MWSS Weekly Order 1067 UpdateChevron

4/8/2015

Out of Reservoir Tilt Events in MWSS 21S O-1067 area from 4/1/2015 to 4/8/2015

Well symbol at TD2013 air photo

Tilt event

Activity Summary

Offset Operator (TRC):• 1 Out of Reservoir Tilt Event in

TRC Lease within 800’ of the expression started on April 1st (event # 04 01A) and lasted 2 days. Pinnacle report in next slide (showing steam injection into well Kelly 22)

• Event occurred North-East to the well 20 Sump and the lease line. An uplift energy in the area was observed.

Chevron:• No Out of Reservoir Tilt Events in

Chevron Lease within 800’ of the expression.

• Chevron is not steaming within 800’ of the expression at this time.

Event # 04 01A

Event # 04/01A (Out of Reservoir)

Uplift and an Out of Reservoir Event observed on April 1st (on TRC)

April 1st (Field Surface Deformation 12hr map)

Out of Reservoir Tilt Events in MWSS 21S EO1016 area Pinnacle’s report on Event # 04 01A

Well 20 Sump Volumes(1/1/2014 – 4/8/2015)

4/1/15– 4/8/15

Date

15 day Avg.

Volume pulled (bbls)

Daily Volume pulled (bbls)

4/1/2015 217 181

4/2/2015 212 147

4/3/2015 209 139

4/4/2015 205 119

4/5/2015 200 101

4/6/2015 194 89

4/7/2015 197 156

4/8/2015 201 122

Start/End of Phase 3 testStart of Chevron Test outside EO1016 (validation of April 13 Well 20 Flow Event)End of Chevron Test outside EO1016 (validation of April 13 Well 20 Flow Event)

Phase 3 Testing rescinded, 200' limited injection zone set and request for a geotechnical study

Uplift observed on March 2nd on NE side of the lease line and a subsequent Out of Reservoir Event on March 4th (TRC), similar situation occurred on April 2nd (TRC)

Well 20 Sump(4/8/2015)

Visual Observations: No new seep locations outside the sump.

Chevron MWSS 21S Property Line and Well 20 Sump 21S Restricted Entry Area Do not enter red outlined area without approved safety plan

N

Outline of restricted area

22S TRC

21S CVX

Photo 2 March 2015

Red outlined area should not be entered without approval of the Chevron 21S Diatomite OS. Site specific safe work plans must be developed and approved prior to entry.

Well 20 Sump Expression Area

21S Property Line (dashed line) & Unstable Bank Area

Due to the instability of the embankment between CVX and TRC properties, Chevron has extended the Do Not Enter Area (“21S Restricted Area”) to include the area from the embankment to the flow lines that run west of Chevron wells H225 and 204R. The K-rails no longer define the Do Not Enter Area and will be removed.

This area is outlined in red on the aerial photo.

Chevron requests that no one enters the red outlined area without contacting the Chevron Operations Supervisor and developing a written safe work plan prior to entry. The Chevron Supervisor can be contacted at 661-768-8032.

Chevron will work with the DOGGR to safely obtain photos or other data in this area if access to this area is required.