Alaska Oil and Gas Conservation Commission report: September 2017

Eric Lidji

For Petroleum News

• On Sept. 11, the Alaska Oil and Gas Conservation Commission approved (Area Injection Order No. 28.005) a request from ConocoPhillips Alaska Inc. to continue water injections at the Colville River Unit CD4-291 well. The company reported a potential outer annulus x atmosphere pressure communication on April 28, 2017. Subsequent diagnostic evaluations including a passing non-state witnessed mechanical integrity test convinced the commission of the integrity of the well for the purposes of water injection.

• On Sept. 18, the AOGCC approved (Area Injection Order No. 4G.007) a request from BP Exploration (Alaska) Inc. to continue water-alternating-gas injections at the Prudhoe Bay Unit 16-14B well. The company reported a potential inner annulus repressurization in May 2017. Subsequent diagnostics and a passing non-state witnessed mechanical integrity test of the inner annulus convinced the commission of the integrity of the well.

• On Sept. 20, the AOGCC heard oral arguments in a request from NordAq Energy Inc. to reconsider fines and bonding connected with the Shadura and Tiger Eye wells (Docket Numbers: OTH-16-031 and OTH 16-032). As reported in the Sept. 24 issue of Petroleum News, representatives attending the hearing said that the company had plugged and abandoned Tiger Eye and was requesting flexibility for the Shadura well.

• On Sept. 21, the AOGCC approved (Area Injection Order No. 18D.001) a request from ConocoPhillips to continue water injections at the Colville River Unit CD2-73 well.

The company reported a potential outer annulus (OA) x atmosphere pressure communication on May 2, 2017. Subsequent diagnostic evaluations including a passing non-state witnessed mechanical integrity test of the inner annulus convinced the commission of the integrity of the well for the purposes of water injections.

• On Sept. 22, the AOGCC approved (Area Injection Order No. 28.006) a request from ConocoPhillips to continue water injections at the Colville River Unit CD4-214 well.

The company reported a potential tubing x inner annulus pressure communication on July 9, 2017, during miscible gas injection. The company did not observe the communication during a 30-day water-alternating-gas test. Subsequent diagnostics including a passing non-state witnessed mechanical integrity test of the inner annulus convinced the commission of the integrity of the well for water injections. The company again noticed the pressure communication after alternating to miscible gas injection, and switched back to water injections with the current approval of the commission.

• The AOGCC has scheduled a hearing for Oct. 9 to reconsider a recent decision (Other Order No. 125) regarding bonding requirements at six Nicolai Creek unit wells.

Aurora Exploration LLC requested the hearing and asked for expedited approval.

• The AOGCC has scheduled a meeting for Oct. 17 “to receive testimony and comments on the final calculation of the fiscal year 2018 regulatory cost charges that the AOGCC proposes to impose on operators,” under the terms of existing regulations.

• The AOGCC has tentatively scheduled a public hearing for Oct. 25 to consider an application from Hilcorp Alaska LLC (Docket: CO-17-016) to redefine the vertical boundaries of the Ninilchik Beluga/Tyonek Gas Pool under Conservation Order 701A.

The hearing will be held if the commission receives a request by Oct. 2.