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Home My WebLink AboutCO 443 A . . INDEX CONSERVATION ORDER 443A COLVILLE RIVER FIELD 1.) July 22, 2004 2.) July 30, 2004 3.) August 4, 2004 4.) ----------------- 5.) August 11,2005 6.) February 8, 2006 7.) May 16,2006 8.) September 1,2006 9.) December 4, 2006 10.) February 8, 2007 11.) -------------------- ConocoPhillips application for Expansion of CO 443 and AIO 18A Notice of Hearing, Affidavit of publication, e-mail Distribution list, bulk mailing News Bulletin Petroleum News Various e-mails ConocoPhillips request for errata e-mail re: termination of the requirement for the weekly SCP report CPA's request for Temporary Removal of Injection Valves (CO 443A.00l) E-mail re: temporary removal pf injection valves from CRU CD2-55, CD2-56, CD2-60 ConocoPhillips request for a waiver to allow temporary elimination of required monthly testing (CO 453A.002) CPA letter re: Gas Allowables (CO 443A.003, CO 562.001, CO 563.001 & CO 569.001) AOGCC Background Information provided by Dave Roby CO 443A and Erratum ) ) STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF cONO- COPHILLIPS ALASKA, INC. for an order to expand the affected area of Alpine Oil Pool, Colville River Unit, North Slope, Alaska ) Conservation Order No. 443A ) Colville River Unit ) Alpine Field ) Alpine Oil Pool ) ) October 7, 2004 IT APPEARING THAT: 1. By application dated July 22, 2004, and received by the Alaska Oil and Gas Conser- vation Commission ("Commission") on July 22, 2004, ConocoPhillips Alaska, Inc. ("CP AI") in its capacity as Unit Operator of the Colville River Unit ("CRU") re- quested an order from the Commission to expand the affected area established in Conservation Order 443 that governs the development and operation of the Alpine Oil Pool. Concurrently, CP AI requested an expansion of the affected area established in Area Injection Order 18A, which governs injection operations to enhance recovery from this pool and disposal of wastes. 2. CP AI provided supplemental information at the Commission's request on September 1, 2004. 3. Notice of a public hearing was published in the Anchorage Daily News on July 30, 2004. 4. The Commission received no comments or requests for public hearing. 5. Because CP AI provided sufficient information on which to make an informed deci- sion, the Commission determined that it would issue an order without a hearing. FINDINGS: 1. Development of the Alpine Oil Pool a. Operator: CP AI is the Operator of the Alpine Oil Pool ("AOP") in the Colville River Unit. b. Unit Owners and Landowners: As proposed to be expanded, the affected area for the AOP pool rules is totally encompassed within the third expansion of the Col- ville River Unit ("CRU"), which expansion was approved by the Alaska Depart- ment of Natural Resources on April 22, 2004. This unit includes State of Alaska lands, ASRC lands and land jointly owned by State of Alaska and ASRC. The Conservation Order 443A ) October 7, 2004 ) Page 2 unit lies along the eastern boundary of the National Petroleum Reserve-Alaska on Alaska's North Slope. Working interest owners of the CRU are CPAI, Phillips Al- pine Alaska, LLC, and Anadarko Petroleum Corporation. BLM tract AA 084140 lies within the external boundaries of the CRU, but is not part of the CRU or the area covered or proposed to be covered by the AOP pool rules. The CRU work- ing interest owners have agreed to integrate their respective interests to provide for the unitized management, development and operation of the AOP under the Colville River Unit Agreement. c. Delineation History: Oil was discovered in the AOP in 1994 with the Bergschrund No. 1 exploratory oil well. Currently, over 100 exploration, devel- opment and service wells have penetrated the Alpine Sandstone of the Kingak Formation ("Alpine Sandstone") in the AOP. CPAI utilized data from these wells in conjunction with a 3-D seismic survey to estimate the extent of the oil accumu- lation. Recent drilling in the northwest portion of the AOP indicated thicker sand than original interpreted. Evaluation of the data indicated an opportunity to in- crease developed OOIP with up to six new wells. d. Pool Identification: The AOP was defined in Conservation Order No. 443 ("CO 443") as the accumulation of hydrocarbons common to, and correlating with, the interval between the measured depths ("MD") of 6,876 feet and 6,976 feet in the Bergschrund No. 1 well. The AOP is contained within the Alpine Sandstone, and the currently known productive limits of the AOP lie entirely within the expanded CRU. e. Stratigraphy: The Alpine Sandstone is a Late Jurassic-aged, informal member of the Kingak Formation. It is stratigraphically the highest sandstone unit within the Kingak Formation in the Colville River Delta area. The Alpine Sandstone is an Ellesmerian, shallow marine sand deposited on a southerly prograding shelf, elongated in an east-west direction. The interval consists of very fine to fine- grained, moderately to well sorted, quartz-rich sandstone with variable glauconite and clay content. Gross thickness of the combined Alpine Sandstone layers varies across the AOP, generally ranging from more than 100 feet near the center of the pool to 0 feet near its periphery. Within the proposed addition to the affected area, gross reser- voir sand thickness is estimated between 30 feet and 0 feet. f. Structure: The general structure at the top of the Alpine Sandstone in the AOP is a homo cline that dips to the southwest at a rate of approximately 100 feet per mile. This homocline is broken by several minor, northwest trending, down-to- the-west, normal faults that average less than 30 feet in vertical displacement. g. Trapping Mechanism: The AOP appears stratigraphically trapped by pinch-out of the Alpine Sandstone into time equivalent shales of the Kingak Formation. h. Reservoir Compartments: None of the structural discontinuities currently identi- fied in the AOP appear to have caused any compartmentalization of the reservoir. Given the observed, extensive pressure continuity within the AOP, the reservoir Conservation Order 443A ) October 7, 2004 ) Page 3 within the proposed addition to the affected area is expected to be in pressure communication with the developed portions of the pool. 2. Rock and Fluid Properties a. Porosity/Penneability: In the current pool area, porosity of the Alpine Sandstone ranges 15% to 23%, and averages 19%; penneability ranges from 1 to 160 milli- darcies, and averages 15 millidarcies. In the additional area proposed to be cov- ered by the AOP pool rules, porosity is estimated between 17% and 21 %, and penneability is estimated to range from less than 10 millidarcies to nearly 60 mil- lidarcies. . b. Initial Reservoir Pressure and Temperature: Initial reservoir pressure of the AOP was 3215 psia at 7000 feet true vertical depth subsea ("TVDss"). Current average reservoir pressure is approximately 3020 psia at 7000' TVDss. Average reservoir temperature is 160° F. c. Fluid PVT Data: Fluid samples indicate the AOP reservoir is undersaturated, with a bubble point pressure of 2454 psia. Solution GOR is 850 SCF/STB. Oil gravity and viscosity at reservoir conditions are 40° API and 0.46 centipoise, respec- tively. 3. Pool Limits No oil-water or gas-oil contacts have been observed to date in the AOP. Ongoing op- erations will provide additional infonnation about the productive limits of the AOP. 4. H vdrocarbons in Place Current estimated original oil in place ("OOIP") within the AOP is 650 to 750 MMSTB million stock tank barrels, of which an estimated 31 to 55 MMSTB are within the proposed addition to the affected area. 5. Development Plans Reservoir models have been used to evaluate primary depletion, waterflood, and other enhanced recovery options for development of the AOP. Reservoir predictions are based on fine scale, three-dimensional, compositional models. Surveillance com- bined with model studies perfonned to date show about 10 to 15% recovery of OOIP under primary production and an additional 45 to 50% under miscible water alternat- ing gas ("MW AG") injection. The development of the pool will continue using horizontal wells arranged in a line- drive pattern. Spacing between wells will vary based on drilling and modeled recov- ery efficiency, but distance between well bores open to the AOP will exceed 500 feet. 6. Facilities Development and service wells in the proposed addition to the affected area will be drilled from the existing CD2- Pad. This pad is designed to accommodate 60 wells on 10- foot centers. No additional gravel construction is anticipated. Production will be processed at the Alpine CD I-Pad facility to maximize use of exist- ing infrastructure, minimize environmental impacts, reduce costs, and maximize re- Conservation Order 443A ) October 7,2004 ) Page 4 covery. Existing low-pressure oil, water injection, gas lift and possibly miscible in- jectant lines will be shared. Existing power facilities will accommodate additional wells needed to develop the proposed addition to the affected area. Several phases of upgrades to the Alpine processing facilities are in various stages of planning and implementation. These upgrades will improve throughput capacity and reduce water and gas handling bottlenecks at Alpine. 7. Drillin2 AOP drilling will continue to utilize drilling procedures, well designs, and casing and cementing programs that confonn to Commission regulations and to the following drilling and completion practices established in Rule 4 of Conservation Order 443. 8. Well Completion Desi2n Horizontal wells and horizontal multi-Iateral well bores may be drilled within the proposed addition to the affected area. The horizontal well sections may be com- pleted with perforated casing, slotted liner, open-hole section, or a combination. Frac- ture stimulation may be necessary to maximize well productivity and injectivity. a. Surface Safety Valves: Fail-safe automatic surface safety valves ("SSV") are included in the wellhead equipment for all wells. b. Subsurface Safety Devices: All wells capable of unassisted flow are equipped with a surface-controlled subsurface safety valve ("SSSV"). c. Producers: Gas lift remains the preferred mechanism for artificiallift for AOP producers. d. Injectors: Injection wells are equipped with a double check valve arrangement or a single check and surface safety valve. The subsurface safety valve is also installed on every gas injection well. e. Stimulation Methods: Lower quality reservoir rock is possible within the pro- posed addition to the affected area. CP AI may evaluate the use of propped hydraulic fracturing stimulation techniques. 9. Reservoir Surveillance Plans Monitoring of reservoir perfonnance and reporting on a regular basis will help en- sure proper management of the AOP. a. Well Testing: All wells are tested at least twice per month. CP AI optimizes stabilization and test duration of each test to ensure representative tests. CP AI records well and field-operating conditions to maintain accurate field produc- tion history records. Separator meters and gas system meters have been in- stalled and maintained in confonnance with the API Manual of Petroleum Measurement Standards. CP AI maintains records to allow verification of ap- proved production allocation methodologies. b. Reservoir Pressure Measurements: Initial pressure surveys have been taken in each injection well, and a minimum of six bottom-hole pressure surveys has Conservation Order 443A ) October 7,2004 ) Page 5 been measured annually. These pressure surveys of the AOP have been con- ducted using the following techniques: stabilized static pressure measurements at bottom-hole; stabilized static pressure measurements extrapolated from sur- face, pressure fall-off, pressure buildup, multi-rate tests, drill stem tests, and open-hole fonnation tests. Pressure survey results have been corrected to a da- tum of 7000 feet TVD subsea, and have been reported to the Commission an- nually. c. Reservoir Surveillance Reporting: Infonnation from the proposed addition to the affected area will be integrated into the annual surveillance report for the AOP. These annual reports consist of project progress and reservoir manage- ment summaries including: engineering and geotechnical parameters; voidage balance by month of produced and injected fluids; analysis of reservoir pres- sure surveys within the pool; results and analysis of production 10g surveys, tracer surveys, and observation well surveys; and a discussion of future devel- opment plans. 10. Sustained casine Pressure Rules CO 495, dated September 8, 2003, amended CO 443 by adding new rules regarding sus- tained casing pressures in development wells within the AOP. CONCLUSIONS: 1. The reservoir interval within the proposed addition to the affected area is equivalent to, and in communication with, the AOP reservoir interval. 2. It is appropriate to amend CO 443 for the AOP to expand the affected area of the pool rules to include Sections 20, 21, 22, 23, 28, 29, 30, 31, and 32 of Township 12N, Range 4E, Umiat Meridian ("UM") and Sections 25 and 36 of Township 12N, Range 3E, UM. Section 27 of Township 12N, Range 4E, UM was included in the original affected area of CO 443. 3. The AOP is not compartmentalized. A minimum well bore spacing of 500 feet is ap- propriate for efficient development of the pool. 4. The central portion of the AOP is nearly developed. Further delineation of the AOP will detennine reservoir volume, thickness and quality. 5. The full extent of the AOP was unknown at the time CO 443 was adopted. 6. A well standoff of 500 feet minimum rrom the external boundaries of the expanded affected area is appropriate, and is consistent with statewide regulations. 7. Reservoir perfonnance will be monitored through pressure measurements, production tests and nonnal surveillance activity to ensure proper management of the pool. Con- tinued annual reports and technical review meetings will keep the Commission ap- prised of reservoir perfonnance and will ensure that future development plans pro- mote greater ultimate recovery. Conservation Order 443A ') October 7, 2004 ) Page 6 8. Injection of water and miscible gas into the AOP will preserve reservoir energy and increase ultimate recovery from the pool. 9. Exception from the gas-oil-ratio limitations of 20 AAC 25.240 is appropriate pro- vided enhanced recovery operations maintain reservoir pressure above the bubble point pressure. 10. It is appropriate to consolidate sustained casing pressure rules from CO 495 into this order to promote administrative efficiency. NOW, THEREFORE, IT IS ORDERED: This Conservation Order supersedes CO 443 dated March 15, 1999 and CO 495 dated September 8, 2003. The findings, conclusions and administrative record for CO 443 and CO 495 are adopted by reference and incorporated in this decision, except where incon- sistent with this Conservation Order. The following rules, in addition to statewide re- quirements under 20 AAC 25, to the extent not superseded by these rules, apply to the AOP within the following affected area: Umiat Meridian T11N R4E Section 1,2,3,4,5,7,8,9,10, 11, 12, 13, 14, 15, 16,21,22,23,24,25,26, 27. T11N R5E Sections 1,2, 3,4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19,20,21, 22, 23, 24, 29, 30. T12N R4E Sections 20,21,22,23,24,25,26,27,28,29,30, 31, 32, 33, 34, 35,36. T12N R3E Sections 25, 36. Rule 1 Field and Pool Name (Restated from CO 443) The field is the Colville River Field. The pool is the Alpine Oil Pool ("AOP"). Rule 2 Pool Definition (Restated from CO 443) The AOP is defined as the accumulation of hydrocarbons common to and correlating with the interval between the measured depths of 6876 feet and 6976 feet in the Bergschrund No. 1 well. Rule 3 Well Spacine (Restated from CO 443) Development wells may not be completed within 500 lineal feet of another AOP devel- opment well nor closer than 500 feet from the exterior boundary of the affected area. Conservation Order 443A ) October 7,2004 ) Page 7 Rule 4 Drillin2 and Completion Practices (Restated from CO 443) a. After drilling no more than 50 feet below a casing shoe set in the AOP, a fonnation integrity test must be conducted. The test pressure need not exceed a predetennined pressure. b. Casing and completion designs may be approved by the Commission upon applica- tion and presentation of data that demonstrate the designs are appropriate and based upon sound engineering principles. c. Pennit(s) to Drill deviated wells within the AOP shall include a plat with a plan view, vertical section, close approach data and a directional program description in lieu of the requirements of20 AAC 25.050(b). d. A complete petrophysical log suite acceptable to the Commission is required from below the conductor to TD for at least one well on each drilling pad in lieu of the re- quirements of 20 AAC 25.071(a). The Commission may, in its discretion, require additional wells on a pad to be 10gged using a complete petrophysicallog suite. Rule 5 Automatic Shut-in Equipment (Restated from CO 443) a. All production and gas injection wells must be equipped with a fail-safe automatic surface safety valve ("SSV") and a surface controlled subsurface safety valve ("SSSV"). b. Water injection wells must be equipped with either a double check valve arrangement or a single check valve and SSV. c. Safety Valve Systems ("SVS") must be tested on a six-month frequency. Sufficient notice must be given so that a representative of the Commission can witness the tests. d. Subsurface safety valves may only be removed after demonstrating to the Commis- sion that the well is not capable of unassisted flow of hydrocarbons. Sufficient no- tice must be given so that a representative of the Commission can witness the tests. Rule 6 Reservoir Pressure Monitorin2 (Restated from CO 443) a. Prior to regular injection, an initial pressure survey shall be taken in each injection well. b. A minimum of six bottom-hole pressure surveys shall be measured annually. Bot- tom-hole surveys in paragraph (a) may fulfill the minimum requirement. c. The reservoir pressure datum shall be 7000 feet TVD 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 fonnation tests. e. Data and results from pressure surveys shall be reported annually on Fonn 10-412, Reservoir Pressure Report. All data necessary for analysis of each survey need not be submitted with the Fonn 10-412 but shall be made available to the Commission upon request. f. Results and data from special reservoir pressure monitoring tests or surveys shall also be submitted in accordance with part ( e) of this rule. ì~ Conservation Order 443A J October 7, 2004 ) Page 8 Rule 7 Gas-Oil Ratio Exemption (Restated from CO 443) Wells producing from the AOP 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 8 Reservoir Surveillance Report (Restated from CO 443) A surveillance report is required after one year of regular production and annually there- after. The report shall include but is not limited to the following: a. Progress of enhanced recovery proj ect( s) implementation and reservoir management summary including engineering and geotechnical parameters. b. Voidage balance by month of produced fluids and injected fluids. c. Analysis of reservoir pressure surveys within the pool. d. Results and where appropriate, analysis of production 10g surveys, tracer surveys, and observation well surveys. e. Future development plans Rule 9 Well Testio2 (Restated from CO 443) a. All wells must be tested at least twice per month. b. The operator shall optimize stabilization and test duration of each test to obtain a rep- resentative test. c. The operator shall record well and field-operating conditions appropriate for main- taining an accurate field production history. d. The operator shall install and maintain test separator meters and gas system meters in confonnance with the API Manual of Petroleum Measurement Standards. e. The operator shall maintain records to allow verification of approved production allo- cation methodologies. Rule 10 Sustained Casin2 Pressure (Restated from CO 495) a. The operator shall conduct and document a pressure test of tubulars and completion equipment in each development well at the time of installation or replacement that is sufficient to demonstrate that planned well operations will not result in failure of well integrity, uncontrolled release of fluid or pressure, or threat to human safety. b. The operator shall monitor each development well daily to check for sustained pres- sure, except if prevented by extreme weather conditions, emergency situations, or similar unavoidable circumstances. Monitoring results shall be made available for AOGCC inspection. c. The operator shall notify the AOGCC within three working days after the operator identifies a well as having (a) sustained inner annulus pressure that exceeds 2000 psig or (b) sustained outer annulus pressure that exceeds 1000 psig. Conservation Order 443A ) October 7,2004 ) Page 9 d. The AOGCC may require the operator to submit in an Application for Sundry Ap- provals (Fonn 10-403) a proposal for corrective action or increased surveillance for any development well having sustained pressure that exceeds a limit set out in para- graph 3 of this rule. The AOGCC may approve the operator's proposal or may require other corrective action or surveillance. The AOGCC may require that corrective ac- tion be verified by mechanical integrity testing or other AOGCC approved diagnostic tests. The operator shall give AOGCC sufficient notice of the testing schedule to al- low AOGCC to witness the tests. e. If the operator identifies sustained pressure in the inner annulus of a development well that exceeds 45% of the burst pressure rating of the well's production casing for inner annulus pressure, or sustained pressure in the outer annulus that exceeds 45% of the burst pressure rating of the well's surface casing for outer annulus pressure, the operator shall notify the AOGCC within three working days and take corrective ac- tion. Unless well conditions require the operator to take emergency corrective action before AOGCC approval can be obtained, the operator shall submit in an Application for Sundry Approvals (Fonn 10-403) a proposal for corrective action. The AOGCC may approve the operator's proposal or may require other corrective action. The AOGCC may also require that corrective action be verified by mechanical integrity testing or other AOGCC approved diagnostic tests. The operator shall give AOGCC sufficient notice of the testing schedule to allow AOGCC to witness the tests. f. Except as otherwise approved by the AOGCC under paragraph 4 or 5 of these rules, before a shut-in well is placed in service, any annulus pressure must be relieved to a sufficient degree (a) that the inner annulus pressure at operating temperature will be below 2000 psig and (b) that the outer annulus pressure at operating temperature will be below 1000 psig. However, a well that is subject to paragraph 3, but not paragraph 5, of these rules may reach an annulus pressure at operating temperature that is de- scribed in the operator's notification to the AOGCC under paragraph 3, unless the AOGCC prescribes a different limit. g. For purposes of these rules, "inner annulus" means the space in a well between tubing and production casing; "outer annulus" means the space in a well between production casing and surface cas- Ing; "sustained pressure" means pressure that (a) is measurable at the casing head of an annulus, (b) is not caused solely by temperature fluctuations, and ( c) is not pressure that has been applied intentionally. Conservation Order 443A October 7,2004 ) ) Page 10 Rule 11 Administrative Action (Restated from CO 443) 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, jeopardize correlative rights, or compromise ultimate recovery and is based on sound engineering principles. DONE a~.~n~~~a:e, Alaska and dated üctüÃer 2004. ·..,·...,..1'1,·( '. é0~ '-' - ~ ~ . f ',~ .. - . -I, (¡ 1\ - - \tt ~_. ~ ~rm Chairm'lfl" Alaska Oil and Gas ~onservation Commission Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission AS 31.05.080 provides that within 20 days after receipt of written notice of the entry of an order, a person affected by it may tile with the Commission an application for rehearing. A request for rehearing must be received by 4:30 PM on the 231'd day following the date of the order, or next working day if a holiday or weekend, to be timely tiled. 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 tì'om the date the Commission refuses the application or mails (or otherwise distributes) an order upon rehearing, both being the final order of the Commission, to appeal the decision to Superior Court. Where a request for rehearing is denied by nonaction of the Commission, the 30 day period for appeal to Superior Court runs from the date on which the request is deemed de- nied (i.e., JOlh day after the application for rehearing was tiled). Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Kelly Valadez Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 ) Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 SOldotna, AK 99669-2139 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 North Slope Borough PO Box 69 Barrow, AK 99723 .\ David McCaleb I HS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise,lD 83702 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 David Cusato 200 West 34th PMB 411 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Karl K&K Recycling Inc. 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Pospisil <PospisG@BP ; com>, "Francis S.Sommer" <SonunerFS~J3P.co~>,MikelSch~ltz <Mik~L8chultz@BP..com», ..·"Nick·Vf ...Glover"..<Glover1)f\V@Bf.c()11l>' ."paryl.. J...·K.leppin" «KI¥ppiDE@BP~com> ,..."Jane.t.·D. Platt" ..<:I>la~tJD@J3P.c()m(,.."R9sa1ln~.N{~. ..~~colJs~l1'.' <Jaco. b. sRM@BP.com>,ddonkel....<.. dd.· onkel@cf1.rr~é01;n?; Collins,:rvt;oµnt <collins ~11l0ul}t®rev~nue.~tat~} a~.lis>, .mêkaY·.<:lnc~~y@gsi.ne.f;~~,..Barbafa..g.Flll1l11er... <::p<:u"bara.f. fül1nIer@conqcophillip$.copt>,.. boc(l$twf<;bqçastvvf@pp.c()111:>, .Gþt;!l"~es:aarker .... <barlcer(@usgs.gòv>, ..·doug~schultze..·<d()ug_Jchultze@kxt()e#~tpy.éÖtr1?>'..·I-Ia.ttk· Alford'. <:hank.alford@exxonroobil.col11>, Mark.Kov~c·.<yesl1Q l@gci.net>, gspfoff . <gspfoff@aurorapower.com>, .Gregg.Nady <gregg.nady@shell.coro>,Fred· Steece <fred.steece@state.sd. us>, rcrotty <rcrotty@ch2m~com> ,jejones. <j ejones@aurqrapowet.cöm>, dapa -<ctap~@a~aska.l1et>,. jroderick <jroderjck@g9Ll1~t>,. eyanc)' <eyancy@seahtite~n~0, "Jal1Ws .M. Ruud" <james.m.ruud@conocophillips~com>,.Brit··LivelY-<111~palask~@~.~et>,..jah. .., ......... . .... <jah@dnr.state.ak. us>, Kurt. E Olson <kurtplson@legis.state.ak.us>,. bupnoje<buonoje@bp.colil>, Mark Hanley <mark)1anley@an~darko.com>, loren_)eman<loren~)eman@gov .state.ak:.us>, Jlllie HÒule<julie_houle@dnr.state.ak.us>, JohnW Katz <jwkatz@sso.org>, Suzan JHill <suzan _ hill@dec.state.ak.us>, tablerk <tablerk@unocal.com>, Brady <brady@aoga.org>, Brian Havelock <beh@dnr.state.ak:.us>, bpopp <bpopp@borough.kenai.ak.us>, Jim White <jimwhite@satx.rr.com>,> "John S.Haworth"<joh11.s.haworth@exxonmobiLcol1l> ,marty <marty@rkindustrial.com>, ghammons<ghammons@aol.com>,. nnc1ean <1111c1ean@pobox.alaska.net>, mkm 7200 <mkm 7200@aol.com>, Brian Gillespie <ifòmg@uaa.alaska.edu>, David LBoelens <dboelens@aurorapower.com>,Todd Durkee <TDURKEE@K.MG.com>, Gary Schultz <gary..;..schultz@dnr.state.ak.us>, Wayne Rancier <RANCIER@petro-canada.ca>, Bill Miller <Bill_Miller@xtoalaska.com>, Brandon Gagnon <bgagnon@brenalaw.com>, Paul Winslow <pmwinslow@forestoil.com>, Garry Catron <catrongr@bp.com>, Sharmaine Copeland <copelasv@bp.com>, Suzanne Allexan <sallexan@helmenergy.com>, Kristin Dirks <kristin _ dirks@dnr.state.ak:.us>, Kaynell Zeman <kjzeman@marathonoil.com>, John Tower <John.Tower@eia.doe.gov>, Bill Fowler <Bill_Fowler@anadarko.COM>, Vaughn Swartz <vaughn.swartz@rbccm.com>, Scott Cranswick 10f2 10/10/20042:52 PM 10110/20042:52 PM 20f2 ) ) Various Orders ) ) STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 W. 7th Avenue, Suite 100 Anchorage Alaska 99501-3192 Re: The Application of ConocoPhiUips Alaska, ) Inc. for an order to expand the affected area ) Of the Alpine Oil Pool, Colville River Unit, ) North Slope, Alaska ) ) ) Erratum Notice to Conservation Order No. 443A Colville River Field Alpine Oil Pool January 17, 2006 The Commission notes that Conservation Order No. 443A contains two errors as follows: 1. CO 443 refers to the "Alpine Field." However, the correct field name is Colville River Field. 2. Twenty-one (21) sections in TI2N, R5E UM listed in CO 443 were inadvertently omitted from CO 443A. The sections are: 13, 14, 15, 19,20,21,22,23,24,25,26,27, 28, 29, 30, 31, 32, 33, 34, 35, and 36. , ~ (,(?7E'~;~;>::,~ è..l>~«"'I·'-'·"'''''''_: A, ~I ,W"'~,,, 'bo..,.,,~;,t' , l"",'~,::ti "\ ~)'{.~,;I\'~' \ \ " I I';, ¡/"¡, ':', J' ill" I, I "',. ',I;' ',\ &' '\ :,.'1 ! ! I . '.:. ,.- '." ", '1" !.ii.}' , ' ~./"""~...' :<, ,~~ f:j. ';, ~< ........ ".., r, ;ò,¡ .....'..... /' .~{, \" , ~\~ª!~::¡1;t;~~,'f¡¡!~~ì~· \ ~',""'''-''" ~,.."'. ','," , "",i,"'" ,',"""",'" ,r ,-'I "~"\. "\.-,'.') ',è1~"_·.·'·.'..,~··'J·;·,,,~,,:·-:,,,,,~~,Ù·.·::>" ~,~ ' \~«1?, ;"";"'~'\l'"l,..,;;;.~,~":~.., I\~;;' '~?i!i~? ~' ~?!&±er 1 ) ) STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF CONOCOPHILLIPS ALASKA, INC. for an order to expand the affected area of Alpine Oil Pool, Colville River Unit, North Slope, Alaska IT APPEARING THAT: ) Conservation Order No. 443A ) Colville River Unit ) Colville River Field ) Alpine Oil Pool ) ) October 7, 2004 ) Corrected January 17, 2006 1. By application dated July 22, 2004, and received by the Alaska Oil and Gas Conservation Commission ("Commission") on July 22, 2004, ConocoPhillips Alaska, Inc. ("CP AI") in its capacity as Unit Operator of the Colville River Unit ("CRU") requested an order from the Commission to expand the affected area established in Conservation Order 443 that governs the development and operation of the Alpine Oil Pool. Concurrently, CP AI requested an expansion of the affected area established in Area Injection Order 18A, which governs injection operations to enhance recovery from this pool and disposal of wastes. 2. CP AI provided supplemental information at the Commission's request on September 1, 2004. 3. Notice of a public hearing was published in the Anchorage Daily News on July 30, 2004. 4. The Commission received no comments or requests for public hearing. 5. Because CP AI provided sufficient information on which to make an informed decision, the Commission determined that it would issue an order without a hearing. Conservation Order 443A January 17, 2006 ) Page 2 FINDINGS: 1. Development of the Alpine Oil Pool a. Operator: CP AI is the Operator of the Alpine Oil Pool ("AOP") in the Colville River Unit. b. Unit Owners and Landowners: As proposed to be expanded, the affected area for the AOP pool rules is totally encompassed within the third expansion of the Colville River Unit ("CRU"), which expansion was approved by the Alaska Department of Natural Resources on April 22, 2004. This unit includes State of Alaska lands, ASRC lands and land jointly owned by State of Alaska and ASRC. The unit lies along the eastern boundary of the National Petroleum Reserve- Alaska on Alaska's North Slope. Working interest owners of the CRU are CP AI, Phillips Alpine Alaska, LLC, and Anadarko Petroleum Corporation. BLM tract AA 084140 lies within the external boundaries of the CRU, but is not part of the CRU or the area covered or proposed to be covered by the AOP pool rules. The CRU working interest owners have agreed to integrate their respective interests to provide for the unitized management, development and operation of the AOP under the Colville River Unit Agreement. c. Delineation History: Oil was discovered in the AOP in 1994 with the Bergschrund No. 1 exploratory oil well. Currently, over 100 exploration, development and service wells have penetrated the Alpine Sandstone of the Kingak Formation ("Alpine Sandstone") in the AOP. CP AI utilized data from these wells in conjunction with a 3-D seismic survey to estimate the extent of the oil accumulation. Recent drilling in the northwest portion of the AOP indicated thicker sand than original interpreted. Evaluation of the data indicated an opportunity to increase developed OOIP with up to six new wells. d. Pool Identification: The AOP was defined in Conservation Order No. 443 ("CO 443") as the accumulation of hydrocarbons common to, and correlating with, the interval between the measured depths ("MD") of 6,876 feet and 6,976 feet in the Bergschrund No.1 well. The AOP is contained within the Alpine Sandstone, and the currently known productive limits of the AOP lie entirely within the expanded CRU. Conservation Order 443A January 17, 2006 ') Page 3 e. Stratigraphy: The Alpine Sandstone is a Late Jurassic-aged, informal member of the Kingak Formation. It is stratigraphically the highest sandstone unit within the Kingak Formation in the Colville River Delta area. The Alpine Sandstone is an Ellesmerian, shallow marine sand deposited on a southerly prograding shelf, elongated in an east-west direction. The interval consists of very fine to fine- grained, moderately to well sorted, quartz-rich sandstone with variable glauconite and clay content. Gross thickness of the combined Alpine Sandstone layers varies across the AOP, generally ranging from more than 100 feet near the center of the pool to 0 feet near its periphery. Within the proposed addition to the affected area, gross reservoir sand thickness is estimated between 30 feet and 0 feet. f. Structure: The general structure at the top of the Alpine Sandstone in the AOP is a homocline that dips to the southwest at a rate of approximately 100 feet per mile. This homo cline is broken by several minor, northwest trending, down-to- the-west, normal faults that average less than 30 feet in vertical displacement. g. Trapping Mechanism: The AOP appears stratigraphically trapped by pinch-out of the Alpine Sandstone into time equivalent shales of the Kingak Formation. h. Reservoir Compartments: None of the structural discontinuities currently identified in the AOP appear to have caused any compartmentalization of the reservoir. Given the observed, extensive pressure continuity within the AOP, the reservoir within the proposed addition to the affected area is expected to be in pressure communication with the developed portions of the pool. 2. Rock and Fluid Properties a. Porosity/Permeability: In the current pool area, porosity of the Alpine Sandstone ranges 15% to 23 %, and averages 19%; permeability ranges from 1 to 160 millidarcies, and averages 15 millidarcies. In the additional area proposed to be covered by the AOP pool rules, porosity is estimated between 17% and 21 %, and permeability is estimated to range from less than 10 millidarcies to nearly 60 millidarcies. b. Initial Reservoir Pressure and Temperature: Initial reservoir pressure of the AOP was 3215 psia at 7000 feet true vertical depth subsea ("TVDss"). Current average reservoir pressure is approximately 3020 psia at 7000' TVDss. Average reservoir temperature is 1600 F. Conservation Order 443A January 17, 2006 ') Page 4 c. Fluid PVT Data: Fluid samples indicate the AOP reservoir is undersaturated, with a bubble point pressure of 2454 psia. Solution GOR is 850 SCF/STB. Oil gravity and viscosity at reservoir conditions are 40° API and 0.46 centipoise, respectively. 3. Pool Limits No oil-water or gas-oil contacts have been observed to date in the AOP. Ongoing operations will provide additional information about the productive limits of the AOP. 4. Hvdrocarbons in Place Current estimated original oil in place ("OOIP") within the AOP is 650 to 750 MMSTB million stock tank barrels, of which an estimated 31 to 55 MMSTB are within the proposed addition to the affected area. 5. Development Plans Reservoir models have been used to evaluate primary depletion, waterflood, and other enhanced recovery options for development of the AOP. Reservoir predictions are based on fine scale, three-dimensional, compositional models. Surveillance combined with model studies performed to date show about 10 to 15% recovery of OOIP under primary production and an additional 45 to 50% under miscible water alternating gas ("MW AG") injection. The development of the pool will continue using horizontal wells arranged in a line- drive pattern. Spacing between wells will vary based on drilling and modeled recovery efficiency, but distance between well bores open to the AOP will exceed 500 feet. 6. Facilities Development and service wells in the proposed addition to the affected area will be drilled from the existing CD2- Pad. This pad is designed to accommodate 60 wells on 10-foot centers. No additional gravel construction is anticipated. Conservation Order 443A January 17, 2006 Production will be processed at the Alpine CDI-Pad facility to maximize use of existing infrastructure, minimize environmental impacts, reduce costs, and maximize recovery. Existing low-pressure oil, water injection, gas lift and possibly miscible injectant lines will be shared. Existing power facilities will accommodate additional wells needed to develop the proposed addition to the affected area. Several phases of upgrades to the Alpine processing facilities are in various stages of planning and implementation. These upgrades will improve throughput capacity and reduce water and gas handling bottlenecks at Alpine. ) Page 5 7. Drilline; AOP drilling will continue to utilize drilling procedures, well designs, and casing and cementing programs that conform to Commission regulations and to the following drilling and completion practices established in Rule 4 of Conservation Order 443. 8. Well Completion Desie;n Horizontal wells and horizontal multi-lateral well bores may be drilled within the proposed addition to the affected area. The horizontal well sections may be completed with perforated casing, slotted liner, open-hole section, or a combination. Fracture stimulation may be necessary to maximize well productivity and injectivity. a. Surface Safety Valves: Fail-safe automatic surface safety valves ("SSV") are included in the wellhead equipment for all wells. b. Subsurface Safety Devices: All wells capable of unassisted flow are equipped with a surface-controlled subsurface safety valve ("SSSV"). c. Producers: Gas lift remains the preferred mechanism for artificial lift for AOP producers. d. Injectors: Injection wells are equipped with a double check valve arrangement or a single check and surface safety valve. The subsurface safety valve is also installed on every gas injection well. e. Stimulation Methods: Lower quality reservoir rock is possible within the proposed addition to the affected area. CP AI may evaluate the use of propped hydraulic fracturing stimulation techniques. Conservation Order 443A ) January 17, 2006 ) Page 6 9. Reservoir Surveillance Plans Monitoring of reservoir performance and reporting on a regular basis will help ensure proper management of the AOP. a. Well Testing: All wells are tested at least twice per month. CP AI optimizes stabilization and test duration of each test to ensure representative tests. CP AI records well and field-operating conditions to maintain accurate field production history records. Separator meters and gas system meters have been installed and maintained in conformance with the API Manual of Petroleum Measurement Standards. CP AI maintains records to allow verification of approved production allocation methodologies. b. Reservoir Pressure Measurements: Initial pressure surveys have been taken in each injection well, and a minimum of six bottom-hole pressure surveys has been measured annually. These pressure surveys of the AOP have been conducted using the following techniques: stabilized static pressure measurements at bottom-hole; stabilized static pressure measurements extrapolated from surface, pressure fall-off, pressure buildup, multi-rate tests, drill stem tests, and open-hole formation tests. Pressure survey results have been corrected to a datum of 7000 feet TVD subsea, and have been reported to the Commission annually. c. Reservoir Surveillance Reporting: Information from the proposed addition to the affected area will be integrated into the annual surveillance report for the AOP. These annual reports consist of project progress and reservoir management summaries including: engineering and geotechnical parameters; voidage balance by month of produced and injected fluids; analysis of reservoir pressure surveys within the pool; results and analysis of production log surveys, tracer surveys, and observation well surveys; and a discussion of future development plans. 10. Sustained Casine: Pressure Rules CO 495, dated September 8, 2003, amended CO 443 by adding new rules regarding sustained casing pressures in development wells within the AOP. Conservation Order 443A ) January 17, 2006 ) Page 7 CONCLUSIONS: 1. The reservoir interval within the proposed addition to the affected area is equivalent to, and in communication with, the AOP reservoir interval. 2. It is appropriate to amend CO 443 for the AOP to expand the affected area of the pool rules to include Sections 20, 21, 22, 23, 28, 29, 30, 31, and 32 of Township 12N, Range 4E, Umiat Meridian ("UM") and Sections 25 and 36 of Township 12N, Range 3E, UM. Section 27 of Township 12N, Range 4E, UM was included in the original affected area of CO 443. 3. The AOP is not compartmentalized. A minimum well bore spacing of 500 feet is appropriate for efficient development of the pool. 4. The central portion of the AOP is nearly developed. Further delineation of the AOP will determine reservoir volume, thickness and quality. 5. The full extent of the AOP was unknown at the time CO 443 was adopted. 6. A well standoff of 500 feet minimum from the external boundaries of the expanded affected area is appropriate, and is consistent with statewide regulations. 7. Reservoir performance will be monitored through pressure measurements, production tests and normal surveillance activity to ensure proper management of the pool. Continued annual reports and technical review meetings will keep the Commission apprised of reservoir performance and will ensure that future development plans promote greater ultimate recovery. 8. Injection of water and miscible gas into the AOP will preserve reservoir energy and increase ultimate recovery from the pool. 9. Exception from the gas-oil-ratio limitations of 20 AAC 25.240 is appropriate provided enhanced recovery operations maintain reservoir pressure above the bubble point pressure. 10. It is appropriate to consolidate sustained casing pressure rules from CO 495 into this order to promote administrative efficiency. ') Conservation Order 443A January 17, 2006 ) Page 8 NOW, THEREFORE, IT IS ORDERED: This Conservation Order supersedes CO 443 dated March 15, 1999 and CO 495 dated September 8, 2003. The findings, conclusions and administrative record for CO 443 and CO 495 are adopted by reference and incorporated in this decision, except where inconsistent with this Conservation Order. The following rules, in addition to statewide requirements under 20 AAC 25, to the extent not superseded by these rules, apply to the AOP within the following affected area: Umiat Meridian TIIN R4E Section 1, 2, 3,4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16,21,22,23,24, 25, 26, 27. TIIN R5E Sections 1,2,3,4,5,6,7,8,9,10,11,12,13,14,15,16,17,18,19, 20,21,22,23,24,29,30. T12N R3E Sections 25, 36. T12N R4E Sections 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36. T12N R5E Sections 13, 14, 15, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36. Rule 1 Field and Pool Name (Restated from CO 443) The field is the Colville River Field. The pool is the Alpine Oil Pool ("AOP"). Rule 2 Pool Definition (Restated from CO 443) The AOP is defined as the accumulation of hydrocarbons common to and correlating with the interval between the measured depths of 6876 feet and 6976 feet in the Bergschrund No. 1 well. Rule 3 Well SpaCÍn2 (Restated from CO 443) Development wells may not be completed within 500 lineal feet of another AOP development well nor closer than 500 feet from the exterior boundary of the affected area. Conservation Order 443h. ) January 17, 2006 ) Page 9 Rule 4 Drillin2 and Completion Practices (Restated from CO 443) a. After drilling no more than 50 feet below a casing shoe set in the AOP, a formation integrity test must be conducted. The test pressure need not exceed a predetermined pressure. b. Casing and completion designs may be approved by the Commission upon application and presentation of data that demonstrate the designs are appropriate and based upon sound engineering principles. c. Permit(s) to Drill deviated wells within the AOP shall include a plat with a plan view, vertical section, close approach data and a directional program description in lieu of the requirements of20 AAC 25.050(b). d. A complete petrophysical log suite acceptable to the Commission is required from below the conductor to TD for at least one well on each drilling pad in lieu of the requirements of 20 AAC 25.071(a). The Commission may, in its discretion, require additional wells on a pad to be logged using a complete petrophysical log suite. Rule 5 Automatic Shut-in Equipment (Restated from CO 443) a. All production and gas injection wells must be equipped with a fail-safe automatic surface safety valve ("SSV") and a surface controlled subsurface safety valve ("SSSV"). b. Water injection wells must be equipped with either a double check valve arrangement or a single check valve and SSV. c. Safety Valve Systems ("SVS") must be tested on a six-month frequency. Sufficient notice must be given so that a representative of the Commission can witness the tests. d. Subsurface safety valves may only be removed after demonstrating to the Commission that the well is not capable of unassisted flow of hydrocarbons. Sufficient notice must be given so that a representative of the Commission can witness the tests. Rule 6 Reservoir Pressure Monitorin2 (Restated from CO 443) a. Prior to regular injection, an initial pressure survey shall be taken in each injection well. b. A minimum of six bottom-hole pressure surveys shall be measured annually. Bottom-hole surveys in paragraph (a) may fulfill the minimum requirement. c. The reservoir pressure datum shall be 7000 feet TVD 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 shall be reported annually 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 shall be made available to the Commission upon request. f. Results and data from special reservoir pressure monitoring tests or surveys shall also be submitted in accordance with part (e) of this rule. Conservation Order 443A ') January 17, 2006 ) Page 10 Rule 7 Gas-Oil Ratio Exemption (Restated from CO 443) Wells producing from the AOP are exempt from the gas-oil-ratio limits of 20 AAC 25.240(b) so long as the provisions of20 AAC 25.240(c) apply. Rule 8 Reservoir Surveillance Report (Restated from CO 443) A surveillance report is required after one year of regular production and annually thereafter. The report shall include but is not limited to the following: a. Progress of enhanced recovery project(s) implementation and reservoir management summary including engineering and geotechnical parameters. b. Voidage balance by month of produced fluids and injected fluids. c. Analysis of reservoir pressure surveys within the pool. d. Results and where appropriate, analysis of production log surveys, tracer surveys, and observation well surveys. e. Future development plans Rule 9 Well Testin2; (Restated from CO 443) a. All wells must be tested at least twice per month. b. The operator shall optimize stabilization and test duration of each test to obtain a representati ve test. c. The operator shall record well and field-operating conditions appropriate for maintaining an accurate field production history. d. The operator shall install and maintain test separator meters and gas system meters in conformance with the API Manual of Petroleum Measurement Standards. e. The operator shall maintain records to allow verification of approved production allocation methodologies. Rule 10 Sustained Casin2; Pressure (Restated from CO 495) a. The operator shall conduct and document a pressure test of tubulars and completion equipment in each development well at the time of installation or replacement that is sufficient to demonstrate that planned well operations will not result in failure of well integrity, uncontrolled release of fluid or pressure, or threat to human safety. b. The operator shall monitor each development well daily to check for sustained pressure, except if prevented by extreme weather conditions, emergency situations, or similar unavoidable circumstances. Monitoring results shall be made available for AOGCC inspection. c. The operator shall notify the AOGCC within three working days after the operator identifies a well as having (a) sustained inner annulus pressure that exceeds 2000 psig or (b) sustained outer annulus pressure that exceeds 1000 psig. Conservation Order 443A ) January 17, 2006 ) Page 11 d. The AOGCC may require the operator to submit in an Application for Sundry Approvals (Form 10-403) a proposal for corrective action or increased surveillance for any development well having sustained pressure that exceeds a limit set out in paragraph 3 of this rule. The AOGCC may approve the operator's proposal or may require other corrective action or surveillance. The AOGCC may require that corrective action be verified by mechanical integrity testing or other AOGCC approved diagnostic tests. The operator shall give AOGCC sufficient notice of the testing schedule to allow AOGCC to witness the tests. e. If the operator identifies sustained pressure in the inner annulus of a development well that exceeds 45% of the burst pressure rating of the well's production casing for inner annulus pressure, or sustained pressure in the outer annulus that exceeds 45% of the burst pressure rating of the well's surface casing for outer annulus pressure, the operator shall notify the AOGCC within three working days and take corrective action. Unless well conditions require the operator to take emergency corrective action before AOGCC approval can be obtained, the operator shall submit in an Application for Sundry Approvals (Form 10-403) a proposal for corrective action. The AOGCC may approve the operator's proposal or may require other corrective action. The AOGCC may also require that corrective action be verified by mechanical integrity testing or other AOGCC approved diagnostic tests. The operator shall give AOGCC sufficient notice of the testing schedule to allow AOGCC to witness the tests. f. Except as otherwise approved by the AOGCC under paragraph 4 or 5 of these rules, before a shut-in well is placed in service, any annulus pressure must be relieved to a sufficient degree (a) that the inner annulus pressure at operating temperature will be below 2000 psig and (b) that the outer annulus pressure at operating temperature will be below 1000 psig. However, a well that is subject to paragraph 3, but not paragraph 5, of these rules may reach an annulus pressure at operating temperature that is described in the operator's notification to the AOGCC under paragraph 3, unless the AOGCC prescribes a different limit. g. F or purposes of these rules, "inner annulus" means the space in a well between tubing and production casing; "outer annulus" means the space in a well between production casing and surface casIng; "sustained pressure" means pressure that (a) is measurable at the casing head of an annulus, (b) is not caused solely by temperature fluctuations, and (c) is not pressure that has been applied intentionally. Conservation Order 443A. ) January 17, 2006 ." Page l~ Rule 11 Administrative Action (Restated from CO 443) 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, jeopardize correlative rights, or compromise ultimate recovery and is based on sound engineering principles. DONE at Anchorage, Alaska Corrected January 17, 2004. /" ~ ~V;'f~;''$.I..r~:M.'!,..'i;I~'"1t:¡.,,.:¡¡¡ ,~,'J' II>. ('b 1 ír ~~"~~~~,. ,.,.. 11( i'!, Ll'J'("'-I,.1jã'''' ~, "',,'" ë)t,:~",,:;¡i'<'j"'\'''''·'·''''''ì··'~;''~',: ulh, , \""~,, 1t...."'¡¡Ø'\ I "~~" '\,,11 ~~ ~ }'f;.;~ 1:':11 \ / }Ia.,. I'''), ,t 1,,::7 A·' " "',~ \ tJ'.' ,,: ~\'..l· \. l,';,,),1 ¡I, I \~:~"'1 ,. ,,' If'' .I"., j\ /' ¡ "~ 'Ir ,:F \ i :i "" ~.:!:\'i ',"" --..... \ '(jJ. ,:' ,f." '~f:::J;hr':', ~5~;:~~-~~-~,:' 11,,"'<";"""""'''1 ':," ,I.," " """ \: ,1, >" " r("'·'·· ~:~:~~{~) ~~. n t.~t \<.~~~'~""i':~:<: ::{/::'..:~~, ~ 1 ¡¡ .I:&)~:; ~ /,. Ii 'i') 1\ '··k ,",>' "',", ,,~. ~)i~·~;:.f:\\!1 ({j~;{\;~"i~~t ;" ,Q ~.¡. ...~fz::~¡ "', "" ,J', 1\.,''5 ';'~~TiÓl~ i!:ij~~~~~"'; ....-..,,,.~,............"''' Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission ~/~ Cathy P. oerster, Commissioner Alaska il and Gas Conservation Commission AS 31.05.080 provides that within 20 days after receipt of written notice of the entry of an order, a person affected by it may file with the Commission an application for rehearing. A request for rehearing must be received by 4:30 PM on the 23rd day following the date of the order, or next working day if a holiday or weekend, to be timely filed. The Commission shall grant or refuse the application in whole or in part within 10 days. The Commission can refuse an application by not acting on it within the 10-day period. An affected person has 30 days from the date the Commission refuses the application or mails (or otherwise distributes) an order upon rehearing, both being the final order of the Commission, to appeal the decision to Superior Court. Where a request for rehearing is denied by nonaction of the Commission, the 30 day period for appeal to Superior Court runs from the date on which the request is deemed denied (i.e., lOth day after the application for rehearing was filed). CO 443A ColviIle River Field ) ) Subject: CO 443A Colville River Field From: Jody Colombie <jody_colombie@admin.state.ak.us> Date: Wed, 18 Jan 2006 10:14:59 -0900 T9: undisc~os~d-r¢pipi7J1ts:; , ,". ' BCC.:'.qYJ1thia;ª':~civer!~þr~l}~mf,i"er@a4n}i~:stat~¡.é1k; us,>, ROQ~rtE' Mìl1~z' <rqbeg__111h~~~~~a~·§1~~,e.*;us~'8þr~~til}ÿf:Ial1~en~c.'þ~se~(Ðiogcs.stªte.0k.lls>,. T em-ie . Hub ble <. h.', '.u. bb.l,',e," 't1,.',,',@,',:,.,.h.·..p,',·,',:'qø,m,:,,:...',2>, "" ,,8, O,.n","'·,i:.çf,.",,'~£\, ,~.,.te.., wm,,"',,' .' an. ..'.,'. <" S.,....të. wm.',,', '.', ,'.' ' a"" 8" ø:@, " ,1;1, JP, : ",.. 'c. 'o."",.,m,' "',',>, ."S" C. ().." t.t &. "''',C., ""am,' .. m,.,', Y. T."'.ay,,.lo,',r,· . . . 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(]IOY7r"<Fq19~~r~~@B~·f2mR'" ".#>ær1J ~...K~~PPl11':'·RK;~e¡1)p~gE($~P.~oæ?"~·.· "J ~~t.R·¡>Jatt" <PI, attJI),@ÐP~ç9m:;>~",'~()~antlel\1~.·J ªçpþs~n't5Ja9bb'sa;M@BP ~com>,.. ~donkel~~donkel@cfl.rr.c. .om>, I, ' , I , " ' ;',",1, ":i',' " ",,',:',' ',', , , :", ";, ",",' 'II,', 'I' ,: [" , " ,," " ,,!', '; ',' . , , ' "I:' I',,' , ,':, ',",' 'I ,'','- '," '" ",'~':, I I,'~'.'I',' ",,':,',,',', ',," ...', ',' ' :"",:,'. ' ',:,-':, ,;,,' '"'::',, ".>,111, ", , ," \ ""':'. ,,',' , ,',' ,', I 'I," ", '. ";. ' . ' , ,', "'::', ,,: . "," ':'Y:, ' I mckay~~cfªf@~~i.net>, J3¥Þ~a~.fuU~7r4b~Þår¡~.f.f~1~å1~r~C9nocoPb.illip~.cOm>~ Doc'astwf <... b'." ..o.·.c. a.',s, tw,',...'...·,fì,.@.,.'.'. óP" ~c....Ó,m.·' >,'.'. '.,'.,C...... 'h.' ailes., .. Bar. Ker.. :.,;'<,'b.,. ali.. .,.ke.r@.. U..~g,.s,:"..g.OY.. :;;.', ...d.<;>,ug. 'se..'.h.u., l,t.~e ." ' .," .. . '.' . '.' 1",1.1, ,:.,' "',;:'':'\" ,."", ",1,':",.1,',::;" ," ,."" ,'" ',:,:,,':.¡ ".,:1 "::",,'.1 ""I ,.'. ',I;" :'::1,,' :.'" ""',' ',,'- ".' ';"",:101"",,', ';,," ,,' ,"d' , <40ug~~F4~1~~é~~~oen~~~y~çong~'.~~"A~fqrØ<4~.~~~9rp~e~x~~ob~l.comr- ~:MapkKovac <yesnol(~gci.~~t>;¡:s§pf?ff ·~gspfoff(@å~r9r~p()\V~r.co1lJt>,·.qre.gg'~aâ~.<gre~~.nad~@s~~ll.com>, .Fred Steece~fre.4·~te~c~@state. ~,4.. ~~>, rcrotty.<rcrott)'@ch2m.ç0tn>' j~jones. <jejone~@aur()rapower . com> , dapa <dapa@alé!lska~f).~t>,j'r()derick <8rode:v.ick@gçi.net~ "ey,al1cy:<eYancy@seal~tite;net>, ·"Jarnes M. \ " ;, :'" , ' : ' ", : ',' :" . ':' ' :.' I, : ',", . ",'," ,!:', ":: '" , " " . .' .' ',: :,':...: :':,"" .' ': " "':,' : ' '.' , ":, ' ,:i"~ " ; , . \', ';, ' " ,'. ',,'" ,: ::: , ,:' :', "; .' . ,: . "',' '" .' :," ':" . , , ' " I, !' I" , Ruud " ..<j#n~~..m~n~ud@con()cophinips.cgi11:> ,J3~~t~iveIY..~1l1~palªsk~@aIcµet>, j~ <j ah@dnr.ståte~åk·us?,þuonoje <buol1oje@?p.cømÞ,;¥ark·lIatlley<~ark~ ha111ey@kadarko.com>, loren _le~afl <lofep_Iem~@goy.state.ak.us; ,Julie¡ No~le <j.ulie_houle@dnr;state.ak.us>,John W Katz <jwkatz@sso.org>, StizanJHill <suzan_ hill@dec.state.ak.us>, t~blerk <tablerk@unoca1.com>, Brady <brady@aogæorg>, ·Brian. Havelock <beh@dnr.state.alcus>, .bpopp· <bpopp@borough.kenai.ak.us>, Jim White <ji11lwhite@sat:x:.rr.com>,"Jol11)S. Haworth" <john.s.haworth@exxonmobi1.com>, marty <marty@rkindustrial.com>, ghammons <ghammons@ao1.com>, rmclean <rmc1ean@pobox.alaska.net>, mkm7200 <mkm7200@ao1.com>, Brian Gillespie <ifbmg@uaa.alaska.edu>, David L Boelens <dboelens@aurorapower.com>, Todd Durkee <TDURKEE@KMG.com>, Gary Schultz <gary_schultz@dnr.state.ak.us>, Wayne Rancier <RANCIER@petro-canada.ca>, Brandon Gagnon <bgagnon@brenalaw.com>, Paul Winslow <pmwinslow@forestoi1.com>, Garry Catron <catrongr@bp.com>, Sharmaine Copeland <copelasv@bp.com>, Kristin Dirks <kristin_dirks@dnr.state.ak.us>, Kaynell Zeman <kjzeman@marathonoil.com>, John Tower <John.Tower@eia.doe.gov>, Bill Fowler <Bill_Fowler@anadarko.COM>, Scott Cranswick <scott.cranswick@mms.gov>, Brad McKim <mckimbs@BP .com>, Steve Lambe <lambes@unoca1.com>, jack newell <jack.newell@acsalaska.net>, James Scherr <james.scherr@mms.gov>, david roby <David.Roby@mms.gov>, Tim Lawlor <Tim_Lawlor@ak.blm.gov>, Lynnda Kahn <Lynnda_Kahn@fws.gov>, Jerry Dethlefs <Jerry. C.Dethlefs@conocophillips.com>, crockett@aoga.org, Tamera Sheffield <sheffield@aoga.org>, Jon Goltz <Jon.Goltz@conocophillips.com>, Roger Belman <roger.belman@conocophillips.com>, Mindy Lewis <mlewis@brenalaw.com>, Kari Moriarty <moriarty@aoga.org>, Patty Alfaro <palfaro@yahoo.com>, Jeff <smetankaj@unoca1.com>, Todd Kratz <ToddKratz@chevron.com>, Gary 1 of2 1/18/2006 10: 15 AM CO 443A Colville River Field ') ) R()gers<gary~r0g~~~~r~yynue.stat~,.ak~ us>, Arth\IT Copoulos <Arthur _Copoulos@dnr.state.ak.us>, Ken <, ke" n@""s",e,p,o"""",rp,,',:--in, C,.e,"",o",m:"", >,'"", ,',',',S, "t,e,Y,,', e""",L"',,,arribert,,, <,s, 'a" l,am"",: be",rt,@,"',un,oc,al",.c,',o,m>",J, O",e"""N" i"c"k," s<n,e, ws@radio,kenai.com>, J erry,Mçª~t~~~()rt':<iSMsitl1áhYdro119\V@Yâho().~orn>~Paul Todd<p~ulto@acsalaska.net>, BillW alker <bill-\yw~@~~ri~p, I~is .,~~tthews~lris_Matth~'Ys@legis,~ state;ak. us>, "Paul Decker <p,~ul_dec~,er,;.,@, Qllr,.s",tate.ak.us, >",', Rob btag"n,l,'c,h,' <rob; g,.,d, "r,ag """nich,',@exx",o,nm",obil.com,,> I ' ' ',', ' ' " """"', ' , ,'I ' , ' , ~ ' ' , , ; , , ','" , , 'I'" , : : ,: ,',' I ' "¡ , ' 'I' " , , I ",' ',' ". iContent- Type: " '" application/pelfi' ,C0443A .pdf: ' " ',,' ,'""" ,,"'. b" I ' '", - IC(}ntel1'~7Encod~ng~ase64 ! I:":""""""" "",', ,,,;,, ........;".., ....""":.",,, ...",,,,,,,,",,,,,..:,,:,:,,,:,:1,,,,,,,,, ... ir.. .. . . . .... .. .1 Content-Type: 'applicati~n/pdfl ~"'I,er,",r,:,:atu"m,, " 'Do,tlce"""C., 0 443A.,p",d, f.",C'.,' , '",',,' ""'""E,',,,.,'d" " ":"b"", "", 6'4,' ' : ,"".', " '. : , ¡, "~, ontent-DcO 109: ase ~ ,,~: .:/':: , ,:. , ",;'" " ::,', ' " ,', ' , , "....: ,:, , , , : ,',,: : ,', ,I,,',, ,', ".. ' '," :',',',,', ,'.:,,:.', .',,, : : , , " ' ..,' ....'... , ':' :, : , , , , , ' , , , , , , : ' , , , , "..... ,.. "'""..,.. ï " .',',;:'.'::,. , , ' "" ..'.." ., , ..:: , .:: :', , , , ' , ,.. , ",,:: :::,', , ", ...1,;, , :, , , " , ::; .I, ., " ,', ,': " ., " ... :",,'..:,:,,,,,,,,..,,:,::,,: ..,'" ,:', , ... ..." , ' , " :,:: , ,', "':.,, " ' :'" , ' , ' ,.......: , :, : , , , , '" .." ....: .:, , , :, ..: , , .::, :, , ' , ,', :,', ::,', , , ' , , , :, " ' , , "" " , , .... ".::. .......:. 20f2 1/18/2006 10: 15 AM Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise, ID 83702 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 ') David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Ivan Gillian 9649 Musket Bell Cr.#5 Anchorage, AK 99507 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 Jack Hakkila PO Box 190083 Anchorage, AK 99519 James Gibbs PO Box 1597 SOldotna, AK 99669 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 North Slope Borough PO Box 69 Barrow, AK 99723 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 /l)/J/Md '/IJjðh e ~1r~1rŒ mJ~ ~~~~æ~ e AI¡ASIiA. OIL AND GAS CONSERVATION COMMISSION FRANK H. MURKOWSKI, GOVERNOR 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 ADMINISTRATIVE APPROVAL CO 443A.OOl Ms. MJ Loveland Problem Well Supervisor - NSK 69 ConocoPhillips Alaska, Inc. P.O. Box 100360 Anchorage, AK 99510-0360 Re: Temporary Removal of Injection Valves Colville River Unit Dear Ms. Loveland: Pursuant to Rule 11 of Conservation Order ("CO") 443A, the Alaska Oil and Gas Conservation Commission ("AOGCC" or "Commission") hereby grants ConocoPhillips Alaska, Inc. ("CP AI")' s request for administrative approval to temporarily remove the required subsurface safety valve from injection wells CD2-55, CD2-56, and CD2-60. AOGCC finds that CPAI will remove the A-I injection valve from each well to allow for monitoring of the surface pressures. The injection valves will be out of the wells through early August 2006. The Commission further finds that CP AI will leave these wells shut in except for a I-hour period every two weeks when each well's master valve will be opened to monitor tubing pressure. Recent inspections of CD2 location indicates the safety valve systems for all wells are suitable for the intended service, with only a few deficiencies identified that were immediately corrected. No state witnessed safety valve system tests of the 3 wells have been performed since they have only injected water. The Commission has no record of well integrity concerns for the 3 mentioned injection wells and believes that removal of the injection valves from CD2-55, CD2-56, and CD2- 60 will not compromise overall well integrity so as to threaten the environment or human safety. AOGCC's administrative approval to allow the temporary removal of injection valves from CRU CD2-55, CD2-56, and CD2-60 is conditioned upon the following: 1. Wells shall be tagged showing the date and reason for removal of the injection valve; Ms. MJ Loveland May 18, 2006 Page 2 of2 e e 2. Wells shall be attended while the master valve is open for monitoring tubing pressure; 3. Wells shall remain shut-in except during the monitoring oftubing pressure; 4. The injection valve must be reinstalled within 15 days of commencing injection in a well; 5. This approval expires on August 31, 2006 As provided in AS 31.05.080, within 20 days after written notice of this 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 rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. , Alaska and dated May 18, 2006. c~~ Commissioner . ~1r~1rŒ (ill~ ~~~~æ~ . AI1ASIiA OIL AND GAS CONSERVATION COMMISSION 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 443A.002 Ms. Maria Kemner Alpine Production Engineer ConocoPhillips Alaska, Inc. PO Box 100360 Anchorage, AK 99510-0360 Re: Well Testing Waiver for Colville River Unit CDI-04 Well Dear Ms. Kemner: On December 6, 2006, the Alaska Oil and Gas Conservation Commission ("Commission") received a letter from ConocoPhillips Alaska, Inc. ("CP AI") dated December 4, 2006 ("Application"), requesting a temporary waiver, through December 2006, of the well testing requirements for the Colville River Unit CD 1-04 well ("CD 1- 04"). The Commission hereby grants the requested waiver. Conservation Order 443A ("CO 443A") governs the Alpine Oil Pool within the Colville River Unit. Rule 9 of CO 443A states: "all wells must be tested at least twice per month." The Application states that CDI-04 was last tested on November 5, 2006, and that scale deposition in the production/test divert valve is preventing this well from being diverted to the test separator. The Application also states that logistics are currently being fonnulated to acid wash the flowline to remove the scale and allow regular testing to resume. Rule 11 of CO 443A states: "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, jeopardize correlative rights, or compromise ultimate recovery and is based on sound engineering principles." Administrative approval is appropriate for a temporary waiver for the CD 1-04 well of the well testing requirements specified in CO 443A. Notice and public hearing are not required for this well testing waiver request. The Commission has detennined that a temporary waiver of the well testing requirements for the CDI-04 well will not promote waste, will not jeopardize correlative rights, will not compromise ultimate recovery, and is based on sound engineering principles. The . . Ms. Maria Kemner December 14,2006 Page 2 of2 Commission hereby temporarily waives the well testing requirements of CO 443A for the CD 1-04 well on the following conditions: 1: The CDI-04 well must be shut in by January 15,2007, if it has not been returned to a condition that will allow nonnal well testing operations to resume and must remain shut in until such time as nonnal well testing can resume. 2: CP AI must infonn the Commission in writing when the well is returned to a condition that will permit nonnal well testing. As provided in AS 31.05.080, within 20 days after written notice of this 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 rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. ge, Alaska and dated December 14,2006. Daniel T. Seamount, Jr. Commissioner Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise,ID 83702 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 North Slope Borough PO Box 69 Barrow, AK 99723 . David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 Ivan Gillian 9649 Musket Bell Cr.#5 Anchorage, AK 99507 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 . Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 . \è I~\!{ Wi}' ~-:, U ~\ \ro j C0443A-002 (CRU) and AI04E-007 (CanCella¡ . Subject: C0443A-002 (CRU) and AI04E-007 (cancellation) From: Jody Colombie <jody _ colombie@admin.state.ak.us> Date: Fri, 15 Dec 2006 14:47:07 -0900 To: undisclosed-recipients:; BCC: Christine Hansen <c.hansen@iogcc.state.okus>, Terrie Hubble <hubbletl@bp.com>, Sondra Stewman <StewmaSD@BP.com>, stanekj <stanekj@unocal.com>, ecolaw <ecolaw@trustees.org>, trmjr 1 <trmjr 1 @aol.com>, jdarlington <jdarlington@forestoil.com>, nelson <knelson@petroleumnews.com>, cboddy <cboddy@usibelli.com>, Mark Dalton <markdalton@hdrinc.com>, Shannon Donnelly <shannon.donnelly@conocophillips.com>, "Mark P. Worcester" <mark.p.worcester@conocophillips.com>, Bob <bob@inletkeeper.org>, wdv <wdv@dnr.state.ak.us>, tjr <tjr@dnr.state.ak.us>, bbritch <bbritch@alaska.net>, mjnelson <mjnelson@purvingertz.com>, Charles O'Donnell <charles.o'donnell@veco.com>, "Randy L. Skillern" <SkilleRL@BP.com>, "Deborah J. Jones" <JonesD6@BP.com>, "Steven R. Rossberg" <RossbeRS@BP.com>, Lois <lois@inletkeeper.org>, Dan Bross <kuacnews@kuac.org>, Gordon Pospisil <PospisG@BP.com>, "Francis S. Sommer" <SommerFS@BP.com>, Mikel Schultz <Mikel.Schultz@BP.com>, "Nick W. Glover" <GloverNW@BP.com>, "Daryl J. Kleppin" <KleppiDE@BP.com>, "Janet D. Platt" <PlattJD@BP.com>, "Rosanne M. Jacobsen" <JacobsRM@BP.com>, ddonkel <ddonkel@cfl.rr.com>, mckay <mckay@gci.net>, Barbara F Fullmer <barbara.f.fullmer@conocophillips.com>, Charles Barker <barker@usgs.gov> , doug_schultze <doug_schultze@xtoenergy.com>, Hank Alford <hank.alford@exxonmobil.com>, Mark Kovac <yesnol@gci.net>, gspfoff <gspfoff@aurorapower.com>, Gregg Nady <gregg.nady@shell.com>, Fred Steece <fred.steece@state.sd.us>, rcrotty <rcrotty@ch2m.com>, jejones <jejones@aurorapower.com>, dapa <dapa@alaska.net>,jroderick <jroderick@gci.net>, eyancy <eyancy@seal-tite.net>, "James M. Ruud" <james.m.ruud@conocophillips.com>, Brit Lively <mapalaska@ak.net>,jah <jah@dnr.state.ak.us>, buonoje <buonoje@bp.com>, Mark Hanley <mark_hanley@anadarko.com>" Julie Houle <julie_houle@dnr.state.ak.us>, John W Katz <jwkatz@sso.org>, tablerk <tablerk@unocal.com>, Brady <brady@aoga.org>, Brian Havelock <beh@dnr.state.ak.us>, bpopp <bpopp@borough.kenai.ak.us>, Jim White <jimwhite@satx.rr.com>, "John S. Haworth" <john.s.haworth@exxonmobil.com>, marty <marty@rkindustrial.com>, ghammons <ghammons@aol.com>, nnclean <rmclean@pobox.alaska.net>, mkm7200 <mkm7200@aol.com>, Brian Gillespie <ifbmg@uaa.alaska.edu>, David L Boelens <dboelens@aurorapower.com>, Todd Durkee <TDURKEE@KMG.com>, Gary Schultz <gary_schultz@dnr.state.ak.us>, Wayne Rancier <RANCIER@petro-canada.ca>, Brandon Gagnon <bgagnon@brenalaw.com>, Paul Winslow <pmwinslow@forestoil.com>, Sharmaine Copeland <copelasv@bp.com>, Kristin Dirks <kristin_dirks@dnr.state.ak.us>, Kaynell Zeman <kjzeman@marathonoil.com>, John Tower <John.Tower@eia.doe.gov>, Bill Fowler <Bill_Fowler@anadarko.COM>, Scott Cranswick <scott.cranswick@mms.gov>, Brad McKim <mckimbs@BP.com>, Steve Lambe <lambes@unocal.com>, jack newell <jacknewell@acsalaska.net>, James Scherr <james.scherr@mms.gov>, nI617@conocophillips.com, Tim Lawlor <Tim_Lawlor@ak.blm.gov>, Lynnda Kahn <Lynnda_Kahn@fws.gov>, Jerry Dethlefs <Jerry.C.Dethlefs@conocophillips.com>, crockett@aoga.org, Tamera Sheffield <sheffield@aoga.org>, Jon Goltz <Jon.Goltz@conocophillips.com>, Roger Belman <roger.belman@conocophillips.com>, Mindy Lewis <mlewis@brenalaw.com>, Kari Moriarty <moriarty@aoga.org>, Patty Alfaro <palfaro@yahoo.com>, Jeff <smetankaj@unocal.com>, , Gary Rogers <gary Jogers@revenue.state.ak.us>, Arthur Copoulos <Arthur_Copoulos@dnr.state.ak.us>, Ken <ken@secorp-inc.com>, Steve Lambert <salambert@unocal.com>, Joe Nicks <news@radiokenai.com>, Jerry McCutcheon <susitnahydronow@yahoo.com>, Bill Walker <bill-wwa@ak.net>, Iris Matthews <Iris_Matthews@legis.state.ak.us>, Paul Decker <paul_decker@dnr.state.ak.us>, Aleutians East Borough lof2 12/15/20062:48 PM C0443A-002 (CRU) and AI04E-007 (CanCeUatiI . <admin@aleutianseast.org>, Marquerite kremer <marguerite_kremer@dnr.state.ak.us>, Mike Mason <mike@kbbi.org>, Garland Robinson <gbrobinson@marathonoil.com>, Cammy Taylor <Camille_Taylor@law.state.ak.us>, Winton GAubert <winton_aubert@admin.state.ak.us>, Thomas E Maunder <tom_maunder@admin.state.ak.us>, Stephen F Davies <steve_davies@admin.state.ak.us>, Keith Wiles <kwiIes@marathonoil.com>, Deanna Gamble <dgamble@kakivik.com>, James B Regg <jimJegg@admin.state.ak.us>, Catherine P Foerster <cathy_foerster@admin.state.ak.us>, Bob <Bob@fairweather.com>, gregory micallef <micallef@clearwire.net>, Laura Silliphant <laura _ silliphant@dnr.state.ak.us>, David Steingreaber <david.e.steingreaber@exxonmobil.com>, akpratts@acsalaska.net, Robert Campbell <Robert.Campbell@reuters.com>, Steve Moothart <steve _ moothart@dnr.state.ak.us>, Anna Raff <anna.raff@do\\jones.com>, Cliff Posey <cliff@posey.org>, Paul Bloom <paul_bloom@ml.com>, Meghan Powell <Meghan.Powell@asrcenergy.com>, Temple Davidson <temple_davidson@dnr.state.ak.us>, Walter Featherly <WFeatherly@PattonBoggs.com>, Tricia Waggoner <twaggoner@nrginc.com>, Mike Stockinger <Mike.Stockinger@anadarko.com>, , Arthur C Saltmarsh <art _saltmarsh@admin.state.ak.us>, Cynthia B Mciver <bren _ mciver@admin.state.ak.us> Jody Colombie <jody colombie(a?admin.state.ak.us> Special Staff Assistant Alaska Oil and Gas Conservation Commission Department of Administration Content-Type: application/pdf co443A.02.pdf . Content-Encodmg: base64 Content-Type: application/pdf AI04E-007.pdf Content-Encoding: base64 20f2 12/15/20062:48 PM Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise, ID 83702 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 North Slope Borough PO Box 69 Barrow, AK 99723 . David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 Ivan Gillian 9649 Musket Bell Cr.#5 Anchorage, AK 99507 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 . Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 \ e; 1,; 19 \(\/\0- \ {6 ,D r \~' �)ffmE ALASKA O SARAH PAL/N, GOVERNOR AlFjA►7K OIL AND GAS 333 W 7thAVENUE, SUITE 100 CONSERVATION COMMMISSION ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 ADMINISTRATIVE APPROVAL NO. CO 443A.003 ADMINISTRATIVE APPROVAL NO. CO 562.001 ADMINISTRATIVE APPROVAL NO. CO 563.001 ADMINISTRATIVE APPROVAL NO. CO 569.001 Ms. Maria Kemner Alpine Production Engineer ConocoPhillips Alaska, Inc. PO Box 100360 Anchorage, AK 99510-0360 Re: Allowable Gas Off Take Rate for the Colville River Unit Dear Ms. Kemner: On February 8, 2007, ConocoPhillips Alaska, Inc. ("ConocoPhillips") applied to the Alaska Oil and Gas Conservation Commission ("Commission") to establish an allowable gas off take rate to permit shipping gas from the Colville River Field ("CRF") to the Village of Nuiqsut. The maximum allowable gas off take requested for the CRU is 1 million standard cubic feet per day ("MMCFPD"). This allowable gas off take rate would apply to all currently defined pools within the CRF and any future pools within the CRF that commingle production at the Alpine Central Facility ("ACF"). In the application and during a Commission Public Hearing on November 28, 2006, ConocoPhillips demonstrated an obligation to provide up to 1 MMCFPD for the Village of Nuiqsut under the terms of a contract between ConocoPhillips predecessor Arco Alaska, Inc. and Kuukpik Corporation. The North Slope Borough, acting on behalf of the Village of Nuiqsut and Kuukpik Corporation, is currently in the process of commissioning a gas transmission line from the ACF to the village. Under the authority of Alaska Statute 31.05.030(e)(1)(F) the Commission has determined that establishing an allowable gas off take rate for the CRF is necessary to ensure conservation of resources. There are currently four defined oil pools within the Colville River Unit. These are: 1. Alpine Oil Pool, established by Conservation Order ("CO") 443 on March 15, 1999, and later expanded by CO 443A on October 7, 2004; 2. Nanuq Oil Pool, established by CO 562 on December 6, 2005; 3. Nanuq-Kuparuk Oil Pool, established by CO 563 on December 5, 2005; and 4. Fiord Oil Pool, established by CO 569 on July 21, 2006. Production from these pools is being commingled and processed at the ACF. All produced gas is either being consumed within the CRF for operational purposes or re -injected to enhance oil recovery from the pools within the CRF. . . Ms. Maria Kemner February 13, 2007 Page 2 of2 Rule 11 of CO 443A states: "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 10ng as the change does not promote waste, jeopardize correlative rights, or compromise ultimate recovery and is based on sound engineering principles." Rule 12 of CO 562, CO 563, and CO 569 states: "unless notice and public hearing are otherwise required, the Commission may administratively waive the requirements of any rule stated above or administratively amend any rule as long as the change does not promote waste or jeopardize correlative rights, is based upon sound engineering and geoscience principles, and will not result in an increased risk of fluid movement into fresh water." The Commission has determined that a 1 MMCFPD allowable gas off take rate for the CRF will not promote waste, jeopardize correlative rights, or compromise ultimate recovery and that notice and public hearing are not required to establish an allowable gas off take rate. This proposal is based upon sound engineering and geoscience principles, and will not result in an increased risk of fluid movement into fresh water. Therefore, the Commission hereby approves ConocoPhillips requested gas off take rate with the following conditions: 1. The cumulative gas offtake rate from the CRF must not exceed 1 MMCFPD. 2. Natural gas may not be severed from the CRF for any other purpose than to meet ConocoPhillips' contractual obligations of providing the Village of Nuiqsut with natural gas. 3. Any new pools that process production at the ACF will be subject to the terms of this administrative approval. As provided in AS 31.05.080, within 20 days after written notice of this 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 rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. orage, Alaska and dated February 13, 2007. ~ J Chairman Daniel T. Seamount, Jr. Commissioner f!!þ~ CommIssioner aio 18b-003 CRU CD2-48 . . Subject: aio 18b-003 CRU CD2-48 From: Jody Colombie <jody _ colombie@admin.state.ak.us> Date: Tue, 13 Feb 2007 13:48:36 -0900 To: undisclosed-recipients:; BCC: Cynthia B Mciver <bren_mciver@admin.state.ak.us>, Christine Hansen <c.hansen@iogcc.state.ok.us>, Terrie Hubble <hubbletl@bp.com>, Sondra Stewman <StewmaSD@BP.com>, stanekj <stanekj@unocal.com>, ecolaw <ecolaw@trustees.org>, trmjrl <trmjr 1 @aol.com>, jdarlington <jdarlington@forestoil.com>, nelson <knelson@petroleumnews.com>, cboddy <cboddy@usibelli.com>, Mark Dalton <mark.dalton@hdrinc.com>, Shannon Donnelly <shannon.donnelly@conocophillips.com>, "Mark P. Worcester" <mark.p.worcester@conocophillips.com>, Bob <bob@inletkeeper.org>, wdv <wdv@dnr.state.ak.us>, tjr <tjr@dnr.state.ak.us>, bbritch <bbritch@alaska.net>, mjnelson <mjnelson@purvingertz.com>, Charles O'Donnell <charles.o'donnell@veco.com>, "Randy L. Skillern" <SkilleRL@BP.com>, "Deborah J. Jones" <JonesD6@BP.com>, "Steven R. Rossberg" <RossbeRS@BP.com>, Lois <lois@inletkeeper.org>, Dan Bross <kuacnews@kuac.org>, Gordon Pospisil <PospisG@BP.com>, "Francis S. Sommer" <SommerFS@BP.com>, Mikel Schultz <Mikel.Schultz@BP.com>, "Nick W. Glover" <GloverNW@BP.com>, "Daryl J. Kleppin" <KleppiDE@BP.com>, "Janet D. Platt" <PlattJD@BP.com>, "Rosanne M. Jacobsen" <JacobsRM@BP.com>, ddonkel <ddonkel@cfl.rr.com>, mckay <mckay@gci.net>, Barbara F Fullmer <barbara.f.fullmer@conocophillips.com>, Charles Barker <barker@usgs.gov>, doug_schultze <doug_schultze@xtoenergy.com>, Hank Alford <hank.alford@exxonmobil.com>, Mark Kovac <yesnol@gci.net>, gspfoff <gspfoff@aurorapower.com>, Gregg Nady <gregg.nady@shell.com>, Fred Steece <fred.steece@state.sd.us>, rcrotty <rcrotty@ch2m.com>, jejones <jejones@aurorapower.com>, dapa <dapa@alaska.net>, jroderick <jroderick@gci.net>, eyancy <eyancy@seal-tite.net>, "James M. Ruud" <james.m.ruud@conocophillips.com>, Brit Lively <mapalaska@ak.net>, jah <jah@dnr.state.ak.us>, buonoje <buonoje@bp.com>, Mark Hanley <mar~hanley@anadarko.com>, Julie Houle <julie_houle@dnr.state.ak.us>, John W Katz <jwkatz@alaskadc.org>, tablerk <tablerk@unoca1.com>, Brady <brady@aoga.org>, Brian Havelock <beh@dnr.state.ak.us>, bpopp <bpopp@borough.kenai.ak.us>, Jim White <jimwhite@satx.rr.com>, "John S. Haworth" <john.s.haworth@exxonmobi1.com>, marty <marty@rkindustrial.com>, ghammons <ghammons@ao1.com>, rmc1ean <rmclean@pobox.alaska.net>, mkm7200 <mkm7200@aol.com>, Brian Gillespie <ifbmg@uaa.alaska.edu>, David L Boelens <dboelens@aurorapower.com>, Todd Durkee <TDURKEE@KMG.com>, Gary Schultz <gary_schultz@dnr.state.ak.us>, Wayne Rancier <RANCIER@petro-canada.ca>, Brandon Gagnon <bgagnon@brenalaw.com>, Paul Winslow <pmwinslow@forestoi1.com>, Sharmaine Copeland <copelasv@bp.com>, Kristin Dirks <kristin_dirks@dnr.state.ak.us>, Kaynell Zeman <kjzeman@marathonoil.com>, John Tower <John.Tower@eia.doe.gov>, Bill Fowler <Bill_Fowler@anadarko.COM>, Scott Cranswick <scott.cranswick@mms.gov>, Brad McKim <mckimbs@BP.com>,jack newell <jack.newell@acsalaska.net>, James Scherr <james.scherr@mms.gov>, nI617@conocophillips.com, Tim Lawlor <Tim_Lawlor@ak.blm.gov>, Lynnda Kahn <Lynnda_Kahn@fws.gov>, Jerry Dethlefs <Jerry.C.Dethlefs@conocophillips.com>, crockett@aoga.org, Tamera Sheffield <sheffield@aoga.org>, Jon Goltz <Jon.Goltz@conocophillips.com>, Roger Belman <roger.belman@conocophillips.com>, Mindy Lewis <mlewis@brenalaw.com>, Karl Moriarty <moriarty@aoga.org>, Patty Alfaro <palfaro@yahoo.com>, Jeff <smetankaj@unocal.com>, Gary Rogers <gary_rogers@revenue.state.ak.us>, Arthur Copoulos <Arthur_Copoulos@dnr.state.ak.us>, Ken <klyons@otsintl.com>, Steve Lambert <salambert@unoca1.com>, Joe Nicks <news@radiokenai.com>, Jerry McCutcheon <susitnahydronow@yahoo.com>, Bill Walker <bill-wwa@ak.net>, Iris Matthews <Iris _ Matthews@legis.state.ak.us>, Paul Decker <paul_ decker@dnr.state.ak.us>, Aleutians East Borough lof2 2/15/20077:26 PM aio18b-003 CRU CD2-48 . . <admin@aleutianseast.org>, Marquerite kremer <marguerite_kremer@dnr.state.ak.us>, Mike Mason <mike@kbbi.org>, Garland Robinson <gbrobinson@marathonoi1.com>, Cammy Taylor <Camille_Taylor@law.state.ak.us>, Thomas E Maunder <tom_maunder@admin.state.ak.us>, Stephen F Davies <steve_davies@admin.state.ak.us>, Keith Wiles <kwiles@marathonoil.com>, Deanna Gamble <dgamble@kakivik.com>, James B Regg <jimJegg@admin.state.ak.us>, Catherine P Foerster <cathy_foerster@admin.state.ak.us>, Bob <Bob@fairweather.com>, gregory micallef <micallef@clearwire.net>, Laura Silliphant <laura _ silliphant@dnr.state.ak.us>, David Steingreaber <david.e.steingreaber@exxonmobil.com>, akpratts@acsalaska.net, Robert Campbell <Robert.Campbell@reuters.com>, Steve Moothart <steve_moothart@dnr.state.ak.us>, Anna Raff <anna.raff@dowjones.com>, Cliff Posey <cliff@posey.org>, Paul Bloom <paul_bloom@m1.com>, Meghan Powell <Meghan.Powell@asrcenergy.com>, Temple Davidson <temple _ davidson@dnr.state.ak.us>, Walter Featherly <WFeatherly@PattonBoggs.com>, Tricia Waggoner <twaggoner@nrginc.com>, Mike Stockinger <Mike.Stockinger@anadarko.com>, John Spain <jps@stateside.com>, Cody Rice <Cody_Rice@legis.state.ak.us>, John Garing <garingJD@bp.com>, Harry Engel <engelhr@bp.com>, Jim Winegarner <jimwinegarner@brooksrangepetro.com>, Matt Rader <matt_rader@dnr.state.ak.us>, carol smyth <caro1.smyth@shell.com>, Arthur C Saltmarsh <art_saltmarsh@admin.state.ak.us>, Chris Gay <cdgay@marathonoi1.com>, foms@mtaonline.net, Rudy Brueggeman <rudy.brueggemann@intemational.gc.ca> Jody Colombie> Special Staff Assistant Alaska Oil and Gas Conservation Commission Department of Administration Content-Type: application/pdf aio18b-003.pdf Content-Encoding: base64 2of2 2/15/20077:26 PM . Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise, ID 83702 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 SOldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 North Slope Borough PO Box 69 Barrow, AK 99723 David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 Ivan Gillian 9649 Musket Bell Cr.#5 Anchorage, AK 99507 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 SOldotna, AK 99669-2139 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 . Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Kart K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 \aV C): #11 . . Colville River Unit Gas OffTake Analysis Background: On February 8, 2007, ConocoPhillips Alaska, Inc. ("CPAI") applied for an allowable gas off take rate for the Colviller River Unit ("CRU"). Through an agreement between their predecessor Arco Alaska, Inc. and Kuukpik Corporation, CP AI is obligated to provide the village ofNuiqsut a limited volume of natural gas. According to the terms ofthe agreement, if there is just one producing pool in the CRU CPAI is obligated to supply up to 500 thousand standard cubic feet of gas per day ("MCFPD") to the village, iftwo or more pools are on production then the obligation increases to 1 million standard cubic feet of gas per day ("MMCFPD"). The North Slope Borough ("NSB") is in the process of acquiring the permits necessary to commission the pipeline ITom the CRU to the village, and expects to be able to begin gas deliveries sometime this winter. The NSB is estimating that actual gas deliveries to the village will be 500 MCFPD or less; however, this analysis will evaluate the effects of the maximum rate allowed under the terms of the land use agreement. CP AI must have an allowable gas off take rate for pools within the CRU before severing gas ITom the unit. There are currently four defined pools in the CRU: Alpine Oil Pool (C0443A), Nanuq Oil Pool (C0562), Nanuq-Kuparuk Oil Pool (C0563), and Fiord Oil Pool (C0569). Exploration and development activities are ongoing in the CRU, and it is possible that additional pools will be established in the future. Production from all existing pools, and likely ITom any future pools, is being commingled and processed in the Alpine Central Facility ("ACF"). Since all production is commingled prior to processing and sales metering, it is impossible to establish a specific gas off take rate for a specific pool and thus a gas off take rate must be established for the unit. Analysis: The Alpine Oil Pool has been on regular production since November 2000, with the other pools coming on production much more recently. Total production from the CRU, through October 2006, is 221.6 million barrels of oil ("MMBO"), 255.5 billion standard cubic feet of gas ("BCFG"), and 7.1 million barrels of water ("MMBW"). For 2006, production ITom the unit has averaged approximately 125 thousand barrels of oil per day, 150MMCFPD, and 15 thousand barrels of water per day ("MBWPD"). The pools in the CRU are all being developed using enhanced recovery methods. To date, the total injection volumes for the unit are 223.3 BCFG and 218.1 MMBW. For 2006, injection rates have averaged 130 MMCFPD and 135 MBWPD. Based upon the 2003 through 2005 Annual Report of Injection Project filings by CP AI for the CRU, the formation volume factor for injected gas has averaged about 0.76 reservoir barrels per thousand standard cubic feet of gas ("RB/MSCF"). Assuming that injected water is ,.", . . essentially incompressible and applying the injection gas formation volume factor yields a current reservoir voidage replacement rate of approximately 233.8 thousand reservoir barrels per day (135 thousand reservoir barrels of water per day + 130 MMCFPD * 0.76 RB/MSCF). The maximum gas shipment rate provided for in the agreement between CP AI and the Kuukpik Corporation is 1 MMCFPD. This volume would be deducted from the gas that is available for re-injection into the pools for pressure maintenance and miscible gas injection processes. Applying the same formation volume factor for the injection gas stream that is used above yields a maximum potential voidage replacement loss of 760 reservoir barrels per day. In their application CP AI stated that the as long as miscible injectant is manufactured at the ACF there will be a significant amount oflean gas that will be injected into the Alpine Oil Pool. Currently this gas is injected into well CD 1-06 and does not provide any enhanced recovery benefits as that area of the field has already been effectively swept. During 2006 injection in the CD1-06 well averaged almost 9 MMCFPD. Therefore, even with exporting up to 1 MMCFPD there will still be excess lean gas within the unit and the manufacture of miscible injectant will not be affected. Conclusion: The total loss in daily reservoir voidage replacement rate is about 0.3% at the maximum allowable gas shipping rate and current operating conditions. This small amount will not have a significant effect on ultimate recovery from the unit. Additionally, the more miscible components of the gas stream will be stripped before gas is shipped to the village and will re-enter the gas injection stream. Since a gas offtake rate of up to 1 MMCFPD will not promote waste, it is appropriate to establish a gas off take rate for the CRU via administrative approvals. Since all CRU pools are currently commingled, it will be necessary to issue an administrative approval that amends the pool rules for each of the four current pools. These administrative approvals will establish a gas off take rate for the entire unit, not each individual pool. Rules for future CRU pools that commingle production at the ACF must also include~ rule recognizing the CRU gas offtake rate. DS Roby Ú4<'^'/ Reservoir Engtlí~""" February 13, 2007 #10 . . y ConocoPhillips Alaska, Inc. Maria Kemner Alpine Production Engineer 700 G Street, A TO-1764 Post Office Box 100360 Anchorage, Alaska 99510-0360 Telephone 907-265-6945 February 8, 2007 RECEIVED FEB 0 8 2007 Alaska Oil & Gas Cons. Commission Anchorage Mr. John Norman Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 RE : Gas Allowable Colville River Field Alpine Oil Pool Fiord Oil Pool N anuq Oil Pool Nanuq-Kuparuk Oil Pool Dear Mr. Norman: ConocoPhillips Alaska, Inc. ("ConocoPhillips") and Anadarko Petroleum Company are contractually committed to provide Kuukpik Corporation with up to one million cubic feet of natural gas per day (1,000 mcfd) from the Colville River Field. This natural gas is to be delivered to Kuukpik or its successors, assignees, or licensees at the custody transfer meter at the Alpine Central Facility ("ACF"). Kuukpik or its successors, assignees, or licensees will then transport the natural gas to the village of Nuiqsut. Initial deliveries are expected to commence in Spring 2007. The regulations promulgated by the Alaska Oil and Gas Conservation Commission ("Commission") do not expressly address gas allowables or specify procedures for Commission approval of natural gas production from an oil field, and most existing pool rules do not address the issue. However, we recognize the authority of the Commission under AS 31.05.030(e)(1)(F) to regulate for conservation purposes the quantity and rate of production of gas from a property. For the reasons set forth below, ConocoPhillips, as operator and on behalf of the working interest owners of the Colville River Unit, seeks Commission approval of the above-referenced gas deliveries to Kuukpik on the grounds that this offtake is consistent with good oilfield engineering practices and conservation purposes. The Colville River Field is comprised of the Alpine Oil Pool, the Fiord Oil Pool, the Nanuq Oil Pool, and the Nanuq-Kuparuk Oil Pool, which are all processed through the ACF. As part of the miscible gas enhanced oil recovery ("EOR") project conducted in the Colville River Field, natural gas is transferred among the above-referenced oil pools and commingled. . . February 8, 2007 Page 2 of2 The miscible gas for the EOR project is manufactured at the ACF by removing heavy components from the produced gas and then blending them into a portion of the available lean gas. The high-pressure lean gas not blended with the extracted liquids is injected into the top of the Alpine Oil Pool at CD1-06 and acts as a ready source of fuel to restart the ACF as needed. This lean gas no longer participates in the recovery of oil from the Alpine Oil Pool. Before the CDI-09 production well was shut in last year, this gas provided additional reservoir pressure support in the CD1-09 pattern. However, since the CD1-09 production well has been shut in due to reaching full recovery, the gas injected at CDI-06 no longer provides pressure support and is only used for gas storage. As long as miscible gas is manufactured at the ACF, there will be a significant amount of lean gas that needs to be injected into the Alpine Oil Pool. Thus, diverting up to 1,000 mcfd of lean gas from injection to gas sales will not have a measurable impact on production or ultimate recovery of oil from the Colville River Field oil pools. Because the volume of miscible gas available for injection will remain unchanged, the diversion will not impact the Colville River Field EOR project. In conclusion, pursuant to Rule 10 of Conservation Order No. 443 (Alpine Oil Pool), Rule 12 of Conservation Order No. 562 (Nanuq Oil Pool), Rule 12 of Conservation Order No. 563 (Nanuq- Kuparuk Oil Pool), and Rule 12 of Conservation Order No. 569 (Fiord Oil Pool), ConocoPhillips asks the Commission to administratively approve gas deliveries of up to 1,000 mcfd from the Colville River Field beginning in Spring 2007. If you have any questions concerning this request, please contact me at 265-6945. Sincerely, 1J/(~~ Maria Kemner CD 1 Production Engineer c: David Hodges, North Slope Borough Lanston Chinn, Kuukpik Corporation Marlene Staley, Anadarko #C} . Conoc~hillips Alaska, Inc. . Maria Kemner Alpine Production Engineer 700 G Street, A TO-1764 Post Office Box 100360 Anchorage, Alaska 99510-0360 Telephone 907-265-6945 December 4, 2006 RECEt\/ED DEC 0 6 L006 Alaska Oil & Gas Cons. commission Anchorage Mr. John Norman Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 Dear Mr. Norman: ConocoPhillips Alaska, Inc. submits a waiver request to temporarily allow the CD1-04 Alpine producer to be eliminated :trom the required monthly testing per Alpine Oil Pool rules. The CDI-04 Alpine producer cannot be tested due to scale build-up in the production/test divert valve. Logistics are currently being formulated to acid wash the flowline. The well was last tested for allocation on November 5,2006. At this time production volumes are being estimated based on surface measurements including, flowing tubing pressure, flowing tubing pressure, and water cut. Please wave the testing requirements through November and December. Should you have any comments or concerns, please feel :tree to contact me at (907-265-6945) at your converuence. Sincerely, J![~0~ CD 1 Production Engineer ~ß AA CO 443A.00I Follow up e e c...a ~ '-\ S ~ Tom, Jim, ;lOI.{-\SO dOS-C> Co ~~ As a fOllowlup to AA CO\. 43A.001 allowing the temporary removal of injection valves from CRU ;)Oy\\~~C02-55, C02-56, C02-~f: which expired 8/31/06, this email is to notify the commission that the injection valves have been reinstalled and function tested as of 8/31/06 on all three wells. The wells are still SI but can be available for State Inspector Witnessed SSSV testing if requested. Please let me know if you need any additional details or a more formal notification that the injection valves have been installed. MJ Loveland ConocoPhillips Alaska Well Integrity Project Supervisor Office (907) 659-7043; Cel (907) 448-3114 I of I 9/5/2006 9:39 AM #7 CO 443A.00l, AI04E.00l, AI04E.002, AI04C.005 e e . e Hubble .gov>, om>, lof2 5/19/20069:26 AM CO 443A.00l, AI04E.00l, AI04E.002, AI04C.005 e e Jerry McCutcheon <susitnahydrono d <paulto@acsalaska.net>, Bill Walker <bill-wwa@ak.net>, Iris Matthews <In _ s@le .us>, Paul Decker <paul_decker@dnr.state.ak.us>, Rob Dragnich <rob.g.dr xonmobil.com>, Aleutians East Borough <admin@ ·anseast.org>, Marqueri emer <marg teJaemer@dnr.state.ak.us>" Alicia Konsor <alic nsor@dnr.state.ak.us> e Mason <mike@kbbi.org>, Garland Robinson <gbrobinson@mara m>, C ylor@law.state.ak.us>, Winton GAubert <winton_aubert@a .us>, _maunder@admin.state.ak.us>, Stephen F Davies <steve_davies@admin.state.ak.us>, wiles@marathonoil.com> . Content-Type: application/pdf AI04E-002.pdf . Content-Encodmg: base64 ontent- Type: Content-Encoding: base64 Content-Type: application/pdf AI04C-005 Cancellation.pdf C d· b 64 ontent-Enco mg: ase 20f2 5/19/20069:26 AM Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise, ID 83702 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 e David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 North Slope Borough PO Box 69 Barrow, AK 99723 e Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 Ivan Gillian 9649 Musket Bell Cr.#5 Anchorage, AK 99507 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 · \e,ð/ 0 (J ffi~\ ~ ').. \ \ \ J' RE: Request for Alpine SSSV variance e e Jim, I'm following up on this request, it appears that our new guy sent it to the wrong place. I wanted to make sure you got it since Alpine would like to pull the SSSV's this week and begin monitoring the 3 SI wells. Please advise if this is acceptable. MJ Loveland ConocoPhillips Alaska Well Integrity Project Supervisor Office (907) 659-7043; Cel (907) 448-3114 -----Original Message----- From: NSK Problem Well Supv Sent: Tuesday, May 16, 2006 9:19 AM To: bob_fleckenstein@admin.state.ak.us Subject: Request for Alpine SSSV variance Bob, In order to monitor offset wells to the planned CD4-16 D&C; ConocoPhillips would like to monitor the surface pressure's of injection wells CD2-55,56,60 (All SI). In order to do this, we would like to leave the A-1 inj. valve out of the hole until early August. ConocoPhillips requests a variance from the state rule that all Alpine wells require an operational SSSV. The wells will remain shut in during the monitoring period with the exception of a 1 hour period every two weeks where the master will be opened to monitor tubing pressure. To bring the well back online ConocoPhiUips would have 15 days to install a functioning SSSV per state rule. Sincerely Perry Klein Problem Wells Supervisor ConocoPhillips Alaska Inc. Office 907-659-7224 Cell 907 -943-1244 1 of 1 5/18/2006 2: 17 PM ... Conservation Order 443_ October 7, 2004 ALp':'~ e Page 7 '. Rule 4 Drillin1! and Completion Practices (Restated from CO 443) a. After drilling no more than 50 feet below a casing shoe set in the AOP, a formation integrity test must be conducted. The test pressure need not exceed a predetermined pressure. b. Casing and completion designs may be approved by the Commission upon applica- tion and presentation of data that demonstrate the designs are appropriate and based upon sound engineering principles. c. Permit(s) to Drill deviated wells within the AOP shall include a plat with a plan view, vertical section, close approach data and a directional program description in lieu of the requirements of20 AAC 25.050(b). d. A complete petrophysical log suite acceptable to the Commission is required from below the conductor to TD for at least one well on each drilling pad in lieu of the re- quirements of 20 AAC 25.07I(a). The Commission may, in its discretion, require additional wells on a pad to be logged using a complete petrophysical log suite. Rule 5 Automatic Shut-in Equipment (Restated from CO 443) a. All production and gas injection wells must be equipped with a fail-safe automatic surface safety valve ("SSV") and a surface controlled subsurface safety valve ("SSSY"). b. Water injection wells must be equipped with either a double check valve arrangement or a single check valve and SSY. c. Safety Valve Systems ("SYS") must be tested on a six-month frequency. Sufficient notice must be given so that a representative of the Commission can witness the tests. d.' Subsurface safety valves may only be removed after demonstrating to the Commis- sion that the well is not capable of unassisted flow of hydrocarbons. Sufficient no- tice must be given so that a representative of the Commission can witness the tests. Rule 6 Reservoir Pressure Monitorin1! (Restated from CO 443) a. Prior to regular injection, an initial pressure survey shall be taken in each injection well. b. A minimum of six bottom-hole pressure surveys shall be measured annually. Bot- tom-hole surveys in paragraph (a) may fulfill the minimum requirement. c. The reservoir pressure datum shall be 7000 feet TYD 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 shall be reported annually 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 shall be made available to the Commission upon request. f. Results and data from special reservoir pressure monitoring tests or surveys shall also be submitted in accordance with part (e) of this rule. · Conservation Order 44a October 7, 2004 e Page 10 f' Rule 11 Administrative Action (Restated from CO 443) 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, jeopardize correlative rights, or compromise ultimate recovery and is based on sound engineering principles. DONE at Anchorage, Alaska and dated October 7, 2004. John K. Norman, Chair Alaska Oil and Gas Conservation Commission Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission AS 31.05.080 provides that within 20 days after receipt of written notice of the entry of an order, a person affected by it may file with the Commission an application for rehearing. A request for rehearing must be received by 4:30 PM on the 23'd day following the date of the order, or next working day if a holiday or weekend, to be timely filed. The Commission shall grant or refuse the application in whole or in part within 10 days. The Commission can refuse an application by not acting on it within the 10-day period. An affected person has 30 days from the date the Commission refuses the application or mails (or otherwise distributes) an order upon rehearing, both being the final order of the Commission, to appeal the decision to Superior Court. Where a request for rehearing is denied by nonaction of the Commission, the 30 day period for appeal to Superior Court runs from the date on which the request is deemed de- nied (i,e., 10th day after the application for rehearing was filed). "" ~ Safety Valve & Well Pressures Test Report Pad: CRU_CD2 Insp Dt 3/19/2006 Inspected by John Crisp Interval InspNo SVSOPOOOO02627 Related Insp: svsJCr060419122311 Field Name COLVILLE RIVER Operator CONOCOPHILLlPS ALASKA INC Operator Rep Gary Seltenteich Reason 180-Day Src: Operator Well Permit Separ Set LIP Test Test Test Date SI Oil,WAG,GINJ, Inner Outer Tubing Number Number PSI PSI Trip Code Code Code GAS,CYCLE, SI PSI PSI PSI Ves/No Ves/No I CD2-Ori 2051180 I 151 100 96 P P P OIL ~ WAG l CD2-0-2 2051090 '~2~~ 2050920 151 100 98 P P P OIL ,e hD2-05 1~40970 151 100 94 P P P OIL --j t CD2-06 ~031590 GINJ i -~ ~~:~ I 2031870 WAG I t-' GINJ I CD2-08 2022500 I CD2:09 I 2041290 151 100 99 P P P OIL I CD2-1O 2031950 151 100 99 P 6 P OIL Retest Date: 3/19/2006 ~ CD2-11 2051320 WAG CD2-12 2030730 GINJ i ~.- - CD2-13 2022030 151 100 97 P P P OIL Ie C~2~~~H: 11770 151 100 99 P P 9 OIL Rete,' Date: 3/27 /20~ CD2-15 2011590 GINJ -~ I CD2-16 I 2021440 WAG =1 CD2-17A 2050170 I WAG I I I CD2~i8 2031510 , _, " WAG =-J I CD~-19 12021120~J 100 P P OIL Thursday, May 18, 2006 , Pad: CRU_CD2 Insp Dt 3/19/2006 Inspected by John Crisp Interval Field Name COLVILLE RIVER Operator CONOCOPHILLIPS ALASKA INC InspNo SVSOP000002627 Operator Rep Gary Seltenteich Related Insp: svsJCr060419122311 Reason 180-Day Src: Operator Well Number Permit Number Separ Set LIP Test Test Test PSI PSI Trip Code Code Code Date SI Oil,WAG,GINJ, Inner GAS,CYCLE, SI PSI Outer Tubing PSI PSI Yes/No Yes/No I -CD2-20 I 2031 05ú I 15-=-~ 100 97 I~-_ I OIL I I =1 I~ == i -- , CD2-21 t 204245ú 151 100 97 ¡ P 11' p; j OIL i CD2-22 2020920 I WAG I I --- I CD2-23 I 2021340 151 100 96 P I P P OIL I i CD2-24 2010950 151 100 97 P P P OIL I l CD2-25 2020740 151 100 95 P P P OIL I _.·.._._m___. CD2-26 i 2012320 i GINJ I CD2-27 2031770 I WAG i i -. - CD2-28 I 2022170 151 100 93 P P P I OIL I I I _._~_.~--~ i CD2-29 2021480 i WAG ! I i , CD2-30 2031350 WAG I ---- CD2-31 2040820 151 100 96 P P P OIL ~-- CD2-32 2020290 WAG ----- I CD2-33B I 2011250 151 100 98 P P P OIL I i I I ----- -. _..~-"..__._._~.~ I CD2-34 2011910 151 I 100 98 P P P OIL I I I --~---_._._-- I I I CD2-35A 2022440 GINJ i I --- r---= I i I [ CD2-36 2030140 I I GINJ I I I I 1151 -- I CD2-37 2022110 100 96 P P P OIL I~D2-38 2021710 GINJ I I I i CD2-39 2011600 151 100 97 P P 9 OIL Retest Date: 3/30/2006 I I I I L e e Thursday, May 18,2006 " Pad: CRU_CD2 Insp Dt 3/19/2006 Inspected by John Crisp Interval Field Name COLVILLE RIVER Operator CONOCOPHILLIPS ALASKA INC InspNo SVSOP000002627 Operator Rep Gary Seltenteich Related Insp: svsJCr060419122311 Reason 180-Day Src: Operator Well Number Permit Number Separ Set LIP Test Test Test PSI PSI Trip Code Code Code Date SI Oil,WAG,GINJ, Inner GAS,CYCLE, SI PSI Outer Tubing PSI PSI Yes/No Yes/No t: í 2031260 WAG I I ! CD2-40 ~D2-41 - 2021260 151 100 99 P P P OIL I I CD2-42 2010670 151 100 97 P P P I OIL I I I ! í I ! ~--_.~ -- ,-----~.~-~- -- í CD2-43 2031970 151 100 97 P P P OIL i i CD2-44 2021650 WAG ! --------------.-------.- CD2-45 2012120 151 100 97 P P P OIL CD2-46 2020820 I WAG I CD2-47 2012050 151 100 98 P P P OIL I CD2-48 2021080 I GINJ I I ---- CD2-49 2012490 I GINJ CD2-50 i 2020490 151 100 97 P P P OIL I f-- I L~CD2-51 I 2022490 GINJ I i --. I -- ---- I CD2-52 I 2030930 151 100 96 P P P OIL I I I ! I I I CD2-53 2040890 3/12/2006 SI I i I i ! I ----- ¡ CD2-54 2041780 GINJ i ---- --". I CD2-56 2041500 I WAG i I I I ~ I -- i CD2-57 2040720 WAG I I ¡- Ci)2~58~ 2030850 I WAG CD2-60 ~0680 I 1 3/7/2006 SI -j I I I e e « Thursday, May 18,2006 Pad: CRU_C02 Insp Dt 3/19/2006 Inspected by John Crisp Interval Field Name COLVILLE RIVER Operator CONOCOPHILLIPS ALASKA INC InspNo SVSOP000002627 Operator Rep Gary Seltenteich Related Insp: svsJCr06041912231I Reason 180-Day Src: Operator Well Number Permit Number Separ Set LIP Test Test Test PSI PSI Trip Code Code Code Date SI Oil,WAG,GINJ, Inner GAS,CYCLE, SI PSI Outer PSI Tubing PSI YeslNo YeslNo Comments Performance CD2-41, C02-42, CD2-43, CD2-45, CD2-47, CO2-50, CD2-52 were tested 3/20/06 CD-1O had a frozen SSV & would not close, The valve was thawed & retested OK. CD2-l4 SSSV was serviced and retested good 3/27/06 CD2-39 SSSV was serviced and retested good 3/30/06 Failures Failure Rat;--l 3 3.85% i ----~- I Wells Components 26 78 e e Thursday, May 18, 2006 #6 Re: CP AI weekly SCP report 2/5/06 e e Subject: Re: CPAI \\leekly SCP report 2/5/06 From: Thomas Maunder <tom_maundcr@.admin.stalc.ak.lls> n~lte: Wed, 08 Fcb 2006 14:28: 17 -0900 To: NSK Problcm Well SllpV <11 1.617@collocophillips.com> cc: James Regg <:jim.Jcgg@admin.state.ak.us>, Cathy Foerster <cathLJC)Crstcr(itadmin.state.ak.lls> Jerry, Marie, MJ, et aI, Lately we at AOGCC have found the weekly SCP report to have very limited usefulness. Accordingly, the Commission hereby terminates the requirement for the weekly SCP report. All other reporting requirements are unchanged. ~o L\L.\~~ .. ~<;~ 4c;Ç 5OÇo S-o'\ Tom Maunder, PE AOGCC NSK Problem Well Supv wrote, On 2/5/20067:50 PM: Tom & Jim, Attached is the weekly producer SCP report for 2/5/06. Please let me know if there are any questions. Marie McConnell Problem Well Supervisor 659-7224 «02-05-06 CPA Producer Weekly SCP Report.xls» 1 of 1 2/8/20062:43 PM #5 ) ~ ConocoPhillips Alaska, Inc. ) Michael D. Erwin Operations Supervisor Post Office Box 100360 Anchorage, Alaska 99510-0360 Telephone 907-263-4464 August 11, 2005 Mr. J. Norman, Chairman Alaska Oil and Gas Conservation Commission 333 W. ih Ave., Suite 100 Anchorage, Alaska 99501 RECEIVED AUG 1 8 2005 Alaska Oil & Gas c loIons. Com.miss;or¡ Anchorage RE: Conservation Order No. 443A Colville River Field Pool Rules Dear Chairman Norman: With respect to the Commission's revision last fall to the Colville River Field's Pool Rules (C.O. 443A dated October 7,2004), ConocoPhillips Alaska Inc., Operator of the Colville River Field, has recently identified items that we believe should be changed: 1. The caption on page 1 of C.O. 443A incorrectly identifies the Field as the "Alpine Field". The correct name is the "Colville River Field" in accordance with Rule 1 of C.O. 443 and c.o. 443A. 2. Rule 5.a in C.O. 443A states "All production and gas injection wells must be equipped with a fail-safe automatic surface safety valve ("SSV") and a surface controlled subsurface safety valve ("SSSV"). The words "surface controlled" were not included in the original conservation order. 3. Rule 5.b in C.O. 443A states "Water injection wells must be equipped with either a double check valve arrangement or a single check valve and SSV". The word "water" was not included in the original conservation order. Injection wells in the Alpine Oil Pool are water-alternating-gas (WAG) injection wells completed with fail-safe subsurface safety valves that are not surface controlled. ConocoPhillips Alaska Inc. recommends Rules 5.a and 5.b be modified as follows: · 5.a - "and gas injection" should be deleted. · 5.b - "Injection wells, including WAG, GINJ, and WINJ service wells per Form 10-407 Well Completion Report, must be equipped with either a double check valve arrangement or a single check valve and SSV. A subsurface-controlled injection valve satisfies the requirement of a single check valve." This language is consistent with the proposed Nanuq Pool Rules. We request the Commission administratively make these changes, in accordance with the Pool Rules. For additional information or supporting documentation, please contact me at 265-1478. ') ~ ConocoPhillips Alaska, Inc. ) ¡:¡~ ;;L Michael D. Erwin ~o t.. ('1; ~ (~íJlìJ cc: Mr. Mark Myers, Director Alaska Department of Natural Resources Division of Oil & Gas 550 W. 7th Avenue, Suite 800 Anchorage, Alaska 99501 Ms. Teresa Irom, Resource Development Manager Arctic Slope Regional Corporation 3900 C. Street, Suite 801 Anchorage, Alaska 99503-5963 Mr. Isaak Nukapigak, President Kuukpik Corporation PO Box 187 Nuiqsut, Alaska 99789-0187 Todd Liebel Anadarko Petroleum Corporation PO Box 1330 Houston, Texas 77251-1330 Alpine File #4 [Fwd: Re: [Fwd: FW: CD2-09 tlowback reque""'1 ) ) Subject: . [FWd:Re:[Fwd:F~:~E>t-~~fl()~~~c~·request]] From: J ohp.Hartz <j ack___h~r@actmil1.~ta.t~.~.u~» D~te:.\¥~?,.22....~.~p..~O.?~. .16:~7:t~-?8q?....... ........ .................. ......... .................. .......... .......... T9:· J04yÇqlorrib~e><jo4yii89~gJiJ?1:)ie@ªtitl1¡~v§t~te.å.k.µs~·. Please put a copy in the CPAl - CRU application to amend CO 443 and AlO 18. Thanks, Jack -------- Original Message -------- Subject: Re: [Fwd: FW: CD2-09 flowback request] Date: Wed, 22 Sep 2004 16:25:47 -0800 From: John Hartz <jack hartz@admin.state.ak.us> Organization: State of Alaska To: !?,~ra. I .,,?oria@conocophillips. com, Kelli. L. Hanson@conocophillips. com CC: Stephen F Davies <steve davies@admin.state.ak.us>, Thomas E Maunder <tom maunder@admin.state.ak.us> References: <4151F7BF.50609@admin.state.ak.us> Dora & Kelli, The operation you describe is a completion operation and for which approval is part of the permit to drill. Cleaning the wells to tanks is a pretty common feature of completion operations to prevent formation damage by foreign fluids. We expect to have the amended orders ready in the next week or so, prior to your beginning "regular production" (that means ...production of oil or gas from a well into production facilities and transportation to market, but does not include short term testing, evaluation, ...") Jack Hartz, PE Stephen Davies wrote: Jack, The Alpine flowback request I mentioned earlier. Steve -------- Original Message -------- Subject: FW: CD2-09 flowback request Date: Wed, 22 Sep 2004 13:38:41 -0800 From: Soria, Dora I <Dora.l.Soria@conocophillips.com> To: steve davies@admin.state.ak.us CC: Hanson, Kelli L <Kelli.L.Hanson@conocophillips.com>, Alonzo, Chris <Chris.Alonzo@conocophillips.com> Steve: You have informed me we should expect a favorable ruling early next week to request for an expanded area for Alpine pool rules and an injection order. respectfully requests AOGCC's permission to perform the operation described in advance of a final approvable. Thank you for your prompt consideration. our CPAl below Best regards, -dora 10f2 9/23/20047:42 AM [Fwd: Re: [Fwd: FW: CD2-09 flowback reque""'\ ) ) -----Original Message----- From: Hanson, Kelli L Sent: Wednesday, September 22, 2004 1:27 PM To: Soria, Dora I Cc: Alonzo, Chris Subject: CD2-09 flowback request Dora, As I mentioned on the phone earlier, the CD2-09 post-rig slickline work has been completed and the well is ready for flowback. We flow back new wells to unload and clean up the well prior to sending the produced oil to the plant. We perform these flowbacks as soon as possible following the completion of the drilling program in order to minimize the amount of time the drilling fluid (in this case, mineral oil-based mud) sits on the formation and thus prevents/minimizes formation damage. In this case, we are requesting approval to flow CD2-09 back to tanks. CD2-09 is the first and only well to be completed in the Alpine Northwest Periphery (outside the existing PA). CD2-09 will be flowed back until the oil is clean (no solids) and low water cut. The well will then be shut-in until the approval is obtained to bring the well online. Please let me know if you have any further questions. Thanks, Kelli Kelli L. Hanson Production Engineer Alpine Engineering WNS Subsurface Development 907.265.6945 Jack Hartz, P.E. <jack hartz@admin.state.ak.us> Alaska Oil & gas Conservation Commission 20f2 9/23/20047:42 AM [Fwd: R~: Questions Regarding Expansion oP ljine Order Area] ) ~.¥~~i~~!:.··...·..r~~g:·.....·.R.ß:·..··....9\1~š~i~ns...·.R.ëg~~·~l1gE:xp.ansion.. of Alpine·.··Order.··Area] .~~H~f.·.·..§t~~.p~e.....])~~i~~......~st~ye74~vies.@adroin..·state..ak.us> »~~.~:'f~µ;P.2§ep~OO~~8 :17:~4-0~OO . .' . . . '. . ~·9:<·~PªYQ~~pmÞi~·..~:~q¥.ÍpgXg#1bi~@åØrnIft,·$tªtë.·ál(.uS?. Please put this message into the order file. Thanks, Steve D. -------- Original Message -------- Subject: Re: Questions Regarding Expansion of Alpine Order Area Date: Wed, 01 Sep 2004 11:33:23 -0800 From: Thomas Maunder <tom maunder@admin.state.ak.us> Org ani z at ion: S tat e 0 T" Ai aska---,,,,...,,,,·,-,m,,,,,,...,,,,...,,,,,.,,,.,,,,,,,,,,,,,,,,,,,.,,,,,,,,,,.,,,,,,,,-,..."...",.--"",,,,,...,,,,-- To: Alonzo, Chris <Chris ,. Alonzo@conocoE£0:",!.~":hE_~"_:",s:_~!!!.::: CC: Rodgers, Dan <Dan.Rodgers@conoco~~~l}_~~.com>, Soria, Dora I <Dora.I.Soria@conocophillips.com>, Ireland, Mark M <Mark.M.lreland@conocophillips.com>, Crabtree, C L <C.L.Crabtree@conocophillips.com> References: <127E49C8DD4E4A4591702B4B7941AA1A48FEFF@ancexmbl.conoco.net> --....--.....-....-.-..-..-.....-....-...-..-.....-.....---..-...---..... -----.--.-....----. Chris, et al: Please be advised that we have received your information and the questions we posed have been satisfactorily answered. There has been no request for a hearing and Commissioner Norman has asked me to advise you that the Commission will NOT be holding a hearing on this matter. Please contact myself or Jody Colombie with any questions. Torn Maunder, PE AOGCC Alonzo, Chris wrote: Tom, Per request, please find enclosed the CPAl responses to the AOGCC questions regarding the CPAl application to expand the applicable areas of C0443 and AIO 18B for the northwest Alpine peripheral area. Please review the data and let me know if CPAI needs to provide any additional data to the AOGCC. Thanks, Chris Alonzo Alpine Engineering Supervisor ConocoPhillips, Alaska (907) 265-6822 chris.alonzo@conocophillips.com -----Original Message----- From: Thomas Maunder [mailto:to~~~Eder@a~~~sta~~.ak.us] Sent: Wednesday, August 04, 2004 1:28 PM To: Crabtree, C L¡ Alonzo, Chris Cc: Steve Davies¡ John D Hartz Subject: Questions Regarding Expansion of Alpine Order Area Cliff and Chris, Attached are two documents containing the questions/clarifications we have developed with regard to CPAI's applications to expand the applicable areas of CO 443 and AlO 18A. You should refer to the existing orders to how the subject of our questions was addressed When the orders were originally written. Please feel free to contact me or Steve Davies with any questions. Tom Maunder, PE AOGCC 10f2 9/8/2004 10:38 AM [FWd:, ~~: Questions Regarding Expansion of ¡\11ine Order Area] ') 2of2 9/8/2004 10:38 AM Re: Questions Regarding Expansion of Alpine r\rder Area Subject: Re: Questions Regarding Expansion of Alpine Order Area From: Thomas Maunder <tom_ maunder@admin.state.ak.us> ~~~~':.'Y~~,.gl.~~~. 2004 ..11:33:,~3-~800 ..... ..... Chris, et al: Please be advised that we have received your informatio~ and the questions we posed have been satisfactorily answered. There has been no request for a hearing and Commissioner Norman has asked me to advise you that the Commission will NOT be holding a hearing on this matter. Please contact myself or Jody Colombie with any questions. Tom Maunder, PE AOGCC Alonzo, Chris wrote: Tom, Per request, please find enclosed the CPAI responses to the AOGCC questions regarding the CPAI application to expand the applicable areas of C0443 and ATO 18B for the northwest Alpine peripheral area. Please review the data and let me know if CPAI needs to provide any additional data to the AOGCC. Thanks, Chris Alonzo Alpine Engineering Supervisor ConocoPhillips, Alaska (907) 265-6822 chris.alonzo@conocophillips.com -----Original Message----- From: Thomas Maunder [mailto:tom maunder@admin.state.ak.us] Sent: Wednesday, August 04, 2004 1:28 PM To: Crabtree, C L; Alonzo, Chris Cc: Steve Davies; John D Hartz Subject: Questions Regarding Expansion of Alpine Order Area Cliff and Chris, Attached are two documents containing the questions/clarifications we have developed with regard to CPAI's applications to expand the applicable areas of CO 443 and AIO l8A. You should refer to the existing orders to how the subject of our questions was addressed When the orders were originally written. Please feel free to contact me or Steve Davies with any questions. Tom Maunder, PE AOGCC 1 of 1 9/1/2004 12:54 PM #3 ConocoPhillips applies for expansion of Alpine oil pool - 08/0412004 ) ") .: """1\,.' 'n".,.. II.r ,~",.,,:,,.. ,.,,~ ,P~I",.,.,~~...".'!!"¿tl¡.. I !~ ,'I,:." ;;~'·'1~~~~E.~·'Î:;'· .1 :. ,~~".\ c.:~..~,.L."..- .""...~,:~~;~t) .. ..., 1·_!.t~l~~~~_.:'!I"'" N':=WS BU_L:=- r' , ~.ï~::i;f' August 04, 2004 -- Vol. 10, No. 68 August 2004 ConocoPhillips applies for expansion of Alpine oil pool ConocoPhillips Alaska has applied to the Alaska Oil and Gas Conservation Connnission to expand the area of the Alpine oil pool covered by the connnission's production and injection orders. The proposed expansion area is within the Colville River unit, and drilling would be nom Colville River unit drill site CD2. ConocoPhillips said infonnation for the requested expansion comes nom results of its development drilling; which "has greatly increased our knowledge of the distribution of the sands" in the Alpine participating area and has allowed it to better correlate seismic data with reservoir sands. Original oil in place in the expansion area is estimated at 31 million to 55 million barrels; and the company said that range "willlU1doubtedly change as new drilling infonnation becomes available. " ARCO Alaska mc., ConocoPhillips Alaska's predecessor, told the connnission in 1999 that Alpine contained an estimated 960 million barrels of oil in place, and that with horizontal wells and a miscible water-alternating-:gas oil recovery process implemented at startup, recovery was expected to be 45 percent, or some 429 million barrels. At a midpoint ,in the 31 million to 55 million barrel range the proposed expansion area would add less than 5 percent to oil in place at the field. ANS production down on Alpine, pipeline shutdowns Alaska North Slope crude oil production averaged 825,733 barrels per day in July; down 11.63 percent nom JlU1e, due primarily to the beginning of a scheduled shutdown at Alpine for facility expansion and maintenance work. A 30-hour scheduled shutdown of the trans-Alaska pipeline July 10-11 for maintenance combined with swnmer temperatures, which make compressors used for gas re-injection less efficient, contributed to an average production drop at all North Slope fields nom JlU1e to July. The ConocoPhillips Alaska-operated Alpine field, which ramped down to marginal production July 19 and had no production from July 21 through the end of the month, averaged 54,173 bpd for the month, compared to 102,864 bpd in JlU1e. The BP-operated Endicott field averaged 21,502 bpd in July, down 12.9 percent from a JlU1e average of 24,678 bpd. The BP-operated Lisburne field averaged 47,318 bpd in July, down 9.26 percent from a JlU1e average of52,146 bpd. The BP-operated Prudhoe Bay field averaged 397,464 bpd in July, down 7.9 percent from a JlU1e average of 431,444 bpd. BP's Milne Point field averaged 49,490 bpd in July, down 6.91 percent from a June average of53,161 bpd. The ConocoPhi11ips-operated Kuparuk River field averaged 185,921 bpd, down 5.76 percent from a June average of 197,275 bpd. BP's Northstar field averaged 69,865 bpd in July, down 4.13 percent from a June average of 72,875 bpd. The July North Slope temperature averaged 49.8 degrees Fahrenheit at Pwnp Station No.1, compared to a three-year average of lof2 8/5/2004 10:54 AM --:5fö s:-r- ~)~ g- ~ s:- -c:Þ 4- --....-..-........."..,..- ConocoPhillips applies for expansion of Alpine oil pool - 08/04/2004 46.9 degrees F. Production in Cook Inlet averaged 23,694 bpd, down 2.94 percent 1ìom a June average of 24,41 1 bpd. See complete stories in Aug. 8 issue of Petrolewn News. Print this StOl4Y Petroleum News - Phone: 1-907522-9469 - Fax: 1-907522-9583 circuiatioi1(â)PdrolcumNcws.com -- http://ww'w.pctrolcumncws.fom --- SUB S C R I BE Translate this story to your language: from English to Spanish ~j",. Translate i CLICK BELOW FOR A MESSAGE FROM OUR ADVERTISERS. ~¿t!SYS~ C.':lu(90'7)24 80108 2of2 8/5/2004 10:54 AM #2 STATE OF ALASKA ADVERTISING ORDER , SEi! ¡rorr9M F.ø~IN~cnç~,"D[J~E:SS , F AOGCC R 333 W 7th Ave, Ste 100 o Anchorage, AK 99501 M ") NOTICE TO PUBLISHER ~ IN\' " MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER lCERTIFIED AFFIDAVIT OF PUBLICATION (PART2 OF THIS FORM) WITH ATTACHE:D COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE ADVERTISING ORDER NO. AO-02514005 AGENCY CONTACT Jody Colombie PHONE DATE OF A.O. July 29,2004 PCN (907) 793 -1 ??1 DATES ADVERTISEMENT REQUIRED: ¿ Anchorage Daily News POBox 149001 Anchorage, AK 99514 July 30, 2004 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Type of Advertisement X Legal D Display STOF0330 Advertisement to be published was e-mailed D Classified DOther (Specify) SEE ATTACHED SEND,INVOICE,INTRIPLlCATÈ, AOGCC, 333 W. 7th Ave., Suite 100 TO Anchorage, AK 99501 NUMBER AMOUNT DATE TOTAL OF PAGE 1 OF ALL PAGES$ 2 PAGES COMMENTS REF TYPE 1 VEN 2 ARD 3 4 FIN AMOUNT 02910 SY CC PGM LC ACCT FY NMR DIST lIQ 05 02140100 73451 2 3 R:QUISITIONED Bylt ~ __ D¿;;:'TfM] 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM I ) ) Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Alpine Oil Pool, Prudhoe Bay Field Request for expansion of area subject to pool rules and area injection order ConocoPhillips Alaska, Inc. by application dated July 22, 2004, has applied for expansion of the affected area for the Alpine Oil Pool as defined in Conservation Order No. 443 and for Area Injection Order No. 18A according to 20 AAC 25.402 and 20 AAC 25.520. The Commission has tentatively scheduled a public hearing on this application for September 2, 2004 9:00 am at the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on August 16, 2004. If a request for a hearing is not timely filed, the Commission will consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please call 793-1221. In addition, a person may submit a written protest or written comments regardinß this application to the Alaska Oil and Gas Conservation Commission at 333 West i Avenue, Suite 100, Anchorage, Alaska 99501. Written protest or comments must be received no later than August 31, 2004 except that if the Commission decides to hold a public hearing, written protest or comments must be received no later than the conclusion of the September 2, 2004 hearing. If you are a person with a disability who may need a special modification in order to comment or to attend the public hearing, please contact Jody Colombie at 793-1221 before August 23, 2004. ft;~:5 /' Chair Published Date: July 30, 2004 AO# 02514005 ) I Anchorage Daily News Affidavit of Publication ) 1001 Northway Drive, Anchorage, AK 99508 PRICE OTHER OTHER OTHER OTHER OTHER GRAND AD# DATE PO ACCOUNT PER DAY CHARGES CHARGES #2 CHARGES #3 CHARGES #4 CHARGES #5 TOTAL 244613 07/30/2004 02514005 STOF0330 $154.76 $154.76 $0.00 $0.00 $0.00 $0.00 $0.00 $154.76 STATE OF ALASKA THIRD JUDICIAL DISTRICT ¡~# Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska MYj¿'O MISS, ION.,., EXPIRES.: OCI ¡.J,,). ~~WIII{(rrr '1 . !: i<\\ ~~LY -4 I",..~ Y <I ¡¿ L ,,\: _..'ß ..... -î: /' . i /' \." 'Sl>" .. ........ ~-::;.. 11.111 Cil ,U ./ . ,,' (:ii~i~··"O_~~Itj::~ / . Y ~_~ : PuEnJC = ::: - .()~ ~.~~..... -~ ....... . ':". -. . ~ ~ ..'~Q: A~"oO-'~ ¿ · , . . '_..dv :'\'\ ;.1...../, (€~.."I~\,\'\ ·jjl}))]))})) ,iD v I :<O{? V Notice of 'public Hearing STATE OF ALASKA ~;J,,:aska Oil and Gas Conservation Commission Re;:'Alpine Oil Pool, Prudhoe Bay Field ':R~CI,liJest for, expansion of area subject tq pool ,t\'Jles and area injection order Cono·coPhllllps Alaska, Inc. by application 'd.ç:ited July 22,2004, has applied ,for expansion of the d,ffected area for the Alpine Ofl Pool as defined. in c.onservation Order No. 443 and for Area Injection Order No. 18Aa,c¡:ording to 20 AAC 25.402 and 20 AÄC 25.520. ' ' The CommIssion has tentatively scheduled a public hearing on this application for September 2, 20049'00 am at the Alaska Oil and§ , nserva~ Hon C~mmission at 333 West 7th A,,; , ite 100, Anchorage, Alaska 99501. A pér,~~" '.' .request that the tentatively scheduled hèar:i¡\ÌlsÙÞ~ held by filing a written request with the Cql1)rnlssion no later than 4:30 pm on August 16, 2004.', If a request for a hearing is not timely filed, the Commission will consider the issuance of an order without a hearing. To learn If the Commis- " sion will hold the public hearing, please call 793-1221. I n addition, a person may subm,ita writte(1 pro- test or written comments regc!'tdl~~, thi.s applica- tion to the Alaska 011 and Gas~conser~qtion Com- mission at 333 West 7th Avenue($uite 100, Anchorage, Alaska 99501. Wrltt~n protest or com- ments must' be,':received no låte(:tt1an August 31, 2004 except that;if t-he Commission decides to hold a public hearing, written protes,t or comments must be recèlved no later than the conclusion of the September 2, 2004 hearing. ., If yOU are a person with a disability who may need a special modification in order to comment or to attend the public hearing, please contact Jody Colombie at 793-1221 ,before August 23, 2004. John Norman..' Chair Teresita Peralta, 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 regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Signed >f¡~JoJ Subscribed and sworn to me before this date: AO# 025140!>~ ,\ Publish: J'uly 30, 2004 \. ." ir~ RE: Notice ~~ } ) / Stl~Je~t:ltE:~otic7< ............. ....... .. . ..................... ...... ...... ~fg~.;··.·.·~egÆllaqs.....<l.ç~.~~~ds@adn...com> ~..~.~~:...Wect;.·.·~··~.·.·.·~~!....~·98.~..·.···9~:.·R~..:.~.?··.7?~.9.? !Qi;··:,~, ·,~çm~.~.~':Md2~~¿s~g19Pi\q~~@~~~~.~~~~~~;~.:J.Î.~~·..·..···........,.:............ ..' .... .....................................:..... . ....'..:...... ." .............:..:... ,.:..:::...:...::.:::..::.:.:.......:.:.:;... "' :.':::.:::'.".. ........ .", Good Morning Jody: Following is the confirmation information on your legal notice. Please let me know if you have any questions or need additional information. Account Number: STOF 0330 Legal Ad Number: 244613 Publication Date(s): July 30,2004 Your Reference or PO#: 02514005 Cost of Legal Notice: $154.76 Additional Charges Web link: E-Mail Link: Bolding: Total Cost to Place Legal Notice: $154.76 Ad Win Appear on the web, www.adn.com: XXXX Ad Win Not Appear on the web, www.adn.com: Thank You, Kim Kirby Anchorage Daily News Legal Classified Representative E-Mail: legalads@adn.com Phone: (907) 257-4296 Fax: (907) 279-8170 ---------- From: Jody Colombie Sent: Wednesday, July 28,20048:14 AM To: legalads Subject: Notice «File: Alpine C0443 AI0188 Notice.doc»«File: Ad Order form.doc» Please publish the attached on July 30, 2004. Thank you. 1 of 1 7/28/20049:34 AM STATE OF ALASKA ADVERTISING ORDER "SEE BO:r:ToMFÓR llÍIvolceADDRESS. ) NOTICE TO PUBLISHER ADVERTISING ORDER NO. INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE AO-02514005 F AOGCC R 333 West ih Avenue, Suite 100 o Pu1chorage,AJ( 99501 M 907-793-1221 AGENCY CONTACT DATE OF A.D. Joci)' Colombie July?9, ?004 PHONE PC~ (907) 793 -1 ??1 DATES ADVERTISEMENT REQUIRED: T o Pu1chorage Daily News POBox 149001 Pu1chorage, AJ( 99514 July 30, 2004 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: United states of America AFFIDAVIT OF PUBLICATION REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A.CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. ATTACH PROOF OF PUBLICATION HERE. division. Before me, the undersigned, a notary public this day personally appeared who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2004, and thereafter for _ consecutive days, the last publication appearing on the _ day of ,2004, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This _ day of 2004, Notary public for state of My commission expires 02-901 (Rev. 3/94) Page 2 AO.FRM PUBLISHER Notice ) ') lof2 7/28/20048:15 AM Notice ) -"---- ------- -----.. - ----- ) --"- -- -. ------. -- ------ --"- -- --- Alpine_C0443_AI018B Notice.doc Content-Type: application/ms\Vord '''''''''',,'',,'''''','',''''''''''''''''''''''',''''''''',,''''''''''''''''''''''''''"'=""'''' ,,,,,,,,,,,,,,,,,,,,,,,,,', Content-Encoding: base64 20f2 7/28/20048:15 AM Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Kelly Valadez Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 ) ), Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 John Levorsen 200 North 3rd Street, #1202 Boise, ID 83702 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Schlumberger Drilling and Measurements 3940 Arctic Blvd., Ste 300 Anchorage, AK 99503 David Cusato 200 West 34th PMB 411 Anchorage, AK 99503 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks. AK 99711 North Slope Borough PO Box 69 Barrow, AK 99723 I{/I/ ÆJÝ ~tþc¡ Notice ) ) Please p~þ,!~~J::t~n line. "g<?<:!y ¡ Alpine _ C0443 _ AI018B _ Notice.doc' Content-Type: app lie ationlmsword L,::::::::::,~,::::::::::::::::::::,~,:,~,:::::::::::::::::::,:':::::::::::::::::::::.:::::::::::::::::::::::,~':,::::::,.~':::::::::::::::::::::::::::::::,::::::::::,~',,::::: ,::,:::::::::::::::,:::¡,,::::~:~,~,t~,~~=~ncoding: base64 '::.'.:':.'::::.~':.~':::::.'.':::::::.'.':::::::::::.':::.'.'::.'.'.'::.':.~'.'.'.~'.'.'::":::::::.'::::.~'::::::::::::::::.'::.'.':.'.':::::::.'::.','::.'.':::.'::,'.':::.'::::::::::::.',':::.'... 1 of 1 7/28/2004 8: 15 AM Notice ) l §ubJect:.l\{otige. ." ......... ............. .... .......' ~~~:~W~~~~~~~1~~~;~~Q~~~~~:~,sjte,~'~sB ~~.~;..;: ...~;;... ..:§·:·~Rft~~~g~'.~~~~:·~~~~'.·..~~~g~~~~§~'~ª~~çgm~.;·;.....: ...~..... . ......... ................ ", .,.:.:::-:'::>=:,:::..::='-",i ".:: ··..·::-:H. :;::: ":::::::,": "". PI ease Pf~'Þ.,!,~,~,þ':"",,!:þ:,~ ,,,~,!:,!:,~9þ:,~,ª,,~~,,,~~~'y,}g,,,~,,,,,,,,,?,,qº~,,,~,,, ..."..,:!Þ:,~,J?:,~.",..¥~~"~,...,,, I Content-Type: applicationlrnsword ! Alpine C0443 AI018B Notice.doc C . b 64 ! i on tent-Encoding: ase ¡ ..... ......", Content-Type: app'Iicatio~~s\V~rd ¡ I Ad Order form. doc Content-Encoding: base64 ¡ ..""...,,,...,,..,,..,,,.,,,.,,,.,,....,'......,..,,,.,,,.,,,.,,...".......,..."..."..."..... ",................".....,........,..,.........,...,.......,..,..,.."...'....,.",........,...,.""..,....,'...,...",,,..,.........,...,,,......,.."...."...,...',..,...,...,...,......',..',,,.,,, "."..,) .................................................................................................................................................................................................................................................,..................................................................................... 1 of 1 7/28/20048:15 AM #1 · ) ConocriP'hillips Chris Alonzo Alpine Engineering Supervisor Post Office Box 100360 700 G Street Anchorage, Alaska 99510 Telephone 907 265-6806 July 22, 2004 Mr. John Norman, Chairman Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Re: Expansion of Conservation Order No. 443 and Area Injection Order No.18A Dear Commissioner Norman: By this letter and supporting documents, ConocoPhillips Alaska, Inc. (CPAI) requests expansion of the Alpine Oil Pool described in Conservation Order No. 443 and Area Injection Order 18A to include additional acreage to the North and West of the currently defined Alpine Participating Area (Expansion Area) as shown on Exhibit 1. Attachment A provides information supporting the expansion with respect to Conservation Order #443. Attachment B provides input supporting the expansion with respect to Area I njection Order No. 18A. The Expansion Area will be drilled from CRU Drill Site C02. A request for authorization to conduct tract operations has been submitted to Alaska Department of Natural Resources ("ADNR") and the Arctic Slope Corporation (ASRC) for the drilling of the CD2-03, CD2-04, CD2-09, CD2-11 and CD2-21 Wells (the "Wells"). CPAI anticipates ADNR, ASRC and Colville River Unit owners will agree to the proposed tract operations. Should all or a part of the Expansion Area be confirmed as productive per the CRU Agreement, CPAI would submit an application to ADNR and ASRC to expand the Alpine Participating Area to include such productive Expansion Area acreage. Detailed geophysical, geologic and engineering information describing the Expansion Area is provided in Attachments A and B, which CPAI considers confidential. CPAI requests that Conservation Order No. 443 and Area Injection Order No.18A be amended to include the following areas outlined in orange on Exhibit 1. All of the subject tracts are contained within the current Colville River Unit boundary. This expansion may be specifically described to include the following areas: Township 12N Range 4E - (Umiat Meridian) all of sections 20, 21, 22, 23, 27, 28, 29, 30, 31 and 32 Township 12N Range 3E - (Umiat Meridian) all of sections 25 and 36. ) ') Other than the described request to include the Expansion Area acreage, no changes to Conservation Order No. 443 or Area Injection Order No.18A are requested. We appreciate your review of this request and would be happy to address any questions. I can be reached at 265-6822 or chris.alonzo@conocophillips.com via email. Sincerely, /?1/~~ Chri(i. ~onz~- è Attachments Page 2/3 e e CC: Mr. Mark Meyer, Director Alaska Department of Natural Resources Division of Oil & Gas 550 W. ih Avenue, Suite 8000 Anchorage, Alaska 99501-3560 Mr. Mike Kotowski Division of Oil and Gas P. O. Box 107034 Anchorage, AK 99510 Ms. Teresa Imm, Resource Development Manager Arctic Slope Regional Corporation 301 Arctic Slope Avenue, Suite 300 Anchorage, Alaska 99518-3035 Mr. Isaac Nukapigak, President Kuukpik Corporation PO Box 187 Nuiqsut, Alaska 99789-0187 Mr. Lanston Chin Kuukpik Corporation 825 W 8th Ave., Suite 206 Anchorage, AK Mr. Bill Esco Anadarko Petroleum Corporation PO Box 1330 Houston, Texas 77251-1330 Mr. John Bridges Anadarko Petroleum Corporation 1201 Lake Robbins Dr. The Woodlands, TX 77380 Township Township 12N Range 4E - (Umiat 23.27.28.29.30.31 and 32 12N Range 3E (Umiat Meridian) all portions of sections 25 and 36 Meridian) all portions of sections 20.21 22 t The expansion area is under lease by the Alpine WIOs from the State of Alaska and Arctic Slope Regional Corporation. CPAI has filed an application with the Commissioner of the Department of Natural Resources and Arctic Slope Regional Corporation to conduct tract operations in the subject areas. The intent of all parties is that the subject areas will be included within the Alpine Participating Area (PA) boundary once proven by production as required under the applicable CRU agreements. is proposed that Conservation Order No. 443 be expanded to Include Existing Alpine facilities wi be employed to process production and supply injectant to the expanded area. The intent of all parties is that the Alpine Participating Area will be expanded to include the subject acreage and operated in accordance with the Colville River Unit (CRU) Agreement and the CRU Operating Agreement. The information presented in this Attachment A supports the application before the Alaska Oil and Gas Conservation Commission (AOGCC) for expansion of the geographic area specified in Conservation Order No. 443. The scope of this attachment includes a discussion of geological and reservoir properties, CPAl's plans for reservoir development, surveillance, well planning and are considered confidential. CPAI is providing this information on behalf of the Alpine Participating Area Working Interest Owners (Alpine WIOs). This information is provided so that the AOGCC is properly informed to render a decision and issue findings concerning this application. Explanation of Request I. Attachment A Supporting Information for Expansion of Conservation Order No. 443 e e Conservatìon Order A&ment A - Expansion of Conservation orde_ 443 II. Geology Introduction In this section, the geologic data supporting the proposed expansion is discussed. GeoloQic Interpretation of the Expansion Area Reservoir penetrations gathered through the course of development drilling has greatly increased our knowledge of the distribution of the sands within the existing Alpine PA and allowed for continual improvement in the correlation between the seismic response and presence of reservoir sands. The result of this is the WIG's ability to better project reservoir limits. The latest zero net pay contour is shown in Exhibit 2. Volumetric estimates of original oil in place within the expansion area range from 31 MMSTB to 55 MMSTB. This range will undoubtedly change as new drilling information becomes available. Several tests of vertical pay thickness have been obtained through tagging the top and bottom of the Alpine reservoir while drilling in the existing northern row in the northwest portion of the current PA (CD2-06, CD2-20, CD2-12 and CD2-15). Based on these intersections, we estimate there is nineteen to forty feet of reservoir quality Alpine sand present at the toe of the current northern row of development wells at CD2. Injector CD2-18 encountered approximately 20' of Alpine A sand at it's northern extent. Alpine Well CD2-06 tested the concept that accommodation space for the Alpine sands exists to the north, between the area developed by existing wells and the ultimate truncation of the interval by the regional Lower Cretaceous Unconformity. The current Alpine net pay map outlining the expansion area is shown in Exhibit 3. These results were previously reported in the Colville River Unit Agreement Section 3.9.8 meeting held in December of 2003. III. Reservoir Description This section summarizes the reservoir properties assumed to be present in the expansion area. Formation Description The mapped gross reservoir interval in the expansion area is estimated thickness between 0 to 30 feet Log model net pay is calculated using a 15% porosity cutoff on log derived porosity data. Average porosity ranges from 17% A_hment A - Expansion of Conservation orde. 443 to 21 %. Calculated log model water saturations range from are 10% to 22%. Permeability ranges from less than 10 md to almost 60 md. Given the extensive pressure continuity observed across the developed portions of the Alpine field, we anticipate the expansion area is in pressure communication with the Alpine reservoir within the current Alpine PA boundary. Reservoir Fluid Properties The oil and formation water properties are expected to be the same as those found in the developed portions of the Alpine reservoir. Please refer to the supporting information provided in the application for Conservation Order No. 443 and Area Injection Order No. 18A. IV. Reservoir Development This portion of the application includes a discussion of the recovery process, development and management strategies. Recoverv Process The recovery processes previously described in the application for Conservation Order No. 443 in and updated via subsequent annual surveillance reports will be extended into the proposed development area. Development Approach We anticipate the current horizontal well line drive pattern configuration will be extended into the proposed expansion area Well SpacinQ Spacing between longitudinal rows will be adjusted as needed for efficient drilling and recovery. Wells will not be drilled closer than 500' as specified by Rule 3 of Conservation Order No. 443. Stimulation Plans There is a possibility that lower quality reservoir rock will be encountered in the proposed expansion area. Propped hydraulic fracture stimulation may be evaluated in these instances. Artificial Lift As has been the practice in Alpine producers drilled to date, gas lift will remain the preferred artificial lift mechanism. .ahment A - Expansion of Conservation orde. 443 V. Facilities Introduction Other than new well tie in, no substantive changes to surface facilities are anticipated General Overview The proposed area will be developed from CRU Drill Site C02 (C02). With slight modification, the existing facilities will accommodate the additional wells anticipated from this expansion. Pads and Roads C02 is designed to accommodate a total of 60 wells on 10-foot centers. At this time, no additional gravel construction is anticipated due to the proposed expansion. Pipelines Pipeline facilities are sufficient to accommodate the proposed expansion. Power Line Existing power facilities will accommodate the incremental wells drilled as a result of this expansion Drill Site Facilities C02 facilities are designed to require minimal operator presence. Data gathering and most routine operations are to be accomplished remotely from the production facility control room. VI. Drilling & Well Design Introduction The information below details drilling and completion practices for the proposed expansion area. A.hment A - Expansion of Conservation orde. 443 CasinQ & CementinQ As has been the case throughout Alpine development, casing and cementing plans for will be consistent with AOGCC Regulation 20 ACC 25.030. All casing and cementing requirements will adhere to Rule 4 of Conservation Order No. 443. Automatic Shut-in EQuipment All automatic shut-in equipment requirements will adhere to Rule 5 of Conservation Order No. 443. VII. Reservoir Surveillance Introduction This section provides a description of proposed reservoir surveillance. Well TestinQ Well test operations will comply with Rule 9 of Conservation Order No. 443. Reservoir Pressure Measurements Pressure measurement will comply with Rule 6 of Conservation Order No. 443. Reservoir Surveillance Report The proposed expansion area will be integrated into the Rule 8 Alpine reservoir surveillance report. VIII. Summary The Alpine WIOs are committed to a safe and environmentally friendly operation. Alpine operations meet or exceed all requirements specified in the Commission's rules and regulations. Well and facility designs meet or exceed the standards specified in state and national codes, the recommended practices of the relevant advisory organizations, and the time-proven practices of prudent operation. We respectfully request that AOGCC approve expansion of the area covered by Conservation Order No. 443 to enable continued development of the Alpine Reservoir. Attachment A - Expansion of Conservation Order No. 443 Exhibit 3 Page 7 e e Attachment B Supporting Information for Expansion of Area Injection Order No. 18A Introduction The information presented in this Attachment B supports the application before the Alaska Oil and Gas Conservation Commission (AOGCC) for expansion of the land area specified in Order No. 18A. Expansion of the effective area is necessary to efficiently recover Alpine Reservoir hydrocarbon resources within the Colville River Unit. 20 AAC 25.402 (c)(1) Plat of Wells Penetratina Iniection Zone Exhibit 3 shows all existing wells penetrating the injection zone in the proposed injection area. The map also shows the areal extent of the injection zone relative to the Colville River Unit boundary, and the location of all proposed Alpine Oil Pool development wells. 20 AAC 25.402 (c)(2) Operators and Surface Owners within One Quarter Mile of Iniection Operations Operator: ConocoPhillips Alaska Inc. Attention: Mark Ireland P. O. Box 100360 Anchorage, AK 99510-0360 Surface Owners: State of Alaska Department of Natural Resources Attention: Mike Kotowski P. O. Box 107034 Anchorage, AK 99510 Kuukpik Corporation Mr. Isaac Nukapigak PO Box 187 Nuiqsut, Alaska 99789-0187 Page 1 e e 20 AAC 25.402 (c)(3) Affidavit of Chris J. Alonzo STATE OF ALASKA THIRD JUDICIAL DISTRICT I, Chris J. Alonzo, declare and affirm as follows: 1. I am the Alpine Engineering Supervisor for ConocoPhillips Alaska, Inc., the designated operator of the Colville River Unit (which includes the Alpine Pool). 2. On July 22,2004, I caused copies of the Application for Expansion of Area Injection Order No. 18A with confidential attachments to be provided to the following surface owners and operators of all land within a quarter-mile radius of the proposed injection area: Operator: ConocoPhillips Alaska, Inc. Attention: Mr. Mark Ireland P.O. Box 100360 Anchorage, AK 99510-0360 Surface Owners: State of Alaska Department of Natural Resources Attention: Mr. Mike Kotowski Anchorage, AK 99510 Kuukpik Corporation Attention: Mr. Isaac Nukapigak P.O. Box 187 Nuiqsut, AK 99789-0187 Dated: 2) ,2004. .., ;ù\\\\\! \I iI J jJ1111/h ~\"~. ..~!9.fto~ ~Co,?:.··:;'(\\iSSiO/,·....'f:<. ~ :§""v':r ..(j'I~ §-....J..~ e. ~ ;::s .~ . ::::;- S! € NOTARY ~ :: ~ ).. PUBLIC'/ .~ ~'T" .. _~ ... ~ š: ~ú'/'.....~<I/ 4, 2~;.·~~ ~t:{öt~'-~~ . "¡!llIfll\\\\\\~ ~ ,2004. d) ~ ~ j, ~ (Jr, ) ·?-0.1·1~ . OI~IiC in and lor Alaska My commission Expires: ~. t-) ;;1oö(P Declared and affirmed before me this ~ I day of Page 2 e e 20 AAC 25.402 (c)(4) Description of the Proposed Operation The Alpine recovery process and operations have been described in previous applications which were the basis for Conservation Order No. 443 and Area Injection Order No 18A. The information is also updated yearly in the Annual Alpine Surveillance Report required by Rule 8 of CO No. 443. No changes to the process or operations are anticipated from expansion of the subject area. 20 AAC 25.402 (c)(5) Description and Depth of Pool to be Affected Location It is proposed that Area Injection Order 18A be expanded to include: Township 12N Range 4E - (Umiat Meridian) all portions of sections 20, 21, 22, 23,27,28,29, 30, 31 and 32 Township 12N Range 3E - (Umiat Meridian) all portions of sections 25 and 36. Trap and Structure The Alpine trap and structure was described in previous applications which were the basis for Conservation Order No. 443 and Area Injection Order No 18A. No variation is expected in the proposed expansion area. Exhibit 4 is a top Alpine depth structure map based on 3D seismic data. Structural dip is to the southwest at 1 to 2 degrees. The major faults in the Alpine Oil Pool area are normal north-northwest trending, and down thrown to the west. At the Alpine level, most of the faults have small throws, generally less than 25 feet. 20 AAC 25.402 (c)(6) Description of the Formation The Alpine formation was described in the application that was the basis for Area Injection Order No. 18A. No variation is expected in the proposed expansion area. Page 3 e e 20 AAC 25.402 (c)(8) Casina Description and Proposed Method for Testina CasinQ Casing designs and methods for testing have been described in previous applications which were the basis for Conservation Order No. 443 and Area Injection Order No 18A. No variance is expected in the proposed expansion area. 20 AAC 25.402 (c)(9) Iniected Fluid Analvsis Fluid properties and composition were described in the application that was the basis for Area Injection Order No. 18A. No variation is expected in the proposed expansion area. 20 AAC 25.402 (c)(10) Estimated Pressures In practice, injection pressures within the Alpine area presently developed have been lower than estimates contained in the application which was the basis for Area Injection Order No 18A. As the recovery process matures, we anticipate that injection pressures will increase but still be below the highest pressures quoted in the original AIO application. 20 AAC 25.402 (c)(11) Fracture Information No later information contradicts analyses provided in the application that was the basis for Area Injection Order No. 18A. The Alpine formation fracture gradient appears to range between 0.56 to 0.6 psi 1ft. No significant variation is expected within the proposed expansion area. 20 AAC 25.402 (c)(12) Formation Fluid No later fluid information contradicts analyses provided in the application that was the basis for Area Injection Order No. 18A. Page 4 e e 20 AAC 25.402 (c)(13) AQuifer Exemption No underground sources of drinking water (USDW) have been identified within the Colville River Unit area. Since there are no USDW's at Alpine, an aquifer exemption per 20 AAC 25.440 is not applicable. It is proposed the previously recognized area be expanded to include: Township 12N Range 4E - (Umiat Meridian) all portions of sections 20,21,22, 23,27,28,29,30,31 and 32 Township 12N Range 3E - (Umiat Meridian) all portions of sections 25 and 36. 20 AAC 25.402 (c)(14) Incremental Hydrocarbon Recovery Later information supports the analyses provided in the application that was the basis for Area Injection Order No. 18A. The Alpine reservoir is responding favorably to the ongoing enhanced oil recovery process. Within pattern limits, recovery is expected to exceed 50% of original oil in place. Summary The Alpine WIOs are committed to a safe and environmentally friendly operation. Alpine operations meet or exceed all requirements specified in the Commission's rules and regulations. Well and facility designs meet or exceed the standards specified in state and national codes, the recommended practices of the relevant advisory organizations, and the time-proven practices of prudent operation. We respectfully request that AOGCC approve expansion of Area Injection Order No. 18A to enable continued development of the Alpine Reservoir. Page 5 Attachment B - Expansion of Area Injection Order No. 18A Exhibit 3 ---: Planned Injector (92' well develoPment ~ogram) ... . .PlanI1edPrO!!lJC:~Lmª.II'.'.~ºi developme~ Program) ~.....~.....~.....,...........~ Drilled Well (~ of 06l2110¿) I ~ Potential Per¡phera~Candidate ! Page 6 Page 7