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12/1/2004 Orders File Cover Page.doc
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Conservation Order 111
1.
2.
January 7, 1972
January 25, 1972
Standard's request for Spacing Exception Beluga River 14-3
Notice of Hearing and affidavit of publication
Conservation Order 111
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STATE OF ALASKA
DEPARTMENT OF NATURAL RESOURCES
DIVISION OF OIL AND GAS
Alaska Oi I and Gas Conservation Committee
3001 Porcupine Drive
Anchorage, Alaska 99504
Re: THE APPLICATION OF STANDARD
OIL COMPANY OF CALIFORNIA for an
order granting an exception to the
acreage spacing and distance be-
tween wel I requirements of Title
I I, Alaska Administrative Code,
Section 2061 (c), in order to pro-
duce the Beluga River Unit No.
I 4- 3 we I I .
IT APPEARING THAT:
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Conse rvat ion Orde r No. I II
Beluga River Gas Field
March 3, 1972
I. Standard Oi I Company of California, operator of the Beluga River
Gas Field, submitted an application dated January 7, 1972 for an excep-
tion to the acreage spacing and distance between wel I requirements of
Title II, Alaska Administrative Code, Section 2061(c), in order to produce
the Beluga River Unit No. 14-3 wel I from a perforated interval that is
appro~imately 1,900 feet from the producing interval in the Beluga River
Unit No. 232-4 gas well. Both wel Is I ie in the same governmental section.
2. The referenced we I I, a directional hole, was dri I led to a total
depth of 15,196 f.eet to test the Hemlock conglomerates and abandoned.
Shallow gas sands which produce in other Beluga River Gas Field we I Is
were penetrated from 3,300 feet to 4,800 feet dri I led depth and were protected
behind cemented casing.
3. The operator wishes to complete the referenced we I I in the shal low
Beluga River Unit gas sands and redesignate the gas wel I as Beluga River
Un i t No. 244-4. The bottom of the recomp I eted ho I e wi I I be in the SE
1/4 of Section 4, Township 12 North, Range 10 West, S. M.
4. Only the Sterl ing and Beluga River formations produce gas in the
Beluga River Gas Field. They consist of nonmarine, interbedded, fine to
medium grained sands, coals, si Itstones and shales. Sand deposition is not
uniform across the field.
5. Pools in the Beluga River Gas Field have not been defined.
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Conservation Order No. I I I
Page 2
March 3, 1972
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6. A revised gas sales contract with Chugach Electric Association requires
I ncreased gas de live rab i I i ty .
7. Notice of the application was published in the Anchorage Oai Iy News
on January 25, 1972. There were no protests to the application.
FINDING:
Permeabi lity barriers in the producing formations of the Beluga River
Gas Field may result In some reservoir stringers not being adequately
drained under present statewide spacing rules.
CONCLUSION:
The requested exception to Title I I, Alaska Administrative Code, Section
2061 (c), wi II not adversely affect correlative rights nor result In waste,
and may result In Increased ultimate recovery from the Beluga River Gas
Field.
NOW, THEREFORE, IT IS ORDERED THAT:
I. The Beluga River Unit No. 14-3 wel I may be produced from a perforated
Interval at no less than I ,5001 feet from the producing interval in the
Beluga River Unit No. 232-4 gas we I I.
2. The Beluga River 232-4 gas wel I and the recompleted Beluga River
Unit No. 14-3 wel I may both be produced from the same governmental section.
DONE at Anchorage, Alaska, and dated March 3, 1972.
dL æft¡-JJ i..
Thomas R. Marshal I, Jr., Executive Secretary
Alaska Oi I and Gas Conservation Committee
Concurrence:
d~/:«~~p
Homer L. Burrel I, Chairman
Alaska Oi I and Gas Conservation Committee
f(J~ Æ ¿(;;d?ft,
O. K. Gi Ibreth, Jr., Member
Alaska Oi I and Gas Conservation Committee
#2
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NOTICE OF PUBLIC HEARING
STATE OF ALASKA
DEPARTMENT OF NATURAL RESOURCES
DIVISION OF OIL AND GAS
Alaska Oil and Gas Conservation Committee
Conservation Fi Ie No. I II
Re: The appl ication øf the Standard Oil Company of Cal ifornia for an order grant-
ing an exception to Title I I, Alaska Administrative Code Section 2061 (c) for
relief from the acreage spacing requirements and to produce the Beluga River
Unit No. 244-4 gas wel I from a perforated interval that is less than the 3,000-
foot minimum distance from the perforated interval in another well. Both wel Is
are in the Beluga River Gas Field.
Notice is hereby given that the Standard Oi I Company of California has requested
the Oi I and Gas Conservation Committee to issue an order exempting the referenced wel I
from the 3,000-foot minimum distance requirement and the acreage spacing requirements
of Section 2061 (c) of the Oi I and Gas Conservation Regulations. The referenced wel I
wi I I be produced from an interval that is approximately 2,000 feet from the nearest pay
interval in the Beluga River Unit No. 232-4 wel I and both wel Is lie in the same govern-
mental section. Parties who may be aggrieved if the requested order is issued are
al lowed ten days from the date of this publication in which to fi Ie a protest and request
for hearing. Place of fi ling is 3001 Porcupine Drive, Anchorage, Alaska. If such a
protest is timely fi led, a hearing on the matter wi I I be held at the above address at
9:30 a.m., February 8, 1972, at which time protestants and others may be heard. If no
such protest is timely fi led, the Committee wi I I consider the issuance of the order with-
out a hearing.
d. tfl ~..JJ/L
Thomas R. Marshall, Jr.
Executive Secretary
Alaska Oi I and Gas Conservation Committee
3001 Porcupine Drive
Anchorage, Alaska 99504
Publish January 25, 1972
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AFFIDAVIT OF
STATE OF ALASKA, )
THIRD JUDICIAL DISTRICT, ) 55.
Nary L Shake
'. .......-.... ---..---.--..-...- ..-..- ..-.--- .--.. ..-. -------....-
being first duly sworn on oath
she
deposes a,nd says thaL--...---------
is the--.~¡~~.~~~__º.~~!:~~___... of the
Anchorage News, a daily news-
paper. That said newspaper has
been approved as a legal news-
paper by the Third Judicial Court, -
Anchorage, Alaska, and it is now
and has been published in the
English language continually 8S
a daily newspaper in Anchorage,
Alaska, and it is now and during
all of said time was printed in an
office maintained at the aforesaid
place of publication of said news-
paper. That the annexed is a true
copy of a .__~~g9.1"}~~~_~.9.~_.1.68~·
as it was published in regular
issues (and not in supplemental
form) of said newspaper for. 8
period of m_~_f!_~_______ insertions,
commencing on the ..25_m..day
of ...~_?J!}J_0_:r.Y._"____.., 19'1.?__ , and
ending on the.____.?..?____m___ day of
of ....Ja.nuar¥...-------,, , 19--7-2--,
both dates inclusive, and that
such newspaper was regularly
distributed to its subscribers dur-
ing all of sa,id period. That the
full amount of the fee charged
for the foregoing publication is
the sum of $ lL¡..OO which
amount has been paid in full at
the rate of 25¢ per line; Mini-
mum charge $7.50.
~¿Uý/J¿
Subscribed rd sworn to before
me this --2.5-- day of___January._,
19--n"d ~"
.__@-dd:-.__~.L.u_____
u_~~~-~-
the State of Alaska,
Third Division,
Anchorage, Alaska
ß :MMISSION EXPIRES
_._.:........:..~-·::fd.;....:.../L., 19.Z2
PUBLiCA TION
·~~I¡!~.':fl~;~9
DEPA~TM~r"::I,r~J~~~~~SOURÇ~S, ""
DIVISION 'OF' blt!~ÄN'O GAS '. I
AI~s~. Oil II"~ ç.~q"n's~,v.tlºn ~ol1lmltt~A
cq,n~~ry~r~;:1'~n",Nq. 111. ..:'i
ßt; ''''If. 'a~ll;e,t¡lb,¡qt'::'ith'J' 6t'!\~.'4 'Ø~I:I
.,,~Qmp.~Q,Y· of:, Ç'lif9r~\.. ,fpr~o. . ~.r~t~r,
1~4ntt~g I~..(c.ptfö~'· to ,'Itl. < I,!
Alìlskll'~IM~J~¡~tr~fi~':' Code '. Seèflon
.. 2ß6)~k~:f~I!&t(.I'f~;J{,' .... ,tn, ,1I.çre"e
liP!'. 1;,".9 . . nt . a. n. d to produce'
thi{,~,r, o. 1 ~44'4' glS
w..k.~i. '~~ l!1t"r,VIII th.t'
is len thai.."th 'OO~foot minImum
distance fr9,'llth.e 'p'iI~f~rat,d Interv~J
in ' ,.liðthlf!J\t~,R~J't'~rbl, wells Ire in the
Belupa .' ,RI~~,r,'_:ilJ~I~,
NotlC.~¡.f~~· ~~~~~lt',1he St.~dl"d
Oil ç,~::'~ " ~.s re9u~t~~'
the"" (lit' '119 (omrnltt.. to
issue 'f." . :,the "r_f.,.nç,~
well' f,(ggl~~f ' ~1J!pjml/!TI di"stp,n~.
requirem:èh~' ,.I~fI, 'I'" å~r.age sp~cing" re·
quiremei'lfs: ,e:çf(G~"'~1Ø6]'(c) of' the 6i1
Ind :Ga~;:Rì. ~i~1t''''lltlonl. The ref:
erel1.c'd, .I~~' '... .. ('pr.:r.QI4.\I~j_ frqrn "'I
InferYII Ii ': rm~t..IY :2.QQP. "f~.t
from the' 'II. " .nt"rv.1 in the lelugl '
River Unit ":NO~.:~'23~~4, well an~. bot!, ""I,s
lie 1.1:1 tþ.~;' $~~pY"rnrr!.ntll· J~~tl!ln.
Parties who' mll'y"beaggriel/ed If tht. rt·
qUJ!stl!d order . is, s$u/ld are ¡ill owed tel'i
daY$ from'" t~1I dat~ (9f~.thjs ,publl~lIr¡9n in
wh Ich to filII a' prpt!it !lnd' request for'
hearing. PI,ce of flnng 'Is 3~01 flørc:upin.
·l;IriY.~ :A~çh!1lf~Ø!!fA~f~~~'f ,'U~~ \\,~,r~lt'ft
'is timely.fil,~, a:,. ,. ~t. ~n,thè,.I)1.t-~~r
Wi'll ~eheld at· ~h.~'~ . .'!~ a_~.r.sslt$n~O
a.m.,~e~ru~ry 8,. 'l~""lt''"'Y'hlc~:t~rne.
prøtestal'lt..~. . a. nd othl!r._.,<.,.. .'. .... '.~~. . h,.ør~... : If..: .:
Qo'such-""protest is ,tlm . '. .. tb., ;'~PIJ\~\,
mittee will consider the"":' Ct :'of" tht
~ or~er without a' hllring. '
Thomas R. M,r'~I", . Jr.
E~ecu'iY. $fcr,t.'v
Alaska 011 ,.,4 "G~~ . Cq"s.rvetiqn,
Committee' .. .'
3001 . Porc\lpin, D,lv.
Anchorage~ Ala,k, "~~'
pubt;ftt: ,J,nUfr'. ty,25~'."
"~:,~.No.l_,.
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Chevron
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Standard Oil Company of California,
Western Operations, Inc.
P.O. Box 7-839, Anchorage, AK 99501 · Phone (907) 279-9666
C. V. Chatterton
District Superintendent
Producing Department
January 7, 1972
Application for Exception to
Section 206l(c) of the Oil and
Gas Conservation Regulations
Beluga River Unit Gas Field, Alaska
Mr. Homer Burrel, Director
Division of Oil and Gas
Department of Natural Resources
3001 Porcupine Drive
Anchorage, Alaska 99504
Dear Sir:
Standard Oil Company of California, as Operator for itself, Atlantic Richfield
Company and Shell Oil Company, proposes to re-enter and complete (South)
Beluga River Unit #14-3 in the Beluga River Unit gas sands and redesignate
the well as Beluga River Unit #244-4 located within the SE 1/4 of Section 4,
Township 12 North, Range 10 West, S.M.
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The completion of BRU #244-4 at this location will require an exception to
Section 206l(c) entitled "Well Spacing" of the Oil and Gas Conservation
Regulations as it relates to distance between wells and the well spacing
requirements in relation to BRU #232-4 Well. This is discussed in detail
in the attached Geologic and Engineering Report.
All the lands within the Beluga River Gas Field are unitized by the Beluga
River Unit. Through unitization all correlati~Q rights and equities of the
affected interest owners are adequately protected. Property and lease lines
within the field are subject to the philosophy of unitization and may be
disregarded for the purpose of re-entering and completing the (South)BRU
#14-3 at the location specified herein. .
In support of this application Standard, as Operator, respectfully submits
the following report and exhibits:
1. Geologic and Engineering Report
2. Exhibit "1" Structure Contour Map
3. Exhibit "2" Correlation Electric Log Section
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Mr. Homer Burrel, Director
Division of Oil and Gas
Department of Natural Resources
January 7, 1972
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Now, therefore, Standard, as Operator, hereby respectfully requests that an
order be issued pursuant to Title II, Alaska Administrative Code, Section
2009, for the purpose of granting an exception to Section 206l(c) of the Oil
and Gas Conservation Regulations, authorizing the re-entering and completion
of the (South) BRU #14-3 within the herein designated legal subdivision and
redesignating of the well to BRU #244-4.
Re~.pectf~llY~..~~.Ub.1...tt. e..d,
;/ ~?(:""--' ..- .,~' '/:i:' . ';
Ii/' .: /-'" / .'.. .i~
,i ' ~ ...~,
l > ¡. '/: 1 jj!jê7C ,'-'0
"c. V. Chatterton
Enclosures
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GEOLOGIC AND ENGINEERING REPORT IN SUPPORT OF THE VARDu~CE
INTRODUCTION
Well (South) Beluga River Unit 1114-3, an exploratory well to test the Hemlock
conglomerates, was directionally drilled in 1967 by Standard Oil Company of
California, as Operator for itself and Atlantic Richfield Company and Shell Oil
Company.
During the course of drilling well (S)BRU 14-3, shallow productive Beluga River
Unit gas sands were penetrated from 3300' to 4800' drilled depth. These zones
were protected by cementing a string of 9-5/8" casing across them. Well (S)BRU
14-3 was subsequentiy drilled to a T.D. of 15,196' and abandoned.
At the time that well (S)BRU 14-3 was abandoned no additional productive capacity
was needed to meet contractual gas deliverability requirements with Chugach
Electrical Association~ As of January 1, 1973, however, the present contract
with Chugach requires a peak deliverability capability of 30,000 MCF/D. The
present peak requirement is 20,000 MCF/D.
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In order to partially offset this increased productivity requirement, Standard
Oil Company of California, as Operator for itself, Atlantic Richfield Company,
and S11ell Oil Company, now. proposes to reenter Well (S)BRU #14-3 and complete it
in the Beluga River Unit gas sands.
Originally, the best structural advantage for a Hemlock test was considered to be
underneath Cook Inlet in Section 3; t-12-N; R-lO-W, SB&M. Accordingly the
surface location for well (S)BRU 1114-3 was placed on land in Section 4, T-12-N;
R-lO-W, SB & M and directionally drilled to the offshore location. There is
presently one other Beluga River Unit gas producer, however, which is also drilled
in Section 4 (well BRU #232-4). Thus, in order to complete well (S)BRU #14-3
a spacing variance is required which would allow departure from the regulation
stipulating only one well per 600 acres and a minimum offset of 3000' between
existing producers.
Upon completion of well (S)BRU 14-3 in the Beluga River Unit gas sands, its
number will be changed to Beluga River Unit well 11244-4.
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DETAIL
The Beluga River field is an anticlinal feature oriented roughly in a north-
south direction. Structural closure is approximately 550' from a sub sea depth
of -2900' to the estimated gas-water contact at -3450'. The field contains
approximately 4,300 productive acres. (Please refer to Exhibit #1)
The productive gas measures discovered to date at Beluga lie between a drilled
depth of 3,100' and 5,200' in the Sterling (North Cook Inlet) and Beluga River
formations. Presently there are 4 wells completed in these gas sands, which
are BRU #232-4, 233-27, 212-25 and 212-35 (discovery well, originally
numbered Beluga River Unit #1) as shown on Exhibit #1.
Beluga River Unit wells 232-4, 233-27 and 212-35 are currently completed in
Beluga River formation sands only while well 212-25 is completed in þoth
the Sterling and Beluga River sands. Productive Sterling and additional Beluga
River formation sands are yet unperforated at wells BRU 232-4, 233-27 and 212-35.
The Sterling and Beluga River formations consist of non-marine, interbedded,
fine to medimum grained sands, coals, siltstones and shales. Sand deposition
is not uniform across the Beluga River structure. The sands are lenticular and
shale out from location to location and merge at others. In general, correlations
are difficult, but are better within the Sterling than the Beluga River formation.
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In the variance wells, (South) Beluga River Unit #14-3 and Beluga River Unit
#232-4, essentially the same Sterling sand intervals are present and productive
in each well. However, productive sands in the Beluga River formation are more
discontinuous and not generally laterally equivalent. A detailed correlation
section between these two wells is attached as Exhibit #2.
As proposed, wells BRU #232-4 and (S)BRU #14-3 will initially be produced from
different sands; viz., (1) the Sterling formation which is not perforated at
232-4 will be perforated at (S)BRU #14-3, and (2) the Beluga River formation will
be perforated in different stratigraphic sands in the two wells.
In the future, operating conditions or a mechanical failure could necessitate the
perforation of the Sterling sands at well BRU 232-4. This condition, however,
should not reduce the ultimate economic recovery from the Beluga River Field due
to the different structural position of each well.
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SUMMARY
1. Well (South) Beluga River Unit #14-3 was originally drilled as an
exploratory test of the Hemlock conglomerates. Structural advantage at
the Hemlock interval required directionally drilling the well from Section
4; T-l2-N; R-10-W; SB&M. The well was abandoned after numerous lower interval
tests.
2. Contractual commitments with Chugach Electric Association require an increase
in the peak demand gas requirements from the Beluga River Field from 20,000
MCF/D to 30,000 MCF/D as of January 1, 1973. Salvage of well (S)BRU #14-3
in the Beluga' River Unit gas sands will aid in offsetting the increase in
demand by Chugach.
3. Sand deposition in the Sterling and Beluga River formations is not uniform
across,the Beluga River structure. Sands shale out at some locations and
merge at others. Correlations between BRU #232-4 and (S)BRU #14-3 indicate
that essentially the same Sterling sands are productive at each well whereas
different Beluga River sands are productive.
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4. Since the Sterling formation is not perforated at well ERU #232-4, and the
Beluga River formation sands are discontinuous, completion of (S)BRU #14-3
will expose different sands in the two wells. In the future, operating
conditions or a mechanical failure could necessitate the perforation of the
Sterling sands at well BRU 232-4. This condition should, however, not reduce
the ultimate economic recovery from the Beluga River Field due to the
different structural position of each well.
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