Department of Commerce, Community, and Economic Development
Alaska Oil and Gas Conservation Commission
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10/6/2005 Orders File Cover Page.doc
1.
2. May 1,2007
3. May 2, 2007
4. June 29, 2007
5. August 1,2007
.
.
Index Other 50
Three Mile Creek Waste Determination
Background Information
Letter to Aurora Gas re: Notice of Waste Determination
Revised Letter to Aurora Gas re: Notice of Waste Determination
Aurora Gas payment for violation of$2771.30
AOGCC letter of receipt of monies
Other 50
:#-5
.
.
SARAH PALIN, GOVERNOR
AI,ASIiA OIL AND GAS
CONSERVATION COMMISSION
333 W. 7th AVENUE, SUITE 100
ANCHORAGE, ALASKA 99501-3539
PHONE (907) 279-1433
FAX (907) 276-7542
August 1, 2007
Certified Mail
Return Receipt Requested
7005 1160000157538793
J, Edward Jones
Aurora Gas, LLC
2500 Citywest Blvd, Suite 2500
Houston, TX 77042
Final Decision - Waste Classification Three Mile Creek Gas Release
Dear Mr. Jones:
The Alaska Oil and Gas Conservation Commission ("Commission") provided notice to Aurora
Gas, LLC ("Aurora") that it proposed to classify as "waste," as defined by AS 31.05.170(15),
522 Mcf of natural gas. The release of gas occurred at Three Mile Creek Unit February 1-3,
2007 because a manual valve was left open by a production facility operator. The released
volume was listed on the Facility Report of Produced Gas Disposition, Form 10-422 ("Gas
Disposition Report") as flared or vented for more than 1 hour. The release constitutes a violation
of AS 31.05.095, prohibiting the waste of gas. Because of this violation, the Commission
proposed to issue an order, under 20 AAC 25.535(e)(4), directing Aurora Gas, LLC ("Aurora")
to pay the fair market value of the natural gas at the point of waste.
The Commission received from Aurora a check dated June 29, 2007 in the amount of $2,771.30,
the calculated fair market value of the natural gas at the point of waste as presented in the
Commission's letter dated May 2, 2007. Based on Aurora's payment, the Commission considers
this action closed.
Sincerely,
-~~.,.._-.....__..,--_....._---
UNITED STATES POS~~L f)R~W~~~.~~I~ ~~;( I~~tll
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PS Form 3800 JWlf" 2002 SCP. FJevcr5c for In~tructlon5
· Complete Items 1, 2, and 3. Also complete
Item 4 if Restricted Delivery Is desired.
· Print your name and address on the reverse
so that we can return the card to you.
· Attach this card to the back of the mailplece.
or on the front, If space permits.
1. Article Addressed to: '~,
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If YES, enter delivery address below:
3. . ~e Type
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o Registered ~etum Receipt for Merchandise
o Insured Mail 0 C.O.D.
4. Restricted Delivery? (Extra Fee) 0 Yes
7005 1160 0001 5753 8793
Domestio Return ReceIpt
102595·(Y.!-M-1540 '
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.
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Bill Payment Stub
Check Date: 6/29/2007
Check No.: 9503
Check Amount: 2,771.30
Aurora Gas, LLC
2500 Citywest Blvd
Suite 2500
Houston, TX 77042
Paid To: Alaska Oil & Gas Conservation Commission
333 West 7th Ave., Suite 100
Anchorage, AK 99501
Date
Type
Reference
Original Amt.
Balance
Discount
Payment
6/29/2007
Bill
Violation: AS31.05.0
2,771.30
2,771.30
2,771.30
rVED
JUL 0 3 2007
,Alaska Oil & Gas Cons. COfnmiss¡n!J
Anchorage
Check Amount
2,771.30
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urora Gas, 1. I.. C
2500 CITYWEST BLVD. .. SUITE 2500 . HOUSTON, TX 77042
BANK OF TEXAS N.A.
BELLAIAE. TEXAS 77401-3951
32·1432·1110
6/29/2007
PAY TO THE Alaska Oil & Gas Conservation Commission $ **2,771.30
ORDER OF
Two Thousand Seven Hundred Seventy-One· and 30/1 00***************************************************************<
Alaska Oil & Gas Conservation Commission
333 West 7th Ave., Suite 100
Anchorage, AK 99501
MEMO
Violation: AS31.05.0
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SARAH PALIN, GOVERNOR
AlfASIiA OIL AlO) GAS
CONSERVATION COMMISSION
333 W. 7th AVENUE, SUITE 100
ANCHORAGE, ALASKA 99501-3539
PHONE (907) 279-1433
FAX (907) 276-7542
May 2, 2007
Certified Mail
Return Receipt Requested
7005 1160 0001 5753 8892
Revised Notice
J. Edward Jones
Aurora Gas, LLC
2500 Citywest Blvd, Suite 2500
Houston, TX 77042
Dear Mr. Jones:
The Alaska Oil and Gas Conservation Commission ("Commission") has reviewed the February
2007 Facility Report of Produced Gas Disposition, Form 10-422 ("Gas Disposition Report"),
dated March 16, 2007. for the Three Mile Creek Unit.
Based on the Gas Disposition Report, the Commission proposes to classify as "waste," as
defmed by AS 31.05.170(15), 522 Mcf of natural gas: the volume of gas released because a
manual valve was left open by a Three Mile Creek facility operator. The released volume is
listed on the Gas Disposition Report as flared or vented for more than 1 hour. In fact, the
duration of the release was nearly 48 hours. The release constitutes a violation of AS 31.05.095,
prohibiting the waste of gas.
Because of this violation, the Commission proposes to issue an order, under 20 AAC
25.535(e)(4), directing Aurora Gas, LLC ("Aurora") to pay the fair market value of the natural
gas at the point of waste: $2,771.30.
As provided by 20 AAC 25.535(c), within 15 days after receiving this notification, Aurora may
file with the éôñunission a written response concurring in whole or in part with the proposed
actions, requesting an informal review, or requesting a hearing under 20 AAC 25.540. If an
informal review is requested, Aurora will have an opportunity to submit documentary material
and make a written or oral statement; within 10 days after the proposed decision or order issues,
Aurora may file a written request for a hearing, in which case the proposed decision or order will
have no effect. After an informal review or a hearing, the Commission's action under 20 AAC
25.535(e) may not be limited to the proposed penalty described above. Also, the Commission's
action under 20 AAC 25.535 is in addition to any action it may take under AS 31.05.160.
J. Edward Jones
May 2, 2007
Page 2 of2
.
.
If a timely written response to this notification is not filed, the Commission will consider Aurora
to have accepted the proposed actions described above. For good cause shown, the Commission
may, at Aurora's request, grant an extension of the 15-day response period.
replaces the Commission's notification dated May 1, 2007.
Sincerely,
Daniel T. Seamount
Commissioner
Attachment
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AOGCC
333 W 7th Ave, Ste 100
Anchorage, AK 99501-3539
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SENDER: COMPLETE THIS SECT/ON
· Complete Items 1, 2, and 3. Also complete
, item 4 if Restricted Delivery is desired.
· Print your name and address on the reverse
so that we can return the card to you.
· Attach this card to the back of the mailplece,
or on the front if space permits.
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2. Art!cle Number
(Transfer from selV/ce label)
PS Form 3811 , February 2004
7005 1160 0001 5753 8922
Domestic Return Receipt
102595-02-M-1540
STATE OF ALASKA
ALASKA OIL AND GAS CONSERVATION COMMISSION
FACILITY REPORT OF PRODUCED GAS DISPOSITION
.
1. Facility Number I~' Facility Name 3. Field I~' Operator 15. MonthlYear of Disposition
28300000-12 TMC Beluga Unit Three Mile Creek Aurora Gas, LLC February-O?
Disposition Volume MCF 20. For production from multiple pools, list contribution of each pool as a percent of
Total Volume.
6, Sold Percent
43,535 Pool Name Pool Code
TMC Beluga Unit - Undefined 776500 100
7, Reinjected
-
8, Flared or vented 1 hour or less
9, Flared or vented more than 1 hour (see instr.)
522
10, Pilot and Purge
.
11 Used for lease operations (specify in Remarks)
1,953
12, Other (see instructions) ~mtrnhlmJmnßmfffjmmmlmlm~ltmdìlm¡U;nlmmmñm~f~~JnMl~m~mmummmfmUmìmfhnUnnH¡ú1mRmmIUfi!m~m!!mmU
. Authorization >1 hr: MCF
Safety
13. TOTAL VOLUME (ITEMS 6-12) MCF
46,011 Lease Use
14, NGI. Gas E.quivalent MCF
Conservation
15. Purchased gas 5z,... -z.-. MCF
Waste;
16 Transferred from: I/J¡¿// jJ L, 4- tf..-f· ð 7
/ Commissioner Date
17, Transferred to: (Express as a negative #)
18. Remarks: Line 11: Lease use gas is used as fuel for generator, dehydrator reboiler, and compressor,
I hereby certify fhat the foregoing is true and correct to the best of my knowledge.
~?-- Note: All volumes must bø corrected
Signature Title Manager - Production Operations & Engineerinfl to pressure of 14.65 psia and to a
temperature of 600 F. Authority 20
Printed NamE' Chad Helgeson Phone 907-277-1003 Date 3/16i2007 AAC25.235.
sSP-
.
Form 10-422 Rev. 1/2004
INSTRUCTIONS ON REVERSE SIDE
Submit in Duplicate
.
.
Aurora Gas, LLC
Excess Flare Log
Facility Name
Date:
Three Mile Creek
Februrary 07
Date & Time Event Gas Description of Steps Taken to
Begin End MCF Planned Incident Category Reason Actions Taken Minimize Recurrence
Meeting with OperGltors
Closed Valve, to talk about ensuring
Reviewed valves are completely
2/1107 @ 2/3/07 @ Manual Valve left Procedure with sealed when they are
0900 0730 522 No cracked open Operator Error Operators suppoed to block flow.
TOTAL 522 MCF
-#2
.
.
SARAH PALIN, GOVERNOR
AlfA~1iA OIL AND GAS
CONSERVATION COMMISSION
May 1, 2007
333 W 7th AVENUE, SUITE 100
ANCHORAGE, ALASKA 99501-3539
PHONE (907) 279-1433
FAX (907) 276-7542
Certified Mail
Return Receipt Requested
7005 1160 0001 5753 8922
J. Edward Jones
Aurora Gas, LLC
2500 Citywest Blvd, Suite 2500
Houston, TX 77042
Dear Mr. Jones:
The Commission has reviewed the February 2007 Facility Report of Produced Gas Disposition, Form 10-
422 ("Gas Disposition Report"), dated March 16,2007, for the Three Mile Creek Unit. Aurora Gas, LLC
("Aurora") provided the Gas Disposition Report to the Commission.
Based on the Gas Disposition Report, the Commission proposes to classifY as "waste," as defined by AS
31.05.170(15), 522 Mcf of gas: the volume of gas released because a manual valve was left open by a
Three Mile Creek facility operator. The released volume is listed on the Gas Disposition Report as flared
or vented for more than 1 hour; in fact, the duration of the release was nearly 48 hours. The release
constitutes a violation of AS 31.05.095, prohibiting the waste of gas.
Furthermore, because of this violation, the Commission proposes to issue an order, under 20 AAC
25.535(e), directing Aurora to pay the fair market value of the natural gas at the point of waste or
$2,771.30.
As provided by 20 AAC 25.535 (c), within 15 days after receipt of this notification Aurora may file with
the Commission a written response that concurs in whole or in part with the proposed action described
here, requests informal review, or requests a hearing under 20 AAC 25.540. If informal review is
requested and Unocal disagrees with the Commission's proposed decision or order after that review,
Unocal may then request a hearing within 10 days after the proposed decision or order is issued.
If Aurora does not file a timely written response to this notification, the Commission will consider Aurora
to have accepted by default the proposed action described above. If Aurora requires more than 15 days to
respond, y ay for good cause shown request an extension of the IS-day response period.
Attachment
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UNITED STATES ~¿~~(l!ll '1")( 7'72:'
· Sender: Please print your name, address, and ZIP+4 In this box ·
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t:I Return Receipt Fee 1t1 85
t:I (Endorsement Required) " .
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ÞS Form 3800 June 2002 See Reverse for Instructions
: · Complete items 1, 2, and 3. Also complete
item 4 if Restricted Delivery Is desired.
· Print your name and address on the reverse
so that we can return the card to you.
· Attach this carc;1 to the back ?f the mailpiec9J, .' l_
or on the front f space permits., ., ')~,:iì
1. Article Addresšfo:
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3.. S~ Type
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o Registered ~turn Receipt for Merchandise
o Insured Mall ,0 C.O,O.
4. Restricted Delivery? (Extra Fee) 0 Yes
PS Form 3811, February 2004
7005 1160 0001 5753 8892
DomestIc Return Receipt
f 02595'()2-M-1 è40 !
STATE OF ALASKA
ALASKA OIL AND GAS CONSERVATION COMMISSION
FACILITY REPORT OF PRODUCED GAS DISPOSITION
.
1 F~cílity Number V' Facility Name 3, Field I~' Operator 15. MonthlY ear of Disposition
2/3300000 12 TMC Beluga Unit Three Mile Creek Aurora Gas, LLC Febmary-O I
~.-
Disposition Volume MCF 20. For production from mullíple pools, list contribution of each pool as a percent of
~-~-,- Total Volume.
(j Sold -
43,535 Pool Name POOl Code Percent
---"._.__..__._~ .
TMC 8eluga Unit· Undefined 776500 100
7 R8ìnlccled -
-
.----..--- -
8 HarNI or vpnted 1 hour or less -
--.-. -
9 Flared or vented more than 1 hour (see instr,) -
522
_·___~..___._,.____·M__ -
10 Pilo\ and ['llrge -
-
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11 Us('d for lease operaHons (speciFy;n Remarks) -
f---------- 1.953
12 O!her (S(,0 Instructions) :[mmf.liU!t~nßmm¡mmmUm¡¡mlm!lm!¡¡m¡!II!WjN!!!fim~!~~~!II~¡~¡¡¡~im!!mim!m¡¡H~Hi¡¡¡ml!mr.~H¡~1ill~!ll!!ì1iifi!m¡mM~illn
. _. " ". - ,.,_,", .... _u . _
-- Authorization >1 hr: MCF
---..---.--,..-. Safety
13 TOT At VOLUME (ITEMS 6-12) -
46,011 MCF
-- Lease Use
1-1 W;L (~;1'; F qUlvalent
MCF=
Conservation
1 ~, Purck1se:d qas 5z... -z-. -
Waste: MCF
----.........-.-.,..--...------ - -
16 rr¡m~t8rrpd from /1/t fJ 1 tf.--f· (J 7
---- J rj~~1 /~,..f.v-- -
/ Commissioner Date
17 lransfprrpd fo: (Express as a negative #) -
~'----'.- _.._----~_.,---. -
lR R('n18rkr.; Line 11 Lease use gas is used as fuel for generator. dehydrator reboiler. and compressor.
-'-'~ -
I hen,hy ferlify Hli1t the foregoing is true and correct to the best of my knowledge,
L%/~ Note: All volumes must bl~ corrected
Slqrnlur0 ---- Title_ Manager - Production Operations & EnQineerinç¡ to pressure of 14.65 psia and to a
temperature of 600 F. Authority 20
é""11'èr! ~Jdrr)" Chad Helgeson Phone 907-277-1003 Date 3/16/2007 AAC25.235,
-
SBfL.
.
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lorrn 1001;>/ Rev, 10004
INSTRUCTIONS ON REVERSE SIDE
Submit in Duplicate
.
.
~
Aurora Gas, LLC
Excess Flare Log
f ~cility Name
Date:
Three Mile Creek
Februrary 07
_'_n__._
Date & Time Event Gas Description of Steps Taken t,o
Begin End MCF Planned Incident Category Reason Actions Taken Minimize Recurrence
Meeting with Operators
Closed Valve, to talk about ensuring
Reviewed valves are completøly
2/1/07 @ 2/3/07 @ Manual Valve left Procedure with sealed when they are
OC)OO 0730 522 No cracked open Operator Error Operators suppoed to block fh:,w.
"" - --
.
- --
--
--
-
-~'-'
--.-
TOTAL 522 MCF
--
,#1
Tax Division Programs: Oil and Gas Production Tax
.
.
www~tax.state.ak.us
WeJeome to the Tax DMsion OnLine
Tax Division> Proqrams > Oil > Prices> Prevailinq Value> Cook In!et
As provided under 15 MC 55.173(b) for gas delivered in the Cook Inlet area,
the Department will publish on the 15th of each calendar quarter, the prevailing
value for that quarter. This prevailing value is the weighted average price of
significant sales of gas to publicly regulated utilities in Cook Inlet.
Cook Inlet~Vále
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