STATE OF FLORIDA
STATE BOARD OF CONSERVATION
DIVISION OF GEOLOGY
FLORIDA GEOLOGICAL SURVEY
Robert 0. Vernon, Director
INFORMATION CIRCULAR NO. 45
SUMMARY OF FLORIDA PETROLEUM PRODUCTION AND EXPLORATION
IN 1963
By
Clarence Babcock
TALLAHASSEE
1964
r)o,
AGRi
CULTURAL
LIBRARY
Completed manuscript received
April 30, 1964
Printed by the Florida Geological Survey
Tallahassee
Hi
ACKNOWLEDGMENTS
Thanks are extended to Robert 0. Vernon and the staff of the Florida Geological Survey for valuable suggestions which greatly improved this re port.
Discussions with Milton Hruby, District Geologist with the Mobil Oil Company and Bob Martin, Geologist with the Gulf Oil Corporation, were of great benefit it the preparation of the cross sections incorporated with the report.
The Alabama Geological Survey was of valued assistance in providing Mesozoic and Paleozoic tops on the Ancora Corporation and Jett Drilling Company No. 1 Citronelle Unit B-31-7 well, a 19,204-foot hole which is the deepest test in the Citronelle field (letter from Thomas J. Joiner, Chief, Paleontology-Stratigraphy-Geophysics Division, Geological Survey of Alabama, dated May 28, 1963).
...
TABLE OF CONTENTS
Page
Acknowledgments ............................... 1
Exploration .................................... 2
Charlotte Cbunty .............................. 2
Clay County . .............................. 4
Gadsden Couinty ............................. 5
Pinellas County -.............................. 8
Taylor County ............................... 8
Land ......................................... 9
Florida Mainland ............................. 9
Florida-Offshore ............................. 12
Geophysics .................................... 13
Florida Mainland ............................. 13
Florida-Offshore ............................. 15
Rules and regulations ............................. 16
Sunniland field ........................................... 17
Production .. ................................ 17
Sunniland field well data and review of two 1962
completions ................................ 17
1963 drilling operations in the Sunniland field ............. 18
Other Sunniland field activities permitted in 1963 .......... 21 Rodessa-Pine Island-Sligo prospects in northwest Florida ........ 21 Bibliography ................................... 27
Appendices .....................................
I. Exploratory well information, 1963 ............... 29
IL1 The "S-45", the offshore rig used by the California
Company in drilling their no. 3 Florida State Lease 224-B
well 43.................. ............. 43
III. State Drilling Lease form as revised in 1963 .......... 47
IV. Oil companies with exploration, production, or research
offices in Florida .......................... 61
ILLUSTRATIONS
Figure
1 Florida petroleum exploration and production .......... 3
2 Areas to be excluded from future oil and gas leasing
(prepared by Jim Williams of the Trustees of the Internal
Improvement Fund)........................... 14
3 Structure map of wells in Sunniland field, Florida ..... 19
4 Comparison chart of part of the stratigraphic section in
the area of the Citronelle oil field, Mobile County,
Alabama (after McCoy, unpublished thesis, 1958, p. 8) 23
v
Table
1 Structural information on the Gulf Oil Corporation
No. 1 Stevens Estate well and two additional tests
located 10 and 20 miles, respectively, to the
north-northwest ........................... 2
2 Drill stem test results, Gulf Oil Corporation, No. 1
Stevens Estate well ......................... 4
3 Penetration rates for drilling and reaming operations,
E. I. duPont de Nemours, No. 1 Highlands Plant waste
well ........ ............................ 5
4 Calculated porosity encountered in a predominantly
calcareous section below fresh water, E. I. duPont de
Nemours, No. 1 Highlands Plant waste well ........... 5
5 Wells in the Forty Mile Bend area revealing the presence
of reefa-l limestone of the Sunniland pay zone .......... 10
6 Rejected bids on State acreage offshore from northwest '
Florida, 1963 .......... ................... 13
T Geophysical activities on the Florida Mainland in 1963 15
8 Permits granted in 1963 for the conduct of offshore
geophysical operations .......................... 15
9 Time limit for submission of specified items to the Oil
and Gas Section- ............................ 16
10 Production for 1963, Sunniland field, Florida .......... 17 11 Data of the Sunniland marker, Sunniland field, Florida, arranged in the order of structural elevations ........... 18
12 Other Sunniland field activity permitted in 1963 21
Plates
I Mesozoic structure cross section A-A', B-B', and C-C'
and index map .. ......... ................. 6
2 Mesozoic stratigraphic cross sections B-B' and C-C' . 7 3 Mesozoic stratigraphic cross section A-A' ........... 24
vi
SUMMARY OF FLORIDA PETROLEUM PRODUCTION AND EXPLORATION IN 1963
By
Clarence Babcock
EXPLORATION
In 1963, four wells deep enough to reach prospective Cretaceous sediments were drilled in exploration for oil and gas; these wells were located in Charlotte, Gadsden, Pinellas and Taylor counties. A fifth deep well in Clay County was drilled through the Cretaceous section and was deep enough to be considered an oil test though it was designed as a chemical effluent facility. These wells are spotted on figure 1. Data 6n these five wells, on shallower holes, and on the re-entry of an old exploratory hole, are given in appendix I.
Exploratory footage drilled in 1961 through 1963 has been:
Exploratory
Year footage drilled
1961 87,737 feet 1962 16,378 feet 1963 37,712 feet
A summary of the deep wells drilled in 1963 in Florida counties follows:
CHARLOTTE COUNTY
The Gulf Oil Corporation, No. I Stevens Estate well, located about 14 miles southeast of Punta Gorda (fig. 1, app. 1), bottomed at a depth of 12,459 feet in sediments of Lower Cretaceous age, and was plugged and abandoned December 30, 1963.
Structural information on the Stevens well and comparative data on the Humble Oil and Refining Company, No. 1 Treadwell; and on the Gulf Oil Corporation, No. 1 Vanderbilt is given in table 1. The Treadwell and Vanderbilt wells are located 10 and 20 miles, respectively, to the north-northwest of the Stevens test. Inspection of table 1 indicates that significant faulting probably is not present between the tabulated wells.
Table 1, Struotural information on the Stevens well and two additional tests looated 10 and 20 miles, respeotively, to the north-northwest,
Depth and Thiokness, top Thiokness, top (Datum) of the top Avon Park Lower Cretaoeous of the Sunniland top Lower top Sunniland marker, Cretaoeous marker, o Well in feet in feet in feet
Gulf, Stevens 11,850 6,995 2,950 (-11,806) 0 HORC, Treadwell 11,500 6,980- 2,990 0 (-11,480
Gulf, Vanderbilt 11,245 7,040 2,885 (-11,224)
INFORMATION CIRCULAR NO. 45 3
J Escambia County, Alabama Discovered: January, 1952 Cumulative production to January 1,1963 7,868,614 barrels
30r
CITRONELLE FIELD
Mobile County, Alabama '-"Discovered: October,1955 r
Cumulative production to 29January 1, 1963 I .
33,403,021 barrels. I
4-Completed during 1963 28'-all plugged and abandoned F (see appendix 1 for well data) I
27'
SUNNILAND FIELD
Discovered: September 26,1943 Cumulative production to January 1,1964 26 7, 748,011 barrels S (See figure 2 for locations within the field of two producers completed In 1963) 25'
FORTY-MILE BEND FIELD Discovered: February 26,1954 Abandoned: September; 1955 24'Cumulative production: 32,888 barrels
8 I 1 86 B 8,4' er 82o r
o 40 SO8 120 160 MILES
APPROXIMATE SCALE
Figure 1. Florida petroleum exploration and production.
4 FLORIDA GEOLOGICAL SURVEY
Conventional cores were taken at depths of 11,374 11,417 feet and 12,290 12,346 feet. No descriptions are available. A total of 38 sidewall cores, with recovery from 12, were shot at various depths extending from 8,416 to 12,347 feet; no descriptions are available.
Two drill stem tests of the deeper Lower Cretaceous section recovered salt water with no oil or gas show. Information on these tests is recorded in table 2.
CLAY COUNTY
The E.I. DuPont de Nemours, No. 1 Highlands Plant waste well, located about 8 miles north-northeast of Starke (fig. 1, app. 1), bottomed at 3,509 feet in probable Early Ordovician sediments after having penetrated about 1,150 feet of Upper Cretaceous section.
The top of the Paleozoic section, as determined by the penetration log, was reached at 3,487 feet. A bottom-hole sample at 3,509 feet consisted primarily of quartzite associated with black shale stringers which Jean M. Berdan of the U. S. Geological Survey considers to be of "Early Ordovician (?) age" (personal written communication dated July 12, 1963). Berdan states that this lithology appears to agree with that in other wells in Florida and Alabama dated as Early Ordovician in age by means of fossils.
This well was designed to dispose of nontoxic waste water from the DuPont de Nemours' Highland plant, at which titanium ores are reclaimed.
Xs a result of unusually large bore-hole diameter of this well and the presence of alternating hard and porous zones, average drilling rates were slow, circulation was repeatedly lost, and rock samples were poor., Time for drilling the hole by the B and N Drilling Company, Laurel, Mississippi was 3 months. Penetration rates in feet per hour for drilling and reaming operations, and calculated porosities in a predominantly calcareous section below fresh water are given in tables 3 and 4, respectively.
Table 2. Drill stem tests results, Gulf Oil Corporation, No. 1 Stevens Estate well
Bottom hole
Depth in feet, flowing, and Recovery, and and (part of section Chokes, closed in time test tested) (in inches) pressures (PSI) was open
11,320 11,356 4 top 1,625, 4,809 37 barrels of (upper Sunniland 3/8 bottom salt water, in "pay," zone) 30 minutes
12,184 12,323 same 5,322, 5,498 405 barrels of (carbonates included salt water, in in lower part of 1 hour and 2 massive anhydrite section minutes
INFORMATION CIRCULAR NO. 45 5
Table 3. Penetration rates for drilling and reaming operations, E.I.
DuPont de Nemours, No. 1 Highlands Plant waste well
Hole size Interval Average penetration rates (inches) (feet) (feet per hour) Drilling: Drilling Reaming 15 0- 1, 549 8.5 10 5/8 1, 549 3, 507 6.9 Reaming:
15 to 30 0-326 8.4 15 to 22 326 -2, 031 3.2 10 5/8 to 15 1, 549 2, 020 4.5
Table 4. Calculated porosity encountered in a predominantly
calcareous section, below fresh water in the E.I. DuPont de Nemours, No. 1 Highlands Plant waste well
Interval Thickness Porosity per Sonic log (feet) (feet) (percent) 1, 815 1, 946 131 Range: 12 to 23 2, 590 2, 806 216 Aug: 23 3, 150 3, 212 62 Range: 16 to 23
Since no caliper log, neutron log, or gamma-gamma density log was run in this hole, possible caves and fractures creating permeability could not be located or inferred.
Drilling operations were terminated in June, 1963, and by the end of the year DuPont Company was still experimenting with this well in an attempt to make it work as a waste disposal facility.
GADSDEN COUNTY
The Prince and Munroe, No. 1 Owenby well, located about 3.5 miles southeast of Quincy (fig. 1, app. 1), was drilled to a depth of 7,029 feet, terminating in sediments of probable Lower Cretaceous Trinity Age.
The test reached the Lower Atkinson (or Lower Tuscaloosa) section of Upper Cretaceous Woodbine Age at 3,900 feet, and on this marker it was 18 feet lower than the Oles and Naylor, No. 1 Florida Power Company well located about 3 miles to the east-southeast.
Plate 1, which contains Mesozoic Structure Cross Section C-C', and plate 2, which includes Mesozoic Stratigraphic Cross Section C-C', show most of the Cretaceous sequence in the Owenby well.
The drilling site for the Owenby well was selected on the basis of seismic interpretation by the operators who hoped to drill several prospective horizons cut by an east-west trending normal fault. The Upper Cretaceous section penetrated by this test does not appear to be significantly anomolous structurally to that drilled in other tests located nearby, which indicates that the Owenby well did not cut a fault in the
6 FLORIDA GEOLOGICAL SURVEY
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(SEE PLATE I FOR INDEX MAP)
Plate 2. Mesozoic stratigraphio cross sections B-B' and C-C'.
& FLORIDA GEOLOGICAL SURVEY
Upper Cretaceous section. Also, the sparse data available on the Lower Cretaceous sequence in this well, which is the only test to drill deeper than 4300 feet in Gadsden" County, does not indicate that significant faulting was present in the Lower Cretaceous section.
This test was the second of two wells (the other being the No. I Bowman dry hole terminated at a depth of 4,196 feet in 1962) drilled by the operators on a 14,000-acre block secured from the Sun Oil Company. The drilling contractor for both holes was the B and N Drilling Company, Laurel, Mississippi. The contract price for both wells was $5 per foot. The drilling of the Owenby well required 17 days, with drilling time varying from about 0.1 foot to 5 feet per minute.
PINELLAS COUNTY
The California Company-Coastal Petroleum Company, No. 3 Florida State Lease 4-B well located about 8 miles northwest of the center of Dunedin (fig. 1, app. 1), was bottomed at 10,600 feet, which is about 1,050 feet below the top of the Sunniland field "pay zone" equivalent.
It is possible that brown clastic sediments, here consisting of argillaceous and slightly calcareous silts which become predominant at a depth of 10,455 feet, represents the Hosston Formation (Coahuilan Series of Lower Cretaceous age).
On top of a thick shale section reached at a depth of 9,915 feet in the No. 3 State Lease 224-B well, this test is 246 feet higher in structural elevation than is the Coastal Petroleum Company No. 1 Wright well, located 16 miles to the southeast. This would not have to result from structural anomaly, however, since the difference in structural elevation can be accounted for by a regional dip of 15 feet per mile.
The city of Dunedin rejected the application of The California Company to drill the No. 3 State Lease 224-B well in waters lying within three miles of shore, and which the city claims, on the grounds that drilling activities would be inimical to the development of the $4.5 million Caladesi-Honeymoon Island complex. The company then obtained a permit from the U.S. Corps of Engineers to drill at a site 60 feet beyond the 3-mile boundary limit claimed by the city. The final location was about 0.88 mile west-southwest of the point at which the company originally intended to spud the test.
This hole was drilled with The California Company 8-45 barge and derrick supplied with Rowan Drilling Company motors and drawworks, and on which Schlumberger logging equipment and Halliburton plugging and completion equipment were installed. It is reported that The California Company calculated its cost for drilling and auxiliary equipment used in the operation at $6,000 a day. The rig used in drilling this well is described in greater detail in appendix 1l.
TAYLOR COUNTY
The Mattaliano No. 2-A Buckeye Cellulose well, located about 19 miles west of Perry (fig. 1, app. 1), was drilled to a final total depth of 4,115 feet, bottoming in Lower Cretaceous sediments.
INFORMATION CIRCULAR NO. 45 9
This well reached the top of the Upper Atkinson sand at 3,400 feet. On this marker the structural elevation of the well is about the same as that of the Humble 0il and Refining Company, No. 1 Hodges test located 13 miles to the east.
This test was located on an 80,000-acre lease lying in the southwestern corner of Taylor County, and in the general area of a gravity high. The operator's primary objective was to drill a stratigraphic pinchout, or a fault trap, of Atkinson sands.
It appears probable, on the basis of regional control and the appearance of the induction-electrical log of the well, that the lower member of the Atkinson Formation, which further to the west in Florida contains Woodbine microfossils, is missing at this location. Samples in this test are unreliable as a result of poor mud circulation and do not help to resolve the stratigraphy.
Prior to the completion of this hole, the operator spudded in at three previous sites, none more than about a mile from the No. 2-A well; the deepest of these previous holes was 180 feet. Each of the previous holes was abandoned because of a near-surface boulder zone.
Mud circulation history of the No. 2-A Buckeye Cellulose Corporation well was:
0- 96 feet No circulation
96- 120 feet Circulation established
120-4,115 feet (TD) Poor circulation maintained after cotton seed hulls were added to the mud.
The drilling contractor for this well was Fennis Waltman, Citronelle, Alabama. The contract was taken on a day-rate basis, and provided for the payment of $800 a day, plus cost of mud, cement, and bits. This test was spudded on November 30, 1963, and completed on December 20, 1963. Drilling rates ranged from about Y2 to 5 minutes per foot.
LAND
FLORIDA MAINLAND
Charlotte County: The Gulf Oil Corporation acquired a 10-year lease on 18,320 acres from the Game and Fresh Water Fish Commission of the State of Florida. The acreage is located in T. 42 S, R 23, 24, 25 E., and consists approximately of the southern one-third of the Cecil M. Webb Wild Life Management area. Bonus payment was $37,575; annual rental is 50 cents per acre, increasing 5 percent after the first 2 years. The drilling commitment requires one well within 2Y2 years to a depth of not less than 6,000 feet, with an additional well each 2Y2 years thereafter. The lease date is August 1, 1963.
In addition, in the latter part of 1963, Gulf acquired about 99,000 acres of privately-owned land in 11 leases from the Babcock Florida Corporation in Charlotte and Lee counties. This privately owned acreage consists of T 41 and 42 S., R 26 and 27 E., and adjoins, to the east and north, the Game and Fresh Water Fish Commission lease. Bonus payment was $1 an acre and annual rentals are 50 cents an acre.
t0 FLORIDA GEOLOGICAL SURVEY
On November 20, 1963, Gulf spudded its first test under the Game and Fresh Water Fish Commission lease, in sec. 24, T 42 8, R 24 E. Though this well was drilled "tight", information on it was released after it was plugged and abandoned. Detailed information is presented in this report under "Exploration-Charlotte County", and also in appendix I, which is the welldata section.
Dade County: A total of 24,830 acres of State land located in northwestern Dade County, and encompassing the abandoned Forty Mile Bend field, were acquired by Wendell L. Roberts under a 10-year lease offered jointly by the Trustees of the Internal Improvement Fund and the State Board of Education. The Trustees own the minerals under the bulk of the leased acreage, with the Board of Education holding a reserve interest on only two sections. Cash consideration for this jointly-offered lease was $12,500. The drilling commitment requires one well within 18 months from the date of the lease, with an additional well drilled each 2Y years thereafter, and each well to reach 11,300 feet of depth unless production is obtained at a lesser depth; lease date is September 24, 1963.
The mineral rights on one section lying roughly in the middle of the Robert's block of otherwise wholly-owned State acreage were leased in part from the State and in part from Malcolm Wisehart. Drilling commenced on the Wisehart lease on or before March 24, 1965, would satisfy the IS-month commitment on this lease as well as on the wholly-owned State acreage.
There has been considerable interest in the area of Robert's lease in view of the presence within the block of geophysical anomalies, and of two abandoned producers which make up the Forty Mile Bend field. Robert's block is underlain by the reefal limestone of the Sunniland "payI' zone, as shown in table 5.
There is also probable, but poorly developed, reefing in two additional tests, the No. 2 and No. 3 State Lease 340 wells, both drilled by Gulf, and both located less than a mile south of the Robert's acreage and within the confines of the Everglades National Park.
Table 5. Wells in the Forty Mile Bend area revealing
the presence of the reefal limestone of the Sunniland Pay Zone
Reef interval and
Well (thickness) Comment
Commonwealth, No. 1 11,404-11,450' Well developed reefing State Lease 1055- (46') Located about 1 miles
north ftf the Robert's
lease
Gulf, No. 1 State Lease 11,344-11,347' Well developed reefing 340 located within the (3') (reefing probably slightly Robert's lease thicker than 3 feet; bottom few feet of core were not
recovered)
INFORMATION CIRCULAR NO. 45 11
Both of the Forty Mile Bend field abandoned producing wells were completed in 1954 and together, during a period of about 17 months in 1954 and 1955, produced 32,888 barrels of oil from the equivalent of the Sunniland pay zone (of Lower Cretaceous Trinity Age) of the Sunniland field, located about 50 miles to the northwest. The second producer, the Gulf Oil Corporation, No. 1 State Lease 340 well, is especially interesting. On drill stem test an 8-foot limestone interval from 11,344 to 11,352 feet yielded gas to the surface in 5 hours with no free water. This well was completed natural as a pumper producing 25 percent oil and 75 percent salt water with rapid decline in a few months to less than 5 percent oil. On abandonment a Y-inch hole was found in the casing at 10,045 feet, placing it above the cement behind the casing and below the pump seat inside the casing.
Hardee and Manatee counties: Texaco leased a reported 70,000 acres of private land from Mr. Doyle Carlton in southwestern Hardee and southeastern Manatee counties for a consideration of 50 cents per acre bonus and 50 cents per acre annual rental. This lease grants the right to prospect for phosphate minerals as well as for oil and gas.
Gadsden County: In 1963, the Sun Oil Company released by nonpayment of rentals, its entire holdings of 16,000 acres in Gadsden County.
Nassau County: Fuller Brothers, with offices in Fort Worth, Midland, and New Orleans, and the South Penn Oil Company took an assignment of leases on acreage variously reported as totaling between 30,000 to 40,000 acres assembled by the McCarter Brothers of Houston, who retained an interest. Most of this acreage was located in Georgia just north of the Florida State line.
As protection acreage, the Fuller Brothers and the South Penn Oil Company jointly acquired from the Trustees of the Internal Improvement Fund of Florida a 10-year lease on 181.8 acres on the Florida side of the St. Mary's River; cash consideration was $421.78, consisting of $18.18 for the first year's rental with the remainder being for bonus. These companies also purchased a 10-year lease from theFlorida State Road Department on 97 acres of right-of-way for a cash consideration of $213.34 consisting of $9.70 for the first year's rental with the remain der being for bonus; lease date was June 11, 1963. Rental schedules for each of these leases was modeled after the standard payment in Georgia on State acreage, and is:
Per acre
10 cents for the first year
25 cents for the second year
50 cents for the third year
$1 for each subsequent year
Surface work and a core drilling program involving one stratigraphic test in or near Florida and one or more additional wells in Georgia were the basis for the location of a 4,700-foot test about a mile north of Folkston, Georgia. This was a tight hole plugged on August 1, 1963.
12 FLORIDA GEOLOGICAL SURVEY
FLORIDA OFFSHORE
Escambia and Santa Rosa counties (bay areas): Mr. M. F. Kirby, Jackson, Mississippi, requested a 5-year lease on 50,581 acres in Escambia and Pensacola bays with a rental of 20 cents an acre and a commitment for two wells, with the first to be commenced within 9 months from the date -of the lease and the second to be commenced within 60 days after completion of the first well. All wells were proposed to be drilled to a depth of 7,400 feet or to the top of the Lower Cretaceous, whichever was deeper. The Trustees of the Internal Improvement Fund have received clearance from the U. S. Defense Department for advertisement for competitive bids on 49,291 acres of the total requested. About 1,290 acres, located in the southern part of the block originally applied for, was requested to be deleted from the lease. Accordingly, this lease comprising 49,291 acres will be advertised in January, 1964; the current schedule calls for opening of bids on February 25, 1964.
On September 8, 1963, Mr. Philip Beal, et al., requested a 5-year lease on 34,333 acres in East Bay, with a rental of 5 cents per acre and the drilling of one well to be commenced within 1 year. The Trustees approved this lease application for advertisement subject to the condition that the applicant increase the rental from 5 cents to 20 cents an acre. In the latter part of December, 1963, the Trustees were notified that, in view of the increased rental, the petitioners had decided to drop their request for advertisement of the lease. The Trustees had received clearance from the Defense Department for advertisement of this lease for competitive bids.
Florida Gulf Coast offshore: The full interest in Florida State Leases 224-A and 224-B have reverted to the Coastal Petroleum Corporation from The California Company. This became effective on December 1, 1961, when the latter company did not exercise its option, under the operating agreement between the two companies, to (1) agree to drill 12,000 feet of hole by March 1, 1966, and (2) pay rentals through March 27, 1966.
The California Company will terminate its Florida office, located in Pensacola, Florida, as of January 10, 1964 (app. IV).
Monroe County: The Gulf Oil Corporation allowed the remaining 9 blocks included under their Florida State Lease No. 826 to lapse by omitting payment of rentals due September 18, 1963; these remaining 9 blocks were located in the vicinity of the Florida Keys. State Lease No. 826 was acquired by Gulf in 1951 under a 5-year lease which was extended an additional 5 years. Seventeen blocks (A through J, 0 through U) reverted to the State on September 26, 1961. The term on the remaining 9 comprising blocks (K, L, M, N, V, W, Y, Z), 979,160 acres, was extended to March, 1964, by a moratorium on drilling commitments of 2 years, 6 months, and 24 days. This moratorium corresponded to the time during which the Tidelands case was in litigation. In the Tidelands case, the U. S. Supreme Court opinion, dated May 31, 1960, reaffirmed the title of Florida to lands covered by Gulf waters to a distance of 3 marine (or nautical) leagues, (10,365 statute or land miles), from the coastline.
INFORMATION CIRCULAR NO. 45 13
Northwest Florida Offshore: The State advertised on February 18, 1963 for bids on 1,496,237 acres of submerged and tidal lands located within 3 marine leagues from the low water mark of the uplands of the northwest Florida coast, and extendingalong the coast about 175 miles between the Alabama line and the western tip of St. George Island near Apalachicola. Conditions of the lease as advertised included: primary term, 10 years; annual rental, 2 cents per acre for lands in bays, bayous, and sounds, and 1 cent per acre for offshore bottoms with rentals to increase 5 percent of the original amount after the first 2 years.
The U. S. Defense Department requested that approximately 1 million acres of the total advertised be restricted from the bid. The area on which restriction was requested is shown on figure 2, a map prepared by Mr. Jim Williams, of the Trustees of the Internal Improvement Fund. The Defense Department stated that offshore drilling would interfere with with testing delicate sound detection equipment, and also hamper weapons testing. The State complied with this request and rejected two bids which are summarized in table 6.
There remains about one-half million acres of the 1,496,237 acres originally offered by the State that still are open for lease (fig. 2).
Table 6. Rejected bids on State acreage
offshore from northwest Florida, 1963
Bidder Bonus Area bid on
The California Company $370,000.00 Entire 1,496,237 acres as advertised
Beal, et al. $ 10,500.00 The western half (approximately) of the area
advertised
GEOPHYSICS
FLORIDA MAINLAND
Geophysical activities completed on the Florida mainland in 1963 are shown in table 7.
A L A M AA._ . .-~
8-p,
SANTA CrestviewI Du loni ay
,,,n'sI 0/..,__.z 0 C7 E 0 R G IA
Milto' JACKSON uic Ld S WALTON L adion
-'GADSD eN % --.. BAY :ALOU LEON ~1~MADISN0 3,200LIBERTY Crawfordvll
r0M'.6"5y c~h hka Ct10Perry GULF~ TAYLOR 0
1.0.4
AREAS TO BE EXCLUDED FROM
FUTURE OFFERINGS FOR OIL, GAS AND MINERAL LEASING.
REDRAWN AFTER JIM WILLIAMS OF THE TRUSTEES OF THE INTERNAL IMPROVEMENT FUND
'Figure 2. Areas to be excluded from future oil and gas leasing (prepared by Jim Williams of the Trusteesol the Internal Improvement Fund).
INFORMATION CIRCULAR NO. 45 15
Table 7. Geophysical activities on the Florida Mainland in 1963
Type
County Survey Area worked Crew weeks
Escambia County
California-Chevron Seismic 4N-3EW; 5, 6N,30, 31,
32 W8
Okaloosa County
Texaco Gravity 4,5,6N-23,24,25W 4 Santa Rosa County
California-Chevron Seismic 5,6N-29W; 5N 2 /4
Texaco Seismic 30W, 4 N-27,28,29 14
Texaco Gravity W; 5 N-28,29W, 1,2,
S-26,27W 5 213/4
Total 26Y
FLORIDA OFFSHORE
Permits granted by the State B.oard of Conservation for the conduct of offshore geophysical operations are shown in table 8.
Table 8. Permits granted in 1963 for offshore geophysical activities
Seismographic Company to Type
Permit which issued Survey General area
No. 1963
1 Mar. 26 California Velocity Offshore from Pinellas County, within 1,000
feet of the CaliforniaCoastal No. 3 Florida State Lease 224-B
2 Apr. 16 Mobil Oil Echo Offshore from northSounder west Florida
3 Nov. 6 Mobil Oil Echo Offshore from north Sounder coast of Florida Keys
4 Nov. 6 Ray Geophysical Magneto- Offshore from northmeter west Florida
5 Dec. 16 Tidelands Explo- Gravity Tentatively, plans ration meter include the entire offshore Florida Gulf
Coast out to a water
depth of 100 fathoms
16 FLORIDA GEOLOGICAL SURVEY
Of the above permitted surveys, the only information available to the office relative to work undertaken is that the Mobil Oil Company completed 7 weeks of seismic activity in the Gulf of Mexico (See permit
5 above).
The Tidelands Exploration Company tentatively plans a gravimetric survey covering the entire offshore Florida Gulf Coast out to a water depth of 100 fathoms. However, the northern and major part of the area they hope to cover is located within the Air Force Gulf Test Range. The Air Force has requested Congress to enact legislation restricting the Gulf Test Range area lying beyond the jurisdiction of the State of Florida (3 marine leagues from shore) and out to the 100-fathom curve from the mineral leasing provisions of the Outer Continental Shelf Lands Act (43 USC 1331-1343), for a period of 5 years. This restriction would not prohibit mineral exploration by seismic, galvanometric, or similar methods. The StatS has approved a Department of Defense request to issue no leases or permits for exploration or production operations in coastal or inland submerged areas where such activity would be inconsistent with the national security.
Tidelands would like to begin its survey in the northern region; they have commitments for participation by oil companies, and are ready to begin. If the area in question is restricted, however, they will comnence their operations in the southern region which is not affected.
RULES AND REGULATIONS
The State Board of Conservation will keep any information confidential for a period not exceeding 1 year from the date on which such information is filed, unless exceptional hardship is proved. This is in accordance with a provision added, on 'September 10, 1963, to section 115-B-2.05 of the Florida Administrative Code, which establishes rules and regulations governing the conservation of oil and gas in Florida.
By an amendment to the subject section of the Florida Administrative Code, also made on September 10, 1963, the time for supplying the Oil and Gas Section of the Division of Geology with copies of electrical logs or other surveys made in the drilling of a well has been changed from 6 months to 90 days. With the incorporation of this change, the time limits for submitting items to the Oil and Gas Section in compliance withThe Oil and Gas Act is given in table 9.
Table 9. Time limits for submission of specified items to the Oil and Gas Section
Item Time limit (following well completion)
Well record (form 9) 30 days Affidavit on plugging completion
(form 12) 30 days Well samples 90 days Electrical logs or other surveys 90 days
INFORMATION CIRCULAR NO. 45 17
During the year, there was considerable discussion of proposed regulations to govern oil and gas leasing in Florida, and a new State Drilling Lease form was proposed and adopted in 1963 by the Trustees of the Internal Improvement Fund. (app. III).
SUNNILAND FIELD
PRODUCTION
Florida's only currently producing field, the Sunniland oil field, located in northwestern Collier County of southern Florida, produced by pump from Lower Cretaceous reefal limestone (Trinity Age) about 1,300 barrels of oil per day. Production figures for 1963 are given in table 10.
The cumulative production of the field during its 20-year history to January 1, 1964, is 7,748,011 barrels of oil. Most of the 16 Sunniland field wells have been very good producers, with one well producing about 12 million barrels of oil, while two others have produced about I million barrels each.
The Sunniland crude oil is black and medium in weight (190 -260 API), and associated with little gas (gas-oil ratios are about 100 to 1). It is suitable principally for fuel products.
SUNNILAND FIELD WELL DATA AND REVIEW OF TWO 1962 COMPLETIONS As background for a discussion of 1963 drilling operations in the Sunniland field, a review of the captioned information is:
1. The structural data of the Sunniland marker for all wells in the field are presented En table 11. Wells are listed in the order of structural elevations. The subject marker is at the base of a prominent anhydrite
Table 10. Production for 1963, Sunniland field,Florida.
Month Barrels January 32, 756 February 36, 365 March 39, 211 April 38, 539 May 41, 631 June 40, 927 July 39, 965 August 39, 729 September 36, 291 October 40, 169 November 39, 057 December 39, 002 Total 463, 642
IS FLORIDA GEOLOGICAL SURVEY
which immediately overlies the middle member of the Sunniland formation as defined in an unpublished thesis by Raasch (1954, p. 11), and which is typically the upper limit of the dolomite and fossiliferous limestone producing section. Well locations and structure contours are shown on figure 3.
f. The Humble Oil and Relining Company, No. 18 Gulf Coast Realties Corporation well, completed in 1962, pumped on the initial production test 178.7 BOPD (barrels of oil per day) with 10 percent BS and W (basic sediment and water) through perforations ranging from 2 to 18 feet low r than the producing interval in any well in the field. Table 11 shows that this producer is the highest well in structural elevation in the field.
The Humble Oil and Refining Company, No. 5 Lee Tidewater Cypress Lumber Company "B" well was completed in 1962 at about the same interval as that from which most of the field wells produce. This well pumped on its initial production test 108.7 BOPD with 0.7 percent BS and W. This producer is the fourth highest well in structural elevation in the field, as shown in table 11.
1963 DRILLING OPERATION IN THE SUNNILAND FIELD
The Humble Oil and Refining Company, No. 5 Gulf Coast Realties Corporation well originally was completed on May 24, 1947, in the open hole from 11,560 to 11,578 feet. The initial flowing production was 518
Table 11. Data of the Sunniland Marker, Sunniland Field, Florida,
arranged in the order of structural elevations.
Humble Oil and Refining
Company lease and well Sunniland marker number (in feet sub-sea)
Gulf Coast Realties Corporation
No. 18 ,11,493
11 -11,501 13 -11,502
14 -11,504 4 -11,510 8 -11,516 6 -11,517 10 -11,519 5 -11,520 9 -11,535 1 -11,548 Lee Tidewater Cypress Lumber Co. "B"
No. 5 -11,503
4 -11,514 3 -11,516 1 -11,517 2 -11,521
INFORMATION CIRCULAR NO. 45 19
:1/
7i
R 29 E R 30 E
1~ PRDCN I EL oprto R E 12 7 C d
17 -2 723 R0C MPEE IN 1960 "TC.' 004 ....... Tieae yrs
Lumber Company
,w ABANDONED OIL WELL
--DRY HOLE
Contouring closely conforms to Raasch(19-54,p.22);
tops picked by Florida Geological Survey
Figure 3. Structure map of wells in Sunniland field, Florida.
20 FLORIDA GEOLOGICAL SURVEY
BOPD of 250 API gravity oil with 0.3 of 1 percent BS and W through a %-inch choke. The gas recovery was 50.2 MCF (thousand cubic feet) per day, giving a GOR (gas-oil ratio) of 99 to 1. The tubing pressure was 380 PSI (pounds per square inch), and casing pressure was 265 PSI.
During the initial production test conducted in September, 1962, the well pumped 71 BOPD with 238 barrels (77 percent) of salt water.
Accumulated production from this well to October 1, 1962, was 440,571 BO with 628,257 barrels (59 percent) of salt water.
This hole was deepened on November 27, 1962, and a 4-inch tubing was set at 11,621 feet (original total depth reached in 1947 was 11,578 feet). The well was perforated with 17 shots (4 per foot) from 11,576 to 11,580 feet, an interval extending 2 feet lower than the open-hole completion of 1947. On the initial production test conducted January 15, 1963, the well was pumped 24 hours through a 2-inch choke and recovery was 28 BOPD, with 45 barrels (38.5 percent) of salt water. The gas recovery was 2.8 MCF per day, the tubing pressure was 75 pounds, and the casing pressure was zero.
A subsequent production test on December 5, 1963, through perforations 8 feet higher in the casing (11,562-11,568 feet), produced 84 BOPD, with 292 barrels (78 percent) of salt water. Production from this well during the month of December, 1963, from 11,562 to 11,568 feet was 2,410 BO with 8,556 barrels (78 percent) of salt water.
Since the final perforated interval (11,562-11,568 feet) is bracketed within the zone from which open-hole production was obtained as a resuit of the 1947 completion, it appears that the 1963 operations had the result, essentially, of a workover.
Table 11 shows that the Sunniland marker in the No. 5 Gulf Coast Realties Corporation well occupies a relatively low structural elevation as compared with other Sunniland field wells.
The Humble Oil and Refining Company, No. 10 Gulf Coast Realties Corporation well originally was completed on January 8, 1948, in an open hole from 11,566 to 11,574 feet. The well flowed initially, producing .175 BOPD of 24.80 API gravity oil with 1.8 percent of BS and W through ,'-inch choke. The gas recovery was 15.2 MCF per day, the tubing pressure was 72 pounds and the casing pressure was zero.
During a production test conducted in September, 1962, the well pumped 51 BOPD, with 50 barrels (50 percent) of salt water.
Accumulated production from this well to October 1, 1962 was 385,706 BO with 145,421 barrels (27 percent) of salt water.
On February 5, 1963, the well was deepened and a 4-inch tubing was set at 11,678 feet (original total depth reached in 1948 was 11,574 feet). The well was perforated with 16 shots from 11,588 to 11,592 feet. This was 14 feet deeper than the open-hole completion of 1948. On the initial 24-hour production test, conducted February 22, 1963, 29 BOPD, with 81 barrels (74 percent) of salt water, and a gas recovery of 2.9 MCF was produced.
INFORMATION CIRCULAR NO. 45 21
A subsequent production test, conducted on December 5, 1963, was taken through perforations extending from 11,572 to 11,578 feet and 11,591 to 11,597 feet. The lowest of these perforations was 23 feet deeper than the interval of open-hole completion of 1948. This test produced 63 BOPD, with 116 barrels (65 percent) of salt water. Production from this well during the month of December, 1963, through the two sets of perforations, was 1,807 BO with 3,343 barrels (65 percent) of salt water.
In this well, the Sunniland marker is relatively low as compared with other wells in the field (table 11).
OTHER SUNNILAND FIELD ACTIVITIES PERMITTED IN 1963
Other Sunniland field activities for which permits were approved in 1963 are shown in table 12.
RODESSA-PINE ISLAND-SLIGO PROSPECTS IN NORTHWEST FLORIDA
The 1961 production, from the Rodessa-Pine Island-Sligo section of Lower Cretaceous Trinity Age in the Citronelle Oil field of Mobile County, Alabama, located 33 miles west-northwest of the Florida-Alabama boundary, was 5,872,403 barrels of high gravity (averaging 400 to 450 API) oil from 290 pumping wells. Cumulative production from discovery of the field in October, 1955, to January 1, 1962 was 26,945,022 barrels of oil (Oil and Gas Yearbook of 1962, Pt. 2, p. 11). The depths from which production was obtained ranged in the discovery well, the Zack Brooks, No. 1 Donovan, from 10,870 to 11,414 feet (Frascogna, editor, 1957, p. 38). This depth range of the productive zones is typical for Citronelle field wells.
In Mississippi, 29 oil fields and two gas fields produce from the Rodessa-Sligo sequence, according to a summary (1962) by Henry N. Toler, Consulting Geologist.
Table 12. Other Sunniland field activities permitted in 1963
Humble Oil and
Refining Company
Type of Date of
Lease afid well number permit permit
Gulf Coast Realties
Corporation
No. 14 deepening July 2, 1963 No. 8 workover July 9, 1963 The work on neither of the wells listed in table 12 was completed as of December 31, 1963.
22 FLORIDA GEOLOGICAL SURVEY
Rock units which make up the Rodessa-Pine Island-Sligo section are shown in figure 4, a comparison chart of part of the stratigraphic section in the area of Citronelle field, Alabama; this chart was extracted from an unpublished thesis by Henry J. McCoy (1958, p. 8).
Mesozoic stratigraphic and structural cross sections (plates 1, 2 and 3) carry correlations through 12 wells extending from Citronelle field -as far east as a test drilled offshore from Franklin County, Florida. Tops shown on these sections were based on sample. and electrical log analysis by several workers in this area, and by the write-r, who assumess responsibility for all the tops.
Sparse well control is inadequate to reveal the strike of Mesozoic formations in southern Alabama and northwestern Florida, and it was not possible to prepare a true strike section. East-west cross sectional line A-A' only very approximately parallels the northern boundary of the basin in which Mesozoic sediments were deposited. Southern Alabama wells included in the cross sections were selected on the basis of the relative ease and clearness of electrical log correlations. In northwestern Florida, the sections include eight wells believed to have been deep enough to have penetrated the Rodessa equivalent.
Electrical log cross sections composing plates 1, 2 and 3 reveal:
1. The depths, and possible depths, at which the Rodessa-Pine Island-Sligo section may be reached
in northwestern Florida.
2. That the Rodessa-Pine-Island-Sligo sediments in the three deep tests in Escambia and Santa Rosa counties, Florida, are quite similar to those encountered in the Citronelle field of Alabama. The Fairy Lake Anhydrite is common to both areas; this lithologic unit serves as a good marker in electrical log correlations. The presence of this unit, as well as other anhydrites, proves the existence of.an evaporite basin.
3. That in wells beginning with the Pan American No. 1 Sealy test in Walton County, Florida, and continuing eastward along cross sectional line A-A', Mesozoic formations are about 2500-3500 feet higher in structural elevation than they are in wells to the west (see Structure Cross Section A-A', plate 1).
Also, Mesozoic sediments in these eastward wells appear to have been deposited further updip than they were deposited in wells -to the west, since they consist more predominantly of clastics (see Stratigraphic Cross Section A-A', plate 3). As a result, correlations of the Mesozoic formations of the Citronelle field area into the eastward wells of cross sectional line A-A' becomes very difficult, and as a corollary, the section shows less oil and gas promise.
INFORMATION CIRCULAR NO. 45 23
STEPHENSON et al. FRASCOGNA FORGOTSON McCOY
1942 1957 1957 1958
PRAIRIE BLUFF
Fm. NAVARRO.
RIPLEYrm. F u. m RIPLEY Fm.
uj DEMOPOLIS I TAYLOR Uj DEMOPOLIS
Memb- Memb.
ARCOLALs. EUTAW ARCOLA Ls.
Fm. ,U c' jU) ,- UPPER u_, I TOMBIGBEE -' TOMBIGBEE
;:4 :::)13:: _l u- MARINE <
~LL
Ij U0
TUSCALOOSA LOWER TUSCALOOSA
Fm. _- Fm.
WASHITA GROUP DANTZLER WASHITA GROUP
Undiff. Fm. UNDIFF.
GOOD- 0 1 FREDERICKSBURG
u~ LANDL,. ,,=
u~s ~ WLNU L, t L ca L GROUP Undiff.
Rl 0 cn LIMESTONE un OI u')
-, _, F UNI Td PALUXY PALUXY
LU PALUXY PALUXY
Fm. Lu " 1 "' aMOORINGS ERUSK-.. C. o PORT Fm.
M'l OORINGS- 0 F:m.Equiv. LU o-MOORINGS- U PORT Fm. __ LU
_ PORT Fm. 0 0uO "' "
_O =O =)w c
AEYD FERRY U L = -FERRY LAKE U 0 FERRY LAKE
ZRITE 0 LE z 0 JANHYDRITE -I ANHYDRITE
S RNHOD EA Z ANHYDRITE 0 0
IROOESSA
Z R0DESSA ZI I RODESSA RODESSA
PINE ISLAND O Z Fm. O O Fm. 0 Fm.
U 1 Fm. I.~Ll u
L) 0 L)
w SLIGO PEARSALL
SLIGo Fm. SLIGO Fm.?
Fm. Fm3m:Euv
0
_M ,, SLIGO
LULnInLUHOSSTON ~F.
HOSSTON O N" HOSSTON
Fm. Fm. _. Fm.
SHOSSTON 5
3 0 Fm.
Lul 0
- -u -. U
REDRAWN AFTER McCOY, 1958
Figure 4. Comparison chart of part of the stratigraphic section in the area
of the Citronelle oil field, Mobile County, Alabama
(after McCoy, unpublished thesis, 1958, p. 8).
to3
0_ I4 Q Z 0 I ERA
_ CRET CEOUSVS J U C R< A C E0 Y
JU ASCOAHUILA ~ OM A NCHE SERIES
o 71 It
-j -0
a ix
a -t
~ ~1~ ~ P I r~v~4v&
oz-
INFORMATION CIRCULAR NO. 45 25
It may be inferred that the eastward continuation of the structural strike and depositional facies of the Mesozoic horizons which underlie the Citronelle field lies south of the eastward extension of cross sectional line A-A' in a trough approximately outlined by Antoine and Harding (1963, fig. 2) on the basis of seismic refractions. As approximately depicted, these authors show that the axis of this trough lies offshore about 40-50 miles and parallels the coast eastward from its essential termination; somewhat eastward of latitude 85 degrees we st which passes through Apalachicola;that the basin is about 50 miles wide at the 12,000foot contour level; and that it is filled with Mesozoic and Cenozoic sediments with a thickness in excess of about 15,000 feet.
INFORMATION CIRCULAR NO. 45 27
BIBLIOGRAPHY
Antoine, John W.
19 U3 (and Harding, James L.) Structure of the continental
shelf, northeastern Gulf of Mexico (Preliminary report): The A. and M. College of Texas, Department of Oceanography and Meteorology, Project 286-Reference 63-13T,
College Station, Texas, 18 p., 9 fig., 2-tables. Basom, Willard
1961 A Hole in the Bottom of the Sea: Doubleday and Company,
Garden City, New York.
Forgotson, J. M., Jr.
1957 Stratigraphy of Comanchean Cretaceous Trinity group: Am.
Assoc. Petroleum Geologists Bull., v. 41, p. 2328. Frascogna, X. M., editor
1957 Mesozoic-Paleozoic producing area of Mississippi and
Alabama: Mississippi Geol. So., v. 1. Harding, James L.
1963 (see Antoine, John W.) Hazzard, R. T.
1947 (and Spooner, W. T., Blanpied, B. W.) Notes on the stratigraphy of the formations which underlie the Smackover Limestone in South Arkansas, Northeast Texas and North Louisiana: Shreveport Geol. Soc. 1945 Ref. Rept., v. 2, p.
483-503.
International Oil Scouts Association
1962 International Oil and Gas Development Yearbook, 1962
(review of 1961): Part 11 (Production), v. 32, 576 p. McCoy, Henry J.
1958 An Electric Log and Sample Study of the Citronelle Oil
field, Mobile County, Alabama: Unpublished master's thesis, Florida State University, p. 1-40, Florida State University Strozier Library, file no. 557.61 M 131 e. Raasch, Albert C., Jr.
1954 The Sunniland oil field of Collier County, Florida: Unpublished Master's thesis, Florida State University, p. 1-33,
Florida State University Strozier Library, file no. 553.28
R 111 s.
1955 Sunnlland oil field of Collier County, Florida (abstract):
Meeting program of eastern section, Geol. Soc. America
Bull., p. 17.
FLORIDA GEOLOGICAL SURVEY
Scott, K R.
1961 (and Hayes, W. E.9 Fietz, R. P.) Geology of the Eagle
Mills Formation: Transactions, v. 11, p. 1-14, Gulf, Coast
Assoc. Geol. Soc.
Stephenson, L. W.
1942 (and others) Correlations of the outcropping Cretaoeous formations of the Atlantic and Gulf Coastal Plains And Trans.
Pecos, Texas:Geol. Soo. Amerioa Bull., v. 58,p. 485-448. Tolar, Henry N.
1962 Producing wells by fields in Mississippi, Prepared for the
Petroleum Department of the Deposit Guaranty Bank and
Trust Company, of Jackson, Mississippi: a leaflet.
APPENDIX I
EXPLORATORY WELL INFORMATION, 1963
CLAY COUNTY
Permit
no. FGS no. Company or owner Well name Location Well data
306 W-6299 E.I. du Pont de Highlands Plant Waste 500' N and 301' W of SE cor. Elev: 175,Gr. (est.) Nemours well No. 1 of SW quarter sec. 17, T 5 5, Comp: June 28, 1963 R 23 E T. D: 3509' (dr.) (probably in E.
Ordovician.)
REMARKS: (1) Casing record: 24" at 300'; 11 314" at 2, 035'.
(2) "This well is to be used to dispose of non-toxic waste water from the Highlands plant. A permit
was required for drilling the hole in view of the fact that it was designed to penetrate below fresh water levels.
(3) The Induction Electrical Log indicates that the first interval of significantly brackish water occurs
from 1, 820 to 1, 950 feet, with a sharp increase in salinities at 1, 990 feet. The equivalent sodium chloride Z below a depth of 2,015 feet exceeds 15, 000 (log analysis by Schlumberger Well Surveying Corporation.) O
(Casing was set at a depth of 2,035 feet.
(4) Porous zones encountered were:
Porous zones Porosity, per Interval Thickness Sonic log (feet) (feet) (%)
1815-1946 131 range: 12 to 23 2590-2806 216 aug: 23 3150-3212 62 range: 16 to 23
CLAY COUNTY
Permit
no, FOS no. Company or owner Well name Location Well data
REMA jKS (cont.)
(5) Much of the drilling was characterized by very hard formations interspersed with porous
zones in which circulation was lost, and drilling was quite slow. Probably this accounts for the fact that drilling was discontinued almost 1, 000 feet short of the originally proposed depth of 4,500 feet.
The average penetration rates in feet per hour for drilling and reaming operations were:
Hole Size Interval Average Penetration Rate ( feet per hour) (inches) (feet) Drilling Reaming
Drilling: 15 0-1549 8.5 10 5/8 1549-3507 6.9
Reaming.
15 to 30 0-326 8.4 15 to 22 326-2031 3.2 10 5/8 to 15 1549-2020 4.5
(6) The top of the Paleozoic section, as determined by the penetration log, was reached at 3,487 feet. A bottom-hole sample at 3, 509 feet consisting primarily of quartzite associated with black shale stringers contained a fossil fragment which, according to Jean M. Berdon of the U. S. 0. S. appears to be part of a large phosphatic brachiopod of a type that is fairly common in the Early Ordovician of Florida; also, the lithologies appear to agree with those in other wells in Florida and Alabama dated as Early Ordovician by means of fossils.
(7) Logs: Induction-Electrical (310'-3,438'); Sonic (1700'-3,4351); Caliper (1,600'-2,228').
(8) Other surveys: Formation tester (test depth, 2,0281;) to recover salt water sample.
CHARLOTTE COUNTY
Permit
no. FGS no. Company or owner Well name Location Well data
310 Gulf Oil Corporation No. 1 Stevens Estate Center of NW of Elev:-approx. 25' SE, sec. 24, T 42 S, above MSL
R 24 E Comp: Jan. 2, 1964 T.D. -12,459'
REMARKS: (1) Casing record: Drove 2 joints (30') of 24" drive pipe and set at 30'. Set 16" conductor pipe at 555' with 200 sacks
of Florida Portland neat cement. Ran (to a depth of 4,115') 4,097. 20' of 9 5/8" 40 pound J-55 casing with 9 5/8"
Howco DV tool and metal petal basket at 1, 773.44'; Cemented around 9 5/8U casing shoe with 300 sacks of Florida Portland neat cement, and also pumped 50 sacks of Florida Portland neat cement through the DV tool at 1, 773.44!.
(Z) The contractor for this well was the Larco Drilling Company.
0
(3) Cores: Took 2 conventional cores at 11, 374-11,417 feet and 12,290-12, 346 feet; no descriptions provided. Attempted z
38 idewall cores, recovering 12, at various depths extending from 8,416 to 12, 347 feet; no descriptions provided.
(4) Drill stem tests run in this hole were:
Recovery, and
Depth in feet and Chokes, Bottom Hole Flowing, time tool was
(part of section tested) in inches and closed-in pressure (PSI) open z
0
11, 320-11, 356 top 1,625-4,809 37 bbls, salt
(Upper Sunniland "pay" 3/8 bottom water in 30 min. 43
zone)
12,184-12, 323 same 5,322-5,498 405 bbls. salt water in
(carbonates included in 1 hr. and 20 min.
lower part of massive
anhydrite section)
(5) Logs: Induction-Electrical, 566-4,115'; Dual Induction- Laterolog, 4,115-12,442'; Integrated Sonic Caliper-Gamma
Ray, 566 12, 395'; Formation Density, 3,150 12, 357'; Open hole temperature, 500 4,110.
OADSDEN COUNTY
Permit
no,. FGS no. Company or owner Well name Location Well data
305 W-6217 C, E. Prince and No, I Ermine, M 2,080' S and 950' 2 of NW Elev: Z10' D, F, Willaim Bradley Owenby corner of sec, Z9, T 2 No Comp: Feb. 26, Munroe ( a co-venture R 3 W, (about 2 miles SE of 1963 Qincy near St. Hwy 268), T, D: 7, 029' (in Lower Trimity- t1
sediments of 0
Lower Cretaceous 0
age),
REMARKS; (1) This test is the second of two wells (the other being the No. 1 Bowman dry hole, terminated at a depth
of 4,196 feet in 1962) drilled by the operators on a 14, 000 acre farmout block secured from the Sun Oil o
Company.
(2) The drilling site was selected on the basis of seismic information as interpreted by the operators, who
hoped to drill an east-west trending normal fault. Well control indicates, however, that this test did
not cut a fault in the Upper Cretaceous section, which contains several prospective horizons. Furthermore, it appears probable that no significant faulting was present to the total depth of the well.
(3) On top of Lower Tuscaloosa sediments this well proved to be 18 feet lower than the Oles and Naylor No. 1
Florida Power Company well, located about 3 miles to the east southeast.
(4) Sample electrical log and drilling time correlations indicate that this well bottomed in possible RodessaPine Island sediments.
(5) Drilling contractor for this hole was the B and N Drilling Company of Laurel, Mississippi; contract price
was $5.00 per foot. Drilling of the well required 17 days, with drilling time varying from as fast as about
5 feet per minute to as slow as 9 minutes per foot.
GADSDEN COUNTY
Permit
no. FOS no. Company or owner Well name Location Well data
REMARKS: (cont.)
(6) This well was converted to use as a water well; a cement plug of 80 sacks of Portland cement was
set from 1, 000 feet up to 756. feet.
(7) Logs: Induction-Electrical (487'-7,OZ8') (8) Other surveys: None 0
0
.9
ORANGE COUNTY
Permit .. .. .
no. FOS no Company or owner Well name Location Well data
W.3673 Geotechnical Corp- No. 1 Terry Center of SW SE Elev: 99, D, F.
oration (former sec, Z1, T 23 S, R 31 E. Comp: Nov. 13, 1955 operator was Warren Recomp: May 1, 1963 Petroleum Corporation) T, D. (orig): 6, 589' T.D. (recomp): 6,582', .
REMARKS: (1) This well was recompleted so that a seismometer could be installed for the Defense Department. The work was
done under a permit granted April 23, 1963 to the Geotechnical Corporation of Dallas.
(2) The original hole, carried to a depth of 6, 589 feet, reached the top of the Lower Cretaceous at 5,445 feet, and the
top of basement at 6, 550 feet, According to Paul L. Applin (1951, p. 2, fig 1) basement in this area consists of o
Pro-Cambrian (?) granite, diorite, and metamorphic rocks.
(3) Casing record for original hole: 20" casing set in a 2411 hole at 198' with 250 sacks of regular cement using a pump
pressure of 1,000 pounds; 13 3/8" stainless steel tubing set in a 17" hole at 596' with 500 sacks of regular cement
using a pump pressure of 1, 000 pounds; 9 5/8" stainless steel tubing set in a 12A4" hole at 3,234' with 400 sacks
of regular cement using a pump pressure of 1,000 pounds.
(4) Additional casing run upon recompletion; Hole was cleaned out to 6, 577'. Circulation was lost at undisclosed interval(s) between 3, 234' (the 9 5/8" casing seat) and total depth; presumably this explains why the reconditioned
hole was not carried approximately 68 feet deeper to the proposed depth of 6, 650 feet.
(5) Logs: Electrical (596'- 6,589'); Microlog ( 1,722'- 6,586'); Gamma Ray-Neutron (1, 225'- 6,588').
(6) Other surveys: 215 cores from 5,215'- 5,608'.
PINELLAS COUNTY- OFFSHORE
Permit
no. FOS no. Company or owner Well name Location Well data
304 California Company- No. 3 Florida State Lat. 28-05', 32" N; Elev:-36',D.F.
Coastal Petroleum Co. Lease 224-B Long. 82'5Z', 50" W(about Comp: April 1963 15,900' W of mean low water T. D: -10,600' (approx.
line at the N end of Honeymoon i, 050' below top of
Island). Sunniland "pay" equivalent).
REMARIKS: (1) Casing record: 26" to 21'; set 13 3/8" at 544' with 350 sacks common cement; set 9 5/8" at 4,386' with 750
sacks common cement
(2) The City of Dunedin rejected the application of the California Company to drill in offshore waters lying within,
the 3-mile boundary limit which it claims, on the ground that drilling activities would be inimical to the development of the $4. 5 million Caladesi-Honeymoon Island complex. The company then obtained a permit from the U. S.
Corps of Engineers to drill at a site 60 feet beyond'the 3-mile boundary claimed by the City; the final location was about 0. 88 mile west southwest of the point at which the company originally had intended to spud the test.
0
(3) Water depth at the well location is 20 feet.
(4) The hole was drilled with the California Company's S-45 barges and derrick supplied with Rowan Drilling Company
motors and drawworks, and on which Schlumberger logging equipment and Halliburton plugging and completion Z
equipment were installed. It is reported that the California Company calculated its cost for drilling and auxilliary equipment used in this operation at $6,000. 00 a day.
(5) On top of a thick shale section, reached at a depth of 9,915' is the No. 3 State Lease 224-B well, (this marker is
370 feet below lithology believed to be the Sunniland "pay zone" equivalent) this test is 246 feet higher in structural
elevation than is the Coastal No. 1 Larsh well, located 16 miles to the southeast. This probably is not the result of a structural anomaly, however, since the difference in structural elevation can be accounted for by a regional
dip of 15 feet per mile.
PINELLAS COUNTY OFFSHORE
Permit
no. FOS no, Company or owner Well name Location Well data
REMARKS: (cont,)
(6) It is possible that a brown clastic lithology, here consisting of argillaceous and slightly calcareous silts which 'T
become predominant at a depth of 10,455 feet, represents the Hosuton Formation (Coahuilan Series of Lower
Cretaceous age). 0
(7) Logs: Induction-Electrical (541-10, 523 feet); Gamma Ray-Neutron (4, 349-10, 317); Sonic (541-10, 291) i.
(8) Other surveys: (a) A velocity survey was run in this hole to a reported depth of about 8, 800 feet. (b) M
Took 48 sidewall samples, with recovery from 17, no shows on florescence reported. O
0
TAYLOR COUNTY
Permit
no. FOS no. Company or owner Well name Location Well data
308 Wgi-1766 Mattaliano No. 1 Buckeye Cellulose NW corner of St2 of Elev: 14' (topo) NE, NEsec. 12, T 4S, Comp:July19,1963
R 4 E. T. D: 67'
Proposed depth: 5, 000'
REMARKS: (1) Casing record: ran 14" to 18'; ran 12" to 50': Then 21 sacks of cement were used with about 5 sacks being poured
into the bottom of the 12" casing (subsequently to be drilled out), and the remaining quantity of approximately 16 0
sacks being grouted behind the two strings of pipe; most of it went behind the 12-inch pipe.
(2) This hole was abandoned at 67 feet after lost circulation in a boulder zone, beginning a short distance below the
12-inch casing seat (at 50 feet), could not be regained within 36 hours of operating time.
(3) The Buckeye Cellulose Corporation haa accepted responsibility for the abandoned hole which will be converted to
use as a fire fighting facility. The water is fresh and drinkable.
C
(4) This well is located on an 80, 000 acre lease lying in the southwestern corner of Taylor County and in the general
area of a gravity high. The operator's primary objectives were to drill a stratigraphic pinchout, or a fault trap, of Atkinson sands containing Woodbine fauna of Upper Cretaceous age.
0
(5) This site is about 50' west of the location originally spudded by this operator as the No. 1 Buckeye Cellulose (on
July 4, 1963). This original location was abandoned after only 16 feet of depth because drilling in the loose gravel CA
caused the cellar area to wash out rather badly; the contractor did not want to continue operations which he felt
might cause his rig to tip over.
(6) The rotary rig contractor during these operations was the B and N Drilling Company, of Laurel, Mississippi. It
is understood that contract price was $5. 00 per foot.
(7) Logs: None
(8) Other surveys: None
TAYLOR COUNTY
Permit
no. FS no. Company or owner Well name Location Well data
309 W.6505 Mattaliano No, Z Buckeye Cellulose 1800,32' N of S line and Elev; 14' 2286. 031 S of E line of Comp: Sept. 5,1963 sec. 11, T4S, R4 E. T,D:180' (in Ocala Limestone
of Eocene Jackson MI
age). 0
REMARKS: (1) This hole was abandoned because of crookedness. The site was 32 feet south of the same operator's subsequently drilled No. 2-A Buckeye Cellulose well.
(Z) Casing record. Drove 16" (ID) casing to 15'4"; ran 12" to 110'. Upon abandonment, only the 16" casing was
left in hole; the 12" casing had been pulled in an attempt to straighten the hole.
(3) This hole was drilled with cable tools, with Rowe Brothers of Tallahassee, as contractor; contract price
was reported to be $20.00 an hour.
(4) This well was used to supply water for the drilling of the No. 2-A test. Fresh water rose in the hole to a
height of 5 feet below surface, and pumping through 3-inch tubing did not appear to lower this level. The
well was turned over to the Buckeye Cellulose Corporation as a fire fighting facility.
(5) Surveys: None
TAYLOR COUNTY
Permit
no FGS no. Company or owner Well name Location Well data
309 Miattaliano No. 2-A Buckeye 1832. 32' N of S line Elev: 141 (topo) Cellulose and 2286. 03' W of E Comp: Dec. 20, line of sec. 11, T 4 S, 1963
R4 E. T. D: 4,115' (in
Lower Cretaceous)
REMARKS: (1) This site is 32 feet north of the location of the same operator's No. 2 Buckeye Cellulose well, a cable
0
tool hole abandoned on September 5, 1963 at 180 feet because of crookedness.
(2) Casing record: Operator set three welded-together barrels in a hand-dug hole with 35 sacks of common
cement; this prevented the cellar area from caving in as it did in the No. 1 Buckeye Cellulose well. Set 8 5/81 0 with 130 sacks common cement mixed with 2% Ca C12. Z
(3) According to the Induction-Electrical log, and also the drilling time log, this well reached the top of the
Upper Atkinson sand at 3,400 feet. On this marker, the well is at about the same structural elevation as the 0 Humble Oil and Refining Company, No. 1 Hodges well located about 13 miles to the east. Regional control
indicates that there may be a saddle between the two wells.
(4) Mud circulation history: z
0-96 feet No circulation
96-120 feet Circulation established CR
120-4,115 feet (T. D. ) Poor circulation established after cotton seed hulls were added to the mud.
(5) Plugging information: set 75 sacks of common cement from 500 to 700 feet; set 10 sacks from 240 to 260 feet;
set 7 sacks to seal the casing at the surface.
(6) Logs: Induction-Electrical to 2501-3,945'.
(7) Other surveys: Took 9 sidewall samples, with recovery from all; all consisted of chalk or
shaly chalk, some with a sulfur odor; no shows.
APPENDIX II
INFORMATION CIRCULAR NO. 45 45
THE "S-45",
THE OFFSHORE RIG USED BY THE CALIFORNIA COMPANY
IN DRILLING THEIR NO. 3 STATE LEASE 224-B WELL
The investment of The California Company in this rig, the S-45, is about one-quarter of a million dollars, and this is for the barges and derrick only. This does not include other items installed and leased to The California Company but owned by other companies such as:
Rowan Drilling Company motors and drawworks
Schlumberger logging equipment
Halliburton plugging and completion
The California Company figures its cost for equipment operating the rig at $6,000.00 a day.
The rig is serviced by an operating crew of about twenty men. The California Company uses only supervisory and technical personnel, consisting of two engineers and two geologists. Rowan provides tool pushers and roughnecks. Roustabouts are supplied by one labor contracting firm, and cooks and helpers are supplied by another such firm. Yet another firm provides the three auxiliary transportation boats. The men work 12 days and are off 6.
The unit consists of a standard derrick about 125 feet high and the barge serves as a stable platform. The barge also contains a large pipe deck, helicopter port, motor room, and quarters for personnel. Access from transport boats to the deck of the unit is by crane. Personnel hold onto the outside of a birdcage-like rope wicker basket. A lift of about 40 feet is required to transfer personnel to the deck of the unit.
The unit rests on four large pontoons which are filled with water and sunk to rest on the ocean floor. Extending upward from each of thesee pontoons are two straight legs, each of which appeared to be approximately 2 feet in diameter. These legs are jacked upward, so that the upper part of the unit rests on them. The raising is accomplished by hydraulic jacks which are similar to mud pumps in operation. To dismount the rig, an operation which on this job required about 15 hours, the water is pumped from the foundation pontoons and they are floated. The derrick is left upright. In case of a bad storm, the pontoons are again sunk, and the unit stays in one place until the storm abates. The unit is towed from one location to another by two tugs at a speed of about 3 miles an hour. The trip from Tampa to New Orleans requires about 8 days.
This unit drilh-d in water 20 feet deep, about 3 miles offshore, to a depth of 10,600 feet.
Other offshore drilling units: The California Company has two other units, both larger than this one. The largest is about four times the size of this unit, has a complement of sixty men and will drill in water IO to 200 feet deep. There are oil well drilling units which will drill in water 500 feet deep or more, according to the Winter, 1963 publication circulated to the employees of the Standard Oil Company (Indiana). Shell has leases covered by 600 feet of water offshore from Louisiana.
For purposes of researcji, the Mohole rig drilled in water more than 10,000 feet deep, cutting cores through about 500 feet of section; it is reported the Mohole rig will drill, ultimately, an offshore hole 3,000 feet deep in water about 13,0.00 feet deep (Bascom, 1961).
'I
APPENDIX III
48 FLORIDA GEOLOGICAL SURVEY
This is the standard form as revised in 1963, and contains
the minimum requirements for oil and gas leasing. This form is subject,, in individual cases, to the modification of specified requirements and to the inclusion of additional requirements,
provided such changes do not conflict with the statutes.
INFORMATION CIRCULAR NO. 45 49
STATE DRILLING LEASE
NO.
THIS INDENTURE OF LEASE, made pursuant to the provisions of Chapter 22824, Laws of Florida, Acts of 1945, as amended, by and between
hereinafter referred to as "Lessor" and
hereinafter referred to as "Lessee".
WITNESSETH: Whereas, Lessor has performed all acts required by law as conditions precedent to execution of this lease and whereas, sealed bids submitted for this lease were duly opened by Lessor at a meeting for that purpose, held in the City of allahassee, Florida, on the day of A. D. 196 and it was thereupon, found and determined that
has submitted the highest and best bid for the lease on said premises, which bid is by the said Lessor accepted and approved.
NOW, THEREFORE, the Lessor on this the day of
196_, by authority of said law and in consideration of the payment by Lessee, of the sum of cash consideration, receipt whereof is hereby acknowledged, and of the royalties, covenants, stipulations and conditions contained herein, and hereby agreed to be paid, observed and performed by Lessee, does hereby demise, grant, lease and let exclusively unto the said Lessee, the said land described in Exhibit A, which is made a part hereof, for the purpose of investigating, exploring, prospecting, drilling of bore-holes for the discovery and production of oil, gas, sulphur, salt and/or other brines from the leased premises and for the laying of pipe lines, building of roads, tanks, power stations, communications equipment and other structures and equipment needed to produce, save,
50 FLORIDA GEOLOGICAL SURVEY
take care of, treat, transport and own said products and if the lands covered by this lease exceed 640 acres, to liouse its employees engaged in drilling and/or production.
For the purpose of calculating rental payments hereunder, the
land covered by this lease is estimated to comprise acres, whether it actually comprises more or less, and each tract described in Exhibit A is estimated to comprise the number of acres stipulated in said Exhibit A, whether it actually comprises more or less.
The term *products" used herein shall in the absence of other meaning by immediate context, include oil, gas, sulphur, salt and/or other brines.
The term "production' used hereinafter shall mean only such oil, gas. sulphur, salt and/or other brines as shall have been reached by the drilling of a bore-hole and that such products have been made available and accessible and can be removed, in commercial and paying quantities through and by means of a drilled hole.
1. Subject to the other provisions herein contained, this lease shall be for a term of years from the date hereof (called the primary term) and as long thereafter as there is prouuction from said land or operations are being carried on in good faith and in a workmanlike and diligent manner with no cessation of more than thirty consecutive days, it being understood that this lease will terminate at the expiration of its primary term in the absence of drilling or reworking operations or production from said land in paying quantities.
Upon the expiration of the primary term or at any time or times thereafter when this lease is not otherwise maintained, this lease shall remain in force only as long as operations for drilling or reworking are prosecuted on said land or upon land pooled with the land herein leased or any part thereof, with no cessation of more
than sixty (60) consecutive days, but in the absence of production in paying quantities upon completion of such drilling or reworking
operations, in pxugress on the date of expiration of the primary
INFORMATION CIRCULAR NO. 45 51 term, then this lease shall automatically terminate upon the lapse of sixty days in which no reworking or drilling has been prosecuted.
No drilling operations shall be conducted upon any submerged
lands leased herein, under the public waters, landward of any bulkhead line heretofore or hereafter established pursuant to statutory authority until Lessee has filed with Lessor written consent of the owner of upland to which such drilling location is riparian.
No drillingoperation shall be conducted within any public road right of way upon or across submerged lands in the public waters nor at any location in the public waters which will materially interfere with any riparian or other right vested in any owner, nor shall the grant of this lease interfere with any right of the Lessor to make conveyances of submerged lands pursuant to statutory authority, nor any right to dredge and/or fill submerged lands in compliance with statutes applicable thereto and all such parcels so sold shall automatically be released from the terms and conditions of this lease upon the vesting of title to said parcels in such purchasers and appropriate rental adjustment made at next anniversary date of this lease. Such sales shall be made subject to the express provision that during the effective period of this lease, no lease for oil, gas, sulphur, salt and/or other brines shall be made by the purchaser thereof to other than the holder of this lease.
2. The Lessee shall commence and complete operations for the drilling of at least one test well on the lands covered hereby within the first two and one-half years period of the term of this lease, and shall commence and complete operations for the drilling of at least one additional well in each succeeding two and one-half years period of the term of this lease until the total number of wells drilled shall equal one-half the number of sections of land embraced in this lease, and, after commencing such operations shall prosecute same in good faith and with reasonable diligence and in a workmanlike manner to discover and to develop said land for production until
52 FLORIDA GEOLOGICAL SURVEY such well be completed or abandoned. The Lessee at the time the drilling of each well is commenced shall file with the Lessor a written declaration describing the two sections of land to which such well shall apply. If no well shall be commenced and continued to completion with reasonable diligence and in a workmanlike manner to discover and develop said land for production until such well is completed or abandoned within the first two and one-half years period of the term of the lease, the entire lease shall be void. If no additional well shall be commenced and continued to completion with reasonable diligence and in workmanlike manner to discover and develop said land for production until such well is completed or abandoned, then this lease at the end of such applicable two and one-half years period of the term of the lease shall become forfeited and void as to all of the land covered hereby, except that upon which wells have been drilled in accordance with the provisions of said Chapter 22824, Laws of Florida, Acts of 1945, as amended, that is to say, this lease shall, in such event, become forfeited and void as to all lands covered hereby, except those included in the sections designated by the Lessee, as hereinabove provided, as the sections to which a well, commenced and completed in accordance with the provisions of this Section 2 shall apply. It is further understood and agreed that the only penalty for failure to drill such well or wells is the cancellation or forfeiture of this lease or a portion thereof, as hereinabove provided.
All wells required to be drilled under the provisions of this Section 2 shall be drilled in an efficient, diligent and workmanlike manner and in accordance with the best practice to a depth of 6000 feet or to the top of the Lower Cretaceous, whichever is deeper as determined by the State Geologist, before abandonment thereof, unless production in paying quantities has been accomplished at a lesser depth.
3. This lease shall terminate as-to both parties on any anniver-
INFORMATION CIRCULAR NO. 45 53 sary date hereof as to all land covered hereby on which rentals are payable hereunder on such anniversary date as hereinafter provided, unless Lessee shall on or before anniversary date pay in advance to Lessor an annual rental of $ per acre,
which shall be increased or decreased as hereinafter provided, for the number of acres included in such land on which rentals are so payable.
After the first two years of the term of this lease, the rental above provided for shall be increased by 5 % of such original amount annually, unless increase, in compliance with requirements of Sec. 253.53 Florida Statutes, 1961, is required in the provisions of the preceding paragraph herein.
Rental shall be payable under this lease on the anniversary date on all lands then covered by this lease, except land in a section applicable to a drilled well or upon which section production in paying quantities has been obtained or upon which section drilling or reworking operations have been conducted in good faith and in workmanlike manner within thirty (30) days next preceding the anniversary date.
The rentals hereinabove provided for may be paid by check or draft of Lessee, with exchange, payable to Lessor and mailed or delivered to Lessor at its office in the Elliot Building in Tallahassee, Florida, on or before the anniversary date for which such rent is payable.
The cash consideration is the consideration for this lease,
according to its terms, and shall not be allocated as a mere rental for a period.
Lessee may relinquish the rights granted hereunder, either
as to -the entire area covered hereby-or any portion thereof at any
54 FLORIDA GEOLOGICAL SURVEY
time by filing a release for record in the County where the land released is situated and filing a duplicate original, certified copy, or photostatic copy, of the release with Lessor within 30 days from the date it is filed for record, and thereafter no rental shall be payable hereunder as to the acreage so released and Lessee shall be released from further obligations as to such release acreage.
4. If after production is obtained from the land covered by
this lease, such production should cease, the lease may be maintained
if it be within the primary term of commencing or resuming the payment of rentals or commencing operations for drilling or reworking said land, in good faith, and in a workmanlike and diligent manner on, or before, the anniversary date next ensuing after the expiration of sixty days, or if it be after the expiration of the primary term, this lease may be maintained in force and effect by co-mnencing and continuing operations for drilling or reworking said land for production on, or before, sixty days after the cessation of production and prosecuting same with diligence and in a workmanlike manner with no cessation for moi than thirty consecutive days, and if such operations within a reasonable time thereafter result in production
from this lease in paying quantities, this lease shall remain in
effect thereafter as long as there is production therefrom in paying
quantities.
The amount of the annual rental payments to be made under this
paragraph shall be governed by the provisions of Section 3 of this
lease5. When production from the land covered by this lease is
secured, the Lessee agrees to pay or cause to be paid to Lessor,
during the term hereof, the following royalties:
(a) On oil 1/8 of the gross production from this lease, the same to be delivered to Lessor at the wells or to the credit of Lessors into the pipe
line to which the wells may be connected or in
lieu of delivering such royalty oil in kind, Lessee
INFORMATION CIRCULAR NO. 45 55
may pay Lessor t1-i value thereof at the wells on
the date of production.
(b) On gas, including casinghead gas or other gaseous substance, produced from this lease and
sold or used off the premises or for the extraction of gasoline or other products therefrom, the value
at the well of 1/8 of the gas so sold or used.
On gas sold at the well, the value thereof shall
be 1/8-of the amount realized from such sale.
(c) On sulphur, salt and/or other brines, $_per long ton, marketed.
The royalties hereinabove provided for shall be computed after deducting any oil or gas reasonably used for the production thereof. Lessee shall have the right to use any water that may be on the premises for operation hereunder and the right to use so much of the surface of the land covered hereby as may be reasonably necessary for developing and operating on this lease for production and for storing, marketing, and transporting the products therefrom, such use to be conducted under conditions of least injury to the surface of the land.
It is agreed that if Lessor or the State of Florida owns the
title to or an interest in the oil and gas under the land covered by this lease less than the entire fee simple estate, then the royalties and rentals herein provided for shall be reduced proportionately.
6. All royalties due Lessor shall be paid promptly and invoiced in accordance with acceptable practice of the oil and gas industry, subject however, to accounting and audit as the Lessor may reasonably require.
7. For the purpose of examining the production therefrom, Lessor or their authorized representatives or agents, shall, at all reasonable times, have access to the wells, gauge books, oil and gas meters, tanks, reservoirs, sump holes, buildings, and other structures and appliances placed upon the land herein leased by Lessee.
8. The State shall have a first lien upon all production from
56 FLORIDA GEOLOGICAL SURVEY the lands described in Exhibit A to secure the payment of all unpaid royalty and other sums of money that may become due under this lease.
9. Lessee shall have the right at any time while this lease is in force and effect, or within a reasonable time after the expiration of this lease, to remove all property and fixtures placed by Lessee on the land covered hereby, including the right to draw and remove all casing, provided Lessee has complied with all obligations under this lease at the time of such removal. When required by Lessor, Lessee will bury all pipe lines below ordinary plow depth, and no well shall be drilled within two hundred (200) feet of any residence or barn now on said land without Lessor's consent.
10. This lease contemplates the reasonable development of the production from the land described in Exhibit A, including the drilling of as many wells as a reasonably prudent operator would drill under the same or similar circumstances. In the event production in paying quantities should be brought in on adjacent land and within three hundred (300) feet of and draining the leased' premises, or acreage pooled therewith, Lessee agrees to drill such offset wells as a reasonably prudent operator would drill under the same or similar circumstances.
11. A log of each well drilled on this lease shall be filed with the Lessor, at its office in Tallahassee, Florida, within thirty (30) days after such well shall have been completed or abandoned, and the correctness of such log must be sworn to by Lessee, its agent or driller, and it must be accompanied by a plat showing the exact location of said well.
12. Lessee is hereby given the right to pool or combine the acreage covered by this lease or any parts thereof with other land, lease or leases in the immediate vicinity thereof, and whether State land or privately owned land, when reasonably necessary to conform with drilling units established by the State Board of Conservation or to conform with any pooling or intergration order issued by such Board.
INFORMATION CIRCULAR NO. 45 57
Operations for drilling, reworking or production on any part of a pooled unit composed in whole or in part of the land covered hereby shall be considered as operations for drilling, reworking or production on land covered by this lease and the entire acreage constituting such unit or units shall be treated for all purposes as if the same were included in this lease, except that in lieu of he royalties elsewhere herein specified, Lessor shall receive on production from each of such units the proportion of the royalties herein stipulated that the amount of their ownership in the mineral rights in the acreage placed in the particular unit involved bears to the entirety of the mineral right in such unit.
13. In developing the lands covered hereby, Lessee shall be liable for all damages to lakes, shores pr beaches on or adjacent to said lands proximately resulting from any negligent acts or omissions of Lessee in its operations on said lands, and likewise, said Lessee shall be liable for all damages to crops or citrus groves on or adjacent to said lands proximately resulting from negligent acts or omissions of Lessee in its operations on said lands. It is further agreed that if for any cause, whether from negligence or not, any oil, salt water or other similar substance should escape and flow into any lake, body of water, or onto any beach or shore on or adjacent to the lands covered hereby, then in such event, the Lessee shall be obligated immediately to use such methods as a reasonably prudent operator would use under the same or similar
circumstances to remedy and abate such pollution.
14. This lease shall not be assigned in whole, or in part, on
any land covered hereby, until and except the Lessor shall approve
and consent in writing to such assignment. Subject to the preceding sentence, the covenants, conditions, and agreements contained herein shall extend to and be binding upon the successors or assigns of the
5a FLORIDA GEOLOGICAL SURVEY Lessee herein.
In the event of assignment hereof in whole or in part, in accordance with the provisions hereof, liability for breach of any obligation hereunder shall rest exclusively upon the owner of this Iese or a portion thereof, Who commits such breach. If this lease is assigned in accordance with its terms as to a segregated portion of the land covered hereby, rentals payable hereunder shall be apportionable as between the several leasehold owners ratably on an acreage basis and default in rental payment by one shall not affect the rights of other leasehold owners hereunder.
15. If Lessee is unable to secure a valid drilling permit to drill a well, or if by reason of war, labor troubles, or lack of materials caused either by the exercise of governmental authority or by strikes, lack of labor, or transportation, or as a result of flood, storm, fire or blowout, the Lessee is prevented from commencing or completing operations for the drilling of any well or wells required under this lease, then the time during which Lessee is so prevented from carrying out the terms of said lease shall: nbt be counted against Lessee, and Lessee shall automatically have that additional period within which to comply with the terms of this lease. In this connection, Lessee shall at all times be required to use reasonable diligence to overcome such difficulties as promptly as the circumstances will permit.
16. If the Lessee should fail or refuse to make payment of any
sum due either as rental on this lease or for royalty on the production within thirty days after it shall become due, or if the Lessee or its authorized agent should knowingly make any false return or false report concerning production, royalty, or drilling, or if the Lessee should fail or refuse to drill any offset well or wells in good faith as required by law and the rules and regulations adopted by the State of Florida, or if the lessee or its agent should refuse the
INFORMATION cIRQULAR NO. 45 59 proper authority access to the records pertaining to operations under this lease, or if such Lessee or its authorized agent should knowingly fail or refuse to furnish the log of any well, as provided herein, or if Lessee shall knowingly violate any of the material provisions of this lease and should Lessee fail, within thirty days after written notice to Lessee by Lessor setting out the matters as to which Lessor considers Lessee in default, to take reasonable action to remedy any such default this lease shall be subject to forfeiture by the Lessor, and when forfeited the area shall again be subject to lease to the highest bidder, under the same regulations controlling the original sale of leases. However, when a proper showing is satisfactorily made to Lessor, the rights of Lessee under this lease may be reinstated, provided the rights of third parties have not intervened.
17. Notwithstanding any of the provisions, covenants or
stipulations contained in this lease, should there be any conflict in any of the provisions of this lease with the law governing the issuance and operation of leases on the area herein described, in that event the provisions of such law shall be written into this lease and shall control.
18. The Lessee joins in this lease for the purpose of indicating its assent to all the terms and provisions thereof, and agrees to be bound thereby.
19. All terms and express or implied covenants of this lease shall be subject to all Federal and State law-,s, executive orders, rules or regulations, and this lease shall not be terminated in whole, or in part, nor Lessee held liable in damages, for failure to comply herewith, if compliance is prevented by, or if such failure is the result of any such law, order, rule or regulation.
60 FLORIDA GEOLOGICALSURVEY
IN WIESS WEREOP, the
the Lessor; have hereunto subscribed their names and have caused the seal of the .Department of Agriculture of the State of Florida to be hereunto affixed, and the Lessee has caused this instrument to be executed in its name by its President,- and its corporate seal to be affixed, attested by its Secretary,
as of the date aforesaid.
APPENDIX IV
INFORMATION CIRCULAR NO. 45 63
OIL COMPANIES WITH EXPLORATION, PRODUCTION
OR RESEARCH OFFICES IN FLORIDA
Oil companies with exploration offices in Florida in 1963 were Coastal Petroleum Corporation, Mobil Oil Company, Sun Oil Company, and The California Company.
The office of The California Company, located in Pensacola, Florida, will close as of January 10,1964, after which date correspondence with the company should be addressed to:
P. 0. Box 822
Jackson, Mississippi 39205
Mr. M. D. Horton, formerly of the Pensacola office, will be in charge of matters pertaining to Florida.
The only producing company in Florida is the Humble Oil and Refining Company, operator of Sunniland field.
The Gulf Oil Corporation and the International Petroleum Company, Limited, have established important foreign exploration offices (primarily for activities in the Western Hemisphere) in Coral Gables. The Shell Oil Company maintains, in Coral Gables, a very active research staff interested primarily in studies related to oceanographic work.