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December 2004

Vol. 9, No. 50 Week of December 12, 2004

Corps issues decision on two Alpine satellites

Permits approved for CD-3 and CD-4, the Fiord and Nanuq discoveries, which will share a drilling rig between winter and summer seasons

Kristen Nelson

Petroleum News Editor-in-Chief

The U.S. Army Corps of Engineers issued a record of decision on two Alpine satellites Dec. 6, approving an application by ConocoPhillips Alaska to expand their existing facility in the Colville River Delta on Alaska’s North Slope.

The Corps was a cooperating agency in the record of decision for the Alpine satellite project signed Nov. 8 by the U.S. Bureau of Land Management, the lead agency on the project. The Alpine satellite project includes five satellite drilling pads, all of which will feed back into existing Alpine facilities for crude oil processing.

The Corps said ConocoPhillips Alaska divided their Alpine satellite development proposal into two parts near the end of the environmental impact statement process, and the permits approved by the Corps cover CD-3 and CD-4, the Alpine satellites at the Fiord and Nanuq discoveries on state leases within the Colville River unit.

The Corps said Alaska District Engineer Col. Timothy Gallagher approved the proposal “with modifications and stipulations to reduce and minimize expected impacts and protect the environment.”

ConocoPhillips Alaska proposed culvert batteries for two road crossings of a paleo-channel leading to CD-4. “As discussed in the EIS, the environmentally preferred alternative … containing bridges with open spans is an apparent practicable alternative to culvert batteries,” the Corps said. During break-up events, the paleo-channel “conveys flow to area lakes” and the flows “are important for lake recharge, fish migration and water quality.”

The Corps offered ConocoPhillips an alternative: the company can either install bridges with minimum 25-foot open spans “or hydraulically equivalent culvert batteries,” but if it chooses the culvert batteries, the Corps must approve the final design and would require monitoring. “Should monitoring demonstrate the culvert installation to be deficient, bridging or other hydraulic improvements would be required,” the Corps said.

ConocoPhillips has applications in for remaining satellites

ConocoPhillips Alaska spokeswoman Dawn Patience told Petroleum News Dec. 7 that the company is pleased the Corps of Engineers has completed work on the CD-3 and CD-4 permits; she said the company has an application in with the Corps for the remaining three Alpine satellites.

The Corps said in its decision that ConocoPhillips requested that it proceed with decisions on CD-3 and CD-4, while the company continued to address information requests the Corps has made for other portions of the Alpine satellites project.

Corps spokeswoman Pat Richardson said Nov. 7 that the Corps has an application from ConocoPhillips for the other three satellites, CD-5, CD-6 and CD-7. These satellites include a connecting road from the existing CD-2 that would require crossing the Nigliq Channel, as well as other streams and rivers.

She said ConocoPhillips “last indicated they would contact us about continuing work on these applications ‘after the first of the year.’”

CD-3, CD-4 will share a drilling rig

The Corps said CD-3 and CD-4 “are interdependent because they will share a single drill rig, drilling at CD-3 during winter and at CD-4 during summer.” ConocoPhillips revised spill plans for CD-3, eliminating a gangway and floating dock, and at CD-4, eliminating a boat ramp, and will use other spill strategies, so “no boat ramps or floating docks are included in this authorization,” the Corps said.

Revisions to ConocoPhillips’ application provided to the Corps in October deleted boat launching facilities, changed the CD-4 road design, provided for a shorter airstrip at CD-3 and changed location and type of armoring.

CD-3 is approximately five miles north of the Alpine central processing facility, and CD-4 is approximately five miles north of Nuiqsut and four miles south of the central processing facility. ConocoPhillips proposes to use the previously permitted Arctic Slope Regional Corp. gravel mine as the fill source for CD-3 and CD-4. The mine is on the east bank of the Colville River approximately six miles southeast of CD-4.

CD-3 would be accessed by air during summer months and by air and ice road during winter months. Up to 32 wells would be drilled from the CD-3 pad, with winter-only drilling requiring five to seven winter drilling seasons to complete the drilling program.

CD-4 would be accessed by road from the Alpine central processing facility. Up to 32 wells would be drilled at CD-4 in the summer, using the rig that drills wells at CD-3 during the winter.






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