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Home My WebLink AboutO 204Other Order 204 Docket Number: OTH-23-029 1. December 1, 2023 Vision request for waiver of bonding requirements 2. December 4, 2023 Trust Agreement STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue Anchorage, Alaska 99501 Re: Request by Vision Operating, LLC for reduction in the bonding amount required under regulation 20 AAC 25.025. ) ) ) ) ) ) ) Docket Number: OTH-23-029 Other Order 204 Vision Operating, LLC Bond Reduction Request December 11, 2023 DECISION AND ORDER By letter dated December 1, 2023, Vision Operating, LLC (Vision) requested that the Alaska Oil and Gas Conservation Commission (AOGCC) waive the bonding requirements for well North Fork Unit 23-25 (NFU 23-25) (API No. 50-231-20037-00-00). NFU 23-25 was drilled and completed as a gas well in the North Fork Unit and is one of eight wells that Vision operates in Alaska. In accordance with 20 AAC 25.025(b)(1) Vision has $2,750,000 of bonding in place with the AOGCC to cover its bonding obligations ($400,000 per well for the first five wells plus $250,000 per well for the remaining three wells). Vision applied to the United States Environmental Protection Agency (EPA) to convert the NFU 23-25 well from a gas well into a Class I disposal well. Vision received approval from the EPA under UIC permit AK-11022. The EPA has entered into a trust agreement with Vision, who provided a copy of the signed agreement to the AOGCC to review, to cover the cost of plugging and abandoning this well. FINDINGS: Based upon the evidence presented by Vision, 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. Conversion of well NFU 23-25 from a gas well to a Class I disposal well and the presence of a trust agreement with the EPA to cover the cost of abandoning the well removes the well from Vision’s well count used to determine its bonding obligations to the AOGCC. CONCLUSIONS: The trust agreement between Vision and the EPA meets the AOGCC’s bonding requirement for the NFU 23-25 UIC Class I disposal well. Converting the NFU 23-25 well from a gas producer to a UIC Class I disposal well reduces Vision’s well count for determining bonding obligations with the AOGCC from eight to seven wells. NOW THEREFORE IT IS ORDERED THAT: So long as Vision maintains the trust agreement with the EPA in good standing it will cover the plugging and abandonment liability for the NFU 23-25 UIC Class I disposal well and removes that well from the well counts used to determine Vision’s bonding liability with the AOGCC. Removing the well from Vision’s well count reduces its bonding obligations with the AOGCC from $2,750,000 to $2,500,000. Vision must notify the AOGCC within 30 days of any changes in the trust agreement. Other Order 204 December 11, 2023 Page 2 of 2 DONE at Anchorage, Alaska and dated December 11, 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: 2023.12.11 10:26:32 -09'00' Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2023.12.11 10:31:47 -09'00' Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2023.12.11 11:31:27 -09'00' From:Carlisle, Samantha J (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] Other Order 204 (Vision Operating) Date:Monday, December 11, 2023 3:43:32 PM Attachments:other 204.pdf Request by Vision Operating, 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 __________________________________ List Name: AOGCC_Public_Notices@list.state.ak.us You subscribed as: samantha.carlisle@alaska.gov Unsubscribe at: https://list.state.ak.us/mailman/options/aogcc_public_notices/samantha.carlisle%40alaska.gov 2 By Samantha Carlisle at 1:07 pm, Dec 04, 2023 1 (&(0%(5 5(77#8%(55 +$,5200,66,21(5 7$7(2)/$6.$ /$6.$,/$1'$6216(59$7,21200,66,21 #(67 9(18( 1&+25$*(/$6.$ 257+25.!1,7 ,6326$/#(// #$,9(52)21',1*(48,5(0(176 ($558%(5 ",6,213(5$7,1*<",6,21=+(5(%;5(48(6767+$77+(/$6.$,/$1'$6 216(59$7,21200,66,21<=:$,9(7+(%21',1*5(48,5(0(176)257+(257+ 25.!1,7 ',6326$/:(//$/$66',6326$/:(//81'(57+(81'(5*5281',1-(&7,21 &21752/!352*5$07+$7,6%(,1*5(*8/$7('%;!1,7('7$7(619,5210(17$/527(&7,21 *(1&; +(+$6$33529(' 7+$7&(57$,1 5867*5((0(17%(7:((1",6,21 $1' $&,),&257)2/,2 5867(('$7('8*867 $&23;7+$7,6+(5(%;,1&/8'(')25 5(9,(: %; 72&29(57+(&2672)3/8**,1*$1'$%$1'21,1*7+,6:(// /($6(/(70(.12:,);28+$9($1;48(67,216251(('$1;$'',7,21$/ ,1)250$7,21 ,1&(5(/; $5.$1'7 ",&(5(6,'(17 & 7(9((11,*$15(6,'(17",6,213(5$7,1* 7(9( $9,(6 77$&+0(17 5867*5((0(17'$7('8*867 By Samantha Carlisle at 1:07 pm, Dec 04, 2023