On May 28, 2015 Freeport-McMoRan filed with DOGGR a written notice of intention to plug and abandon Fourth Ave Well #4.
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2 PA IDC Report #2 If the scope of this request had been broader and additional items evaluated the findings may have been different. Please receive and file this report. II. TIMELINE On January 14, 2015, Freeport-McMoRan Operations Manager, Gerry Cales, wrote to DOGGR requesting the termination of their La Cienega Field - Fourth Avenue water flood project (# ) and to rescind all injection permits at 4 th Avenue Drill Site. On May 5, 2015, DOGGR sent a letter to Freeport-McMoRan Agent, Ken Bork, confirming the approval to convert seven (7) idle injector wells into seven (7) idle production wells. On May 28, 2015 Freeport-McMoRan filed with DOGGR a written notice of intention to plug and abandon Fourth Ave Well #4. On June 1, 2015, DOGGR issued a Plug and Abandon Permit (P ) for Fourth Ave Well #4. On December 21, 2015, Freeport-McMoRan and their subcontractors began the plug and abandon operations on the Fourth Ave Well #4. The rig work was completed after 16 days on January 9, DOGGR issued an approval report on April 26, On December 24, 2015, DOGGR issued Freeport-McMoRan a Notice of Violation (NOV) for failure to notify DOGGR to inspect the Blow Out Preventor (BOP) on Fourth Avenue Well # 4 and for failure to have the inspection conducted prior to starting downhole operation as required by Public Resource Code 3236 regulations. Downhole operations occurred for three days without inspection or approval from DOGGR. III. PRODUCTION AND INJECTION DATA According to DOGGR injection data records, the seven (7) injection wells at the 4th Avenue Site in question had final recordable active injection rates on the following dates: Well Name Injection Rate* Last Injection Date Fourth Ave Well #1 271 BWPD September 2010 Fourth Ave Well #4 3 BWPD June 2009 Fourth Ave Well #5 15 BWPD October 2000
3 PA IDC Report #2 Fourth Ave Well # BWPD September 2010 Fourth Ave Well #13 81 BWPD September 2010 Fourth Ave Well #14 1,131 BWPD September 2010 Fourth Ave Well # BWPD September 2010 *Barrels of Water Per Day (BWPD) According to DOGGR production data records, the seven (7) converted wells at the 4th Avenue Site in question had final recordable production rates on the following dates: Well Name Oil Production Rate** Natural Gas Rate*** Last Production Date Fourth Ave Well #1 2 BOPD 1 Mcf/d March 2014 Fourth Ave Well #4 4 BOPD 3 Mcf/d December 1978 Fourth Ave Well #5 Fourth Ave Well #10 Fourth Ave Well #13 Fourth Ave Well #14 Fourth Ave Well #15 Zero History of Produced Oil Zero History of Produced Oil Zero History of Natural Gas Production Zero History of Natural Gas Production N/A N/A 23 BOPD 2 Mcf/d February 2006 Zero History of Produced Oil Zero History of Produced Oil *Barrels of Oil Per Day (BOPD) *Thousand Cubic Feet of Gas Per Day (Mcf/d) Zero History of Natural Gas Production Zero History of Natural Gas Production N/A N/A IV. DISCUSSION The operator of the 4 th Avenue Drill Site during the review period of this report was Freeport McMoRan. On January 14, 2015 Freeport-McMoRan converted seven (7) idle injection wells into seven (7) idle production wells. The converted wells are identified as the following: 1. Fourth Ave Well #1 (API # )
4 2. Fourth Ave Well #4 (API # ) PA IDC Report #2 3. Fourth Ave Well #5 (API # ) 4. Fourth Ave Well #10 (API # ) 5. Fourth Ave Well #13 (API # ) 6. Fourth Ave Well #14 (API # ) 7. Fourth Ave Well #15 (API # ) Six (6) of those seven (7) wells were not redrilled, deepened, or had their casing permanently altered since January 14, One (1) well was permanently plugged and abandoned which permanently altered it s casing. The DOGGR classification conversion of theses permitted idle injections into permitted idle production wells occurred in January This changed the operational function of the wells and the operator changed the wellhead equipment configuration at the surface. Production wells are classified as Class A wells and injection wells are classified as Class B. Class A wells fluids flow up from the oil reservoir to the surface, while Class B well inject pressurized fluid down from the surface into the reservoir. Since the wells were converted to production wells there has been no record of production of oil and natural gas. Monthly production information is required to be reported to DOGGR according to the Public Resource Code Sections 3227, , 3406, and regulations. The DOGGR definition of an idle well is based on California Code of Regulations (CCR) Section It defines an idle well as any well that has not produced oil or natural gas or has not been used for injection for six consecutive months of continuous operation during the last five or more years. An idle well does not include an active observation well, according to Public Resource Code (PRC) Section 3008 (d) regulations. Additionally, DOGGR defines a Long-term idle well as any well that has not produced oil or natural gas or has not been used for injection for six consecutive months of continuous operation during the last ten or more years. A long-term idle well does not include an active observation well, according to PRC Section 3008 (e) regulations. According to DOGGR Staff, Freeport McMoRan has a $2 million blanket surety bond in accordance with PRC 10 Section There were no annual idle well fees collected by the state, established escrow accounts, nor individual well bonds obtained due to this blanket bond. The LAMC Sections states the following about Non- Operational (Idle Wells): Any oil well for a continuous period of one year has not been in operation or has ceased to produce petroleum or natural gas. The six (6) remaining wells (Fourth Ave Well #1, #5, #10, #13, #14, & #15) all exceed this criteria as they have ceased to produce petroleum or natural gas for a continuous period of more than one year.
5 PA IDC Report #2 The LAMC Section (I) states: No person shall drill, deepen or maintain an oil well or convert an oil well from one class to the other and no permits shall be issued for that use, until a determination has been made by the Zoning Administrator or Area Planning Commission pursuant to the procedure prescribed in Subsection H of this section. The seven (7) original well conversions appear to be out of compliance with this section of the code, further investigation by the City (various departments) should be done to validate. Should you have any questions, please do not hesitate to contact me directly at (213) or via at Uduak.Ntuk@lacity.org. Attachments: 1. Freeport-McMoRan Letter to DOGGR (January 14, 2015) 2. DOGGR Letter to Freeport-McMoRan (January 14, 2015) 3. DOGGR Letter to Freeport-McMoRan (May 5, 2015) 4. Freeport-McMoRan Notice of Intent to Abandon Form (May 28, 2016) 5. DOGGR Abandonment Permit to Freeport-McMoRan (June 1, 2015) 6. DOGGR Notice of Violation to Freeport-McMoRan (December 24, 2015) 7. DOGGR Approved Abandonment Report (April 26, 2016) 8. 4 th Avenue Site Plot Plan Map 9. 4 th Avenue Site Subsurface Spider Map 10. Current Wellbore Diagrams cc: Deron Williams, CD 10 Chief of Staff Justin Wesson, CD10 Legislative Deputy Kevin James, Board of Public Works President Fernando Campos, Board of Public Works, Executive Officer Carlos De La Guerra, Office of the City Attorney Linn Wyatt, Department of Planning Lisa Webber, Department of Planning John Biezinz, Department of Building and Safety Frank Lara, Department of Building and Safety Yeghig Keshishian, Department of Planning
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17 RD1 CH RD A ST 14 RD RD A A RD A OH RD RD U OH RD 1RD A OH RD RD RD RD2 migrej th Ave CH RD CH RD OH OH ST OH OH 10 RD RD RD OH 7 RD2 ST OH 7 RD BA A' U-38 10OH U ACTIVE PRODUCER IDLE PRODUCER ACTIVE INJECTOR IDLE INJECTOR ACTIVE GAS INJECTOR NORMAL FAULT (SYMBOL ON HANGING WALL) REVERSE FAULT (TEETH ON HANGING WALL) PROSPECT NAME COUNTY, STATE 4 Th Avenue A Sand Structure ft IDLE GAS INJECTOR C.I.: 100 Date: 05/15/2014 Geology: R. Keogh Scale: 1 =200 File: RJK_4th_A1_Sand_Struct_new.gmp Location: California V SPCS NAD27 US-Feet
18 WELL NO.: X: Y: TH_AVE_1RD MECHANICAL CONDITION API NO.: /8" HOLE ELEVATION: 216' K.B. DATUM: 12.5' ABOVE G.L. 899' 1000 TOTAL DEPTH: 5300' TD JUNK: PLUGS: NONE NONE COMPLETION DATE: DRILLING: 10/24/2007 COMPLETION: 4/28/2008 7" 1700' (CBL 04/23/08) ZONE: CASING: PUENTE SANDS 899'; CMT RETURNS TO SURFACE 7", 23#, J-55, 5287'. CMT'D W/ 277 BBLS (772 SKS) (1560 CUFT); 1700' (CBL 04/23/08) 2000 CONDITION OF CASING: NO RECORD OF BAD PIPE. LINER: NONE CONDITION OF LINER: NO RECORD OF BAD PIPE PERFORATIONS: 7" PERF'D W/ 4 SPF, 1/2" EHD AT THE FOLLOWING INTERVALS: 4702'-4882' 4974'-5098' 9-7/8" HOLE 4000 SAND MARKERS: A1-2556' A3-2663' B ' C1-3617' PE ' D ' E ' 4702'-4882' 4974'-5098' ' 5300' T.D. PREPARED BY: SP (11/29/07) (4/28/08) (3/9/2011) PREPARED BY: DB (12/06/11), (5/5/14) L:\Engineering\Eng_Tech\FcadBakup\LAS_CIENGA\4TH_AVE_1RD.fcw (6000)
19 DOGGR Original Hole Report Fourth Avenue 4 Las Cienegas Field Modified by: ahamlin 1/12/2016 Operator: Freeport-McMoRan Oil & Gas LLC, API: Type: Producer Comp. Date: 3/6/1964 P&A Date: 1/9/2016 BFW: 400.0ft KB: ft Datum: 12.70ft TD: 5,079.00ftKB MD (ftkb) 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Directional - Original Hole, 1/22/ :51:40 PM 20 in; 40.0 ftkb Hole in 811' (cmt sqz'd) 11 3/4 in; ftkb Hole in 1505' (cmt sqz'd) 1509' WSO; 2,690.0 ftkb 2756' 7" slotted w/ 40M, (12-2-6) f/ 2769'- 3806' (selectively) Perf'd; 2, ,995.0 ftkb; 5-1/2" & 7" 5 1/2 in; 3,933.0 ftkb 4172' (sqz'd w/ 40 sks) 4392' (sqz'd w/ 64 sks) Perf'd; 4, ,647.0 ftkb 4557' (sqz'd w/ 152 sks) 7 in; 4,660.0 ftkb Vertical schematic (actual) Wellbore; 26 in; ftkb Cement; Conductor; ftkb Wellbore; 16 1/2 in; ftkb Cement; Surface; ftkb Cement; Production; ftkb Cement; Plug 2; ,039.0 ftkb Cement; Production; 1, ,509.0 ftkb Cement; Plug 2; 1, ,450.0 ftkb Cement Retainer; 6.28 in; 2, ,455.0 ftkb Cement; Plug; 2, ,538.0 ftkb Cement; Production; 2, ,756.0 ftkb Cement; Liner; 2, ,779.0 ftkb Wellbore; 9 5/8 in; ,079.0 ftkb Cement; Liner; 2, ,933.0 ftkb Cement; Plug; 2, ,933.0 ftkb Cement; Production; 2, ,995.0 ftkb Cement; Production; 4, ,660.0 ftkb Cement; Plug; 3, ,660.0 ftkb Cement; Plug; 4, ,660.0 ftkb Cement; Plug; 4, ,790.0 ftkb Wellbore; 5,079.0 ftkb Casing Strings Last Csg Csg Des OD (in) Wt/Len (lb/ft) Grade Top (ftkb) Set Depth (ftkb) Conductor Surface 11 3/ H Liner 5 1/ N-80 2, ,933.0 Production J ,660.0 Cement Records Conductor Cement Last Csg OD (in) Top (ftkb) Btm (ftkb) Top Meas Meth Com Pre-Set Surface Cement Last Csg OD (in) Top (ftkb) Btm (ftkb) Top Meas Meth Com 11 3/ Visual 620 sks (rtns to surface) Liner Cement Last Csg OD (in) Top (ftkb) Btm (ftkb) Top Meas Meth Com 5 1/2 2, ,779.0 Calculated Sqz'd f/ plug cement 5 1/2 2, ,933.0 Calculated 50 sks Plug Cement Last Csg OD (in) Top (ftkb) Btm (ftkb) Top Meas Meth Com 5 1/2 2, ,933.0 Calculated 182 cft Production Cement Last Csg OD (in) Top (ftkb) Btm (ftkb) Top Meas Meth Com Visual 404 cft (Top Job) 7 1, ,509.0 Calculated 12 sks (sqz'd 8 cft out hole in csg) 7 2, ,756.0 Calculated 150 sks 7 2, ,995.0 Calculated Sqz'd f/ plug cement 7 4, ,660.0 Calculated 210 sks sks + 64 sks + 40 sks Plug Cement Last Csg OD (in) Top (ftkb) Btm (ftkb) Top Meas Meth Com ,039.0 Visual 219 cft + 28 cft 7 1, ,450.0 Tagged 331 cft 7 2, ,538.0 Calculated 19 cft 7 3, ,660.0 Calculated 156 cft Plug Cement Last Csg OD (in) Top (ftkb) Btm (ftkb) Top Meas Meth Com 4, ,660.0 Tagged 4, ,790.0 Junk, Plugs & Other in Hole Top Btm Des (ftkb) (ftkb) OD (in) Com Cement Retainer 2,450 2, Fish Perforations 2 7/8 Bottom joint of tubing and bell collar left in hole below 2500' Last Csg OD (in) Type Top (ftkb) Btm (ftkb) Shot Dens (shots/ft) Nom Hole Dia (in) Phasing ( ) 5 1/2 Perf'd WSO Perf'd Zones and Sand Markers Comments Zone Name Geological Marker Zone Top MD (ftkb) A1 2,619.0 A3 2,772.0 B 3,020.0 C1 3,692.0 PE 4,241.0 D 4,415.0 E 4,561.0 Start Date Type Com 1/2/2016 Condition of Casing Parted ~2502'; Casing damaged f/ 2503' to 2509'. Milled outside of casing into open hole from 2500'-2544' (plugged with cement) 8/1/2007 Condition of Casing Holes in 811' & 1505'; Squeezed with cement
20 MECHANICAL CONDITION WELL NO.: FOURTH_AVE_5 API NO.: ' ELEVATION: RT DATUM: 12.67' K.B. 831' TOP UPPERMOST HC 885' (16-1/2" HOLE DRILLED TO 915') 905' 1000 TOTAL DEPTH: 4780' ; ETD 4750' JUNK: NONE PLUGS: NONE COMPLETION DATE: ' ZONE: CASING: /4", 42#, 905', (CMT TO SURFACE) 7", 26#, 4780', (SEE DIAGRAM FOR CMT DETAILS) 3647', 1713'. 3846',831'. 1908' 2000 CONDITION OF CASING: 7" 3126', 3133'. ABLE TO GET 2-7/8" TBG PAST BUT STIFFER TOOLS WOULD EXIT THE 3133' LINER: NONE CONDITION OF LINER: NONE. 3057' 3060' CASING 3126' & 3133' " 3109'-3533' (SELECTIVE) PERFORATIONS: 7" PERF'D W/ FOUR 1/2" 3109'-3137' 3307'-3326' 3423'-3479' 3504'-3533' 4101'-4155' 4165'-4245' 4256'-4338' 4423'-4448' 4630'-4697' 3647' 3846' 7" 4101'-4697'. (SELECTIVE) ', 4730' (SQZ'D) (9-7/8" HOLE DRILLED TO TD) CMT 4700'-4780' 4780' SAND MARKERS: A1-2399' A3-2494' B ' C1-3426' PE ' D ' E ' T.D. 4948' 5000 PREPARED BY: (SP 3/22/2011) REVISED BY: DB (4/9/14), (5/5/14) L:\Engineering\Eng_Tech\FcadBakup\LAS_CIENGA\4TH_AVE_15.fcw (6000)
21 MECHANICAL CONDITION CONDUCTOR 20" WELL NO.: X: Y: ELEVATION: DATUM: TOTAL DEPTH: 12.67' K.B. 4TH_AVE_10RD 216' R.T. 5020' - ORIGINAL; 4378' - CURRENT. API NO.: ' 7" 671' (15-1/2" HOLE DRILLED) 924' 1000 JUNK: PLUGS: NONE CEMENT 4378'. COMPLETION DATE: 8/13/1964 ZONE: CASING: PE 20" CONDUCTOR; 10-3/4", 40.5# 924' w/ 550 SKS, IN 15-1/2" HOLE; 7", 26#, J-55, 4419'; 671' 2740' w/ 435 SKS, 4394' w/ 275 SKS, IN 9-7/8" HOLE CONDITION OF CASING: RESTRICTIONS 52' BELOW TOP PERF'S; TIGHT 4236' LINER: NONE. CONDITION OF LINER: NONE. PERFORATIONS: 4056'; 4287'. 2740' 7" PERF'D 4-1/2" 4120'-4165', 4175'-4200', 4215'-4274', 4305'-4325', 4355'-4375' " PERF'D 2-1/2" 4174'-4183', 4192'-4202', 4216'-4236', 4250'-4270'. SAND MARKERS: A1-2405' A3-2541' B ' C1-3502' PE ' 7" 3769' 4056' 7" '. W.S.O. 4287' CMNT 4378' 4394' 4419' 4000 PREPARED BY: IY (01/30/07) SP (3/16/2011) REV: DB (12/16/11), (5/5/14) T.D ' L:\Engineering\Eng_Tech\FcadBakup\LAS_CIENGA\4TH_AVE_10_RD.fcw (5000)
22 MECHANICAL CONDITION WELL NO.: FOURTH_AVE_13 API NO.: ' X:? Y:? ELEVATION: 216' RT DATUM: 12' K.B. (15-1/2" HOLE DRILLED) 982' 1000 TOTAL DEPTH: 5282' ; ETD 4430' JUNK: NONE PLUGS: CMT 4430' COMPLETION DATE: 11/6/ ' ZONE: CASING: 10-3/4", 40#, 892', (CMT TO SURFACE) 7", 26#, 4903', (SEE DIAGRAM FOR CMT DETAILS) 3046', 1690',3560'. CONDITION OF CASING: NONE TOP UPPERMOST HC 2505' 2633' LINER: 5-1/2", 17#, 2633' ; 3030'. ( '-2730', 2972'-3025') 2-3/8" 4296' ; 4430'. 7" 2664'-3020' (SELECTIVE) 3030' DV 3046' 3000 CONDITION OF LINER: NONE. CASING 3345', 3354', 3364'. 3560' PERFORATIONS: 7" PERF'D W/ FOUR 1/2" 2664'-2683' 2710'-2726' 2980'-3020' 4359'-4425' 4439'-4478' ' 2-3/8" 4296' 4335' 2-3/8" LINER 4430' CMT 4430' 4335' 7" 4359'-4478'. (SELECTIVE) SAND MARKERS: A1-2665' A3-2815' B ' C1-3912' PE ' 4903' CMT 4875'-4903' (9-7/8" HOLE DRILLED TO TD) T.D. 5282' 5000 PREPARED BY: SP (3/21/2011) REV: DB (12/20/11), (5/6/14) L:\Engineering\Eng_Tech\FcadBakup\LAS_CIENGA\4TH_AVE_15.fcw (6000)
23 MECHANICAL CONDITION 40' WELL NO.: 4TH_AVE_14 RD5 API NO.: ' X: Y: ELEVATION: ' ABOVE MAT. (15-1/2" HOLE DRILLED) DATUM: 12.67' ABOVE MAT 895' TOTAL DEPTH: 4870'; ETD ' JUNK: TOP OF 4196; 2-3/8" ASL N-80, BKRS 7" "A-5" PKR 4200'; BKRS 7" "E" 4409'. 1186' PLUGS: 4743' COMPLETION DATE: ZONE: PE - E 3/22/1965 TOP UPPERMOST HC 1734' CASING: 10-3/4", 40.5# 895'; (CMT TO SURFACE) 7", 26#, J ' w/ 290 SKS, 3936' 3752' w/ 320 SKS, 2325' 2000 CONDITION OF CASING: LINER: NONE. CONDITION OF LINER: NONE. NONE 2325' PERFORATIONS: 7" PERF'D IN THE FOLLOWING INTERVALS: 4249'-4370', 4457'-4527', 4560'-4591', 4625'-4666', 4680'-4698' SAND MARKERS: A1-2559' 3752' 3936' 4000 TOP OF 4196' 7" 4249'-4698', (SELECTIVE). PREPARED BY: IY (01/29/07) SP (3/21/2011) REV: DB (01/05/12), (4/10/14) CMT 4743' 4790' 4870' L:\Engineering\Eng_Tech\FcadBakup\LAS_CIENGA\4TH_AVE_14.fcw (5000)
24 MECHANICAL CONDITION WELL NO.: FOURTH_AVE_15 API NO.: ' X: Y: ELEVATION: 216' R.T. DATUM: 12.2' K.B. (15-1/2" HOLE DRILLED) 918' 1000 TOTAL DEPTH: 5139' JUNK: FISH 3 JOINTS 2-3/8" 4568' & 7" 26" BAKER "FH" 4629'. PLUGS: 7", 26#, 4927'. COMPLETION DATE: 3/14/1965. ZONE: PE - E 2000 CASING: 10-3/4", 40.5#, H ', (CMT TO SURFACE) 7", 26#, J ', (SEE DIAGRAM FOR CMT DETAILS) 3970', 2254'. CONDITION OF CASING: (01/1991) RESTRICTIONS IN 3345'-3350', 3354'-3356', 3364'-3366'; COLLAPSED 4572'. 2232' TOP 2390' TOP UPPERMOST HC 2578' LINER: NONE. CONDITION OF LINER: NONE PERFORATIONS: 7" PERF'D ( 2-1/2" 4445'-4485', 4495'-4599', 4667'-4683', 4693'-4708', 4720'-4735', 4750'-4780', 4795'-4805', 4855'-4912'; 4445'-4485', 4495'-4560', 4668'-4678', 4692'-4708', 4720'-4733', 4760'-4770', 4865'-4890'. CASING 3345', 3354', 3364'. 3970' ' SAND MARKERS: A1-2417' A3-2556' B ' C1-3700' PE ' D ' E ' TOP OF 4568'. 7" 4445'-4912'. 7" PLUG 4927' 4970' T.D. 5139' 5000 PREPARED BY: IY (01/19/07) SP (3/21/2011) REVISED BY: DB (4/10/14), (5/6/14) L:\Engineering\Eng_Tech\FcadBakup\LAS_CIENGA\4TH_AVE_15.fcw (6000)
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