Attachment_01_-_Orphan_Wells_SOW.pdf

| 1

United States Department of the Interior

Bureau of Land Management

Horseshoe Bend Field Orphan Wells Statement of Work

Location: Green River District, Vernal Field Office

Uintah County, Utah

Address: U.S. Department of the Interior

Bureau of Land Management

Utah State Office

440 West 200 South, Suite 500

Salt Lake City, Utah 84145-0155

May 2021

| 2

TABLE OF CONTENTS

I. Summary of Work……………………………………………………………………………………………………………………….3

II. Background…………………………………………………………………………………………………………………………………3

A. Geology………………………………………………………………………………………………………………………………………4

B. Well location………………………………………………………………………………………………………………………………4

C. Wellbore…………………………………………………………………………………………………………………………………….6

D. Equipment to be Removed……………………………………………………………………………………………….………..6

III. Plugging Requirements………………………………………………………………………………………..…………………….6

IV. Plugging Procedures…………………………………………………………………………………………………………..……..6

A. Mclish 2……………………………………………………………………………………………………………………………..……...6

B. #3………………………………………………………………………………………………………………………………………..….…7

C. H2S Safety Hazards……………………………………………………………………………………………………………………..7

V. Reclamation………………………………………………………………………………………………………………………………..8

Appendix A: BLM Office Contacts……………………………………………………………………………………………………...9

Attachment 1: Current Well Bore Schematic – Mclish 2 ….…………………………………………………….………..10

Attachment 2: Plugged Well Bore Schematic – Mclish 2…………………………………………………………………..11

Attachment 3: Current Well Bore Schematic – #3………. …………………………………………………………………..12

Attachment 4: Plugged Well Bore Schematic – #3………. ……………………………..…………………………………..13

| 3

I . SUMMARY OF WORK:

Two wells in the Horseshoe Bend field, previously operated by Hot Rod Oil, have been placed into an orphan status with no identifiable responsible party. In accordance with the requirement of 43 CFR 3162.3-4 (a) (b) and per Section XII of the Bureau of Land Management Onshore Oil and Gas Order No.

1, III., XII., A., B., these wells must be plugged and abandoned (P&A), the locations cleaned up, and the surface reclaimed.

This report contains general lease information for each well, the geological formations, the location of the wells, wellbore design, a procedure to P&A each well, and reclamation plans for the wells.

Table 1 – Well Information:

LEASE #

US Well # WELL NAME STATUS STATE COUNTY SPUD DATE COMPLETION DATE

UTU015988 4304720243 #3 GSI UT UINTAH 6/19/1967 6/29/1967

UTU015988 4304715803 MCLISH 2 GSI UT UINTAH 8/31/1964 10/20/1964

Plugging and abandonment of these wells will be carried out according to industry standards and regulations designed to isolate and protect the targeted formation and other usable minerals and water zones listed in table 2 of this statement of work.

Hydrogen Sulfide Gas (H2S) is not known to be present in these wells. Should H2S be detected in concentrations over 100 ppm in the gas stream, operations will be shut down until a plan to safely proceed is developed and implemented.

I I . BACKGROUND:

The McLish 2 was drilled, cased and completed in October 1964. The well produced natural gas until

December 2012 when the well was shut in. The #3 well was drilled, cased and completed in June 1967.

The well produced natural gas until September 2003 when the well was shut in. These wells changed hands several times until operations were assumed by Hot Rod Oil in October 1994. Hot Rod Oil became insolvent in 2015 and the wells were subsequently classified as orphaned.

| 4

A. GEOLOGY:

Onshore Oil and Gas Order No. 2 Section III., G. states that “all formations bearing usable-quality water, oil, gas, or geothermal resources, and/or a prospectively valuable deposit of minerals shall be protected.”

Utah Geological Survey, Study 144 Plate 4, Base of Moderately Saline Ground-Water (BMSW) Resources of Uintah County, Utah published by Utah Geological Survey in 2012 lists the depth of ground water in Uintah county that will be protected. After evaluation it was determined that the BMSW is below a usable depth and thus will not be isolated with a dedicated plug at that depth. Plugs above that depth will isolate it. Table 2 below lists the formations that were penetrated by these two orphaned wells.

These formations will be isolated.

Table 2 – Formation tops, depths and target zones for each wellbore:

Geologic Formation Depths

Formation MCLISH 2 #3

Duchesne Surface Surface

Uinta 2924* 2924*

Green River 3436* NA

Target Producible Zones*

B. WELL LOCATION:

The orphaned wells, shown in Figure 1 below, are located in Uintah County, about 18 miles south of Vernal, Utah. The orphaned wells can be found on Google Map at the latitudes and longitudes listed in Table 4 below.

| 5

Figure 1 – Map of the orphaned Wells:

Figure 2 – Map from Vernal to location:

McLish 2

#3

| 6

Table 3 - Location of Wells:

US Well #

WELL

NAME STATUS ST COUNTY TWP RGE SEC QTR LATITUDE LONGITUDE

4304720243 #3 GSI UT UINTAH 7S 21E 1 SENE 40.243427 -109.49633

4304715803 MCLISH 2 GSI UT UINTAH 7S 21E 1 NESW 40.243427 -109.49633

C. WELLBORE:

See “current well bore schematic” for each well, attached below.

D. EQUIPMENT TO BE REMOVED:

There is a small amount of production equipment on each of these locations. The #3 well has a single separator and a few small items to remove. The Mclish 2 well has a small separator and a short pipeline to remove. Post plugging, the well heads will be hauled off as well. This will be done by the contractor as salvage.

I I I . PLUGGING REQUIREMENTS:

The wells will be plugged according to industry and regulatory standards, according to the plugging procedures below.

Contractor is responsible for acquiring a work string of tubing and handling tools to complete the work.

See “Plugged well bore schematic” for each well, attached below.

| 7

IV. PLUGGING PROCEDURES

A. MCLISH 2

1. MIRU plugging equipment, rig, wireline and cementing. Kill well if necessary.

2. ND wellhead. NU and test BOP.

3. Pick up work string and RIH to 3420’. Tag CIBP with tubing and spot 560’ (65 sx) cement on top.

WOC and tag. TOC must be above 2875’, if not, pump additional cement.

4. Pressure test casing to 500 psi.

5. POOH and LD tubing work string and rig up wireline. Perforate 5.5” csg at 268’.

6. Rig down wireline and RU cementing equipment. Establish circulation to surface with water by pumping down casing and up annulus.

7. Circulate cement to surface up 5.5” X 9.875” casing annulus.

8. Cut off well head 3 feet below ground level and make sure cement is to surface in casing and annulus. Install dry hole plate and GPS wellbore location and note on reports. Dry hole plate is to include the following:

a. Well Name

b. Lease Number

c. Location

9. Release plugging equipment and clean up location.

B. #3

1. MIRU plugging equipment, wireline, and cementing. Kill well if necessary.

2. RIH with Gauge ring to 2880’. RIH with CIBP and set at 2875’. Spot 50’ (4 sx) cement on top with a dump bailer.

3. Pressure test casing to 500 psi.

4. RIH and perforate 4.5” csg at 266’.

5. Rig down wireline and RU cementing equipment. Establish circulation to surface with water by pumping down casing and up annulus.

6. Circulate cement to surface up 4.5” X 8.875” casing annulus.

7. Cut off well head 3 feet below ground level and make sure cement is to surface in casing and annulus. Install dry hole plate and GPS wellbore location and note on reports. Dry hole plate is to include the following:

d. Well Name

e. Lease Number

f. Location

8. Release plugging equipment and clean up location.

| 8

C. H2S SAFETY HAZARDS:

MINIMUM REQUIREMENTS REQUIRED BY REGULATION: Onshore Order No.6 – H2S Operations

1. General

a. A specific H2S operations plan for plugging operation will not be required for approval prior to starting work, personal H2S monitors will be worn on location.

b. If H2S is encountered in excess of 100 ppm in the wellbore, the following measures shall be taken:

i. The Contractor shall immediately ensure control of the well, suspend plugging operations and obtain materials and safety equipment necessary to bring the operations into compliance with of applicable provisions of Onshore Order No. 6.

ii. The Contractor shall notify the Contracting Officer’s Representative (COR) of the event and the mitigating steps that have or are being taken as soon as possible.

iii. It is the Contractor’s responsibility to ensure that the safety plan is approved by the Contracting Officer (CO) and the contract amended, prior to the resumption of operations.

V. RECLAMATION

The well pads have filled in with native vegetation and the roads have filled in to two-tracks, therefore, all operations shall be done with high levels of caution to prevent disturbance of the surface that is more than what is necessary. Reclamation will require the removal of all equipment and trash. Roads will be reclaimed by dragging and roughening the surface to allow the native vegetation to grow in.

Natural washes and drainages that have been blocked will be recontoured to restore natural water flow. The road for the #3 well will need some seeding to assist with vegetation growth.

| 9

APPENDIX A: BLM OFFICE CONTACTS

BLM Vernal Field Office 170 South 500 East Vernal, UT 84078

(435) 781-4400

Roger Bankert Field Manager rbankert@blm.gov

(436) 781-3416

Jerry Kenczka Fluids and Mineral Assistance Field Manager jkenczka@blm.gov

(435) 781-4440

Ryan Angus Petroleum Engineer rangus@blm.gov

(435) 781-4486

Will Maercklein Petroleum Engineer wmaercklein@blm.gov

(435) 781-4475

Michael Lee Petroleum Engineer m65lee@blm.gov

(435) 781-4486

Tyler Cox Branch Chief Surface Use/Natural Resource Specialist tcox@blm.gov

(435) 781-4456

Johnny Bowen Branch Chief I&E jbowen@blm.gov

(435) 781-4412 mailto:rbankert@blm.gov mailto:jkenczka@blm.gov mailto:rangus@blm.gov mailto:wmaercklein@blm.gov mailto:m65lee@blm.gov mailto:tcox@blm.gov mailto:jbowen@blm.gov

| 10

FIELD: GL: 5124' KBE: 5140' Start Date: Finish Date:

WELL NAME: Mclish 2 TD: 6702' PBTD: 6702' Current Well Status: Shut in Gas well

Location: NESW Sec 1 T7S R21E Reason for Pull/Workover:

API#: 4304715803

Uintah County, Utah

Wellbore

Schematic Tubing Landing Detail:

Description Count Size Footage Depth

Surface Casing

Size: 9 5/8''

Weight: 32.3#

Grade:

Cemented

W/ 225 SXS

Set @ 218'

Hole size: 12 1/4"

0.00

0.00

EOT 0.00

Tubing Information

EXCLUDED PERFS OPEN PERFS Condition:

New: Used: Rerun:

Grade:

Weight (#/ft):

Sucker Rod Detail:

Size # Rods Rod Type

Rod Information

Condition:

New: USED RERUN

Grade:

Manufacture:

Uinta top at 2924'

Pump Information:

API Designation

3216' - 3220'

Pump SN#: Original Run Date:

RERUN NEW RUN

ESP Well Flowing Well

CIBP set @ 3420' Cable Size: "R" NIPPLE

GR top at 3436' Pump Intake @ ' PKR @

End of Pump @ ' EOT @

Wellhead Detail:

7 1/16" 2000#

7 1/16" 3000#

7 1/16" 5000#

Other:

Landed on: Hanger Bonnet

SUMMARY

6588' - 3592'

Production Casing

Size: 5 1/2''

Weight: 15.5#

Grade:

Cemented

W/ 391 SXS PBTD @ 5951'

Set @ 6717'

Hole size: 8" TD @ 6050'

Date: 05/04/2021

Attachment 1: Current Well Bore Schematic

| 11

FIELD: GL: 5124' KBE: 5140' Start Date: Finish Date:

WELL NAME: Mclish 2 TD: 6702' PBTD: 6702' Current Well Status: Shut in Gas well

Location: NESW Sec 1 T7S R21E Reason for Pull/Workover:

API#: 4304715803

Uintah County, Utah

Wellbore

Schematic Tubing Landing Detail:

Description Count Size Footage Depth

Surface Casing

Size: 9 5/8''

Weight: 32.3#

Grade:

Cemented

W/ 225 SXS

Set @ 218'

Hole size: 12 1/4"

0.00

0.00

EOT 0.00

Tubing Information

EXCLUDED PERFS OPEN PERFS Condition:

New: Used: Rerun:

Grade:

Weight (#/ft):

Sucker Rod Detail:

Size # Rods Rod Type

Rod Information

Condition:

New: USED RERUN

Grade:

Manufacture:

Uinta top at 2924'

Pump Information:

API Designation

3216' - 3220'

Pump SN#: Original Run Date:

RERUN NEW RUN

ESP Well Flowing Well

CIBP set @ 3420' Cable Size: "R" NIPPLE

GR top at 3436' Pump Intake @ ' PKR @

End of Pump @ ' EOT @

Wellhead Detail:

7 1/16" 2000#

7 1/16" 3000#

7 1/16" 5000#

Other:

Landed on: Hanger Bonnet

SUMMARY

Procedure:

1. MIRU plugging equipment, rig, wireline and cementing. Kill well if necessary.

2. ND well head and NU BOPE.

3. Pick up work string and RIH to 3420’. Tag CIBP with tubing and spot 560’ (65 sx) cement on top. WOC and tag. TOC must be above 2875’, if not, pump additional cement.

6588' - 3592' 4. Pressure test casing to 500 psi.

5. POOH and LD tubing work string and rig up wireline. Perforate 5.5” csg at 268’..

6. Rig down wireline and RU cementing equipment. Establish circulation to surface with water by pumping down casing and up annulus.

7. Circulate cement to surface up 5.5” X 9.875” casing annulus.

8. Cut off well head 3 feet below ground level and make sure cement is to surface in all casing strings and annuli. Install dry hole plate and GPS wellbore location and note on reports.

9. Release plugging equipment and clean up location.

Production Casing

Size: 5 1/2''

Weight: 15.5#

Grade:

Cemented

W/ 391 SXS PBTD @ 5951'

Set @ 6717'

Hole size: 8" TD @ 6050'

Attachment 2: Plugged Well Bore Schematic

| 12

FIELD: GL: 4829' KBE: 4839' Start Date: Finish Date:

WELL NAME: #3 TD: 3280' PBTD: 3270' Current Well Status: Shut in Gas Well

Location: SENE Sec 1 T7S R21E Reason for Pull/Workover:

API#: 4304720243

Uintah County, Utah

Wellbore

Schematic Tubing Landing Detail:

Description Count Size Footage Depth

Surface Casing

Size: 8 5/8''

Weight: 24#

Grade:

Cemented

W/ 160 SXS

Set @ 216'

Hole size: 12 1/4"

0.00

0.00

EOT 0.00

Tubing Information

EXCLUDED PERFS OPEN PERFS Condition:

New: Used: Rerun:

Grade:

Weight (#/ft):

Sucker Rod Detail:

Size # Rods Rod Type

TOC @ 2513'

Calc'd

Rod Information

Condition:

New: USED RERUN

Grade:

Manufacture:

Pump Information:

API Designation

Pump SN#: Original Run Date:

RERUN NEW RUN

ESP Well Flowing Well

Cable Size: "R" NIPPLE

Pump Intake @ ' PKR @

End of Pump @ ' EOT @

Wellhead Detail:

7 1/16" 2000#

7 1/16" 3000#

7 1/16" 5000#

Other:

Landed on: Hanger Bonnet

SUMMARY

2924' - 2929'

3125' - 3128'

Production Casing

Size: 4 1/2''

Weight: 9.5#

Grade:

Cemented

W/ 150 SXS PBTD @ 3270'

Set @ 3270'

Hole size: 7 7/8" TD @ 3270'

Attachment 3: Current Well Bore Schematic

| 13

FIELD: GL: 4829' KBE: 4839' Start Date: Finish Date:

WELL NAME: #3 TD: 3280' PBTD: 3270' Current Well Status: Shut in Gas Well

Location: SENE Sec 1 T7S R21E Reason for Pull/Workover:

API#: 4304720243

Uintah County, Utah

Wellbore

Schematic Tubing Landing Detail:

Description Count Size Footage Depth

Surface Casing

Size: 8 5/8''

Weight: 24#

Grade:

Cemented

W/ 160 SXS

Set @ 216' Fill up all casings with

Hole size: 12 1/4" cement to surface.

Perf @ 266'

0.00

0.00

EOT 0.00

Tubing Information

EXCLUDED PERFS OPEN PERFS Condition:

New: Used: Rerun:

Grade:

Weight (#/ft):

Sucker Rod Detail:

Size # Rods Rod Type

TOC @ 2513'

Calc'd

Rod Information

Condition:

New: USED RERUN

Grade:

Manufacture:

Pump Information:

API Designation

Pump SN#: Original Run Date:

RERUN NEW RUN

ESP Well Flowing Well

Cable Size: "R" NIPPLE

Pump Intake @ ' PKR @

End of Pump @ ' EOT @

Wellhead Detail:

7 1/16" 2000#

7 1/16" 3000#

7 1/16" 5000#

Other:

Landed on: Hanger Bonnet

SUMMARY

Procedure:

1. MIRU plugging equipment, wireline, and cementing. Kill well if necessary.

2. RIH with Gauge ring to 2880’. RIH with CIBP and set at 2875’. Spot 50’ (4 sx) cement on top with a dump bailer.

Dump Bail 35' cement 3. Pressure test casing to 500 psi.

Set CIBP @ 2875' 4. RIH and perforate 4.5” csg at 266’.

5. Rig down wireline and RU cementing equipment. Establish circulation to surface with water

2924' - 2929' by pumping down casing and up annulus.

3125' - 3128' 6. Circulate cement to surface up 4.5” X 8.875” casing annulus.

7. Cut off well head 3 feet below ground level and make sure cement is to surface in all casing strings and annuli. Install dry hole plate and GPS wellbore location and note on reports.

8. Release plugging equipment and clean up location.

Production Casing

Size: 4 1/2''

Weight: 9.5#

Grade:

Cemented

W/ 150 SXS PBTD @ 3270'

Set @ 3270'

Hole size: 7 7/8" TD @ 3270'

Attachment 4: Plugged Well Bore Schematic