If the well had been in a different location or drilled to a shallower depth, there would have been alternative methods of drillpad construction, provisions for water use, and different time constraints on operations which would have been appropriate for another location and depth. However, because of the depth of the well (15,193 feet) and the concern for waterfowl habitat and the potential use of the area by caribou in late June and early July for insect relief, there was a need for a drillpad which would afford protection of the permafrost during the summer months when operations were suspended. If the geologic target had required a shallower test well on the order of 6,000-7,000 feet, the drillpad could have been constructed of snow and ice or a combination of snow, ice, and timber. Given the particular site specific circumstances, other alternatives which could provide a suitable drillpad include conventional a gravel pad (five foot layer of gravel on the tundra) or thin pad construction (a one foot layer of gravel over styrofoam insulating material). It is important that the regulating agencies retain the flexibility to require the most feasible type of operation from the standpoint of economic viability, safety, environmental protection, and proven technology. Limited time constraints on operations appear to be warranted in areas of high use by wildlife. However, shutdowns should not be imposed without justification because such requirements are extremely costly. Year-round exploratory drilling has been done many times in the arctic and, if justified, can be done without significant environmental impact. Problems with the availability of fresh water have been raised as a potential problem for operations on the Coastal Plain. The fact is there are many ways to provide sources of fresh water on the North Slope, and the ANWR Coastal Plain is no exception. In the case of the KIC #1 operation, water was available from a - Page 11 nearby lake with sufficient depth to provide a winter supply. If this source had not been available, desalinization of nearby salt water or well water could have provided a source of fresh water. Another alternative is the collection of snow and the use of a snow melter. In fact, over 80% of the water used for the construction of the airstrip during the first year of operations and the ice road across the tundra to the freshwater lake for both seasons was in the form of collected snow. The important point to remember is that fresh water availability on the Coastal Plain is no different than other areas of the North Slope where industry has drilled many exploratory wells. Industry has developed a variety of techniques for mobilizing and conducting exploratory drilling in the arctic. These techniques provide solutions to potential problems with exploratory drilling on the Coastal Plain. Industry has the proven capability to conduct exploratory drilling on the Coastal Plain with minimal impact to the environment and wildiife of the Coastal Plain. Thank you for the opportunity to testify on behalf of Chevron. - Page 12 Briefing Paper ANWR COASTAL PLAIN DEVELOPMENT TIMING The final 1002 report recognizes that it there are commercial finds of o made today in the Coastal Plain it could take as long as 10 to 15 years beto those resources could be brought to production (page 190). The attach figures and following discussion gives some past history on North Slo development and provides the rationale for expecting such long lead times bring reserves to market. Figure 1 illustrates the phases of development of some of the major oil fiel of the North Slope. While there were political, economic, and environment: factors affecting the Prudhoe Bay oilfield development timing which firs delayed then expedited production of that super-giant field, oil began flowir through the trans-Alaska Pipeline Systems (TAPS) in 1977 about 13 years afte initial exploration and about nine years after discovery. Although, the Lisburne and Kuparuk oilfields were discovered about the sam time as Prudhoe Bay, development of these fields was deferred for severa years pending development of the super-giant Prudhoe Bay field and TAPS Depending upon the order and size of discoveries, it is likely that a fiel large enough to justify development would be developed first followed by othe fields. For information Kuparuk production began in late 1981, nearly 1 years after discovery and Lisburne production began in 1986, about 18 year after discovery. A more recent development, the Endicott oilfield., is due t begin production in late 1987, almost ten years from discovery. < Based on past experience, Figure 2 provides a more detailed breakdown of likely timing of events from the leasing decision to first production from the ANWR Coastal Plain. This figure illustrates that first production from the Coastal Plain would not occur until about the year 2002. The almost nine years from discovery to first production allows for three years of delineation drilling: three years planning, design, EIS processing and permit acquisition; and almost three years for development drilling, construction of facilities and pipeline(s) and start-up. Factors which could extend development tim after discovery include seasonal restrictions on delineation drilling a construction; regulatory framework; size and location of the reservoir(s stipulations and mitigation requirements on development permits and approval< and litigation on EIS and permit decisions. Figure 2 illustrates timing t initial production. Peak production would occur some years later. |