The URL can be used to link to this page

Home My WebLink AboutO 207Other Order 207 Docket Number: OTH-23-033 1. December 27, 2023 Letters to PERL regarding PA of Middle Lake 1A STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION AOGCC 333 West 7th Avenue Anchorage, Alaska 99501 Re: Enforcement action against Pacific Energy Resources, Ltd. ) ) ) ) ) Other Order 207 Docket Number: OTH-23-033 February 6, 2024 ENFORCEMENT ORDER IT APPEARING THAT: 1. Pursuant to 20 AAC 25.535, on December 27, 2023, the Alaska Oil and Gas Conservation Commission (AOGCC) issued written notice to Pacific Energy Resources, Ltd. (PERL) informing them that the AOGCC proposed to take enforcement action, including requiring payment under PERL's bond filed with the AOGCC, due to PERL’s failure to comply with 20 AAC 25.105(a), 20 AAC 25.112, and 20 AAC 25.170, by not plugging and clearing the locations of a well as required by those regulations. 2. The AOGCC's written notice was sent via certified mail to two different last known addresses for PERL, and informed PERL that if they failed to file a timely written response, the AOGCC would consider them to have accepted the proposed AOGCC action by default, as provided in 20 AAC 25.535(c). 3. The AOGCC received no response from PERL, and by information and belief, it is believed that PERL went through bankruptcy and ceases to exist as a business entity. FINDINGS: 1. PERL is the last known operator of the Middle Lake Unit #1A well (PTD 2051490) in Alaska. 2. PERL was owner of the oil and gas leases on which the Middle Lake Unit #1A well was located at the time it was drilled. 3. PERL's leases on which the Middle Lake Unit #1A well is located have expired. 4. The Middle Lake Unit #1A well has not been plugged. 5. The location of the Middle Lake Unit #1A well has not been cleared. 6. PERL is the principal on a blanket well cash bond (No. 08064788) in favor of the AOGCC, under which PERL bound itself to comply with the regulations and orders of the AOGCC. CONCLUSIONS: 1. Within the meaning of 20 AAC 25.105(a), the owner's rights in the properties on which the Middle Lake Unit #1A well is located has expired. 2. PERL's failure to plug the Middle Lake Unit #1A well constitutes non-compliance with 20 AAC 25.105 and 20 AAC 25.112. Other Order 207 February 6, 2024 Page 2 of 2 3. PERL's failure to clear the locations of the Middle Lake Unit #1A well constitutes non- compliance with 20 AAC 25.120 and 20 AAC 25.170. 4. PERL is liable to pay to the AOGCC the penal sum of $200,000 under their bond number 08064788. 5. Pursuant to 20 AAC 25.535(c), PERL has accepted by default the AOGCC's proposed action ordering payment under their bond number 08064788. NOW THEREFORE IT IS ORDERED: 1. Pursuant to 20 AAC 25.535(d)(3), PERL’s $200,000 cash bond (No. 08064788), which is currently held by the AOGCC, is hereby revoked and the funds may be used by the AOGCC to facilitate the plugging and abandonment of the Middle Lake Unit #1A well in accordance with AOGCC regulations. 2. The AOGCC reserves decision on ordering additional remedies or sanctions. Done at Anchorage, Alaska and Dated February 6, 2024. Brett W. Huber, Sr. Jessie L. Chmielowski Chair, 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. Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2024.02.06 09:40:26 -09'00' Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2024.02.06 09:58:20 -09'00' From:Carlisle, Samantha J (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] Other Order 207 (PERL) Date:Tuesday, February 6, 2024 10:51:32 AM Attachments:other 207.pdf Enforcement action against Pacific Energy Resources, Ltd. 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 1 Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov December 27, 2023 CERTIFIED MAIL – RETURN RECEIPT REQUESTED 7018 0680 0002 2049 1112 Pacific Energy Resources, Ltd. 310 K Street, Suite 700 Anchorage, AK 99501 Re: Notice of Proposed Enforcement Action Middle Lake Unit #1A (PTD 2051490) Docket Number: OTH-23-033 To whom it may concern: In accordance with 20 AAC 25.535(b), you are notified that the Alaska Oil and Gas Conservation Commission (AOGCC) proposes to take enforcement action against Pacific Energy Resources, Ltd. (PERL). The nature of the apparent violation(s) or noncompliance is PERL's failure to comply with 20 AAC 25.105(a), 20 AAC 25.112, and 20 AAC 25.170, concerning abandonment and location clearance of the Middle Lake Unit #1A well. The reasons why the AOGCC considers violation(s) or noncompliance to have occurred are: (1) PERL's leases on which the Middle Lake Unit #1A well was drilled expired on August 27, 2010 and April 2, 2015; (2) the well has not been plugged in accordance with 20 AAC 25.112, as required by 20 AAC 25.105(a); and (3) the well location has not been cleared in accordance with and as required by 20 AAC 25.170. The actions that the AOGCC proposes to take include requiring payment under PERL's cash bond, imposing monetary penalties under AS 31.05.150, and ordering corrective action or remedial work. As provided under 20 AAC 25.535(c), within 15 days after receipt of this notice, PERL may file with the AOGCC a written response that concurs in whole or in part with a proposed AOGCC action, requests informal review, or requests a hearing under 20 AAC 25.540. The AOGCC will, in its discretion, extend the 15-day response period for good cause shown. If PERL fails to file a timely written response, the AOGCC will consider them to have accepted the proposed AOGCC action by default. If PERL requests a hearing, the AOGCC will schedule a hearing under 20 AAC 25.540. If PERL requests informal review under 20 AAC 25.535(c), the AOGCC will provide an opportunity for it to submit documentary material and make a written or oral statement. The AOGCC will then issue a proposed decision or order. A proposed decision or order becomes final 11 days after it is issued unless within 10 days after it is issued PERL files a written request for a OTH-23-033 December 27, 2023 Page 2 of 2 hearing, in which case the proposed decision or order is of no effect. If PERL requests a hearing, the AOGCC will schedule a hearing under 20 AAC 25.540. If PERL concurs in the AOGCC's proposed action(s) described above, or after an informal review or a hearing under 20 AAC 25.535(c) or 20 AAC 25.535(d), and if the AOGCC finds that PERL has violated or failed to comply with a provision of AS 31.05, 20 AAC 25, or a AOGCC order, permit, or other approval, the AOGCC will, in its discretion, order one or more of the following, as it determines to be applicable: (1) corrective action or remedial work; (2) revocation or suspension of a permit or other approval; (3) payment under the bond required by 20 AAC 25.025; (4) imposition of penalties under AS 31.05.150. DONE at Anchorage, Alaska and dated December 27, 2023. Brett W. Huber, Sr Jessie L. Chmielowski Gregory C. Wilson Chair, Commissioner Commissioner Commissioner Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov December 27, 2023 CERTIFIED MAIL— RETURN RECEIPT REQUESTED 7018 0680 0002 2049 1105 Pacific Energy Resources, Ltd. 111 W Ocean Blvd # 1240 Long Beach, CA 90802 Re: Notice of Proposed Enforcement Action Middle Lake Unit #1A (PTD 2051490) Docket Number: OTH-23-033 To whom it may concern: In accordance with 20 AAC 25.535(b), you are notified that the Alaska Oil and Gas Conservation Commission (AOGCC) proposes to take enforcement action against Pacific Energy Resources, Ltd. (PERL). The nature of the apparent violation(s) or noncompliance is PERL's failure to comply with 20 AAC 25.105(a), 20 AAC 25.112, and 20 AAC 25.170, concerning abandonment and location clearance of the Middle Lake Unit #1A well. The reasons why the AOGCC considers violation(s) or noncompliance to have occurred are: (1) PERL's leases on which the Middle Lake Unit #1A well was drilled expired on August 27, 2010 and April 2, 2015; (2) the well has not been plugged in accordance with 20 AAC 25.112, as required by 20 AAC 25.105(a); and (3) the well location has not been cleared in accordance with and as required by 20 AAC 25.170. The actions that the AOGCC proposes to take include requiring payment under PERL's cash bond, imposing monetary penalties under AS 31.05.150, and ordering corrective action or remedial work. As provided under 20 AAC 25.535(c), within 15 days after receipt of this notice, PERL may file with the AOGCC a written response that concurs in whole or in part with a proposed AOGCC action, requests informal review, or requests a hearing under 20 AAC 25.540. The AOGCC will, in its discretion, extend the 15-day response period for good cause shown. If PERL fails to file a timely written response, the AOGCC will consider them to have accepted the proposed AOGCC action by default. If PERL requests a hearing, the AOGCC will schedule a hearing under 20 AAC 25.540. If PERL requests informal review under 20 AAC 25.535(c), the AOGCC will provide an opportunity for it to submit documentary material and make a written or oral statement. The OTH-23-033 December 27, 2023 Page 2 of 2 AOGCC will then issue a proposed decision or order. A proposed decision or order becomes final 11 days after it is issued unless within 10 days after it is issued PERL files a written request for a hearing, in which case the proposed decision or order is of no effect. If PERL requests a hearing, the AOGCC will schedule a hearing under 20 AAC 25.540. If PERL concurs in the AOGCC's proposed action(s) described above, or after an informal review or a hearing under 20 AAC 25.535(c) or 20 AAC 25.535(d), and if the AOGCC finds that PERL has violated or failed to comply with a provision of AS 31.05, 20 AAC 25, or a AOGCC order, permit, or other approval, the AOGCC will, in its discretion, order one or more of the following, as it determines to be applicable: (1) corrective action or remedial work; (2) revocation or suspension of a permit or other approval; (3) payment under the bond required by 20 AAC 25.025; (4) imposition of penalties under AS 31.05.150. DONE at Anchorage, Alaska and dated December 27, 2023. Brett W. Huber, Sr Jessie L. Chmielowski Gregory C. Wilson Chair, Commissioner Commissioner Commissioner