57
Northern District 801 K Street, MS 18-05 Sacramento, CA 95814 [email protected] T: (916) 322-1110 F: (916) 445-3319 conservation.ca.gov California Department of Conservation Edmund G. Brown Jr., Governor | David Bunn, Director COMPLIANCE LETTER December 13, 2018 Ms. Linda Y.H. Cheng, Agent [email protected] Pacific Gas and Electric Company 77 Beale Street, 24 th Floor, MC B24W San Francisco CA 94105 FIELD: McDonald Island Gas LEASES: Turner Cut, Whiskey Slough DATES OF INSPECTIONS: December 6 and 7, 2018. INSPECTORS: Andrew Lush Dear Ms. Cheng, Pursuant to the Division’s regulations for gas storage fields, Division field staff conducted inspections of some of the McDonald Island Gas wells on the above dates. Casing and tubing up-hole safety valves and down hole safety valves were tested. Details of the testing results are presented in the attached worksheet and summarized below. Turner Cut wells: Six wells tested 1. All valves on six wells functioned properly and passed the inspections to Division satisfaction. These wells are highlighted in green in the attached spreadsheet. Whiskey Slough wells: Twenty-six wells tested 1 All valves on 25 wells functioned properly and passed the inspections to Division satisfaction. These wells are highlighted in green in the attached spreadsheet. 2. On one well, Whiskey Slough 8E (API # 07720188) the tubing valve did not work properly and did not pass the inspection. This well is highlighted in red in the attached spreadsheet. Valves which fail the tests must be repaired/replaced and re-tested. 3. The downhole safety valves on two wells, Whiskey Slough 5-W (API # 07720211) and Whiskey Slough 9-W (API # 07720195), the pressure dropped rapidly to 200 and 500 psi, respectively, and then dropped very slowly over several minutes. These wells are highlighted in yellow in the attached spreadsheet. At best, this is an indication of a sticky valve which may fail in a shut-down situation. The Division recommends performing maintenance, repair, or replacement on these valves.

COMPLIANCE LETTER - California · 12/15/2005 · RU COGCO and ran CBL from BP to surface. Rigged-down COGCO. RIH with retrieving tool for Baker BP, engaged and released BP from 4967’

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Northern District 801 K Street, MS 18-05 Sacramento, CA 95814

[email protected] T: (916) 322-1110 F: (916) 445-3319

conservation.ca.gov

California Department of Conservation

Edmund G. Brown Jr., Governor | David Bunn, Director

COMPLIANCE LETTER

December 13, 2018 Ms. Linda Y.H. Cheng, Agent [email protected] Pacific Gas and Electric Company 77 Beale Street, 24th Floor, MC B24W San Francisco CA 94105 FIELD: McDonald Island Gas LEASES: Turner Cut, Whiskey Slough DATES OF INSPECTIONS: December 6 and 7, 2018. INSPECTORS: Andrew Lush Dear Ms. Cheng, Pursuant to the Division’s regulations for gas storage fields, Division field staff conducted inspections of some of the McDonald Island Gas wells on the above dates. Casing and tubing up-hole safety valves and down hole safety valves were tested. Details of the testing results are presented in the attached worksheet and summarized below.

Turner Cut wells: Six wells tested

1. All valves on six wells functioned properly and passed the inspections to Division satisfaction. These wells are highlighted in green in the attached spreadsheet.

Whiskey Slough wells: Twenty-six wells tested

1 All valves on 25 wells functioned properly and passed the inspections to Division satisfaction. These wells are highlighted in green in the attached spreadsheet.

2. On one well, Whiskey Slough 8E (API # 07720188) the tubing valve did not work properly and did not pass the inspection. This well is highlighted in red in the attached spreadsheet. Valves which fail the tests must be repaired/replaced and re-tested.

3. The downhole safety valves on two wells, Whiskey Slough 5-W (API # 07720211) and Whiskey Slough 9-W (API # 07720195), the pressure dropped rapidly to 200 and 500 psi, respectively, and then dropped very slowly over several minutes. These wells are highlighted in yellow in the attached spreadsheet. At best, this is an indication of a sticky valve which may fail in a shut-down situation. The Division recommends performing maintenance, repair, or replacement on these valves.

Pacific Gas and Electric Company December 13, 2018 Page 2

State of California Natural Resources Agency | Department of Conservation | DOGGR Northern District

Edmund G. Brown Jr., Governor | David Bunn, Director

conservation.ca.gov | T: (916) 323 9195 | F: (916) 445 6066

The California Code of Regulations, §1726.8(a) states that “Within 90 days of finding that a surface or subsurface safety valve is inoperable, the operator shall either repair or remove the safety valve or temporarily plug the well. A longer timeframe for addressing an inoperable surface or subsurface safety valve may be approved by the Division.” Please repair or replace the faulty safety valves or plug back and suspend the wells to avoid any enforcement action. If PG&E should require an extension to the 90-day timeline, then the request for the extension must be made in writing within 30 days of the date of this letter. Please call this office at 916-322-1110, at least 48 hours before performing re-tests of the safety valves so that Division personnel may witness the re-tests. Additionally, please email: [email protected] as soon as the remediation work is completed.

If you have any technical questions regarding this letter, please contact Associate Oil and Gas Engineer Kristopher Gustafson at 916-322-1110. The attached spreadsheet presents test results.

Sincerely,

cc: Larry Kennedy [email protected]

Attachments (2)

Charlene L. Wardlow Northern District Deputy

Attachment 1

Attachment 2

RESOURCES AGENCY OF CALIFORNIA DEPARTMENT OF CONSERVATION

DIVISION OF OIL, GAS, AND GEOTHERMAL RESOURCES

HISTORY OF OIL OR GAS WELL

OG103 (6/97/GSR/5M) SUBMIT IN DUPLICATE

Printed on recycled paper.

Operator PG&E Field McDonald Island Gas County San Joaquin

Well McDonald Island Farms 9 Sec. 25 T. 2N R. 4E S.B. B.&M.

A.P.I. No. 077-00084 Name Allan Lee,PE Title Sr.Reservoir Engineer

(Person submitting report) (President, Secretary, or Agent) Date 12-19-2016

(Month, day, year)

Signature

Address 6121 Bollinger Canyon Rd., San Ramon, CA 94583 Telephone Number 925.244.3251

History must be complete in all detail. Use this form to report all operations during drilling and testing of the well or during redrilling or altering the casing, plugging, or abandonment, with the dates thereof. Include such items as hole size, formation test details, amounts of cement used, top and bottom of plugs, perforation details, sidetracked junk, bailing tests, and initial production data.

10-10-2016 10-11-2016 10-12-2016 10-17-2016 10-18-2016

Held pre-job safety meeting (PJSM) with Cameron and PG&E. Attempted to install lubricator but unable lift it high enough. Service tubing hanger & lock-down screws. Held safety orientation with rig crew, discussed lock-out tag-out. Laid down plastic and unloaded miscellaneous equipment. MIRU Paul Graham Drilling Rig 8. Spotted rig, rig floor and mud pumps. Raised rig and secured guide lines. Held PJSM. Continued spotting equipment. Removed cap from top of tree. Installed lubricator. Two-way check valve would not go through flange on top of tree. Changed-out flange. Installed 2-7/8” 2-way check valve in hanger and pressure tested to 2000 psi for 10 minutes, good. Rigged-down lubricator and installed tree cap. Rigged-up containment around rig. Ran accumulator and electrical lines. Set-up choke manifold. Held PJSM and PSSR meeting with PG&E safety representative. Made changes on equipment as required to comply with PG&E safety standards. Welded on new pop-off lines to mud pump. Spotted frac tanks and portable lights. Held PJSM. Assist Patriot off-loading 300 bbls. 9.6 ppg NaCl polymer brine. Held SWPPP & RTW training as required by PG&E. Off-load Weatherford 9” BOPE and prepare to install. Pin mud pump pop-offs at 2500 psi. Spotted PPS separator and flare. Work on correcting PSSR action items. Held PJSM with GC and production personnel. Rigged-up PG&E piping from the well to choke manifold, to separator, to flare. Installed cement blocks to anchor lines. Held PJSM. Obtained flare & hot work permit from PG&E. Pressure tested from well to choke manifold and from manifold to separator to 2000 psi with rig pump. Held PJSM for change-over. Bled-off 50 psi casing pressure (no pressure on tubing). Reverse circulated 9.6 ppg NaCl polymer brine @ 3.6 BPM with 750 psi. Replaced 318 bbls. of gas cut/light brine from well with new brine from frac tank. Lost 38 bbls. of fluid while circulating. Observed well for 1 hour. No flow or pressure on tubing or casing. Cameron installed 2-7/8” 2-way check valve. PG&E removed well from clearance. ND production tree. NU 9” Class III 3M BOPE. Torqued bolts using Cameron. Installed rig floor. Installed 10’ 2-7/8” pup joint with FOSV. Secured well.

RESOURCES AGENCY OF CALIFORNIA DEPARTMENT OF CONSERVATION

DIVISION OF OIL, GAS, AND GEOTHERMAL RESOURCES

HISTORY OF OIL OR GAS WELL

OG103 (6/97/GSR/5M) SUBMIT IN DUPLICATE

Printed on recycled paper.

Date 10-19-2016 10-20-2016 10-21-2016 10-22-2016 10-24-2016 10-25-2016

Held PJSM with rig crew & GC. Removed brine from flow lines with vacuum truck. Rigged down test lines and cement anchor blocks. Function tested BOPE. Held PJSM with Cameron for BOPE testing. Attempted to test blind rams & pipe rams, slow leak. Called for replacement rams. Attempted to test annular BOP, flange leaking. Tightened and retested, negative. Call for shorter bolts to allow torque tool access. Replaced annular bolts and blind ram blocks. Retested to 2000 psi, flanges not leaking but leaking past tubing hanger. Tested 2-way check valve with pup jt., good. Decision made to pull and redress hanger. Secured well. Held PJSM. Rigged-up circulating line. Picked-up on tubing to expose hanger. Found seals cut. Cameron replaced seals. Re-landed tubing hanger. Held PJSM for BOPE testing. Tested blind rams, pipe rams and annular to 200 psi low, 2000 psi high for 10 minutes each. RU Cameron lubricator and pulled 2-way check valve from tubing hanger, no pressure. John Truschel of DOGGR at rig to inspect BOPE. Rig crew performed BOPE drill at 14:30. POOH with 2-7/8” tubing. RU 2-3/8” tools. Laid down 10 jts. 2-3/8” tubing. Picked-up 8-5/8” scraper, bumper-sub, 1jt. 2-7/8” tubing and Baker F-sub. RIH with 2-7/8” tubing to 3950’. Secured well. Held PJSM. Continued to RIH with tubing to 4877’. Reverse circ. bottoms-up. Dropped 1-1/4 ball. F-sub sheared prematurely at 2300 psi. POOH with tubing and laid down scraper. Made-up 8-5/8” retrievable BP with F-sub. RIH with tubing to 4967’. Set BP and released from tool. Closed pipe rams and tested casing from surface to BP to 500 psi for 15 minutes, good. Dropped 1.75” ball and tested tubing to 2000 psi for 10 minutes. Sheared-out tool at 2400 psi. POOH and laid down BP setting tool. Made-up Baker 8-5/8” full-bore packer and RIH and set packer at 2002’. Secured well. Held PJSM. RU Resource Cementing’s digital recording sub. Attempted to test casing, communication with tubing. Reset packer 2 times with same results. Circulated 20 bbls. down casing. Reset packer at 1967’ and tested casing for 60 minutes: start 2455 psi, finish 2462 psi. Bled-off pressure and unset packer. RIH to 4016’. Unable to set packer. Laid down 1 jt. tubing. Unable to set. Circulated 20 bbls. down casing. Set packer at 3985'. Tested casing annulus for 60 minutes: start 1548 psi, finish 1599 psi. Bled-off pressure. Tested down tubing against BP at 4967’ for 60 minutes: start 829 psi, finish 804 psi. Bled-off pressure. POOH and laid down packer. Secured well. Note: all pressure tests witnessed by DOGGR representative Kelly Morgan. Fluid density in well: 72 pcf (9.6 ppg). Held PJSM. Rigged-up Schlumberger logging unit and ran RST and USIT logs. RD Schlumberger. Secured well. Held PJSM. RU Baker logging unit. Ran gauge ring/junk basket to BP. Ran multi-arm caliper log piggy-backed with Scientific Gyro and POOH. Ran magnetic flux leakage log (HRVRT) and POOH. Rigged-down Baker. Secured well.

RESOURCES AGENCY OF CALIFORNIA DEPARTMENT OF CONSERVATION

DIVISION OF OIL, GAS, AND GEOTHERMAL RESOURCES

HISTORY OF OIL OR GAS WELL

OG103 (6/97/GSR/5M) SUBMIT IN DUPLICATE

Printed on recycled paper.

10-26-2016 10-27-2016

Held PJSM. RU COGCO and ran CBL from BP to surface. Rigged-down COGCO. RIH with retrieving tool for Baker BP, engaged and released BP from 4967’. Circulated well with 320 bbls. 9.6 ppg NaCl polymer completion fluid. RIH with completion string and landed tubing on hanger (see tubing detail below). Secured well.

Tubing Detail

Item Length Depth

KB 9.00 9.00

Tubing Hanger 0.80 9.80

157 jts 2-7/8", 6.5#, EUE 8rd, J-55 tbg. 4947.49 4957.29

2-7/8" x 2-3/8" x-over 0.34 4957.63

11 jts. 2-3/8", 4.7#, EUE 8rd, J-55 tbg. 347.91 5305.54

Baker F-Nipple 0.92 5306.46

Sawtooth Collar 0.40 5306.86

Held PJSM. Installed 2-way check valve in tubing hanger and tested to 2000 psi for 10 minutes, good. ND BOPE and NU production tree. Tested tree to 3000 psi for 20 minutes, good. Removed 2-way check valve. Released Rig.

NATURAL RESOURCES AGENCY OF CALIFORNIA DEPARTMENT OF CONSERVATION No. T 616-0047

DIVISION OF OIL, GAS & GEOTHERMAL RESOURCES Northern California District – Sacramento

801 K Street • MS 18-05 / Sacramento, CA 95814 (916) 322-1110 / [email protected] / Fax (916) 445-3319

REPORT ON OPERATIONS GAS STORAGE PROJECT McDonald Island Sand Ms Linda Y. H. Cheng Sacramento, California Pacific Gas & Electric Co. (P0300) November 09, 2016 77 Beale Street, 24th Flr., MC B24W San Francisco, CA 94105

Your operations at well “McDonald Island Farms” 9, A.P.I. No. 077-00084, Sec. 25, T. 02N, R. 04E, MD B.&M., McDonald Island Gas field, in San Joaquin County, were witnessed on 10/20/2016, by Jack Truschel, a representative of the supervisor. The operations were performed for the purpose of inspecting the blowout prevention equipment and installation. Casing record of well: 13-3/8" cem. 874'; 8-5/8" cem. 5190' WSO; 7" cem. 5064'-5232'; 4-1/2" ld. 4978'-5309', perf. 5225'-5308'. TD 5309'. DECISION: The blowout prevention equipment and its installation on the 8 5/8” casing are approved.

JPT/sh OG109 (Rev. 07/2016)

Charlene L Wardlow Charlene L. Wardlow Northern CA District Deputy

Kenneth A. Harris Jr. State Oil & Gas Supervisor

NATURAL RESOURCES AGENCY OF CALIFORNIA DEPARTMENT OF CONSERVATION No. T 616-0044 (1)

DIVISION OF OIL, GAS & GEOTHERMAL RESOURCES Northern California District – Sacramento

801 K Street • MS 18-05 / Sacramento, CA 95814 (916) 322-1110 / [email protected] / Fax (916) 445-3319

REPORT ON OPERATIONS GAS STORAGE PROJECT McDonald Island Sand Ms Linda Y. H. Cheng Sacramento, California Pacific Gas & Electric Co. (P0300) October 26, 2016 77 Beale Street, 24th Flr., MC B24W San Francisco, CA 94105

Your operations at well “McDonald Island Farms” 9, A.P.I. No. 077-00084, Sec. 25, T. 02N, R. 04E, MD B.&M., McDonald Island Gas field, in San Joaquin County, were witnessed on 10/22/2016, by Kelly Morgan, a representative of the supervisor. The operations were performed for the purpose of: .demonstrating the mechanical integrity of the 8 5/8”casing. Pressure increased over 60 minute period, most likely due to thermal expansion. Test ran in three intervals. This first interval tested: 0’ – 1968’. RESULTS: Good :

KM1/sh OG109 (Rev. 07/2016)

Charlene L Wardlow Charlene L. Wardlow Northern CA District Deputy

Kenneth A. Harris Jr. State Oil & Gas Supervisor

No. T STATE OF CALIFORNIA

DEPARTMENT OF CONSERVATION DIVISION OF OIL, GAS, AND GEOTHERMAL RESOURCES

CASING PRESSURE TEST/PFO

Operator: Well designation: Sec. , T. , R. , B.& M. API No.: Field: County: . Witnessed/Reviewed on: . , representative(s)

of the supervisor, was/were present from to . Also present was/were Casing record of well:

The operations were performed for the purpose of:

Pressure Test Casing

Packer/Bridge Plug at: Well Type: Casing Pressured With: Volume: Casing Pressure: Start Psi: Start Time: Casing Pressure: End Psi: End Time: Pressure Held: min. Total increase in Pressure: psi % Tests Results: Good No Good Remarks:

PFO

Casing or Tubing Pressure: Initial Pressure Drop: psi after sec./min.

Final Pressure: psi PFO Timeframe> Date: Time: To Date: Time:

Total Time:

Remarks:

OGD6A (1/07)

NATURAL RESOURCES AGENCY OF CALIFORNIA DEPARTMENT OF CONSERVATION No. T 616-0044 (2)

DIVISION OF OIL, GAS & GEOTHERMAL RESOURCES Northern California District – Sacramento

801 K Street • MS 18-05 / Sacramento, CA 95814 (916) 322-1110 / [email protected] / Fax (916) 445-3319

REPORT ON OPERATIONS GAS STORAGE PROJECT McDonald Island Sand Ms Linda Y. H. Cheng Sacramento, California Pacific Gas & Electric Co. (P0300) October 26, 2016 77 Beale Street, 24th Flr., MC B24W San Francisco, CA 94105

Your operations at well “McDonald Island Farms” 9, A.P.I. No. 077-00084, Sec. 25, T. 02N, R. 04E, MD B.&M., McDonald Island Gas field, in San Joaquin County, were witnessed on 10/22/2016, by Kelly Morgan, a representative of the supervisor. The operations were performed for the purpose of: .demonstrating the mechanical integrity of the 8 5/8”casing. Pressure increased over 60 minute period, most likely due to thermal expansion. Test ran in three intervals. This second interval pressure tested: 0’ – 3984’. RESULTS: Good

KM1/sh OG109 (Rev. 07/2016)

Charlene L Wardlow Charlene L. Wardlow Northern CA District Deputy

Kenneth A. Harris Jr. State Oil & Gas Supervisor

PG&E "McDonald Island Farms" 925 02N 04E MD 07700084 McDonald Is.

San Joaqin 10/2/2016 Kelly Morgan0800 1515

Loren (PG&E wellsite manager)

Demonstrating mechanical integrity of the 8 - 5/8" csg.

Pkr @ 3,984' GS71 pcf polymer

1547 1248 1599 1349

60 52 3.25X

Pressure increased over 60 min period, most likely due to thermal expansion.This is interval two of three, (pressure testing of entire 8 - 5/8" csg was broken into three intervals.) Presssure tested from 0' - 3,984'.

CalWIMS UIC DB

UIC Folder

psi

NATURAL RESOURCES AGENCY OF CALIFORNIA DEPARTMENT OF CONSERVATION No. T 616-0044 (3)

DIVISION OF OIL, GAS & GEOTHERMAL RESOURCES Northern California District – Sacramento

801 K Street • MS 18-05 / Sacramento, CA 95814 (916) 322-1110 / [email protected] / Fax (916) 445-3319

REPORT ON OPERATIONS GAS STORAGE PROJECT McDonald Island Sand Ms Linda Y. H. Cheng Sacramento, California Pacific Gas & Electric Co. (P0300) October 26, 2016 77 Beale Street, 24th Flr., MC B24W San Francisco, CA 94105

Your operations at well “McDonald Island Farms” 9, A.P.I. No. 077-00084, Sec. 25, T. 02N, R. 04E, MD B.&M., McDonald Island Gas field, in San Joaquin County, were witnessed on 10/22/2016, by Kelly Morgan, a representative of the supervisor. The operations were performed for the purpose of: .demonstrating the mechanical integrity of the 8 5/8”casing. Pressure increased over 60 minute period, most likely due to thermal expansion. Test ran in three intervals. This third interval pressure tested: 3984’ – 4967’. RESULTS: Good

KM1/sh OG109 (Rev. 07/2016)

Charlene L Wardlow Charlene L. Wardlow Northern CA District Deputy

Kenneth A. Harris Jr. State Oil & Gas Supervisor

PG&E "McDonald Island Farms" 925 02N 04E MD 07700084 McDonald Is.San Joaquin 10-22-16 Kelly Morgan

0800 1515Loren (PG&E wellsite manager)

Demonstrating mechanical integrity of the 8 - 5/8" csg.

Pkr @ 3,984' BP@ 4967' GS71 pcf polymer

829 1408 804 1508

60 25 3X

This was interval three of three for the pressure testing of the entire 8 - 5/8" csg. The interval tested was from 3,984 - 4967'.

CalWIMS UIC DB

UIC Folder

psi

State of California • Natural Resources Agency Edmund G. Brown Jr., Governor Department of Conservation Division of Oil, Gas, and Geothermal Resources Northern California District – Sacramento 801 K Street • MS 18-05 Sacramento, CA 95814

(916) 322-1110 • FAX (916) 445-3319

PERMIT TO CONDUCT WELL OPERATIONS

Gas Storage

McDonald Island Sand

Old New 452 452

FIELD CODE 00 00

AREA CODE

00 00 POOL CODE

No. P 616-0087

Sacramento, California

September 02, 2016 Ms Linda Y. H. Cheng, Agent Pacific Gas & Electric Co. (P0300) 77 Beale Street, 24th Flr., MC B24W San Francisco, CA 94105 Your proposal to Rework well "McDonald Island Farms" 9, A.P.I. No. 077-00084, Section 25, T. 02N, R. 04E, MD B. & M., McDonald Island Gas field, -- area, -- pool, San Joaquin County, dated 8/20/2016, received 8/22/2016 has been examined in conjunction with records filed in this office. (Lat: 37.993536 Long: -121.482804 Datum: NAD 83) THE PROPOSAL IS APPROVED PROVIDED: 1. Blowout prevention equipment, as defined by this Division’s publication No. M07, shall be installed and

maintained in operating condition and meet the following minimum requirements: a. Class III 3M on the 8 5/8” casing.

2. Hole fluid of a quality and in sufficient quantity to control all subsurface conditions in order to prevent blowouts shall be used.

3. Blowout prevention practice drills are conducted at least weekly and recorded on the tour sheet. A practice drill may be required at the time of the test/inspection.

4. A Reservoir Saturation Tool is used to locate and evaluate gas migration behind pipe. 5. An Ultrasonic Log, Magnetic Flux (HR Vertilog), Cement Bond Log, and a Multi-Arm Caliper Inspection

shall be performed to demonstrate that the 8 5/8” casing has integrity. 6. Prior to commencing injection, a one hour digitally recorded pressure test to 115% of Maximum Allowable

Blanket Bond UIC Project No. 45200001 Kenneth A. Harris Jr., State Oil and Gas Supervisor Engineer Jack Truschel Office (916) 322-1110 JPT/sh

A copy of this permit and the proposal must be posted at the well site prior to commencing operations. Records for work done under this permit are due within 60 days after the work has been completed or the operations have been suspended. Issuance of this permit does not affect the Operator's responsibility to comply with other applicable state, federal, and local laws, regulations, and ordinances. OG111 (revised 6/2016)

Charlene L Wardlow Charlene L. Wardlow Northern District Deputy

Page 2 Well #: "McDonald Island Farms" 9 API #: 077-00084 Permit: P 616-0087 Date: September 02, 2016

Operating Pressure (MAOP) is conducted to demonstrate the mechanical integrity of the 8 5/8” casing. A passing pressure test is a pressure loss not exceeding 10% for any 30 minute period during the hour long test.

7. This office shall be contacted by phone prior to making any program changes and no program changes are made without Division approval.

8. THIS DIVISION SHALL BE NOTIFIED TO: a. Inspect the installed blowout prevention equipment prior to commencing downhole operations. b. Witness a pressure test of the 8 5/8" casing prior to commencing injection.

NOTE: 1. The base of the freshwater zone is < 100’±. 2. No operation shall be undertaken or continued that will contaminate or otherwise damage the environment. 3. Any well that fails any of the testing must be taken out of service and isolated from the storage reservoir pursuant

to the Safety Review Testing Regime. 4. The required History of Oil or Gas Well (OG103) shall include a complete description of the required pressure

testing. An updated casing and tubing diagram shall be included with the well history. A Well History (Form OG 103) shall be submitted to the Division within 60 days after the well is reworked, or if the work is suspended. Any additional well work will require an additional notice to be submitted to this office prior to resuming well operations.

INFORMATION FOR COMPLIANCE WITH THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT OF 1970 (CEQA) If an environmental document has been prepared by the lead agency, submit a copy of the Notice of Determination or Notice of Exemption with this notice. Please note that a CEQA determination by a local jurisdiction, if required, must be complete, or the Division may not issue a permit.

CRITICAL WELL DEFINITION

As defined in the California Code of Regulations, Title 14, Section 1720 (a), “Critical well” means a well within:

(1) 300 feet of the following: (A) Any building intended for human occupancy that is not necessary to the operation of the well; or (B) Any airport runway.

(2) 100 feet of the following: (A) Any dedicated public street, highway or the nearest rail of an operating railway that is in general use; (B) Any navigable body of water or watercourse perennially covered by water; (C) Any public recreational facility such as a golf course, amusement park, picnic ground, campground or any

other area of periodic high-density population; or (D) Any officially recognized wildlife preserve.

WELL OPERATIONS REQUIRING BONDING

1. Drilling, redrilling, or deepening any well. 2. Milling out or removing a casing or liner. 3. Running and cementing casing or tubing. 4. Running and cementing liners and inner liners. 5. Perforating casing in a previously unperforated interval for production, injection, testing, observation, or cementing

purposes. 6. Drilling out any type of permanent plug. 7. Reentering an abandoned well having no bond.

This form may be printed from the DOGGR website at www.conservation.ca.gov/dog/

8/16/2016

McDonald Island

McDonald Island Farms 9

API No. 077-00084

Objectives:

Pressure test and log casing per McDonald Island Natural Gas Storage Facility Well Monitoring and Integrity Assessment Plan Revision 1, dated July 5, 2016.

Log well to identify the presence of behind-pipe gas accumulation.

Current Condition:

Well killed with 72 PCF viscosified NaCl brine on 7/28/2016.

2-7/8” x 2-3/8” completion string installed (see attached Wellbore Mechanical Diagram)

Basic Procedure:

1. Prepare location for workover rig.

2. MIRU Workover Rig.

a. MIRU workover rig.

b. Circulate as required to ensure well is dead.

c. Set back pressure valve in tubing hanger. Remove production tree.

d. Install Class III 3M BOPE. Pressure test to 200-300 psi and 2000 psi.

3. Pull 2-7/8” x 2-3/8” completion string.

4. Run 8-5/8” scraper to top of liner at 4977’.

5. Run 8-5/8” retrievable BP and set at 4967’ (10’ above liner).

6. RIH with 8-5/8” test packer and pressure test well according to attached Pressure Test

Schedule.

7. MIRU wireline logging units as required to run the following logs:

a. Schlumberger RST.

b. Ultrasonic Log.

c. CBL.

d. Baker-Hughes High Resolution Vertilog.

e. Multi-arm Caliper Log.

8. RIH and retrieve BP.

9. Run back in well with completion string as before. Circulate & condition kill weight fluid.

10. RDMO workover rig.

a. Set BPV. Remove BOPE.

b. Install tree and pressure test.

c. Release rig.

Pressure Test Schedule OD Weight Grade MYS

Casing: 8.625 36 J-55 55000

Operating Pressure (MAOP) 2086 psi 4967 md API Barlow Burst Rating (nominal): 4460 psi

Workover Fluid Density 72 pcf 5120 tvd

Gas

Grad.

Liquid

Grad.

Test

Interval: 1 2 3 4 5 6 7 8

0.053 0.50 Top: 0 0 0 4000

psi/ft psi/ft Bottom: 4967 2000 4000 4967Surface Test

Pressure: 500 2400 1500 700

MD Gas Liquid

0 2086 0 500 2400 1500 0 0 0 0 2400 115% 54% 4460

100 2091 50 550 2450 1550 2450 117% 55% 4460

200 2097 100 600 2500 1600 2500 119% 56% 4460

300 2102 150 650 2550 1650 2550 121% 57% 4460

400 2107 200 700 2600 1700 2600 123% 58% 4460

500 2113 250 750 2650 1750 2650 125% 59% 4460

600 2118 300 800 2700 1800 2700 127% 61% 4460

700 2123 349 849 2749 1849 2749 129% 62% 4460

800 2129 399 899 2799 1899 2799 131% 63% 4460

900 2134 449 949 2849 1949 2849 133% 64% 4460

1000 2139 499 999 2899 1999 2899 135% 65% 4460

1100 2145 551 1051 2951 2051 2951 137% 66% 4460

1200 2150 603 1103 3003 2103 3003 139% 67% 4460

1300 2156 655 1155 3055 2155 3055 141% 68% 4460

1400 2161 707 1207 3107 2207 3107 143% 70% 4460

1500 2167 758 1258 3158 2258 3158 145% 71% 4460

1600 2173 810 1310 3210 2310 3210 147% 72% 4460

1700 2178 862 1362 3262 2362 3262 149% 73% 4460

1800 2184 914 1414 3314 2414 3314 151% 74% 4460

1900 2189 966 1466 3366 2466 3366 153% 75% 4460

2000 2195 1018 1518 3418 2518 3418 155% 77% 4460

2100 2200 1069 1569 2569 2569 116% 58% 4460

2200 2206 1121 1621 2621 2621 118% 59% 4460

2300 2211 1173 1673 2673 2673 120% 60% 4460

2400 2217 1225 1725 2725 2725 122% 61% 4460

2500 2222 1277 1777 2777 2777 124% 62% 4460

2600 2228 1329 1829 2829 2829 126% 63% 4460

2700 2233 1381 1881 2881 2881 128% 65% 4460

2800 2239 1432 1932 2932 2932 130% 66% 4460

2900 2244 1484 1984 2984 2984 132% 67% 4460

3000 2250 1536 2036 3036 3036 134% 68% 4460

3100 2256 1588 2088 3088 3088 136% 69% 4460

3200 2261 1640 2140 3140 3140 138% 70% 4460

3300 2267 1692 2192 3192 3192 140% 72% 4460

3400 2272 1743 2243 3243 3243 142% 73% 4460

3500 2278 1795 2295 3295 3295 144% 74% 4460

3600 2283 1847 2347 3347 3347 146% 75% 4460

3700 2289 1899 2399 3399 3399 148% 76% 4460

3800 2294 1951 2451 3451 3451 150% 77% 4460

3900 2300 2003 2503 3503 3503 152% 79% 4460

4000 2305 2055 2555 3555 2755 3555 154% 80% 4460

4100 2311 2106 2606 2806 2806 121% 63% 4460

4200 2316 2158 2658 2858 2858 123% 64% 4460

4300 2322 2210 2710 2910 2910 125% 65% 4460

4400 2327 2262 2762 2962 2962 127% 66% 4460

4500 2333 2314 2814 3014 3014 129% 68% 4460

4600 2339 2366 2866 3066 3066 131% 69% 4460

4700 2344 2417 2917 3117 3117 132% 70% 4460

4800 2350 2469 2969 3169 3169 134% 71% 4460

4967 2359 2556 3056 3256 3256 138% 73% 4460

2086 0 500 2400 1500 0 0 0 0 0 0% 0% 4460

2086 0 500 2400 1500 0 0 0 0 0 0% 0% 4460

2086 0 500 2400 1500 0 0 0 0 0 0% 0% 4460

2086 0 500 2400 1500 0 0 0 0 0 0% 0% 4460

2086 0 500 2400 1500 0 0 0 0 0 0% 0% 4460

2086 0 500 2400 1500 0 0 0 0 0 0% 0% 4460

2086 0 500 2400 1500 0 0 0 0 0 0% 0% 4460

2086 0 500 2400 1500 0 0 0 0 0 0% 0% 4460

2086 0 500 2400 1500 0 0 0 0 0 0% 0% 4460

2086 0 500 2400 1500 0 0 0 0 0 0% 0% 4460

4967 2359 2556 3056 3256 3256 138% 73% 4460

PlannedMIF-9

Internal Casing Pressure during Pressure Test

Internal

Hydrostatic

Pressure

Deepest Test Depth:

Depth

Max.

Internal

Test

Pressure

% of

Storage

Operating

Pressure

Barlow

Rating used

in

calculation

Max. Int.

Presssure -

% of

Barlow

Rating

MIF9 Planned Pressure Testing 2016-08-16, PressureTest Schedule Printed 8/18/2016

REVISION DATE: 11-7-14 REASON FOR REVISION: Updated Wellbore Schematic to new form.

1 joint 4-1/2", 11.6#, Perforated Casing w/.012 ga. Wirewrap Screen (10.6' Blank on top)

1 joint 4-1/2", 11.6#, Perforated Casing w/.012 ga. Wirewrap Screen

4.500'' 4.000'' 39.77' 5228.71'

27.55'

5309' (5309' T.V.D.)

5321'

5307.85' 5309.00'

5268.48'

5268.48' 5307.85'

4977'Top of 4-1/2", 11.6#

Production Liner with Baker Liner Hanger

5064'

5190' (5190' T.V.D.)(4) 1/2" WSO Holes

Top Bottom4-1/2" PRODUCTION LINER DETAIL O.D. Length

.92'31.84'

.40'

Baker 2-3/8" "F" Nipple

5306.86'5306.46'

55'20" Conductor Pipe,

Cemented

Top BottomK.B. to Tubing Hanger 9.00' - -Tubing Hanger .80' 9.00' 9.80'

Unspecified

2-7/8" Box X 2-3/8" Pin X-Over10 joints 2-3/8", 4.7#, J-55, 8rd. EUE Tubing

1 joint 2-3/8", 4.7#, J-55, 8rd. EUE Tubing2-3/8" Sawtoothed Collar on bottom

4947.49' 4957.29'4957.29'4957.63'5273.70'5274.62'

4957.63'5273.70'5274.62'5306.46'

13-3/8", 61#, J-55, Surface Casing

Estimated Top of Cement Surface

2-7/8" TUBING DETAIL Length

9.80'157 joints 2-7/8", 6.5#, J-55, 8rd. EUE Tubing.34'

316.07'

874'

4977.47'

Liner Shoe

Baker Liner Hanger N/A N/A6 joints 4-1/2", 11.6#, K-55 Blank Liner 4.500'' 4.000''

5005.02'

- 1.15'

5228.71'

4.500'' 4.000'' 39.37'

223.69'

Top of 7", 23# Casing Extension with "Brown Oil

Tools" Liner Hanger5005.02'

I.D.

8-5/8", 36#, J-55 Production Casing

Estimated Top of Cement Surface

8-5/8" PRODUCTION CASING DETAIL

-

5321.00'

5307'Bottom of 2-7/8", 6.5#

Tubing String

Bottom of 4-1/2" Production Liner7" CASING EXTENSION DETAIL

Bottom of 7" Casing Extension:

4 joints of 7", 23#, K-55, 8rd. casing. Brown Oil Tools Liner Hanger at 5064'. Landing Collar at 5190'. B&W Guide Shoe at 5231'. Cemented with 60 sacks of Class "G" cement.

5190.00'

5309'

12" 5309' (5309' T.V.D.)

Original Drilled Depth

Unspecified number of joints of 8-5/8", 36#, J-55, Extreme Line Casing. Float Collar at unspecified depth. Float Shoe at 5190'. Cemented with 1700 sacks of combination "Pozmix" and "Neat" cement.

Bottom of 8-5/8" Production Casing:

Hole Underreamed To

Hole Opened To

(5321' T.V.D.)Bottom of 7" Casing

Extension, Cemented

WELLBORE SCHEMATIC MCDONALD ISLAND FARMS-9

Pacific Gas & Electric Company McDonald Island Gas Field A.P.I. number: 077-00084

Current K.B. to Tubing Hanger: 9.00' Top of Ground: -10.00'

Spud Date: 8-11-1960 Last Recompletion Date: 10-14-1981