032123-C-8 Corresp. Sakashita2.pdf — Long Beach City Council, March 21, 2023

C-8 Correspondence – Miyoko Sakashita

From: Miyoko Sakashita [mailto:[email protected]] Sent: Tuesday, March 21, 2023 3:28 PM
To: CityClerk <[email protected]>
Subject: CBD Sources Part 1.5

-EXTERNAL-

__________________________________________
Miyoko Sakashita
Oceans Director | Senior Counsel
Center for Biological Diversity
1212 Broadway, Suite 800
Oakland, CA 94612
tel. 510-844-7108 | [email protected]
@endangeredocean | Center for Biological Diversity

- RERORT-OF-OCCURRENCE-. rypE_C _________ D..ale_ll,8-JJ__ __ _ Operator Berry Petroleum Representative Aubry Branson
Occurrence Detected August 8 , 2011
month, day year
Occurrence Ended ---'A-"u"'g"'u"'st"'8"-:;,,,---___ , 2011 month, day yesr
Field Midway-Sunset
.1.Q.QL am/pm
2200 am/pm
Sec., T., R. 2 31S/22E
LOCATION Midway-Sunset
Phone 213-7508
Lease and Well Southwestern 4737
Other Location Description Nearest well is Southwestern 4737. This surface location is within a couple hundred yards of the June 12, 2011 reactivation of surface expression 24. This is the 34ffi surface expression in Berry's North Midway production area.

O.E.S. Notified? 11-4692 (toll-free number: 800-852-7550) ---"'------
DOGGR Notified by (Name, Affiliation, Phone Number, and Time) Aubry Branson, Beney Safety Supervisor, 213-7508, 1130 hrs Volume of Spill Less than 5 bbls bbls oil bbls water
-----------
Areal Extent Diatomaceous earth mixed with water and oil. Mound 40' x 50' x 5', Spray 70' x 50', Debris expelled vertically to at least 60 '
Property or Waterways Damaged or Threatened N/A
-----------------------
Weather and Sea Conditions (Offshore Spills Only) N/A
~--------------------~-------------
Injuries N/A
----~------------------------------------~----------~
Source and Cause of Occurrence Steam injection over formation fracture gradient into shallow diatomaceous oil reservoir, forcing formation materia! with water and oil to surface.

Containment and Cleanup After confidence is established that expression activity is finished, ground will be tested for stability, the expelled material removed, and the vent will be excavated to determine the subsurface cavity's extent, if any. Site will be backfilled and compacted. Markers and barriers will be placed.

Operator Plans to Prevent Reoccurrence Six wells have been shut in. Complete surface expression activity ceased 12 hours after wells shut in. Subsurface geological and reservoir studies will be conducted to determine future steam injection activity. or Cleanup Cost
----------~--
Additional Information This surface expression occurred at the comer of a terraced area that included many steam lines, steam line header, storage tanks and storage shed. A short time prior to the surface break through, a truck was driven over the vent location to near the storage shed. After the surface expression activitybegan the worker was isolated at the location, the surface expression blocking vehicle movement. The worker evacuated the site safely by walking around the surface expression. A 300' restriction zone around the site was established with 3 security guard stations at access points. This is a BLM lease and personnel from that agency responded to the event. According a Berrv employee other past surface expressions have also ejected fluid and material tens of feet vertically.
(Use reverse side If additional space Is needed.)
Report Prepared bY---"M",ic",h",a"e,--1 T'-'o"'la~n!::d _________________ Date Aug ust 10, 2011 OG184 (31gB)

)
r
REPORT OF OCCURRENCE TYPE C Date 9-28-11
Operator Berry Petroleum
Occurrence Detected August 28
month, day
Occurrence Ended August 29
I!l0nlh, day
Field Midway-Sunset
Representative Aubrey Branson
2011
year
, 2011
year
~ am/pm
0400 . am/pm
Sec., T., R. 2 T31 S/R22E
--,---
LOCATION Midway-Sunset
Phone 661-213-7508
Lease and Well Southwestern
Other Location Description Near well 48-36. Approximately 100' northwest of surface expression 34 DES. Notified? 11-5097 (toll-free number: 800-852-7550) -------
DOGGR Notified by (Name, Affiliation, Phone Number, and Time) Aubrey Branson 661-213-7508. On call engineer notified at 1130 hrs.

Volume of Spill 206 bbls fluid & mud bbls oil; bbls water -----------
Areal Extent Approximately 40' X 50', up to 4' high.

Property or Waterways Damaged or Threatened N/A
------------------------
Weather and Sea Conditions (Offshore Spills Only) N/A
-------------~--------
Injuries NIA
------------------------------------
Source and Cause of Occurrence Steam injection over formation fracture gradient into shallow diatomaceous oil reservoir, forcing formation material with water and oil to surface.

Containment and Cleanup After confidence that expression activity has terminated, ground will be tested for stability, the expelled material removed, and the vent will be excavated to determine the subsurface cavity's extent, if any. Site will be backfilled and compacted. Markers and barriers will be placed.

Operator Plans to Prevent Reoccurrence After surface expression activity began, flow back on area wells was increased to help relieve pressure. Area has not been steamed since the August 8 surface expression 34 erupted.

Estimate of Property Damage (dollar loss) 0" Cleanup Cost -------------
Additional Information Two brief high pressure releases occurred as activity began, both expelling fluid to an estimated height of 60', The first release lasted 5 to 7 minutes followed 20 minutes later by a second release of shorter duration. Aftel" a few hours of . low intermittent eruption activity, the surface expression continued to "bubble" until 0400 hrs on 8-29-11. Total from time from. initiation of activity to complete inactivity was approximately 2J.5 hrs. As reported by a Berry employee, a shorl, sharp ground tremor was felt immediately priol" to first high pressure release, Site visited by on call engineer Nancy Irving on August 28,2011 al approximately 1245hrs and Michael Toland all August 29,2011 . al approximately '1000 hI's.
(Use reverse side If additional space is needed.)
Report Pn::pmed by Michael Toland Date August 29, 2011

,
REPORT OF OCCURRENCE TYPE C/O Date 10/4/11
Operator Berry Petroleum Representative Aubrey Branson
Occurrence Detected October 4 , 2011 ill..1L am/pm
month, day year
Occurrence Ended Ongoing as ofiO/7 , 2011 am/pm
, month, day year
Field Midway-Sunset Sec., T., R. 331S/22E
~---
LOCATION Midway-Sunset
Phone 661-213-7508
Lease and Well Belgian
--=------
Other L()cationDescription'Reactivation of surface expres~ion#1 a, approximately 200' northwest of well 23-1 9. fluid surfaced from 12" to 14" hole adjacent to the cement base pad for the French drain installed to capture fluid from surface expression #18 OES. Notified? 11-5885 (toll-free number: 800-852-7550) --------
DOGGR Notified by (Name, Affiliation, Phone Number, and Time) Aubrey Branson, Berry Petroleum, 213,7508, 0945 hrs.

Note: This is 8 Y, hours after detection. Cal EMA was notified at 0938 hrs.

Volume of Spill 175 bbls as of 10/6/11 bbls oil; 475 bbls as of 10/6/11 bbls water Areal Extent Approximately 2 to 10 yds x 300 yds across terrace and down surface road, approximately 50 yds down terrace slope and 50 yds down dry creek bed.

Property or Waterways Damaged or Threatened Approximately 50 yds of a dry, unnamed, ephemeral stream bed.

Weather and Sea Conditions (Offshore Spills Only) N/A
--------------------~----------~---
Injuries N/A
------~---------------------------
Source and Cause of Occurrence Steam injection over formation fracture gradient into shallow diatomaceous ail res8Noir, creating fractures that allow formation water and oil to surface.

Containment and Cleanup Backhoe, vacuum trucks and hanc crews. Biologist from McCormick Environmental confirmed no wildlife take during spill and no threat to wildlife during cleanup. Accelerated Environmental was contracted to perform removal of fluid from terrace slope and creek bed. Fish and Game approved cleanup plan and signed off on completion of cleanup on 10/6/11.

Operator Plans to Prevent Reoccurrence Three vicinity wells that were on injection, 27-19, 24-18 and 23-21 and were immediately shut-in. Evaluation of area steam injection history, as well as tilt meter data to be performed.

Estimate of Property Damage (dollar loss) or Cleanup Cost --~----------~-----
Additional Information This is a low energy reactivation of surface expression #18 that first occurred approximately two years ago and reportedly had several reoccurrences of breakthroughs in the immediate vicinity over an unconfirmed amount of time; Information regarding surface expressions is incomplete during this period. An indication of the. area of concern for surface expression #18 is the approximate 100' x 30' restrictive barrier around the site. This particular site, however, has not had allY surface expression activity during the past year. A 73 bbl surface expression occurred approximately 300' northwest of this site, near well 24-18 on 10/8/10.

A vertical French Drain and pump were placed at the surface expression #18 location. Pumps are installed with a French drain over a surface expression when the amount of seepage economically wan'ants the cost, replacing of vacuum trucks. A horizontal drain was also installed 'in the subsurface atthis location after the initial surface expression activity . . Area around surface expression has been bermecl to capture the continuing minor flow of fluid. (Use reverse side if additional space is needed.)
Report Prepared by---"M~ic",h""a"e"-I-cT",a=la",n,,,d __________________ Date 10/7/11 OG184 (3198)

August 24,2011
Mr. Dan Wermiel
State of California, Department of Conservation
Division of Oil, Gas and Geothermal Resources
4800 Stockdale Highway
Suite 417
Bakersfield, CA93309
Subject: Cause and Prevention Plan for Surface Event SE 2011-8-8 Berry Petroleum Company, Project #46400390
Southwestern Lease, Section 2, T31S, R22E, MDBM
Midway Sunset Field
Kern County, CA
Dear Mr. Wermiel:

Included in this document is a description of the activity that caused surface event SE 2011-8-8, including ground monitoring daily reports for the five previous days leading up to the surface expressions, and what steps Berry Petroleum Company (Berry) is taking to prevent further surface expressions in the area. Following the corrective action outlined in this report, there has been no reoccurrence of flow at the surface event location.

Summary of Event:

The event was identified around 11 :OOam on August 8, 2011. All activity at the event had completely ceased by 10:00pm the same day following actions taken to remove steam from the area. The event consisted primarily of dry steam with trace amounts of oil, affecting an area approximately 20 feet by 20 feef.Theflow of steam carried with it soil, creating a cone of soil material surrounding the source of the flow. See Attachment 1 for the approximate location of SE 2011-8-8.

Summary oflnjection Activity and Response:

No wells within 300 feet ofthe smface event location were on inj ection at the time of the event.

The nearest wells and their respective distances from SE 2011-8-8 were as follows:
• SW 48-42 (API# 04030417060000), 500'
• SW 41-37 (API# 04030337470000), 590'
• SW 41-35 (API# 04030337460000), 590'
Based on an analysis of wells with highest cumulative injection volumes, SW 41-35 and SW 41- 37 were removed from steam immediately. Activity at the event location gradually subsided lill!il completely stopping around I 0:00pm that evening. Refer to Attachment 2 for a summary of injection pressure and rate data for these wells for the five days prior to the event, and those noted during and subsequent to the surface expression.

It should be noted that tiltmeter ground monitor.ng reports did not indicate any fracture activity in the area of the surface event at the time of the event. Please see Attachment 3 for a copy of all fracture reports received by Berry over the five days prior to the surface event and including the day of.

Berry followed all company safety response procedures in responding to the surface event. See Attachment 4 for a copy of Berry's standard safety response for surface events.

Cause:

An analysis of well perfonnance in the area of the surface event indicates that the wells removed from steam in response to the surface event were 'not directly connected to the surface event. No abnonnal injection rate or pressure behavior was observed with either ofthe wells. The subsequent flowbacks for each well exhibit a sustained pressure response, indicating the injected fluid was contained local to the wellbore making it highly unlikely the wells were connected to the event located 590 feet away. See Attachment 1 for the injection pressure and rate data for the five days prior to the surface event.

The analysis instead identified two wells, on flowback at the time of the event, with abnormal pressure profiles preceding the event which were determined to be the cause of the event. The two wells identified are as follows: .
• SW 45-37 (API# 04030336950000)
• SW 42-40 (API# 04030337510000)
Neither of the two wells were on steam at the time ofthe surface event, but both experienced similar increasing pressure trends over the month prior indicating the wells were in co=unication with each other. Based on the pressure and temperature data recorded over this time period, it was determined that the well SW 42-40 was on steam injection, although its operating status was set to flowback. SW 45-37 exhibits a similar, lower magnitude pressure trend over the same time period, indicating it was likely providing pressure relief to the prolonged steam injection into SW 42-40. On 81712011 at 9:00pm, SW 45-37 was removed from flowback and placed on soak in response to high facility pressures resulting from field compression constraints. SE 2011-8-8 was reported at 11 :OOam the following morning, located 200 feet away from SW 45-37. See Attachment 5 for the pressure and temperature data for the two wells for the 30 days prior to the event.

Preventiou Measures:

To prevent future flow activity at SE 2011-8-8 the two wells identified above (SW 45-37, SW 42-40) have been locked and tagged out and removed from the active steam rotation. The wells will continue to be used for pressure surveillance in the area to identify any abnormal pressure trends that could precede a reactivation of the surface event. The wells will be evaluated for recompletion or workover potential and the DOGGR will be notified of any proposed alterations to the wells.

Berry performed a cause mapping exercise following the conclusion of the event to determine how a well was on injection with an incorrect status. The outcome of the cause mapping exercise was to determine why it happened, and how it can be prevented from happening again.

The root cause was determined to be that a special event (power failure, co=unication errors, facility upsets) distracted the operator that originally switched the well into steam from correctly updating the status of the well in the computer system. To prevent this same mistake from happening again, a number of action items were identified as follows:
• Operations team to walk headers daily to verify well status matches actual status • Create visual aids to identify which wells are actively injecting on a header • Add limit switch to the steam valve that automatically updates well status (no operator input required)
• Evaluate automation of on/off steam control to automatically update status (no operator input required)
• Create a visual aid to identify abnormal pressure conditions while on flowback Berry has implemented, and is in the process of implementing each of these action items to ensure that the root cause for this failure is not repeated. Berry continues to utilize Cause Mapping and Root Cause Failure Analysis to continuously improve its efforts to prevent surface events.

Steam Re-Initiation Plan:

It is proposed that steam be re-introduced to the surrounding area. For all wells that fall within a 150 foot radius of the surface event location and the two wells identified as being connected to the surface event (SW 45-37, SW 42-40) it is proposed that steam be re-initiated one well at a time. This strategy will allow Berry to quickly identify and remove steam from the offending well if any activity is noted at the surface event location during the steam re-initiation process.

Once each well has been cycled, and confirmed to not be connected to the surface event, cyclic operations will continue as normal. Any additional activity at SE 2011-8-8 resulting from re initiation of steam to the area will be reported to the DOGGR i=ediately.

Sincerely,
Marc Whitezell
Diatomite Technical Team Lead
Berry Petroleum Company
5201 TruxtunAvenue, Suite 300
Bakersfield,CA 93309-0640
Approval of Steam Re-Initiation Plan:

Dan E. Wermiel
Senior Oil and Gas Engineer
State of California, Department of Conservation
Division of Oil, Gas and Geothermal Resources
4800 Stockdale Highway
Suite 417
Bakersfield, CA 93309
Date:

Date:

Attachment 1
Approximate Location of SE 2011-8-8
Southwestern Lease, Section 2, T31S, R22E, MDBM
Midway Sunset Field
Kern County, CA
9·37
SW42·36i!1.

I
SiN41·371
•
SN45-37
•
SVVTO 17
• SI/'J 44-38
•
~'47·3711.\
• SE 2011·8·8
SJf114S.3i1i
•
47-3ge
SiN 45-3ge
•
Sl/'J50·38e
\
9N48-40i!l.

Sl/\I43-39
• ~.\ 'StN 47-41 e ..

Y SVV5)Jl
SW49-t¥i!I.
-
SN 43-41 II
•
S1/1148-42i!1. ,
St/II~-42i!1.

Attachment 2
PressurelRate Data/or wells: SW 41-35, 41-37A&B, 48-42A&B

Attachment 3
Tiltmeter reports during 5 days prior to SE 2011-8-8
Approximate location ofSE 2011-8-8 identified by red star l
i Bern: S~uth'~'('stenl Lease
Rese~"Yoir Monitol'ting Event Locat-or
ETEl'I"TSTART,O&I01fl{)11 10:lOhn
E\"E~--r~"D,O&i04/20l1 09:30!m;.

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De~ih= 6:1l01ft. Top DiltOmit-e =459 ft Differ"""" = _221 ft Errrn: Rounds = 610· to 7i1l'
Frm::ture Stril::eArimuth = &5 de~
Fracture Dip = :20 de~ SE
E:S1i.w.aled Fractur" Diamete:r = 590 ft.
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Depth = 540 it Top Diatomite ="629 it Difference ~ +89 ft En;or&ullds=4S0'to 600'
Fw:tul'e SlrikeAzimuth.~}9 deE..

Fracture Dip = 18 ck,~ SE -
&timated Fmctrrre DirunEter =410 ft.

Growth Cent~l' Coordinates
"Ir'L~m7 wring= U27461 NClrthillg =643103-
KIDS] Euting=603&&53 Nonbillg=~SJ62~
[No:umw.u.
twoll Di;t.{~j)
I
,;::;::: ::

SW-llr--14 141
SW#-4<l lSI
SW-4-;-43 16'l
S1.V.41t-1<S 1]1
1 ";;;;0;,,;,;; " ">1
WoD ~(fI) w.n
I'''H' ::~ L'
;"N,'A
rnA
~=~=-:=,-" >---
Dist.~l
,*"A
m'A
;;%'A
~A
,owA
Notes;
'hc=dingto <i;:,1ly .injection infoonatioo,'this =t beg;m tw<> cbys :~ tlte sVe3lll:'Imrt~. furnearoy .well47-43 amit:il<led COIlC\l.U.ffitly "witJJ. the'solik:trm.doc this ~~ This well,,'1ls therefore the S<J111l:e fur thi!; !':\=t This iWaI}'sis Th'P~ p~'iouslyreportM reml:ts.

I L_
~
~
" ~
£
8460DO
5455DO
1i'\5DIlO
1WJ5DO
M<lO~O
M85UO
&lS{lOO
0}42500
B4:W~O
Southwest,ern
:1>-'1
• ,..!,l=
p.:~ .. ,~,I'"'"
.. ",.,<
. .,,,,,,,
. ''-'' !+<l &P ;,:" ~ ,ol'" ."",. ",~ ...... , ~" "",""'~' ,,, ,. ."" '. ,," "" K ,", ': ?:;I'~:~~~:~~:~Si~~~!~::J;:;S~j;~~, '"-""_ <>--«
• ." • 0"' • "". ,L. ~, "'"'~ 0", • '''0'. "'~, • "''' • 'M ,. • .. I ""-':1 ........ -1.,....... ....".... ", ... _ """~ • ",,' • ~ -" • "" 0. '. -,' " • ,,~ "0, • ""' ,~ ~',<",/ .n. , •. ~ '".= ''''"0' "'"' ~ _Y_' .~" '_,,>,~ ~,~, 'M •• 'm'~. ,. _ .. , • ,~, ~,_ ,~j ., • ,~,/ ~, ,~ • """. ... W" = _ ',,, , .,,0, I ,', ... , _~~ ~ • = • n,.. .,"'~,o, .'" ''''' '-"-"':' ''. ... 0' .. ~ "0" • ''''' "~I "W;~/ "<:,;"",' '".,J" .... ,1!! .... , ' •• ,~I I~'.~ "',_ • '-' .)' -'~ -~ )- """'1 _. ; •• w. J Ne;:."", , ~/".' . ~/ , ':-'" . .,..,....,. "~ ...... 1' . " ... , ',~ ·l~'{ -4-1, ''"<I;' .. ,,-" ~: .-'-,~ :t.:." .,'"" \ ·I"~' ,0- ..... ~J" "J1'.4 I ~~" I . ,'-" '$ t j' 1'" ~·1 ~ . ",,'f ~ • ,"" ".. r,d"" ",oL ,;,.,.~ • " 'M' I;,' • "., , ,,_, "",,,,, " .J ..... '!,1., • 4-," IW,,114,-.~, .'~""'Z.... * .... , "'~"'<-5'1 ''''<l~.'l,= ~-!J.>1 """f~:,.."
Welts
.l Everltcenter
(>" Wells ioSt~'
__ Lease Une" I
~-P"d BouruJane" !
J
.'''~;.II.-'' -""'<"" ... ,. .,~= ,.;,.,.,~ ..... ,
" 9 .":;'.".-' __ '-"":' __ ~=;-__ ,~, "","'~.,;.~" . ,..", l1l2.HOOO 1520000 15:!«5ElD
i52551]0 ,~oo 15.2~O() lti27aoo ~ ~215DlJ 15zeooo
EBsUng {ft.'
Berry Southlvestefn Lease
Reservoir Monitoting Event Londol'
EYENT ST~'\RI: 08iMt2011 09:30 bJ:,
EXL .... 'TB'D,o&iO!I{l-.-Ol1 08:201=
E,~nt Fracrnx~ Pax~m~lers
Deplh'" 465 it, Top Diatowlte = 533 it Difference = +68 ft £nor Bounds""410'to 535'
Fncture StrikeAziluuth= 140 deg..

Fn~tnreDip =23 deg. SW
EstiIrulu.dFracture Di=ler - 21.:'i ft.

Gro\'l1h Cent ... · COllrdilutes
NAD.!7 E;u;ting= 1527646NorthiDg'" 643'H9
NAD8..'\- E..sting - 6089038 Northing - nS394S
l'tooonstW.u,
Iw..n
SW5O-l2
SW49-41
Dist.{t() .1
" " SW~3 lOll
SW4l43X 100
SW4941 113
SWSIO b":!
f
'::"S~;d'I~=~:"
SW4l43X 100
SWSO-H 201
SW5145 ;32
S\.VSl--l<l 4'P
sw4l-n '~=",,==='=
W~ -,~
~- '" SW45-37 ~
SW44-30" ~
SW';3-37 on
S'f;.'42-1l1 =
:Notes:

E,,'ent2011iOSi04A rer:tIlinatedat 08:20 I={lUA~~l 8,2011. TIli~ e'l'e:nt SlattW shortly after ~:S1eam SUllt iIi= ofne..w y wd149--J.1X and e\'=t rod conoel.ilted v;ith the steam end time of t!ill; same '\0\'1:11.

SW 49-43X was the source offlllio e=1. Thi:s Rprnt supersedes.

Ip£evioU!ilyffPorted re$u1ts.
"-~
£
€
0 Z
-"'
M5500
M~'
~~,
644000
Ma.5UO
M3QUO
"""'
"" • ,.J,.=
"'~'4 .1= • .".l.'
. ,."."
· ",..,.

Southwestern
• ~)I~' ""I: !'-:' .. ~ "',.]':. ":~!_ '''10 ..t.o· ... ,"~! ..t..t'''' ...,.]!. ..... '" , .!1,,5 ,"",'" >l..l: n.J7 ---"4 '~',,,,,,, • ": -U," • <~ .,." • .,": .... ,,! • .. .. ...,: ~,.,~ i~ , : ."-'> fvent t .... minat"d. Well 49--43XJ
wa5th"50un:e ofthjs event. j
,. ,~g"'t'~: ,~,. "~: "''',' '.~ .,,' ' .'~'.:, .. "':.", I /.~",,. • r: -",~ , • .n ;' .'~' ,~"" ''''f,,", .. ,,' ,: ,~~;."iI!:" , .. ~, '''-1 ~: '. ,,- ."'~,." ""' .m' .~-~, •. "" .~,/ ~= 7'~ , .. " - , -, ",," ." .. ~ " ~, ,~ ,-, . m,.~j,"''1''.~,' """-,, . '." \,,. "'~ .. G. I, ;;m/.,~ ~ ""';:;~/~,~ ,.~ , ""; ",' , •• " , ""', • , .. : "" " • - / •• ~': ,.hi' :J",,, ',,-_ ~, .. , ~ ""' ' '"-~. Pll.l7 • ";",.,.,. ~,'7""', ~"~I., !+\ : ~7- . ,., .... z' ~~.~?:;-JO.J '.",,'l' .,"". I ....,' ... ,-<1, , ..... I • _ ,..... • .. ,.., I ~~~~, ' ,,']1 • >J..lI • ~"";. • .,,!ttl"," ...., "',1'-" 0 """" ''''','' ,-', - I' .... ·.. I ."' ...... - '" .... " {,. J-t:' .....
... "..:l. """ "';"" , .... ' I'll 'Y'>l ., -...~ I .. .,... (] :f.>--'/' IS"",. "~$ ;B.>oo • , .; .~, """"" '("' ... '.........~ ,..... ... ... '""'~ ""'", .... , .. , .... : " .... / ' ........ • • 3 .... ' ~~ <l.<:l._ _ "'.... _._J ..... .. "- ; , '"V . ",,/, ,,4 ••• , /! I"'," _, "'~/ .. ,~. /
' '"; ~ \'''; "" 0 ", ''')1: .. '"; ... ,'fel "" -',,,,,,, "" "1!;:' ~. ' '":' n" -"~, -U~'ii"4 1)'1' ' -' I ~''',o'4 ,6::£\0 • , ... ,. f' ........ . ...... ,. 1""'" ..... .: ....., 'I ".,,\~ " ~.~ ... M': • ..,0/
¢I. , •• , ... " .... ."t
... ~~''''i """"",,1'""/ I ..... ', .. OJ ~ ... "
·-IJ1""" ~""'i"" .
",_ ..... s. ... '~"" ...... .
""',~ ~ .,.~ '", .. ...,;;' ...... -.u
'.. • ,}o!""
"",,~.,~,
M~OOO
15~55UO 152OO1l0 15:l.ij~O ,~ 1527500 1~2B1l0D 152BI>O!I 152900D Easting Ift.1
Wells
JI. Eve,,1 C.",ler
'" WelisinS'te<lm
--Lease- Lines !
~~_a~, ~OU~d~rj~~ J
l~CO
Northing (ft.)
I • • i § ~
• ~
,
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" §
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il
§
Berry Southl\'(l;st{'ll'll L{'IRSe
.

Reservoir ~onitoring Event Locatol"
EYENTST.-\RT; 0&'0412011 05:45hrsc
EVENTEND: OlllMllon 17:40 h:rn
E~'ent Fracture Para~ltrs
DCjlth~6BOft. TopD"'t"mitc~87il ft Differ= c +190 ft
fum: Bounds = 610' to 7-6'0'
F:rac;tme Sb;:il:~ Arimufb = I2 !kg,
F:rnd;ure DUp= 18 deg.. SE
Esl:imakdFtactuteDinmf,t..,-- 220 ft
Gr.owth CentN' Co-ordinates
KID17 Easting= 1526118 Northing= 643329
KWH] Ensting =6iJ.B7520Northimg= 218.3755
~nR>tw..n.

Will
-'" s\\r:J.4.40
" ~W}S-lg n,
~WJS41 ,~
SW3J.-19 ,ro
SWB41
'" SWJ64C
'" w>lliaas .......

W~
-"" "~ Di",-(f;j
SWP3.'i--31
'"
SWP-.w-37
"" ~WJ7-'13 ... SW4O-'lO
'" 5WP35-33
'"
SEVP3H2
-SW39-19
'"
SW4:z...14 oro
SW1'3'J";S
'"
5W'IJ-31 .924
NOleS-;
E",-,=t 2011iU&I04Cbegau and-ended cnAugust 4. 201 L Repor\f'd injectiontnformation didnot 6:.rrelate wnh the occnrrenc.e "Jthis event. A~has notbeec.idem:ifiedfm-tbis terminated eveot. We wiD coo:tinue 10 lIlIJtritol: this area fur any signs of re-wtlatiou. l
,~
~
~
MOOOO
M~oo
MOOoo
_'00
_00
M~OO
M~oo
'""'"
"'-: "'!l''':'~
,. ",ll
.H4 • h..,.
• r" ....
.1'5=
I
The source is "nonyrnous for
this termrnated event.

Southwestern :J
j-
- ~" ,<1-3,:",'7"" I
~ - ...• ,,~. 9~.'''.'=' "':~~'" -:"~ 'r'-':'"", :,,,J~:",, T • "'1-:' Sf' . "':-""j"""" ,.-~ .. "'~' ll' ""; .,.,.. ,. "': ~~ ... ~'" _--::.. . ~b, <,_ • "'"" '"" ,,~. ,,~. -'-'" -,- • "'" " "". il" '......,~ ..... ,,,"" . ""' . "'" .. -,,,, .= ""J_ / ,,~. • '" •• ""d' "-Jl I ",,, -. ",.. , . ,," . ll'" ,,~, I ,~", .',.,~, "._.- -'-;;'i' ;"" '''::N'' . :,,~ ,,"' • -l:·-~':;"r. '~''';''"I' '"' ,J,'-""./ "I"'~_ _ ..... .... _ .• ~ .00"_ .- .' ._ , ...... "' •• 0.';" _, "';l~. , • "'I' "", • "~. "0>, I • '~: "" • I'" :;';. • "tl>"ul---, • .'<~ I~"'~ " .... ,.4"'~....,-/ ~tf'1 • '; "~" "'" '~'"" ---' "!",;, ~,~ ,. -,~ • =1 /1;"'" '''''''" • .1.,,, ! • ".'" -- I ~ g. To"". !lpn. ...A..... ~;r:'" -/' . ,,-"" I , .... 'l,....,. -':1; ....... -t'. , "" ~.-'" --- • ,,,, ,~ '" I I '. - .~ ~ ,...,. ,t .... , .... , I - - ," -', : ,~, '1'"-,.<::; ~, • I; .~ ''''",<; ,~~ •• ,... ! ~;I~.' . ':;;L , " ( A,,"' "/.F ,- ~;. "1"", ."-;; -, t·-~~ ,," -"'-""'~;, . =,;-"'J I 't'" :-"",-', \'''~''"' • '?' _I J
11 "~':';~. T -,,",: ~~,,~ """""1,[," '''' I
:'~> ... ' "I:'~"~ " '~/.." ""'~""'"~'-tT-!'1 I
.. , .. ~l' ~l_ ...... ; .. -"'-SO
.. ~;-.u., ""--""""f.!...':'.t->l
.::U., ,'n.. " "-; M 'l)~; ,,",' _; if" .,~ ,
"'-r ": --="-. '"
I I II 1·"'-,..2·~ ~I . -MJU~- ''';''00 15'1-.55DO 1520000 1G2i!fiOO ,="'" 152750D 152OODO :528500 15200O'J EilsUng (ft)
Wetts
... E",ent Center
'" WenslnSI=
__ l=seU,,=
--Pad SOI.I"da,ies
15Zt5ro
Bel'l~' Southwestern Lease
Reservoir lVlonitoring Event Loc~tor
E\"El'I"TSTART,OS,'{)6f2011 09:15Jn-s
EYEJ'j'T Thll: '~1{I7f1011 21:00 ms'
~E,·mt Fracture Pal'amf"la"l
·D~=663ft. Top Diatomit.,. "'700ft DiifffiCence"" +40 It Ernn:Bonnds'- ~60' to Sll}'
Fracture SlrikeAzimuih = 12 deg.

FnctuJe Dill' = 17 <kg. SE
L .. 1:imat.,.d F.rnctme Diameter = 360 it
Gl'o'Wrh Cent~r COO!'din:ues
NAD!1 EiI.&ting = 1526597 Northing= 643566
NAD83 ElI<.tiug = 60879'S9 Northing = 2283992
[:S,,,,,,.,.\Y<lls
Iw~
SW.J9.3i1
SW4C~.a
SW-IO-lO
SW31l-3~
Dist.(ft)
" ,~
D' U,
SW~l_]" 157.
1 1::;::,,,- '" 1 J won Din,(fI) W<II. DUt..(il)
S\\,41_39 167 I ~A-
S,," 3S-.Il ~n #NlA
~W4~-!\I !BB ;;'WA-
t:,,,,---;~ ____ :,! ___ ~ ___ ._
1"-- --.---.------ -.~--.. - ... - .. - -----.~.-.---,~---•.. - _ .... - ..... - ...

No«'s:::

E\oo 20] liOSl()6A t=inaled 01 22::00 rues 00 August 1,101 L , "(,,,",,ml"~ Ie> <bi!y inj ~~I;"" infurm.~tiOlL, tbis "",,:01: b.e,g1l:11 cone iwilh"the steam..starllime-fbrueubyv.,efu-41-39 and39-411lOd Ollec 'aflerllleaWyv..'etls. 4-2.40 ..0043-39were swilcbedin.. 'Ifu-s.e ",,",ol1s. !""~ ~ in <rerun dming ... veot lamination Illld .=Wn source 'candidates fur tI:cis eve:ut. nw a:oolys:is ~des pr",,,,,,,usty ~epo.te<l ;-re!clts.

I
I
l
tl'!~![)OO
,,",00
54500!)
!I
i-
I'l44.5DO
~
M40DO
C'l3511O
&13000
tl42.5!10
.. ,...t.I =
. "I' ".,.. ~ ;." ......... 1.,
Southwestern
iw~"jj; 41-39, 39-4i:42=40. and 4ij:~~'"j:"~e
C<ll"ldidate5 forthl5 evellt.
o ~"~" ." .: ~·i~';'~ll"~~ "~~~~"'.:i~: ,.A~'~~::w~ .t,!:~"~ :":'~:-, ~ +.*. ,..,," .l-.: ~,,~" ,. :~Il", ,:": .~. "~: "", • '): ",,,'~; ,",1.' .... ;.~ ~, -' "::~' i'::-~ "." ,_ nt<.o-nF ... ".."i
o
"'':J ",,;.:r.··]~·r"'''' .. ~'~: 'll< ":"":'.. ''''': ......... , "." ° r. ..J:; ... ~ o • S<l' .. ~'+l' • • ;~-M 1 • ,,,~, .. "",-". .~ ... " ,1(. ''''''' I "'----X ° ~" ~W~" ,,:':";"1' :':\ji>""::,:~:",:,_,~,:"~ • ~ . "~:;::: ': ~~; "";."~~"",,.;,.,,"; ":""" • ,:t):r" .mJ~7 .'.!, .. , Y-'.!?":.!O-"l-1".I ~""..lj i.'-P./ ......... ,"'""'_ ~""""f --......~ .. .., .. , .. '" :.~: .... ,. J,~ ,;", •• ... ".; .... , ~,'.-~~.., l ~!,,~ . ''-',' ,_ '",,,,~ ."'-~ .~/ .. _ """" .• ' ..... ,ri~-~· "'"'1 .. L,./'c, ..... <t::" '.,; .. ..,/ • "_,, ,...,.,/ ~'W--'T~. ' .... . , 4 ,.... "'I"'" ~.""''''--''' i ,~ ....., ~ .... ~...,... .1 ... ""-" ''''''''F r '.'''7 ,~ ....... 'i-'" ! • ,,--',/ • "'"'", ',-.. ""'1./ • ......, ..... ,! ,,= ..." ... .,.... ._ :>l ... Tj • ,..... "" •• _ .31",,' t·"-'>i, ... ,......./ i.= .-«--Ist •. >{. ............. / ~'"'-'" .~--I.OI'" . ",-",'~ ... "",, r ~/' '",,-,,". "f~'!~ '-~~\L-I-l" •• ". =/: .. ""'" r ~l,""'I!,W .. :1 ....... "j:, • ..,. ... , ;.,,~ ., ..... =/ lLttL . i ~..,..... -·r"/ ...... 1"""· '""~ .. ,f""""
,-,
I i .~ -"'-': w"./·;~ .., ... , ...... '. -fD.S' ~t.:; . ...., • ''""I, . .I.~""- • , ... ,oJ1
lRll'i5DO 1527DOO
".",;;,,' >o~. , .... "
l";"':"": ..... .1,;; .. 1
• "'.J~.f '·.-,1'"'" ' .• ...."
,~'." ! 'o,"t" .
'"," .... :' .. ~'""
", .. '"'--" ~~...,.
"" . ~,;.~::> ....., ,. "",.. '''"''' ,-.... ~ ..
1527500 1526~()D
Easting (It.)
152BOOO 1:529000
W"U!I-
.6. Ev=(C,mm-r
e Wel1.5 in Steam
--lea"" Lin""
--Pad Boundaries
t5:l!;6l)t;I
Berry SouthwesterJl Lease
ReseL'Voir Monitoring Event Loc:.tm.'
E\ENTSTART: 08i0712011 19:40ms
[YEN"[ END: 01l108flOil 11:30 hn:
[ ......... tF.-:u:ru:rooParaIIlet .... ."
Depth~2Wft. Top Dlalowit.,,= 591 ft Diff..-=e= +JIHft
Error Bcmuds = :240' to· 340'
Frncnrn: Stril-e Azimuth." 12 rlf:g.

FrnclUn'! Dip = 1 deg. SE
El;tim~tedFIacirn-e Diamcler= 110 ft.

GJ.·owth Cmt .. !" Cool'diDates
NAD27 Eastfug'" I516811NortIriDg = 643837
H.lliS.3- EastiIlg ~ 60982{}<} Northillg = 2294163
~ .... stW<lli
W~ l.list.lU)
SW4l'-.J.7 ~
SW-\2·.J~ U
SW42-1S = 5W4]..O·7
"" SW4l·1;; ~
S.W-14-]~
""
\'I.'"<ihSwil<i .. dTo5<oolt
W~ .... <,,> W~ ~(tl)
"'- m'A O_J"", #N!A
"a =A .,- 'ilN'A
0-1..,
-
.~ ~A
"'-
IfNI.. ... .~ 'i/N,'A
"'-
~~ .,- ~A
Notes: i
Eveni 1011toSI07A tenninate&.at 1l:31l1IB onAl.lgpstS.l011 after Sel...ra1.subsideuce!re-infWiOll cycles. &eviornly Oamed somee Clll!1didales.rer=inedin stea:rn. Ba"'!d on mjecliaa data, ev...rt appears to be~~"'d to the st.....mng of.nesroy SW ",,"'cl\s; 44-36, M-3S, =&'= 45-37~ 1lresewell,.-wererecm~'!!dfromsteam.~tely2honrs
aftf1' e1.'!:Ilt initiatioI!. ThisreflO1t.mp~ prel>iouslyreported re;'Ul.ts.
g
,~
€
~
~oooo
~=
_00
,"",00
_00
M~
~MOO
6o!2500
~th·westem
I. """ -+ u!;, .... ;!>
- .1".13
I
.k. -I - • ~,S1 k ~ 'W~ "'""1' '"'~!"''''I'";·" 'I.'"' ."" , . ''':"~.. ~ ":~t": ';~~--:::'i :'; ": "'" . r ~~~. '~l' ~ ::":~'I~>S:~~' I "",' '~;" . "':' .~, :t ": .,~, . ~~:;; '"", /'<,-", .... , I.'. ""'~ , i I ""I~I, • .J' 1= .,w
t
.r'l>-.1" -t I ..... " f <'-<E • ~ I
o· ~. .,,,, , 0 00' moo • ,_ ", • 00'
,.~o;«;.- ; "'."I[=,.".~" . • :\"f; J ": """'jr: "~", I "o'}."~~~Lt~~, .. "'" • ""'O>J-J. "l'';tl> ""'I.'""" '~=', Y": '''';'",l '" _, {~., "~ " ~'~~, ". =1' "~ • "-:' "'" • ''': "., • i. '"<',., . ~: "'Y' I ;'''; ~ ,"0' ,.J'>~,.,,,, " • '. "I" "":",., "~'''''- --.. ~ '.' "-t.- p ''; _ • "oi~./"\~,,,",,,_, ., ",,' ~':,,,.. • "', '"' • "":·.,m" , f'~::,.,~ ~'f-::;,~/,", '" "'-I '~l_ .. ~ ,., -T ~ ''-'! "7' '-'. ,", "17 ~ -"".":1 ""'" I ,.~! _ •• I • ""(,, "~l l-t-I, ,j.1-" "~: ,.,..j/ ."'-" 'p,,:~'''' ~l../J>-#! _ .. ...,.=1' i~ "" . -, . ,"" ,/ I.. . .,~ If""" _ "" ... " .. 11_11" .\'014' 0 ' ..... /f -I' . M ,.'1' i-,,~ """-..,,~,,_ "!:."'., I ,,/ ".", • • ,.. • "0' __ .-00 1.,/ • _ J' ~""},", ~, :;;~1: ~~:i..rl " . ,
. =~/ "'!t:;'~....,,,
"'","': ... , '"''' ' ..... ,
I
"h-'''; "7?:o'I"' . ", I '''' ..... """ I
~~oo LL~~-~","~ 152!551JO 152t1COO 16270Jll 1."'2700[} 152&10D l~JOO ,~oo 152;l!~OO E8stlng(ft.j
Wens
;10; Event Cooler
o WeI!5;nS!.eam
__ L'*'>':eU"es
-_P1l.d Boulldaries
,=~
~ .. ---- -------------------
8 ~~~~~ ~ ~
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•
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Attachment 4
Berry Petroleum Company Surface Event Emergency Response Procedure
TO: All NMWSS Employees
B········ .. p.. l·············-C--_··· ... _. -_. - erry·· ettoeum .-ompany NMWSS Production Office
25072 Hwy 33
Fellows, California 93224
(661) 768-4554
DATE: 10/1/07
FROM: Chuck Jaster
SUBJECT: NMWSS Surface Event E.R.P.

Below isa list of action items to be followed in the event of a "Surface Event". A surface event is defined as an unplanned release of steam, oil, water or gas separately or in combination. This list applies to both Diatomite and Non-Diatomite operations.

1. Check area for any company or contract personnel who may have been exposed to the release: Shut down any ongoing construction, well servicing or maintenance operations and evacuate area.

2. Monitor wind direction for H2S. Call 911 if necessary and alert emergency response personnel. Meet emergency response vehicles/personnel at intersection ofHwy 33 and Pacific Perforating. Approximately 1 mile south of Derby Acres.

3. Contact your supervisor ASAP. If on a weekend or after hours call the duty supervisor.

4. Restrict access to the area using barricades and caution tape.

5. Monitor area for possible sources of ignition (electric or open flame).

6. If applicable, shut steam out of any offset cyclic or continuous injectors that are adjacent or in close proximity of the surface release.

7. If applicable, begin designed flowback(s) of nearby shut in or idle wells to reduce reservoir pressure.

8. If applicable, providing it is safe to do so, make arrangemeuts to install a steel "blowout" box over and or around the well/vent to contain/reduce any aerosol spray.

9. If applicable, constmct a secondary containment berm to contain any liquids.

10. If applicable, local supervision may elect to make arrangements for 24 hour surveillance to monitor the area for any additional or new activity.

Chuck Jaster
MNDI Operations Superintendent
NMWSS Asset Team
Attachment 5
PressurelRate Data/or 30 Days Prior to SE 2011-8-8/or wells:

SW 42-40, SW 45-37

7/17/2011 SW 45-37 301 0
7/18/2011 SW 45-37 305 0
7/19/2011 SW 45-37 304 0
712012011 SW 45-37 308 0
7/21/2011 SW 45-37 306 0
7/22/2011 SW 45-37 304 0
7/23/2011 SW 45-37 362 0
7/24/2011 SW 45-37 416 0
7/25/2011 SW 45-37 417 0
7/26/2011 SW 45-37 425 0
7/27/2011 SW 45-37 437 0
7/28/2011 SW 45-37 451 0
7/29/2011 SW 45-37 463 0
7/3012011 SW 45-37 478 0
7/31/2011 SW 45-37 469 0
8/1/2011 SW 45-37 463 0
8/2/2011 SW 45-37 462 0
8/3/2011 SW 45-37 472 0
8/4/2011 SW 45-37 477 0
8/5/2011 SW 45-37 477 0
8/6/2011 SW 45-37 483 0
81712011 SW 45-37 469 0
8/8/2011 SW 45-37 235 0

·REPORT~OFOCCURRENCE·· . TYPE C/D-· Date .. 7/31111
LOCATION Cymric, Star Fee Lease
Operator PXP Representative Charlotte Campbell Phone 661-9120-7518 Occurrence Detected Jul~ 31, 2011 .Q§Q.L am/pm
month, day year
Occurrence Ended Ongoiog am/pm
month, day year
Field Cymric Sec" T" R. 6 T30S/R22E Lease and Well Star Fee ------------ --------------
Other Location Description Star Fee lease, nearest well is 463U O,E,S, Notified? 11-4547 (toll-free number: 800-852-7550) ------
DOGGR Notified by (Name, Affiliation, Phone Number, and Time) Charlotte Campbell ----------------
Volume of Spill See Comments bblsoil; _____ ~------ bbls water Areal Extent 6'-8' diameter vent with approx, 60' x 25' spray covered ground and a fluid filled depression approximately 75'x30'x4', Property or Waterways Damaged or Threatened N/A
-------------------
Weather and Sea Conditions (Offshore Spills Only) N/A
--------------------------
Injuries N/A
~---------------------------
Source and Cause of Occurrence Steam Injection into shallow diatomite reservoir over fracture gradient resulting surface rupture of steam, water and oil. The producing diatomite reservoir in this area is at a depth of 1000' to 1500' , Containment and Cleanup Fluid is flowing into a berrned depression and being removed by vacuum trucks, To keep the depression from overflowing, soil was also mixed with the fluid and stockpiled, Operator Plans to Prevent Reoccurrence Steam Injection on the entire Star Fee lease was shut-in, Two wells 445L and 445N , located approx, 200 yards to the east, have been identified as the likely source, The two wells will be evaluated for rework or ab'd, Estimate of Property Damage (dollar loss)
------'-
or Cleanup Cost
~------~---
Additional Information On Sunday July 31, 2011, PXP reported to the District 4 on call engineer the occurrence of a 2 bbl oil and 50 bbl mud surface expression, covering an area of appox, 800 sq, ft, The location was visited on the moming of Aug 2, The extent of the surface expression fluid covered an existing depression approx 75'x 30'x 4'deep or approx, 1600 bbls offluid/mud, It was reported that another 1000 bbls of fluid had been removed by vacuum trucks, A tilt meter event reportedly occurred on June 30th at 2200hrs near the actual surface expression location, There is an approx, 24 hour interpretation tilt meter lag time, Plans are being made to slowly resume steam injection with a 150' restriction around the surface expression and the two wells thought to be responsible, Status on 8-3-11 reported approximately 5 bbls/day of flowing fluid, The surface expression location is reportedly very near a 2003 event of lesser severity, The bermed depression was constructed for the 2003 event. (Use reverse side If additional space Is needed.)
Report Prepared bY---"M",lc",h",a",e,-1 T!..:o"'la"'n"d'---________________ Date 8-3-11 OG1S4 (3/98)
(

NATURAL RESOURCES AGENCY Edmund G, Brown, JR" GOVERNOR

DEPARTMENT OF CONSERVATION
NivJUtffv"iJ' CtU,i/'o-rww/y Wcrrhv"'r? Laon,d.y
Division of Oil, Gas, & Geothermal'Resources
801 K STREET • MS 2C~20 • SACRAMENTO, CALIFORNIA 95814
~HONE 916/445-9686 • FAX 916/323-0424 • TOO 916/324-2555 • WEB SITE conservaiion.ca.gov ORDER NO. 1012
by
Elena M, Miller

STATE OIL AND GAS SUPERVISOR
DATED
July6,2011
Chevron U.S.A. Inc,
Midway Sunset Field
Antelope/Diatomite Zones
Kern County
The Department a/Conservation IS mission is to balance today 's needs with tomorrow's challenges andfoster Intelligent, sustainable, and efficient llse a/California's energy, land, and mineral resources. -- -- -- --- -- - "------ --- --------------------------~ Chevron U.S.A Inc.

Formal Order No.1 012
July6,2011
Page Two
On June 21, 2011, Chevron U.S.A Inc (Chevron) reported to the Department of Conservation, Division of Oil,Gas, and Geothermal Resources (DOGGR) that a surface expression of steam was occurring in the vicinity of Well 20 and Well K210 in the Midway-Sunset Field (Section 21,1. 32S, R. 23E). Chevron dispatched staff to investigate the surface expression and while investigating a Chevron employee fell through the surface and died. The fatality occurred at Midway-Sunset Field at the southeast corner of the Well 20 site and was reported to DOGGR on June 21, 2011 at 10:45 a.m.

Cyclic steaming injection operations are conducted in the Midway-Sunset Field to provide enhanced oil recovery from diatomite formations. Well 20 is a damaged well and surface expressions of flLlidsafldgases in the vicinity of Well 20 were first reported to DOGGR prior to 2008. Attempts by Chevron to plug and abandon Well 20 have failed and in Spring 2011, Chevron commenced efforts to construct containment of the surface expression in the vicinity of Well

20. The surface expression in the vicinity of Well 20 is directly related to cyclic steaming injection operations in the field . Although there may be some natural seepage of oil and water in the area, any expression of steam at the surface can only be attributed to steaming or cyclic steaming injection operations. The State Oil and Gas Supervisor (Supervisor) has determined that immediate steps must be taken in order to prevent further harm from occurring as a result of the surface expression.

Public Resources Code section 3106 states: "The supervisor shall so supervise the drilling, operations, maintenance, and abandonment of wells and the operation, maintenance, and removal or abandonment of tanks and facilities attendant to oil and gas production ... so as to prevent, as far as possible, damage to life, health, property, and natural resources ",," In reference to underground injection projects, California Code of Regulations, title 14, section 1724.10, subdivision (h) states: "Data shall be maintained to show performance of the project and to establish that no damage to life, health, propertY,or natural resources is occurring by reason of the project. Injection shall be stopped if there is evidence of such damage, or loss of hydrocarbons, or upon written notice from the Division. "."
Therefore, to protect public health and safety in furtherance of the authorities cited above, and acting pursuant to Public Resources Code sections 3224 and 3226, the Supervisor orders that, in order to prevent steam and fluids from coming to the surface, Chevron will immediately cease all injection operations within a 150 foot radius of the surface expression of steam being investigated by Chevron employees at the time of the accident. If after five days steam or fluids continue to come to the surface, Chevron shall immediately cease all injection operations within a 300 foot radius of the subject surface expression. -- - --Ch-evron U.S.A. Inc,
Formal Order No, 1012
July 6, 2011
Page Three
Injection operations shall not resume until the Supervisor is satisfied thatthe cause of the surface expression is determined andremediated, With permission from the Division, injection may be conducted for the limited purpose of conducting testing while this order is in effect.

This order may be appealed by filing a written statement with the Supervisor or district deputy that the order is not acceptable within ten (10) days of receipt of the order.

Elena M. Miller
State Oil and Gas Supervisor
b~S~vL
Robert S. Habel - -
Chief Deputy State Oil and Gas Supervisor
cc: DOGGRcHQ
James Pierce, Senior Staff Counsel
Certified Mail Receipt No. 7006 0810 0005 0961 7633

NATURAl RESOURCES AGENCY Edmund G, Brown, JR" GOVERNOR
DE PAR T MEN T 0 F CON 5 E RV A T ION
Division of Oil, Gas, & Geothermal Resources
801 K STREET • MS 20-20 • SACRAMENTO, CAUFORNIA 95814
PHONE 916/4.£15-9686 • FAX 916/323-0424 • TOD 916/324-2555 • WEB SITE cOIIS6Not1on,ca.gov

AMENDED
ORDER NO. 1012
by
Elena M. Miller

STATE OIL AND GAS SUPERVISOR
DATED
July 28, 2011
Chevron U,S.A. Inc,
Midway Sunset Field
Antelope/Diatomite Zones
Kern County
The Department ({{ Conservation's mission is to balance today 's needs with tomorrow's challenges and/oster intelligent, sustainable, and efficient use of California's energy, land, and mineral resources.

Chevron U.S.A. Inc.

Amended Fonmal Order No.1 012
July 28, 2011

Page 2 ends

This Amended Order No. 1012rescinds, supersedes, and replaces Order No. 1012, issuedon July 6,2011.

On June 21, 2011, a fataliiy occurred in the vicinity of "Well 20" (API 029-23672) in the Midway-Sunset Field (Section 21, T. 32S, R. 23E). Well 20 is operated by Chevron U.S.A.

Inc. (Chevron). Ch.evron reported to the Division of Oil, Gas, and Geothermal Resources (DOGGR) that one of its employees fell into a hole that contained steam, hot water, and H28 gas.

Cyclic steaming injection operations are conducted in the Midway-Sunset Field to provide enhanced oil recovery from diatomite f0l1l1ati9ns. Cyclic steaming injection operations at times lead to "surface expressioris":bf9il,ga~es, and other fluids. Chevron has Informed DOGGR that it was not conducting cyclic steaming injection operations in the vicinity of Well 20 since December 2008, yet asurfaceel(ptession exists in the vicinity of Well 20.

DOGGR believes that the surface expression in the vicinity of Well 20 is directly related to cyclic steaming injection operations in the field. Although seepage of oil and water may occur in the area, any expression of steam at the surface can only reasonably be attributed to steaming or cyclic steaming injection operations. The State Oil and Gas Supervisor (Supervisor) has determined that immediate steps must be taken in order to prevent further harm from occurring as a result of the surface expression in the vicinity of Well 20.

Public Resources Code Section 3106 states: "The supervisor shall so supervise the drilling, operations, maintenance, and abandonment of wells and the operation, maintenance, and removal or abandonment of tanks and facilities attendant to oil and gas production ... so as to prevent, as far as possible, damage to life, health, property, and natural resources .... " In reference to underground injection projects, California Code of Regulations, Title 14, Section 1724.10, subdivision (h) states: "Data shall be maintained ... to establish that no damage to life, health, property, or natural resources is occurring by reason of the project. Injection shall be stopped if there is evidence of such damage, or loss of hydrocarbons, or upon written notice from the Division .. , ," To protect public health and safety infurtherance of the authorities cited above, and acting pursuant to Public Resources Code Sections 3224 and 3226, the Supervisor orders that, in order to prevent steam and fluids from coming to the surface, Chevron shall not cond uct injection operations within a 300 foot radius of the surface expression in the vicinity of Well 20. Injection operations shaH not resurne within the 300 foot radius until the Supervisor is satisfied that the cause of the surface expression in the vicinity of Well 20 is determined and rernediated.

With perrnission from the Division, injection may be conducted for the limited purpose of conducting testing while this order is in effect. ' Chevron U.S.A. Inc.

Amended Formal Order No. 1012
July 28, 2011

Page 3 ends

This order may be appealed by filing a written statement with the Supervisor or district deputy that the order is not acceptable within ten (10) days of receipt of the order.

C~h-)L ~QIJ~
Elena M. Miller
State Oil and Gas Supervisor
cc: DOGGR-Headquarters
James Pierce, Senior Staff Counsel
Certified Mail Receipt No. 70060810000509617657

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'rRQc~Rgf§!ln~·'~gm?~hY1fnb.
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. ElenaM.Mitler
State of rand Gas Supervisor
cc: DOGGR"HQ
J§rn§s Pierce, SeniiJ( staff COllnsel
Certified Mail Receipt No. 7d08i830 000427800574
p,
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NATURAL RESGURCES'AGIONGY -- ------- --------- ccc c,---ccEomund_G, Brown, JR.; GOVERNOR-

DEPARTMENT OF CONSERVATION
Division of Oil, Gas, 8. Geothermal Resources
801 K STREET,. MS 20-20 SACRAMENTO, CALIFORNIA 95814
PHONE 916/445~9686 • FAX 916/323-0424 • TOD 916/324-2555 • WEB SITE conS8Nation.ca.goY

EMERGENCY
ORDER NO.1 015
by
Elena M, Miller

STATE OIL AND GAS SUPERVISOR
DATED
August 5, 2011
TRC Operating Company Inc,
Midway Sunset Field
AntelopelDiatamite Zones
Kern County
The Department ojConservaliol7 's mission is to balance {oelay's needs with lomorr01Y's challenges andfoster intelligent, sustainable, and efflcien! use a/California'S energy, land, and mineral resources. ·. -TRCOperatm§jGompanyclfle;-
August 5,2011

Page 2 of 4 ends

On June 21,2011 a fatality occurred in the vicinity of "Well 20" (API# 029-23672) in the Midway-Sunset Field (Section 21, T. 32S, R. 23E). Well 20 is operated by .

Chevron U.S.A. Inc (Chevron). Chevron reported to the Division of Oil, Gas and Geothermal Resources (DOGGR) that one of its employees fell into a hole that contained steam, hot water, and H2S gas.

Cyclic steaming injection operations are Conducted in the Midway-Sunset Field to provide enhanced oil recovery from diatomite formations, and TRC Operating Company Inc. (TRC) has been conducting cyclic steaming injection operations in the Midway-Sunset Field since November 1997. Cyclic steaming injection operations at times lead to "surface expressions" of oil, gases, and other fluids. Chevron has informed DOGGR that it was not condu9ting 9yclicsteaming injection operations in the immediate vicinity of Well 2 0 since December2008, yet one or more surface expressions exist in the vicin ity of Well 20 ...

In addition to the surface expressions on Chevron's lease, on June 21, 2011, one or more surface expressions appeared on TRC's lease, near well "Bull 9" (API# 030- 08852) also located in Section 22, T. 32S, R. 23E. A volume of oil and water is coming to the surface from this expression that merits immediate remediation. Based on observation and statements by TRC, DqGGRestimates that as much as 100 barrels of oil and water are coming to the surface each day from the expressiGns near well Bull 9. . ,
DOGGR believes that the surface expressions in the vicinity of Well 20 and in the vicinity of well Bull 9 are directly related to cyclic steaming injection operations in the field. Although seepage of oil and water may occur in the area, any expression of steam at the surface can only reasonably be attributed to steaming OT cyclic steaming injection operations. The State Oil and Gas Supervisor has determined that immediate steps must be taken in order to prevent further harm from occurring as a result of the surface expressions in the vicinity of We If 20.

On July 1 g, 2011, the Supervisor issued OrderNo. 1014 requiring that TRC cease cyclic steaming injection operations in the vicinity of the surface expression until the Supervisor is satisfied that the cause of the surface expressions are determined and remediated. TRC has filed an appeal of Order No. 1014 and the order is stayed pending appeal. Based on reports from Chevron and TRC itself, DOGGR believes that since July 19,2011 TRC has conducted cyclic steaming injection operations in the vicinity of the surface expressions.

Since July 1 g, 2011, the following has occurred:
• On August 3, 2011, at least two new surface expressions, one of them five feet in radius, began within forty feet of the existing surface expression 'In the vicinity of Well 20.
- TRC.OperatingCompany-IRG.--·
August 5, 2011

Page 3 of 4 ends

----- - --"--- ... - ,.
- --- ----------- -------------------
• On August 5, 2011, a volatile eruption began from the existing surface expression in the vicinity of Well 20, expelling rocks, other material, and emitling fluid and steam.
• On August 5, 2011, in response to inquiry TRC reported to DOGGR that it had been conducting cyclicsteaminjection into well "Bull 38" on August 3 and 4,2011, in the vicinity of Well 20. . --- . ..
• The eruptive and continuing surface expressions in the vicinity of Well 20 have created an unpredictable, unstable, and dangerous situation such that life, health, property, and/or natural resources are at further risk.

Public Resources Code section 3106 states: "The supervisor shall so supervise the drilling, operations, maintemince, and abandonment of wells and the operation, . maintenance, and removal or abandonment of tanks and facilitiesattelldant to oil and gas production ... so as to prevent, as far as possible, damage to life, health, property, and natural resources .... " In reference to underground injection projects, California Code of Regulations, title 14, section 1724.10, subdivision (h) states: "Data shall be maintained to show performance of the project and to establish that no damage to life, health, property, or natural resources is occurring by reasOn of the project Injection shall be stopped if there is evidence of such damage,orioss of hydrocarbons, or upon written notice from the Division .... " - Based on the facts described above, pursuant toPublic Reso urces Code section 3226, the Supervisor has determined that an emergency existsand that immediate steps must taken to in order to protect life, health, property, and natural resources.

20. Injection operations shall not resume within the vicinity of the surface expression until the State Oil and Gas Supervisor is satisfied that the cause of the surface expression is determined and remediated.

Be further advised, DOGGR has no record of providing TRC with approval to conduct cyclic steaming injection operations in the Midway-Sunset Field. California Code of Regulations, title 14, section 1724.6 states: "Approval must be obtained from this Division before any subsurface injection or disposal project can begin .... " This order is not an approval for any injection operations that have not previously been permitted by DOGGR. With permission from DOGGR, injection may be conducted for the limited purpose of conducting testing while this order is in effect · .THCOperatil'lg-Companylnc~
August 5,2011

Page 4 of 4 ends

This order may be appealed byJiling a written statement with the State Oil and Gas Supervisor or district deputy that the order is not acceptable within ten (10) days of receipt of the order. However, please note that because this is an emergency order issued pursuant to Public Resources Code section ,3226 and, pursuant to Public Resources Code section 3350, subdivision (b), the filing of an appeal of this emergency order shall not operate as a stay of the order. . by [W1LlliYb .

Elena M. Miller' '-'
State Oil and Gas Supervisor
cc: DOGGR-HQ
James Pierce, Senior Staff Counsel
Certified Mail Receipt No. 7006081000050961 7664
------- ~-.. - -':'. ---
1016
NATURAL RESOURCES AGENCY Edmund G, Brown, JR" GOVERNOR
D EPA R T MEN T 0 F CON S E R VA TI 0 N
McvnaflI"ff CcvU{o-rrl/ia/y Wo-rlvv"ff Lcvn<h
Division of Oil, Gas, & Geothermal Resources
801 KSTREET • MS20-20 " SACRAMENTO, CAUFORNIA95814
PHONE 916/445-9686 • FAX 916/323-0424 • TOD 916/324-2555 • WEBSITE conservation.co.gov

EMERGENCY
ORDER NO.1 016
by
Elena M. Miller

STATE OIL AND GAS SUPERVISOR
DATED
August 26,2011
TRC Operating Company Inc.

Chevron U.S.A. Inc
Midway Sunset Field
Antelope/Diatomite Zones
Kern County
The Department of COhSef1Jation's mission is to balance today's needs with tomorrow's challenges and foster intelligent) sustainable, and efficient use a/California's energy, land, and mineral resources. .. TRC Operating-CompanY inc.

Chevron U.S.A. Inc
August 26, 2011

Page 2 of 5 ends

This Emergency Order No. 1016 incorporates or expands the requirements of, and therefore rescinds, supersedes, and replaces the following orders previouslylssued by the Department of Conservation Division of Oil, Gas and Geothermal Resources (DOGGR): .
• Order No. 1012, issued to Chevron U.S.A. Inc. (Chevron) on July 6,2011; • Amended Order No. 1012, issued to Chevron on July 28,2011; • Order No. 1014, issued to TRC Operating Company Inc. (TRC) on July 19, 201; and
• Emergency Order 1015, issued to TRCon August 5,2011.

This Order is issued to address an ongoing emergency situation caused by the "surface expressions" of oil, gases, and other fluids in the vicinity of 'Well 20" (API# 029-23672) in the Midway-Sunset Field (Section 21, T. 32S, R. 23E). On June 21, 2011 a fatality occurred in the vicinity of Well 20 leading Chevron to report to DOGGR that one of its employees fell into a hole in the vicinity of Well 20 that contained steam, hot water, and H2S gas. Cyclic steaming injection operations are conducted in the Midway-Sunset Field by several operators to provide enhanced oil recovery from diatomite formations. Cyclic steaming injection operations have at times produced surface expressions. The hole where the fatality occurred is related to the surface expressions in the vicinity of Well 20.

Well 20 is operated by Chevron and is situated within 120 feet of TRC's lease boundary. TRC has been conducting .cyclic steaming injection operations in the Midway-Sunset Field since November 1997. Chevron has reported to DOGGR that it suspended all of its injection operations within a 300 foot radius of Well 20 in December 2008, and that immediately after the June 21 fatality it ceased all injection operations within a 500 foot radius of Well 20.

In addition to the surface expression in the vicinity of Well 20, also on June 21,2011, one or more surface expressions appeared on TRC's lease, near well "Bull" 9 (API# 030-08852) located in Section 22, T. 32S, R. 23E. A volume of oil and water has come to the surface from this expression. Based on observation and statements by TRC, DOGGR estimates that as much as 40 barrels of oil and water are coming to .the surface each day from the expressions near well "Bull" 9.

DOGGR believes that the surface expressions in the Vicinity of Well 20 and in the vicinity of well "Bull" 9 are directly related to cyclic steaming injection operations in the field. Although seepage of oil and water may occur in the area, any expression of steam at the surface can only reasonably be attributed to steaming or cyclic steaming injection operations. The State Oil and Gas Supervisor has determined that . TRCOperatinlfCompanylnc:----
Chevron U.S.A. Inc
August 26, 2011

Page 3 of 5 ends

immediate steps must be taken in order to prevent further harm from occurring as a result of the surface expressions in the vicinity of Well 20.

On July 19, 2011, DOGGR issued Order No.1 014 requiring that TRC cease cyclic steaming injection operations within a 300 foot radius of the surface expressions near Well 20 and within a 300 foot radius of the surface expressions near well "Bull" 9 until the Supervisor is satisfied that the cause of the surface expressions is determined and remediated. TRC filed an appeal of Order No.1 014 and that order was stayed pending appeal. Based on reports from Chevron, DOGGR believes that since July 19,2011 TRC has conducted cyclic steaming injection operations in the vicinity of the surface expressions.

Since July 19, 2011, the following has occurred:
• On August 3, 2011, at least two new surface expressions, one of them ten feet in diameter, began within forty feet of the existing surface expression in the vicinity of Well 20.
• On August 5, 2011, a volatile eruption began from the existing surface expression in the vicinity of Well 20, expelling rocks, other material, and emitting fiuid and steam.
• On August 5, 2011, in response to inquiry, TRC reported to DOGGR that it had been conducting cyclic steam injection into well "Bull 38" on August 3 and 4, 2011, in the vicinity of Well 20.
• On August 5, 2011, DOGGR issued Emergency Order 1015 requiring that TRC immediately cease cyclic steam injection operations within a 500 foot radius of the surface expressions near Well 20.
• On August 17, 2011, Chevron reported to DOGGR that another eruption had begun from the surface express'lon in the vicinity of Well 20 and that it was significantly larger than the eruption that began on August 5. Chevron reported that the August 17 eruption sent fluid approximately 100 feet high and steam vapor even higher. It was estimated that fluids were sprayed as far as 240 feet from the erupting surface expression.
• As recently as August 25,2011, DOGGR staff has observed that the expressions in the vicinity of Well 20 have increased in size and intensity since August 5, and that steam continues to emanate from the surface expression at this location. • The eruptive and continuing surface expressions in the vicinity of Well 20 have created an unpredictable, unstable, and dangerous situation such that life, health, property, and/or natural resources are at further risk.

TRC Operatirrg-Company llic.

Chevron U.S.A. Inc
August 26, 2011

Page 4 of 5 ends

The fact that the surface expressions near Well 20 have continued since the issuance of Emergency Order 1015 indicates that the surface expressions are likely caused or significantly contributed to by cyclic steam injection operations occurring more than 500 feet away from the surface expressions. DOGGR believes that the surface expressions may be caused by cyclic steam operations conducted in wells as far as 800 feet from the surface expressions. Since August 5, 2011, both TRCand Chevron have conducted cyclic steam injection operations on wells within a radius of 800 feet of the surface expressions in the vicinity of Well 20. Based on reports from Chevron, DOGGR believes that TRC has conducted cyclic steam injection on wells as close as 640 feet from the surface expressions, and Chevron has conducted cyclic steam injection on wells as close as 766 feet from the surface expressions.

Therefore, to protect public health and safety in furtherance of the authorities cited above, and acting pursuant to Public Resources Code sections 3224 and 3226, the State Oil and Gas Supervisor orders that, in order to prevent steam and fluids from coming to the surface, TRC and Chevron will immediately cease all injection operations within an 800 foot radius of the surface expressions in the vicinity of Well 20, more specifically, within an 800 foot radius of the approximate center point of the primary surface expression in the vicinity of Well 20, which DOGGR has calculated to be at Longitude -119.500118, Latitude 35.128592 (GCS NAD83). TRC and Chevron will also immediately cease injection operations in well J262 (API# 030-36384) and well "Bull" 49 (API# 030-32740). (The wells within the specified radius, together with the two specified wells, will hereafter be referred to as "the restricted wells.") Injection operations in the restricted wells shall not resume until the State Oil and Gas Supervisor is satisfied that the cause of the surface expression is determined and remedlated so as to prevent, as far as possible, damage to life, health, property, and natural resources; damage to underground oil and gas deposits from infiltrating water and other causes; loss of oil, gas, or reservoir energy, and damage to underground "fRe-Operating Company Inc.

Chevron U.S.A. Inc
August 26, 2011

Page 5 of 5 ends

and surface waters suitable for irrigation or domestic purposes by the infiltration of, or the addition of, detrimental sUbstances. With permission from DOGGR, injection may be conducted in the restricted wells for the limited purpose of determining the cause of surface expression(s) while this order is in effect.

It is further ordered that on or before September 2,2011 TRC and Chevron shall . each provide DOGGR with a list of all the restricted wells they operate. With respect to each such well, TRC and Chevron shall identify the date and time they were shut in, and shall provide the injection histQty for the wells from June 1,2011 to the present. While this order is in effect, TRC and Chevron shall each certify to DOGGR in writing on a weekly basis that cyclic steam injection operations are not occurring at any of the restricted wells that they operate.

California Code of Regulations, title 14, section 1724.6 states: "Approval must be obtained from this Division before anysubsurface injection or disposal project can begin .... " TRC has submitted an application for injection project approval to DOGGR and review of TRC's application is still pending. Neither the issuance of this order, compliance with this order, nor any lifting of this order should be construed as a determination upon TRC's pending injection project application. DOGGR may take additional action in the future to address this iss·ue.

This order may be appealed by filing a written staternent with the State Oil and Gas Supervisor or district deputy that the order is not acceptable within ten (10) days of receipt of the order. However, please note that this is an emergency order issued pursuant to Public Resources Code section 3225 and, pursuant to Public Resources Code section 3350, subdivision (b), the filing of an appeal of this emergency order shall not operate as a stay of the order.

Elena M. Miller
State Oil and Gas Supervisor
by ~f ,,:5' '~;J:'_
Robert S. Habel "
Chief Deputy State Oil and Gas Supervisor
cc: DOGGR-HQ
Jarnes Pierce, Senior Staff Counsel
Certifi~d Mail Receipt No. 7006 0810 0005 0961 7695 (TRC) Certified Mail Receipt No. 70060810 0005 0961 7701 (Chevron) Al,lgust 26, 2011
VIA EMAlL AND U.S: MAIL
Me Buit BUison
Div\siot1of On,Gas and Geofheril1al Resources, District 4 4&OO$!ockda1" l-f\'i.X"SLlite 4J1 .

Baketsfieidi CA93.309-0279
San ~'oaquin'-vall.f~y-$BU
CQ~v:tb11: N.9f;th A.merl~,~
EXpl6ratlon and Production
952S.CaminaMedia
Bakelsh~J{i~ ~A.9:3'3.11
66i-319-4742
Dall~~1u~·bs~cheyro.n',.~orh
RE: Pl:o),osedaQtivjty in the areas covered DOGORAmended'FormalQrcierNo, 101.2, Formal Order Nu. J0l4tirid Emergency OrdeYIQJ5
pear l;iiF. Ellison:

A:"ff f61lo~y uplOBheyron U.SAln'c. 's(Chevrari.'s)lefter datetlThilrsoay, August lR,2011,Chevr6n w~ntsto(eiterateQllr str{)ngd~sire to m~~t til the near fururewith theDivision ofO:il,:G~s; and Geotneirrml ResQLlrceS (D.o.GO\l:) to.disGJJssa proPQsect.subsurfa'ce.diagnostkJ,rograi)l, actiol1' plan, and technidil d"Ia',thaiwe believe will addresHhe ,urrentK21 0 surtRc"expfessJonandsupport§afe op~f'l;~ions in1h" imNcteqarea. Many pfllie adivltiesinthep(9pos~ddiagl1osticprogram an.daclicih planwHllleedellherDOGGR's permi:;"loll, or per01i\sj'romIiQGGR, which jswhy ilis il11peratl'Ze ihat we meetWith yollon an expedited oasis.. .

UnfoJ"t)lillltely,DOCfGR wasumible to me"twlth llstm:lay so We~puldshilre purpl~n~ [n person. We are Mpefulthatmeetingcan happen soon. However, WediaWanttb !etyollknow thaton ~1onday, August 29,201 I,Chey[ol11D.tetlQs to begin wire Hoe temper~'tutes surveYs of all weEs on its side Gfthe leaSe lia8 witlliD !1500'rad'j~s of the. K2 I 0 surracc expressIon, We also plan to incIudeth" wen'21~ J262.Th¢se sWVeyssnou[o determine or c.onfinnmechanical lnfe:grity of ali of t]j~ referenced .Chevrob. we 1I~. 'If YOll aieiJiterested inatlehClitfgmid observing but aCtivity, please let us kno\v, hrrd We wi!! provided a schedule oftbe weHsbeingsurveyed. .

Chevron 1vlll berheelingwith TRC Opelatii1gCbirtpany Inc, (TRQ) on Monday, Allgust29, 20.1 l,to' discuss aiignmel)tbetweenbothChevron andTRC fOI the purpose of conducting additional subsurface diagl)9stk tesUng of ~11 \veIls cli!1ently!mpacted.by Amend8dFormai Or4er No.10!2:,Pormai Order No. 10 14,Emergertcy Order 1015, and the we Us inentiQi!ed in the Augils! 18 letter; specificitily TRC HLiI! 27, Bull 40, Bull 49;.Bul[ 51 mid CITevron 218J262. To that effect, Chevron's larigclerm'schedule for planned' wire line surveys in and around the K21 0 surface expression wil]requirecoordinatioll between Chevron and TRCto enSllre a safe working environment for pet~onnel and equipment. We are also hopeftil that bothcoinpailies carr agree em l\cooperative plait forward to' deal With iS5t1~ssuchas warkovers, abandonments andre-abandomeJ1ts in the iinpacted area; any OtlWf slJbslIlface mitigatioli ML Butt Ellison
August26~ 201 I
Page.2
aCtjvjtyjhat is necessary in Jhehllpacted~rea; ancli\:ture [)per~tlng practices, . Those pfanswill also likely, inYqiyeactiy(iies thatneed eitberDQGOR'spermissloAor pet;nitsfrQrn DOGGK We cOqtirtue to believe tliat a cooperatiVe approach NtweenChevrcn,DOGGR, and TRe, ist!\ebestand most proa~iiY"WllY to llddresstbe surt1Ic,eand 5u6sprf~ceiss\1(:siniheimpactedarea. We,aU hayeth~ cOrril1lonll,oal aifirSt making sure that the atea . isSl\fafor. people and the (jnvltolUllilnt, alii:! thenT~turI\b\g th,,'area:{o produCtion. We lookforwal'o to continueG viOrk\vith you to achieve those common goals, Sincerety,
4Jk~·1JJ~
DaUasH. Tubbs
L.e'ldpef,oleufuEi]g'i,neer
Temb'lor'Thermif Area
co: ElenaMilIef, Supervisor oftheIJivision gf OJ!, Gas an,d Geothermal Reso~r£es James Pierce, SeniOr Staff Counsel, california Department ofCo~servatil}n

1 DEPARTMENT OF CONSERVATION

DIVISION OF OIL, GAS AND GEOTHERMAL RESOURCES

REPORT OF OCCURRENCES

THE CHEVRON FATALITY ACCIDENT JUNE 21, 2011

AND AREA SURFACE EXPRESSION ACTIVITY

PRE AND POST ACCIDENT

SECTIONS 21 & 22 T.32S./R.23E.,

MIDWAY-SUNSET OIL FIELD

KERN COUNTY

May 2012

2 REPORT OF OCCURRENCES

Accident Response

At 1243 hours on June 21, 2011 the Division of Oil, Gas and Geothermal Resources‟ (DOGGR) District 4 office received a telephone call from Chevron Corporation (Chevron) employee Darren Walrath, reporting a fatality accident had occurred that morning at approximately 1045 hours on Chevron pr operty section 21 T32S,R23E, in the Midway -Sunset Oil F ield. According to Mr. Walrath, on the morning of June 21, 2011, a release of steam had been noticed by workers coming from near a known and previously open surface expression location . An engineered subsurface containment structure had recently been constructed to capture fluid and steam emissions migrating from the surrounding underground area to this surface location. Because of the proximity to a Chevron Well 20 (API 029-23672), it had come to be known as the Well 20 surface expressio n. As stated in the District 4 dispatch report ( attached) taken from Mr. Walrath, “Three men were checking steam emanating from the ground. Ground gave way, one worker slipped feet first into a hole. Other workers could not react in time to save him from falling.” The attached photographs show the condition of the area before (Photographs 1 -8 & Aerial Photograph 2 ) and after placement (Photographs 9- 11) of the subsurface c ontainment structure, additional descriptions are to follow. The attached diagram is of the proposed subsurface containment structure and may not represent the completed project at the site.

DOGGR representatives Burt Ellison and Michael Toland responded to the incident arriving onsi te at approximately 1430 hours . A staging area, manned by Chevron emergency response personnel, was set up near the accident loca tion. Chevron representatives onsite included Darren Walrath, Art Lewis, Tim Nishikubo and Bob Alan.

Also present at the staging area were members of the Kern County Sheriff‟s Department, the Kern Coun ty Fire Department, as well as, CalOSHA representative Paul Ricker. It was reported by Chevron that the Kern County Health Department and County Coroner had been notified of the incident. Chevron construction engineer David Taylor was reported to be the victim of the accident. It was also reported by Chevron that Mr. Taylor had been a member of the engineering team involved in the construction of the aforementioned subsurface containment structure.

Due to the uncertain stability of the surrounding ground, access to the actual accident location was restricted. Viewing of th e site was from a distance of approximately 50 to 60 yards. The scenario explained onsite to DOGGR personnel by Chevron representatives agreed with the initial report that several men had approached a plume of steam to investigate , when one fell into a small sink hole. It was also reported by

3 Chevron that the men had approached the location with caution and avoided any ground that appeared wet on the surface. An a ttempt was made by the other men to rescue the trapped man with an object long enough reach him, but he continued to sink further into the ground. Although the location was restr icted with yellow caution tape after the accident, no warning or caution signs were observed indicating t hat previous open surface expressions had once occupied the site.

The surface expression site , prior to the construction of the subsurface containment structure, had included : an open surface expression pit of hot wate r and oil on a lower terrace (Photograph 2), several smaller steam/water/oil surface expression vents on a n upper terrace (Photographs 5-8) and a large steaming crater on the slope between the two terraces (Photograph 1) . The reported project that included the subsurface containment s tructure, subsequent backfilling , ground leveling, and placement of associated surface equipment of the subsurface containment structure , appeared to have removed any indication that open surface expressions had once occupied the site (Photographs 9 & 10).

It was confirmed by Chevron that their steam injection operations in the area had been shut-in and that neighboring TRC Operating Company, Inc. (TRC) had been contacted to inquire on the status of their cyclic steam injection wells. It was later reported that Chevron had been maintaining a 500 foot radius restriction of steam injection around this location for many months. It was also later reported by TRC that their normal schedule of steam injection had ended on June 21 and their wells had begun their flow back phase. The property lease line dividing Chevron and TRC is approximately 100 feet from the Well 20 surface expression area.

Along with the CalOSHA representative, DO GGR staff traveled to a vantage point for an improved view of the accident location (Photograph 9) . From this location the surface equipment associated with the subsurface containment structure could also be viewed in relation to the accident site. A Chevron employee was present to explain operations of the recently constructed containment stucture . After returning to the staging area to drop off the CalOSHA employee, DOGGR personnel left the area at approximately 1530 hours and noticed excavation equipment beginning to be staged near the accident site .

The accident command center at Chevron‟s Midway -Sunset field office, approximately eight miles from the accident site, was visited at approximately 1545 hrs and contact was made with Incident C ommander, Chevron Operations Supervisor Kevin Smith . A meeting wit h all emergency personnel had just been conducted, and a plan of action had been determined. Limited excavation of th e site for retrieval of the accident victim was to begin that evening. If discovery was at a shallow depth, retrieval was then to be

4 completed. However, if after sev eral feet of excavation the victim was not encountered, excavation would resume the following day . DOGGR representatives requested that they be notified when operations were expected to begin.

Upon returning to the District 4 office that evening , phot ographs of the surface expression prior to construction of the subsurface containment structure (Photographs 1 and 2) were reviewed and compared to the photog raphs taken after the accident (Photographs 9 -11). Also reviewed was a schematic drawing of the proposed containment structure, sent to t he District 4 office by Chevron prior to the incident (Diagram 1) . Evaluating the data, it was determined that the probable location of the accident was near or over the site once occupied by the steaming crater.

At approximately 1910 hours Michael Toland was notified by Chevron Incident Commander Kevin Smith that the limited excavation oper ations were to begin in approximately one hour. DOGGR representative Michael Toland arrived onsite at 2040 hours just as excavations operations were commencing. A discernible amount of steam increased from the location. After excavating approximately 4 to 5 feet the accident victim was discovered.

The DOGGR representative left the location at 2300 hours and n otification was made to him at 0700 hrs on June 22, by Incident Commander Kevin Smith, that the operations were completed at 0400 hours. All emergency personnel and most of the equipment were removed from the Chevron location. The site and all access routes to the location were restricted and a private security guard was stationed to restrict access.

TRC’s “Bull 9” Surface Expression

On June 22, at approximately 1500 hours , Michael Toland visited the Chevron accident area in conjunction with an inspection of a large surface expression that had occurred that morning on the adjacent lease property of TRC . This new surface expression would become known as the “Bull 9” surface expression. The surface expression near TRC‟s “Bull 9” well is approximately 400 feet from the Chevron accident site (Photographs 12 and 13 ). Michael Toland was met by TRC Safety Director, Bill Davidson. It was reported that the surface expression was discovered at approximately 0600 hours on June 22 , and that it broke the ground surface unexpectedly and began flowing quickly. According to Bill Davidson, w ithin the first 24 hours approximately 500 barrels (bbls) of fluid had been removed from the site and approximately 150 bbls had been removed during the second 24 hours.

5 On June 28, Michael Toland visited the “Bull 9” site. An estimated 2 to 3 bbls of fluid an hour was se en flowing from the site. TRC Lease Supervisor , Mike Hudgens , reported that approximately 1000 bbls of fluid had been removed from the location since the surface expression began. Fluid was reported to have been flowing intermittently. The estimated water cut from this fluid is at least 90% (10% oil and 90% water).

Although not reported by TRC, a reactivation of another surface expression was discovered on the June 28 visit. The event was located approximately 1 50‟ east of the Chevron containment structure and the June 21 fatal ac cident site. After being contacted by District 4, Mike Hudgens reported on June 29 that the reactivation had begun on June 27 and approximately 30 bbls of fluid had been removed. An area of approximately 20‟x 20‟ area had been bermed and netted (Photograph 14).

Additional excavation , and a significant increase in the amount of steam coming from the Chevron accident site, was noted during the June 28 area visit.

Tilt Meter Data

On July 1 the DOGGR‟s District 4 office received requested information from Chevron regarding area tilt meter activity for the 10 days preceding the accident, as well as reports of tilt meter events that have been observed since June 21. Numerous tilt meter instruments positioned in the area continually monitor local ground movement. Ground movement may occur when steam is injected into the subsurface oil reservoir. The data, received and analyzed by the contractor (Pinnacle), indicates that 4 separate tilt meter events (June 13-14, 17-19, 18-19 and 20 -21) occurred in the area prior to and the day of the accident (Attachments 1- 4). All four events happened on Chevron property, but three of the events occurred along the boundary between Chevron and TRC leases.

Interpretation of the data received was from Pinnacle, the contracting company that monitors the tilt meters. Chevron has requested c onfidential status for the tilt meter information.

Tilt Meter Data Interpretation from Pinnacle

The following are descriptions of Pinnacle interpreted data from tilt meter events occurring 10 days prior to the June 21 accident and until June 27.

June 13-14, a tilt meter event occurred at the Well 20 surface expression/ accident site at a depth of 378 feet , with 3 TRC wells and two Chevron w ells as possible source candidates (Attachment 1).

6 June 17-19, a tilt meter event occurred appro ximately 2100 feet to the northwest of the Well 20 surface expression at a depth of 1020 feet, with one Chevron well suspected as the event source (Attachment 2).

June 18 -19, a tilt meter event occurred approximately 400 feet south of the Well 20 surface expression at a depth of 605 feet , with one Chev ron well suspected as the event source (Attachment 3).

June 20 -21, a tilt meter event occurred approximately 500 feet north of the Well 20 surface expression at a extremely shallow depth of 50 feet , with one Chevr on well suspected as the event source (Attachment 4).

June 22-24, a tilt meter event occurred within 250 feet of the large surfac e expression on the “Bull‟ lease, as reported by TRC on June 22. This e vent occurred at a depth of 275 feet, with two Chevron wells interpreted as being candidates for initiatin g the event.

This event is approximately 5 00 feet north of the Well 20 surface expression/accident site (Attachment 5).

June 24-26 and 26-27, two other tilt meter events occurred approximately 700 feet north and 1500 feet northwest of the Well 20 surface expression at depths of 675 feet and 880 feet, respectfully. Based on the Pinnacle data, Chevron wells are interpreted to be the source of these events (Attachments 6 & 7).

Follow-up Site Inspections

During the afternoon of July 7, Michael Toland visited the Chevron accident location and the surface expression s on TRC‟s “Bull” lease. The site of the accident , and subsequent excavation , had continued as an active surface expression, with a crater approximately 10 feet in diameter expelling water and oil on the surrounding ground and audible sounds of fluid movement from inside the crater from approximately 40 y ards distance (Photographs 15 and 16 ). Chevron‟s explanation of the increased activity was that some fluid was removed from the crater. The release of th e pressure caused by the removal of the fluid was sufficient enough to allow the activity to begin. There were plans to put fluid back i n the crater and observe any change in activity . DOGGR requested to be informed of the results .

The “Bull 9” surface expression on the TRC lease appeared similar to the previous week‟s observation. The surface express ion‟s crater had increased in size and deeper

7 erosion of the terrace s lope had occurred (Photograph 17 ). It was reported by TRC‟ s field supervisor that approximately 100 bbls/day of fluid continued to be removed from the site. Activity at the smaller TRC surface expression , east of the Chevron accident site, had also increased with approximately 30 bbls/day of fluid r eportedly removed (Photograph 18). It was reported that steam injection in the area had not been resumed by TRC.

On July 13, DOGGR staff again visited the Chevron accident site and the TRC “Bull 9” surface expression. The crater at the accident site, that was expelling fluid the previous week, had no visible activity. The TRC “Bull 9” surface expression appeared m ore active than the previous week and approximately 100 bbls/day of fluid was reportedly being removed from the bermed containment area, according to a TRC representative.

The sites were viewed again on July 21 in conjunction with a visit to the area‟s su rface expressions by DOGGR personnel and other state officials . The crater at the accident site had no visible activity, but evidence of a minor amount of fluid having being recently expelled was noticed . Fluid flowing from the TRC “Bull 9” surface expression had diminished significantly to an estimated 1 to 2 bbls/hour.

Additional Surface Expression Activity

On August 3, at 1000 hrs, Chevron reported that a 5 foot surface expression , of less than one barrel of fluid, had appeared 40 feet northeast of the accident location and the present crater site. On August 5 at approximately 1100 hours , the site was visited by Michael Toland. Sometime during the previous night , the existing crater site had experienced a sudden and large explosive eruption that h ad expelled large rocks and spray of w ater and oil a distance of 30 to 150 feet (Photographs 19 - 21). In addition, two new surface expressions were observed to have broken the ground along the TRC side of the terrac e slope that divides TRC from Chevron (Photographs 22 and 23 ). The combined rate of flow of the two new TRC surface expressions appeared to be approximately 2-3 bbls/hour. Although continually venting steam, no additional eruptive activity was observed from the Chevron crater.

On August 5, Chevron Operational Supervisor Bob Allen was onsite to report additional surface expression activity . Mr. Allen reported that Chevron‟s current steam injection radius re striction was at least 5 00 feet and that tilt meter events had b een recorded during the week. He also reported that on August 3, the two new TRC surface expressions were significantly more active than pre sent, and that the fluid flowing from them had overflowed the containment berm. No report has been received by DOGGR

8 from TRC regarding the two new surface expression events. Mr. Allen also reported that TRC well „Bull” 38 had been observed under steam injection during the past week.

At approximately 300 feet from the crater eruption, it may have been the closest TR C well under injection.

On the morning August 17 the DOG GR was notified by Chevron that an even larger eruption had occurred from the Chevron Well 20 surface expression crater , expelling fluid and spray to a height of approximately 100 feet , and releasing a steam plume to an even greater height. Onsite field personnel reported ground trembling and that the eruptive event lasted 15 to 20 seconds. A considerable amount of steam continued to be observed coming from the crater by DOGGR representative Michael Toland on the afternoon of August 17 (Photograph 24). Fluid and spray surrounded the site up to a distance of approximately 150 feet (Photograph 25). Fluid flow from the two smaller surface expressions near the crater, first reported on August 3 , also had increased to approximately 5 bbls/hour.

DOGGR Steam Injection Restriction and CalOSHA Work Exclusion Zone Orders

On July 7, DOGGR i ssued the f irst o f three orders to Chevron and TRC restricting steam injection around the Well 20 surface expression accident location. The first restriction, Order 1012, was for a 150 foot radius around the accident location. The order was ammended on July 11 , and increased to 300 feet. On August 5, the day of the first eruption of the Well 20 surface expression crat er, Order 1015 was issued increasing the steam restriction radius to 500 feet. F ollowing the la rger eruption event on August 17, Order 1016 was issued on August 26, increasing the steam restriction radius to 800 feet.

Thermal activity at the Well 20 surface expression crater, including the release of steam, water and oil , continued, and during the months of S eptember through November intensified along with the enlargement of the crater (Photograph 26) . Since late November, the amount of fluid released has declined from approximately 30 0 to 400 bbls/day to 30 to 40 bbls/day. The associated emission of steam is intermittent.

Fluid release at the “Bull 9” surface expression remained consistent at approximately 30 bbbls/day into November and has since gradually declined to approximately 1 to 2 bbls/day. The “Bull 9” surface expression has not exp erienced a significant release of steam.

On September 29, CalOSHA issued to Chevron a work exclusion zone order prohibiting access to the Well 20 surface expression area. The order also included the area extent

9 of the lateral drains associated with subs urface containment structure. TRC was not included in the order. A work safety plan prepared by Chevron allowed access by CalOSHA to the surface expression area to begin remedial and investigative excavation. Operations began in early December (Photograph 27).

Additional Information

Steam injection into the shallow (400 to 1000 feet) diatomite heavy oil reservoir began in this area of the Midway -Sunset Oil Field during the mid 1990s . Above the diatomite oil reservoir are porous sands. Surface e xpressions began occuring approximately a year after steam injection commenced. Approximately thirty surface expressions have occurred in this a rea of approximately one half mil e by one quarter mile . All of the area‟s surface expressions, except for the Well 20 surface expression and the “Bull 9” surface expression, could be described as having a seep -like characteristic , in that the oil and water comes to the surface of the ground slowly and there is minimal associated steam.

The surface release of steam and fluid in the Well 20 surface expression area has been reported by Chevron to have begun in 2006 . The Well 20 surface expression containment pit as well as other min or surface expressions can be seen in a 2008 aerial photograph (Aerial Photograph 1 ). A 2010 aerial photograph shows fence and netting enclosing the Well 20 surface expression containment pit, crater and surface expressions on the upper terrace (Aerial Photograph 2 ). The 2010 aerial photograph also displays TRC surface expression sites , including the approximate location of the “Bull 9” surface expression.

In 2008, Chevron Well 20 (API 029-23672), adjacent to the Well 20 surface expression, was re-abandoned. It was the third abando nment operation on this well. The first two abandonment operations were in 1997 and 2003. Damaged well casings may be , in some cases, partially responsible for the occurrence of surface expressions. Chevron has stated that Well 20 is a complex damaged well, that it is unclear whether it is potentially a condu it for the surface ex pression and may be re -entered to perform additional abandoment work if it is determined to be in communication with the Well 20 surface expression.

In the months prior to the construction of the subsurface containment structure, the fenced and screened surface expression activity area on the upper and lower terraces, in the vicinity of the original Well 20 surface expression, covered an area of thousands of square feet.

10 The history of occurrence and reactivation of surface expressions involvi ng steam, water and oil in the Well 20 surface expression area, on both the upper and lower terraces, is intermittent and unpredictable.

Along with the subsurface containment structure, t he pre-June 21, 2011 remediation of surface expressions on the upper terrace, lower terrace and the main cr ater most likely included the backfilling of soil and compaction with heavy equipment.

Despite a self-imposed 500 foot radius restriction of steam injection around the Well 20 surface expression by Chevron prior to the June 21 accident, and the 800 foot DOGGR- imposed radius restriction of steam injection after the August 17 eruption , the release of steam water and oil at that Well 20 surface expression has continued .

There are TRC injection wells within the 500‟ radius of Chevron‟s Well 20 surface expression. Prior to the June 21 accident, TRC did not have a steam injection restriction radius from the Well 20 surface expression.

Pinnacle i nterpreted tilt meter data, available to both Chevron and TRC, indicated 3 separate groun d movement e vents at or in close proximity of the Well 20 surface expression within 8 days of the accident. The Pinnacle data suggest that both Chevron and TRC steam injections wells are candidates for the tilt meter events.

Of the area‟s approximately 30 surface expressions, the Well 20 surface expression has been the area‟s single most continu ally volatile event for several years. The June 22 surface expression near TRC “Bull 9” may have the potential to be in the same category, having flowed thousands of bbls of fluid in the subsequent months. At approximately 40 0 feet apart and on the same geographical plane, the two events are evidently geological “focal points” for the steam and fluid that migrates through the subsurface due to steam injection.

It may be possible, because of the subsurface conduits created by steam injected over fracture grad ient during the previous years , that steam, water and oil may continue to travel along these pathways even if steam is injected at or below fracture gradient.

11 Additional Information Needed

Did Chevron have any safety concerns regarding the area after completion of the subsurface containment structure and terrace re-construction?

Was the subsurface vent to the crater of the original surface expression, prior to the construction of the subsurface containment, captured by the containment structure?

How we re the crater and other surface expression vents on the upper terrace mitigated/remediated?

Was the possible re-emergence or expansion of the original surface expression crater and upper terrace vents considered when designing the subsurface containment structure and subsequent terrace re-construction?

What communication regarding steam injection cycles, steam volumes and interpretation of tilt meter events existed between Chevron and TRC prior to the June 21 accident?

What is the reason for the apparent contrariety of Pinnacle interpretated data indicating Chevron wells as potential candidates for tilt meter events , presented in this repor t, and Chevron‟s assertion that there had been a 500 foot self imposed steam re striction radius around the Well 20 surface expression in the months prior to the accident?

Summary

Due to the shallowness of a heavy oil diatomite reservoir, the proximity of the reservoir to the axis of a structural anticline , and the injection of steam over formation fracture gradient into the reservoir to assist in the extraction of the heavy oil, surface expressions have been occuring in this confined area of the Midway -Sunset Oil Field since the late 1990s, shortly after steam injection began. Surface expression activity at the Well 20 surface expression area began in 2006. The uncontrolled release of steam, water and oil at the Well 20 surface expression has been intermittent.

A re -abandoment operation of Chevron Well 20 (API 029 -23672) near the surface surface expression area , was conducted in 2008. It was the third abandonment operation to be performed on Well 20 . Damaged well bores near the Well 20 surface

12 expression may be responsible, at least in part, for the high intensity of thermal activi ty of that surface expression. Other wells may be abandoned near the Well 20 surface expression in the future.

Known surface expression locations have been required by DOGGR to be netted for safety and the protection of wildlife. O il and gas operators have been requested to notify DOGGR of any new surface expression, reg ardless of volume. In 2010 the Well 20 surface expr ession area, containing se veral surface expression vents, was fenced and netted (Photographs 1-4 and Aerial Photograph 2).

In an attempt to control steam and fluids from surfacing , Chevron reportedly began in the early months of 2011 construction of a subsurface containment structure at the Well 20 surface expression site. The engineered structure would be placed over the principle portion of the Well 20 surface expression and include three radial drain s and associated surface equipment. The project required terrace excavation and remediation of surface expression vents on the upper and lower terraces and the removal of the fence and netting. It is not known if there were plans to replace the fence and netting after completion of the s ubsurface containment stru cture. The project was reportedly completed in April/May 2011.

Chevron reported on June 21, 2011 that an employee ha d fallen into a sink hole and that co-workers were unable to rescue him. DOGGR representatives responded to the scene and observed that there was no indication that a large surface expression area had once occupied the site. It was determined by DOGGR t hat the accident location was at or near the site of a large crater associated with the Well 20 surface expression (Photographs 9-11).

During the ensuing weeks after the June 21 accident, thermal activity at the accident site increased significantly as steam, water and oil began to be expelled from an emerging and enlarging crater. Two large eruptions of steam, water, oil and rocks occurred on August 5 and August 17 (Photographs 19 & 25). Oil and water began to be released at the surface above the subsurface containment structure.

On July 6, July 11, August 5 and August 26, DOGGR issued steam injection restriction orders of 150, 300, 500 and 800 feet, respectively, around th e accident location to Chevron and TRC. Prior to the June 21 accident, Chevron reportedly had, for many months, a self imposed 500 foot steam injection restriction radius around the Well 20 surface expression area. TRC, with numerous steam injectio n wells within 500 feet of the Well 20 surface expression, had no steam injection restriction until the DOGGR

13 orders. On September 29, CalOSHA issued to Chevron a work exclusion zone order prohibiting access to the Well 20 surface expression area.

With a work safety plan approved by CalOSHA and thermal activity at the Well 20 surface expression crater still active, Chevron began investigative and remedial excavation of the Well 20 surface expression area in early December (Photograph 27 ).

Three radial drains have reportedly been removed and a large diameter metal culvert has been placed over the surface expression crater ‟s vent (Photograph 28). The subsurface containment structure, reportedly buried to a depth of 20 to 30 feet, as of the date of this report, has yet to be unearthed and its conditon is unknown.

Prepared an Written by;
Michael Toland
Associate Oil and Gas Engineer
District 4

Reviewed and Approved by;
Burton Ellison
Senior Oil and Gas Engineer
District 4

14 15

16 Photograph 1 - View of Well 20 surface expression site, fluid pit and associated crater on 10/11/10. Accident location is in the vicinity or to the left of crater rim.

Photograph 2 - View of Chevron Well 20 surface expression site and fluid pit on 10/11/10. Location was continually active with surfacing water, oil and steam. A road at the end of the netting leads to the upper terrace.

17 Photograph 3 - View of the Well 20 surface expression area on October 11, 2010. The crater and fluid pit are located on the lower terrace under the netting in the middle of the photograph. N etting is also seen extending around a large area on the upper terrace due to surface expression activity.

Photograph 4 - Well K210 is located on the upper terrace above the Well 20 surface expression, approximately 30‟ to 4 0‟ from the accident location. This area had surface expressions and was also fenced and netted. Date of photograph is October 11, 2010.

18 Photographs 5 and 6 – View of surface expression activity on the upper terrace near well K210 on February 16, 2010, prior to the placement of the fencing and netting.

19 Photographs 7 and 8 – View of upper te rrace surface expressions near well K210 on February 16, 2010, prior to the placement of fencing and netting.

20 Diagram 1 - Plan vi ew of the proposed containment structure built over the Well 20 surface expression. The emergency fluid pit is labeled. The crater seen in the previous picture would be located above and to the right of the emergency pit. The subsurface containment structure includes the elongated cylinder shaped object . Not shown in this diagram is the location of three French drains that were reportedly placed radiating from the containment structure. The large circles in the diagram are area wells. Well K210, on the upper terrace, can be seen as a half circle at the top of the diagram. The road that connects the upper and lower terrace s is to the right of the containment structure.

21 Photograph No. 9 - View of the surface equipment above the subsurface co ntainment structure and remediated surface expression site on the day of the accident , June 21, 2011. The previous surface expression fluid pit was located at the base of the slope above where the present subsurface containment structure exists (the ladder in the picture is a good reference). T he crater would have been somewhere between the right of the brown pipe running up the slope of the terrace and the corner of the upper terrace. Well K210 can be seen to the right of the yellow wind sock pole. The accident location is to the right of the wind sock pole approximately 15 feet to 20 fee t, at the edge of the terrace . The two vertical cylinders on the upper terrace provide elevated steam release from the subsurface containment structure on the lower terrace. The road connecting the lower and upper terrace s is at the extreme right of the picture.

22 Photograph No. 10 - View of the accident site on the upper terrace overlooking the surface equipment of the subsurface containment structure and the remediated surface expression on June 21, 2011. Well K210 is located on the far right of the pi cture. The accident spot is 15 feet to 20 feet to the left of the yellow wind sock pole, at the base of the berm . The red dish discoloration of the bermed soil at the accident site , and the future location of t he crater, is of interest and may be an early indication of steam migrating to the surface.

23 Photograph No. 11 - View of the accident spot. The victim‟s hard hat can be seen at the base of the berm at the edge of the sink hole.

24 Photograph No. 12 - View of the June 22 , 2011 surface expression on TRC Operating Company‟s “Bull” lease , section 22 T32S/R23E. Crater of the surface expression can be seen o n the upper terrace above yellow horizontal guard post. Approximately 600 bbls of fluid were reportedly rem oved from the bermed pit in 48 hours and approximately 1000 bbls of fluid over the first week of activity. This location is approximately 400 feet from the Chevron accident site.

25 Photograph No. 13 – View of the TRC June 22 surface expression location in relationship to the June 21 Chevron accident site. The TRC surface expression is on the left and the accident site is on the right , approximately 40 yards beyond the yellow excavator, near the base of the orange wind sock ‟s pole. This surface expression was recorded as tilt meter event on June 22.

26 Photograph 14 – View of the June 27 reactivated surface expression location on TRC Operating Company‟s “Bull” lease in relationship to t he June 21 Chevron accident site and surface equipment of the subsurface containment structure . The reactivated surface expression is the bermed and netted area on the right. The accident site is 15 feet to 20 feet to the right of the wind sock pole. The surface equipment is on the left at the base of the slope. The two pipes running up the slope carry steam fr om the buried surface containment structure to be vented in the two silver cylinders. The boundary between Chevron and TRC is essentially the slope leading to the yellow excavator.

27 Photograph 15 – View of the Chevron accident location on July 7, 2011. The release of fluid and steam to surface had increased significa ntly since the June 21 accident, as well as the enlargement of the associated crater.

28 Photograph 16 – View of Chevron accident site on July 7, 2011. The Crater is approximately 10‟ wide , intermittentl y expelling oil and water onto the surrounding ground.

29 Photograph 17 – View of surface expression on TRC‟s “Bull” lease, July 7, 2011. An increase in the crater diameter on the upper terrace and deeper erosion of the terrac e slope was noted. A pproximately 100 bbls/day of fluid was being removed from the containment berm on the lower terrace.

30 Photograph 18 – View of the TRC reactivated surface expression to the east of the Chevron accident site on July 7, 2011. The TRC reactivated surface expression is at the base of the slope that is essentially the boundary between TRC and Chevron. The crater near the accident site is in the dis tance with steam rising and oil staining along the terrace slope from fluid recently expelled.

31 Photograph 19 – View of the Chevron Well 20 and the nearby TRC surface expression areas, on August 5, 2011. The eruption expelling rocks, water and oil occurred sometime during the night of August 4.

32 Photographs 20 and 21 – Views on August 5 of the material ; water, oil and rocks, expelled from the crater during the night of August 4.

33 Photograph 22 – View of the two new TRC surface expressions that became active on August 3. They are located at the top and bottom of the stream of fluid. The bermed pit was put in pl ace after the reactivation of a surface expression at that location on June

27. 34

Photograph 23 – View of the eastern extent of the crater eruption onto TRC property and the two new TRC surface expressions located at the base of the oil stained slope.

35 Photograph 24 – View of Chevron Well 20 surface expression crater on Augu st 18, 2011 one day after the large August 17 eruption. Plumes of steam continued to rise from crater for several days following the event.

36 Photograph 25 – View of area extent of fluid flow from the Well 20 surface expression crater during the August 17, 2011 eruption event.

37 Photograph 26 – View of the Well 20 surface expression area on November 17, 2011.

The enlargement of the crater and subsequent collapse of its walls release d water and oil onto the lower terrace. Water and oil also flow ed to surface at the location of the equipment above the subsurface containment structure.

38 Photograph 27 – View of the sta rt of investigative and remedial excavation of the Well 20 surface expression area on December 1, 2011. Spot locations were excavated to determine the stability of the ground and subsurface. No ground or subsurface instability was discovered.

39 Photograph 2 8 – View of Well 20 surface expression area on January 20, 2012 after crater and terrace excavation. As seen in the middle of the photograph, a large diameter metal culvert has b een placed over the crater vent . Trenches excavated to remove the radial drains can be see n extending from the culvert. Minor amounts of energy, in the form of bubbles, rise to the surface inside the trenches. The subsurface containment structure has not be en excavated.

40 Aerial Photograph 1 – 2008 aerial view of the Chevron Well 20 surface expression area, showing the surface expression containment pit as well as other surface expressions in the immediate vicinity.

41 Aerial Photograph 2 – 2010 aerial view of the Chevron Well 20 surface expression area and location of TRC surface expressions, including the approximate future location of the “Bull 9” surface expression.

42 Attachment 1 – Tilt Meter Event 6/13 -14/11 T he red triangle represents the location of the tilt meter event and for this slide only, is the approximate location of the Well 20 surface expression. The gray circles are the wells interpreted to be source candidates for the tilt meter event. The line running through the middle of the map is the dividing property line between Chevron and TRC .

43 Attachment 2 – Tilt Meter Event 6/17-19/11

Attachment 3 – Tilt Meter Event 6/18-19/11

44 Attachment 4 – Tilt Meter Event 6/20-21/11

45 Attachment 5 – Tilt Meter Event 6/22/11

46 Attachment 6 – Tilt Meter Event 6/24/11

47 Attachment 7 – Tilt Meter Event 6/26/11

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Long Beach City CouncilMarch 21, 2023

Long Beach City Council
March 21, 2023