Gas Reserve Estimation of Offshore Producible Shut-in Leases in the Gulf of Mexico A Report (1976) / Chapter Skim
Currently Skimming:
APPENDIX A: FPC STAFF REPORTS
APPENDIX A: FPC STAFF REPORTS
Pages 38-121
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 38... ...
38 APPENDIX A: FPC Staff Reports FEDERAL POWER COMMISSION OFFSHORE INVESTIGATION: PRODUCIBLE SHUT-IN LEASES ( First Phase ) January 1974 BUREAU OF NATURAL GAS OFFICE OF ECONOMICS STAFF REPORT Washington, D
|
From page 39... ...
Title Page No. 1 Louisiana and Texas Outer 21 Continental Shelf Federal Oil and Gas Leases Classified as Producible Shut-in as of January 22, 1974 1-A Louisiana and Texas Outer 28 Continental Shelf Federal Oil and Gas Leases Classified as Producible Shut-in as of January 22, 1974 - Lease Ownership
|
From page 40... ...
4, August 28, 1969 IV VI OCS Order No. 12, October 13, 1971 USGS Forms for Lease or Well Reports X ii
|
From page 41... ...
Included in this total are 60 leases in their primary 5-year terms, 96 leases in extended terms and 12 leases in exploration or production units. (Table 1)
|
From page 42... ...
(Table 1) Of the total 168 leases in primary and extended terms and in units, 40 ±/ are, according to FPC files, dedicated to interstate pipeline companies by gas purchase contracts, and 32 are committed by reason of advance payment agreements made between FPC regulated pipeline companies and the lessees.
|
From page 43... ...
It is estimated that it would require approximately 60 days for one 3-man evaluation team to estimate the gas reserves underlying the uncommitted producible shut-in leases. The utilization of additional teams would proportionately reduce the overall time required.
|
From page 44... ...
In the event production has not commenced after five years from the date of filing of the Form 9-330, all information on the form becomes available except Item 37, "Summary of Porous Zones" and Item 38, "Geologic Markers". However, within 90 days prior to the end of the five-year period the lessee or operator may submit objections to the release of other items of information.
|
From page 45... ...
Classification of Non-Producing PCS Leases Lease Term and Lease Term Extensions The successful bidding company for an OCS tract is issued a lease on the standard form Oil and Gas Lease of Submerged Lands Under the Outer Continental Shelf Lands Act 5/ which at Section 4 states: ~ -- ~ -- - -- "Term. This lease shall continue for a period of 5 years from the effective date of this lease and so long thereafter as oil or gas may be produced from the leased area in paying quantities or drilling or well reworking operations, as approved by the Secretary, are conducted thereon." In the absence or cessation of production, the lease term may be extended by drilling or reworking operations.
|
From page 46... ...
4-1. 5/ Outer Continental Shelf Lands Act, (67 Stat.
|
From page 47... ...
A search of FPC files indicates that a minimum of 72 of these leases have either been partially or totally committed to pipeline companies by advance payment agreements or have been dedicated by an executed gas purchase contract. Contractural Arrangements "Advance payments" are monies advanced by pipeline companies to producers to be used in the exploration and development of prospective gas leases.
|
From page 48... ...
15/ Leases in Primary Terms Leases in the primary term are those leases which have been in force for a period of up to 5 years. During this initial 5-year period there appears to be no requirement that the lease be on production or classified as producible TT7OCS G-2109 Eugene Island Block 306.
|
From page 49... ...
As stated above, leases in primary terms need only to qualify under OCS Order No. 4 in order to qualify as producible shut-in leases.
|
From page 50... ...
Thirty-two of the wells qualified on the basis of core and log analyses. FPC files indicate that a minimum of 33 of the primary term leases are committed or dedicated to interstate pipelines; 19 committed by advance payment agreements only and 14 by gas purchase contracts.
|
From page 51... ...
. Leases in Extended Terms All leases in the extended term have been continued beyond the 5-year primary term, with the approval of the supervisor, by establishing the existence of a well which is considered capable of producing gas or oil in paying quantities as explained above.
|
From page 52... ...
FPC files indicate that a minimum of 33 of the extended term leases are committed or dedicated to interstate pipelines; 13 committed by advance payment agreements only and 20 dedicated by gas purchase contracts. Two of the leases dedicated by purchase contracts are also committed by advance payment agreements.
|
From page 53... ...
In order to qualify under 187USGS - Conservation Division, Outer Continental Shelf Statistics: 1953-1972; pg.
|
From page 54... ...
None of the leases are nearer a proposed pipeline than to an existing pipeline. FPC records indicate that a minimum of 6 producible shut-in unit leases are dedicated by gas purchase contracts.
|
From page 55... ...
Changes in lease status are noted on the serial register pages along with the date the information was received from USGS. The date leases were classified producible shut-in by BLM, as shown in Table 2, is, therefore, the date that BLM received notification from USGS.
|
From page 56... ...
Table 3 shows a comparison of the leases classified producible shut-in by BLM as of January 1973 and the producible shut-in leases listed by USGS as of January 1974. For purposes of this comparison, the leases for both periods have been divided into two categories, those leases still in their primary term and those in extended terms.
|
From page 57... ...
Again, the increase in lease bonuses, which were up 55 percent over the 12-month period shows that the leases which went into extended terms during that period cost more to acquire. The total number of extended-term leases and acreage in January 1974 was lower than a year earlier; however, the average bonuses paid per acre in 1973 and 1974 were $498 and $805 ($857 excluding Section 6 leases)
|
From page 58... ...
Total primary-term leases and acreage constituted a little over a third of total producible shut-in leases and acreage for 1973 and 1974 while primary-term lease bonuses represented almost three quarters of the total lease bonuses paid for both periods. Extended-term leases and acreage for both 1973 and 1974 represent almost two-thirds of total producible shut-in leases and acreage but account for only about a quarter of the total bonuses paid, Ten Companies With the Largest Producible Shut-in Acreage Table 4 shows the ten companies having the largest producible shut-in acreage as of January 1973.
|
From page 59... ...
. In 1974, ten companies owned 498,089 acres contained in 151 leases classified producible shut-in or 63 percent of the total offshore producible shut-in acreage (Table 5)
|
From page 60... ...
Bureau of Natural Gas Office of Economic Victor H Zabel / Ralph' A
|
From page 61... ...
61 ll -- oo111?
|
From page 63... ...
63 - Hi »l sn ir M M M o o O O 8 J L| fl e > s ; K K i i i i i i i « i !
|
From page 65... ...
65 Il I 2 2 S ll w *
|
From page 67... ...
67 si ""I ' 00 Mi i i i a 1 III.
|
From page 68... ...
, Getty, Cities Service G2132 Eugene Island 159 Exxon* G2163 Grand Isle 94 Mobil*
|
From page 69... ...
, ODECO 0317 Eugene laland 47 Texaco* , Union Oil, Marathon, Sun 0431 Eugene Island 192 Amoco, (Shell*
|
From page 70... ...
G1221 Eugene Island 179 Union* G1234 South Felto 16 Chevron*
|
From page 71... ...
71 Table 1-A (Continued)
|
From page 72... ...
G1865 Eugene Island por. 64 Chevron*
|
From page 75... ...
75 in «M O IS !
|
From page 79... ...
79 s~in m _ 3 M S tM-d-ON i m in CM r- oo rH oo (*
|
From page 81... ...
in the Outer Continental Shelf areas of Louisiana and Texaa has received widespread attention in the Congress and in the media. This matter was of particular interest in recent Joint hearings before the Senate Subcommittee on Antitrust and Monopoly and the Subcommittee on Administrative Practice and'Procedure of "the Committee on the Judiciary.
|
From page 82... ...
Zareski, Chief of the Planning and Development Division of the Bureau of Natural Gas will be in further contact with your repreaentatives to make auch arrangements as nay be required. I will appreciate your cooperation and am sure that the results of this analysis will be mutually beneficial.
|
From page 83... ...
John N Naaaikaa Chairman, Federal Power Cooniaaion Waahington, D.C.
|
From page 84... ...
. An OCS lease provides for extension beyond its primary term for as long as oil or gas may be produced from the lease in paying quantities.
|
From page 85... ...
Electrical spontaneous potential exceeding 20 negative millivolts beyond the shale base line. If mud conditions prevent a 20 negative millivolt reading beyond the shale base line, a gamma ray log deflection of at least 70 percent of the maximum gamma ray deflection in the nearest clean water bearing sand may be substituted.
|
From page 86... ...
Section 250.97 of 30 CFR provides as follows: Public Inspection of Records. Geological and geophysical interpretations, maps, and data required to be submitted under this part shall not be available for public inspection without the consent of the lessee so long as the lease remains in effect or until such time as the supervisor determines that release of such information is required and necessary for the proper development of the field or area.
|
From page 87... ...
It has been determined that certain records pertaining to leases and wells in the Outer Continental Shelf and submitted under 30 CFR 250 shall be made available for public inspection, as specified below, in the Area office, Metairie, Louisiana.
|
From page 88... ...
, all information contained on this form shall be available except Item 37, Summary of Porous Zones; and Item 38, Geologic Markers, ffithin 90 days prior to the end of the five-year period the lessee or operator may submit objections to the release of such information. The supervisor, taking into consideration the objections of the lessee, proximity to unleased lands, and the best interests of the United States, may determine that such information shall not be released.
|
From page 89... ...
above, is not in a form which can be readily made available for public inspection. Requests for information on these forms shall be submitted to the supervisor in writing and shall be made available in accordance with 43 CFR Part 2.
|
From page 90... ...
Form 9-331C Application for Permit to Drill, Deepen or Plug Bac Items of confidential status and not to be reported on "Public Information" set of forms are designated in OCS Order 12 (August 13, 1971) and are indicated on the forms in this appendix by shading.
|
From page 91... ...
UNITED STATES DEPARTMENT OF THE INTERIOR GEOLOGICAL' SURVEY MONTHLY REPORT OF OPERATIONS OUTER CONTINENTAL SHELF Lease No Unit Are*
|
From page 95... ...
95 Fo APPKNDTX D l&^ •2«v,S 3§|f 13ls i'.i; m ? -s: fiisl
|
From page 96... ...
96 Form»-8SlC (May 1083) UNITED STATES DEPARTMENT OF THE INTERIOR GEOLOGICAL SURVEY Appwor*
|
From page 97... ...
97 r appropriate action by either ncerning the use of this form T or will be issued by, or may propriate notations. Ckmsalt requirements.
|
From page 98... ...
98 FEDERAL POWER COMMISSION OFFSHORE INVESTIGATION: PRODUCIBLE SHUT-IN LEASES As of January 1974 (Second Phase) BUREAU OF NATURAL GAS STAFF REPORT Washington, D
|
From page 99... ...
Title Page No. 1 Summary of Proved and Probable 8 gas Reserves 2 Gas Reserves - Leases Dedicated 9 by Gas Purchase Contracts 2-A Ranking by Volume of Proved Gas Reserves, Leases Dedicated by Gas Purchase Contracts 11 3 Gas Reserves - Leases Committed by Advance Payment Agreements 12 3-A Ranking by Volume of Proved Gas 14 Reserves, Leases Committed by Advance Payment Agreements
|
From page 100... ...
Title Page No. 1 Leases Classified as Producible 22 Shut-in, State of Louisiana, Outer Continental Shelf 2 Leases Classified as Producible 2k Shut-in, State of Texas, Outer Continental Shelf *
|
From page 101... ...
The Second Phase of the investigation involved the estimation of the proved and probable gas reserves underlying the producible shut-in leases previously identified in the First Phase report. I/ The reserve estimations were made T7This Second Phase report is intended to be used in conjunction with the FPC staff report, Offshore Investigation: Producible Shut-in Leases (First Phase)
|
From page 102... ...
Summary Reserve estimates were made for each of the 168 leases classified by the USGS as producible shut-in as of January 22, 1974. Data available in the USGS files were utilized for estimating the gas reserves of 142 of the leases while reserve estimates for the remaining 26 leases were available in the records of the FPC.
|
From page 103... ...
(All volumes in MMcf @ 14.73 Psia and 60°F) Procedures Gas reserves for 142 of the 168 producible shut-in leases were calculated in the USGS Metairie, Louisiana offices using basic data available in the USGS files.
|
From page 104... ...
2/ Gas reserves were estimated in both the proved and probable categories. Proved reserves were defined as follows: "Proved reserves of natural gas are the estimated quantities of natural gas which geological and engineering data demonstrate with reasonable certainty to be recoverable in the future from known natural oil and gas reservoirs under existing economic £>/ and operating conditions.
|
From page 105... ...
Reserve totals are shown for leases dedicated by gas purchase contracts, leases committed by advance payment agreements, leases neither dedicated nor committed and total leases. Further, reserve totals are shown for type of gas (non-associated or associated and solution)
|
From page 106... ...
4, Gas Reserves-Leases not Dedicated or Committed. Gas Reserves underlying leases neither dedicated by gas purchase contract nor committed by advance payment agreements are listed by lease, by lease term, as proved or probable and by type of gas.
|
From page 107... ...
G2368 High Island Block A-480 The deletion of 8 leases from the producible shut-in classification and the classification of 8 additional leases as producible shut-in results in the total number of producible shut-in leases remaining at 168 as of May 31, 1974. BUREAU OF NATURAL GAS Victor H
|
From page 108... ...
108 tl i_i en so CO sO so 0 ! r~ co coloo O CM Os 00 ol CM ,-J in O rHs*
|
From page 109... ...
122 41,006 2,738 41,006 2,738 123 5,178 40,358 5,178 40,358 124 245,496 13,907 245,496 13,907 133 1,438 44,149 1,438 44,149 134 22,774 663 70,848 871 23,437 71,719 147 104,379 129,385 104,379 129,385 151 52,238 96,838 52,238 96,838 156 13,398 38,439 13,398 38,439 157 5,522 32,932 2,135 5,522 35,067 158 124,421 6,382 124,421 6,382 164 38,663 22,838 38,663 22,838 165 21,960 21,960 166 201,978 349,740 201,978 349,740 167 85,059 6,857 91.916 943,476 Primary Totals Term 871,835 7,279 893,255 50,221 879,114 099 21,307 II - Leases in Extended Term 21,307 121 56,071 56,071 125 59,913 39,295 59,913 39,295 126 81,357 3,025 81,357 3,025 127 60,714 36,667 60,714 36,667 128 34,112 22,746 34,112 22,746 129 22,056 30,562 22,056 30,562 130 30,588 8,241 30,588 8,241 131 13,975 12,303 13,975 12,303 -9
|
From page 110... ...
132 12,686 1,966 12,686 1,966 135 301 301 136 1,564 1,564 137 6,251 10,167 16,418 138 55,873 3,011 55,873 3,011 139 6,214 6,214 140 43,301 7,230 43,301 7,230 141 2,387 2,387 142 582 582 148 19,032 19,032 149 20,259 20,259 150 49,000 49,000 152 4,929 4,929 153 18,669 18,669 154 2,280 2,280 155 49,000 49,000 159 5,186 5,186 160 46,955 46,955 161 11,552 11,552 162 19,030 19,030 163 5,477 5,477 168 Extended 16,355 16,355 Term Totals 712,619 74,524 162,035 3,011 787,143 165,046 Total Leases 1,584,454 81^803 1,055,290 53,232 1,666,257 1^108,522 17 Non-Associated Gas. 2/ Associated and Solution Gas.
|
From page 111... ...
Lease Proved Probable Lease Totals Code No NA I/ A&S 2/ NA A&S Proved Probable fa)
|
From page 112... ...
25,391 5,324 II-Leases in Extended Term Total Leases Jj 666^257 1,108,522 126 81,357 3,025 Avg /Lease 37,027 24,633 127 60,714 36,667 125 59,913 39,295 121 56,071 138 55,873 3,011 150 49,000 155 49,000 160 46,955 140 43,301 7,230 128 34,112 22,746 130 30,588 8,241 129 22,056 30,562 099 21,307 149 20,259 148 19,032 162 19,030 153 18,669 - 11
|
From page 113... ...
NA I/ A&S 2/ NA A&S Proved Probable II - Leases In Extended Term 092 19,230 5,272 24,502 101 7,453 7,453 102 33,139 33,139 103 3,124 3,124 104 28,756 28,756 105 12,139 12,139 106 11,244 11,244 107 18,652 18,652 111 5,905 5,905 113 57,313 57,313 114 22,470 1,632 22,470 1,632 116 21,864 6,927 21,864 6,927 119 10,905 17,182 10.905 200,153 17.182 83,054 Extended Term Totals 172,411 27,742 81,422 1,632 Total Leases 1,094,728 90^925 958,391 27,092 1,185,653 985^483 IT Non-Associated Gas. 2/ Associated and Solution Gas.
|
From page 114... ...
Lease Lease Totals Code No. Proved Probable Code No.
|
From page 115... ...
Lease "roved Probable Lease Totals Corlp No. NA l/ A6.3 21 NA A&S Proved Probable fa)
|
From page 116... ...
Sheet 2 of 4 Lease Code No Proved Probable Lease Totals ._ NA I/ A&S 21 NA A&S Proved Probable (a)
|
From page 117... ...
Sheet 3 of 4 Lease Proved Probable Lease Totals Code No. NA I/ A6.S 21 NA A&S Proved Probable II - Leases In Extended Term CCont.)
|
From page 118... ...
Sheet '+ of '4 Lease Proved Probable Lease Totals Code No. NA I/ A&S 2/ NA A&S Proved Probable 11,449 1,1 - Leases in Extended Term (Cont .
|
From page 119... ...
14.73 Psia and 60°F) RANK IMG BY VOLUME OF PROVED GAS RESERVES LEASES NOT DEDICATED OR COmiTTED Lease Code No.
|
From page 120... ...
Coii e No. Proved Probable Code No.
|
From page 121... ...
5 < i 3 Q . Distance Proa Existing Pipeline K ry J 2 H 1 " SB £ S i *
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.