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NEWS BULLETIN

May 27, 1998 --- Vol. 4, No. 28May 1998

GRI applies for subsurface water transfer at Houston

The Alaska Oil and Gas Conservation Commission said May 27 that GRI Inc. has applied for approval of subsurface transfer of water.

The company would pump fluids from coal seams into a deeper and more saline sandstone formation in the Houston gas field near Houston, the commission said. GRI told PNA earlier this month that it was in discussions with pump manufacturers and regulators on reversing a pump in the well and pumping produced water down the wellbore rather than bringing it to the surface

The company has also applied for an area injection order allowing the underground disposal of Class II wastes in the Houston gas field. Fluids to be injected would include water, mud slurries, ground cuttings and workover fluids produced during drilling, testing and workovers of wells within the field or from nearby exploratory or production wells.

Forcenergy orders platform for Redoubt Shoal

Forcenergy Inc. said May 27 that it has ordered a platform for its Redoubt Shoal exploratory drilling project in Cook Inlet. The company also said that applications were submitted to all appropriate government agencies during May for the drilling of up to four exploratory wells.

Hyundai Heavy Industries has been selected as the fabrication and transportation contractor for the Osprey platform and plans are to have the platform delivered to Cook Inlet in April 1999.

Forcenergy said it is in contract negotiations with a local firm to construct the platform living quarters in Alaska as part of the company’s “commitment to include as much local content as commercially feasible.”

Local based drilling contractors have been contacted to determine their interest in supplying the drilling equipment for the project.

Forcenergy said the estimate is $35-$40 million for platform fabrication, transportation, installation, living quarters and platform equipment.

Labor contract extended at Prudhoe

BP Exploration (Alaska) Inc. said May 27 the extension of its labor contract with the Oil, Chemical and Atomic Workers Local 1369. Extension of the labor contract was ratified by a vote of members completed Tuesday.

The current labor contract was to expire on Oct. 15. The new contract which addresses wages and a number of work rule changes extends to Nov. 15, 2001.

OCAW represents around 200 employees at Prudhoe Bay.

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