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HomeMy WebLinkAboutNinilchik G Oskoloff/Marathon Oil CoSTATE OF ALASKA AOGCC GAS DISPOSITION FILES 2005 FACILITY: Ninilchik G O skolkoff OPERATOR: THON OIL CO STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION FACILITY REPORT OF PRODUCED GAS DISPOSITION 1. Facility Number 1330000032 2. Facility Name GRASSIM OSKOLKOFF 3. Field NINILCHIK, GRASSIM OSKOLKOFF 4. Operator MARATHON OIL COMPANY 5. MonthlYear of Disposition Jan-05 Disposition Volume MCF 20. For production from multiple pools, list contribution of each pool as a percent of 6 Sold 195260 Total Volume. . pool Name Pool Code Percent 7 Reinjected 0 GO TYONEK UNDEFINED35 562540 100.00 . 8 Flared or vented 1 hour or less 163 . 9 Flared or vented more than 1 hour (see instr ) 1822 . . 10 Pilot and Pur e 0 g . 11 d for lease o e if in Rem U ti ( k 240 p y . se ra ons spec ar s) 12 Other (see instructions) 0 Official Use Only . Authorization >1 hr: S f t MCF 13 TOTAL VOLUME (ITEMS 6-12) 197485 a e y . L U MCF 14 uivalent NGL Gas E 0 ease se . q ti ~ MCF 15 Purchased as 0 nra on ~ (jZZ t . g Was MCF 16. Transferred from: 0 ~ ~~ 17 Transferred to: (Ex ative #) ress as a ne 0 ommiss' ner ~ Date p . g 18. Remarks: I hereby certify that the foreg is true and correct to the best of my knowledge. Note: All volumes must be corrected Signature: Title: Accountant to pressure of 14.65 psis and to a temperature of 60o F. Authority 20 Printed Name: Randy Jindra, untant Phone: 918-925-7098 Date: February 17, 2005 AAC25.235. a~i~" Form 10-422 Marathon Oil Company Gas Flare /Vent Incident Report Facility Name: Grassium Oskolkoff January, 2005 Time Total Date Flare / Well # or Planned Reason Mitigation Start Stop Duration Vent Facility Y/N MCF Vent-water build up in the production string Unloaded water from GO-2 well, hoping to 1/7/2005 1255 1455 2hr 334 GO-2 YES causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from GO-1 well, hoping to 1/10/2005 1335 0:00 1 hr 30mi 412 GO-1 YES causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from GO-2 well, hoping to 1/14/2005 1100 1230 1 hr 30mi 235 GO-2 YES causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from GO-1 well, hoping to 1/14/2005 1245 1430 1hr45min 491 GO-1 YES causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from GO-1 well, hoping to 1/27/2005 1630 1745 1 hr15min 350 GO-1 YES causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Total: 1822 [slp]M:Docs/Flare/2003 Reports/Grassium Oskolkoff Jan 2005 Vent & Flare Incident Report.xls a-mail to Sherrie Petty STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION FACILITY REPORT OF PRODUCED GAS DISPOSITION 1. Facility Number 1330000032 2. Facility Name GRASSIM OSKOLKOFF 3. Field NINILCHIK, GRASSIM (~SKOLKOFF 4. Operator MARATHON OIL COMPANY 5. Month/Year of Disposition Feb-05 Disposition Volume MCF 20. For production from multiple pools, list contribution of each pool as a percent of 6. Sold 155289 Total Volume. Pool Name Pool Code Percent 7. Reinjected 0 GO TYONEK UNDEFINED35 562540 100.00 8. Flared or vented 1 hour or less 399 9. Flared or vented more than 1 hour (see instr.) 1363 10. Pilot and Purge 0 11..Used for lea$e operations.(specify in. Remarks) ~ . 280 , ......_ .. ,., ._,. ..__„ ~,... _, .. ,. - , ,... ., ., _ .,,. , , . _,, ,,,, ,, , , , , , , 12. Other (see instructions) 0 ~ ~ `OfficiaCUse ~~Fi y_ Authorization >1 hr: MCF 13. TOTAL VOLUME (ITEMS 6-12) 157331 Safety MCF 14. NGL Gas Equivalent 0 Le Use MCF 15. Purchased gas 0 ervation ~' 3(0~ Was M 16. Transferred from: 0 7i/ 17. Transferred to: (Express as a negative #) 0 Co issioner Dat 18. Remarks: I hereby certify that the fore g is true and correct to th best of my knowledge. Note: All volumes must be corrected Signature: Title: Accountant to pressure of 14.65 psia and to a ,,, ~ , , , • , .temperature of 60o,F, Au_thgri#y,~0 ,_ Printed Name: Randy Jind ,Accountant Phone: 918-925-7098 ~ Date:~March 16, 2005 AAC25.235, • , ,~.. ~ , ~~!"e.-- e.- r'~ Form 10-422 Marathon Oil Company Gas Flare /Vent Incident Report Facility Name: Grassium Oskolkoff February 2005 Time Total Date Flare / Well # or Planned Reason Mitigation Start Stop Duration Vent Facility Y/N MCF Vent-water build up in the production string Unloaded water from GO-2 well, hoping to 2/2/2005 1610 1720 1 hr10min 208 GO-2 YES causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from GO-1 well, hoping to 2/8/2005 1220 1420 2hr 477 GO-1 YES causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from GO-1 well, hoping to 2/16/2005 1145 1300 1 hr15min 301 GO-1 YES causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from GO-1 well, hoping to 2/25/2005 1100 1230 1 hr30min 377 GO-1 YES causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Total: 1363 2005 Feb - Grasium Oskolkoff -Vent Incident Report.xls Originator: Jaci Stasak, MOC STATE OF ALASKA ALASKA ©IL AND GAS CONSERVATION COMMISSION FACILITY REPORT OF PROD(1CF't~ c,oS ni~anc~Tinr~ 1. Facility Number 2. Facility Name 1330000032 GRASSIM OSKOLKOFF Disposition 3. Field NINILCHIK, GRASSIM Volume MCF 4. Operator 5. Month/Year of Disposition OSKOLKOFF MARATHON OIL COMPANY Mar-05 20. For production from multiple pools list contribution of each pool as a erce t f 6. Sold 168814 , p n o Total Volume. Pool Name Pool Code Percent 7. Reinjected 0 GO TYONEK UNDEFINED35 562540 100.00 8. Flared or vented 1 hour or less 515 9. Flared or vented more than 1 hour (see instr.) 3053 10. Pilot and Purge 0 11. Used for lease operations (specify in Remarks) 360 12. Other (see instructions) ~ 0 '~,,Offici~l Us~_ ~niy" ;': ~ -- Authorization >1 hr: MCF 13. T(3TAL VOLUME (ITEMS 6-12) 172742 Safety .MCF 14. NGL Gas Equivalent p Lease Use MCF 15. Purchased gas 0 Conservation ~ ~~~ Waste: MCF 16. Transferred from: p ~ < ~ ~~QSi / 17. Transferred to: (Express as a negative #) p Commissioner Date 18. Remarks: I hereby certify that the for ing is true and come to the best of my knowledge. Note: All volumes must be corrected Signature: Title: Accountant to pressure of 14.65 psia and to a temperature of 60o F. Authority 20 Printed Name: Randy Ji ra, Accountant Phone: 918-925-7098 Date: April 19, 2005 AAC25.235. ~~ Form 10-422 ~~ Marathon Oil Company Gas Flare /Vent Incident Report Facility Name: Grassium Oskolkoff March 2005 Time Total Date Flare / Well # or Planned Reason Mitigation Start Stop Duration Vent Facility Y/N MCF Vent-water build up in the production string causing reduced Unloaded water from GO-2 well, hoping to increase production 3/1/2005 1325 1445 1 hr20min 217 GO-2 YES production. Requires unloading of the well to resume production. enough for well to achieve minimum unloading velocities without requiring vent. Vent-water build up in the production string causing reduced Unloaded water from GO-1 well, hoping to increase production 3/4/2005 1130 1310 1 hr40min 475 GO-1 YES production. Requires unloading of the well to resume production. enough for well to achieve minimum unloading velocities without requiring vent. Vent-water build up in the production string causing reduced Unloaded water from GO-1 well, hoping to increase production 3/10/2005 930 1130 2hr 530 GO-1 YES production. Requires unloading of the well to resume production. enough for well to achieve minimum unloading velocities without requiring vent. Vent-water build up in the production string causing reduced Unloaded water from GO-1 well, hoping to increase production 3/14/2005 900 1035 1 hr35min 465 GO-1 YES production. Requires unloading of the well to resume production. enough for well to achieve minimum unloading velocities without requiring vent. Vent-water build up in the production string causing reduced Unloaded water from GO-1 well, hoping to increase production 3/19/2005 1050 1250 2hrs 531 GO-1 YES production. Requires unloading of the well to resume production. enough for well to achieve minimum unloading velocities without requiring vent. Vent-water build up in the production string causing reduced Unloaded water from GO-1 well, hoping to increase production 3/25/2005 1250 1500 2hr15min 625 GO-1 YES production. Requires unloading of the well to resume production. enough for well to achieve minimum unloading velocities without requiring vent. Vent-water build up in the production string causing reduced Unloaded water from GO-2 well, hoping to increase production 3/25/2005 1515 1625 1 hrl0min 210 GO-2 YES production. Requires unloading of the well to resume production. enough for well to achieve minimum unloading velocities without requiring vent. dotal: 3053 2005 Mar- Grasium Oskolkoff -Vent Incident Report.xls Or191natOr: JaCI StaSak, MOC 1. Facility Number 1330000032 Sold Reinjected STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION FACILITY REPORT OF PRODUCED GAS DISPOSITION !. Facility Name 3. Field GRASSIM OSKOLKOFF 4. Operator 5. Month/Yeaz of Disoosition NINILCHIK, GRASSIM OSKOLKOFF Marathon Oil Company Apr-OS Disposition Volume MCF 20. For production from multiple pools, list contribution of each pool as a percent of 136676 Total Volume. Pool Name Pool Code Percent 0 GO TYONEK UNDEFINED35 562540 100.00 8. Flazed or vented 1 hour or less 476 9. Flared or vented more than 1 hour (see instr.) 2420 10. Pilot and Purge 0 11 Used for l i . ease operat ons (specify in Remarks) 305 12. Other (see instructions) 0 Authorization >1 hr: 13. TOTAL VOLUME (ITEMS 6-12) Safety 139877 14. NGL Gas Equivalent Lease Use 0 15. Purchased gas Conservati 0 Waste: 16 Transf d fr . erre om: 0 17. Transferred to: (Express as a negative #) 0 Commissioner 18. Remarks: hereby certify that the foregoing is true and correct to the best of my knowledge. Signature: _ ~~ ~ Title: Accountant Printed Name: Randy Jindra Phone: 918-925-7098 Date: May 19, 2005 2~4z~ (v - 9 ~ .~ Date Note All volumes must be corrected to pressure of 14.65 psia and to a temperature of 60o F. Authority 20 AAC25.235. Form 10-422 Marathon Oil Company Gas Flare /Vent Incident Report Facility Name: Grassium Oskolkoff April 2005 Time Total Date Flare / Well # or Planned Reason Mitigation Start Stop Duration Vent Facility Y/N MCF Vent-water build up in the production string Unloaded water from the well, hoping to 4/1/2005 12:35 14:00 1 hr25min 378 GO-2 YES causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from the well, hoping to 4/6/2005 12:15 13:45 1 hr 30mi 398 GO-1 YES causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from the well, hoping to 4/11/2005 1005 1110 1 hr15min 215 GO-2 YES causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from the well, hoping to 4/11/2005 1125 1330 2hr5min 591 GO-1 YES causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from the well, hoping to 4/26/2005 1450 1700 2hr10min 615 GO-1 YES causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from the well, hoping to 4/26/2005 1715 1835 1 hr20min 223 GO-2 YES causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Total: 2420 2005 Apr - Grasium Oskolkoff -Vent Incident Report-1.xls Originator: Jaci Stasak, MOC STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION FACILITY RI~PORT OF PRODUCED GAS DISPOSITTnN 1. Facility Number 1330000032 2. Facility Name GRASSIM OSKOLKOFF 3. Fieid NINIL.CHIK, GRASSIM OSKOLKOFF 4.Operator Marathon Oil Company 5. Month/Yeaz of Disposition May-OS Disposition Volume MCF 20. For production from multiple pools list contribution of each ool as a ercent of 6. Sold 138305 , p p Total Volume. Pool Name Pool Code Percent 7. Reinjected 0 GO TYONEK UNDEFINED35 562540 100.00 8. Flared or vented 1 hour or less 0 / 9. Flared or vented more than 1 hour (see instr.) 2743 10. Pilot and Purge 0 J 11. Used for lease operations (specify in Remazks) 288 12.Other (see instructions) 0 Authorization>1 hr: f S 13. TOTAL VOLUME (ITEMS 6-12) a ety MCF 141336 ase Use MCF 14 NGL Gas E uivalent . q 0 C ti 15. Purchased gas 0 onserva on 2 ~~~ l MCF Waste: MCF. 16. Transferred from: 0 ~ ~i~~ ~D~ 17. Transferred to: (Express as a negative #) 0 Commissioner Date 18. Remarks: hereby certify that the foregoing is true and correct to the best of my knowledge. Note All volumes must be corrected Signature: _ `~ ~~,~~, ~L°z~i'a Title: Accountant to pressure of 14.65 psia and to a L temperature of 60o F. Authority 20 Printed Name: Randy Jindra Phone: 918-925-7098 Date: June 15, 2005 AAC25.235. .~' Form 10-422 Marathon Oil Company Gas Flare /Vent Incident Report Facility Name: Grassium Oskolkoff May 2005 Time Total Date Start Stop Duration Flare / Vent Well # or Planned Reason Mitigation MCF Facility Y/N Vent-water build up in the production string Unloaded water from GO well, hoping to 5/3/2005 1510 1620 1 hr10min 198 GO-2 YES causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from GO well, hoping to 5/5/2005 1235 1435 2hrs 555 GO-1 YES causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from GO well, hoping to 5/10/2005 1345 1505 1 hr20min 272 GO-2 YES causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from GO well, hoping to 5/17!2005 1450 1555 1 hr5min 189 GO-2 YES causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from GO well, hoping to 5/17/2005 1605 1755 1 hr50min 481 GO-1 YES causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from GO well, hoping to 5/23/2005 1315 1515 2hrs 557 GO-1 YES causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from GO well, hoping to 5/23/2005 1130 1300 1hr30min 279 GO-2 YES causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from GO well, hoping to 5/30/2005 925 1045 1 hr20min 212 GO-2 YES causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. i otai: ~i4s 2005 May - Grasium Oskoikoff -Vent Incident Report.xls Originator: Jaci Stasak, MOC ~ SO O~'i SO ~.C O ~~ SO << Obi SO O! O~, ~p S O~ S ~O 0~,~ ` S O 0 ~~9 ' S p~~ s s °°z sp ~~ o~ ~ ~ sp ~ p`~ o N ~ s z op ,..: ,. ~p~% ~ . ~ ° _ ~ z~~ pp ~ ~~. ~~ ~ ~~° ~ O o ~ ~o`~~ E o ~p~~~ ~ °p U z ~p ~9 is O~~S 00 j ~ ~~~ O ~~p zS ', OOc' ~ ~ ' v~ ~ ~ O~ c p ~% t ~ ~' ~ : 00 ~~c' ce ! p O 0 ~~~ ___._ ' ~ ~ ~_~_ ~ ___. 4 ~ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ~"O O~ 0 0 o O~, 0 0 0 ~6, 0 0 0 0 0 0 0 o ~n o ~ o ~ o In ~ ~ M M N N 0 0 0 ~n o ~ r- ~ se J ~~W FW: Ninilchik Subject: FW: Ninilchik From: "Titus, Denise M." <~lnitih~s~:~ial~a.rathonoiLcom> Date: 1~hu. 21 .lul 2O(')i 09:11: ~(~ -O5~1~ To: ji1~ rc.~~~!cr-admin.state.ak.us, ste~~e mcmainsrciadmin.state.akus CC: "Schol~lhlann, :'1 ~3 (Bcn)" ~_abschoffn~ann!am~rathonoiLco~z~>, "Walsh. Ken's <kd«alsh unrirath~~noil.com>, "1~lullin, R~tichael f1." <mmullin~umarathonoil.com==, "C'issell, Way1~e L." °=~~,ecissell a;:marathonoil.c~~rn =. "Senette, Brent ~~~." ~~bmsenette~r~marathonoil.com:> Steve/Jim, I understand there are some questions about the gas venting at the Falls Creek and GO locations. Some wells at these facilities routinely flow at rates inadequate to lift water from the cemented 4-1/2" pipe.. Over the course of many days, the production will fall continually, resulting in very low gas rates. With well loading, there is a danger of the hydrostatic column of water exceeding the well pressure which could ultimately kill the well. To avoid this, the operators periodically blow the water out of the tubing by lowering the tubing pressure (i.e.. venting) long enough to allow the slug of fluid to travel to surface. The resulting flowrate is improved and the well continues at an improved rate for a while. The reduction in rate that you see by month noted below is a function of basic decline and is not related to the blowdowns. The Ninilchik wells along with those at KGF, BC, CLU and other smaller fields all compete for resources (personnel, equipment, and funds) and are continually being evaluated. A compressor is being installed at Falls Creek as an action to combat the need for the blowdowns. This compressor is scheduled to be running November 15th of this year. Additionally, we are making considerations for velocity strings or other unloading measures for some wells on a case-by-case basis. In the mean time we will work with the Ninilchik operators in an effort to reduce the amount of venting on the wells where possible: I hope I have addressed any concerns you may have. Feel free to contact me with further questions. I have attached a list of contact information for production questions. In the future, please address production questions to any of the listed personnel. Thanks, Denise Titus Production Engineer Marathon Oil Company 907.283.1333 From: Stephen Mcmains Sent: Friday, July 15, To: Senette, Brent M. Cc: Jim Regg Subject: Ninilchik Brent, [mailto:steve mcmainsGadmin.state.ak.us] 2005 1:50 PM - 1 of 2 7/21/2005 9:54 AM FW: Ninilchik Since the Ninilchik Unit come on line two PA's, Falls Ck Oct 2003 and the GO Oct 2004, have had venting events greater than 1 hour reported every month on the Facility Report of Produced Gas Disposition, Form 10-422, in block 9. Falls CK report for May 2005 an event lasted 1 hour 12 minutes and vented 293 mcf of gas. The reason give on the report was as follows, "vent water build up in the production string causing reduced production. Requires unloading the well to resume production". This reason is about the same on every report submitted every month from this unit. We might re-evaluate the situation for future reports. Sherri Petty said you had some work scheduled to correct this problem? Do you have a repair in the future for this problem as production is falling? Falls Ck had a monthly volume of 465,132 mcf in Jan 2004 and now it's down to 293,156 mcf. GO facility was 447,586 mcf in Nov 2003 and now it's 141,336 mcf. Susan Dionne started at 194,633 mcf and now is at 522,109 mcf and has no venting events. Could you share what your company is doing or going to do to reduce or eliminate this venting problem in the unit and increase production.. Please provide a detailed explanation of work to be done in the future. Please address your response to Jim Regg, address at the top. Thanks Steve Content-Description: MOC contacts for State.doc ':'MOC contacts for State.doc', Content-Type: application/msword ', Content-Encoding: base64 2 of 2 7/21/2005 9:54 AM State of Alaska, Oil and Gas Conservation Commission Production History for: NINILCHIK, SD TYONEK UNDEF GAS Pool Jan 2001 Through Month NINILCHIK_SD Dec 2003 Jan 2004 Feb 2004 Mar 2004 Apr 2004 May 2004 Jun 2004 Jul 2004 Aug 2004 Sep 2004 Oct 2004 Nov 2004 Dec 2004 Jan 2005 Feb 2005 Mar 2005 Apr 2005 May 2005 Pad Total Poot Total DavsProd Oil (BBL) Gas (MCF) Water (BBL Wells 20 0 194633 15 1 31 0 333049 0 1 29 0 308392 60 1 31 0 329971 63 1 30 0 312376 46 1 31 0 316833 193 1 30 0 298340 1487 1 30 0 306681 7812 1 31 0 335246 187 1 30 0 317053 381 1 31 0 319805 947 1 30 0 302653 156 1 31 0 313437 774 1 31 0 308320 260 1 25 0 245057 184 1 45 0 386913 132 2 60 0 522109 58 2 58 0 502088 151 2 0 5952956 12906 0 5,952,956 12,906 7/15/2005 Page 1 of 1 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION FACILITY REPORT OF PRODUCED GAS DISPOSITION 1. Facility Number 1330000032 2. Facility Name GRASSIM OSKOLKOFF 3. Field NINILCHIK, GRASSIM OSKOLKOFF 4.Operator Mazathon Oil Company 5. Month/Yeaz of Disposition Jun-OS Disposition Volume MCF 20. For production from multiple pools, list contribution of each pool as a percent of 6 S ld 119596 Total Volume. . o pal Name Poot Code Percent 7. Reinjected 0 GO TYONEK UNDEFIlVED35 562540 100.00 8. Flared or vented 1 hour or less 0 d m r 9 Fl d t th 1 h i t ) 3481 or ven . aze e o e an our (see ns r. d P r 10 Pil t 0 ge . o an u Used for lease o erations (s ecif in Remarks) 11 238 p y . p 12.Other (see instructions) 0 °~° ~ ° - ^- ~£~` Authorization>1 hr: -° ~° ~ Safety ~° ~- MCF 13. TOTAL VOLUME (ITEMS 6-12) 123315 Lease Use MCF 14. NGL Gas Equivalent 0 Conservation MCF 15 P h d 0 3 ~~ i ~ 1 urc . ase gas Waste: MCF 16. Transferred from: 0 ~ ~ ~ `I ~Q~ r 17. Transferred to: (Express as a negative #) 0 Commissioner Date 18. Remarks: I hereby certify that the foregoing is true and correct to the best of my knowledge. Note All volumes must be corrected Signature: "~~zy>~ ~G9~~`~ Title: Accountant to pressure of 14.65 psia and to a L temperature of 60o F. Authority 20 Printed Name: Randy Jindra Phone: 918-925-7098 Date: July 19, 2005 AAC25.235. =~.Q- Form 10-422 Marathon Oil Company Gas Flare /Vent Incident Report Facility Name: Grassium Oskolkoff June 2005 Time Total Date Flare / Well # or Planned Reason Mitigation Start Stop Duration Vent MCF Facility Y/N Vent-water build up in the production string 6/2/2005 1020 1230 2hr10min 590 GO-1 YES causing reduced production. Requires Under consideration for perf adds or velocity unloadin of the well to maintain roduction. string Vent-water build up in the production string 6/2/2005 1450 1610 1 hr20min 232 GO-2 YES causing reduced production. Requires Under consideration for perf adds or velocity unloadin of the well to maintain roduction. string Vent-water build up in the production string 6/7/2005 900 1020 1 hr20 241 GO-2 YES causing reduced production. Requires Under consideration for perf adds or velocity unloadin of the well to maintain roduction. string Vent-water build up in the production string 6/8/2005 1305 1522 2hr17min 644 GO-1 YES causing reduced production. Requires Under consideration for perf adds or velocity unloadin of the well to maintain roduction. string Vent-water build up in the production string 6/16/2005 1445 1555 1 hr10min 201 GO-2 YES causing reduced production. Requires Under consideration for perf adds or velocity unloadin of the well to maintain roduction. string Vent-water build up in the production string 6/17/2005 1615 1755 1 hr40min 447 GO-1 YES causing reduced production. Requires Under consideration for perf adds or velocity unloadin of the well to maintain roduction. string Vent-water build up in the production string 6/22/2005 1245 1415 1 hr30min 251 GO-2 YES causing reduced production. Requires Under consideration for pert adds or velocity unloadin of the well to maintain roduction. string Vent-water build up in the production string 6/27/2005 1050 1317 2hr27min 663 GO-1 YES causing reduced production. Requires Under consideration for perf adds or velocity unloadin of the well to maintain roduction. string Vent-water build up in the production string 6/29/2005 1530 1645 1 hr15min 212 GO-2 YES causing reduced production. Requires Under consideration for perf adds or velocity unloadin of the well to maintain roduction. string Total : 3481 2005 June - Grasium Oskolkoff -Vent Incident Report.xls Originator: Jaci Stasak from Operators reports, MOC 1\\.. 1 YY 1Y 111111.1111\ Subject: Re: FW: Ninilchik l''CQFI1= James Regg <jimregg@admin.state:ak.us~ Date: Ti~u. 21 Jul ~Of)~ 1 l:(~i~:01 -0800 ,~ To: I~itus. Denise ~1." ~~~di~ltinis~~marathcsnotl.com~ '~ (;C: ~t~~'e 11~11aii~s'=sieve_mcn?aiLS~~admui.state.ak.u5=~ Thanks for the quick response. Please continue to update the progress of Marathon's efforts to minimize the need for blowdowns at both GO and FC, and note the current status on your gas disposition reports (Form 10-422). The information is necessary fo the Commission's decision about authorizing the venting as provided in 20 AA~C 25.235. Jim Regg AOGCC Titus, Denise M. wrote: > Steve/Jim, > I understand there are some questions about the gas venting at the Falls Creek > and GO locations. Some wells at these facilities routinely flow at rates > inadequate to lift water from the cemented 4-1/2" pipe. Over the course of > many days, the production will fall continually, resulting in very low gas > rates. With well loading, there is a danger of the hydrostatic column of > water exceeding the well pressure which could ultimately kill the well. To > avoid this, the operators periodically blow the water out of the tubing by > lowering the tubing pressure (i.e.. venting) long enough to allow the slug of > fluid to travel to surface. The resulting flowrate is improved and the well > continues at an improved rate for a while. The reduction in rate that you see > by month noted below is a function of basic decline and is not related to the > blowdowns. > The Ninilchik wells along with those at KGF, BC, CLU and other smaller fields > all compete for resources (personnel, equipment, and funds) and are > continually being evaluated. A compressor is being installed at Falls Creek > as an action to combat the need for the blowdowns. This compressor is > scheduled to be running November 15th of this year. Additionally, we are > making considerations for velocity strings or other unloading measures for > some wells on a case-by-case basis. In the mean time we will work with the > Ninilchik operators in an effort to reduce the amount of venting on the wells > where possible. > I hope I have addressed any concerns you may have. Feel free to contact me > with further questions. I have attached a list of contact information for > production questions. In the future, please address production questions to > any of the listed personnel. > Thanks, > Denise Titus > Production Engineer > Marathon Oil Company > 907.283.1333 1 of 2 7/22/2005 12:59 PM nc. r vv. i~uui~uin > *From:* Stephen Mcmains [mailto:steve mcmains~~admir~.state.ak.us ] > *Sent:* Friday, July 15, 2005 1:50 PM > *To:* Senette, Brent M. > *Cc:* Jim Regg > *Subject:* Ninilchik > Brent, > Since the Ninilchik Unit come on line two PA's, Falls Ck Oct 2003 and the GO > Oct 2004, have had venting even on > the Facility Report of Produced > Falls CK report for May 2005 an 293 > mcf of gas. The reason give on ~s greater than 1 hour reported every month Gas Disposition, Form 10-422, in block 9. event lasted 1 hour 12 minutes and vented the report was as follows, "vent water build > up in the production string causing reduced production. Requires unloading > the well to resume production". This reason is about the same on every report > submitted every month from this unit. we might re-evaluate the situation for > future reports. > Sherri Petty said you had some work scheduled to correct this problem? Do you > have a repair in the future for this problem as production is falling? Falls > Ck had a monthly volume of 465,132 mcf in Jan 2004 and now it's down to > 293,156 mcf. GO facility was 447,586 mcf in Nov 2003 and now it's 141,336 > mcf. Susan Dionne started at 194,633 mcf and now is at 522,109 mcf and has no > venting events. > Could you share what your company is doing or going to do to reduce or > eliminate this venting problem in the unit and increase production. Please > provide a detailed explanation of work to be done in the future. Please > address your response to Jim Regg, address at the top. Thanks > Steve r 2 of 2 7/22/2005 12:59 PM STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION FACILITY REPORT OF PRODUCED GAS DISPOSITION ]. Facility Number 1330000032 2. Facility Name GRASSIM OSKOLKOFF 3. Field NINILCHIK, GRASSIM OSKOLKOFF 4. Operator Marathon Oil Company 5. Month/Year of Disposition Jul-OS Disposition Volume MCF 20. For production from multiple pools, list contribution of each pool as a percent of 1 323 Total Volume. 6. Sold 1 5 Pool Name Pool Code Percent Reinjected 7 0 GO TYONEK UNDEFINED35 562540 100.00 . 8. Flared or vented 1 hour or less 166 __ i _ _ , _-- - . 9. Flared or vented more than I hour (see instr.) 2843 +~ - -- I ~ - --- -- -- - - -- (0. Pilot and Purge 0 - _ __ 2 1 1. Used for lease operations (specify in Remarks) 20 12. Other (see instructions) 0 ~ „ .,. v< : ,~ _, , .C ici 1'sc C)nl~ Authorization>1 hr: Safety MCF 13. TOTAL VOLUME (ITEMS 6-12) 118534 Lease Use MCF l4. NGL Gas Equivalent 0 Conservation Q/,,~ MCF ~ D`T 15. Purchased gas 0 Waste: MCF I6. Transferred from: 0 ~ f~ ~~ip~ //~` ~~ ~ "L/ t /,S ~~ Transferred to: (Express as a negative #) 17 0 Commissio er Date . 18. Remarks: 1 hereby certify that the foregoing is true and correct to the best of my knowledge. Note All volumes must be corrected ~ ~ ' Title: Accountant to pressure of 14.65 psia and to a Signature: /~ ~~~~ f a~~~r temperature of 60o F. Authority 20 Printed Name: Randy .Iindra Phone: 918-925-7098 Date: August 17, 2005 AAC25.235. ,~ Forth 10-422 Marathon Oil Company Gas Flare /Vent Incident Report Facility Name Grassium Oskolkoff July 2005 Time Total Date Flare / Well # or Planned Reason Mitigation Start Stop Duration Vent Facility Y/N MCF Vent-water build up in the production string 7/4/2005 901 1031 1 hr30min 252 GO-2 Yes causing reduced production. Requires Under consideration for pert adds or velocity unloadin of the well to maintain roduction. string Vent-water build up in the production string 7/6/2005 855 1115 2hr20min 637 GO-1 Yes causing reduced production. Requires Under consideration for perf adds or velocity unloadin of the well to maintain roduction. string Vent-water build up in the production string 7/11/2005 1320 1435 1hr15min 219 GO-2 Yes causing reduced production. Requires Under consideration for perf adds or velocity unloadin of the well to maintain roduction. string Vent-water build up in the production string 7/14/2005 1120 1300 1 hr40min 284 GO-2 Yes causing reduced production. Requires Under consideration for pert adds or velocity unloadin of the well to maintain roduction. string Vent-water build up in the production string 7/15/2005 1025 1240 2hr15min 608 GO-1 Yes causing reduced production. Requires Under consideration for perf adds or velocity unloadin of the well to maintain roduction. string Vent-water build up in the production string 7/20/2005 1040 1200 1 hr20min 244 GO-2 Yes causing reduced production. Requires Under consideration for pert adds or velocity unloadin of the well to maintain roduction. string Vent-water build up in the production string 7/27/2005 1325 1535 2hr10min 599 GO-1 Yes causing reduced production. Requires Under consideration for perf adds or velocity unloadin of the well to maintain roduction. string Total: 2843 2005 July - Grasium Oskolkoff -Vent Incident Report.xls Originator: Jaci Stasak from Operators reports, MOC w= STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION FACILITY REPORT OF PRODUCED GAS DISPOSITION 1. Facility Number 1330000032 2. Facility Name GRASSIM OSKOLKOFF 3. Field NINILCHIK, GRASSIM OSKOLKOFF 4.Operator Marathon Oil Company 5. Month/Year of Disposition Aug-OS Disposition Volume MCF 20. For production from multiple pools, list contribution of each pool as a percent of Total Volume. 6. Sold 107444 Pool Name Pool Code Percent 7 Reinjected 0 GO TYONEK UNDEFINED35 562540 100.00 . 8 Flared or vented 1 hour or less 517 . 12 9. Flared or vented more than 1 hour (see instr.) 3 7 0 10. Pilot and Purge 190 11. Used for lease operations (specify in Remarks) _- - - _ _ _ _,- s - ~ ~ -m --- - -_- 12.Other(seeinstrucfions) 0 - - ~ ~ ~~ifi,,al i seli,~IK Authorization > 1 hr: Safety MCF 13. TOTAL VOLUME (ITEMS 6-12) 111278 Lease Use MCF 14. NGL Gas Equivalent 0 Conservation MCF ~ ~~~ I5. Purchased gas 0 Waste: MCF 16. Transferred from: 0 17 Transferred to: (Express as a negative #) 0 Commissioner Date . 18. Remarks: I hereby certify that the foregoing is true and correct to the best of my knowledge. Note All volumes must be corrected Signature: ~%~z ~'~YU~ Title: Accountant to pressure of 14.65 psia and to a temperature of 60o F. Authority 20 Printed Name: Randy Jindra Phone: 918-925-7098 Date: September 19, 2005 AAC25.235. ~~~- Fonn 10-422 Marathon Oil Company Gas Flare /Vent Incident Report Facility Name: Grassium Oskolkoff August 2005 Time Total Date Flare / Well # or Planned Reason Mitigation Start Stop Duration Vent Facility Y/N MCF Vent-water build up in the production string Unloaded water from the well, hoping to 8/8/2005 1230 1445 2hr15min 613 GO-1 Yes causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from the well, hoping to 8/12/2005 1552 1735 1 hr43min 274 GO-2 Yes causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from the well, hoping to 8/16/2005 1640 1800 1hr20min 336 GO-1 Yes causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from the well, hoping to 8/16/2005 1425 1625 2hr15min 236 GO-2 Yes causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from the well, hoping to 8/22/2005 1005 1240 2hr35min 670 GO-1 Yes causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from the well, hoping to 8/29/2005 936 1145 2hr10min 344 GO-2 Yes causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from the well, hoping to 8/29/2005 1325 1555 2hr30min 654 GO-1 Yes causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Total: 3127 2005 August - Grasium Oskolkoff -Vent Incident Report.xis Originator: Jaci Stasak from Operators reports, MOC STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION FACILITY REPORT OF PRODUCED GAS DISPOSITION 1. Facility Number 1330000032 2. Facility Name GRASSIM OSKOLKOFF 3. Field NINILCHIK, GRASSIM OSKOLKOFF 4. Operator Marathon Oil Company 5. Month/Year of Disposition Sep-OS Disposition Volume MCF 20. For production from multiple pools, list contribution of each pool as a percent of ld 6 S 231109 Total Volume. . o Pool Name Pool Code Percent 7. Reinjected 0 GO TYONEK UNDEFINED35 562540 100.00 8. Flared or vented 1 hour or less 600 ~ i 9 Fl d t d th 1 h i t 2065 / . are or ven e more an our (see ns r.) ----- 10. Pilot and Purge 0 / ~ - -- I 1 1 Used for lease o erations (s ecif in Remarks) 367 . p p y 12.Other (see instructions) 0 F - Authorization>1 hr: ~~tcial ~lsc Ctnl v Safety MCF 13. TOTAL VOLUME (ITEMS 6-12) 234141 Lease Use MCF 14. NGL Gas Equivalent 0 Conservation °~ i1i MCF Purchased 15 as 0 ~ ~a W . g Waste: MCF 16. Transferred from: 0 ~ / / yy~~ 17. Transferred to: (Express as a negative #) 0 Commissioner Date 18. Remarks: I hereby certify that the foregoing is true and correct to the best of my knowledge. Note All volumes must be corrected Signature: ~ ~y ~~~~ Title: Accountant to pressure of 14.65 psia and to a temperature of 60o F. Authority 20 Printed Name: Randy Jindra Phone: 918-925-7098 Date: October 18, 2005 AAC25.235. ~y- Form 10-422 Marathon Oil Company Gas Flare /Vent Incident Report Facility Name: Grassium Oskolkoff September 2005 Time Total Date Flare / Well # or Planned Reason Mitigation Start Stop Duration Vent Facility Y/N MCF Vent-water build up in the production string Unloaded water from the well, hoping to 9/9/2005 1045 1315 2hr30 655 GO-1 Y causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from the well, hoping to 9/19/2005 1428 1547 1 hr19min 213 GO-2 Y causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from the well, hoping to 9/21/2005 1440 1712 2hr32min 663 GO-1 Y causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from the well, hoping to 9/28/2005 1450 1655 2hrs5min 534 GO-1 Y causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Total: 2065 2005 September - Grasium Oskolkoff -Vent Incident Report.xls Originator: Jaci Stasak from Operators reports, MOC ,. , . ' ' STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION FACILITY REPORT OF PRODUCED GAS DISPOSITION L Facilitv Number 1330000032 2. Facilitv Name GRASSIM OSKOLKOFF 3. Field NIN[LCHIK, GRASSIM OSI{OLKOFF 4, Operator Marathon Oil Company 5. Month/Year of Disposition Nov-OS Disposition Vohtme MCF 20. For production fi•oin multiple pools, list contribtrtiat of each pool as a percent of 6 S ld 195869 Total ~otu~ne. . o Pool Name Pool Code Percent 7. Reinjected 0 GO TYONEK UNDEF[NED35 562540 100.00 8. Flared or vented I hour or less 889 9 l d . F are or vented more than 1 hour (see instr.) 1351 10. Pilot and Purge 0 d f k I i if i 499 . Use n Remar 1 or lease opetnt ons (spec y s) 12. Other (see instructions) 0 nrf~~ i,, i~ ,~ .. -- ' - Authorizatron>1 hr: MCF Safety ~ 13. TOTAL VOLUME (ITEMS 6-12) 198608 Lease Use MCF 14. NGL Gas Equivalent 0 Conservation i ~ .~ MCF , ' r 15. Purchased gas 0 Waste: MCF 16. Transfen~ed from: 0 ,7'~i~J7'~"~ ~~ZJ ~~.~0 17. Transfened to: (Express as a negative #) 0 Commissioner Date 18. Remarks: 1 hereby certify that the foregoing is true and cotTect to the best of my knowledge. ~j Note All volumes must be corrected Signature:_ ~~ ,/r~a~za Title: Accountant to presst[re of 14.65 psln ttnd to a temperature of 60o F. Authority 20 PrYnted Name: Randy Jindra Phone: 918-925-7098 Date: December 15, 2005 AAC25.235. ~B ~- Fonn ] 0-422 ..« Marathon Oil Company Gas Flare /Vent Incident Report Facility Name: Grassium Oskolkoff November 2005 Time Total Date Flare / Well # or Planned Reason Mitigation Start Stop Duration Vent Facility Y/N MCF Vent-water build up in the production string Unloaded water from the well, hoping to 11/6/2005 12:30 14:50 2hr20min 578 GO-1 Y causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from the well, hoping to 11/17/2005 1542 1731 1 hr49min 445 GO-1 Y causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from the well, hoping to 11/23/2005 810 1208 3hr58min 328 GO-2 Y causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Total: 1351 2005 November - Grasium Oskolkoff -Vent Incident Report.xls Originator: Jaci Stasak from Operators reports, MOC STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION FACILITY REPORT OF PRODUCED GAS DISPOSITION I .Facility Number 1330000032 2. Facility Name GRASSIM OSKOLI<OFF 3, Field NINILCHIK, GRASSIM OSI<OLKOFF 4. Operatrn' Marathon Oil Company S. Month~Ycar of Disposition Dec-OS Disposition Volume MCF 20. For production.fronv muNrple pools, list conb•rbulinri oJ'encA pool ns a pnrcen[ qj 6 Sold 169325 TOIO~ VO ~L(la7Q. . Pool Name Pool Code Percent 7. Reinjected 0 GO TYONEK UNDEFINED35 562540 100.0(1 8. Flared or vented l hour or less 304 9 Flared or vented more than I how' (see insU•J 1935 . 10 Pilot and Pur e p . g I I Used for lease operations (specify in Remarks) 426 . l2. Other (see instructions) 0 Ofliciai 1'~c (r-,I, - Authoii-ration>1 hr: Safety MCF 13. TOTAL VOLUME (ITEMS 6-12) 171990 Lease Use MCF l4. NGL Gas Equivalent 0 Conservation ~} MCF 15 Purchased as 0 ~ ~ I ! ~~ . g Waste: MCF 16. Transfcn•ed from: 0 ///~~~ // ~ f~~I D~ 17. Transfen•ed to: (Express as a negative #) 0 Crnnmissioner Date 18. Remarks: I hereby certify that the foregoing is Uve and coned to the best of my knowledge. Note All voh.maes aaaust be cora•ected Signature:_ ~,~~-r~~y ~~~~ Titla: Accountant t0 pr~esstrre of /4.65 Asia Chad to a temperature of 60o F. Authority l0 Painted Name: Randy Jindra Phone: 918-925-7098 Date: January 17, 2006 AAC25.2_i5. ~~~ Fonn (0-422 Marathon Oil Company Gas Flare /Vent Incident Report Facility Name: Grassium Oskolkoff December 2005 Time Total Date Flare / Well # or Planned Reason Mitigation Start Stop Duration Vent Facility Y/N MCF Vent-water build up in the production string Unloaded water from the well, hoping to 12/3/2005 810 1010 2hrs 438 GO-1 Y causing reduced production. Requires increase production enough for well to unloading of the wel- to resume production. achieve minimum unloading velocities without re uirin vent. 12/5/2005 1228 1354 1 hr 26min 35 GO-2 Y B/D annulus to release coil tubing plug. Unsuccessful, will use nitrogen later. Vent-water build up in the production string Unloaded water from the well, hoping to 12/10/2005 1145 1345 2hrs 487 GO-1 Y causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from the well, hoping to 12/21/2005 11 7r 13 ~: 2hrs 507 GO-1 Y causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Vent-water build up in the production string Unloaded water from the well, hoping to 12/31/2005 1452 1642 1 hr50min 468 GO-1 Y causing reduced production. Requires increase production enough for well to unloading of the well to resume production. achieve minimum unloading velocities without re uirin vent. Total: 1935 2005 December - Grasium Oskolkoff -Vent Incident Report.xls Originator: Jaci Stasak from Operators reports, MOC Gas Disposition - Ninilchik Unit GO pad Subject: Gas Disposition -Ninilchik. Unit GC) pad From: James Regg <jirn_regg@admin.state.ak.us> Date: Tue, 31 Jan ~?C}i>6 17:01:3 -0~)UO To: Catherine P Foerster ~-cathy foerster(ciadmin.st~~te.ak.uti=> CC: ~te~~c ti~ir-l9ains ~~ste~~e mcmainti<<i'admin.state.akri~-= I spoke with Ben Schoffmann (Marathon) today about gas venting at GO pad wells (Ninilchik Unit) and asked about plans to install compressor on pad or velocity strings in the wells. Venting has been necessary to unload the wells - we have been classifying the venting as "conservation"; we put Marathon on notice in July 2005 that we are interested in what they are doing to minimize/eliminate the venting. I requested a written update with next month's gas disposition reports. Mr. Schoffmann will make sure we get the update and provided a quick summary - - Marathon attempted to add perfs in GO #2; almost killed well; still must periodically unload the wells - plan is to install compressor in 2006 on GO pad; this should eliminate need for unloading well (similar to Falls Ck pad installation in 2005) - Paxton pad compressor in 2007? - Susan Dionne pad wells have not required venting to unload well thus far. Jim 1 of 1 2/1/2006 8:26 AM I` Grassim Oskolkoff Pad Venting Mitigation Plans Subject: Grassim Osk~lkoff PadVenting MitigationPlans Fro~r~: "Walsh. Kcn" <~kdwalshtrmarathonoil.com> Datc: ti~1on, U(i Feh ?f)06 15:01:<<) -U~)00 To: jinirc~gu;admin.state.ak.us CC: "S~netfi_, F3r~nt Nl." ~~hmsenelte(~cmarathonoil.eom.=-. ,~Schol~itZann, A B (Ben), =~-abschofti7lann(a'.iT~arathonoil.eon~.~. __ Dear Jim, It is my understanding that in a recent meeting with Ben Schoffmann, concerning an unrelated matter, that you requested an appraisal of Marathon's future plans to mitigate natural gas venting volumes from the Grassim Oskolkoff Pad in the Ninilchik area. Presented below are the plans we are working toward to reduce gas venting from this facility. A coiled tubing velocity string has been installed at the G.O. 2 well, reducing the need to vent gas during the manual blowdowns to unload the well. The installation of a velocity string is also being evaluated at the G.O. 1 and G.O. 3 wells. A recompletion at the G.O. 1 is scheduled the first quarter of 2006. This recompletion should increase production rates and allow continuous unloading of the well, reducing the need for manual blowdowns to the atmosphere. Installation of a new compressor at the G.O. Production Facility should further reduce the need for gas venting to unload wells. Installation of the compressor is currently planned for this summer, with start up scheduled for mid-November 2006. Please don't hesitate to contact me if you have further questions. Also, please let me know if this explanation of our plans sufficiently addresses your concerns. Sincerely, E~Z 1 of 1 2/7/2006 10:35 AM