THE APPLICATION OF CONOCOPHILLIPS ALASKA, INC. for Changes to Rule 3, Conservation Order 432B, which Affects Well Spacing within the Kuparuk River Oil Pool, Kuparuk River Unit, North Slope, Alaska
|Conservation Order No. 432C.000
Kuparuk River Field
November 2, 2004
IT APPEARING THAT:
1. By application dated August 24, 2004 and received by the Alaska Oil and Gas Conservation Commission (“Commission”) on August 25, 2004, ConocoPhillips Alaska, Inc. (“CPAI”) in its capacity as Unit Operator of the Kuparuk River Unit (“KRU”) requested an order from the Commission to remove the intra-pool well spacing requirements of Rule 3 of Conservation Order No. 432B applying to the Kuparuk River Oil Pool (“KROP”);
2. Notice of a public hearing was published in the Anchorage Daily News on August 30, 2004;
3. The Commission received no requests for public hearing;
4. The Commission received one favorable comment from BP Exploration (Alaska), Inc. (“BPXA”), operator of the Milne Point Unit, in favor of less restrictive spacing rules applying to the KROP;
5. The Commission also received one comment identifying corrections needed in CO 432B: the inadvertent omission of Sections 1, 2, 9, 10, 11, and 12 of T12N, R11E, Umiat Meridian (“UM”) and Sections 27 and 34 of T13N, R11E, UM from the affected area of CO 432B; and
6. Because CPAI provided sufficient information on which to make an informed decision, the Commission determined that it could issue an order without a hearing.
ConocoPhillips, Inc. (“CPA”) is the operator of the KROP within the Kuparuk River Unit. BP Exploration (Alaska), Inc. is the operator of the KROP within the Milne Point Unit.
2. Oil Pool
The Kuparuk River Oil Pool in the Kuparuk River Field is defined as the accumulation of oil that is common to and correlates with the accumulation found in the Atlantic Richfield Company West Sak River State No. 1 well between the depths of 6,474 and 6,880 feet.
3. Development Summary
Development drilling within the KROP began in 1978, and the field was brought on production in December of 1981. The pool is a mature development, with in excess of 1,500 development and service wells drilled to the pool. The operators are maximizing recovery by targeting smaller, un-drained portions of isolated fault blocks that cannot be reached by wells conforming to the governmental land grid.
4. Affected Area For The Kuparuk River Oil Pool Rules
5. Spacing Requirements for the KROP
6. Sustained Casing Pressure Requirements for the KROP
1. The omission of Sections 1, 2, 9, 10, 11, and 12 of T12N, R11E, UM and Sections 27 and 34 of T13N, R11E, UM from the affected area of CO 432B was a clerical error. It is appropriate to amend the affected area of CO432B to include these sections.
2. Less restrictive spacing requirements will help to maximize recovery from the faulted, compartmentalized KROP as development continues to mature, and reduce the administrative burden for the KROP Operators and the Commission.
3. A 500-foot setback from external property lines where ownership or landownership changes is necessary to protect correlative rights.
4. Revised spacing requirements for wells and well bore segments located more than 500 feet from external property lines where ownership or landownership changes will promote more efficient recovery of oil reserves and will not result in waste or jeopardize the correlative rights of adjoining or nearby owners.
5. It is appropriate to include the sustained casing pressure rules established by CO 494 within this order.
NOW, THEREFORE, IT IS ORDERED:
This Conservation Order supersedes CO 432B, dated December 12, 2002. The findings, conclusions and administrative record for CO 432B, CO 494, and CO 496 are adopted by reference and incorporated in this decision. In addition to statewide requirements under 20 AAC 25 (to the extent not superseded by these rules or other conservation orders), the following rules apply to the Kuparuk Oil Pool within the following affected area:
T9N, R6E, U.M.
T9N, R7E, U.M.
T9N, R8E U.M.
T9N, R9E, U.M.
T9N, R10E U.M.
T10N, R6E, U.M.
T10N, R7E, U.M.
T10N, R8E, U.M.
T10N, R9E, U.M.
T10N, R10E, U.M.
T10N, R11E, U.M.
T11N, R6E, U.M.
T11N, R7E, U.M.
T11N, R8E, U.M.
T11N, R9E, U.M.
T11N, R10E, U.M.
T11N, R11E U.M.
T12N, R7E, U.M.
T12N, R8E, U.M.
T12N R9E U.M.
T12N, R10E, U.M.
T12N, R11E, U.M.
T13N, R8E, U.M.
T13N, R9E, U.M.
T13N, R10E, U.M.
T13N, R11E, U.M.
T14N R9E U.M.
T14N, R10E U.M.
T15N, R9E U.M.
Rule 1. Name of Field (Ref. CO 173)
The name of the field shall be the Kuparuk River Field. (Source CO 173)
Rule 2. Definition of Pool (Ref. CO 173)
The name of the pool in the Kuparuk River Field shall be the Kuparuk River Oil Pool and is defined as the accumulation of oil that is common to and correlates with the accumulation found in the Atlantic Richfield Company West Sak River State No. 1 well between the depths of 6,474 and 6,880 feet. (Source CO 173)
Rule 3 Well Spacing (This order)
There shall be no restrictions as to well spacing except that no pay shall be opened in a well closer than 500 feet to an external property line where ownership or landownership changes.
Rule 4. Casing and Cementing Requirements (Ref. CO 173, 190, 193, 203, 209, and 229)
|AA No.||Drill Sites||Authorized Surface CasingDepth Pursuant toRule 4(c) CO 190|
|AA 190.1||1F||3350’ TVD|
|AA 190.4||2Z||3450’ TVD|
|AA 190.6||2K||3000’ TVD|
|AA 190.7||2K||3452’ TVD|
|AA 190.10||3G||3500’ TVD|
|AA 190.11||1A||3900’ TVD|
|AA 190.12||3R||4200’ TVD|
|AA 190.13||1H||4100’ TVD|
|AA 190.14||1H||4400’ TVD|
|AA 190.15||1Y||4400’ TVD|
|Conservation Order||Drill Sites||Authorized Surface Casing Depth Pursuant to CO 173 Rule 4(c) and 20 AAC 25.035(b)|
|CO 193||2A, 2B, 2D, 2F, 2G, 2H, 2V||3200’ TVD|
|CO 203||1L, 1Q, 1R, 2E, 2U, 2W, 3B, 3C||3800’ TVD|
|CO 209||1R, 2A, 2H, 2T, 3A, 3B, 3C, 3F, 3J, 3K, 3M, 3N, 3O, 3Q||4150’ TVD|
|CO 229||2M, 3H||3700’ TVD|
(A) 13 3/8 inch, 72 pounds/foot, L-80, Buttress;
(B) 13-3/8 inch, 72 pounds/foot, N-80, Buttress;
(C) 10-3/4 inch, 45.5 pounds/foot, K-55, Buttress;
(A) Full scale tensile and compressive tests,
(B) Finite element model studies; or,
(C) Other types of axial strain data acceptable to the Commission.
Rule 5. Automatic Shut-In Equipment (Ref. CO 173 & 348)
Rule 6. Safety Flares (Ref. CO 173) Repealed by 20 AAC 25.235.
Rule 7. Gas-Oil Ratio Tests (Ref. CO 173 & 262) Repealed by Conservation Order 262, dated October 23, 1990.
Rule 8. Pressure Surveys (Ref. CO 173, 230, 276 & 432)
Rule 9. Productivity Profiles (Ref. CO 173, 276 & 432)
Rule 10. Production Well Tests (Ref. CO 432A)
Rule 11 Sustained Casing Pressures (Ref. CO 494 and CO 496)
Rule 12 Administrative Actions (This Order)
Unless notice and public hearing is otherwise required, the Commission may administratively waive or amend any rule stated above as long as the change does not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in fluid movement outside of the confining zone.
DONE at Anchorage, Alaska and dated November 2, 2004.
John K. Norman, Chairman
Alaska Oil and Gas Conservation Commission
Daniel T. Seamount, Jr., Commissioner
Alaska Oil and Gas Conservation Commission