2015 10 27 Summer 2016 Project Description rev
Transcription
2015 10 27 Summer 2016 Project Description rev
Toghotthele No. 1 Exploration Well Project Description 2016 Summer Program October 2015, revision 2 Doyon, Limited 1 Doyon Place, Suite 300 Fairbanks, AK 99701 Prepared by: Owl Ridge Natural Resource Consultants, Inc. 6407 Brayton Drive, Suite 204 Anchorage, Alaska 99507 T: 907.344.3448 F: 907.344.3445 www.owlridgenrc.com - Page Intentionally Left Blank - Toghotthele No. 1 – Project Description Doyon, Limited TABLE OF CONTENTS 1. INTRODUCTION ................................................................................................................................ 1 2. LOCATION, OWNERSHIP AND LEASES ..................................................................................... 1 3. ACCESS ................................................................................................................................................ 1 3.1. Winter Construction Access......................................................................................................... 3 4. SCHEDULE .......................................................................................................................................... 3 5. LOCATION AND SITE DEVELOPMENT ...................................................................................... 3 5.1. Topographic Features................................................................................................................... 3 5.2. Nenana River ............................................................................................................................... 4 5.3. Barge Loading and Unloading Facilities ..................................................................................... 4 5.4. Staging and Parking Areas ........................................................................................................... 5 5.5. Access Road and Trails ................................................................................................................ 5 5.6. Water Supply ............................................................................................................................... 5 5.7. Pullouts and Temporary Turnarounds.......................................................................................... 9 5.8. Material Sites ............................................................................................................................... 9 5.9. Well Pad ....................................................................................................................................... 9 5.10. Housing ...................................................................................................................................... 11 6. CONSTRUCTION AND OPERATIONS DETAILS ...................................................................... 11 6.1. Nenana River Crossing .............................................................................................................. 11 6.2. Initial Construction and Clearing of the Road ........................................................................... 11 6.3. Brush Removal........................................................................................................................... 12 6.4. Stream Crossings and Wetlands ................................................................................................. 12 6.5. Equipment .................................................................................................................................. 12 6.6. Fuel Transfers ............................................................................................................................ 12 6.7. Fuel Storage ............................................................................................................................... 12 7. WASTE TYPES, SOURCES AND DISPOSAL METHODS ......................................................... 13 7.1. Waste Identification and Segregation ........................................................................................ 13 7.2. Solid Waste ................................................................................................................................ 13 7.3. Drill Protocol ............................................................................................................................. 13 7.3.1. Drill Fluids....................................................................................................................... 14 7.3.2. Produced Water and Construction Wastewater ............................................................... 15 7.3.3. Drilling Muds and Cuttings ............................................................................................. 15 7.4. Domestic Waste Water............................................................................................................... 15 8. CONTINGENCY PLANS.................................................................................................................. 15 8.1. Oil Spill Prevention and Response............................................................................................. 15 8.2. Wildlife Interaction Plan ............................................................................................................ 15 9. CONSTRUCTION PERSONNEL & COMMUNITY RELATIONS ............................................ 16 9.1. Employee Access ....................................................................................................................... 16 i October 2015, rev.2 Toghotthele No. 1 – Project Description Doyon, Limited 9.2. 9.3. Local Hire .................................................................................................................................. 16 Community Relations ................................................................................................................ 16 10. SITE CLOSURE, RESTORATION AND MONITORING ........................................................... 16 11. PERMIT REQUIREMENTS ............................................................................................................ 17 12. RESPONSIBLE PARTIES ................................................................................................................ 18 Tables Table 1: Well Locations and Ownership....................................................................................................... 1 Table 2: Water Sources and Volumes ........................................................................................................... 7 Table 3: Toghotthele No. 1 Summer 2016 - Water Utilization Requirements ............................................. 9 Table 4: Stored Fuels and Petroluem Fluids for Construction and Exploration Well Program .................. 13 Table 5: Hazardous Waste and Non-Hazardous Waste Management and Disposal ................................... 14 Table 6: Toghotthele No. 1 Well Permits and Approvals ........................................................................... 17 Table 7: Responsible Parties for the Development of the Toghotthele No. 1 Exploration Well ................ 18 Figures No table of figures entries found. Figure 1: Project Location & Land Ownership ............................................................................................. 2 Figure 2: Nenana River Crossing .................................................................................................................. 6 Figure 3: Project Features ............................................................................................................................. 8 Figure 4: Well Pad ...................................................................................................................................... 10 ii October 2015, rev.2 Toghotthele No. 1 – Project Description Doyon, Limited 1. INTRODUCTION Doyon, Limited (Doyon) intends to conduct an oil and gas exploration program in the Nenana Basin located approximately 6 mi. northwest of Nenana, Alaska. The project will include winter 2016 construction of approximately 2 miles of all season gravel road with drilling pad, drilling operations during the summer of 2016 to complete one well, and if sufficient time remains in the season to test the well or drill a delineation well from the same pad. Two locations have been selected for the well site and evaluation continues to determine the final location. Information for both well locations is included in this project description. Details of the project are provided in the following sections. 2. LOCATION, OWNERSHIP AND LEASES The project is located on a combination of public and private land. Drill site Toghotthele No. 1 is located on surface lands owned by Toghotthele Corporation (Toghotthele) and subsurface owned by Doyon. Drill site Toghotthele No. 1A is located on land with surface and subsurface owned by the State of Alaska. Both wells will initially target Doyon-owned subsurface and if the selected well is successful, a delineation well will be drilled into the State subsurface mineral estate (lease ADL392386). The well access road and two proposed material sites are located on State-owned land. Table 1 presents the well locations, ownership and lease information. A map of the project vicinity and land ownership is provided as Figure 1. TABLE 1: WELL LOCATIONS AND OWNERSHIP Well Toghotthele No. 1 Toghotthele No. 1A Latitude Longitude Surface Ownership Targeted Subsurface Ownership 64.60825N -149.3103 W Toghotthele Doyon 64.60282 N -149.2992 W State of Alaska Doyon Coordinates provided in NAD83 3. ACCESS Summer access to the project has four components as decribed below: 1. Parks Highway to the 10th Avenue boat launch on the Nenana River (~0.6 mi.). This is a public road that is maintained by the City of Nenana. 2. Barge transfer across the Nenana River (~500 ft.). 3. Totchaket Road (ADL 409501) (~6.5 mi.), a public easement issued in 1984 and held by the City of Nenana, was created by the State with the intent for access to agricultural lands. The City of Nenana 2012 ‘Use of the ROW’ specifically allows Doyon access and use for exploration activities adjacent to the ROW. Use by Doyon would include maintenance on the existing constructed road, including repair of the bridge over the Little Nenana River. 4. Proposed 2 mi. all season gravel road on State of Alaska, and potentially, Toghotthele land. This road would be constructed during the winter 2016. 1 October 2015, rev.2 Toghotthele No. 1 – Project Description Doyon, Limited FIGURE 1: PROJECT LOCATION & LAND OWNERSHIP 2 October 2015, rev.2 Toghotthele No. 1 – Project Description Doyon, Limited 3.1. Winter Construction Access Access for winter construction operations will begin in the City of Nenana and will include a winter ice bridge crossing of the Nenana River to access the Totchaket Road. An all season gravel road will be constructed from mile 6.5 of the Totchaket Road north to well site Toghotthele No. 1 or Toghotthele No. 1A. Road maintenance and bridge repairs along the Totchaket Road are needed and will be conducted in the winter 2016 construction season. 4. SCHEDULE The project will begin in November 2015 with the construction of a temporary ice bridge over the Nenana River and extend through August 2016 with the demobilization of equipment and material via barge. A summary of project activities is provided below. 2015 Dec Jan Feb March Winter Construction Ice Bridge April May June July Aug Sept Oct Summer Drilling Operations Road & Pad Construction Demob Camp / Rig Mobilization Drilling Operations Demob Nov 2016 5. LOCATION AND SITE DEVELOPMENT 5.1. Topographic Features The proposed project is located on an undeveloped area of predominantly well drained loamy soils and dune features that dominate the topography and soils. The elevation of potential well sites and surrounding area is approximately 420 ft. above mean sea level. Wetland areas and small lakes exist within the project area. Transportation routes and the well pads have been located on uplands. Wetlands exist around potential lake water sources, but access and use are limited to winter season with sufficient snow cover to minimize surface impacts. The project is located in an area that was burned by wildfire (2009) and is comprised of successive vegetation types typical for boreal forest areas. 3 October 2015, rev.2 Toghotthele No. 1 – Project Description Doyon, Limited 5.2. Nenana River The Nenana River is listed as a navigable water way by the U.S. Army Corps of Engineers (USACE) and Alaska Department of Natural Resources (ADNR). The river is approximately 500 ft. wide and has a stream gradient averaging 50 ft. per minute at the barging locations. The average depth is between 8 ft. to 12 ft. and the bottom is comprised of sand and gravel. Barging operations are dependent upon water flow. Based on existing data (USGS 2007) and a minimum flow of 11,000 cfs., the potential operational window with sufficient flow for barging is from May 13th to October 2nd, an operation window of 142 days. Peak flow occurs in July due to glacier-melt (Water and Environmental Research Center Annual Technical Report FY 2008). Historically, the Nenana River begins to freeze over during October and November and an ice bridge can be utilized. Ice on the river breaks up in late April or early May and is contingent on weather and conditions. 5.3. Barge Loading and Unloading Facilities Summer operation will require the transfer of all equipment, material, and personnel across the Nenana River via barge. Two shallow draft barges will be used to support these summer operations: a flexi float measuring 30 ft. by 75 ft. that drafts approximately 2.5 ft.; and a flexi float barge capable of operating in 4 ft. of water. Doyon anticipates using the same barge landing sites as were used in 2009 (Nunivak No. 1) and 2013 (Nunivak No. 2). However, the placement of the bridge pilings in the Nenana River in support of the unfinished bridge requires an alternate landing site on the west side of the Nenana River. Doyon is currently surveying and evaluating alternative landing sites and will submit applications once known. Figure 2 presents the landing site used previously, location of the bridge pilings, and alternative landing sites under consideration. Design of the barge landings will be similar to the method used in 2013 for Nunivak No. 2 exploration and will include the installation of a piling at each facility and a bulkhead at the western barging location. The bulkhead will be placed on the north side of the barge ramp and the piling will be placed approximately 40 ft. into the river from the barge ramp. Maintenance dredging will be necessary at both facilities to remove accumulated sediment and adjust for changes in water level. All in-water structures will be temporary and removed by October 15th. 4 October 2015, rev.2 Toghotthele No. 1 – Project Description Doyon, Limited 5.4. Staging and Parking Areas Winter construction will require the use of the 10th Avenue boat ramp in December to temporarily place material and equipment during construction of the ice bridge over the Nenana River. Construction workers will use the public parking at the boat ramp. The summer operations require the use of staging areas to transfer equipment from rolling stock to the barge and then back to rolling stock. Most transfers will be conducted directly without the need for staging areas. Similar to the 2013 project, some material will be temporarily staged at the south side parking area at the boat ramp and on private land immediately east of the boat ramp. Doyon is also proposing to utilize a previously used staging area where the Totchaket Road and Nunivak No. 1 well access road intersect. Doyon is evaluating alternate barge landing areas on the east and west side of the river, that would reduce or eliminate the need for any staging at the 10th Avenue boat ramp. 5.5. Access Road and Trails From the existing Totchaket Road, Doyon will construct approximately 2 miles of gravel road to the drill site. The road will be constructed and maintained throughout the drilling season to be used to transport personnel, equipment, supplies and backhauls of materials and wastes from the drilling and camp location. The proposed 2 mile access road to the well pad will not cross fish bearing streams. Culverts will be installed at regular intervals on the well site access road to maintain hydrological functions and allow for regular cross-drainage. An estimated total of 10 culverts may be installed. Access to permitted water sources will not require construction or other ground disturbing activities, all are accessible from the Totchaket Road. One new water source located south of Toghotthele No. 1 will be accessed by crew on foot if needed. A pullout will be constructed on the access road and a hose can be walked to Lake WM1503. If the lake is needed to support winter construction operations, a snow trail will be developed. Public access to the well site will be controlled during construction and drilling related operations as needed to maintain public and personnel safety. 5.6. Water Supply Water to support construction activities and drilling operations will be provided through withdrawal of permitted water sources. Existing water sources permitted to support Nunivak No. 2 will be used to meet quantity requirements. Potable water used for drinking and camp activities may be trucked to the camp from an approved drinking water source and supplemented with bottled water when needed. Doyon is also seeking a permit to drill a water well at the chosen drill location to supplement drilling and camp operations. Four new locations for water withdrawal were field-selected and are identified in Figure 3 and in Table 2. Figure 3 and Table 2 also include permitted sources that will be relied upon to meet project needs. Water sources WM1501, WM1502, and WM1504 were investigated for potential winter use and are not expected to be used for this summer project. 5 October 2015, rev.2 Toghotthele No. 1 – Project Description Doyon, Limited FIGURE 2: NENANA RIVER CROSSING 6 October 2015, rev.2 Toghotthele No. 1 – Project Description Doyon, Limited TABLE 2: WATER SOURCES AND VOLUMES ADNR Permit Number ADFG Permit Number 5,400,000 660,770 FH12-III-0295 Nenana River 3,510,000 139,100 Basket Lake 1,500,000 10,000 5-Mile Slough (Long Lake) 160,000 62,500 West Middle River 150,000 5,000 East Middle River 150,000 145,000 Little Nenana River WM1501 100,000 Requested volume: 163,903 Requested volume: 3,495,084 Requested volume: 1,543,048 Requested volume: 1,711,080 Requested volume: 5,000,000 50,000 A2012-184 TBD TBD TBD Previously Used (Gallons) Nunivak No. 2 Water Well FH12-III-0285 TBD Annual Permitted Volume (Gallons) N/A A2012-185 TBD Water Source FH15-III-0215 FH15-III-0215 FH15-III-0215 FH15-III-0215 N/A WM1502 WM1503 WM1505 Toghotthele No. 1 Water Well 7 N/A N/A N/A N/A N/A October 2015, rev.2 Toghotthele No. 1 – Project Description Doyon, Limited FIGURE 3: PROJECT FEATURES 8 October 2015, rev.2 Toghotthele No. 1 – Project Description Doyon, Limited The following table provides estimates for water usage for rig and camp operations, mobilization and demobilization and a proposed schedule for water withdrawals for each purpose. TABLE 3: TOGHOTTHELE NO. 1 SUMMER 2016 – ESTIMATED WATER UTILIZATION Project Phase and Operation Start Date End Date Duration (Days) Water Usage Rate (Gallons/Day) Volume Requirement (Gallons) Nenana Winter Crossing, Access Road and Pad Construction 1/1/16 4/15/2016 120 23,000 2,760,000 Camp Operations 5/1/16 9/1/16 70 20,000 1,400,000 Rig Operations 1/15/16 4/15/16 60 32,000 1,920,000 Demobilization: Rig / Camp & Service Equip. 8/30/16 9/30/16 18 5,000 90,000 80,000 6,170,000 Total: Water Requirements 5.7. Pullouts and Temporary Turnarounds The existing Totchaket Road has numerous pullouts and turn-arounds that will be utilized without the need to construct additional pullouts. Pullouts will be constructed approximatly every 0.25 mile on the new well site access road for safety and convenience. One pullout will be available for use for water withdrawals from lake WM1503. They will be constructed on upland locations that provide a convenient line of sight for traffic. 5.8. Material Sites Material will be provided by up to three sites: the existing Doyon-owned rock quarry at Parks Highway milepost 415.54 and two new material sites tenatively designated MS04 and MS05 on State lands near the Totchaket Road as shown on Figure 3. 5.9. Well Pad The well pad dimension is currently expected to be approximately 500 ft. x 500 ft. and will require a 100 ft. buffer on all sides (50 ft. clearing buffer for a firebreak and an additional 50 ft. on all sides for organics and overburden storage). Figure 4 demonstrates the general well pad layout with locations of camp, drill rig, pipe storage, shop, generator, water modules, fuel and hazardous material storage (products), waste storage, spill response equipment and the location of a domestic wastewater installation (leach field). 9 October 2015, rev.2 Toghotthele No. 1 – Project Description Doyon, Limited FIGURE 4: WELL PAD 10 October 2015 rev.2 Toghotthele No. 1 – Project Description Doyon, Limited 5.10. Housing Winter road and well pad construction crews will use local lodging and will commute daily for construction. For drilling activities, support personnel will be housed in an 80 man temporary camp located at the well pad. The camp will have additional beds available and a capacity of 80-95 people. The barge captain will live in a camper parked at the boat landing and the small number of staffing required during summer operations for the barge and transfer will be housed in existing facilities in the City of Nenana. 6. CONSTRUCTION AND OPERATIONS DETAILS 6.1. Nenana River Crossing Winter construction will begin with the construction of an ice bridge crossing the Nenana River. Ice bridge construction will begin when the ice is thick enough to support construction vehicles. The 10th Avenue barge landing spans the Nenana River approximately 500 ft. to the Totchaket Road barge landing on the west side of the river. The Nenana River crossing may use both ice and steel components to support the large planned loads. The river ice will be thickened, and clean snow and ice ramps will be constructed adjacent to the deep portion of the main channel. Water will be pumped from the Nenana River at this location for a variety of uses: to augment natural ice thicknesses and to assist with ice ramp creation and maintenance. If used, the support structure will be removed from the river by ice out in spring when barge operations resume. This bridge is currently approved by ADNR and no additional approval is needed. Summer crossing of the Nenana will require barging operations when the ice bridge is no longer available. Based on previous years of use, barging operations can begin in late May or early June and continue through September. The barging facilities used for crossing the Nenana River were previously permitted by USACE and ADNR; however, these locations may change due to bridge pilings that were installed near the west bank of the Nenana River. Options considered include: move the barging facility downriver and conduct dredging to deepen the landing area; move the barging facility upstream onto private land and relocate the barge loading facility on the east side of the river further upstream; remove the pilings placed for bridge support and continue use of the existing barge landing location; or utilize the proposed bridge should the City of Nenana complete construction. 6.2. Initial Construction and Clearing of the Road Construction will begin with the start of the 16 ft. wide, 2 mile access road originating from the Totchaket Road near milepost 6.5. Preperation of the road subbase will primarily consist of the removal of vegetation and organic duff. Road base will consist of locally-sourced clean sand from MS04 and MS05 overlain on native soils. Surfacing will consist of graded and compacted quarry rock. The access road is generally flat requiring minimal cuts or fills. 11 October 2015, rev.2 Toghotthele No. 1 – Project Description Doyon, Limited 6.3. Brush Removal The route is sited primarily through post-burnt forest made of second succession alder with mixed brush. Most of the access route lies within a previously burned area from wildfire and few live standing trees exist. Survey crews will stake an 80 foot vegetation clearing limit for the access road. Only vegetation that is an impediment to the operation of equipment and construction will be cleared. Some hand brushing will occur during summer 2015 for survey activities as allowed under a Generally Allowed Use of State Lands. It is unlikely that live trees greater than 6 inches in diameter will be encountered. Felled trees will be moved to the edge of the clearing limits, and/or removed and disposed of in a manner that does not create a fire hazard. Brushy material may be crushed or mulched and used for restoration activities. 6.4. Stream Crossings and Wetlands The existing 6.44 mile of road, Totchaket Road, crosses three bodies of water including: the Little Nenana River, the East Middle River, and the West Middle River. Bridges have been previously constructed over these water sources and no additional bridges are planned; however, bridge maintenance will be conducted as needed on the existing bridges. The bridge over the Little Nenana River requires repairs prior to any heavy loads of construction equipment or material. Repair of this bridge will be conducted in the winter and may require some instream equipment to complete the repair. The proposed access easement will not cross any water body or wetland area. Lake WM1503 is 0.23 mile from the proposed access road and if water is needed from this lake during summer, personnel would extend a hose from the road to the lake and would need to conduct hand brushing of vegetation. 6.5. Equipment Equipment is expected to be regularly transported along, or used in, construction and maintenance of the gravel road from January 1, 2016 through September 30, 2016. 6.6. Fuel Transfers Fuel transfers will take place using highway-legal commercial tanker trucks. Construction equipment will only use diesel fuel. In an effort to eliminate fuel spills, fueling will only occur within lined containment. Fueling will be conducted using established fuel transfer procedures, including placing secondary containment beneath fueling ports and using drip pans for small fuel transfers when the potential for a spill is less than 1 gallon. Fueling of equipment and fuel transfers will be performed by designated and trained personnel in accordance with Best Management Practices (BMPs) and the Spill Prevention Control and Countermeasure (SPCC). Spill response kits will be placed in all vehicles and equipment travelling along the access road and spill clean-up drums will be placed at all fuel storage sites. 6.7. Fuel Storage Drilling operations for the exploration well, camp and construction activities will require the temporary storage of fuels, petroleum by-products and other materials at the drill pad location. Stored fuels will be in double walled tanks placed within a lined and diked area that can hold 110% of stored volume. Fuel storage will be located outside of traffic areas and all containers will be blocked off by barriers or traffic cones to 12 October 2015, rev.2 Toghotthele No. 1 – Project Description Doyon, Limited provide an additional measure to prevent vehicle intrusion in the area. Fuel storage containers will be labeled clearly and stored within secondary containment. All construction and fuel contractors will have training for fuel handling and will be updated on prevention procedures as demonstrated in the SPCC and Oil Discharge Prevention and Contingency Plan (ODPCP) for refueling procedures. All commercial sources used during fueling will have and follow written transfer procedures. No fuel will be stored along the access road. TABLE 4: STORED FUELS AND PETROLEUM FLUIDS FOR CONSTRUCTION AND EXPLORATION WELL PROGRAM Substance Diesel Fuel Oils, Greases etc. required for drilling rig maintenance Gasoline and Diesel Fuel Volume 39,600 gallons varies <10,000 gallons Storage Container Four 9,900 gallon double walled tanks Stored in the manufacturer designated containers within a lined Connex box Fuel bladders and fuel trucks 7. WASTE TYPES, SOURCES AND DISPOSAL METHODS All contractors on the project will be required to use waste minimization, recycling and disposal practices. Environment friendly products would be used to reduce waste. Waste management activities will be recorded with proper manifestation for transport and offsite disposal, as described in the following sections. Management includes keeping the appropriate State agencies informed on waste transport and off-site disposal. 7.1. Waste Identification and Segregation All general hazardous and non-hazardous solid wastes will be classified, segregated, and labeled as general refuse, and will be stored for transport to an appropriate disposal facility as noted in Table 5. 7.2. Solid Waste Solid wastes will be temporarily stored in 30-yard closed top containers on the drill pad prior to disposal. Any food wastes that could attract wildlife will be stored in enclosed containers and hauled as needed to the Denali Borough Landfill. Household and approved industrial garbage will be hauled to the Denali Borough Landfill. Recycling and reuse opportunities will be utilized if available. A waste incinerator will be on site and will be used when appropriate. 7.3. Drill Protocol Doyon and its contractors will direct and maintain downhole mud properties and volumes, and will maintain the quantities of basic mud material on site. Chemical testing will characterize the wastes in order to determine their final and appropriate disposition. Depending on characterization, drilling solids will be disposed of at the Denali Borough Landfill or Organic Incinerator Technology, Inc. in North Pole, Alaska (OIT) for incineration. 13 October 2015, rev.2 Toghotthele No. 1 – Project Description Doyon, Limited TABLE 5: HAZARDOUS WASTE AND NON-HAZARDOUS WASTE MANAGEMENT AND DISPOSAL Type Hazardous Wastes Batteries Source Activity Handling Management Notes Construction, Drilling and Production Separate and place in designated hazardous waste containers Methanol (freeze protect) Construction and Production Store in lined containment during construction, Store in 500-gallon AST on drill pad during production Manage batteries through the Denali Borough Landfill hazardous waste program Recover fluids for freeze protection or other approved reuse Non-Hazardous Wastes Metal Construction, Drilling and Production 7.3.1. Segregate, package, crush, and palletize Combustibles (paper, cardboard, wood) Oily Waste Rags, Spill Absorbent Pads Litter Construction, Drilling and Production Reduce volume by compacting Construction, Drilling and Production Separate and store in designated containers for transport to OIT Containerize (in sealed boxes or plastic garbage bags) Propylene glycol Production Construction, Drilling and Production Store in 50-gallon drums within secondary containment Transport away from site for beneficial reuse (preferred) or disposal in Denali Borough Landfill Package and transport to Denali Borough Landfill Incinerator bottom ash will remain with OIT for proper disposal Collect litter, household garbage on an as-needed basis to maintain the site in an orderly condition. Transport offsite for disposal at the Denali Borough Landfill Recycle for reuse, Class II disposal if nonhazardous, Hazardous waste – approved facility Drill Fluids Drilling fluids are exempt from Resource Conservation and Recovery Act (RCRA); exploration fluids will consist of residual drilling muds, formational waters, and completion brines. Drilling Fluids will be temporarily stored at the drill pad in 400 bbl. metal tanks until reuse or disposal via annular injection. An estimated 20 tanks will be placed within a secondary containment area. The secondary containment area will be constructed using an impermeable liner over a non-woven geotextile fabric to prevent punctures from underlying gravel. The sides of the secondary containment area will be constructed using 10 in. by 10 in. timber placed beneath the edge of the liner. The containment area will be approximately 50 ft. by 150 ft. 14 October 2015, rev.2 Toghotthele No. 1 – Project Description Doyon, Limited 7.3.2. Produced Water and Construction Wastewater Produced waste water will be temporarily stored in a prefabricated 400 barrel produced water storage tank that will be located at the well site. Stored produced waste water will be disposed of by annular injection at the end of the project. 7.3.3. Drilling Muds and Cuttings During the drilling operations, drilling mud and drill cuttings will be circulated to the surface and solids will be temporarily stored in an approved facility on the well pad. Drill cuttings will be temporarily stored in two 100 bbl. open topped metal tanks within a 60 ft. by 100 ft. secondary containment constructed the same as the afore mentioned secondary containment for drilling fluids. Materials will be hauled off-site as one tank fills up. Upon removal from the drill pad, cuttings will be analyzed for hydrocarbon content. Cuttings that test positive for hydrocarbons will be sent to OIT for disposal. Any other cuttings produced will be hauled to the Denali Borough Landfill in Healy, Alaska for disposal. 7.3.4. Excess Cement Excess cement will be generated after each casing string is placed; the estimated total volume generated during the entire program is about 200 bbl. Excess cement will be placed in a lined pit constructed on the pad. The pit will have geotextile fabric padding beneath the liner material. Plywood or timbers will be placed on top of the liner to protect it from tearing during the removal process. Excess cement will then be placed in the pit and allowed to solidify. Once solidified, the cement will be broken up, placed in trucks and hauled to Denali Borough Landfill for disposal. 7.4. Domestic Waste Water An approximately 90 ft. by 300 ft. septic system and leach field may be developed at the well pad site within the 100 ft. buffer if site conditions allow. If permafrost is not deep enough then all domestic waste, both gray and black water, will be transported for disposal into an approved domestic waste treatment and disposal facility. The City of Nenana will be the receiving location for domestic wastewater treatment and disposal. If a leach field is possible, an application will be submitted to the Alaska Department of Environmental Conservation (ADEC) for review. 8. CONTINGENCY PLANS 8.1. Oil Spill Prevention and Response An ODPCP is approved and will be amended for the Toghotthele No. 1 well and will be made available to all personnel. Anyone with oil spill response and prevention responsibilities will have training before drilling operations begin or petroleum products are transferred and stored on-site. The appropriate oil spill response equipment will be on hand to control and respond to an accidental release immediately. 8.2. Wildlife Interaction Plan Wildlife that could be in the area during construction and drilling includes moose, caribou, owls, ravens, swans and bears. Summer operations are scheduled to minimize impacts on migratory birds. 15 October 2015, rev.2 Toghotthele No. 1 – Project Description Doyon, Limited Doyon has developed a Wildlife Interaction Plan that includes policies and procedures to minimize humanwildlife interaction. Project personnel will be instructed not to feed wildlife of any type or in any other way attempt to attract them either at the drill site or on the access road. Food will be kept inside buildings or containers that minimize odors. 9. CONSTRUCTION PERSONNEL & COMMUNITY RELATIONS 9.1. Employee Access Crews will be flown from Anchorage to the City of Nenana Municipal Airport one to two times per week. All personnel and equipment transfers to the work site will occur by vehicle using the Totchaket Road and the 2 mile access road. Aircraft will be used as needed for emergency situations or unexpected travel needs. 9.2. Local Hire Doyon intends to give fair opportunity for contracts to qualified contractors and will hire from within a qualified employee pool, with preference given to local contractors; shareholders of Doyon, Toghotthele, and Seth-De-Ya-Ah Corporation, the village corporation for the nearby community of Minto, Alaska; and to Alaska Natives. 9.3. Community Relations Regulatory public notices will give the public an opportunity to comment on permitted activities and a community meeting will be held in the City of Nenana before operations begin. Additional information regarding updates, changes, or modifications to the project will be provided in a timely manner through informational mailings and Doyon’s website (www.doyon.com). A phone number will be made available for the public to provide comments and questions during operations. Interested stakeholders and parties of interest will be identified through this process and project updates will be provided that notify interested parties of project activities. 10. SITE CLOSURE, RESTORATION AND MONITORING The closure and reclamation plans for the facilities constructed in association with the project are dependent upon the testing results and economic viability of the Toghotthele No. 1 well. Should results obtained from the testing of the well indicate that the well is viable for economic profitability, the appropriate regulatory permit submissions for development and operations will be completed. If results of well testing deem otherwise, then site closure plan and reclamation will be conducted. The exploration well would be plugged in accordance with the guidelines set by 20 AAC 25.112 and abandoned. The Division of Agriculture has expressed written interest in leaving the well access road, well pad, water well and leach/septic system in place for future agricultural sales in the area. Should this interest continue, site reclamation would consist of removing all equipment and trash and transferring all other aspects of the project to the State. 16 October 2015, rev.2 Toghotthele No. 1 – Project Description Doyon, Limited If the Division of Agriculture rescinds its request for the project components to be left in place but Toghotthele requests that the access road be left in place for continued access to Toghotthele lands for private use (agriculture, recreation and other development purposes), then an easement application will be submitted for permanent use. Once drilling related activities are complete and drilling equipment and the camp are demobilized, a final inspection will be conducted to make sure no equipment or trash has been left in the field. If there is no interest in the permanent retention of the road, well pad, water well and leach/septic system, then the project area will be reclaimed to the standards set by the Division of Mining, Land and Water. 11.PERMIT REQUIREMENTS The project will require numerous federal, State, and local permits, plans and approvals from the various entities. Table 6 identifies some of the permits that are likely needed for this project. This list is not final and will be amended as project components are determined. TABLE 6: TOGHOTTHELE NO. 1 WELL PERMITS AND APPROVALS Agency Permit/Authorization USACE 404/Section 10 ADNR- Division of Mining, Land and Water ADNR- State Historic Preservation Office (SHPO) ADEC- Division of Spill Prevention and Response ADEC- Division of Air Quality ADEC- Division of Environmental Health ADEC- Division of Water ADF&G- Division of Habitat Alaska Department of Administration, Alaska Oil & Gas Conservation Commission (AOGCC) U.S. Environmental Protection Agency (USEPA)- Division of Regulation and Policy Development Toghotthele Corporation Barge landing facility (permit expired January 31, 2015) Wetlands - Preliminary Jurisdictional Determination (PJD) Land Use Permit DNR Land Use Permit ADL#28769 for winter crossing of Nenana River Barge Landing Land Use Permit (potential) Temporary Water Use Permits (TWUP) (new and revised) Material Sale Contract(s) Section 106 Historic Preservation Authorizations Oil Discharge Prevention and Contingency Plan (ODPCP) amendment Minor General Permit 1 (MG1) for Drill Rig (Arctic Fox) Temporary Storage of Drilling Waste Plan Domestic Wastewater Approval to Construct and Approval to Operate Title 16 Fish Habitat Permits - (new and revised) for inwater work and water withdrawal Public Safety Permit modification Permit to Drill, Sundry Notice, Annular Injection, Spacing Exception Spill Prevention, Control, and Countermeasure (SPCC) Plans Surface Use Agreement(s) 17 October 2015, rev.2 Toghotthele No. 1 – Project Description Doyon, Limited Agency Permit/Authorization City of Nenana Letter of Non-Objection for use of Right-or-Way and Leases for staging areas 12.RESPONSIBLE PARTIES TABLE 7: RESPONSIBLE PARTIES FOR THE DEVELOPMENT OF THE TOGHOTTHELE NO. 1 EXPLORATION WELL Name James Mery Glenn Ruckhaus Company Doyon, Limited 1 Doyon Place, Suite 300 Fairbanks, Alaska 99701-2941 Owl Ridge Natural Resource Consultants 6407 Brayton Drive, Suite 204 Anchorage, Alaska 99507 18 Responsibility Contact Lease Holder/ Operator Phone:(907) 459-2000 Email: meryj@doyon.com Permitting Phone: (907)830-7756 Email: gruckhaus@owlridgenrc.com October 2015, rev.2 - Page Intentionally Left Blank -