The URL can be used to link to this page

Home My WebLink AboutO 201 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue Anchorage, Alaska 99501 Re: Designation of operator and waiving of certain requirements for plugging and abandonment and site remediation of orphaned wells with monies the State of Alaska has received from the Infrastructure Investment and Jobs Act ) ) ) ) ) ) Docket Number: OTH-23-022 Other Order 201 August 30, 2023 DECISION AND ORDER On its own motion the Alaska Oil and Gas Conservation Commission (AOGCC) hereby designates ASRC Energy Services Alaska, Inc. (AES-AK) as operator of the following orphaned wells for the purpose of plugging and abandonment and performing site remediation: Well Name API Number Region of Alaska Alaska Gulf 1 50-009-10005-00-00 Southcentral Middle Lk Unit 1 50-283-20021-01-00 Southcentral Rosetta 1 50-009-10014-00-00 Southcentral Rosetta 2 50-009-10015-00-00 Southcentral Rosetta 3 50-009-10016-00-00 Southcentral Rosetta 4 50-009-10017-00-00 Southcentral Chickaloon 1 50-009-10019-00-00 Southcentral Eureka 1 50-009-10020-00-00 Southcentral Houston Core Hole 2 50-009-10023-00-00 Southcentral Shaviovik Unit 1 50-223-20001-00-00 North Slope Additionally, AES-AK is exempted from certain requirements for these wells as set forth further below. FINDINGS: 1. The Infrastructure Investment and Jobs Act (IIJA) became law on November 15, 2021. 2. The IIJA contained approximately $3.5 billion for grants from the federal government to states to plug, remediate, and reclaim orphaned wells on state and private lands within the state. 3. The AOGCC was chosen to be the state agency responsible for administering the IIJA’s orphaned well program in Alaska. 4. The AOGCC has contracted with AES-AK pursuant to Professional Services Agreement No. 25-23-1-019 (the PSA) to perform the work necessary to plug, remediate, and reclaim the ten wells listed above. The PSA may be expanded to include additional wells in the future. 5. The expenses and liabilities of performing the contracted work is underwritten by the grants the AOGCC has received from the federal government for this work. Other Order: 201 August 30, 2023 Page 2 of 3 6. The plugging, abandonment and remediation work will be done on the AOGCC’s behalf, and the AOGCC has a statutory duty to ensure that the work is conducted in accordance with the AOGCC’s statutes, regulations, and good oil field practices. 7. The PSA with AES-AK sets forth warranty, indemnity, and other provisions that protect the AOGCC and ensure the work is performed in accordance with the law and good oil field practices. CONCLUSIONS: 1. Since the AOGCC has contracted with AES-AK to complete the plugging, remediation, and reclamation work funded through the IIJA, it is appropriate that AES-AK be designated as operator of the ten wells listed above so that it may prepare and submit an Application for Sundry Approvals for each well. 2. Since the work is being done on the AOGCC’s behalf and is being done with funding made available in the IIJA, and since the work is being performed pursuant to the PSA that already imposes mutually agreed obligations on AES-AK, it is not appropriate for AES- AK to be subject to bonding or certain other new obligations or liabilities for the ten wells listed above. NOW THEREFORE IT IS ORDERED THAT: AES-AK is designated the operator of the ten wells listed previously in this order. AES-AK’s sole obligations and liabilities relating to its status as operator are those set forth in the PSA and the obligation in 20 AAC 25.105(e) to submit an Application for Sundry Approvals. The AOGCC releases AES-AK from, and waives any right to pursue AES-AK for, all other obligations and liabilities imposed on operators. In its sole discretion the AOGCC may remove wells from or add wells to the list of wells that this order applies to at any time, with notification to AES-AK; provided, however, that AOGCC may not add any well for which AES-AK has no plugging and abandonment responsibilities under the PSA. This order is contingent on the validity of all terms. In the event AES-AK is subject to any obligations or liabilities relating to any well(s) exceeding the obligations and liabilities set forth in the PSA or in 20 AAC 25.105(e), this order shall be void with respect those well(s) for all purposes effective as of the date of this order. DONE at Anchorage, Alaska and dated August 30, 2023. Brett W. Huber, Sr Jessie L. Chmielowski Gregory C. Wilson Chair, Commissioner Commissioner Commissioner Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2023.08.30 08:23:00 -08'00' Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2023.08.30 08:57:25 -08'00' Gregory Wilson Digitally signed by Gregory Wilson Date: 2023.08.30 08:59:07 -08'00' Other Order: 201 August 30, 2023 Page 3 of 3 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. From:Carlisle, Samantha J (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] Other Order 201 Date:Wednesday, August 30, 2023 9:23:50 AM Attachments:other 201.pdf Designation of operator and waiving of certain requirements for plugging and abandonment and site remediation of orphaned wells with monies the State of Alaska has received from the Infrastructure Investment and Jobs Act 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 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 ADMINISTRATIVE APPROVAL OTHER ORDER 201.001 Ms. Christy Resler President/CEO ASRC Energy Services Alaska, Inc. 3900 C Street, Suite 701 Anchorage, AK 99503 Re: Docket Number: OTH-25-004 Designation of operator and waiving of certain requirements for plugging and abandonment and site remediation of orphaned wells with monies the State of Alaska has received from the Infrastructure Investment and Jobs Act Dear Ms. Resler: Per the findings in Other Order 206 dated February 6, 2024, the Alaska Oil and Gas Conservation Commission (AOGCC) has determined that the Burglin 33-1 well qualifies as an orphan well and should be included in the orphan well plugging and abandonment program. On its own motion, and in accordance with 20 AAC 25.556(d), the AOGCC hereby administratively amends Other Order 201 to add the following well to the list of orphaned wells that ASRC Energy Services Alaska, Inc. is designated as operator of for the purpose of plugging and abandonment and performing site remediation: Well Name API Number Region of Alaska Burglin 33-1 50-029-21106-00-00 North Slope DONE at Anchorage, Alaska and dated January 16, 2025. Jessie L. Chmielowski Gregory C. Wilson Commissioner Commissioner Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2025.01.16 11:21:52 -09'00' Gregory C. Wilson Digitally signed by Gregory C. Wilson Date: 2025.01.16 11:26:19 -09'00' OO 201.1 January 16, 2025 Page 2 of 2 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.