 99508-4336 US MIN MGMT SERV LIBRARY 949E 36TH AV RM 603 ANCHORAGE, AK 99508-4363 US MIN MGMT SERV RESOURCE EVAL JIM SCHERR 949E 36TH AV RM 603 ANCHORAGE, AK 99508-4363 US MIN MGMT SERV FRANK MILLER 949E 36TH AV STE 603 ANCHORAGE, AK 99508-4363 REGIONAL SUPRVISOR, FIELD OPERATNS MINERALS MANAGEMENT SERVICE ALASKA OCS REGION 949E 36TH AV STE 308 ANCHORAGE, AK 99508-4363 JOHN MILLER 3445 FORDHAM DR ANCHORAGE, AK 99508-4555 USGS -ALASKA SECTION LIBRARY 4200 UNIVERSITY DR ANCHORAGE, AK 99508-4667 CIRI LAND DEPT P O BOX 93330 ANCHORAGE, AK 99509-3330 ANCHORAGE TIMES BERT TARRANT P O BOX 100040 ANCHORAGE, AK 99510-0040 ARCO ALASKA INC JOANN GRUBER ATO 712 P O BOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC LEGAL DEPT MARK P WORCESTER P O BOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC STEVE BENZLER ATO 1404 P O BOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC LIBRARY P O BOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC MARK MAJOR ATO 1968 P O BOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC LAND DEPT JAMES WINEGARNER P O BOX 10036 ANCHORAGE, AK 99510-0360 l ARCO ALASKA INC ~ • SAM DENNIS ATO 1388 P O BOX 100360 - ANCHORAGE, AK 99510-0360 ARCO ALASKA INC SHELIA ANDREWS ATO 1130 PO BOX 100360 ANCHORAGE, AK 99510-0360 PETROLEUM INFO CORP KRISTEN NELSON P O BOX 102278 ANCHORAGE, AK 99510-2278 ARCO ALASKA INC KUP CENTRAL WELLS ST TSTNG WELL ENG TECH NSK 69 P O BOX 196105 ANCHORAGE, AK 99510-6105 ALYESKA PIPELINE SERV CO CHUCK O'DONNELL 1835 S BRAGAW - MS 5306. ANCHORAGE, AK 99512 ALYESKA PIPELINE SERV CO PERRY A MARKLEY 1835 SBRAGAW - MS 575 ANCHORAGE, AK 99512 ALYESKA PIPELINE SERV CO LEGAL DEPT 1835 S BRAGAW ANCHORAGE, AK 99512-0099 US BUREAU OF LAND MGMT OIL & GAS OPRNS (984) J A DYGAS 222 W 7TH AV #13 ANCHORAGE, AK 99513-7599 ANCHORAGE DAILY NEWS EDITORIAL PG EDTR MICHAEL CAREY P O BOX 149001 ANCHORAGE,. AK 99514 DAVID W. JOHNSTON 320 MARINER DR. ANCHORAGE, AK 99515 JWL ENGINEERING • . JEFF LIPSCOMB 9921 MAIN TREE DR. ANCHORAGE, AK 99516-6510 NORTHERN CONSULTING GROUP ROBERT BRITCH, P.E. 2454 TELEQUANA DR. ANCHORAGE, AK 99517 GERALD GANOPOLE CONSULT GEOL 2536 ARLINGTON ANCHORAGE, AK 99517-1303 ASRC CONRAD BAGNE 301 ARCTIC SLOPE AV STE 300 ANCHORAGE, AK 99518 DAVID CUSATO 600 W 76TH AV #508 ANCHORAGE,. AK 99518 ARMAND SPIELMAN 651 HILANDER CIRCLE ANCHORAGE, AK 99518 HALLIBURTON ENERGY SERV MARK WEDMAN 6900 ARCTIC BLVD ANCHORAGE, AK 99518-2146 OPSTAD & ASSOC ERIK A OPSTAD PROF GEOL P O BOX 190754 ANCHORAGE, AK 99519 JACK O HAKKILA P O BOX 190083 ANCHORAGE, AK 99519-0083 ENSTAR NATURAL GAS CO BARRETT HATCHES P O BOX 190288 ANCHORAGE, AK 99519-0288 MARATHON OIL CO .BRAD PENN • P O BOX 196168 ANCHORAGE, AK 99519-6168 MARATHON OIL CO OPERATIONS SUPT P O BOX 196168 ANCHORAGE, AK 99519-6168 UNOCAL P O BOX 196247 ANCHORAGE, AK 99519-6247 UNOCAL KEVIN TABLER P O BOX 196247 ANCHORAGE, AK 99519-6247 EXXONMOBIL PRODUCTION COMPANY MARK P EVANS PO BOX 196601 ANCHORAGE, AK 99519-6601 BP EXPLORATION (ALASKA), INC. MARK BERLINGER MB 8-1 PO BOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC SUE MILLER P O BOX 196612 M/S LR2-3 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC PETE ZSELECZKY LAND MGR POBOX196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC INFO RESOURCE CTR MB 3-2 POBOX196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC BOB WILKS MB 5-3 POBOX196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC • MR. DAVIS, ESQ P O BOX 196612 MB 13-5 ANCHORAGE, AK 99519-6612 AMSINALLEE CO INC WILLIAM O VALLEE PRES PO BOX 243086 ANCHORAGE, AK 99524-3086 DIANA FLECK 18112 MEADOW CRK DR EAGLE RIVER, AK 99577 L G POST O&G LAND MGMT CONSULT 10510 Constitution Circle EAGLE RIVER, AK 99577 D A PLATT & ASSOC 9852 LITTLE DIOMEDE CIR EAGLE RIVER, AK 99577 PINNACLE STEVE TYLER 20231 REVERE CIRCLE EAGLE RIVER, AK 99577 DEPT OF NATURAL RESOURCES DGGS JOHN REEDER P O BOX 772805 EAGLE RIVER, AK 99577-2805 COOK INLET KEEPER BOB SHAVELSON PO BOX 3269 HOMER, AK 99603 COOK INLET VIGIL JAMES RODERICK P O BOX 916 HOMER, AK 99603 PHILLIPS PETR ALASKA OPERATIONS MANAGER J W KONST P O DRAWER 66 KENAI, AK 99611 RON DOLCHOK P O BOX 83 KENAI, AK 99611 DOCUMENT SERVICE CO JOHN PARKER P O BOX 1468 KENAI, AK 99611-1468 KENAI PENINSULA BOROUGH ECONOMIC DEVEL DISTR STAN STEADMAN P O BOX 3029 KENAI, AK 99611-3029 NANCY LORD PO BOX 558 HOMER, AK 99623 PENNY VADLA P O BOX 467 NINILCHIK, AK 99639 BELOWICH COAL CONSULTING MICHAEL A BELOWICH HC31 BOX 5157 WASILLA, AK 99654 PACE SHEILA DICKSON P O BOX 2018 SOLDOTNA, AK 99669 JAMES GIBBS P O BOX 1597 SOLDOTNA, AK 99669 KENAI NATL WILDLIFE REFUGE REFUGE MGR P O BOX 2139 SOLDOTNA, AK 99669-2139 ALYESKA PIPELINE SERVICE CO VALDEZ CORP AFFAIRS SANDY MCCLINTOCK P O BOX 300 MS/701 VALDEZ, AK 99686 VALDEZ PIONEER P O BOX 367 • . VALDEZ, AK 99686 VALDEZ VANGUARD EDITOR P O BOX 98 VALDEZ, AK 99686-0098 NICK STEPOVICH 543 2ND AVE FAIRBANKS, AK 99701 UNIV OF ALASKA FAIRBANKS PETR DEVEL LAB DR V A KAMATH 427 DUCKERING FAIRBANKS, AK 99701 RICK WAGNER P O BOX 60868 FAIRBANKS, AK 99706 JACK HAKKILA P O BOX 61604 FAIRBANKS, AK 99706-1604 C BURGLIN P O BOX 131 FAIRBANKS, AK 99707 FAIRBANKS DAILY NEWS-MINER KATE RIPLEY P O BOX 70710 FAIRBANKS, AK 99707 FRED PRATT P O BOX 72981 FAIRBANKS, AK 99707-2981 DEPT OF NATURAL RESOURCES DIV OF LAND REG MGR NORTHERN REGION 3700 AIRPORT WAY FAIRBANKS, AK 99709-4699 K&K RECYCL INC P O BOX 58055 FAIRBANKS, AK 99711 ASRC BILL THOMAS P O BOX 129 BARROW, AK 99723 RICHARD FINEBERG P O BOX 416 ESTER, AK 99725 UNIV OF ALASKA FBX PETR DEVEL LAB SHIRISH PATIL 437 DICKERING FAIRBANKS, AK 99775 UNIVERSITY OF ALASKA FBKS PETR DEVEL LAB DR AKANNI LAWAL P O BOX 755880 FAIRBANKS, AK 99775-5880 SENATOR LOREN LEMAN STATE CAPITOL RM 113 JUNEAU, AK 99801-1182 DEPT OF ENVIRON CONSERV SPAR CHRIS PACE 410 WILLOUGHBY AV STE 105 JUNEAU, AK .99801-1795 ~5 • Notice of Change of Date of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Eider Pool, Endicott Field, Duck Island Unit -Pool Rules and Area Injection Order BP Exploration (Alaska) Inc. by letter dated January 27, 2000, petitioned the Alaska Oil and Gas Conservation Commission under 20 AAC 25.520 to hold a public hearing to present testimony to establish pool rules and allow enhanced recovery operations an an area basis in the Eider Pool, Endicott Field, Duck Island Unit on the North Slope of Alaska. The hearing previously scheduled for March 28, 2000, has been rescheduled for April 6, 2000, at 9:00 AM. The hearing will be held at the Alaska Oil and Gas Conservation Commission, 3001 Porcupine Drive, Anchorage, Alaska 99501.. All interested persons and parties are invited to present testimony. If you are a person with a disability who may need a special modification in order to comment or to attend the public hearing, please contact Diana Fleck at 793-1221 before March 28, 2000. Robert N. Christenson, P.E. Chair Published March 3, 2000 ADN AO# 0201402 gj chorage Da><ly News Affidavit of Publication 1001 Northway Drive, Anchorage, AK 99508 Ad # Date Purchase Order Edition Account 300656 03/03/2000 02014028 DN STOF0330 ~f<.J MAR ~ 3 2000 ~la~~sa tail ~ Gas C~ns~ ~orn~nissi~n ..~.. _ homage STATE OF ALASKA THIRD JUDICIAL DISTRICT Eva Alexie, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, Notice of choose of a dally newspaper. Date of Public Hegrins STATE OF ALASKA That said newspaper has been approved by the Third Judicial Alosko oirana Cos Court, Anchorage, Alaska, and it now and has been published in conservation commission the En lish Ian ua a continual) as a dail news a er in Re: Eider: ?ool, Endicutr' 9 9 9 Y Y P p Fiela, Duck Island unir - Anchora e, Alaska, and it is now and durin all said time was Pool lzules and Area Iniec- g g lion Order. printed in an office maintained at the aforesaid place of BP exp,arat;dn (alaska) publication of said newspaper. That the annexed is a copy of an lac. by lerrer aatea 7anu- 'ary 27, 2000, has Petitioned advertisement as it was published in regular issues (and not in the Alaska oi['ana Gds Conservation Commission supplemental form) of said newspaper on the above dates and under 20 AAC; 2ss2o to i,oid a pUbIlCheprJn9 f0 pre5ent Testimony toestablish pool. that such newspaper was regularly distributed to its subscribers rules and allow enhanced feCflV2ry. OperatianSOn an during all of said period. That the full amount of the fee charged area: basis in the Eider Pool, Endicott Field, Duck. for the foregoing publication is not in excess of the rate charged )stand unir an the ,Norm Slope. of Alaska. private individuals. ! .The hearing prevfoustyt -~~~ ~. scheduled. for March 28,. L e g a l C I e r k C _______-- ~ooo. has seen rescheaateti°" Subscribed and sworn to me before this date: Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska MY COMMISSION EXPIRES:_ I~_1~~QD~ f ' ------------~ r_- s/ ~ pLP~.•: 1~ .r~,J~~Jlf1 1,J l; ~`,,1~~ Price Per Dav $69.66 $69.66 for :Apr 1 e, 200D, at 4:00.. a.m. The nearing w~l~,be held at the Alaska Oil and Gas CI'~pservati~on Commis- sign, 3001 Porcupine Drike, Anchorage, Alaska 9950,7.1 AN iniei'eSt@EI persons and parties are invited to present testimony. i If you ore a person with a, l disdbillty whp may neetl q j speciai motlification in order to ,'comment or, fi atfend the public: hbdrTng, please contact Dicana Fleck i 2~~ 3-7221 before Marc1T 28; !s/Robert N. Christenson, P:E.~Chair _~~ Aa:~2iiT4o2a Pub.: Mprch~3, 2tiD0 „ DRI / McGraw Hill Randall Nottingham 24 Hartwell Lexington, MA 02173 PIRA ENERGY GROUP LIBRARY 3 PARK AVENUE (34th & PARK) NEW YORK, NY 10016 OVERSEAS SHIPHOLDING GRP ECON DEPT 1114 AV OF THE AMERICAS NEW YORK, NY 10036 NY PUBLIC LIBRARY DIV E GRAND CENTRAL STATION P O BOX 2221 NEW YORK, NY 10163-2221 ALASKA OFC OF THE GOVERNOR JOHN KATZ STE 518 444 N CAPITOL NW WASHINGTON, DC 20001 ARENT FOX KINTNER PLOTKIN KAHN LIBRARY WASHINGTON SQ BLDG 1050 CONNECTICUT AV NW WASHINGTON, DC 20036-5339 US MIN MGMT SERV CHIEF OCS STATS & INFO 381 ELDEN ST MS 4022 HERNDON, VA 20170-4817 LIBRARY OF CONGRESS STATE DOCUMENT SECTION EXCH ~ GIFT DIV 10 FIRST ST SE WASHINGTON, DC 20540 U S DEPT OF ENERGY PHYLLIS MARTIN MS EI823 1000 INDEPENDENCE SW WASHINGTON, DC 20585 TECHSYS CORP BRANDY KERNS. PO BOX 8485 GATHERSBURG, MD 20898 US GEOLOGICAL SURVEY LIBRARY NATIONAL CTR MS 950 - RESTON, VA 22092 DPC DANIEL DONKEL 1420 NORTH ATLANTIC AVE, STE 204 DAYTON. BEACH, FL 32118 SD DEPT OF ENV & NATRL RESOURCES OIL & GAS PROGRAM 2050 W MAIN STE #1 RAPID CITY, SD 57702 AMOCO CORP 2002A LIBRARY/INFO CTR P O BOX 87703 CHICAGO, IL 60680-0703 ILLINOIS STATE GEOL SURV LIBRARY 469 NATURAL RESOURCES BLDG 615 E PEABODY DR CHAMPAIGN, IL 61820 LINDA HALL LIBRARY SERIALS DEPT 5109 CHERRY ST KANSAS CITY, MO 64110-2498 ALFRED JAMES III 107 N MARKET STE 1000 WICHITA, KS 67202-1811 MURPHY E&P CO ROBERT F SAWYER P O BOX 61780 NEW ORLEANS, LA 70161 UNIV OF ARKANSAS SERIALS DEPT UNIV LIBRARIES FAYETTEVILLE, AR 72701 CROSS TIMBERS OPERATIONS SUSAN LILLY 210 PARK AVE STE 2350 OKLAHOMA CITY, OK 73102-5605 DWIGHTS ENERGYDATA INC JERLENE A BRIGHT DIRECTOR PO BOX 26304 - OKLAHOMA CITY, OK 73126 IOGCC P O BOX 53127 OKLAHOMA CITY, OK 73152-3127 R E MCMILLEN CONSULT GEOL 202E 16TH ST OWASSO, OK 74055-4905 OIL & GAS JOURNAL LAURA BELL P O BOX 1260 TULSA, OK 74101 GAFFNEY, CLINE & ASSOCIATES LIBRARY 16775 ADDISON RD STE 400 ADDISON, TX 75001 GAFFNEY, CLINE & ASSOC., INC. LIBRARY 16775 ADDISON RD, STE 400 ADDISON, TX 75001 BAPI RAJU 335 PINYON LN COPPELL, TX 75019 MARK S MALINOWSKY 15973 VALLEY VW FORNEY, TX 75126-5852 US DEPT OF ENERGY ENERGY INFORMATION ADMINISTRATION MIR YOUSUFUDDIN 1999 BRYAN STREET STE 1110 DALLAS, TX 75201-6801 DEGOLYER & MACNAUGHTON MIDCONTINENT DIVISION ONE ENERGY SO, STE 400 4925 GREENVILLE AVE DALLAS, TX 75206-4083 JERRY SCHMIDT 4010 SILVERWOOD DR TYLER, TX 75701-9339 STANDARD AMERICAN OIL CO AL GRIFFITH P O BOX 370 GRANBURY, TX 76048 CROSS TIMBERS OIL COMPANY MARY JONES 810 HOUSTON ST STE 2000 FORT WORTH, TX 76102-6298 PRITCHARD & ABBOTT BOYCE B BOLTON PE RPA 4521 S. HULEN STE 100 FT WORTH, TX 76109-4948 SHELL WESTERN E&P INC G.S. NADY P O BOX 576 HOUSTON, TX 77001-0574 ENERGY GRAPHICS MARTY LINGNER 1600 SMITH ST, STE 4900 HOUSTON, TX 77002 H J GRUY ATTN: ROBERT RASOR 1200 SMITH STREET STE 3040 HOUSTON, TX 77002 PURVIN & GERTZ INC LIBRARY 2150 TEXAS COMMERCE TWR 600 TRAVIS ST HOUSTON, TX 77002-2979 RAY TYSON 1617 FANNIN ST APT 2015 HOUSTON, TX 77002-7639 CHEVRON PAUL WALKER 1301 MCKINNEY RM 1750 HOUSTON, TX 77010 C7 BONNER & MOORE ~ • LIBRARY H2O 2727 ALLEN PKWY STE 1200 _ HOUSTON, TX 77019 OIL & GAS JOURNAL BOB WILLIAMS 1700 W LOOP SOUTH STE 1000 HOUSTON, TX 77027 PETRAL CONSULTING CO DANIEL L LIPPE 9800 RICHMOND STE 505 HOUSTON, TX 77042 MARK ALEXANDER 7502 ALCOMITA HOUSTON, TX 77083 MARATHON OIL CO GEORGE ROTHSCHILD JR RM 2537 P O BOX 4813 HOUSTON, TX 77210 UNOCAL REVENUE ACCOUNTING P O BOX 4531 HOUSTON, TX 77210-4531 EXXON EXPLORATION CO. T E ALFORD P O BOX 4778 HOUSTON, TX 77210-4778 EXXON EXPLOR CO LAND/REGULATORY AFFAIRS RM 301 P O BOX 4778 HOUSTON, TX 77210-4778 CHEVRON USA INC. ALASKA DIVISION ATTN: CORRY WOOLINGTON P O BOX 1635 HOUSTON, TX 77251 PETR INFO DAVID PHILLIPS P O BOX 1702 HOUSTON, TX 77251-1702 PHILLIPS PETR CO ~ • ALASKA LAND MGR P O BOX 1967 _ HOUSTON, TX 77251-1967 PHILLIPS PETROLEUM COMPANY W ALLEN HUCKABAY PO BOX 1967 HOUSTON, TX 77251-1967 WORLD OIL MARK TEEL ENGR ED P O BOX 2608 HOUSTON, TX 77252 EXXONMOBIL PRODUCTION COMPANY J W KIKER ROOM 2086 P O BOX 2180 HOUSTON, TX 77252-2180 EXXONMOBIL PRODUCTION COMPANY GARY M ROBERTS RM 3039 P O BOX 2180 HOUSTON, TX 77252-2180 PENNZOIL E&P WILL D MCCROCKLIN P O BOX 2967 HOUSTON, TX 77252-2967 .CHEVRON CHEM CO LIBRARY & INFO CTR P O BOX 2100 HOUSTON, TX 77252-9987 MARATHON Ms. -Norma L. Calvert P O BOX 3128, Ste 3915 HOUSTON, TX 77253-3128 ACE PETROLEUM COMPANY ANDREW C CLIFFORD PO BOX 79593 HOUSTON, TX 77279-9593 PHILLIPS PETR CO JOE VOELKER 6330 W LP S RM 492 BELLAIRE, TX 77401 PHILLIPS PETR CO ~ . ERICH R. RAMP 6330 W LOOP SOUTH - BELLAIRE, TX 77401 PHILLIPS PETR CO PARTNERSHIP OPRNS JIM JOHNSON 6330 W LOOP S RM 1132 BELLAIRE, TX 77401 TEXACO INC R Ewing Clemons P O BOX 430 BELLAIRE, TX 77402-0430 WATTY STRICKLAND 2803 SANCTUARY CV KATY, TX 77450-8510 TESORO PETR CORP LOTS DOWNS 300 CONCORD PLAZA DRIVE SAN ANTONIO, TX 78216-6999 INTL OIL SCOUTS MASON MAP SERV INC P O BOX 338 AUSTIN, TX 78767 ROBERT G GRAVELY 7681 S KIT CARSON DR LITTLETON, CO 80122 DIANE SUCHOMEL 10507D W MAPLEWOOD DR LITTLETON, CO 80127 GEORGE G NAUGHT JR P O BOX 13557 DENVER, CO 80201 AMOCO PROD CO LIBRARY RM 1770 JILL MALLY 1670 BROADWAY DENVER, CO 80202 C & R INDUSTRIES, INC. ~ • KURT SALTSGAVER 1801 BROADWAY STE 1205 - DENVER, CO 80202 US GEOLOGICAL SURVEY LIBRARY BOX 25046 MS 914 DENVER, CO 80225-0046 JERRY HODGDEN GEOL 408 18TH ST GOLDEN, CO 80401 NRG ASSOC RICHARD NEHRING P O BOX 1655 COLORADO SPRINGS, CO 80901-1655 RUBICON PETROLEUM, LLC BRUCEICLARDY SIX PINE ROAD COLORADO SPRINGS, CO 80906 JOHN A LEVORSEN 200 N 3RD ST #1202 BOISE, ID 83702 RUI ANALYTICAL JERRY BERGOSH P O BOX 58861 SALT LAKE CITY, UT 84158-0861 TAHOMA RESOURCES GARY PLAYER 1671 WEST 546 S CEDER CITY, UT 84720 US GEOLOGICAL SURVEY LIBRARY 2255 N GEMINI DR FLAGSTAFF, AZ 86001-1698 MUNGER OIL INFOR SERV INC P O BOX 45738 LOS ANGELES, CA 90045-0738 LA PUBLIC LIBRARY SERIALS DIV 630 W 5TH ST LOS ANGELES, CA 90071 BABSON & SHEPPARD JOHN F BERGQUIST P O BOX 8279 VIKING STN LONG BEACH, CA 90808-0279 ANTONIO MADRID P OBOX 94625 PASADENA, CA 91109 ORO NEGRO, INC. 9321 MELVIN AVE NORTHRIDGE, CA 91324-2410 76 PRODUCTS COMPANY CHARLES BURRUSS RM 11-767 555 ANTON COSTA MESA, CA 92626 TEXACO INC Portfolio Team Manager R W HILL P O BOX 5197x Bakersfield, CA 93388 US GEOLOGICAL SURVEY KEN BIRD 345 MIDDLEFIELD RD MS 999 MENLO PARK, CA 94025 SHIELDS LIBRARY GOVT DOCS DEPT UNIV OF CALIF DAVIS, CA 95616 H L WANGENHEIM 5430 SAWMILL RD SP 11 PARADISE, CA 95969-5969 ECONOMIC INSIGHT INC SAM VAN VACTOR P O BOX 683 PORTLAND, OR 97207 US EPA REGION 10 LAURIE MANN OW-130 1200 SIXTH AVE _ SEATTLE, WA 98101 MARPLES BUSINESS NEWSLETTER MICHAEL J PARKS 117 W MERCER ST STE 200 SEATTLE, WA 98119-3960 DEPT OF REVENUE OIL & GAS AUDIT DENISE HAWES 550 W 7TH AV STE 570 ANCHORAGE, AK 99501 FAIRWEATHER E&P SERV INC JESSE MOHRBACHER 715 I ST #4 ANCHORAGE, AK 99501 GUESS & RUDD GEORGE LYLE 510 L ST, STE 700 ANCHORAGE, AK 99501 STATE PIPELINE OFFICE LIBRARY KATE MUNSON 411 W 4TH AVE, STE 2 ANCHORAGE, AK 99501 TRUSTEES FOR ALASKA 725 CHRISTENSEN DR STE 4 ANCHORAGE, AK 99501 DUSTY RHODES 229 WHITNEY RD ANCHORAGE, AK 99501 DEPT OF REVENUE BEVERLY MAROUART 550 W 7TH AV STE 570 ANCHORAGE, AK 99501 FORCENERGYINC. JIM ARLINGTON 310 K STREET STE 700 ANCHORAGE, AK 99501 YUKON PACIFIC CORP ~ . JOHN HORN VICE CHM 1049 W 5TH AV _ ANCHORAGE, AK 99501-1930 PRESTON GATES ELLIS LLP LIBRARY 420 L ST STE 400 ANCHORAGE, AK 99501-1937 ALASKA DEPT OF LAW ROBERT E MINTZ -ASST ATTY GEN 1031 W 4TH AV STE 200 ANCHORAGE, AK 99501-1994 GAFO GREENPEACE PAMELA MILLER 125 CHRISTENSEN DR. #2 ANCHORAGE, AK 99501-2101 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS TIM RYHERD 550 W 7th AVE STE 800 ANCHORAGE, AK 99501-3510 DEPT OF REVENUE OIL & GAS AUDIT FRANK PARR 550 W 7TH AVE STE 570 ANCHORAGE, AK 99501-3540 BRISTOL ENVIR SERVICES JIM MUNTER 2000 W. INTL AIRPORT RD #C-1 ANCHORAGE, AK 99502-1116 HDR ALASKA INC MARK DALTON 2525 C ST STE 305 ANCHORAGE, AK 99503 BAKER OIL TOOLS ALASKA AREA MGR 4710 BUS PK BLVD STE 36 ANCHORAGE, AK 99503 N-I TUBULARS INC 3301 C Street Ste 209 ANCHORAGE, AK 99503 ANADARKO • . MARK HANLEY 3201 C STREET STE 603 _ ANCHORAGE, AK 99503 ALASKA OIL & GAS ASSOC JUDY BRADY 121 W FIREWEED LN STE 207 ANCHORAGE, AK 99503-2035 ANADRILL-SCHLUMBERGER 3940 ARCTIC BLVD #300 ANCHORAGE, AK 99503-5711 AK JOURNAL OF COMMERCE OIL & INDUSTRY NEWS ROSE RAGSDALE 4220 B Street Ste #210 ANCHORAGE, AK 99503-5911 DEPT OF NATURAL RESOURCES PUBLIC INFORMATION CTR 3601 C STREET STE 200 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS JIM STOUFFER 3601 C STREET STE 1380 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS JAMES B HAYNES NATURAL RESRCE MGR 3601 C ST STE 1380 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS JULIE HOULE 3601 C ST STE 1380 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OIL & GAS WILLIAM VAN DYKE 3601 C ST STE 1380 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS BRUCE WEBS 3601 C ST STE 1380 ANCHORAGE, AK 99503-5948 FINK ENVIRONMENTAL CONSULTING, INC• • THOMAS FINK, PHD 6359 COLLATE DR. _ ANCHORAGE, AK 99504-3305 ARLEN EHM GEOL CONSLTNT 2420 FOXHALL DR ANCHORAGE, AK 99504-3342 JAMES E EASON 8611 LEEPER CIRCLE ANCHORAGE, AK 99504-4209 US BUREAU OF LAND MNGMNT ANCHORAGE DIST OFC DICK POLAND 6881 ABBOTT LOOP RD ANCHORAGE, AK 99507 RUSSELL DOUGLASS 6750 TESHLAR DR ANCHORAGE, AK 99507 STU HIRSH 9630 BASHER DR. ANCHORAGE, AK 99507 AMERICA/CANADIAN STRATIGRPH CO RON BROCKWAY 4800 KUPREANOF ANCHORAGE, AK 99507 US BUREAU OF LAND MNGMNT ANCHORAGE DIST OFC PETER J DITTON 6881 ABBOTT LOOP ROAD ANCHORAGE, AK 99507 US BLM AK DIST OFG RESOURCE EVAL GRP ART BONET 6881 ABBOTT LOOP RD ANCHORAGE, AK 99507-2899 TRADING BAY ENERGY CORP PAUL CRAIG 5432 NORTHERN LIGHTS BLVD ANCHORAGE, AK 99508 THOMAS R MARSHALL JR 1569 BIRCHWOOD ST ANCHORAGE, AK 99508 UNIVERSITY OF ALASKA ANCHORAGE INST OF SOCIAL & ECON RESEARCH TERESA HULL 3211 PROVIDENCE DR ANCHORAGE, AK 99508 US MIN MGMT SERV AK OCS REGIONAL DIR 949E 36TH AV RM 110 ANCHORAGE, AK 99508-4302 US MIN MGMT SERV RESOURCE STUDIES AK OCS REGN KIRK W SHERWOOD 949E 36TH AV RM 603 ANCHORAGE, AK 99508-4302 US MIN MGMT SERV RICHARD PRENTKI 949E 36TH AV ANCHORAGE, AK 99508-4302 GORDON J. SEVERSON 3201 WESTMAR CIR ANCHORAGE, AK 99508-4336 US MIN MGMT SERV LIBRARY 949E 36TH AV RM 603 ANCHORAGE, AK 99508-4363 US MIN MGMT SERV RESOURCE EVAL JIM SCHERR 949E 36TH AV RM 603 ANCHORAGE, AK 99508-4363 US MIN MGMT SERV FRANK MILLER 949E 36TH AV STE 603 ANCHORAGE, AK 99508-4363 REGIONAL SUPRVISOR, FIELD OPERATNS MINERALS MANAGEMENT SERVICE ALASKA OCS REGION 949E 36TH AV STE 308 ANCHORAGE, AK 99508-4363 JOHN MILLER i 3445 FORDHAM DR ANCHORAGE, AK 99508-4555 USGS -ALASKA SECTION LIBRARY 4200 UNIVERSITY DR ANCHORAGE, AK 99508-4667 CIRI LAND DEPT P O BOX 93330 ANCHORAGE, AK 99509-3330 ANCHORAGE TIMES BERT TARRANT P O BOX 100040 ANCHORAGE, AK 99510-0040 ARCO ALASKA INC JOANN GRUBER ATO 712 P O BOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC LEGAL DEPT MARK P WORCESTER P O BOX 100360 .ANCHORAGE, AK 99510-0360 ARCO ALASKA INC STEVE BENZLER ATO 1404 P O BOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC LIBRARY P O BOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC MARK MAJOR ATO 1968 P O BOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC LAND DEPT JAMES WINEGARNER P O BOX 10036 ANCHORAGE, AK 99510-0360 i ARCO ALASKA INC SAM DENNIS ATO 1388 • P O BOX 100360 _ ANCHORAGE, AK 99510-0360 ARCO ALASKA INC SHELIA ANDREWS ATO 1130 PO BOX 100360 ANCHORAGE, AK 99510-0360 PETROLEUM INFO CORP KRISTEN NELSON P O BOX 102278 ANCHORAGE, AK 99510-2278 ARCO ALASKA INC KUP CENTRAL WELLS ST TSTNG WELL ENG TECH NSK 69 P O BOX 196105 ANCHORAGE, AK 99510-6105 ALYESKA PIPELINE SERV CO CHUCK O'DONNELL 1835 S BRAGAW - MS 5306 ANCHORAGE, AK 99512 ALYESKA PIPELINE SERV CO PERRY A MARKLEY 1835 S BRAGAW - MS 575 ANCHORAGE, AK 99512 ALYESKA PIPELINE SERV CO LEGAL DEPT 1835 S BRAGAW ANCHORAGE, AK 99512-0099 US BUREAU OF LAND MGMT OIL & GAS OPRNS (984) J A DYGAS 222 W 7TH AV #13 ANCHORAGE, AK 99513-7599 ANCHORAGE DAILY NEWS EDITORIAL PG EDTR MICHAEL CAREY P O BOX 149001 ANCHORAGE, AK 99514 DAVID W. JOHNSTON 320 MARINER DR. ANCHORAGE, AK 99515 JWL ENGINEERING • JEFF LIPSCOMB 9921 MAIN TREE DR. _ ANCHORAGE, AK 99516-6510 NORTHERN CONSULTING GROUP ROBERT BRITCH, P.E. 2454 TELEQUANA DR. ANCHORAGE, AK 99517 GERALD GANOPOLE CONSULT GEOL 2536 ARLINGTON ANCHORAGE, AK 99517-1303 ASRC CONRAD BAGNE 301 ARCTIC SLOPE AV STE 300 ANCHORAGE, AK 99518 DAVID CUSATO 600 W 76TH AV #508 ANCHORAGE,, AK 99518 ARMAND SPIELMAN 651 HILANDER CIRCLE ANCHORAGE, AK 99518 HALLIBURTON ENERGY SERV MARK WEDMAN 6900 ARCTIC BLVD ANCHORAGE, AK 99518-2146 OPSTAD8~ASSOC ERIK A OPSTAD PROF GEOL P O BOX 190754 ANCHORAGE, AK 99519 JACK O HAKKILA P O BOX 190083 ANCHORAGE, AK 99519-0083 ENSTAR NATURAL GAS CO BARRETT HATCHES P O BOX 190288 ANCHORAGE, AK 99519-0288 MARATHON OIL CO BRAD PENN P O BOX 196168 ANCHORAGE, AK 99519-6168 MARATHON OIL CO OPERATIONS SUPT P O BOX 196168 ANCHORAGE, AK 99519-6168 UNOCAL P O BOX 196247 ANCHORAGE, AK 99519-6247 UNOCAL KEVIN TABLER P O BOX 196247 ANCHORAGE, AK 99519-6247 EXXONMOBIL PRODUCTION COMPANY MARK P EVANS PO BOX 196601 ANCHORAGE, AK 99519-6601 BP EXPLORATION (ALASKA), INC. MARK BERLINGER MB 8-1 PO BOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC SUE MILLER P O BOX 196612 M/S LR2-3 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC PETE ZSELECZKY LAND MGR P O BOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC INFO RESOURCE CTR MB 3-2 P O BOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC BOB WILKS MB 5-3 P O BOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC • • MR. DAVIS, ESQ P O BOX 196612 MB 13-5 _ ANCHORAGE, AK 99519-6612 AMSI/VALLEE CO INC WILLIAM O VALLEE PRES PO BOX 243086 ANCHORAGE, AK 99524-3086 DIANA FLECK 18112 MEADOW CRK DR EAGLE RIVER, AK 99577 L G POST O&G LAND MGMT CONSULT 10510 Constitution Circle EAGLE RIVER, AK 99577 D A PLATT & ASSOC 9852 LITTLE DIOMEDE CIR EAGLE RIVER, AK 99577 PINNACLE STEVE TYLER 2Q231 REVERE CIRCLE EAGLE RIVER, AK 99577 DEPT OF NATURAL RESOURCES DGGS JOHN REEDER P O BOX 772805 EAGLE RIVER, AK 99577-2805 COOK INLET KEEPER BOB SHAVELSON PO BOX 3269 HOMER, AK 99603 COOK INLET VIGIL JAMES RODERICK P O BOX 916 HOMER, AK 99603 PHILLIPS PETR ALASKA OPERATIONS MANAGER J W KONST P O DRAWER 66 KENAI, AK 99611 RON DOLCHOK • P O BOX 83 _ KENAI, AK 99611 DOCUMENT SERVICE CO JOHN PARKER P O BOX 1468 KENAI, AK 99611-1468 KENAI PENINSULA BOROUGH ECONOMIC DEVEL DISTR STAN STEADMAN P O BOX 3029 KENAI, AK 99611-3029 NANCY LORD PO BOX 558 HOMER, AK 99623 PENNY VADLA P O BOX 467 NINILCHIK, AK 99639 BELOWICH COAL CONSULTING MICHAEL A BELOWICH HC31 BOX 5157 WASILLA, AK 99654 PACE SHEILA DICKSON P O BOX 2018 SOLDOTNA, AK 99669 JAMES GIBBS P O BOX 1597 SOLDOTNA, AK 99669 KENAI NATL WILDLIFE REFUGE REFUGE MGR P O BOX 2139 SOLDOTNA, AK 99669-2139 ALYESKA PIPELINE SERVICE CO VALDEZ CORP AFFAIRS SANDY MCCLINTOCK P O BOX 300 MS/701 VALDEZ, AK 99686 VALDEZ PIONEER . • P O BOX 367 VALDEZ, AK 99686 VALDEZ VANGUARD EDITOR P O BOX 98 VALDEZ, AK 99686-0098 NICK STEPOVICH 543 2ND AVE FAIRBANKS, AK 99701 UNIV OF ALASKA FAIRBANKS PETR DEVEL LAB DR V A KAMATH 427 DUCKERING FAIRBANKS, AK 99701 RICK WAGNER P O BOX 60868 FAIRBANKS, AK 99706 JACK HAKKILA P O BOX 61604 FAIRBANKS, AK 99706-1604 C BURGLIN P O BOX 131 FAIRBANKS, AK 99707 FAIRBANKS DAILY NEWS-MINER KATE RIPLEY P O BOX 70710 FAIRBANKS, AK 99707 FRED PRATT P O BOX 72981 FAIRBANKS, AK 99707-2981 DEPT OF NATURAL RESOURCES DIV OF LAND REG MGR NORTHERN REGION 3700 AIRPORT WAY FAIRBANKS, AK 99709-4699 K&K RECYCL INC P O BOX 58055 ~ . FAIRBANKS, AK 99711 ASRC BILL THOMAS P O BOX 129 BARROW, AK 99723 RICHARD FINEBERG P O BOX 416 ESTER, AK 99725 UNIV OF ALASKA FBX PETR DEVEL LAB SHIRISH PATIL 437 DICKERING FAIRBANKS, AK 99775 UNIVERSITY OF ALASKA FBKS PETR DEVEL LAB DR AKANNI LAWAL P O BOX 755880 FAIRBANKS, AK 99775-5880 SENATOR LOREN LEMAN STATE CAPITOL RM 113 JUNEAU, AK 99801-1182. DEPT OF ENVIRON CONSERV SPAR CHRIS PACE 410 WILLOUGHBY AV STE 105 JUNEAU, AK 99801-1795 ~ 4 BP EXPLORATION February 17, 2000 Robert N. Christenson, Chairman Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, AK 99501-3192 Re: Eider Pool Rules Supplemental Application Dear Mr. Christenson, • BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 On February 9, 2000, BPXA received a request from the AOGCC for further information on the Eider Pool Rules application. Please find BPXA's response in the enclosed Supplemental Information for the Eider Pool Rules and Area Injection Order. BPXA appreciates the opportunity to answer the questions you have raised in a timely manner. If you have any further questions, please feel free to contact me at 564-5361 or Eric Ding at 564-5594. Sincerely, a' G `' t Gary M. Osborne ENS Subsurface Manager Attachment ~~ ^~ 18 Z~fld ~~ ~ I>!k~lltl . .. ~ ~r r~rcrtr~ ~an~rs ~3 Questions and requests for information -Eider CO and AIO L ~ Subject: Questions and requests for information -Eider CO and AIO Date: Wed, 09 Feb 2000 17:18:52 -0900 From: Jack Hartz <jack_hartz@admin.state.ak.us> Internal Organization: Alaska Oil & Gas Conservation Commission To: Eric Ding <DingER@BP.com> CC: Stephen F Davies <steve_davies@admin.state.ak.us> , Robert Crandall <bob_crandall@admin.state.ak.us> , Diana Fleck <diana_fleck@admin.state.ak.us> Eric, The public hearing was noticed to the public and scheduled for March 28, 2000. I believe the notice is on our web site and should have the deadline for public comment. I will include the link to our site. The staff has put together some questions for your consideration and preparation for the hearing. You can make a supplemental submission to your application whenever the information is ready. I will be out of town for two weeks starting 2/11 so if you have any questions call Steve Davies at 793-1224 or Bob Crandall at 793-1230. Call or email me if you are unable to open the attachments. Jack Hartz affil and g~~ conservation ~ommi~sion Public Meeting Schedule 8, 10, 14, 16, 23, 8~ 28 February, 2000 Under the Open Meetings Act (AS 44.62.310], notice is given that the Alaska Oil and Gas Conservation will meet in public meetings on February 8, February 16, and February 23, 2000 at 9:00 AM, and February 10, February 14, and February 28, 2000 at 1:30 PM in the Commission's Conference Room in Anchorage, Alaska. Full Notice Public Hearing Schedule No Public Hearings Scheduled Possible Public Hearings 28 March, 2000 BP Exploration (Alaska) Inc. by letter dated January 27, 2000, has petitioned the Alaska Oil and Gas Conservation Commission under 20 AAC 25.520 to hold a public hearing to present testimony to establish pool rules and allow enhanced recovery operations on an area basis in the Eider Pool, Endicott Field, Duck Island Unit on the North Sfope of Alaska. Full Notice 21 March, 2000 ARCO Alaska, Inc. by letter dated February 3, 2000, has requested an of 2 :-'9100 5;18 PN 1 ~ AOGCC February 7, 2000 EIDER CO / AIO QUESTIONS AND REQUESTS FOR ADDITIONAL INFORMATION 1. We112-30A/EI02 produces from which sand(s)? 2. For the 2-56A/EI01 and 2-30A/EI02 wells, please provide a listing of perforations within each reservoir sand. 3. Please provide horizontal and vertical permeability estimates for the upper, middle and lower sands. 4. Do you anticipate significant permeability variations? If so, why? 5. What was the original pressure of the field? (Exhibit F2 indicates it was equivalent to the bubble point.) 6. Since production stopped, have you seen any recovery of pressure in either well? (Please provide supporting data). 7. Do existing pressure or production data indicate good pressure communication between the two existing wells? 8. What will be the injection strategy once enhanced recovery operations start? (Will voidage be balanced, or will water be over-injected to restore the field to pressure above the bubble point?) 9. What are the ultimate recovery impacts of re-pressurization versus having maintained original pressure throughout the life of the field? 10. How will the proposed injection strategy maximize sweep efficiency in the three reservoir intervals? 11. What are the potential ultimate recovery impacts of additional drilling within the delineated portion of the reservoir? (Should spacing rules accommodate additional wells? At what spacing?) 12. Do you foresee any more penetrations within the Eider Oil Pool at this time? 13. What is your assessment of the extent of the oil accumulation down dip of the currently delineated Eider Oil Pool? 14. Will work continue to evaluate the extent of the down dip oil accumulation? In what form? ORIGINAL L (Geology):\ Correspondence_and_Notes\Eider\AOGCC_Questions.doc - L.Lo% 7wz • • Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Eider Pool, Endicott Field, Duck Island Unit -Pool Rules and Area Injection Order BP Exploration (Alaska) Inc. by letter dated January 27, 2000, has petitioned the Alaska Oil and Gas Conservation Commission under 20 AAC 25.520 to hold a public hearing to present testimony to establish pool rules and allow enhanced recovery operations on an area basis in the Eider Pool, Endicott Field, Duck Island Unit on the North Slope of Alaska. A hearing will be held at the Alaska Oil and Gas Conservation Commission, 3001 Porcupine Drive, Anchorage, Alaska 99501, at 9:00 AM on March 28, 2000, in conformance with 20 AAC 25.540. All interested persons and parties are invited to present testimony. If you are a person with a disability who may need a special modification in order to comment or to attend the public hearing, please contact Diana Fleck at 793-1221 before March 21, 2000. Robert N. Christenson, P.E. Chair Published Febriu~zyS, 2000 ADN AO#'02014024/9 chorage Daily News Affidavit of Publication 1001 Northway Drive, Anchorage, AK 99508 Ad # Date Puchase Order Edition Account Price Per Dav 275822 02/05/2000 02014024A DN STOF0330 $65.79 $65.79 STATE OF ALASKA THIRD JUDICIAL DISTRICT Eva Alexie, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, Native or P°e)tc Hear,n,i a daily newspaper. stnTE of A~ASkA Alpaka ®il and Gas That said newspaper has been approved by the Third Judicial conseryatian commissigry Re: Eider Pool, EndicoN I Court, Anchorage, Alaska, and it now and has been published in Fieta, ot)~k Istand unit - ,~ the English language continually as a daily newspaper in +o~t~rae{S and Area It,iec-~ Anchorage, Alaska, and it is now and during all said time was sP EkP)oration (Alaska) -Inc, by; etter dated Janu-' printed in an office maintained at the aforesaid place of ary4zP -~ooo, has peritloned thg~^ f: Skb Qil and Caas publication of said newspaper. That the annexed is a copy of an canseration }fiamm,saldn under 2p AAC 25.$20 to P1pld advertisement as it was published in regular issues (and not in a uubt;c heari~'to cresertr supplemental form) of said newspaper on the above dates and testimony to establish pa01 ..rules. i]nd'attowr enhcirr~ed recovery ot7erdtions on an that such newspaper was regularly distributed to its subscribers area 'basis to -tire 1=taer Pool, Endicott Ffeld, Quck during all of said period. That the full amount of the fee charged sow f Alaska the North for the foregoing publication is not in excess of the rate charged A hearing will be held of private individuals. the Alaska oil and Gas r..-, Conservation Commission, ~ , 3007 Porcupine price, ~-~ ~ l' f; Anchorage, Alaska 99501, at Legal Clerk_-~~~~-ll~-__XXX~__-J~- ~ti~._f~------ n 00~on o°m~~e hw~h20~ -_t--- AAC 25.540. All interestBtt ~ persons are Invited to Subscribed and sworn to me before this date: present testimony. 1 __ " If you are a person with a ~~ ' ~p1 disability who may need q. . - i~~iV ~ special modification in. ...~~~LLL~[ order to testify or to aitertd ---------- ------------------ the Public hearing, Please contact Diana Fleck at I93- Notary Public in and for the State of Alaska. si2~oo.0 '°'®"~ ')'°" Alarch Third Division. Anchorage, Alaska ~~n iv. chrtsfensan, P.J~.. CAafr: n I ~ AD-02074024A MY COMMISSION EXPIRES: ~ ~ c~~ Fub; Feb. 5, 2pOp ------- ---- ----------- ~`~``~~~Y ~ ~~ ~ rC+ ti ., ''~~~IC / ~~ A~~A ~ X11, J , ~JJIJ~~lll~j))) l 1'11}1 ~~ ~~( 1 c.'C.. DRI / McGraw Hill Randall Nottingham ~ ~, 24 Hartwell Lexington, MA 02173 PIRA ENERGY GROUP LIBRARY 3 PARK AVENUE (34th & PARK) NEW YORK, NY 10016 OVERSEAS SHIPHOLDING GRP ECON DEPT 1114 AV OF THE AMERICAS NEW YORK, NY 10036 NY PUBLIC LIBRARY DIV E GRAND CENTRAL STATION P O BOX 2221 NEW YORK, NY 10163-2221 ALASKA OFC OF THE GOVERNOR JOHN KATZ STE 518 444 N CAPITOL NW WASHINGTON, DC 20001 ARENT FOX KINTNER PLOTKIN KAHN LIBRARY WASHINGTON SQ BLDG 1050 CONNECTICUT AV NW WASHINGTON, DC 20036-5339 US MIN MGMT SERV CHIEF OCS STATS 8~ INFO 381 ELDEN ST MS 4022 HERNDON, VA 20170-4817 LIBRARY OF CONGRESS STATE DOCUMENT SECTION EXCH & GIFT DIV 10 FIRST ST SE WASHINGTON, DC 20540 U S DEPT OF ENERGY PHYLLIS MARTIN MS EI823 1000 INDEPENDENCE SW WASHINGTON, DC 20585 TECHSYS CORP BRANDY KERNS PO BOX 8485 GATHERSBURG, MD 20898 'VYl ~'t ~... ©[c~~' US GEOLOGICAL SURVEY LIBRARY NATIONAL CTR MS 950 RESTON, VA 22092 DPC DANIEL DONKEL 1420 NORTH ATLANTIC AVE, STE 204 DAYTON BEACH, FL 32118 SD DEPT OF ENV & NATRL RESOURCES OIL & GAS PROGRAM 2050 W MAIN STE #1 RAPID CITY, SD 57702 AMOCO CORP 2002A LIBRARY/INFO CTR P O BOX 87703 CHICAGO, IL 60680-0703 ILLINOIS STATE GEOL SURV LIBRARY 469 NATURAL RESOURCES BLDG 615 E PEABODY DR CHAMPAIGN, IL 61820 LINDA HALL LIBRARY SERIALS DEPT 5109 CHERRY ST KANSAS CITY, MO 64110-2498 ALFRED JAMES III 107 N MARKET STE 1000 WICHITA, KS 67202-1811 MURPHY E8~P CO ROBERT F SAWYER P O BOX 61780 NEW ORLEANS, LA 70161 UNIV OF ARKANSAS SERIALS DEPT UNIV LIBRARIES FAYETTEVILLE, AR 72701 CROSS TIMBERS OPERATIONS SUSAN LILLY 210 PARK AVE STE 2350 OKLAHOMA CITY, OK 73102-5605 DWIGHTS ENERGYDATA INC JERLENE A BRIGHT DIRECTOR PO BOX 26304 - OKLAHOMA CITY, OK 73126 IOGCC P O BOX 53127 OKLAHOMA CITY, OK 73152-3127 R E MCMILLEN CONSULT GEOL 202E 16TH ST OWASSO, OK 74055-4905 OIL & GAS JOURNAL LAURA BELL P O BOX 1260 TULSA, OK 74101 GAFFNEY, CLINE & ASSOCIATES LIBRARY 16775 ADDISON RD STE 400 ADDISON, TX 75001 GAFFNEY, CLINE & ASSOC., INC. LIBRARY 16775 ADDISON RD, STE 400 ADDISON, TX 75001 BAPI RAJU 335 PINYON LN COPPELL, TX 75019 MARK S MALINOWSKY 15973 VALLEY VW FORNEY, TX 75126-5852 US DEPT OF ENERGY ENERGY INFORMATION ADMINISTRATION MIR YOUSUFUDDIN 1999 BRYAN STREET STE 1110 DALLAS, TX .75201-6801 DEGOLYER & MACNAUGHTON MIDCONTINENT DIVISION ONE ENERGY SO, STE 400 4925 GREENVILLE AVE DALLAS, TX 75206-4083 JERRY SCHMIDT 4010 SILVERWOOD DR TYLER, TX 75701-9339 STANDARD AMERICAN OIL CO AL GRIFFITH P O BOX 370 GRANBURY, TX 76048 CROSS TIMBERS OIL COMPANY MARY JONES 810 HOUSTON ST STE 2000 FORT WORTH, TX 76102-6298 PRITCHARD & ABBOTT BOYCE B BOLTON PE RPA 4521 S. HULEN STE 100 FT WORTH, TX 76109-4948 SHELL WESTERN E&P INC G.S. NADY P O BOX 576 HOUSTON, TX 77001-0574 ENERGY GRAPHICS MARTY LINGNER 1600 SMITH ST, STE 4900 HOUSTON, TX 77002 H J GRUY ATTN: ROBERT RASOR 1200 SMITH STREET STE 3040 HOUSTON, TX 77002 PURVIN & GERTZ INC LIBRARY 2150 TEXAS COMMERCE TWR 600 TRAVIS ST HOUSTON, TX 77002-2979 RAY TYSON 1617 FANNIN ST APT 2015 HOUSTON, TX 77002-7639 CHEVRON PAUL WALKER 1301. MCKINNEY RM 1750 HOUSTON, TX 77010 BONNER & MOORE LIBRARY H2O 2727 ALLEN PKWY STE 1200 HOUSTON, TX 77019 OIL & GAS JOURNAL BOB WILLIAMS 1700 W LOOP SOUTH STE 1000 HOUSTON, TX 77027 PETRAL CONSULTING CO DANIEL L LIPPE 9800 RICHMOND STE 505 HOUSTON, TX 77042 MARK ALEXANDER 7502 ALCOMITA HOUSTON, TX 77083 MARATHON OIL CO GEORGE ROTHSCHILD JR RM 2537 POBOX4813 HOUSTON, TX 77210 UNOCAL REVENUE ACCOUNTING P O BOX 4531 HOUSTON, TX 77210-4531 EXXON EXPLORATION CO. T E ALFORD P O BOX 4778 HOUSTON, TX 77210-4778 EXXON EXPLOR CO LAND/REGULATORY AFFAIRS RM 301 P O BOX 4778 HOUSTON, TX 7721-0-4778 CHEVRON USA INC. ALASKA DIVISION ATTN: CORRY WOOLINGTON P O BOX 1635 HOUSTON, TX 77251 PETR INFO DAVID PHILLIPS P O BOX 1702 HOUSTON, TX 77251-1702 PHILLIPS PETR CO ~ • ALASKA LAND MGR P O BOX 1967 - HOUSTON, TX 77251-1967 PHILLIPS PETROLEUM COMPANY W ALLEN HUCKABAY PO BOX 1967 HOUSTON, TX 77251-1967 WORLD OIL MARK TEEL ENGR ED P O BOX 2608 HOUSTON, TX 77252 EXXONMOBIL PRODUCTION COMPANY J W KIKER ROOM 2086 P O BOX 2180 HOUSTON, TX 77252-2180 EXXONMOBIL PRODUCTION COMPANY GARY M ROBERTS RM 3039 P O BOX 2180 HOUSTON, TX 77252-2180 PENNZOIL E&P WILL D MCCROCKLIN P O BOX 2967 HOUSTON, TX 77252-2967 CHEVRON CHEM CO LIBRARY & INFO CTR P O BOX 2100 HOUSTON, TX 77252-9987 MARATHON Ms. Norma L. Calvert P O BOX 3128, Ste 3915 HOUSTON, TX 77253-3128 ACE PETROLEUM COMPANY ANDREW C CLIFFORD PO BOX 79593 HOUSTON, TX 77279-9593 PHILLIPS PETR CO JOE VOELKER 6330 W LP S RM 492 BELLAIRE, TX 77401 PHILLIPS PETR CO ERICH R. RAMP 6330 W LOOP SOUTH - BELLAIRE, TX 77401 PHILLIPS PETR CO PARTNERSHIP OPRNS JIM JOHNSON 6330 W LOOP S RM 1132 BELLAIRE, TX 77401 TEXACO INC R Ewing Clemons P O BOX 430 BELLAIRE, TX 77402-0430 WATTY STRICKLAND 2803 SANCTUARY CV KATY, TX 77450-8510 TESORO PETR CORP LOIS DOWNS 300 CONCORD PLAZA DRIVE SAN ANTONIO, TX 78216-6999 INTL OIL SCOUTS MASON MAP SERV INC P O BOX 338 AUSTIN, TX 78767 ROBERT G GRAVELY 7681 S KIT CARSON DR LITTLETON, CO 80122 DIANE SUCHOMEL 10507D W MAPLEWOOD DR LITTLETON, CO 80127 GEORGE G NAUGHT JR P O BOX 13557 DENVER, CO 80201 AMOCO PROD CO LIBRARY RM 1770 JILL MALLY 1670 BROADWAY DENVER, CO 80202 C & R INDUSTRIES, INC. ~ • KURT SALTSGAVER 1801 BROADWAY STE 1205 _ DENVER, CO 80202 US GEOLOGICAL SURVEY LIBRARY BOX 25046 MS 914 DENVER, CO 80225-0046 JERRY HODGDEN GEOL 408 18TH ST GOLDEN, CO 80401 NRG ASSOC RICHARD NEHRING P O BOX 1655 COLORADO SPRINGS, CO 80901-1655 RUBICON PETROLEUM, LLC BRUCEICLARDY SIX PINE ROAD COLORADO SPRINGS, CO 80906 JOHN A LEVORSEN 200 N 3RD ST #1202 BOISE, ID 83702 RUI ANALYTICAL JERRY BERGOSH P O BOX 58861 SALT LAKE CITY, UT 84158-0861 TAHOMA RESOURCES GARY PLAYER 1671 WEST 546 S CEDER CITY, UT 84720 US GEOLOGICAL SURVEY LIBRARY 2255 N GEMINI DR FLAGSTAFF, AZ 86001-1698 MUNGER OIL INFOR SERV INC P O BOX 45738 LOS ANGELES, CA 90045-0738 LA PUBLIC LIBRARY SERIALS DIV 630 W 5TH ST _ LOS ANGELES, CA 90071 BABSON & SHEPPARD JOHN F BERGOUIST P O BOX 8279 VIKING STN LONG BEACH, CA 90808-0279 ANTONIO MADRID P O BOX 94625 PASADENA, CA 91109 ORO NEGRO, INC. 9321 MELVIN AVE NORTHRIDGE, CA 91324-2410 76 PRODUCTS COMPANY CHARLES BURRUSS RM 11-767 555 ANTON COSTA MESA, CA 92626 TEXACO INC Portfolio Team Manager R W HILL P O BOX 5197x Bakersfield, CA 93388 US GEOLOGICAL SURVEY KEN BIRD 345 MIDDLEFIELD RD MS 999 MENLO PARK, CA 94025 SHIELDS LIBRARY GOVT DOCS DEPT UNIV OF CALIF DAVIS, CA 95616 H L WANGENHEIM 5430 SAWMILL RD SP 11 PARADISE, CA 95969-5969 ECONOMIC INSIGHT INC SAM VAN VACTOR P 0 BOX 683 PORTLAND, OR 97207 US EPA REGION 10 LAURIE MANN OW-130 1200 SIXTH AVE _ SEATTLE, WA 98101 MARPLES BUSINESS NEWSLETTER MICHAEL J PARKS 117 W MERCER. ST STE 200 SEATTLE, WA 98119-3960 DEPT OF REVENUE OIL & GAS AUDIT DENISE HAWES 550 W 7TH AV STE 570 ANCHORAGE, AK 99501 FAIRWEATHER E&P SERV INC JESSE MOHRBACHER 715 I ST #4 ANCHORAGE, AK 99501 GUESS & RUDD GEORGE LYLE 510 L ST, STE 700 ANCHORAGE, AK 99501 STATE PIPELINE OFFICE LIBRARY KATE MUNSON 411 W 4TH AVE, STE 2 ANCHORAGE, AK 99501 TRUSTEES FOR ALASKA 725 CHRISTENSEN DR STE 4 ANCHORAGE, AK 99501 DUSTY RHODES 229 WHITNEY RD ANCHORAGE, AK 99501 DEPT OF REVENUE BEVERLY MAROUART 550 W 7TH AV STE 570 ANCHORAGE, AK 99501 FORCENERGYINC. JIM ARLINGTON 310 K STREET STE 700 ANCHORAGE, AK 99501 a YUKON PACIFIC CORP ~ . JOHN HORN VICE CHM 1049 W 5TH AV _ ANCHORAGE, AK 99501-1930 PRESTON GATES ELLIS LLP LIBRARY 420 L ST STE 400 ANCHORAGE, AK 99501-1937 ALASKA DEPT OF LAW ROBERT E MINTZ ASST ATTY GEN 1031 W 4TH AV STE 200 ANCHORAGE, AK 99501-1994 GAFO GREENPEACE PAMELA MILLER 125 CHRISTENSEN DR. #2 ANCHORAGE, AK 99501-2101 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS TIM RYHERD 550 W 7th AVE STE 800 ANCHORAGE, AK 99501-3510 DEPT OF REVENUE OIL & GAS AUDIT FRANK PARR 550 W 7TH AVE STE 570 ANCHORAGE, AK 99501-3540 BRISTOL ENVIR SERVICES JIM MUNTER 2000 W. INTL AIRPORT RD #C-1 ANCHORAGE, AK 99502-1116 HDR ALASKA INC MARK DALTON 2525 C ST STE 305 ANCHORAGE, AK 99503 BAKER OIL TOOLS ALASKA AREA MGR 4710 BUS PK BLVD STE 36 ANCHORAGE, AK 99503 N-I TUBULARS INC 3301 C Street Ste 209 ANCHORAGE, AK 99503 ANADARKO MARK HANLEY 3201 C STREET STE 603 - ANCHORAGE, AK 99503 ALASKA OIL & GAS ASSOC JUDY BRADY 121 VV FIREWEED LN STE 207 ANCHORAGE, AK 99503-2035 ANADRILL-SCHLUMBERGER 3940 ARCTIC BLVD #300 ANCHORAGE, AK 99503-5711 AK JOURNAL OF COMMERCE OIL & INDUSTRY NEWS ROSE RAGSDALE 4220 B Street Ste #210 ANCHORAGE, AK 99503-5911 DEPT OF NATURAL RESOURCES PUBLIC INFORMATION CTR 3601 C STREET STE 200 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS JIM STOUFFER 3601 C STREET STE 1380 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS JAMES B HAYNES NATURAL RESRCE MGR 3601 C ST STE 1380 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS JULIE HOULE 3601 C ST STE 1380 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OIL & GAS WILLIAM VAN DYKE 3601 C ST STE 1380 ANCHORAGE, AK 99503-5948 DEPT OF NATURAL RESOURCES DIV OF OIL & GAS BRUCE WEBS 3601 C ST STE 1380 ANCHORAGE, AK 99503-5948 FINK ENVIRONMENTAL CONSULTING, IN~ THOMAS FINK, PHD 6359 COLLATE DR. - ANCHORAGE, AK 99504-3305 ARLEN EHM GEOL CONSLTNT 2420 FOXHALL DR ANCHORAGE, AK 99504-3342 JAMES E EASON 8611 LEEPER CIRCLE ANCHORAGE, AK 99504-4209 US BUREAU OF LAND MNGMNT ANCHORAGE DIST OFC DICK POLAND 6881 ABBOTT LOOP RD ANCHORAGE, AK 99507. RUSSELL DOUGLASS 6750 TESHLAR DR ANCHORAGE, AK 99507 STU HIRSH 9630 BASHER DR. ANCHORAGE, AK 99507 AMERICA/CANADIAN STRAT'IGRPH CO RON BROCKWAY 4800 KUPREANOF ANCHORAGE, AK 99507 US BUREAU OF LAND MNGMNT ANCHORAGE DIST OFC PETER J DITTON 6881 ABBOTT LOOP ROAD ANCHORAGE, AK 99507 US BLM AK DIST OFC RESOURCE EVAL GRP ART BONET 6881 ABBOTT LOOP RD ANCHORAGE, AK 99507-2899 TRADING BAY ENERGY CORP PAUL CRAIG 5432 NORTHERN LIGHTS BILVD ANCHORAGE, AK 99508 THOMAS R MARSHALL JR 1569 BIRCHWOOD ST ANCHORAGE, AK 99508 UNIVERSITY OF ALASKA ANCHORAGE INST OF SOCIAL & ECON RESEARCH TERESA HULL 3211 PROVIDENCE DR ANCHORAGE, AK 99508 US MIN MGMT SERV AK OCS REGIONAL DIR 949E 36TH AV RM 110 ANCHORAGE, AK 99508-4302 US MIN MGMT SERV RESOURCE STUDIES AK OCS REGN KIRK W SHERWOOD 949E 36TH AV RM 603 ANCHORAGE, AK 99508-4302 US MIN MGMT SERV RICHARD PRENTKI 949E 36TH AV ANCHORAGE, AK 99508-4302 GORDONJ.SEVERSON 3201 WESTMAR CIR ANCHORAGE, AK 99508-4336 US MIN MGMT SERV LIBRARY 949E 36TH AV RM 603 ANCHORAGE, AK 99508-4363 US MIN MGMT SERV RESOURCE EVAL JIM SCHERR 949E 36TH AV RM 603 ANCHORAGE, AK 99508-4363 US MIN MGMT SERV FRANK MILLER 949E 36TH AV STE 603 ANCHORAGE, AK 99508-4363 REGIONAL SUPRVISOR, FIELD OPERATNS MINERALS MANAGEMENT SERVICE ALASKA OCS REGION 949E 36TH AV STE 308 ANCHORAGE, AK 99508-4363 JOHN MILLER 3445 FORDHAM DR ANCHORAGE, AK 99508-4555 USGS -ALASKA SECTION LIBRARY 4200 UNIVERSITY DR ANCHORAGE, AK 99508-4667 CIRI LAND DEPT P O BOX 93330 ANCHORAGE, AK 99509-3330 ANCHORAGE TIMES BERT TARRANT P O BOX 100040 ANCHORAGE, AK 99510-0040 ARCO ALASKA INC JOANN GRUBER ATO 712 P O BOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC LEGAL DEPT MARK P WORCESTER P O BOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC STEVE BENZLER ATO 1404 P O BOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC LIBRARY P O BOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC MARK MAJOR ATO 1968. P O BOX 100360 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC LAND DEPT JAMES WINEGARNER P O BOX 10036 ANCHORAGE, AK 99510-0360 ARCO ALASKA INC SAM DENNIS ATO 1388 P O BOX 100360 _ANCHORAGE, AK 99510-0360 ARCO ALASKA INC SHELIA ANDREWS ATO 113C PO BOX 100360 ANCHORAGE, AK 99510-0360 PETROLEUM INFO CORP KRISTEN NELSON P O BOX 102278 ANCHORAGE, AK 99510-2278 ARCO ALASKA INC KUP CENTRAL WELLS ST TSTNG WELL ENG TECH NSK 69 P O BOX 196105 ANCHORAGE, AK 99510-6105 ALYESKA PIPELINE SERV CO CHUCK O'DONNELL 1835 S BRAGAW - MS 5308 ANCHORAGE, AK 99512 ALYESKA PIPELINE SERV CO PERRY A MARKLEY 1835 SBRAGAW - MS 575 ANCHORAGE, AK 99512 ALYESKA PIPELINE SERV CO LEGAL DEPT 1835 S BRAGAW ANCHORAGE, AK 99512-0099 US BUREAU OF LAND MGMT OIL & GAS OPRNS (984) J A DYGAS 222 W 7TH AV #13 ANCHORAGE, AK 99513-7599 ANCHORAGE DAILY NEWS EDITORIAL PG EDTR MICHAEL CAREY P O BOX 149001 ANCHORAGE, AK 99514 DAVID W. JOHNSTON 320 MARINER DR. ANCHORAGE, AK 99515 JWL ENGINEERING JEFF LIPSCOMB 9921 MAIN TREE DR. _ANCHORAGE, AK 99516-6510 NORTHERN CONSULTING GROUP ROBERT BRITCH, P.E. 2454 TELEQUANA DR. ANCHORAGE, AK 99517 GERALD GANOPOLE CONSULT GEOL 2536 ARLINGTON ANCHORAGE, AK 99517-1303 ASRC CONRAD BAGNE 301 ARCTIC SLOPE AV STE 300 ANCHORAGE, AK 99518 DAVID CUSATO 600 W 76TH AV #508 ANCHORAGE, AK 99518 ARMAND SPIELMAN 651 HILANDER CIRCLE ANCHORAGE, AK 99518 HALLIBURTON ENERGY SERV MARK WEDMAN 6900 ARCTIC BLVD ANCHORAGE, AK 99518-2146 OPSTAD & ASSOC ERIK A OPSTAD PROF GEOL P O BOX 190754 ANCHORAGE, AK 99519 JACK O HAKKILA P O BOX 190083 ANCHORAGE, AK 99519-0083 ENSTAR NATURAL GAS CO BARRETT HATCHES P O BOX 190288 ANCHORAGE, AK 99519-0288 MARATHON OIL CO BRAD PENN P O BOX 196168 _ ANCHORAGE, AK 99519-6168 MARATHON OIL CO OPERATIONS SUPT P O BOX 196168 ANCHORAGE, AK 99519-6168 UNOCAL P O BOX 196247 ANCHORAGE, AK 99519-6247 UNOCAL KEVIN TABLER P O BOX 196247 ANCHORAGE, AK 99519-6247 EXXONMOBIL PRODUCTION COMPANY MARK P EVANS PO BOX 196601 ANCHORAGE, AK 99519-6601 BP EXPLORATION (ALASKA), INC. MARK BERLINGER MB 8-1 PO BOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC SUE MILLER P O BOX 196612 M/S LR2-3 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC PETE ZSELECZKY LAND MGR P O BOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC INFO RESOURCE CTR MB 3-2 P O BOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC BOB WILKS MB 5-3 POBOX196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC • MR. DAVIS, ESQ P O BOX 196612 MB 13-5 ANCHORAGE, AK 99519-6612 AMSI/VALLEE CO INC WILLIAM O VALLEE PRES PO BOX 243086 ANCHORAGE, AK 99524-3086 DIANA FLECK 18112 MEADOW CRK DR EAGLE RIVER, AK 99577 L G POST O&G LAND MGMT CONSULT 10510 Constitution Circle EAGLE RIVER, AK 99577 D A PLATT & ASSOC 9852 LITTLE DIOMEDE CIR EAGLE RIVER, AK 99577 PINNACLE STEVE TYLER 20231 REVERE CIRCLE EAGLE RIVER, AK 99577 DEPT OF NATURAL RESOURCES DGGS JOHN REEDER P O BOX 772805 EAGLE RIVER, AK 99577-2805 COOK INLET KEEPER BOB SHAVELSON PO BOX 3269 HOMER, AK 99603 COOK INLET VIGIL JAMES RODERICK P O BOX 916 HOMER, AK 99603 PHILLIPS PETR ALASKA OPERATIONS MANAGER J W KONST P O DRAWER 66 KENAI, AK 99611 RON DOLCHOK P O BOX 83 _KENAI, AK 99611 DOCUMENT SERVICE CO JOHN PARKER P O BOX 1468 KENAI, AK 99611-1468 KENAI PENINSULA BOROUGH ECONOMIC DEVEL DISTR STAN STEADMAN P O BOX 3029 KENAI; AK 99611-3029 NANCY LORD PO BOX 558 HOMER, AK 99623 PENNY VADLA P O BOX 467 NINILCHIK, AK 99639 BELOWICH COAL CONSULTING MICHAEL A BELOWICH HC31 BOX 5157 WASILLA, AK 99654 PACE SHEILA DICKSON P O BOX 2018 SOLDOTNA, AK 99669 JAMES GIBBS P O BOX 1597 SOLDOTNA, AK 99669 KENAI NATL WILDLIFE REFUGE REFUGE MGR P O BOX 2139 SOLDOTNA, AK 99669-2139 ALYESKA PIPELINE SERVICE CO VALDEZ CORP AFFAIRS SANDY MCCLINTOCK P O BOX 300 MS/701 VALDEZ, AK 99686 VALDEZ PIONEER. P O BOX 367 VALDEZ, AK 99686 VALDEZ VANGUARD EDITOR P O BOX 98 VALDEZ, AK 99686-0098 NICK STEPOVICH 543 2ND AVE FAIRBANKS, AK 99701 UNIV OF ALASKA FAIRBANKS PETR DEVEL LAB DR V A KAMATH 427 DUCKERING FAIRBANKS, AK 99701 RICK WAGNER P O BOX 60868 FAIRBANKS, AK 99706 JACK HAKKILA P O BOX 61604 FAIRBANKS, AK 99706-1604 C BURGLIN POBOX131 FAIRBANKS, AK 99707 FAIRBANKS DAILY NEWS-MINER KATE RIPLEY P O BOX 70710 FAIRBANKS, AK 99707 FRED PRATT P O BOX 72981 FAIRBANKS, AK 99707-2981 DEPT OF NATURAL RESOURCES DIV OF LAND REG MGR NORTHERN REGION 3700 AIRPORT WAY FAIRBANKS, AK 99709-4699 ` K&K RECYCL INC P O BOX 58055 FAIRBANKS, AK 99711 ASRC BILL THOMAS POBOX129 BARROW, AK 99723 RICHARD FINEBERG P O BOX 416 ESTER, AK 99725 UNIV OF ALASKA FBX PETR DEVEL LAB SHIRISH PATIL 437 DICKERING FAIRBANKS, AK 99775 UNIVERSITY OF ALASKA FBKS PETR DEVEL lA6 DR AKANNI LAWAL P O BOX 755880 FAIRBANKS, AK 99775-5880 SENATOR LOREN LEMAN STATE CAPITOL RM 113 JUNEAU, AK 99801-1182. DEPT OF ENVIRON CONSERV SPAR CHRIS PACE 410 WILLOUGHBY AV STE 105 JUNEAU, AK 99801-1795 *1 • BP EXPLORATION February 3, 2000 Jack Hartz Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, AK 99501-3192 Re: Eider Pool Rules and Area Injection Order Applications Dear Jack, Here are the Appendixes to the Eider Pool Rules that you requested. Please let me know if there is anything further we can do. If you have any questions, please feel free to contact me at 564-5594 or Steve Fell at 564- 4036. Sincerely, Eric R. Ding ENS Reservoir Engineer Attachment ~~ FEB 0 4 2000 Als~a Qil & ~~ Cans. Cam • Appendix A t~EGEi1l~~ FEe o 4 2000 Alaska t7ii & Gas Cons. C~rtt A~chora~e • BP EXPLORATION November 2, 1999 Mr. Ken Boyd, Director Division of Oil and Gas Alaska Department of Natural Resources 550 W. 7w Ave., Ste. 800 Anchorage, AK 99501 BP Exploratbn (Alaska) Ina 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99518-6612 (90~ 561-5117 ~~~~~~~~ FHB 04 2000 ~aSks t?il $: Re: Application to Enlarge the Duck Island Unit Area, Enlarge the Eider . Participating Area and Contract the Prudhoe Bay Unit Area, the Lisburne Participating Area and Niakuk Participating Area. ..~ Dear Mr. Boyd: Pursuant to the provisions of 11 AAC 83.351, 11 AAC 83.371 and Articles 2 and 11 of the Duck Island Unit Agreement ("DIUA") and Articles 5.3 and 9.1 "of the Prudhoe Bay Unit Agreement ("PBUA"), BP Exploration Alaska, Inc. ("BPXA") hereby petitions the. Department of Natural Resources ("DNR") to approve the enlargement of the Duck Island Unit Area and enlargement of the Eider Participating area whilst simultaneously contracting the Prudhoe Bay Unit Area, the Lisburne Participating Area and Niakuk Participating Area. The requested effective date for this application is January 24, 1999. The Attachments note the approval of the Duck Island Working Interest Owners, the Eider Participating Area Owner, the Prudhoe Bay Working Interest Owners, the Lisburne Participating Area Owners and the Niakuk Participating Area Owner for this simultaneous DlU Area enlargement and PBU Area contraction. The successful drilling and testing of the Eider II well has confirmed the presence of hydrocarbons in the proposed enlargement area. As demonstrated by the attached documents, the enlarged Eider PA has been reasonably proven capable of producing or contributing to the production of hydrocarbons in paying quantities sufficient to justify its development and production. BPXA respectfully submits this application far the enlargement of the proposed Eider PA based upon the belief that it will promote the conservation of natural resources, promote the prevention of economic and physical waste, and provide for the protection of all parties of interest in accordance with 11 AAC 83.303. Eider PA Enlargement Application November 2, 1999 :7 Promote Conservation. The enlargement of the Eider PA provides the most practical method to producing the oil and gas resources by providing an efficient, integrated approach of development which maximizes recovery while minimizing negative impacts on other resources. ~ - Prevent Economic and Physical Waste. The production of the hydrocarbons through existing production and processing facilities within the DIU will prevent economic and physical waste. The oil and gas resources can be accessed via existing facilities and any future well can be drilled from the existing drill pads. Protect the Parties in Interest. The parties in interest, including the State, will be protected with an equitable allocation of production by lease and with such development there will be an increase in the economic well-being of the state as a result of the increases revenues received. Environmental Costs and Benefits. The proposed enlarged Eider PA and the use of existing DIU infrastructure will reduce the development costs per barrel, which in turn allows for the economic development of this reservoir. . The following attachments are providedan support of this application for the enlargement of the Eider Participating Area: Attachment 1 Agreement to enlarge the DIU Area and Eider PA Attachment 2 Notice of Intent to contract PBU Area. Agreement to contract PBU Area, Lisburne PA and Niakuk PA Attachment 3 Plan of. Development and Operations Attachment 4 Map of Proposed Enlarged Participating Area Attachment 5 Eider Reservoir Type Log Attachment 6 Top Reservoir Structure Map Attachment 7 Type Cross-section Attachment 8 Eider Special Supplemental Provisions to the DIUOA Attachment 9 Tract Participation within Eider Participating Area Attachment 10 Waiver letter from Owner of PBU Tract 33 (ADL 034634) The attached ballots have details of revised Exhibits to the DIU and PBU Agreements. We will submit final versions of Exhibits upon application approval. Enclosed are an original and five copies of the non-confidential portions of this application, two copies of the confidential portions of this application. BPXA requests that the geological, geophysical, and engineering portions of this application are kept confidential under AS 38.05.035(9)(C). "' Eider PA Enlargement Application November 2, 1999 Also enclosed is a check for $1000 in respect of the fees due for this simultaneous enlargement and contraction. If you have any questions or require additional information, please contact Mr. Steve Fell at (907) 564-4036 or Mr. Gary Osborne at (907) 564-5361. Any correspondence should be sent to the following: Steve Fell, Endicott Business Team Leader BP .Exploration (Alaska) Inc. P.O. Box 196612 900 East Benson Blvd. Anchorage, Alaska 99519-6612 Sincerely, ~~ Ken J. Konrad Eastern North Slope Business Unit Leader Attachments ~~ ! ~ _.~_ •` ~ Attachment 1 ~~ ~• ~ BP EXPLORATION sP Exploration (Alaska) ina ~ 900 East Benson Boulevard PA. Box 196612 Anclarage, Alaska 99519.6612 (907) 561-5111 September 1,1.999 .-:: .,. _ ,,. .. ~ ,r - •~~_ . -Duck Island Unit Working Interest Owners Endicott .Participating Area:Working Interest Owners - .Eider Participating Area Working Interest Owners _ (Per attached distnbution list) - . _ ,. .. ... Re: Ballot Agreement For Expansion of the Duck Island Unit and . .. , Eider part(cipating Area Dear Working Interest Owners. - The,enclosed ballot, when fully"executed, will approve a 40 acre expansion' of .;: : theDuck lslan~`Urnt'and Eider:Participating Area and a simultaneous 40=acre.... contraction oftte Priitlhoe Bay.Unit; Lisburne Participating Area and Niakuk Participating Area, all :contingent upon approval by the State of Alaska, DeRartment of ,Natural Resources ~.t _. The expans(on will allow BP Exploration (Alaska), Inc to produce`from that portion of the Eider Reservoir which is currently located. within the Prudhoe Bay :. Unit. The'expansion and contraction affects only ADL 34634, a 100% BPXA owned lease which straddles -the boundary between Duck Island Unit and Prudhoe Bay Unit. The proposed expansion and contraction has been reviewed by BPXA, Arco Alaska, Inc. and Exxon Corporation, as working interest owners in both the Prudhoe Bay and Duck Island Units. Please note this is a replacement Ballot for one sent on August 9,1999 which had omitted Amoco as a WIO. Amoco is still a separate legal entity for Endicott. We would therefore appreciate your execution of the enclosed ballot. Please return the executed original to: Steve Fell BP Exploration (Alaska), Inc. P. O. Box 196612 Anchorage, AK 99519-6612 Fax: (907) 564-4187 ... .. Ple~s call me at 564-5583 or Steve at 564-4036 if you have any questions. Sin er ly, .: ald J. Dunham, 111 ~ ~ Do ~ ~~ , ~ '' ~~ _ ~ . n Commercial Manager, Eastem.North Slope : : - _ ~°~ ti :'x ~ ~ ~~~,~~~ ~f; f cc• Steve Fell ~ . ~ .~ ~~: ; , ~ ~ ~ k~~ - - ~ Y ~iM,1~k~iSQQ E y~F y a ~ l '" '~ '+ ` ~ ' ~Y3 !$~ s+ ,~ x ~ .-tic . _ .. _ _ jp + -_,' 4 . n ~ ..' '! -. _ 1 fir: "'- . . .. y ~~ ~. ~:y ~i: . _ ~ ~ f: ' ~ '::7 -.i.. ~ ~S .~ ~'lo ~d . ~ ~ - x ~i; x ~. ~. _ .. ~ .. ~ - - • Ballot Agreement~~for~Expanslon of ~: `~-~ the DucK Island Unit and `Eider Participating Area ` THIS AGREEMENT is frade~by~d~betwe~en ~he'.Duc{clarid~lnt Working ~=~ ~ ~`~ a~ 7 Interest~Owners ("DIU Owners")'and the ~E~de~r Par~dp~~g~rea ~ Eider PA ) ;- r0.: ~ :- ~ t~"S~K+~i$~a~t~~~ '- ~ ~ ~ - --~ ~'"'~~ + .»~.!~-¢i ,~- Working Interest:Owners ("Eider PA Owners,"~,~. ~A11 eey'~n~~es are collectively - •. .' i{ 1 ~'}"a~ 3`.'~'fL~' yr~ `" g~~f`la~`~'th '` _T% L°~ ~ ,^4~-: ~ r S - v. s _ _ ~. hereinafter,referred to as the :Parties ~ T` y L i "i~~vl. 't ~aH'} WHEREAS the Eider PA has been formed within the ~D~U to allow sustained production from the Eider Reservoir; and~'~ , roW ~ hµ ~ f ~ ""~~"~`~ ~ ~~ ~~ S~' ,, ~ , . Y - ~ _ -` 4` x ,.,c, a _ fi, ?~sr"" n +r~ x.'+.'"w&'h'N ~. ~ ,:-F ~ tS .ksX"r~t _. x ~ rq} c R +F+" z.. WHEREAS,,the Eider Reservoir has been`confirmed b ~Eider`We~ll ~2ao~extend `~ ; .k.° x7' .+ m~ 1K ?=n i cw'- . _,%~ •~.~};`..~9s7~ita ~ "_~a•- '~'F ~~S 'r.:: i~ ~~, ~ `~ =i= into NEB/aSE~/a, Section 28, T 12 ~I~Y,'`R ~, 6. mia~tflllef than, t;onsistfng of 40 acres, more or less (hereinafter, they Subject ~ and ,) -'and ~ - y~~ ,, 'y +S~~fl L - .tt4 i-'1~it ~~~~ ~.+ i -`?~f~ ~S~:S~ `~i''~)~ fw1~i~ ~ `# currently lies within Tractx33;of tr :- til --, WHEREAS, hydrocarbons were; ~4n~4°wrncn ~3~ . ~ ~.c:s :_ Subject Land starting as of fan ary~~ 9 9 - ,r s~ ~ ~ ~ ~' '~ ~'' . ~.i? x~,,,, s.r.-~s"~.t,`s~-t& ~ "~>iGer 4 ~_~ a~ c ,c y ~. ~ s~~ ~ tY ~~r""yY~ ~. NOW, THEREFORE, pursuant to Section 4'4 of theFDuck Island Unit Operating Agreement, and Section 42.9 of the Eider Special Provisions to the Duck Island Unit Operating Agreement; the Parties agree `as follows ~' 1. The DIU and Eider PA shall both be expanded to include the Subject Land, effective on or after January 24, 1999. BP Exploration (Alaska) inc. is lessee of the Subject Lands and consents to the expansion of the Unit Area as described herein. This expansion shall be effective .only upon approval by the State of Alaska Department of Natural Resources (DNR) of the simultaneous exclusion of the Subject Land from the Prudhoe Bay Unit, and any participating area therein. 2. The DIU Operator shall submit to the DNR an application for expansion as described in the preceding paragraph. The application shall state that the Working Interest Owners' approval of the expansion shall be effective only upon approval by DNR of the simultaneous inclusion of the Subject Land in the DIU and Eider PA and the contraction and exclusion of the Subject ~ - ~,~ .~ ~~ 'i • Ballot Agreement for Expansion of . the Duck Island Unit and Eider Participating Area DIU Ballot 99-073:. Eider PA Ballot 99-001' Lands from the Prudhoe Bay~Unit, Niakuk Participating~Area and Lisburne ~ -_-- Participating Area, effective on or after January24, 1999. 3. The #ollowing exhibits attached. to this :Ballot Agreement reflect the revised boundaries and changes, in~the DIU lease ownership ~Upon.;approval by ys ~: ~ ~~=: DNR~of the,~above referenced application; the :exhlblts alsted below sha1L~ ~ ~.~; ~::. .: modify the~DlUA~and DLUOA,~;ncluding the Special Provisions forahe ~= ~ f 3 Xti~ Eider PA. - t ~; r.Exhibit.A ' .Unit~Boundary ~- 4 = ~~` ~~~~~ ~-`" ~~{ ~ ~;~_ ..f.. _ x :._~ .,- - :Exhibit B "~~ ~Schedule'~Of>Ownership~of.Oil and Gasanterests xrSr~~tiS (Revised 8h/99) - _< x ~f~s ~~-Exhibit R,.~ - : ;3lJnit and Area Voting Interests:. ~: . ~ {~ r~~_~-~ (Revised 8/1/99) ~ ,~ .~ Exhibit 40-A =~~Eider Participating Area Boundary ~ - ~~. - .~~~,~:~~ ; ~~~ :Exhibit 40=B `~ ~'ract Area and~Uottng lrterestt.Part~c~pattons~ ~` r A r ~- -'for the`Eider~Participating Area '°~~ ~~~.~~ .. :.s . A f _ F ~ fi : _ _ Because the Unit~:Voting Slnterests of the :Working Interest-Owners ire ~~~ ' ~:~.. ~.: ~~` basetl on the; surface ~creage~ownership of the:_leases in the Unit Area~~~. -~ .:. expansion'of`the.'llnit SArea~vill result in ;the automattc'adjustment ofthe 3 . . ~- _ ~ -~` . .. ,_. Unit Voting Interests, as'shown in Exhibit R . - 4. This Ballot Agreement shall be effective upon approval by an affirmative vote of 80 percent of the Unit Voting Interest, 95 percent of the Area Voting Interest and 75 percent of the Eider Area Voting. Interest. 5. This Ballot Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which together shall be construed as one and the same instrument. PArF 7 •. . Ballot Agreement for Expansion of : . the Duck Island Unit and Eider Participating Area .DIU Ballot 99-073 Eider PA Ballot. 99-001 IN WITNESS WHEREOF, the Parties have executed this Ballot Agreement on the date opposite their respective signatures. ~ ~ i~aTjx'l~q'SS F- S SCl, '3 ,: ~ _ - ~~~ DIU OWNERS: . ~ ~ ..~~ ~ ,~ .: v ARCO ALASKA; INC BP ~ ION (ALASKAN INC '~~ `:~~~r~~ "1 . , rL ii'~-'' ~ . ~_ ,~ b }V~ By: By. _ ~.: ~ ~~~. . icy . ~i '. Title: 1 .- --Title - tIC(rl ~~3~ ~~ i~= ~~:= . ~ . Date _ ~~ }~ -y% DOYON, LIMITED - - . EXXON CORPORATION ,~~ fi ~: ~.~._,~ ~,,~,~ .~~, x ~- .p Y. u ~ - ~ . y. ~ '~' Title '" ~y Title - , . : iA ~~ ffC r ~ ~ " ~ , ~„ . r,< N.~'D`ate~~ ~~ 1 ~ Y~-"`h4T.i .c~~yv4 t ,. h `..~ . ct..s 'P ": Date . ~ -._. _ - it ~~:~'~~- '`~. ~REGIONAL-CORPORATION NANA ~ "i IJNIOIV OIL GOMPANY OF ' ~~` ~`~ -~~` ~' ~ . iV . - ' U~. tsu .~i ~~1 _ fS CALIFORNIA _ ;: ~;~~~~ _ . , ~ ~ . ;, _ ~ ! , ~ H ~ Title. r - ' - - ~,,~ By. ~{ ~~~ ~ ~ ;.~ ~. .~x ~~ Date:.. Title: _ . Date: AMO~O~PR~bDUCTION COMPANY By: "~-' Title: tX`t~ r tt S Date: ~~ DIU EIDER PA Owners: BP EX.P,L~O~'il,-~T10N (ALASKA) INC. By: vQ. ~~4vctw~ ~t~Os Title: ,~ Date: ~~~ ~~ _ PA(~F • • Ballot Agreement for Expansion of : _ - DIU Ballot 99-073 the Duck Island Unit and Eider Participating Area Eider PA Ballot 99-001 _ - . • DIU ENDICOTT PA OWNERS: - ARCO-ALASKA INC. ' BP>:E O TION:`_( By: sy. Title• ~ - Title. `-. •Date Dater Q ~~ ~_ ~: DOYON; tLIN11TED . ~ `~ ~ sv< `EXXON'CORPORA7 By: z By. Title. .Title ~ -. ~ ~r Date. ~ ; . ,- .Date ~' Y - NANA°REGIONAL:CORPORATION f ~°~~?UNION~OIL~~OMI? ~" `:CALiFORNIAY' `~`` By: - _ Title. BY.. Date. ~: _ ~, - Ttle ` s' - - ~x = ~ ~ ,~:' .Date. r.r ~ ;~~~ f~: AMO R DUCT ~~ N COMPANY - ~ By: ~ 111II1~ "Y ~, ::~ ~, x""77 s. t,.~... •~~~A~Y f t Z -~~ ~- kit ... f ~' ." ~ .. - ..... .. NS . ~1.0.~tii PAGE 4 DUCK ISLAt~ID UNIT 1 •IAYIOKr 9[A O CKYKCKI ~(tltsl~lt b ~- to v I 79 .. ,_ . ~~ n ,` °, ~ a O 2 ~- Duck Island Unit Boundary t6 Tract Number 0 t . .s o t x -nnes 14 16 ~ 19 Z1 I ~ !! ~ 19 12 13 , zs ~ ,- ~ ~ ~ 16 sk ~ .' ~ ~ 76 - ., to , 346E 4 ,;+ ,, apDL0 463 AD. 1282 w~ g i t . ~ ;~, !. ~. r. 11 .14 o , '~ ~;q 6 >^ ADL 7 ° •ADLO 7503 ~ADL31 834 e O ~ ~ O 10 079,' Q tt ~~ ~14 ~! 4 r'. ~1 1 16 f O ~ 4 ~ :t ~ :. ~' ~ ~ ADLO 7504 ~ r 506 =.ADL"0 7 + ttruY ~.. ! ,. ~~ / Irv .r , +ti.'ild1.A Y r r }fY ~' f + i.~.ti f ~ I ~ $ ~ ff m • ~r x ' b ~ 33, r. . ~.r i,., ,, BPXA ,'~D•99M111110.1tdp1 ..:. .,:a., - r.. ,. .. °i +<, a i~ ~ V~ < t irk' r r ~r 4y;N~~~~~rt~r~rnL ~.lt xt ~ r l Y~~tr 1ryNJ•,aCt~tr. i~~ r r . ; x. Y ~ 76 ~Y .y ~r~s~ a-~ X '~"~ py~~{'dStl'ty' `` ~° re.:~~~ ~ . r 19 'm x ~ ~n 0 ~a e C '15e 9 19 EXHIBIT B DUCK ISLAND UNIT AGREEEMENT and DUCK ISLAND UNR OPERATING AGREEMENT SCHEDULE OF OWNERSHIP OF O.IL & GAS INTERESTS (Revised 8h/99) dicott E Sag Net . Working Interest Unit Untt Tract n PA Delta PA Eider PA Royalty Prottt ORRI Owner & Tract Lease . Arrea a Acres a Acres a Acres e ~ Share a Percents e No. No. Le aI Descri lion 2469 0 0 ~ 12.5 None None Amoco 25.00 1 047502 T. 11 N., R. 17 E., U.M. 2469 Exxon 50.00 Section 5: Ait Unocal 25.00 Section 6: All Section 7: All ~ . Section 8: All 2560 0 0 12.5 None None Amoco 25.00 M U E 2560 00 50 2 047503 . . ., T. 11 N., R. 17 . Exxon Section 3: All Unocal 25.00 Section 4: Ail Section 9: All Section 10: All "' 1280 -1280 0 0 12.5 .. None None Exxon 100.00 3 047504 T. 11 N., R. 17 E., U.M. ~ , ~ Section l3: All Section 14: All "~x~~ ; ~, ` ,.~ ,~,a, 0 -- 12 5 _. None Node Exxon 100.00 4 047505 T. 11 N., R. 17 E., U.M. Sectton 15: All 1280 +r ~.~ r. ~, ~ 1280 r ~ r>~ , r ,eK~ ~.~~~ 0 $ 1 ~ .~ ~x t ~ r~, ;1i .< ;~ x ,fix ~ , ~• a~a'r ~' ~ ~- t,r t rpti . ` . , , ~.. 5 047506 Section 16: Ail T. 11 N., R. 17 E., U.M. . ~ 640 ~ .y,- ~ ~ , - 640.x,„ ~ ~ x 0 a ~"' b ~ ~ ~ 0 12.5 None None Amoco 50.00 Unocal . 50.00 Section 17: All ~~~ 40 r. rtis 0 * ~ 0 a 680 ~ 12 5 None BPXA 100.00 12 034634 T. 12 N., R. 16 E., U.M. 10 , ~~~ ?;`' ~ ~ ~r ~~' s `'" ~ x ~~, ~r ~ ti ~i ~ ~. , a; , <, - Section 27: All ~ ~ ~ . > /, Section 28: NEY,SE • ~~ } ` Section 34: NE+b E+fzNW'/, NWY,SE'/ E YzSEY, 2560 ; ' 2560 160.00 0 12.5 None - ' BPXA 100.00 13 034633 T. 12 N., R..16 E., U.M. ,~ ~ r ~~ Section 25: All Section 26: All Sectton 35: Ait 1 \ ~~ ~ Section 36: All ,1080 0 0 12 5 None ' BPXA 100.00 14 034636 T. 11 N., R. 16 E., U.M. 1080 . . Section 1: All °~~ ' Section 2: NEY++, EYeNWYs, NWT/,NW%, N'f~SEY. " ~~, , `, ' , Section 12: NYzNE'/, .•. ., \._J .. ~{! ~ ., Ate ``, j t `: ' v ,''J ~ r:!. 'y~.;.'. ' BPXA owns an overriding royalty interest equal to 75% of all net p~ofits from production between certain minimum and maximum levels of daily production from various teases in the Prudhoe Bay Area. At this time,rthe overrYdlrlg royalty interest.has not been rr`terged with the underlying working interest. ;,; ~ a ~ ~ ;~ ~r" ~ ~ s: to ~' ~ Pt t f ~" -. 8 C~, y,,,, ' ^ ` " '~' /i ~ bir ; :°r ` 1~1t ,.yp ,{~ q ~ y „, ~Y' + ,1 t r r ! ra~~ 'a,7. ~ t ~yK., Y V r ' wt, : ~ ^ r ~~ '~ A 'Wy' 'y .. f '~ ~~ ri~~4~0' k~ Ir,~ , i, Av'it '~ ', > , ., w.,,~ r n d ~' ~ _: ~~ `° t 1. ~ '~ 4 4+~ Sr~vb ~.~' Y "d'Y , 8/1/99 ~ 1 ~,'~~ ` ,~ , ~ , *~ ~' Y jr : , "~~', ,,,,~$- ~5 xt3 P ~~ '~ ~ ,~'~ 1 PAGE 1 ~`.s0.}a~c ~'` 4 +`Y'{kt,'} 44:eLyD.k e.~~ t ~ 5r t y~ri~i~pYt•Y 11,~.,j,.~ fYr ': tlb>~r". rr}.Il. r'„ t •~L..1....,. •.'~ I1'i ! iH,- {., ~'1 ;t H/F b~~"~~ ~~y'~r~'a'yf~n~P'~"b; 5'r~ ,4a'!ka~~.. ?4 ,. EXHIBIT B ; DUCK ISLAND UNIT AGREEEMENTand DUCK ISLAND UNIT OPERATING AGREEMENT SCHEDULE OF OWNERSHIP OF OiL & GAS INTERESTS. (Revised 8M/99) tt di E Sa Net Unit Unit Tract co n PA < : ; g .. Delta PA Eider PA Royalty Profit ORRI Working Interest Tract Lease Acres a Acres `e . Ac~ea e • Aarea a Share ' o & Percents e No. No. Le al Descri lion 49 3067 2482.87 989.47 0 20.0 79.59350 None BPXA 98.00 ~ 15 312828 (General Location) . . .50 Doyon T. 12 N., R. 16 E., U.M ~ NANA 1.50 Sections 23 and 24 T. 12 N., R. 17 E., U.M. Sections 19, 20, 29, 30, 31, 32 and 33 . Those portions of T. 12 N., R. 16 E., U.M, Sections 23 and 24, and T. 12 N., R. 17 E., U.M., Sections 19, 20, 29, 30, 31, 32 and 33 within the Endicott and Sag Delta North Participating Areas as shown on the BP Exploration (Alaska) Inc. Survey Piat titled "Duck Island Unit 11-1-92 .° 1609 20 1609.20 : 0 0 20 00 48 87031 None ARCO 33.33 16 312834 (General Location) Exxon 33.33 T. 12 N., R. 17 E., U.M., Section 35 Unocal 33.33 T. 11 N., R. 17 E., U.M., Sectlons 2, 11, 12, 13 and 14 T. 11 N., R. 18 E., U.M., Sections 7 and 18 TOTAL ACREAGE 17585.69 16961.07 1149.47 680.00 .. . .- - EXHIBIT,R DUCK ISLAND UNIT OPERATING AGREEMENT (As of 8/1/99) UNIT AND PARTICIPATING AREA VOTING INTERESTS . Area Voting .Unit Voting Interest (%) - ~ S ,: Working Interest Owner.. •>Interest % - Endicott - ;*~~ ~.,~..~_ Amoco 8.9689 10.4940 Inc. ARCO Alaska 3.0502. .0234 ~ ~ :~. ~~~=- , ~ -.r BP Exploration (Alaska) - ~ ° :43.7068 ~ 57.4281 ~ ~,_ s:: ~ °. "~ ~ ~~` ~`q, Doyon, Limited ~=::0873 .1291 , Exxon Corporation ~: _ . -31:9061•,: - 21.0206 ~:. ~.~ -. ~~• NANA Regional Corp ~ :2616 .3874 ~ = UNOCAL 12.0191 10.5174 Total 100.0000 100.0000 ~, EXHIBIT R (8/1/99) PAGE 1 EXHIBIT R -Backup DUCK ISLAND UNIT OPERATING AGREEMENT (As of 8/1/99) CALCULATION OF UNIT VOTING INTERESTS . Unit Voting . ~ Unit .Unit -Working . :Net : - Interest Tract Tract Interest . ; Unit :Acreage ~, ..: .. (Net Acreage /; Working Interest Owner No. Acreage (~) ; . ,-a(AcreageXWl) : :.Unit Acreage) : _ . Amoco 1 2469 25.00 61725000 2 2560 .25.00 640.00000., S 640 50.00 320.00000 .. 1,577.25000. , 8.9689 : .. - ~k _vn ARCO Alaska, Inc. :16 - . :1609.20. 33 33. 536"40000.. .; . ~. 536:40000 .. 3.0502 BP Exploration (Alaska) : 12 . - - ;1040.: r:, - .;100 00 :, 1,04 00000 ._ ~.:} ` __ -:. . 13 . .2560. 100 00 °,, 2,560.00000, T; 14:. '1080 ::; . : 100 00 : : 1,080 00000_ :..15 .,: . .3067.49 ..98.00 3.006:14020 - ~, 7,68614020 43.7068 Doyon, Limited 15 .3067.49 .50 15.33745: 15.33745 .0873 ;~~ Exxon Corporation `1 , 2469. -. 50.00 ~ .1,234 50000 :2. 2560 50.00 ;.1,280;00000 ._.. .. ;:3 . i~~ ' 1280 _ 100 00 `, 1,280:00000 ~ . _., 4 1280 100.00 1,280.00000 16 1609.20 33.33 536.40000 5,610.90000 31.9061 NANA Regional Corp 15 3067.49 1.5 46.01235 46.01235 UNOCAL 1 2469 25.00 2 2560 25.00 5 640 50.00 16 1609.20 33.33 Total Unit Acreage Total Voting Interests EXHIBIT R -Backup (8/1/99) .2616 12.0191 617.25000 640.00000 320.00000 536.40000 100.0000 2,113.65000 17,585.69000 PAGE 1 • R .• EXHIBIT R -Backup DUCK ISLAND UNIT OPERATING AGREEMENT (As of 8/1/99) CALCULATION OF ENDICOTT PARTICIPATING AREA VOTING INTERESTS Unit Tract Tract ::. Tract: Participation Working .,Participation Working Interest Owner No. ~ '; (%)*:: Interest (%) X WI Amoco 1 22.3357 .2500 5.5840 2- - _19.6233 .2500 - 4.9058 5. ; :0084: .5000 :0042 .10.4940 ARCO Alaska, Inc. x:.16 .-:_:.:0703 .3333 ....0234 BP Exploration (Alaska) x.12 >,.0675 _~>< 1.0000 < ..0675 13 ` ~ 26.7609 1.0000 26.7609 14 ~_ 5.2911 1.0000 ..: 5.2911 - 15 ~` 25.8252:. , . .9800 - 25.3086' 57.4281.: Do on LimitQ~+ 15 , 25c8252 .0050 .1291 ' Y Exxon Corporation 1 ;22.3357; .5000 2 - ` 19.6233 "` .5000 3 `~~ ~` `'i0036 ` ' 1.0000 4 .0140 1.0000 16 .0703 .3333 NANA Regional Corp 15 25.8252 .0150 Area~Voting Interest (%) :10.4940 -. =.0234 11.1679 - :9.8117 .0036 - _ _. .0140 .0234 21.0206 21.0206 .3874 .3874 UNOCAL 1 22.3357 .2500 5.5839 2 19.6233 .2500 4.9058 5 .0084 .5000 .0042 16 .0703 .3333 .0235 10.5174 10.5174 Total Voting Interests 100.0000 Tract Participations for the Endicott Participating Area as set out in Exhibit C to the Duck Island Unit Agreement and Duck Island Unit Operating Agreement. EXHIBIT R -Backup (8/1/99) PAGE 2 ~, Exhibit 40-A , . EIDER PARTICIPATING AREA N ~ocrnoN MAP ~ ' i I ,e ,e n I 16 i I u 16 ~ I _:.:. ... - ~ ~ N ~ 0 2 I Duck Island Unlt Boundary t5 Tract Number Elder Partlclpating Area ~ s o ~ 2 Mnea I ~ I ~ i ~ _ . ..... ; ti 20 Ri '~ ~ { ' .. 12 . .. _ ~ 13 m ~ ~ ~ ~ ,n ~ :. , . '.. m ~ ~ 16 ~m:4~'~ i~~r:..~t,:.::, „ a2 0346E 4 ~ I gADL03463 AD 1282 ~ 1N 14 O ~ ^ w J ~ aP e ~ ° ~ ~ ~ 16• V~'1 ° i A 6 . ADL 7 ~ ADLO n 7503:. ADL31 834 o o ~ =+ 6 f~. 3' 4 ~. O e ~ '~ u I is .'. r p s to is a ~~ I .~ _ x ~ ~`' i '~ „ ~' ~ m ~~ • ~ ~" „' x; 506 ADLO 7 ` . ADLO 7504 ~ . , _ ,a' . (moo ~~ ~ ~ ~ m m e ~ Y -- fi--~- ~ ® - ~ » ~ ~ b~~ ~ x ,~ x ~ rn1 ., ~ . ,. t I t,~ ~~ ~~ ~ ~ ~ , ~ ,~ e~ ~,„n+ J;: _ _ = N jt 1~-, F ~ }~ J fthb] r ~.~ Y f t 6 ~ t } ll ~ 1 ~ ~ `~ t ~~/± y r41 .v.1...~ ?i ., "..5~. ~.Ya'Maqu~'f~.Y~.4'/r. ~A'C ~"S, .^ ~l~Y• r~ NA . '' .. . .~ .. .. • • Exhibit 40-B to Eider Special Provisions State of Alaska " (revised 8/1 /99) Tract, Area and Voting Interest Participations- - for the Eider Paritcipating Area .: Tract, Area Tract ~ and Voting Tract - Description of Tract {yAcreage ~~ 2 ; :Interest " No. ADL.~.No. =:within PA ::within PA<:> -- Participation 12 ~ 034634.-~ T.12N., R16E, U.M. `680.00 100.00 Section 27: All :Section 28: NEB/aSE~/a 680.00 ".. 100.00 _ ,,.. _.. f..-. ~? ,: r BP EXPLORATION • BP Exploration (Alaska) Inc. . 900 East Benson BoNevard PA Box 196612 Anchorage, Alaska 995t9.6612 (90~ 5615111 October 6, -1999 ~_ Duck'Island UnitWorking.Interest:Awners _ ~` ~ t= .. .. Endicott Participating Area4Working Interest Owners : _ ~'-~ _= :=-Y ticipating -Area Working (rterest Owners Eider Pa ~ ~~'~ r (Per atfached distnbution 1(st) :: Re. ~' Ballot Agreement.For Expansion of the Duck Island Unit;and ~ - ~ - Eider_Participatng Area - Dear<Working lnterestOwners•~ :_:_~ `~ x~' ~ Y' ~- `~;~~~yrr~ ;~ ` ~ 4 ~ ~~C!M~Gy{ yl1` y L'•a .k ~. ~ ,~ -~ It'd CQ wL' . _ eive~th(s letterYas confirmation that the referenced ballot,~D1U Ballot ,~ s Please re - t"'y-. ~~_ c ... 99=073 aril Eider PA'Ballot 99-001,has~received ttie required affirrnatnre =y ... ~~ _ approval Votes and will become become.effective as~noted below ~~ ~ ~x ~ t _ Partic(pating Areayexpansion shall be~effective ~ and Eider The Duck Island Un~t ~; ; _ the'State of'Alaska Department of Natural Resources (DNR):of ` l b rov n` _ y a app upo the simultaneous exclusion of the Subject.Land from the Prudhoe Bay Unit, :and - any participating area therein. Please note the required approvals forthe - Prudhoe Bay Unit contraction and relevant participating areas have been received and similar notices of approval are being issued to the Prudhoe WIO's. Should you have any questions please call Steve Fell at 564-4036. ';Sin erel Donald J. Dunham, III Commercial Manager, Eastern North Slope cc: Steve Fell . . ' OOT,~ 4. 1999 ~12:15PM EXXON LAW. PROD N0, 1889 P. 2 . r ca r, r 9a u• c'0F'M Ern u wtw r r : u<<IP ~ t'. 0/15 ' - I _ aallot Agreement ror Expansion of ~ DIU Bapct 88-073 the, Duck Island Unlt and Eid®r Penc~ipating Area ~iaar PA Batlct 99-oQ1 ~ WITNESS WHEREOF, the Parties have executed this Sal[ot Agreement on ~, date opposite_th®ir respective signatures. )1~1 OWNERS: ,~ F ~ : ~ ti x t ~ ~ ~. ~RCO a1.A8KA, INC E3P.. ON (ALASKAN INC: ~" ~ ~- ~ ~ -~~ 01k(rt U t baler„ .~;~ ~~~ ,~ Y ~`.~.~ ~. ~~ Date' .~ "` r ~ ~~~~ ~ { ~ - EXXON C ORATION }-~ s ~. t DOYON ~. LIMITED ' ° ' r,~r r I . - , ~` ~; ~y~~ i+f~i .L .c ] + ~ xr ~? . D te~ 1 -~ . °dv ~ .. 3t9i ~= ~ ~9~~/Q,. ~gY~, n, s ~~` _ UNION 011: CQMPANY OF ~ ~ G'~ J - ~~ NANAREGIONAL CORPORATION .. ,_ ~.~ ~~.4 ~.._ ~:~ , .~ y:. .tip L. ; ~ cAt.IFORNta * ~~.~~~ r ~F ~~ ~ ~ ~ ..~~ . ~ .~~~~ B ~ ~. ~ R BY., 'title: Date: ~`"`~ i I3~P Ex!^~F~~TION (ALASKA) INC. • OC'~. 4. 1999 ~12:15P1~ EXXON LAW PROD ' '+ FkB 07 '93 iZ~20PM BF°X tP1ll1W I 1 lltVP llot Agreement for Expansion of th~ Duck island Unic and Eider PaRiCpating Area ] I U ENDICOTT PA ywN~rt~: ~ ,- ~ i A .,. CO•ALASKA, INC.::: °BP: B • ,:Vgy '~ ' le; - Title: -- D ate: a . ~ zngDate - D;OYON, LIMITED `'tea 1 l3i~: _ .~g .. Title• ~ . ~y: 1 i i i I i ~.- f~~~ >.~ ~~ ~~ ~ V- ~. ,,. r `•~ 'i. i .. ~:f~..,. _.. .;Title:... - - _Date: ~ . AM~a,[J gPRODUCTIDN COMPANY ,:~ I~iatlot-~Agr~~ent~f~r...Expa~stg~:.~`_,~,:~ ___. - - _ ~ ~ ~ r ~~4~ ~Qt;,99-073._ the Duck Island Unit and Eider Participating Area Eider PA Ballot 99-001 IN WITNESS WHEREOF, the Parties h ave executed this Ballot Agreement on the date opposite their respective signatures. DlU OWNERS: ARCO`ALASKA, INC. ~ BP . _. ON (ALASKA) INC. ~ . ,~: By- B. - {. Title , <Tit1e. ~. ~ ~ D tlU~t - ~ Y ,, ;Y:; . ~~~~.,~~~~_ Date: ;. - . .Date. _ -. F v v, 3 ~,. :LIMITED. DOYON ° ': EXXON CORPORATION . - ~ Y r , - ...... - ~ _ - Y Y• B • Title - '-~ Title' Date: - ~. `~ , . .. ..... _ ,. _.. NANA REGIONAL CORPORATION .... UNION OIL COMPANY OF - - ,: - . .. ~ ~~: f CAUL=OR` - Title: . Date: Title:.. ~s Date:- Z3 S~-.~~~ 99 _ AMO DUCTION COMPANY By. ~ - Title: xt~ ~- I~ S ~ _ Date: DIU EIDER PA Owners: BP EXP~~O~~TION (ALASKA) INC. By: ~ 'v _ Title: :~ ~a4~clwG Date: ~~~ X19 _ PAGE 3 ~ ~ BailotAgreementfor.Ex~,ansi~i.i~i~~~•„~::.:--~_._:_..__,~....~:~;-.---=~~:-:,Y..~,..~UBaNot-99-0~3~ the Duck Island Unit and Eider Participating Area Eider PA Ballot 99-001 - Date.:. _ Date g1~Q.~~a w4r ;.'_ ~' ~LIMITED DOYON EXXON CORPORATION `# ~~~t Y3. £: ~~ _` , - By: _. _. Y :. B - - - V ~~ Title: ~ `Tine ` - Date: .. ::; Date: :~:~ ~~ NANA'REGIONAL CORPORATION OF: _ ' ~UNION`OIL COMPA~VY ~ ~` ,t "~~~K ~'v , `~ :CAUFORNI b 6 Y- ,y Title: ~ By' ~ . - _ `-Date:- ~ ~~. ~~s _ ~ ~ AM ey:. COMPANY PAGE 4 .= - ~ :r L •" ~s~.;::~ ~~,~c~tes~ ~a[~xpansion ot'; .` ~ ~ ~ ,DIU Ballot 99-073 the Duck island Unit and Eider Participating Area Eider PA Ballot 99-001 By' Title• • Ttle: Val Qo0 uUouCr}= I~tCt~) ~~ Date: ~ Q d ~;,7 ~~5 ~ ~ ~,~.~, ~ .. a DOYON, LIMITED - ~ EXXON CORPORATION "~~ 4i~"`~ '~~ By: {~:. By. - Title: ~ - ..Title: - Date: - ~ Date: _ ~ - - - NANA REGIONAL CORPORATION'- .- . _ `Y F ,. =UNION OIL COMPANY OF r ~' ` _ '~:~ - . .CALIFORNIA : .y.-jam ~,~ ~ ~ t>~. - Title: .1'~: By: ~, Date: 9 ~ z: , . ~. . Title:....... _ , ~, ,i; ,r~ - . `~ ~,~, _ . Date: AMO R DUCT N COMPANY DIU ENDICOTT PA OWNER ; _. : _ ,~ .; ARCO-ALASKA, INC. ~ ~ BP E ORATION (ALASKA) INC..F ~ =` - By:_ Title:_ Date: PAC,F 4 r: ~ . v y _~.:'• ° _ . ,DIU-Bell~t.99-0~3_ _w. ~ Ballot Agreement'for.ExpaFlSion of- - the Duck Island Unit and Eider Partidpafing Area hider PA_~atlot -Obi IN WITNESS WHEREOF, the Parties have executed this Ballot Agreement on the date opposite their respective signatures. DIU OWNERS: ARCO ALASKA, INC. BP. AMO~O~'k~~DUCTION COMPANY By. Date: DIU EIDER PA Owners: BP EX :L TION (ALASKA) .INC. By: ~. Title: ~OUCi~(~ ~>~S Date: ' PAGE 3 ~~ i_01AM BPX~ICOTrT~DEVP . . . . Ballot Agreement for Expensioh_cf : . the Duck bland Unlt and Eider Partiol Ace n a P~ 9 DIU ENDIGOTI'P~ O ERS: ARCO~ALASKA~ INC. . coMPANv By:. Date• i. tiU • . P.6i6 DIU Ballat.8A~Q73 Elder PA 6sAot 99-poi ~P E ATION (AI-ASKAy 1N0; sy: Title: :- ~ UGb'-dc.'~> .n14. PAGE 4 ':' -, 1'' ~~~ BP EXPLORATION j BP Exploration (Alas Ina ~:~ 900 East Benson PA. Box 19 CRnnti9 Ct~ Anchors ska 99519.6612 -~~ (90~ -5111 August 9, .1999 REC~IY~~ AUG 111999 Duck Island Unit Working Interest Owners Eider Participating Area Working Interest Owners ~QY4N~LTD - (Per attached distribution list) ADMII~(STRAn0~1 Re: Ballot Agreement For Expansion.of the Duck Island Un . ,- . - - Eider Participating Area _ .: ,, . Dear Working Interest Owners: - e enclosed ballot, when #ully executed,~will approve a 40-acre expansion of :~` the Duck Island Unit and Eider Participating Area and a simultaneous 40-acre ~~' contraction of the Prudhoe :Bay Unit, Lisburne Participating:Area and N~akuk H~ _ Participating Area, all conting~nfupon`:approval by the~State of Alaska, "' - Department of Natural Resources • ~" ~` The expansion will allow BP`Exploration (Alaska), Inca to produce from that portion of the Eider Reservoirwhich is currently located within the Prudhoe Bay - - Unit. The expansion and,contraction=affects:onty ADL 34634, a _100% BPXA - owned lease which straddles the boundary between Duck Island Unit and - Prudhoe Bay Unit. The proposed expansion and contraction has been reviewed by BPXA, Arco Alaska, Inc. and Exxon Corporation, as working interest owners in both the Prudhoe Bay and Duck Island Units. We would appreciate your execution of the enclosed ballot. Please return the executed original to: Steve Fell BP Exploration (Alaska), Inc. P. O. Box 196612 Anchorage, AK 99519--6612 Fax: (907) 564-4187 ~~ .; - Ballot Agreement fo~pansion of ~ DIU Ballot 99-001 .. ttie~Duck•fsland Unit and Eider Participating Area Eider PA Ballot 99-001 IN WITNESS WHEREOF, the Parties have executed this Ballot Agreement on the date opposite their respective signatures. `;- DIU OWNERS: ARCO ALASKA, INC. By: Title: Date: DOYON, LIMITED By: Title: ~s~clro.~Y l cam. Date: Ru ti c~,, f~a9 NANA REGIONAL CORPORATION By: Title: Date: DIU EIDER PA Owners: BP EXPLORATION (ALASKA) INC. By: Title: Date: BP EXPLORATION (ALASKA) INC. By: Title: Date: EXXON CORPORATION By: Title: Date: UNION OIL COMPANY OF CALIFORNIA By: Title: :: `_Date: PAGE 3 BP EXPLORATION ~~ Attachment 2 BP Exploration (Alaska) Inc, _ 900 East Benson BoWevard P.Q Box 196612 . Andwrage, Alaska 995196612 (90~ 6615111 - September 10, '1999 : ' ~ ~ - - ~~- x ~ < -~ eau r Prudhoe ,Bay Unit Working Interest Owners - ~ ~ ~ ~ ,~,~~:,~ ~ >< ~ ` ~` F~' ~• ~~- ~ R~,~" ' ~ f Lisburne Participating Area;+Owners ~ xf ~{ ~ ,~ j , °:h ~: }~~ 1~ ~' t ~° -,_ . Niakuk Participating Area`Owners, t ~~~ ' ; r5 ' _ ~,~- ~' ~ ~> a ~~ x ~~" z .~ Representatives and glte` r, ates~ ~~k ~~~'~~ ~ ` ~ A~,.~,~~~.,~~ ~~, - .;gr ,~ t• - ~,f s_;,.nom 2• ~...g-: ~„~'~`~ ` ~. i%" Re• Baitot and Notice #or=Contractton ofthe Prudhoe.Ba Un Niakuk'° ~ ~~ y. ~, -~ ,~ t P,art~cipattng Area larid s,ti~urne~Participattng.Area ~ ~`~ ~ _ - ~ ~~-.~ k a ,,,S~~f " f js Ft~a s..zt ~~ T:, a ; i,.a s ~ a ~ ~ ~.~^Fx~K~~ Ft ~. _ .tea r ~,,. -.. - ~ y s'"~ ~ ~ ~ "~Ysu. N 't.,~~„~+ cat 5;sw~` . . t~ e f -'' t ~ z`1+ a is ' Enclosed are the #ollowipg ocumerlts~to,~~llov~~xclusi~on,~f ~~Q o ~f BI~~Cxact from the ..Prudhoe . Ba ~. fit' _~ iak0 Ici atin ea~arlcl u .. e~ cl a ~~ ~` ~ ~£' Y - ~~"~ P 9 Area t ' ~` ~'~ ~` ~. ~` r 3y7~:.~'~~.<{~, ~~~~ ~ . ~~.~ ~y ice} s p ~ ~ ~ ~ z sh ti ~... 7".r'~4~iF ""L ~ ~i~:y ii ?`W byd ,* t ~ ~7i+C`/s~ "-£~- ~„ 5 t~~Y~.Ny-s•t cc - is e~'i„.~~`~ "~ r ~Y ~ ~~'s's„' ~ ~~~, d«. _ ~' .:~~.z`.',.' 1) Notce of Intent to Contract the'Prudhoe Bay iJn~t c~r~~- ~ : ~x~ ~ ' ~. X A~ "'. ~''` ~ L~a~ r r- ry,7u! SS a r ~ - rr~,n y} ~ 9.•a5~ Yf ~'c~t-Y ,Xft a~.: 2 Ballot A.. reement g ~ ~: ~' -~ ~ ~ >,~3 ' g Approvin Contraction of the frudhoe:Ba nit" -~ : ~~ s + s ~;.. s• z d` iii' ia$r• ~" .~ i,r ,y f ~ ~~>~ ~ e k. _, Niakuk Participatingi~e~anci ~isbume Partlcipating'~Are~ ~~, :. - 4 aYi.SA. +l ~ ~4V. ~~'~Na,.~ 14y~~s~ L,1Jf :~ ~ '.~ .~ !°6 i'[ ~' .Ballot-No 99='217, NPA~Batiot No- 499•',1007; ~L`PA Ballot No 9-052) ~ `. ~3 ~~ ; .r , , Betsy Pfannstiel. Unit Secretary Prudhoe Bay Unit -= P. O. Box 196612 Anchorage, AK 99519-6612 ~.. , After your review, please execute the~enclosed IPA Ballot No 99 217;' NPABallot~No _ *.-- <.~.~,. 99-007, LPA Ballot No. 99-052 and`retum your originafsignature.~page to: ..~ Phone: (907) 564-4489 Fax: (907) 564-4637 If you have any questions, please call Mr. Steve Fell at (907) 564-4036. Sincerely, Betsy Pfannstiel Unit Secretary Enclosures • - _ `- • . :._ .. . .. , ,. __ .~ ~ti • .. September 3, ,1999, .BAY: _ .~ may REPRESENTA {~.D, a ~ .~ ~ > L s +3` .1 'max a~ i~As`fk~~~ ~~~ : 'vxS~` 3 .~ ~~~ ~~` , _# Y..3 -. ~'.;. Y rk ~ 5't' rya '~ ,~.~ .. x `. ~i~~~+ "'~ ~'~ r w Re`~"ot :Inn t ~ rudhoe•'''B~ay"iJnif" ~. ~~~ - - _..~.f ~ti is y~ Gentlemen ~~' ` ~ : ~ . ~ v~~~~ ~.._} . =Y { ~~ ~~ ~y ARCO Ala"s'~ca,~ic n " asks. ~ a.; acting ` eu aciaes ' ~ ni Operators~f . ~ ~ .i ., x"we~o~ceAfe m ~~. ~co the'Priidh'~Br~i11 ~~ . C_ -- : o.. O desert 8n(15 r..,.' , e ,~._ er ' _ ~` ,v'3~ ro~+r'ki~3'~`~zc,~ ~Sr~~i ~ +~s-r `~ t ' _ ~ ~.~ .. ~,T.~; :'. If :you have any;°`comnents ~or~ questtons, ;please' contact Mr `;Steve ;Fell at (907) 564-' ;x 4036 Sincerely; H. I. McGee M rw~~s Senior Vice-President, Prudhoe Bay Unit ARCO Alaska, Inc V. W. Holt CNS Business Unit Leader BP Exploration (Alaska) Inc. ,. .. ~. <:_° i i. ' _Y t " rr: YIP~"1~~Ot// 217?~r~r~~_r 7C'r.' ..::LPA~allot 9952 s ~~.~~. :. NPA~Ballot99-007 {:= .- 1.~' -`Srz~. ' BALL(3T AGREEMENT FOR CONTRACTION OF T~ PRN i' ;i Na PnRTiciPa~rnvG ARC, Avn LrssvRNE Pax . _ x~ . :,.. ._...... ~_~r_..~.~. i. ~ ._. r~ R...~ Prudb =~ OWaE Inte1'~ ' 'the ``~ ;:;r W~ <'~:allow :~ "1NEi% '.whc, wtli 1. The Parties approve the contraction of the Prudhoe Bay Unit, Lisburne Participating Area, and Niakuk Participating Area to exclude the Subject Lands. 2. The PBU Operators aze authorized to file with the Commissioner of the Department of Natural Resources ("DNR") an application for the contraction of the Prudhoe Bay Unit, Lisburne Participating Area, and Niakuk Participating Area to exclude the Subject Lands, contingent upon DNR's approval of the exclusion of said lands from the Prudhoe Bay Unit and inclusion of said lands in the Duck Island Unit Eider Participating Area. 3. This Agreement is effective upon approval by a 95% vote of the Oil Rim Owners, all of the Lisburne Owners, and all of the Niakuk Owners. Ballot Agreement for;Contraction of;the Prudhoe Bay-Unit, ~ ~ ~ .; ~~PA-~allot>99-~~17 h= ~ ~ - Niakuk Participatin Area and LiSburne4Partici atui Area' ~-. _> LPA'-Ballot 99-052 -- ~ ` ,g . P.: - r NPA Ballot 99-007 4. As among the Lisburne Owners,this'Agreement supersedes Section 56.02 of the = ,. - Lisburne Provisions~as to .this specific matter'only; ~ The Tract Participation for Tract 33.: in the LPA' will remain unchanged. - ". ~~E~~ 5. With respect to the NPA;his ~greement,supersedes Section ~I01.01 bf the ~~ ~~~-;~, Niakulc~~Provisions~as to tllis~specific m~ttei~nly ~The'Tract Participation for~~~. ~~~ ~~s, ~~ , __ ~~.. ... :xr:a'. .<•.b~ ~.. a~~.i_.r i,..... .~... ~3~x i.~4C~e au_ .__...A..~~... :s,~r =ircu:~~~~:ui w ,z-, 6. The folloWin; r .and changes 3 refer~en,~~ 1 1 V 1(iJlVlli 7. - ~=, :` E ~a ~k~Ea ~.; _::: .::- -~ } ;~E~ r E same instrument. ~ ~_ ~_ ~~ ~~.~ s ~~ 5- r. ~~ =r- :.... t: _ - IN WITNESS WHEREOF, the Parties-fiave executed :this Agreement on the date opposite their respective signatures. - PRUDHOE BAY UNIT WORKING INTEREST OWNERS lie de ~~tir -- andthe BP EXPLORATION (ALASKA) INC. By: Title: L'NS ks~ ntcs l.Cn~ ~- (,ec~ Date: q - 3 -y ~ ARCO ALASKA, INC. By; ~ /1 ~ Title: ~'~Ir a~ Date: CHEVRON U.S.A. INC. By: Title: Date: EXXON CORPORATION By: Title: Date: -2- FORCENERGY INC. : -_ MOBIL ALASKA E & P. INC. ~. t t- f:ys v~ ~., ~~~T Mir w-kwf~= `M,~{ a y7~ iii. ~": U -3- ~. '_ , - +: { Ballot Agreement for Contraction of the Prudhoe`Bay Unit, Il'A Ballot 99..217' Niakuk Participating-Area and Lisburne Participating Area =:LPA'Ballot 99~~52-~~` --. - NPA Ballot 99-007 ' . _ f, . a ;r.. -;~ :..., - ~LISBURNE OWNERS ~ - - ~ ~ ~ .:.• y ,~ ,yyti,; ~; ARCO ALASKA INC. ~ z~~ BP EXPLORATION (ALASKA) iNG~ ,~ i By' _ ~ ~ s .7,1 ' y~IV- ~911t k da"i0.'t~r^,~•N,. Y~ .~ ~ f :Title :~ ~ ' -~~ e,~cS~Tit1e t" ' ``~iaess ~~}-< ~ :~, Date ~ J~ , ~ -~ 4 ~~}~ ~Date.~', ~`'~ =~~`1: ~'u=~~ EXXON CORPORATION ?yy .~„~„~.. a : ~ ~ .~~~~ f -~s ~ ` x~~1 ~ r ._ z wr ~ ~ y ,t. f B~ .` < .'~~ T .. '~R_'i."~C'+'~g~Fm~`-'i~`b >~' l'~Y ~~~~ ,fir s `'~x~"{- '. .:. <s~ ~y ~. Title ~ , ~~ h ~ ~~~ ~~.,,~.~~.,,~.~ ~ _ ~~~ x~~ ~ ~, ~~ ~ ~~ ~3 ~~' t -~~ °:p . Date `~ F ~~><~~,~~~~~ ~~~~~~~ ~ ^.'~r,~~~ , . `' fir. ~ ~ 5 u: ~3- -~~l.~a~ .;~ ~ ~~',~ _ ~ n ~ ,' w~ s ~ ` axe ` 5~,,~~+a~'~ _ k ~ r+,. ~ °jr . .. i -- ~~r i ~aP~if7q ~~"~+' nJ :2~i4 &~« 6W'~•'~ y~`' 3 4~n> _ '. ~' ~ ~~~ BP EXPLORATION AT.,A~SKA~1~7Q~TC~ ~ ~~ ~` ~` j~ ~`f'" a~ `-~'"~ ~ '-_ ~a - r ~ r J ~ c~ §~ 5aa. Sk~Y? ~, B ~ ~ ~T 'A Y {' t -.- y r '7 y v. y; ~ . ~ . ,.d Vii'' y- ' ~2 r ~-'~ F) t' r# k .>~- 'fhb} jr ~ ~ < Title: CN5 ~tcs;:L~~u (,l-.1 ~- (~ - dL e~/ - ;~~`±~~+~ ~~. f ~ ~~~~: Date. `q - ~ 3 ``=9 9 _ f ,~ b ~'-F- Working . Tract < Description .:. Base -Lessee of_ O.R.R. Interest ' No. LeaseNo.. - (UmiatMeridian,Alaska) . Acres Royalty :::::.Record Interest Ownership ~ -~. .; -,..: ,,;;. 4 ADL 034625 T12N-RISE, ~ Secs.13,14,23,34 r 2,56000 1250% B~loratioa 000 BP Exploratwn-100°6 ~ ?+~~ - . _: 4 ~t i Y~'F'f>~'r ~ ~ ,::-- `u ~, ~.'tP1` ~3f Xr`~ c <ww,~ ~.wfiv i '*.~`, ~ ji ~ya~i ,. 5 ADL 034626- T12N-R15E, Secs. 15,162122 .2,560.00 12.50% 14RC0 &Bacon`~, ; 000 =: ARCO-50°k r ~ r' ~ ~i~=~F` f ... z :: ,~'~':st~ at E7000n-5096-~ 3:x~~ '~_~~ 6 ADL 034627 T12N-R15E, Secs 18,1920'i. 'S/2 ~ --~ii °°~ 1,48800 125096 ARCO & F~ocori ~~'°•)0 X00 .ARC0=50°k ~' '°~~..-' 'v q{w-i t -q li , d - ` iaY ZL.1/i S 5 -t~~Ao~ i ~ ~ `: ` •. .. • . # v ~ a .>~ . ~;, ':: " r ~~'"rv-~ Yh s :' a '~s'~~i.t~!t,.~~15 '~~is,~~ -~E:70~on`.^'~" ' -r~.~ . 7. 'ADL 034624 ~T72N :R14E, ~'Secs:13,14 . N/2N/2, . ' 2,12000.• 12.5096'ARCO ~f~ocbn ,~~~ 004 -/lRC0-5096 '' ~ ~ ~ ~ : '. 8 ADL 028297 T12N R14E, ~~ecs..1516,~21 Nl. `~ ~,~1~ ~ ~~, 9 ~ ADL-047469'T12N-R13E,~ecs~'19,20 {yam' ,, X10 ADL 047448 :T72N R12E,`~,Secs.23,24. '~ 14 ADL 047447:T12N-R11E, Secs 15,162122_ 15 'ADL 047446 T12N R11 E, Secs 17,18,19;20; ~. 4Y, ,, ., ~ ~,~~. - .. - .'. .. ~ !. y . - - 16= ADL025637~712N R10E,. _c'S"13,2 ~, ~ ~.,~«; 17~- ADL047449:T12N R11E, e~cs.~29,30 ~, t ~ 18 = ADL 028239, T12N Ri 1 E, ~Secs~'27,28,•35,34 ~~ ~: ~` 19 , 4 ADL 028238.: T12N-R11 E, i~Secs 2526,36 ,, _ =' ~i, -r~ 20~, ,ADL 028259 T12N Fi1}2,E; Secsc}29,30,3'~32; 21 =ADL 028258 T12N,R12E, .Secs: 2728;33,34 22 -ADL 028257 T12N-R72E, : <Secs: 25,26,35,36 23 ADL 028279 T12N-R13E,.:Secs.29,30,31,32 24 ADL 028278 T12N-R13E, Secs. 27,28,35,34 25 ADL 028277. T12N-R13E, Secs. 26,35,36 26 ADL 028299 T12N-R74E, Secs.29,31,32 27 ADC 028300 T12N-R14E, Secs. 27,28,33,34 28 ADL 028301 T12N-R14E, Secs. 25,26,35,36 29 ADL 034628 T12N-R15E, Secs. 29,30,31,32 30 ADL 034629 T12N-R15E, Secs. 27,28,33,34 "2,560.00'1250%; ARCQ & IaocOn +'x= ~ tp i= ARCD=5A% :, , - -F _ - - EXxOf1;50% 2,560.00-`:1250%:_Mobil`&'Phillips ;-`';0.00~~Mobil=50°k~ :' • Phillips-50% -=: . . 2,459.00 12.50% BP: Exploration . -_ :0.00. - BP.Eie~loration-100% 2,560.00 1250% BP Exploration. ~ ~ .0.00 ' BP Exploration-100% 1,920.00 1250% BP Exploration `' 0.00 BP Exploration-100% 1,871.00 1250% A.RCO & Exxon ' ° 0.00- _ARCO-50°k Exxon-50% 2,560.00 12.50°k ARCO & Exxon 0.00 ARCO-50°k Exxon-50°k 2,560.00 12.50% ARCO & Exxon 0.00 ARCO-50°k Exxon-50% 2,459.00 12.50% ARCO & Exxon 0.00 ARCO-50% Exxon-50% 2,560.00 12.50% ARCO & Exxon 0.00 ARCO-50% Exxon-50% 31 ADL 034630 T12N-R15E, Secs. 25,26,35,36 2,560.00 12.50% BP Exploration 0.00 BP Exploration-100% 32 ADL 034635 T12N-R16E, Secs. 29,30,31,32 2,459.00 12.50% BP Exploration 0.00 BP Exploration-100% 33 ADL 034634 T12N-R16E, Sec. 28: W/2, NEl4, 1,520.00 12.50% BP Exploration 0.00 BP Exploration-100% NW/4SE/4, S/2SE/4 Secs. 33, 34: SW/4, W/2NW/4, SW/4SE/4 36 ADL 028337 T11N-R16E, Secs. 3,4,9,10 37 ADL 028338 T11N-R16E, Secs. 5,6,7,8 38 ADL 028320 T11N-R15E, Secs. 1,2,11,12 2,560.00 12.50% BP Exploration 2,469.00 12.50% BP Exploration 2,560.00 12.50% BP Exploration Page A-1 0.00 BP Exploration-100% 0.00 BP Exploration-100% O.GO BP Exploration-100°~ '_ ' Working Tract Description - Base ~°> Lessee of O R R "'' ' ,Interest No. Lease No. (Umiat Meridian, Alaska) Acres Royalty -Record ` -` interest'': --:Ownership 39 ADL 034631. T11N-R15E, Secs. 3,4,9,10 '. - 2,560,0012.50°6 ARCO & Exxon x,~~~'0 00 a4RCO-5pg,~"'~ , ; w'~: - . ~,~ f- ~ ~ ~:.. .~ :. H -'. 4 h~ 40 ADL 034632. T11 N R15E, Secs. 5,6,7,8 - - 2,469.00 .12.5096 ARCO & Exxon ~ _~ 1)0~~~-~Oy6 ~ s . 41 ADL 028302 T11N R14E, Secs 1,2,11,12 ' 2,56000 '12.50°6 ARCO&E~ocon~'~0.00`. ~~ p .~F 42'' " :AOL 028303 T11N R14E; Secs 3,4,9,10 2,560 00 1250°~6 ARCO & E~bcon _ ~ ~0- ": ~~~ .,, 43 ADL 028304 T11 N R14E, Secs. 5,6,T8 S ....{2,46900 12.50%'~-RCO $~ on .00 "' ' _ ,,,~ . 1 ~' -eF` ~ r~s F . ~. s, _ ~ psi ~. 44 =' ADL 028280 .T11N-R13E, Secs.1,2,11,12 ~ t ,~1~ ~ r2,560~0'~2.50%~ P~Exp oraUo ~ , - o t p0ob ~ 45 ' 'ADL 028281."T11N-R13E, 'Secs 3;4,9,10 Yi ' ` ~ "fx~2,56000~2.5096§Bp~ '~ '~ ' E u .f 46 ADL 028282 :T11N-R13E, Secs.;5,6,7,8 ~ "~;46900`2.50%,BP,~Exploratt'""~ ,~„Op: -~ " b. pp96 ~ ~ ..: - - .. 47 ADL028260; T11fJ=R12E, ~ ~Secs.~'1,~;11,12 yin K ,~ `= 2,56000 3'i2:5096~BP-oration 00. -~OOga~ .:,, s 48 ADL.028261.T11N R12E, =Sacs 3,4,9,10 ;~T ~ 2,56000 ~2.509b.Mob~i~~Phiilips p0, _ f ;~ _ ', y, S 1~w .E '49.. ADL 047450 T11N-Rt2E, -~ Secs 5,6,7,8 ~" ` x f 2,46900 i'1 ~ ~Pidlli ~~rx , 50 ADL 028240 711N R11 E, Secs 1,2,11,12~,~'~yr~2,5gp60 00 X12.5096 . i3G0 s.. .f , :.v. ~ i1 ~r< r '~~, rS~`''Z'~3~f~.e~ Y }aa. i. .v . 'S1 ADL 028241 :711N R11 E, Secs 3,49,10~,~~~~~~2.560'00~ ~ Pfii „ 52 ADL 028244 T11 N R 11 E, ~ Sea 15 ~ L ~ •` ~ ~ =' f~ 640 00'x) 2.b0°~ ~R, ~&•F~a ~ -- ~~ 53 ADL 028245 T'11N-R11 E Secs. 13,14,24 = ~ ~" y ~~ ~~ ~'~ ~~ 4~. a ~ =-~ ~" n'~"~O ~ ~ i ,x~ ,92Q 00 x,12.50% tARCO & Exxon. 00 '~~ .~ }.. ~.x a.: ,:: ,mow. . a.:'..w ..~~s ~,:. ..... ~ e~7+~'.: iM : ~- ~ ~ ,. •-} ~ ~ i 54 ,ADL 028262 T11N-R12E, Secs 17,18,19 -~s-"•~ ~ i ,. 1,8 0002.~Ct~e' o ~- pp~ ~-,.~.,,~ ~' ` 54A~ ADL028262~'f11N-R12E,''Sec.20`~`~ ""~~°~~~~'~~64000~12.50%'~Mfl, hillip , p ~ '' ,~_ ,;_ }Chevron ~P4hili'ips-33~'i/3~°`- 4~ v, Chev,~on-33-1/3% 55 ADL 028263 T11 N-R12E, . Secs. 15,16 '1,280.00 -12.50%Mobil &~ Phillips '~D OO ,;E•Mobi1-50°0' ~~'_ ~ ~ " `:' . Fz~ `;Phillips=50% = .: ` 55A ADL 028263T11N-R12E, Secs. 21,22 1,281).0012.50%Mobil,Phillips, ~_000.:Mobil-31/3% Chevron ~ Phillips=33-1/3°k Chevron~3-1/3% 56 ADL 047451 T11N-R12E, Secs. 13,14,23,24 2,560.00 12.50°'° Mobil, Phillips, 0.00 _Mobil-33-1/3% Chevron Phillips-33-1/3% Chevron-33-1/3% 57 ADL 028283 T11N-R13E, Secs. 17,18,19,20 2,480.00 12.50°'° BP Exploration .0.00 BP Exploration-100% 58 ADL 028284 T11N-R13E, Secs. 15,16,21,22 2,560.00 12.50% BP Exploration 0.00 BP Exploration-100% 59 ADL 028285 T11N-R13E, Secs. 13,14,23,24 2,560.00 1250% BP Exploration 0.00 BP Exploration-100% 60 ADL 028305 T11N-R14E, Secs. 17,18,19,20 2,480.00 12.50% BP Exploration 0.00 BP Exploration-100% 61 ADL 028306 T11N-R14E, Secs. 15,16,21,22 2,560.00 12.50% ARCO & Exxon 0.00 ARCO-50% Exxon-50% 62 ADL 028307 T11N-R14E, Secs. 13,14,23,24 2,560.00 12.50% ARCO & Exxon 0.00 ARCO-50% Exxon-50% 63 ADL 028321 T11N-R15E, Secs. 17,18,19,20 2,480.00 12.50% ARCO & Exxon 0.00 ARCO-50% Exxon-50% 64 ADL 028322 T11N-R15E, Secs. 15,16,21,22 2,560.00 12.50% ARCO & Exxon 0.00 ARCO-50% Exxon-50% 65 ADL 028323 T11 N-R15E, Sees. 13,14,23,24 2,560.00 12.50°~ ARCO & Exxon 0.00 ARCO-50°k Exxon-50% 66 ADL 028339 T11N-R16E, Secs. 17,18,19 1,840.00 12.50% BP Exploration 0.00 BP Exploration-100% - 66A ADL 028339 T11 N-R16E, Sec. 20 640.00 12.50°1° BP Exploration 0.00 BP Exploration-100% 67 ADL 028340 T11N-R16E, Secs. 15,16 1,280.00 12.50° BP Exploration 0.00 BP Exploration-100°1° 67A ADL 028340 T11N-R16E, Sec. 21 640.00 12.50% SP Exploration 0.00 BP Exploration-100% 69 ADL 028343 T11N-R16E, Secs. 30,31,32 1,851.00 12.50% 8P Exploration 0.00 BP Exploration-100% Page A-2 - - ~: • __ ' PRUDHOE BAY UNIT .: ~ ~ PBU Agreement Exhibit B-1 . 7i__.. .:. .. _~..... • • • ~ r. F I - ~ i . ~ __... - ~ • 1114 ~. ti: • y ~;. • : ' i ~ r ~ -.__ -16' .... 1&_.._.. ...~~._._ ____ 1 .. 1 2 1 3qi; '~~'~ -~ 1jq~ f.r ~ s+, •~ E! I c.:s..,a,} ~ . .. - r , ADL ~ 7 gDL0Y74~6 Ap101N447 ~ ~ ~~ ro~ k . + y.~t ~ ~ir ` .`ti '--- ~._._._ ... --18--- ---1~q- ;. ~. ,s ~. a yG'".:.:~}lic*~r` ;' -. ~,~Y.. 'T,u;p ~ .. r a w'4 ~ 14W ~ ~ ~ p:y yt r~~ ~ 7:. ~ - • ~ ~ . . . • 1 • • • • • • • • • ~. .. '.. { ~ fit, ~a ~ ~.. R• 1'9g k~ fd'AS at `v~'` . 41 /1~ ~0 ~7~160 n. ~+. ' } .nn ~ . ~,.: `~ ` ~. M r r 0 82 ~ S ~ ~ j ~ 1 ~ ~` a~ ~ , ~ n is i -a ~~ __ _ ... .... _ ..... .. .....' .53 ,~ .~ st. .,{~ ~irr. , ~~. ~_ .. NDL.0202M I1D 46 .~:. ~ 09A J -i i -- i ' . . . • 4p.~~,~~~~r ' i 1•• r } i ADID~282~6 7~A1 ASWIt7~S2 ~°`~~ ~ ~1~ a.. ~ ~ , q! -: ' ~ ~ ~ 734 4N '~ i •1 i {~[ ~ • • ~ ..• ~: •1 __ 4 I '1: ~. 'lei :.jj ~ ~. ~ t~y{R ~ iS, • '•.. ~ •~.. .~ +' p • ter il" ~ '~ ,'~ r ~''~~ ' • • ~~ • ~' ' >~ ~ • i. ;. k ' ~ , . . •• r ' -- f tq wl., g..Ty,'k~iYi73 r'!"`r + ~y".~• i :~ ~ ~ , ' BO 1fwCT•wel71 . . r • - y do +-{4r'~~. Y . ' 1 lt,y r •Fg;..x• '_.'.F i~~ (fA•lRA11C6 idR/aRr ~.~•_ ~ ~ '{}f ta. Fyp. F •,, Tl. }, ~'~ ~~S NY ~t~bt Y~jkh `yv ~~ rnaees•rurxreour~r I . 2 ., h~ ~ ~,h rfi ~ ~ e - .,! ~ ~ .~. ~{' Y < ` t .,,~ i. 4r~.: ~$p, L ~'~ r - w •. i•r •~ rv r ~J•°d ~•R s~j ~ . i. f... 1 i d• 5' A ~ lR .~.1... .. ... _~ ..4ti Yi/? -N~:r •i. '•Y.4 ~ ':•1 iii ~'. •..~ . .. .. .. ~ ... ...... __ y. I ~ i ~iI {a~s,im + . • ` a .:• c ~ ~,i~ i"~ ~ :` e~ ~'s~'' a .~.,:t~~ ~ . ,~' i~ • ~ ' 1' r s.w~• • 1 i' Y Q 1N• A .r4< +i +4~' } >) ~{ „a.~+~A ~ ~xI'} ••'~ . • •`4 • , N20M lglALAMNN~OA • • • • r • ~, ~ J.• '~• .1~' `yr • s ; ~ ; . a 7 r r ~. {'1 (. „' • ..t r.. .. Y• .:k.: ~i Y•I.n•u i. +.M1 .Yt ~ .S'.. ~ .~IH11 •~~~~ t •Y3 ' .'& > }>• , J ~j ~~~ 7•.~7r -~ ' ~ ~. ~<~lqy ~ 3 w 'r.r ~, ,, Jw . E"t~V , ~ ~ {j : } ~ ~ ~~'~ ~=h~r 'Oa' yw ~ 'i'tf' ~ad' ~"tFS ~ ~~ 4 ar i~ ~ ~.T ~ ~ . • ~ ` a~? t ~d, 4 ~~~ `% ~r,~, .lye +t~ ~ ~ 7,: ,~y ~ ay. %'kc f ~ i.S' 0.'~~ ~^ ~yl fy 0.I 9 ~~i~' .~ "'f~1 1( ~}l• ' ..' II~ ~, ~~ ,~°~ ~ •yy,,~ + ~~ .. .. 1 ~ aC~ro`,~~w.p>~ •. ~'~Mi~tG yy ~~ ~.a ~ .. ~ , ' ' =~ .. .. EXHIBIT,A-1 ~~ ~PRUDHOE BAY UNIT AGREEMENT : : AUGUST 1, 1999 Working Tract -0e§cription Base Lessee of - O.R.R. interest No. Lease No. `. (UmiatMeridian'`Alaska) ~- Acres ~_ Royalty Record Interest - Ownership . 69A ADL 028343: T11 N-R16E, Sec. 29 ~ ~. 640.00 :12.50% BP Exploration ~ 000 BP Exploration-100°~ 70 ADL 028324 Ta 1 N-R15E, Secs. 25,26,35,36 ..2,560.00 ;125096 ARCO & E~ocon 000 ~-RCO~bO%~' • . 71 ADL 028$25 Ti 1 N R15E, Secs 27,28,33,34 ~- '2.560.00 1250°6 ARCO & Exton .0.00 ~Ai~C0-6b~6~- `` x ~ .. . i ~ , 31 32 "~ T 1 N R15 72 '• ADL02 6 'Sec 29 0 ~ ,t EJOCOn-50°Ao a r ~ °2 491.00 5096 ARCO & E 12 ~~ ~ ARC ~~ ' b~~~~ , - : - 1 s ,0 , 832 E , .- . ~ocon O DO; 1i 0 ~ ~ { ,,f 'T ' 4 ~ ' `~ ~ :. 73 ` ADL 028308 T11 N R14E, >Secs 25,2$,35,36 ~ .n. i ,~ t -2,560.00 125096 ARCO~&'~Exxon ~' 0~0 0 `~ ~' ' b ~ :. . ~ y~~4 ~ fY " ` ~.1 ~.. - a. ~Ly Y .may p ~y~a ~'-•aY b~•....t t .~ s. ~h~rd ,'{`~ .:~.- ~,.,,... Ll_s ~..~~..;~ftC:`S.;G>!ie"1~~~2~u''k7M-•t~ i. i.--..t ~~ 74 'ADL 028309 T.11N-R1~}E,,,,,Secs 2T~ ~~3~34~.~~~. .75 ADL028310 T11N R~4~,FSecs~`29,'30~1~2 :'... • 76 . ADL 028286 T11 N Ri 3E,.Secs 2.5'x' t;35,~36'~s - 77 . AD1:~028287 711N;R73E;; Secsa27~8,Ci3,34~; .: 78 ADL 028288 ~'11N R13E,Secs ~8~0~1;3'L~+F. ' 79 ADL 028264 T11N-R12E,SE ~ ~~,35,36 ~' 80 ADL047452 -T11 N R12E;~,c$ecs 3T~8,23,34 %' 81 ~ ADL047453 T11N R12E?~~Secs~~98~30,31~32~";~.. y ;~~: • 82 -. ADL 028246 T11N R11E,L%Se~~25: ~ {~? :~., 83 .ADL 047454 T10N Rl2E,~Sea~3, ra0 ~ t`_~ 84.. ADL'028265 '1'10N=R12 ,. ~SeCS,1 ~ , 2^r°~" 85 ADL 028289 T10N-R13E, `.Secs `5,6,7.8'" 86 ADL 047471 T10N-R13E, ° Secs. 3,4,9,10 87 ADL 047472 T10N-R13E, Secs.12,11,12 88 ADL 028313 T10N-R14E, Secs. 5,6,7,8 89 ADL 028312 T10N-R14E, Secs. 3,4,9,10 90 ADL 028311 T10N-R14E, Secs. 1,2,11,12 91 ADL 028329 T10N-R15E, Secs. 5,6,7,8 92 ADL 028328 T10N-R15E, Secs. 3,4,9,10 93 ADL 028327 T10N-R15E, Secs. 1,2,11,12 94 ADL 028345 T10N-R16E, Secs. 5,6,7,8 95 ADL 028344 T10N-R16E, Sec. 4 97 ADL 028346 T10N-R16E, Secs. 17,18,19,20 ~~''" ~~'~ 1,920 00 12.509b Mob , Pt iiliip$, ~ 00 ,; 01~1153~~~~ z ~ , ~ t -~ ''Chevron .~~ ~ ~ ~ ~ , h'"iil ip s 3 Y 3 .~ 1-`j3 % ,; . ,, ~'~~i ~'}'R ~^'RS~z '' ~„~b4".iL+~~1~lz~ .2.560.00 'i 2.50°'° ARCO & Exxon 5 /I ~ ~ ~ ~~ j p y/p tom- ef,N IVJ- (~7'S -1~- >~ 0 00°`::~CO~5Q~°~ ~ ~~ v~.4. '` -"Exxon=5096 - 2,501.00 1250°k Mobil & Phillips ' 000 ~MOf~~I-50~ . ': _ : Phillips50°6 . 2.560.00 1250% ARCO 0.00 _`ARCO-21..25% BP Exploration BP Exploration-27% Exxon Exxon-2125 - Texaco Texaco-30.59'° 2,560.00 12.50°~ BP Exploration 0.00 BP Exploration-50% Texaco Texaco-50% 2,501.00 12.50% ARCO & Exxon 0.00 ARCO-50% Exxon-50°k 2,560.00 12.50% BP Exploration 0.00 BP Exploration-100% 2,560.00 12.50% BP Exploration 0.00 BP Exploration-100% 2,501.00 12.50% ARCO & Exxon 0.00 ARCO-50% Exxon-50% 2,560.00 12.50% ARCO & Exxon 0.00 ARCO-50% Exxon-50% 2,560.00 12.50% ARCO & Exxon 0.00 ARCO-50% Exxon-50% 2,501.00 12.50% ARCO & Exxon 0.00 ARCO-50% Exxon-50% 640.00 12.50% ARCO & Exxon 0.00 ARCO-50% Exxon-50% 2,512.00 12.50% ARCO & Exxon 0.00 ARCO-50% Page A-3 ~. EXHIBIT. A-1 PRUDHOE BAY UNIT AGREEMENT . : "AUGUST 1, 1999 Working Tract -„ Description Base Lessee of - O.R.R : ~.-.Interest No. Lease No.: (Umiat Meridian, Alaska) -Acres Royalty Record Interest °Ownershi . -r.: 7 , 98 ADL 028332 T10N-F~15E, = $ecs 13,14,23,24 2,56000 ~42.50°~0 ~ RCO& F~oc x,00:.. ~ - ,~ t ,~ 99 ADL 028331 T10N-R15E, ~?; Secs :15,16,21;22 - .2,56000 _125096 $P Exp'iotation , r ~ 00,' P~ , .100 ~ ADL 028330 T10t~1-R15E, ..Secs :17,18,19,20 ~~ ~ ~ ~~ ~ ~ ~~ ~~- ~~~ ~ ~2,5/200_~„ BP~~ori ,00. SP . 101 ADL 02815 T10N-R14E, .~~Secs X13,14,24 ~ '2,660 00 ~2,~ , BP~.Ex~loratfort 00 102 ADL 028314 T10N R14E, ,>_ Secs.15,16,21,22 , ~ •: '~ ~ ~` ~ ~_- ~ _~~ °~o. obili&. .00 103 ADL 047475 T10N-R14E~' -Secs '17,~8,i9,20 F'~St209' _.. _. , ~ P- mi P x ti ~s . ~tl~M e't!s. ~ f .~ ~ c r eXS .. :ifs '~ r'~4 •i`r ~-i.. ~;3_. 1+.a- i04 ADL 047476 TiON-R13E.:; Secs. 13,14,24; ~'~~ .00 ;Floc . r K -~~ 105 ADL 028290 T10N R13E, .Secs 15,16 ~ *3,, ~. t 1~- 00 4 x ~t ~ ~ ~ 4 -106 ADL 080596 T10N-R,1,~E,4~' Secs 27,28 . '00 ~~~ r 107 ADL 0283~f,~T110~~,~,k4~E, ,Secs 26,3 ~~~~ :,: 107A `ADL 028316~J"10N: R 4E,~' Sec 25 ~_ :00. `.:~0 y-r ti ._~ 4A..: y.5 4 i ~ :1~ 1 ~ ~ ~ ~~ .108 ADL 028335 ~T10N=R15E, `, Secs ;29,30.3Z,32~~~x r 1)0 P• " 'IQratl.e° s00 Pam„ . 109 .ADL 028334 T10N R15E, `` Secs 33,34 ~.~~ ;•. 1 ~~ OQ.. 2096 ob i&~hillips 60 ob 109A ADL 028334 TiOtJ R15E, ~Secs';27,28~: !128000 >~ . t , ~ ~, _~ ~ ~~ ~ ~ ~ .',r ~}~~:~ ~~Chevron 33,/3°k 110 ADL 028333 T1 t)N-R15E, Secs..25,26,35,36 . _ ,2,56000::12,50~zBP. ExploraUott--~ ~ :0.00 ~-BP Exploration-100°k 111 ADL 028349 T10N-R16E, Secs. 29,30,31 ~ ;1;883 00 `r1250°'a~;BP:Exploration'.Y `x.0.00 'BP Exploration-100%' 112 ADL 028275 T12N-R13E, Secs. 21,22 ~ 1;280.001250%'ARCO:&Exxori ' ~ 0.00 .~ARC0-50%`~~ - - Exxon-50°!0 113 ADL 028276 T12N-R13E, Sec. 23 640.00 12.50°~ ARCO & Exxon" 0.00 ARCO 50%` - Exxon-50% . 114 ADL 028342 T11N-R16E, Secs. 28,33 1,280.00 .12.50% BP Exploration : 0.00 --BP Exploration-100% 115 ADL 028298 T12N-R14E Secs. 17: N/2,N/2SE/4, 31200 :12.50°k ARCO & Exxon 0.00 ARCO-50% NE/4SW/4, excluding Exxon-50% USS 4044 116 ADL 034622 Ti2N-R14E, Secs. 3,4,9,10 2,560.00 12.50% Exxon 0.00 Exxon-100% 117 ADL 365548 T12N-R14E Secs. 1,2,11,12 3,601.00 16.67% BP Exploration 0.00 BP Exploration -100% T12N-R15E Secs. 6,7 within 3 mile limit Total PBU Unitized Acreage 244,875.00 LEGEND: ARCO - ARCO Alaska, Inc. BP Exploration - BP Exploration (Alaska) Inc. Chevron -Chevron U.S.A., inc. Exxon -Exxon Corporation Forcenergy-Forcenergy Inc. Mobil -Mobil Alaska E&P Inc. Phillips -Phillips Petroleum Company Texaco -Texaco Exploration & Production Inc. Page A-4 • r.,;~. . PBU Agreement Exhibit 45-A . ' PRUDHOE BAY UNIT - LIS;dURNE PARTICIPATLNQ AREA .. , . .~. -- - - .. . ' . ~. I_... .~._.A n-_._.'~.._.. '~._...-I ~- . . zR .I. ~ .i ~ ... .. .. _w _.. _ . I _ ..I --- i i I _i.. • ; - - - . __. __ - - w.... , " ~~ 5 ,• • i ---14 1 1 2 113 "•• ~ 'YI E y,~' is . 4 ix, x ' ~fi• ,c ! . -_ `_. fig.-__7I _._..._ I ~ .' .. '. 3 ~,'~ „!. ~~ gp(AgMB AOL047447 ~ ~.• ~ ~ • • • nw ~ . . . I . . . . . • .. ~ • _~ ___ ~~ :.~y . 47 40 ~7~6D .v~ ! ' 6 ~s t II I . ~I~~~ - , .; ': 'i •R . _ .._... ....~ __... _-. f ~ „~~ tQ `• • >. I i . , h ~, r- a1 N~ • •. ~.~ . i. J... ti . t' yy Y ;Y S~.„x yy g .u~:. .. .Y ~ • ~~ UNI • n 'av S , ~~ • <~ ~r . nv. I I . . w • ~! +f' ~: III uns,eoo • jr x • a ~}~. ' ~..,p~ ~'a ~„' ;n. ~ ' .*, - ~- 1(( ' ~ N.ew+etaw.NrMaor- ,. ~ Y+~as ,1T~ C "r „ `+ r~ ~` !1 ** ~ ~ ! '~,i ~ t 6 . . . . . k li . t . ~ 4 G-t yr ~. KrY K?~.N'xrV .. a ~ / nFi cY ~ rR . !' ,10YA~YnU1 ~Y Y' : S"?w , 'r •¢ a.e+p ^~-n e y ~ b t#,^t a~• "i"ce: j~ ~~kaz„ ., ,.,a tiy, ~ 1 f T A S ~ ~ ~ y ~' M1 3 .,gt~~ sr 3 rtit S..x~w ~c +~. 'fir ~7.. r j~•f~'SA s.'Ak f g.~ '~C •y1~`t ,, ' S '. 1 3 {'br '. f"". ,~ .. A~ ~.. t " ~ •T+.^.~ 1 ~ua , fi f w. • Lisburne Provisions.(August 1,:1999) ~~ EXHIBIT 45-B TRACTS WITHIN THE LISBURNE PARTICIPATING AREA AND LISBURNE TRACT PARTICIPATIONS ` '~ - ~ -:.;; .:Working Usbume~' Tract No. of Serial Bastc `t.essee Interest ~/=Partidpa5 Number Description' Acres Number Royalty < Of Record `.;- Ownership ~; ~, ' 25 T12N-R13 E, Sec: 36 640 `r , 28277 ~;;1/8 BP >< ~;,BP Exploration-017 .. - .: :. Exploration ~ ?'l00% : ~ ~~m -,~z 26 T12N-R14E, Secs. 29,_31; 32 ~ 1,871_ 28299 X1/8 _ ARCO & . ': ~gRCp.60y6~ ~~~87 . ~- <c ~; .Exxon s Exxona096 ~" ~" 27 :T12N-R74E, Secs. 27, 28,.33, 34 2,560 .28300 r~ ~'j1/8 'ARCO & } ~ ARCO.5096 a- _ r-ae,4 :. , - • ti =Y,7~ '; }`~ 6ocon E~ocon-50%, ' } 28 •' T12N-R14E, Secs.~25,~26,35,~36~° `- 2,560 ~ 28301°^'y/8 ; MARCO & y~'~~~ ~``~ARC0~096 ' y ` Exxon 'Exxon-b0%~....~ ~ .~ 29 T12N-R15E,Sers. 29, 30,31, 32 ~ .- 2,459 F 34628 ~ 1/8 :., a °ARCO & s ,~'; C0~5096 ,~ _ Exxon > ~` .~ 30 T12N-R15E, Secs: 27, 28, 33, 34 2.660 ~, 34629 ~~{/8 ACRwCO &` ; r ;f"~ r~/1R(~:5096 ' . '~~ r•}t?;1 'F . Exxon S h E f~L....,..._CAp~ 4 y a~3 31 T12N-R15E, Secs 25, 26, 35, 36 ~ 2,56034630 U8 BP .. ~~, ~ ABP Ex~lon~tlS.on, .37 . ,, g~r.'t~.•~;~ ,,~Lk ~ loration;z~ 't00%~~` .„,`~~' 32 T12N-R16E, Secs. 31, 32 + 1,231 34635'~~1/8 'ABP °~BP Explon~tfon- ~15 - - v to '..1 t~ .. ~T" A` ~ "+Fat~ -t! ` " ` ~~~ Exploration nv~t`100% :'~ 33 T12N-R16E, Secs'28 `-~ ~' `~ 1,620 ~ X3634 ~tz/8 ~ '~" BP''~"""'BP Exp'i Y ~ on,~ ~ c W/2,NE/4,NW/4 ~SE/4, S/2,SE/4 _ , ~',;; t~ Exploration = 100% ~ ~- Secs: 33;'34 SW/4, W2~'NW/4, ~ 7 . t^v hY ,, ,, 1 ~*, ~, ;t j~~x '', ~~ > ~ .: 36 T11N-R16E, Secs. 3, 4, 9,10 z 2,560 t~28337 ^~'~"°}1/8 BP ~ ~ ' p r~BP Ezplonltion-, f 5 vfa., EXpkN'atlon ^ f +^10096.-" ~.. 37 .~. T11N-R76E, Secs..5, 6, 7,8 2,469 ~-x;.28338; ~T1/8 ~.~ ~ BP; ~.~~;~k~ '~ ~BP Expkxation 9E - ~' ~ ' `~ ° ' ~ Exploration ~ "`'100°x6 ,~§ ~ ..~`~~" k ~. 38 T11N-R15E Secs:•1 `2,11,12. ~ •2,560 ~ 28320 `~1/8 ~ BP ; ABP Exploration 71 ~'~~. ~ ~a~ ~n ~, ?, ~ ~5r$; s- ~~~kt / ~'~'' , i 3 ~-£.` F tT~3 ~~ ~ :W~: Y ~ ~T 7 V.lY .. .~rk~ ~,{~ .~d. uu~:. ~ ' ... _9 , ' '. Exploration , .. `f , 100q° . 39 T11N-R75E, Secs. 3, 4, 9,.10 2,560 "34631- _ ::1/8 ARCO & _ ARC0-50% 8.610. Exxon Exxon-50°~ 40 T11N-R15E, Secs. 5, 6, 7, 8 2,469 34632 1/8 ARCO & ARCO-50°6 :~. ~_ 7.342 Exxon Exxon~0% ::. . 41 T11N-R14E, Secs. 1, 2,11,12 2,560 28302 1/8 ARCO & ARCO-50% '. -5.418 Exxon Exxon-50°~ 42 T11N-R14E, Secs. 3, 4, 9,10 2,560 ~ 28303 1/8 ARCO & ARC0.509'° 2.249 Exxon Exxon~0% 43 T11N-R14E, Secs. 5, 6, 7, 8 2,469 28304 1/8 ARCO & ARCO~SO°k .538 Exxon Exxon-50% 44 T11N-R13E, Secs. 1, 12, 1,280 28280 1/8 BP BP Exploration- .038 Exploration 100° 59 T11N-R13E, Sec. 13, 640 28285 1/8 BP BP Exploration- .030 Exploration 100% 60 T11N-R74E, Secs. 17, 18, 19, 20 2,480 28305 1/8 BP BP Exploration- .145 Exploration 100% 61 T11N-R14E, Secs. 15, 16, 21, 22 2,560 28306 1/8 ARCO & ARCO50% .919 Exxon Exxon-50°k 62 T11N-R14E, Secs. 13, 14, 23, 24 2,560 28307 1/8 ARCO & ARC050% 3.527 Exxon Exxon-509'° 63 T11N-R15E, Secs. 17, 18,19, 20 2,480 28321 1/8 ARCO & ARCO50% 8.554 Exxon Exxon-50% 64 T11N-R15E, Secs. 15, 16, 21, 22 2,560 28322 1/8 ARCO & ARC0509'° 10.068 Exxon Exxon-50% 65 T11N-R15E, Secs. 13, 14, 23, 24 2,560 28323 1/8 ARCO & ARC0509'° 11.080 Exxon Exxon-50°h EXHIBIT 45-B 1 .. • =Lisburne Provisions,(August '1,1999) - - ~ ADL .'~ Woridng Tract .:. - No of 'Serial -Basic: Lasses ~ Interest ' ~;r~3:Pai~ic'fip~tton~~' 1! Number Description:Acres .Number Royalty Of Record °~ Ownerships ~ . ~ ;,. ~~~ 66 T11N-R76E, Secs. 17, 18,11,840 7~~~,528339. 1/8 BP : _, . 1 `: ., • 4 BP Expl~atiort :158_. - . _ ,y Exploration 10096hi~ ~x 66A T11N-R76E, Sec. 20 640 ~~~~~8339 1/8 BP ;- BP,, location .~~.,~.~ ;~ ~• E , ~ , Exploration :° r : ~.1009~ ~ . .: - .~•_ 67 T11N-R16E, Secs.15,16 ~ - 1,280" `+26340 ' "1/8 BP~.~~; .~, , ,~BP,Exploratio ~ . ;J -:. .°": ' : ..,.,~~X„ n V.~A e > .Exploration ' § ~#10096~.~~ ~ ,~ 67A T11N-R16E, Sec. 21 ~ = 640 ~.~'~`~"28340 -~ :1/8 , BP~~,~~.`~~"'- ~ ;ABP Expiorati Exploration . 4 ` '`10096 " 69 .. T11N-R16E, Secs.30, 31, 32 1,851 ~ 28343 ~ 1/8 i3P~.~~~~ ,~ 8P Exploration- :13' ~2 . •. I+hib 69A T11N-R76E,Sea29 f : 640: ~~~ ~ `1/8 x BP lo~~c BPExploratio:~: 6-. Y '''~` ~'~;-'~ ~ Exploration ~•`-~'~ ~'f,~~0096~. 70 T11N-R75E, Secs. 25, 26, 35, 36 `~ ~ 2;560 28324 ~`~1!$~ ` ~"-~ARCO &` ~~~,,,~ ~ AR+ty ~ ~ ~2~.. ';; t~ ~t ,=r,~ ~*,~ ~ Exxoe ~ s ~-~~ Exzoq,609~: ~. 71 T11 N-R15E, Secs. 27, 28, 33, 34 2,660 25 ~`/8 ~.+..?~. 'M'ARCO & ~,~ r 8~ ~~~~ 72 T11N-R15E, Secs. 29, 30,31, 32 rt,~+2t$91 ~6326~.`/8~ ,.~~..~ARCO.&~¢ ,. ,~ ~ _~ ~ 1994. - '~ ~ r'.~~"yF a~~r ~. `EXXOnv~s~-~*~~e~~'~ a ~~°~EXXOni~ _ ~Ae 73 T11N-R14E, Secs. 25, 26,.35, 36 ~ },2,560 '"28308 'g" /8~ MARCO &~~~~.ARCO~ 246 .~', 'K ~•~`"'~"~_~'~ ^~s~,s'. r,~' Exxon't~,~ ~~'~ ~;~~'i ~xxori6096` ~ r - 74 T11N-R14E, Secs. 27, 28, 34, _ 1,920~~28309 ~ ~i/8 ~ BP~~~`~~~'-.,}~~•Bi?AExP~. o1i- ~~ ~ ~*., ~,~ .: a ~• ;.~.. • ~.,,, ~ ~,~, Explorations '~"'~ '10096 3 1,280 6328 ~1/8 ARCO &-x' ~ ~ `" CO.6096, 6~ 92 "T10N-R15E, Secs. 3, 4, ~ `~~~2. 1 ~.,;~~R:~,., ,, i .: - . c ' ~- ;. r -) r., , k ~. s~~:a~ $x'i~x z~-^F 2'~t .~; r r'EXXOn#"u~s~ } v1u `rEXXOn-60°0- 93: T10N-R15E, Secs. 1, 2 : 1,280 *~•28327 '~1/8 ARCO & " '' ~ARCO.609b x~ _ Exton Exxon-60%~. ~;~''~ tip'" 94 T10N-R16E, Secs. 5, 6, _$ ~~~ x:117 y a ''1,249 `.:28345 1/8 ARCO & - ' ~ aARCO.60% 4~i °. ~ ': _ Exxon ~ ~ Exxon-5096.. -- 95 T10N-R16E, Sec. 4 640 28344 : -:1/8 ARCO & ' ARCOvO% '~ x.025 Exxon Exxon-50% 114 T11N-R16E; Secs. 28, 33 1.280: 28342 1/8 BP ~ BP Exploration- -..568 Exploration 100% 79,999. - 100.00 All tracts are within the Umiat Meridian EXHIBIT 45-B 2 I - - ~~ ,~ ~~ 1 i, ! i i i . .i _;_ _ ~ ~ • - •I' o .: 's ~: I i }~~ • • i • • , , ~ ~ _.• 1 1 • s • - +i1 :t1 ~ •. . .~ ~^a. • _ • -- , i• F e. L I~. f' a' .;. ~. ,~. -:w i. a , x..~_. 1. IS ~ `; •}~ f_r ~ :•%-. s~..M 4rr 1 .•~ .~~ k~~ ti t ~V k'.r.• ... .. ._~~ .I ~~~', - y :. { ~ Hi ~ S w r e dJ C:' 3? c yr mss' ~F t ,~ , `` • .~ w° y ~,'4 y t • • • ~:. •.:.: • •,, r : ~ t •f.` .~. ~•ra ski ~ d~ ~ ~' _ -~. i„, "1 ~ ~ -g'" t ~. - } ..i •f• $~ ~ f wlt rt ic. '~ ~ ~ ~ Y4 f~ ! ~!~ • ~. 1 i • '~.I. s • ~~. r '~. • • ~ • d.:f a~` r ~ ~ ~ S~ ~ s • c ~'~!8i ~ ~ ~a i ~ s .-2..~. ~~~+ ~~`. ~ I ~. • • • ~'af`i -~ • -~(~ a ~~~i :r~e~~ 2'~`'`~.1{'~•.4 _• ~~i-. t. s~Y- ~c .= 7~; 1 ~- __ • • • - - me A ~ _ 1 _ i ~ f i '• ! ~ - .~ •. - . • 1 1 o_~ _ • ._ .. ..... ~.. _ ~ _ i' .F _ I -~ ~ ~ ~. . r- ------~ - -- .,. 1 1 na ~ i _L- i ! - 1 •~ I ~ ! 1 ! ' s 1 -- ...-- 1 - - -- --~ 1 _.._~ ..: . . __--- -' .. ... a. ~--f-- -- - - -- --,_... _ :. ,.K .~ --- M, ~ . ---~-~--- -... __ _ 1 _ .:. J Y_. -- - • ~ i ~ ' ~ Working . . Lessee of Interest Tract ADL No. Unit Tract No. Section Descri tion No. of Acres Record ~ Ownershi Partici ation T12N,.R1SE UM `.. -:. -~* ~~~ . 34625 4 Seca 13 640 BP Exploration `"_I00% _ : '35.65.% .: ~ Sec. 14 640 . BP Exploration = 100% . Sec: 23 640 BP Exploration , ~s l0U%~~ `t '~# ~~3} ~ ` Sec 24 640 x S 5K' BP Explorattori ~ a'~A' ~,r~00°Jo~ _ 3~I .r `'~~~~'~ { , ; ~~~ ~ -~~ : 34630 31 Sec 2S : = - 640 X BP,Explorati~n~ o tt ~ 100~~~ ~ ~9 B ~, Sec 26 : 640 BP Expl on r 100% ~~~ ~- Sec. 36 NFJ4 160 ' • BP.Exploration ';-100% ~- _ ._ . .. ,_ "~ ~`¢ _ -: T12N, RY6E :UM . ~- ,, ~ x~~ ~~- ~~` : ~- ~ ~,~ ; 34635 32 Sec 29 ~: ` : ~... ' _ X640 ~ BP Exploration ~FF100% ~ r ri~ 2 3 Ol°k Sec 30 ~ ~ ~ 588 ~= ~ BP Exploration ' ~ 100% ~' ~`~x , Sec 31 ~N/2 ~ 295.5 BP Exploratton` ~~~'`100%~ ~~' '7` `"£~ Sec 32 N/2 :320 BP Explorat~on~ ~r100°~0 ,, ~ ~-,., ~-~ 34634 33 Sec 28 W/2,NE/4 -~ 600 ~ - ° BP Ez loratxo p ~ ~ r' 100% ~.~ h x ~3 32% . NW/4. SE/4,S/2 SE/4 ~ ~ ~ f~ r~,~ ~ ~t; ~~:~ ~h~f'~ ~ n ; ,,, „, TOTAL NIAKUK PARTIGII'ATING=AREA :-:6443 5::~: ~_.: ;. :r~~~" . ~''' ~ ~~ 4 ':100% ~ . .... : { ~: .~.~ ~. -: ~.. f. t~ w '.... _.; _ i. ` , ~-. ... .. ,• ., , . ... ".:: ... ,.i - ,, ,. .. To: Prudhoe Bay Unit IPA's Working InterestAOwners=%~Owners' Committee ~ -~ ~~ _ ~ ~t Caution: These documents mailed to,youmay contam,informat~on'which is''confidentiat `and/or~:protected bye the Attorney/Client privilege. The information ~s=intended #or .receipt and use solely by the individual or~entity'w~`;t,: ~r.~ named above. If you are not the: intended recipient, ~ any; disclosure, copying or use `of this •nformation is ~ forbidden If_.you have. received this in error, please notify us by telephone immediately `Thank you ~~ ~~~~ ~: -., ... :. -: _ .:. - ;: _ .. -: ... ... r- - : ~- H. I. McGee . , V: W Holt' R. W. Hill . ~_ . .. r ~~- ARCO Alaska,. lnc: BP, Exploration (Alaska) Inc •Texaco Exploration £t Production inc.: . 700.G Street ` 900E Benson B(Yii :41.546 China Grade Loop ,~~~r .~,,~ >= P.O. Box 100360 <` P 0 Box 196612 ;_ -. P 0 . Box 5197X (rp <93388} ~ ~~ ~r Anchorage, AK 99510-0360 x ~AK~9~519 6612 :•. :Bakersfield CA 93308, gY ,Anchoral;e,~ , ._ ~ r (907). 265 1604 , 2• • - .; x(907) ~b4-46~~~~ ~ ~~'(661) 391 4430 .:~~ ~'~~ ~" ~'a (907) 263 `4438/FAX . ~~(9e07j~b~+-;~f00A/FAX, "; ,.x(661).391 5014/F~C, ey~- "er ~~ -C. 13'k sr~ 5 a~#~`t¢` ~ ~" ~ ~'~~' P rat' °- "_, -E s - W..G. Fennel.. ; . ~ r G. E Carlson ~~' `J' F: Branch -~ ~ -{ i- _ r .- Chevron U S A ;Inca- Forcenergy,lnc .. `~F~aon Company, U S.A .~ _~.~~ 1301 McKmne 310 K Street, Suite 700 :3301 ~C Street Y -~~ '~,~ ~s ~~~~ Y, , . Houston; TX 77010 Anchorage,~AK199501 'P 0 Box 196601 ~~ ~.-~~ • _ KxY .. (281) 561 3580.;: , • •; , ,, ~ • ~' ~~ (907,~~258 8600 ~ ~ : , -,~ c ~~~~Arichorage,~A1C~995.1~ ~60i~~~` (281) 561 38801FAX h(907)~~58-860 /FAX ~~~,(907).5643689 ~~'~ stt ~- - • •; .. _ (907) 564-3677/FAX _ ~<,~.< J. P. Holier Mobil Alaska E&tP 1200 Timbertoch Place Woodlands, TX 77380-4999 (281)296-3520 (281) 296-4284/FAX J.-P.'Johnson Phillips Petroleum Company 6330 W. Loop, South Bet Aire, TX 77401-2901 (713) 669-2968 (713) 669-7004/FAX D. W. Bose ARCO Alaska, Inc. 700 G Street P.O. Box 100360 Anchorage, AK 99510-0360 (907) 263-4171 (907) 263-4443/FAX Date: From: Thursday, September 16, 1999 Betsy Pfannstiel Secretary, PBU Owners Committee BP Exploration (Alaska), Inc. 900 East Benson Blvd. (MB 6-2} P.O. Box 196612 Anchorage, AK 99519-6612 (907) 564-4489 (direct tine) (907) 564-4637 (fax) Re: Ballot and Notices for Contraction of the Prudhoe Bay Unit, Niakuk Participating Area and Lisburne Participating Area • i ~ . P, i ., ` ~ * . * * ~ OOh~h~IIQRTION RESULT (PORT (StT.16.1999 , 3 ~ 48PM) * * ~ Tri - FILE MODE OPTION ADDRESS ((~OLN') RESULT ~ ; -pqq 366 hEMORY TX ~ (q) H MC GEE OK P ` 18/18 (q)V HOLT OK . . P 18/18 : (q)R HILL - ~ . . . P 18/18 (q)W FENNEL - ~ . P 18/18: (q)J BRANCH OK . P 18/18 _- (q)J HOLLIER OK . P ` 18118 - tG3)J J01-6VSOfV ` OK . P 18/18 (q)D BOSE - ~q)G N OK . P 18118 - ; ., P. `:18118, _ .. - ~- - J~('- . 1 Pp~~ ~~f~ _ .. C$ 4 )e. .. ... .: - - ~ ~~~ ' r S ~ i:. .A„t. :_ .. ;~^ F * ~, { w: .~~,T ~. F~ ~~ a~ ~ _ ~ REASOrI FOR ERROR ~ - , : - .~ z .,,;~.,_ -. ~.°.~.'.. .. - E-1) I~NG -UP OR'LII`IE FAIL :~E 2) BUST' ~' -~s`~~~~ ??:? ",.. ~~x` E-3) N01ANSi~R ~; _ ,.=i u E-~4) NO Ff~SIMILE OOM~CTION~'~s . ~. ~ . FQXBd~Y~ ~y~Il~'Qt~~~ 4r~ Y aratronn( WorMc~ing Interest Owners 1 Owners' ~omrnittee Caution: These documents mailed to you may contain tnfonnation which is confidential and/or protected by the Attorney/Client prhrilege. The information is intended for receipt and use solely by the individual or entity named above. If you are not the intended recipient, any disdosure, copying or use of this information is forbldden. If you have received this in error, please notify us by telephone immediately, Thank you. H. I. McGee ARCp Alaska, Inc. 70p G Street P.O. Box 100360 Anchorage, AK 99510-036p (907) 265-1604 (907) 263-4438/~'AX V. W. Holt Bp F~cploration (Alaska) Inc. 900 ~. Benson Blvd. R.Q. Box 196612 Anchorage, AK 99519-6612 (907) 564-4634 (907} 5645000/EAX R. W. Hill Texaco Exploration tl` Production Inc. 1546 Ghina Grade Loop P.O. tlwc 5197X (zip 93388} Bakersfield, CA 93308 _ (661}391-4430 (661) 341.5014/FAX W. G. Fennel Chevron U.S.A., Inc. 1301 McKinney Houston, TX 77010 G. B. Carlson Forcenergy inc 310 K Street, Suite 700 Anchoraoa.AK o4~n~ J. F. Branch F~ocon Company, U.S.A. 3301 C Street Ta: Rrudhae day Unit IPA's • . ~ ~ R ~. ,,. , _ P..::1 __.~,. _ v ~ . ~ * COMhA.1NICATItN~I RESULT REPORT t OCT.2L 1999 9.~ 50AM ) . ~• : ~ ~ . _ . TTI FILE MODE (WTION ADDF2ESS (t~t0U1'') RESULT PAGE.. - (q)H M(: GEE. tMf P•' S/5 .' ?74 h1E1"IORIr TX tq)V HOLT tM~ P 5~5 tq)R HILL ~ P ' ~ (q)W FENNEL OK P S/5 LIER . . (q) J HOL 'OK (q)J JOHNSON P 5/S , tq)D :HOSE ~4C - ~- ~ S/5 > P~ ~ ~~'a 0 ~ : ~ ~ ~~ ~ a~ , f ~ - ' - ~ ~ ~ t ~ ~~ 9Cw ' - 1 ~ yf. A'E -'1 f ' - P F~ '~[~ R t \Klhs~ + it _ } f ~ ~ t 4 'Y S .. c: r +. ~ - r ,. t ~ y ~ ~ ~ r ~r ~ ~. ;:;.y '~ . sY ~ ~ ~ {~. ~x y '~ •,s..# ~ rt q~L17d~SY 9_ F. ~-+,t .. J~ -.Y . S'i \ ` _ .r i¢. ay ~ W.. sal : D ~i ~ y { . ~~ ~ ~ ti«.t..i~.}agxe4(a~~\ ~+ZnFSF ~ ' . ?~ •-'y^.F _~ j --~kwY .'.CMYs~~Y~~?ss'tr+'.5 t :'p`i -REASON-FOR ERROR~~~~ sti.::~ ~ ~ ~ ~~~,,,.:.~~`~x ,~,,;~ ~x ,. ~. E 1~ HAI~ UP (~2 LINE FAIL ,~ ~ ~{~ -4) ND ~AaI IL`E .I , p ~ E 3 ' NO ~" Y ~ ,.~,~ ~ ~. ~ .~ . ~ ~~. ~~.~x-x ~ xed:~ ~~fle~ise Lam .8P'E~iq! oCa~i " ~ s a .~ ~,~ r ~ ~ ~ - y ~` ~ =F ,~ r ks , ,w )~ . y~.~l t° -4.. ..t4 r -- ~. .. _?!r fkx.s?jt!K'N'.Sx!ti'~;§!''+`4^a.'F't_Y?f~S'°iS~:Sx*:. "s;' ~ A f ~ ~ - .. To: Prudhoe ~~y Unit IRA's Working interest Owners 1 Owners GQmm~ttee ., Caution: These documents mailed to you may contain information which is confidential and/or protected by the Attorney/Client privilege. The informat~io ~~ ne ~ded Y disclosure ncopyinglolr use of this nformatian is named above. If you are not the inten lease notify us by telephone immediately. Thank you. forbidden. If you have received this in error, p N. 1. McGee ARtO Alaska, Inc. 700 G Street P.O. Box 1003b0 Anchorage, AK 99510-0360 (907) 265-1604 (907) 263-4438/FAX V, W. Holt BP Exploration (Alaska) Inc. 900 E. Benson Blvd. P.O. Box 196612 Anchorage, AK 99519-6612 (407) 564-4634 (907) 564.5000/FAX R. W. Hill Texaco Explofation & Production Inc. 1546 China Grade loop p.p. Bmc 5197X (zip 93388] Bakersfield, CA 93308 - (661) 391.4430 (661) 391.5014/FAX G. E. Carlson J. F. t3ranch W. G. Fennel Exiwn Company, U.S.A. Chevron U,S.A., Inc. Forcenergy lnc 3301 C Street _ _ , _ , .,. ~, n -~ ct~t. Suite 700 _.~._._nw ........_ .._,....-..,,,~ (sod ss~sm u-, ; ~~ -~ ~~~ - ~, ~ ~., ~: v try 3..: October 20; 1999 ~ - ~ ~~ ~ r~' - G .J at 7 :.. '"~- . - ~ 7.~ r~`Cf~,ev.a 2 r ~ ~ti ^#. ,c, ` `r~.'L+r ;t; ti" -~ _ ,7- S : ! }~' x ~ i-z ~ Y . . Y. ' .. f Kai .s K~2-Y. ''ti ~fF. _ M1Y'f,)78".G ,..Y '..-a j ~ ~,~t2 ~ j ,~ ~ ~ '~ + +~. ~. .i'y ~h t ~ t { _• 1zw ~ r -.' ~ ¢d,~ d+, sl '.` _ ~h w` ~ ~ ,~ ? ~r i ~' ~ .. c Y ~f ~ `i .~ ti . i ' ,~ J r ~ `: To: PrudhoezBay Unit VVorkirig Interest Owners ~ y ' _ ~~~~~ r . ~ ~ ~ Representatives and Alternates : ~ rt ~ ti. .,~ 4~ f. .y C r ~. ~. dxti .,fir ~.; r. p I , Y h .. '~ ~C ' -'~ - ~ `~' l ~ :, ,Y ,2. ; i Z ,y f a! a. ~ Re: ~~Ballat Agreement f°r Coontraction of #he~PrudhoerBay~init, ~ {7+'.c'~. 4 ~i(h.. G.~~-,v~Y "9;@''~. 'f ~:~ ~~SL f !c'~W.~"., R~:~V~X'~"`s5. fh"~'y(~t -~' A ~-Y ~ _`~ ~ ~ -:. }., ~ tiG .r t4 L~sbiimek =P~rt~c~patingArea~and P~~ticipating~Area = ~'_ ialtlulC K t~~ ~~-~~~ , ~{.)?r-nxx .fit„.! 1c - 'e?~ 'L6c s~~{~~~Rai1n~AU~91~~'1 PA;Ra11ntA9 AS~.NPA~Rallntc~Q-nm.~~-=~ , J t ~.. j =r~..~~.:~.. .B ~A~ {__ :for .IPA' ~ -_- ~~==a ~P:rcadhoe~Bay'~Un~t,~'N~akuk= ~~~~' pating=Ar`ea~~ This'ballot has been` ~ - .,, - approved by #h~ required-parties. Sincerely, ~'_ /L, _ - ~~ Betsy Pfannstiel Unit Secretary Enclosure ~• . ~ ~ ~ . OAT- ~ 1999 ~12:16P1~ EXXON -:LAW.- PROD... ~:: N0.1.889 P. _..4..18 ~~ __ . - BallotAgreement for Coanaction of the Prudhoe Bay.Uait, Ballot 9 21~ - Nia~cuk Participating Area and Lisburne Participating Area ~~~99=~52 i NI'A~R~Iot~99.007 4, As among the Lisbtuao Owners, this Agreement supersedes Sections 56 02 of the- 5. Iasburne provisions as to this specific matte~c only. The Tract Pattiripa~,on for pact 33 lathe LI'A will remain unchanged, ~ ~ - '" .~... i t %r With respect tQ .Ihe NPA.idus Agre~aent Sectfon 1.g1,01~.~,~f,~he... ~~ . _ ~_ . c 1. }- ~. I 6. Tract 33 in tha NPA will iema3n unchanged. - ; ~ - - ~, and::cl ~..~.~: PBUOA;~ncludm~ thelro~' n~. ,~T, ~ Prov~siops:fj ~ ~ ,~ ~Sxiu'bit ~-1 .: Prudhoe Bx~ubit B-1 NIa~-.~U ;Szht'b~t;45-A ~.Botuida Bzhi'lut~45 B ~ >Tiacts~c ~ n .. ~~ {~7Yact°P s ' Lzhi'blt 9~1 A 'B ~oilada ~ _ ' - Eztnbit 91$ :;Tracts ,~-_~ ~ ~~ 7. i This Agreement =aay be execci ~ be seemed an original, and all ~mmctp'aaons~ r rC zeS of<the ~NPA .. f., rithin`the NPA and Nf teCl 1D one oI:wmote cot of which together sha ~- ~ . ~astrued as one and _ same instrument.. - . 1N WITNESS WHEREOP, `the Parties have executed ttus Agreement, on the date opposite them respective signatures. PRC?D~OI~ BAY IINIT ~VO1tKING YNTERFST Q'~VNLRS ALAST~A, INC. Date: i i i CHLVR0I~T U.S,A INC. i- ~ey: ~ Title: Date: BP EXPLORATION (ALASKl~ XNC. Title; CNS K `~ l~ln~ 1- Date;_ _ __ 9 - 3 -9 9 FORCBNERGY INC. MOBII. ALASKA B & P. L'~TC.••: By• ~ i$~. -.. ~:= .. 1'itle• ~ . :Tide. ""~:,~'.'~` Date. Date: ~ - ~; f t K ~' ~ t 4 . ti ~ F G> .i p. 8y:_~ -3- i _ : ... - A1Z~C0 AIASY~A. -INC. ~~~~ ~-~ ~ • - ; BP 87tPLORATION (ALASKA) INC. ,~ . w N _ ~ ~" C' _.:~ ~,. .~.'~.~~`~~'~ s : e - Title's ~cS :: ~~.~ . ~~ ~~~ f .~ i ~ r~ F ~ ~~' ~t f. ,. - EX~ON RATION k~r-i,.~ 3 .~ o i- ' r y ~< c ~..: ( _ - F y ~. _. $~ f< _ 9 P.Sy l f j l~ _ - ~ f I - ~. - _ sd ~ Y i'.K_YVaI O1\~J ~ ~7~ y W3d~ 4 ~:: ~ - `... ~ - :.; . ; - ~ 5 '~" _ :. `, f^~r i,^~ ~'_ 3 t~iE~'S'fi ~d~.; .cT ~ r L „~ -hr `~, ,t;~k`.., ~ ~~`" - s - - BPEXpLORAT.iON'(ALASI~A)YNC. ._. ~ _ ~ ~~ B ~~ y. , Tidy: : (,(,a:.~ La 1 e../ - i ^ ~ ~ Attachment 3 Duck Island Unit Eider Participating Area Second Plan of Development (6/30/99-6/30/00) Status Of Activities Proposed In Initial POD BP Exploration (Alaska), Inc. ("BPXA°) drilled two wells into the Eider reservoir: 2-56A/EI-01 ("Eider 1") and 2-30A/EI-02 ("Eider 2"). Cumulative production through May 24, 1999 was 0.86 mmstb oil, 5.0 Bscf gas, and 0.03 mmstb water. BPXA currently estimates that the field life will be approximately 10 years, with an expected ultimate recovery with reservoir support of 6.5 mmstbo, or 37% of the original oil in place. The Initial Plan of Development for the Eider field listed several short term development plans. The status of each of these is as follows: • BPXA took regular well tests with the Endicott MPI test separator to monitor oil, gas and water production levels and trends from the Eider 1 and 2 wells. BPXA performed reservoir and PVT analysis to provide rock and fluid properties for reservoir simulation. • BPXA reinterpreted 3D seismic data to include the results of the Eider 1 well. BPXA used the reinterpreted data to: • Refine the structural model and areal footprint of the pool. • Provide the framework for the reservoir simulation model that was built. • Provide the most accurate basis possible for the Eider 2 well. • BPXA performed well design/planning work for the Eider 2 well, which has now been drilled and completed. • BPXA reinterpreted the 3D seismic data a second time following the initial, plugged- back penetration of the Eider 2 well (2-30A/PB-1 ). This data was used to further refine the well plan for Eider 2, and was also incorporated into the reservoir simulator. BPXA performed reservoir simulation to determine the optimum depletion strategy, and assessed the feasibility of water injection or gas injection. BPXA has determined that the optimal depletion strategy is to inject water into the Eider 1 well. Duck tsiand Unit !Eider 2"d POD (6/9!99) PAGE 1 ~ ~ Second Plan of Development BPXA will develop and operate the Eider Participating Area as follows through June 30, 2000. Expansion of this participating area at all depths to encompass the entire reservoir is in progress. • Parties in the affected areas have reached technical agreement on the size of the coinciding expansion/contraction of DIU/EPA/PBU/NPA/LPA. • The Working Interest Owners of the affected areas are being balloted for support. • Subsequently an application will be filed to the DNR for support of the expansion. In addition, another production test period may be requested effective upon obtainment of water support from Endicott. BPXA will continue to produce Eider Unitized Substances through the Endicott Facilities pursuant to the Agreement for Sharing Endicott Area Equipment for Tract Operation. BPXA currently estimates that the Eider field life will be approximately 10 years, with an expected ultimate recovery with reservoir support of 6.5 mmstbo, or 37% of the original oil in place. At this time, further drilling in the Eider Participating Area, such as in-fill or peripheral wells, is not economically viable given the size and location of the remaining reserves. When BPXA determines that a well has no remaining economic potential, the abandonment and sidetracking of the well to an alternative bottom hole location will be considered. During this time, BPXA will continue to monitor production trends of oil, gas, and water for all producing wells. The second Eider well was shut in on May 24, 1999 at the end of the approved test period. BPXA plans to maintain reservoir pressure by converting the Eider 1 well to water injection once the proper Endicott partner has been granted. Negotiations with Endicott owners for make-up water is in progress. Until the approvals are obtained, BPXA will produce from the first Eider well. BPXA will evaluate the economic viability of remedial wellwork on existing wells to maximize production and reserves. BPXA will also periodically examine the economic viability of drilling additional wells from the Endicott MPI. Duck Island Unit /Eider 2"d POD (6/9199) PAGE 2 ~, i,~ :. ,~ Proposed Expanded Eider Participating Area Attachment 4 ~ocanoru l1AAP BEAUFOHT SEA CHUNCUI .'~~~ SEA _ -; RussiaT'Y F fc, ~`~ ` ~ ALASKA ~~ _ f' f / S_, ,~' 1 jr,f '- _ ~~ „~-' aa„ . •~' ` ,~ t ~~, lfl IZ ifi ~\ ti ($ y )9 2ff '.. '21 ~L ~ ~, t m ,~, 12 (13) ~ 3~ 19 26 2'7 2G w ~ 3l) 15,) \ \ ',, ~, :,z ADL' ~ ~, .,, ~~ ,~ ~. _ 034634 ~ ,iN, _ ~ADL03463 ADL312828 \ ~a ~ ~'~ ~, ~ ~. ~ 1 i7 l ~ 1 I xisting Duck Island Unit Boundary r _ o y ~`~) _ ~ _. ~~ ~a y i ~- n ~2 1 ~ ~ ~ R- - : ~ s ~~i i i ' f ~~ ., ~ AQt0~4 6 ADL047 0~ ADL047503 ADL3t2834 Proposed Duck Island Unit ) _ Boundary Expansion ~ ~ ~ _ ~ ~ ~ ~~~ ~' ~~ 14) ~ (3) (tsj Tract Number ~~'~ l ~~ ,s +" ,3 , ,7 ~'8 ~~ s ~~ _ ~4 ~3- ~ ~ ~ ~ /~ t -~i ~ _ - Existing Eider PA ~ ~ ~ "~~ ~ ~ r f' ~~ Pro sed Eider PA Ex ansion ~~ ~ ~ ~~ ~~ ~ ~ l ~ - ~ C~ ~ ~ ~ ~ ~~ ~ p ~~ ~ ,, ; d ~ z~ ~ ~ : I ~ ' ' . ~ r„ , ,, ~ r`' , , ~ ; ~ -l~, ~ ~ 1506 ADL047~Q~ ADL047504 ;, - ~ ~ ~ ~ ~ o ~ ~~ ,, ,~ 1 .5 0 1 2 Miles i ~. 1-_- ~ 1---.. ~_ L ~ .~ i as ~ s: S)_ :u . % , ,. as " .n , ~ 1 as ~ gas ac __ N ~ ... ii i, 1 / I ~i i TUN _. -..-__ mil/ _ __. ~ -. ~. ID .._ ._ _~ _~ _ f/.. / ._ _ _.. ( ' ~ ~ ~ .L___. _...... ..._..... i% ~ '. ~ f i -/ V / orxn carto v~ to .~., ` Attachment 8 EIDER SPECIAL PROVISIONS TO THE DUCK ISLAND UNIT OPERATING AGREEMENT October 5th, 1998 Updated November 2"d, 1999 EIDER PARTICIPATING AREA DUCK ISLAND UNIT STATE OF ALASKA Eider Special Provisions -Page 1 Fnal Version: 10/5/98 Updated: 11/2/99 ~ ~ TABLE OF CONTENTS ARTICLES ARTICLE 38 ARTICLE 39 Definitions Listing of the Exhibits 39.1 Exhibits 39.2 Reference to Exhibits 39.3 Conflict Between the Exhibits and the Text of the Eider Special Provisions ARTICLE 40 Establishment of the Eider Participating Area and Eider Operator 40.1 Establishment of the Eider Participating Area 40.2 Description of the Eider Participating Area 40.3 Authority in Case of Conflict 40.4 Designation of the Eider Operator 40.5 Exclusive Right to Operate 40.6 Rights and Obligations of the Eider Operator ARTICLE 41 Eider Participations 41.1 Eider Area Participations 41.2 Eider Tract Participations 41.3 No Redetermination ARTICLE 42 Voting Provisions for the Eider Participating Area 42.1 Scope 42.2 Voting Interests 42.3 Area Operations 42.4 Claims Settlement 42.5 Withdrawal by an Eider Owner 42.6 Amendments to the Eider Special Provisions 42.7 Surrender of Tract 42.8 Termination of Eider Participating Area 42.9 Expansion of the Eider Participating Area 42.10 Contraction of the Eider Participating Area Eider Special Provisions -Page 2 Final Version: 10/5/98 Updated: 11 /2/99 • ARTICLE 43 Approvals. Budgets. Expenditures. Overhead and Accounting Procedures for the Eider Participating Area 43.1 43.2 43.3 43.4 43.5 General Eider Reservoir Development Objectives . Plan of Development for the Eider Reservoir Budgets Capital Budgets Capital Budget Categories Expense Budgets Budget Format Annual Budgets Budgets Amendments Authorization for Expenditure Eider Operator Expenditure Authority Capital AFE Expense AFE AFE Overrun Limit AFE Revision AFE Content Overhead Fee Accounting Procedures 43.4.1 43.4.2 43.4.3 43.4.4 43.4.5 43.4.6 43.5.1 43.5.2 43.5.3 43.5.4 43.5.5 43.5.6 43.6 43.7 ARTICLE 44 44.1 44.2 ARTICLE 45 Eider Owners Committee Introduction Eider Owners Committee Allocation of Area Substances for the Eider Participating Area 45.1 Allacation of Area- Substances 45.2 Taking Hydrocarbon Liquids in Kind 45.3 Taking Gas in Kind 45.4 Units of Measurement 45.5 Metering of Area Substances 45.6 Point of Taking 45.7 Condition at Taking 45.8 Disposition of Gas 45.9 Estimate of Deliverable Hydrocarbon Liquids Eider Special Provisions -Page 3 Final Version: 10/5198 Updated: 11/2/99 • ARTICLE 38 Definitions 38.1 Definitions. Except as otherwise provided in the Eider Special Provisions, all initially capitalized terms will have the same meaning given to these terms in the Duck Island Unit Operating Agreement. The following terms as used in the Eider Special Provisions, Articles 38 through 45 (hereinafter "Special Provisions'), shall have the following meaning, unless the context clearly requires otherwise: Eider Oil Pool means that oil pool encountered in the Ivishak Formation of the Upper Ellesmerian Sequence, between the depths of 9,000 and 10,500 FT TVDSS and encountered in the BP Exploration (Alaska) Inc. No. 2-56A/EI-01 well. Area Expense means all expenditures, as determined in accordance with Exhibit I, made by Eider Working Interest Owners or the Eider Operator for Area Operations. Area Expense for the Eider Participating Area will include Pre-unitization Costs, Operating and Maintenance Costs. Area Participation of an Eider Working Interest Owner in the Eider Participating Area means the sum of the percentages obtained by multiplying the Working Interest owned by that Eider Working Interest Owner in each Tract or portion of a Tract included within the Eider Participating Area by the Tract Participation of that Tract or portion of a Tract in the Eider Participating Area. The Area Participation of each Eider Owner shall be that set forth in Exhibit 40-B. Area Voting Interest means an Eider Working Interest Owner's percentage of the voting rights in the Eider Participating Area. The Area Voting Interests of the Eider Participating Area shall be equal to the Area Participations set forth in Exhibit 40-B. Authorization for Expenditure or AFE means the written authorization to commit or expend funds. AFE procedures for the Eider Participating Area shall be those described in Section 43.5. Major Gas Sales shall mean the first day of the month following the date of first delivery of Gas by the Eider Owners to a Gas sales pipeline for transportation to a market not on the North Slope of Alaska, pursuant to the Eider Reservoir Development Objectives. Plan of Development for the Eider Reservoir is the plan of the Eider Owners for implementing reservoir management and production plans. The Plan of Development for the Eider Reservoir is provided for in Section 43.3. Eider Owner means a Working Interest Owner that owns a Working Interest in the Eider Participating Area. Eider Owners Committee means the committee of Eider Owners that is constituted pursuant to Section 44.2. Eider Participating Area means the Participating Area established for the Eider Reservoir and is described in Exhibit 41-A. Eider Special Provisions -Page 4 Fnal Version: 10/5/98 Updated: 11/2/99 Eider Reservoir means that reservoir which includes the Eider Oil Pool encountered in the Ivishak Formation of the Upper Ellesmerian Sequence, between the depths of 9,000 and 10,500 FT TVDSS and encountered in the BP Exploration (Alaska) Inc. No. 2-56A/EI-01 well. Eider Development Objectives means the principal objectives of the Eider Owners for the development of the Eider Reservoir, as provided in Exhibit 43-A. Eider Operator Expenditure Authority means the expenditure limitation imposed on the Eider Operator for the Eider Participating Area, as set forth in Subsection 43.5.1. Tract Participation of each Tract in the Eider Participating Area shall be that set forth in Exhibit 40-B. Eider Special Provisions -Page 5 Final Version: 10/5198 Updated: 11/2/99 ARTICLE 39 Listing of the Exhibits ITS ~J 39.1 Exhibits. The following exhibits are attached to these Special Provisions and are incorporated into it by reference: Exhibit 40-A Eider Participating Area Boundary Exhibit 40-B Tract, Area and Voting Interest Participation in the Eider Participating Area Exhibit 41-A Eider Participating Area Description Exhibit 43-A Eider Reservoir Development Objectives Exhibit 43-B Plan of Development for the Eider Reservoir 39.2 Reference to Exhibits. When reference is made in these Special Provisions to an exhibit, it is to the exhibit as originally attached to these Special Provisions or, if the exhibit has been revised, to the latest revision. 39.3 Conflict Between the Exhibits and the Text of the Eider Special Provisions. If a conflict exists between the exhibits listed in Article 39 and the text of the Eider Special Provisions, the text of the Eider Special Provisions shall govern. Eider Special Provisions -Page 6 Final Version: 10/5/98 Updated: 11/2/99 ARTICLE 40 Establishment of the Eider Participating Area and Eider Operator 40.1 Establishment of the Eider Participating Area. Pursuant to Article 11 of the Duck Island -Unit Agreement and Article 12 of the Duck Island Unit Operating Agreement, the Eider Owners hereby establish the Eider Participating Area. All references to Sections, Articles and Exhibits unless otherwise specified, refer to the Duck Island Unit Operating Agreement. 40.2 Description of the Eider Participatinq Area. The boundary of the Eider Participating Area is shown in Exhibit 40-A. A description of the Tracts included in the Eider Participating Area, the ownership thereof, and the Eider Tract Particiaptions are provided in Exhibit 40- B. 40.3 Authority in Case of Conflict. The Eider Special Provisions do not supersede the General Provisions of the Duck Island Unit Operating Agreement. The Eider Special Provisions are subject to the General Provisions of the -Duck Island Unit Operating Agreement, including the provisions of the Duck Island Unit tax partnership; provided, however, that in all matters affecting only the Eider Participation Area, the Eider Special Provisions shall govern the rights and obligations of the Eider Owners where there is any conflict with the General Provisions. In the event of a conflict between the terms of Article 16 of the General Provisions and the Eider Special Provisions, the Eider Owners agree that the terms of Article 16 prevail and govern. 40.4 Designation of the Eider Operator. BP Exploration (Alaska), Inc. is hereby designated by the Eider Owners as the Eider Operator. 40.5 Exclusive Right to Operate. Subject to the Eider Special Provisions, the Eider Operator shall have the exclusive right and shall be obligated to conduct all Eider Operations. 40.6 Rights and Obligations of the Eider Operator. The Eider Operator shall possess all rights and assume all duties of the Unit Operator as specified in the General Provisions of the Duck Island Unit Agreement, to the extent that such provisions are applicable to the Eider Operations. Eider Special Provisions -Page 7 Final Version: 10/5/98 Updated: ti/2/99 ARTICLE 41 Eider Participations 41.1 Eider Area Participations. The Eider Area Participation of each Eider Owner is set forth in Exhibit 40-B. Eider Area Participations shall be retroactive and shall be effective as of the first day of Hydrocarbon Liquids production from the Eider Reservoir. The Eider Owners agree that the first day of Hydrocarbon Liquid production commenced on June1, 1998. 41.2 Eider Tract Participations. The Eider Tract Participation of each Eider Owner as of the Eider Participating Area Effective Date is set forth in Exhibit 40-B. Eider Tract Participations shall be retroactive and shall be effective as of the first day of Hydrocarbon Liquids production from the Eider Reservoir. 41.3 No Redetermination. The Eider Area Participations, and Tract Participations shall remain in effect until the termination of the Eider Participating Area, except in the event of an expansion of the Eider Participating Area, as provided for in Section 42.9. Eider Special Provisions -Page 8 Fnal Version: 10/5/98 Updated: 11/2/99 ARTICLE 42 Voting Provisions for the Eider Participating Area 42.1 Scope. This Article 42 contains provisions governing voting for the Eider Participating Area. 42.2 Voting Interests. Eider Area Voting Interests shall be equal to the Eider Owner's Area Participation as set forth in Exhibit 40-B. 42.3 Area Operations. Area Operations will be conducted on the basis of the voting provisions set out in Article 43. Except where an Area Voting Interest is specifically provided otherwise in these Special Provisions, approval of Area Operations will require an affirmative vote of 75 percent of the Area Voting Interest. 42.4 Claims Settlement. The Eider Operator may settle any single damage claim, penalty claim or suit involving Eider Operations for a settlement expenditure not to exceed $500,000, provided that the payment is in complete settlement of the claim or suit, without further approval of the Eider Owners. Approval of settlements exceeding this authority will require an affirmative vote of 75 percent of the Area Voting Interest. 42.5 Withdrawal by an Eider Owner. In the event an Eider Owner wishes to withdraw, said withdrawal shall be made in accordance with Subsection 13.1, except that, costs and value will be estimated by the Eider Operator and will require an affirmative vote of 75 percent of the Area Voting Interest. - 42.6 Amendments to the Eider Special Provisions. Amendments to the Eider Special Provisions will require an affirmative vote of 75 percent of the Area Voting Interest. 42.7 Surrender of Tract. Surrender of a Tract in the Eider Participating Area, shall be made in accordance with Section 13.2, .except that, the surrender will require an affirmative vote of 75 percent of the Area Voting Interest. 42.8 Termination of Eider Participating Area. Termination of the Eider Participating Area will require an affirmative vote of 75 percent of the Area Voting Interest. 42.9 Expansion of the Eider Participating Area. The Eider Owners may, by approval of 75 percent of the Eider Area Voting Interests; enlarge the Eider Participating Area. Such enlargements shall be on the basis of participation and other terms and conditions determined by the Eider Owners, including provision for the allocation of the Eider Tract Participations to the added area. 42.10 Contraction of the Eider Participating Area. Except as required by law, the Eider Participating Area will not be contracted to exclude those lands included as of the Eider Participating Area Effective Date. Should the Eider Participating Area be required by law to contract, then the Eider Area Participations within the contracted Eider Participating Area shall remain unchanged. Eider Special Provisions -Page 9 Fnal Version: 10/5198 Updated: t 1/2/99 ARTICLE 43 Approvals, Budgets, Expenditures, Overhead Fee and Accounting Procedures for the Eider Participating Area 43.1 General. The planning and approval process for expenditures pursuant to this Article 43 involves four basic elements: (a) review of Eider Reservoir Development Objectives; (b) preparation of a Plan of Development for the Eider Reservoir; (c) preparation and approval of budgets; and (d) AFE approval of items that exceed the Eider Operator Expenditure Authority. 43.2 Eider Reservoir Development Objectives. The Eider Reservoir Development Objectives are set out in Exhibit 43-A and may only be amended by an affirmative vote of 75 percent of the Area Voting Interest. 43.3 Plan of Development for the Eider Reservoir. The original Plan of Development for the Eider Reservoir is outlined in Exhibit 436. The Eider Operator will coordinate proposed revisions to the Plan of Development for the Eider Reservoir, which will be consistent with the approved Eider Reservoir Development Objectives. Recommended plans and alternatives will outline the projects, work programs and production plans designed to implement the Eider Reservoir Development Objectives. The proposed revisions to the Plan of Development for the Eider Reservoir will be presented to the Eider Owners for their consideration, review and approval. If any portion of the Plan of Development for the Eider Reservoir is objected to by an Eider Owner, the Eider Owners Committee will attempt to resolve the objection. The Plan of Development for the Eider Reservoir is set out in Exhibit 43-B and may only be amended by an affirmative vote of 75 percent of the Area Voting Interest. 43.4 Budgets. The budgets prepared by the Eder Operator will be consistent with the portions of the Plan of Development for the Eider Reservoir which received sufficient support to demonstrate that future approval for funding is likely. 43.4.1 Capital Budgets. The Capital Budget is a series of line items which will specify the expenditures to be made in that Budget Year and subsequent years. Each line item, except the capital component of the overhead fee, will be funded through a Capital AFE. Approval of Capital Budgets, on a line item basis, will require a 75 percent affirmative vote of the Area Voting Interest. Approval of line items constitutes approval of scope and timing only, and thus no commitments of funds are authorized for items requiring a Capital AFE under Subsection 43.5.2 until a Capital AFE is approved. Once a Capital AFE or revised Capital AFE is approved, the line item corresponding to the Capital AFE will not require approval of any subsequent Capital Budget. Eider Special Provisions -Page 10 Final Version: 10/5/98 Updated: 11!2199 43.4.2 Capital Budget Categories. The Capital Budget will be categorized as follows: (a) development drilling; (b) capital workovers; (c) capital component of the overhead fee; and (d) other. Expenditures that are generally projected on a historical basis and not specifically identified at the time of budget preparation, will be grouped into a single line item entitled Minor Capital Investments (MCI). MCI may not exceed 20 percent of the total Capital Budget (excluding the capital component of the overhead fee), or the amount identified as MCI in the preceding Capital Budget, indexed with no increment, in accordance with the principles of Exhibit Q, whichever is greater. 43.4.3 Expense Budgets. Expense Budgets will be categorized as follows: (a) Operating and Maintenance Costs; (b) expense workovers; (c) major repairs; - (d) expense component of the overhead fee; (e) ad valorem taxes; and (f) other. Approval of Expense Budgets, on a total basis only, will require a 75 percent affirmative vote of the Area Voting Interest, except that a line item which exceeds $500,000 for legal, reservoir studies, or computer modeling costs will require an affirmative vote of 75 percent of the Area Voting Interest for that line item only. Approval of the Expense Budget constitutes the authority to expend or commit funds up to the approved total Expense Budget amount, except that no commitment of funds is authorized for items requiring an Expense AFE, pursuant to Subsection 43.5.3, until an Expense AFE has been approved. The estimated cost associated with those items requiring Expense AFE approval will be separately identified on the Expense Budget. Eider Special Provisions -Page 11 Final Version: 10/5/98 Updated: 11 /2/99 43.4.4 Budget Format. Beginning with the first budget update immediately following the Eider Participating Area Effective Date, the Eider Operator will provide budgets in a consistent format and in sufficient detail to allow the Eider Owners adequate review and to permit the calculation of each Eider Owner's obligation prior to approval. All items of expenditure must appear in the budgets. The Budget Year estimate will be divided by calendar quarters. Escalation factors, where used, will be clearly stated. 43.4.5 Annual Budgets. The Eider Operator will provide to each Eider Owner a copy of the annual budget. 43.4.6 Budget Amendments. Budget amendments may be proposed at any time by the Eider Operator and will be subject to the same approval requirements as set out in this Section 43.4 43.5 Authorization for Expenditure. After approval of a Capital Budget and Expense Budget, the Eider Operator will prepare and submit corresponding Capital and Expense AFEs for approval as appropriate. Commitment of funds are only authorized, except as provided in Subsection 43.4.3, when AFEs or revised AFEs are approved. All AFE amounts will be shown in current year dollars and will be escalated to reflect "as spent" monies as appropriate. 43.5.1 Eider Operator Expenditure Authority. The Eider Operator is authorized to commit to or expend any single item up to $1,000,000, subject to the limitations set forth in Section 43.5.3. This expenditure limitation is not applicable to ordinary operating and maintenance items such as, but not limited to, operating labor, operating supplies, the Eider Operator's repair and maintenance labor, and other miscellaneous items. If the Eider Operator, subsequent to committing or expending funds under this authority, determines that expenditures will exceed the EiderOperator Expenditure Authority, the Eider Operator will immediately notify the Eider Owners by submitting an AFE in the full amount for their approval. 43.5.2 Capital AFE. A Capital AFE will be issued for any capital expenditure but will require Working Interest Owner approval only when it exceeds the Eider Operator Expenditure Authority. Approval of Capital AFEs will require an affirmative vote of 75 percent of the Area Voting Interest. 43.5.3 Expense AFE. An Expense AFE will be issued for single items involving repair, replacement, legal costs, reservoir studies or computer modeling in excess of $500,000. An affirmative vote of 75% of the Area Voting Interest shall be required for all Expense AFEs that exceed the Eider Operator Expenditure Authority; except for, Expense AFEs involving legal, reservoir studies, or computer modeling costs exceeding $500,000 which will require an affirmative vote of 75 percent of the Area Voting Interest per Section 43.4.3. 43.5.4 AFE Overrun Limit. An approved AFE authorizes the Eider Operator to expend the total approved amount, plus excess expenditures of 20 percent of the total approved AFE amount . Eider Special Provisions -Page 12 Final Version: 10/5/98 Updated: 11 /2/99 # • 43.5.5 AFE Revision. A revised AFE will be submitted for approval when the Eider Operator: (a) reasonably expects to exceed the total authorized amount of the AFE plus the excess expenditure pursuant to Subsection 43.5.4; or (b) makes significant changes to the scope of the work authorized in the AFE. 43.5.6 AFE Content. All AFEs and any revisions will identify the total amount requested, estimates of the quarterly expenditures for the first calendar year and annual expenditures for each subsequent year. The AFE will show total obligations for each Eider Owner and total costs by Cost Category including, but not limited to: (a) engineering design, (b) equipment and materials; (c) fabrication; (d) transportation; (e) installation; (f) Eider Operator's cost, excluding costs covered in the overhead fee;. (9) computer and related costs; and (h) contingency. The contingency in item (h) above will be identified as a single amount, not to exceed 15 percent of the total estimate prior to application of the contingency. In order to achieve the contingency level specified, the Eider Operator, where possible, will not submit an AFE for approval until the basic design parameters and major equipment requirements have been defined. Each AFE will contain sufficient information to enable the Eider Owners to evaluate the benefits and justifications for the expenditure, including, but not limited to: (a) scope; (b) design criteria; (c) cost analysis; and (d) expenditure pattern. Eider Special Provisions -Page 13 Final Version: 10/5/98 Updated: 11/2/99 43.6 Overhead Fee. The purpose of the Eider Overhead Fee is to provide compensation for the Eider Operator's Overhead applicable to Eider Operations for the Eider Participating Area. The fee shall cover any portion of the compensation or salaries, applicable payroll burden, employee benefits and other expenses of management, supervisory, administrative, technical, clerical and other employees incurred by the Eider Operator or Eider in operations serving the Eider Joint Property, which are not otherwise directly chargeable under Exhibit I, Section II, Direct Charges. Professional consultant services and contract services of technical personnel directly engaged on and working for the benefit of the Eider Joint Property are not included in the Overhead Fee. The Eider Operator shall charge the Eider Joint Account for Overhead as follows: Eider Overhead Fee =((Eider Hydrocarbon Liquid Production/ Endicott Hydrocarbon Liquid Production) x Endicott Overhead Fee) Eider Capital Component of the Overhead Fee = (Eider Overhead Fee x (Eider Capital Expenditure/ Eider Total Expenditure)) Eider Expense Component of he Overhead Fee = (Eider Overhead Fee x (Eider Expense Expenditure/ Eider Total Expenditure)) For the purposes of this calculation, the volumes of Hydrocarbon Liquid Production used shall be adjusted for Backout and Quality. The annual Eider Overhead Fee will be based on estimated annual Hydrocarbon Liquid production, estimated annual capital expenditure and estimated annua{ expense expenditure; this estimate will be divided by 12 to estimate a monthly fee. The estimated annual Eider Overhead Fee will be updated quarterly and revised to reflect actual Hydrocarbon Liquid production and actual expenditures for the previous quarter and any change in the future quarter or quarters' estimated values of Hydrocarbon Liquid production ~ and expenditures. The adjustments for under or over estimation of the Eider Overhead Fee will be made in the succeeding quarters. It is the intent of the Eider Owners that the total amount of annual Overhead Fee paid will be based on year end actuals of Hydrocarbon Liquid production and expenditure; a final year end billing adjustment will be made to reflect this intent. The capital and expense allocation of the Overhead Fee may also be revised to reflect tax reporting considerations. 34.7 Accounting Procedures. Eider Operations shall be conducted in accordance with the Accounting Procedures set forth in Exhibit I, with the exception of Section 111, which is replaced in its entirety by Section 43.6. Past and future accounting treatments, interpretations and resolutions agreed to by parties to the Duck Island Unit Operating Agreement, shall be equally binding on Eider Operations. Eider Special Provisions -Page 14 Final Version: 10/5/98 Updated: 11/2/99 • ARTICLE 44 Eider Owners Committee 44.1 Introduction. This Article 44 sets forth the committee structure by which the Eider Owners will exercise supervision and control of Area Operations. In the exercise of that authority, each Eider Owner will act solely on its own behalf in the capacity of an individual owner and not on behalf of the owners as a single entity. The committee of the Eider Owners will be constituted as provided in Section 4.5. The committee will be chaired by representatives of the Eider Operator. Meetings of the Committee shall be governed by the rules set forth in Section 4.6 of the DIUOA, except as otherwise provided in Section 44.2. 44.2 Eider Owners Committee. The Eider Owners will act through an Eider Owners Committee consisting of their designated management representatives. The Eider Owners Committee will function in the same manner as the Unit Owners Committee except that it will exercise supervision and control of the Eider Participating Area. The Eider Owners Committee will be the principal technical forum of the Eider Owners and the focal point for joint planning efforts. The Eider Owners Committee will also coordinate the preparation of the Plan of Development for the Eider Reservoir. The Eider Owners Committee will meet at regular, annual intervals and at special and emergency meetings called in accordance with Sections 4.6.4 and 4.6.5 of the DIUOA.. Eider Special Provisions -Page 15 Fnal Version: 10/5/98 Updated: 11 /2/99 ARTICLE 45 Allocation of Area Substances for the Eider Participating Area 45.1 Allocation of Area Substances. The allocation of Area Substances to Tracts and to Eider Owners will be in proportion to the Tract Participations and Area Participations, respectively. 45.2 Taking Hydrocarbon Liquids in Kind. Except for those Hydrocarbon Liquids used in Area Operations or unavoidably lost, each Eider Owner will take in kind and separately dispose of its allocation of Hydrocarbon Liquids. 45.3 Taking Gas in Kind. Prior to Major Gas Sales, each Eider Owner will have the right, but not the obligation, to take in kind or separately dispose of any of its allocation of Gas, except for that Gas used in Area Operations or unavoidably lost. After Major Gas Sales, each Eider Owner will take in kind or separately dispose of its allocation of Gas, except for that Gas used in Area Operations or unavoidably lost. Gas used in Area Operations or unavoidably lost will be deemed to have been taken in kind by an Eider Owner in proportion to its Area Participation. 45.4 Units of Measurement. All volumes of Hydrocarbon Liquids will be expressed in STB (stock tank barrels) and all volumes of Gas will be expressed MMCF (millions of standard cubic feet). Calculations required by this Article 45 will be expressed in these units in accordance with applicable requirements of the State of Alaska, industry standards and requirements of the American Petroleum Institute. 45.5 Metering of Area Substances. Measurement and allocation of Eider Area Substances will be performed in accordance with the requirements specified in the Agreement For Use Of Endicott Area Equipment For Tract Operations and any amendments thereto. The Eider Owners will be granted access to well tests conducted and access at reasonable times, at their sole risk and expense, to inspect or witness meter calibrations and will be informed in a timely manner of any disruption in the metering of Eider Area Substances. 45.6 Point of Taking. An Eider Owner will be entitled to take all or any portion of its share of Area Substances at the outlet of a separation facility or the point or points of delivery to a major pipeline, except that: (a) any taking of Area Substances will not unreasonably interfere with Area Operations; and (b) all additional costs other than the cc Owners, will be b• point. incurred as a result of taking at a delivery point nmon delivery point established by the Eider me by the Eider Owner taking delivery at that Eider Special Provisions -Page 16 Final Version: 10/5/98 Updated: 11 /2199 • 45.7 Condition at Taking. All Area Substances taken or disposed of by or for an Eider Owner will be delivered by the Eider Operator in its then current condition of quality at the point of its taking or disposition without regard to composition or specific gravity. All handling, treating or other processing of Area Substances beyond the point of taking will be at the sole risk and expense of the Eider Owner taking and disposing of Area Substances. 45.8 Disposition of Gas. The disposition of Gas shall be controlled by the terms of the Agreement For Use Of Endicott Area Equipment For Tract Operations. 45.9 Estimate of Deliverable Hydrocarbon Liquids. Eider Operator, at least 45 days in advance of each calendar quarter, will notify each Eider Owner of its share of, and the total of, the estimated deliverable Hydrocarbon Liquids during each of the next two calendar quarters. The Eider Operator will have the right to revise the estimate of deliverable Hydrocarbon Liquids under the following circumstances: (a) governmental restraint on production rates; (b) inability to sustain the estimate of deliverable Hydrocarbon Liquids; (c) major pipeline restrictions caused by actions of a major pipeline operator; or (d) Force Majeure. If the estimate of deliverable Hydrocarbon Liquids is revised, the Eider Operator will promptly advise each Eider Owner of its share of, and_the total of, the adjusted deliverable Hydrocarbon Liquids. Eider Special Provisions -Page 17 Final Version: 10/5/98 Updated: 11/2199 Exhibit 4o-a '~ EIDER PARTICIPATING AREA r ~ Exhibit 40-B to Eider Special Provisions State of Alaska (revised 8/1/99) Tract, Area and Voting Interest Participations for the Eider Paritcipating Area Tract, Area Tract and Voting Tract Description of Tract Acreage Interest No. ADL. No. within PA within PA Participation 12 034634 T.12N., R16E, U.M. 680.00 100.00 Section 27: All Section 28: NEB/aSE~/a 680.00 100.00 Exhibit 41-A to Eider Special Provisions State of Alaska Eider Participating Area Description This Exhibit 41-A will govern and apply only to the Eider Participating Area. Notwithstanding Article 11 of the Unit Agreement, the Eider Participating Area will not be modified and its Tract Participations and Tract Acreage Participations, as set out in Exhibit 40-B, will remain in effect until the termination of the Eider Participating Area and will not be subject to redetermination, except in the event of an expansion of the Eider Participating Area, as provided in Section 42.10. Tract Participations will be the basis upon which all Area Substances from the Eider Participating Area and all Area Costs are allocated to Tracts. Eider Special Provisions -Page 21 Final Version: 10/5/98 Updated: 11 /2/99 Exhibit 43-A to Eider Special Provisions State of Alaska Eider Reservoir Development Objectives The Eider Reservoir Development Objectives are the long-term objectives of the Eider Owners for Hydrocarbon Liquids and Gas production to the extent achievable through the use of development wells and the shared Endicott Facilities. These objectives, as of the Eider Participating Area Effective Date, are described below: (a) Achieve and sustain an optimum Hydrocarbon Liquids production rate, up to the limits imposed by the production facilities and wells as described in the Plan of Development for the Eider Reservoir. (b) Inject seawater and/or produced water, if necessary, to improve recovery of Hydrocarbon Liquids. (c) Produced Gas will be used by the Eider Owners to meet their obligation to supply fuel gas for Endicott Area Operations and/or to inject processed Gas from the Eider Participating Area Operation into the Endicott Reservoir, or to reinject into the Eider Reservoir. (d) Permit Hydrocarbon Liquids production from high water-cut wells by utilizing artificial lift. (e) Explore the feasibility of enhancing the economic recovery of Hydrocarbon Liquids and Gas through effective reservoir management of primary and secondary processes. Eider Special Provisions -Page 22 Final Version: 10/5/98 Updated: 11 /2/99 • Exhibit 43-B to Eider Special Provisions State of Alaska • Plan of Development for the Eider Field The Eider Field will be developed and operated in accordance with the following Plan of Development. Plans for Eider Development include the continuance of production of Eider Unitized Substances through the Endicott Facilities pursuant to the Agreement for Sharing Endicott Area Equipment for Tract Operation. Following DNR approval dated March 9th 1998, well 2-56A/EI-01 was drilled to the Eider Field and started pilot production through the Endicott Facilities June 1St 1998. In the near term, the development plans for the Eider field include the following: • Monitoring production trends of oil, gas, and water for all producing wells. The second Eider well was shut in on May 24, 1999 at the end of the approved test period. • Plans to maintain reservoir pressure by converting the Eider 1 well to water injection once the proper Endicott partner has been granted. Negotiations with Endicott owners for make- upwater is in progress • Evaluating the economic viability of remedial wellwork on existing wells to maximize production and reserves. - • Periodically examining the economic viability of drilling additional wells from the Endicott MPI. Currently estimates are that Eider field life will be approximately 10 years, with an expected ultimate recovery with reservoir support of 6.5 mmstbo, or 37% of the original oil in place. Eider Special Provisions -Page 23 Final Version: 10/5/98 Updated: 11 /2/99 I. i ., ~, w-f~ • EIDER SPECIAL PROVISIONS TO THE DUCK ISLAND UNIT OPERATING AGREEMENT WORKING INTEREST OWNER BP EXPLO`RATIOgN (ALASKA), INC. Date: _ ~ 1 ~~ ~ 1 B P By: (printed name) ~l~ ~ ~, ~'~~ ~C~ra G ~1~1,~ S .~cc (title) State of Alaska ) Address: BP Exploration (Alaska), Inc. ss (company) 900 E. Benson Third Judicial District ) (street) Anchorage, AK 99519 (city, state, zip code) This is to certify that on this «~_ day of ~ 1 g undersigned a Notary Public in and for the State of Alaska ~'' before me, the ~ p~ ~~- personally appeared t me kn~wn aid Know o to be the person who signed the Eider Special Provisions as of BP Exploration (Alaska) Inc and acknowledg{ d before me ~ /~ ~ DNS same on the behalf of said corporation. tat he/she/they executed the IN WITNESS WHEREOF, I have hereto set my hand and affixed my official seal the day and year in this certificate first above written. (SEAL) Eider Special Provisions -Page 23 Final Version: 10/5/98 ,~ -~~~ n~~~J _ ~ ~ y -o_. ~ G = °` 6~UQ ~~O ~Q' ~.. 9TF O F P~,QG' / ~ j; (signature) Notary Public in and for said County and State (name) • ~ Exhibit 40-B to Eider Special Provisions State of Alaska (revised 8/1 /99) Tract, Area and Voting Interest Participations for the Eider Paritcipating Area Attachment 9 Tract, Area Tract and Voting Tract Description of Tract Acreage Interest No. ADL. No. within PA within PA Participation 12 034634 T.12N., R16E, U.M. 680.00 100.00 Section 27: All Section 28: NEB/aSE~/a 680.00 100.00 BP EXPLORATION November 2, 1999 Mr. Ken Boyd, Director Division of Oil and Gas Alaska Department of Natural Resources 550 W. 7~ Ave., Ste. 800 Anchorage, AK 99501 Re: Duck Island Unit Attachment 10 BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (90~ 561-5111 Expansion of Eider Participating Area Letter of Non-objection from ADL 034634 (PBU Tract 33, DIU Tract 12) Dear Mr. Boyd: Please receive this letter as confirmation that BPXA as Operator and 100% Owner of ADL 034634 has no objection to the expansion of the Eider Participating Area,and Duck Island Unit as proposed in the concurrently filed application for expansion of Duck Island Unit. A portion of ADL 034634 lies within Prudhoe Bay Unit Tract 33, and a portion lies within Duck Island Unit Tract 12. If you have any questions or require additional information, please contact Mr. Steve Fell at (907) 564-4036. Any correspondence should be sent to the following: E. Peter Zseleczky Land Manager BP Exploration (Alaska) Inc. P.O. Box 196612 Anchorage, Alaska 99519-6612 Sincerely, Ken J. onrad Eastern North Slope Business Unit Leader ~ r Appendix B ~C11/~? FEB 0 4 2000 Masks Oi! B~Gas Cons. ion ~ ~;+ `~ ~~" ' ~ ~ ~~: ~TONY KNOWLES, GOVERNOR ~ ~ ~,.. . _ ..tom:` r~,'}"i{.-:~ 8<'~ w.. .. DEPARTMENT OF NATURAL RESOURCES 55o wESrT"AVENUE sulresoo ANCHORAGE, ALASKA 99501-3510 DIVISION OF OIL AND GAS ~ PHONE: (so7) 269-seoo FAX: (907) 269-8938 December 1, 1999 RECEIVED ~~ i sk~-~Crz~D~c~~ Pete Zseleczky, Land Manager BP Exploration (Alaska), Inc. P.O. Box 196612 Anchorage, AK 99519-6612 RE: Duck Island Unit, Eider Participating Area Second Plan of Development (Amended) Dear Mr. Zseleczky: (/NIT ~(a2~m~rVT On November 18, 1999, BP Exploration (Alaska), Inc. (BP), Duck Island Unit Operator, requested an amendment to the Second Plan of Development (2nd POD) for the Eider Participating Area (Eider PA) which the Division of Oil and Gas (DO&G) approved on June 10, 1999. Under the 2nd POD, BP planned to "continue to produce Eider Unitized Substances through the Endicott Facilities pursuant to the Agreement for Sharing Endicott Area Equipment for Tract Operation." However, BP shut-in the Eider 1 well on September 30, 1999, thereby suspending production from the Eider PA. BP is negotiating with the Endicott Participating Area owners to obtain water for injection into the Eider PA. Under the Amended Second Plan of Development (Amended 2nd POD) Production from the Eider PA will remain shut-in until BP converts the Eider 1 well to an injector, obtains water for injection, and resumes production from the Eider 2 well. DNR considered the criteria in 11 AAC 83.303 and finds that the Amended 2nd POD, submitted on November 18, 1999, protects the public interest. The Amended 2nd POD is approved for the period June 1, 1999 through June 30, 2000. Under 11 AAC 83.343, the Third Plan of Development for the Eider PA is due on April 3, 2000, 90 days before the Amended 2nd POD expires. Sincerely, ~~~~~~ FE6 0 4 2000 Kenneth A. Boyd Director ~$ ~~ ~ ~~ Cons. (~mmi~on cc: Gary M. Osborne, ENS Subsurface Manager Bonnie Robson, Dept. of Law Eider2ndPODAmended.doc DEC ~-~9 EPZ -LAND DEPT. T. ,$va~0 "Develop, Conserve, and Enhance Natural Resources for Present and Future Alaskans." BP EXPLORATION November 16, 1999 Mr. Ken Boyd, Director Division of Oil and Gas Department of Natural Resources 550 W. 5th Avenue, Suite 800 Anchorage, Alaska 99501 Re: Duck Island Unit Eider Participating Area Second Plan of Development (Amended) Dear Mr. Boyd, BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 As recently discussed with your staff, the Eider 1 well was shut in on September 30, 1999 in order to avoid damaging the Eider reservoir. BPXA intends to resume production from Eider 2 after obtaining water for injection into Eider 1. The sale of the water is subject to the approval of the Endicott Owners. We anticipate having such approval early in 2000. Enclosed please find the Second Plan of Development (POD) for Eider (as Amended on 11/16/99), which we request be approved through June 30, 2000. The Second POD, as amended, provides for the Eider 1 well to be shut in until water is available and the well can be converted to an injector. If water can be obtained before the Eider Participating Area is expanded to encompass the Eider 2 well, BPXA will request that DNR approve test production from Eider 2. If you have any questions, please feel free to contact me at 564-5361 or Steve Fell at 564-4036. Sincerely, I ~ ,,,~ ... ..~- %~ ~ ~~ ~_ Gary M. Osborne ENS Subsurface Manager cc: William Van Dyke, DNR Attachment w • Duck Island Unit Eider Participating Area Second Plan of Development (6/30/99-6/30/00) (as Amended on 11/16/99) Status Of Activities Proposed In Initial POD BP Exploration (Alaska), Inca ("BPXA") drilled two wells into the Eider reservoir: 2-56A/EI-01 ("Eider 1 ") and 2-30A/EI-02 ("Eider 2"). Cumulative production through May 24, 1999 was 0.86 mmstb oil, 5.0 Bscf gas, and 0.03 mmstb water. BPXA currently estimates that the field life will be approximately 10 years, with an expected ultimate recovery of 6.5 mmstbo, or 37% of the original oil in place. The Initial Plan of Development for the Eider field listed several short term development plans. The status of each of these is as follows: BPXA took regular well tests with the Endicott MPI test separator to monitor oil, gas and water production levels and trends from the Eider 1 and 2 wells. • BPXA performed reservoir and PVT analysis to provide rock and fluid properties for reservoir simulation. • BPXA reinterpreted 3D seismic data to include the results of the Eider 1 well. BPXA used the reinterpreted data to: • Refine the structural model and areal footprint of the pool. • Provide the framework for the reservoir simulation model that was built. • Provide the most accurate basis possible for the Eider 2 well. -~ • BPXA performed well design/planning work for the Eider 2 well, which has now been drilled and completed. • BPXA reinterpreted the 3D seismic data a second time following the initial, plugged- back penetration of the Eider 2 well (2-30A/PB-1 ). This data was used to further refine the well plan for Eider 2, and was also incorporated into the reservoir simulator. BPXA performed reservoir simulation to determine the optimum depletion strategy, and assessed the feasibility of water injection or gas injection. BPXA has determined that the optimal depletion strategy is to inject water into the Eider 1 well. Duck Island Unit /Eider 2"d POD (Amended 11/16/99) PAGE 1 ~ ~ Second Plan of Development BPXA will develop and operate the Eider Participating Area as follows through June 30, 2000. Expansion of Eider Participating Area Expansion of the Eider Participating Area at all depths to encompass the entire reservoir is in progress. The Working Interest Owners in the affected areas have reached technical agreement on the size of the concurrent expansion of the Duck Island Unit and the Eider Participating Area, and the contraction of the Prudhoe Bay Unit, Niakuk Participating Area and Lisburne Participating Area. The Working Interest Owners of the affected areas have executed ballot agreements in support of the concurrent expansion and contraction, and BPXA filed the expansion and contraction applications with DNR on November 3, 1999. Infection The Eider 2 well was shut in on May 24, 1999 at the end of the approved test period, and the Eider 1 well was shut in on September 30, 1999 in order to avoid damage to the reservoir. BPXA plans to maintain reservoir pressure by converting the Eider 1 well to water injection once the proper Endicott partner approval has been granted, and thereafter producing from Eider 2. BPXA continues to negotiate with the Endicott owners to obtain water for injection, and has undertaken technical work to assure the Endicott owners that the provision of water to Eider will not be detrimental to Endicott. The technical work is underway and anticipated to be completed in early 2000. BPXA anticipates reaching a commercial agreement with the Endicott Owners shortly thereafter. Once water is available for injection at a commercially reasonable price, BPXA will resume production of Eider Unitized Substances through the Endicott Facilities pursuant to the Agreement for Sharing Endicott Area Equipment for Tract Operation. BPXA will continue to monitor production trends of oil, gas, and water for all producing wells. If water support is obtained from Endicott prior to approval of the expansion of the Duck Island Unit and the Eider Participating Area, BPXA will request that the Department of Natural Resources approve test production from the Eider 2 in order to resume production. Duck Island Unit /Eider 2"d POD (Amended 11/16/99) PAGE 2 . '~ - ~ • Dri_ Iling At this time, further drilling in the Eider Participating Area, such as in-fill or peripheral wells, is not economically viable given the size and location of the remaining reserves. When BPXA determines that a well has no remaining economic potential, the abandonment and sidetracking of the well to an alternative bottom hole location will be considered. BPXA will evaluate the economic viability of remedial wellwork on existing wells to maximize production and reserves. BPXA will also periodically examine the economic viability of drilling additional wells from the Endicott MPI. Duck Island Unit /Eider 2nd POD (Amended 11/16/99) PAGE 3 / 1 + ~ • Attachment 3 Duck Island Unit Eider Participating Area Second Plan of Development (6/30/99-6/30/00) Status Of Activities Proposed In Initial POD BP Exploration (Alaska), Inc. ("BPXA") drilled two wells into the Eider reservoir: 2-56A/EI-01 ("Eider 1 ") and 2-30A/EI-02 ("Eider 2"). Cumulative production through May 24, 1999 was 0.86 mmstb oil, 5.0 Bscf gas, and 0.03 mmstb water. BPXA currently estimates that the field life will be approximately 10 years, with an expected ultimate recovery with reservoir support of 6.5 mmstbo, or 37% of the original oil in place. The initial Plan of Development for the Eider field listed several short term development plans. The status of each of these is as follows: • BPXA took regular well tests with the Endicott MPI test separator to monitor oil, gas and water production levels and trends from the Eider 1 and 2 wells. • BPXA performed reservoir and PVT analysis to provide rock and fluid properties for reservoir simulation. • BPXA reinterpreted 3D seismic data to include the results of the Eider 1 well. BPXA used the reinterpreted data to: • Refine the structural model and areal footprint of the pool. • Provide the framework for the reservoir simulation model that was built. • Provide the most accurate basis possible for the Eider 2 well. • BPXA performed well design/planning work for the Eider 2 well, which has now been drilled and completed. • BPXA reinterpreted the 3D seismic data a second time following the initial, plugged- back penetration of the Eider 2 well (2-30A/PB-1). This data was used to further refine the well plan for Eider 2, and was also incorporated into the reservoir simulator. BPXA performed reservoir simulation to determine the optimum depletion strategy, and assessed the feasibility of water injection or gas injection. BPXA has determined that the optimal depletion strategy is to inject water into the Eider 1 well. Duck Island Unit J Eider 2nd POD (6/9/99) PAGE 1 • Second Plan of Development BPXA will develop and operate the Eider Participating Area as follows through June 30, 2000. Expansion of this participating area at all depths to encompass the entire reservoir is in progress. • Parties in the affected areas have reached technical agreement on the size of the coinciding expansion/contraction of DIU/EPA/PBU/NPA/LPA. • The Working Interest Owners of the affected areas are being balloted for support. • Subsequently an application will be filed to the DNR for support of the expansion. In addition, another production test period may be requested effective upon obtainment of water support from Endicott. BPXA will continue to produce Eider Unitized Substances through the Endicott Facilities pursuant to the Agreement for Sharing Endicott Area Equipment for Tract Operation. BPXA currently estimates that the Eider field life will be approximately 10 years, with an expected ultimate recovery with reservoir support of 6.5 mmstbo, or 37% of the original oil in place. At this time, further drilling in the Eider Participating Area, such as in-fill or peripheral wells, is not economically viable given the size and location of the remaining reserves. When BPXA determines that a well has no remaining economic potential, the abandonment and sidetracking of the well to an alternative bottom hole location will be considered. During this time, BPXA will continue to monitor production trends of oil, gas, and water for all producing wells. The second Eider well was shut in on May 24, 1999 at the end of the approved test period. BPXA plans to maintain reservoir pressure by converting the Eider 1 well to water injection once the proper Endicott partner has been granted. Negotiations with Endicott owners for make-up water is in progress. Until the approvals are obtained, BPXA will produce from the first Eider well. BPXA will evalua#e the economic viability of remedial wellwork on existing wells to maximize production and reserves. BPXA wil{ also periodically examine the economic viability of drilling additional wells from the Endicott MPI. Duck Island Unit /Eider 2"d POD (6/9/99) PAGE 2 1'~posed Expanded Ei~r Participating Area ~ ! Attachment 4 LOCATION MAP BEAUFOR7 SEA p CHUKCHI ~~ SEA 1 Russia ~-~ ALASKA 0 ,~ ~~ r ~,N m~~N ~ ~ Q ' ' m m . . f8 is BPXA Cartograptry(11-2-9911m141 BP EXPLORATION January 28, 2000 Jack Hartz Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, AK 99501-3192 Re: Eider Pool Rules and Area Injection Order Applications Dear Jack, As discussed, please find enclosed draft copies of the Eider Pool Rules and Area Injection Order applications. I appreciate your willingness to review these informally. The documents have been signed by Gary Osborne, so if you decide that they do meet your criteria, please consider accepting them as an official application at that time. If this is not acceptable or you would like changes made we will be glad to resubmit an official application at that time. If you have any questions, please feel free to contact me at 564-5594 or Steve Fell at 564- 4036. Sincerely, .~_ 2 Eric R. Ding ENS Reservoir Engineer Attachment RE~~1V ED ~~~ 2 ~ X00 Afasl~a Oil & pn~l~orageC~mmission