Alaska Oil and Gas Conservation Commisssion - Conservation Order No. 471.001

STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

333 West Seventh Avenue, Suite 100

Anchorage Alaska 99501

ADMINISTRATIVE APPROVAL NO. 207.17
ADMINISTRATIVE APPROVAL NO. 311B.01
ADMINISTRATIVE APPROVAL NO. 329A.01
ADMINISTRATIVE APPROVAL NO. 341D.01
ADMINISTRATIVE APPROVAL NO. 345.01
ADMINISTRATIVE APPROVAL NO. 452.01
ADMINISTRATIVE APPROVAL NO. 457A.01
ADMINISTRATIVE APPROVAL NO. 471.01
ADMINISTRATIVE APPROVAL NO. 484.01

George Blankenship
GPB Field Manager
BP Exploration (Alaska), Inc.
PO Box 196612
Anchorage, Alaska 99519

Dear Mr. Blankenship:

Conservation Order No. 492, dated June 26, 2003, amended the conservation orders adopting pool rules for all pools within the Prudhoe Bay field to add rules addressing sustained annulus pressures in devel-opment wells. Upon further review, the Commission has determined that paragraph 6 of these annulus pressure rules should be clarified.

Paragraph 6 provides that before a shut-in well is placed in service, any annulus pressure must be relieved to a suffi-cient degree that specified annulus pressures at operating temperature will not be reached or exceeded. However, paragraph 3 of the annulus pressure rules contemplates that there may be wells that can be safely operated with an annu-lus pressure in excess of a maximum specified in paragraph 6, and in such cases it would not be practicable or meaning-ful to relieve annulus pressure to the degree required under paragraph 3 when placing a shut-in well in service. In addi-tion, the Commission may approve different pressure limits for well start-up on a case-by-case basis under paragraphs 4 and 5.

Accordingly, Conservation Orders No. 207, 311B, 329A, 341D, 345, 452, 457A, 471, and 484 are amended to replace paragraph 6 of the annulus pressure rules adopted in Conservation Order No. 492 with the following revised paragraph 6:

6. Except as otherwise approved by the AOGCC under para-graph 4 or 5 of these rules, before a shut-in well is placed in service, any annulus pressure must be relieved to a suffi-cient degree (a) that the inner annulus pressure at operating temperature will be below 2500 psig for wells processed through the Lisburne Production Center and below 2000 psig for all other development wells, and (b) that the outer annulus pressure at operating temperature will be below 1000 psig. However, a well that is subject to paragraph 3, but not paragraph 5, of these rules may reach an annulus pressure at operating temperature that is described in the operator's notification to the AOGCC under paragraph 3, unless the AOGCC prescribes a different limit.

DATED at Anchorage, Alaska and dated July 29, 2003.

Sarah Palin
Chair

Daniel T. Seamount, Jr.
Commissioner

Randy Ruedrich
Commissioner

BY ORDER OF THE COMMISSION


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