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HomeMy WebLinkAbout2013-10-23 Planning & Zoning Packet2a CITY OF KENAI PLANNING & ZONING COMMISSION OCTOBER 10, 2013 — 7:00 P.M. CITY COUNCIL CHAMBERS CHAIR JEFF TWAIT, PRESIDING MINUTES 1. CALL TO ORDER Chair Twait called the meeting to order at 7:00 p.m. a) Pledge of Allegiance Chair Twait led those assembled in the Pledge of Allegiance. b) Roll Call Roll was confirmed as follows: Commissioners present: Chair J. Twait, P. Bryson, B. Shiflea, H. Knackstedt, K. Peterson, D. Fikes Commissioners absent: J. Arness (excused) Staff /Council Liaison present: Acting Planner N. Carver, Council Member T. Navarre, City Clerk S. Modigh A quorum was present. c) Agenda Approval Commissioner Twait requested the following changes to the agenda: ADD: 1 E — Correspondence from Commissioner Arness requesting excused absence. 4A — PZ13 -37 American Legion Plat Map of City utilities 7A— Buccaneer AK Operations, LLC. Power Point presentation from October 2, 2013. MOTION: Commissioner Knackstedt MOVED to approve the agenda as amended and Commissioner Shiflea SECONDED the motion. There were no objections. SO ORDERED. d) Consent Agenda MOTION: Commissioner Peterson MOVED to approve the consent agenda and Commissioner Bryson SECONDED the motion. There were no objections. SO ORDERED. e) `Excused Absences Approved by consent agenda. *All items listed with an asterisk ( *) are considered to be routine and non - controversial by the Commission and will be approved by one motion. There will be no separate discussion of these items unless a Commission Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. 2. *APPROVAL OF MINUTES — September 11, 2013 Approved by consent agenda. 3. SCHEDULED PUBLIC COMMENT — None. 4. CONSIDERATION OF PLATS a) PZ13 -37 —Preliminary Original Townsite of Kenai American Legion Replat and ROW Vacation, Submitted by Integrity Surveys, 820 Set Net Drive, Kenai, AK Acting Planner Carver reviewed the staff report included in the packet, recommending approval with no contingencies. MOTION: Commissioner Shiflea MOVED to approve PZ13 -37 and Commissioner Peterson SECONDED the motion. Twait opened the meeting for public comment; there being no one wishing to speak, the public comment was closed. Commissioner Bryson noted his support of the plat. VOTE: Commissioners voting YEA: Bryson, Knackstedt, Peterson, Twait, Shiflea, Fikes Commissioners voting NAY: MOTION PASSED UNANIMOUSLY. 5. PUBLIC HEARINGS — None. 6. UNFINISHED BUSINESS —None. 7. NEW BUSINESS a) Application to Lease Airport Lands Outside the Kenai Municipal Airport Reserve by Buccaneer Alaska Operations, LLC for Lot 8, Kenai Industrial Park Subdivision for the purpose of a Natural Gas Production Facility (Gas Manufacturer /Storage); Operation of PLANNING AND ZONING COMMISSION MEETING October 9, 2013 PAGE 2 Class II Injection Facility (Storage /Disposal of Onsite and Offsite Materials) — Discussion /Recommendation. Acting Planner Carver reviewed the amended lease which included operation of a Class II Injection Facility for the storage /disposal of onsite and offsite materials. Carver advised the amended lease complied with the Comprehensive Plan and the zoning code. It was noted that Council, at its October 2 meeting, approved a special use permit allowing Buccaneer to begin its operations on a temporary basis prior to execution of the long -term lease which will expire upon execution of said lease or in September 2014. IT, relffork Commissioner Shiflea MOVED to recommend Council approval of the Application to Lease Airport Lands Outside the Kenai Municipal Airport Reserve by Buccaneer Alaska Operations, LLC for Lot 8, Kenai Industrial Park Subdivision for the purpose of a Natural Gas Production Facility; Operation of Class II Injection Facility (Storage /Disposal of Onsite and Offsite Materials) and Commissioner Peterson SECONDED the motion. Twait opened the meeting for public comment. Buccaneer Consultant Bob Britch explained the need for the Disposal Facility and Class II Injection Well. Discussion ensued regarding the disposal of waste materials and required permits which have already been secured by Buccaneer. Commissioner Knackstedt requested secured permits be provided to the commission for review in the next meeting packet. Carver further noted the amended lease would be 30 years versus the current 20 years. VOTE: Commissioners voting YEA: Bryson, Knackstedt, Peterson, Twait, Shiflea, Fikes Commissioners voting NAY: MOTION PASSED UNANIMOUSLY. 8. PENDING ITEMS a) Storefront Improvement Program. F�:7�1�7i�3 a) City Council — Council Member Navarre reviewed the action agenda of the September 18 and October 2 City Council meetings included in the packet. b) Borough Planning — Commissioner Bryson reviewed the September 23 Borough PLANNING AND ZONING COMMISSION MEETING October 9, 2013 PAGE 3 Planning Commission agenda included in the packet. c) Administration • Advised that administration has not provided direction on how to prioritize requested work session topics, but that the commission would prioritize at its next meeting. • Noted she would be out of the office until October 22. • Reported Council approved funds for commissioners to attend the Planning conference in Anchorage this November. Requested an email from individuals interested in attending with travel dates. 10. PERSONS PRESENT NOT SCHEDULED — None. 11. INFORMATION ITEMS a) PZ Resolutions — 3rd Quarter Report b) Building Permits — 3rd Quarter Report c) Code Violation — 3rd Quarter Report 12. NEXT MEETING ATTENDANCE NOTIFICATION — October 23, 2013 • Council Member Navarre advised he would be out of town on October 23, but would have another council member attend in his absence. 13. COMMISSION COMMENTS & QUESTIONS — None. 14. ADJOURNMENT There being no further business to come before the Commission, the meeting was adjourned at 7:50 p.m. Minutes prepared and submitted by: Sandra Modigh, CMC City Clerk PLANNING AND ZONING COMMISSION MEETING October 9, 2013 PAGE 4 Additional information may be submitted as a lay down the night of the meeting 5a STAFF REPORT To: Planning & Zoning Commission Date: October 10, 2013 GENERAL INFORMATION Res: PZ13 -36 (PZ11 -01) Applicant: Mark R. Landt, Vice President, Land & Business Development Phone: 281- 738 -6945 For: Buccaneer Alaska Operations, LLC 952 Echo Lane, Suite 420 Houston, TX 77024 Requested Action: Amend Conditional Use Permit for the purpose of Natural Gas Production Facility (Gas Manufacturer /Storage), and Operation of Class II Injection Facility (Storage /Disposal of Onsite and Offsite Legal Description: Street Address: KPB Parcel No.: Existing Zoning: Current Land Use: Land Use Plan: ANALYSIS Materials) Lot 8, Kenai Industrial Park Subdivision 700 Marathon Road 04501044 IL — Light Industrial Commercial Airport Industrial General Information: The City of Kenai has received an application from Buccaneer Alaska Operations, LLC to amend Conditional Use Permit PZl l -01, to include the operation of a Temporary Class II Injection Facility (Storage /Disposal of Onsite / Offsite Materials) on city-owned property located at 700 Marathon Road (Kenai Loop Pad #1). The property is zoned Light Industrial (IL) and accessed from a paved City maintained right -of -way. The request is to construct, maintain and operate a Temporary Drilling Waste Treatment Facility for the treatment of drilling waste generated from the West Eagle #1 located near Homer and Kenai Loop 2 -1 located on Pearson Ave. off Highbush Lane (PZ11 -21). The facility as proposed is described in the application letter dated 9/23/13 to the Alaska Department of Environmental Conservation (ADEC) and their approval letter dated PZ13 -36 (PZ11 -01) Page 2 9/24/13. All activities will be completed within a one (1) year time frame. This type of development is allowed by conditional use provided that all applicable safety and fire regulations are met. The following synopsis provides a permitting history for this location: • January 26, 2011 — Commission approved a Conditional Use Permit to construct a Natural Gas Production Facility. • August 1, 2011 — Drilling Permit issued. • September 2, 2011 — Building Permit issued (Wellhouse, Separator & Dehy Skids & electrical controls). • June 19, 2012 — Drilling Permit reissued. • November 16, 2012 — Building Permit issued (Wellhouse, Separator Skid & line heater skid). • March 27, 2013 — Commission recommends approval of lease for the purpose of a Natural Gas Production Facility. • July 19, 2013 — Drilling Permit reissued. • October 2, 2013 — Council approves Special Use Permit for the purpose of a Natural Gas Production Facility (Gas Manufacturer /Storage) and operation of a Class II Injection Facility (Storage /Disposal of Onsite /Offsite Materials). • October 9, 2013 — Commission recommends approval of lease amendment for the purpose of a Natural Gas Production Facility (Gas Manufacturer /Storage) and operation of a Class II Injection Facility (Storage/Disposal of Onsite /Offsite Materials). KMC 14.20.150 details the intent and application process for conditional uses. The code also specifies the review criteria that must be satisfied prior to issuing the permit. The criteria are: 1. The use is consistent with the purpose of this chapter and the purposes and intent of the zoning district. The property is zoned Light Industrial. This zone is designed to provide for the development of industrial and commercial uses which are usually compatible and which are of a type which has no nuisance effects upon surrounding property, or which may be controlled to prevent any nuisance effects upon surrounding property. New residential uses and other non- industrial uses, except as otherwise provided in this chapter, are not permitted in this zone as principal uses because it is intended that land classified in this zone be reserved for industrial and commercial purposes, and because the IL zone is not suited to the excluded uses. Gas manufacturing /storage is provided for as a conditional use in this zone provided that all applicable safety and fire regulations are met. The proposed facility appears consistent with the Light Industrial zone. PZ13 -36 (PZ11 -01) Page 3 2. The value of the adjoining property and neighborhood will not be significantly impaired. The proposed development is consistent with industrial uses in the zone. The facility is approximately 500 feet off Marathon Road. The closest residential development is located approximately 1400 feet to the east. Natural vegetation will be maintained around the site. A natural drainage way and wetlands to the north and east of the site will restrict future development in the area and provide a natural buffer. There is no evidence that this development will impair the value of adjoining property. 3. The proposed use is in harmony with the Comprehensive Plan. This property is classified as Airport Industrial. The Airport Industrial district identifies airport lands reserved for the Kenai Municipal Airport and its future expansion, and tracts needed for present and future aviation- related uses and activities. This property is located outside of the Airport Reserve and not needed for future airport operations. Funding from the lease of airport properties supports airport operations. The proposed facility is in harmony with the Comprehensive Plan. 4. Public services and facilities are adequate to serve the proposed use. The property is accessed off Marathon Road. The applicant has built an access road to the site. Water and sewer service are available off Marathon Road. Public services and facilities are adequate to serve the proposed development. 5. The proposed use will not be harmful to the public safety, health or welfare. State and Federal agencies regulate this type of development. Through the permitting process, mitigation requirements and restrictions on the development will be required to obtain permits from the various agencies. The facility will be built to industry standards and will meet all building and fire codes. The facility will be operated under industry guidelines. All personnel will be trained in general and site specific environmental, spill response, safety, and operating rules and regulations associated with this type of development. PZ13 -36 (PZ11 -01) Page 4 The proposed use will not be harmful to the public safety, health or welfare. 6. Any and all specific conditions deemed necessary by the commission to fulfill the above - mentioned conditions should be met by the applicant. These may include, but are not limited to measures relative to access, screening, site development, building design, operation of the use and other similar aspects related to the proposed use. Through the leasing and building permit process, the City will ensure that the required State and Federal permits are in order and that sufficient buffers are in place around the development. The site will be secured with security fencing. No additional conditions are recommended for the proposed facility. Building Official: No comment. RECOMMENDATIONS Buccaneer Alaska Operations, LLC has been operating a Natural Gas Production Facility (Gas Manufacturing/Storage) from this property since 2011. The applicant is requesting an amendment to Conditional Use Permit PZ11 -01 to include the operation of a Temporary Class II Injection Facility (Storage/Disposal of Onsite /Offsite Materials). The facility is located off Marathon Road and adjacent to the Beacon Occupational Health & Safety facility. The drilling operation requires a Special Use Permit from the City of Kenai to locate on airport lands. A drilling permit is also required under Kenai Municipal Code Title 5. The drilling portion of the project does not require a Conditional Use Permit. The applicant is proposing to store drilling wastes from the Kenai Loop Pad #2 located off Pearson Avenue and the West Eagle Pad located at near the Homer on the Kenai Peninsula. Drilling wastes will be processed and disposed of at the Kenai Peninsula Borough landfill. Buccaneer will be using the services of AIMM Technologies, Inc. (AIMM) of Kenai Alaska to implement the plan. AIMM is a qualified specialty cleaning company. This type of development requires multiple permits from the City, State, and Federal governments. The City does not have the expertise to regulate the oil and gas industry and relies on the State and Federal regulatory agencies to review and address permitting for the development and operation of the facility. Attached is the "Plan of Operations" for the Kenai Loop Prospect Exploration Program. In this document, the applicant outlines the permits that are required for this type of development. The City will issue and review the building permits to ensure the facility is built to meet required fire and building codes. The Conditional Use Permit will ensure that the development is consistent with the zone and in harmony with the Comprehensive Plan and that the PZ13 -36 (PZ11 -01) development is not a danger to the public. Page 5 The conditions required to issue the permit under KMC 14.20.150 have been reviewed. It is administration's opinion that the development meets those criteria and recommends approval with the following requirement: All permits required from City, State, and Federal agencies must be approved prior to construction of the facility. ATTACHMENTS: 1. Resolution No. PZI1 -01 2. Application 3. Drawings \I "Villaye with a Past, Gig with a Future "" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 / Fax: 907 - 283 -3014 www.ci.kenai.ak.us CITY OF KENAI PLANNING AND ZONING COMMISSION RESOLUTION NO. PZ13 -36 (PZ11 -01) CONDITIONAL USE PERMIT A RESOLUTION OF THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI GRANTING A REQUEST FOR A CONDITIONAL USE PERMIT TO: NAME: Buccaneer Alaska Operations, LLC USE: Amend Conditional Use Permit for the purpose of Natural Gas Production Facility (Gas Manufacturer /Storage), and Operation of Class II Infection Facility (Storaze/Disposal of Onsite and Offsite Materials) LOCATED: Lot 8, Kenai Industrial Park Subdivision & NO 12 —700 Marathon Road (Street Address/Legal Description) KENAI PENINSULA BOROUGH PARCEL NO: 04501044 WHEREAS, the Commission finds: That an application meeting the requirements of Section 14.20.150 has been submitted and received on: October 6, 2013 2. This request is on land zoned: IL — Light Industrial That the applicant has demonstrated with plans and other documents that they can and will meet the following specific requirements and conditions in addition to existing requirements: a. All permits required from City, State, and Federal agencies must be approved prior to construction of the facility. 4. That the Commission conducted a duly advertised public hearing as required by KMC 14.20.280 on: October 23, 2013. 5. Applicant must comply with all Federal, State, and local regulations. NOW, THEREFORE, BE IT RESOLVED, BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI THAT THE APPLICANT HAS DEMONSTRATED THAT THE Natural Gas Production Facility (Gas Manufacturer /Storage), and Operation of Class II Iniection Facility (Storage /Disposal of Onsite and Offsite Materials) THE COMMISSION DOES AUTHORIZE THE ADMINISTRATIVE OFFICIAL TO ISSUE THE APPROPRIATE PERMIT. PASSED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI, ALASKA, October 23, 2013. CHAIRPERSON: ATTEST: \ APPLICATION FOR CONDITIONAL USE PERMIT 7 : «. ,. i KMC 14.20.150 ,,,, PROPERTY OWNER PETITIONER REPRESENTATIVE Name, Fl„ccaneer Alaska Q eratons, LI.G Name: Mailing Address 952 Fchc Lane, Scite 42C Mailing Address: City, State Zip: Houston, Texas 77024 Cit , State Zip: Phone Number: 214-738-6945 Phone Number: Fax Number: Fax Number: Email: mlandt@bvccareereneroy,com Email: Tax ID #:0450 '029 i uu Current Le al Desc1 tion: T6N. R11 W, Sec. 33, SM. i at a. Kenai Indus *.r al Park Suod:v s as Conditional Use Requested Far: (Describe the project, and use additional sheets if necessary) Th s request is to construct constrict, ma ntair and operate a Temporary trilling Was'e Treatment Fac lity fo, the °reatment cf drilling waste generated from the West Fagle #1 and Kenai I. cap 2 -1 wells (see attached location map), The facility as proposed s described in our application letter io *.+e ADEC of 9'23,`13 and their apprcval on W24113, All activities w ll be completed witLir a ' year time frame, IF ,.,. L n uu�v jai 5.9 acres mequireu maacnmenss. Site Man /Floor Plan with Square Footage $125 Fee (plus applicable sales tax) KPB Tax Compliance (if applicable) AUTHORITY TO APPLY FOR CONDITIONAL USE: I hereby certify that (I am) (I have been authorized to act for) owner of the property described above and that I petition for a conditional use permit in conformance with Title 14 of the Kenai Municipal Code. I understand that payment of the application fee is nonrefundable and is to cover the costs associated with processing this application, and that it does not assure approval of the conditional use. I also understand that assigned hearing dates are tentative and may have to be postponed by Planning Department staff of the Planning and Zoning Commission for administrative reasons. 101212013 Date: Signature: fib "Z RECEIVED CITY OF KENAI OCT-62613 Revised 8/30/2013 1 PI,ANNING DEFA1111ENT I Page 1 of 3 The Planning and Zoning Commission may only approve the conditional use if the Commission finds that the following six (6) standards are satisfied. Each standard must have a response in as much detail as it takes to explain how your project satisfies the standard. The burden of proof rests with you. f=eel free to use additional paper if needed. The use is consistent with the purpose of this chapter and the purposes and intent of the zcming district: 'The Area is currently zoned airport industrial 'Airport activities may include high noise levers from aircraft activities. These same type of noises may be present during operation of the facilities. 'The operations are temporary in nature and no operations as proposed will occur past September 2014 (or more likely after March or April 2014). The value of the adjoining properCV and neighborhood will not be significantly impaired_ *The current City of Kenai plans include light industrial activities in the general area. 'Areas surrounding the site are currently minimally developed and owned by the City of Kenai. 'Areas to the north and east are currently undeveloped and AQarathon road lies to the west. 'Areas to the south is used for industrial training for oil field operations_ 'Activities under this proposed operation are temporary. The proposed use is in harmony with the Comprehensive Plan: 'The proposed activities are considered to be light commercial operations and will occur fora period of less than one year (eg -they are temporary)_ 'The activities are related to the natural gas development operations that currently occur at the location. Public services and facilities are adequate to serve the proposed use: 'Electric power lines run next to the site_ 'The waste treatment operations are generally self sufficient. 'Treated wastes from the operation will be sent to the Kenai Peninsula Borough Landfill near Soldotna J The proposed use will not be harmful to the public safety, health or welfare: k0perations will be contained in a fenced area that will be manned 24 hrs per day while underway. `The intent of the operation is to alter existing drilling wastes that have a low toxicity into inert wastes by solidification and then hauling them to an approved landfill for final disposal. Treatment and disposal is the most appropriate means to handle these wastes at this time. Rcvdised 8.:30,12013 Page 2 of 3 Any and ali specific conditions deemed necessary by the Commission to fulfill the above - mentioned conditions should be met by the applicant_ These may include. but are not limited to measures relative to access screening, site development. building design, operation of the use and other similar aspects related to the proposed use. "The operations proposed are only temporary for two wells and are being required in order to provide an option for waste handling until permanent facilities can be constructed (by others )_ The only viable option at this time appears to be storage in tanks until permanent treatmenUdisposal facilities are available. *Operations will be in a fenced area . The activities are possible because other operations such as drilling that currently occur on the site are not being conducted at this time. LAND USE Describe current use of property covered by this application: Generally undeveloped , zoned for airport industrial, and owned by the City of Kenai. Surrounding property: ;Describe how land adjacent to the property is currently being used.) North: Undeveloped. zoned for airport industrial, and owned by the City of Kenai. South: Developed and zoned for Education. Currently have training facilities in support of 0111gas industry. East: Undeveloped. zoned for airport industrial, and owned by the City of Kenai- West Undeveloped. zoned for airport industrial,. and owned by the City of Kenai. Marathon Road lies to the west. PROCEDURES FOR PERMITS REQUIRING PUBLIC HEARINGS AND NOTIFICATIONS The permit you have applied for may require Public Hearing and Notification under KhIC 14.20.280. The Planning and Zoning Commission meets the 2"d and 40 Wednesday of each month. To meet notice requirements. the Planning Department must receive your completed application 21 days prior to the meeting when the Public Hearing is scheduled_ • Applications requiring Public Hearings tnust be filed no later than noon on the date of the deadline. • Home Occupations and Landscape ,Site Rans do not require a Public Hearing. • Allow up to 4 weeks for the permitting process. • If required: The Fire Inspection Report must be received rier to processing the application. The Affidavit of Posting must be received 2 weeks prior, to the hearing date In order to schedule a public hearing. Resolutions cannot be issued until expiration of the 15 -day appeal period. Resolutions cannot be issued until documentation is received that the certificate of compliance is met. WHEN YOU HAVE A COMPLETED APPLICATION, CALL 283 -8237 TO SCHEDULE AN APPOINTMENT WITH THE PLANNING DEPARTMENT TO REVIEW THE APPLICATION. IF THE APPLICATION IS DETERMINED COMPLETE AND ACCEPTED, THE PUBLIC HEARING FEE OF $125 PLUS TAX WILL BE COLLECTED. YOU WILL BE GIVEN A SIGN TO POST AND AN AFFIDAVIT OF POSTING TO SIGN AND RETURN TO THE PLANNING DEPARTMENT TO BEGIN PROCESSING THE APPLICATION. Revised &'3&'2013 Page 3 of 3 ZIA -Y 0 \ \j� f� ca• a) i 0 7- 2 LIJ C CL . \� \ 44 1-0 'oe 4r -Y 0 \ \j� f� ca• a) i 0 7- 2 LIJ C CL I j M 0 W U) Lot 8, Kenai Industrial Park Subdivision PZ13- 36(PZ11 -01) Amend CUP notification 1000' llkillaYe with a Past, Ci� with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 1I Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 1992 MEMO: TO: Christine Cunningham, Assistant to the City Manager FROM: Nancy Carver, Planning Assistant DATE: October 10, 2013 SUBJECT: Lease Application Amendment — Application to Lease Airport Lands outside the Kenai Municipal Airport Reserve by Buccaneer Alaska Operations, LLC for Lot 8, Kenai Industrial Park Subdivision for the purpose of a Natural Gas Production Facility (Gas Manufacturer /Storage); Operation of Class II Injection Facility (Storage /Disposal of Onsite and Offsite Materials) At their meeting on October 9th, the Planning & Zoning Commission reviewed the amended lease application for Buccaneer Alaska Operations, LLC. The Commission found that the lease was in compliance with the zoning ordinance and the Comprehensive Plan. The Commission voted unanimously for the City to proceed with the lease for Lot 8, Kenai Industrial Park Subdivision. The Planning & Zoning Commission will be reviewing the amendment to the Conditional Use Permit for the above - referenced property at their October 23, 2013 meeting. The Commission has requested Buccaneer provided copies of all approved permits for the above - permitted operations. cc: Mary Bondurant, Airport Manager 3'N Z EN "N'llaye wifh a ibast C# with a Future I`I11 ►f► 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 1992 Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 MEMO: TO: Planning & Zoning Commission FROM: Nancy Carver, Planning Assistant / DATE; September 26, 2013 SUBJECT: Lease Application Amendment — Application to Lease Airport Lands outside the Kenai Municipal Airport Reserve by Buccaneer Alaska Operations, LLC for Lot 8, Kenai Industrial Park Subdivision for the purpose of a Natural Gas Production Facility (Gas Manufacturer /Storage); Operation of Class II Injection Facility (Storage /Disposal of Onsite and Offsite Materials) The City of Kenai has received an amended lease application from Buccaneer Alaska Operations, LLC (Buccaneer). Because the proposed use varies significantly from the lease approved by the Commission on March 27, 2013, the Commission is required to review the amended lease to ensure the proposed use meets the zoning ordinance and the Comprehensive Plan as outlined in KMC 21.10.060. Attached is a memo from the City Manager's assistant explaining the lease amendment is to include Operation of a Class II Injection Facility for the Storage /Disposal of Onsite and Offsite Materials. Buccaneer has received approval from the State of Alaska Department of Environmental Conservation (ADEC) for operation of a temporary Drilling Waste Storage Operation for the treatment and storage of drilling waste generated from the West Eagle #1 and Kenai Loop #2 -1 wells, as provided in the attached DEC Approval Letter dated September 24, 2013. On January 26, 2011, the Commission approved a Conditional Use Permit for a Natural Gas Production Facility. Gas manufacturing/storage is provided for as a conditional use in this zone provided that all applicable safety and fire regulations are met. Oil and Gas wells must comply with the conditions of KMC 5.35. Amended Lease Application — Buccaneer Alaska Operations, LLC ➢ Comprehensive Plan —The Comprehensive Plan classifies the property as Airport Industrial. The Airport Industrial district identifies airport lands reserved for the Kenai Municipal Airport and its future expansion, and tracts needed for present and future aviation - related uses and activities. The property is located outside of the Airport Reserve and not identified as needed for future airport operations. Funding from the lease of airport properties supports airport operations. The proposed facility is in harmony with the Comprehensive Plan. ➢ Zoning - The property is zoned Light Industrial (IL). "The IL Zone is designed to provide for the development of industrial and commercial uses which are usually compatible and which are of a type which has no nuisance effects upon surrounding property, or which may be controlled to prevent any nuisance effects upon surrounding property. New residential uses and other non- industrial uses, except as otherwise provided in this chapter, are not permitted in this zone as principal uses because it is intended that land classified in this zone be reserved for industrial and commercial purposes, and because the IL zone is not suited to the excluded uses." ➢ The application appears to be complete, and the proposed assignment conforms with the Comprehensive Plan and zoning. DOES THE COMMISSION FIND THAT THE PROPOSED USE CONFORMS TO THE COMPREHENSIVE PLAN AND THE ZONING CODE? Attachments cc: Mary Bondurant, Airport Manager, City of Kenai W `Y\ `` 5f faile' 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: (907) 233-7535 / FAX: (907) 233 -3014 t.ci.kenai.ak.us hcnai fucmi=caao �e v TO: fancy Carver, Acting city Planner FROM: Christine Cunningham, Assistant to City Manager `' DATE: September 26, 2013 SUBJECT: Amended Lease Application — Buccaneer Alaska Operations, LLC, Lot 8, Kenai Industrial Park Subdivision Attached is an amended lease application for the referenced Airport property located outside the Airport Reserve. The Planning & Zoning Commission reviewed the original application on March 27, 2013 and found that the proposed use for a Natural Gas Production Facility was in compliance with the zoning ordinance and the Comprehensive Plan. Buccaneer Alaska Operations, LLC (Buccaneer) asked to amend its application as to the proposed use of land to include Operation of a Class II Injection Facility for the Storage /Disposal of Onsite and Offsite Materials. Buccaneer has received approval from the State of Alaska Department of Environmental Conservation (ADEC) for operation of a temporary Drilling Waste Storage Operation for the treatment and storage of drilling waste generated from the West Eagle #1 and Kenai Loop #2 -1 wells, as provided in the attached DEC Approval Letter dated September 24, 2013. Because this proposed use varies significantly from the original proposed use, it will require review by the Planning & Zoning commission for compliance with the zoning ordinance and the Comprehensive Planp Administration has scheduled a Special Use Permit (SUP) for the same purpose and on the same premises for Council approval at its October 2, 2013 Council Meeting. The SUP will allow Buccaneer to begin its operations on a temporary basis prior to execution of the long -term lease associated with the subject application. The SUP will expire upon execution of a lease or September 24, 2014 (the date the ADEC approval for the use expires), whichever is sooner. Please schedule the amended application for review at the next meeting of the Planning & Zoning Commission. cc: Rick Koch, City Manager Mark Landt, Buccaneer Alaska Operations, LLC Attachments AMENDED 9/25/13 AMENDED 3/1/13 CITY OF KENAI 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 (907) 283 -7535 Ext, 223 LEASE APPLICATION For Land Outside the Kenai Municipal Airport Reserve 1. Name of /applicant Buccaneer Alaska QRcmtious. I Le 2. Business Name Buccaneer Alaska i i FOR CdT_ k' Itc�r�w7,Z Date Signature 3. Business Type (circle one) a'Uk nee ar;cto m m i rr3iM X LL.c. 4. AK Busyness License No.95! 676 5. Mailing Address 952 Echo Lane, Houston_ Tnxac 7�te<� 6. Telephone 71( 3L4g-1678 7. Email Address Z, ,. ; .. 1 8. Kenai Peninsula Borough Sales Tax No. (if applicable) 9. Land Requested: If platted, give legal description North of enai Sour1 -lwv excluding Baron Park Sutu1' V o 7 & No 12 -700 Marathon Road, *AMENDED TO LOT 8, If not platted, attach a site plan showing the proposed dimensions and location on the Airlmri NAI INDUSTRIALPARK If). Proposed Use ofihe Property (Be specific) Natural Gas production Facilit G Man facturer /Store CSUBDIVISION 11. Lease Term Desired > Operation years of Class II Injection Facility for the Storage /Disposal 12. If you plan to construct improvements orothcr Onsid Opfsite Materials develop property. a. Attach a Development Plan (see attached checklist) b. Describe the building type, construction materials, size, etc. Product�yiDmenl wr- 1_ to ini� one to two slory structure. In addhinn M separators, dehydrators pocked wafer sr?Re tanks Cpnlprecapdsyd emergency &qagmtors. e. Construction beginning date Feb d. Construction completion date (maximum of two years) Initial production facilities r a ve berm inctatl a r uttrrC drilirg-44d addit onl filities may occur over life of 1eaa: c. Estimated total cost of the proposed development & improvements 12MM 14. If you would like the City to consider any additional information relating to your p oposaf please put it in writing and submit it with this application. APPLICANT'S SIGNATURE: Printed name: Mark R, un t "' _ Date; Title: yP. PermittihE & APPLICANT'S SIGNATURE: Printed name: Date: Title: 3/1/13 3/1/13 Page 1 of 1/4/2012 KENAI MUNICIPAL AIRPORT Lease Application for Land Outside the Kenai Municipal Airport Reserve DEVELOPMENT PLAN CHECKLIST (All items must be included before a lease application will be accepted.) A DEVELOPMENT PLAN MUST INCLUDE A DRAWING AND A NARRATIVE. 1. Drawings must be drawn to scale, but need not be prepared by an architect or engineer. Drawings must show the following: Attached drawing shows the pad area with notes provided in sections below as appropriate. a. The layout of the lot showing the height(s), size(s) and location(s) of all Existing buildings Ofce /Control Building (approx. 10' x 40'x 8' high) Parts Building (approx. 10'x -40'x 8' high) Heater Building (approx. 10' x 40'x 8' high) Two Separator Buildings (approx. 10'x 10'x 10' high) Glycol Building (approx. 15'x 30'x ]Oft high) Produced Water Tank (approx. 20' diameter x 15' high) Produced Water Tank (approx. 10' x 40'x 8' high) Wellhead covers on 2 producing gas wells (KL #I, KL#4) (15' dia. x 20' high) Wellhead cover on I non producing well (KL #3) (15' dia. x 20' high) Proposed buildings Possible up to 4 new wellhead covers on potential new wells Possible 4 new Heater Building for on potential new wells Possible new pump house ifnon producing well (KL #3) is converted to injection well. A Existing and proposed antennas, poles, and towers Flare Stack (approx. 60' high) b. Parking facilities (location and number of spaces) Production parking at bull rail on east side of Office /Control Bldg. (15 spaces) Drilling parking at portable bull rail next to portable rig /office structures (20 spaces) c. Site improvements A Areas to be cleared and method of disposal Area cleared in 2011. Mulched trees and overburden was hauled to offsite for disposal At a private material site. Some Overburden used to create berms around pad Gravel from local source used to fill cleared excavated area. 9 Proposed gravel or paved areas Entire pad area is constructed ofgravel fill over natural sandy soil. , � i' i '' ' Page 2 of 6 3/1/13 2/14/2013 Landscaping plan (retention of natural vegetation and /or proposed planting areas) Minor revegetation used for cleared non pad areas and berm areas. d. Building set backs All buildings at least 20' from property line e. Drainage plan and snow storage areas Pad is graded to east side ofpad and drainage is collected in a retention basin (approx. 15'x' 40' x 3' deep). Snow is stockpiled on northern and eastern margin of pad. f. Traffic circulation plan (all entrances, exits and on -site access) Main pad entrance and exit is at northwest corner ofthe pad, the access has a portable guard shed and motor operated locking gate. An alternate access is on the southwest corner of the pad and this also had a locking gate that is normally closed. g. Location of sign(s) — (sign permit required before installation) Signage is located at the main gate and on all well heads. h. Fencing — (permit required before installation if height exceeds 6 feet) The pad is surrounded by a 6' high chain linkfence with two locking gates. i. Curb cuts (where applicable) Not applicable. 2. Narrative must explain how your proposed use and development of the property will conform with: a. the zoning ordinance of the City Area is currently zoned airport industrial Airport activities may include high noise levels from aircraft activities. These same type of noises maybe present during periods actual drilling operations are underway. Once these activities are completed, activities will be limited to a light industrial operation which is the general zoningfor the immediate area. There will be minimal manpower requirements for the production operations. b. the comprehensive plan of the City • The proposed operations will initially include exploration drilling operations and then possibly development operations. • The site was examined by an Archaeologist and there was no evidence found ofhistorical or cultural resources on the site. • There were no wetlands found on the site to be developed. A separation ofat least 50 feet will be maintained from wetland areas to the immediate east of the site. • An EPA approved Class I Non - Hazardous Waste Disposal Well may be used for deep injection of liquid wastes. • All other wastes would be hauled offsite for disposal at approved sites. • Air emissions would be permitted under ADEC regulations. Air emissions are expected to be minimal from the limited surface equipment. • The operations will be surrounded by a fence and locked gate. • Fire and gas sensors will be installed onsite and monitored continuously. • Sound barriers will be installed as appropriate. Page 3 of 6 2/14/2013 KENAI MUNICIPAL AIRPORT Lease Application for Land Outside the Kenai Municipal Airport Reserve SITE PLAN CHECKLIST (This Site Plan is only required when the land requested by the applicant is not a platted lot or tract.) A Site Plan must be drawn to scale, but need not be prepared by an architect or engineer. The Site Plan must show the following: 1. The length of each side of the proposed lot Shown on drawing. 2. The approximate bearing of each side of the proposed lot Shown on drawing. 3. The approximate distance ➢ To any adjacent platted property, if within 200 feet Buccaneer understands the area is currently being replatted per attached. ➢ To the Airport Reserve boundary, if within 200 feet Buccaneer understands the area is currently being replatted per attached. ➢ To the centerline of the nearest public road or street Marathon Road ROW and shoulders are shown on drawing. 4. A North arrow giving the approximate orientation of the proposed lot to True North Shown on drawing. Page 4 of 6 2/14/2013 pb'd I 'off dOOI IVPd3N ;� :,.�_ �n vxsvro aa3NVO�ne _y I � pq \� I � x I F a I )rL myV i N m n f } 1Q Ili '!I - _- _ b3_OIryOHS _ - '-- `i3+,� ___!•�- 8C'fpf e 6 Page 5 of 6 2/14/2013 o l: � < Lu cq w < w H m s o o W Il W a o g j 3 w Qm cm ti Jm0 e 8 K HUU ¢ Y ff4 W m m � di m N C 2 WO ¢ 1 F a I )rL myV i N m n f } 1Q Ili '!I - _- _ b3_OIryOHS _ - '-- `i3+,� ___!•�- 8C'fpf e 6 Page 5 of 6 2/14/2013 _ if fit _s. '1 �•\ S 1{{ i� ? ikl }jEjjilpl y�, \yw yl yam' E ![ [ d Jill' � �E Fgg��= � TNRI�W,ELbTNPIRVbECb1(N Y ^1 :� 1 aewwROw:Rniwwluoraacba6ETw [ 1 8'B lab Mw 118St.. Li SEEM aAS,J .__ .• .._. .. ._ _ IMRVry ejpyNae4:w<' . � 1 ... LOT 7 - - 7 527AC. LOT 2 _ .!1 wluow SRl 2.0,75 AC. ;NORTH/ I I z 0 O z m: "o Ni I "yy�9 �F 99$ h ¢.i I, LOT 19 ro Q ^. 7.006 AC. I I 'i I f`• LOT 15 - LOTS n' 0, 1.019 AC. \ 1.550 AC. J , i� s .� LOT 17 it 1.054 AC. 1.043 AC.'' P C i LOT 16 a0 Q 0 J j; ro Q F�xLV.N � � E'N4LWPR %P.N F ,xi LOT 9 0, LOTS 7.665 ACA A J , i� I j LOT 10 t : 1.043 AC.'' P r. yi '' lit ✓n t,1 d9.i� ?lil: 1e1. I I $ AC. LOT 4 - 1.559 AC. wV h - pp d ^JY^ ro° ^Q I tiN •�LOT 111N .: 1. 133 AC. LOT 2.313 AC, LOT6 2.652 AC. LOT 7 2. 902 AC. 14, 91 $p 8 2/14/2013 F�xLV.N � � E'N4LWPR %P.N F ,xi LOT 9 �iY}( g a LOTS 7.665 ACA A 2.559 AC. I 14, 91 $p 8 2/14/2013 THE STATE OfALASKA, GOVERNOR SEAN PARNELL September 24, 2013 Mx. Mark R Landt Buccaneer Alaska 952 Echo Lane, Suite 420 Houston, Tx 77042 Subject: Buccaneer Kenai Loop #1 Pad . . Temporary Drilling Waste Treatment and Storage Dear Mr. Landt: Department of Environmental Conservation DIVISION OF ENVIRONMENTAL HEALTH Solid Waste Program 555 Cordova Sheet Anchorage, Alaska 99501 Phone: 907.269,7622 fax: 907269.7600 Certified Mall #7012 1010 0009 oaa9 9941 Retum Receipt Requested The Alaska Department of Environmental Conservation (ADEC) has reviewed The Buccaneer Alaska (Buccaneer) Temporary Drilling Waste Treatment and Storage plan, dated September 18, revisions dated September 23, 2013, and addition information submitted September 24, 2013. Buccaneer requests to store and treat Resource Conservation and Recovery Act (RCRA) exempt Exploration and Production waste (drilling waste) generated from oil and gas wells West Eagle #1 and Kenai Loop #2 -1. Project Description The project consists of drilling waste treatment and storage at the Kenai Loop #1 pad in Kenai, Alaska. The drilling was will be treated by solidification using Poiflaud cementaad sawdust Drilling Waste will be treated in steel tanks, and stored in portable tanks ox a lined cell' The solidified waste will be segregated in batches and sampled for Gasoline Range Organics (GRO), Diesel Range Organics (DRO), Benzene, Toluene, Ethylbenzene, and Xylenes (BT ExX prior to disposal The solidified waste will be disposed at the Kenai Peninsula Borough Central.Landfill in Soldotaa, Alaska. Any waste that does not meet the conditions for disposal at Central Landfill must be disposed at a landfill permitted to accept the waste. Approval from the West Eagle #1 and Kenai Loop #2 -1 wells with the following stipulation: • All drilling waste and the storage impoundment must be removed within one year of this approval. Buccaneer may apply for renewal of this approval for the facility for one additional year by submitting a request to ADEC no later than August 24, 2014. Buchaneer Kenai Loop #1 Treatment & Storage page 2.of 2 September 24, 2013 Reporting Requirements In order for ADEC to track the opening and closure of waste storage facilities, ADEC requires the following: • Provide ADEC with written notification of waste treatment and storage activities (email is acceptable) within 7 days after waste storage begins at the site. IfADEC has not received notice that stora ge has begun at the .rite within oneyear of this approval date, the approval a witbdrawn and we will close the file. s At closure, perform a visual site inspection to confirm the removal of all drilling waste. ■ Submit a site closure report to ADEC in writing (email is acceptable) within 7 days of closure. The closure report must include: • the total volume of drilling waste treated and stored • final drilling waste disposal locations ■ photographs showing the facility while it was in operation and after the facility was removed. This approval is not authorization to proceed. All approvals must be obtained from applicable local, state, and federal agencies prior to construction. Any person who disagrees with this decision may request an adjudicatory hearing in accordance with 18 AAC 15.195- 18 AAC 15.340 or an informal review by the Division Director in accordance with 18 AAC 15.185. Informal review requests must be delivered to the Division Duecto x, Alaska Department of Environmental Conservation, 555 Cordova Stteet, Anchorage Alaska, 99501 within 15 days of the permit decision. Adjudicatory hearing requests must be delivered to the Commissioner of the Department of Environmental Conservation, 410 Willoughby Avenue, Suite 303, Juneau, Alaska 99801, within 30 days of the permit decision. If a hearing is not requested within 30 days, the right to appeal is waived. More information regarding submitting a -request for an informal review or adjudicatory hearing may be found at wiviv.dec.state.ak.usl commisb /lkn -e uidance htm. Even if an adjudicatory heating has been requested and granted, all permit conditions remain in effect unless a stay has been granted. Please contact me at (907)- 269 -7622 or by email at lorz:aldrich alas a rot if you have any comments or questions, and for notifications. Sincerely, Lori Aldrich Solid Waste Program Coordinator cc: Bob Britch AIMM Technologies, Inc. THE STATE j� 0fALASK -A- GOVERNOR SEAN PARNELL September 24, 2013 Mr. Mark R. Landt Buccaneerlllaska 952 Echo Lane, Suite 420 Houston, Tx 77042 Subject: Buccaneer Kenai Loop #1 Pad Temporary Drilling Waste Treatment and Storage Dear Mr. Landt: Department of Environmental Conservation DIVISION OF ENVIRONMENTAL HEALTH Solid Waste Program 555 Cordova Sheet Anchorage, Alaska 995ol Phone: 907.269.7622 fax: 907.269.7600 Certified Mail #7012 1010 0003 0389 9941 Return Receipt Requested The Alaska Department of Environmental Conservation (ADEC) has reviewed The Buccaneer Alaska (Buccaneer) Temporary Drilling Waste Treatment and Storage plan, dated September 18, revisions dated September 23; 2013, and addition information submitted September 24, 2013. Buccaneer requests to store and treat Resource Conservation and Recovery Act (RCRA) exempt Exploration and Production waste (drilling waste) generated from oil and gas wells West Eagle #1 and Kenai Loop #2 -1. Project Description The project consists of drilling waste treatment and storage at: the Kenai Loop #1 pad in Kenai, Alaska. The drilling was will be treated by solidification using. Pordand cementand sawdust. Drilling Waste will be treated in steel tanks, and stated in portable tanks or a lined cell: The solidified waste will be segregated in batches and sampled for Gasoline Range or (GRO), Diesel Range Organics (DRO), Benzene, Toluene, Ethylbenzene, and Xylenes (BTEX) prior to disposal. The solidified waste will be disposed at the Kenai Peninsula Borough Central Landfill in Soldotna, Alaska. Any waste that does not meet the conditions for disposal at Central Landfill must be disposed at a landfill permitted to accept the waste. Approval 71DEC hxreby apprtsvea€Buccanepla�f the ea enfa�id s orage — ' ' g was genera from the West Eagle #1 and Kenai Loop #2 -1 wells with the following stipulation: ® All drilling waste and the storage impoundment must be removed within one year of this approval. Buccaneer may apply for renewal of this approval for the facility for one additional year by submitting a request to ADEC no later than August 24, 2014. Buchaaeer Kenai Loop #1 Treatment & Storage page 2 o 2 September 24, 2013 Reporting Requirements In order for ADEC to track the opening and closure of waste storage facilities, ADEC requires the following: • Provide ADEC with written notification of waste treatment and storage activities (email is acceptable) within 7 days after waste storage begins at the site. If EC has not received notice that storage has begun at the site within onelmr, ofthis approval date, the approval is withdrawn and we will close the file. • At closure, perform a visual site inspection to confirm the removal of all drilling waste. • Submit a site closure report to ADEC in writing (email is acceptable) within 7 days of closure. The closure report must include: • the total volume of drilling waste treated and stored • final drilling waste disposal locations ■ photographs showing the facility while it was in operation and after the facility was removed. This approval is not authorization to proceed. All approvals must be obtained from applicable local, state, and federal agencies prior to construction. Any person who disagrees with this decision may request an adjudicatory hearing in accordance with 18 AAC 15.195- 18 AAC 15.340 or an informal teview by the Division Duector in accordance with 18 AAC 15.185. Informal review requests must be delivered to the Division Director, Alaska Department of Environmental Conservation, 555 Cordova Street, Anchorage, Alaska, 99501 within 15 days of the permit decision. Adjudicatory hearing requests must be delivered to the Commissioner of the Department of Environmental Conservation, 410 Willoughby Avenue, Suite 303, Juneau, Alaska 99801, within 30 days of the permit decision. If a hearing is not requested within 30 days, the right to appeal is waived. Mote information regarding submitting a tequest for an informal review or adjudicatory hearing may be found at =v,dec.sWe.ak.m.rlcommishlRetiem,GuidaLce. htm. Even if an adjudicatory hearing has been requested and granted, all permit conditions remain in effect unless a stay has been granted. Please contact me at (907)- 269 -7622 or by email at lori.aldirch alaska-gov if you have any comments or questions, and for notifications. Sincerely, Lori Aldrich Solid Waste Program Coordinator cc: Bob Biitch AEV34 Technologies, Inc. September 23, 2013 Ms. Lori Aldrich Alaska Department of Environmental Conservation Division of Environmental Health Solid Waste Program 555 Cordova Street Anchorage, AK 99501 Buccaneer Alaska Operations, LLC Temporary Drilling Waste Treatment Facility Application Revisions Kenai Loop #1 Pad Kenai Area, Alaska Dear Ms. Aldrich: In response to your comments on our original application of September 18, 2013, we are making the following revisions to our application as follow: 1. Revised dimension of pit to reflect additional storage for winter operations anc availability of 30 mil liner for larger solidification pit (Section (B)4 on Page 1 and Figure 5 on Page 8). 2. Revised to have a use of a 30 mil geomembrane liner for the solidification cell (Section C on Page 2) and use of a Cooley L1023DEP 30 mil liner (Page 10), 3. Revised berm height for solidification cell to a minimum of 24 inches instead of 18 inches (Figure 4 on Page 7). Should you have any questions, please call me (214) 738 -6945. You may also call Bob Britch at 240 -5830. Sincerely, Mark R. Landt Vice President, Permitting & Regulatory Buccaneer Temporary Waste Treatment at Kenai Loop Pad #1 Specific Information Required by 18 AAC 60.430(a)(1) (A) Contact: The name, address, phone number, and affiliation of persons responsible for conducting the treatment and disposal operations is: Andy Rike, Executive Vice President Buccaneer Alaska Operations, LLC 952 Echo Lane, Suite 420 Houston, Texas 77024 (281) 768 -7650 (work) (713) 703 -5157 (cell) (832) 201 -7495 (fax) Or: Bob Lenhart, Drilling Manager Buccaneer Alaska Operations, LLC 215 Fidalgo Avenue, Suite 100 Kenai, Alaska 99611 (713) 818 -6260 (cell) (B) Location and Type of Storage Container All temporary treatment activities will occur on Buccaneer's Kenai Loop #1 Pad located east of Kenai as shown on Figure 1 and 2. The pad is located on a bermed gravel pad about 4 acres in area and surrounded by a 6 foot high fence. The pad currently includes 3 natural gas wells, one Class II disposal well, and natural gas production facilities to handle the produced natural gas. The site is on land leased by Buccaneer from the City of Kenai. The proposed operations will be contained in an area about 100 by 200 feet on the north side of the pad. The operations will include the following components: 1. Drilling waste receiving and mixing tanks. There will be two open topped welded steel tanks each 8 ft wide, 20 ft long, and 7 ft high. The tanks will be buried about 6 ft into the ground, and they will be inspected before and after placement in the ground for cracks or other damage. Tank trucks carrying drilling wastes will back up to the receiving tanks and discharge wastes into the tanks. 2. Mixing operations. Process of wastes will include addition of Portland cement and sawdust into the two tanks described above to initiate a solidification process for the waste materials. Actual mixing will be accomplished using an excavator placed between the two buried tanks. The excavator will typically be a Hitachi EX 200 or equivalent. 3. Contingency storage tanks. Up to four 400 to 500 bbl portable tanks will be available onsite for contingency storage in case both receiving /mixing tanks are full. Given the anticipated travel times, from the drilling locations sites, it is believed that only two tanks would be needed onsite with an additional two tanks available on standby. 4. Solidification cell. Once the waste materials have been adequately mixed with sawdust and Portland cement, materials will be transferred to a solidification cell located near the receiving /mixing tanks using a front end loader with bucket (Cat 966 or equivalent). The cell will be about 65 by 70 feet (preliminary inside dimensions and possibly slightly larger for winter operations) and constructed the existing gravel pad and will have a gravel Revised 9/23/13 berm, geotextile layers, an impermeable geomembrane, and a covering to protect the geomembrane from damage from equipment operation in the cell (the covering is planned to be EnvioGrid with provides a 6 inch barrier). The solidification cell may alternatively be excavated about a foot into the existing pad which consists for pit run gravel (underlying native soils are clean sands. The excavated gravel could be used for the berm construction. Specifications for the proposed geotextiles, geomembranes, and protective cover are attached at the end of this section. The overall configuration of the facility is shown on Figure 3. (C) Plans and Material Specifications for Containment. As shown on the attached diagrams (Figures 4 and 5). Containment will be required for all facility components and are discussed below: Tanks: The two primary receiving /mixing tanks are owned by AIMM. All other tanks will be obtained through other vendors, notably Rain for Rent in Kenai. Prior to tank use, they will be visually inspected to ensure that they are leak- proof. During on site storage operations, the tanks will be routinely pumped in order to maintain a freeboard in the tanks of at least 2 feet; fluids removed will be put in either the receiving /mixing tanks or in the contingency tanks. Solidification Cell: The cell will be constructed with a single primary liner underlain and overlain with layers of 12 oz non -woven geotextile. The primary liner will be a hydrocarbon compatible, 30 mil flexible geomembrane freeze stable to minus 60° F. The surface of the cell will be covered with 6" EnviroGrid. The lattice of the EnviroGrid will be filled with gravel or solidified drilling waste to provide a protective layer above the primary liner and allow equipment access in and out of the cell. Solidifying solids are maintained in the cell until samples taken of the processed wastes are analyzed and found to be suitable for disposal in the Central Peninsula Landfill or, when permitted and constructed, to AIMM's monofill. Buccaneer is still in the process of confirming indicated material is not available within the substituted with prior approval of ADEC. (D) Methods to Prevent Drilling Waste Spills construction materials specified above. If the time constraints, equivalent materials may be Care will be taken when transferring drill cuttings from the drilling rig to the holding tanks to the vacuum truck. Methods to be used to prevent the discharge of drilling waste leachate to the land or water of the state. The cell is designed so that all fluids will collect along one side of the lined cell. The cell will only receive solidified drilling waste, so accumulated water will be limited to precipitation. This water will be pumped as necessary to ensure that two feet of free board will be maintained at all times. This will prevent discharge to the land or waters of the State. (E) Disposal Location for Drilling Effluents Buccaneer will subcontract facility construction, handling and disposal of the drilling effluents to AIMM Technologies, Inc. (AIMM). AIMM will be providing project management, equipment, sampling, and processing of drilling liquids and solids for ultimate disposal in accordance with all local, state, and federal regulations. Once solidified the material have solidified, samples will be taken for analysis at an independent lab and verified to determine acceptability at the landfill. Upon acceptance by the landfill the Revised 9/23113 material will be loaded into side dump trailers and transported to the landfill with a copy of disposal approval. Drilling wastes will be hauled to the Kenai Peninsula Landfill in Soldotna, Alaska for disposal. The address for the facility is: Borough of Kenai Peninsula Solid Waste Dept: Soldotna Landfill 46915 Sterling Highway, Soldotna, AK 99669 (907) 262 -9423 We will be contacting Lanie Hughes is the Solid Waste Disposal Manager in connection with this project. She can be reached at the following location /telephone. Solid Waste Department Kenai Peninsula Borough 47140 East Poppy Lane Soldotna, Alaska 99669 (907) 262 -9667 Buccaneer is also in the process of modifying a permitted Class II disposal well also located on the Kenai Loop #1 Pad. If the well modifications are completed in time, it may be possible to dispose of some fluids. Processing cuttings may require additional permitting of waste treatment operations with ADEC prior to disposal of solids. (F) Reporting and Recordkeeping Drilling operations at the site are tentatively scheduled to occur between about late September through December of 2013. Drilling wastes will be transported as it is generated to the disposal locations indicated above. Buccaneer will conduct a visual site inspection and will provide ADEC written notification documenting the operations in accordance with 18 AAC 60.430(3)(A) and (B). Buccaneer will keep thorough records of all materials handled in the facility including sample was taken and analytical sample data obtained by Al MM. (G) Certification statement I_ hereby certify that I am familiar with the requirements of 18 AAC 60 with regards to handling drilling mud and cuttings, and hereby certify that all waste will be removed from the onshore drilling locations and properly disposed of at approved facilities with one year of completing the proposed drilling operations. Mark Landt Vice President, Permitting & Regulatory Revised 9/23/13 September 23, 2013 Date ............ J - 17 14 Lit ygef + Cr LoOPIVad '�-jr 0- -1441 N T o J5101 36?' - -?2 f7r 41 Scale 0 1 2 3 Base Maps: USGS Kenai C-3 & C-5 Figure 1. Locati ®n Map for the Kenai Loop #1 Pa& Revised 9/23/13 _ .,. ...... SEC. 33 T6N R11W . . SEWARD MERIU AN- ALASKA 1' 1 Figure 2. Kenai Loop #P Pad Layout with Location of Temporary Waste Treatment Facility Indicated. Revised 9/23/13 5 NORTH CITY O� KENAI lk4l WVW KENAI INDUSTRIAL PARK SUPDIVISION sr,Ais j UNDER DEVELOPMENT SEC 33 T6N R11W r s:`• v c treatment Arai rifling Rig ISio be BUCCANEER F.' Removed) .:'` KENAI LOOP PAD , C E QN'k. t. bFkli (r J ' W4 CITY OF KENAI i �be°uvesce BARON PARK SUBDa 2012 ADDN. KN 2012 °89 % e E9' -1 ,l IIUCCANMAi A i , 252 ECHO LANE KCNkI LOOP SUITE 420 NO, 1.4 WELL Pik NOUS.OM FX MN cu Acirq RIG r)PrCRTER I:Nr RCTAII. _ .,. ...... SEC. 33 T6N R11W . . SEWARD MERIU AN- ALASKA 1' 1 Figure 2. Kenai Loop #P Pad Layout with Location of Temporary Waste Treatment Facility Indicated. Revised 9/23/13 5 -7-7--l- lpip Revised 9/23/13 6 ul p Z z LL. I-- Z w F. w CO) LU uj I-- (4 U- 0 U. F- 0 w 4 5: .1 Idl -.1 0 It p Z z LL. I-- Z w F. w CO) LU uj I-- (4 U- 0 U. F- 0 w 4 5: .1 _ J� /10 Revised 9/23/13 4) U) 0 16 z vI uj uj lz -j -J w w w (.) D Z r3 0 rL a 0 LL_ 0 :2 0 U) -41 IG I Q Q a c~t w to h U K O 0 N Revised 9/23/13 g ! 1 I I I C C K N V w FI wl N !9I 1. O O O .Z J J W V z �Q V J d eft V) LLJ W O U- V) z O w V) 4 . 1 For rnorr nfomwtrcx: at to pace. an rxcler phj . Mart uc OREGON: Portland 5(X)-771 -51 15 Med10r d 541 - 808 -1648 ACKESTMC. WASHINGTON: Woodinville 425 41E -6115 'c� The Northwest's Lai gent Inventory of Geosynlhetics UTAH: Saft Lake C' 1 Fite Lai -g ?2 6641 City 52157•M11 PRODUCT DATA SHEET GEOTU 1201 is a polypropylene, staple fiber, needlepunched nonwoven geotextils produced by Proper, and will meat the following Minimum Average Roll Values (MARV) when tested in accordance with the methods listed below. The fibers are needled to form a stable network that retains dimensional stability relative to each other. The geotextile is resistant to ultraviolet degradation and to biological and chemical environments normally found in soils. GEOTE%1201 conforms to the property values listed below.• Propex performs internal Manufacturing Quality Control (MQC) tests that have been accredited by the Geosynthetic Accreditation Institute - Laboratory Accreditation Program (GAI- AP). jThew. vnPow4xEN. taeaee�ne� 'M%o'aeeWa+eed«.w,n�ex Yx ^s.'nvam r¢nvabryptyt(3nem YaeM� :.c'aw Mra,ecrWm'laertalamex CU tgeY nv.cwosNrlb�¢.x. 9�^.a4y,opr{4,a 51 IR an�.end *tirbnwtiv�v nmo a[euuee9mdu �:.ec! 4�eadm�i+++w 6w a W�mum meR M.v.de THE AD4ANrA CE CREATORS 6025 L Inc. PH: 473 899 0444 6o75 ec Hjghway. Suite 475 PO en• 77788 PH: SOD 6711273 FAr,: 473 899 1619 GPOSYMHEEICS Chattannoa., iH 31447 www.prapnain c.cam .aaw¢ea wooa viola �c. Revised 9/23/13 q PRODUCT SPECIFICATION PD,oe I of Revised 9/23/13 10 L1023DEP 10 BASE FABRIC 1.1 Base Fabrc Weight 5 oz,YW 170 9 m 1,2 Fiber Style Polyester , Knit 2.0 C'OA TED FABRIC 2.' T otaf Weight 2.2 Thickness 23 t2 oz ydz 3C s5 mils 778 *67 g m z 0.7fi 10.13 mm 2.3 Coating Type Urethane 2.4 Coating Distribution 6040 2.5 Sea:ng Properties a Dielectric G Thermal 3.0MATERLiI. PROPERTIES 3.' Tensi;e Strength. Grab Standard TES° OETHOCS !Lk Fcd.Std 19,1A ASTt tv /arp 350 lbs 1.560 N 5100 0751-q F'!, 300 Ibs 1.330 N 3.2 Tensi,e Strength, 1- Strip :`'taro 240 lbs 1,070 N 5102 D751 -B Fill 200 lbs 890 N 3.3 Tear Strength. Tongue V,rarp 160 lbs 710 N 5134 C751 -8. Rli 160 lbs 710 N 3.4 Puncture. Scre. driver 3.5 Puncture. Bal 36 Hydrostatic Resistance 75 Ibs 500 Jos 400 psi 335 2.220 2.8 N 5120 N 5120 MPa 5512 D751 C751 0751-A 37 Ply Adhesion 3.8 Adhesion RF 3.9 Adhesion Therma? 35 lbs tin 35 lbs in 35 ibs'in '55 60 60 kg:'5 cm kg cm kg'cm D751 D751 D751 310 Lo:. Temp 3,41 High Temp. Cant Interm. 3.12 Abrasion Resistance -65 F 160-180 'F 3,500 cycies -54 71/82 3.500 :0 'C cycles D2136 D1204 03864 tv,reei Hle IKg:. EhC'DSPC a Jtc�. spa PO Di Cwe c. o iee ,r,e ,.a 1P a ro s�tle -eP amJrarP Js V00103105 Hcn-e,'Pr . tvc fNaralty ; PXJ`PSSPtl P T. PJ'Pg3 '.ly f rP a ,r.3 f i v J fr %PC 0 ,J. /eD bOT [qP J,°rF NlE'!PPr. Or Rla! J ^y sJC9 use is .P. 1`' igP JD'J^ 7 -5 '�. „ „ T„ i8P -DC ',re �. rGt a . ^at e persD1 'PCP ! ^tg Q 51aY PVJ /Jd!P !f5 SilllaD; .rl 'Or 71P 5pFC %!:' Jr.pl;0ar; Jp PD,oe I of Revised 9/23/13 10 Gee. Products; LLC fro ",.Pii..J ?IL" S.'a..'�Ir,.r�(.at �....s(`il'•g. tr,.ti t'; AO (41 ;lk it-'til Citlil 1 flit Im( rr OIC —tinIs ins F Slope Erosion Protection E Ground Stabi''izotion Channel Protection E Vertical woffs �• � r r l r \ M� ` � 1 IY 1 r Revised 9/23/13 11 • ! or �t�fr � / � » -a � \ � 9 $ \ U 3 � Revised 9/2a,Z3 12 / \ \ \/ }E - /\ \g; �2.« ~ \- //\/ \- ƒ � / � » -a � \ � 9 $ \ U 3 � Revised 9/2a,Z3 12 / \ \ \/ }E t6MJn hr, r. She^:F' - A ' 2 7 rrz+'8 v r w? S ^I :y CC =ar?': C" - r Y I bJ iw5 t JL ".77y '+5 n na7- C'C )Q2TF GL r woj 9.ZMF' rg 0 i"00' �A 3 (`6: C < F e a• 7 dS7E 'Lirq ..1hE•Sro-'F Cr.1-?@ +.n -'j t 74 F PJ :G Q , ASSEMBLY: Er:faa a. s: ^.reJ M•ee,c _,Z: EGAIC l4 R :]L L.fEr [ t 9:sr - i[ ?. M'J') s�ariarj po W's a F J •r•,, a7 Of `C :MtH a• P. tin; �4 adJ.e. ENVIROORO PROPERTIES - MATERIAL Tr C ..,2 Fh f�E!i 3. 1 rF � f. :• � !� — - --------- -- _ cq I R p. 4- ' b .� � 7 x`.] ' .++• 3i u, r W4fm�,'1 `j2 �£ ".:.^..� je ti ' . PROPERTY Ds. s 4 TEST METHOD TYPfcAt. VALUE _ _ _ r e r4._ A. Tr4 =• 'Sp A5Ty qJ iT .p. h. wo 2H -:d .yy . y, be � T• rs.} � 4 SEAM STRENGTH: p`' A" Ca�p: c' E�g,�Fr: ?cc ^.r,l:ci F,�rr ul.a_3 c -• A Peps? AFB t6MJn hr, r. She^:F' - A ' 2 7 rrz+'8 v r w? S ^I :y CC =ar?': C" - r Y I bJ iw5 t JL ".77y '+5 n na7- C'C )Q2TF GL r woj 9.ZMF' rg 0 i"00' �A 3 (`6: C < F e a• 7 dS7E 'Lirq ..1hE•Sro-'F Cr.1-?@ +.n -'j t 74 F PJ :G Q , ASSEMBLY: Er:faa a. s: ^.reJ M•ee,c _,Z: EGAIC l4 R :]L L.fEr [ t 9:sr - i[ ?. M'J') s�ariarj po W's a F J •r•,, a7 Of `C :MtH a• P. tin; �4 adJ.e. Revised 9 /23/13 13 Geo Prodjcts, LLB; X #, *i 8615 Golder 5ptke Lane F Houston', Fars 77! 281 820 5493 f Fox 281 820 5499 800.434.4743E W- *W.cge®prodtucts.arg =• 'Sp -:d .yy . y, be � T• rs.} � 4 • Revised 9 /23/13 13 • 3 t ACUREN • 'M Tv: 7ory FoxrJeff Deese AiMId ! e;;t�no.eg es DATe: J. Iv 27" 2007 LOCATION: Kona+. Alaska PROJECT: lank lnspeCtOn ATTENTION: _— `Ttlny�J @f6 — ACCEPTANCE STANDARD. API 653 3� � ED IT {M INSPECTED: Semce Unknown No Tank Number PreSe EQUIPMENT 7J: y Ta °K # Unknown TYPE OF INSPECTION: A�3 653 nspea o^ (Used as a gu.del —a nl. where aposcable) 9.0 INTRODUCTION: An out -o' -sew ce Inspect or was req.,CSted a- a Tank owrec by AIIAM Technolcgtes Kenal, Alaska or. ,11,107 24" 20GG 'rspecfon was Pe-formec at AI MM in Kenai Th,s inspection was performed using API 653 Yana nspecllcn Repair Alteratio^ and Reco ^structicn 3' Edttlon as a qJ ee.me for rspecton It s ..nRnpWn i! this , p was sp ft to n ;apK is re av standard its also Jn+,nown When this tank was hu it we construct .on crawulys c• prior nspecl on reports were available API 653 V ed -t-cn was used as a gu:deane Tot rsocollon Tang 92 shuwr be ow it Figure 1, s suppor:e; Or a s: tank ee f•amO. the steel flame is we =Cec directly to t ^o A °amc plate showing the date of manufacture ana a COnst•uchon company .s not present C Exist, rg Tame -'Data Capac ty D ameier Lergtn rlool Prate Th;ckness She: Plate Th'caress Roof Pate Thick ^ess. Manufacture date Corstructton Slandard No Nameplate Present 400 Bbl ;Estimated) NIA 30 Feet (Est Hated) 275 rom as measured 250'rom as measured No •oof exists Urknow^ UrKnowl 1 Y I` v+ar :. i Revised 9/23/13 14 To: Tony Port;c°f Deese AINPV 'echnologies Am -miom: Tony.-Jeff DATE: .j1A1y27' PC07 LOCATION: Keraj Alaska PROJECT: 7- -K nspector. ACCEPTANCE STANDARD: ITEM INSPECTED: Service Unknown No a ^k NumDe• Present EQUIPMENT M TYPE or Imsm ciiaw API 653 IIisPes60,-. (Used as a gido'ine whereappgk.au'e; 1.0 INTRODUCTION: API 663 &" LE) anx # Unknown .A, cul -ot- service inspecaia' was tequcstDd un a f A'k. 0- ,-1,00 by AIMfr? 1 oehnologies. Ken a'. Ataska on Jcly27 2� 2006 If sPec.'an was por`or:ed at A M"d v Kenai. 1 hls insPeclio^ was Pe "crned usf�g API 653 Tank inspection. Hepa.r, Altc>�atiar, aiU Recunst�..cticn 3 "' t= dltio^ as a guideline tc• msaeaticn It Is un.;now� Ir fnts to ^k was but to a ;a�:K tab, cation sta^dard. 1: is also urk ^own when this ;a .k was o.til:. Nn co ^shuc6cn drawt• gs or orio• rs�erion reports ware available API 653 3 od41cn was . :,sod as a guideline for i.nspec?mn. T ynK a I shown below in F gutc t Is scppo ^("c or! a sled frame The steel °•acre t3 weldeb arec ?y to Gle to n, P, naroc Pl:e :c s,ow.ng tie date o' mdnufac6.ro a•d a constrictioi company, °nt prase,71 Exist na__TnpK Data Capacity Ciarnwer. Lengr. Floor Pia:e Th.ck ^ass. Snell Pate D',Jcsnrss- Roof plate Thrckncss: Manufacture dale (:onstwct on Standard No Nameplate Prese•a 400 Bb (Esarrated) NA 30 Feet (Estimated) .275' non- as meas;xed 250" "Orr as measured No roof exists Jnknowr. Jr:koowc Revised 9/23/13 15 a Rain for Rent Pumps, Tanks and Flitration Rentals kna• lur Ro� -•. H: m0 VrppucH 4qr itt ro Igo:a:h 1 •ww SrI- , ..may.. F,.rnti .f 11 - '.'GLenn.- .rr _ Ian S1xa'n -aq Salu!bn Saauvn SlnrMe 'w'oreTC SL Rct. 4a JYrvs rP Yu'f L sak�r.N :m }. �� LanNmmr' vaw SM1cn.e CxriVanq InOarr.9elian •:Gas V+ MOT In(ORT.tim t LCA, 0 0.. , tecp "T i +e• • iniyh li I1Jcnh orrr:o' rurdt.d ualen: fn,a n!4 r11rna hlm.uer = iu.. lu mme . ! Ipuarrnl q•.ny .r.lt,l �n'rn.rl . (tpli..nal Ir.: ^m_r wu:n`Ip.anf W. Ixlkl. +as. >la,r I .VG3Cj4Y f."n'arq'c' Ar.l omt •• 1 wo-r : `v" +6.na llLie w'4J d4.n. , -y rb.,! Is P: ;Y n :Ct nr! to Ct• fa• y 9w•r, J r r of •hr. prn1 9 vrl i" 1' V•er^.y rages ��: orr ilemu eccxy ma: -nG ePo., a,; u;arb. ct9r:.e ess:a9r« nee � :d ^4y xqp Itt e(kEC b((IY "I C� t`M.,D41 n.xt m:nP TIK InnR.. n Y C e'1 w P•i d r nb.ro 5 "C[•erA?�: of ma•, i:'tl xilh4 a uld ron .3 Ire 2 ^: M` .rrt uu• S" p�+ r t^ 11 r ntenrol rvnr r.3 9[+s" a'! - «: tai arty Ir "IlI , M.-! c! St ^el tarea¢M1n••, eeR y eq- ^sfrl, r r %.. yypc r:ema' Ora[ ng and cp ?ore' ¢tev el twl, pill! oxv matt/ Tw" t" 'Inr «rf n. ,vr1 f tr of GYHWlrarhMl y i I V ap :'d Meg Perm o[ •V ;Imo Cnry fpr mba r..m -ra•aet K a[ r ..arc s. ttrn r :Iw to I I' ,ai k I! ..I m'z ) i' Iv ? 1,91:1 • n Vi=_. T'Vl, Se'l k2•:m^- ' I:nSw•rr. Log,' Tra r Itr rt9 fri : 'w: !P ra,nl Pgh• 111111yT•.fw5 6Y =p;: 19 500L, J J I HOW Vrodum l 5V 4"S Cor•pmy Min I Cenitcl uo v aFMCrV'f [0( V-"'I 'n jlNr; y, S'Wy Ca'l VNY f" 6ti' I;,' fnd MI♦tyN'P! .. ' I Revised 9/23/13 16 BUCCANEER ALASKA, OPERATIONS, LLC Kenai Loop Pad #1 Temporary Waste Treatment Facility �TJCCANEFtt Sampling Plan 1. Background This policy is to be used as a guideline for sampling protocols associated with disposal of drilling wastes at the Kenai Peninsula Borough Central Peninsula Landfill (KPB Landfill). Wastes involved are specifically associated with drilling activities performed by Buccaneer Alaska Operations, LLC (Buccaneer) from oil and gas wells at the Kenai Loop Pad #2 and at the West Eagle Pad on the Kenai Peninsula. The procedures and policies are consistent with the KPB protocols used at their Landfill. These procedures are as outlined in KPB's Special Waste Disposal Policy for their Central Peninula Landfill as revised on August 19, 2013. The KPB landfill will not accept the following materials 1. Special wastes or other solid waste generated outside the Kenai Peninsula Borough, 2. Special wastes or other solid waste in any quantity that exhibits hazardous waste characteristics for ignitability, corrosivity, reactivity or toxicity, or contains listed hazardous waste, or substances that could be classified as a hazardous waste, at levels that exceed those as defined by the US Environmental Protection Agency ( USEPA) or the Alaska Department of Environmental Conservation (ADEC). 3. Special wastes or other solid waste that contains concentrations of Polychlorinated Biphenyls (PCB) greater than 10 mg /Kg. 4. Special wastes or other solid waste that contains free liquids as defined by USEPA Paint Filter Test, including petroleum products, chemicals or water. Drilling wastes that will be processed and disposed of at the KPB Landfill will acceptable for disposal under the above criteria as long as they meet analytical requirements as outlined in following sections. Buccaneer will use the services of AIMM Technologies, Inc. (AIMM) of Kenai Alaska to implement this Sampling Plan. R. Britch 1 9/24/2013 2. Sample Collection Samples of the treated wastes are collected at a point when the materials are of the general consistency of unconsolidated dirt. The number of samples collected is dependent on the requirements for the KPB Landfill as indicated in Table 1. The number of samples will be determined based on the estimated tonnage of materials ready for sending to the KPB Landfill an materials will be sent until the weight limit as measured at the KPB Landfill is either reached or when all sampled material has been hauled for disposal. If there is excess materials at the solidification cell (e.g. -the maximum weight for the number of samples has been reached, then additional sampling may be required to cover the additional weight of materials. Table 1. Number of Samples Required. r ne rsorougn on a case -by -case basis may approve fewer samples All samples will be grab samples from the pile of materials ready for disposal. Samples are obtained at different location in order to get discrete samples from the materials ready for disposal. Samples taken from depths of 2 to 12 inches of the surface of the pile at the sampling point and are placed in clean Y pint glass jars provided by the analytical lab. After collection and labeling, the samples are placed in refrigerated coolers and transferred to the analytical lab. Proper Chain -of- Custody documentation is used to track the handling of the samples. Proper Chain -of- Custody documentation is used to track the handling of the samples. R. Britch 2 9/24/2013 3. Sample Analysis Per the Landfill protocols, Buccaneer's wastes will be acceptable for disposal at the Landfill provided the material is not prohibited as in Section 1 above and the following limits are not exceeded: Table 2. Analytical Methods and Acceptable Limit for Disposal at the KPB Landfill. Parameter Test Method Acceptable Limit for Gasoline Range Organics Alaska Test Method AK101 Disposal <500 mg /Kg (GRO) Diesel Range Organics (DRO) Alaska Test Method AK102 <1000 mg /Kg Total Benzene, Toluene, EPA 8020 <50 mg/Kg Ethylbenzene and Xylene (BTEX) All analytical work will be done by Test America Laboratories, Inc. in Anchorage, Alaska. 4. Additional Documentation and Protocols For special waste or other solid waste, the following must be submitted in writing prior to KPB Landfill prior to acceptance: A description of the site or facility where the waste was generated, the source and type of the waste material, the estimate of the total quantity (tonnage) of materials to be disposed and the location of samples collected. 2. Results of laboratory analysis for each representative sample taken. All lab analyses must be in accordance with the specified USEPA Test methods for all relevant contaminants. 3. Type, quantity and major components of the contaminated products involved. 4. Material Safety Data Sheets (MSDS) on all suspected chemical products for special waste or other solid waste associated with chemicals other than petroleum products. 5. The proposed /desired date for disposal of the materials; R. Britch 3 9/24/2013 KENAI PENINSULA BOROUGH Solid Waste Department 47140 East Poppy Lane Soldotna, Alaska 99669 (907) 262 -9667 (907) 262 -6090 Fax SPECIAL WASTE DISPOSAL POLICY Central Peninsula Landfill Effective Date: October 1, 2005 Revision Date: August 19, 2013 L APPLICABILI iY This policy is to be used as a guideline to determine the acceptability of special waste materials (contaminated soil, spill residue, industrial process waste, and other solid waste) for disposal at the Central Peninsula Landfill (CPL). Due to the potential of encountering a wide variety of products and chemicals, it will often be necessary to make a case -by -case determination on the acceptability of specific waste types. II. PROHIBITED MATERIALS Under NO circumstances will the following be accepted for disposal at the CPL: 1. Special wastes or other solid waste generated outside the Kenai Peninsula Borough (KPB). 2. Special wastes or other solid waste in any quantity that exhibits hazardous waste characteristics for ignitability, corrosivity, reactivity or toxicity, or contains listed hazardous waste, or substances that could be classified as a hazardous waste, at levels that exceed those as defined by the US Environmental Protection Agency (USEPA) or the Alaska Department of Environmental Conservation (ADEC). 3. Special wastes or other solid waste that contains concentrations of Polychlorinated Biphenyls (PCB) greater than 10 mg /Kg. 4. Special wastes or other solid waste that contains free liquids as defined by USEPA Paint Filter Test, including petroleum products, chemicals or water. M. ACCEPTANCE LIMITATIONS FOR SPECIFIED POLLUTANTS All measurements are dry- weight measurements referenced to a soil matrix. A. Special wastes, contaminated soil, spill residue or other solid waste associated with underground storage tanks and systems having contained or containing only petroleum products, other than used oil or an unknown petroleum product, will be acceptable for disposal at the CPL provided the material is not prohibited as in Section II above and the following limits are not exceeded: CPL Special Waste Policy — Effective 10/1/05, Revised 8/19/13 Page 1 of 5 Gasoline Range Organics (GRO) LIMIT = <500 mg /Kg Alaska Test Method - AK 101 2. Diesel Range Organics (DRO) LIMIT = <1000 mg /Kg Alaska Test Method - AK102 Total Benzene, Toluene, Ethylbenzene and Xylene (BTEX) LIMIT = <50 mg /Kg Test Method — EPA 8020 Lead (leaded gasoline spills only) LIMIT = < 5.0 mg /L Test Method — TCLP (Toxicity Characteristic Leaching Procedure) B. Special wastes, contaminated soil, spill residue or other solid waste associated with underground storage tanks and systems having contained or containing used oil products or unknown petroleum products, will be acceptable for disposal at the CPL provided the material is not prohibited as in Section II above and the following limits are not exceeded: Residual Range Organics (RRO) LIMIT = <1000 mg /Kg Alaska Test Method —AK103 Total Benzene, Toluene, Ethylbenzene and Xylene (BTEX) LIMIT = <50 mg /Kg Test Method — EPA 8020 3. Lead LIMIT = < 5.0 mg /L Test Method — TCLP (Toxicity Characteristic Leaching Procedure) 4. Arsenic LIMIT = < 5.0 mg /L Test Method — TCLP (Toxicity Characteristic Leaching Procedure) 5. Chromium LIMIT = < 5.0 mg /L Test Method — TCLP (Toxicity Characteristic Leaching Procedure) 6. Total Composite of Halogenated Volatile Organic Compounds LIMIT = < 100 mg /Kg Test Method — EPA 8021 B or 8260B Polychlorinated Biphenyls (PCB) LIMIT = < 10 mg /Kg Test Method — EPA 8081 CPL Special Waste Policy — Effective 10/1/05, Revised 8119/13 Page 2 of 5 C. The acceptability for disposal at the CPL of any special waste or other solid waste associated with underground storage tanks and systems containing NON - PETROLEUM products will be on a case -by -case basis as determined by the KPB Solid Waste Department, tel. 907 - 262 -9667, fax 907- 262 -6090, email specialwasteCaiborough kenai.ak.us. D. The acceptability for disposal of any special waste, contaminated soil, spill residue, or other solid waste NOT associated with underground storage tanks and systems, such as, but not limited to, industrial processes; chemical processes; biological, thermal or chemical processes to remediate contaminated soils or products; spent sandblast sand; screenings from sand -grit separators or catch basins; or filtration processes will be on a case -by -case basis as determined by KPB SWD, tel. 907 - 262 -9667, fax 907 - 262 -6090, email specialwaste(a)borouph kenai ak us. W. INFORMATION REQUIREMENTS TO DETERMINE ACCEPTAEILITy A. It is the responsibility of the person(s) seeking disposal of the special waste, contaminated soil, spill residue or other solid waste addressed above, to provide sufficient documentation to demonstrate that the material meets the requirements of this policy. B. For special waste or other solid waste, the following must be submitted in writing prior to KPB SWD acceptance: 1. A description of the site or facility where the waste was generated, the source and type of the waste material, the estimate of the total quantity (tonnage) of materials to be disposed and the location of samples collected. 2. Results of laboratory analysis for each representative sample taken. All lab analyses must be in accordance with the specified USEPA Test methods for all relevant contaminants. 3. Type, quantity and major components of the contaminated products involved. 4. Material Safety Data Sheets (MSDS) on all suspected chemical products for special waste or other solid waste associated with chemicals other than petroleum products. 5. The proposed /desired date for disposal of the materials. CPL Special Waste Policy — Effective 10/1/05, Revised 8/19/13 Page 3 of 5 6. The following sample number should be used as guidance for KPB SWD special waste disposal screening. All samples must be grab samples - no composite sampling is permitted unless approved by the Borough. *The Boroug ull a ease -oy -case oasis may approve fewer samples. C. The SWD may, on the basis of the above information, request more specific laboratory analyses for specific contaminants of the special waste or other solid waste prior to making a decision on the acceptance of the material. The SWD will provide written authorization for disposal of any special waste or other solid waste that is determined to be acceptable. The letter of authorization will include any specialized requirements for disposal. A copy of the authorization letter must be presented to the CPL Scalehouse Attendant at the time each load of material is delivered for disposal by the contracted hauler. Failure to have a current letter of authorization will result in the load being refused at the Scalehouse. D. Allow 5 business days for processing special waste disposal requests. E. The disposer of special waste or other solid waste must make specific disposal arrangements with the Solid Waste Department tel. 262 -9667, fax 262 -6090 at least 24 hours prior to bringing the waste to the CPL. Failure to accomplish either coordination or follow the directions given will result in refusing the load. F. Trucks hauling the waste loads will weigh -in and out at the CPL Scalehouse. The weights recorded will be the basis of tracking compliance with the written disposal authorization. CPL Special Waste Policy — Effective 10/1/05, Revised 6/19/13 Page 4 of 5 V, OTHER EZEOUREMENTS A. Special Waste requests, inquiries, billing and disposal questions need to be directed to the Solid Waste Department: Phone 907 -262 -9667 FAX 907 - 262 -6090 email specialwastecUborou h.kenai.ak.us B. Special waste is accepted Monday through Friday, and all waste placement must be complete by 4:00 PM. Special waste disposal may occur on an alternative schedule if pre - approved in writing by the Borough. C. Failure to comply with these requirements will result in refusing the load. SWD Scalehouse attendants and operators have the authority to refuse loads at the CPL. D. All other requirements applicable for solid waste disposal — covered loads, hours, fees, etc. shall apply. CPL Special Waste Policy — Effective 10/1/05, Revised 8/19/13 Page 5 of 5 - wccaneer needs to drill two wells ,vithir the next 6 crionths and their norinal dis(JOSd' option of offsite solidification at AiMNi facility and ia.ndfill disposal is not available 001 "s are' not av; Hebit' V tt th,c sf orr icrril ;]1161 i-�lUSt Dptions re: ire cn site �zheMCa! I 'e 000ni , are avaliable. 10/2/2013 1 r 3 at per.nnanent AIMM facility iilc,,' c:isposai at AlMlt4 -nc3,,jofM I'dification at temporary Buccaneer fa O ity and disprsal at KPB fandfill -;,ldi afi,,', :t)i--/It iii disi,-Usal vvell age arec: Q"'Id offsite fluvver-481 foi d:s•l,osa; J Hauling Description-I d,,,d ci:ttings from twu vvells o:1 the .ftodi Penrn ,la to the "I"ei1a; !-c,,cjp Pacl t,.! VVc,sl Eagle 'Well ? l (October to DeCefflbe! 201.3) ri a Loci) "NO 4 lanU 2!'y, to Niarch 2011, A0 I c -1 Dd i�j haulwg scki'Med matei ial� to K! M 1. )r Lpndf;ll wr ( :spos&,I 10/2/2013 K � on, War Pad 1 Xwnea •n Kenai Loy, Pad 2 KPB Land2l The (!Umber of loards in the haulinq pro,-�ess 6e,-Yends 011-1 dr Oling activities underw2y O'Names are hauled fronn the drilling location to the trealmient location irl 70, rn SO ',)bi vacuum tnicks 1 0, Lo � iOUIIO !-r;ps pie - ,'Ry iVatr-i :als hauled mchide a i1b: of ovater (about 70% by volua e) anC solids about ?TX� by Volumes and 1::i 11 j:r,g5/O'1 illeo' 0 10/2/2013 3 i'Fr)ol LOOP tMel1##14-about 6.,000 bbl of wastes currently being processed of AiMM foci(ity in North !Kenai (for comparison only) U West: Eagle Well 41 -about 5,000 bbl of wastes to be treated at Kenai Loop Pad #1 e� Ken,!!; Loop 'A /ell #2 -2-about 6,000 bb! of wastes to be treated at Kerjai Loop Pad #1 �d r3asic: process is solidification and disposal at KPB landfill �] Temporary operation C� Located at Kenai Loop Pad #1 Fenced and gated area at the edge of Kenai so /z /2013 9 it �ililt;'_ vdaSlG receiving and, mixing tanks-2 open co 3per4 6:011 hbi tanks .ntsij,ion ofsolki fication materials and mixing operations -EX200 Excavator 3, Contingency storage banks -2 `O 4-500 bbi tanks. Ql'utfl ati(M CON cbOUt 65' X 170' inside Treatment Process Components �9 n 10/2/2013 5 Treated Wastes 7�A Cemponenis r Sr Y,ouSr C:�o;ect t.; 10/2/2013 11 L'25t�iTg .. ,;,oloccls tequire—, by KPB Larlafill Milefl- lest observc-Lions-vis:,al and I,)bvici,,s F Gasoline Range Organics (GRO) DiEsel Range Organics (DRO) T lbert-,e!ie ;!-,6 Xylene holai Benz--ne, 7doeiie, Ettiy. � /B- EY I ) f - /111 SF�-.Iples ha\'c roeviol-isly po-5sed 1, 10/2/2013 F] An update Action Agenda will be provided at meeting 9a AGENDA KENAI CITY COUNCIL — REGULAR MEETING OCTOBER 16, 2013 7:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 nttpalwww.ci.kenai A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Certification of Election 4. Administer Oaths of Office 5. Election of Vice -Mayor 6. Agenda Approval 7. Consent Agenda (Public comment limited to three (3) minutes per speaker, thirty (30) minutes aggregated) *All items listed with an asterisk ( *) are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per speaker) C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D. PUBLIC HEARINGS (Testimony limited to three (3) minutes per speaker- thirty (30) minutes aggregated) 1. Ordinance No. 2724 -2013 — Accepting and Appropriating Funds Forfeited to the Kenai Police Department. 2. Resolution No. 2013 -67 — Supporting the Selection of the Nikiski Area for The Proposed Alaska LNG Project's Natural Gas Liquefaction Plant And Terminal By ExxonMobil, BP, ConocoPhillips and TransCanada. 3. Resolution No. 2013 -68 — Adopting the City of Kenai Capital Improvements Plan Priority List for State and Federal Funding Requests for the Fiscal Year 2014. 4. Resolution No. 2013 -69 — Awarding a Contract to Alaska Sure Seal for Snowplowing Services at the Kenai Airport. MINUTES 1. *Regular Meeting of October 2, 2013 F. UNFINISHED BUSINESS — None G. NEW BUSINESS H. 1. *Action /Approval — Bills to be Ratified 2. *Action /Approval — Purchase Orders Exceeding $15,000 3. *Action/ Approval — Lease of Airport Land Outside of the Airport Reserve Identified as Lot 8, Kenai Industrial Park Subdivision, Section 8, Township 5 North, Range 11 West, Seward Meridian, Alaska to Buccaneer Alaska Operations, LLC for a Term of 30 Years Effective November 1, 2013. 4. *Ordinance No. 2726 -2013 — Accepting and Appropriating a Grant from the Rasmuson Foundation in the Amount of $21,376 and Matching Funds in the Amount of $10,000 from the Friends of the Kenai Community Library and $1,000 from the Totem Tracers Genealogical Society for the Purchase of Equipment and Furnishings at the Library. 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks and Recreation Commission 6. Planning and Zoning Commission 7. Beautification Committee 8. Mini -Grant Steering Committee 1. REPORT OF THE MAYOR J. ADMINISTRATION REPORTS 1. City Manager 2. City Attorney a. Options for Moving Forward with the Comprehensive Plan Following Results of Proposition No. 1. 3. City Clerk K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) 2. Council Comments City of Kenai Council Meeting Agenda Page 2 of 3 October 16, 2013 L. EXECUTIVE SESSION — Regarding Matters the Immediate Knowledge of Which Would Clearly Have an Adverse Effect Upon the Finances of the City and Matters Which Are Subject To Attorney Client Privilege Regarding Litigation Involving Cook Inlet Natural Gas Storage Alaska (CINGSA) — Mineral Rights, Easements and Pore Space. [AS 44.62.310(c)(1)] M. PENDING ITEMS — None N. ADJOURNMENT INFORMATION ITEMS 1. Purchase Orders between $2,500 and $15,000 for Council Review The agenda and supporting documents are posted on the City's website at www.ci.kenai.ak.us . Copies of resolutions and ordinances are available at the City Clerk's Office or outside the Council Chamber prior to the meeting. For additional information, please contact the City Clerk's Office at 907 - 283 -7535 ext 231. City of Kenai Council Meeting Agenda Page 3 of 3 October 16, 2013 Rol KENAI PENINSULA BOROUGH PLAT COMMITTEE BREEZE INN SEWARD ALASKA HOTEL MT ALICE CONFERENCE ROOM 303 NORTH HARBOR DRIVE SEWARD, ALASKA 99664 6:30 p.m. October 14, 2013 Tentative Agenda MEMBERS: A. CALL TO ORDER Paulette Bokenko- g ROLL CALL Carluccio City of Seldovia Term Expires 2015 C. APPROVAL OF AGENDA, EXCUSED ABSENCES, AND MINUTES JoAnne Collins 1. Agenda Anchor Point / Ninilchik Term Expires 2016 2. Member /Alternate Excused Absences Mari Anne Gross Southwest Borough 3. Minutes Term Expires 2014 Sandra Holston a. September 23, 2013 Plat Committee Minutes East Peninsula Term Expires 2016 D. PUBLIC COMMENT (Items other than those appearing on the agenda. Limited to five minutes per speaker ALTERNATES: unless previous arrangements are made.) Philip Bryson E. SUBDIVISION PLAT PUBLIC HEARINGS City of Kenai Term Expires 2016 1 Earl H. Fisler Warchola Replat Paul Whitney KPB File 2013 -160 [McLane/Warchola] City of Soldotna Location: On Tustumena Lake Road in Kasilof Term Expires 2014 2. Soldotna Junction Subdivision Autozone Replat KPB File 2013 -170 [McLane / Autozone Development Corp] Location: City of Soldotna 3. Peninsula Center Sub 2013 Addition KPB File 2013 -162 [Integrity /Stenga] Location: City of Soldotna 4. K.S.R.M. Sub Davis Addition KPB File 2013 -163 [Integrity /Davis] Location: On Winterpark Ave, in Kenai 5. Rolling Hills Sub 2013 Addn. KPB File 2013 -165 [Integrity /Beaudoin] Location: On Alderwood Court in Sterling 6. Rice Sub 2013 Replat KPB File 2013 -166 [Integrity /Moran] Location: On Veterans Street in Sterling 7. McGrady Subdivision 2013 Addn. KPB File 2013 -167 [Integrity /Johnson] Location: On Suttle Avenue north of Kenai FINAL SUBDIVISION PLAT PUBLIC HEARING G. OTHER / NEW BUSINESS H. MISCELLANEOUS INFORMATION -- NO ACTION REQUIRED ADJOURNMENT NEXT REGULARLY SCHEDULED MEETING The next regularly scheduled Plat Committee meeting will be held Monday, October 28, 2013 at the Kenai Peninsula Borough George A. Navarre Administration Building, 144 North Binkley Street, Soldotna, Alaska at 5:30 p.m. PLANNING DEPARTMENT Phone: 907-714-2215 Fax: 907-714-2378 Phone: toll free within the Borough 1- 800 - 478 -4441, extension 2215 e -mail address: plan ning(d_)borough.kenai.ak.us web site: www. borough .kenai.ak.us /planningdept KENAI PENINSULA BOROUGH PLANNING COMMISSION BREEZE INN SEWARD ALASKA HOTEL MT ALICE CONFERENCE ROOM 303 NORTH HARBOR DR. SEWARD, ALASKA 99664 October 14, 2013 - 7:30 P.M. Tentative Agenda Philip Bryson Chairman A. CALL TO ORDER Kenai City Term Expires 2016 B. ROLL CALL Paulette Bokenko- Carluccio C. APPROVAL OF CONSENT AND REGULAR AGENDA PC Member City of is All items marked with an asterisk (`) are consent agenda items. Consent agenda items are Term Expires 2015 considered routine and non - controversial by the Planning Commission and will be approved by one motion. There will be no separate discussion of consent agenda Items unless a Planning Alice Joanne Collins Commissioner so requests in which case the item will be removed from the consent agenda and PC Member considered in its normal sequence on the regular agenda. Anchor Point/ hik Term Expires 2016 If you wish to comment on a consent agenda item or a regular agenda item other than a public hearing, please advise the recording secretary before the meeting begins, and she will inform the Cindy Ecklund Chairman of your wish to comment. PC Member City of Seward *1. Time Extension Request Term Expires 2014 Dr. Rick Foster a. Springer Sub Scholand Addition Parliamentarian KPB File 2008 -208 [Imhoff / Scholand, Detwiler] Homer City Location: City of Kachemak Term Expires 2016 Mari Anne Gross b. Bootstrap No. 1 PC Member KPB File 2006 -220 [Imhoff /Bootstrap Ent.] Southwest Borough Location: North of Homer City Limits Term Expires 2014 Sandra Key Holsten C. Misty Mountain PC Member KPB File 2006 -267 [Imhoff /Rand, Tucker] East Peninsula Location: North of Homer City Limits Term Expires 2016 James Isham d. Marley Subdivision PC Member KPB File 2007 -239 [Imhoff /Marley, Smith, Nellis] Sterling Location: City of Homer Term Expires 2015 e. Cowgill Acres Whip Addition Harry Lockwood PC Member KPB 2010 -115 [Imhoff/Whip] Ridgeway Location: On Kokomo Road in Homer Term Expires 2016 f. Clan Maxwell Estates the Aerie Addn. Blair Martin Vice Chairman KPB File 2012 -142 [Lang & Assoc. /Maxwell] Kalifornsky Beach Location: On Big Bear street, Seward area Term Expires 2015 g. Clan Maxwell Sub Woodland Hollow Addn. Paul Whitney PC Member KPB File 2012 -141 [Lang & Assoc. /Maxwell] City of Soldotna Location: On Seward Highway, Seward area Term Expires 2014 Robert Ruffner "2. Planning Commission Resolutions PC Member Kasilof /Clam Gulch Term Expires 2015 Jason Taudainen PC Member Northwest Borough Term Expires 2014 Max J. Best Planning Director Mike Navarre Borough Mayor a. Resolution SN 2013 -03; Renaming certain public rights -of- way within Section 12, T4N, R11W, SM, AK & Sections 14, 15 & 19, TSN, R9W, SM, AK within Emergency Service Number 302; Renaming certain public rights -of -way within Section 15, TBN, R1 1W, SM, AK within Emergency Service Number 501. b. Resolution SN 2013 -04; Naming unnamed private access within Section 3,T6S, R13W, SM, AK within Emergency Service Number 202 *3. Plats Granted Administrative Approval *4. Plats Granted Final Approval (20.04.070) - None *5. Plat Amendment Request - None *6. Commissioner Excused Absences a. Jim Isham, Sterling b. Blair Martin, Kalifornsky Beach *7. Minutes a. September 23, 2013 Plat Committee Minutes b. September 23, 2013 Planning Commission Minutes D. PUBLIC COMMENT /PRESENTATIONS /COMMISSIONERS (Items other than those appearing on the agenda. Limited to five minutes per speaker unless previous arrangements are made. E. UNFINISHED BUSINESS F. PUBLIC HEARINGS G. ANADROMOUS STREAM HABITAT PROTECTION (KPB 21.18) - None H. VACATIONS NOT REQUIRING A PUBLIC HEARING - None SPECIAL CONSIDERATIONS 1. Alderwood Estates Sub Lot 7 Blk 2 Bldg. Setback Exception KPB File 2013 -151 Resolution No. 2013 -19 Petitioner: Karen Lea French Location: On Peggy Sue Drive in Sterling Motion on Floor. Motion made and seconded to approve the KPB Planning Commission Resolution 2013 -19 thereby granting the building setback exception based on the findings. J. SUBDIVISION PLAT PUBLIC HEARINGS The Plat Committee is scheduled to review 7 preliminary plats K. OTHER/NEW BUSINESS L. ASSEMBLY COMMENTS M. LEGAL REPRESENTATIVE COMMENTS N. DIRECTOR'S COMMENTS O. COMMISSIONER COMMENTS P. PENDING ITEMS FOR FUTURE ACTION Q. ADJOURNMENT MISCELLANEOUS INFORMATIONAL ITEMS NO ACTION REQUIRED Seward Planning Commission Minutes - August 20, 2013 Kenai Planning & Zoning Commission Minutes - September 11, 2013 NEXT REGULARY SCHEDULED PLANNING COMMISSION MEETING The next regularly scheduled Planning Commission meeting will be held Monday, October 28, 2013 at the Kenai Peninsula Borough George A. Navarre Administration Building, 144 North Binkley Street, Soldotna, Alaska at 7:30 p.m. ADVISORY PLANNING COMMISSION MEETINGS Advisory Meeting Location Date Time Commission Anchor Point Anchor Point October 22, 2013 7:00 p.m. Chamber of Commerce November 5, 2013 Cooper Landing Cooper Landing Community Hall November 6, 2013 6:00 p.m. Hope / Sunrise Hope Social Hall November 7, 2013 7:00 p.m. The Kachemak Bay and Funny River Advisory Planning Commissions are inactive at this time. NOTE: Advisory planning commission meetings are subject to change. Please verify the meeting date, location, and time with the advisory planning commission chairperson. Chairperson contact information is on each advisory planning commission website, which is linked to the Planning Department website. CONTACT INFORMATION KENAI PENINSULA BOROUGH PLANNING DEPARTMENT Phone: 907-714-2200 Phone: toll free within the Borough 1- 800 - 478 -4441, extension 2215 Fax: 907 - 714 -2378 e -mail address: planning(a).borough.kenai.ak.us web site: www. borough .kenai.ak.us /glanningdeot Q Z w Y LL O N U. 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E Ew= - U 3 w m 5 c a r T mrnV w p nm c E a`m T o a m'o �a oc °En =�oY > 8 �O m 0 v o m r a o E9 m m ` Y m E m N c c rna in m 3 ° a>,L m `c '"t w.c U 3 >. o °> 2 m y `O ni c a~ m c w a- w m o _ p 0 a m o m 3T� o' 3.oY w o F w 3..:L a s m o mu)3, -¢ o 0oa w w O w c o °O0 v U N m p o 2 n y'- m° 3w wm d a o 3 d w N a N m E w c w w ?' m ° m m $- o o n y Q $ w m n m a c a 3 . n L J �N w p . j L N E w d E2 U Y V - � a hN a�w (O J LO OOw 4 -0 N _ E OL O U w F C� O f9 H w i m F 3 J C a N N � o _ O m o v m 3 a m 3 U i m C m m n > L ° °C a S C O O m N y n E° S a u V> tq U p V p fn n o ci U m p F `o 'm E° m m a cw o° F C W K m Q n az Z I w a _ 0 Y a m n m a R § b � � �■ §o ,§ �O CL UJ ■W ISM �/ U. z Lu 2E w5 w w §a kC0 $o Q � LL U) / ■ won oza wmw \ }�/ } / \ } \\ ` t50 //. /IS \ \{ _ 2 ; «§\ ,0 \ {){ {k'0 ±\ W CD OK X0 p lo \) /�) _ - \ \ } \� \ / \` \�\ � (!Ox / ■ llb ` "Village with a Past, C# with aFuture "" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 1III�1 Itie city % 1992 V MEMO: TO: Planning & Zoning Commission FROM: Nancy Carver, Acting City Plannerr)J DATE: October 10, 2013 SUBJECT: Planning & Zoning Commission Work Sessions At your September 11th Planning & Zoning meeting the Commission discussed possible future work session meetings and requested Administration provide a list of priorities. The following were ones that were discussed: PLANNING COMMISSION POSSIBLE WORK SESSIONS Task KMC Title 14 Amendments Priority Complete Rewrite Title 14 — Planning & Zoning Amend KMC 14.10 Subdivision Regulations in conjunction with the development of minimum road standards. Amend KMC 14.20.220 — Signs Amend KMC 14.20.240 — Mobile Homes Establish Transitional Housing (Administration to provide Comments ) 11113/13 Review /Establish Storefront Improvement Program Pending Amend Angler Dr. & Ames Rd. — Zone change (CUP) Implementation 2030 Comprehensive Plan At your October 23`d meeting, rate what work sessions you believe are the most important for the Commission to begin addressing. The Commission's recommendation will be forwarded to Administration for review and comment. �\ fhe aYy of V "Vlla9e with a Past, C# with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 �IIIII 1992 MEMO: TO: Rick Koch, City Manager U FROM: Nancy Carver, Acting City Planner J DATE: September 12, 2013 SUBJECT: Planning & Zoning Commission Work Sessions At last night's Planning & Zoning meeting the Commissioners discussed the Storefront Improvement Program. The Commission is interested in future meetings concerning this subject however, they are unsure as to where this falls within the priorities of future work sessions. The Commission has requested staff meet with Administration to provide a list of priorities that require Planning Commission work sessions. Some that came to mind were: PLANNING COMMISSION POSSIBLE WORK SESSIONS Task KMC Title 14 Amendments Priority Complete Rewrite Title 14 — Planning & Zoning Amend KMC 14.10 Subdivision Regulations in conjunction with the development of minimum road standards. Amend KMC 14.20.220 — Signs Amend KMC 14.20.240 — Mobile Homes Establish Transitional Housing Review /Establish Storefront Improvement Program Amend Angler Dr. & Ames Rd. — Zone change CUP Implementation 2030 Comprehensive Plan The next scheduled Commission meeting is October 9, 2013. Prior to that meeting, Administration should provide the Commission with a tentative list of priorities to begin scheduling work sessions. I would like to schedule a meeting to discuss this subject. COMMISSION CHAIR REPORT October 23, 2013 REGULAR COMMISSION MEETING CHANGES TO THE AGENDA BY: ADD: le Commissioner Arness - Excused Absence Administration 2a Amended minutes from the 10/9/13 meeting 5a Buccaneer AK Operations, LLC - Permitting Information • Stephen Ward - Operations Manager l lb Angler Dr. & Ames Rd. - Zone Change (CUP) • Email - Greg Davis • Mack Padgett Nancy Carver From: jake Arness Qarness @udelhoven.com] Sent: Wednesday, October 23, 2013 9:45 AM To: Wilma Anderson; Nancy Carver Subject: 10 -23 -13 PnZ meeting I hate to do this at the eleventh hour, but I am in Anchorage and will not be back until Tomorrow. Jake Arness Project Manager Udelhoven Oilfield System Services iarness(o)udelhoven.com (907)394 -2610 Cell (907)283 -5923 Office (907)283 -5929 Fax AGENDA ITEM �� PAGE CITY OF KENAI PLANNING & ZONING COMMISSION OCTOBER 9, 2013 — 7:00 P.M. CITY COUNCIL CHAMBERS CHAIR JEFF TWAIT, PRESIDING MINUTES 1. CALL TO ORDER Chair Twait called the meeting to order at 7:00 p.m. a) Pledge of Allegiance Chair Twait led those assembled in the Pledge of Allegiance. b) Roll Call Roll was confirmed as follows: Commissioners present: Chair J. Twait, P. Bryson, B. Shiflea, H. Knackstedt, K. Peterson, D. Fikes Commissioners absent: J. Arness (excused) Staff /Council Liaison present: Acting Planner N. Carver, Council Member T. Navarre, City Clerk S. Modigh A quorum was present. c) Agenda Approval Commissioner Twait requested the following changes to the agenda: ADD: 1 E — Correspondence from Commissioner Arness requesting excused absence. 4A — PZ13 -37 American Legion Plat Map of City utilities 7A— Buccaneer AK Operations, LLC. Power Point presentation from October 2, 2013. MOTION: Commissioner Knackstedt MOVED to approve the agenda as amended and Commissioner Shiflea SECONDED the motion. There were no objections. SO ORDERED. d) Consent Agenda MOTION: Commissioner Peterson MOVED to approve the consent agenda and Commissioner Bryson SECONDED the motion. There were no objections. SO ORDERED. e) "Excused Absences Approved by consent agenda. AGENDA ITEM PAGE_ *All items listed with an asterisk ( *) are considered to be routine and non - controversial by the Commission and will be approved by one motion. There will be no separate discussion of these items unless a Commission Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. 2. *APPROVAL OF MINUTES — September 11, 2013 Approved by consent agenda. SCHEDULED PUBLIC COMMENT — None. 4. CONSIDERATION OF PLATS a) PZ13 -37 — Preliminary Original Townsite of Kenai American Legion Replat and ROW Vacation, Submitted by Integrity Surveys, 820 Set Net Drive, Kenai, AK Acting Planner Carver reviewed the staff report included in the packet, recommending approval with no contingencies. MOTION: Commissioner Shiflea MOVED to approve PZ13 -37 and Commissioner Peterson SECONDED the motion. Twat opened the meeting for public comment; there being no one wishing to speak, the public comment was closed. Commissioner Bryson noted his support of the plat. VOTE: Commissioners voting YEA: Bryson, Knackstedt, Peterson, Twait, Shiflea, Fikes Commissioners voting NAY: MOTION PASSED UNANIMOUSLY. 5. PUBLIC HEARINGS — None. 6. UNFINISHED BUSINESS —None. 7. NEW BUSINESS a) Application to Lease Airport Lands Outside the Kenai Municipal Airport Reserve by Buccaneer Alaska Operations, LLC for Lot 8, Kenai Industrial Park Subdivision for the purpose of a Natural Gas Production Facility (Gas Manufacturer /Storage); Operation of Class II Injection Facility (Storage /Disposal of Onsite and Offsite Materials) — PLANNING AND ZONING COMMISSION MEETING October 9, 2013 PAGE 2 Discussion /Recommendation. Acting Planner Carver reviewed the amended lease which included operation of a Class II Injection Facility for the storage /disposal of onsite and offsite materials. Carver advised the amended lease complied with the Comprehensive Plan and the zoning code. It was noted that Council, at its October 2 meeting, approved a special use permit allowing Buccaneer to begin its operations on a temporary basis prior to execution of the long -term lease which will expire upon execution of said lease or in September 2014. MOTION: Commissioner Shiflea MOVED to recommend Council approval of the Application to Lease Airport Lands Outside the Kenai Municipal Airport Reserve by Buccaneer Alaska Operations, LLC for Lot 8, Kenai Industrial Park Subdivision for the purpose of a Natural Gas Production Facility; Operation of Class II Injection Facility (Storage /Disposal of Onsite and Offsite Materials) and Commissioner Peterson SECONDED the motion. Twait opened the meeting for public comment. Buccaneer Consultant Bob Britch explained the need for the Disposal Facility and Class II Injection Well. Discussion ensued regarding the disposal of waste materials and required permits which have already been secured by Buccaneer. Commissioner Knackstedt requested secured permits be provided to the commission for review in the next meeting packet. Carver further noted the amended lease would be 30 years versus the current 20 years. VOTE: Commissioners voting YEA: Bryson, Knackstedt, Peterson, Twait, Shiflea, Fikes Commissioners voting NAY: MOTION PASSED UNANIMOUSLY. 8. PENDING ITEMS a) Storefront Improvement Program. 9. REPORTS a) City Council — Council Member Navarre reviewed the action agenda of the September 18 and October 2 City Council meetings included in the packet. b) Borough Planning — Commissioner Bryson reviewed the September 23 Borough Planning Commission agenda included in the packet. PLANNING AND ZONING COMMISSION MEETING October 9, 2013 PAGE 3 c) Administration Advised that administration has not provided direction on how to prioritize requested work session topics, but that the commission would prioritize at its next meeting. Noted she would be out of the office until October 22. • Reported Council approved funds for commissioners to attend the Planning conference in Anchorage this November. Requested an email from individuals interested in attending with travel dates. 10. PERSONS PRESENT NOT SCHEDULED — None. 11. INFORMATION ITEMS a) PZ Resolutions — 3rd Quarter Report b) Building Permits — 3rd Quarter Report c) Code Violation — 3rd Quarter Report 12. NEXT MEETING ATTENDANCE NOTIFICATION — October 23, 2013 • Council Member Navarre advised he would be out of town on October 23, but would have another council member attend in his absence. 13. COMMISSION COMMENTS & QUESTIONS — None. 14. ADJOURNMENT There being no further business to come before the Commission, the meeting was adjourned at 7:50 p.m. Minutes prepared and submitted by: Sandra Modigh, CMC City Clerk PLANNING AND ZONING COMMISSION MEETING October 9, 2013 PAGE nA A F� EA ALASKA OIL AND GAS CONSERVATION COMUUSSION E. A. Rike EVP Operations Buccaneer Alaska Operations, LLC 952 Echo Lane, Suite 420 Houston, TX 77024 Re: Kenai Loop Field, Kenai Loop Pool, Kenai Loop #3 Sundry Number: 312 -100 Dear Mr. Rike: SEAN PARNELL, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. DATED this H- ay of May, 2012. Encl. f,D r��lt�s`Zv MAY 18 2012 -------------- - - - - -- Sincerely, Cathy/P. Foerster Chai AGENDA ITEM ,Q PAGE--L- BY STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVAL RECEIVED 14AR 16 2012 Alaska Oil & Gas Cons. Commission �1. Type of Request: Abandon ❑ Plug for Rafted ❑ Perforate New Pool ❑ Repelr Well ❑ j Ch a rN rogram ❑ Suspend ❑ Plug Perforations ❑ Perforate ❑ Pull Tubing ❑ Time Extension ❑ Onerations ShutdnwnM Rw.wnrar A.. Won m_.u_n ...__— _._..I _.. — 2. Operator Name: _ __ — ..a.,e •• 4. Current Well Gass: —u,_,. _wnven to uses If net LI S. Permit to Drill Number. Buccaneer Alaska Operation:, LLC Development ❑ Exploratory 0 Strattgrephic ❑ Service ❑ 211 097 13. Address: B. API Number. 952 Echo Lane, Suite 420, Houston, Texas 77024 50133205970000 7. If perforating, closest approach in pool(s) opened by this opw"In I to nearest 8. Weil Name and Number: property line where ownership or kmdawnership changes: ❑ Sparing Exception Required? Yes ❑' No ❑ Kenai Loop #3 9. Property Designation (Lease Number): 10. FIe1d/POOI(s); MHT- 930070 Kenai Lo 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVO (ft): Plugs assumed): Junk (measured): 11368 11000 6370 9135 6370' Plus others 11300'+ - Casing Length I Size MD TVD Bunt Collapse Structural This EVP Operations Buccaneer Alaska, LLC Conductor 1201 16 120 120 re ns Surface 1 30271 10 x1r, 3027 3028 5210 2478 Intermediate 823301 75V 8330 7969 8880 4780 Production LMer 3220 4 112" 11320 10959 8430 7500 _Perfora Depth MO (ft): Perforation Depth TVD (fty. Tubng Sim; Tubing Grade: Tubing MD (ft): Packers and R..qV Tani ic. uracnnnems: Description Summary of Proposal Detalled Operations Program M BOP Sketch ❑ ❑ 13. Well Class after proposed work: Exploratory ❑ Development ❑ Service ❑+ 14. Estimated Date for 15. Well Status after proposed work; Commending Operations: Oil ❑ Gas ❑ WDSPL ❑+ Suspended ❑ I16. Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ C=mlsslon Representative: ❑ GSTOR SPLUG ❑ IT I hereby certify that the foregoing Is true and correct to the beat of my knowledge. Contact Steve Hannigan (337) &19-5345 Primed Name E.A. Rlke This EVP Operations Buccaneer Alaska, LLC Bosoms Phone 713 488 1678 Date 311312012 COMMISSION USE ONLY tillers of approval: Notify Commission so that a representative may witness Integrity ❑ BOP Teal Mechanics[ Integrity Test If �JI r710L> f+y1c # / / � er "I'1.>,.11t.e. 7:rs..c>,iT // /� -iv rel .quent Form Required: /� Y 2'iL-) ISurMry Number. 51 Z f Locstion Clearence ❑ n APPROVED BY by / 7 /9•%(•/f COMMISSIONER THE COMMISSION Date: Form 10403 Revised 1/2010 D f F i �/nrT {— Submit in Duplicate �O j _ A�' Current Kenai Loop #3 Pad 1 3394' FSL, 1134' FWL 211097 50.133- 20597 -00-0 MHT 9300070 L.- 92.5' (21'AGL) 9/1/2011 9/26/2011 Max Ina 28 eegnea Cement T o Cast Iron Bridge 4850' MD Plug 4548'TVD set @6400'MO + "r cement an top _ Perforations 6495'- °° a 6450' MD tzc a Perfomtlons II 6,950 - 6,960' s>c Baker Flax Lok Liner Hangar w /ZXP Pkr and PBR top ® 8100' MD Cast Iron bridge Plug w/25' c cement on top Perforations - set at 9,750' MD 9,730' - 9,IiIV MD Parkerw(sealbore / 'X' Pro81e OR 10,045' MD. "%"plug Perforations- 10,223' - 10,248° MO packer 7PIM X' nipple Perforations - M010,520'- 10,545'MO install Packer w /sea[bore g, 10,700'MD Perforations - 10,970' - 10,945' 2 2 -7/8" tubing tall, "X" nipple and t0' ' pup GU! @10,730.5' MD. Dropped to T11 PBTD bottom 11,388'MD 'MD 91A00'TVD L 'TVD J J 4.112" Structural PICO Hydril 521 Kenai Penisuln Borough State: 15" X -58 84 ppf MD 8,100' Top Sotlorn 7,831' " MD Surf 120' TuNno 2713' TVD Surf 120' areid B'/: TOP Bottom L-80 455ppf op m 7MD D' 3.027' 0' 3,028' Intermediate Ca sine 7-518" L-80 28.7 ppf Top Bottom MD 0' 81330' TVD 0' 7,889^ Liner 4.112" L•80 Hydril 521 Kenai Penisuln Borough State: Top perforations (MD): MD 8,100' ' :':11000i' TVD 7,831' " Dale Completed: TuNno 2713' L-80 ppf areid B'/: TOP Bottom MD TVD ):atlmeted FOfmalbn TOOe MD MO Well No 8 Number. Ksnal Laop 83 Leese: Kenai Loop County cur Pariah: Kenai Penisuln Borough State: Alaska country. u3A perforations (MD): Port (TVD)r Angle @KOP and Depth: Angle @Perfs: I KOPTVD: Dale Completed: RKB: 21' areid B'/: Last Revision Date: Exhibit 13 - current KL #3 Well Bore Diagram III Converted to Disposal III Kenai Loop #3 Pad 1 3394' FSL, 1134' FWL 211 -097 50 -133- 20597 -00-0 MHT 9300070 )j, 92.5' (21' AGL) 9!26/2011 B1C LCC�s� m��rzz 9trvetoral P'oe_ SLB COL 09102/2011 16' X•58 84 pPF it Top Bottom 1400 sxs MD Surf 120' Type 1gals/woo State TVD Surf 120' Free +0.6 %hwacC0.32 +1 gels/100 ax FP-6L +15% bwoc LW-51E, 1009 Carton + 2D% bwoc MPA -i +83.8 %Fresh Water -y1d 2.3,12,0 ppg Surface Cealna \� tOJ(4' L-60 doft gO bible and W surface , (oats hakl Top Bottom 31/2 y ZPF I L80 1 �� I Mex Inc 28 MD w 3,027' i degrees Pollard C81-9 /16/2011 )ntertnadiefe Casino r pple profife @ 047 ' 7.5/8' L -80 29,7 ppf Est Cement Top Top Bottom t @ 24850' MD MD 0' 8,330' Packer @ f55 t4548'TVD to injection 7TVMD) :78�'6130f O 12.6 ppf Hydril $21 Perorations 6435'- p Bottom a 6450' MD (6170- 11;00" a 6183'TVD) Perforations 6,950 II - -- Tubrm -6,960'(,4D(66 - l� ] Baker Flex Lok Liner Hanger i ' "e" Ld0 ppf 6543'TVD) wI ZXP Pkr and PBR TVD MD TOP Bottom top @ slow MD Dulled CIBP cmt pushed an �' Cast Iron bridge 11 an Cla=GCement +l0 %bwoc BA -90+ top of liner to plug w/25' .05% 6woc State Free +2,5% bwoc SA -58+ cement on top .5 %6waC EC- 1 +0.5 %bwoc CD- 32 +0.1 %bwoc Perforations set at 9, 750' MD -301 +1gala /1006x FP- 61 Na 9,790'- 9,815'MD �� s etaslerats +82%FW- yldl.a3,13.6ppg mckerw /sealbore/ ail: "X' Profile @ 10,045' 41 axs Class O Cement +0.05% bwac Static MO. "x "plug F,ee +0.3%ih ro R- 3+0.5 %bwoo EC- 1 +0.6% Pedorallom: 10,223' - woe FL83 r 0.3% bwac C0.32 a 1 peIN100 ax -10,246' MD Perforations- I 10,520'- 10,545' MO packerw /sealbore 30,700'MO Perforations - 10,920'- 10,945' 2 -7/8" tubing tail, 'X" nipple and 10' pup cut @ 10,730.5' MD. Dropped to TD bottom bottom 11,366'MD I I 'MD 71,000'TVD l I 'TVD I.'. axe Uass U [;amen(+ 0,06% lewoe State Free +1.2% bwoc BA-56+ 0.4% bWOC R•3 +3% bwow Potassium Chloride +0.5% bwoe EC-1 +0.4% bPmc CD-32+ 1 gate/100 ax FP-61. + D.2% bwoc Na Metxagioete +43.9% FW -1.18 vid. 16.8 one EmOrngelul F rmado Too* NP Web Name S Number. Kenai Loop 93 1 Lease: Kenai Loop County or Parlsh:1 Kenai Penisula Borough Slate: Alaska I Country: USA Pbr(nte0ona (MD): Perf (TVD Angle QKOP and Deptl1: Angle @ Perfs: KOP TV' Date Completed: RKB: 21' Prepared ey. Last Revision Date: Exhibit 17 - KL3 Disposal Well Bore Diagram TO: TBD DATE: DECEMBER 2, 2011 ALL- AMER/CANOILP /ELO BUCCANEER ALASKA FROM: STEVEHENNIGAN SUBJECT: KENAILOOP #3 OPERATIONS, LLC PETROLEUMENOINEERS, INC. Class II Conversion Procedure Objective: Re -enter and convert to Class it injection well. Comments: Directional hole S33 T6N R1 1W S.M. Well was drilled In Aug-September of 2011. Casing was run. Well was tested and a 10-407 completed. Present Status: Cast Iron Bridge Plug set @ 6400' MD w/ 25 ft of cement on top Reference Loa: BakerHuohes Final Composite September2011 Services: Rig /Service eqpmt TBD Wire line Unit Pollard Slick Line Pollard Wellhead/Tree GE -Vetco Transportatlon TBD Misc rentals (including pressure pumps, flow back tank, etc.) TBD Supervision All American Oilfield NOTE: All vendors are to have a current MSA In place. General Conversion Procedure Pre service work Procedure: 1. Review with all vendors and be sure logistics are predetermined. 2. Be sure permits are applied for and in place. 3. Tree and wellhead were installed in 2011. Review details. 4. Make sure all valves, gauges, etc, are installed and working properly. 5. Review and record all pressures 6. Prep for cased hole work. CONVERSION Procedure: Part I Notify regulatory agencies at least 24 hours prior to operations. All operations will comply with AOGCC regulations. 2. Move in and rig up well service or drilling rig. 3. Mobe to location, conduct pre job safety meeting, perform JSA's, begin RU of equipment and establish RKB. Adjust all elevations to RKB indicated on weilborc diaerams unless noted otherwise in the daily reports Note: KB on log is 21'_ 4. Insure all permits are in place. Perform prejob "spud" meeting. 5. Check all tubing and casing strings for pressure and record. 6. Conduct safety and operations meeting. 7. Based on excerpts from reports below, REMOVE wellcap and NU BOPe. Test per AOGCC to 5000 psi. 10/26/11 10/27/2011 N/ D BOP stack and clean pits Start to L/D Top drive - install well cap w/ Vetco Gray E� 2 .fie„ PU bit, bha w/ scraper & TIH. Bit should be capable of drilling a 7 5/8 EZ -SV Cast iron drillable bridge plug. Tag cement and circulate and condition fluid in hole. Test ca ing to 3800 nci (70% of Burst --4823 psi, original casing test was 3800 psi). 10. Once fluid weight and properties are stable, begin drilling cement making sure that all cuttings are circulated out of the hole. 11. When bridge plug is tagged circulate hole clean. Make sure fluid weight is at LEAST 8.7 ppg- 12. Drill bridge plug. (May not be able to drill and circulate pieces out, so pushdown to TOL at 8100'MD. Be careful when pushing thru existing perforations. Also be aware of fluid losses to the formation) 13. Circulate hole clean. POOH. 14. Pick up an AS1 -X retrievable packer on tubing. RU and run 3 %" 9.2 L80 tubing w/ an xn profile above packer. 9.z ceo I co nom i 2992^ �0�90 �osa9 zoraoo axa l 15. Space out and land tubing hanger setting packer @ =55001 . 16. RU slickline and RIH w/ N -Test tool. Set in profile and test tubing to 7000 4isizecording on a chart for 30 min. 17. Test casin kr to 3500 psi also recording on a chart for 30 min. 18. Pull test tool. y 19. RU to perform injectivity test on disposal zone. { (� Si - L � g NOTE: CONTINGENCY: If injection rates are too low, or injection pressures too high y reperf, add perfs, acidize or other as approved by the AOGCC. 20. Lay down landing jt. Set BPV- ND BOPe. NU tree. Pull BPV. Set TWC. Test tree. Pull TWC. 21. Demobe rig. Part II 22. RU Flowlines and test. 23. Install equipment and test. 24. Begin injection. --aS 5�zr IT Part III PRELIMINARY Injectlon Test Procedure: 1. Fill tank with mud or salt water. Make note of initial volumes. Record weight of fluid. 2. Tubing Volume is 3 '/2 @:L5500 ft = approx. 45 bbls. 3. Break down formation and Record Pressure. 4. Pump at rate of 0.5 bpm, for 3 minutes, LRecord Injection Pressure. 5. Shut down, record initial shut in pressure; wait 5 minutes or until stabilized whichever is Ionger (no more 30 minutes), monitoring and recording pressure bleed down, then record final pressure or stabilized pressure. 6. Inject at I bpm for 3 minutes, record injection pressure. 7. Shut down, record initial shut in pressure, wait 5 minutes or until stabilized whichever is longer (no more 30 minutes), monitoring and recording pressure bleed down, then record final pressure or stabilized pressure. 8. Pump at rate of 2.0 bpm, for 3 minutes, Record Injection Pressure, 9. Shut down, record initial shut in pressure; wait 5 minutes or until stabilized whichever is longer (no more 30 minutes), monitoring and recording pressure bleed down, then record final pressure or stabilized pressure. 10. Pump at rate of 3.0 bpm, for 3 minutes, Record Injection Pressure. 11. Shut down, record initial shut in pressure, wait 5 minutes or until stabilized whichever is longer (no more 30 minutes), monitoring and recording pressure bleed down, then record final pressure or stabilized pressure. 12. Pump at rate of 4 bpm for 3 minutes, Record Injection Pressure, 13. Shut down, record initial shut in pressure, wait 5 minutes or until stabilized whichever is longer (no more 30 minutes), monitoring and recording pressure bleed down, then record final pressure or stabilized pressure. 14. Pump at rate of 5 bpm for 3 minutes, Record Injection Pressure. F� I G aw GGGG I/ Note: Be sure to continuously record initial start-up pressure thin pressure stabilization, then instantaneous shut in pressure and bleed down until stabilized or no longer than 30 minutes. It is preferred to perform injection test with mud or gel water. If mud is used it is desirable to displace/flush three times tbg volume at 5 bpm to suspend well until cuttings arrive. 54 �sx. re STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF Buccaneer Alaska ) Docket Number: AEO -11 -01 Operations LLC for an Aquifer Exemption ) Aquifer Exemption Order No. 15 Order for the Kenai Loop Field in Townships ) 5 and 6 North, Range 11 West, Seward ) Sterling and Beluga Formations Meridian, in conformance with 20 AAC ) Kenai Loop Field 25.440. Kenai Peninsula Borough, Alaska October 22, 2012 IT APPEARING THAT: 1. By application received March 16, 2012, Buccaneer Alaska Operations LLC (Buccaneer), operator of the Kenai Loop field, requested an order from the Alaska Oil and Gas Conservation Commission ( AOGCC) exempting aquifers in the Sterling and Beluga Formations, within the Kenai Loop Field, Kenai Peninsula Borough, Alaska. 2. In accordance with 20 AAC 25.540, notice of opportunity for a public hearing was published in the Alaska Journal of Commerce on April 15, 2012. In addition, on April 10, 2012 the AOGCC published that notice of opportunity for public hearing on the State of Alaska Online Public Notices website, on the AOGCC's website, electronically transmitted the notice to all persons on the AOGCC's email distribution list, and mailed printed copies of the notice to all persons on the AOGCC's mailing distribution list. The tentatively scheduled hearing date was May 17, 2012, but the hearing was subsequently rescheduled to May 22, 2012. 3. The AOGCC has authority to issue an aquifer exemption. 20 AAC 25.440. 4. The AOGCC held the May 22, 2012 hearing despite not receiving any comments, protests or requests for a public hearing. Buccaneer provided testimony, and the hearing record was left open to allow Buccaneer to respond to questions from the AOGCC. 5. The AOGCC requested clarification of certain items on May 31, 2012. Buccaneer provided responses on June 5, 2012 and July 5, 2012. 6. The information submitted by Buccaneer and public well history records for the Kenai Loop #3 well arc the basis for this order. FINDINGS: 1. Operator: Buccaneer operates the Kenai Loop Field, which is located within the limits of the City of Kenai, Kenai Peninsula Borough, Alaska. 2. Extent of Proposed Aquifer Exemption area: The exemption area proposed in Buccaneer's Request for Freshwater Exemption lies within the Kenai Loop Field, and is described as: Aquifer Exemption Order 15 October 22, 2012 Page 2 of 4 TSN, RI 1 W, S4: NW' /4 NW %., NE' /4 NW' /4, NW' /4 NE' /4, Seward Meridian (SM); TSN, RI l W, S5: NE %4 NE/, SM; T6N, R1 1W, 528: SW %4 SW %, SE' /4 SW' /, SW' /4 SE' /e, SM; T6N, R11 W, S29: SEAS E' /4, SM; T6N, RI l W, S32: NE/, SE' /4, SM; and T6N, RI 1 W, 533: All, SM. 3. Affected Strata: Buccaneer's request for freshwater aquifer exemption is for those portions of the Sterling and Beluga Formations that are stratigraphically equivalent to the interval from 3980' to 7539' measured depth (MD) in well Kenai Loop #3. These measured depths are equivalent to 3961' and 7191' true vertical depth (TVD). 4. GeoloQV: The proposed exempted aquifers are Tertiary -aged, fluvial- derived reservoir and non- reservoir deposits assigned to the Kenai Group. This group is subdivided into (in descending order) the Sterling, Beluga, Tyonek, Hemlock, and West Foreland Formations. These formations account for most of the commercial oil and gas production in the Cook Inlet Basin. The proposed exempted aquifers lie in the lower portion of the Sterling Formation and the upper portion of the Beluga Formation between 3980' (3961' TVD) and 7539' MD (7191' TVD). Upper confinement for this proposed exempted interval consists of several laterally continuous tuffaceous claystone and siltstone layers and thin coal seams that lie between 3065' MD / TVD and 3980' MD (3961' TVD). Lower confinement will be provided by numerous, laterally continuous tuffaceous claystone, siltstone and shale layers that are common between 7539' MD (7191' TVD) and 8554' MD (8193' TVD). 5. Groundwater Hydrology: The State of Alaska has records for 22 shallow water wells within the proposed exemption area. The deepest of these was drilled 360' below ground surface by the City of Kenai near the airport. The other wells range in depth from 12' to 140' below ground surface, with most (75 %) being shallower than 60' below ground surface. Alaska's Division of Mining, Land and Water has location information for 15 of these shallow water wells.Z One well lies 700' from the proposed exempted interval in Kenai Loop #3.3 The other 14 wells are situated at least 1700' from the proposed exempted interval in Kenai Loop #3.4 6. Formation Water Salinity: Based on well log calculations, Buccaneer concludes that the total dissolved solids (TDS) concentration of formation waters within proposed exempted interval inside the proposed exemption area are greater than 3,000 mg/l. AOGCC verified ' All depth- related footages presented herein for the proposed exempted interval and the associated confining intervals refer to the Kenai Loop #3 well. r Sources: Mr. R. Ireland of the Division of Mining, Land and Water and the Alaska Department of Natural Resources' (DNR) Well Log Tracking System database, which is available on the Internet at httl)://dnratwmlwims02,dnr.state.ak.us/welts/ ' Sources: Division of Mining, Land and Water website at http:// www. navmaps .alaska.gov /AlaskaLandStatust and DNR Land Administration System Case File No. ADL 42528 4 Source: Division of Mining, Land and Water website cited above Aquifer Exemption Order 15 October 22, 2012 Page 3 of 4 Buccaneer's conclusion by calculating formation -water TDS concentrations within the proposed exempted interval using well log calculation techniques that are compatible with EPA Guidance Document "Survey of Methods to Determine Total Dissolved Solids Concentrations" (EPA LOE Contract No. 68 -03 -3416, Work Assignment No. 1 -0 -13, KEDA Project No. 30 -956, September 1988, Revised September 1989). A formation water sample obtained during testing of the Kenai Loop 43 well was analyzed onsite, and total chlorides in that sample measured about 6,000 mg/l. 7. Suitability of Sediments as Drinking Water Aquifers: Pursuant to 20 AAC 25.440 (a) (1), the subject aquifer exemption requested by Buccaneer is supported by the following: a. the Kenai Loop area encompasses plentiful surface and groundwater to a depth of about 360' below ground surface; b. aquifers within the proposed exempted interval are sufficiently deep that recovery of drinking water is economically impractical; and c. well log calculations supported by water sample analysis indicate that formation water TDS concentrations in the proposed exempted interval within the proposed exemption area are greater than 3,000 mg/l. CONCLUSIONS: 1. Those portions of freshwater aquifers occurring in the Sterling and Beluga Formations within the proposed exemption area do not currently serve as sources of drinking water. All known and foreseeable ground water consumption from the Kenai Loop vicinity is consistent with plentiful surface water and groundwater resources occurring above a depth of about 360' below ground surface. 2. Those portions of freshwater aquifers occurring in the proposed exempted interval within the proposed exemption area contain TDS concentrations greater than 3,000 mg/l, and they are situated at locations and depths that make recovery of these waters for drinking water purposes economically impractical. 3. The aquifers occurring in the proposed exempted interval within the proposed exemption area cannot reasonably be expected to serve as underground sources of drinking water. 4. The aquifers occurring in the proposed exempted interval within the proposed exemption area qualify as exempt freshwater aquifers under 20 AAC 25.440(a)(1)(A), 20 AAC 25.440 (a)(1)(B), and 20 AAC 25.440(a)(2). NOW, THEREFORE, IT IS ORDERED THAT aquifers occurring in the Sterling and Beluga Formations within the exemption area described below that are stratigraphically equivalent to the interval between the measured depths of 3980' to 7539' in well Kenai Loop #3 are exempt for the purposes of Class II waste disposal operations as provided by 20 AAC 25.440: T5N, RI 1 W, S4: NW' /4 NW' /4, NE %4 NW' /4, NW'/ NE' /,, Seward Meridian (SM); T5N, RI l W, S5: NE' /4 NE %4, SM; T6N, RI 1 W, S28: SW'/ SW' /4, SE'/ SW' /, SW %4 SE' /, SM;, Aquifer Exemption Order 15 October 22, 2012 Page 4 of 4 T6N, Rl 1 W, S29: SE% SE' /a, SM; T6N, RI l W, S32: NE' /., SE %4, SM; and T6N, R] 1 W, S33: All, SM. Note that this Order does not authorize the injection of any fluids or gas within the exemption area. Disposal Injection Order No. 38 governs injection operations within the exemption area. DONE at Anchorage, Alaska, and dated October 22, 2012. athy P oe ster Chair, Commissioner 4� — Daniel T. eamount, Jr, Commissioner As provided in AS 31.05.080(x), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. if the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in pan within 10 days after it is filed. Failure to au on it within 10 -days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration arc FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which ease the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be she FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. As provided in AS 31.05.080(6), "[t]he questions reviewed on appeal arc limited to the questions presented to the AOGCC by the application for reconsideration." In computing a period of time above, the date ofthe event or default after which the designated period begins to run Is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 Re: THE APPLICATION OF Buccaneer ) Disposal Injection Order No. 38 Alaska Operations, LLC for disposal ) of Class II oil field wastes by ) Sterling and Beluga Formations underground injection in the Sterling ) Kenai Loop # 3 Well and Beluga Formations in well Kenai ) Kenai Peninsula Borough, Alaska Loop # 3, Section 33, T6N, RI I W, ) S.M. (PTD 2110970) ) November 28, 2012 IT APPEARING THAT: 1. Buccaneer Alaska Operations, LLC (Buccaneer) requested that the Alaska Oil and Gas Conservation Commission ( AOGCC) issue an order authorizing underground disposal of Class II oil field waste fluids into well Kenai Loop 43. Buccaneer's Application for Disposal Injection Order was received by the AOGCC on March 16, 2012. 2. In accordance with 20 AAC 25.540, notice of opportunity for a public hearing was published in the Alaska Journal of Commerce on April 15, 2012. In addition, on April 10, 2012 the AOGCC published that notice of opportunity for public hearing on the State of Alaska Online Public Notices website, on the AOGCC's website, electronically transmitted the notice to all persons on the AOGCC's email distribution list, and mailed printed copies of the notice to all persons on the AOGCC's mailing distribution list. The tentatively scheduled hearing date was May 17, 2012, but the hearing was subsequently rescheduled to May 22, 2012. 3. The AOGCC has authority to issue a disposal injection order. 20 AAC 25.252. 4. The AOGCC held the May 22, 2012 hearing despite not receiving any comments, protests or requests for a public hearing. Buccaneer provided testimony, and the hearing record was left open to allow Buccaneer to respond to questions from the AOGCC. 5. The AOGCC requested clarification of certain items on May 31, 2012. Buccaneer responded on June 5, 2012 with clarifications. 6. The AOGCC requested additional clarification on June 26, 2012. Buccaneer responded on July 5, 2012 with clarifications. 7. The information submitted by Buccaneer and public well history records for Kenai Loop 43 are the basis for this order. Disposal Injection Order 38 Page 2 of 9 Kenai Loop 93 November 28, 2012 FINDINGS: 1. Location of Adiacent Wells (20 AAC 25.252(c)(1)) Kenai Loop #3 is a gas development well drilled in 2011 to a total depth of 11,368 feet measured depth (MD), which is equivalent to 11,001' true vertical depth (TVD).' The surface location is 3,394 leet from south line and 1,124 feet from west line of Section 33. Township 6N, Range 1 I W, Seward Meridian (S.M.). The bottom -hole location is 1.597 feet from the south line and 1,458 feet from the west line of Section 33, Township 6N, Range i I W, S.M. Kenai Loop #3 was the second well drilled to evaluate gas reserves within the Tyonek Formation of the Kenai Loop Field. The well did not find commercial quantities of natural gas, and it was suspended in accordance with AOGCC regulations in 2011. Nearby gas development well Kenai Loop Kenai Loop #1 was placed on regular production in December 2011. Kenai Loop #1 is the only well that penetrates the proposed injection zone within a 1<,- mile radius of Kenai Loop #3. 2. Notification of Operators/Surface Owners (20 AAC 25.252(c)(2) and 20 AAC 25.252(c)(3)) Buccaneer is the only operator within a '/, -mile radius of the proposed disposal well. Surface property owners within % -mile radius of Kenai Loop #3 are State of Alaska, Mental Health Trust, and Cook Inlet Region, Inc., and they were provided copies of the disposal injection order application for Kenai Loop #3. 3. Geological information on Disposal and Confining /.ones (20 AAC 25.252(c)(4) fhc proposed disposal injection operations will affect strata that are assigned to the Sterling Formation and the underlying Beluga Formation. Upper confinement for the proposed injection interval consists of numerous, laterally continuous tuffaceous claystone and siltstone layers and thin coal seams that lie within the Sterling Formation between 3,065' MD / TVD and 3,980' MD (3,961' TVD), a total true vertical thickness of 896'. Fracture- arrest and additional upper confinement will be provided by several laterally persistent, tuffaceous siltstone, claystone and thin coal layers that lie within the Beluga Formation between 5,453' and 5,720' MD (5,289' and 5,530' TVD), an interval that is 241 true vertical feet thick. Buccaneer's planned injection interval lies in the Beluga Formation between 5,721' and 7,025' MD (5,531' and 6,704' TVD), an interval that is 1,173 true vertical feet thick. Such a large interval is requested because, in this portion of the Cook Inlet Basin, Beluga Formation sediments were deposited by a network of small meandering and anastomosing rivers and streams that cut through a silt -and clay -rich alluvial plain. In this area, the Beluga Formation typically has a low net - sand -to- gross - thickness ratio and a low median permeability because of abundant diagenetic clay. The proposed injection interval contains several thin layers of fluvial sandstone. Laboratory measurements perforated on nine rotary sidewall cores from these layers yielded a median t Unless otherwise indicated, all depth- and thickness- related footages presented herein refer to the Kenai Loop #3 well. Disposal Injection Order 38 Kenai Loop #3 November 28, 2012 Page 3 of 9 porosity of 21% (range: 1.9% to 29.1 %) and a median permeability of 1 millidarcy (abbreviated as md; range: 0.001 and to 128 md). Buccaneer conducted two drill stem tests within the proposed injection interval. One test recovered formation water. The second test did not flow. Lower confinement and fracture arrest will be provided by laterally continuous layers of tuffaceous claystone, siltstone and thin coal seams that are common between 7.026' and 7,539' MD (6,705' and 7.191' TVD), an interval within the Beluga Formation that is 486 true vertical feet thick. Additional lower confinement for injected fluids will be provided by Beluga Formation tuffaceous siltstone, claystone and coal layers that lie between 7,539' and 8,554' MD (7,191' and 8,193' TVD), a total true vertical feet thickness of 1,002'. Maps provided by the operator do not display any faults within the confining intervals or the injection interval within the affected area. 4. Evaluation of Fluid Confinement (20 AAC 25.252(c)(9)) Buccaneer's application for a disposal injection order suggests Kenai Loop 4`3 could serve as a central Class II waste disposal injection facility supporting onshore and offshore oil and gas development activities in the Cook Inlet area. Disposal injection of drilling mud and slurried cuttings will require pressure sufficient to fracture the Beluga Formation. In support of fracture modeling, Buccaneer evaluated drilling and production wastes generated from the Cook Inlet area to determine a range of expected fluid densities. Buccaneer also evaluated rock properties from well data collected during the drilling of Kenai Loop wells #1 and 43. Buccaneer's fracture modeling effort addressed injected fluid densities, and rates and pressures for both expected and extreme injection conditions. Modeling predicts a radially - fractured zone of influence (i.e., waste plume area) - dependent on volume of injection and rock properties within the injection zone — that may extend as much as 1,600 feet laterally from the well and as much as 40 feet above and below the perforated interval. The only well penetrating this area — Kenai Loop 41 — has sufficient mechanical integrity to prevent the migration of fluids front the proposed injection zone. The potential 1,600 -foot lateral fracture extent renders a Y -mile area of review around Kenai Loop #3 too small for evaluating the worst -case scenario. Extending the area of review to mile radius around Kenai Loop #3 accommodates the worst case lateral fracture. but does not add any additional wells for evaluation. Future wells within %z -mile must be constructed to ensure they do not serve as a conduit for fluid migration from the disposal zone. 5. Aquifer Exemption (20 AAC 25.252(c)(I1)); Standard Laboratory Water Analysis of the Formation (20 AAC 25.252(c)(10)) Buccaneer applied for a Freshwater Aquifer Exemption (Aquifer Exemption Order No. 15, abbreviated as AEO 15) simultaneous to the application for this disposal injection order, received by the AOGCC on March 16, 2012. A standard laboratory analysis of Beluga Formation water is not available. However, a formation water sample was recovered during drill -stem testing within the planned disposal Disposal Injection Order 38 Kenai Loop 43 November 28. 2012 Page 4 of 9 interval. Onsite analysis of that water sample yielded a measurement of 6,000 mg /I chlorides.2 Based on well log calculations, Buccaneer concludes that the total dissolved solids (TDS) concentration of formation waters within proposed disposal interval is greater than 3,000 mg /I. Using similar methods, the AOGCC calculated TDS concentrations ranging from 6,500 to 8,500 mg /l for the proposed disposal interval and the associated confining intervals.3 6. Well Loas (20 AAC 25.252(e)(5)) Log data from Kenai Loop #3 are on file with the AOGCC. In their application, Buccaneer provided a type log that illustrates the proposed injection and confining zones. 7. Demonstration of Mechanical Integrity and Disposal Zone Isolation (20 AAC 25.252(c)(6)) Kenai Loop #3 is constructed as follows: 16 -inch conductor casing driven to 120 feet MD (120 feet TVD); 10 -3/4 -inch surface casing set at 3,027 feet MD (3,060 feet TVD); 7-5/8 - inch intermediate casing set at 8,330 feet MD (7,969 feet TVD); and 4.5 -inch liner installed from 8,100 feet MD to 11,362 feet MD (7,631 feet to 11,001 feet TVD). The well's plug - back depth is 6,375 feet MD (6,116 feet ,rVD). Buccaneer will perform a well workover to set tip Kenai Loop 43 for disposal injection. Work will include drilling out the uppermost abandonment plug to expose existing perforations in the Beluga Formation at 6,435 feet to 6,450 feet MD (6,170 feet to 6,183 feet TVD) and 6,950 feet to 6,960 ft MD (6,634 feet to 6,643 feet TVD). The injection completion will consist of 3.5 -inch tubing and a permanent packer installed at 5,500 feet MD (5,331 feet TVD). An alternate setting depth for the injection packer was approved by AOGCC (Sundry No. 312 -100; May 14, 2012) as part of reconfiguring the well for disposal injection. Buccaneer reports that the 7 -5/8 -inch casing is cemented from the casing shoe to 4,850 feet MD (4,548 feet TVD), providing an estimated 1,585 feet of annular cement above the upper most injection perforations. Cement bonding in the 7 -5/8 -inch casing section opposite the injection and confining layers was evaluated with a cement bond log. The reported cement top of 5,000 feet MD (3,925 feet TVD) was calculated from the volume of cement pumped and an assessment of the cement placement operation. Buccaneer commits to performing mechanical integrity tests of the tubing and tubing- casing annulus (including packer) as part of the workover operations before injection commences. Additional baseline assessments and subsequent evaluations will be necessary to confirm the well has the proper mechanical integrity for disposal injection as proposed. 8. Disposal Fluid Type Composition Source Volume and Compatibility with Disposal Zone (20 AAC 25.252(c)(7)) Buccaneer requests approval to dispose of drilling, production, completion, workover wastes, and other associated wastes that are intrinsically derived from primary field operations. The volume of wastes to be injected into Kenai Loop #3 could be as much as 1,135,000 barrels of ' Kenai Loop #1 Daily Drilling Report. October 25.201 L in AOGCC Well History File No. 211.097 (all inlbrmation from this well are currently field confidential; the scheduled public release date is November 25. 20131 3 AOGCC's calculation techniques are compatible with EPA Guidance Document "Survey of Methods to Determine Total Dissolved Solids Concentrations" (EPA LOE Contract No. 68 -03 -3416, Work Assignment No. 1 -0 -13. KEDA Project No. 30- 956, October 1988, Revised October 1989). Disposal Injection Order 38 Kenai Loop #3 November 28. 2012 Page 5 of 9 Class II wastes over the expected life of the well. Buccaneer expects daily injection volumes of 155 barrels with excursions up to approximately 1,000 barrels, rates up to 4 barrels per minute, and slurry densities up to 10.5 pounds per gallon. Fracture modeling evaluated several conservative slurry injection scenarios, including: a single 2,500 - barrel batch injected at 6 barrels per minute; and injecting 155 barrels per day at a rate of 3 barrels per minute for 5 years. Buccaneer states that injected slurry will not penetrate the upper or lower confining layers based on the slurry fracture modeling, nor will it intersect any well penetrating the injection zone. Injected fluids are expected to be compatible with the lithology and resident water of the injection zone based on operating experience and performance (e.g., pressures, rates, and volumes) of numerous disposal injection wells in surrounding fields that have the same receiving formation —the Beluga Formation —as proposed for Kenai Loop #3. There have been no reported compatibility issues associated with disposal injection into the Beluga Formation at other fields in the Cook Inlet area. 9. F,stimated Injection Pressures (20 AAC 25.252(c)(8)) Buccaneer estimates that the average surface injection pressure will be between 1,800 psig and 3,000 prig. The maximum surface injection pressure could reach 6,000 prig if sporadic plugging of perforations or fracture flow channels occurs. 10. Mechanical Condition of Wells Penetrating the Disposal Zone Within a V4-Mile Radius of Kcnai Loop #3 (20 AAC 25.252(c)(1�2 ) Kenai Loop #1 is the only well to penetrate the proposed disposal injection zone within V4- mile radius of Kenai Loop #3. Well construction records show that both the proposed injection well and producing well Kenai Loop #1 are cased and cemented to prevent the movement of injected fluids beyond the well's confinement zones. Records documenting the drilling, casing, cementing, and testing of these wells are in the AOGCC's files. CONCLUSIONS: 1. The 20 AAC 25.252 requirements for approval of an underground disposal application are met. Kenai Loop 43 was drilled as a gas exploration well, but it did not find commercial quantities of gas. 3. Buccaneer's planned injection interval in Kenai Loop #3 lies in the Beluga Formation between 5,721' (5,531' TVD) and 7,025' (6,704' TVD), an interval that is about 1,173 true vertical feet thick. This large interval is necessary because, in this portion of the Cook Inlet Basin, the Beluga Formation displays a low net - sand -to- gross- thickness ratio and low permeability. 4. Upper confinement will be provided by 896 true vertical feet of laterally continuous tuffaceous claystone and siltstone layers and thin coal seams within the Sterling Formation. Fracture - arrest and additional upper confinement will be provided by 241 true vertical feet of tuffaceous siltstone, claystone layers and thin coal seams within the underlying Beluga Formation. Disposal Injection Order 38 Kenai Loop 3 November 28, 2012 Page G of 9 5. Lower confinement and fracture arrest will be provided by 486 true vertical feet of laterally continuous layers of Beluga Formation tuffaceous claystone, siltstone and thin coal seams. Additional lower confinement will be provided by 1,002 true vertical feet of tuffaceous siltstone, claystone layers and thin coal seams. 6. No significant faults are present near area that will be affected by the proposed injection operations. 7. TDS content of formation water within the proposed injection and confining intervals is greater than 3,000 mg /I and less than 10,000 mg/l. AEO 15 (Corrected)— issued by the AOGCC on November 28, 2012 - -- exempts aquifers occurring in the Sterling and Beluga Formations that are stratigraphically equivalent to, and lie within a radius of z mile of, the interval from 3,980 to 7,539 feet MD in well Kenai Loop #3. 8. No compatibility concerns relating to the injected fluids and in -situ formation fluids have been identified in connection with the injection of a similar waste fluid streams into the Beluga Formation at other locations within the Cook Inlet Basin. 9. Fracture modeling indicates that disposed waste fluids will be contained within the receiving interval by confining lithologies, cement isolation of the well bore, and planned operating conditions. Modeling of the most extreme injection conditions predicts that fractures will not penetrate the upper confining zone, or breach the lower confining zone. Within the predicted fracture geometry for the most extreme injection conditions modeled, Kenai Loop 41 is the only penetration. Sufficient mechanical integrity has been demonstrated in Kenai Loop 41 to prevent the migration of fluids from the proposed injection zone. The adequacy of' mechanical integrity for new wells constructed within the worst -case predicted fracture geometry surrounding Kenai Loop 43 will be assessed in each welPs permit to drill to ensure injected fluids remain confined to the intended receiving interval. 10. Supplemental mechanical integrity demonstrations and the surveillance of injection operations— including baseline and subsequent temperature surveys, monitoring of injection performance (i.e., pressures and rates), and analyses of the data for indications of anomalous events —are appropriate to ensure that waste fluids remain within the disposal interval. 11. Actual performance information gained during drilling, injection and remedial well operations must be monitored during the life of the disposal project to ensure appropriate operation of the field. A requirement for formal review of the disposal injection performance every five years will ensure the findings, conclusions, and rules of this order remain valid. NOW, THEREFORE, IT IS ORDERED THAT disposal injection is authorized into the Beluga Formation within well Kenai Loop #3 subject to each of the following requirements: RULE 1: Injection Strata for Disposal The underground disposal of Class lI oil field waste fluids is permitted into the Beluga Formation within Kenai Loop 93 in the interval from 5.721 feet to 7,025 feet MD (5,531 feet to 6,704 feet TVD). The AOGCC may immediately suspend, revoke, or modify this authorization if injected fluids are not confined by the upper and lower confining zones. Disposal Injection Order 38 Kenai Loop #3 November 28, 2012 RULE 2: Authorized Fluids Page 7 of 9 'Phis authorization is limited to Class 11 oil field waste fluids generated during drilling, production, workover, or abandonment operations, specifically: Drilling fluids; drill cuttings; well workover fluids; stimulation fluids and solids: produced water; rig wash water: formation materials; naturally occurring radioactive materials; scale: tracer materials: glycol dehydration; reserve pit fluids; chemicals used in the well or for production processine at the surface (in direct contact with produced fluids); and precipitation accumulating in drilling and production impoundment areas. Administrative action under Rule 8 of this order is required prior to initiating commercial Class II disposal injection in Kenai Loop #3. RULE 3: Infection Rate and Pressure Injection pressures must be maintained such that the injected fluids do not fracture the confining intervals or migrate out of the approved injection stratum. Disposal injection is authorized at (a) rates that do not exceed 4 barrels per minute and (b) wellhead injection pressures that do not exceed 6,000 psig. RULE 4: Demonstration of Mechanical Integrity The mechanical integrity of Kenai Loop #3 must be demonstrated before injection begins and before returning the well to service following a workover affecting mechanical integrity. An AOGCC - witnessed mechanical integrity test must be performed after injection is commenced for the first time in Kenai Loop 43, to be scheduled when injection conditions (temperature, pressure, rate, etc.) have stabilized. Subsequent mechanical integrity tests must be performed at least once every two years after the date of the first AOGCC - witnessed test. Mechanical integrity tests must be conducted in accordance with AOGCC Industry Guidance Bulletin No. 10 -02, "Mechanical Integrity Testing" and done to a test pressure equal to the maximum anticipated surface injection pressure. The AOGCC must be notified at least 24 hours in advance of each such test to enable a representative to witness the test. The results of all mechanical integrity demonstrations and Buccaneer's interpretation of those results shall be provided to the AOGCC within seven (7) days of completing the test. RULE 5: Well Integrity Failure and Confinement Whenever any pressure communication, leakage or lack of injection zone isolation is indicated by injection rate, operating pressure observation, test, survey, log, or any other evidence, the Operator shall notify the AOGCC within 24 hours and submit a plan of corrective action on a Form 10 -403 for AOGCC approval. The Operator shall immediately shut in the well if continued operation would be unsafe or threaten contamination of freshwater, or if so directed by the AOGCC. A monthly report of daily tubing and casing annuli pressures and injection rates must be provided to the AOGCC for Kenai Loop 03 if the well indicates any well integrity failure or lack of injection zone isolation. Disposal Injection Order 38 Kenai Loop 43 November 28, 2012 RULE 6: Surveillance Page 8 of 9 The operator shall run a baseline temperature log and perform a baseline step -rate test prior to initial injection. A subsequent temperature log must be run one month after injection begins to delineate the receiving zone of the injected fluids. Surface pressures and rates must be monitored continuously during injection for any indications of anomalous conditions. Results of daily wellhead pressure observations in Kenai Loop #3 must be documented and available to the AOGCC upon request. The conduct of subsequent temperature surveys or other surveillance logging (e.g., water flow; acoustic) will be based on the results of the initial and follow -up temperature surveys and injection performance monitoring data. A report evaluating the performance of the disposal operation must be submitted to the AOGCC by April 1 of each year covering injection operations during the previous calendar year. The report shall include data sufficient to characterize the disposal operation, including, among other information, the following: injection and annuli pressures (i.e., daily average, maximum, and minimum pressures); fluid volumes injected (i.e., in disposal and clean fluid sweeps); injection rates: an assessment of the fracture geometry; a description of any anomalous injection results; and a calculated zone of influence for the injected fluids. An assessment of the applicability of the injection order findings, conclusions, and rules based on actual performance shalt be included with the amoral performance report. RULE 7: Notification of Improper Class 11 Infection Injection of fluids other than those listed in Rule 2 without prior authorization is considered improper Class If injection. Upon discovery of such an event, the operator must immediately notity the AOGCC, provide details of the operation, and propose actions to prevent recurrence. Additionally, notification requirements of any other State or Federal agency remain the operator's responsibility. If fluids are found to be fracturing through a confining interval or migrating out of the approved injection stratum, the Operator must immediately shut in well. Upon discovery of such an event, the operator must immediately notify the AOGCC, provide details of the operation, and propose actions to prevent recurrence. Injection may not be restarted unless approved by the AOGCC. RULE 8: Administrative Action Upon proper application, or its own motion, and unless notice and public hearing is otherwise required, the AOGCC may administratively waive the requirements of any rule stated herein or administratively amend this order as long as the change does not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in an increased risk of fluid movement into freshwater or outside of the authorized injection zone. RULE 9: Compliance Operations must be conducted in accordance with the requirements of this order, AS 31.05, and (unless specifically superseded by AOGCC order) 20 AAC 25. Noncompliance may result in the suspension, revocation, or modification of this authorization and other penalties. Disposal Injection Order 38 Kenai Loop 43 November 28, 2012 RULE 10: Reauthorization Page 9 of 9 The Operator must apply to reauthorize disposal injection at intervals not exceeding five (5) years from the effective date of this Order. The application shall include an assessment of the Order findings, conclusions, and rules taking into account actual injection performance. DONE at Anchorage, Alaska, and dated November 28, 2012. Cath P. Foerster Daniel T. Seamount, Jr. Cha r, Commissioner Commissioner As provided in AS 31.05.080(x), within 20 days after written notice of the entry of this order or decision, or such further time': AOGCC grants for good cause shown, a person affected by it may file with die AOGCC an application for reconsideration r matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration scl out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in pan within 10 days after it is filed. Failure to act on it within I0 -days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and die denial of reconsideration arc FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the dare on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration. UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the dale on which the application for reconsideration was filed. If the AOGCC grants an application far reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and itmay be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes. the order or decision on reconsideration. As provided in AS 31.05.080(6), "[ljhe questions reviewed on appeal are limited to the questions presented to the AOGCC by the application for reconsideration" In computing a period of time above, the dale of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 1' Nancy Carver From: Rick Koch Sent: Tuesday, October 22, 2013 4:25 PM To: Greg Davis Cc: Nancy Carver; Jeff Twait; Christine Cunningham; Bob Molloy; Brian G. Gabriel, Sr.; Mike Boyle (mboyle @alaska.com); Mayor Porter; Ryan Marquis; 'terry @bookeyforkenai.com'; Tim Navarre Subject: RE: South Ames Road Greg, The City is not looking to re -zone that area. Over the next year or two I would like to have the P & Z Commission and Administration meet with the property owners in the Angler /Ames area to discuss if a code section should be added that addresses the use of properties as lodge /guide operations. The property owners have been consistent in their views regarding re- zoning. We are looking for a process and probably an amendment to the land use tables that would allow what has become a common use through the conditional use process. Rick R. Koch City Manager City of Kenai 210 Fidalgo Ave. Kenai, AK 99611 (907)283 -8222 (907)398 -0190 - - - -- Original Message---- - From: Greg Davis [mailto:gdames785ogmail.comj Sent: Tuesday, October 22, 2013 2:35 PM To: Rick Koch Subject: South Ames Road Rick, Here's a copy of a note I sent to the Mayor and Council. Apparently I only call or send notes when I want something.... sorry Next time it will be about Hockey, Fishing, Hunting... swear I understand the City of Kenai is looking at Ames Road, as well as Angler Drive, to get rid of the rural residential (R -1) zoning in favor of another zoning designation that would allow greater commercial activity without the need for conditional use permits. We do not support such a change to our current R -1 zoning designation. We believe that Angler and South Ames are two very different neighborhood. South Ames has Nicks Iron Works (Nick has lived on that road for 65 years) and Drifters Landing. Both are is phasing out. Lets keep this area residential, we worked hard to get our road paved to make a nice neighborhood. We don't want it to become another Angler drive. Thanks Greg and Terry Davis 785 Ames Rd Kenai Alaska 99611 907 - 317 -3406 Greg Davis AGENDA 6TEN[ PAGE gregtery�a@gci.net i Nancy Carver From: Nancy Carver Sent: Tuesday, October 22, 2013 9:13 AM To: 'Mack Padgett' Cc: cpadgett @alaska.net Subject: RE: Ames Road Zoning Changes Mr. Padgett, what you saw was a memo from me to the Planning Commission outlining potential future work sessions that would make arnendments to Title 14 Planning & Zoning. The City has no intentions of rezoning Angier or Ames Rd. If the City were to make any changcs to anyone's property within the City of Kenai, the property owners would be notified by mail. I apologize for any confusion in regards to the memo. If you have any furtner questions please feel free to contact me. Thanks, Nancy KENAI, ALASKA \V Nancy J. Carver Acting City Planner City of Kenai 210 Fidalgo Avenue Kenai, AK 99611 907- 283 -8237 From: Mack Padgett [ma ilto:padgettCa)oci.Let] Sent: Monday, October 21, 2013 4:29 PM To: Nancy Carver Cc: cpadoett@aiaska.net Subject: Ames Road Zoning Changes Dear Ms. Carver, I just heard that a zoning change is being considered again for Angler and Ames Roads at the Oct 23 Planning and Zoning meeting. The Planning & Zoning Commission has tried this change on several occasions related to Angler with no success ... and now you are are including Ames Rd. in the planned changes. As a home owner on Ames Road, we have always been opposed to changes on Angler Drive since it would potentially impact Beaver Creek, which is the main reason that most of us live on Ames Road. It's beyond belief that Planning& Zoning continues to press this change when these changes have always met strong opposition. 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CL w L m O .tw O a T L �Y \D W L .• Pagel of 2 Jim Richardson From: Mayor [kenaimayor10 @msn.com] Sent: Wednesday, April 03, 2013 2:14 PM To: Jim Richardson Subject: Re: Kenai Comprehensive Plan - comments for April 3rd meeting Thank you for your comments. I plan to support this change! Pat Porter On Apr 3, 2013, at 11:44 AM, "Jim Richardson" <resecon(t_�),alaska.net> wrote: Attention: City Clerk Sandra Modigh. Please include my comments as a laydown for the April 3rd meeting. To: Mayor Porter and Kenai Assembly Members From: Jim Richardson Re: comments for your April 3rd meeting I sent in a letter with comments opposing the proposed 'mixed use' land use designation for Angler Drive on March 28th. You have heard a number of comments representing the majority of property owners opposing this designation, and also heard from myself and others about what this change would mean in terms of loss of habitat and water quality along the fragile Kenai River streambank at Angler Drive, as well as, loss of important estuarine wetlands. In response to resident's opposition, you removed a similar designation for Beaver Loop Road, and hopefully you will take the same action for Angler Drive. My comments today relate to Table 19 on page 81 of the draft plan, Objective 13. This objective states: "Review Future land use map annually to monitor changes in land use ", referring both to Beaver Loop Road and Angler Drive. The residents and landowners in these areas are clearly opposed to changes in the land use designation in their neighborhoods. It is extremely disruptive to these neighborhoods to be subject to an annual review, based on the opinion of the Planning Department. This is a long -term planning document. It is a given that the City of Kenai can react to long term changes. Placing this objective and strategy for annual review in the Comprehensive Plan questions the will of current residents and property owners. Furthermore, it is in direct opposition to Plan's stated goal to be responsible stewards of the Kenai River environment. Economic development requires consistency in land use policies. Put yourself in the position of a bank manager. Wouldn't knowing that there would may be an annual threat from a change of the land use make you cautions about approving a mortgage for a hopeful 5/19/2004 Page 2 of 2 property owner? Therefore, I ask you to remove Objective 13 from Table 19 and the Comprehensive Plan. Please review Goal 8 - "Vision, Kenai practices mindful stewardship of the natural resources and the environment to ensure they are protected and enhanced for their viability and values in perpetuit)/' (page 92). Also, please review Goal 6, Issue #6: "Protection of the Kenai River, wetlands, and environmentally sensitive areas". The type of future you outline in these words are not consistent with the proposed 'mixed - use' designation of Angler Drive. To live up to these words, you need to drop the proposed change and maintain the status quo for land use (rural residential) along Angler Drive and Beaver Loop for the long -term future. Thank you for the opportunity to comment. Jim Richardson 1015 Angler Drive 5/19/2004 Public Record Request Page 1 of Jim Richardson From: Ring, Katie [kring @borough.kenai.ak.us] Sent: Friday, April 12, 2013 4:47 PM To: resecon @alaska.net Subject: Public Record Request Attachments: Richardson, Jim Requested Info 040813.pdf; Katie Ring.vcf Mr. Richardson, Please find attached the information that you requested. This information has been provided by the Kenai Peninsula Borough Sales Tax Department. <<Richardson, Jim Requested Info 040813.pdf>> If you should have any questions, please do not hesitate to contact our office. Thank you and have a great weekend. Bw�ugl� dei�;5¢a¢ury i(mai Peninsula earough 141 W. BiOley Street Sold¢lna, Alaska 99669 (907) 71. 1.2164 ) rd (907) 714- 239Efm <<Katie Ring.vcf>> 5/19/2004 ANNUAL SALES TAX REVENUE FOR BUSINESSES WITH A PRESENCE ON ANGLER DRIVE FOR YEARS 2012 - 1997 Disclaimer: These figures represent businesses that have a reported business presence on Angler Drive in the City of Kenai. The information does not include those businesses that may conduct business on Angler Drive but have their business located at a different location and thereby report their business activity from that location. Number of Annual sum for all Year businesses reporting sales tax revenue 2012 14 $ 16,023.91 2011 15 $ 22,813.73 2010 18 $ 25,843.44 2DD9 18 $ 27,974.53 2008 18 $ 45,075.41 2007 16 $ 35,734.75 2006 12 $ 23,430.32 2005 11 $ 6,909.88 2004 11 $ 6,265.14 2003 11 $ 5,728.01 2002 11 $ 5,782.74 2001 13 $ 5,833.27 2000 12 $ 9,806.35 1999 8 $ 10,428.94 1998 8 $ 8,102.42 1997 8 $ 8,439.79 Disclaimer: These figures represent businesses that have a reported business presence on Angler Drive in the City of Kenai. The information does not include those businesses that may conduct business on Angler Drive but have their business located at a different location and thereby report their business activity from that location. To: City of Kenai, Planning and Zoning Commission From: Gary Liepitz, Retired ADF &G Habitat Biologist, 38410 Riverwood Drive Re: Draft Comprehensive Plan Review Comments I am a retired Alaska Department of Fish and Game Habitat Biologist with a home on the Kenai River in the Riverwood Homeowners Association Subdivision at river mile 14.5. I was the was the principal research biologist in charge of the Kenai River 309 Study conducted along the entire 67 miles of the Kenai River main stem in 1992 through 1993. This study resulted in the publication of the ADF &G Technical Report No. 94 -6 entitled "An Assessment of the Cumulative Impacts of Development and Human Uses on Fish Habitat in the Kenai River' in July 1994. I am writing to express my concern regarding the proposed land use designation change that would change the designation of Beaver Loop and Angler Drive from its current Rural Residential to a Multi -Use category. This change would result in a significant increase in commercial and high- density residential development in this area that could have significant adverse effects on the lower Kenai River and it's Beaver Creek tributary. This reach of the Kenai River was identified in the Kenai River 309 Study as important juvenile king and coho salmon rearing habitat and important estuary habitat for juvenile anadromous fish transitioning from fresh to saltwater during the smolt stage of their life cycle. Any land use designation that would produce the loss of critical riparian vegetation and runoff that would adversely affect the water quality of the Kenai River or one or more of it's tribuaries should not be allowed if we hope to protect and even improve the quality of the Kenai River's fish habitat and the recreational and commercial fish industries that it supports. As the 1994 report states, it is the cumulative effects which persist over time and collectively combine to produce compounded impacts, including additive or synergistic effects which can magnify adverse impacts on the receiving waters or critical riparian wetlands. The analysis of human impacts on the riparian habitat along the entire 67 mile length (approximately 166 miles of river shoreline) of the Kenai River's main stem indicated that, of a total of 121 acres of critical near bank juvenile salmon rearing habitat, only 91 acres (75 % ) of this total acreage remained as suitable fish rearing habitat. Of that 91 acres, only 11 acres (9.2 % of the entire river near bank habitat) provided ideal rearing habitat conditions. The Beaver Creek and Kenai River water frontage along Angler Drive showed some riparian habitat loss associated with limited commercial and residential water frontage development as a result of this study. Additional commercial and high density residential development in this area can only increase the adverse impacts on the riparian and shallow water habitat along this important reach of the Kenai River. Page 1 of2 My home is on the Kenai River just upstream from Eagle Rock in the Riverwood Subdivision. The members of the Riverwood Subdivision Homeowners Association have passed covenants and by -laws that are designed to preclude any expansion of commercial or high- density residential development within the subdivision to prevent adverse impacts on the Association's 1,500 feet of water frontage. We have also been installing bank stabilization measures to protect the river bank and promote fish rearing habitat and making use of seasonally installed river access stairways to avoid bank denuding and erosion caused by bank angler access. It is important that we all take the necessary steps to prevent continued land use practices and developmental actions that will incrementally damage and potentially destroy the Kenai Rivers natural beauty, it's important fish and wildlife resources and it's significant economic value to our communities. Thank you for your consideration of concerns regarding the Draft Comprehensive Plan. Page 2 oft