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Home My WebLink AboutO 197Other Order 197 Docket Number: OTH-23-013 1. April 19, 2023 OilSearch request for waiver of well bonding requirement STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue Anchorage, Alaska 99501 Re: Request by Oil Search (Alaska), LLC for reduction in the bonding amount required under regulation 20 AAC 25.025. ) ) ) ) ) ) ) ) Docket Number: OTH-23-013 Other Order 197 Oil Search (Alaska), LLC Bond Reduction Request April 27, 2023 DECISION AND ORDER By letter dated April 19, 2023, Oil Search (Alaska), LLC (OSA) requested that the Alaska Oil and Gas Conservation Commission (AOGCC) waive the bonding requirements for their proposed DW- 02 disposal well, a Class I disposal well under the underground injection control (UIC) program that is being regulated by United States Environmental Protection Agency (EPA). The EPA has entered into a trust agreement with OSA, who provided a copy of the agreement to the AOGCC to review, to cover the cost of plugging and abandoning this well and two additional potential UIC Class I wells. FINDINGS: Based upon the evidence presented by OSA, AOGCC finds as follows: 1. Under 20 AAC 25.025(b)(3)(C) the AOGCC can accept bonding that is in place with the EPA for the plugging and abandonment of UIC Class I disposal wells. 2. OSA’s request only referenced the DW-02 Class I disposal well but the evidence provided by OSA indicates the trust agreement with the EPA can cover the cost of abandoning up to three UIC Class I disposal wells that the EPA approved pursuant to UIC permit AK-1I019- A. CONCLUSIONS: The trust agreement between OSA and the EPA meets the AOGCC’s bonding requirement for the three EPA authorized UIC Class I disposal wells. NOW THEREFORE IT IS ORDERED THAT: So long as OSA maintains the trust agreement with the EPA in good standing it will cover the plugging and abandonment liability for up to three UIC Class I disposal wells and those wells will not be included in the well counts used to determine OSA’s bonding liability with the AOGCC. OSA must notify the AOGCC within 30 days of any changes in the trust agreement. Other Order: 197 April 27, 2023 Page 2 of 2 DONE at Anchorage, Alaska and dated April 27, 2023. Brett W. Huber, Sr Jessie L. Chmielowski Gregory C. Wilson Chair, Commissioner Commissioner Commissioner RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10 days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. Gregory Wilson Digitally signed by Gregory Wilson Date: 2023.04.27 09:07:40 -08'00' Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2023.04.27 09:14:40 -08'00' Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2023.04.27 09:16:46 -08'00' From:Carlisle, Samantha J (OGC) To:AOGCC_Public_Notices Subject:Other Order 197 (Oil Search) Date:Thursday, April 27, 2023 9:56:00 AM Attachments:other197.pdf Request by Oil Search (Alaska), LLC for reduction in the bonding amount required under regulation 20 AAC 25.025. Samantha Carlisle Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 (907) 793-1223 Bernie Karl K&K Recycling Inc. P.O. Box 58055 Fairbanks, AK 99711 1