API RP 4A Derricks

9009274 000b428 459

API Std. 4A Sixteenth Edition

April 1967

API

SPECIFICATION

for

STEEL DERRICKS

OFFICIAL PUBLICATION

REG. U.S. PATENT OFFICE

AMERICAN PETROLEUM INSTITUTE

Washington, D. C.

Issued by AMERICAN PETROLEUM INSTITUTE

Division of Production 300 CoFgan Tower Building

Dallas, Texas 75201

Copyright American Petroleum Institute Reproduced by IHS under license with API Licensee=Aramco HQ/9980755100

Not for Resale, 09/03/2005 06:33:45 MDTNo reproduction or networking permitted without license from IHS

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Supplement 1 to

API Std 4A (Sixteenth Edition) SPECIFICATION

for

STEEL DERRICKS Foreword

This supplement covers an editorial changein API Std 4A (Sixteenth Edition, A ri1 1967): Specification for Steel Derricks, adopted at t i e 1975 Standardizahon Con- ference. It also contains a correction in the sixteenth

. edition and a current list of authorized manufacturers.

P a g e 3. Replace the material in the Foreword with the fo lb w ing:

a. This specification is under the jurisdiction of the API , Committee on Standardization of Drilling and Semcing Equipment.

b All new designs of all standard steel derricks, s y l steel derricks, portable masts, and substructures s all be in accordance with the provisions of A H Spec 4E: Specifwation for Drilling and Well Servicing Struc- tures.

c. Related publications under the 'urisdiction o f the committee on Standardization of Dnljing and Semcing Equipment are:

Std 4D: Specification for Portable Masts. Covers requirements on guyed and freestanding ortable masts, including stipulations on materials,

gesign features, loadings, and allowable stresses. Included also are recommendations on care and use of guyed and freestanding portable masts.

Spec 4E: Specification for Drilling and Well Servicing Structures.

Covers steel derricks, ortable masts, and substructures that shall be dezned as structures suitable for

drilling or well servicing. It is written to meet the requirements of present and future o erating conditions, such as deeper driìlin offskore drilling from floating devices, and the e&& of earthquakes, storms, and other adverse operating conditions.

Page 3, Par. 2.3. Change USAS to ANSI.

Page 3, Footnote below Par. 2.6. Change footnote to read as follows: TANSI standards are available from American National Standards Institute, 1430 Broadway, New York, NY 10018.

Page 6, Par. 3.21. Change the figure 11.76 to 11.66.

Pa e 6, Par. 3.24. In italicized Note, change the figure lLf6 to 11.66.

Page 23, Appendix C. Replace the Authorized Manufacturer list in Appendix C with the following current list.

Following is a list of manufacturers authorized to use the API monogram on steel derricks a s of December 31, 1975. Derricks, Inc., Slidell, LA Escher B.V., The Hague, Holland Nederhorst Staal Constructie B.V., Gorinchem, Holland Pyramid Derrick & Equipment Co., Houston, TX Riverside Industries, Inc., Tulsa, OK S encer-Harris Machine & Tool Co., Inc., Gfadewater, TX

Issued by AMERICAN PETROLEUM INSTITUTE

Production Department 300 Corrigan Tower Building

Dallas, Texas 75201



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9009274 O006430 007

2 American Petroleum Instituts

TABLE OF CONTENTS

Page

Note

This edition supersedes the 16th edition dated January 1969, and Supplement 1 thereto dated January 1960.

This specification was originally adopted as tentative in June 1926, and as standard in December 1926. The 1st edition of API Std 4 was published in 1927 and revised editions were issued in 1928,1929,1930,1931, 1934, 1935, 1936, 1938, 1940. 1942, 1944, 1947, 1962, and 1969.

This publication may be reproduced in whole OT in part, except that the “Officìal Publication” monogram UPpeUdng on the out-skk cover %y not be reproduced. Ali reproductions shall c a m the statement, “Reproduced bg permission from API Std 64: Specification for Steel Derricks.” Thk pemnksion does not include the right to reproduce this specification m a separate publimtion for resale w as a tyam&ioon. Suoh fight granted only 012 special authorization.



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9004274 000b43L T 4 3

3 ._ - - Std 4A: Steel Derricks _ _ _ _ - _-

API SPECIFICATIQN FOR STEEL DERRICKS

Foreword I Std 4D: Specification for Portable Masts. a. This specification is under the jurisdiction of

the API Committee on Standardization of Drilling and Servicing Equipment.

b. A related publication under the jurisdiction of the Committee on Standardization of Drilling and Servicing Equipment is:

SECTION 1

SCOPE 1.1 Coverage. This specification covers steel der-

ricks and steel substructures. I t includes stipulations on materials, design features, loadings, and allowable stresses. Recommended practices on the erection, care, and use of steel derricks are included as an appendix.

1.2 Policy. American Petroleum Institute (API) specifications are published as an aid to procurement of standardized equipment and materials. These specifications aye not intended to inhibit purchasers and producers from purchasing or producing products made to specifications other than API, and nothing in any API specification is intended to in any way inhibit the purchase of products from companies not authorized to use the API monogram.*

1.3 Nothing contained in any API specification is to be construed as granting any right, by implication or otherwise, for the manufacture, sale, or use in

*The API monogram- mark of the American Petroleum Institute.

-is a registered trade- @

connection with any method, apparatus, or product covered by letters patent, nor as insuring anyone against liability for iniringement of letters patent.

1.4 API specifications may be used by anyone desiring t o do so, and every effort has been made by the Institute to assure the accuracy and reliability of the data contained in them. However, the Institute makes no representation, warranty, or guarantee in connection with the publication of any API specification and hereby expressly disclaims any liability or responsibility for loss of damage resulting from their use, for any violation of any federal, state, or municipal regulation with which an API specification may conflict, or for the infringement of any patent resulting from the use of an API specification.

1.5 The use of the API monogram is a warranty by the manufacturer to the purchaser that the manufacturer has obtained a license t o use the monogram and, further, that the product which bears the monogram conforms to the applicable API specification. However, the American Petroleum Institute does not represent, warrant, or guarantee that products bearing the API monogram do in fact conform to the applicable API standard or specification.

SECTION 2 MATERIAL

2.1 Shapes, Plates, and Bars. Structural materials for derricks shall conform to applicable ASTM or API specifications covering steel shapes, plates, bars, o r pipe. Other steels not covered by ASTM or API specifications may be used provided the chemical and physical properties conform to the limits guaranteed by the steel manufacturer. Structural steel shapes having specified minimum yield strength less than 33,000 psi or steel pipe having a specified minimum yield strength less than 35,000 psi shall not be used.

2.2 Steel Castings. Steel castings shall conform to, or shall have physical properties at least equal to, grade 60 - 30, ASTM A 27: Specification f o r Mild- to Medium-Strength Carbon-Steel Castings for General Application.'

2.3 BoIting. Bolting shall conform to grade A, ASTM A 307: Specification f o r Low-Carbon Steel Externally and Internally Threaded Standard Fas- teners,* except that when hexagon nuts are furnished, they shall conform to the dimensions for the Heavy Series of USAS B18.2: Square and Hexagon

*ASTM specifications are obtainable from American Society of Testing Materials, 1916 Race St., Philadelphia, Pa. 19103.

(Previously contained in ALPI Std 4) Covers requirements on guyed and free-standing portable masts, including stipulations on materials, design features, loading, and allowable stresses. Included also are recommendations on care and use of guyed and free-standing portable masts.

Bolts and Nuts.? When so agreed upon between the purchaser and the manufacturer, the bolting shall be of higher strength, but in conformance to the dimen- sional requirements as above.

2.4 Shank diameters of bolts and pins shall not be less than shown in Table 2.1.

TABLE 2.1 BOLT AND PIN SHANK DIAMETER

1 2 - Nominal Diameter Minimum Shank

of Bolt, in. Diameter, in. % 0.3624 % 0.4852 Y3 0.6080 .-

%i 7/8

1

0.7316 0.8550 0.9778

2.5 All bolting shall be hot-dip galvanized in accordance with ASTM A 153: Zinc Coating (Hot Dip) on Iron and Steel Hardware.

TUSAS standards are available from America National Stand- ards Institute, 1430 Broadway, New York, N. Y. 10018.



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~ ~~

9009274 O006432 98T

8 American petroleum Institute

SECTION 3 STEEL DERRICKS

3.1 Derrick Sizes. Derricks shall be furnished in the sizes shown in Table 3.1, as specified on the purchase order.

NOTE: Derrick sizes 19 and 20 were desìg- nated í8H and 19, respectively, in the 13th edi- t i on o f S td 4.

3.2 Derrick Nomenclature. The following nomenclature is recommended for use on purchase orders and drawings. Dimensions of derricks should be designated as shown in Fig. 3.1.

Symbol = Height-top of floor joists

tom of water-table beams.

= Base square.

= Window opening.

= Water-table opening.

= Gin-pole clearance.

to bot-

c.77 FIG. 3.1 DERRICK DIMENSIONS

3.3 Derrick Height. The height of the various sizes of derricks shall be as shown in Table 3.1. The height A shall be the distance along the neutral axis of the derrick leg from the top of the derrick floor joists to the bottom of the water-table beams or bumpers.

3.4 Base Square. The base square for the various sizes of derricks shall be as shown in Table 3.1. Base- square dimension B shall be the distance between the neutral axis of adjacent legs at the top of the derrick floor joists.

3.5 Water-Table Opening. The dimensions of the water-table opening for the various sizes of derricks shall be as shown in Table 3.1. The dimensions shall be the inside or in-the-clear measurement of the opening in the water table.

TABLE 3.1 DERRICK SIZES AND GENERAL DIMENSIONS

1 2 R 4 - Nominal Water-Table

Derrick Height Base Square Opening Size No. A B D -

f t -~ in. f t in. f t in. 10 80 - o 20 - o 5 - 6

87 - o 20 - o 5 - 6 12 l1 94 - o 24 - O 6 - 6

122 - o 24 - O 5 - 6 18 26 - O 5 - 6

5 - 6 18A 136 - O 30 - O 140 - O 30 - O '7-6

30 - O 6 - 6 26 189 - O 37 - 6 7 - 6

l6 136 - O

l9 147 - O

Tolerances: A, I 6 in.; B, 1 5 in.; D, f 2 in.

3.6 Gin Pole. The gin pole shall be constructed so as to extend across the center of the water-table opening. The minimum clearance1 between the horizontal header of the gin pole and the tops of the water-table beams shall be 8 f t O in. for derricks under 122 f t in height, 10 f t O in. for 122-ft derricks, 12 f t O in. f o r 136-ft derricks, and 17 f t O in. for 140-, 147-, and 189-ft derricks.

3.7 Derrick Windows. Derrick windows shall be designated as shown in Fig. 3.2. For the purpose of nomenclature, the height of the opening of type A windows is 23 f t 8 in. minimum, with a plus tolerance of 3 f t 6 in. Type A windows having openings higher than 23 f t 8 in., with a plus tolerance of 3 f t 6 in., should be designated by suffixing a numeral repre- senting the window height in feet.

Y-WINDOW DRAW WORKS WINDOW

TYPE A TYPE C

DRAW W O R 6 WINDOW LADDER WINDOW

TYPE D TYPE E

141-361 FIG. 3.2 DERRICK WINDOWS

3.8 Typical Derrick-Window Arrangements. Typi- cal derrick-window arrangements are shown in Fig. 3.3.

GULF C O A S T OR MID- CALIFORNIA ROTARY PRODUCTION CONTINENT ROTARY DRILLING

FIG. 3.3 DERRICK WINDOWS

3.9 Window Opening for Rotary Drilling. For rotary drilling the minimum height of window opening, measured in the clear parallel t o the centerline of the derrick side from the top o f the derrick floor joists, shall be 23 f t 8 in. for 136-ft and smaller derricks, and 26 f t 6 in. for 140-, 147-, and 189-ft derricks.

3.10 Clear Opening on Draw Works Side. Der- ricks for rotary drilling shall be so designed that the clear rectangular opening on the draw works side of 94-, 122-, and 136-ft derricks shall be a minimum 10 f t O in. each side of the centerline of the derrick, and 7 f t 6 in. above the top of the floor joists. For 140-, 147-, and 189-ft derricks, the area on the draw works side between the derrick legs, the first girt, and the floor joists shall be clear of all braces or cross members.

IIf desired, higher gin poles may be secured on special order.



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____ Std 4A: Steel Derricks 5

3.11 Foundation Bolt Settings. Each derrick corner shall be designed to accommodate foundation bolts in the locations shown in Fig. 3.4. Each derrick leg shall be provided with the number of bolts of the diameter shown in Fig. 3.4. Bolt lengths shall be such as to provide a minimum length of embedment in concrete of 20 in. for 1-in. bolts; 25 in. for l%-in. bolts; 30 in. for l%-in. bolts, and 40 in. for 2-in. bolts. The anchor bolts shall have means for adequate anchorage in the concrete, which shall be equal to or be in accordance with USAS A89.1: Building Code Requirements for Reinforced Concrete (ACI 318- 56) *.

- i c t L ' 8 ' -

' - 1 . .. . . .,-.. &$'

6 NOMINAL BASESOUARE - i O " i i ' 8 '

TWO I " OR I 114'' BOLTS AT

I 318" HOLES IN BASE PLATE

-0 1 EACH CORNER i

i r 6"--

80;87-,94-, lez-, AND 136-FT. DERRICKS

- IO' f. Ive" J

NUL BA5

L 6"- I HOLES IN BASE P L A T E

140-FT. AND 147-FS OE-

N O M I N A L BASE SQUARE

FOUR 2" BOLTS AT E A C H CORNER

N O M I N A L BASE SQUARE

FOUR 2" BOLTS AT E A C H CORNER

2 38" HOLES IN B A S E PLATE b 6 " + 1 :

I89-FT. OERRICK

FIG. 3.4 FOUNDATION BOLT SETTINGS FOR

DERRICK CORNERS 3.12 Derrick Weight. The weight of an unrein-

forced derrick shall be that of all leg sections, all girts, all bracing members, water-table beams, gin pole, ladder, base plates, and bolts and clamps for fastening above members, all with the protective covering applied.

3.13 Base Plates. Base plates f o r derrick legs shall be square, except where the purchase order stipulates that one corner be cut off t o accommodate dead line anchor bolts; the thickness and ares of tb base plate shall be as shown in Table 3.2, but i- ,o case shall the unit load on the pier exceed 500 psi.

*Obtainable from American Concrete Institute, 22400 West Seventh St., Detroit, Mich. 48229.

TABLE 3.2 BASE PLATES FOR DERRICK LEGS

1 2 3 Maximum Minimum Minimum Derrick Thickness of Area of Base

Ib. in. sq. in. to 200,000 ?4 196

200.001 to 600.000 % 196 to 307

Safe Load, Base Plate, Plyte,

600:OOl to 800:OOO 1 307 to 400 800,001 t o 1,000,000 1% 400 to 607

1,000,001 t o 1,200,000 1% 507 to 601

3.14 Center of Drill Hole. The center of the drill hole shall be a t the center of the derrick base within TL tolerance of *% in.

3.15 Girt and Brace Connections. For derricks 94 ft. and greater in height, with a maximum safe load rating, with or without leg reinforcing, of 312,000 lb or more, all girts and braces carrying compressive loading shall be connected a t their ends with at least two bolts in full holes.

3.16 Bolt-Hole Sizes. Holes in girts, sills, and post connections shall admit s/a -in. bolts. Slotted holes may be provided in post connections, but not in girts and sills.

NOTE: I t is recommended (Rut not required), thut, for %-in. bolts, punched or drilled holes be 18 in. diameter and that cored holes be 74 in. diameter.

3.17 Leg Swtions. Each leg section shall be cut to length with a tolernnce of 11/64 in. The ends of the abutting leg sections shall be properly faced to give uniform bearing throughout the derrick. For the unreinforced derrick the connecting joints shall be designed t o hold the abutting lez sections accurately in alignment under a combined safc working load and wind load equal to at least the specified capacities. For the reinforced derrick the connecting joints shall be designed to hold the abutting leg sections accurately in alignment under a combined reinforced safe working load and wind load equal t o a t least the specified caparities,

3.18. Maximum Safe Load Without Leg Reinforc- in?.* The maximum safe load, in pounds, without leg reinforcing shall be equal to the sum of the strengths of the four leg members at their weakest section, determined in accordance with Par. 3.31. The weight of the derrick structure shall not be taken into account in computing this load.

3.19. Maximum Safe Load With Leg Reinforcing.' The maximum safe load, in pounds, with properly applied leg reinforcing shall be equal to the sum of the strengths of the four leg members a t their weakest section, the strenpth of each reinforced leg to be the sum of the strengths of the two or more lea elements, determined in accordance with Par. 3.31. The weigh+ of the derrick structure shall not be taken into account in computing this load.

*Caution: If the dead line is anchored to a corner of the derrick opposite the draw works, the maximum rated static hook load of the derrick may be expressed as* times the derrick capacity, where n is the number of lines strung to the traveling block. For example, the maximum rated static hook load of a derrick having 6 lines up will be only 60 per cent of the API derrick capacity. When the dead line is anchored elsewhere, it will be necessary that the further reduction in static hook-load capacity be determined.



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E 9009274 000b434 752 E

American Petroleum Institute 6

NOTE: T h e load under whklt failure of an unreinforced o r reinforced dermck may be ex- pected, assuming the four derrick legs to be loaded uniformly, can be given only at approximately twice the respective maximum sa fe load. This i n f o m a t i o n shall not appear on the name plate.

3.20 Maximum Safe Load for Water-Table Beams. The maximum safe load for water-table beams shall be at least equal to the maximum safe load for the derrick, except that this safe load need not exceed 570,000 lb for derricks 136 f t and shorter. If a maximum safe load for a derrick with leg reinforcing is given on the name plate, the safe load for the water- table beams shall be a t least equal to the maximum safe load for the derrick with leg reinforcing, irrespective of whether or not delivery of the reinforcing legs is called for simultaneously on the purchase order, except that this safe load need not exceed 570,000 Ib for derricks 136 f t and shorter.

3.21 Unit Wind Load. The minimum unit wind load for 80-, 87-, 94-, 122-, and 136-ft derricks with pipe setback shall be 11.76 psf. The minimum unit wind load for 140-, 147-, and 189-ft derricks shall be 22.50 psf with pipe setback, and 52.90 psf without pipe setback.

3.22 Application of Wind Load. The unit wind load shall be considered to be applied to the exposed area of two directly opposite sides of the derrick and also, except as indicated in Par. 3.21, to a pipe setback standing within the derrick, assuming the derrick to be unboarded, the four legs to be solidly anchored, and the derrick to be unguyed. Exposed areas of pipe setback shall have the assumed dimensions given in Col. 6, Table 3.3; and the point of application of the wind load on the pipe setback shall be as specified in Par. 3.26.

3.23 Diagonal Wind Load. To provide for the con- tingency of diagonal wind loading, the legs, leg splices, and anchorage shall be designed to resist loads 1.414 times those computed in accordance with Par. 3.21 and 3.22.

3.24 The wind load in pounds per square foot shall be calculated by the following formula:

wherein: P = 0.004 V2 P = unit wind load, pounds per square foot. V = actual wind velocity, miles per hour.

NOTE: Actual wind veloczties corresponding to unit wind loads of 11.76, 22.50, and 52.90 ps f are 54, 75, and 115 mph, respectively. An actual wind velocity of 54 mph i s equivalent to 70 m p h indicated velocity as determined by the Robinson f our-cup anemometer. Wind velocities reported by the U . S. Weather Bureau stations are cur- rently determined o n more accurate instruments and are corrected to within approxhmtely 1 per cent of the actual wind velocities.

3.25 Horizontal Component of Pipe Setback Weight. The horizontal component of the weight of pipe setback, a t the point of origin, shall be assumed to have the value shown in Col. 8, Table 3.3.

3.26 Point of Application of Pipe Setback Load. The wind load on the pipe setback and the horizontal component of the weight of pipe setback shall be assumed as applied normal to the finger board (and belly board f o r the 189-ft derrick). The distance from the adjacent derrick side to the point of application of these loads shall‘ be:

Derrick Point of Distance to Height, f t Application Adjacent Side, in.

136 and shorter Finger board 36 140 and 147 Finger board 48 189 Finger board 48 189 Belly board 72

TABLE 3.3 PIPE SETBACK WEIGHT AND WIND LOADS

1 2 3 4 5 6 7 8 9 10 11 12 Horizontal Component

Wind- of Weight Wind Combined Combined I of PiDe Loadat Loadat Loadat . _

k” atpoint of Point of ~i~~~~ Finger- Belly of pipe Origin, Origin, Board Board, Board.

Ib. wf Wb Derrick Derrick Pipe Total Weight Dimensions of

Ib- J&igbt,ll Ib. Size Height, Size, Length, of Pipe, Pipe Setback Setback, Ib* No. ft in. ft Ib/ft (Wind Area) sa f t Wï WS f t

10 80 2% 9,200 6.6 3’-11”~ 67’-6“ 264 2,600 3,110 59 3,270 ..... ~ -... 11 87 2% 9.200 6.5 3’-11” x 67’-6” 264 2.600 3.110 59 3.270 ___._ _____ _ _ - 12 94 2% 9;200 6.5 3’-1l”x 6?-6” 264 2i6ÖÖ 3;llO 59 31270 -....--__. 16 122 4% 4,500 ’18.5 3 ’ - 1 1 ” ~ 90’ 353 3,640 4,150 83 4,220 _.....-.-. 18 ‘136 4% 410,800 ’18.5 5‘- 8 ” ~ 90’ 510 8,720 6,000 83 7,980 _____.._.. 18A I136 5 5 8.900 “22.5 6’- 8” x 90’ 510 8.720 6.000 83 7.980 _ _ _ _ _ _ _ _ _ _ 19 140 5 615;000 IO22.5 6’- O” x 93’ 568 14,720 l2;660 84 15;lOO ___._..... 20 147 5 ?l5,000 “22.5 6’- O” x 93’ 558 14,720 12,560 84 15,100 .---_-.-.. 25 189 5 720,000 1022.5 6’- O” x 135’ 810 19.600 18.200 126 9.350 21.800 25 189 5 720;OO0 lO22.5 6’- O” x 135’ 810 19;600 1&;200 12122 12;800 17;800 1Applies to 136-ft derrick with either 26-ft or 30-ft base. 2132 stands (12 stands by 11 stands). 348 stands (6 stands by 8 stands). 4110 stands (10 stands by I t stands). tion. 590 stands (9 stands by 10 stands). 6160 stands. tion.

*27$-in. external upset tubing at 6.6 lb per f t based on

94X-in. 16.6-lb drill pipe with tool joint at each connec-

106-in. 19.6-lb drill pipe with tool joint at each connec-

range 1 length, with threads and coupling.

7148 stands. 11ÄdÖpted for load computation purposes only. IzAlternative height.



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= 900927'1 0006435 699

Std 4A: Steel Demeka 7

N O T E : I n preuiozc8 e d i t i m of th+ specification, assumed pape setback w a g h t s and wand area8 were established in order to p r d e for stu-ked derrick designs. I n the fourteenth and subsequent editions these assumed loadings have been retained, in order to Tetain existing designs. I n Table 3.3, these assumed lo+ings are ezpressed in tem of total length of p p e , weight per foot, and dimensions o f pipe setback. (Pipe sizes, total lengths, and weighta per foot f o r lS6 - f t and smaller dem'cks have been adjmted to conform to cuwent field practices and because of this their relationship to windload a r e a are only approximately equivalent.) If the assumed setback load conditions shown in Table 3.8 are exceeded, proper pTecautions s h l d be taken to protect the derrick under conditions of high wìnd loa&

N O T E : The Wind-load area of the pàpe setback, wind load on the pipe setback, horizontal component of the weight of ths pipe setback, and the combined resultant of these two @ds, all as given in Table 8.9,

' are based on the followang a s s u m p t a m and computations :

a. Wind-Load Area of Pipe Setback. The areas fo r w'nd loading f o r pipe setbacks given in Col. 7, Table S.S, are based on the assumed heiahts of stands. number of stands, and arrangement Õ f stands sh& in Table $3.

b. Wind Load on Pipe Setback. The wind loads on the pipe setback a t the point o f origin, as given in Col. 9, Table S J , are based on the area of pipe setback (Col. 7), times specified minimum unit wind load (Par. 3.21).

Example (186-ft dewick) :

e. H m k o n t a l Component of Weight o f Pipe Set- back. The horizontal components o f the weight of pipe setback a t the point of m i i n , g i v m in Col. 8, Table J J , are based on the total number of f e e t of dd l l pipe in the setbaek (Col. I ) , the weight per foot f o r the particular size (Col. s), and a n angle o f inclination of 2% deg. The m i g h t values shown are assumed acting at the approximate c e n t w of gravitg of the ipe setback, a t a height above the dewick floor e q u a f t o one half the b n g t h of the stand, measured parallel to the slope. The weight of pipe shown in Col. 5 is the nominal weight o f threaded*&-coupled external-upset tubing or o f dl-ill pipe wa'th a tool joint at each connection, f o r the mi6 sizes shown in Cot. 3, Table S.3.

Example (186-ft dewick and 54% ddlì pipe): Ho1.izontul component at point o f origin, +a

pcrunds, equals the total number o f f e e t of drùl pipe in setback (8,900), times weight per foot (22.51, times &ne of 9 % deg (0.04362).

8,900 x 22.5 x 0.04962 = 8,720 lb at point o f orig3n.

à. Combined Resultant Load. T h e combined ~ e - sultant loads, a t the point of support (finger board or belly board) a8 given in Col. 11 and 12, Table 3.8, are based on the loads at the point of m 'g in (Col. 8 and 9) tramlated to the point or points o f support in the derrick.

510 x 11.76 = 6,000 lb a t point of origin.

Example ( I S B - f t dewick and 5 - h drüf pipe): Wt = combined resultant load a t uls finger board

o f the hm'zontal component of pipe weight and the wind load 012 ths pipe setback.

a

b =mi + Wt) -

45

85 = (8,730 + 6,000) (-)

= 7,980 tb a t the finger board. wherein:

W I = hm'zontal component of decul weight of Inpe a t p&nt of OTigin (Col.. 8, Table 3.3)

Wt = wind load on pipe setback a t point of m'gin (Col. 9, Table 9.8).

a =one half ths heàght of the pipe setback (34 tha height given in Col. 6, Table SJ).

b = finger-board height from derrick poor (Col. 10, Table 33).

N O T E : The combined resultant loads a t the finger board and bellv board for the 189-ft derrick, as given in Table 33, were calculated by the theorem of three moments.

3.27 Gin-Pole Load. The nominal safe load, in pounds, for the gin pole shall be defined as the load that can safely be raised with a single pulley sus- pended at the center of the gin pole. The nominal safe load shall not be less than speciñed in Col. 1, Table 3.4.

3.28 Gin-Pole Design Loads. Gin poles shall be designed to withstand the vertical and horizontal loads specified in Table 3.4. These loads shall be considered as acting simultaneously and as concentrated at the center of the cross beam.

TABLE 3.4 GIN-POLE LOADS

1 2 a 4 6

Loada, min.. m Nominal Typeand A

SafeLoad Heishtoi ' Horizontal, Horizontal.

lb Vertical Cross Beam Cross Beam for Gin Pole, Derrick Normal to Axial to

2,000 Productfon derricks 4,000 240 ia0 6,000 Drilling derricks

122 it and shorter 12.000 720 640 10.000 138-it derrick 20.000 1,200 900 20,000 1 4 0 4 d&ck 40,000 2.400 1.800 20,000 147-ft derrick 40,000 2.400 1.800 20.000 189-it derrick 40.000 2.400 i.aoo

3.29 Allowable Unit Stresses. The design of all stress-carrying members of steel derricks shall be based on the allowable stresses specified in Sect. 5.

3.30. Minimum Thickness. For derricks 94 ft and greater in height, the minimum thickness of stress- carrying members shali not be lesa than & in.

3.31. Leg and Leg-Reinforcing Members. Leg members and leg-reinforcing members shall be classifled as main compression members and their Llr ratio shall not exceed 120. The width-to-thickness ratio of angle-leg members shall in no case exceed 16 to 1. Leg elements shall be considered as columns unsup- ported between adjacent panel points.



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a 9009274 000b43b 525

8 American Petroleum Institute

3.32 Joints, Girts, and Braces. Joints, girts, braces, and their connections shall be designed to sustain safely the maximum stress imposed by the following load conditions, acting independently:

a. A load condition consisting of a wind load as specified in Par. 3.21, 3.22, and 3.23, together with a coincident pipe setback load as specified in Par. 3.25 and 3.26.

b. A load condition consisting of three Co-acting loads as follows:

1. A concentric crown-block load equal to 1.2 times the derrick maximum safe load, assumed as acting concentric with the derrick.

2. A pipe setback load as specified in Par. 3.25 and 3.26.

3. A horizontal load of 3,000 lb or 0.01 times the maximum safe load of the derrick, whichever is the least, applied at the top of the derrick leg at one corner of the derrick, in the plane of the derrick side and in the same direction as the horizontal component of the pipe setback weight. 3.33 When heavy g i r t s on opposite sides of the der-

rick are ordered for the support of the working platform, derrickman, and pipe tongs with counterweight, such girts shall be designed to sustain a vertical load of 1,200 lb applied 3 f t from the derrick leg or adjacent derrick side.

3.34 Water-Table Beams. Water-table beams shal1 be designed in accordance with the following formulas:

a. For derricks 136 f t and shorter:

W = - 12 M L

12 (Sm) (fc)

L - - or 570,000, whichever is smaller.

b. For derricks 140 f t and higher, for both 6 f t 6 in. and 7 f t 6 in. water-table openings:

16M

L Wt = -

wherein: W or Wt = maximum safe load f o r two water-

M = bending moment, inch-pounds. L = distance between neutral axes of legs at the

bottom of water-table beams, or between the load axes if derrick is reinforced, inches.

Sm = section modulus of the water-table beam (one beam), inches cubed.

fe = allowable until stress on extreme fibers as stipulated in Sect. 5, pounds per square inch.

3.35 End Bearing and Webs of Water-Table Beams. The end bearing and webs of the water-table beams of an unreinforced derrick shall be proportioned to fully develop the maximum safe load of the unreinforced derrick leg, or one-fourth the maximum safe load of the derrick. The end bearing and webs of water- table beams of a reinforced derrick shall be proportioned to fully develop the maximum safe load of the reinforced derrick leg, o r one-fourth the maximum safe load of the reinforced derrick. In the event that a maximum safe load for a derrick with leg reinforcing is given on the API name plate, the end bearing and webs of the water-table beams shall be proportioned to fully develop the maximum safe load of the reinforced derrick leg, irrespective of whether or not delivery of the reinforcing legs is called for simultaneously on the purchase order. The determinations of the strength of the webs of beams to properly resist crippling a t the toe of the fillet shall be made in accordance with the allowable unit stresses given in Sect. 5. It shall be assumed that the leg top plate is designed to provide sufficient strength throughout its entire effective area. Where it is impractical to position the web of thc water-table beams directly over the neutral axes of the derrick legs, the water-table structure shall be designed to resist the resulting eccentric loading.

3.36 Supplemental Design Details. The manufacturer shall furnish, upon request from an actual prospective purchaser, all details of his computations or drawings as may be necessary for a complete check against this specification. It is understood that such information furnished is only for the use of such actua1 prospective purchaser or his designated engi- neer and that when said purchaser or his agents finish with the data it will be returned to the manufacturer furnishing the same. At the option of the manufacturer, the data can be submitted for check to the actual prospective purchaser without the same leaving the custody of an authorized representative of the manufacturer.

table beams, pounds.

1 -. . . - .. . .~. . ~ - C.._ . .. . ~ ~ .. . .rrn-;- I .; . . , , I . .. . ~



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9009274 0006437 461 m

9 Std 4A: Steel Derricks

SECTION 4 STEEL SUBSTRUCTURES

NOTE: Three tgpes of abstructures have been

Type A-see Fig. 4.1 Xvpe B-see Fig. b.2

2'russ or Girder-Type (not illustrated).

adopted as follows:

w 0 D I 4 a

J O

O c

WINDOW SIDE

SECTION A - A

I SECTION 8-8

SUITABLE CLEARANCF SHILL ü t DRCvICEO l o liiw ~ ~ O T ~ R I KAMS TO BE MOVED u w n F I n i x J ~ , S I

Fig. 4.1 TYPE A SUBSTRUCTURE

Beams A are the rotary beams. Beams B are the pipe setback beams. Posts C are the rotary support posts. Posts D are the derrick-support corner posts. Posts E are pipe setback posts. Beam F is a support for the rotary beams when

moved back to clear the cellar. For H dimensions, see Par. 4.2.

WINDOW SIDE

FIG. 4.2 TYPE B SUBSTRUCTURE

Beams A are the rotary beams. Beams B are the pipe setback beams. Posts C are the rotary support posts. Posts D are the derrick-support corner posts.



--`,```,,,,`,``,,,,``````,`,`-`-`,,`,,`,`,,`---

= 9009274 O006438 3 T B W

10 American Petroleum Institute -

4.1 Type A and B Substructures. Type A and B substructures shall be composed of two parts, viz., derrick supports and rotary supports. The derrick supports shall consist of the four posts and exterior bracing between the posts. The rotary supports shall consist of the beams, posts, and braces necessary to sup ort the rotary table and pipe setback, or interior loals. 4.2 Substructure Height. The height of the sub-

structure shall be as shown in the following tabula- tion. The height shall be the vertical distance from the bottom of the corner post base to the top of the

-(p--

NOTE : Tolerance on 10-in. dimension f o r cor- nev bolts, *% in. Anchors G to be povided f o r type A substructure only. Anchors H to be provided f o r type B substructure only. Diurneter of anchor bolts:

Comer post ..........................................~.-.-- 1 i/o in. Rotam, drawworks, and all other posts .... î in.

FIG. 4.3 FOUNDATION BOLT SETTINGS

See Table 4.1 f o r dimensions and tolerances.

substructure framing sills on which the floor joists rest.

Substructure Substructure Height, f t Base Size, f t H

24 7.25 26 7.25 30 7.25, 10, or 14

4.3 Depth of Floor Joists. The depth of substructure floor joists shall be 10 in. 4.4 Corner Post and Interior Anchor Bolt Settings.

The corner post anchor bolt plan for 24-, 26-, and 30-ft. base substructures shall be the same as for derrick corners (see Fig. 3.4 and 4.3). The interior anchor bolts for Type A and B substructures shall be set as shown in Fig. 4.3.

4.5 Foundation Bolt Settings for Auxiliary Setback Columns. Types A and B substructure foundation bolt settings for auxiliary support columns for pipe setback, when racked back of the finger board, shall conform to Fig. 4.4.

E A SUBSTRUCTURE TYPE B SVRSTRUCTURE E&E , fvp SIZE -

3"

3"

24 FT.

FIG. 4.4

FOUNDATION BOLT SETTINGS FOR AUXILIARY SETBACK COLUMNS

TABLE 4.1 DIMENSIONS FOR SUBSTRUCTURE FOUNDATION BOLT SETTINGS

See Fig. 3.4 and 4.3. 1 2 3 4 6 6 7

Dimension Designation * , B C D E F Substructure

f t in. f t in. f t in. f t in. f t in. f t in.

34 - 2% 11 - 8 25 - O 6 - 6 4 - 1% 8 - 7% 37 - 043 12 - 8 27 - O 7 - 6 5 - 1% 9 - 7%

30 42 - 7 8 14 - 8 30 - 1* 9 - 6 5 - 1% 11 - 7%

Base Size, f t A

24 26

*This dimension i s subject to a tolerance of fi% in.



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~ ~

-. I :I! *

m 9009274 000b439 234 m . . k..

Sta 4A: Steel Derricks 11

4.6 Rotary Beam Support. A member F shall be provided on the window side of the type A substructure to support the rotary beams when they are moved back to clear the cellar. This member shall be located not more than one half the length of the rotary beams from the toe of the flange of the adjacent rotary beam sub-sill (see Fig. 4.1).

4.7 Base Plates. Base plates for substructures shall be in accordance with Par. 3.13 and Table 3.2.

4.8 Design Loadings. The substructure floor outside of the draw works area shall be designed for a minimum unit load of 500 psf. The draw works supporting structure, whether independent of or integral with the derrick substructure, shall be designed for a minimum unit load of 500 psf. The area over which the draw works load is applicable shall be that of a rectangle 6 f t by 24 ft, with the center of the rectangle located on the centerline of the substructure 3 f t from the edge of the derrick base square. The area under the draw works shall be assumed to be 6 f t by 24 ft, so located that the long dimension straddles the centerline of the substructure.

4.9 Assumed mínimum loads for substructures shall be as specified in Table 4.2. For truss-type or girder-type substructures (having a four-point support) the corner columns shall be designed for two loading conditions as follows:

a. Weight of casing and pipe setback, acting simultaneously.

b. Derrick loading and weight of pipe setback acting simultaneously.

4.10 For type A and B substructures, the casing load on beam A shall be considered as two concentrated loads, each equal to one-fourth of the specified casing load and distributed as shown in Fig. 4.5. 4.11 For type A and B substructures, the pipe set-

back load shall be considered as two-thirds the specified pipe setback load, uniformly distributed over two-thirds the length of one pipe setback beam as shown in Fig. 4.5.

TABLE 4.2 MINIMUM SUBSTRUCTURE LOADING

1 2 3 4 Pipe

Base Loading, Load, Load, Substructure Derrick Casing Setback

Size, f t lb lb lb Wd W e W.

24 700,000 300,000 160,000

230 960,000 600,000 360,000

26 950,000 460,000 200,000 l30 950,000 450,000 o,oo,ooo

1Appliee to 1 3 6 4 derricks. 2Appliea to 140-it and 147-ft derricka.

NOTE: T h e casing and pipe setback loads a8 given in Table 4.2 were determined as follows:

For the 24-ft base size, the pipe setback load of 150,000 ìb Es based on 8,000 f t of JW-tn. 16.6-lb drill pàpe with a full-hole tool j&nt a t each connection

(18.5 10 per f t ) ; and the caaing load of 800,000 ¿b is based on 8,000 f t of 28-lb casing and an impact factor of 33cli/s per cent.

FOT the 26-ft and 30-ft (136-ft height) base &es, the pipe setback load of 200,000 lb is based on 11,000 f t of 4 H i n . 16.6-lb drill pipe w i th a tool joint at each connection (18.5 lb per f t ) ; and the casing load of 450,000 lb is based on 7,500 f t of 45-lb casing w 11,000 f t of 30-lb casing and an impact factor of 33% per cent.

For the 30-ft base (Iro- f t and 147-ft height) size, the pipe setback load of 350,000 Eb is based on 15,500 f t of 5-in. 19.546 drill pipe with a 4H-in. I F tool joint at each connection (22.5 lb per f t ) ; and the casing load of 600,000 lb i s based on 10,000 f t of 45 lb casing OT 15,000 f t of 30-lb casing and an impact factor of 33% per cent.

b- d - 0 - 4 ' SECTION SHOWING LOADING ON TYPE 'w

PIPE CET-BACK BEAM "8" wc

BEAM "h

L 7'- O'---+ LOADING ON TYPE "&' ROTARY BEAM "A*

I--DISTANCE'C-.' i-4i-1

SECTION SHOWING LOADING ON TYPE "e' PIPE SETBACK BEAM "8"

r"'TT-4&jJ "9 9

BEAM "A" +-+I 2'- 0:-4

LOADING ON TYPE '9" ROTARY BEAM "A' EÊzzl

W, = weight of pipe setback. W, = weight of casing.

FIG. 4.5 LOADING ON ROTARY AND PIPE SETBACX

BEAMS FOR TYPES A AND B SUBSTRUCTURES



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,'& * Y ,. ..-. I = 9009274 0006440 T56 = , . - .y-

12 Amencan Petroleum Institate

4.12 Truss-Type and Girder-Type Substructures, All truss-type and girder-type substructures shall be designed to support the pipe setback to the right of the driller as he faces the well. For 30-ft base substructures, the pipe setback layout shall be as described in Fig. 4.6 and Table 4.3.

4.13 Design Calcnlations. The design of all stress-

carrying members of steel substructures shall be based on the allowable stresses specified in Sect. 6. Provision shall be made in the design of the substructure corner columns for the maximum eccentric loading possible, considering the base square tolerance of plus o r minus 5 in. (as specified in Par. 3.4) and the possibility that the substructure may be used with different makes of derricks.

TABLE 4.3

(See Fig. 4.6) PIPE SETBACK PATTERN FOR 30-FT GIRDER-TYPE AND TRUSS-TYPE SUBSTRUCTURES

1 2 3 4 5 6 7 8 9

inches feet inches of Stands A B C D E Drill Pipe Total Drill Tool Joint Dimensions in Feet and Inches

Size, Pipe Length, OD, Number I \

4 % 11,000 6% 120 3-6 3-0 6-6 5-0 5-6

5 15,500 6% 168 4-6 4-0 7-6 5-0 6-6

-~ - I DERRICK FLOOR,30' BASE SUBSTRUCTURE

I

--

i,

I

I

I DRAWWORKS SIDE

~- r (TI FIG. 4.6

PIPE SETBACK PATTERN FOR 30-FT GIRDER- TYPE AND TRUSS-TYPE SUBSTRUCTURES

(See Table 4.3)



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Sta 4A: Steel Derricks 13

SECTION 5 ALLOWABLE UNIT STRESSES

5.1 Structural Steels. The design stresses for structural steels conforming to ASTM A 7: Steel for Bridges and Buildings (Col. 3, Table 6.1) or A 94: Structural Silicon Steel (Col. 4, Table 5.1) shall not exceed the allowable stresses specified in Table 5.1.

5.2 Combined Axial and Bending Stresses. Mem- bers subject to both axial and bending stresses shall be so proportioned that the quantity

- f- fa fb

Fa F b shall not exceed unity.

wherein: Fa = axial unit stress which would be permitted

if only axial stress existed, pounds per square inch.

F b = bending unit stress which would be permitted if only bending stress existed, pounds per square inch.

fa = actual axial unit stress, pounds per square inch.

= axial stress divided by area of member, pounds per square inch.

fb = actual bending unit stress, pounds per square inch.

= bending moment divided by section modulus of member.

5.3 Grade 60-30 Cast Steel. Design stresses for machinery parts made of cast steel conforming to grade 60-30, ASTM A 27: Mild- to Medium-Strength Carbon-Steel Castings fop General Applications shall be as follows:

Compression: same as for A 7 steel. Bearing: same as for A '7 steel. All others: 75 per cent of unit stress permitted

f o r A 7 steel. 5.4 High-Strength Cast Steel. For higher-strength

east stee! the allowable unit stresses for machinery parts may be increased over those specified in Par. 5.3, in proportion to the higher yield strength, or in proportion to 67 per cent of the higher tensile strength if the yield point is more than 67 per cent of the tensile strength.

5.5 Tension Members. Unless otherwise specified, tension members shall be designed on a basis of net section.

5.6 Compression Members. The ratio of unbraced length to the least radius of gyration ( L l r ) for compression members shall not exceed:

For main compression members ................... 120

For bracing and other secondary members in compression and also redundant girts, mammum ..... ................................................. ..200

5.7 Beams and Girders. Beams and girders shall be designed on a basis of gross section except where the reduction of area of either flange exceeds 15 per cent of the gross flange area, in which case the excess shall be deducted.

5.8 Columns. Columns shall be designed on a basis of gross section.

5.9 Compression Flanges. The ratio of unbraced length to width of flange ( L l b ) for compression flanges of rolled sections, plate girders, and built-up members subject to bending stall not exceed 40,

5.10 Rolled-Beam Members. For rolled-beam members, the compression stresses a t the web toe of the fillet, resulting from concentrated loads, shall be determined in accordance with the following formulas:

a. For interior loads: R

S = t (A f 2 N r

b. For end reactions: R

t (A f N) S =

wherein: S = compression stress in the web at the toe of

R = concentrated interior load or end reaction,

t = thickness of web, inches. A length of bearing, inches. N = distance from outer face of flange to web

toe of fillet, inches.

the fillet, pounds per square inch.

pounds.



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W 9009274 0006YY2 829


TABLE 5.1 ALLOWABLE UNIT STRESSES

All unit stresses in pounds per square inch

1 2 3 4 Steels Having Minimum Yield of

Item of I No. Stress 33,000 psi 46,000 psi

Trie A

TENSION 1 Structural steel, on net section ........................................................ 20,000 2 Rivets, on area based on nominal diameter .................................. 15,000

COMPRESSION 3 4

Columns, on gross section, for Llr values up to and including 60 16,000 18,000

L2 i+--- 18,0001.2

Columns, on gross section, for LIT values greater than 60 ..........

6 Plate girder stiffeners, on gross section ........................................ 20,000 6 24,000

7

8

Webs of rolled sections at toe of fillet* ............................................

Tension on extreme fibers of rolled sections, plate girders, and built-up members ............................................................................ 20,000

Compression on extreme fibers of rolled sections, plate girders, and built-up members for LI b values not greater than 40 ......

BENDING

22,600 l+-

but not over 20,000

L2 1,800b2

9 Extreme fibers of pins ........................................................................ 30,000 SHEARING

10 16,000 11 Unfinished bolts .................................................................................... 10,000 12 13,000

Rivets, pins, and turned bolts in reamed or drilled holes ............ Webs of beams and plate girders on gross section ........................

BEARING Rivets and turned bolts in reamed or drilled holes:

13 Double shear ........................................................................................ 40,000

16 Double shear ........................................................................................ 26,000 16 Single shear ........................................................................................ 20,000

17 Double shear ........................................................................................ 32,000 18 Single shear ........................................................................................ 32,000

14 Single shear ........ .............................................................................. . 32,000 Unfinished bolts:

Pins:

27,300

20,800 27.000

La

27,300 32,700

+ 12,000s

27,300

30,700 L*

1,320b2 i+---- but not over 27,300

..........

...... .......... 17,700

L = unbraced length of member, inches. r = radius of gyration. inches. b = width of compression flange, inches.

*See Par. 6.10 for formulas for calculating compression stresses in rolled beams.



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9009274 0006443 765

Std 4A: Steel Derricks 15

SECTION 6 WORKMANSHIP AND FINISH

6.1 Machined Surfaces. All machined surfaces shall be finished in a good and workmanlike manner and shall be free from burrs, rough edges, etc. 6.2 Castings. All castings shall be thoroughly

cleaned and all cored holes shall be drifted to insure free passage of proper size bolts.

6.3 Protective Covering. All forged or rolled steel parts or sections and all cast material shall be covered before shipment with a good grade of commercial paint or shall be galvanized, except that surfaces which are machined for bearing service shall be protected with a suitable lubricant or compound.

SECTION 7 MARKING

7.1 Derricks. Derricks manufactured in accordance with this specification shall be identified by a name plate bearing the information specified below. Mark- ings shall be either raised or stamped. The API monogram shall be at least % in. high; other markings shall be at least % in. high. The name plate shall be securely affixed to the derrick in a conspicuous place on the starting leg or first girt.

a. API monogram.* b. Manufacturer’s name. c. Manufacturer’s address. d. Manufacturer’s serial number. e. Derrick size number. f. Derrick height. g. Dimensions of base square. h. Dimensions of water-table opening. i. Derrick weight. j. M a x i m safe load without leg reinforcing. k. Maximum safe load with leg reinforcing. 1. Leg reinforcing size.

m. Wind load in miles per hour actual velocity. n. Safe load for gin pole.

73 Derrick Components. Derrick legs, derrick reinforcing legs, and water-table beams shall be marked adjacent to the manufacturer’s part marking, as follows:

a. Such parts made of structural steel having a minimum yield strength of 33,000 psi, or of steel pipe having a minimum yield strength of 36,000 psi shall be marked with the letter M.

b. Such parts made of structural steel or steel pipe having a minimum yield strength of 45,000 psi shall be marked with the letter S.

*The API monogram may be applied only by authorized manufacturers. See Appendix D for regulations governing use of the monogram.

SECTON 8 INSPECTION AND REJECTION

8.1 Inspection Notice. Where the inspector repre- senting the purchaser desires to insDect this material or witness these tests, reasonable notice shall be given of the time at which the run is to be made.

8.2 Inspection. While work on the contract of the purchaser is being performed, the purchaser’s inspec- tur shall have free entry at all times to all parts of the manufacturer’s works which will concern the manufacture of the material ordered. The manufacturer shall afford the inspector, without charge, all reasonable facilities to satisfy him that the material is being manufactured in accordance with this specification. All inspections should be made at the place of manufacture prior to shipment, unless otherwise

specified m the purchase order, and shall be so conducted as not to interfere unnecessarily with the operation of the works.

8.3 Rejection. Material which shows injurious defects on mill inspection or subsequent to acceptance at manufacturer’s works, or which proves defective when properly applied in service, may be rejected and the manufacturer so notified. If tests that require the destruction of the material are made other than at the place of manufacture, the purchaser shall pay for that material which meets the specification, but shall not pay for any material which fails to meet the specification.



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9 9009274 0006444 hT1


APPENDIX A RECOMMENDED PRACTICE ON THE ERECTION, CARE, AND USE OF

STEEL DERRICKS

Al . Wind Capacity. Steel derricks are designed to withstand safely a minimum actual wind velocity of 54 mph for derricks 136 f t and shorter with pipe setback; 75 mph for 140-, 147-, and 189-ft derricks with pipe setback; and 115 mph for 140-, 147-, and 189-ft derricks without pipe setback, provided they are anchored to suitable foundations. When used under such conditions they do not require guy wires for support.

A2. The strength of the anchorage required to prevent overturning must be sufficient to prevent uplift- ing of the derrick legs on the windward side. The uplift values for the wind velocities stated in Par. A l are given in Table A l .

A3. Derrick Foundation Loads. Safe use of the derrick and, consequently, success of drilling and producing operations depends on whether the derrick foundation is adequate for the loads imposed on it. The design load for derrick foundations is the sum of the weight of the derrick and derrick substructure, the weight of the machinery and other equipment to be supported by the foundation, and the maximum safe working load of the derrick as shown on the derrick name plate.

A4. Soil Conditions. A most importent consideration in the design of a derrick foundation is the character and bearing capacity of the soil on or in which the foundation will be placed. Typical soil bearing values are given in Table A2. There are many kinds and mixtures of soils, and it is not always possible to accurately determine the safe bearing capacity of any given soil by reference to a table. When there is any doubt, actual tests or borings should be made.

A5. Concrete Foundations. The bearing capacity of a soil will vary in proportion to the amount of contained moisture. This fact should be kept in mind when deciding the size of concrete footings necessary to meet the particular condition. Excavations for concrete piers must be carried to sufficient depth to obtain a satisfactory and safe footing, and in all cases should extend below the frost line. Where possible, it is desirable that a permanent concrete footing should extend to dry soil or soil that is undis- turbed, and then should be properly back-filled to provide ample surface drainage.

A6. Cement. The cement should be new and free from lumps. It should be rotected, unt. the .time of use, by storing in a s h e f o r by covering with tar- paulins. Cement chouId not be piled on the ground but should be neatly stacked on a platsorm a t least 6 in. from the earth. Cement that has been rained upon or otherwise subjeoted to dampness, or that has hardened or partially set, should not be used.

TABLE A l

RECOMMENDED VALUES FOR DERRICK LEG NET UPLIFT

These values apply to each leg. 1 2 3 4 5 -

Normal Diagonal Derrick Wind Wind Derrick Net

Size Uplift: Uplift,2 Weight: Uplift,4 No. lb lb lb lb 10 12,275 17,350 3,000 14,350 11 12,920 18,260 3,200 15,060 12 12.290 17.370 4.000 13.370 16 20;456 28;920 61000 221920 18 28,840 40,800 8,000 32,800 18A 28.620 40.500 12.000 28.500 19 83;SOO 118;200 16;OOO 102;200 20 84,400 119,400 16,000 103,400 25 120,400 170,300 25,000 145,300 1The normal wind uplift values given in Col. 2 are based

on the following unit wind loads applied normal to the side of the derrick:

a. For derrick sizes No. 10, 11, 12, 16, 18, and 18A a unit wind load of 11.76 psf on the derrick and pipe setback.

b. For derrick sizes No. 19, 20, and 25 a unit wind load of 52.9 psf on the derrick without pipe setback. The 62.9 psf unit wind load is used because its,overturning effect on the derrick is greater than that for a 22.5 psf wind load on combined derrick and pipe setback areas,

zcol. 2 values x 1.414. aCol. 4 values are assumed values and are applicable to

the bare derrick only. 'The net uplift values given in Col. 5 are obtainable by

subtracting Col. 4 from Col. 3 values.

Al. Aggregate. The aggregate should be clean and free from earth or other foreign matter, and the particles should not be coated with mud, oil, or any other injurious substance. When separated aggregates are used, the sand should not be uniform in size of grains, but should contain both fine and coarse particles, the coarse predominating. The stone or gravel sizes should vary from % in. as the smallest, to particles that will pass through a 2-in. circular opening as the largest. Coarse and fine aggregates, except when combined, should be stored in separate piles. AI1 aggregates should be protected from contamination by foreign material. Before using local deposits of either fine or coarse aggregates, or both, adequate tests should be made to determine if such aggregates will produce concrete of the desired strength and durability.

AS. Mixing Water. Mixing water should be free from oil, acid, and injurious amounts i f vegetable matter or salts. In general, if the water is unfit for drinking, it is unfit for concrete.



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9009274 0006445 538

17 - Std 4A: Steel Derricks

TABLE A2 SAFE BEARING CAPACITY O F SOILS

In pounds per square foot1

Sound shale and other medium rock requiring blzsting for removal ............................................................. 20,000-30,000 Hard pan, cemented sand, and gravel difficult to remove by Dicking ........................................................... 16,000-20,000 Soft rock, disintegrated ledge; in natural ledge, difficult to remove by picking ......................................... 10,000-20,000 Compact sand and gravel requiring picking for removal ................................................................................. 10,000-12,000 Hard clay requiring picking for removal ........................................................................................................... 8,000-10,000 Gravel, coarse sand, in natural thick beds ......................................................................................................... 8,000-10,000

Medium clay, stiff but capable of being spaded ................................................................................................. 4,000- 8,000 Fine loose sand ......................................................................................................................................................... 2,000- 4,000

Loose medium, and coarse sand, fine compact sand ......................................................................................... 6,000- 8,000

Soft clay .................................................................................................................................................................... 2,000 1Valuea taken from Marks’ Mechanical Engineers’ Handbook,

A9. Proportioning. The proportioning of materials should be based on the requirements for a workable mix containing not more than 7 gal of water per sack of cement (94 lb). In case the sand is very wet, as right after a rain, the water should be reduced to 6 gal per sack of cement. If the sand is unifomly damp, 6% gal of water should be used per sack of cement. A suggested proportion of ingredients is as follows :

1 sack of portland cement 2 CU f t of sand

3% CU f t of gravel or stone

When local deposits of aggregates are used, the proportions of materials should be such as to give a workable mix, containing not more than 7 gal of water per sack of cement, including surface water in the aggregate.

Alo. The concrete should have a compressive strength of not less than 1,000 psi at 7 days and not less than 2,000 psi a t 28 days. The proportions required to fulfill these conditions should be determined by trial mixture method, described in the booklet Design und Control of Concrete Mixtures.* The grading of the fine and coarse aggregates and the proportions of the mix are significant only insofar as they affect the workability and economy of the resulting mix. So long as the proportion of water and cement is maintained constant and a workable mix is produced, the strength of the concrete is not affected.

A l l . Mixing Concrete. All ingredients should be accurately measured to secure the specified proportions in each batch. The stone and sand should be measured separately, and the water should be so measured as to insure the proper quantity in each batch. In case concrete is hand mixed, it should be done in the following manner and order. The measured quantity of sand is to be spread out evenly on the platform. On this is evenly spread the required amount of cement. The cement and sand are then turned over thoroughly with square shovels, enough times t o produce a mass of uniform color. The measured quantity of broken stone or gravel then is spread in a uniform layer on top of the cement-sand mixture, and all the materials again mixed by turning with shovels until the stone has been uniformly distributed throughout the mass. A depression or hollow is then formed in the center o£ the pile and the measured water added slowly while the materials

*Obtainable from the Portland Cement Association, 33 West Grand Ave., Chicago, Illinois 60610.

raw-Hill Bwk Co., Inc., New York, Fifth Edition (1961).

are turned, this turning being continued until the whole mass is in a plastic or pasty jelly-like con- sistency. If a mechanical mixer is used, the measured ingredients should be placed in the mixer and mixed for not less than two minutes.

A12. The mixture should be such as to produce concrete that can be worked readily into the corners and angles of the forms with ordinary spading. The workability can be controlled by adding or deducting sand or stone, but in no case should the amount of stone be such as to produce difficulty in placing, or honeycombing in the structure. Most important of all, the amount of water specified for each sack of cement should in no case be exceeded.

A13. Handling and Placing Concrete. Concrete should be placed in the forms in such a manner as t o prevent the separation or 180ss of ingredients. Each batch as placed should be well spaded into the corners lof the form so as to eliminate air pockets and prevent honeycombing. Concrete should be placed in the forms immediately after being mixed and under no circumstances should concrete that has partially hardened be deposited in the forms. When the foundation is finished the tops of !he four base plates must be on the same level, +Y, in.

A14. High Early-Strength Concrete. If early use of a foundation is desired, consideration should be given t o those factors which will give high early strength to concrete and which are: (1) further limitation of the mixing water; (2) richer cement mixtures: (3) more thorough mixing; and (4) protection of the concrete against temperatures below 60 F during its making, placing, and curing.

A15. Derrick Erection. Each and every part of a derrick is intended to carry its share of the load, therefore, any parts which are omitted o r improp- erly placed may contribute t o the failure of the derrick. It is for this reason that in the erection of steel derricks, so fa r as it can be done safely, bolts and nuts should be tightened only slightly tighter than finger-tight until the erection of the derrick is finished, after which all bolts and nuts should be drawn tight. This permits an even adjustment of all parts which should result in a more nearly perfect distribution of load.

A16. The practice of using bent leg sections, whether it be main derrick legs or reinforcing legs, is dangerous and lonly material that is as straight as manufacturing tolerances allow should be used. A bent leg, girt, or other compression member has practically no strength and frequently actually damages other



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W 9009274 000b44b 474 E


members of the structure because it tends to pull them out of line and put iinàue stress upon them. Any part that cannot readily be assembled in place without dis- torting adjacent members of the derrick o r which has been reduced in cross section should be replaced. When assembled, the main derrick legs and reinforcing legs should be in perfect alignment throughout their entire length.

A17. The reinforcing legs of a reinforced derrick are for the purpose of increasing the maximum safe load for the derrick leg and are not intended to serve as mere leg stiffeners. It is therefore vitally important that such reinforcing legs be properly installed SO that each will carry its proportionate share of the derrick load. Reinforcing legs must have full bearing, both at the top and bottom, and leg clamps should be spaced not more than the distance between girts. Pipe reinforcing legs should nest properly against the heads of bolts used in the main derrick legs and no bolt should be installed with the nut on the inside of the main derrick legs because bolts of unequal length will prevent the proper assembly of the reinforcing legs. Leg clamps should never be placed mid- way between two girts as this practice will tend to cause the bending of both the main derrick leg and reinforcing leg, thereby reducing the maximum safe load for the derrick. The proper place for a leg clamp is immediately above and close to the girt.

A18. The dead end of the drilling line should be fastened properly to a suitable anchor attached to the derrick corner foundation or other convenient place and in a manner that will not subject the derrick or derrick substructure to loads that may cause their failure. The attaching of the dead line to a derrick girt or brace should not be permitted.

A19. The mud standpipe of a rotary rig should be attached to the derrick leg rather than to the girts, because the derrick leg is better able t o withstand the vibrations of the standpipe than are the girts and braces.

A20. Every care should be taken in the handling of derrick parts when dismantling and moving to a new location. Most of the bending of derrick material is caused by rough and improper handling during transportation and moving of rigs, and the cost of replacing damaged parts is f a r in excess of the cost that would be incurred by more careful and proper handling. The practice of some rig builders of cut- ting out bolts or dropping pieces to the ground when dismantling a derrick is both dangerous to personnel and destructive to material, and should not be permitted. Enlarged or distorted bolt holes tend to weaken a derrick just as much as bent members. Derrick members being bound on a truck by use of a chain with the members suppcrted at the ends, and not at the point of binding, should not be permitted.

A21. Derrick Inspection. Derricks should be thoroughly inspected after erection to see that all members and bolts are in place and that the latter are tight and equipped with suitable lock washers. This inspection should insure that no member has been installed in a manner that will impair the safety of the derrick.

A22. Derrick Loading. Eccentric loading of a derrick should be avoided if at all practicable. If, because of unequal settling of derrick corners, the center of the water table when drilling with rotary tools,

does not line up with the center of the well, the condition should be corrected by inserting shims at the low corners of the derrick. A crown block should never be shifted off center to correct for derrick mis- alignment unless such movement is small and due care is taken to determine the effect it will have in reducing the safe working load of the derrick. Care- less application of loads may result in a derrick failure, serious injury to the crews, and a loss of time and money.

A23. Derricks have failed because crews thought- lessly subjected them to loads which they were not designed to carry. Citing a particular case, a chain sling was thrown around two adjacent legs of a derrick and an attempt was made to hoist a heavy draw works into position. The operation was stopped before any general damage resulted, but it was necessary to replace one panel of the derrick.

A24. Avoid sudden applications 02 load when possible, because sudden loading results in excessive shock loads which can and do cause the failure of derricks and other equipment. As the inertia of a body or mass has to be overcome before that mass is moved if it is at rest, or stopped if it is in mo- tion, the time of overcoming this inertia becomes a function of the power required. A quick pull or a quick stop might therefore break a line or “pull in” the derrick; whereas, if that pull or stop is made over a longer period of time, the equipment will not suffer. The most effective pull can, of course, be obtained when applied slowly, thus permitting all equipment to work to its fullest capacity.

A25. Girts, braces, and other members should not, under any circumstances, be removed from the derrick while it is under load. Such practice has resulted in loss of life. The removal of any one or more of these stress-carrying members when a derrick is under load, in addition to reducing the maximum safe load for the derrick, will effect a readjustment of the structure which is quite liable to cause overloading of some other parts. The derrick would thereby be placed in such an unstable and precarious condition that the entire assembly is subject to collapse with attendant danger to life. If necessary to remove a girt or brace to permit equipment to be taken into the derrick, such girt or brace should be replaced and all bolts and nuts properly tightened before a load is again placed on the derrick.

A26. Obviously, the dangerous practice of burning holes with a welding torch in important load-carrying members of derricks and derrick substructures for the purpose of attaching turnbuckles or for hanging hand tools in the derrick, should not be permitted under any circumstance. This practice often results in such defects being hidden from view and, to the casual observer, the deficiency in strength as a result of this loss of material is not realized. Citing a particular case, holes were burned in a derrick leg and, on investigation, it was found that the maximum safe load for the derrick was reduced 100,000 lb.

A27. Care of Derricks. The bearing capacity of all soils decreases as the moisture content increases. Therefore, proper drainage should be provided and the foundation inspected after heavy rains to insure that derrick corners have not settled unequally and thereby caused the derrick to be out of plumb. Earth



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9009274 000b447 300


should also be banked around the base of all foundation piers to provide drainage.

A28. The gin pole is a highly stressed member when raising a drilling crown block as a unit, and this part of the derrick should, therefore, be maintained in good condition at all times.

A29. Drilling derricks are subjected to considerable vibration which may occasionally loosen certain bolts and nuts to the extent that the strength of the derrick is seriously impaired. During drilling operations it is advisable to make frequent inspections of all bolted connections to insure that none has worked loose. These inspections are particularly necessary just prior to making a round trip, setting casing, or otherwise subjecting the derrick to unusually heavy loads.

A30. Drilling derricks which are left over wells as production derricks should be inspected after drilling operations are completed, or prior to their use as production derricks, to insure that there are no

bolts or derrick members missing and that each bolt has a lock washer and is made up tight; also, that no derrick member is impaired to the extent that it weakens the structure. The elevation of derrick corners should also be checked and, if necessary, shinis should be inserted and the corners brought back to their proper level.

A31. Production crews should observe the condition of a derrick before subjecting it t o a heavy load to insure that all bolts and derrick members are in place and made up tight, and that no member is weakened bo such an extent as to impair the strength of the structure as a whole.

A32. Corrosion 2nd Decay. The ill effects of corrosion on steel are weil known throughout the industry, but frequently the cost of the damage is not realized. Proper protection against these ravaging elements is always a good investment. In coastal or humid areas, the use of hot-dipped galvanized derricks ia good praotice.



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9 9009274 OOOb448 247 9


APPENDIX B RECOMMENDED PRACTICE FOR

Foreword Derrick designs are based on the assumption that

the derrick is not guyed, and that a suitable foundation having sufficient weight to prevent overturning under prescribed wind loads will be provided. The following recommendations are intended to apply when conditilons prevent the use of suitable foundations and it is desired to make use of guylines. These recommendations i.pply only to 122-, 130-, 136-, 140-, and 147-ft derricks (sizes 16, 18, 18A, 19, and 20) .

B1. Guyline Material. Any wire rope, except guy strand, covered by and conforming to API Std 9A: Specification fo r Wire Rope, is recommended for use as derrick guylines.

B2. Number of Guslines. The recommended number of guylines and their points of attachment are given in Table B1.

TABLE B1 NUMBER OF GUYLINES AND POINTS OF

ATTACHMENT 1 2 3 4

Derrick Derrick Number Size Height, of No. ft. Guylines Points of Attachment

16 122 8 11th and 14th girts 18 136 12 l l th , 14th) and 17th girts 18A 136 12 l l th , 14th, and 17th girts 19 140 12 llth, 14th) and 17th girts 20 147 12 l l th , 15th) and 19th girts

B3. Guyline Loads. The loads applying t o guylines attached at the girt positions shown in Table B1 have been determined by the following formulas which assume that the guylines make an angle of 45 deg with the horizontal. These loads are shown in Table B2.

B4. Guyline Orientation. Guylines att,ached to individual anchors should be positioned a: 45 deg to the horizonal and 136 deg to the derrick sides. If more than one guyline is attached t o an anchor, the load on the guy which makes an angle with the horizontal other than 45 deg, will not be that given in Table B2, but must be determined by taking into account the angle that the guyline makes with the horizontal.

TABLE B2 GUYLINE LOADS

1 2 3 4 5 6 Derrick Derrick Girt Number

No. Load in Guylines, lb Size 11 14 15--..- 17 19

Li L, La Ls Ls

16 1.436 1.810 ___.______ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ~~~~......

18 li660 li960 _______.._ 2,360 ...__..__. 18A 1,160 1,460 ....___._. 1,760 _ _ _ _ _ _ _ _ _ _ 19 8,450 10,870 ___._....- 13,050 ...___._.. 20 7,650 ____..___- 10,200 ___..__._. 12,750

GUYING O F STEEL DERRICKS

NOTE: The guyline loads shown in Table B2 were calculated bg use of the following formulas:

(1) "== (2) (8)

Li, E, LS = guyline loads, in pounds. B = distance between neutral axes of adjacent

leg members, in feet . (See Table 3.1 for values.)

R = net uplift at derrick comer fo r baye derrick, with wind normal to derrick side, pounds. (See Appendix A for derivation.)

W l 4 = weight of bare derrick per leg, pounds. Weight of derrick includes the crown safety platform fourble board, and accessoraes (crown and traveling blocks, wire rope, swivel, etc.).

Di, Ds, Da = verticai height above the derrick base of successive points of attachment of guylines, feet .

These formulas are based on the assumption that the reactions at the point o f attachment are directly proportional to their heights above the dermck base. Assumed values f o r R, W / 4 , and D are shown in the followzng tabulataon:

2B (R - W / 4 ) DI i- (Da2íDl) + (Ds21D1)

......._..... _ _ Lg = Li (Ds/Di) ________________________________________........ La = Li (DslD1) ________________________....~....~.~.~..~~.~..~~~~ wherein:

1 2 3 4 6 6 Vertical Height , ft.

whd Upl i f t DerTick r A Dcrrkk Normal to Weinkt First Second Third

GUY .Y R WI6 Di DE Ds

Size Derrick per Leg, Gyy No. Side. lb. lb. Posation Posittom Position

16 20,455 14,200 80.92 101.84 __._....__ 18 28,840 17,000 80.92 101.84 122.76 18A 28,620 21,000 80.92 101.84 122.76 19 86,600 25,000 84.00 105.00 126.00 20 84,400 25,000 84.00 112.00 1/0.00

€35. Size of Guylines. The size of guylines should be such that their breaking strengths as given in API SM 9A, are not less than 2% times the guyline load (Table B2). In no case should the guyline be less than 96 in. nominal diameter.

B6. Attachment of Guylines to Derrick. Guylines should be attached to the derrick by means of gusset plates, as illustrated in Fig. B2, or by an equivalent method. B7. Guyline Anchors. Screw-type anchors should

be used in marshy soils, Expanding-type anchors should be used in other soils. The anchor holding capacity for the particular soil condition chguld be at least equal to and should preferably be greater than the breaking strength of the guyline. Since it is impossible to definitely classify soils, a pull test should be made in each field to verify the anchor holding capacity.

B8. Attachment of Guylines to Anchors. Guylines should be attached to anchors as shown in Fig. B2, or by an equivalent method.

B9. Tension in Guylines. Suitable dynamometers for measuring the tension in guylines are available and should be used, since that is the only practical way of insuring equal tensions in the guylines at a particular girt. (See Fig. B1 for illustration of typical attachment of a dynamometer.)



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FIG. B1 TYPICAL ATTACHMENT OF A GUYLINE DYNAMOMETER



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œ 9009274 O006450 9T5 œ

American Petroleum institute a

O E



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rn 9999274 9906451 831 rn


APPENDIX C LIST OF AUTHORIZED MANUFACTURERS

Companies authorized to use the API monogram on steel derricks (as of March 1967) in accordance with API Std 4A, are listed below. Beaird Co., Inc., The J. B., Shreveport, La. Continental-Emsco Co., Houston, Texas. Creamer & Dunlap, Tulsa, Okla. De Vries Robbe & Co., N. V., Gorinchem, Netherlands. Ideco, Inc., Div. of Dresser Industries, Beaumont,

Moore Corp., Lee C., Tulsa, Okla. Rluskogee Iron Works, Inc., Muskogee, Okla. Nashville Bridge Co., Nashville, Tenn. Nuovo Pignone, S.p.A., Florence, Italy Oil Well Engineering Co., Ltd., Cheadle Heath, Stock-

Parkersburg Rig & Reel Co., The, Parkersburg, W.

Pyramid Derrick & Equipment Corp., Houston, Texas. Spencer-Harris Machine & Tool Co., Inc., Gladewater,

Waagner-Biro Aktiengesellschaft, Vienna, Austria.

Texas.

port, England.

Va.

Texas.



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~ ~

= 9009274 0006452 778


APPENDIX D USE OF API MONOGRAM

The foregoing specification is for the use of all manufacturers desiring to use it.

Manufacturers desiring to warrant that articles manufactured or sold by them conform with this specification may under certain conditions obtain the license to use the Official API Monogram.

The following resolutions adopted by the Board of Directors of the American Petroleum Institute on Oct. 20, 1924, embody the purpose and conditions under which such official monogram may be used.

WHEREAS, There has been a movement in the petroleum industry to simplify, standardize and im- prove oil country drilling equipment and methods; and

WHEREAS, The co-operation of the American Petroleum Institute was sought in order that there might be a national forum for the discussion, consideration and adoption or rejection of such proposed standards; and

WHEREAS, It appears desirable that the Ameri- can Petroleum Institute adopt an official monogram to be used for identifying materials that comply with such standards or specifications (where such specifications o r standards call for the use of such monogram), that may hereafter be adopted by the Board of Directors of the American Petroleum Insti- tute; and

WHEREAS, It also appears desirable that the use of such monogram be encouraged wherever and whenever possible to inform the public that material so marked is manufactured in accordance with such specifications;

NOW, THEREFORE, BE IT RESOLVED, That the following monogram is hereby adopted as the official monogram of the American Petroleum Institute; and be it further

RESOLVED, That the words “Official Publication” shall be incorporated with said monogram on all such standards and specifications that may hereafter be adopted and published by the American Petroleum Institute, as follows:

@

BE IT FURTHER RESOLVED, That the General Secretary or Assistant General Secretary be and they are hereby directed to authorize anyone desiring to do so to use such monogram under the following conditions:

Anyone desiring to use the monogram of the American Petroleum Institute shall apply to the American Petroleum Institute, New York City, using the form shown below, entitled: “Application to use official monogram of the American Petroleum Institute.” Upon receipt of this a plication, properly acknowledged, and accompanie8 by a statement satisfactory to the Institute of the applicant’s qualifications (when applicant is a manufacturer) to comply with the specification stated in the ap lication, the Secretary shall issue a certificate of autIority to use the said monogram in the form shown below entitled: “Certificate of Authority to use official monogram of the American Petroleum Institute.”

BE IT FURTHER RESOLVED, That the Board of Directors of the American Petroleum Institute reserves the right to modify or change the said monogram and to revoke the right or license to use it on the part of any manufacturer for any reason satisfactory to the Board of Directors.

CANCELLATION OF MONOGRAM RIGHTS The right to use the monogram is subject to can-

1. Using the monogram on material that does not meet the specification.

2. Failure to report on use of monogram. Each authorized manufacturer is required to report annually regarding his use of the monogram on the products covered by his authorizing certificates. Report forms will be provided by the Institute.

3. Failure to use the monogram on material produced to the specification.

4. Failure to follow marking stipulations. 5. Improper use of the letters API. 6. Failure to test master gages, or to report on

condition of master gages. 7. Using the monogram on material controlled by

gages which are beyond approved tolerances. 8. Failure to repair gages known to be beyond

approved tolerances. 9. For any other reason satisfactory to the Cen-

tral Committee on Standardization of Oil Field Equipment.

cellation for the following causes:

FORM OF CERTIFICATE OF AUTHORITY TO USE THE API MONOGRAM

No ._____ _ _ __________._.________ AMERICAN PETROLEUM INSTITUTE

CERTIFICATE OF AUTHORITY TO USE OFFICIAL MONOGRAM

THE AMERICAN PETROLEUM INSTITUTE hereby grants to

the right to use the official monogram Ip on ................

under the conditions specified in the official publication of the American Petroleum Institute entitled

. ..... -..- .................................................. ~ ...._____._..._ ~ ._._......._.....

with the understanding that the use of this monogram shall constitute a representation that the material so marked complies with the latest edition of said specification, and with the further understanding, that material which fails to comply will not be so marked.

The American Petroleum Institute reserves the right to revoke this authorization to use the official monogram, for any reason satisfactory to the Board of Directors of the American Petroleum Institute.

Issued at New York ,.-... _ _ _ _ _ ....._.__I_._._.___ ~ ____.__ -., 19 ....__..,

Secretary.

AMERICAN PETROLEUM INSTITUTE, (SEAL)



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W 7007274 0006453 604 D ?

~

t

S M 4A: Steel Derricks 26

APPLICATION TO USE OFFICIAL MONOGRAM OF THE AMERICAN PETROLEUM INSTITUTE

THE AMERICAN PETROLEUM INSTITUTE, DIVISION O F PRODUCTION

300 CORRIGAN TOWER BUILDING DALLAS, TEXAS 75201

Gentlemen : In Consideration of the American Petroleum Institute granting ____________________________ the right

to use the official monogram of the American Petroleum Institute in the manufacturing of (us-me)

____________._______further agree that no material which fails to comply with such specifications (We-1)

shall be so marked.

Acknowledged and sworn to before me



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~

9009234 0006454 5 4 0 H

26 American Petroleum Instituta

AMERICAN PETROLEUM INSTITUTE DIVISION OF PRODUCTION

DALLAS, TEXAS 75201 300 CORRIGAN TOWER BLDG.

STATEMENT OF MANUFACTURER’S QUALIFICATIONS TO USE API MONOGRAM

The information requested below must accompany all applications to use the API monogram. All such information is subject to investigation and application must be rejected if the information supplied so warrants.

Material:

API specification designation:

(List here the equipment on which applicant desires to apply the monogram)

1.

2.

3.

4.

5. 7.

8.

9.

Name of applicant:

Location of principal office:

Where will equipment be manufactured?

Class of ownership:

Capital invested: 6. Year organized: Is the applicant thoroughly familiar with all stipulations given in the API specification covering this

material ?

is the applicant actuaily manufacturing this material now ?

a. State the length of time applicant has made the material and supplied it to the oil industry:

(Corporation, partnership or individual)

(Years and Months)

b. State the approximate percentage of production of this material to applicant’s total production:-

Give the names and addresses of five representative users in the oil industry to whom applicant has sold this material (gtve name of company, complete street address, and name of company representative to whom inquiries should be addressed) :



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ï00927Y 0006433 Y T 2 m


10. If applicant has not supplied this material to the oil industry and cannot furnish the five references under item 9, give the names and addresses of five representative users in other industries to whom applicant has sold similar equipment (give name of company, complete street address, and name of company representative to whom inquiries should be addressed) :

11. If the applicant is not now manufacturing this material, when does he expect to begin production?-

12. If the applicant has not previously made this material, state fully (on an attached sheet) the experience of any members of applicantJs present organization in the manufacture of this material, giving names of organ- izations where such experience was obtained.

Questions IS, 14, and 15 need be answered only if the specification requires testing cw the possession of API reference master gages.

13. Does the applicant now possess the necessary equipment and personnel for conducting all tests required

in the API specification covering this material?-

14. Does the applicant now possess such API reference master thread gages as required by the specification

covering this material ?

I f applicant possesses such gages, give fuU info~mation (on separate sheet) on types, sizes, certifying agency and certification dates.

15. If the applicant does not now possess such gages, have they been ordered?

I f so, give full information (on separate sheet) on types, sizes, and from whom ordered.

16. Give names of five responsible business men as references regarding applicant’s genera1 character, integ- rity, and reputation (give complete mailing address and name of organization with which each is affiliated):

17. Name and address of applicant’s representative to whom API correspondence should be directed:

(Signature and title of authorized officer)

Date (Name of organization, company or individual)

(The above statement to be signed in the name of the applicant by an authorized officer) I S M S-67, Johnaton %M, 5-69. Johnston 3C, 7-72. Johnston

XhM, 2-76, Johnston 4C. 1-74, Johnston



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-

m $009274 0006455 487

Published b Division of $reduction Americdn Petroleum ImtikitS 800 C o m e n Tower Drllu,Tesu 76201

Model Form U 1 Firnt Edition August, 1962

SINGLE WELL ROTARY DRILLING CONTRACT

TH1S AGREEMENT made and entered into by and beb,

h m i n i i t e r d e d Operator, and

hudndtm alld Coahc ta r

WITNESSETH: "HAT, WHEREAS, Operator Ia the ornar, part owner &/or Oprstor, of Eartiln propertist on which i t desires to have a well drilled and completed in sureh of oil or gu and,

WHEREAS Contractor rapraaentr that it hu ndsqiute Wipment in gocd workhg oder and fully trained purounel eipable of efficient& operating such equipment uith which it d e d r u to drill and complete ruch WOU for Operator:

NOW, THEREFORE, the p u t h hereto, rsh ln eo~idantloa of the promha and agreemmb of the other, mutually 4- M follows:

1. WORK TO BE DONE, LOCATION. COMMENCEMENT DATE, AND DEPTH: 1.1 Contnctai a- to drill ind com leta the hereinitrSr des ignme we11 in accordance with all pr0riiiona hereof and other

eanditions and ß p e d f i a t i o ~ wt forth in 8n Bid Sheet rnd WOU pacifiataoni, identiiied u W i t A atiached hereto and mide a part hereof.

1.2 Contraetor further agrees to commence opui t ioni for the drilling of the well at the loatiou, .II th. dite, and to the depth agmad upon in 8aCti0iu l, 2 and 8 of Exhibit A hareof.

Z LABOR, EQUIPMENT, MATERIALS. SUPPLIES. AND SEKVICES:

ment, matarid supplies and ierviced nozessarp to the proper operation or miintamnee of the drilling rig ahall be f - s h y f y Contractor. Additional m a w , qdpmenf , spcial tools, supplies and services necessary or pro er to the drilling and completion of the well ah+ be furnuhed at the dnll site b the party designated in e t i o n 6 of Exhigit A. Should tools. materials, apparatun or -ces, other than those set forth gerein or desigmted in Exhibit A be neeessary ta the drilling or completion of the weil the cost of such took, materiais, appuatua or iervices and the mmer in which they are , to be furnhhed are to be agreed rtpon &y the pirtiea hereto.

2.8 Ppsrator will i p k e the W t i o n of. the well and furnish such khor, equipment, mitenaIr, inppllcs and serpicea a8 M ipaufieilly set out III Section 6 of Exhibit k Should Exhibit A rpcfifically require that cement and other matenals and services be furnished by Opentor. mch requirement ihall not indude cement, materials, iuppliea, ind nervices nmssa ry to plugging and abandonment OcCuioued by Contractor's negligence.

uipment which Operator is obligated to furnish under the terma of %-ment, -tor agreed to pay Condictor within (8) daya after date of receipt of Contrrctor's invoice the mûml cost of mach mtar*lr SU pues or equipment, less in cash discounts thereon to which Con- &tor may be entitled. Should Operator fail to py'mc% ingoices within the time terein rpeeified, Operator shall not be entitled to any such a s h diseonnta uid iba11 immediately p i p Contractor the gross amount of auch invoieos. Contractor agrees to furnish ûpemtor copies of mppliers'. rendors', or third puty invoices covering ruch rruterirl., iuppiies, or equipmonk

2.1 Contractor shall furniah and w e equipment described in &etion 4 of Exhibit A. 2.2 All labor,

2.4 Should Conbpetor ptueh.se for tor at Operator'i nquest my materials supplies or

8. FOOTACE RATE, DAY WORK BATE. STAND-BY RATE, BASIS OF DETERMINISG AMOUSTS PAYABLE TO CONTRACTOR : 8 1 Subject to all of tite other proviaiom hereof, Opcmtor to pay Contractor for the work performed, rervieos

rend&, and the matarida, equipment and sopplied fiuiushed b y r ntrixtm, a mm computed an hersliter proacribed. 8 2 For work puiOrmd on a footage basis Coniractor i h d be piid the rate a g r d u n and spectiid in Section 13. of

Exhibit A multiplied by the U n e u footage of dola drilled. Buch linear footage of hole dr i l l~ iha l l be determined in the manner ipecified Exhibit A.

S.3 For work pafamcd on L day wmk but.. the day work rite per twenty-four (24) hour &y ahill be a i agreed upon in Section 1Sb of Exhibit A.

8.4 If it i i neceasug to ihut down contrietor's rig for mpairn while Contractor is performing m r k on a &y wurk bis, Contractor shall be allowed cornpenantion in the manner I& out in Section 1Sd of Exhibit A.

8 6 When Contractor's rig is shot down, &hou& in rudinesa to rssnme o ti0118 but Contnctor is awaitin8 orders of Oper& or mt+ls, &ces, or other item which Opentor is obligated to =ish. ¿)perator agreei to piy Contractor the aiand-by rate specdied in Section 1Se of Exhibit A.

8.6 If loss of eirculition o6~m while ~ p e r i t i ~ ~ M being conducted on a footage basis, all operationa until cimulition Ia rsitorsd are to be conducted in recordance with the providom i e t forth in Section 14 of Exhibit A

8.7 The term "day work" M used in thii a ~ m e n t refen to the work Contractor ia to perfonn at a it i dated ium .per day. Unless otherwise provided hemin or in ibit A thii i b d l include conng, m m i n g of cored hole All item testing ~ ~ ~ ~ e ~ ~ d ~ n ~ ~ ò ~ ~ t o ~ ~ ~ s ~ n ~ ~ ~ ~ ~ ~ k performed on order of opsirtor after the foot& contriet depth Id

8.8 In determining the m o u n t of day work time for which Contractor is to be compenuted i t Ia aprwd that such day work time rhall begin when Contractor, at t h e z e s t of Operator, ruspends n o d . d r i l l i n g op&tions bainq d u e t c d on a footage basis, and rha!l inelude the time rspu to restore the bole ta the urne drilling conditiom which austed when operations on a footage his were iuapsnded. For &y mrk eomprislng iers thra a tasnty-fonr (24) hour &y, Contrietor .hill be c i d the proper niaionai p u t of the m o u n t mpedited far a twenty-four (24) hour &y.

4. TIME OF PAYMENT:

t.rmr and conditions of this agreement ad &it A, -tor mgreea to mike paymanta to &tractor u hemin M t out.

footsgo work pmvided for to readnnp the foot8ga contrict drpth. papmant for III

far the number of dip work gaiormd at &y rmf ntu u i e t foxth in W o n ,Srof Exhihit A.

4.1 Subject ta prorlifom of Beetfoni 12 18 and 17 h m h , and conditioned upon fiil1 and complete camplianca with iII of tbe

4.2 Payment for mrlt grfmed on a f o o t a g b i s ibll be due and payable when Contractor completas puiormince of a11 uxepnca thereof by Operetor If Contmctar p a r f o ~ an &y work prior

&y work 1h.U ba due and pspible at th. dom of ed alaadar month. CS If the e n t h hole Ia Wed on a & work buis, pisment ihdi be dos and Jrble at the Jou of uch crkiidu month

thii Eontrict and

11) Copyright American Petroleum Institute Reproduced by IHS under license with API Licensee=Aramco HQ/9980755100


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= 9009274 0006456 313

6. STOPPAGE OF WORK:

6.1 Operator shall bave the right to direct the stoppage of work at an time prior to reaching the contract depth s F i f i e d in Exhibit A. Operator shall have the fwtber right to require the well to l e completed or abandoned a t any depth or in any stratum within the contract depth. Immediately upon receipt of inatructions from O rator, Contractor agrees to discontinue the drilling of the well and to abandon or complete the u m e as Operator map direct E Contractor han not n iched the per cent of specified footage contract depth M set out in Section 14 of Exhibit A; and if the work theretofore performed was Frformed on a footage basis, and if $e total footage drilled,. when multiplied by the agreed footage rate. ia insufficient to compensate Contractor for the cost of dl services rendered and matem1 and equipment furnished, Contractor may be compensated a t the agreed day work rates or, upon mutual agreement by the parties hereto, for all cost and expense actually incurred plus the percentage agreed to in Section 14 of Exhibit A to cover Contractor's overhead and profit.

6. OPTIONAL RIGHT OF OPERATOR IN EVENT OF DEFAULT BY CONTRACIY>K:

6.1 In the event of unreasonably slow program. urelesuisli, inattention, or incompetency on the part of Contractor in the performance of the work, Operator shall notify Contractor of its dissatisfaction. Contractor shall be afforded i reasonable period of time to correct or remedy the mattera complained of. Should Contrictor within the time afforded by Operator fail to correct or remedy the matters complained of to Operator's satisfaction, Operator shall have the right to take possession of the well, discontinue the drilling thereof, and dismantle or abandon Mme without any liability on ita p u t for any portion of the contract price. If Operator so elects, it may take possession of the well and any or all of Contractor's tools, machinery and equipment a t the well site and through ita own employees or some other contractor. drill such well to completion. If a t the time of such notice there should be danger of a blowout or other well haurdn be imminent, Operator shill have the right to immediately take over the operations and either discontinue. abandon, or continue drilling as above provided. If O rator takes over the well and Con- tractofs tools, machinery and equipment, and completes the well, Operator's cost in comprting the well, with no illowance for use of Contractor's tools, machinery and equipment, shall be deducted from the contract price which otherwise would have been payable to Contractor, m d the balance, if my, paid to Contractor. Operator shill return tools, machinerg and quipment to Contractor in M good condition M when taken over, normal wear and tear exce ted. If operations i r e taken over by Operator as herein rovided all operations t h e d t e r performed shall he at Operator's ris{ and the indemnity provisions hereof shall not apply. If h n t r a c d r cames insurance on Contractor's tools, machinery and equipment, such insurance shill be continued in effect during the period of such takeover and Operator shall reimburse Contractor for the cost of auch insurance during such period. If Operator should no elect, O p m t o r may senus such insuance through some other source includine assumption of the risk as a self-insurer.

7.. CASING PROGRAM: 7.1 The casing program shall be as provided in Section 6 of Exhibit A. The exact setting depth of each shing of caning. the

amount of cement, and the procena to be ~ e d in cementing, shall be specified by the Operator at the time of each casing setting. 7.2 Contractor shall run and cement all strings of cuing and shall he cornpenanted therefor either a t footage rates or a t

&y work rates M aet out in Exhibit A If casing is run and cemented at footage rates, Contractor shall at ita expense condition the hole; ron and cement the casing; wait on cement to harden (with prescribed waiting time to commence when plug hita bottom): drill the plug; wash +e hole; and withdraw the bit. If casing is RUI and cemented at day work rates, Contractor shall be paid for all time conaumer in the proceas at applicable day work ribes.

7.3 Contractor agrees to keep thread protectors on the u s i n g until it ia taken from the racks to be run into the hole, and to grrsse the h d M i t is made op with a suitable pipe lubricant. Contractor further agrees to preserve all p ro techa and affer well is completed to b m k down dl surpl- wing. put proteeton on u m e M i t u broken down, and return such caning to the pipe ricks i t the rig.

8. DRILLING METHODS AND PRACïïCES: 8.1 Contraetor agrees t o o + o r m all work to be conducted by him under the terms of this Agreement and the specifications

and conditions set forth io ibit A with due diligence and care in a good and workmanlike manner and in accordance with good drilling practices.

82 Contnctor .gms to maintain well control equipment in good operating condition a t a11 timas checking it as prescribed in Section 4 of Exhibit A,. and shill we all nisonable meam to control and prevent fires and blowout& to protect the hole, and to protect û p e n t d s equipment.

8.3 Contractor agrees to maintain the mud pmgrnm in a manner satisfactory to Operator. The drilling fluid shall be main- tiined in accordance with specifications set forth in W o n 7 of Exhibit A. The amounts of mud and mud conditioners to he furnished by either party shall be M specified in Exhibit A If Operator furnishes mud and mud conditioners, Operator shall bave supervision over the use of theae materials.

8.4 Contractor . g r n a to keep a log of the well noting the nature, depth and thickness of formations encountered and to save and hbel samples of such formations as Operator may request. Such log shall a t all times be subject to inspection of Operator or ita representative; and, opon completion or abandonment of the well to which it pertains shall become the exclusive property of Operator. Contractor agrees to promptly notify Operator whenever any oil and/or gas-beaiing formation is found. Operator shall be afforded sufficient time to examine Mid formation to determine whether or not the well should be completed in same, and for auch time conaumed Contractor shall be paid applicable day work rates.

8.6 Contrictor a p e a that e? .sort 0.1 be made to drill a straight hole and to make diligent effort to. maintain it? Elope within the allowable limits specdi in Exbibit A. Contractor agrees to make slope testa ns specified in Section 8 of Exhibit A, with the cost of nuking such slope testa to be included in the footage rate if the well ia being drilled on a footage basis. If the slope of the hole is found to be beyond the limib specified in Exhibit A while work is being conducted on a footage basis anil if requestad by Operator, Contractor agrees at ita cost to -ment off redrill or correct the slo e of the hole to the satisfaction of Operator. Operator reserves the right to require d o tests idditiAna1 to h o s e specified in &hibit A. In making such additional doge teuta if i t is found that the slope of the hole is &ond the prescribed limita set forth In Exhibit A, the cost of auch tests is to borne by Contractor; and, if requested by Operator, Contractor agreas at its own cost to cement off, redrill or c o m e t the slope of the hole to Opentor's satisfaction. If the slope of the hole is found to be within the prescribed limits of Exhibit A, rig time used to make the teat shall be paid for at the applicable day work rate.

9. CORINGS AND CU1TINCS: 9.1 Conhrctor aozaps to take corq. u m t out in e t i o n 9 of Exhibit A and, in so doing, ta utilize a type of oquipment

~ p ~ i f i e d thereia AU coring shall be paid for at the apphuble day work rate unless o t h e m e specified in Exhibit A.

10. BEPOnIS n> BE FURNISHED BY CONTRACTOR: 10.1 Contractor shill keep and furnish ta Operator a daily drilling report showin depth o! the hole, formations penetrated

and iuch.other data as required by operitor, Drilling re rt forms shall be as furniahefor specified by the Operator. In the absencd of specûiutioru by Operator, the Standard API-MODFReprt Form shill be wed.

103 Contractor shall report to Operator u soon M practicable a11 accidents or occurrences resulting in Injuries to Contractor's employees or third parties or &mage to p r o m of third ies, h i n g out of or during the course of operations of Contractor or of any subcontractom of Contractor and when requasd%hall furnish Opentor with a copy of dl reports -de by Contractor to Contractor's insurer or to others of 'mch 'dden ta and occurrencea.

random for which Opsrator i. obli&hd to reimburse Contractor mhdl be tnrned in M received with the daily drilling report. h e quantity, dsldpt ion, and condition of materids and mppliei, :o furnished shall be d i e d and checked by Contractor, and auch deliwry ticket. ahall be pmpexlg d i e d u ta receipt by Contr&?tor'a tepredentative.

il. INSURANCE AND 1NDEi"ITY:

minimum amounts U foliori:

.

10 8 Delivery ticketa covering muy nutarials or supplies furnished by Operator or furnished b

11.1 A t any and all tim- during tbe term of tbia .peemen& C m i e t u r a m to ey inmruiee of tbe typea and in

L Workmen's Compenution h u n n c e in full complhce with dl appliuble Stara and F d d hri and Reenlatiom b. Employu's Ltbi i i ty hmmnee in the minimum l i m b ob $lOO,OOO or $ m d d d covering injury or dwth ta

m y employee which may be outside the reopo of the Workmds Compenution sistuta of tbe a t i t . in which the work is porfmed.

(0 ) Copyright American Petroleum Institute Reproduced by IHS under license with API Licensee=Aramco HQ/9980755100


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c. Comprehemive General Liability imurmca with minimum limita of $100,000 or -or iujw to or dcitb of M T one peraon and $200,000 or -or any one accident and with minimum Iimit. of $l00,ooB or L m Prol>e* damage.

d. In the event steam boilera are used, insurance against the hazard of boiler explosion covering propOtt7 dunage and h j u q to or death of t h i i parties in minimum amount of $100,000 or L--””1ess mcb carsragß ia i n d n d d in “e” above.

e. Automobile Liability insurance covering owned, non-owned, and h i d automotive equipment with minimum limits of $60,000 or $ t o r injury to or death of any one penon and $100,000 or $ t o r my one accident and $60,000 or $ property damage.

f.

g.

h All such insurance shall be eamed in b company or companie3 acceptable to Operator and shall be maintained in full force and effect during the term of this agreement, and shall not be canceled altered, or amended without ten (10) days’ prior written notice having first been furnished Operator. Contractor agrees to havi i t s insurisce amet furnish Operator a certificate or certificates evidencing insurance coverage in accordance with above requirements and, when requested by Operator, to furnish certified copies of all such insurance policies.

11.2 In the event Contractor is a self-insurer and, Operator has consented to Contractor being,a self-insurer as to any one or more of the risks as to which coverage ia herein required, evjdence of such consent must be in writing and approved by a representative of Operator authorized to enter into such consent agreement.

11.3 Contractor agrees to protect, indemnifp, and nave Operator harmless from and against a11 claims, demands, and causes of action of every kind and character arising in avor of Contractor‘s employeei, Operator’s employeea, or third parties on account of bodily injuries, death, or damage to property in any way resulting fmm the willful or negligent acts or omissions of Contractor and/or Contractor’s agents, employees, representatives, or subcontractors.

12. TAXES AND CLAIM: 12.1 Contractor i g n e s to pay dl t u e s , licenses, and fees levied or assessed on Contractor in connection with or incident to

the performance of this contract by any governmental agency for unemployment compensation insurance, old age benefits, social security or any other taxes upon the wagen of Contractor, ita agents employees, and represcntatives. Contractor agrees to require the samk agreements and be liable for any breach of sucb agreements by any of its subeontractoni.

12.2 Contractor agrees to reimburse Operator on demand for aU such taxes or governmental charges, state or federal, which Operator may be required or deem i t necessary to pay on account of employees of Contractor or its subcontractors. Contractor agrees to furnish Operator with the information required to enable it to make the necessary reports and to pay such taxes or charges. At its election, Operator is authorized to deduct all sums so paid for such t u e s and governmental chargea from such amounts as may be or become due to Contractor hereunder.

12.3 Contractor agrees to pay all claims for labor, material, B&C~S, md suppliea furnished by Contractor hereunder and afreea to allow no lien or charge to be fixed upon the lease, the well, the land on which the well is to be drilled, or other property o Operator. Contractor agrees to indemnify, protect, and save Operator humless from and against all auch claims and liens. If Contractor shall fail or refuse to pay any claims or indebtedness incurred by Contractor in connection mth the drilling of any well or wells hereunder, it ia agreed that O erator shall have the right to pay any auch claims or indebtedneas out of any money due or to become due to Contractor hereunjet. No assignment or transfer by Contractor of rights to monies due Contractor hereunder shall have any force or effect as fa r as Operator’s rightJ are concerned until all such claims and indebtedness incurred by Contractor shall have been completely liquidated and discharged.

12.4 Before payments are made by Operator ta Contractor, Operitor may require Contractor to furnish proof that there are no unsatisfied claims for labor, materials, equipment, and supplies, or for injuries to persons or property not covered by insurance.

13. RESPONSIBILITY FOR LOSS OF OR DAMAGE TO THE EQUIPMENT OR TEE HOLE: 13.1 Contractor’s Surface Equipment: Contractor shall be liable at dl times for damage to or desmiction of Contractor’s

surface equipment including all drilling tools, machinery, and appliances for une &ove the surface, and for any other type of equipment including in-bole equipment when such in-hole equipment is above the surface regardless of when or how such damage or destruction occurs. Operator shall be under no liability to reimburse Contractor for any such loss except loss or damage thereto caused by negligence or willful acts or omissiona of Operator or Operator’s agenb, servants, or employe=

performed on a footage basis for damage t o or destruction of Contractor’s in-hole T i p m e n t , including drill pipe, drill collua, ans tool joints. Operator shall be under no liability to reimburse Contractor for any suc loss except loss or damage thereto mused by negligence or willful acta or omissions of Operator or Operator’s agents, servants, or employeea.

13.3 Contractor’a In-Hole Equipment - Day Work Basis: Operator agrees ta reimburse Contractor for Contractor‘s tools and equipment lost in the hole while Contractor is working on day rates, unless such losa ia mused by Contractor’s negligence. The basis of reimbursement shall be as specified in Section 14 of Exhibit A

13.4 Operator’s equipment: All machinery, tools, material, and equipment furnished by Operator W l , at the completion or abandonment of the well, be returned to Operator in as good condition as when received by Contractor, ordinary wear and teiir excepted. Contractor shall not be liable to Operator for any loss or damage to such equipment except that due ta negligence of Contractor, its agenta, representatives, employeea, or subcontractors.

13.6 The Hole-Footage Basis: Should the hole for any cause attributable to Contractois operation. be lost or damaged while Contractor is engaged in the performance of work hereunder on a footage b i s all such loss or damage to the hole shall be borne by Contractor. If the hole is not in condition to be earried to the contract depth provided for in M b i t A. Contractor shall properly plug and abandon the bole and. if reqoested by Operator, commence a new hole without delay at Contractor’s coit. The drilling of the new hole shall be conducted under the terms and conditions of this contrict and Exhibit A in the u m e manner M though it were the hole that had been lost or damaged. In such case, Contractor shall not be entitled to any payment or compen- u t ion for expenditures made or incurred by Contractor or in connection with the abandoned hole except for day work earned in coring, testing. and logging said well or other day work for which Contractor would have been compearated h id SU& bole not been lost and abandoned. If any casing or material furnished by Operator has been set or installed in the hole which was lout, and sueh easing or material cannot be recovered from the lost hole or, if recovered, is damaged beyond further me. and provided such Iws or damage W ~ B the result of or caused by Conbctor’s negligence, Contractor shill replace d 1 ruch w i n g or mitari.1 furnished by Operator.

13.8 Not withstanding the foregoing roviaions of paragraph 18.6 hereof, U the hole is lost or dimiged by moon of the failure of casing or equipment furnished f y Operator or by reason of the fiilure of a esmenthg job such losa shill be borne by Operator, provided there was no negligence on the part of Contractor.

13.7 The Hole -Day Work Buis : In the event the bole is lost o r damaged while Contractor ia m r k i n on a day work bisia or M the m u i t of work perfomed on a dey work basis and provided thm wan no n.riiosnee on the put d Contrietor, Opantor ahall be responsible for mch losi or dams- to the hol;.

tion of Yatends Furnished by O rator: Contractor ahdi eumine .U cuing equipment, michtnary bols or othefsifed?8%ished by Oferator and if any d e g t s are found therein iufficient to make &s’nie of m y mch items %niul&le or unade, Contrietor shall mmediatcl notify Operator of such defect or dei& and Owdm h l i i t onw npi.ea the item so found defective. Should Contrac+r faif to make sucb examination or fail ta report a defect in mch item or itam. Contnctor i h d l be deemed to have ansummi all naks and all ünbility for any mishap which may occur hi the of u i d well by -n of Mure or def-t. in meh uaing, equipment, nuchinmy, took, or other itemn except for Mnm &%%at ddrtr.

( 8 )

.

13.2 Contractor’s In-Hole Equipment - Footage Basis: Contractor shall be liable a t all times wbile work is bein



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W 9009274 0006458 196 W

11. INI)F:I?ESl)ENT CONTRACTOR RELATIONSEIP:

14.1 Contractor abdl be ui independent mntractcu with mapoet ta performuic6 of a11 work hersunda m d neither Contractor nor anyone employed by Conbe to r shill be deemed for uiy purpose to be the emplo ee agent, servant, or representative of Operator in the performanm of any work or wrvim or rny Part thereof in any manner deait with hereunder. Operator shall have no duedion or control of Contnctar or ita employee^ and agents eucept in the results to be obtained. The work contemplated herein n h d meet the appmvd of Operitor rnd be mnbject to the general right of inspection herein provided for Operator to secure the satisfactory completion ther%oZ.

14.2 The actmi performance m d rnperiatendenca of .U work hereunder shall be by Contmctor but Operator or its repre- nentatives shall have Unlimited access to the premiaes to determine whether work is being performed by Conbe to r in accordance with all of the proviaions of this contract and Exhibit A.

15. I A W S , R I ? I X S A N D REGVI.ATIOSS: 16.1 Contractor and Operator Tpeet lvely agree to comply with all Iaw~, riiles and regulationa, federal, state, and municipal,

which are now or M y h o m e appliuble to opariüons covered by this agreement or arising out of the performance of such operations.

16. FOI:( t,. 51 \JI:t?l¿l?: 16.1 Neither Operator nor Conbe to r hall be liable to the other for any delays or damages or any failure to act due

occasioned, or caused by reason of federal or state kars or the rnlea, regulations, o r ordem of any public body or official purportin; ta Fercise authority or control respecting the operations covered hereby, including the use of tools and equipment, or due, occasioned, or caused by itnkes, action of the elements, o r causes beyond the control of the parties affected hereby, and delays due to the above causen, or my of them, shall not be deemed to be a breach of, or failure to perform under, this agreement.

I;. W l T I I l l O l ~ l l l ~ G FCNIJS: 17.1 Operator may withhold a percentage of the prim agreed to be paid Contractor for the purpose, in the manner, and for

the time provided in applicable laws of the uer where the work is performed, said percentage to be ultimately released in accordance with such hm. The percentaga, if my, to be reîaimd ~hlI be M met forth in Section 14 of Exhibit A.

18. ISGlllCSS A S n EG11ESS TO 1.OCATlOh?: 18.1 Operator shall secure for Contractor rights of i n m a and egress to the tract of land on which the well ia to be drilled.

Operator sbsll advise Contractor of m y limitations or restrictions Iffe-cting ingress and egress, and Contraetor shall abide by and shall have its ,employees, agents, or subcontractom abide by such limitations or restrictions. Should Contractor be denied free access to the location for any reason not within the control of Contractor. time lost by such denial shall be paid for at a reasonable rate in keeping with the itage of 0pent10~ at the time.

19. AUDITS:

19.1 If any payment provided for hereunder ii to be made on the basis of Contractor?s costs, Operator shall have the right to audit Contractor?s books and reeordi relating auch eosta. Contractor agrees to maintain such books and records for a period of two (2) years from the date auch cosb were mcurred m d to make such books m d records available to Operator at any time or times within the two-year period.

20. PATESTC A S D LlCEXSFS 20.1 In addition to the indemnifying provisions contained in paragraph 11 hereof, Contractor representa and. warrants that

t h e use or construction of m y and all tools and equi ment furnished by Contractor and used in the work prooided for herein doea not infringe on m y license or patent which has L n iasued or applied for, and Contractor agrees to indemnify and hold Operator harmless from my and al1 claims, demands, and causes of action of every kind and character in favor of or made by any patentee, iieensee,.or eliumant of any right or priority to an such tool orpquipment, or the use or construcfion thereof, which may result from or anne out of the hunishinp or ode of any s u d tool o r equipment by Contractor in connection with the work under this agreement.

21. COSFLICTS: 21.1 In the event there is a conflict between the provisjons hereof and any papers or documents, other than Exhibit A hereof,

which may have been executed or passed between the parties hereto in connection with the subject matter hereof, it IS understood and agreed that the provisions hereof shall be controUi.ng. If there be a conflict between the provisions hereof and Exhibit A, it is understood and agreed that the provisions of Exhibit A shall be controlling.

22. ASSIGNMESTS:

by subcontractors, and not to assign any 22.1 Contractor 8gre.e~ not t? snbiet or assign any of the work required hereunder, except for .work normally performed

that may accrue to Contractor hereunder without written consent of Operator.

WITNESS th. s h t u m of the parties hereto in DUPLICATE ORIGINALS, this

&Y of , AD. 19-

WITNESSES:

By:



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9009274 000b459 O22

3

Published by Division of Production American Petroleum Institute 300 Corrigan Tower Dallas, Texas 75201

Model Form IA2 Firnt Edition August, 1962

EXHIRIT A BID SHEET AND WELL SPECIFICATIONS

Gentlemen: We solicit your bid to drill and complete the hereinafter designated well. This bid form has been fiIled in by us to the extent necessary to disclose the manner in which we desire the well t o be drilled.

If you desire to submit a bid, please complete this instrument in every respect, execute the original and two copies, and return to our office at not Iater than a.m. p.m.

,l9- Very truly yours,

By:

1. ?)AME ASD LOCATIOS OF WELL: Well Name Parish and Number county- State

Field Name Well location and land description_

2. CO>I.IIESCEIIEST D A l E :

19-, or, in the event Operator is to clear and grade location and furnish niadM*ay or other ingress or egress facilities, within days from the date of completion of the clearing and grading and construction of roadway, or such other

ingress or egress facilities, whichever is the latter.

3. DEPTH: Subject to right of Operator to abandon the well or to have the well completed a t a lesser depth, Contractor agrees to

drill the well to a total contract depth of-eet. Contractor will drill the well on a footage contract basis (See

Section 13a hereof) t o L e e t . or the top of the feet of penetration into formation, whicbever ia first reached. Drilling between the footage contract depth and total contract depth, if any, shall be a t day work rates as specified in Section 13 hereof.

A t Operator's request Contrador agrees to. drill to a depth greater than total contract depth if in Contractor's opinion equipment at the well site is capable of such drilling. Rates for auch drilling ah11 be negotiated by the parties hereto unless otherwise provided by Section 13 hereof.

4.

Contractor's Rig No Drawworks : Engines - Number, Make & Models: Slush Pumps - Make, Model & Size: Auxiliary Pump & Power: Derrick or Mast - Make, Size & Capacity: Substructure - Height & Capacity Drill Pipe - Sizes & Amounta: Drill Collars -Sizes & Numbers:

Contractor agrees to commence a c t u a l o p e r a t i o n s a t the above location on or before

formation, or

RIG ASD EQCIPYEST TO RE FCRSICHED BY CONTRACTOR:

Blow-out Preventern -Pow- Actuated: Casing String BOP Size API Series

BOP Pressure Tests No. and Style h q u e n c y Psi

Surface Intermediate

Production

Operational check8 of BOP Equipment SW be nude an follows:

(1) Copyright American Petroleum Institute Reproduced by IHS under license with API Licensee=Aramco HQ/9980755100


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9009274 000b4b0 844

5. Al>l>ITIOSAI, EQI‘IPMEST, MATERIAL, and/or SERVICES TO BE PROVIDED AT THE I.O<‘ATIOS IXï THE I’ARTï

1 42. Refill and level slush pits

DESIGSATED:

pp

1. Rights-of-way and roadway into location

2. Clear and grade location

3. Lay boardroads and turnarounds

4. Cellar and slush pits

5. Steel mud and circulating tanks

9. Drilling mud clay separator pp

10. Fuel -gas, butane, diesel or crude

11. Water

12. Fuel and water lines and rights-of-

~

way to location ~

13. Water storage a t location-capacity

14. Coring reel with sufficient wire line

15. Wire line core barrel and accessories

16. Diamond core barrel, handling tools

11. Conventional core barrel (old type)

18. Casing, essentially as specified herein

19. Casing shoes, floats, centralizers and

20. Cement and cementing semee for

and accessories pp

pp

_____

scratchers

casing jobs ~

I I I I

21. Electric logging and other wire line surveying semces

6. Shale shaker, type

7. Degasser

~

23. Gun or jet perforating services

Il- I 1 8. Desander

43. Kelly joints, subs, elevators and slips for use with special drill pipe I

I ’ 24. Casing tools for casing sizes specified i

25. Tubing tools

26. Bi t s , r e a m e r s , c o r e h e a d s , a n d

27. Stabilizers. drill pipe protectors and special tools when on “day-work”

, catchers, when on “day-work’’

I 28. Drill pipe casing protectors when on 1

footape I

29. Special f ishinp tool services and , rental, when on “day-work”

30. Mud logging service I I i 31. Automatie drilling time recorder

32. Storage facility for dry mud and chemicals

33. Reel and measuring line 1

35. Welding service for welding bottom joints of casing, guide shoe, float shoe, float collar and in connection with installinp of well head equipment, if required

36. Tubing, liners, screen, float collars, guide and float shoes and associated equipment

37. Well head equipment for testing, completion and operation of well

38. Canals, slips and keyways for inland water operations

34. BOP remote control s ta t ion and ’ accumulator unit

1 I

39. Crew boats and fuel

40. Pusher’s boat and fuel

41. Marine transportation for other personnel

I 1 22. Drill stem formation testing service 1 I

46.

6. CASING AND CEMENTING PROGRAM: . . Pmposed Prapoaed Footage

Yin. Casing Setting Scratchers CeatraIizers Quantity or Day Bole Dia. OD In. Depth Number Namber Cement WOC Ers. Work



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7. MIX> PROGRAM:

, agrees to furnish al1 mud conditioners (additives and chemicals) in excess of $ for drilling and completing the well.

necessary will urange to purchase all necessary mud conditioning materials.

h m To Type Mud Weight Viscosity 7.0 Oil Water Loss

8. STRAIGHT HOLE SPECIFICATIOSS: Maximum Distance

Well Depth Between Surveys,

From To Feet

Maximum Deviation from Vertical, Degrees

Maximum Change of Angle (or Over-All Angle) Between Any Two Surveys, Degrees'

Location of well bore at feet shall be

*Reduce proportionately for survey intervals Jess than 100 feet, but do not use intervals less than 30 feet. The foregoing rate of change shall not be limiting in case of whipstocking approved by Operator.

9. PROPOSED CORING PROGRAM: appro^. Depth Formation Type Core Size Footage

10. PROPOSED WIRE LINE SURVEYS: Type or E n d From To

11. PROPOSED FLUID PRODUCïlOS TESTS: Tgpe or Kind From To

12 DESIGNATED REPRESENTATIVES:

Operator

Remarks :

Zone to be tested :

Coniractor

(Nlrbt Telephone Number) (NIrht TdeDhon8 Numbar)

13. COMPENSATION TO BE PAID CONTRACTOR: a. For work per foot for each linear foot of bole drilled. Such

bear footage s h a r b e determined by steel line measurement and such measurement shall be from top of rotary dnve bushing to the total depth drilled lesa distance from ground level or water bottom to the top of the rotary drive bushing and less footale dnlled while work is performed on a day work b i s . If the cellar ia furnished by Operator. ground level shall be construed to mein the bottom of such cellar.

b. For a11 work performed with a full crew on a &y work basis, ma defined in the contract., Contraetor ahall be p.id rate for sieh twenty-four (24) bour day an follows:

rformed on a footage basis, the sum of $

Depth IntÆrvds From To With Drill Pipe Withod Drill Pipe

Using Oparibr'l! Pipe



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9007274 0006462 617

c. A full crew shall consist o f m e n . For each man crew is short, Contractor‘s day rate shall be reduced by the daily .te of pay of such man.

d. If it becomes necessary to shut down Contractor’s rig for repairs while Contractor is performing work on a day work basis, Contractor shall be allowed compensation for such repairs a t the appropriate day work rate commensurate with the stage of operations then in effect: ¡.e., with drill pipe or without drill pipe rate. The number of hours for which Contractor in to he compensated shall be limited Y follow’s:

For any one repair j o b h o u r s .

Total hours per m o n t h

Total houn, in the iggregata for the we-

e. For stand-by time while waiting on orders or equipment to be furnished by Operator, a stand-by rate of $ per twenty-four (24) hour day with full crew or $ per twenty-four (24) hour day with watchman only.

f. If the formation drilled to on a footage basis is unproductive and Operator elects to plug and abandon the hole, Contractor hours of rig time without charge in lieu of rig time required to set casing included in agrees to furnish

footage rate.

1 i. ! i l ’ l ~ ~ ~ l . î l , A ~ l ~ l ~ ~ I < Y I ~ S T S :

... percent of contract consideration to he retained by Operator pending completion and acceptance of the work.

... If work is stopped by Operator as provided in Paragraph 6.1 of the contract, Contractor shall be paid in accordance with provisions of the contract and the rates herein agreed to unless stoppage occurs prior to Contractor’s having r e a c h e d percent of contract depth. For purposes of this work stoppage provision, contract depth shall be deemed to b e d e e t ; and the percentage to be allowed to cover Contractor‘s overhead and profit shall be -9’0.

. . . If loss of circulation occur6 while normal drilling operations are in progress on a footage rate basis, Contractor shall notify Operator of such loss and shall use all reasonable means to restore the same, without compensation for the first __ hour niter the loss. If Operator concurs that such condition exists, operations to restore circulation after said - hour period shall be performed on a day-work basis until normal cllculation is restored; provided, however, that Operator shall not be responsible for any fishing job or sticking of drill pipe, or other difficulb, which occurs during or prior to the said - hour period, unless said difficulty is a direct result of said loss of circulation, and Contractor rhall bear all expenses in connection therewith without compensation until said difficulty ia overcome. Subject to the foregoing, in the event, during the drilling of the well, the allowed time in the aggregate exceeds - hours, all operations thereafter performed by Contractor in attempting to restore circulation shall be on a day-work basis. ... Bank for payment to Contractor for equipment lost in hole while on day work rates (See Sec. 13.8 of contract) shall be 8 s .

f0Uows:

(Note: Conditions may require dansea p e c u l i i to certain geographicnl ueas. When such conditions exist, needed special &unes may be inserted in thh Section.)

In zwp0-e to the above reqnwt, our bid for the drillhg of the well hereinabove described is submitted as set forth above.



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1

i

f :

~

m 900927Q 0006463 553

ABNORMAL DRILLING CLAUSES (For pouible UM in 8eetion 14)

. . . "Abnormal Pnsntn, etc"

While operations are being conducted on a footage byis, ibould loss of circulation, abnormal pressures, salt water flow, domal formation, heaving shale or aimilar formation, ult, m other condition be encountered which makes drilling abnormally difficult or hazardous, causing drill pipe or using to stick, or other s imüu difficulty which precludes drilling under normal procedure. Contractor in a11 such u s e s and without dday, .h.ll rue wonable means to overcome such difficulty. When such condition u encountered, Contractor iiuil immediately n o w Operator. If Operator concurs that such condition exists a11 operations from the time the condition ir encounted until n o d d r ü i i i ir mumed shail be on a day work h i s . If Operator fails to reply to the notification of Conhe ta r within twenty-fonr (24) hours therefrom, it shall be concJuaively presumed that Operator concurs rith Contractor that such condition erist.. Ii Opemior docs not a g m that auch condition exists, operation shall be continued a t footage rates. Abnormal pres- ahail be preaumed O arist in the event mud weight in ums of -,pounds per gallon is required to control formation prwmre.

. . . "Chert. etc"

While operations M being conducted on a foe- barb, should chert, s e h t , pyrite, quartrite, or .M i te be encountered Contractor shill notify Operatois repmenti t ivs of mch conditiona. Ii Operator concum that such conditions &st and if, solely because of auch conditions. by continuona and -t drulingConîmctar fail. to drill footrgl within twenty-four (U) hour period which, when multiplied by the agnd footaga rate, doea not a q u i or exceed tha appüubia &y work rat%, plus mt of rock bita used during mid period, Operator rb.ll eompanute Contractor at the applicable day work rate and reimburse Contractor for the cost of al1 rock bit. rued. Conünuoru and diligent drilling shall mean only time during which the bit ia actually being rotited on the bottom uid the time consumed in making round trips to change bits. It shill not include ihut-down time due to rappairs to Contractor'. equipment ûpemto?s opinion u to the geological formatiom enconntmd ihrll be amduaiva

. " P w k Of m t i O n , bk."

While operations M bung conducted on a footye his, ihould pUtiii loss of circulation occur .nd impede normal drilling progmu, Conhrctor shall fmmediatdy report snch condition to the designated repredentatire of Operator. Ii Operator e o n m that inch condition axiab, the drilling operation may be continued at a reduced rate of circulation. U, under au& wndiîions, the footam drilled during aieh twenty-four (U) hour @od multiplied by the footage rate d w i not u p s 1 the applicable day work rata plus the cost of rock bits Operator shall campaauta Contractor at the agreed day work rata and a h l l refmbarie Contractor for the cost of dl rock bita wed dnring snch period.

. ~ . -- Copyright American Petroleum Institute Reproduced by IHS under license with API Licensee=Aramco HQ/9980755100


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7009274

hbiinhed b Divkion of koduction American Petroleum Instikite 800 Comgan Tower D ~ l l ~ . T e x a s 76301

0006464

~

4 9 T

aiudei Form 4B1 First Edition Angnat, 1962

MASTER ROTARY DRILLING CONTRACT Operator's Number

THIS AGREEMENT made and entered into by and between

hereinafter called Operator, and

hereinafter called Contractor

WITNESSETH: THAT, WHEREAS, Operator is the o-, part owner, d l m tor of c d d n pmperrien on which it may from time to time deaire to hive a well or wells drilled and completed in œueh d bsorm and, WHEREAS, Contraetor ia engaged in tim bduœs d drilling and aompl- mdi me and represpts that i t hia p d T t e .quip-

triinsd penomel cap&le of effiaently apsritmg mch m i p m e n t with which it deaires to &ill and complete such weii or w a k ; NOW, THEREFORE, the partiu hcrato, ueb in eoniidmtion of the promises and iPehmeIItr of the other. mutually a m e u follows:

. ment in good working order and

1. MASTER CONTRACT: 1.1 If a t any time during the tem d this agreement Operator desins to have a well or w e b drilled and completed.by

Contractor Operator shill prepare and mbmit to Contractor a Bid Sheet and M n g Order, hereinafter referred to as "hlling Order.'' Sich Drilling Order shall set forth the location, the depth to be drilled, specificstions, and other coriditions under which the well or wells are to be drilled and completed If Contractor dasiren drill and complete- for Opemtor the well pr, wells set forth in the Drilling Order under the tarins of tlua agreement and conditions and spee~ficnbons aet forth in the Dnlling Order, Contraetor shall complete the Drillin Order. iettiag forth the priees i t proposes to charge for its s r n i e e s , and pmperiy execute the Drilling Order in duplicate origin% and r e h Mme to Operator. If Operator is satisfied with Contnctor'm roposals, Operator shall execute the Drilling Ort+ and re* one dupliuite.original to Contractor. When a Dril ï ig Order h &, agreed to and executed in the manner hereinabove pmvided, such Drilling Order shall become a part of .this a p m e n t ind .hall govern and control the drilling and completing of m y well or wells by Contractor for Operator. Execution of this masta? contract agreement done does not obligate Operator or Contractor to enter into any Drilling Order, one with the other.

1.2 If and when a Drilling Order has been executed by the parties hereto, Contractor agrees to commence operations for drilling of the well at the time and on the date set forth in Section 2 of the Drilling Order, and to drill and complete the well covered thereby for the productiai of oil andlor gas, at the loation, in the m m e r , to the depth, and in .ceordance with a11 of the provisions and specifications d this 4.g'reement and the Drilling Order.

2 LABOR, EQUIPMENT, MATEBULS, SUPPLIES, AND SERVICES: 2.1 Contractor shall f u r n a ud we eqaipmslit diwibed in Seetion 4 of each Drilling Order. 23 All labor, equipment, iiutari.l, aupplim and d m aüceasary the pmper operation or maintcnuiee of the dnlling rig

ahall be furnished by Contractor. Additionil mibïi.l, eqnipment, specld tools, supplies and serrica utceassry or proper to the drilling and completion of the well shall be furnished at the drill site by the p q designated in Section 6 of the Drilling Order. Should toolsl maten&, awratus or servim, other thii those set fo+ herein or designated ia the Drilling Order be necessary to the dnllmg or com letion of the well, the cost of mch tool, matenals, apparatus or rarricsS and the manner in which they are to be furnished M to k agreed npon by the @es hereto.

2.3 Operator will stake the location of the well and f d h mch labor, equipment, mahr¡ds, supplies and services as are rpecifica!ly set out in Sectlon 6 of the Drilling Order. Should the Drilling Order apec i f idy require that cement and other materials and semcea be furnished by Operator, auch requirement shall not include cement, mbari.lr, mppliw, and services nee+sdug to plugging and abandonment occasioned by Contracto?s negligenee-

2 4 Should Contractor purchase for Operator at OperaWa request an nubarkls, supplies, or equipment which Operator is obiigated to furnish d e r the temu of this agreement or in Drilling &er, Operator .green to pay Contractor within 30 days after date of receipt of Contractor's invoice the actual c a t o f such materials, supplies, or equipment, lesa any u s h discounts thereon to which Contractor may be entitled. Should O erator fail to pay such invoices within the time herein specified, Operator ahall not be entitled to any such a s h discounts and s d immediately pay Ccntractor the g m s a amount of such invoices. Contractor agrees to furnish Operator copien of aupplim', vendors', or third party invoices covenng much mat.&&, rupplies, or qurpment.

a. FOOTAGE RAT& DAY WORK UTE. STAND-BY BATE, BASIS OF DETERMINING AMOUNTS PAYABLE TO CONTRACTOR: 3.1 Subject to all of the other provisions h-f oplitor agieen to pay Contractor for the work pe+ormed, servicon rendered,

and the materials, equipment, and supplies furnmhed by Contiretor, B m m computed aa hereafter p-bed. 3.2 For work performed on footage b i s , Contractor shall be paid the rate agreed upon and s Sied in &tion 13. of

the Drilling Order multiplied by the lin* footige of hole drilled. Such beu footige of hole drilled s%l be determined in the manner specified in the Drilling Order.

8.8 For work performed on a day work bosh, the day work rate per twenty-four (24) hour day ibill be u agreed upon in Beetion 1% of the W i n g Order.

8.4 if i t ia necessary to shut down ContrrctOis rig for repairs while Contractor is performing work on &y work b i s , Contractor shall be aliowed emnpenaition in the m m e r set out in Section 18d of the Drilling Order.

8.6 When Contractor's.rig Y abut doan, although in readiness resume ope+.¡ons but Contractor i i awaiting orders of Operator or materials, semcea, or other items which Operator Y obhgated to furnish, Operator .grass to p.y Contractor the .tand-by rate specified in Seetion 18e of the Drilling Order.

8.6 if loss of circulation ocara while 0 p e r p t i 0 ~ e being conducted on a footrge buiir, dl 0 p e m t i 0 ~ until circulation is restored are to be conducted in amardance with the pmmsiom set forth in Seetion 14 of the Drilling Order.

8.7 The term "day work" .p used in this i p m e n t refers,to the work Contyctor Y to,~erform at a stipulated sum per day. Unless otherwise provided herein or in the Drilling Order, this shall iadude co , -iug of cored hole, drill stem testing, electnc iogghg, or nimilar operations, and all other work performed on order of?btor after the footage contract depth lua been reached and until Operator rel- Con+zactor's rie.

3.8 In determining the amount of &y work time for which Contractor is to be wmpawatud. i t ia agrred that such day vark time .hall begin when C o n w r , B! the request of Operator, suspends n o p , d drilling omti0118 wmg conducted on a footage bania d shill include the time quuad to ratom the hole to tha -me dnllmg conditions which cnstcd when o OM on footage b i s were mspended. For &y work compTi*ng lesa th.n a twenty-four (24) hour day, Contractor a s p a i d the proper irietional part of the unount specified for a twenty-four (U) hour day.



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9007274 0006465 326 =

4. TIME O F PAYMENT: 4.1 Subject to provisions of Section8 12, 13, and 17 herein, and conditioned opon full and complete compliance with all of the

terms and conditions of this aereament i n d the Drilling Order, Operator agrees to make payments to Contractor as herein set out. 4.2 Payment for work performed on a footage b i s shall be due and payable when Contractor completes performance of all

footage work provided for by this contract and the acceptance thereof by Operator. If Contractor performs any day work prior to reaching the foot.- contract depth, payment for such day work shall be due and payable at the close of eich calendar month.

4.3 If the entire hole is drilled on a &y work basis, payment s h i l l be due and payable at the close of each uiendar month for the n u m b of daya work performed at day work ratea M set forth in Section 13b of the Drilling Order.

5. STOPPAGE OF WORK: 5.1 Operator shail have the right to direct the stoppage of work a t any time prior to reaching the contract depth specified

in the Drilling Order. Operator shall have the further right to require the well to be completed or abandoned a t any depth pr in any stratum within the contract depth. Immediately upon receipt of instmctiona from Operator, Contractor agrees to discontinue the drilling of the well and to abandon or complete the same u Operator may direct. If Contractor has not reached the per cent of specified footage contract depth M set out in Section 14 of the Drilling Order; and if the work theretofore performed was performed on a footage basis, and if the total footage drilled, when multiplied by the agreed footage rate, is insufficient to compensate Contractor for the cost of all services rendered and material and equipment furnished, Contractor may be compensated a t the agreed day work rates or, upon mutual agreement by the parties hereto, for all cost and expense actually incurred plus the percentage agreed to in Section 14 of the Drilling Order to cover Contractor's overhead and profit.

6. OPTIONAL RIGHT OF OPERATOR IN EVENT OF DEFAULT BY CONTRACïOR:

6.1 In the event of unreasonably slow progress, carelessness, inattention, or incompetency on the part of Contractor in lhe performance of the work, Operator shall notify Contractor of its dissatisfaction. Contractor shall be afforded a reasonable period of time to correct or remedy the matters complained of. Should Contractor within the time afforded by Operator fail to correct or remedy the matters complained of to Operator's satisfaction, Operator shall have the right to take possession of the well, discontinue the drilling thereof, and dismantle or abandon same without any liability on its part for any portion of the contract price. i f Operator so elects, i t may take possession of the well and any or all of Contractor's tools, machinery and equipment at the well site and, through ita own employees or some other contractor, drill such well to completion. If at the time of such notice there should be danger of a blowout or other well hazards be imminent, Operator shall have the right to immediately take over the operations and either discontinue abandon, or continue drilling as above provided. If Operator takes over the well and Con- tractor's tools machinery and equipAent and completes the well, Operator's cost in completing the well with no allowance for use of Contra&% tools, machinery and equipment, shall be deducted from the contract price which othdrwise would have been payable to Contractor, and the balance, if any, paid to Contractor. Operator shall return tools, machinery and equipment to

'Contractor in as good condition a s when taken over, normal wear and tear excepted. If operations are taken over by Operator as herein provided, all operations thereafter performed shall be at Operator's risk and the indemnity provisions hereof shall not a ply. If Contractor cames insurance on Contractor's tools, machinery and equipment, such insurance shall be continued in J f e c t during the period of such take-over and Operator shall reimburse Contractor for the cost of auch insurance during such period. If Operator should so elect, Operator may secure such insurance through some other source including assumption of the risk as a self-insurer.

7. CASING PROGRAM:

7.1 The easing program shall be as provided in Section 6 of the Drilling Order. The exact setting depth of each string of u s ing , the amount of cement, and the p-s to be nsed in cementing, shall be specified by the Operator a t the time of each a a i n g setting.

7.2 Contractor shall run and cement dl atrings of d n g and shall be compensated therefor either a t footage ratea or a t &y work rates LS set out in the Drilling Order. If casing is run and cemented st footage ratea, Contractor shall a t its expense condition the ho!e; run and cement the easing; wait on cement to harden (with prescribed waiting time to commence when plug hita bottom). dnll the plug. wash the hole; and withdraw the b i t If casing is run and cemented at day work rates Contractor ahall be paid'for all time cohumed in the process at applicable day work rates.

7.3 Contractor agrees to keep thread proteetom on the u s i n g until i t is taken from the racks to be run into the hole and to p a s e the thread as i t is made u with a niitable pipe lubricsnt Contractor further agrees to preserve all protectors and after well is completed to break down d surplus casing, put protectors on same as i t IS broken down, and return such casing to the pipe racks at the rig.

P. DRILLING METHODS AND PRACTICES:

8.1 Contractor agreea to perform dl work to be conducted by him under the terms of this agreement and the specifications uid conditions set forth in the Ddiing Order with due diligence and care in a gocd workmanlike manner u id in accordance with good drilling practices.

8.2 Contractor agrees to maintain weil control equipment in good operating condition at all times, checking i t as prescribed in Section 4 of the Dnlling @er, and shall nse all reasonable means to control and prevent fires and blowouts. to protect the hole, and to protect O p m t o r ' ~ equipment.

8.3 Contractor agrees to maintain the mud program in a manner estisfactory to Operator. The drilling fluid shall be maintained in accordance with specifications set forth in Section 7 of the Drilling Order. The amounts of mud and mud conditioners to be furnished by either party shall be as specified in the drilling Order. If Operator furnishes mud and mud conditioners, Operator shall have supervision over the use of thnie materials.

8.4 Contractor agrees to keep a log of the well noting the nitare, depth and thickness of formations encounfered, 'nd to save and label samples of such formations as Operator may request Such log shall a t a11 times be subject to inspection of Operator or its representative: and, upon completion or abandonment of the well to which i t pertains, shall become the exclusive property of Operator. Contractor agrees to promptly notify Operator whenever any oil andlor gas-bearing formation is found. Operator shall be afforded sufficient time to examine said formation to determine whether or not the well should be completed in nme , and for such time consumed Contractor shall be paid applicable day work rates.

8.6 Contractor agrees that every effort will be made to drill a straight hole and to make diligent effort to maintain its slope within the allowable limits specified in the Drilling Order. Contractor agrees to make slope tests as specified in Section 8 of the Drilling Order, with the cost of making such slope tuts to be included in the footage rate if the well is being drilled on a footage b.sis. If the slope of the hole is found to be beyond the limits specified in the Drilling Order while work is being conducted on a footage basis and if uested by Operator, Contractor agrees a t ita cost to cement off, redrill, or correct the Slope of the hole to the satisfaction of% erator. O rator rederves the right to require slope tests additional to those specified in the Drilling Order. In making such additional teats if i t is found that the slope of the hole is beyond the pmcribed limits set forth in the Drilling Order, the cost of such testa is to be borne by Contractor; and, if requested by Operator, Contractor agrees at its own mt to cement off! redrii: or correct the slope of the hole to Operator's satitisfaction. if the slope of the hole is found to be within the pmcribed limita of the Drilling Order, ne time used to make the test shall be paid for at the applieible &y work rite.

a. CORINGS AND CUTIINGS:

rpeeified therein. All coring shall be paid for at the applicable day work rate unless otherwise specified in the Drilling Order.

10. REPORTS TO BE FURNISHED BY CONTRACI'OR:

10.1 Contractor shall keep and fmnish to Operator a &fly drilling report showing depth of the hole, forni.tiona penetrated and such other data as required by Operator. Drilìin report forms shall be aa furnished or specified by the Operator. In tb; ibience of specifications by operator the Standard A$I-AAOUC Report Form shall be used.

10.2 Contractor shall report to Operator as soon IKI prieticable all accidents or o e n i q c e s resulting in injuries to Contractor's employees or third parties, or damage to property of third parties, arising out of o r dunng the c o m e of operations of Contractor or of any s u b e o n ~ t o r s of Coahctor, and, when,requested, shd i furnish Opar9tor with s eopy d di reporta a u d e by Contrac- tor to Conhaetor's murer o r to othen of inch icudenta and oecurrencea.

10.8 Delivery ticketa covering any materiala or supplies furnished by -tor or furnished b rsndom for which Operator f. obligated to reimbuns Contractor shall be turned in u received with the daily drilling report. h e quantity, description, rnd condition of miterida and yppliea sb fornished s h i l l be verified and checked by Contractor, and auch deliverp ticketa shall be properly certified M to receipt by Contmctor'm np-btive.

9.1 Contractor agrees to take cores as set out in Section 9 of the Drilling Order and, in SO doing, to utilize a type of equipment

tm Copyright American Petroleum Institute Reproduced by IHS under license with API Licensee=Aramco HQ/9980755100


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90íJî274 13006466 2b2 W

11. INSURANCE AND INDEMNITY:

minimum amounts u foilom: 11.1 At any and dl timen during the tam of thfi agreement, Contrictor mgrem to c u r y insuruice of the typea and in

a. Workmen's CompenSition i n a m c e in full wmpiunce with d appücnble State and F a d e d k w s and R 8 g ~ l 8 t i 0 ~ . b. Employer's Liability insurance in the minimum limita of $100,OOO or $ per accident covering injury or

death to any employee which m y be outaide the scope of the Workmen's Compensation statute of the state in which the work i. performed.

for injury or death of any one person and $200,000 or $-for m y one accident and with minimum limita of $l00,OOO or $ for property &mage.

to or death of third parties in minimum amount of $100,OOO or $

or $ $60,000 or S property damage.

c. Comprehensive Gentrd Liability inmmnce with minimum limita of $100,000 or S

d. In the event steam boilers are used, inantance against the hazard of boiler explosion covering property damage and injury onless auch coverage is included in "e" above.

e. Automobile Liability insurance covering owned, non-owned, and hired automotive equipmen: with minimum limits of $60,000 for any one meident and for injury to or death of any one person and $100,000 or $

f.

~~ -~ h. All such inaurance shall be carried in a company or companies acceptable to operator and shall be maintained in full force

ment, and shall not be Cancelad, dtered, or amended without tan (10) days' prior written notice having first been furnished r-tor. Contractor agrees to have ita insurance carrier furnish Operator a certificate or certificates evidencing insurance coverage in accordance with above requiremanta and, when requeated by Operator, to furnish certified copies of ali much insurance policies.

11.2 in the event Contractor is a self-insrirer and Operator has consentcd to Contractor being a seü-insurer u to any one or more of the risks as to which coverage is herein required, evidence of such consent must be in writing and approved by a repre- wntative of Operator autborized to enter into such consent agreement.

11.3 Contractor agrees to protect, indemnify, and save Operator harmless from and against all claims, demands, and causes of d o n of every kind and character arising in favor of Contractor's employees, Operator's employees, o r third parties on account of bodily injuries, death, or damage t.0 property in any way resulting from the willful or negligent acts or omissions of Contractor and/or Coneactor's apuit, employees, repruentatived, or subcontractors.

12 TAXES AND CLAIMS: 12.1 Contractor agrees to pay ail taxes, licenses. and fees levied or a ~ s ~ s e d on Contractor in connection with or incident t o

the performance of this contract by any governmental agency for unemployment compensation insurance, old age benefits, social iceurity or any other taxes u on the wages of Contractor, its agents, employees, and representatives. Contractor agrees to require the samk agreements and be {able for any breach of such agreements by my of its subcontractors.

12.2 Contractor agrees to reimburse Operator on demand for all such t u e s or governmental cha+ses, atate or federal, which Operator may be required or deem i t necessary to pay on account of employees of Contractor or ita subcontractors. Contractor agrees to furnish Operator with the information required to enable it to make the necessary Rportrr and to pay such taxes or charges. At its election, Operator is authorized to deduct a11 sums BO paid for such tsxes and governmental charges from such m o u n t s na maybe or become due to Contractor hereunder.

a y to allow no lien or charge to be fixed upon the lerse, the Gell, the h n d on which the wellis to be drilled, or other property o Operator. Contractor agrees t o indemnify protea. and save Operator hamless from and against all such claims and liens. If Contractor shall fail or refuse to pay any d;itms or indebtedness incurred by Contractor in connection $th the drilling of any well or wells hereunder, i t is agreed that Operator shall hape the right to pay any such claims or indebtedness out of any money due or to become due to Contractor hereunder. No assignment or transfer by Contractor of rights to monies due Contractor hereunder shall bave any force or effect u far u Operator's rights w e concerned until all iuch claims and indebtedness incurred by Contractor shall have been completely liquidated and discharged.

erator may require Contractor to furnish proof that there u e no unsatisfied claims for hbor, materials, equipment, and suBies , or for infarie8 to persons or property not covered by insurance.

lb RESPONSIBILITY FOR LOSS OF OR DAMAGE TO T E E EQUIPMENT OR THE BOLE: 13.1 Contractor's Surface Equipment: Contractor shall be liable a t d l times for damage to or destruction of Contractor's

rnrface equipment, induding di drilling tools, machinerp, and appliances for use above the surface, and for any other type of equipment, including in-hole equipment when such in-hole uipment ia above the surface regardless of when or bow such damage or destruction occurs. Operator shall be under no l i a a i t y to reimburse Contractor for any such loss except lws or damage thereto caused by negligence or wülful acts or omissions of Operator or Operator's agents, servanta. or employees.

13.2 Contractor's In-Hole Equipment - Footage Basis: Contractor shall be liable at a11 times while work ia being performed on a footage basis for damage to or destruction of Contractor'a in-hole equipment, including drill pipe, drill collars, and tool joints. Openitor shall be under no liability to reimburse Contractor for any such loss except loss or damage thereto a u a d by negligence or willful aeta or omissions of Operator or Operator'i agents, servants. or employees.

13.3 Contractor's In-Hole uipment - Day Work Basis: Operator agrees to reimburse Contractor for Contractof6 tools and equipment lost in the hole whil% ntractor is working on day rates, unless such loss is Caused by Contractor's negligence. The basis of reimbursement rball be 88 specified in Section 14 of the Drilling Order.

13.4 ûperator's equipment: All machinery tools, material and equipment furnished by Operator sbaU at the completion or abandonment of the well he retumed to Opera& in as good eondition as when received by Contractor, &inup wear and tear araepted. Contractor shall not be liable to Operator for any loss or damage b auch equipment except that dne to negligence of Contractor, ita agents, representatives, employees, or subcontractors.

18.6 The Hole- Footage Basis: Should the hole for any cause attributable to Contractor's 0 p e r r t i 0 ~ be lost or damaged while Contractor is engaged in the erformance of work hereunder on a footage basis, ail such loss or d m g e to the hole shall be borne by Contractor. If the hoye is not in condition to be carried to the contract depth provided for in the Drilling Order, Con- tnc tor shall properly plug and abandon the hole and, if requested by Operator, commence a new hole without delay at Con- tractor's cost The drilling of the new hole shall be conducted under the terms and conditions of this contract and Drilling Order in the same manner 88 though it were F e hole that had been lost or damaged. In such use! Contractor shall not be entitled to any payment or compensation for expenditures made or incurred by Contractor or in comectlon with the abandoned hole except for day work earned in coring, testing, and 1 ging said well or other day work for whieb Contractor would have been compensated had such hole not been lost and abandoned.% any casing or material furnished by Operator has been set or installed in the hole which was losf and such casing or materid cannot be recovered from the lost hole or, if recovered, M damaged beyond further use and provided such loss or damage was the remlt of or caused by Contractor's negligence, Contractor #hail replace d i auci casing or material furnished by Operator.

13.6 Notwithstanding the foregoing roviaionr of puagrrph lS.6 hareof. if the hole is lost or dunaged b maon of the f d u r e of easing or equipment furnished !y Operator or by reason of the fdum J cementing job auch loss s&1 be borne by Operator, provided there was no negli art of Contractor.

18.7 The Hole - Day Work Basis: % the event $e hole is lost or &mrged while +ntrictor ia working on a day work bilis or u the r u u l t of work performed on a day work hi., and provided them WM no negligence on the put of Contnctor, Opsiitor .h.u be rriporuible for auch lar or damage to the bole.

. and effect during the term of this a

12.3 Contractor agrees to pay ail claims for hbor, material services, 8nd supplies furnished by Contractor hereunder and '

12.4 Before payments are made by Operator to Contractor,

nee on the

(a) Copyright American Petroleum Institute Reproduced by IHS under license with API Licensee=Aramco HQ/9980755100


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13.8 Inspection of Materials Fmnished by Operatm. Conbetor .hill exunina di us ing equipment, machinery. tools, or other items furnished by Operator and if my defects UT foond therein sufficient to nuke the use i f any auch itemn unsuitable or unsafe. Contractor shall immediately notify Operator of such &fe& or defects and Opemtor &all at once replace the i t e m so found defective. Should Contractor fail to d e such aumination or fail to report i ddect in noch item or items. Contractor ihaU be deemed to hnve assumed all risk. and dl liability for any miship which may occur in the drilling of said well by m u o n of failure or defects in such wijng, equipment, machinery, toola, or other items exœpt for fiiltua due to Ltatt defecta.

14. INDEPENDENT CONTRACMR RELATIONSHIP: 14.1 Contraetcr n h d be an independent contractor with irspcct to perfonnuia of d work hereunder and neither Contractor

nor anyone employed by Contrictor shall be dnmed for any purpose to be the employee, agent. iervant, or representative of ûperator in the performance of any work or service or any part thereof in any umer dealt with hereunder. Operator shall have no direction or control of Contrictor or ita employees and agents except in the ruolta to be obtained. The work contemplated herein shall meet the ippmvd of Operitor and be aubJact to the g o n d right of inipcetion herein provided for Operator ta secure the satisfactory completion thereof.

14.2 The actual performance uui superintendence of J 1 work hereunder ahdl be by Cvntrretor. but Operitor or ita representatives shn11 have unlimited i c c e ~ to the premi- ta determine whether work is being performed by Conhactor in accordance with al1 of the provisions of tb¡¡ contract and the DrillinK Order.

II. LAWS. RULES AND REGULATIONS: 16.1 Contractor and Opezætor rapeetiveiy agree to comply with all I., rula and regulations, federal, state, and municipal,

which are now or may becorne applicable ta operations covered by thii agreement or uising out of the performance of mch operations.

16. FORCE MAJEURE: 16.1 Neither Operator nor C o u M r shdl be W i e to the other for " y d a h m or damages or an failure to act due,

occasioned. or caused by reason of federal or state iam or the d e s , regulations. o r orders of any publiegody or official pur- porting to exercise authority or control respecting the operations covered hereby, including the use of tools and equipment. or due, wcasioned. or caused by &+kea, aetiou of the elementa. or cawen beyond the control of the partien affected hereby, and delays due to the nbove cauxes, or any a l them, not he deemed to be a bnich of or f d u m to perform under this agreemen+

17. WITHHOLDING FUNDS: 17.1 Operator may withhold a pcmfage of the price agreed to be paid Contrictor for the plupose, in the manner, and for

the time provided in applicable ln-m of the M where the work ihgerformed. Mid percentage to k ultimFtely released in accordance with such laws. The parcentaga, ii any, to he retained s

i& INGRESS AND EGRESS TO LOCATíOk: 18.1 Operator ahail secure for Caaímctar righta of ingrsu and egreaa to the tract of land on which the d l is to be drillcd

Operator shall advise Contrrdor of any limitations or nstricüons affecting ingrass and egrwi. urd Contractor shall abide by and shall have ita employw. -ata. or subcoutriaora abide by such limitstions or restrictions. Should Contractor be denied free r m s to the location for any rau08 not.within the mntml of Contractor, time ¡oat b r aueh denial shrU be paid for at a reanonable nte in keeping with the stage of opmboiu st the time.

19. AUDìTS: 19.1 If any payment provided foi hereunder i. to b nude on the biris of Contracter's coats, Opmtor shali hre the right

ta audit Conhetor 's book. and rrcorda relating to such sstr. Contractor agma to maintain such books and records for a period of two (2) ye- from the date ruch erst. were incurred and to make mch books and records avuiable to Operator at any time or timen within the tao-year period.

to. PATENTS AND LICENSES: 20.1 In addition to the mdunnii).ing provisions contrine in pusgraph 11 hueof, Con*ctor npreseny and w a m . t s that

the use or constmetion of any and dl toob and equipment hunished by Coutractor and used IR the work provided for herein does not infringe on any license or p.tent which hr been issucd or applied for, fnd Contrictor i p s to indemnify and hold Operator humless from any and 31 dim. deminds, and auses of d o n of very kind and ehuicîm in favor of or mide by, m y pitentee. licensee, or. chimant of any nghs or priority to any mch tool or equzpment, or the nse or constmetion thereof, which may reault from or a m e out of the farnduag or tue of any anch tool or equipment by Contractor in connection rith the work under this .Faament.

21. CONFLICTS: 21.1 In tbe nent tbere i. a mnilict bstram the prwiaions hereof and my pipera or docomentr, other th.n the Bid Sheet

and Drilling Order, which may &re been ~ n e i i + d or pisred betam the F e a harato in connection with the subject matter hereof, it is understood and agreed thnt the provisions hsrsof ahall be cont@ing. If there be a conflict between the provisioni hereof and a Bid Sheet and Drilling Order executed in connection heremth, it ir understacd and agreed that the provieions of th. Bid Sheet and M i n g Order abdl k conûdlhg.

22. ASSIGSMEWTS: 22.1 Contawtor a m not to mblct or assign any o! the work

n o d l y corment o48perator.

23. CANCELLATION:

ahonld the driiling of a wall or went, this agreement .h.ll coothue in effect until the di or rrih hm beon m m ! d .eapbd by Openbr.

1 be u aet forth in Seetion 14 of the Dnllbg Order.

hereunder or in any Druiing Order. axmpt for work donned by autcontrutan. iad not to u i g n my " 9 " t may .ca i ia ta Contractor hereunder without d t r e n

23.1 This agreement iiuy k ewslsd by either party at any time iipan written mtiœ to the other m, provided, horaver. at the time of such uotia: than, in 4rieh under any M i n g Order be commenced or in

WITNESSES:

WITNESSES:



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~

90092'74

Published by Division of Production American Petrolpum Institute 300 Corrigan Tower Dallas, Texas 75201

BID SHEET AND DRJLLiNG ORDER

Model Form 482 First Edition August. 1962

Gentlemen:

you bearing Operator's Ho of the well hereafter described.

This bid form has been filled in by us to the extent necessary to disclose the manner in which we desire the well to be drilled. If you desire to submit a hid, it will be necessary that you complete this bid form in every respect and we request that you have such completed bid properly executed by you in duplicate originals, returned to our office at no later tha 19- If your bid is accepted by UF. we \vil1 return one executed original to you.

If your bid as submitted is accepted by us. this instrument will become the DriUing Order and it together with the Master Drilling Contract above identified shall constitute the full and complete agreement between us covering the work described i n 'this Drilling Order.

In accordance with the provisions of Naster Drilling Contract date', KI-, heretofore executed by and the further provisions hereof, we solicit your bid for the

a.m. p.m

ï e r y truly yours,

- 0perat.X

By:

1. SAME ASD LOCATIOS üF WELL: Well Kame Parish and Xumber County -State

Field Name Well location and land description-

2. CO3lNESCEYEST DATE:

19-, or, in the event Operator is to clear and grade location and furnish roadway or other ingress or egress facilities, within Contractor agrees to commence actual operations a t the abore location on or before

days from the date of completion of the clearing and grading and construction of roadway, or auch other ingress or egress facilities, whichever is the latter.

3. DEPTH: Subject to right of Operator to abandon the well or to have the well completed at a lesser depth, Contractor agrees to

drill the ell to a total contract depth of d e e t . Contractor will drill the well on a footage contract basis (See Section 13a hereof) t o f e e t , or the top of the- feet of penetration into formation, whichever is first reached. Drilling between the footage contract depth and total contract depth, if any, shall be at day work rates as specified in Section 13 hereof.

A t Operator's request Contractor agrees to drill to a depth greater than total contract depth if in Contractor's opinion equipment a t the well site ia capable of such drilling. Rates for such drilling shall be negotiated by the parties hereto unless other- v i s e provided by Section 13 hereof.

4.

Contractor's Rig Xo.

forniation, or

/

RIG ASD EQUIPMEST TO BE FURNISHED BY CONTRACTOR:

Engines - Kumber, blake Q Models: Slush Pumps - Make, Model & Size: Auxiliary Pump & Power: Derrick or Mast - Make, Size Q Capacity: Substructure -Height & Capacity: Drill Pipe - Sizes 8r Amounts: Drill Collars - Sizes 6 Kumbew:

Blow-out Preventers -Power Actuated: Casing BOP Pressure Tests String BOP Size API Series No. and Style Frequency Psi Surface Intermediate

Pruduction

Operational checks of BOP Equipment shall be made as follows:



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~- __ ~

7009274 0006469 T 7 L U

I l

5. ADDITIONAL EQUIPMEST. MATERIAL, andlor SERVICES TO BE PROVIDED AT THE LOCATIOS BY THE PARl7’ DESIGNATED:

1. Rights-of-way and roadway into location

2. Clear and grade loeatior. I I I 3. Lay boardroads and turnarounds I

I 4. Cellar andslush pits

1 6. Steel mud and circulating tanks I

l I I 6. Shale shaker, type

I I 7. Degasser

8. Desander

l

I

I 1 9. Ciayjecter

l

1 10. Fuel - gas, butane, diesel or crude I !

I I I j 11. Water I

12. Fuel and water lines and rights-of- way to location

I

13. Water storage a t location - capacity

14. Coring reel with sufficient wire line I I

‘ I ~ 16. Wire line core barrel and accessories 1 i , 16. Diamond ewe barrel, handling tools I

and accessories l

I 17. Conventional core barrel (old type) 1 I I ! 18. Casing, essentially as specified herein I I

19. Casing shoes, floats, centralizers and ! scratchers

I ’ 20. Cement and cementing service for w i n g jobs I ’

’ survevinc services 21. Electric logging and other wire line

I ; 22. Drill stem formation testing service I I ’ 23. Gun or jet perforating services

i l 24. Casing toois for casing sizes specified

I 25. Tubing tools

i ’ c8tchers. when on “das-work”

26. B i t s , r e a m e r s , core h e a d s a n d

I 1

27. Stabiiizers, drill pipe protectors and special tools when on “day-work” : 28. Drill pipe casing protectors when on

’ 29. Special fishing tool services and

1 30. Mud logging service

footage

rental, when on “day-work”

’ 31. Automatic drilling time recorder

1 32. Storage facility for d r y mud and

/ chemicals

I

33. Reel and measuring line

I 3 4 BOP remote control s ta t ion and accumulator unit

35. Welding service for welding bottoni joints of casing, guide shoe. float ’ shoe, float collar and in connection with installing of well head equipment. if reouired !

36. Tubing, liners, screen, float collars, 1 guide and float shoes and associated

1 38. Canals, slips and keyways for inland 1 water ooerations I

30. Crew boats and fuel

I 40. Pusher‘s boat and fuel .I I

41. Marine transportation for other personnel

I 1 42. Refill and level slush pits

1 43. Kelly joints, subs, elevators and slips 1 for use with special drill pipe

I I 44. Special strings of drill pipe and drill collars as follows: I I

l 46.

I 1

6. CASING AND CEMENTING PROGRAM:

Proposed Proposed Footage Min. h i n g Setting Scratchers Centralizers Quantity or Day

Hole Dia. OD In. Depth Number Number Cement WOC Ers. Work



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i. 31rD PROGRAM , agrees to furnish all mud conditionem (additives and chemicals) in exceas of $ necessary

for drilling and completing the well. will arrange to purchase all necessary mud conditioning materials.

From To Type Mud Weight Viscosity % Oil Water Lose

a. STRAIGHT BOLE SPECIFICATIONS:

R o m

Well Depth

To

Maximum Distance Between Surveys, Feet

Maximum Maximum Change of Deviation Angle (or Over-Ali from Angle) Between Any Vertical, Two Surveys, Degrees Degrees‘

Location of well bore at feet shall be

*Reduce proportionately for survey intervals less than 100 feet, but do not use intervals less than 30 feet. The foregoing rate of change shall not be limiting in case of whipstocking approved by Operator.

9. PROPOSED CORING PROGRAM:

Appror Depth Formation Type Core Size Footage

10. PROPOSED WIRE LINE SURVEYS:

Type or Kind From To Remarks:

11. PROPOSED FLUID PRODUCTlOX TESTS:

Type or Kind From To Zone to be tested:

-

12. DESIGNATED REPRESENTATIVES:

Operator Contractor

(Name) (Name)

i A d d l s r i ) (Address1

(Das Telephone Number) (DiY Talephone Number)

(Nlght Telephone Number) (Nloht Telephone Number)

13. COMPENSATION TO BE PAID CONTRACTOR: a. For work performed on a footage basis, the sum of $ per foot for each linear foot of hole drilled. Such

linear footage shall be determined by steel line measurement and such measurement shall be from top of rotary drive bushing to the total depth drilled less distance from ground level or water bottom to the top of the rotary drive bushing and less footage drilled while work is performed on a day work basis. If the cellar is furnished by Operator, ground level sball be construed to mean the bottom of such cellar.

b. For all work performed with a full crew on a day work basis, as defined in the contract, Contractor shall be paid a rate for each twenty-four (24) hour day as follows:

Using Depth Intervals Without Drill Pipe Operator’s Pipe From To With Drill Pipe



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m 909%274 000b47L b2T

c. + full crew shall consist of-en. For each man crew is short, Contractor's day rate shall be reduced by tbe daily . rate of pay of such man.

d. If it becomes necessary to shut down Contractor's rig for repairs while Contractor is performing work on a day work basis, Contractor shall be allowed compensation for such repairs at the appropriate day work rate commensurate with the stage of operations then in effect; ¡.e., with drill pipe or without drill pipe rate. The number of hours for which Contractor is to he compensated shill be limited M follow:

For any one repair job/onrs.

TOW hour6 per mon-

Total h o w in the aggrrgate for the w e l l - -

e. For stand-by time while waiting on ordem or equipment to be furnished by Operator, a stand-by rate of $ per twenty-four (24) hour day with full crew or $ per twenty-four (24) hour day with watchman only.

f. If the formation drilled to on a footage basis is unproductive and Operator elects to plug and abandon the hole, Contractor hours of rig time without charge in lieu of rig time required to set casing included in agrees to furnish

footage rate.

14. SPECIAL AGREEMENTS:

... percent of contract consideration to be retained by Operator pending completion and acceptance of the work.

...If work is stopped by Operator as provided in Paragraph 6.1 of the contract, Contractor shall be paid in accordance with provisions of the contract and the rates herein agreed to unless stoppage occurs prior to Contractor's having reache- percent of contract depth. For purposes of this work stoppage provision, contract depth shall be deemed to b e t e e t ; and the percentage to be allowed to cover cOntractor>s overhead end profit shall be -%.

. . . if loss of circulation occurs while normal drilling operations are in progress on a footage rate basis, Contractor shall notify Operator of such loss and shall use all reasonable means to restore the same, without compensation for the first __ hour after the loss. If Operator concurs that such condition exists, operations to restore circulation after said __ hour period shall be performed on a day-work basis until normal circulation is restored; provided, however, that Operator shall not be responsible for any fishing job or sticking of drill pipe, or other difficulty, which occurs during or prior to the said __ hour period, unless said difficulty is a direct result of said loss of circulation, and Contractor shall bear all expenses in connection therewith without compensation until said difficulty is overcome. Subject to the foregoing, in the event, during the drilling of the well, the allowed time in the aggregate exceeds - hours, all operations thereafter performed by Contractor in attempting to restore circulation ahall be on a day-work basis. . . . Basis for payment to Contractor for equipment lost in hole while on day work rates (See Sec. 13.3 of contract) shall be as foUoWs:

(Note: Conditions may require clauses peculiar to certain geographical areas. When such conditions exist, needed special clauses may be inserted in this Section.)

In response to the above request, our bid for the drilling of the well hereinabove described is submitted as set forth above.

The foregoing Bid and Drilling Order is hereby accepted end approved t h i s d a y of , A.D. 19-

By:



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t

ABNORMAL DRILLING CLAUSES (For possible me in Seetion 14)

. . . "Abnormal Prrsaure, etc"

While operations are being conducted on a footage b u m , ahould loss of circulation, abnormal pressures, salt water flow, domal formation. heaving shale or similar formation. salt, or other condition be encountered which makes drilling abnormally difficult or hazardous, causing drill pipe or casing to stick, m other aimilar difficulty which precludes drilling under normal procedure, Contractor in a11 such cases and without delay, #hill use werg r e w m b l e means to overcome such difficulty. When such condition ia encountered, Contractor ahail immediataly notify Opmator. H Opemîor concurs that such condition exists all operations from the time the condition ia encountered nntil n o d diiuinp is resumed m&U be on a day work basis. If Operator fails to reply to the notification of Contracwr within twenty-foor (U) hours therefrom, i t shall be eonelusively presumed that Operator concurs with Contractor that such condition exists. Ii Operator does not agree that such condition exists, operation shall be continued a t footage rates. Abnormal pressans ahail be preaumed to exist in the event mud weight in excess of -,pounds per gallon is required to control formation pialm.

"Chert, etc."

While operations are being conducted ou a footage basis, should chert, mehist, pyrite, quartzite, or granite be encountered Contractor shall notify Operator's representative of mch conditions. If Operator concurs that such conditions exist and if, solely because of such conditions, by continuous and diligent drilling Contractor fails to drill footage within twenty-four (24) hour period which, when multiplied by the agreed footage rate, does not equal or exceed the applicable day work rate, plus cost of rock bits used during naid period, Operator shall compensate Contractor at the applicable day work rate and reimburse Contractor for the cost of a11 ruck bits used. Continuous and diligent drilling shall mean only time during which the hit is actually being rotated on the bottom and the time cousnmed in making round trips to change bits. It shall not include shut-down time due to repairs to Contractor's equipment. Operator's opinion U. to the geological formations encountered rhdl be conclusive.

. . . "Partial lam of Circulation, etc."

While operations are being conducted on a footcge basis, should partial loss of circulation occur and impede normal drilling progress, Contractor shall immediately report such condition to the designated representative of Operator. If Operator concurs that such condition exists, the drilling operation may be continued at a reduced rate of circulation. If, under such conditions, the footage drilled during each hventy-four (24) bow period multiplied by the footage rate does not equal the applicable day work rate plus the cost of rock bits Operator a h d l wmpen.uk Contractor a t the agreed day work rate and shall reimburse Contractor for the coat of all rock bits used during such period



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