STATE OF ALASKA

DEPARTMENT OF NATURAL RESOURCES

DIVISION OF OIL AND GAS

Alaska Oil and Gas Conservation Committee

3001 Porcupine Drive

Anchorage, Alaska 99504

Re: The motion of the Alaska Oil ) Conservation Order No. 82
and Gas Conservation Committee to ) Kenai Field
hear testimony to establish pool ) Sterling Gas Pools 3, 4, 5.1, 5.2, 6
rules to govern the operation of ) Tyonek Gas Pool 1
the Kenai Gas Field. ) December 3, 1969
IT APPEARING THAT:

1. The Alaska Oil and Gas Conservation Committee moved to hear testimony by the operator to establish proper pool rules for the Kenai Field.

2. Notice of the hearing was published in the Anchorage Daily News on October 7, 1969.

3. A public hearing was held in the Ben Crawford Memorial Building, Anchorage, Alaska, on October 30, 1969. Testimony was presented in response to the motion, and affected and interested parties were heard. The hearing was continued until November 6, 1969, in order that additional testimony could be presented.

4. Notice of continuance of public hearing was published in the Anchorage Daily News November 4, 1969.

5. The public hearing was resumed in the Ben Crawford Memorial Building, Anchorage, Alaska, on November 6, 1969. Additional testimony was presented.

AND IT FURTHER APPEARING THAT:

1. Gas pools should be defined in this field.

2. To conform to currently accepted geological formation nomenclature published by the Alaska Geological Society, the pools designated in the testimony as various Upper Kenal Gas Fools and Middle Kenal Gas Pool should be named various Sterling Gas Pools and Tyonek Gas Pool respectively.

3. Existing 320-acre spacing should be continued in each pool, but exceptions must be granted for certain existing wells.

4. Testimony was insufficient to support a pool rule allowing any pay to the well bore to be less than 3,000 feet from any pay in the same pool in any other well capable of producing therefrom.

5. Continued production and water encroachment may necessitate more than one key well bottom hole pressure survey in a calendar year.

6. This conservation order should set forth all current pool rules for the Kenai Field.

NOW, THEREFORE, IT IS ORDERED that the area described as follows is affected by this order:

Seward Meridian
T4N, R11W, Section 3: Lot 4, SW 1/4 NW 1/4, W 1/2 SW 1/4
Sections 4, 5, 6, 7, and 8: All
Section 9: N 1/2, SW 1/4, W 1/2 SE 1/4
Section 16: N 1/2 NW 1/4, SW 1/4 NW 1/4, NW 1/4 SW 1/4
Sections 17 and 18: All
Section 19: Lot 1, NE 1/4 NW 1/4, NE 1/4
Section 20: N 1/2 NW 1/4, SW 1/4 NW 1/4
T4N, R12W, Section 1: All
Section 2: E 1/2 E 1/2
Section 11: E 1/2 NE 1/4
Section 12: All
Section 13: Lots 5 through 12, easterly 2.50 acres of Lots 13 through 16, E 1/2 NW 1/4 NE 1/4,
E 1/2 E 1/2, E 1/2 W 1/2 SE 1/4 NE 1/4, E 1/2 W 1/2 NW 1/4 SE 1/4,
E 1/2 SW 1/4 NE 1/4, E 1/2 NW 1/4 SE 1/4, All of W 1/2 NE 1/4, E 1/2 NW1/4 lying
westerly of coastline
T5N, R11W, Section 17: Lots 8 and 9, NW 1/4 SW 1/4, S 1/2 SW 1/4, All of Kenai River
lying within SW 1/4, SW 1/4 SE 1/4
Section 18: SE 1/4 SE 1/4
Section 19: Lots 2, 6 through 13, SE 1/4, E 1/2 E 1/2 SE 1/4 SW 1/4, NE 1/4, All
SE 1/4 NW 1/4, NE 1/4 SW 1/4, S 1/2 SW 1/4 lying westerly of coastline
Section 20: S 1/2, NW 1/4, SW 1/4 NE 1/4, NW 1/4 NE 1/4
Section 28: NW 1/4 NW1/4, S 1/2 NW 1/4, SW 1/4, W 1/2 SE 1/4, SE 1/4 SE 1/4
Sections 29 and 30: All
Section 31: Lots 3 through 10, E 1/2, All that portion lying
westerly of coastline
Section 32 and 33: All
Section 34: NW 1/4 NW 1/4, S 1/2 NW 1/4, SW 1/4, W 1/2 SE 1/4
T5N, R12W, Section 25: SE 1/4 NE 1/4, E 1/2 SE 1/4
Section 36: E 1/2
Rule 1. Definition of Pools.

(a) The Kenai Sterling Gas Pool 3 is defined as the accumulation of gas common to and which correlates with the accumulation found in the interval 4,175' to 4,374' in the KU 21-6 well.

(b) The Kenal Sterling Gas Pool 4 is defined as the accumulation of gas common to and which correlates with the accumulation found in the interval 4,412' to 4,558' in the Ku 21-6 well.

(c) The Kenai Sterling Gas Pool 5.1 is defined as the accumulation of gas common to and which correlates with the accumulation found in the interval 4,576' to 4,859' in the KU 21-6 well.

(d) The Kenai Sterling Gas Pool 5.2 is defined as the accumulation of gas common to and which correlates with the accumulation found in the interval 4,880' to 5,213' in the KU 21-6 well.

(e) The Kenai Sterling Gas Pool 6 is defined as the accumulation of gas common to and which correlates with the accumulation found in the interval 5,250' to 5,520' in the KU 21-6 well.

(f) The Kenai Tyonek Gas Pool 1 is defined as the accumulation of gas common to and which correlates with the accumulation found in the interval 9,155' to 9,890' in the KDU No. 1 well.

Rule 2. Well Spacing.

A drilling unit for each pool shall consist of any two adjacent governmental quarter sections within the same section. Not more than one completed well shall be allowed in any drilling unit. No pay open to the well bore will be less than 3,000' from the pay in the same pool in any other well capable of producing therefrom.

Rule 3. Casing and Cementing Requirements.

(a) Surface casing shall be landed at not less than 1,200' or more than 2,000' and cement shall be circulated to the surface.

(b) Production casing shall be landed through the completion zone and cement shall cover and extend to at least 500' above each potentially productive sand interval. The use of multi-stage cementing procedures shall be permitted. Alternatively a casing string shall he adequately cemented at an intermediate point and a liner landed through the completion zone. If a liner is run, the annular space behind the liner shall be filled with cement to at least 100' above the casing shoe or the top of the liner shall be squeezed with sufficient cement to provide at least 100' of cement between the liner and casing annulus. Cement must cover all potentially productive intervals behind the liner. Casing and well head equipment shall be hydrostatically tested to not less than 2,000 pounds per square inch pressure.

Rule 4. Computed Bottom Hole Pressure Surveys.

A key well bottom hole pressure survey shall be taken in each pool upon Committee request; however, such surveys shall not be required more often than twice in any calendar year. Bottom hole pressure may be computed from surface measurements taken with a dead weight tester provided, however, than an approved bottom hole measuring device shall be run when the accuracy of the computed bottom hole pressure is questionable. The time, length and kind of survey, number and location of wells, datum and other details will be determined by the operator subject to Committee approval.

IT IS FURTHER ORDERED THAT:

Conservation Order No. 30 is hereby revoked.

A spacing exception is granted for well KU 21-6 which well is completed in the Kenai Sterling Gas Pool 5.1 and 6 and in the same drilling unit as well KU 14-6 which is completed in Kenai Sterling Gas Pool 6.

Commingling of production from the Kenai Sterling Gas Pool 4 and the Kenai Sterling Gas Pool 5.1 in well KU 33-32 is allowed.

A spacing exception is granted to complete the well KU 2lX-32 in the same pool or pools as the well KU 33-32 at a distance of not less than 2,000' from the pay open to the KU 33-32 well bore in the same pool.

DONE at Anchorage, Alaska, and dated December 3, 1969.

Thomas R. Marshall, Jr., Executive Secretary
Alaska Oil and Gas Conservation Committee

Concurrence:

Homer L. Burrell, Chairman
Alaska Oil and Gas Conservation Committee

O. K. Gilbreth, Jr., Member
Alaska Oil and Gas Conservation Committee

Conservation Order Index