IT APPEARING THAT:

1. Conoco Inc, by letter and documents dated September 3, 1991, requested the Alaska Oil and Gas Conservation Commission to approve the implementation of a waterflood project for the Kuparuk River Field, Milne Point Unit, Schrader Bluff Oil Pool.

2. Notice of the application was published in the Anchorage TImes and the Anchorage Daily News on September 21, 1991.

3. There were no protests to the application.

FINDINGS:

1. Implementation of a waterflood project for the Milne Point Unit, Schrader Bluff Oil Pool is required by rule 8 of Conservation Order 255.

2. The application for additional recovery pertaining to the Milne Point Unit waterflood project filed by Conoco Inc for the Schrader Bluf Oil Pool contains all of the necessary data required for enhanced recovery operations under 20 AAC 25.402.

3. Conoco estimates primary recovery from the Schrader Bluff Oil Pool to be twelve (12) percent of the original oil-in-place.

4. Conoco estimates primary plus secondary (waterflood) oil recovery from the Schrader Bluff Oil Pool to be twenty-one (21) percent of the original oil-in-place.

5. Nominal 10-acre spacing and the use of horizontal/high angle completions may be required for an effective waterflood project in the Schrader Bluff Oil Pool as provided for in Rules 2 and 3 of Conservation Order No. 255.

CONCLUSIONS

The planned Schrader Bluff Oil Pool waterflood project within the Milne Point Unit will result in the recovery of significantly more oil than primary production; correlative rights will be protected; and there will be no waste of hydrocarbons.

NOW, THEREFORE, IT IS ORDERED THAT the Schrader Bluff Oil Pool waterflood project of the Milne Point Unit is approved for the area described as follows:

UMIAT MERIDIAN

T13N	R9E	Sections 13, 14, 23 and 24.
T13N	R10E	All Sections
T13N	R11E	Sections 5, 6, 7, 8, 15, 16, 17, 18,
		19, 20, 21, 22, 29, 30, 31 and 32.

Rule 1 Administrative Action.

The Alaska Oil and Gas Conservation Commission may, by administrative action, make changes and approve operations that will enhance the efficiency of the Milne Point Schrader Bluff Oil Pool waterflood project.

Rule 2 Schrader Bluff Oil Pool Annual Reservoir Surveillance Report.

An annual Schrader Bluff Oil Pool surveillance report will be required by April 1 of each year. The report shall include but is not limited to the following:

1) Progress of enhanced recovery project(s) implementation and reservoir management summary.

2) Voidage balance by month of produced fluids (oil, water and gas) and injected fluids (gas, water, low molecular weight hydrocarbons, and any other injected substances).

3) Analysis of reservoir pressure surveys within the field.

4) Results and where appropriate, analysis of production logging surveys, tracer surveys and observation well surveys.

DONE at Anchorage, Alaska and dated December 30, 1991.

David W. Johnston, Chairman
Alaska Oil and Gas Conservation Commission

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

Russell A. Douglas, Commissioner
Alaska Oil and Gas Conservation Commission