PIONEER

N A T U R A L R E S O U R C E S A L A S K A
Pioneer Natural Resources Alaska, Inc.
700 G Street, Suite 700
Anchorage, Alaska 99501
2011-12 North Slope Exploration Program
North Slope, Alaska
Plan of Operations
August 2011
Submitted to:
State of Alaska
Department of Natural Resources
Division of Oil and Gas
2011-12 North Slope Exploration Program P'^" of Operations
Tabl e of Cont ent s Page
1 Introduction and Project Description 1
2 Lease Description 1
3 Schedule 1
4 Ddllsite Access 2
5 Wellsite and Locations 3
6 Water Requirements and Sources 3
7 Drillings Fracturing, and Testing 4
7.1 Non-Drilling Wastes 4
7.2 Disposal of Drilling Wastes 5
7.3 Produced Fluids 5
8 Air Emission 6
9 Ancillary Facilities 6
10 Historic, Archaeological, and Cultural Resources 6
11 Well Abandonment and Site Closure 6
12 Contingency Plans 7
12.1 Oil Discharge Prevention and Contingency Plan 7
12.2 SpiU Prevention Control and Countermeasures Plans 7
12.3 Other Plans 7
13 Wildlife 7
13.1 Interaction Plans 7
13.2 Fish Habitat 8
13-3 Wildlife Habitat 8
14 Contact List 9
15 training 9
16 public Involvement 10
17 Native and Local Hire Policy 10
18 Potential Permits and Authorizations List 10
List of Figures
Figure 1 Project Location Map
Figure 2 Typical Onshore and Sea Ice Pads and Ice Road Cross Sections
Figure 3 Typical Drilling Operation Layout
Figure 4 Typical Well Test Operation Layout
Appendix A
North Slope Exploration Project - Lease Mitigation Measures
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2011-12 North Slope Exploration Program Plan of Operations
1 Introduction and Project Description
Pioneer Natural Resources Alaska, Inc. (Pioneer) is proposing to drill and test two exploration
wells from ice pads on State of Alaska oil and gas leases during the 2011-2012 winter season
(Figure 1, Project Location Map). These wellsites are located near the eastern edge of the
Colville River delta on the south side of Harrison Bay. One well (Nuna No. 1) will be drilled at
the proposed onshore Nuna Drillsite 1 (NDSl) location which is located 2.5 mile northwest of
Kuparuk River Unit (KRU) drillsite 3-S (DS-3S). This well will be preserved as a development
well as part of the Nima project (Nuna). The other well (Sikumi No.l) will be drilled
approximately 2 miles west of the Oooguruk Drillsite (ODS), immediately offshore of the
Colville River, and plugged and abandoned after completion of activities.
The wellsites will be approximately 600 ft by 600 ft (8 acres), providing room for the drilling rig
and camp, a temporary services camp, materials storage, and related activities. A 5-acre ice pad
will be constructed adjacent and east of DS-3S which will be used for storage of materials and
equipment.
After completion of drilling each well, a geophysical survey (checkshot survey) will be
performed. At Nuna #1, the checkshot survey will require a packed snow road northwest of the
pad for the vibrator truck.
Hydraulic fracture stimulation and flow testing is planned for each well. Produced fluids will
be transported to production facilities. After completion of drilling and testing, all equipment
will be removed from the pads and tt\e well sites will be cleaned.
2 Lease Description
The Exploration program surface activities will be located on Alaska Oil and Gas leases ADL
355037 and 25528. 2010 North Slope Areawide Mitigation Measures apply to this project. An
analysis of the mitigation measure compliance is included as Appendix A.
3 Schedule
Ice road and ice pad construction will begin as soon as the necessary permits/approvals are
available and weather conditions allow. Pioneer will begin pre-packing snow on the tundra
portions of the ice road, staging pad, and Nuna No. 1 wellsite using state approved all terrain
vehicles as early as November. Thermistors will be installed at the Nuna No. 1 wellsite and
along the ice road route to monitor soil temperatures to support early access of the tundra.
Drilling will begin in early January for the Nuna No. 1 and in mid February 2012 for tiie Sikumi
No. 1 well.
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2011-12 North Slope Exploration Program Plan of Operations
Well fracturing and testing will be performed at both well locations. Current plans are to plug
and abandon the Sikumi No.l well and suspend the Nuna No. 1 well until final plans are made
for development.
Activity
Permit Review and Approvals
Ice Road and Pad Construction
DriU Nuna No, 1 Well
Drill Sikumi No.l Well
Fracture Stimulation Operations
Testing Operations
Plug & Abandon Sikumi No. 1 Well
Suspend Nuna No. 1 Well
Demobilizatiori of Rig and Equipment
Cleanup Ice Pads
Schedul e
Fall 2011
November 20n-January 2012
January 2012
February 2012
January- Mid April 2012
March- AprU 2012
AprU- May 2012
April 2012
Late April-Early May 2012
Late April-Early May 2012
4 Drillsite Access
Access routes to the Nuna No. 1 wellsite will be via ice roads coimecting to the existing gravel
KRU road system at DS-3S. Access to the Sikumi No. 1 wellsite will be via an extension of the
annual Oooguruk ice road route from the Oooguruk Tie-in Pad (OTP) to the Oooguruk Drillsite
(ODS) and a connection to the Nuna No. 1 ice road. Figure 1 shows the proposed ice road
routes.
Ice roads are expected to be 55 ft wide. Typical onshore and sea ice pads and ice road cross
sections are shown on Figure 2. 5-acre ice pads will be constructed adjacent and east of DS-3S
and southwest of DS-3H, which will be used for storage of materials and equipment.
Using permitted freshwater sources and existing packed snow as the road base, the road and
wellsites will be built up until sufficient strength and thickness are obtained to support project
equipment loads. Ice chips may be used as needed if weather or construction conditions
warrant their use (See Figure 1 for location of potential water sources). Rig mats or similar
material may be used on or in the construction of ice roads at selected locations as required by
field conditions. Such equipment will be removed prior to the end of the operating season. Ice
roads and ice pads may be scarified with equipment to reduce slickness for safety purposes.
Approximately 18 miles of ice roads will be constructed.
Access to the existing operating fields via the Dalton Highway is controlled at existing security
checkpoints. BP Security will stop any general public visitor from accessing Pioneer's location
at the Prudhoe Bay/Deadhorse Security access point unless granted by Pioneer. The wellsites
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2011-12 North Slope Exploration Program Plan of Operations
will be closed to ti\e general public for purposes of safety. Exceptions may include aid in the
event of an emergency situation.
5 Wellsite and Locations
Each wellsite will be constructed of ice and be approximately 8 acres. See Figures 4 and 5 for
typical wellsite layouts for drilling and fracturing and well testing operations.
The exploration drilling locations are:
Nuna No. 1 Umiat T12N, R7E, Sec 2 ADL 25528
Sikumi No. 1 Umiat, T13H R7E, Sec 16 ADL 355037
6 Water Requirements and Sources
This section describes water requirements for construction and operations at each wellsite and
the connecting ice roads. Permitted sources along the ice road system would be used as water
and ice Aggregate sources for ice road and ice pad construction under existing temporary water
use permits.
All ice roads and wellsites will be built using a combination of existing snow along the route,
freshwater pumped from lakes along the ice roads, and freshwater ice chips off lakes along the
ice roads. The offshore ice roads and pads will be thickened by successive flooding and
freezing of seawater prior to application of a fresh water cap. Offshore roads could use a
combination of water from onshore sources or from discharge channels of the Colville River.
Fresh water is also needed for ice road and pad maintenance, drilling operations, and camp use.
Approximately 78 million gallons of water will be required to support ice road and pad
construction. An additional 1,000,000 gallons of water will be required to support drilling
operations and the camps will need about 1,000,000 gallons of fresh water. A maximum of
approximately 80 million gallons (246 acre ft) of water will be required to support the project
with approximately 150 days of drilling operations including ice road and pad construction and
maintenance.
The drilling rig camp is equipped to convert freshwater from lakes to potable water for camp
use. The camp is permitted as a certified public water system with the Alaska Department of
Environmental Conservation (ADEC), which is maintained by the camp contractor.
The temporary service camp will have a water storage system to hold fresh water provided
from a commercial source in Kuparuk or Prudhoe Bay.
Pioneer will consult with the Alaska Department of Natural Resources (ADNR) water division
and the Alaska Department of Fish & Game (ADF&G) regarding using Colville River water or
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2011-12 North Slope Exploration Program Plan of Operations
ice to support ice road and ice pad construction and maintenance and secure any needed
permits.
7 Drilling, Fracturing, and Testing
The Nuna No. 1 well will use extended reach drilling to access the reservoir from the proposed
location of Nuna Drillsite 1 (NDSl). The Sikumi No. 1 well be a more typical vertical well bore
design be similar to previous North Slope exploration wells. The actual well bore design is part
of the Drilling Permit issued by the Alaska Oil and Gas Conservation Commission (AOGCC).
Due to the exploratory nature of the well, nearly all information regarding the downhole
aspects of the well is confidential.
After completion of drilling each well, a geophysical survey (checkshot survey) will be
performed. The survey, consisting of borehole seismic measurements, will be used to calibrate
existing seismic date and enable Pioneer to construct more accurate depth maps to the reservoir
for future drilling. Measurements will be made in the pilot wellbore using geophones inside
the wellbore and an energy source (vibrator) on the surface. The geophone is lowered in the
well via wireline similar to any other geophysical log. The vibrator unit is based on a rolligon
vehicle. Because the Nuna well is a high-departure well, this source will be used at discrete
positions along the surface trace of the borehole, up to % mile into the Colville River Delta. The
vibrator will be located on or near the ice pad for the Sikumi No. 1 well.
Prior to flow testing, each well may be fracture-stimulated. The frac equipment will include:
chemical storage for liquid and dry materials (Frac Cat); blender; frac pumps; frac tanks for
seawater; fluids and gel mixers; manifold; hot oiler; diesel truck, boom truck; sand silos; and
sand transport and conveyor systems.
Chemicals staged on the ice pads prior to injection will include: proppant (sand); crosslinker;
slurry gel; scale inhibitor; seawater, diesel truck, surfactant; breakers; microbiocide; and 5%
caustic soda. These materials will remain on the ice only as long as operationally necessary.
The frac tanks and blender will be placed in secondary contairunent. The containment will be
constructed of a herculite liner, timbers and/ or ice berms. Spill contairunent (duck ponds) will
be placed beneath tiie trucks.
Production tests will be performed as needed after production casing is set. It is plaimed for
tills activity to occur once the drilling rig has moved on to its next location. Testing may include
extended flow periods to determine the productivity of the well.
7.1 Non-Drilling Wastes
Solid, non-bumable waste, including scrap metal, banding material, eto., will be deposited in
large containers located at each site as needed for each waste classification. These containers
will be hauled appropriately to the North Slope Borough (NSB) landfill at Prudhoe Bay. Food
waste will eitlier be stored in a wildlife resistance containers awaiting periodic hauling or such
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2011-12 North Slope Exploration Program Plan of Operations
wastes will be hauled each day to an approved waste treatment center (KRU, for example),
where it will be incinerated and the ash taken to the NSB landfill.
The drilling camp will be equipped with a comprehensive sewage treatment plant. All camp
wastewater would be treated to sufficientiy meet the discharge requirements of the Alaska
Pollution Discharge Elimination System General Permit maintained by the camp contractor.
The treated effluent will be discharged to frozen tundra or ice, monitored and reported by the
camp contractor or hauled offsite for disposal to a permitted faciUty.
The temporary services camp will have a wastewater storage system and wastewater will be
hauled and disposed of at a permitted facility.
7.2 Disposal of Drilling Wastes
Drilling fluids, a combination of fresh water, seawater or synethic oil-based, will be used to
maintain desired drilling fluid properties and density. Excess drilling mud that can not be
reused will be transported to an approved Class I or II injection well at ODS, Prudhoe Bay, or
Kuparuk. An average of 20,000 gallons per day (gpd) of waste liquid from each well may
require disposal, although efforts to minimize this amount will be undertaken.
All drill cuttings will be transported to a certified processing and disposal facility at ODS,
Prudhoe Bay, or Kuparuk, via vacuum or super sucker truck or diposed in an approved well
annulus. Cuttings may be temporarily stored in an ADEC-approved temporary drilling waste
storage area. In an emergency situation, cuttings will be contained witiiin cells of the temporary
waste storage area.
Upon completion of activities at each wellsite, material collected from the removal of the
temporary drilling waste storage areas will be broken up and processed for Class I or II disposal
at a certified disposal faciUty, or transported to the NSB landfill at Prudhoe Bay for disposal.
If drilliiig wastes are temporarily stored. Pioneer will apply to the ADEC, Division of
Environmental Health for Temporary Storage of Drilling Waste and Solid Waste Treatment
Plans approval, as required in 18 AAC 60.430. The drill cuttings storage area would be
approximately 50 ft by 100 ft by 4 ft deep. With a working depth of 2 ft, the volume of the
storage area will have a capacity of 1,800 barrels. The temporary storage area will be
constructed of ice berms and compacted snow. The botton\ of the storage areas will be
increased in ice thickness over the base of the pads by approximately 1 ft. The storage area will
be trimmed and cleaned up after use.
7.3 Produced Fluids
Produced fluids will pass through an adequately sized test separator system to separate the gas
and stored in tanks. After testing, the fluids will be hauled to OTP/ODS, Prudhoe, or Kuparuk
and for processing.
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2011-12 North Slope Exploration Program Plan of Operations
8 Air Emission
Sources of air emissions from the operation are rig engines, camp generator engines, steam
generators, engine-driven pumps, hot-air heaters, light plants, and well test flaring equipment.
All major equipment will be fired with ultra low-sulfur diesel fuel. Pioneer will be submitting
an ADEC Minor General Permit (MGPl) for Drilling Rigs and Associated Equipment (18 AAC
50.390).
9 Ancillary Facilities
While drillingr the drilling camp will house up to 80 people. The temporary services camp will
have tile capacity to accommodate up to 30 people. Up to approximately 20,000 gallons of
diesel fuel in multiple containers will be stored at each wellsite. Up to 8,000 gallons of synethic
base oil for drilling will be stored during drilling operations if needed. Appropriate secondary
containment will be in place for the type and size of fuel or base oil container.
Communications antennas and satellite dishes will be portable and attached either directiy to
the camp structures or freestanding on the ground.
10 Historic, Archaeological, and Cultural Resources
A cultural resources study for site clearance was conducted to assess any known sites, and to
locate currently unknown sites (summer 2011). The study had two components: records
review and in-field survey. The records review included the Alaska Heritage Resources Survey
(AHRS) database, maintained by the Office of History and Archaeology within ADNR; and the
Traditional Land Use Inventory (TLUI) database, maintained by the NSB. No previously-
recorded AHRS sites will be affected by any of the proposed exploration activities, since the
nearest site is approximately 1/2 mile from any portion of the proposed project.
The field survey used both helicopter support and on-the-ground investigation. A report of
these findings will be submitted to the ADNR Office of History and Archeology.
11 Well Abandonment and Site Closure
upon completion of drilling and evaluation operations, any remaining debris will be hauled to
an approved disposal site. Any discovered spills or ice/snow contamination occurring on the
ice pads or roads will be chipped or scraped back for pick up and either disposed of at a
certified disposal facility, or, as toxicity levels allow, hauled to the NSB landfill at Prudhoe Bay.
Spill reports will be filed with ADEC and ADNR. Sikumi No. 1 well will be plugged and
abandoned. The Nuna No. 1 well will likely be suspended in accordance with Alaska Oil and
Gas Conservation Commission (AOGCC) requirements until final plans are made for
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2011 -12 North Slope Exploration Program Plan of Operations
development. Following the seasonal thaw in the spring the route and wellsites will be
inspected. Any debris wUl be collected and back hauled for disposal.
12 Cont i ngency Pl ans
12.1 Oil Discharge Prevention and Contingency Plan
An approved spill control package and an approved Oil Discharge Prevention and Contingency
Plan will he kept on site at all times for use in controlling and cleaning up any accidental
discharges of fuel, lubricants, or produced fluids. Information related to immediate response
actions, receiving environments, spill cleanup mobilization, response times, and well control
cU\ be found in that plan.
Pioneer is a current member of the Alaska Clean Seas oil spill response cooperative.
12.2 Spill Prevention Control and Countermeasures Plans
The drilling contractor holds a Spill Prevention Countermeasure Control (SPCC) plan for their
fuel storage facilities associated with drilling operations. The well testing company holds a
SPCC plan for their testing tanks.
12.3 Other Plans
Pioneer maintains a Master Service Agreement with the O'Brien's Group to provide Incident
Command System services for both spill response and emergency response situations for the
upcoming exploration season.
13 Wildlife
13.1 Interaction Plans
Wildlife that could be in {he area during the winter include: owls, ravens, foxes, and polar
bears. Grizzly bears also inhabit the coastal region, but it is unlikely they would still be active
during the winter season.
Project personnel will be instructed not to feed wildlife of any type or in any other way attempt
to attract them either at die wellsite or on the ice roads. Pioneer and its contractors will exercise
caution while establishing the ice road route and watch for bear signs. If a polar bear den is
identified, tiie U.S. Fish and Wildlife Service (USF&WS) and ADF&G will be notified and the ice
road route altered to avoid any disturbance, if required. Food and food waste will be kept
inside buildings or containers that minimize odors. Hazardous materials will be kept in drums
or other secure containers. Well pad layouts will be designed to maximize visibility and
minimize potential areas that a bear could crawl into or otherwise be hidden from view. Any
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2011-12 North Slope Exploration Program Plan of Operations
sightings will be immediately reported to the site supervisor and the persoimel in the area
warned of the location of the bear.
A comprehensive Bear Avoidance Encounter/Interaction Plan, filed with the USF&WS and
ADF&G provides operational, monitoring and reporting guidance for field operations. Pioneer
will contact USF&WS and ADF&G for known identification of known den locations prior to ice
road and well pad construction.
Pioneer will consider the use of a local subsistence representative to avoid and minimize
interactions with subsistence resources and their use, if appropriate for this area of the North
Slope.
13.2 Fish Habitat
Streams witiiin and adjacent to the on-shore project area are tundra drainages that freeze to the
bottom by late winter. The shallow lakes and ponds in this area also freeze to the bottom by
late winter. As a result, these water bodies are not considered fish overwintering habitats.
Development of grounded landfast ice in shallow water (less than 5 ft) is expected to preclude
substantial fish occupancy of the immediate project area from mid-winter until breakup.
The Colville River and Delta and adjacent nearshore brackish and marine waters support a
variety of fish species with differing life history strategies and salinity tolerances. Subsistence
fisheries for arctic cisco, least cisco, and lesser numbers of other species, including broad
whitefish, occur in or near the Colville River Delta. A bathymetry survey will be conducted this
summer to guide the sea ice route location and minimize potential impacts to fish.
13.3 Wildlife Habitat
The general setting for the project area includes two predominant hydrological systems
bordering the Colville River Delta: Harrison Bay and the wetiand tundra of the Arctic Coastal
Plain. The area is characterized by Harrison Bay's nearshore marine waters, low relief river
delta, meandering stream charmels, and emergent wetiands.
Polar bears are a USF&WS trust species protected by the Marine Mammals Protection Act
(MMPA) (16 u s e 1361-1407). In May 2008, the polar bear was hsted as a threatened species
under the Endangered Species Act (73 FR 28212) because of continuing declines in arctic sea ice.
Polar bears range over sea ice, barrier islands, and terrestrial coasts in winter. Potential denning
habitat exists in the Nuna No. 1 wellsite area. Pioneer will conduct a Ground-based Forward
Looking Infrared (FLIR) survey to detect potential maternal dens along the Beaufort Sea
coastiine within a one mile buffer of proposed ice roads and ice pads.
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2011-12 North Slope Exploration Program Plan of Operations
14 Contact List
pioneer designated representatives will be on site at all times during operations. Twenty-four
hour phone service will be available at the drilling camp. The following personnel are
designated project contacts:
Manager - Land, Commercial, and Regulatory Affairs
J. Patrick Foley (907) 343-2110 (office)
(907) 830-0999 (cell)
Drilling Manager
Vem Johnson (907) 343-2111 (office)
(907) 575-9430 (cell)
Permitting Coordinator
John Hellen (907) 343-2102 (office)
(907) 575-9955 (cell)
Environmental, Health, and Safety Manager
Bonnie Smiti\ (907) 343-2174 (office)
(907) 230-0272 (cell)
15 Training
pioneer requires that all North Slope contractors complete an 8-hour "unescorted" training
program provided by the North Slope Training Cooperative. All trainees receive a Field
Environmental Handbook, an Alaska Safety Handbook, and a site specific orientation. The
unescorted training includes review of the Alaska Safety Handbook, personal protective
equipment, camps and safety orientation, hazard communications, HAZWOPER Level 1,
Environmental Excellence, and cultural awareness.
The program includes an explanation of the applicable laws protecting cultural and historic
resources, and stresses the importance of not disturbing archeological, cultural and historic
resources while providing guidance on how to avoid disturbance.
Federal Occupational Safety and Health Admirustration regulations and guidance provide
training standards for individual positions. Training for individual positions vary with the
activities performed. Individual training may include an electrical safety program; emergency
preparedness and action plans; hazards communication program; HAZWOPER (levels 3-5);
lockout/tagout procedures for control of hazardous energy; emergency shut down systems;
cranes, chain hose, and sling/rope inspection program; drilling and workover operations;
machinery guarding; tank/vessel cleaning procedures; confined space entry program; first aid
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2011-12 North Slope Exploration Program Plan of Operations
material and training; eye and face protection; hearing conservation program; personnel
protective equipment; respiratory protection program; safety and environmental meetings.
16 Public Involvement
Pioneer conducted pre-application meetings with the ADNR and ADF&G on June 20, and July
12, 2011. Pioneer initiated consultation with the USF&WS and NSB representatives and
provided presentation materials for the winter Exploration Program on July 6 and July 12, 2011.
Activities regarding the Exploration Project were discussed with Kuukpik Corporation on June
14, 2011. A public meeting is planned for Nuiqsut in August or September, 2011.
17 Native and Local Hire Policy
Pioneer strives to hire qualified local and Native individuals to support this project. Pioneer is
committed to continuing its relationships with local and Native contractors and businesses in
the execution of tiiis exploration program.
18 Potential Permits and Authorizations List
The following permits and authorizations have been identified as necessary tiie North Slope
Exploration Program:
U.S. Environmental Protection Agency (USEPA):
National Pollution Discharge and Elimination System Discharge General Permit.
U.S. Fish and Wildlife Service (USF&WS):
Marine Mammal Protection Act (MMPA) (Letter of Authorization), (polar bears).
Endangered Species Act (ESA), Section 7 Consultation (polar bears).
ADNR:
Lease/Unit Plan of Operations (DOG).
Temporary Water Use Permit Division of Mining, Lands, and Water (DMLW).
Miscellaneous Land Use Permit (DMLW).
Alaska Heritage Resource Survey (AHRS) and Section 106 Cultural Site Clearance
(ADNR, Office of History and Archeology, State Historic Preservation Office).
Alaska Department of Environmental Conservation (ADEC):
Oil Discharge Prevention Contingency Plan, Division of Spill Prevention and Response.
Oil Spill Financial Responsibility.
Alaska Pollution Discharge Elimination System (APDES)
Air Quality Construction Minor Source General Permit 1 (Division of Air Quality).
Drilling Waste Temporary Storage Plan Approval (Division of Environmental Health).
Alaska Pepartment of Fish & Game (ADF&G):
Tide 16 (Fish Habitat).
Alaska Oil and Gas Conservation Commission (AOGCC):
Permits to Drill.
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2011-12 North Slope Exploration Program Plan of Operations
Annular Disposal.
NSB:
Inupiat History, Language & Culture (IHLC) historic, archaeological, and cultural sites
including TLUI sites clearance.
Development Permit.
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August 2011
Water Source &
Ice Mine
ODS
Possible
Ice K^ine
NunkNo. 1
T12NR7E
Possi bl e tee
^ine
Proposed Exploration Wells, Ice Road & Ice Pads - 2011 - 2012
1:63,360
0 0.5 1 Miles
I I I I I
Figure 1
Prajedion.AKStEjlD Plans ^ nedhUDB^
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PIONEER
NATURAL RESOURCES ALASKA
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TYPICAL ICE ROAD
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ALL DIMENSIONS ARE APPROXIMATE
PIONEER
NATURAL RESOURCES ALASKA
Typical Onshore and Sea Ice Pads
and
Ice Road Cross Sections
NOT TO SCALE
PREVAILING
WIND
ENE
600'
PROPOSED ICE PAD LAYOUT
TEMPOPARV DRILLING
WaSTE STORAGE AREA
s e x 100'
> WELL
DRILLING RIG
FUELSTORAGE
k
RIG SHOP
RIG
1 1
1
_
CA WP
1
PADACCESS
600"
NOTE:
ALL DIMENSIONS ARE APPROXIMATE
PIONEER
NATURAL RESOURCES ALASKA
TYPICAL DRILLING OPERATION LAYOUT
2011-2012 North Slope Exploration Program
SCALE:
I I I I I
0 25 50 100 Feet
FIGURE:
PREVAILING
WIND
ENE
PROPOSED ICE PAD LAYOUT
TEMPORARY DRILLING
WWSTESTORAGEAREA
50'X 100'
600'
FLARE
LAB>
BREAK ROOM
RELIEF TANK
SAND TRAP
FLOWBACKTANK
CONTAfNMENT
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D
FftD ACCESS
TEMPORARY SERVICES CAMP
600'
A/0 TE-
AL/. DIMENSIONS ARE APPROXIMATE
PIONEER
N A T U R A L R E S O U R C E S A L A S K A
TYPICAL WELL TEST
OPERATION LAYOUT
2011-2012 North Slope Exploration Program
SCALE:
I 1 1 1 1
0 50 100 200 Feet
FIGURE:
Appendix A
North Slope Exploration Project - Lease Mitigation Measures
This table presents mitigation measures contained in the Beaufort Sea Area Wide Oil and Gas
Lease Sale 2009 and notes how each measure is addressed by Pioneer Natural Resources Alaska,
Inc. for the 2011-2012 North Slope Exploration Project.
Lease Mitigation Measure
1. Facilities and Operations
a. A plan of operations must be submitted and approved before
conducting exploration, development or production activities, and
must describe the lessee's efforts to minimize impacts on residentiaL
commerciaL and recreational areas. Native allotments and
subsistence use areas. At the time of application, lessee must submit
a copy of the proposed plan of operations to all surface owners
whose property will be entered.
b. Facilities must be designed and operated to minimize sight and
sound impacts in areas of high residential, commerciaL recreational,
and subsistence use and important wildlife habitat. Methods may
include providing natural buffers and screening to conceal facilities,
sound insulation of facilities, or by using alternative means
approved by the Director, in consultation with ADF&G and the
NSB.
c. To the extent practicable, the siting of facilities will be prohibited
within 500 feet of all fish-bearing streams and waterbodies and 1,500
feet from all current surface drinking water sources. Additionally, to
the extent practicable, the siting of facilities will be prohibited within
one-half mile of the banks of the main channel of the Colville,
Canning, Sagavanirklok, Kavik, Shaviovik, Kadleroshilik, Echooka,
Ivishak, Kuparuk, Toolik, Anaktuvuk and Chandler Rivers,
Facilities may be sited within these buffers if the lessee demonstrates
to the satisfaction of the Director, in consultation with ADF&G, that
site locations outside these buffers are not practicable or that a
location inside the buffer is environmentally preferred, Road, utility,
and pipeline crossings must be coiisolidated and aligned
perpendicular or near perpendicular to watercourses.
d. Impacts to important wetlands must be minimized to the
satisfaction of the Director, in consultation with ADF&G and ADEC,
The Director will consider whether facilities are sited in the least
sensitive areas. Further, all activities within wetlands require
permission from the US Army Corps of Engineers (see Lessee
Advisories).
e. Exploration facilities must be temporary and must be constructed
of ice unless the Director determines that no practicable alternative
exists. Use of gravel structures may be permitted on a case-by-case
basis by the Director, after consultation with DMLW, and ADF&G.
Where and How It Is Addressed
The Plan of Operations has been submitted to
ADNR, The state is the only surface owner
whose property will be entered.
Pioneer is proposing a winter Exploration
Program, with temporary facilities supported
by snow and ice structures to minimize
impacts to wetlands.
No permanent facilities are proposed.
Pioneer is proposing to use a temporary snow
and ice road system to support the winter
2011-2012 Exploration Program. Consultation
with ADF&G on drillsite locations was
conducted on July 28, July 12, February 23,
2011 and December 16, 2010. Based on
feedback during from ADF&G and others.
Pioneer has proposed doubling the distance
of NDSl from the Colville River,
Pioneer is proposing a winter Exploration
Program, with temporary facilities supported
by snow and ice structures to minimize
impacts to wetlands. Consultation with
ADF&G on drillsite locations was conducted
on July 28, July 12, February 23, 2011 and
December 16, 2010. Pioneer also met with the
ADEC spill plan group on proposed Nuna
exploration activities. U.S. Army Corps of
Engineers approval is not required for
temporary winter exploration activities.
The proposed activities wiU be conducted on
temporary ice roads and pads.
Pioneer Natural Resources Alaska, Inc.
page!
September 2011
2011-2012 North Slope Exploration Program Lease Mitigation Measures
Lease Mitigation Measure
Approval for use of existing structures will depend on the extent
and method of restoration needed to return these structures to a
usable condition.
f. Pipelines must utilize existing transportation corridors where
conditions permit. Pipelines and gravel pads must be designed to
facilitate the containment and cleanup of spilled fluids. Where
practicable, onshpre pipelines must be located on the upslope side of
roadways and construction pads, unless DMLW, determines that an
alternative site iS environmentally acceptable. Wherever possible,
onshore pipelines must be buried where soil and geophysical
conditions permit. AU pipelines, including flow and gathering lines,
must be designed, constructed and maintained to assure integrity
against climatic conditions, geophysical hazards, corrosion and
other hazards as tietermined on a case-by-case basis.
g. Onshore pipelines shall be designed and constructed to minimize
alteration of caribou and other large ungulate movement and
migration patterns. At a minimum, above-ground pipelines shall be
elevated 7 feet, as measured from the ground to ttie bottom of the
pipe, except where the pipeline intersects a road, pad, or a ramp
installed to facilitate wildlife passage. Lessees shall consider
increased snow depth in the sale area in relation to pipe elevation to
ensure adequate clearance for wildlife. ADNR may, after
consultation with ADF&G, require additional measures to mitigate
impacts to wildlite movement and migration.
h. All pipelines, including flow and gathering lines, must be
designed and constructed to provide adequate protection from
water currents, storm and ice scouring, subfreezing conditions,
coastal erosion, permafrost thawing, and olher hazards as
determined on a case-by-case basis.
i. Offshore oil and gas transportation pipelines will be encouraged if
the Director determines that they faying of such pipelines is
technically feasible and environmentally preferable to transport by
oil tanker or othef means.
j . Following the installation of a pipeline of sufficient capacity, no
crude oil will be transported by surface vessel from offshore
production sites, except in an emergency. The Director will evaluate
the emergency .^nd determine an appropriate respovse to the
condition.
k. Causeways
i. Continuous-fill causeways are prohibited. Envirorunentally
preferred alternatives for field development include use of buried
pipelines, onshore directional drilling, or elevated structures. Non-
continuous-fill causeways must be designed, sited, and constructed
to prevent sigJiificant changes to nearshore oceanographic
circulation patterns and water quality characteristics (e,g., salinity,
temperature, suspended sediments) that exceed water quality
criteria, and must maintain free passage of marine and anadromous
fish,
ii. Causeways and docks shall not be located in river mouths or
Where and How It Is Addressed
Not applicable, no pipelines are proposed for
the winter Exploration Program.
Not applicable, no pipelmes are proposed for
the wmter Exploration Program.
Not applicable, no pipelines are proposed for
the winter exploration program.
Not applicable, no pipelines are proposed for
the winter exploration program.
Not applicable, no pipelines are proposed for
the winter exploration program.
Not applicable, no continuous-fill causeways,
docks, or other permanent structures are
proposed for the winter Exploration Program.
Pioneer Natural Resources Alaska, Inc. page 2
September 2011
2011-2012 North Slope Exploration Program Lease Mitigation Measures
Lease Mitigation Measure Where and How It Is Addressed
deltas. Artificial gravel islands and bottom founded structures shall
not be located in river mouftis or active stream chaimels on river
deltas, except as provided for in measure iii below.
iii. Each proposed structure will be reviewed on a case-by-case basis.
Causeways, docks, artificial gravel islands and bottom founded
structures may be permitted if the Director, in consultation with
ADF&G, ADEC, and the NSB determines that a causeway or other
structures are necessary for field development and that no
practicable alternatives exist, A monitoring program may be
required to address the objectives of water quality and free passage
of fish, and mitigation shall be required where significant deviation
from objectives occurs. (See also Lessee Advisories regarding U.S.
Army Corps of Engineers requirements,)
1. Dismantlement, Removal and Rehabilitation (DR&R): Upon
abandorunent of material sites, drilling sites, roads, buildings or
other facilities, such facihties must be removed and the site
rehabHitaled to the satisfaction of the Director, unless the Director,
in consultation with DMLW, ADF&G, ADEC, NSB, and any non-
state surface owner, determines that such removal and rehabilitation
is not in the state's interest.
Upon completion of drilling and evaluation
operations, any remaining debris will be
hauled to an approved disposal site. Any
discovered spills or ice/snow contamination
occurring on the ice pads or roads will be
chipped or scraped back for pick up and
either, disposed of at a certified disposal
facility, or, as toxicity levels allow, hauled to
the NSB landfill at Prudhoe Bay. Following
the seasonal thaw in the spring the route and
wellsites will be inspected. Any debris wiU
be collected and back hauled for disposal.
If development of the NDSl location is not
continued. Pioneer will abandon the well in
accordance with AOGCC requirements.
Rehabilitation of the sites would then include:
1) Monitoring for 1-3 summers to
determine site thermal stability and
increasing vegetation coverage.
2) If needed, add fertilizer and
indigenous seed treatments to
disturbed areas to promote natural
colonization by indigenous plants.
No invasive plants.
3) Limited mounding or ponding
around the well cellar are acceptable
if it fits with the surrounding area.
4) Monitoring will include
observations regarding the condition
of the disturbed area and an area
undisturbed as a reference site.
m. Gravel mining sites required for exploration and development
activities wiU be restricted to the minimum necessary to develop the
field efficiently and with minimal environmental damage. Where
practicable, gravel sites must be designed and constructed to
function as water reservoirs for future use. Gravel mine sites
required for exploration activities must not be located within an
active floodplain of a watercourse unless the director, DMLW, after
consultation with ADF&G, determines that there is no practicable
No gravel use or mining of gravel is proposed
for the winter Exploration Program.
Pioneer Natural Resources Alaska, Inc.
pages September 2011
2011-2012 North Slope Exploration Program Lease Mitigation Measures
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alternative, or that a floodplain site would enhance fish and wildlife
habitat after mining operations are completed and the site is closed.
Mine site development and rehabilitation within floodplains must
follow the procedures outlined in McLean, R. F, 1993, North Slope
Gravel Pit Performance Guidelines, ADF&G Habitat and
Restoration Division Technical Report 93-9, available from ADF&G.
2, Habitat, Fish, and WUdlife
a. Defoliation of explosives will be prohibited in open water areas of
fish-bearing streams and lakes. Explosives must not be detonated
beneath, or in proximity to fish-bearing streams and lakes if the
detonation of the explosive produces a pressure rise in the water
body greater than 2,7 pounds per square inch, or unless the water
body, including the substrate, is solidly frozen. Detonation of
explosives within or in close proximity to a fish spawning bed
during the early stages of egg incubation must not produce a peak
particle velocity greater than 0.5 inches per second. Blasting criteria
have been developed by ADF&G and are available upon request
from ADF&G. The location of known fish-bearing waters within the
project area can also be obtamed from ADF&G.
The lessee wiU consult with the NSB prior to proposing the use of
explosives for seismic surveys. The Director may approve the use of
explosives for seismic surveys after consultation with the NSB.
b. Removal of water from fish-bearing rivers, streams, and natural
lakes shall be subject to prior written approval by DMLW and
ADF&G. Water intake pipes used to remove water from fish-
bearing water bodies must be surrounded by a screened enclosure
to prevent fish entrainment and impingement. Screen mesh size
shall be no greater tiran 1 mm (0.04 inches), unless another size has
been approved by ADF&G, The maximum water velocity at the
surface of the screen enclosure may be no greater than 0.1 foot per
second/ unless an alternative velocity has been approved by
ADF&G.
c. Removal of snow from fish-bearing rivers, streams and natural
lakes shall be subject to prior written approval by ADF&G.
Compaction of snow cover overlying fish-bearing waterbodies is
prohibited except for approved crossings. If ice thickness is not
sufficient to facilitate a crossing, ice or snow bridges may be
required.
d. Bears:
i. Lessees are required to prepare and implement a human-bear
interaction plan designed to minimize conflicts between bears and
humans. The plan should include measures to:
A. minimize attraction of bears to facility sites, including garbage
and food waste;
B. organize layout of buildings and work areas to minimize
interactions between humans and bears such as including the use of
electric fencing;
C. warn personnel of bears near or on facilities and the proper
Where and How It Is Addressed
Pioneer is not proposing the use of
explosives.
Water will be withdrawn from permitted
sources using ADF&G-certified screens when
in fish-bearing waters.
A bathymetry survey will be conducted this
summer to guide the sea ice route location
and minimize potential impacts to fish.
Pioneer will apply for a Fish Habitat Permit
to authorize the sea ice route if required.
Pioneer has prepared an addendum to the
Oooguruk Unit Plan, approved bear
interaction plan, which includes checking
with ADF&G and USF&WS for derming sites,
FLIR den surveys, and procedures to
minimize attractants and safely respond to
bear encounters,
Pioneer Natural Resources Alaska, Inc.
page 4 September 2011
2011-2012 North Slope Exploration Program Lease Mitigation Measures
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actions to take;
D. if authorised, deter bears from the drillsite;
E. provide contingencies in the event bears do not leave the site;
F. provide for proper storage and disposal of materials that may be
toxic to bears; and
G. document and communicate the sighting of bears onsite or in the
immediate area to all shift employees.
ii. Before commencement of any activities, lessees shall consult with
ADF&G to identify the locations of known brown bear den sites that
are occupied in the season of proposed activities. Exploration and
development activities started between September 20 and May 15
may not be conducted within one-half mile of known occupied
brown bear dens, unless alternative mitigation measures are
approved by ADF&G. A lessee who encounters an occupied brown
bear den not previously identified by ADF&G must report it to the
Division of Wildlife Conservation, ADF&G, within 24 hours. Mobile
activities shall avoid such discovered occupied dens by one-half
mile unless alternative mitigation measures are approved by DO&G
with concurrence from ADF&G. Non-mobile facilities will not be
required to relocate.
iii. Before commencement of any activities, lessees shall consult with
the USFWS to identify the locations of known polar bear den sites.
Operations must avoid known polar bear dens by 1 mile, A lessee
who encounters an occupied polar bear den not previously
identified b>' USFWS must report it to the USFWS within 24 hours
and subsequently avoid the new den by 1 mile. If a polar bear
should den within an existing development, off-site activities shall
be restiicted to minimize disturbance.
e. Permanent, staffed facilities must be sited to the extent practicable
outside identified brant, white-fronted goose, snow goose, timdra
swan, king eider, common eider, Steller's eider, spectacled eider,
and yellow-billed loon nesting and brood rearing areas.
f. Due to high concentrations of staging and molting brant and other
waterbirds within the coastal habitats along the Teshekpuk Lake
Special Area (TLSA) and other areas, operations that create high
levels of disturbance, including but not limited to dredging, gravel
washing, and boat and barge traffic along the coast, will be
prohibited ffom June 20 to September 15 within one-half mile of
coastal salt marshes, specifically Tracts 187, 209, 320, 483-485, 493,
494, 496, 497, 500-514, 517-519, 524, and 530. In addition. Tracts 228
and 231 are subject to the same restrictions between May 15 and July
30 to protect large concentrations of breeding snow geese. The
construction and siting of facilities within one mile of ttiese areas
may be allowed on a case-by-case basis if the Director and ADF&G
determine that no other feasible and prudent location exists.
g. To pTotecV hauled-out spotted seals, boat and barge traffic will be
prohibited between July 15 and October 1 within one-half mile of
the Piasuk River delta and Oarlock Island.
3. Subsistence, Commercial and Sport Harvest Activities.
Where and How It Is Addressed
Pioneer is proposing to use a temporary snow
and ice road system to support the winter
2011-2012 Exploration Program.
Not applicable. Pioneer is proposing a
temporary winter Exploration Program. No
activities will occur ft-om May 15 to
September 15.
Not applicable. Pioneer is proposing a
temporary winter Exploration Program. The
project is not located near the Piasuk River
delta or Oarlock Island.
Pioneer Natural Resources Alaska, Inc.
pages September 2011
2011-2012 North Slope Exploration Program Lease Mitigation Measures
Lease Mitigation Measure Where and How It Is Addressed
a. i. Before submitting a plan of operations for either onshore or
offshore activities that the potential to disrupt subsistence activities,
the lessee shall consult with the potentially affected subsistence
communities, the AEWC, and the NSB (collectively "parties") to
discuss the siting, timing, and methods of proposed operations and
safeguards or mitigating measures that could be implemented by
the operator to prevent unreasonable conflicts. The parties shall also
discuss the reasonably foreseeable effect on subsistence activities of
any other operations in tlie area that they know will occur during
the lessee's proposed operations. Through this consultation, the
lessee shall make reasonable efforts to assure that exploration,
development, and production activities are compatible with
subsistence hunting and fishing activities and will not result in.
unreasonable interfere with subsistence harvests. In order to avoid
conflicts with subsistence, commercial, and sport harvest activities,
restrictions may include alternative site selection, requiring
directional drilling, seasonal drilling restrictions, and other
technologies deemed appropriate by DO&G,
ii. A discussion of resolutions reached or not reached during the
consultation process and any plans for continued consultation shall
be included in the plan of operations. The lessee shall identity who
participated in the consultation and send copies of the plan to
participating communities and the NSB when it is submitted to the
division.
iii. If the parties cannot agree, then any of them may request the
Commissioner of ADNR or his/her designee to intercede. The
commissioner may assemble the parties or take other measures to
resolve conflicts among the parties,
iv. The lessee shall notify the Director of all concerns expressed by
subsistence hunters during operations and of steps taken to address
such concerns.
Pioneer met or spoke with Nuiqsut
stakeholders (Kuupik Corporation, City of
Nuiqsut, Native Village of Nuiqsut, and
Kuukpik Subsistence Oversight Panel) on
March 1, June 14, and August 17 to discuss
the Nuna development and ongoing
environmental and engineering studies.
Community meetings were held in the
Nuiqsut Community Center on the evenings
of March 1 and August 17, 2011. The August
2011 meeting specifically addressed the
proposed exploration activities.
Pioneer met with the NSB on July 6, June 16,
and January 28 and with AEWC on January
28 regarduig the Nuna project.
No subsistence conflicts were identified
during the discussion of the proposed
Exploration Program activities.
Although subsistence hunters may transit the
area, the 2011-2012 Exploration Program is
generally located in an area that supports
limited subsistence activities in winter.
Pioneer maintains a liaison position in
Nuiqsut and, when needed, subsistence
representatives to minimize conflicts with
subsistence activities. Typical tasks for the
liaison includes coordinating with the local
stakeholders, preparing project updates, fact
sheets, and posters for distribution to Nuiqsut
and the villages,
As part of the Oooguruk project. Pioneer
established the Nuiqsut Mitigation Fund,
which provides aimual funding to the
community as compensation for potential
increased subsistence efforts associated with
the project
Pioneer also establishes a Conflict Avoidance
Agreement with the AEWC annually.
b. Traditional and customary access to subsistence areas shall be
maintained unless reasonable alternative access is provided to
subsistence users. "Reasonable access" is access using means
generally available to subsistence users. Lessees will consult the
NSB, nearby communities, and native organizations for assistance in
identifying and contacting local subsistence users.
Neither the project design nor Pioneer policy
will restrict access to subsistence areas.
c. Whale Harvest Protection:
i. Permanent facility siting on Cross Island will be prohibited unless
the lessee demonstrates to the satisfaction of the NSB, in
consultation with the AEWC, that the development will not
preclude reasonable access to whales as defined in Section AS and as
may be determined in a conflict avoidance agreement, if required by
the NSB, With the approval of the NSB, the Director may authorize
Not applicable. Pioneer is proposing no
activities at Cross Island,
Pioneer Nat ur al Resources Alaska, Inc. page 6
September 2011
2011-2012 North Slope Exploration Program Lease Mitigation Measures
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permanent facihties.
ii. Permanent facility siting in state waters within 3 miles of Cross
Island will be prohibited unless the lessee demonstrates to the
satisfaction of the Director, in consultation with the NSB and the
AEWC, that the development will not preclude reasonable access to
whales as defined in Section 8A and as may be determined in a
conflict avoidance agreement if required by the NSB.
iii. Permanent facility siting in state waters between the west end of
Arey Island and the east end of Barter Island (Tracts 40 through 45)
will be prohibited unless the lessee demonstrates to the satisfaction
of tiie Du-ector, in consultation with the NSB and the AEWC, that
the development will not preclude reasonable access to whales as
defined in M and as may be determined in a conflict avoidance
agreement if required by fhe NSB.
d. Any tract or portion thereof in the Beaufort Sea Areawide sale
area may be subject seasonal drilling restrictions in conjunction with
the submission of a plan of operations permit application by the
lessee.
i. Exploratory Drilling From Bottom-founded Drilling Structures
and Natural and Gravel Islands: Subject to measure iii below,
exploratory drilling operations and other downhole operations from
bottom-founded drilling structures and natural and gravel islands
are allowed year-round in the Central Subsistence Whaling Zone
(SWZ). 1 In the Eastern SWZ, driUing is prohibited upon
commencement of the fall bowhead whale migration until whaling
quotas have been met
ii, Exploratofy Drilling Operations from Floating Drilling Structures:
Subject to measure iii below, exploratory drilling below a
predetermined threshold depth and other downhole operations
from floating drUhng structures is prohibited throughout the
Beaufort Sei upon commencement of the fall bowhead whale
migration ui^til the whale migration mid~point,2
In addition to the above restriction, exploratory drilling above and
below a predetermined threshold depth in the Eastern SWA from
floating drilling structures is prohibited upon commencement of the
fall bowhead whale migration until the whaling quotas have been
met.
In the Central and Western SWZ, exploratory drilling above and
Where and How It Is Addressed
Not applicable. Pioneer is proposing no
activities within 3 miles of Cross Island.
Not applicable. Pioneer is proposing a
temporary winter exploration program which
is not located in the vicinity of Tracts 40
through 45,
Pioneer is proposing a temporary winter
exploration program. The proposed activities
will not occur during the subsistence whaling
season. The project is located in the Central
SWZ. Drilling activities will not occur during
the fall whale migration and therefore,
seasonal drilling activities do not apply.
Pioneer is proposing a temporary winter
exploration program. The proposed activities
will not occur during the subsistence whaling
season. The project is located in the Central
SWZ, Drilling activities will not occur during
the fall whale migration and therefore,
seasonal drilling activities or restrictions of
non-essential activities do not apply.
1 Subsistence Whaling Zones:
Eastern SWZ is that area within 20 nautical miles of the shoreline between 141 and 144 W longitude.
Central SWZ is that area within 20 nautical miles of the shoreline between 144 and 151 W longitude.
Western SWZ is that area within 20 nautical miles of the shoreline between 154 and 157 W longitude.
^ Migration Dates:
Eastern SWZ - September 1 - October 10 with the midpoint of the migration on September 20.
Central SWZ and Westem SWZ - September 10 - October 20 with the midpoint of the migration on Central SWZ and Western SWZ -
September 10 - October 20 with the midpoint of the migration on September 28.
Outside SWZ - Seaward of the Eastern SWZ - September 1 - October 10 with the midpoint of the migration on September 20;
Seaward and west of the Central SWZ - September 10 - October 20 with the midpoint of migration on September 28. The midpoint
of the migration is when 50 percent of the whales have been deemed to have passed the drill site.
Pioneer Natural Resources Alaska, Inc.
page? September 2011
2011-2012 North Slope Exploration Program Lease Mitigation Measures
Lease Mitigation Measure
below a predetermined threshold depth may be prohibited on a
case-by-case basis until the whaling quotas have been met.3 The
following criteria will be used to evaluate these operations: 1)
proxunity of drilling operations to active or whaling areas, 2)
drilling operation ^ p e and feasible drilluig alternatives, 3) number
of drilling operations in the same area, 4) mmiber of whaling crews
in the area, and 5) the operator's plan to coordinate activities with
the whaling crews in accordance with Mitigation Measure A3a.
All non-essential activities associated with drilling are prohibited in
the Central SWZ during the whale migration until whaling quotas
have been met. Essential support activity associated with drilling
structures occurring within active whaling areas shall be
coordinated with local whaling crews in accordance with the
Mitigation Measure A3a.
"Essential activities" include those necessary to maintain well
control, maintain physical integrity of the drilling structure, and
scheduled crew changes. Support craft include aircraft, boats, and
barges. "Non-essential activity," by exclusion, are those activities
that do not fit the definition of essential activities. Both types of
activities must be described by the operators in their exploration
plans submitted for state review. To the extent feasible, mobilization
or demobilization of the drilling structures should not occur during
the whale migration. If operators propose to mobilize or demobilize
during tlie whale migration, they must describe the activity in their
exploration plan and must demonstiate why the activity must occur
during the migration period.
iii. Exploratory Drilling in Broken Ice: Lessees conducting drilling
operations during periods of broken ice must:
(A) be tiained and qualified in accordance with Minerals
Management Service standards pertaining to well-control
equipment and techniques; and
(B) have an oil spill contingency plan approved by the slate that
includes requirements for in situ igniters, fire resistant boom, relief
well plans, and decision process for igniting an uncontiolled release
of oil;
(C) participate in an oil spill research program.
e. Exploration, development and production activities located
on lease tracts 1 through 26 shall be conducted in a manner that
prevents unreasonable conflicts between oil and gas activities and
subsistence whale hunting.
i. Before submitting a plan of operations for activities on lease
tracts 1 through 26, the lessee shall consult with the NSB, the AEWC,
and the community of Kaktovik to discuss how the siting, liming,
and metiiods of proposed operations can be planned and carried out
to avoid potential conflicts with subsistence whale hunting.
Through this consultation, which may include the negotiation of a
conflict avoidance agreement, the lessee shall make every reasonable
Where and How It Is Addressed
Not applicable. Pioneer is proposing a
temporary winter exploration program, with
no activities during broken ice.
Not applicable. Pioneer is proposing a
temporary winter Exploration Program. The
proposed activities will not occur during the
subsistence whaling season or on lease tiacts
1 through 26.
^ If upon review of the proposed operation using the above described criteria, the state determines that conflict with subsistence
whaling activities may occur, additional drilling restrictions, similar to those imposed for the Eastern SWZ, may be imposed in the
Central and Western SWZ's. In the Eastern SWZ, drilling is prohibited upon commencement of the fall bowhead migration until
whaling quotas have been met.
Pioneer Natural Resources Alaska, Inc. pages September 2011
2011-2012 North Slope Exploration Program Lease Mitigation Measures
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effort to ensure that their activities will not result in unreasonable
interference with subsistence whale hunting.
ii. A plan of operations for activities on lease tracts 1 through 26
shall include a discussion of the consultation process and any
resulting conflict avoidance agreements. In the event that no
agreement is reached, the lessee, the NSB, the AEWC, or the
community of Kaktovik may request that ADNR call a meeting of
representatives of the NSB, the AEWC, the community of Kaktovik,
and the lessee to discuss the potential conflict caused by the
proposed activities, and attempt to resolve the issues. If the parties
are still unable to reach an agreement, then ADNR will make a final
determination of the measures proposed to be taken to prevent
unreasonable interference with subsistence whale hunting.
4. Fuel, Hazardous Substances, and Waste
a. Secondary contairunent shall be provided for the storage of fuel or
hazardous substances.
b, Containers with an aggregate storage capacity of greater than 55
gallons which contain fuel or hazardous substances shall not be
stored within 100 feet of a waterbody, or within 1,500 feet of a
current surface drinking water source.
c. During equipment storage or maintenance, the site shall be
protected from leaking or dripping fuel and hazardous substances
by the placement of drip pans or other surface liners designed to
catch and hold fluids under the equipment, or by creating an area
for storage or maintenance using an impermeable liner or other
suitable containment mechanism.
d. During fuel or hazardous substance transfer, secondary
containment or a surface liner must be placed under all contamer or
vehicle fuel tank inlet and outlet points, hose connections, and hose
ends. Appropriate spill response equipment, sufficient to respond to
a spUl of up to 5 gallons, must be on hand during any transfer or
handling of fuel or hazardous substances. Trained personnel shall
attend tiansfer operations at all times.
e. Vehicle refueling shall not occur within the annual floodplain,
except as addressed and approved in the plan of operations. This
measure does not apply to water-borne vessels.
f. All independent fuel and hazardous substance containers shall be
marked with the contents and the lessee's or contractor's name
using paint or a permanent label.
Where and How It Is Addressed
Impermeable lining and diking will be used
for all oil storage facilities.
A waiver wiU be required to store fuel and
hazardous substances within 100 feet from
the Colville River/ Harrison Bay for the
Sikumi Well No ,1 wellsite. Fuel and
hazardous substances shall not be stored
within 1,500 feet from any surface drinking
water source.
Storage or maintenance of equipment
containing fuel or hazardous substances will
be on drip pads or within lined secondary
containment.
Pioneer will follow standards in the Alaska
Safety Handbook and North Slope
Environmental Field Handbook for fuel and
hazardous substance transfers to portable
tanks and equipment, including the use of
secondary containment, monitoring, and the
availability of spill response materials.
In general, vehicles wiU not be fueled within
the annual floodplain. There may be some
equipment that requires fueling on the
floodplain during operations of the sea ice
pad and ice road constiuction and
maintenance. Refueling will take place on the
Sikumi #1 well pad, located immediately
offshore of the Colville River Delta. Specific
approval for this equipment and a waiver
will be requested from DNR if needed.
Containers will be appropriately labeled.
Pioneer Natural Resources Alaska, Inc.
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2011-2012 North Slope Exploration Program Lease Mitigation Measures
Lease Mitigation Measure
g. A fresh water aquifer monitoring well, and quarterly water
quality monitoring, is required down gradient of a permanent
above-ground liquid hydrocarbon storage facility.
h. Waste from operations must be reduced, reused, or recycled to
the maximum extent practicable. Garbage and domestic
combustibles must be incinerated whenever possible or disposed of
at an approved site in accordance with 18 AAC 60. (See also Section
B2 below.)
i. New solid waste disposal sites will not be approved or located on
state property during the exploration phase. Exceptions may be
providing for drilling waste if the facility complies with the
applicable provisions of 18 AAC 60.
j . Whenever practicable, the preferred method for disposal of muds
and cuttings from oil and gas activities is undergroimd injection.
Other methods of disposal shall be allowed only upon approval by
the Director, in consultation with ADEC and ADF&G.
k. Proper disposal of garbage and pufrescible waste is essential to
minimize attraction of wildlife. Tl\e lessee must use the most
appropriate and efficient method to achieve this goal. The primary
method of garbage and pufrescible waste is prompt, on-site
incineration in compliance with state of Alaska air quality
regulations (18 AAC 50). The secondary method of disposal is on-
site frozen storage in animal-proof containers with backhaul to an
approved waste disposal facility. The tertiary method of disposal is
on-site noii-frozen storage in animal proof containers with backhaul
to an approved waste disposal facility. Daily backhauling of non-
frozen waste must be achieved unless safety considerations prevent
it.
5. Access
a. Except for approved off-road fravel, exploration activities must be
supported only by ice roads, winter frails, existing road systems or
air service- Wintertime off-road fravel across tundra and wetiands
may be approved in areas where snow and frost depths are
sufficient to protect the ground surface. Surrmiertime off-road fravel
across tundra and wetiands may be authorized subject to time
periods and vehicle types approved by DMLW. Exceptions may be
granted by the director of the DMLW. Exceptions may be granted
by DMLW/ and the Director, if an emergency condition exists; or, if
it is determined after consulting with ADF&G that travel can be
accomplished without damaging vegetation or the ground surface.
b. Public access to, or use of, the lease area may not be restricted
except within the immediate vicinity of drill sites, buildings, and
other related facilities. Areas of restricted access must be identified
in the plan of operations. Lease facilities and operations shall not be
located so as to block access to or along navigable or public waters
as defined in AS 38.05.965.
Where and How It Is Addressed
Not applicable, there are no permanent
storage facilities for this project.
Pioneer wiU reduce, reuse, or recycle solid
wastes generated from development as
practicable. Garbage and domestic refuse
will be disposed of at NSB Service Area 10
facilities. Waste disposal is discussed in
Section 7 of the Plan of Operations.
No surface disposal sites are proposed.
Drilling mud and cuttings will be disposed of
by tiansporting to a certified processing and
disposal facility at an approved injection well
in Oooguruk, Prudhoe Bay or Kuparuk
infrasfructure. No surface disposal of muds
Of cuttings will occur.
Garbage and pufrescible wastes wUl be
collected in animal-resistant containers and
then disposed of at NSB Service Area 10
facilities.
Pioneer is proposing to use a temporary snow
and ice road system to support the winter
2011-2012 Exploration Program.
Only the immediate vicinity of the wellsites
will be closed to the general public for
purposes of safety.
Pioneer Natural Resources Alaska, Inc. page 10
September 2011
2011-2012 North Slope Exploration Program Lease Mitigation Measures
Lease Mitigation Measure
6. Prehistoric, Historic, and Archeological Sites
a. Prior to the construction or placement of any sfructure, road, or
facility resulting from exploration, development, or production
activities, the lessee must conduct an inventory of prehistoric,
historic, and archeological sites within the area affected by an
activity. The inventory must include consideration of literature
provided by the NSB, nearby communities. Native organizations,
and local residents; documentation of oral history regarding
prehistoric and historic uses of such sites; evidence of consultation
with the Alaska Heritage Resources Survey and the National
Register of Historic Places; and site surveys. The inventory must
also include a detailed analysis of the effects that might result from
the activity.
b. The uiventory of prehistoric, historic, and archeological sites must
be submitted to the Director, and to DPOR Office of History and
Archaeology who will coordinate with the NSB for review and
comment. If a prehistoric, historic, or archeological site or area could
be adversely affected by a lease activity, the Director, after
consultation with DPOR Office of History and Archaeology and the
NSB, will direct the lessee as to the course of action to take to avoid
or minimize adverse effects.
c. If a site, structure, or object of prehistoric, historic, or
archaeological significance is discovered during lease operations,
the lessee must report the discovery to the Dfrector as soon as
possible. The lessee must make reasonable efforts to preserve and
protect the discovered site, sfructure, or object from damage until
the Director, after consultation with DPOR Office of History and
Archaeology and tiie NSB, has directed the lessee as to the course of
action to take for its preservation.
7. Local Hire, Communication, and Training
a. Lessees are encouraged to employ local and Alaska residents and
contractors, to the extent they are available and qualified, for work
performed in the lease area. Lessees shall submit, as part of the plan
of operations, a proposal detaUtng the means by which the lessee
will comply with the measure. The proposal must include a
description of the operator's plans for partnering with local
communities to recruit, hire and train local and Alaska residents and
confractors. The lessee is encouraged, in formulating this proposal,
to coordinate with employment and training services offered by the
State of Alaska and local communities to train and recruit
employees from local communities.
b. A plan of operations application must describe the lessee's past
and prospective efforts to communicate with local communities and
interested local community groups.
c. A plan of operations appUcation must include a fraining program
for aU personnel including contractors and subconfractors. The
program must be designed to inform each person working on the
project of environmental, social, and cultural concerns that relate to
that person's job. The program must use methods to ensure that
personnel understand and use techniques necessary to preserve
Where and How It Is Addressed
A cultural resource survey was conducted.
The proposed project wiU have no effects on
the sites identified.
The cultural resource survey will be
submitted to SHPO and the NSB.
Any discovered sites will be protected until
consultation witii SHPO and NSB.
Pioneer places hiring preference on Alaskans.
Local hire will be encouraged, as discussed in
tite Plan of Operations.
Community oufreach and public involvement
are discussed in the Plan of Operations.
Pioneer has a fraining program for aU onsite
employees and confractors addressing
environmental, cultural, and social issues, as
discussed in the Plan of Operations.
Pioneer Natural Resources Alaska, Inc. page 11
September 2011
2011-2012 Nor t h Slope Exploration Program Lease Mitigation Measures
Lease Mitigation Measure
geological, archeological, and biological resources. In addition, the
program must be designed to help personnel increase their
sensitivity and understanding of community values, customs, and
lifestyles in areas where they will be operating.
Where and How It Is Addressed
Pioneer Natural Resources Alaska, Inc. page 12 September 2011