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Home My WebLink Aboutco797Conservation Order 797 Deep Creek Unit, Happy Valley B-15 1. September 30, 2021 Request to Commingle production within the Beluga/Tyonek Gas Pool and the Undefined Sterling Gas Pool 2. October 1, 2021 Emails between Hilcorp and AOGCC 3. October 04, 2021 Notice of Public Hearing, Affidavit, and Email List ORDERS STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue Anchorage Alaska 99501 Re: THE APPLICATION OF Hilcorp Alaska, LLC for an order authorizing downhole commingling of production in the Deep Creek Unit Happy Valley B-15 (PTD 212-132) well. IT APPEARING THAT: Docket Number: CO -21-019 Conservation Order No. 797 Deep Creek Unit Happy Valley B-15 Development Gas Well Beluga/Tyonek Gas Pool Undefined Sterling Gas Pool Kenai Peninsula Borough, Alaska November 9, 2021 By letter dated September 30, 2021, Hilcorp Alaska, LLC (Hilcorp) requested authorization under 20 AAC 25.215(b) to commingle downhole production from the Beluga/Tyonek Gas Pool (BTGP) and the Sterling Undefined Gas Pool (SUGP) in the Deep Creek Unit (DCU) Happy Valley B-15 (HVB-15) (PTD 212-132) well. 2. Pursuant to 20 AAC 25.540, the Alaska Oil and Gas Conservation Commission (AOGCC) tentatively scheduled a public hearing for November 9, 2021. On October 4, 2021, the AOGCC published notice of the opportunity for that hearing on the State of Alaska's Online Public Notice website and on the AOGCC's website, electronically transmitted the notice to all persons on the AOGCC's email distribution list and mailed printed copies of the notice to all persons on the AOGCC's mailing distribution list. On October 5, 2021, the AOGCC published the notice in the Anchorage Daily News. 3. No protest to the application or request for hearing was received. 4. Because Hilcorp provided sufficient information upon which to make an informed decision, the request can be resolved without a hearing. The tentatively scheduled hearing was vacated on November 2, 2021, and the period for public comments closed on November 5, 2021. No public comments were received. FINDINGS: 1. Hilcorp is the operator of the DCU located onshore in the Kenai Peninsula Borough, Alaska. 2. The HVB-15 development gas well was drilled in October 2012 and completed in the BTGP. The well has had perforations added and plugged a few times over its productive life. Through September 2021, approximately 5.4 BCF has been recovered from the well. Current production is approximately 600-700 MCFPD. Conservation Order No. 797 November 9, 2021 Page 2 of 3 3. Hilcorp has identified several intervals in the SUGP and an additional interval in the BTGP as potential pay zones and proposes to perforate them and produce them commingled downhole with the existing BTGP perforated intervals. 4. Hilcorp believes the SUGP would not be able to sustain standalone production, most of the intervals it proposes to perforate are less than ten feet thick, and thus cannot be produced without being commingled with the BTGP. Commingling production should also improve recovery from the BTGP by increase the flow velocity in the well and thus helping to keep the well from loading up with water. Commingled production should extend the economic life of the well. 5. The SUGP is being produced by a nearby well in the DCU and production from that well shows the SUGP is not overpressured, thereby minimizing the risk of crossflow with the BTGP. 6. After production is established from the SUGP a production log would be run to determine the contribution from each pool to the total flow. Additional production logs would be run on an annual basis thereafter to adjust the production allocation. If work (such as adding or plugging perforations or stimulating the well) is done on the well that could affect production from either pool, a new production log should be run. CONCLUSIONS: Commingling of production from the BTGP and SUGP in the HVB-15 well should not cause waste and should maximize ultimate recovery from this well through allowing otherwise non -producible sands to be brought into production and by extending the economic life of the existing perforations. 2. Conducting an initial production log, then yearly ones thereafter, and additional ones on an as needed basis will ensure adequate allocation of production between the BTGP and the SUGP. NOW THEREFORE IT IS ORDERED: Downhole commingling of production between the Beluga/Tyonek and Sterling Undefined Gas Pools in the HVB-15 well is approved as follows: After flow from the SUGP has been established and stabilized, but no later than 30 days after flow has commenced, a production log shall be run to determine the allocation split between the BTGP and SUGP. 2. Thereafter, a production log shall be run at least once every 12 months. Conservation Order No. 797 November 9, 2021 Page 3 of 3 3. A production log shall be run within 30 days of any work done to the well that could materially affect the production from either zone. Examples of this type of work includes but are not limited to: a. Adding perforations b. Plugging perforations c. Stimulating the well d. Changing the tubing 4. Copies of the production logs shall be submitted to the AOGCC within 30 days of being of being collected. DONE at Anchorage, Alaska and dated November 9, 2021. a,la+1ha blhl Jeremy Price'...",.,W., �W Jeremy M. Price Chair, Commissioner Dan Digitally signed by Dan Seamount Seamount"mn.11.08 14:09:01 -WW Daniel T. Seamount, Jr. Commissioner Digitally signed by Jessie L. Jessie t. Chmielowski Chmielowski wte 1" 11.08 14:1401-10'00' Jessie L. Chmielowski Commissioner As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10 days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may he appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or stale holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. INDEXES From:Salazar, Grace (CED) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] AOGCC Notice of Public Hearing and Comment Period Date:Monday, October 4, 2021 2:45:45 PM Attachments:10-4-21 AOGCC Public Notice for Dockets CO-21-018 and CO-21-019.pdf The Alaska Oil and Gas Conservation Commission (AOGCC) has issued the attached public notice regarding applications filed by Hilcorp Alaska, LLC (Hilcorp) requesting AOGCC to approve 1) a spacing exception to allow regular production of the HVB-15 development gas well within 3,000 feet of another well capable of producing from the same pool in the Deep Creek Undefined Sterling Gas Pool, Deep Creek Unit, Cook Inlet Basin, and 2) the commingling of production from the Beluga/Tyonek Gas Pool and the Undefined Sterling Gas Pool in the HVB-15 well. Grace ____________________________________ Respectfully, M. Grace Salazar, Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Direct: (907) 793-1221 Email: grace.salazar@alaska.gov https://www.commerce.alaska.gov/web/aogcc/ __________________________________ List Name: AOGCC_Public_Notices@list.state.ak.us You subscribed as: grace.salazar@alaska.gov Unsubscribe at: https://list.state.ak.us/mailman/options/aogcc_public_notices/grace.salazar%40alaska.gov ### ## # # # # d L1F3SdLRdd d,2d d `dR3M.'S3dG3SV3ORd2'S32d!3MS3H03Od d dDG1LOMdG'RF'ddDG1LQdO3NY3RSRdSA'SdSA3d G'RF'dDGd,2d'RdLIR3O\(UDLIdLHHDRRDLIdd'MMOL\3d d'dRM'1DI@d3_13MSDLIdSLd'GGL]d O3@YG.dMOL2Y1SDLIdL4dSC3d$ d23\3GLMH3ISd@'Rd]3GGd]DSADId d93SdL4d,LSA3Od]3GGd1'M'0G3d L4dMOL2Y1DI@d>LHdSA3dR'H3dMLLGdDId SC3d33MdO33Fd#I23;I32d!S3OGDI@d'RdLLGd33MdO33Fd #IDSd#dLLFdIG3Sd'RDId,2ddSA3d1LHHDI@GDI@dL4dMOL2Y1SDLId>LHdSA3d3GY@*"`LI3Fd 'RdLLGd,2dSA3d#I23;I32d!S3OGDI@d'RdLLGdDIdSC3d$ d]3GGd %3GGdRM'1DI@dO3@YG'SDLIRdMOLS31SdSA3dLDGd ,2d@'RdOD@ASRdL4d'2E'13ISdG,2L]I3ORd,2dH'_DHDc3d O3RLYO13dO31L\3Obd0`d3RS'0GDRADI@d237YGSdGDHDSRdLIdAL]d1GLR3dLDGd,2d@'Rd]3GGRd1,d03dSLd3'1AdLSA3Od ,2d SLd MOLM3OV`d GDI3Rd ]A3O3d L]I3ORADMd 1A'I@3Rd A,2Rd "A3R3d GDHDSRd 'O3d R3Sd =OSAd DId dd d M3O'SLORdHYRSd'0D23d0`dSA3d238YGSd]3GGdRM'1DI@dGDHDSRdO39OO32dSLd'RdRS'S3]D23d RM'1DI@dO3NYDO3H3ISRdYIG3RRdSA3`dL0S'DId'Id3_13MSDLIdSLdSCLR3dGDHDSRdGSCLY@Ad3_13MSDLIRdSLdSA3d 237ZGSd]3GGdRM'1DI@dO3NYDO3H3ISRd.3dILSdYIYRY'Gdd1.3?GG`d 3\'GY'S3Rd3'1Ad'MMGD1(UDLId ,2dSbMD1'GG`d@O-TRd SA3HdLIG`d]A3Id'1SY'Gd @3LGL@D1d1LI2DSDLIRd23HLIRSP'S3dSC'SdSA3dMOLMLR32d RY0RYO813dGL1'SDLIdL4d'd]3GGdDRdI313RR'ObdSLdO3'1AdLSC3O]DR3dYIO3'1A)0G3dLDGdLOd@'Rd,2dSA'Sd0LSCd SA3dOD@ASRdL4d'2E'13ISdG,2L]I3ORd,2dYI23O@OLYI2d2ODIFDI@d]'S3Od1,d03dMOLS31S32d Rd'd@3I3O'Gd H(US3Odd2L3RdILSdA'\3d3_S3IRD\3d(YWLODSbdL\3OdRYO6'13dDHM'1SRdRY1Ad'RdILDR3d3HDRRDLIRd LOd1LIRSOY1SDLId L]IALG3d1LHHDI@GDI@dO3@YG'SDLIRd dd d.3dDIdMG'13dSLdMO3\3ISd]'RS3d,2dSLdMOLS31Sd 1LOO3G'SD\3dOD@BSRd M3O'SLORd.3dMOLAD0DS32d>LHdMOL2Y1DI@d>LHdLOdDIE31SDI@dDISLdHLO3dSA,dLI3d MLLGd'dOL1Fd=OH'SDLId]A3O3dLDGd ,2LOd@'RdA'Rd'11YHYG'S32d DIdSA3dR+3d]3GG0LO3d]DSCLYSdSA3d d 'MMOL\DI@dSC3d 2L]IALG3d1LHHDI@GDI@dL4dS]LdLOdHLO3dMLLGRd SdDRdILSdYI1LHHLId=Od'd ]3GGdSLd3I1LYJS3OdHYGSDMG3dMLLGRd IdSA3R3dRDSY'SDLIRdILOH'GG`d,dLM3O'SLOd]DGGd;ORSdMOL2Y13d>LHd SA3d233M3RSdMLLGdDIdSA3d]3GGd YITDGdDSdDRd23MG3S32dSC3IdMGY@dL:dSC'SdMLLGd,2dHL\3dYMdSLdSA3dI3_Sd MLLGd'I2dO3M3'SdSA3dMOL13RRdYITDGd'GGdSA3dMLLGRdA'\3d033Id23MG3S32d !LH3SDH3RdLI3dLOdHLO3dL4dSA3R3d MLLGRdDRdILSdG.@3d3ILY@AdSLd]'OO,TdMOL2Y1SDLKDIE31SDLIdLM3O'SDLIRdLIdDSRdL]Id LOdSC3O3d'O3dLSA3Od O3'RLIRdSLd'GGL]d1LHHDI@G32dMOL2Y1SDLKDIE31SDLId IdSA3R3dDIRS'I13Rd'IdLM3O'SLOd]DGGd'MMG`dSLd SA3dd=Od ,dLO23Od'MMOL\DI@dSA3d2L^ALG3d1LHHDI@GDI@dL4dS]LdLOd HLO3dMLLGRd "A3d dO3\D3]RdSC3d'MMGD1'SDLIdSLd'RRYO3d ]'RS3d]DGGdILSdL11[d,2d'GGdL]I3ORdO313D\3dSA3DOdRA.3d L4dSA3dMOL2Y1SDLId "ADRd ILSD13d 2L3Rd ILSd 1LJS'DId 'GGd SC3d DI=OH'UDLId <G32d 0`d DG1LQd &LYd H'`d L0S'DId HLO3d DI=OH'SDLId'0LYSdSADRd<GDI@d0`d 1LJS'1SDI@dSA3dRd!M31D'GdRRDRS,TdO'13d!'G'c'Od'Sd d dLOd@O'13R'G'c.'G'RF'@L\ "A3ddA'RdS3IS'SD\3G`dR1A32YG32d'd" !#MY0GD1dA3.DI@dLIdSCDRdH'X3Od"### ###\D'd!d"3+Rd "A3d'Y2DLd1'GGDIdDI=OH'SDLIdDRd d d1LI53O3I13ddILd d d d IaLI3d]ALd]DRA3Rd SLdM/D1DM'S3dO3HLS3G`dYRDI@d!d "3+Rd\D23Ld1LI53O3I13d RALYG2d1LIS'1SdRd!'G'c.d'SdG3'RSdS]Ld0YRDI3RRd2'`Rd03=O3dSA3d R1A32YG32dMY0GD1dA3.DI@dSLd O3NY3RSd'IdDI\DS(UDLId=OdSA3d!d"3'HRd From:Cody Terrell To:Boyer, David L (CED) Cc:Salazar, Grace (CED); Davies, Stephen F (CED); Roby, David S (CED) Subject:Re: [EXTERNAL] Thirty Day Notice for a Spacing Exception/Co-mingling Hearing for HVB-15 Date:Friday, October 1, 2021 1:21:37 PM I appreciate the heads up and that is the plan. I believe we will do the work once approvals are in. Sent from my iPhone On Oct 1, 2021, at 1:04 PM, Boyer, David L (CED) <david.boyer2@alaska.gov> wrote: Hi Cody, We received Hilcorp’s request for a spacing exception and comingling hearing for the Deep Creek field HVB-15 well on 09/30/21. We hope to schedule a hearing early in the week of November 8th , as we need at least two Commissioners present and time for the posting in the Anchorage Daily News. In your letter, you mention planning to add perforations on October 30, 2021. Given the logistics of scheduling a hearing, the adding of new perfs and proposed co-mingling will need to be delayed pending approvals from AOGCC. Best regards, Dave Boyer Senior Geologist AOGCC The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, pleaseimmediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. By Grace Salazar at 11:57 am, Sep 30, 2021