Exploration Production Winter Standards Meeting Renaissance Worthington Hotel

Exploration & Production Winter Standards Meeting Renaissance Worthington Hotel, Fort Worth, Texas January 25 - 26, 2011 TG 3: Oil Mud Testing Procedures While we welcome open participation, nontask group members are asked to hold questions and comments until the end of the meeting or when the chair opens the floor. Thank you for your cooperation! January 26, 2011

Agenda Hand out minutes from Washington, D. C. to TG 3 members Task Group Charge Roll Call Previous Meeting Minutes – Approval Work Group Reports • WG 1: Oil Mud Chemical Analysis • WG 2: HPHT Direct Indicating Viscometers • WG 3: Particle Size Distribution Testing of OBM / SBM January 26, 2011

Agenda (Continued) Old Business New Business Action Items Adjourn January 26, 2011

TG 3 Oil Mud Testing Procedures Chairperson Marvin Pless / Baker Hughes TG Charge: Recommend needed changes and develop test procedures for field and laboratory testing of oilbased drilling fluids (results usually published in API RP 13 B-2 / ISO 10414 -2 and RP 13 I / ISO 10416) January 26, 2011

TG 3 Members / Role Call Marvin Pless / Baker Hughes – Chair David Dino / Elementis – Secretary Brent Estes/ Chevron Larry Mitchell / OFITE Paul Scott / Conoco. Phillips Tom Shumate / Baroid Catalin Ivan / Exxon. Mobil Tim Wilkin / M-I January 26, 2011

TG 3 – Minutes Approval of minutes from June meeting in Washington, D. C. distributed to TG 3 members: Motion made by: Seconded by: Result: January 26, 2011

TG 3 / WG 1 Oil Mud Chemical Analysis Chairperson Tom Shumate / Baroid Charge: Revise existing OBM chemical analysis procedures for whole mud alkalinity, chloride and calcium. January 26, 2011

TG 3 / WG 1 Status No current activities WG in hibernation Chairman available to resolve questions related to ISO DIS voting January 26, 2011

TG 3 / WG 2 HPHT Direct Indicating Viscometer Chairperson Keith Morton / Chevron Charge: Develop a recommended operating practice for concentric cylinder viscometers capable of viscosity measurements at pressures greater than 10, 000 psig used to characterize the rheological properties of WBM and OBM at elevated temperatures. January 26, 2011

TG 3 / WG 2 HPHT Direct Indicating Viscometer • Document distributed to the TG members for final review / comment • Edits have been received from TG members • Document with edits sent back to WG / Keith Morton / Chairman for review • Revised document will be emailed to TG for review and to SC 13 for a vote at the summer 2011 meeting January 26, 2011

TG 3 / WG 3 Particle Size Distribution Testing of OBMs/SBMs Chairperson Greg Perez Charge: Propose a method(s) for determining PSD’s of NAF’s to be included in API RP 13 I January 26, 2011

TG 3 / WG 3 Particle Size Distribution Testing of OBMs/SBMs Greg Perez Tim Wilkin Nathan Tarver Keith Morton Carl La. Combe Stephen Ward-Smith Chris Steele Saleh Al-Ammari January 26, 2011

TG 3 / WG 3 Particle Size Distribution Testing of OBMs/SBMs Surveyed varied PSD instruments in global usage: Malvern, Beckmann Coulter, Cilas, Microtrac, as major parties Members discussed perceived relevant issues: dispersion solvents, dilution solvents, use of ultrasound, % obscuration, optical model selection, sample homogenization. January 26, 2011

TG 3 / WG 3 Particle Size Distribution Testing of OBMs/SBMs Agreed that a clear description of what assumptions are inherent in the guidance given in the proposed RP will be necessary. Determined need to establish a basic lab prepared system for Round Robin testing. January 26, 2011

TG 3 / WG 3 Particle Size Distribution Testing of OBMs/SBMs Members discussed wettability concerns of the wide possible variety of solids present in these fluids. Homogenization methods were discussed and the limits and expectations of sample uniformity was discussed. January 26, 2011

TG 3 / WG 3 Particle Size Distribution Testing of OBMs/SBMs Found that % obscuration values were highly varied among users and may lead to agglomerated stated even when diluted. Members discussed limiting initial RP scope to fully dispersed state samples. Call for submission of individual methods for detailed comparison. January 26, 2011

TG 3 / WG 3 Particle Size Distribution Testing of OBMs/SBMs New Business: Request TG guidance on limiting initial RP scope to fully dispersed sample systems. Discuss new parameters to ensure proposed RP would be general enough in focus so as not to exclude any existing instruments in usage. January 26, 2011

TG 3 / WG 3 Particle Size Distribution Testing of OBMs/SBMs New Business (Continued): Discuss HSE issues regarding flammable solvent use in PSD measurements, including rig-site use. Request TG guidance on desired timeline for proposed RP delivery and any need to alter WG composition to meet. January 26, 2011

TG 3 / WG 3 Particle Size Distribution Testing of OBMs/SBMs New Business (Continued): Submit individual PSD methods for review and variability comparison. Distribute proposed Round Robin testing formulation for member review. Other items to be determined January 26, 2011

TG 3 / WG 3 Particle Size Distribution Testing of OBMs/SBMs Next meeting date and place – TBD January 26, 2011

Old Business Action Items From June Meeting In Washington, DC • Measurement of NAF Internal Phase Activity Modifiers: Brent Estes to meet with volunteers to discuss the WG “Charge” and report back to the TG 3 at the winter meeting. Particle plugging test revision for inclusion in RP 13 B-2 January 26, 2011

Measurement of NAF Internal Phase Activity Modifiers Hand out revised SR 3 to Task Group January 26, 2011

Measurement of NAF Internal Phase Activity Modifiers Background: Increased emphasis on environmental aspects of drilling fluids is driving fluid companies toward non-chloride internal phase activity modifiers for non-aqueous fluids Introduced at the 2010 winter meetings SR 3 submitted to the Task Group at the 2010 summer meetings Tabled by Task Group for further refinement January 26, 2011

Measurement of NAF Internal Phase Activity Modifiers Actions assigned to the WG for consideration prior to winter standardization conference: • Limit scope of materials to be addressed • Inclusion of methodology for solids calculations into SR 3 document / WG Charge January 26, 2011

Measurement of NAF Internal Phase Activity Modifiers Group of interested parties met on 12/7/2010 to discuss assignments from the Task Group Activity modifiers to be considered Formates Nitrates Acetates Glycol / Glycerols • Agreed to include methodology for utilizing activity measurements to calculate corrected solids. January 26, 2011

Measurement of NAF Internal Phase Activity Modifiers Proposed Work Group Charge: Develop procedure(s) for measurement of nonchloride activity modifiers in non-aqueous fluids and methodology to use those measurements in corrected solids calculations. Vote to approve SR 3 for submission to API January 26, 2011

Particle Plugging Test Revision for Inclusion in RP 13 B-2 Meeting with TG 4/WG 2, Ceramic PPT Procedure Re-Write New procedure will be applicable to RP 13 B-1 and RP 13 B-2 WG 2 to submit procedure to TG 4 for approval Following approval of draft in TG 4, draft procedure to be distributed to TG 3 members for approval January 26, 2011

TG 3: Oil Mud Testing Procedures Other new business from the floor January 26, 2011

Adjournment January 26, 2011