STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage, Alaska 99501-3192
Re:   THE REQUEST OF UNOCAL  )                    Disposal Injection Order No. 1
         COMPANY to dispose of       )
         non-hazardous oil field           )
         wastes by underground         )                     Kenai Unit
         injection in well                    )                     Kenai Gas Field           
         KU WD-I, Kenai Gas            )
         Field
                                                                         February 18, 1987

IT APPEARING THAT:

1. Unocal Company (Unocal) requested on January 20, 1987 the Alaska Oil and Gas Conservation Commission to authorize the continued use of KU WD-1 as a disposal well in the Kenai Unit, Kenai Gas Field. Unocal will inject non-hazardous waste fluids generated by normal drilling and production operations.

2. Notice of an opportunity for a public hearing on March 11, 1987 was published in the Anchorage Daily News on January 30, 1987.

3. No protest or request for a public hearing was timely filed. Accordingly, the Commission will, in its discretion, issue an order without a public hearing.

FINDINGS:

1. Unocal, as operator of the Kenai Gas Field, currently is authorized by EPA permit AK-2DO217-E issued in conformance with the Safe Drinking Water Act as amended 42 USC 300f et seq to inject non-hazardous liquid wastes into well KU WD-1, Kenai Gas Field.

2. All aquifers below 1300 feet within the Kenai Gas Field Boundary, and one-quarter (1/4) mile beyond, are exempted under 40 CFR 47.102 (b) (l) (C) for Class II injection activities.

3. Permeable strata, that will accept injected fluids, are present below 2700 feet in well KU WD-1.

4. A series of confining strata are present above 2700 feet in well KU WD-1 that will prevent upward movement of the injected waste fluids into non-exempt aquifers,

5. The strata into which fluids are to be injected will accept fluids at injection pressures which are less than the fracture pressure of the injection strata and their confining formations,

6. To ensure that waste fluids are confined to injection strata, the mechanical integrity of KU WD-1 will be demonstrated periodically and monitored routinely for disclosure of possible abnormalities in operating conditions.

7. KU WD-l is constructed and and has been tested in conformance with the requirements of 20 AAC 25.412,

CONCLUSIONS:

The geologic sequence present at the well site and maintenance of the mechanical integrity of well KU WD-I will prevent movement of injected waste fluids into non-exempt aquifers.

NOW, THEREFORE, IT IS ORDERED THAT:

Non-hazardous oil field waste fluids may be injected in conformance with Alaska Administrative Code Title 20, Chapter 25, for the purpose of disposal into the Sterling formation below the measured depth of 2700 feet in well KU WD-I.

DONE at Anchorage, Alaska and dated February 18, 1987.

C. V. Chatterton, Chairman
Alaska Oil and Gas Conservation Commission

Lonnie C. Smith, Commissioner
Alaska Oil and Gas Conservation Commission

W. W. Barnwell, Commissioner
Alaska Oil and Gas Conservation Commission

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