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Home My WebLink AboutO 184Other Order 184 Docket No: OTH-21-016 Eni's Bonding Liability 1. May 6, 2021 Eni's Request to Reduce Bonding Amount 2. May 11, 2021 Eni's Reply to AOGCC's Request for Copy of the Original Bond STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7" Avenue Anchorage, Alaska 99501 Re: Request by Eni US Operating Company ) Docket Number: OTH-21-016 Inc. for reduction in the bonding amount ) Other Order No. 184 Errata required under new state regulation ) 20 AAC 25.025. ) Eni US Operating Company Inc. ) Bond Reconsideration Request May 19, 2021 DECISION AND ORDER On July 2, 2019, the Alaska Oil and Gas Conservation Commission (AOGCC) sent Eni US Operating Co. Inc. (Eni), as operator of the Nikiatchuq Unit (NU), a letter regarding the new bonding requirements in 20 AAC 25.025. This letter advised that under the new regulation, Eni's 59 permitted wellheads increased Eni's level to $10,000,000. Because Eni had a $200,000 bond in place, an additional $9,800,000 in bonding was required, payable in four annual installments of $2,450,000 per year. On August 20, 2019, Eni increased its bond in place with the AOGCC by $2,300,000 to $2,500,000. This increase was $150,000 less than what was required by the regulations. On August 7, 2019, Eni filed a Designation of Operator Form to the AOGCC, indicating that effective February 1, 2019, Eni acquired the northern portion of the Oooguruk Unit (OU) from Caelus Natural Resources Alaska, LLC, and became operator of that portion of the OU. This action increased Eni's permitted wellheads to 99. Since that time, Eni has permitted three additional wells thus increasing its permitted wellheads to 102, which moved Eni into the 101 to 1,000 permitted wellheads bonding tier and increased its bonding liability to $20,000,000. On March 7, 2021, revisions to 20 AAC 25.025 became effective, including a modification of the bonding tiers, an increase in the number of installments that an operator could use to reach its new bonding level from four to seven years, and an offset for bonds that an operator has with another entity dedicated exclusively to the plugging and abandonment (P&A) of wells. On May 6, 2021, Eni requested reconsideration, seeking a reduction in its required bonding amount, based on a separate P&A bond it had in place with the U.S. Environmental Protection Agency (EPA) for its three Underground Injection Control Class I disposal wells. Eni provided a copy of a rider that increased the amount of its bond with the EPA from $1,400,000 to $2,100,000 to account for its acquisition of a Class I disposal well in the OU. On May 11, 2021, Eni provided a copy of the original bond that the rider applied to. FINDINGS: Based upon the evidence presented by Eni, the AOGCC finds as follows: 1. Eni has a $2,100,000 bond in place with the EPA dedicated exclusively to the P&A of the three Class I disposal wells that it operates. 2. Eni requests that those three wells be dropped from its permitted wellheads count, thus reducing the permitted wellheads from 102 to 99 and reducing its total bonding obligation from $20,000,000 to $10,000,000. Other Order 184 Errata May 19, 2021 Page 2 of 2 CONCLUSIONS: 1. The $2,100,000 EPA bond is exclusively dedicated to the P&A costs of the three Class I disposal wells (NU OP26-DSP02, NU SD37-DSP1, and OU ODSW 01-44) operated by Eni. 2. The per well amount of the EPA bond is $300,000 more than the $400,000 bond that the AOGCC would require for a single well. 3. Reducing Eni's permitted wellheads count by three wells to account for the existing EPA bond is appropriate. NOW THEREFORE IT IS ORDERED THAT: As of the date of this order, Eni's permitted wellhead count is 99 and its bonding requirement for the AOGCC is $10,000,000 less Eni's existing $2,500,000 AOGCC bond. As a result, Eni's revised bond requires an additional $7,500,000, which can be made in six additional installments. In order to make up for the $150,000 deficiency in Eni's existing bonding, the next installment would be a minimum of $1,375,000 and the remaining five installments would be a minimum of $1,225,000. The second installment in the amount of $1,375,000 is due by August 16, 2021. Eni must immediately notify AOGCC of any change in the amount or status of the EPA bond. Should Eni's permitted wellheads increase to 101 or more, its bonding requirement would increase to $20,000,000 and the installments would be adjusted accordingly to establish the full $20,000,000 in bonding at the completion of the six remaining installments. DONE at Anchorage, Alaska, and dated May 19, 2021. Digitally signed Jeremy by Jeremy Price Price Date: 2021.05. 19 18:01:40-08'00' Jeremy M. Price Commissioner, Chair Daniell'. ..a a,—.. Seamount, Jr. �•__�=�o.�s�a.==�^_� Daniel T. Seamount, Jr Commissioner APPEAL NOTICE 1B$$12 L. Digitally signed by Jessie L Chmielowski Chmielowski Date: 2D21.os.lg 0:4630-08.00. Jessie L. Chmielowski Commissioner This order on reconsideration is the FINAL order of the AOGCC. It may he appealed to superior court. Any appeal MUST be filed within 33 days after the date on which the AOGCC mails this order, OR 30 days if the AOGCC otherwise distributes this order. In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. Salazar, Grace (CED) From: Salazar, Grace (CED) <grace.salazar@alaska.gov> Sent: Wednesday, May 19, 2021 6:11 PM To: AOGCC Public Notices Subject: [AOGCC_Public_Notices] Docket OTH-21-016, Other Order No. 184 (Errata) Attachments: Other184 Final_Errata.pdf Please see attached. Re: Request by Eni US Operating Company Inc. ) Docket Number: OTH-21-016 for reduction in the bonding amount required ) Other Order No. 184 ERRATA under new state regulation 20 AAC 25.025. ) Eni US Operating Company Inc. Bond Reconsideration Request May 19, 2021 i Respectfully, M. Grace Salazar, Special Assistant Alaska Oil and Gas Conservation Commission 333 West 71h Avenue Anchorage, AK 99501 Direct: (907) 793-1221 Email: grace.salazar@alaska.gov https://www.commerce.alaska.gov/web/aogcc/ List Name: AOGCC_Public_Notices@list.state.ak.us You subscribed as: grace.salazar@alaska.gov Unsubscribe at: http:Hlist.state.ak.us/mailman/options/aogcc_public_notices/grace.salazar%40alaska.gov Bernie Karl Gordon Severson Richard Wagner K&K Recycling Inc. 3201 Westmar Cir. P.O. Box 60868 P.O. Box 58055 Anchorage, AK 99508-4336 Fairbanks, AK 99706 Fairbanks, AK 99711 George Vaught, Jr. Darwin Waldsmith P.O. Box 13557 P.O. Box 39309 Denver, CO 80201-3557 Ninilchik, AK 99639 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7t' Avenue Anchorage, Alaska 99501 Re: Request by Eni US Operating Company ) Docket Number: OTH-21-016 Inc. for reduction in the bonding amount ) Other Order No. 184 required under new state regulation ) 20 AAC 25.025. ) Eni US Operating Company Inc. ) Bond Reconsideration Request May 18, 2021 DECISION AND ORDER On July 2, 2019, the Alaska Oil and Gas Conservation Commission (AOGCC) sent Eni US Operating Co. Inc. (Eni), as operator of the Nikiatchuq Unit (NU), a letter regarding the new bonding requirements in 20 AAC 25.025. This letter advised that under the new regulation, Eni's 59 permitted wellheads increased Eni's level to $10,000,000. Because Eni had a $200,000 bond in place, an additional $9,800,000 in bonding was required, payable in four annual installments of $2,450,000 per year. On August 20, 2019, Eni increased its bond in place with the AOGCC to $2,700,000. On August 7, 2019, Eni filed a Designation of Operator Form to the AOGCC, indicating that effective February 1, 2019, Eni acquired the northern portion of the Oooguruk Unit (OU) from Caelus Natural Resources Alaska, LLC, and became operator of that portion of the OU. This action increased Eni's permitted wellheads to 99. Since that time, Eni has permitted three additional wells thus increasing its permitted wellheads to 102, which moved Eni into the 101 to 1,000 permitted wellheads bonding tier and increased its bonding liability to $20,000,000. On March 7, 2021, revisions to 20 AAC 25.025 became effective, including a modification of the bonding tiers, an increase in the number of installments that an operator could use to reach its new bonding level from four to seven years, and an offset for bonds that an operator has with another entity dedicated exclusively to the plugging and abandonment (P&A) of wells. On May 6, 2021, Eni requested reconsideration, seeking a reduction in its required bonding amount, based on a separate P&A bond it had in place with the U.S. Environmental Protection Agency (EPA) for its three Underground Injection Control Class I disposal wells. Eni provided a copy of a rider that increased the amount of its bond with the EPA from $1,400,000 to $2,100,000 to account for its acquisition of Class I disposal well in the OU. On May 11, 2021, Eni provided a copy of the original bond that the rider applied to. FINDINGS: Based upon the evidence presented by Eni, the AOGCC finds as follows: 1. Eni has a $2,100,000 bond in place with the EPA dedicated exclusively to the P&A of the three Class I disposal wells that it operates. 2. Eni requests that those three wells be dropped from its permitted wellheads count, thus reducing the permitted wellheads from 102 to 99 and reducing its total bonding obligation from $20,000,000 to $10,000,000. Other Order 184 May 18, 2021 Page 2 of 2 CONCLUSIONS: 1. The $2,100,000 EPA bond is exclusively dedicated to the P&A costs of the three Class I disposal wells (NU OP26-DSP02, NU SD37-DSPI, and OU ODSW 01-44) operated by Eni. 2. The per well amount of the EPA bond is $300,000 more than the $400,000 bond that the AOGCC would require for a single well. 3. Reducing Eni's permitted wellheads count by three wells to account for the existing EPA bond is appropriate. NOW THEREFORE IT IS ORDERED THAT: As of the date of this order, Eni's permitted wellhead count is 99 and its bonding requirement for the AOGCC is $10,000,000 less Eni's existing $2,700,000 AOGCC bond. As a result, Eni's revised bond requires an additional $7,300,000, which can be made in six additional installments. The first five installments would be a minimum of $1,217,000 each, and the final installment would be the difference between the amount of bonding that Eni has in place after the fifth installment and the $10,000,000 of required bonding. If minimum installments are made, the sixth installment would be in the amount of $1,215,000. The second installment of $1,217,000 is due by August 16, 2021. Eni must immediately notify AOGCC of any change in the amount or status of the EPA bond. Should Eni's permitted wellheads increase to 101 or more, its bonding requirement would increase to $20,000,000 and the installments would be adjusted accordingly to establish the full $20,000,000 in bonding at the completion of the six remaining installments. DONE at Anchorage, Alaska, and dated May 18, 2021. Debby signed Jerem tnjeR yVtice Dans. y Price ;3l,q 18. Jeremy M. Price Commissioner, Chair Digitally signed by DanielT. Daniel T.Sentauntk Seamount, Jr. Date:202105.16 12:21:45-080V Daniel T. Seamount, Jr Commissioner Digitally signed by Jessie L• Jessie L. chmielowskl Chmielowski late: 2021.05.18 12,1690-08'00' Jessie L. Chmielowski Commissioner This order on reconsideration is the FINAL order of the AOGCC. It may be appealed to superior court. Any appeal MUST be filed within 33 days after the date on which the AOGCC mails this order, OR 30 days if the AOGCC otherwise distributes this order. In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. INDEXES Salazar, Grace (CED) From: Province Robert <Robert.Province@eni.com> Sent: Tuesday, May 11, 2021 2:41 PM To: Roby, David S (CED); Davies, Stephen F (CED) Cc: Salazar, Grace (CED); Wright Lindsay Subject: RE: Eni's bonding liability (Disposal wells: SD37-DSP1, OP26-DSP02 and ODSDW1-44) Attachments: Original Bond RLB0011934 Replacing SUR0017035.pdf Dave, Attached, per your request is a copy of the original bond, to the Rider I previously provided you, for your records. Contact me if additional information is needed in this regard. Robert A. Province Manager - Land & Public Relations W i• A { Eni US Operating Co. Inc (907) 865-3350- Office (907) 947-3793 - Cell Email: robertprovince@eni com From: Roby, David S (CED) <dave. roby@alaska.gov> Sent: Thursday, May 6, 2021 3:23 PM To: Province Robert <Robert.Province@eni.com>; Davies, Stephen F (CED) <steve.davies@alaska.gov> Cc: Salazar, Grace (CED) <grace.salazar@alaska.gov>; Wright Lindsay <Lindsay.Wright@external.eni.com> Subject: RE: Eni's bonding liability (Disposal wells: SD37-DSP1, OP26-DSP02 and ODSDWI-44) Hi Robert, Thanks for providing the information. I notice the provided documentation is a rider increasing the amount of bond no. SUR0017035 from $1.4 to $2.1 million. Is there any chance we could get a copy of the original bond that this rider is modifying to make sure we have a complete record? Thanks in advance. Regards, Dave Roby (907)793-1232 From: Province Robert <Robert.Province@eni.com> Sent: Thursday, May 6, 2021 10:04 AM To: Roby, David S (CED) <dave.robv@alaska.eov>; Davies, Stephen F (CED) <steve.davies@alaska.eov> Cc: Salazar, Grace (CED) <grace.salazar@alaska.gov>; Wright Lindsay <Lindsay.Wright@external.eni.com> Subject: Eni's bonding liability (Disposal wells: SD37-DSP1, OP26-DSP02 and ODSDWI-44) Dave, In accordance with 20 AAC 25.025(b)(3) Eni, by this email, hereby requests AOGCC adjust (decrease) Eni's bonding liability, by removing the three Class I wells (disposal wells) from Eni's total well count. Attached, for you review is a copy of Eni's evidence (Bonding Rider) identifying the subject 3 Class 1 wells (SD37-DSP1, OP26-DSP02 and ODSDWI-44) in favor/bonded by the EPA. Please contact me if you have any questions or need any additional information in this regard. Thank you, Robert A. Province Manager - Land & Public Relations emEni US Operating Co. Inc (907) 865-3350- Office (907) 947-3793 - Cell Email: robertorovincePeni com Message for the recipient only, if received in error, please notify the sender and read htto://www.eni.com/disclaimer/ KL1� J 1 June 11,2012 U.S. Environmental Protection Agency Underground Injection Control -Region 10 1200 Sixth Avenue Seattle, WA 98101 Re: Principal: Eni US Operating Co. Inc. Bond No.: RLB0011934 Written By: RLI Insurance Company Bond Amount: $2,800,000.00 Type of Bond: Plugging & Abandonment Bond To Whom It May Concern? The above captioned surety bond is being replaced by Bond No. SUR0017035 (original of which is enclosed for filing with your office), issued through Argonaut Insurance Company effective July 24, 2012. In order to officially close the bond previously issued by RLI Insurance Company, we need to provide them with a release for all past, present and future liability, which is the purpose of the Assumption of Liability rider attached to the bond. By signing below, the U.S. Environmental Protection Agency is hereby acknowledging that they are releasing RLI Insurance Company's Bond #RLB0011934 from all past, present and future liability under the above captioned bond. If you should have any questions, please do not hesitate to contact our office Sinc7ely, C�it �6�/ omas Clieecialist Surety Department 832-476-6767 •m�••••mmmmmmmmmm••••••mmmmmmmmm u•momm mmmmm:mmm mmm mm mm mmmmm• mmm m.............. mmm•mmmmmmmar U.S. Environmental Protection Agency Hand No. RLB0011934 Underground Injection Control Title: Date: Released as of 07/24/2012 cc: RLI Insurance Company Attn: Greg Chilson 8 Greenway Plaza, Suite 400 Houston, TX 77046 Eni Petroleum Attn: Brady Klepac 1201 Louisiana, Suite 3500 Houston, TX 77002 Ann Risk Solutions I Construction Services Group I Surely 5555 San Felipe Street I Suite 1500 1 Houston, TX 77056 t+1.832.476.6000 1 f+1.800.953.4542 1 www.aon.com Ann Risk Services Southwest, Inc. BOND RIDER TO ASSUME LIABILITY RIDER NO. 1 Attaching to and forming part of Surety Performance Bond Bond No. SUR0017035. executed July 24, 2012 , on behalf of Eni US Operating Co. Inc. as Principal, in favor of U.S. Environmental Protection Agency as Obligee, in the amount of Two Million Eight Hundred Thousand and No/100 Dollars ($2 800,000.00). It is understood and agreed that effective July 24, 2012 this bond also extends to and covers all liability associated with the following bond(s): Bond No. Surety Principal Date Executed RLS0011934 RLI Insurance Company Eni US Operating Co. Inc. July 24, 2008 Signed, sealed and dated this 11' day of June . 2012. Eni US Operating Co. Inc. Principal By: L7C'f'�i�rl' — ll:rA.St�RE� Printed Name & Title Argonaut Insurance Company Surety By: Wendy W. `'Stuckey, Attorney -in -Fact Argonaut Insurance Company 225 W. Washington, 6th Floor Chicago, IL 60606 POWER OF ATTORNEY KNOW ALL MEN BY TI Ih:Sl, PRESENTS: final the Argonaut Insurance Company, a Corporation duly organi>ad and existing under the laws of the State of Illinois and having its principal office in the County of Cook. Illinois does hereby nominate. constitute end appoint: Margaret Buholy Michael J. I lerrod Wendy W Stuckey, Lune Tyler, and Lim A Ward 'Their true and lawful agent(s) and attorray(s)-in-fact, each in their separate capacity ifmore than one is named above, to make. execute. seal and deliver lift and on its behalf as surety, and as its act and deed any and all bonds, contracts. agreements of indemnity and other undertakings in suretyship provided. hoax ver, that the penal sum of any one such instrument executed hereunder shall not exceed the sum of S20,000.000.00 This Power of Attorney is granted and is signed and scaled under and by the authority of the following Resolution adopted by the Board A Directors of Argonaut Insurance (-ompany: 'RFSOI.VED.'that the President, Senior Vice President. Via President, Assistant Vice President, Secretary, Treasurer and each of them hereby is authorized to execute powers of attorney, and such authority can be executed by use of facsimile signature. which may he attested or acknowledged by any offoar Or attorney, Of the Company, qualifying the attorney or attorneys owned in the given power of attorney . to execute in behalf of and acknowledge as the act and deed of the Argonaut Insurance Company, all bond undertakings and contracts of surei)ship. and IL) affix the corporate seal thereto." IN WITNESS WIIER&OF, Argonaut Insurance Company has caused its official seal to be httcunur affixed and These presents to be signed by its duly authorized officer on the 151h day of September, 2011. Argonaut (Insurance Company 7✓ L by: Michael E, Ark:dgL President STATE OF TEXAS C'OUNTYOFIIARRIS SS: On this 15th day of September, 2011 A-D, before arc. a Nona Public of the State of Texas, in and for the County of Harris, duly commissioned and qualified, came THE ABOVE OFFICER OF 1711'. ('OMP:'(N)'. tome personally known In be the individual and officer described in, and who executed the proading instrument. and he acknowledged the execution of same, and being by me duly swum, deposed and said that he is the officer of the said Company aforesaid, and that the seal affixed to the preceding instrument is the Corporate Seal of said Company, and the said Corporate Seal and his signature as officer were duly affixed and subscribed to the said instrument by the authority and dimction of the said corporation, and that Resolution adopted by the Roard of Directors of said ('omp:my. referred to in the preceding instmment is now in fora. IN TESTIMONY II Rfil W. I hm c hereunto set my hand, and affixed my Official Seal at the County of Harris, the day and year first above written. P IrAhhEHJ M a.� SOO�RI'R Va SIN( OF 11yA5 WCOMM UP. 07-15-2013 �Kathtw, ,r».H'Ytul� tNotary Public) I, the undersigned Officer Of the Argonaut Insurance Company, Illinois Corporation, do hereby certify that the original POWER OF ATTORNEY of which the foregoing is a full, true and correct copy is still in full force and effect and has not been revoked. IN WITNESS WHEREOF. I have hereunto set my hand, and affixed the Seal (if said Company, on the 11th day of Jung _. 2012 Lr % Joshua C. Bett Assistant Vice President AS-0037681 THIS DOCUMENT IS NOT VALID UNLESS PRINTED ON SHADED BACKGROUND WITH BLUE SERIAL NUMBER IN THE UPPER RIGHT HAND CORNER. IF V011 HAVE QUI S FIONS ON AUTHENTICITY OFTHIS DOCUMENT CALL (210) 321 -11M. 17"IS UNDERSTOOD AND AGREED'I'l1AT 17FFECTIVE IULY 24, 2012. ARGONAUT INSURANCE COMPANY BOND NO. SUR00170.151S ISSUED IN PLACE OF. AND NOT IN ADDITION "tO RI.1 INSURANCE COMPANY BOND NO. IU,FMI1934. SURETY PERFORMANCE BOND U.S. Environmental Protection Agency Underground Injection Control Financial Responsibility Requirement BOND COVERS THE PLUGGING OF INJECTION WELLS Date bond executed: June 11, 2012 Effective date: July 24, 2012 Principal: Eni US Operating Co. Inc. (Legal name of owner or operator) 1201 Type of organization: Corporation TX 77002 ' owner or (Individual, joint venture, partnership, or corporation) State of incorporation: Delaware Surety(ies): Argonaut Insurance Company (Name) 225 W. Washington, 6th Floor, Chicago, IL 60606 (Business Address) EPA identification number, name, address, andplugging and abandonment amount(s) for each injection well guaranteed by this bond. (Indicate plugging and abandonment amounts for each well. Attach separate list if necessary.) Plugging & Abandonment Iniection Well Information Amount See attached Seliedifle A $2,800,000.00 Total penal sum of bond: $ 2,800,000.00 Surety's bond number: SUR0017035 KNOW ALL PERSONS BY THESE PRESENTS, That we, the Principal and Surety(ies) hereto are firmly bound to the U.S. Environmental Protection Agency (hereinafter called EPA), in the above penal sum for the payment of which we bind ourselves, our heirs, executors, administrators, successors, and assigns jointly and severally; provided that, where the Surety(ies) are corporations acting as co -sureties, we, the Sureties, bind ourselves in such sum "jointly and severally" only for the purpose of allowing a joint action or actions against any or all of us, and for all other purposes each Surety binds itself, jointly and severally with the Principal, for the payment of such sum only as is set forth opposite the name of such Surety, but if no limit of liability is indicated, the limit of liability shall be the full amount of the penal sum. WHEREAS said Principal is required, under the Underground Injection Control Regulations, as amended, to have a permit or comply with provisions to operate under rule for each injection well identified above, and WHEREAS said Principal is required to provide financial assurance for plugging and abandonment as a condition of the permit or approval to operate under rule, and WHEREAS said Principal shall establish a standby trust fund as is required when a surety bond is used to provide such financial assurance; NOW, THEREFORE, the conditions of this obligation are such that if the Principal shall faithfully perform plugging and abandonment, whenever required to do so, of each injection well for which this bond guarantees plugging and abandonment, in accordance with the plugging and abandonment plan and other requirements of the permit or provisions for operating under rule and other requirements of the permit or provisions for operating under rule as may be amended, pursuant to all applicable laws, statutes, rules and regulations, as such laws, statutes, rules, and regulations may be amended, Or, if the Principal shall provide alternate financial assurance as specified in Subpart F of 40 CFR 144, and obtain the EPA Regional Administrator's written approval of such assurance, within 90 days after the date of notice of cancellation is received by both the Principal and the EPA Regional Administrator (a) from the Surety(ies), then this obligation shall be null and void. Otherwise it is to remain in full force and effect. The Surety(ies) shall become liable on this bond obligation only when the Principal has failed to fulfill the conditions described above. Upon notification by an EPA Regional Administrator that the Principal has been found in violation of the plugging and abandonment requirements of 40 CFR 144, for an injection well which this bond guarantees performances of plugging and abandonment, the Surety(ies) shall either perform plugging and abandonment in accordance with the plugging and abandonment plan and other permit requirements or provisions for operating under rule and other requirements or place the amount for plugging and abandonment into standby trust fund as directed by the EPA Regional Administrator. Upon notification by an EPA Regional Administrator that the Principal has failed to provide alternate financial assurance as specified in Subpart F of 40 CFR 144, and obtain written approval of such assurance from the EPA Regional Administrators) during the 90 days following receipt by both the Principal and the EPA Regional Administrator(s) of a notice of cancellation of the bond, the Surety(ies) shall place funds in the amount guaranteed for the injection well(s) into the standby trust fund as directed by the EPA Regional Administrator The Surety(ies) hereby waive(s) notification of amendments to plugging and abandonment plans, permits, applicable laws, statutes, rules, and regulations and agrees that no such amendment shall in any way alleviate its (their) obligation on this bond. The liability of the Surety(ies) shall not be discharged by any payment or succession of payments hereunder, unless and until such payment or payments shall amount in the aggregate to the penal sum of the bond, but in no event shall the obligation of the Surety(ies) here under exceed the amount of said penal sum. The Surety(ies) may cancel the bond by sending notice by certified mail to the owner or operator and to the EPA Regional Administrators) for the Region(s) in which the injection well(s) is (are) located, provided, however, that cancellation shall not occur during the 120 days beginning on the date of receipt of the notice of cancellation by both the Principal and the EPA Regional Administrator(s), as evidenced by the return receipts. The Principal may terminate this bond by sending written notice to the Surety(ies); provided, however, that no such notice shall become effective until the Surety(ies) receive(s) written authorization for termination of the bond by the EPA Regional Administrator(s) of the EPA Region(s) in which the bonded injection well(s) is (are) located. (The following paragraph is an optional rider that may be included but is not required.) Principal and Surety(ies) hereby agree to adjust the penal sum of the bond yearly so that it guarantees a new plugging and abandonment amount, provided that the penal sum does not increase by more than 20% in any one year, and no decrease in the penal sum takes place without the written permission of the EPA Regional Administrator(s). In WITNESS WHEREOF, The Principal and Surety(ies) have executed this Performance Bond and have affixed their seals on the date set forth above. The persons whose signature appear below hereby certify that they are authorized to execute this sur ety bond on behalf of the Principal and Surety(ies) and that the wording on this surety bond is identical to the wording specified in 40 CPR 144.70(c) as such regulation was constituted on the date this bond was executed. PRINCIPAL: En! US Operating Co. Inc. (Name) 1101 Louisiana, Suite 3500, Houston, TX 77002 (Address) (�Si�ggnat�ur�e (s) ) (Na e(s)) Tii'r=p5LtQc R (Title(s)) Corporate Seal Delaware State of Incorporation $ 28,000.00 Bond Premium CORPORATE SURETY(IES): Argonaut Insurance Comnany (Name) 225 W. Washington, 6th Floor, Chicago, IL 60606 oo �'• (Address), I ( . gnature (s) ) Wendv W. Stuckev (Name (s)) Attorney -in -Fact (Title(s)) Corporate Seal Texas State of Incorporation $ 2.800-000.00 Liability Limit (For every co -surety, provide sign ature(s), corporate seal, and other information in the same manner as for Surety above.) SCHEDULE A BOND NO. SUR0017035 OP25-DSP01 $700,000.00 SHL 2901 FSL, 2798 FEL, S5, T13N, R9E, UM ASP NAD27 Zone 4 X = 516,483.50 Y = 6,036,254.06 Lat: 70.5182029 Long:-149.8651289 8HL 2901 FSL, 1798 FE,L S5, TIM, R9E, UM ASP NAD27 Zone 4 X = 516,483.50 Y = 6,036,254.06 Z = 6336' Let: 70.5102029 Long:-149.8652289 OP26-DSP02 $700,000.00 SHL 2909 FSL, 1784 FEL, SS, T13N, R9E, UM ASP NAD27 Zone 4 X - 516,497.66 Y = 6,036,262.58 Lat: 70.51025639 Long:149.86500422 SHL 2921 FSL, 2557 FEL, 532, T14N, R9E, UM ASP NAD27 Zone 4 X - 515,702.50 Y = 6,040,552 Z =6477' Lat: 70.52198307 Long:-249.87244472 SI-DSP01 $700,000.00 SHL 4589 FSL, 2054 FEL, 519, T14N, R9E, UM ASP NAD27 Zone 4 X = 510855 Y- 6053770 Let: 70.55821999 Long:-149.91096655 BHL 4589 FSL, 2054 FEL, 519, T14N, R9E, UM ASP NAD27 Zone 4 X = 510855 Y= 6053770 Z- 6611 Let: 70.55811999 Long:-149.91096655 SI-DSP02 $700,000.00 SHL 4589 FSL, 2054 FEL, 519, T14N, R9E, UM ASP NAD27 Zone 4 X = 510855 Y- 6053770 Lat: 70.55811999 Long:-149.91096655 BHL 100 FSL, 2724 FEL, 528, T14N, R9E, UN ASP NA027 Zone 4 X- 520181 Y- 6054560 Z= 6621 Let: 70.56028098 Long:-249.91648583 Argonaut Insurance Company A5 003768C 225 W. Washington, 6th Floor Chicago, IL 60606 POWER OF ATTORNEY KNl IW AL1. MEN BY THESE PRESENTS: That the Argonaut Insurance Company. a Corporation duly organized and existing under the laws of the State of Illinois and having its principal office in the County of Cook. Illinois does hereby nominate constitute and appoint: Ma aret Bubo Iv Michael.lI I mmd Wendy W Stuckcv, I unc'ivl r and I.fsa A Ward Their Inn: and lawful agent(s) and attomcy(s)-in-fact. each in their separate capacity if more than one is named above. W make, execute. seal and defile, fix and tan its behalf as surety, and w its act and deed any and all bonds, contracts, agreements of indemnity and other undertakings in suretyship provided. however. that the penal sum of any one such instrument executed hereunder shall not exceed the sum of FAIW10It''j@7 This Power of ARonny is granted and is signed and scaled under and by the authority M the following Resolution adopted by the Roard of Directors of Argonaut Insurance Company. "RFSOi VED. That the President Senior Vice President. Vice President, Assistant Vice President. Secretary. 'IYemracr and each of them hereby is authorized to execute powers of attorney. and such authority can be executed by use of facsimile signature. which may tx- attested or acknowledged by any officer or attorney, of the Company, qualifying the attorney or attorneys named in the given power of attorney, to execu,c in behalf of. and acknowledge as the act and deed of the Argonaut Insurance Company. all bond undertakings and cotracts of suretyship. and to affix the corporate seal thereto." IN WITNESS WI IEREOI , Argonaut hutaunce Company has caused its official seal to he hercuntn affixed and these presents to M signed by its duly authorized officer on the 15th day of September. 2011. Argonaut Insurance Company IYL` by: — Michael E. Arledge President STATF. OF TEXAS C'Ol INTY OF HARRIS SS: On this 15th day of September. 2011 A.U., Marc me. a Norm Public of the State of Texas, in and for We (,)only of I larris, duly commissioned and qualified came I IIE ABOVE OFFICER OF IIII( OSIPAN) to me personally known to be the individual and officer described in. and who executed the preceding instrument, and he acktiow•Icdged the execution of same, and Ming by me duly swum. deposed and said duo he is the officer of the said Company aforesaid. and that the seal affixed to the preceding instrument is the Corporate Seal of said Company, and the said Corporate Seal and his signature as officer wen: duly affixed and subscribed h+ the said instrument by the authority and direction of the said corporation. and that Resolution adopted by the Baud of Directors of said C'wupany. relerred to in the preceding instrument is now in form. IN TESTIMONY W I II RI (il 11110, Mrcunto set my hand, and affixed my Official Seal at the County of Harris, the day and year first above written. KNWEM M MR S sWE OF TM ISMINCOMEXP07-15-21111" 1-kC/1hLun4'y)-'(YL.uAn (Notary Publio L the undersigned Officer of the Argonaut Insurance C'umpany- Illinois Corporation, do hereby certify that the original POWER OF A I I ORNEY of which the foregoing is a full. true and correct copy is still in full form and effect and has mot been revoked - I N WI I NESS WHEREOF. I have hereunto set my hand, and affixed the Seal ot'said Company. on the 1 Ith day of June - _ _ _--=2 A� r htehua C. Bet2 Assistant Vice President 1HIS DMUMENT IS NOT VALID IINIXSS PRINTED ON SHADED BACKGROUND WITI1 BLUE SERIAL NUMBER IN THE UPPER RIGHT HAND CORNER. IF YOU HAVE QUESTIONS ON AUTHENTICITY OF THIS DOCUMENT CALL (210) 321 - W. Salazar, Grace (CED) From: Province Robert <Robert.Province@eni.com> Sent: Thursday, May 6, 2021 10:04 AM To: Roby, David S (CED); Davies, Stephen F (CED) Cc: Salazar, Grace (CED); Wright Lindsay Subject: Eni's bonding liability (Disposal wells: SD37-DSP1, OP26-DSP02 and ODSDWI-44) Attachments: 07312019154821-0001.pdf Dave, In accordance with 20 AAC 25.025(b)(3) Eni, by this email, hereby requests AOGCC adjust (decrease) Eni's bonding liability, by removing the three Class 1 wells (disposal wells) from Eni's total well count. Attached, for you review is a copy of Eni's evidence (Bonding Rider) identifying the subject 3 Class 1 wells (SD37-DSPI, OP26-DSP02 and ODSDWI-44) in favor/bonded by the EPA. Please contact me if you have any questions or need any additional information in this regard. Thank you, Robert A. Province Manager - Land & Public Relations eniEni US Operating Co Inc (907) 865-3350- Office (907) 947-3793 - Cell Email: robert.12rovince0eni com Message for the recipient only, if received in error, please notify the sender and read http://www.eni.com/disclaimer/ -or ARGO SURETY RIDER cep Docket OTH-21-016 To be attached to and form part of Bond No. SUR0017035 Wells covered under this bond: SD37-DSPI - S700,000.00, OP26-DSP02 - S700,000.00, DW-1, DW 2 (Lat. 70.495785. Long.-150,246721) - S700,000.00 Issued on behalf of ENI US OPERATING CO., INC. as Principal, and in favor of U.S. ENVIRONMENTAL PROTECTION AGENCY as Obligee dated lath day of July, 2008 It is agreed that: ❑ 1. The Surety hereby gives its consent to change the Name: from: to: ❑ 2. The Surety hereby gives its consent to change the Address: from: to: ® 3. The Surety hereby gives its consent to change the: Bond Liability from: Bond Liability $1,400,000.00 to: Bond Liability $2,100 000.00 4. This rider shall become effective as of August 1, 2019 PROVIDED, however, that the liability of the Surety under the attached bond as changed by this Rider shall not be cumulative. Signed, sealed and dated July 23, 2019 Argonaut Insurance Company By: i- k X kl.r � � 1 ) l_ Melissa L. Fortier , Attorney -in -Fact ENI S OPERATING CO., INC. By: Principal . Acknowledged & Accepted by: Date: , Obligee