The URL can be used to link to this page

Home My WebLink AboutAIO 002 A 1) February 26, 1998 2) March 11, 1998 3) March 12,1998 4) March 31, 1998 5) April 3, 1998 6) November 5, 2005 ;, .I ) AIO ORDER NO. 2A BADAMI Application for Approval of Proposed Tabasco Pilot Waterflood Production Ltr from Arco re: Application Notice of Hearing and Affidavit of Publication e-mail re: Request from Arco e-mail re: Request from Arco ConocoPhillips (Alaska), Inc. request to continue WAG Injection Operations AIO 2A ~ .... of' - -" STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 Porcupine Drive Anchorage Alaska 9950 1-3192 Re: THE REQUEST OF ARCO ALASKA, INC for approval of a pilot watertlood project within the Tabasco accumulation in the Kuparuk River Unit. ) Area Injection Order No. 2A ) ARCa Alaska, Inc ) Kuparuk River Unit ) Kuparuk River Field ) Tabasco Pilot Watertlood Project June 4, 1998 IT APPEARING THAT: 1. ARCO Alaska, Inc. (" AAI") submitted an application on February 26, 1998, for approval of a proposed pilot watertlood project within the Tabasco accumulation in the Kuparuk River Unit. AAI submitted additional information about the project by letter dated March 11, 1998, e-mail messages dated March 30 and April 3, 1998, and correspondence dated May 11, 1998. 2. Notice of opportunity for public hearing was published in the Anchorage Daily News on March 12, 1998. 3. The Commission did not receive protest or a request for a public hearing. FINDINGS: 1. The proposed Tabasco pilot watertlood project will be conducted in the Kuparuk River Unit ("KRU") in sections 2 and 11, TlIN, R8E, UM. 2. The Commission has issued the following Area Injection Order ("AIO") and associated Administrative Approvals ("AA") for the KRU: AlO 2 (June 6, 1986), AA 2.1 and 2.2 (October 27, 1986), AA 2.3 (July 7, 1988), AA 2.4 (December 20, 1988), AA 2.5 (December 27, 1991) and AA 2.6 (January 27, 1994). The AAs modify or add to AlO 2. 3. The AlO and AAs govern Class II underground injection projects within the KRU 4. The hearing records and administrative files for the above listed AlO and AAs remain valid for the Kuparuk River Field. 5. AAI is the operator of the KRU There are no other operators within a one-quarter mile radius of the proposed Tabasco pilot waterflood project. ~ Area Injection Order #2A June 4, 1998 ,'-' Page 2 6. The State of Alaska is the only surface owner within a one-quarter mile radius of the proposed Tabasco pilot watertlood project. 7. AAI ,originally tested the Tabasco accumulation in well 2T-T AB-O 1 during 1995. The well has subsequently been renamed 2T-201. 8. The proposed pilot waterflood project will retest 2T-201; drill, core and test well2T- 202; produce 2T-202 for approximately 6 months; and inject water into 2T-201 to balance withdrawals from 2T -202. 9. The purpose of the pilot watertlood project is to further understand the displacement of high viscosity crude oil with low viscosity water in the Tabasco reservoir. 10. The pilot waterflood project is proposed for an undefined pool informally named Tabasco. The reservoir is encountered in we1l2T-201 between 3352' MD and 3599' MD, which correlates with an equivalent interval in the ARCO West Sak No.1 well between the depth of 4591' MD and 5324' MD. 11. The Tabasco interval is composed primarily of conglomerateratic sandstone with variable amounts of mudstone and shale. 12. The Tabasco interval is an informal name given to a hydrocarbon bearing, coarse- grained clastic member of the Schrader Bluff Formation, which is part of the late Cretaceous Colville Group and is locally present in the western portion of the KRU 13. Based upon well log data, approximately 315 feet of interbedded claystone, shale and mudstone of the late Cretaceous Colville Group overlie the Tabasco sands and constitute the upper confining layer for the Tabasco injection zone. The lower confining layer is a similar sequence of interbedded claystone, shale and mudstone with an approximate thickness of 650 feet. 14. We1l2T-201 has been completed with 16" conductor casing, 9 5/8" 40# L-80 surface casing and 7" 26# L-80 production casing. Prior to injection, the mechanical integrity of the well must be tested in accordance with 20 AAC 25.412(c). 15. Injection water will be supplied by the KRU Central Production Facility 2 ("CPF 2"). The proposed injection water is composed of produced water from the Kuparuk oil pool and treated seawater from the Beaufort Sea. Small amounts of emulsion breaker, scale and corrosion inhibitor and other products used in the production process may be present in CPF 2 water. There is no known incompatibility of this water with the Tabasco sands. 16. Expected injection rate is 1100 barrels of water per day to balance withdrawals, but could be higher depending on the productivity ofwe1l2T-202. 17. Injection water salinity will be greater than 14,700 ppm NaCl. "....... ,-.., Area Injection Order #2A June 4, 1998 Page 3 18. AAI estimates the surface injection pressure in we1l2T-201 will be 500 psig average and 1000 psig maximum. 19. AAI estimates the fracture gradient of the Tabasco sands at 0.65 psi/ft or less, based on test results in the Kuparuk and West Sak formations, and the fracture gradient in the confining mudstone intervals surrounding the Tabasco sands at 0.738 psi/ft. 20. AAI performed a model study of fracture tendency that indicated little potential for vertical fracture growth at injection rates significantly greater than the anticipated operating rate. AAI intends to operate the waterflood project to maintain the original reservoir pressure gradient of about 0.5 psiglft. 21. AAI using two different log analysis techniques estimates water salinity in the Tabasco sands between 7500 and 9500 ppm NaCl. 22. All aquifers in the KRU have been exempted by the u.s. Environmental Protection Agency under 40 CFR 147.102 for purposes of Class II underground injection. 23. The Tabasco accumulation in we1l2T-201 contains oil with a viscosity of250 cp., 16.8° API gravity and 169 SCF/STBO solution gas. 24. Formation permeability estimated from transient data is 3000 millidarcies in the vicinity of 2T-20 1. 25. Preliminary modeling studies indicate that primary production will recover approximately 5% of original oil in place. Watertlood support could add an additional 15% to 25% recovery. 26. All fluid produced during the pilot waterflood project will be measured using the Drill Site 2T test separator and will be commingled with Kuparuk crude oil. 27. Allocation of Tabasco production will be based on two or more well tests per month. 28. Allocation of injected water will be based on continuous metering at well2T-201. CONCLUSIONS: 1. The requirements of20 AAC 25.402 have been met for the Tabasco pilot waterflood project. 2. Area Injection Order 2 must be revised to accommodate the Tabasco pilot waterflood project. 3. Consolidating AlO 2 and Administrative Approvals 2.1,2.2,2.3,2.4,2.5 and 2.6 will improve the administrative function of the Commission and the application of those ,-.. ~ Area Injection Order #2A June 4, 1998 Page 4 rules and orders. Amending Rule 2 and Rule 4 to reflect current regulatory provisions under 20 AAC 25 concerning disposal is appropriate. 4. All aquifer in the KRU, including those in the Tabasco pilot watertlood project, are exempt aquifers. 5. Fluid injection at proposed rates and pressures will not initiate fractures into the confining zones. 6. Confining lithology, well construction and proposed operating conditions will confine injected fluids to appropriate receiving zones. 7. Proposed injection fluids can be reasonably expected to be compatible with Tabasco formation waters 8. We1l2T-201 is constructed in accordance 20 MC 25, but mechanical integrity must be demonstrated before injection may occur. 9. The Tabasco pilot waterflood project is necessary to collect reservoir performance data and determine an optimum reservoir management plan in order to increase ultimate hydrocarbon recovery. 10. The consolidation of AlO 2 and all corresponding administrative approvals and approval of the Tabasco pilot watertlood project will not cause waste, jeopardize correlative rights, or impair ultimate recovery. NOW, THEREFORE, IT IS ORDERED that Area Injection Order #2 and Administrative Approvals 2.1,2.2,2.3,2.4,2.5 and 2.6 are revoked and reissued as Area Injection Order #2A with the following rules to govern Class II injection operations in the affected area described below. The administrative record for AlO #2 and its corresponding administrative approvals are made part of the record for this order: UMIAT MERIDIAN T13N R8E Section 1,2,3, 10, 11, 12, 13, 14, 15,23,24,25,26,27,33, 34, 35, 36. T13N R9E Section 1,2, 3,4, 5, 6, 7, 8, 9, 10, 11, 12, 15, 16, 17, 18, 19,20,21,22,25,26,27,28,29,30,31,32,33,34,35,36. Tl2N R8E Entire Township. T12N R9E Entire Township. T12N RlOE Section 1,2,3,4, 5, 6, 7, 8, 9, 10, 11, 12, 14, 15, 16, 17, 18 19,20,21,22,23,25,26,27,28,29,30,31,32,33,34,35, 36. T12N RIlE Section 5, 6, 7, 8, 31. - Area Injection Order #2A June 4, 1998 TIIN R7E TUN R8E TUN R9E TUN RI0E TUN RUE TI0N R7E TI0N R8E TlON R9E TI0N RI0E TlON RUE T9N R9E T9N RI0E T9N RUE /~ Page 5 Section 24, 25, 26, 34, 35, 36. Entire Township. , ,~"..t. ... _'. ,>. .# Entire Township. Entire Township. Section 5,6, 7, 8, 16, 17, 18, 19,20,21,22,27,28,29,30, 31, 32, 33. Section 1, 2, 3,4,9, 10, 11, 12, 13, 14, 15, 16,21,22,23, 24,25,26,27,28,33,34,35,36. Entire Township. Entire Township. Entire Township. Section 5, 6, 7, 8, 17, 18, 19,20,29, 30, 31, 32. Section 3,4, 5, 6, 7, 8, 9, 10, 13, 14, 15, 16, 17, 18, 19,20, 21,22,23,24. Section 1, 2, 3, 4, 9, 10, 11, 12, 13, 14, 15, 16,21,22,23, 24, 27, 28, 33, 34. Section 5,6, 7, 8, 17, 18, 19,20. Rule 1 Authorized Iniection Strata for Enhanced Recovery Within the affected area, non-hazardous fluids may be injected for purposes of pressure maintenance and enhanced oil recovery into strata defined as those strata which correlate with the strata found in the ARCO West Sak River State Well No.1 between the measured depths of3145 feet and 3640 feet; 3744 feet and 4040 feet; 4591 feet and 5324 feet; and 6474 feet and 6880 feet. Rule 2 Authorized Injection Strata for Disposal Within the affected area, Class II oil field fluids may be injected in conformance with 20 AAC 25 for the purpose of fluid disposal into strata defined as those strata which correlate with the strata found in ARCO West Sak River State Well NO.1 between the measured depths of3390 feet and 3640 feet; and with the strata found in ARCO/BP Ugnu Well No.1 between the measured depths of8370 feet and 8800 feet; within tract ADL 25648 (Sections 3, 4, 9, and 10, TIIN, RI0E, UM) into the zone which correlates with the ,-- ,...-., Area Injection Order #2A - June 4, 1998 Page 6 strata found in ARCO West Sak River State Well NO.1 between the measured depths of 3145 feet and 3390 feet; and within portions of tracts ADL 355023, ADL 355024, and ADL 373301 (Sections 3,4, 5, 8, 9 and 10, T13N, R9E) into the non-hydrocarbon bearing portions {)fthe zone which cørrelates.with,the-strata found inARCO. Oliktok Point Well No.2 between the measured depths of2937 feet and 3544 feet. Rule 3 Fluid Iniection Wells The underground injection of fluids must be: 1) through a new well that has been permitted for drilling as a service well for injection in conformance with 20 AAC 25.005; 2) through an existing well that has been approved for conversion to a service well for injection in conformance with 20 AAC 25.280; or 3) through a well that existed as a service well for injection purposes on the date ofthis order. The pumping away of drilling muds, rock cuttings and other-waste as provided for in 20 AAC 25.080 into an exploratory or stratigraphic test well, or into the annuli of any well approved in accordance with 20 AAC 25.005, is an operation incidental to the drilling of the well, and is not considered a disposal operation subject to regulation as an injection well (Class II or otherwise) under authority of the UIC program. Rule 4 Monitoring the Tubing/Casing Annulus Pressures. The tubing/casing annulus pressure of each injection well must be checked weekly, as a routine duty, to ensure there is no leakage and that it does not exceed a pressure that will subject the casing to a hoop stress greater than 70% of the casing's minimum yield strength. Rule 5 Reporting of Tubing/Casing Annulus Pressure Variations. Tubing/casing annulus pressure variations between consecutive observations need not be reported to the Commission. Rule 6 Demonstration of Tubing/Casing Annulus Mechanical Integrity A schedule must be developed and coordinated with the Commission, which ensures that the tubing/casing annulus for each injection well is pressure tested prior to initiating injection and at least once every four years thereafter. A test surface pressure of 1500 psi or 0.25 psi/ft multiplied by the vertical depth of the packer, whichever is greater, but not to exceed a hoop stress greater than 70% of the casing's minimum yield strength, must be held for 30 minutes with no more than a 10 percent decline. Alternative EP A methods may also be used with Commission approval, including but not limited to timed-run radioactive tracer survey (RTS), oxygen activation logs, temperature logs and noise logs. Wells with tubing-to-casing communication must be surveyed or logged every other year and wells which demonstrate mechanical integrity every fourth year. The Commission must be notified at least 24 hours in advance to enable a representative to witness pressure tests or the application of alternative methods. .~ .~~ Area Injection Order #2A June 4, 1998 Page 7 Rule 7 Well Integrity Failure Whenever operating pressure observances or pressure tests indicate pressure communication or leakage of any casing;-tubingor packer,. theoperatOf must notify the Commission on the first working day following the observation, obtain Commission approval of a plan for corrective action, and when an USDW is not endangered, obtain Commission approval to continue injection. Rule 8 Plugging and Abandonment of Fluid Iniection Wells An injection well located within the affected area must not be plugged or abandoned unless approved by the Commission in accordance with 20 AAC 25.105. Rule 9 Administrative Relief Upon request, the Commission may administratively amend any rule stated above as long as the operator demonstrates to the Commission's satisfaction that sound engineering practices are maintained and the amendment will not result in an increased risk of fluid movement into an underground source of drinking water. DONE at Anchorage, Alaska and dated June 4, 1998. Robert N. Christenson, Commissioner ~(~L Carnillé Oechsli, Commissioner 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 othelWise 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 ofthe Commission, the 30-day period for appeal to Superior Court runs from the date on which the request is deemed denied i.e., 10th da after the a lication for rehearin was filed . #6 ) ConocJP'hillips Alaska IRE- ("\F: "'». !~':à ,#"Ij"""·' "t·"" '" (\1",,«1", ..... .'~ l,Jí' Æ""'·,,, 1>1 )\: NOV .!~'Iªsk.a Oil I.~~ P.O. BOX 100360 ANCHORAGE, ALASKA 99510-0360 November 5, 2005 Mr. Tom Maunder Alaska Oil & Gas Commission 333 West ih Avenue, Suite 100 Anchorage, AK 99501 Subject: Kuparuk Well2M-09A (PTD 1960900) Request for Administrative Relief to Continue WAG Injection Operations Dear Mr. Maunder: ConocoPhillips Alaska, Inc., requests approval to continue WAG injection operations into Kuparuk well 2M-09A. This request is pursuant to Area Injection Order No. 2A, Rule 9 Administrative Relief. Kuparuk well2M-09A was completed with a packer that does not meet construction requirements in 20 AAC 25.412 (b). Pressure testing of tubing and casing strings indicates the well has competent mechanical integrity and can be safely operated. Three barriers have been defined that will prevent an inadvertent release and confine fluids to the approved zones. The attached Technical Justification includes a proposed operating and monitoring plan. Daily monitoring of the wellhead and casing mechanical integrity tests are proposed to verify the well continues to be safe to operate. Should observations or tests indicate a compromise of well integrity the well will be shut-in and the AGOCC will be notified. There is no source of underground drinking water in this area and so is not endangered by this proposal. If you need additional infonnation, please contact me at 659-7043, or Marie McConnell / MJ Loveland at 659-7224. Sincerely, y.. ../~~ Jerry Dethlefs Problem Well Supervisor Attachments ") ConocoPhillips Alaska, Inc. Kuparuk We1l2M-09A (PTD 1960900) Technical Justification for Administrative Relief Request Proposal ConocoPhillips Alaska, Inc., proposes that the AOGCC approve this Administrative Relief request for an exception of20 AAC 25.412 (b) well construction standards for Kuparuk injection well 2M -09A. Well History and Status Kuparuk River Unit we1l2M-09A (PTD 1960900) was originally completed in January 1993 (PTD 92-79) as a producing well. In June 1996 the well was sidetracked to a new bottom-hole location and re-named 2M-09A. The well was converted from a producing (development) well to a WAG injector (service well) at the time of completion of the sidetrack. The completion subsequent to the sidetrack in 1996 includes a packer that was set at 4717' MD (2936' TVD). The top of the perforated zone in the well is 9084' MD (6036' TVD). As per 20 AAC 25.412 (b), the completion configuration does not meet the 200' maximum distance from the packer to the approved injection zone. The distance between the packer and perforations is 4367' MD (3100' TVD). The completion includes a nipple profile in the liner section at 9017' MD (5981' TVD) that is within the depth requirement of 20 AAC 25.412 (b). The profile can be used to test the production casing between the packer and perforated interval via setting a plug and performing an MIT. The distance between the profile and perforations is 67' MD (55' TVD). On October 29,2005 a sand plug was found above the perforations at 9073' MD (4706' TVD). An MIT -Twas conducted against the sand plug to 3000 psi for 30 minutes. Based on this data the tubing and casing have integrity down to the approved injection zone. Attached are test forms for the MIT-T performed 10/29/05 plus the previously submitted MIT-IA performed 8/12/05. Barrier and Hazard Evaluation Tubing: The 3-1/2" 9.3# L-80 tubing has integrity to the packer @ 4717' MD based on passing MIT tests dated 9/30/2001 and 8/12/2005. Test pressures were 1850 and 2060 psi, respectively. Production casing: The 7" 26# L-80 production casing has integrity to the packer @ 4717' MD based on the MIT tests described above. Surface casing: The well is completed with 9-5/8" 40# L-80 surface casing with an internal yield pressure rating of 5750 psi. The surface casing is set at 4306' MD (2775' TVD). An 80 bbl cement shoe was pumped on 8/19/1988 which passed a 1000 psi pressure test. Primary barrier: The primary barrier to prevent a release from the well and provide zonal isolation is the tubing and packer. Second barrier: The production casing is the secondary barrier should the tubing fail. NSK Problem Well Supervisor 11/5/2005 1 ) Third barrier: The surface casing and cement shoe will act as a third barrier should the first two barriers have failures. Monitoring: Each well is monitored daily for wellhead pressure changes. Should leaks develop in the tubing or production casing above the surface casing shoe it will be noted during the daily monitoring process. Any deviations from approved MAOP annular pressures require investigation and corrective action, up to and including a shut-in of the well. Proposed Operating and Monitoring Plan 1. Approve service for either water or MI gas injection; 2. Perform MIT-IA at 2-year frequency to verify tubing and production casing have not developed communication problems; 3. Perform MIT -Tubing at 2-year frequency by setting a plug in the nipple @ 9017' MD (5981' TVD) to verify integrity of the production casing from the packer to the approved zone within the depth criteria required in 20 AAC 25.412 (b); 4. Notify the AOGCC should MIT test results, injection rates or wellhead pressures indicate annular communication problems have developed. NSK Problem Well Supervisor 11/512005 2 ) ) STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Mechanical Integrity Test Email to:Tom_Maunder@admin.state.ak.us;Bob_Fleckenstein@admin.state.ak.us;Jim_Regg@admin.state.ak.us OPERATOR: FIELD I UNIT I PAD: DATE: OPERATOR REP: AOGCC REP: ConocoPhillips Alaska Inc. Kuparuk I KRU 12M 1 0/29105 Wilson - HES o F o P Well P.T.D. Notes: Well P,T.D. Notes: Test Details: TYPE INJ Codes F = Fresh Water Inj G = Gas Inj S = Salt Water Inj N = Not Injecting TYPE TEST Codes M = Annulus Monitoring P = Standard Pressure Test R = Internal Radioactive Tracer Survey A = Temperature Anomaly Survey D = Differential Temperature Test INTERVAL Codes I = Initial Test 4 = Four Year Cycle V = Required by Variance T = Test during Workover o = Other (describe in notes) MIT Report Form Revised: 06/19/02 MIT KRU 2M-09A 10-29-05.xls ) ) STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Mechanical Integrity Test Email to:Tom_Maunder@admin.state.ak.us;Bob_Fleckenstein@admin.state.ak.us;Jim_Regg@admin.state.ak.us OPERATOR: FIELD I UNIT I PAD: DATE: OPERATOR REP: AOGCC REP: ConocoPhillips Alaska Inc. KRU 2M 08/12/05 Arend/Savageau AES Chuck Scheve S P Packer Depth TVD 6,040' Tubing Test psi 1510 Casing Test Details: TYPE INJ Codes F = Fresh Water Inj G = Gas Inj S = Salt Water Inj N = Not Injecting TYPE TEST Codes M = Annulus Monitoring P = Standard Pressure Test R = Internal Radioactive Tracer Survey A = Temperature Anomaly Survey D = Differential Temperature Test INTERVAL Codes I = Initial Test 4 = Four Year Cycle V = Required by Variance T = Test during Workover 0= Other (describe in notes) M IT Report Form Revised: 06/19/02 MIT KRU 2M 08-12-05.xls 4 P 4 P 4 P 4 P 4 P 4 P 4 F 4 P 4 P ) .CQnqc()Ph¡IIip$A~::~~ Int:. I API: 501032017701 , SSSV Type: NIPPLE NIP (514-515. aD 3 ':,00) TU8Ir.JG (0-4719. 00 ~ 500 1029",2) Gas Lift mdrel/Durr, m y V~Iv~ 1 (4631-4632, OD5563) PROD CASII.JG (0-4"'80, 00 7 000 Wt 26 00) IIIP (4677-4678, 003 ':.00) PKR (4717-4713, ODE. 151) SPACE OUT (47113-4719 OD 3 500) TIL (471'j..4720 00.3 500) NIP (9017-9018, OD:5.000) LINER (4717-9402. OD:4.500, Wt:12.60) Perf (9084-9096) Perf (9104-9133) Perf (9149-9214) [I i!IIIIIIIIIIIII . . .. I - I--- - I--- - - - - - - - - - - - - - - - - - - - - - - - - = = - - - - - - - - - - - - ) KRU 2M-09A Well Type: INJ Orig 6/14/1996 Completion: Last W/O: Ref Loq Date: TD: 9405 ftKB Max Hole Anqle: 69 dea ía> 4124 Analeía>TS: 36deaía> 9084 Angle @ TD: 33 deg @ 9405 '~J Annular Fluid: Reference Loq: Last Taq: 9084 Last T aq Date: 10/30/2005 ¡ Casing String - CONDUCTOR ,Description I Size I Top I Bottom 1 TVD I Wt I Grade 1 Thread , CONDUCTOR 1 16.000 I 0 I 121 1 121 I 62.50 1 H-40 1 ¡ Casine Strine - SURFACE . DescriDtion 1 Size I TOD I Bottom I TVDr Wt I Grade 1 Thread SUR. CASING 1 9.625 I 0 I 4306 1 2775 I 40.00 1 L-80 I CásinåStdnå ..~ÞRO DUCTIONCÄbeindonedÖrh1hïil Wellbore:5ideti'âêk.Kick Offlä>498Ör¡.·· ... Description I Size I Top I Bottom I TVD I Wt I Grade I Thread PROD. CASING 1 7.000 I 0 1 4980 I 3043 1 26.00 I L-80 I ¡ Casine Strine - LI NER : DescriDtion 1 Size I TOD I Bottom I TVD 1 Wt I Grade I Thread LINER 1 4.500 I 4717 1 9402 I 6297 1 12.60 I L-80 I i Tubing String - TUBING : Size 1 TOD 1 Bottom I TVD I Wt 1 Grade I 3.500 1 0 1 4719 I 2937 I 9.30 I L-80 I i Perforations Summary Interval TVD Zone 9084 - 9096 6036 - 6046 C-4 JA-5 Rev Reason: TAG FILL Last UDdate: 10/31/2005 :4' Thread EUE 8RD MOD Status Ft SPF Date TVDe Comment 12 3 7/10/1996 IPERF 21/8" HC, 180 deg. phase; oriented 165 deg. CCW F/ HiqhSi 29 3 7/10/1996 IPERF 21/8" HC, 180 deg. phase; oriented 165 deg. CCW F/ HiahSi 65 4 7/10/1996 IPERF 21/8" HC, 180 deg. phase; oriented 165 deg. CCW F/ HiahSi G~sUftMåhdtel$Nalves.}> . ....< < .. · < ..... ." ... ..... . ..... . .............<><.. . St I MD I TVD I ~~~ Man Type I V Mfr V Type I V OD Latch I Port I TRO ~~~ I C~~t 1 1 46311 29011 Cameo MMM I DMY I 1.5 RK T 0.000 I 0 6/14/19961 ·Other. :DhJós<9QUibJétc;)",JEWELRY ..< ...< ... ... .... < <i<·· ... ..............< ..... .... . .....< / < DeDth TVD TVDe DescriDtion ID 514 513 NIP Cameo 'OS' Nipple NO GO 2.812 4677 2919 NIP Cameo 'W-1' 2.812 4717 2936 PKR Baker 'ZXP' w/7.39' C2 Tie Back Sleeve 4.438 4718 2936 SPACE 2.992 OUT TTL NIP 9104 - 9133 6052 - 6076 A-4 9149 - 9214 6089 - 6142 A-3 4719 9017 2937 5981 Cameo 5" X 3.813" DB5 Nipple w/3.81 maxi big bore lock w/Otis 2.313" X Drofile & WL entry auide 2.992 2.313 #5 ---.. ~ Auth~r: JAWALKER@mail.aai. ~o.com (Jack A Walker) at CC2ML Date: 4/3/98 9:09 AM Priority: Normal TO: Jack Hartz at DOA-AOGCC CC: BHAINEY@mail.aai.arco.com at CC2MHS1, RKECK@mail.aai.arco.com at CC2MHS1 Subject: Re: Tabasco Pilot Injection - Request Additional Information (JG- T~ Jack, Pursuant our phone conversation, I'm sending the following information regarding our fracture modeling of the Tabasco interval. Please call me at 265-6268 with any questions. Jack 2T-201 Fracture Analysis Proposed injection is unlikely to fracture the Tabasco sandstone because the permeability is very high. ARCO estimates aTabasco sandstone oil 'fC'" \ permeability of 3000 md at the proposed injector, 2T-201, based on pressure! transient analysis of a pressure build-up test conducted in 1995. Though (/ !,. Tabasco fracturing is unlikely, ARCO conducted a fracture simulation of // this well to demonstrate that the intervals above and below the injection zone would contain an injection-induced fracture. ARCO performed StimPlan analysis of a fractured Tabasco water injection well injecting 5000 BPD fo~iod of one year. StimPlan is a pseudo-3D fracture simulator available~rõmïÑŠÍ·Technologies Incorporated. StimPlan is accepted in the industry for fracture modeling and it is a proven tool for predicting fracture height growth. Some limitations of this analysis are that StimPlan cannot predict if a fracture will initiate, but must assume that one does. Also, due to the reqÚired input õf'leakoff as a d~;li~i;g~funèt1'õñ-of the square root of time, the simulation for fracture half-length is more credible at short injection periods of hours or days than it is for longer injections of weeks, months and years. The simulator shows little potential for height growth outside the injection zone, only 50' upward and 23' down. The figure below shows the fracture cross-section at 2.5 days, 1 week, 1 month and 1 year. The StimPlan input data and calculated results are shown below. (Embedded image moved to file: PIC30497.PCX) I Design Data 1 -------------------------------------------------------------------1 FLUID LOSS Top Bottom Thick Loss Coef. Spurt I LAYERS: (ft) (ft) (ft) (ft/sqrt(min)) (Gal/100 ft^2) I 2489.0 2589.0 100.0 0.01100 0.00 1 2904.0 3146.0 242.0 0.01100 0.00 I 3246.0 3346.0 100.0 0.01100 0.00 I -------------------------------------------------------------------1 FORMATION: Modulus (e6ysi) ...................... 0.52 I Perforated Height (ft) ................ 241. 0 1 TEMPERATURE: Bottom Hole (deg_F) ................... 70 I PRESSURE: Reservoir Pressure (psi) .............. 1400.0 I Closure Pressure (psi) ................ 1966.3 1 DEPTH: Well Depth (ft) ....................... 2904.0 I -------------------------------------------------------------------1 FORMATION LAYER DATA - Multi-Layer Height Growth 1 -----Depth(ft)------ -Stress (psi)-- Gradient Modulus Toughness I Top Botm Thick Top Botm (psi/ft) (e6_psi) (psi?in) I 100.0 2489.0 2389.0 74.0 1841.9 0.740 0.52 400.0 1 2489.0 2589.0 100.0 1618.0 1683.0 0.650 0.52 400.0 1 2589.0 2904.0 315.0 1916.0 2149.1 0.740 0.52 400.0 I 2904.0 3146.0 242.0 1888.0 2045.3 0.650 0.52 400.0 I 3l46.0 3246.0 lOO.O 2328.0 2402.0 0.740 0.52 400.0 I I 3246.0 3346.0 100.0 2110.0 2175.0 0.650 0.52 400.0 I 3346.0 ~ 2461.0 0.740 0.5~ 400.0 I' Fluid Pressure Gradi<;alt (psi/ft) .................... 0.442 I Perforations - Top (ft). . . . . . . . . . . . . . . . . . . . . . . . . . . 2904 I - Bot (ft). . . . . . . . . . . . . . . . . . . . . . . . . . . 3145 I I Initial Fracture Top (ft) ........................... 2904 I I Fracture Bottom (ft) ........................ 3145 I 1-------------------------------------------------------------------1 I 3-D SIMULATOR Step Size (ft) ..................... 50.8 1 I PROGRAM CONTROL Time Step (min) .................... 13995.2' 1 1 1 1 Calculated Results I from 3-D Simulator I STIMPLAN (TM) , NSI , Tulsa,OK I I Licensed To: ARCO Exploration and Production Technology 1 1----------------------------------------------------------1 1 1/2 LENGTH: 'Hydraulic' length (ft) ........... 860.8 1 I Propped length (ft) ................ 0.0 I I PRESSURE: Max Net Pressure (psi) ............. 100.0 1 1 TIME: Max Exposure to Form. Temp. (min) 13441.8 1 I Time to Close (min) .............. 1586.8 1 I RATE: Fluid Loss Rate during pad (_BPM).. 0.00 I I EFFICIENCY: at end of pumping schedule ......... 0.00 1 1 PROPPANT: Average In Situ Conc. (#/sq ft) .... 0.0 1 1 Average Conductivity (md-ft) ....... 0 I I HEIGHT: Max Fracture Height (ft) ........... 313.7 1 I WIDTH: Avg width at end of pumping (in) ... 0.71 'I I I ---------------------- Forwarded by Jack A Walker/AAI/ARCO on 04/02/98 05:44 PM --------------------------- Jack A Walker 03/30/98 02:44 PM To: Jack Hartz@admin.state.ak.us cc: Subject: Re: Tabasco pilot Injection - Request Additional Information (Document link not converted) Jack, thanks for the feedback. Do you have any questions regarding the production practices for the Tabasco pilot (I sent a separate letter on production practices.)? Responses to the injection application info. follow. Response to item 1: Injector 2T-201 (formerly called 2T-Tab-01) location at top of interval: 43'FNL, 689' FEL, Sec. 11, T11N, R8E, UM At total depth: 87'FNL, 843'FEL, Sec. 11, T11N, R8E. Producer 2T-202 loco at top interval: 1966'FSL, 868'FEL Sec. 2, T11N, R8E Producer 2T-202 loco at TD: 2059'FSL, 955'FEL, Sec. 2, T11N, R8E Response to item 2: We believe the fracture gradient of the Tabasco Sandstone will be 0.65 psi/ft, or less, based on testing in Kuparuk and West Sak. We plan on performing step rate injection tests to determine Tabasco parting pressure. The shale intervals around the Tabasco Sandstone hold a gradient of 0.738 psi/ft, or higher, without leakoff. Fracture modeling, based on an estimated Tabasco parting pressure and leakoff, and the demonstrated shale · .pFessures, indicated that the shale layers would contain a fracture in the 'Tabasco Sandstone if a fra~re was initiated. ~. Please call me at 265-6268 to discuss the injection application. Jack Jack_Hartz@admin.state.ak.us on 03/25/98 10:09:00 AM To: Jack A Walker/AAI/ARCO cc: Wendy_Mahan@admin.state.ak.us, Bob_Crandall@admin.state.ak.us, Shelly_Hebert@admin.state.ak.us Subject: Re: Tabasco Pilot Injection - Request Additional Information File: (Shelly file a copy with the captioned application) Jack Myself, Bob Crandall and Wendy Mahan met yesterday to review your appliction. There are two items that need to be clarified or expanded for the record being developed to address the application. 1. Project area - the project area needs to be defined for purposes of the order. Township, range amd sections need to be documented and we will incorporate that into our order. 2. Attachment 11 - Fracture Information. This section needs to be supplemented with some model or simulation analysis that shows the proposed operation will be confined to the injection interval. Usually, some fundamental fracture analysis is sufficient for the purpose of demonstrating that the problem has been addressed that a finding and conclusion can be supported. Sometimes operators analyze the expected situation utilizing known fluid, rock and other relevant physical parameters to demonstrate the impact of operations on the recieving zones and the confining layers. We would like to have this information by April 7th so we can look it over before finalizing the order (about April 15+) Call me if you have any questions. Jack Hartz Alaska Oil & Gas Conservation Commission Main Switchboard 907-279-1433 X 232 Direct Line 907-793-1232 Fax 907-276-7542 email jack_hartz@admin.state.ak.us ------------------------- Original message header: >MAIL FROM:<JAWALKER@mail.aai.arco.com> >RCPT TO:<Jack Hartz@admin.state.ak.us> >DATA >Received: from inetg1.Arco.COM ([130.201.119.253]) by pop1.state.ak.us (Post.Of fice MTA v3.1.2 release (P0205-101c) ID# 0-44072U100L100S0) with ESMTP id AAA107 for <Jack_Hartz@admin.state.ak.us>i Fri, 3 Apr 1998 09:10:41 -0900 >Received: from mail.aai.arco.com ([136.226.206.36]) by inetg1.Arco.COM (8.8 . ,.5/8.8.5) with SMTP id MAA25951 tor <Jack Hartz@admin.state.ak.us>¡ Fri, 3 A 'pr 1998 12:10:48 -0600 (CS~ - ~ . >Rece~ved: by mail.aai.arco.~om(Lotus SMTP MTA SMTP MTA v1.1.ù4 (495.1 10-24-19 97)) id 8A2565DB.0068E46F ¡ Fri, 3 Apr 1998 09:05:42 -1000 >X-Lotus-FromDomain: ARCa >From: "Jack A Walker"<JAWALKER@mail.aai.arco.com> >To: Jack Hartz@admin.state.ak.us >cc: "Bryant Hainey"<BHAINEY@mail.aai.arco.com>, "Richard Keck"<RKECK@mail.aai.a rco.com> >Message-ID:<8A2565DB.00146F7D.00@mail.aai.arco.com> >Date: Fri, 3 Apr 1998 09:09:56 -1000 >Subject: Re: Tabasco Pilot Injection - Request Additional Information >Mime-Version: 1.0 >Content-type: multipart/mixed¡ Boundary=" 0_= IytyZAieAgx3yNrnxVWFq5 lj IihQm6 X416IBfDw6yRpJVUgYu1NStPOBG" ------------------------- End of message header. · . ncc 21 tIJ 25tIJ 3JCC 32CC ,~ TZlbZl~CQ WZlI!: r hI!: cllon "oI~ . Tm e CD 2.5 D~~ ,1 Week,1 Uonlh Zlra 1 YeZlr 26CC I I I I 1 I í -,--,--,--,-- I I I I _..1_ _ L _ _1_ _ -1__ I :<aCC -,- -,- -1- -,__- I I I I I 2CC ..CC GCC 8IJC F r2IC kJre Pe re ~Zlllon '11) #4 Author: Jack Hartz at DOA- .hcc ì) Date: 3/31/98 10:00 AM Priority: Normal TO: Bob Crandall, Wendy Mahan Subject: Re: Tabasco Pilot Injection - Request Additional Information This is responce to earlier questions. Jack Forward Header Re: Tabasco Pilot Injection - Request Additional Information JAWALKER@mail.aai.arco.com (Jack A Walker) at CC2MHS1 3/30/98 2:44 PM Subject: Author: Date: Jack, thanks for the feedback. Do you have any questions regarding the production practices for the Tabasco pilot (I sent a separate letter on production practices.)? Responses to the injection application info. follow. Response to item 1: Injector 2T-201 (formerly called 2T-Tab-01) location at top of interval: 43'FNL, 689' FEL, Sec. 11, T11N, R8E, TIM At total depth: 87'FNL, 843'FEL, Sec. 11, T11N, R8E. Producer 2T-202 loco at top interval: 1966'FSL, 868'FEL Sec. 2, T11N, R8E Producer 2T-202 loco at TD: 2059'FSL, 955'FEL, Sec. 2, T11N, R8E Response to item 2: We believe the fracture gradient of the Tabasco Sandstone will be 0.65 psi/ft, or less, based on testing in Kuparuk and West Sake We plan on performing step rate injection tests to determine Tabasco parting pressure. The shale intervals around the Tabasco Sandstone hold a gradient of 0.738 psi/ft, or higher, without leakoff. Fracture modeling, based on an estimated Tabasco parting pressure and leakoff, and the demonstrated shale pressures, indicated that the shale layers would contain a fracture in the Tabasco Sandstone if a fracture was initiated. Please call me at 265-6268 to discuss the injection application. Jack Jack Hartz@admin.state.ak.us on 03/25/98 10:09:00 AM To: Jack A Walker/AAI/ARCO cc: Wendy_Mahan@admin.state.ak.us, Bob Crandall@admin.state.ak.us, Shelly_Hebert@admin.state.ak.us Subject: Re: Tabasco Pilot Injection - Request Additional Information File: (Shelly file a copy with the captioned application) Jack Myself, Bob Crandall and Wendy Mahan met yesterday to r:~y.i~w Y9µr R I.BJ;\q 1. . 200 i' ~~Lj-\~\J~\jIt:LI ,J1!,.1ŠXJ.:~ H.. ,4 ~ ,. appliction. There are ~wo items that need to be clarifj~d or expanded for the record being d )loped to address the applicati } 1. Project area - the project area needs to be defined for purposes of the order. Township, range amd sections need to be documented and we will incorporate that into our order. 2. Attachment 11 - Fracture Information. This section needs to be supplemented with some model or simulation analysis that shows the proposed operation will be confined to the injection interval. Usually, some fundamental fracture analysis is sufficient for the purpose of demonstrating that the problem has been addressed that a finding and conclusion can be supported. Sometimes operators analyze the expected situation utilizing known fluid, rock and other relevant physical parameters to demonstrate the impact of operations on the recieving zones and the confining layers. We would like to have this information by April 7th so we can look it over before finalizing the order (about April 15+) Call me if you have any questions. Jack Hartz Alaska Oil & Gas Conservation Commission Main Switchboard 907-279-1433 X 232 Direct Line 907-793-1232 Fax 907-276-7542 email jack_hartz@admin.state.ak.us ------------------------- Original message header: >MAIL FROM:<JAWALKER@mail.aai.arco.com> >RCPT TO:<Jack Hartz@admin.state.ak.us> > DATA >Received: from inetg1.Arco.COM ([130.201.119.253]) by pop1.state.ak.us (Post.Of fice MTA v3.1.2 release (P0205-101c) ID# 0-44072U100L100S0) with ESMTP id AAA160 for <Jack_Hartz@admin.state.ak.us>¡ Mon, 30 Mar 1998 14:45:27 -0900 >Received: from mail.aai.arco.com ([136.226.206.36]) by inetg1.Arco.COM (8.8 .5/8.8.5) with SMTP id RAA07101 for <Jack_Hartz@admin.state.ak.us>¡ Mon, 30 Mar 1998 17:45:09 -0600 (CST) >Received: by mail.aai.arco.com(Lotus SMTP MTA SMTP MTA v1.1.04 (495.1 10-24-19 97)) id 8A2565D8.0003ABOB ¡ Mon, 30 Mar 1998 14:40:03 -1000 >X-Lotus-FromDomain: ARCO >From: "Jack A Walker"<JAWALKER@mail.aai.arco.com> >To: Jack Hartz@admin.state.ak.us >Message-ID:<8A2565D3.0010C546.00@mail.aai.arco.com> >Date: Mon, 30 Mar 1998 14:44:24 -1000 >Subject: Re: Tabasco Pilot Injection - Request Additional Information >Mime-Version: 1.0 >Content-type: text/plain¡ charset=US-ASCII ------------------------- End of message header. SC¡\~\\NEL) ~HJN 1 B 200c~ #3 ) Notice of Public Hearing STATE OF ALASKA Oil and Gas Conservation Commission Re: The application of ARCO ALASKA, INC. for approval of a waterflood injection pilot in the Kuparuk River Unit. The Alaska Oil and Gas Conservation Commission has been requested, by letter dated February 26, 1998, to issue an order allowing water injection into the 2T - Tab-O 1 well as part of a pilot waterflood tract operation in the Kuparuk River Unit. A person who may be harmed if the requested order is issued may file a written protest prior to 4:00 PM March 31, 1998 with the Alaska Oil and Gas Conservation Commission, 3001 Porcupine Drive, Anchorage, Alaska 99501, and request a hearing on the matter. If the protest is timely filed and raises a substantial and material issue crucial to the Commission's determination, a hearing on the matter will be held at the above address at 9:00 AM on April 15, 1998 in conformance with 20 AAC 25.540. If a hearing is to be held, interested parties may confirm this by calling the Commission's office, (907) 279-1433 after March 31,1998. Ifno protest is filed, the Commission will consider issuance of the order without a hearing. If you are a person with a disability who may need a special modification in order to COlnment or to attend the public hearing, please contact Diana Fleck at 279-1433 no later than April 13, 1998. Published March 12, 1998 ADN AO 02814029 OR\GINAL 3C1tNNED JUN .L 't) :~G04 1113 2 13 STOF0330 AO-02814029 $65.52 ) ) AFFIDAVIT OF PUBLICATION 3/12/98 "Notice"Qf~~I:"iC ',lieC1~i!19 I ' "'sT~i,:~6~'A.~LÅs~A , ..'. '>'i'Oilartd·'GøSi,;' " I C;o'nservation C~~,mi.~siqn, , I, Re: I "The ;ciPP'i~oti'~~' ~ O,fl '~~C~ ALASKA, I NC. ,for apProval .tîf a waterfloo~'I~'ledlo~' pllot'I~: the K~~ar!Jk Rive~ "W~,t. , ::' The AIÇlska 01,1, and GQ~: Consefvation, C;ommlsslot] has I)eenrequested,', bY'ile~ter doted" February '26,1998,10' issue CI,n order ollowlhg water' iniectlor;! into the ,,2"r:~rqÞ·,o,l',:~eIJ a§:P!ilrt of a·' pll'ot ¡Wàte:rflooö ,tl'bctoR,~ eration I in' t.he ,Kuparuk RI,y~r" Unit 'I, ,'" I' '" ,r "''':' 'I, A :p~~~on ,;w~,o'I'r:nay"be ',~CJ/i1t~ ed If 't~ereQuested order ¡s' issued may :,file, a written pro- test prior, to, 4:00 'PM ·,March 31, 1998, with' the Alaska' 011, and Gas :Cqnser.~:Clt!on' com';'1 mission. 3ÔOl Pol'cup'l\eI~~I~(' 'AnchOrage,' ,Alaska" ,'99.50,t,,·CJn~: request a hearing on the,mdt· ter. If the' protest is t¡m~IY filed ond raises 0 substantlOl, and",r11ateriall,ssge, qrJ~19,!'I,tp 'fn~"'Commi~~lon"~" 'dE'te~m,l!na·: 11\',r. " tlt-orlfl ~ ¡,Jr, rru; I'11'JTlér "'" 1jE- nerd oJ! rr,,¡. ot..j.'':' ~d' ar..,~ ,)1 ý 0(' .. ", or, ...er,! I,~" lC¡';B In tororv,'rnar":,,, ."In .'J AÄ( ;I~ S.1f) If.) tlt,o.)r Irn;l I~ I,:. Qe~!t:lela~.· ··lnTereSr~t1.parT!Ii:~ may confirm· this by sailing the Commission's ,offlce'l (907)279-1433 "after Feb~uøry 25,1998. If no' protest 16.i,.'fi"lèdil the ... Commls,sion w.i' I .. ~p~~I,de, r; the Issuance of the ord~rwi'tH., ou':aheÇ\r.il'1~,:, '."1,1 ,I' . .. , ,'If., yqu 'Cjlre'" ~ liIer-soP,' '(v'lth. al ~ls9bll.1tY WhO h'),C,~!1@e~ ,::' I speciol accommociatlon¡ln,.. .,-, order, to '. ,portic'fÞåte": In ";t.l1e I dlscusslon/Plepse. C. Ql1tgct ,'..' Diana Fleck '6t' (~07' '279·1433 no later than March 19:·1998. Is/David W. Johhston ' . Commissioner I Pub.: March 12, 1998 ' STATE OF ALASKA, THIRD JUDICIAL DISTRIG. Eva H. Kaufmann ........",......................,.,............... being first duly sworn on oath deposes and says that he/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 E.nglish 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 and that such newspaper was regu larly 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. ~ ~ ~G:' SCÞJNNED JUN 1 8 20D~]· #2 Kuparuk Development Post Office Box 100360 700 G Street Anchorage, Alaska 99510 Telephone 907 265-6268 ~.~ ~~ £ fI/6 q, 11<. II '~, l' ~ ) ARCO Alaska, Inc. Jack Walker, Tabasco Coordinator March 11, 1998 Mr. David Johnston Alaska Oil and Gas Conservation Commission 3001 Porcupine Road Anchorage, AK 99501 Re: Waterflood Injection Pilot in Tabasco Well 2T-Tab-01 20 AAC 25.402 and 20 AAC 25.450 (b) Dear Sir: ARCO Alaska, Inc. (AAI) is evaluating development plans for the Tabasco accumulation in the Kuparuk River Unit. We briefed you on Tabasco plans on February 12, 1998, and applied for Alaska Oil and Gas Conservation Commission approval to conduct an enhanced recovery operation involving a pilot waterflood on February 26, 1998. Attachment 4 of the February 26, 1998 application contained an error. A revised Attachment 4 is attached. All other information in the February 26, 1998 application is correct to the best of my knowledge. We appreciate the AOGCC's work on this and we would be happy to answer any questions. I can be reached at 265-6268 or jawalker@mail.arco.com via the internet. Sincerely, d~,w~ Jack VValker Tabasco Coordinator !r',~CvC:IVL~' MAR 1 6 1998 J\fæfœOiJ&GasCons. CommissiOri AndJOMSe. SCANNEC ~JUN 1 8 200c1· ARCO Alaska, Inc. is a Subsidiary of AtlanticRichfieldCompany ) ) .. .. Waterflood Injection Pilot in Tabasco Well 2T -Tab-01 Attachment 4 · Revised 20 AAC 25.402 (c)(4) Description of the Proposed Operation The Tabasco Pilot Waterflood Tract Operation is necessary to design an improved recovery project. This Tabasco pilot waterflood injection approval is requested for injection of Kuparuk water in connection with an Enhanced Oil Recovery operation. It does not include gas injection nor disposal operations. The Tabasco accumulation was originally tested in 1995 in weIl2T-Tab-01 (API No. 50- 103-20230) in the Kuparuk River Unit. This test was encouraging, but inadequate to determine an optimum reservoir management program. The proposed Tabasco Pilot Waterflood Tract Operation will be comprised of the following steps: 1) Retest well 2T - T ab-O 1. 2) Drill, core, log and complete well 2T-202 in the Tabasco Sand. 3) Produce 2T-202 for approximately 6 months. 4) Inject water into Tabasco Sands in 2T-Tab-01 to balance offtake from 2T-202 The pilot waterflood has been designed to understand the displacement of the high viscosity (250 cp) crude in the Tabasco reservoir with low viscosity water (1 cp). Enhanced oil recovery with viscosified water will be evaluated. Surveys will be conducted to understand Tabasco waterflood conformance and pressure maintenance. Injection water will be supplied by Kuparuk River Unit Central Production Facility 2. Injection pressure and rates will be managed to maintain original Tabasco reservoir pressure. The proposed injector and producer will be equipped with equipment to control injection and production rates. All fluids produced during this Tract Operation will be measured using the Drill Site 2T test separator and commingled with Kuparuk Participating Area production. Allocation of production to Tabasco will be based on two or more Tabasco well tests per month. I njection water will be allocated to T abasco wells based on continuous metering at the 2T-Tab-01 well. The Greater Kuparuk Area Alignment Agreement will govern this Tract Operation and the allocation of costs and production to the working interest owners. The Tabasco interests are as follows: 5CJ\NNED JUN 1. 8 20 [V,! Production Interest 0.552937 0.392823 0.049506 0.003648 g:gg~g~g :; \ClICI V LL. ~ 1.000000 MAR 1 6 1998 4faska Oil & Gas Cons. Commissron Mar~ql1P,~g~8 Total Cost Interest 0.558726 0.396935 0.039605 0.003648 0.000000 0.001086 1.000000 ARCO Alaska, Inc. BPX UNOCAL MOBIL EXXON CHEVRON #1 ') ) ARCO Alaska, Inc. Kuparuk Development Post Office Box 100360 700 G Street Anchorage, Alaska 99510 Telephone 907265-6268 . RECE IV ED MAR (,4 1998 ~~ ~~ Alaska Oil & Gas Cons. Commission Jack Walker, Tabasco Coordinator Anchorage February 26, 1998 Mr. David Johnston Alaska Oil and Gas Conservation Commission 3001 Porcupine Road Anchorage, AK 99501 Re: Application for Approval of Proposed Tabasco Pilot Waterflood Production Practices 20 AAC 25 Article 3 Dear Sir: ARCO Alaska, Inc. (AAI) is evaluating development plans for the Tabasco accumulation in the Kuparuk River Unit. We briefed you on Tabasco plans on February 12, 1998. AAI in its capacity as operator submits this letter as an application for Alaska Oil and Gas Conservation Commission approval to commingle Tabasco production with Kupark production, and to produce Tabasco wells at a gas:oil ratio exceeding the solution gas:oil ratio by more than 100% during the Tabasco Pilot Waterflood Tract Operation. Commission approval of Tabasco injection was requested with a separate letter. Consistent with 20 AAC 25.240 (c), it is proposed to conduct this pilot to collect performance data necessary to determine an optimum reservoir management program. The proposed Pilot Waterflood Tract Operation will be comprised of the following steps: 1) Retest existing Tabasco well 2T-Tab-01. 2) Drill, core, log and complete well 2T-202 in the Tabasco Sand. 3) Produce 2T -202 for approximately 6 months. 4) Inject water into Tabasco Sand in 2T-Tab-01 to balance offtake from 2T-202. The Tabasco accumulation in well 2T-Tab-01 contains oil with 250 cp viscosity, 16.8 °API gravity and 169 SCF/STBO solution gas. There is evidence of a small gas cap, less than 1 % of the total hydrocarbon pore volume. Preliminary modeling studies indicate primary production would recover approximately 50/0 of original oil in place (OOIP), but waterflood support may add 15 to 25% OOIP recovery. This pilot waterflood is necessary to test waterflood conformance, injectivity, and productivity of the Tabasco Sand in the Drill Site 2T area. A short test was performed on 2T-Tab-01 in 1995 when it produced at an average gas:oil ratio of 15083 SCF per STBO. The high gas:oil ratio produced during the 1995 testing of 2T-Tab-01 was attributed to the primary gas cap being open in the well. Additional testing of 2T-Tab-01 is proposed after isolating the gas cap with a coiled tubing cement squeeze. Critical data related to reservoir productivity, solids production tendencies, and vertical permeability will be acquired from testi'l9. <?f ,2Im-1ab-,p¡1\. '¡ c' 200¡f¡ ~C1-\Nr'!El) ~...1 I\~ J. 0 ~I ARCO Alaska, Inc. is a Subsidiary of AtlanticRichfieldCompany ORiGINAL ~ " Mr. David Johnston February 26,1998 Page 2 ') ') The pilot waterflood has been designed to understand the displacement of the high viscosity (250 cp) crude in the Tabasco reservoir with low viscosity water (1 cp). Enhanced oil recovery with viscosified water will be evaluated. Injection water will be supplied by Kuparuk River Unit Central Production Facility 2. The proposed injector and producer will be equipped with equipment to control injection and production rates. Injection pressure and rates will be managed to maintain original Tabasco reservoir pressure. Surveys will be conducted to understand Tabasco waterflood conformance and pressure maintenance. All fluids produced during this Tract Operation will be measured using the Drill Site 2T test separator and commingled with Kuparuk Participating Area production. Allocation of production to Tabasco will be based on two or more Tabasco well tests per month consistent with 20 AAC 25.215 (a). Injection water will be allocated to Tabasco wells based on continuous metering at the 2T-Tab-01 well. The Greater Kuparuk Area Alignment Agreement will govern this Tract Operation and the allocation of costs and production to the working interest owners. The Tabasco interests are as follows: ARCO Alaska, Inc. BPX UNOCAL MOBIL EXXON CHEVRON Cost Interest 0.558726 0.396935 0.039605 0.003648 0.000000 0.001086 Production Interest 0.551667 0.391920 0.049506 0.003648 0.000000 0.001086 If the application is approved, ARCO Alaska, Inc. plans to commence production from 2T-Tab-01 as early as March, 1998 and operate pilot waterflood through September, 1998. Depending on the outcome of the initial pilot operations, AAI may apply for pool rules in June, 1998. We appreciate your work on this and we would be happy to answer any questions regarding this application. I can be reached at 265-6268 or jawalker@mail.arco.com via the internet. Sincerely, ~kJ~ Tabasco Coordinator 5C/-\N\NEL J UN 1 8 2084, ) ") Wateñlood Injection Pilot in Tabasco Well 2T -Tab-01 Attachment 1 20 AAC 25.402 (c)(1) Plat of Proposed Injection Well and Other Wells Penetrating Injection Zone Large map of Tabasco wells in the vicinity of Kuparuk Drill Site 2T is enclosed with the letter- sized documents. SCÞ\NNE'~> <cJUN 1 () 2004 February 26, 1998 ') ') Waterflood Injection Pilot in Tabasco Well 2T -Tab-01 Attachment 2 20 AAC 25.402 (c)(2) List of Operators and Surface Owners within One Quarter Mile of Injector Operator: Surface Owner: ARGO Alaska, Inc. Attention: Steve Kruse ATO-1128 P.O. Box 100360 Anchorage, AK 99510-0360 State of Alaska Department of Natural Resources Attention: Mike Kotowski P.O. Box 107034 Anchorage, AK 99510 &Ç¡'-\N~\~E[) JUN I ß 2004· February 26, 1998 ) ) Wateñlood Injection Pilot in Tabasco Well 2T-Tab-01 Attachment 3 20 AAC 25.402 (c)(3) Affidavit of Jack A. Walker Regarding Notice to Suñace Owners Jack A. Walker, on oath, deposes and says: 1, I am the Tabasco Coordinator at ARCO Alaska, Inc., the operator of the Tabasco Tract Operation within the Kuparuk River Unit. 2. On February 26, 1998, I caused copies of the application for the Tabasco Pilot Waterflood Tract Operation to be provided to the surface owner and operator of all land within a quarter mile of the proposed injection well as listed below: State of Alaska Department of Natural Resources Attention: Mike Kotowski P.O. Box 107034 Anchorage, AK 99510 ARCO Alaska, Inc. Attention: Steve Kruse ATO-1128 P.O. Box 100360 Anchorage, AK 99510-0360 ~....··~VL ~ ~ /J J Ú Jack A. wafkerr'- "-- STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) SUBSCRIBED AND SWORN to before me this 25th day of February, 1998. NO~~I~ÑD~óL My Commission Expires: \ ü \ \ \ \ð-.O 0 Ù SCANNEL ,jUN ~_~ Ü 2004 February 26, 1998 ) ) Wateñlood Injection Pilot in Tabasco WeIl2T-Tab-01 Attachment 4 20 AAC 25.402 (c)(4) Description of the Proposed Operation The Tabasco Pilot Waterflood Tract Operation is necessary to design an improved recovery project. This Tabasco pilot waterflood injection approval is requested for injection of Kuparuk water in connection with an Enhanced Oil Recovery operation. It does not include gas injection nor disposal operations. The Tabasco accumulation was originally tested in 1995 in well 2T-Tab-01 (API No. 50- 103-20230) in the Kuparuk River Unit. This test was encouraging, but inadequate to determine an optimum reservoir management program. The proposed Tabasco Pilot Waterflood Tract Operation will be comprised of the following steps: 1) Retest well 2T-Tab-01. 2) Drill, core, log and complete well 2T-202 in the Tabasco Sand. 3) Produce 2T-202 for approximately 6 months. 4) Inject water into Tabasco Sands in 2T-Tab-01 to balance offtake from 2T-202 The pilot waterflood has been designed to understand the displacement of the high viscosity (250 cp) crude in the Tabasco reservoir with low viscosity water (1 cp). Enhanced oil recovery with viscosified water will be evaluated. Surveys will be conducted to understand Tabasco waterflood conformance and pressure maintenance. I njection water will be supplied by Kuparuk River Unit Central Production Facility 2. Injection pressure and rates will be managed to maintain original Tabasco reservoir pressure. The proposed injector and producer will be equipped with equipment to control injection and production rates. All fluids produced during this Tract Operation will be measured using the Drill Site 2T test separator and commingled with Kuparuk Participating Area production. Allocation of production to Tabasco will be based on two or more Tabasco well tests per month. Injection water will be allocated to Tabasco wells based on continuous metering at the 2T-Tab-01 well. The Greater Kuparuk Area Alignment Agreement will govern this Tract Operation and the allocation of costs and production to the working interest owners. The Tabasco interests are as follows: ARCO Alaska, Inc. BPX UNOCAL MOBIL EXXON CHEVRON Cost Interest 0.558726 0.396935 0.039605 0.003648 0.000000 0.001086 Production Interest 0.551667 0.391920 0.049506 0.003648 0.000000 0.001086 ~r-·h~\lC\.UE·-i\ 1\ It'\Ò -\ ç.' 2004 \V'W'v-",§'\J ~ '\! ¡:..J ....' t....h _'- 0 - February 26, 1998 ') ') Wateñlood Injection Pilot in Tabasco Well 2T -Tab-01 Attachment 5 20 AAC 25.402 (c)(5) Description and Depth of Pool to be Affected The Tabasco Waterflood Pilot Tract Operation is proposed for an undefined pool informally named Tabasco. The pool is located in well 2T-Tab-01 between the depths of 2902 and 3146'sstvd. Pool definition and rules will be requested of the Alaska Oil and Gas Conservation Commission after additional information is acquired from this pilot. SçÞ~~\h'\~E~. .J UN ß 2001]. February 26, 1998 ') ) Waterflood Injection Pilot in Tabasco Well 2T -Tab-01 Attachment 6 20 AAC 25.402 (c)(6) Description of the Formation The proposed injection zone is named the Tabasco Sandstone and occurs between 2902' and 3146' sstvd in the ARCO ALASKA INC. 2T-TAB-01 well where it attains a gross thickness of 244 feet. The Tabasco Sandstone is an informal member of the Schrader Bluff Formation which is a part of the Late Cretaceous Colville Group (attachment # 7). The Tabasco Sandstone is an amalgamated assemblage of conglomerate, fine - very coarse sandstone, with less abundant mudstone and shale. The zone occurs - 315' stratigraphically below the West Sak sandstone interval and is separated from it by a sequence of interbedded claystone, shale and mudstone based on log character and sample description in offset wells. This interbedded claystone, shale and mudstone sequence constitutes the upper confining layer for the Tabasco Sandstone injection zone. The lower confining layer is a similar sequence of shale, claystone, and mudstone with an approximate thickness of 650'. Both the upper and lower confining layers are part of the Schrader Bluff Formation. -·C'il.tJ\-'i\IE'- !~ t¡q 'r Q ()OOß 5 s-~n~g\'l· L \.. U \. :_ u L .! li' February 26, 1998 ') ) Wateñlood Injection Pilot in Tabasco Well 2T - Tab-01 Attachment 8 20 AAC 25.402 (c)(8) Casing Description and Proposed Method for Testing Casing Well 2T-Tab-01 Casing: Size & Grade Cement MD TVD Conductor 16" 151.53# X-65 180sx AS I 121' 121 ' Surface 9.625" 40# L-80 680sx AS III lead 2244' 2026' 240sx G tail Production 7" 26# L-80 230sx G 4124' 3862' The proposed method for testing 2T-Tab-01 casing is to follow the requirements of 20 AAC 25.412 (c). The casing will be tested to 1500 psig. Sufficient notice of pressure tests will be given so that a commission representative may witness the test. '!:. ~ ,- ' \ '" \ ., r, 2 0 0 f $CJ\N~,'~l::f_~ ,J ".1 !'J " ti _~ 14' February 26, 1998 ) Wateñlood Injection Pilot in Tabasco Well 2T -Tab-01 Attachment 9 20 AAC 25.402 (c)(9) Injection Fluid Analysis The Tabasco Pilot Waterflood Tract Operation will involve injection of Kuparuk Central Production Facility 2 (CPF-2) water into the Tabasco Sands of well 2T-Tab-01. The CPF-2 water is composed of produced water from the Kuparuk formation and treated seawater from the Beaufort Sea. Small amounts of scale inhibitor, emulsion breaker, corrosion inhibitor, and other products used in the production process may be present in the CPF-2 water. The expected injection rate is 1100 barrels per day to balance offtake, but the maximum amount could be higher depending on the productivity of the production well. There is no known incompatibility of Kuparuk waters with the Tabasco Sand. A laboratory analysis of the injection water is shown below: Sample I.D. AA36407 Sample point: C20PWTW Sample description: CPF-2 Prod. Water Tank Outlet Sample Collector: GAC Sample collection date: 02/08/97 Lab submittal date: 02/11/97 Time: 06:55 Test Parameter PH Chloride Sulfate Bicarbonate Carbonate Ortho-Phosphate Conductivity Specific Gravity @ 60°F Calcium Iron by AA Magnesium Sodium Strontium Barium Aluminum Boron Chomium Potassium Lithium Manganese Silicon Units mg/I mg/I mg/I mg/I mg/I ppm micro-mhos/em mg/I mg/I mg/I mg/I mg/I mg/I mg/I mg/I mg/kg mg/I µg/I ppm mg/I Test Result 7.9 14700 420 2060 o 0.2 46500 1.0203 97.1 0.43 169.9 7445 6.19 0.63 <0.15 15 <0.06 18 1.14 0.14 12 ~~C'l).k\H\~E~r l \ Jh\ I.;.'} .r'~B" c \3 _ ,__ ..... \. ,,' ( ()OOlì (} L ~ð' February 26, 1998 ) ) Wateñlood Injection Pilot in Tabasco Well 2T -Tab-01 Attachment 10 20 AAC 25.402 (c)(10) Estimated Pressures The estimated surface injection pressures anticipated for the proposed injector, 2T - Tab-01 , are 1000 psig maximum and 500 psig expected. SCl\NNEL .JUN "[ [; 20DL}. February 26, 1998 I Claystone, srì ie, and mudstone. Con lomerate, son one, and coo rse ne. CI ne, shale, and mudstone. Attachment # 7 . . Waterflood Injection Pilot in Tabasco Well 2T-Tab-01 Attachment 6 - Revised 20 AAC 25.402 (c)(6) Geologic Description of the Formation The proposed injection zone is named the Tabasco Sandstone and occurs between 3352' MD and 3599' MD in the ARCO Alaska, Inc. 2T-201 well where it attains a gross thickness of 244 feet TST. The Tabasco Sandstone is an informal member of the Schrader Bluff Formation which is a part of the Late Cretaceous Colville Group (attachment # 7). The Tabasco sandstone is Campanian in age. The Campanian section at Kuparuk River Field is bounded by the K-10 and C-50 markers. The top of the Campanian section in the 2T-201 equals the top Tabasco Sandstone and occurs at a depth of 3352'MD. The base Campanian is not penetrated in this well, but is estimated to occur at approximately 4580" MD based on correlation to offset wells. The Campanian interval bounded by these markers correlates to an equivalent interval in the ARCO Alaska, Inc. WEST SAK #1 well where it occurs between the depths of 4591', énd 5324' MD. No sand is present at the WEST SAK #1 location (attachment#7a). The Tabasco Sandstone is an amalgamated assemblage of conglomerate, fine - very coarse sandstone, and less abundant mudstone and shale. The zone occurs - 315' stratigraphically below the West Sak sandstone interval and is separated from it by a sequence of interbedded claystone, shale and mudstone based on log character and sample description in offset wells. This interbedded claystone, shale and mudstone sequence cQnstitutes the upper confining layer for the Tabasco Sandstone injection zone. The lower confining layer is a ~imilar sequence of shale, clayston.e, and mudstone with all approximate thickness of 650'. Both the upper and lower confining layers are part of the Schrader Bluff Formation. ¡", o May 11, 1998 N N 1 w K A I i 3599' o