Morning Headlamp — Prudhoe plans still can’t find consensus

According to the Alaska Journal of Commerce, BP’s plan of development for Prudhoe Bay is the lone plan state regulators have deemed “incomplete” since a January request to all oil and gas operators in the state for natural gas marketing and facility sharing information. In January, now-retired DNR Commissioner Mark Myers sent letters to all unit operators in the state requesting information, where available, regarding what the operators have done recently to market potential natural gas reserves and how they share facilities with other operators. The information, according to Myers’ letters, would help determine the viability of developing and monetizing more of Alaska’s oil and gas resources, a portion of the department’s mission. Ultimately, an agreement was not reached and the original June 30 deadline for an approved plan of development was extended to Nov. 1. BP has until Sept. 1 to submit a modified plan for review.

Gov. Bill Walker said in a July interview with the Journal that he does not feel there are anti-trust issues and that the producers’ request and approval from the Alaska Oil and Gas Conservation Commission for additional gas offtake from Prudhoe and Point Thomson last fall starting in 2025 officially signals intent for major gas sales at that time. Headlamp notes that this argument has been made before, specifically in 2006 – Alaska Gasline Port Authority v. ExxonMobil Corp – and was rejected. The Port Authority couldn’t maintain action against gas producers for failing to supply gas to pipeline for many reasons including a preemption of such actions by the Stranded Gas Development Act.

More turnover at AGDC. AGDC Vice President of Finance and Administration Bruce Tangeman resigned July 29, effective immediately. Tangeman joined AGDC in that role in 2014 as the Alaska LNG Project began to take shape shortly after the passage of Senate Bill 138, the legislation that guides the state’s participation in the project.

 

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First Reads

Prudhoe plan only one ruled incomplete
Alaska Journal of Commerce, Elwood Brehmer, August 3, 2016

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