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Home My WebLink AboutO 059• • Image Project Order File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. ~~ Order File Identifier Organizing (done> RESCAN ^ Color Items: ^ Greyscale Items: ^ Poor Quality Originals: ^ Other: NOTES: BY: Maria ~...~-- Project Proofing BY: l Maria 1 Date: iiiumuii~iiiu rnp r Scanning Preparation x 30 = + =TOTAL PAGES_~ l~'' ~ O (Count does not include cover sheet) BY: Maria Date: // /s/ ~~ Production Scanning D ae=~.,,~eeae~ uiiauimiiiui~ OVERSIZED (Scannable) ^ Maps: ^ Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) ^ Logs of various kinds: ^ Other:: /s/ Stage 1 Page Count from Scanned File: ~ (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: ~ES NO BY: Maria Date: 3/~' IO lsl Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. II I II ~I II VI II I ~ III ReScanned IIIIIIIIIIIIII VIII BY: Maria Date: /s/ Comments about this file: Quality Checked III (I'III III IIII III ..o,,e~ iuuuiiiuiuuu DIGITAL DATA ^ Diskettes, No. ^ Other, No/Type: Date: 10!6/2005 Orders File Cover Page.doc INDEX OTHER ORDER N0.59 Suspended Well Regulations 1. September 1, 2009 Notice of Hearing, Additional regulations information 2. October 15, 2009 Public Hearing Transcript 3. October 28, 2009 Public Meeting Minutes 4. January 28, 2010 Final regulations, pertinent attachments 5. February 18, 2010 Attorney review memo 6. March 5, 2010 Regulations waiver of suspended wells 7. ----------------- Amended regulations, bulk mailing list, a-mail list, order certifying changes Other Order No. 59 ~7 Amended Regulations Dealing with Suspended Wells The Alaska Oil and Gas Conservation Commission (Commission) has revised its regulations dealing with suspended well requirements in 20 AAC 25.110(n). The amended regulation clarifies the Commission's authority and provides explicit criteria for granting waivers. The Lieutenant Governor signed and filed the regulation changes on March 16, 2010, with an effective date of April 15, 2010. For further information or to obtain a copy of the amended regulations, contact Jody Colombie at (907) 793-1221, fax (907) 276-7542, or e-mail jody.colombie a,alaska.gov. Register 194, July 2010 ~ MISCELLANEOUS BOARD 20 AAC 25.110(n) is amended to read: (n) Upon written request of the operator, the commission may modify a deadline in this section upon a showing of good cause, approve a variance from any other requirement of this section if the variance provides at least an equally effective means of complying with the requirement, or approve a waiver of a requirement of this section if the waiver will not promote waste, is based on sound engineering and geoscience principles, will not jeopardize the ultimate recovery of hydrocarbons, will not jeopardize correlative rights, and will not result in an increased risk to health, safety, or the environment, including freshwater. (Eff. 4/2/86, Register 97; am 11/7/99, Register 152; am 11/19/2008, Register 188; am 04/15/2010, Register 194) Authority: AS 31.05.030 AS 31.05.040 AS 31.05.095 Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 Ivan Gillian 9649 Musket BelfCr.#5 Anchorage, AK 99507 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Richard Wagner PO Box 60868 Fairbanks, AK 99706 David McCaleb George Vaught, Jr. IHS Energy Group PO Box 13557 GEPS Denver, CO 80201-3557 5333 Westheimer, Ste 100 Houston, TX 77056 Richard Neahring Mark Wedman NRG Associates Halliburton President 6900 Arctic Blvd. PO Box 1655 Anchorage, AK 99502 Colorado Springs, CO 80901 Ciri Baker Oil Tools Land Department 4730 Business Park Blvd., #44 PO Box 93330 Anchorage, AK 99503 Anchorage, AK 99503 Jill Schneider Gordon Severson US Geological Survey 3201 Westmar Cr. 4200 University Dr. Anchorage, AK 99508-4336 Anchorage, AK 99508 Darvuin Waldsmith James Gibbs PO Box 39309 PO Box 1597 Ninilchick, AK 99639 Soldotna, AK 99669 Penny Vadla Cliff Burglin 399 West Riverview Avenue 319 Charles Street Soldotna, AK 99669-7714 Fairbanks, AK 99701 Bernie Karl North Slope Borough K&K Recycling Inc. PO Box 69 PO Box 58055 Barrow, AK 99723 Fairbanks, AK 99711 C~ Colombie, Jady J (DOA) From: Colombie, Jody J (DOA) Sent: Monday, March 22, 2010 3:30 PM To: Aubert, Winton G (DOA); Ballantine, Tab A (LAW); Brooks, Phoebe; Crisp, John H (DOA); Darlene Ramirez; Davies, Stephen F (DOA); Fisher, Samantha J (DOA); Foerster, Catherine P (DOA); Grimaldi, Louis R (DOA); Johnson, Elaine M (DOA); Jones, Jeffery B (DOA); Laasch, Linda K (DOA); Mahnken, Christine R (DOA); Maunder, Thomas E (DOA); McIver, Bren (DOA); McMains, Stephen E (DOA); Noble, Robert C (DOA); Norman, John K (DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Saltmarsh, Arthur C (DOA); Scheve, Charles M (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); 'Aaron Gluzman'; Bettis, Patricia K (DNR); caunderwood@marathonoil.com; 'Dale Hoffman'; Frederic Grenier; 'Gary Orr'; Jerome Eggemeyer; 'Joe Longo'; 'Lamont Frazer'; Marc Kuck; 'Mary Aschoff; Maurizio Grandi; Ostrovsky, Larry Z (DNR); P Bates; Randy Hicks; Richard Garrard; 'Sandra Lemke'; 'Scott Nash'; Talib Syed; 'Tiffany Stebbins'; 'Wayne Wooster'; 'Willem Vollenbrock'; 'William Van Dyke'; Woolf, Wendy C (DNR); (foms2@mtaonline.net); (michael.j.nelson@conocophillips.com); (Von.L.Hutchins@conocophillips.com); alaska@petrocalc.com; Anna Raff; Barbara F Fullmer; bbritch; Becky Bohrer; Bill Walker; Bowen Roberts; Brad McKim; Brady, Jerry L; Brandon Gagnon; Brandow, Cande (ASRC Energy Services); Brian Gillespie; Brian Havelock; Bruce Webb; carol smyth; Charles O'Donnell; Chris Gay; Cliff Posey; Crandall, Krissell; Dan Bross; dapa; Daryl J. Kleppin; David Boelens; David House; David Steingreaber; 'ddonkel@cfl.rr.com'; Deborah J. Jones; doug_schultze; Elowe, Kristin; Evan Harness; eyancy; Francis S. Sommer; Fred Steece; Garland Robinson; Gary '~ Laughlin; Gary Rogers; Gary Schultz; ghammons; Gordon Pospisil; Gorney, David L.; Gregg Nady; gspfoff; Hank Alford; Harry Engel; Jdarlington Qarlington@gmail.com); Jeff Jones; Jeffery 6. Jones Qeff.jones@alaska.gov); Jerry McCutcheon; Jim White; Jim Winegarner; Joe Nicks; John Garing; John S. Haworth; John Spain; John Tower; John W Katz; Jon Goltz; Joseph Darrigo; Julie Houle; Kari Moriarty; Kaynell Zeman; Keith Wiles; Larry Ostrovsky; Laura Silliphant; Marilyn Crockett; Mark Dalton; Mark Hanley (mark.hanley@anadarko.com); Mark Kovac; Mark P. Worcester; Marguerite kremer; 'Michael Dammeyer'; Michael Jacobs; Mike Bill; Mike Mason; Mikel Schultz; Mindy Lewis; MJ Loveland; mjnelson; mkm7200; nelson; Nick W. Glover; NSK Problem Well Supv; Patty Alfaro; Paul Decker (paul.decker@alaska.gov); PORHOLA, STAN T; Rader, Matthew W (DNR); Raj Nanvaan; Randall Kanady; Randy L. Skillern; Rob McWhorter; rob.g.dragnich@exxonmobil.com; Robert A. Province (raprovince@marathonoil.com); Robert Campbell; Roberts, Susan M.; Rudy Brueggeman; Scott Cranswick; Scott, David (LAA); Shannon Donnelly; Sharmaine Copeland; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); Sondra Stewman; Steve Lambert; Steve Moothart; Steven R. Rossberg; Suzanne Gibson; tablerk; Tamera Sheffield; Taylor, Cammy O (DNR); Ted Rockwell; Temple Davidson; Teresa Imm; Terrie Hubble; Thor Cutler; Tina Grovier; Todd Durkee; Tony Hopfinger; trmjr1; Walter Featherly; Williamson, Mary J (DNR); Winslow, Paul M; David Johnson Subject: Post Hearing Notice Suspended Wells 20 AAC 25.110(n) Attachments: Final Suspended Wells Regulation.doc; Post Hearing Notice Suspended Wells.doc Jody J. Color~a~hie Special Assistant Alaska Oil and Gcrs Consewation Commission 333 Guest 7th Avenue, Suite 100 Anchorage, AK 99501 (9007,93-1221 (phone) (907j276-7542 (fax) • Colombie, Jody J (DOA) From: Clark, Scott M (GOV) Sent: Tuesday, March 16, 2010 3:34 PM To: Pearson, Robert L (DOA) Cc: Cramer, John W (GOV); Clark, Scott M (GOV); Behr, Deborah E (LAW); Miller, Linda J (LAW); Weaver, Steven C (LAW); Messing, Kevin J (LAW); Pound, Jim (LAA); Colombie, Jody J (DOA) Subject: Regulations Filed: JU2009200921 Attachments: JU2009200921.pdf Follow Up Flag: Follow up Flag Status: Flagged On 3/16/2010, Lieutenant Governor Craig E. Campbell filed regulations (JU2009200921) from the Alaska Oil and Gas Conservation Commission re: Waiver of Suspended Well Requirements (20 AAC 25.110(n)). The effective date of the regulations is 4/15/2010, and the regulations will be published in Register 194, July 2010. The filing certification and regulation text are attached. Thank you, Scott Clark Special Assistant Office of Lieutenant Governor Craig E. Campbell 240 Main Street, Room 301 Juneau, Alaska 99801 PHONE: 907.465.4081 FAX: 907.465.5400 -,~n~;.cLrrl, ;~ ;~laska.~ov '':,ov.alaska.~ov T ieutenant Governor •°r~., A ~3t~ West 7`r' R ~ ~-:iii 7?0~ S~aCe Capitol ~ ~ /I t~achi~ra~e 11 ~.i,_;: ~~~ ;O1 iuneau, Alas]:a 981 i f 9~7 ~{q." 1-, ~G9.il?i, 9 t)O7 ~f~ 352O 465.54(~~ F~Lx ~ ,,~ LT.GOV~Rti'r,I; ~ ~l ~>i, 'v t~lL W .Iw I crOb ALASKA.GOh ~'t' "+ ~ OFFICE OF THE LIEU'TENAN`T GOVERNOR ALASKA MEMORANDUM 'TO: Robert: Pearson, 1.:~C; Cozatact Department cif administration FROM: Scott Clark ~ ~ " __. __ - . t { __ '~ Special.assisrant 9Cl?.~{aS.~Oli1 ' DATE: i~larcla 16, 201.O RE: 1~ilc:d 1?ermanent Re~ulations:~laska t)il and. t~ras C~<:>nserti-ation Cotnanission `1'aitier of Suspended tl%ell Recluircments: 20 .-~_1C; ?~.110(n) llttorney General File: J C.~~709200921 Re:~lat~ion piled; 3/16J2010 L;ffective Tate: ~/1 x/2010 Print: 19~, Jul)= 2010 cc v~ntl~ enclosures: Linda Millex, Depart:mc.rat of La~T ~m Pound, administeat7~-e I~e~ulation lZev-ie~x~ Comn~aittc:c Juci)r Herndon, I,e:~isNexis Jody Cc~lonibie, DO1~, ORDER CERTIFYING THE CHANGES TO REGULATIONS OF ALASKA OIL AND GAS CONSERVATION COMMISSION The attached 1 page of regulations, dealing with suspended wells under 20 AAC 25, is certified to be a correct copy of the regulation changes that the Alaska Oil and Gas Conservation Commission adopted at its October 28, 2009 meeting, under the authority of AS 31.05.030 and AS 31.05.040 and in compliance with the Administrative Procedure Act (AS 44.62), including the notice provisions (AS 44.62.190 and AS 44.62.200) and opportunity for public comment provision (AS 44.62.210). This action is not expected to require an increased appropriation. There were no public comments presented to the Alaska Oil and Gas Conservation Commission and it does not anticipate any costs to private persons for the regulatory action being taken. As provided in AS 44.62.180, the subject regulation changes take effect on the 30th day after they are filed by the lieutenant governor. DATE: JanuarX28, 2010 Anchorage Daniel T. Seamount, Jr. Chair ~` i FILING CERTIFICATION a.~ I, Craig E. Campbell, Lieutenant Governor for the State of Alaska, certify that on (~,r~"~;~/`~ i~~, 2010 at [, ~ ~ ( ,.m., I filed the attached regulations according to the provisions of AS 44.62.040 - 44.62.120. Lieutenant Governor. ii ~,a- v Effective: ~ ^ L~ "~~ L" ~~~~ Register: ~~'~ ~' ~~ t.~ ~ ~ ~ ~ ~ FUR llELEGATI()N OF THE LIEUTENANT GOVERNOR'S AUTH012IT,'Y I; CRAIG E. CAMPBELL, LIEU'I'FNANT GOVERNOR OF THF~ SPATE OF ALASKA, designate the following state employee to perfarm the Administrative Procedures Act tiling functions of the Office of the Lieutenaint Governor: SCOTT' CLARK, Special Assistant IN TESTIMONY WI~1±IR.EOF, I have signed and affixed the Seal of the State of Alaska, at Juneau, on February 23, 2p10. •.....fw9..N...........•a.....N........r •...........• E. C~OV:I±~IINOI2 ~ ~~ Register ~~, t. < 20 AAC 25.110(n) is amended to read: MISCELLANEO~OARDS (n) Upon written request of the operator, the commission may modify a deadline in this section upon a showing of good cause, approve a variance from any other requirement of ..Qa2.~l.. ,~~, t~~.a this section if the variance provides at least an equally effective means of complying with or annrove a sound if the waiver will not the'ultimate recovery of hydrocarbons, will not jeopardize correlative.ri~hts, and will not result in an increased risk to health,__safe~or the environment, including freshwater. (Eff. 4/2/86, Register 97; am 11/7/99, Register 152; am 11/19/2008, Register 188; am ~, ,~~. `~`'.~`yL v~~: Pre. ~~2:~.~e.~. ~ lr / ~ ~~ 11U~c.3 Register ~) ~'~) rrc., bo~'~. Authority: AS 31.05.030 AS 31.05.040 AS 31.05.095 1 ~~6 w e • MEMORANDUM To: Daniel T. Seamount, Jr., Chair Alaska Oil and Gas Conservation Commission State of Alaska Department of Law oaTe: March 5, 2010 ~~~~~~ Flee No.: JU2009200921 LIAR 1 1 201a TELEPHONE NO.: 465-3600 ~$~~~~~~ ;~ ~, anchorage i` `~ FROnn: Steven C. Weaver sus~ecT: Regulations re: waiver of Assistant Attorney General suspended well requirements Legislation/Regulations Section--Juneau (20 AAC 25.110(n)) Under AS 44.62.060, we have reviewed the attached amendment of these regulations by the Alaska Oil and Gas Conservation Commission, and approve the changes for filing by the lieutenant governor. I have reviewed this project under a specific delegation dated March 5, 2010 from the Regulations Attorney. A duplicate original of this memorandum is being furnished to the lieutenant governor, along with the one page of regulations and the related documents. You might wish to contact the lieutenant governor's office to confirm the filing date and effective date of the attached regulation changes. The September 3, 2009 public notice and the January 28, 2010 certification order both state that this action is not expected to require an increased appropriation. Therefore, a fiscal note under AS 44.62.195 is not required. In accordance with AS 44.62.125(b)(6), some corrections have been made in the regulations, as shown on the attached copy. scw cc w/enc: Robert Pearson, Special Assistant & Regulations Contact Department of Administration Jody Colombie Alaska Oil and Gas Conservation Commission Thomas Ballantine Assistant Attorney General Oil, Gas & Mining Section--Anchorage ~~ MEMORANDUM State of Alaska Department of Law To: Hon. Craig E. Campbell Lieutenant Governor SATE: March 5, 2010 FILE No.: JU2009200921 TELEPHONE NO.: 465-3600 1 ~-- FROM: Steven C. Weaver ~,~ SUBJECT: RegulatlOriS re: Wa1Ver Of ~~ '~ ,_1,_.- _ , Assistant Attorney General suspended well requirements Legislation/Regulations Section--Juneau (20 AAC 25.110(n)) We have reviewed the attached regulations from the Alaska Oil and Gas Conservation Commission. I have reviewed this project under a specific delegation dated March 5, 2010 from the Regulations Attorney. A duplicate of this memorandum is being furnished to the commission chair, Daniel T. Seamount, Jr., along with a copy of the regulations. The Department of Law has reviewed the attached regulations against the statutory standards of the Administrative Procedure Act. Based upon our review, we find no legal problems. This memorandum and the attached duplicate memorandum dated March 5, 2010 constitute the written statement of approval under AS 44.62.060(b) and (c) that authorizes your office to file the attached regulations. The regulation changes were adopted by the Alaska Oil and Gas Conservation Commission after the close of the public comment period. The regulations establish provisions and conditions under which the Alaska Oil and Gas Conservation Commission may waive requirements relating to suspended wells. The certification order for the regulations states that this action is not expected to require an increased appropriation. Therefore, a fiscal note under AS 44.62.195 is not required. We have made a few technical corrections to conform the regulations with the drafting manual under AS 44.62.060 and 44.62.125. The corrections are shown on the attached copy of the regulations. scw cc w!enc: Daniel T. Seamount, Jr., Chair Alaska OiI & Gas Conservation Commission '' f c? Register _ 20 ,AAC 25.110(n) is amended to read: MISCELLANEOUS BOARDS (n) Upon written request of the operator, the commission may modify a deadline in this section upon a showing of good cause, approve a variance from any other requirement of this section if the variance provides at least an equally effective means of complying with the requirement, or approve a waiver of a requirement of this section if the waiver will not promote waste, is based on sound engineering and geoscience principles, will not jeopardize thee.. ultimate recovery of hydrocarbons, will not jeopardize correlative rights, and will not result in an increased risk to health, safety, or the environment, including freshwater. (Eff. 4/2/86, Register 97; am 11/7/99, Register 152; am 11/19/2008, Register 188; am ~, ~.x,~:~ad..~r-~Q~,~ / / ,Register ) ~, ~~~ Authority: AS 31.05.030 AS 31.05.040 AS 31.05.095 `~ ME ~1RANDUM Ta Deborah Behr thief Assistant Attorney General Section Supervisor Legislation and Regulations Section Steven Weaver 1~ssistant Attorney General Iegislation and Regulations From: Thomas Ballantine Assistant Attorney General Oii, Gas & Mining Section C~ State of Alaska Department of 1.aw uat« February 18, 2010 Tel. No.: 269-5255 aC. Fide No: JU0009200921 R~ Regulations Review: Amendments to Suspended Well Regulations, 20 AAC 25.110(n) AGENCY-ATTORNEY REVIEW MEMORANDUM The Alaska Oil and Gas Conservation Commission ("Commission") has adopted amendments to subsection (n) of 20 AAC 25.110, governing suspended wells. On September 3, 2009 the Commission provided notice of proposed changes to the suspended wells regulations in 20 AAC 25.110(n) by 1) publishing in a newspaper of general circulation or trade publication, 2) furnishing the proposed changes to interested persons and the appropriate state officials, 3) transmitting the proposed changes to incumbent state legislators, 4) furnishing the proposed changes to the Legislative Affairs Agency, and 5) posting the proposed changes on the Alaska Online Public Notice System. On October 15, 2009, in accordance with the notice published, a hearing was held' at which oral testimony was received. No written comments were received. At its October 28, 2009 meeting the Commission unanimously adopted the proposed amendments to 20 AAC 25.110(n). The proposed amendments to the suspended wells regulations reasonably and clearly achieve objectives within the Commission's statutory mandate to regulate the "drilling, producing and plugging" of oil and gas wells, and to protect the correlative rights of persons owning interests in the tracts of land affected by oil and gas drilling. Under 20 AAC 25.110 the Commission has the authority to allow an operator to suspend rather than complete or plug and abandon a well. The requirements for approval Deb ~, rah Behr & Steven Weaver February 18, 2010 p A.G~ File No: JU0009200921 Page 2 of al request to suspend a well, rigorous and detailed, are not. appropriate to every situation. While the Commission has the implicit authority to grant waivers in appropriate circumstances, the amendment to 20 AAC 25.110(n) clarifies the Commission's authority and provides explicit criteria for the grant of such waivers. The amendment to 20 AAC 25.110(n) was adopted under the authority of the Alaska Oil and Gas Conservation Act (AS 31.05), is consistent with state and federal statutory and constitutional law and Commission regulations (20 AAC 25), and was adopted in accordance with the requirements of the Administrative Procedure Act (AS 44.60 and the Department of Law's drafting manual for administrative regulations. The regulation is ready for filing. ~t MEMORANDUM STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION TO: Regulations Attorney DATE: January 28, 2010 Legislation/Regulations Section Department of Law SUBJECT: AG File No. JU2009200921 Request for Legal Review of Regulations Project on Suspended Wells 20 AAC 25.110(n) FROM: Daniel T. Seamount, Jr., Chair Regulations Conta Department of dm' i i We are requesting approv of the attached final regulation which will allow the Commission explicit flexibility to vary or waive the existing well suspension requirements. The Commission adopted these changes on October 28, 2009. Enclosed are the following documents: 1. original and one copy of the final regulations; 2. original signed and dated certification order; 3. original public notices; 4. original additional regulations notice information form distributed with the notice; 5. original publisher's affidavit's of publication; 6. original affidavit of notice; 7. original affidavit of oral hearing; 8. original affidavit of commission action; 9. excerpt from approved minutes from the October 28, 2009 meeting; We worked with Assistant Attorney General Thomas Ballantine on this project. Upon completing your review, please forward the regulations to the lieutenant governor for filing. In accordance with AS 44.62.180, the regulation changes will take effect on the 30~' day after filing. ~ ~0 MISCELLANEOUS~ARDS Register 20 AAC 25.110(n) is amended to read: (n) Upon written request of the operator, the commission may modify a deadline in this section upon a showing of good cause, approve a variance from any other requirement of this section if the variance provides at least an equally effective means of complying with the requirement, or approve a waiver of a requirement of this section if the waiver will not promote waste, is based on sound engineering and geoscience principles, will not jeopardize the ultimate recovery of hydrocarbons, will not jeopardize correlative rights, and will not result in an increased risk to health, safety, or the environment, including freshwater. (Eff. 4/2/86, Register 97; am 11/7/99, Register 152; am 11/19/2008, Register 188; am / / ,Register ~ Authority: AS 31.05.030 AS 31.05.040 AS 31.05.095 1 . ~ Register ~0_ 20 AAC 25.110(n) is amended to read: MISCELLANEOUS ~ARDS (n) Upon written request of the operator, the commission may modify a deadline in this section upon a showing of good cause, approve a variance from any other requirement of this section if the variance provides at least an equally effective means of complying with the requirement, or approve a waiver of a requirement of this section if the waiver will not promote waste, is based on sound engineering and geoscience principles, will not jeopardize the ultimate recovery of hydrocarbons, will not jeopardize correlative rights, and will not result in an increased risk to health, safety, or the environment, including freshwater. (Eff. 4/2/86, Register 97; am 11/7/99, Register 152; am 11/19/2008, Register 188; am / / ,Register ) Authority: AS 31.05.030 AS 31.05.040 AS 31.05.095 1 ORDER CERTIFYING THE CHANGES TO REGULATIONS OF ALASKA OIL AND GAS CONSERVATION COMMISSION The attached 1 page of regulations, dealing with suspended wells under 20 AAC 25, is certified to be a correct copy of the regulation changes that the Alaska Oil and Gas Conservation Commission adopted at its October 28, 2009 meeting, under the authority of AS 31.05.030 and AS 31.05.040 and in compliance with the Administrative Procedure Act (AS 44.62), including the notice provisions (AS 44.62.190 and AS 44.62.200) and opportunity for public comment provision (AS 44.62.210). This action is not expected to require an increased appropriation. There were no public comments presented to the Alaska Oil and Gas Conservation Commission and it does not anticipate any costs to private persons for the regulatory action being taken. As provided in AS 44.62.180, the subject regulation changes take effect on the 30th day after they are filed by the lieutenant governor. DATE: January 28, 2010 Anchorage Daniel T. Seamount, Jr. Chair FILING CERTIFICATION I, Craig E. Campbell, Lieutenant Governor for the State of Alaska, certify that on 2010 at .m., I filed the attached regulations according to the provisions of AS 44.62.040 - 44.62.120. Lieutenant Governor Effective: Register: l_J NOTICE OF PROPOSED CI~ANGES IN THE REGULATIONS OF THE ALASKA OIL AND GAS CONSERVATION COMMISSION The Alaska Oil and Gas Conservation Commission (AOGCC) proposes to adopt regulation changes to Title 20 of the Alaska Administrative Code, dealing with the annular disposal of drilling waste (20 AAC 25.080) and suspended wells (20 AAC 25.110). On May 22, 2009, AOGCC published a notice of proposed changes to 20 AAC 25.080; because of substantive changes to the proposed changes, AOGCC is re-noticing them, fully revising (i. e., repealing and readopting) 20 AAC 25.080 as follows: 1. modify the aquifer exemption for the disposal of drilling waste to require that the operator apply for and the U.S. EPA grant the exemption; 2. modify the information that must be submitted with an annular disposal application; 3. modify the limitations and conditions applicable to annular disposal; 4. add a provision for requesting variances and waivers; and 5. delete subsection (i) to recognize AOGCC's authority to regulate annular disposal in water wells associated with oil or gas exploration or production. In addition, AOGCC proposes to add to 20 AAC 25.110(n) the opportunity for variances and waivers. Written comments on the proposed regulation changes, including the potential costs of compliance, may be submitted to AOGCC at 333 West Th Ave., Suite 100, Anchorage, AK 99501. The comments must be received by 5:00 p.m. on October 9, 2009. Written and/or oral comments may be submitted at a hearing to be held on October 15, 2009, at 333 West 7`h Ave., Suite 100, Anchorage, AK. The hearing will be held from 9:00 a.m. to 11:00 a.m. and might be extended to accommodate those present before 9:30 a.m. who did not have an opportunity to comment. If, because of a disability, a special accommodation is needed to participate in this process, please contact the Commission's Special Assistant, Jody Colombie, at 907-793-1221; 333 West 7`~' Ave., Suite 100, Anchorage, AK 99501; or jody.colombierc~alaska.gov. Ms. Colombie must be contacted by October 6, 2009, at 5:00 p.m. to ensure that necessary accommodations can be provided. The proposed regulation changes are available at www.aogcc.alaska~;o_v or by contacting Ms. Colombie at the phone number, physical address, or e-mail address above. After the public comment period ends, AOGCC will adopt, without notice, these or other provisions dealing with the same subjects or decide to take no action. The language of the proposed and final regulations may be different. YOU SHOULD COMMENT DURING THE TIME ALLOWED IF YOUR INTERESTS COULD BE AFFECTED. Written comments are subject to public inspection. Statutory Authority: AS 31.05.030; AS 31.05.040; AS 3 ]..05.095 Statutes Being Implemented, Interpreted, or Made Specific: AS 31.05.030; AS 31.05.040; AS 31.05.095 Fiscal Information: The proposed regulation changes are not expected to -•equire an increased appropriation. DATE: ~ 1 ~ Daniel T. Se mount, Jr. Chair ADDITIONAL REGULATIONS NOTICE INFORMATION (AS 44.62.190(d)) 1. Adopting agency: Alaska Oil and Gas Conservation Commission. 2. General subject of regulations: annular disposal of drilling waste and suspended wells. 3. Citation of regulations: 20 AAC 25.080 and 20 AAC 25.110(n). 4. Reason for the proposed action: update the annular disposal of drilling waste regulations and add opportunities for variances and waivers to the suspended wells regulations. 5. Program category and BRU affected: Alaska Oil and Gas Conservation Commission. 6. Cost of implementation to the state agency: zero. 7. The name of the contact person for the regulations: Name: Daniel T. Seamount, Jr. Title: Chair Address: 333 W. 7th Avenue, Suite 100, Anchorage, AK 99501 Telephone: (907) 793-1221 E-mail: jody.colombie@alaska.gov 8. The origin of the proposed action: agency staff. 9. Date: September 1, 2009. ~ ~~ 10. Prepared by: Jo J. o bie A ska Oil d Gas Conservation Commission (907) 793-1221 STOF 0330 681668 $424.96 AFFIDAVIT OF PUBLICATION STATE OF ALASKA NOTICE OF PROPOSED CHANGES INTHE REGWlAT10NS OF THE THIRD JUDICIAL DISTRICT ALASKA OIL AND GAS CONSERVATION COMMISSION Jellnlfer Br0 Wn The Alaska oil and Gas Conservation Commission (AOGCC) proposes to adopt regulation changes, t0 Title 20 of the Alaska Administrative Code, dealingg al of drilingg waste (20 AAC di being first duly sworn Ori oath spos with the annular 25:080) and suspended wells (20 AAC 25.110). On 2009, AOGCC published a notice of May 22 de OSBS and Sa S that She 1S p y , proposed changes to 20 AAC 25.080, because of a repreSeritatlVe Of the substantive changes to the proposed changes, AOGCC is re-noticing them, fullyy revising b.e., Anchorage Daily News, a repealing and readopbr>$j 20 AAC 25.080 as follows: dail news a er. That said }' 11 11 1. mollify the aquifer exemption for the disposal of drilling waste to require that the operator rieWS a er has been a rOVed p 1~ Pp -apply for and the U.S. EPA grant the bon ;. exempp modiry the Information that must be submitted 2 by the Third Judicial Court, . with an annular disposal application; AriC110rage, Alaska, and It riOw 3. modify the limitations and conditions applicable to annular disposal; and has been published in the a. add a provision for requesting variances and English language continually as a waivers; and 5. delete subsection (i) to recognize Aoccc~s authority to regulate annular disposal in water daily newspaper in Anchorage, wells associated with oil or gas explorabon or Alaska, and it is now and during producbon. m addition, Aoccc proposes. to add to zo AAc all said time was printed in an 25.110(n) the opportunity for variances and waivers. office maintained at the aforesaid written comments on the proposed regulation l place of publication of said e submitted to AOGCC at 333 compliance, may b rieWS a er. That the annexed is I1 p West 7th Ave., Suite 100, Anchorage, AK 99501. The comments must be received by 5:00 p.m. on a copy of an advertisement as it october 9, 2009. was Ub1lShed iri re Ular issues p g written arxi/or oral comments may be submitted at hearing to be held on October t5, 2009, at 333 (arid riot In Supplemental fOTm~ a West 7th Ave., Suite 100, Anchorage, AK. The wdl be held from 9:00 a.m. to 11:00 a.m. and arin h of said newspaper on g e might be extended to accommodate those present be ore 9:30 a.m. who did not have an opportunity to comment. September 03, 2009 If, because of a disability, a. special accommodation is needed to participate mppthis process, please s e t AVet, Suite West 7th 3 12215 333 hat 90m79 bi Col and that such newspaper was e om 100, Anchorage, AK 99501; or jody.cotomble~alaska.gov. Ms. Colombte must be regularly distributed t0 its contacted by October 6, 2009, at 5:00 p.m. to that necessary accommodations can be n s e subscribers during all of said o ~d ed p period. That the full amount of The proposed regulation changes are available at the fee char ell for the fore oin g g g www.aogec.alaska.gov or by contacting Ms. Colombie at the one number, physical address, or ddress move il publication is not in excess of . a e-ma the rate charged pr1V 1rid1V1dUalS. After the public comment period ends, AOGCC.will adopt, without notice, these or other provisions dealing with the samege subjects or decide to take no ns may be diffee en~pYOU SHOfULD ti reg l Signed o u a COMMENT DURING THE TIME ALLOWED IF YOUR INTERES75 COULD BE AFFECTED. Written comments are subject to public inspection. Subscribed rid swo t ore StatutoryAuthorlty: AS 31.05.030; AS 31.05.040; AS 31.05.095 Statutes Ileing Implemented, Intecpretell, or Made 040; AS 31.05.095 05 AS 31 030 05 me th15 ay O . . ; . Speciflc: AS 31. Fiscal Information: The proposed regulation are not expected to require an increased 20 0 ~ changes appropriation. DATE: September 1, 2009 Daniel T. Seamoun Chair otary Public in and tOI' 'ADDITIONAL REG~ 4062$1N~Otl)~E INFORAAATION The State of Alaska. Third Division t~~~«<~«<<//// Alaska Anchorage 1.Adopting agency: Alaska Oil and Gas ConservationCOmmisston. ~' a~ , MY COMMIS ION EX RES ~~~ $: ~~I~j dsuspeendedw~ellsnnulardisposalof ' e do nBwl ~ ` ~ ~ ~ ~•• ~ n t as ' . ~ i SAR • ~! . ~0 Y ~ ~. 3. Citation of regulations:. 20 AAC 25.080 and 20 V : ~~~ ; i AAC 25.110(n). ~~ ~ S~ ~ ^ 4. Reason fPr the propOSed action: update the annular din osa( of drilling waste regulations and the t i •~ / . ~. . ~ / •.~ r ' Q ~ ~ - o vers add opportunities for variances and wa suspended wells regulations. / '~ OF ~~•'~f ~'~ ,~1 5. Program category and BRU affected: Alaska Oil n i i . o ss and Gas.Conservabon Comm ~~ 6. Cost of Implementation to the state agency: zero. 7.The name of the contact person for the regulatiohs: Name: Darnel 7. Seambunt, Jr. Title: Chair Address: 333 W. 7th Avenue, Suite 100, Anchorage, AK 99501 Telephone: (907) 793-1221 E-mall: Jody.colotnble~alaska.gov 8. The origin of the proposed action: agency stijff. 9. Date: September 1, 2009. 10. P~ 1r Co ombfe Alaska OIl and Gas Conservation Commission (907)793-1221 AO-03014009 Published: September 3, 2009 STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) AFFIDAVIT OF ORAL HEARING I, Jody J. Colombie, Special Assistant to the Alaska Oil and Gas Conservation Commission, being sworn, state the following: On October 15, 2009, at 9:00 a.m., at 333 West 7th Avenue, Suite 100, Anchorage, Alaska, a public hearing presided over by Acting Chair John K. Norman, Commissioner, was held in accordance with AS 44.62.210 for the purpose of receiving testimony regarding changes to 20 AAC 25.110(n), dealing with suspended well regulations. DATE: Februarv 24, 2010 Anchorage ~~ J y J. to ie Special Assistant to the Commission ~~ SUBSCRIBED AND SWORN TO before me this ~ day of February, 2010. ,,,~tt~t~,,,,, `~„ ~.•... ~~~r +pTA~Rr~ .. ... .. ~ . r ~.. ~ ~. ~. .~ • ~.. y • ~ ~ •~~ :~• ~~ I ~ .- ~~ r'~~~~~~~l~rr~ t~~~~~`` C ~ ~. . Notary Public in and or the State of Alaska ~ ,' c_¢, My commission expires: tiJ - `~' STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) AFFIDAVIT OF COMMISSION ACTION I, Jody J. Colombie, Special Assistant to the Alaska Oil and Gas Conservation Commission, being sworn, state the following: The attached motion, dealing with suspended well changes, was passed by the Alaska Oil and Gas Conservation Commission during its October 28, 2009 meeting. Date: January 28, 2010 Anchorage od J. C e Special Assistant to the Commission SUBSCRIBED AND SWORN TO before me this 28th day of January 2010. ~~~~~~ otary Public in and for e State of Alaska My commission expires: 11/11/2010 ALASKA OIL AND GAS CONSERVATION COMMISSION MEETING October 28, 2009 approved Minutes Commissioner John K. Norman moved and Commissioner Cathy P. Foerster seconded the following motion: "I move to adopt the attached draft amendment to 20 AAC 25.110(n)." The motion carried unanimously. STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) AFFIDAVIT OF NOTICE OF PROPOSED ADOPTION OF REGULATIONS AND FURNISHING OF ADDITIONAL INFORMATION I, Jody J. Colombie, Special Assistant to the Alaska Oil and Gas Conservation Commission, being sworn, state the following: As required by AS 44.62.190, notice of the proposed adoption of changes to 20 AAC 25.110(n), dealing with suspended wells, was given by being (1) published in a newspaper or trade publication; (2) furnished to interested persons as shown on the attached list; (3) furnished to appropriate state officials; (4) furnished to the Department of Law, along with a copy of the proposed regulations; (5) electronically transmitted to incumbent State of Alaska legislators; (6) furnished to the Legislative Affairs Agency, Legislative Library; (7) posted on the Alaska Online Public Notice System, as required by AS 44.62.175(a)(1)and (b) and AS 44.62.190(a)(1); (8) furnished electronically, along with a copy of the proposed regulations, to the Legislative Affairs Agency, the chairs of the Senate Resources Committee and House Special Committee of Oil and Gas, the Administrative Regulation Review Committee, and the Legislative Council. As required by AS 44.62.190(d), additional regulations notice information regarding the proposed adoption of the regulation changes described above was furnished to interested persons as shown on the attached list and those in (5) and (6) of the list above. The additional regulations notice information was posted on the Alaska Online Public Notice System. DATE: January 28, 2010 Anchorage J J. Co mbi Special Assistant to the Commission SUBSCRIBED AND SWORN TO before me is 28th day of Januar 2010. ~ - ~~ ota Public in and for e State of Alaska My commission expires: 11/11/2010 Colombie, Jody J (DOA) Page 1 of 1 From: Colombie, Jody J (DOA) Sent: Thursday, September 03, 2009 4:36 PM To: 'Legislative Affairs Agency'; McGuire, Lesit L (LAA); Wielechowski, Bill (LAA); Huggins, Charlie (LAA); Johnson, Craig W (LAA); Neuman, Mark A (LAA); Keller, Wes (LAA); Donny Olson; Bettye J Davis; John Harris Subject: Public Notice, Additional Information and Proposed Regulations -Annular Disposal and Suspended Wells Attachments: Public Notice, Additional Regulations, Amended Regulations 9-1-09.pdf The Alaska Oil and Gas Conservation Commission (AOGCC) proposes to adopt regulation changes to Title 20 of the Alaska Administrative Code, dealing with the annular disposal of drilling waste (20 AAC 25.080) and suspended wells (20 AAC 25.110). On May 22, 2009, AOGCC published a notice of proposed changes to 20 AAC 25.080; because of substantive changes to the proposed changes, AOGCC is re-noticing them, fully revising (i. e., repealing and readopting) 20 AAC 25.080 as follows: 1. modify the aquifer exemption for the disposal of drilling waste to require that the operator apply for and the U.S. EPA grant the exemption; 2. modify the information that must be submitted with an annular disposal application; 3. modify the limitations and conditions applicable to annular disposal; 4. add a provision for requesting variances and waivers; and 5. delete subsection (i) to recognize AOGCC's authority to regulate annular disposal in water wells associated with oil or gas exploration or production. In addition, AOGCC proposes to add to 20 AAC 25.110(n) the opportunity for variances and waivers. Jody J. Colombie Special Assistant Alusku Oil and Gas Conservation Cornrttission 333 West 7th Avenue, .Suite 100 Anchorage, AK 99501 (907)793-1221 (phone) (907)2'1-7542 (fax) 9/3/2009 SERVICE LIST FOR PROPOSED AMENDMENTS TO 20 AAC 25.080 On September 1, 2009, I mailed to the following individuals the public notice of proposed amendments to 20 AAC 25.080 and 20 AAC 25.100, additional regulations notice information, and proposed regulations: Annette Kreitzer Commissioner Department of Administration PO Box 110200 Juneau, AK 99811 Legislative Legal and Research Services Legislative Affairs Agency State Capitol Juneau, AK 99801 Mail Stop: 3101 Senator Lesil McGuire, Co-Chair Senate Resources Committee 716 W. 4th Ave. Suite 430 Anchorage AK, 99501-2133 Senator Bill Wielechowski, Co-Chair Senate Resources Committee 716 W 4th Ave # 540 Anchorage, AK 99501 Senator Charlie Huggins, Vice-Chair Senate Resources Committee 600 E. Railroad Avenue Wasilla AK, 99654 Representative Craig Johnson, Co-Chair House Resources Committee 716 W. 4th Ave. Suite 640 Anchorage AK, 99501-2133 Representative Mark Neuman, Co-Chair House Resources Committee 600 E. Railroad Avenue Wasilla AK, 99654 Representative Wes Keller, Chair Administrative Regulation Review 600 E. Railroad Avenue Wasilla AK, 99654 LJ Senator Donald Olson, Vice-Chair Administrative Regulation Review 716 W. 4th Ave. Suite 560 Anchorage AK, 99501-2133 Senator Bettye Davis, Vice-Chair Legislative Council 716 W. 4th Ave. Suite 400 Anchorage AK, 99501-2133 Representative John Harris, Chair Legislative Council 716 W. 4th Ave. Suite 600 Anchorage AK, 99501-2133 On September 1, 2009, I mailed to the following individual the public notice of proposed amendments to 20 AAC 25.080 and 20 AAC 25.100, additional regulations notice information, and proposed regulations: Debra Behr Chief Assistant Attorney General Legislation and Regulations Section Department of Law PO Box 110300 Juneau, AK 99811 2 Maly Jones David McCaleb Cindi Walker XTO Energy, Inc. IHS Energy Group Tesoro Refining and Marketing Co. Cartography GEPS Supply & Distribution 810 Houston Street, Ste 2000 5333 Westheimer, Ste 100 300 Concord Plaza Drive Ft. Worth, TX 76102-6298 Houston, TX 77056 San Antonio, TX 78216 George Vaught, Jr. Jerry Hodgden Richard Neahring PO Box 13557 Hodgden Oil Company NRG Associates Denver, CO 80201-3557 408 18th Street President n 80401-2433 Golde , CO PO Box 1655 Colorado Springs, CO 80901 Mark Wedman Schlumberger Ciri Halliburton Drilling and Measurements Land Department 6900 Arctic Blvd. 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99502 Anchorage, AK 99503 Anchorage, AK 99503 Baker Oil Tools Ivan Gillian Jill Schneider 4730 Business Park Blvd., #44 9649 Musket Bell Cr.#5 US Geological Survey Anchorage, AK 99503 Anchorage, AK 99507 4200 University Dr. Anchorage, AK 99508 Gordon Severson Jack Hakkila Darwin Waldsmith 3201 Westmar Cr. PO Box 190083 PO Box 39309 Anchorage, AK 99508-4336 Anchorage, AK 99519 Ninilchick, AK 99639 James Gibbs Kenai National Wildlife Refuge Penny Vadla PO Box 1597 Refuge Manager 399 West Riverview Avenue Soldotna, AK 99669 PO Box 2139 Soldotna, AK 99669-7714 Soldotna, AK 99669-2139 Richard Wagner Cliff Burglin Bernie Karl PO Box 60868 PO Box 70131 K&K Recycling Inc. Fairbanks, AK 99706 Fairbanks, AK 99707 PO Box 58055 Fairbanks, AK 99711 North Slope Borough PO Box 69 Barrow, AK 99723 I ~d -~ a Page 1 of 2 • Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Tuesday, September 01, 2009 1:53 PM Subject: Public Notice, Additional Information and Proposed Regulations -Annular Disposal and Suspended Wells Attachments: Public Notice, Additional Regulations, Amended Regulations 9-1-09.pdf BCC:Ballantine, Tab A (LAW); 'Tohan.Ankur@epamail.epa.gov'; 'Aaron Gluzman'; caunderwood@marathonoil.com; 'Dale Hoffman'; Fridiric Grenier; 'Gary Orr'; Jerome Eggemeyer; 'Joe Longo'; 'Lamont Frazer'; Marc Kuck; 'Mary Aschoff; Maurizio Grandi; P Bates; Richard Garrard; 'Sandra Lemke'; 'Scott Nash'; 'Steve Virant'; 'Wayne Wooster'; 'Willem Vollenbrock'; 'William Van Dyke'; Woolf, Wendy C (DNR); 'Anna Raff; 'Barbara F Fullmer'; 'bbritch'; 'Bill Walker'; 'Brad McKim'; 'Brandon Gagnon'; 'Brian Gillespie'; 'Brian Havelock'; 'Brit Lively'; 'Bruce Webb'; 'buonoje'; 'Cammy Taylor'; 'Cande.Brandow'; 'carol smyth'; 'Charles O'Donnell'; Chris Gay; 'Cliff Posey'; 'Dan Bross'; 'dapa'; 'Daryl J. Kleppin'; 'David Brown'; 'David Gorney'; David House; 'David L Boelens'; 'David Steingreaber'; 'ddonkel'; Deborah Jones; Decker, Paul L (DNR); 'doug_schultze'; 'Eric Lidji '; 'Evan Harness'; 'eyancy'; 'foms2@mtaonline.net'; 'Francis S. Sommer'; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin'; 'Gary Rogers'; 'Gary Schultz'; 'ghammons'; 'Gordon Pospisil'; 'Gregg Nady'; 'gspfoff; 'Hank Alford'; 'Harry Engel'; 'jah'; 'Janet D. Platt'; 'jejones'; 'Jerry Brady'; 'Jerry McCutcheon'; 'Jim Arlington'; 'Jim White'; 'Jim Winegarner'; 'Joe Nicks'; 'John Garing'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'John W Katz'; 'Jon Goltz'; Joseph Darrigo; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; knelson@petroleumnews.com; 'Krissell Crandall'; 'Kristin Elowe'; 'Laura Silliphant'; 'mail=akpratts@acsalaska.net'; 'mail=fours@mtaonline.net'; 'Marilyn Crockett'; 'Mark Dalton'; 'Mark Hanley'; 'Mark Kovac'; 'Mark P. Worcester'; 'Marguerite kremer'; Melanie Brown; 'Michael Nelson'; 'Mike Bill'; 'Mike Jacobs'; 'Mike Mason'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mkm7200'; 'Nick W. Glover'; NSK Problem Well Supv; NSU, ADW Well Integrity Engineer; 'Patty Alfaro'; 'Paul Winslow'; Rader, Matthew W (DNR); Raj Nanvaan; 'Randall Kanady'; 'Randy L. Skillern'; 'Rob McWhorter '; rob.g.dragnich@exxonmobil.com; 'Robert Campbell'; 'Robert Province'; 'Rudy Brueggeman'; 'Sandra Pierce'; 'Scott Cranswick'; 'Shannon Donnelly'; 'Sharmaine Copeland'; Shellenbaum, Diane P (DNR); Slemons, Jonne; 'Sondra Stewman'; 'Sonja Frankllin'; 'Stan Porhola'; 'stanekj'; 'Steve Lambert'; 'Steve Moothart'; 'Steven R. Rossberg'; 'tablerk'; 'Tamera Sheffield'; 'Temple Davidson'; Teresa Imm; 'Terrie Hubble'; Thompson, Nan G (DNR); 'Tim Lawlor'; 'Todd Durkee'; Tony Hopfinger; 'trmjrl'; 'Walter Featherly'; Walter Quay; Aubert, Winton G (DOA); Birnbaum, Alan J (LAW); Crisp, John H (DOA); Darlene Ramirez; Davies, Stephen F (DOA); Fleckenstein, Robert J (DOA); Foerster, Catherine P (DOA); Grimaldi, Louis R (DOA); Johnson, Elaine M (DOA); Jones, Jeffery B (DOA); Laasch, Linda K (DOA); Mahnken, Christine R (DOA); Maunder, Thomas E (DOA); McIver, Bren (DOA); McMains, Stephen E (DOA); Noble, Robert C (DOA); Norman, John K (DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Saltmarsh, Arthur C (DOA); Scheve, Charles M (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); Austerman, Alan; Buch, Bob (LAA); Bunde, Con (LAA); Cathy Munoz (Representative Cathy_Engstrom_Munoz@legis.state.ak.us); Chenault, Mike (LAA); Cissna, Sharon (LAA); Coghill, John (LAA); Crawford, Harry (LAA); Dahlstrom, Nancy (LAA); Davis, Bettye J (LAA); Doogan, Mike (LAA); Dyson, Fred (LAA); Edgmon, Bryce E (LAA); Egan, Dennis W (LAA); Ellis, Johnny (LAA); Fairclough, Anna (LAA); 'Foster, Richard'; French, Hollis (LAA); Gara, Les (LAA); Gardner, Berta (LAA); Gatto, Carl (LAA); Gruenberg, Max F (LAA); Guttenberg, David (LAA); Harris, John (LAA); Hawker, Mike (LAA); Herron, Bob; Hoffman, Lyman F (LAA); Holmes, Lindsey (LAA); Huggins, Charlie (LAA); Johansen, Kyle B (LAA); Johnson, Craig W (LAA); Joule, Reggie (LAA); Kawasaki, Scott Jw (LAA); Keller, Wes (LAA); Kelly, Mike (LAA); Kerttula, Beth (LAA); kevin meyer; Kookesh, Albert (LAA); Lynn, Bob (LAA); McGuire, Lesil L (LAA); Menard, Linda K; Millett, Charisse; Neuman, Mark A (LAA); Olson, Donny (LAA); Olson, Kurt E (LAA); Paskvan, Joe; Petersen, Pete; Ramras, Jay B (LAA); Salmon, Woodie W (LAA); Seaton, Paul (LAA); Stedman, Bert K (LAA); Stevens, Gary L (LAA); Stoltze, Bill (LAA); Therriault, Gene (LAA); Thomas, Bill (LAA); Thomas, Joe (LAA); Tuck, Chris; Wagoner, Tom (LAA); Wielechowski, Bill (LAA); Wilson, Peggy A (LAA) 9/2/2009 • Page 2 of 2 Attachments:Public Notice, Additional Regulations, Amended Regulations 9-1-09.pdf; The Alaska Oil and Gas Conservation Commission (AOGCC) proposes to adopt regulation changes to Title 20 of the Alaska Administrative Code, dealing with the annular disposal of drilling waste (20 AAC 25.080) and suspended wells (20 AAC 25.110). On May 22, 2009, AOGCC published a notice of proposed changes to 20 AAC 25.080; because of substantive changes to the proposed changes, AOGCC is re-noticing them, fully revising (i. e., repealing and readopting) 20 AAC 25.080 as follows: 1. modify the aquifer exemption for the disposal of drilling waste to require that the operator apply for and the U.S. EPA grant the exemption; 2. modify the information that must be submitted with an annular disposal application; 3. modify the limitations and conditions applicable to annular disposal; 4. add a provision for requesting variances and waivers; and 5. delete subsection (i) to recognize AOGCC's authority to regulate annular disposal in water wells associated with oil or gas exploration or production. In addition, AOGCC proposes to add to 20 AAC 25.110(n) the opportunity for variances and waivers. Jo~IY./. Colombie Special ,lssistant ilaska Oil and Gas Conse~walion Comn7ission 333 West 7lhAvenue, Suite 1(JO -tncho~•age, AK 9901 (907)793-1221 (phone) (907j27<>-75d2 (fax) 9/2/2009 3 DEC-04-2009 11:27 AM ~~..~ OCTODER 28, 2009 at 9:00 a.m. ~ Public Meeting ATTENDEES: Dan Seamount John Norman Cathy P`oerster Jody Colc~mkaie ~'racie Paladijczuk Winton Aubert Howard Okland Tab Sallantine Cara Moriarty Chair Commissioner Commissioner Special Assistant Administrative Officer Reservoir Engineer Petrcaleum Geologist Assistant Assistant Attorney General AOGA P.01 SEAMOUNT: z'd like to call this meeting to order. Today is Wednesday, October 28th, 2009, the time ie 9;05 a.m. This is the regular monthly public meeting being held .ar the of'ficeg of the Alaska oiI & Gas Conservation Commission at 333 West Seventh Avenue, Suite 100, Anchorage, Alaska. X am Dan Searnount., the Chair of the AOGCC. Ta my left is Commissioner Cathy Foerster and to my right is Commissioner. Jahn Norman. There is a quorum present for the conduct of legal business. We'll take a look at the agenda. The first item wil:1 ~-' he our normal approval of the agenda which includes approval o~ the September, 2009 minutes. And I don't believe we've looked at that yet, have we? COLOMHIE: Na, thexe.'s a new agenda, There was na pub~.ic meeting in September, S~ANlOLJNT: Okay, Looks like T've got an updated agenda here. Sorry about that. Okay. The second thing on the agenda is unfinished buei.ness, the third would be new business and that would include the monthly report, di.fir,ussion anti. vc~ti..rrg on the new regulation 20 AAC z5.110(n), discussion and adoption of a compensation policy for same of our exempt staff and finally opportunity for public comment. Corz~missiarier Normari moved for the approval of the agenda as stated, Commissioner Foerster seconded and the motion passed unanimously. OLD $"CJ'SIN~SS There is no unfinished business. •.,~,:.~ A.OGCC - 10 / 2 8 / 0 9 Page 1 DEC-04-2009 11:27 AM P.02 ~~,,,,,.~ _ NSW BUSINESS TRAM ACTIVITY' REPORT Mr. Oakland is the Commission's Petroleum Geologist Assistant and has been tasked with preparing the weekly and monthly reports. OAKLAND; Chairman Seamount and Commissioner ~'oerster attended the annual IOGCC meeting in Biloxi, Mississippi. Commissioner Norman attended a meeting of the Export Resources Council, Commissioner Foereter attended a meeting with the Division of coil & Gas concerning the dual agency ovex•sight of Naknek #1 geothermal well. Corttmissioner Normal continues to work on the Geologic; Mar_ex•z,als Center. Chairman Seamount attended a meeting of the Ultx•a Deep Water Advisory Committee. 'I'ri~y Con,n,~ssion met with SurLCOr :regarding Cook In1eC and Nortn Slope natural gas issues. ~ ~, Average oil production rates for September, 2p09 were 652,088 barrels per day, down 10,3 percent from August, 2009 and down ~ percent from September, 2008. In general the changes are due to planned maintenance. In response to a question from Commissioner Norman, Ms. Colomlaie will report on the retention schedule at thcs next meeting . Chairman Seamount commented an the IQGCC meeting, Governor Parnell gave a speech at the meeting, Two resolutions voted on at the business meeting would affect Alaska, one was a resolution in support of the North Slope gas pipeline and the other was in support of opening ANW~ to. drilling exploration. Commissioner Faerster attended a GWI~C meeting to plan whet to do about the DOE g~•ant far building a data k~aJe on hydraulic tz•c~cturing info.t:rnatian. I'he CO of Devon Energy was informed that he ha,s an orphaned well in Alaska. Devon Energy has no a.nterest in olaex~ating a well in Alaska. and h~~s committed to P&A AOGCC -,10/28/09 - Page 2 DEC-04-2009 11:28 AM P.03 `•~.:,. the well, This will save the State approximately X500,000. DTSCUSSIOYd A11A VOTE pN PROPOSE~7 CHANGES TO 20 AAC 25.11,0 (n} Commissioner Norman moved to approve the changes proposed to 20 AAC 25.110(n). Commissioner Foerster sc:-~on~~ecl. Commissioner Norman stated that the issue ha,e been dully vetted at the last hearing and that it is ripe .for appro~ral. Chairman Seamount called the question and th,e motion passed unanimously. DISC~7SSION OF COMPENSATION POLTCX PAT~AD~JCZI7K: Pay increments do n.ot apply to exempt employees unless the employing agency adopts a policy that provides for them which the Commission has not done, St is recommended that the Commission adopt a compensation policy that provides for pay increments far its exempt staff that are in Line with other Stage agencies, The pola.cy recommended for adoption by the Commission was implemented by the Department `--~'°~ of Adrniriistxation ~7anuaxy 1st, 2009 under 39.27,011 (h) and (i). Commissioner Norman moved for the adoption of this policy, Commissioner Foerster seconded and the motion passed unanimously, PUBLIC COMMENT SEAMpUNT: Are there any members of the public who wish to offer cottlments or testimony? No public comment, APpROV$17 BY CHAIR: (Meeting adjourned - 9:~5 a.m.) Dan Seamount, Chair ~.,~,,,.- A©GCC - 10 / 2 8/ 0 9 Page 3 ~2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 • ALASKA OIL AND GAS CONSERVATION COMMISSION Before Commissioners: Daniel T. Seamount, Chairman Cathy Foerster John K. Norman In the Matter of the Proposed ) Changes in the Regulations of ) the Alaska Oil & Gas Conservation Commission ) ALASKA OIL and GAS CONSERVATION COMMISSION Anchorage, Alaska October 15, 2009 9:00 o'clock a.m. VOLUME I PUBLIC HEARING BEFORE: John K. Norman, Acting Chairman Cathy Foerster, Commissioner R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ~_~ TABLE OF CONTENTS Opening remarks by Chairman Norman Testimony by Winton Aubert Testimony by Kara Moriarty Testimony by Harry Engel Testimony by Randal Buckendorf R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 03 06 11 11 18 ~- ! 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 P R O C E E D I N G S (On record - 9:00 a.m.) CHAIRMAN NORMAN: Good morning. I'll call this hearing to order. This is a hearing that's been convened to consider proposed amendments to the annular disposal of drilling waste and the suspended well regulations of the Alaska Oil and Gas Conservation Commission. This hearing is being held on the morning of October 15th, at the hour of 9:00 o'clock a.m. at the Thomas R. Marshall Hearing Room in the Commission's offices at 333 West Seventh Avenue, Anchorage, Alaska. To my left is Commissioner Cathy Foerster, I'm John Norman. A quorum is present and we will proceed with business before us. If there are any persons here who may have a need for a special accommodation in order to participate in these proceedings such as something to assist you in either hearing or seeing, please see the Commission's Special Assistant Jody Colombie, she's seated in the back of the room and we will do our best to accommodate you. R & R Court Reporting will be recording this proceeding. Upon completion and preparation of a transcript, any person desiring a copy will be able to obtain it by contacting R & R Court Reporting or alternatively you can contact the Commission's Special Assistant and she'll facilitate your getting a copy.. We've a few persons who've indicated an intention to R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 testify this morning and so I will remind all of you that when you do testify you'll need to come forward and speak into the microphones. There are two microphones, they're both affixed together. One is for purposes of amplification and the other is for purposes of facilitating the court reporter's work in creating a transcript. It is the Commission's practice to swear witnesses that do testify and we will follow that practice. Also if you intend to be testifying as an expert witness on a particular subject then we ask that you briefly explain your background and your experience so that we will be able to gauge whether you do fall into the category of an expert witness. The Alaska Oil & Gas Conservation Commission is proposing to amend Title 20, Chapter 25, Section 080 of the Administrative Code dealing with annular disposal of waste and also the section of the code dealing with suspended wells, that being 20 AAC 25.110. On May 22nd, 2009 the Commission first published a notice of proposed changes to Section 080. On September 1st of 2009 because of substantive changes and edits that were done to the proposed changes, the Commission renoticed the proposed regulations with the intention of revising -- fully revising which would be repealing and readopting Section 20 or correction, Title 20, 25.080 of the Alaska Administrative Code addressed later by staff R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 The specific changes will be In addition, the Commission as 4 ~- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 indicated proposed to amend 20 AAC 25.110, subsection (n) which deals with suspended wells so as to add an opportunity for applicants to obtain variances and waivers. The notice of this hearing has been duly published in the Anchorage Daily News. The file does contain an affidavit of publication, any persons desiring to see it can see the Commission's Special Assistant. Also notice of this hearing has been posted on the State of Alaska online notices website as well as on the AOGCC's own website. This hearing is -- will be conducted in accordance with the Commission's general hearing regulations and in accordance with the Alaska Administrative Procedures Act, Alaska Statute 44.62. We have a sign in sheet available. If any of you are here and you wish to testify and you haven't yet signed the sheet, see the Commission's Special Assistant who is seated in the rear of the room. I will ask now if Commissioner Foerster has any preliminary comments before we proceed? COMMISSIONER FOERSTER: No. Thanks for asking. CHAIRMAN NORMAN: Very well. We'll first take up the proposed amendment to the suspended well regulation. That's Section 110, Subsection (n) and we will have discussion on that and consider any comments. And then following that we will next take up the proposed amendment to the annular disposal R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 regulation. Dr. Aubert, I believe you will be presenting for the Commission, is that correct? Could you come forward then and for the record, please, state your name and your position here with the Commission. WINTON AUBERT called as a witness on behalf of the AOGCC, testified as follows on: DIRECT EXAMINATION DR. AUBERT: For the record I'm Winton Aubert, Senior Engineer on Commission Staff. CHAIRMAN NORMAN: You may go ahead and proceed with an explanation as to what has brought about the perceived need for this change. DR. AUBERT: Our first proposed change is to Regulation Section 110 as Commissioner Norman elucidated, entitled Suspended Wells. This proposed change will allow the Commission explicit flexibility to vary or waive the existing well suspension requirements. The explicit flexibility was we believe inadvertently removed from then existing regulations during a 2008 rewrite of Section 110. We believe that enacting this proposed change would impose no additional regulatory burden on industry. Does the panel have questions or further discussion? CHAIRMAN NORMAN: Commissioner Foerster? R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 6 1 2 3 4 5 6 7 8' 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COMMISSIONER FOERSTER: I have none. CHAIRMAN NORMAN: Very well. I think this appears to be a very straightforward change affecting only the very last subsection of the regulations. And as I understand your explanation it adds the opportunity for applicants to obtain waivers and variances under this particular subsection. I do not and have not seen in the file any specific comments or opposition to this. If there are any persons that filed particularly any opposition we would ask you to let us know since the record doesn't reflect any written comments on this. Very well. Thank you, Dr. Aubert. I'll ask now are there any other persons present who wish to testify on this proposed amendment to Section 110 of the regulations? Okay. For the record the Chair sees no one asking to be recognized and. accordingly we will take this then as submitted to the Commissioners and a decision will be forthcoming, probably at our next public meeting. We'll next turn to the subject of an amendment to Subsection 080. Commissioner Foerster, do you have any preliminary comments regarding this section? COMMISSIONER FOERSTER: I have comments, but I'll save them for later. CHAIRMAN NORMAN: Very well. Dr. Aubert, I believe you are also presenting on this section so, please, proceed. DR. AUBERT: Our proposed repeal and readoption of Section R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 080 entitled Annual Disposal of Drilling Waste, is upon the Commission's motion to clarify the language and improve the logical order of the existing regulation. Before the Commission is actually a renoticed proposal that we believe addresses the U.S. Environmental Protection Agency's concern that AOGCC regulations not conflict with federal law. Proposed changes to the existing Section 080 include explicit requirements for limiting the time duration of actual annular disposal to 90 days within a one year approval window, for a receiving well schematic, for plats of all disposal interval penetrations within the one quarter mile area of review around the receiving well, for lists of well operators and surface owners within the quarter mile area review, for a shallow seismic data interpretation, for proposed waste slurry density, for results of a fluid infectivity test, for a salinity determination of all waters penetrated by the receiving wellbore, for continuous monitoring of physical injection parameters, for unusual incident report filing within 10 working days, and for modified filing timing for the report of annular disposal. Further proposed changes to the existing Section 080 are inclusion of explicit flexibility for Commission approved variances and waivers and for waste injection into freshwater the requirement of a U.S. EPA aquifer exemption. Finally we propose recognizing the Commission's authority R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 to regulate annular disposal in water wells associated with oil or gas exploration and production, such as water source wells. This water well oversight was excluded from Commission responsibility in the 1999 regulations. With respect to aspects of our proposed regulation changes falling under Commission oversight, we expect a relatively minor change in regulatory burden will result. We're not prepared to comment at this time on the regulatory burden effect of our proposed EPA oversight provision. Does the panel have questions or discussion. CHAIRMAN NORMAN: Commissioner Foerster. COMMISSIONER FOERSTER: I don't have any questions and I'm going to hold my comments for later. CHAIRMAN NORMAN: I think the changes that have been set forth, noticed and then as indicated renoticed, they are understood. Some of this -- the renoticing is in reaction to correspondence and comments received from the EPA, federal EPA. I think, Dr. Aubert, at this point if you would remain available I think we'll now go to public comment. Are there members of the public -- I should indicate for the record that we have received written comments from both the Alaska Oil and Gas Association and ConocoPhillips Alaska, Inc., concerning the proposed amendment to the annular disposal drilling waste regulations. Those comments have been reviewed by the Commissioners and you may -- so it won't be necessary R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 for you to formally introduce those as they're already in the record. Are there any persons now who wish to offer testimony or comments? MS. MORIARTY: We'll be a team. CHAIRMAN NORMAN: Pardon. MS. MORIARTY: We're a team. CHAIRMAN NORMAN: Okay. Why don't you -- why don't -- let's have the team come forward. MS. MORIARTY: Good morning. For the record my name is Kara Moriarty and I serve as the Deputy Director of the Alaska Oil and Gas Association. And on behalf of AOGA and our AOGCC Task Group we appreciate the ability to provide written comment as well as testify today on the proposed regulations as Commissioner Norman stated, 20 AAC 25.080. CHAIRMAN NORMAN: Ms. Moriarty, without interrupting you I think what we'll do is swear you both just..... MS. MORIARTY: Okay. CHAIRMAN NORMAN: .....to get that done. If you'd both raise your right hands. (Oath administered) MS. MORIARTY: Yes. MR. ENGEL: Yes, I do. CHAIRMAN NORMAN: Thank you. Now please proceed, Ms. Moriarty. KARA MORIARTY R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/fax 274-8982 ANCHORAGE, ALASKA 99501 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 called as a witness on behalf of AOGA, testified as follows on: DIRECT EXAMINATION MS. MORIARTY: I will be here in the capacity as AOGA staff to introduce our comments that you have received last week as well as introduce Harry Engel, our Chair of our AOGCC task group. With us in the room we also have Randal Buckendorf from BP. He has been with AOGA in various capacities on several of our committees to provide legal input and guidance. And so for the legal aspects we also have Randal in the room. As you know AOGA represents 15 members that account for the majority of our -- of all the oil and gas exploration, development, marketing, refining and transportation activities in the state. We often get this question so I'll answer it before we get the question, we had several of our member companies participate in the compilation of these comments, both from Cook Inlet and the North Slope. We have a couple representatives in the room today, but we did have active participation from Marathon and Chevron and they were unable to join us today. But I just wanted to let you know we got their input from a Cook Inlet perspective as well. So with that I will turn it over to Harry to give the more technical background and share our comments. HARRY ENGEL called as a witness on behalf of AOGA, testified as follows on: DIRECT EXAMINATION R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 11 1 2 3 4 I 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. ENGEL: Good morning, Commissioner Norman, Commissioner Foerster. Good to see you again. CHAIRMAN NORMAN: Nice to see you, Mr. Engel. MR. ENGEL: My name is Harry Engel for the record. My day job is engineering team leader with BP in our Alaska drilling and wells organization. This morning I'm representing AOGA as the chairman of the AOGCC Task Group. Would you like to go through my experience, Commissioner Norman? CHAIRMAN NORMAN: Please. MR. ENGEL: Okay. CHAIRMAN NORMAN: Just for the record briefly. You're well known to the Commission, but for this record in this particular hearing we do -- would like to have your background in the record. MR. ENGEL: Yes. I have 29 years of experience, oil and gas experience, with a variety of different roles I've had, including drilling engineering, well site leader roles and some other health and safety management positions within the oil and gas industry. I have worked in most areas in Alaska, also in the Western U.S. and I've had some .temporary assignments in -- some foreign assignments in China and Indonesia. And I also have two undergraduate engineering degrees. CHAIRMAN NORMAN: Very well. And I think you have previously been qualified by the Commission a number of times. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Commissioner Foerster, do you find the witness acceptable? COMMISSIONER FOERSTER: Technically. CHAIRMAN NORMAN: Please proceed, Mr. Engel. MR. ENGEL: Very good. Before I being with the -- my comments around the annular disposal, I would like to just make a comment that we do support the language that the Commission included in Section 20 AAC 25.110 regarding suspended well regulations allowing for a variance if warranted and necessary. We do think that's a good addition to the regulations. I would also like to make a comment regarding how much we appreciate the support we have from your staff here, helping understand the background and the rationale behind the regulations regarding annular disposal. It was very helpful for us to get that background to help us prepare for our comment that we submitted last week. So I do appreciate that. One thing I wanted to note for the record, as Kara mentioned, we submitted comments last week in a letter dated October 9th. And in that we have two attachments. There's one here I want to note on the October 9th letter at the bottom we mentioned EPA letters dated 1980 and 1987. That should read 1988 and 1987. So please note that for the record. Regarding the proposed regulation, there's one area that we'd like to comment on and that is regards to the modification of the aquifer exemptions for disposal of drilling waste. This new requirement is found in Section 25.080 (d) as in delta. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 AOGA committee members believe that this part of the regulation is inconsistent with the documents we attached to our letter dated October 9, that being the memorandum of agreement between the EPA and the AOGCC dated 1991 and also the EPA letters starting with one dated January 8, 1988. Based on information provided in those two documents, AOGA members recommend that that section of the regulation -- we recommend that the Commission consider deleting that proposed regulation, Section (d) in 080. And we have three main reasons why we request the Commission consider deleting that part of the regulation. And the first one is that we believe that the -- as stated in the documents before, that these activities are not regulated under UIC regulations by the EPA. And the second reason is that we believe that timing delays in obtaining an aquifer exemption from the EPA could severely impact an operator who plans to work and seek this kind of approval from the EPA. The third point is regarding the implications that could be imposed for exploration activities that take place especially in remote areas of Alaska such as the Alaska Petroleum Reserve and Foothills Region of the North Slope, also in the Cook Inlet. Unlike many parts of the country these drilling areas, proposed prospects, are remote, isolated areas with no infrastructure, roads or permanent facilities. Without having an aquifer exemption in place in a timely manner for these regions, proposed exploration activities could be R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/fax 274-8982 ANCHORAGE, ALASKA 99501 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 impacted, delayed and subject to unnecessary cost associated with waiting for EPA approval for disposal of drilling waste in this area. So basically that's our comment today is around the addition of the changes regarding the requiring an operator to go through EPA to get an aquifer exemption. We feel that the current system as identified in the MOA dated 1991 has been working very well for us and we don't understand the background and the reason for changing that current MOA or just even being changed. So that would help us understand the change to the regulation if the Commission would like to maybe give us some background on that change that we're seeing today with the proposed regulations. CHAIRMAN NORMAN: Certainly. Your -- just a follow-up question though. Your only objection right now is to that particular provision? MR. ENGEL: That's correct. CHAIRMAN NORMAN: And secondly you're not knowledgeable of the comments by EPA related to this particular section? MR. ENGEL: We understood there was some comments from EPA, but we weren't -- the details around those comments in relationship to the current MOA, the new regulations, were not clear to us. CHAIRMAN NORMAN: Okay. And then finally at this point you believe that this doesn't fall under the UIC program, that R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 15 1 2 3'I 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 enacted -- your second point was that if enacted it will cause significant timing delays and thirdly it will create problems for operations in remote areas..... MR. ENGEL: That's correct. CHAIRMAN NORMAN: .....of Alaska. Okay. MR. ENGEL: That's correct. And, Commissioner Norman, those comments are based upon the current MOA and the EPA documents that have articulated that view for over 20 years. CHAIRMAN NORMAN: Commissioner Foerster? COMMISSIONER FOERSTER: Now's as good as anytime to make my comment. The Commission -- and I had to write it down so I wouldn't deviate from it. The Commission appreciates that this change could prove cumbersome and thus hamper exploration and development of Alaska's hydrocarbon resources. And as much as I'd like to say more, for a change I will take the advice of my mother who said if you can't say something nice don't say anything at all. Thus I will bite my tongue and say no more. All right. That was my little bit of drama. MS. MORIARTY: Commissioner Norman, if you don't mind I believe Mr. Buckendorf would like to add a few more comments on to that section..... CHAIRMAN NORMAN: Please. MS. MORIARTY: .....if we don't mind. COMMISSIONER FOERSTER: And somewhere in this process is R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 16 1 2 3 4 5 6 7 8 9 10 11 12 ~ 13 14 15 16 17 18 19 20 21 22 23 24 25 there anyone from the EPA in this room? MR. MAYERS: I am. COMMISSIONER FOERSTER: I think it would be very meaningful to address the questions that BP has asked of the EPA if you're willing and able to address those questions because..... MR. MAYERS: Well, I am here strictly as an observer, I'm not qualified to comment on those. COMMISSIONER FOERSTER: Okay. But did you take the questions down, do you remember what the questions are because I think it would be at a minimum courteous..... MR. MAYERS: Yes. COMMISSIONER FOERSTER: .....to provide a response to those questions. MR. MAYERS: Absolutely I did. COMMISSIONER FOERSTER: Thank you. MR. MAYERS: Welcome. CHAIRMAN NORMAN: Just so we keep the record clear, the exchange that occurred just now between Commissioner Foerster and the representative of EPA, you are Mr. Tim Mayers, is that correct, sir? MR. MAYERS: Yes, sir. CHAIRMAN NORMAN: Okay. M-a-y-e-r-s of the EPA. And would you mind just stating -- I understand that you're here as an observer and not to testify, but what is your position? R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. MAYERS: My position is environmental scientist at the EPA here in Anchorage. And I've also initiated some UIC inspections shadowing our UIC expert in Seattle. CHAIRMAN NORMAN: Very well. Thank you. Mr. Buckendorf, you also are well known to the Commission, but if you would just briefly state your position? RANDAL BUCKENDORF called as a witness on behalf of AOGA, testified as follows on: DIRECT EXAMINATION MR. BUCKENDORF: Commissioners, my name is Randal Buckendorf, I'm an attorney with BP in Alaska and I've been licensed to practice law in this state for nearly 16 years now. I've worked in the oil and gas industry since 1997 when I began my position as the environmental attorney with ARCO and have now provided legal advice to ARCO, Phillips, ConocoPhillips and BP on every field on the North Slope of Alaska. As Kara mentioned, I've also largely by default been the ad hoc chairman of the legal subcommittee for most of those 12 years. We -- with respect to these particular regulations I have been providing legal advice to all of the companies I mentioned that entire time frame on the regulation of underground injection of waste under the Safe Drinking Water Act, under the Resource Conservation Act, both at the federal level and with the Commission's regulations. I also spent two years working R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 18 • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 with the Commission from -- in 1998 and 1999 with many members that are in this room on the negotiation or renegotiation of the memorandum of agreement. We were trying to update that at that time frame. That stalled and it's still in effect from the original date. We understand from conversations with the Commission that Subsection (d), drilling waste may not be disposed of into any freshwater unless the operator applies for and the United States Environmental Protection Agency grants an aquifer exemption resulted from comments of some nature from EPA. We looked for written comments, could not find them. My understanding is that written comments were not provided. I think Mr. Aubert just confirmed that. It is hard for us to address concerns in the nature of verbal comments we're not aware of those comments. Had written comments been provided by EPA we would be better able to actually look at and respond to those comments. I just state that for the record, we cannot reply to comments that are unknown to us. So the comments we provided basically and I have many other binders of similar guidance documents and comments, the regulation of oil and gas drilling materials from 1984 to 1988 was in flux. Congress in enacting the Resource Conservation Recovery Act asked, basically demanded that EPA develop and analyze an extensive document, and this is volume one of five of that document, on a report to Congress on the management of R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 19 • 1 2 3 4 51 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 waste from exploration, development and production of oil and gas and geothermal which was a subset of that. That review took many years and it was probably the most critical review for the oil and gas industry that was going on at that particular time frame. Because the single most important issue being addressed at the time was whether oil and gas waste, drilling waste,, drilling muds, were exempt from Subtitle C of the Resource Conservation Recovery Act as a solid waste or as a hazardous waste. It was -- it probably was then and still is now the most critical analysis to the oil and gas industry in the history of U.S. EPA oversight of our industry. That -- this document in 1987 also accompanied a review and dialogue that had been going on for many years between the North Slope or Alaska oil and gas operators, the Commission and EPA on basically that same issue, the regulation of drilling waste with respect to underground injection and solid and hazardous waste. What we provided is an example and a clarification of the fact that in its reports to Congress EPA clarified that -- confirmed which waste under RCRA were exempt and which were nonexempt. It confirmed that drilling fluids, produced waters and other waste intrinsically associated with, and that's important, with the exploration, development or production of crude oil or natural gas was -- those are exempt under RCRA Subtitle (c) . R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 That is also critical when looking at the Safe Drinking Water Act. The Safe Drinking Water Act regulates the underground. injection of wastes. The discussions that were ongoing in 1987 and 1988 between the industry, the Commission and EPA was whether or not the annular injection of drilling muds and cuttings into the annulus of a well was regulated under either RCRA or the Safe Drinking Water Act. It was important because we were trying to get away from the putting in place reserve pits and that's been hugely effective and we were confirming that we did not need to seek Class II injection wells authorizations basically for the very drilling of a well if we were going to pump mud and cuttings back down the annulus of the well. And EPA -- the issue in the state of Alaska was being worked in some of the letters we've provided, was largely led by an ARCO attorney by the name of Bill Christen (ph), William T. Christen. I'm sure Commissioner Foerster and Commissioner Norman remember him. He came to ARCO from EPA and he led the effort and he was adamant, he had worked on this document, that the regulation or that there was no regulation under either the Safe Drinking Water Act or RCRA of annular injection. And that's what EPA agreed. And the front cover letter of this is -- and I will read it for the record. As you know, there's been a need for clarification as to whether annular injection of drilling muds is covered under the R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 21 1 2 3 4' 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19' 20 21 22 23 24 25 underground injection control UIC program and that's of the Safe Drinking Water Act. Since the issue has national implications we contacted headquarters for guidance. Basically the guidance states that annular injection of drill muds into an annulus from one or more wells, either at once or over a period of time is not covered by the UIC program. This guidance reenforces the Alaska Oil and Gas Conservation Commission position on the subject. Almost immediately after this 1988 opinion and confirmation from EPA that, in fact, yes, the injection -- the regulation of annular pumping which was the term used at that time, was not regulated under the Safe Drinking Water Act, immediately the 1986 MOA between AOGCC and EPA was amended, it added a new paragraph in. It was the only addendum -- it was the only addition at that time in 1988. Basically what became paragraph 10 of the current MOA, that the annular injection or annular pumping of -- it's now paragraph 12 in the current, the pumping away of drilling muds and precipitation from reserve pits into an exploration or stratigraphic test well into the annulus as approved in accordance with Commission's regulation, is an operation incidental to the drilling of a well and is not a disposal operation subject to regulation as a Class II well. That's been the case for 21 years now. And what the industry has long believed those 21 years is that EPA determined then that the annular injection of drilling R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 muds and cuttings was not a regulated activity under the Safe Drinking Water Act. Basically if it's not a regulated activity then any activities associated with that don't fall under EPA authorizations for the Safe Drinking Water Act, the statute, the regulations that exist that with it or, you know, any of their authorizations and that has been the case for 21 years now. We don't understand EPA's concern over that, we weren't able to, you know, look at any comments on that to be able to address that. If the agency is now rethinking whether the injection of annular muds and cuttings is now subject to Safe Drinking Water Act authority or their regulations, we -- we're interested in that not just in Alaska, but, you know, the entire country. I also have one other issue with Subsection (d) here and that is essentially a delegation by a state agency to enact -- to approve an activity by a federal agency. I mean basically it gets to a delegation of authority from a state agency that was directed by, you know, Alaska Legislature to look at taking over the entire authorization of the Safe Drinking Water Act program in Alaska now five years ago and directing industry for the first time in 21 years to suddenly go to EPA for an authorization for a program that it acknowledges it doesn't regulate. So that's basically -- I mean, that's the basic tenants of our concern. And we don't think it's supported by law R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 23 • 1 2 3 4 5 6 7 8 9 10 ~~ 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 regardless of the comments that may have come in. It would have been helpful to have written comments to be able to analyze, we didn't have the benefit of them. Thank you. CHAIRMAN NORMAN: Thank you, Mr. Buckendorf. Commissioner Foerster, any questions? COMMISSIONER FOERSTER: I don't have any questions for Mr. Buckendorf, but I'm going to have another question for our EPA rep and the AOGCC staff. Would it -- is there any way that we could reconstruct the comments that EPA provided so that should any of the companies that are affected by this rule change desire to pursue it further they can and that they're-not hampered by failure to have the facts. So I'm going to charge you guys with that question, is that something that can be done? MR. MAYERS: Tim Mayers with EPA. I will certainly do what I can to track those down. I don't have access to those, but I will certainly do what I can to find them. COMMISSIONER FOERSTER: Okay. And, Mr. Aubert and Mr. -- Dr. Aubert and Mr. Regg, I know it puts a monkey on your back to recreate what somebody said to you, but I want to put that monkey on your back to get with the people at EPA that you had discussions with and get them to agree to some reconstruction of the conversations. Can you do that for me? MR. REGG: (Indiscernible - away from microphone)..... COMMISSIONER FOERSTER: Okay. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 24 l 2 3 4 5 6 7 8 9 10 11 12 13 14' 15 16 17 18 19 20 21 22 23 24 25 DR. AUBERT: I might address some of that to Assistant Attorney General Ballantine as he was involved with the direct..... COMMISSIONER FOERSTER: Okay. That's great. DR. AUBERT: .....conversation with EPA also. COMMISSIONER FOERSTER: Okay. I think that's appropriate. CHAIRMAN NORMAN: Just a footnote to that. I think the obvious question that's been identified here is that there is a glaring gap in the record. And I do think that if these regulations are to be promulgated with this there needs to be something in the record. That's just my feeling right now that this has brought into sharper focus, either in the form of some testimony by someone authorized to deliver it on the part of EPA or certainly a letter from an authorized official at EPA advising us of this. So right now the record is silent and I think industry and the people that have testified are really somewhat in the dark about what their hurdle is to respond to. And what I'd like to suggest if there's no objection, Commissioner Foerster, is that we take perhaps about a five to seven minute recess at this point and then we'll come back on the record and see where we go from here. COMMISSIONER FOERSTER: I think that's appropriate. CHAIRMAN NORMAN: We're going to recess for about -- let's say 10 minutes. (Off record) R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 25 1 2 3 4 5 6I 7 8 9 10 11 12 13 14 15 16 17 ~, 18 19 20 21 22 23 24 25 (On record) CHAIRMAN NORMAN: Back on the record at the hour of 9:50 a.m. The Commission has taken a 10 minute recess. Mr. Buckendorf, could you return so we have a -- perhaps a question or two. Commissioner Foerster. COMMISSIONER FOERSTER: I had a quick question. In your comments you mentioned national implications. Could you explain what you mean by national implication? MR. BUCKENDORF: Well, not knowing the nature of the concern, if now the EPA is reconsidering its report to Congress and whether or not drilling muds are regulated under RCRA, that's huge. Or whether it's reconsidering whether the annular injection, annular pumping of muds and cuttings is now regulated under the Safe Drinking Water Act, that moves beyond just Alaska, beyond the Alaska North Slope and, you know, to the entire industry. We don't know, there's no written comments in the record, as Mr. Norman stated it's hard for us to hypothesize on what might be under consideration. COMMISSIONER FOERSTER: Thank you for that clarification. That's it. CHAIRMAN NORMAN: That's it. Okay. I don't think, Mr. Buckendorf, we have any more questions of you right now, but I would ask if you'll remain. And let me ask are there any others present who wish to offer any comments or testimony to the Commission? Right. The record should reflect that the R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 26 1 2 3 4 5 6, 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Chair sees no one asking to be recognized. What I will propose here and then Commissioner Foerster can indicate whether she concurs, is that as to Section 110 the record does appear to be complete on that. We've received comments, it's been duly noticed so I'm going to suggest that first that as to that particular section we consider that submitted to the Commission, we will rework it and at our next public meeting then we will take some action on that one way or the other. COMMISSIONER FOERSTER: I agree. CHAIRMAN NORMAN: Then turning now to Section 080, annular disposal of drilling waste, it is apparent that the record is not complete on this. And consequently what the Commission will do, which I would propose is that we extend the period of comment for an additional 30 days and specifically the Commission will request written comments from the EPA setting forth their position on this. At the end of that 30 day period the Commission will then renotice this particular Section 080, and the written comments, if any, submitted to the EPA will be available for others to look at. In the meantime if any other persons wish to submit additional comments you may do so. A new notice will be published and then following that the Commission will take action with that particular omission from the record hopefully being completed. Commissioner Foerster, is that agreeable with you? R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COMMISSIONER FOERSTER: That's brilliant. CHAIRMAN NORMAN: Very well. Then if -- let me ask one final time then if -- you've heard the position the Commission will be going forward, our next public meeting on Section 110 is on the last Wednesday which will be October the 28th of this month. So I would anticipate probably that as a matter of routine business the Commission will bring that up and vote it in if any of you are interested. And as to the remainder we'll proceed as I discussed with inviting comments from the EPA, leaving the record open for an additional 30 days and then at the close of that 30 day period it will be renoticed. If there are no further comments then we will stand adjourned at the hour of 10:00 o'clock a.m. (Recessed - 10:00 a.m.) R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 28 1 C E R T I F I C A T E 2 UNITED STATES OF AMERICA ) ss . 3 STATE OF ALASKA ) 4 I, Rebecca Nelms, Notary Public in and for the State of Alaska, residing at Anchorage, Alaska, and Reporter for R & R 5 Court Reporters, Inc., do hereby certify: 6 THAT the annexed and foregoing PUBLIC HEARING was taken by Lynn Hall on the 15th day of October, 2009, commencing at the 7 hour of 9:00 a.m., at the Alaska Oil and Gas Conservation Commission, Anchorage, Alaska; 8 THAT this Hearing Transcript, as heretofore annexed, is a 9 true and correct transcription of the proceedings taken and transcribed by Lynn Hall; 10 IN WITNESS WHEREOF, I have hereunto set my hand and 11 affixed my seal this 20th day of October, 2009. 12 13 Notary Public in and for Alaska My Commission Expires: 10/10/10 14 15 16 17 18 19 20 21 22 23 24 25 R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 NOTICE OF PROPOSED CHANGES IN THE REGULATIONS OF THE ALASKA OIL AND GAS CONSERVATION COMMISSION The Alaska Oil and Gas Conservation Commission (AOGCC) proposes to adopt regulation changes to Title 20 of the Alaska Administrative Code, dealing with the annular disposal of drilling waste (20 AAC 25.080) and suspended wells (20 AAC 25.110). On May 22, 2009, AOGCC published a notice of proposed changes to 20 AAC 25.080; because of substantive changes to the proposed changes, AOGCC is re-noticing them, fully revising (i. e., repealing and readopting} 20 AAC 25.080 as follows: 1. modify the aquifer exemption for the disposal of drilling waste to require that the operator apply for and the U.S. EPA grant the exemption; 2. modify the information that must be submitted with an annular disposal application; 3. modify the limitations and conditions applicable to annular disposal; 4. add a provision for requesting variances and waivers; and 5. delete subsection (i) to recognize AOGCC's authority to regulate annular disposal in water wells associated with oil or gas exploration or production. In addition, AOGCC proposes to add to 20 AAC 25.110(n) the opportunity for variances and waivers. Written comments on the proposed regulation changes, including the potential costs of compliance, may be submitted to AOGCC at 333 West 7`n Ave., Suite 100, Anchorage, AK 99501. The comments must be received by 5:00 p.m. on October 9, 2009. Written and/or oral comments may be submitted at a hearing to be held on October 15, 2009, at 333 West 7`" Ave., Suite 100, Anchorage, AK. The hearing will be held from 9:00 a.m. to 11:00 a.m. and might be extended to accommodate those present before 9:30 a.m. who did not have an opportunity to comment. If, because of a disability, a special accommodation is needed to participate in this process, please contact the Commission's Special Assistant, Jody Colombie, at 907-793-1221; 333 West 7`n Ave., Suite 100, Anchorage, AK 99501; or jody.colombie(a~alaska.g_ov. Ms. Colombie must be contacted by October 6, 2009, at 5:00 p.m. to ensure that necessary accommodations can be provided. The proposed regulation changes are available at www.aogcc.alaska_~ov or by contacting Ms. Colombie at the phone number, physical address, or a-mail address above. After the public comment period ends, AOGCC will adopt, without notice, these or other provisions dealing with the same subjects or decide to take no action. The language of the proposed and final regulations may be different. YOU SHOULD COMMENT DURING THE TIME ALLOWED IF YOUR INTERESTS COULD BE AFFECTED. Written comments are subject to public inspection. Statutory Authority: AS 31.05.030; AS 31.05.040; AS 31.05.095 Statutes Being Implemented, Interpreted, or Made Specific: AS 31.05.030; AS 31.05.040; AS 31.05.095 Fiscal Information: The proposed regulation changes are not expected to require an increased appropriation. DATE: ` ~ / Daniel T. Se mount, Jr. Chair ADDITIONAL REGULATIONS NOTICE INFORMATION (AS 44.62.190(d)) 1. Adopting agency: Alaska Oil and Gas Conservation Commission. 2. General subject of regulations: annular disposal of drilling waste and suspended wells. 3. Citation of regulations: 20 AAC 25.080 and 20 AAC 25.110(n). 4. Reason for the proposed action: update the annular disposal of drilling waste regulations and add opportunities for variances and waivers to the suspended wells regulations. 5. Program category and BRU affected: Alaska Oil and Gas Conservation Commission. 6. Cost of implementation to the state agency: zero. 7. The name of the contact person for the regulations: Name: Daniel T. Seamount, Jr. Title: Chair Address: 333 W. 7`h Avenue, Suite 100, Anchorage, AK 99501 Telephone: (907) 793-1221 E-mail: jody.colombie@alaska.gov 8. The origin of the proposed action: agency staff. 9. Date: September 1, 2009. 10. Prepared by: Jo J. o bie A ska Oil d Gas Conservation Commission (907) 793-1221 Re ister 200 MISCELLANEOUS BOARDS g ~ - 20 AAC 25.080 is repealed and readopted to read: 20 AAC 25.080. Annular disposal of drilling waste (a) Drilling waste, as defined in (i) of this section, may not be disposed through the annular space of a well unless authorized by the commission under this section. The operator of a well for which a permit to drill has been issued by the commission may request authorization to dispose of drilling waste through the well's annular space by filing an Annular Disposal Application (Form 10-403RD), including all the information required under (e) of this section. (b) Annular disposal of drilling waste will be limited to (1) 35,000 barrels through the annular space of a single well; (2) wastes generated by drilling operations on the same drill pad or platform as the disposal annulus; (3) 90 days of actual disposal within aone-year approval period; and a one-year pert-'o3-~egi`mm~g on e a e ~ approv- Hof-die - nnu ar iD'spos~~l Application. (c) Drilling waste must not (1) migrate from the approved disposal interval; (2) impair the mechanical integrity of any well; or 1 Register 200_ MISCELLANEOUS BOARDS (3) damage a producing or potentially producing formation or impair the recovery of oil or gas. (d) Drilling waste may not be disposed of into any freshwater unless the operator applies for and the United States Environmental Protection Agency grants an aquifer exemption. (e) An application for authorization under this section will not be complete unless it includes or references (i. e., if the information is on file with the commission) the following information: (1) a schematic of the well proposed to receive the drilling waste; (2) lists and plats identifying (A) all wells and well branches that penetrate the disposal interval within aone-quarter mile radius of the surface casing shoe of the disposal annulus; the well paths of all wells and well branches must be shown on the plat, and the planar distances from all wells and well branches to the surface casing shoe of the disposal annulus must be provided; (B) all publicly recorded water wells within aone-mile radius of the surface location of the well that would receive the drilling waste; and (C) all operators and surface owners within aone-quarter mile radius of the surface casing shoe of the disposal annulus; (3) the measured and true vertical depths at the base of any freshwater aquifer(s) and permafrost; 2 Register 200_ MISCELLANEOUS BOARDS (4) an assessment of shallow seismic information in the area of the receiving well, where available, with an interpretation of faults and other anomalies; (5) a stratigraphic description of and off-set well log(s) across the disposal interval showing the drilling waste receiving and confining intervals; (6) a description of the drilling waste, including its composition and well source, and the identification of any waste that falls within (i)(3) of this section; (7) the estimated density of the drilling waste slurry; (8) the anticipated maximum pressure at the surface and at the surface casing shoe during the disposal operations; the calculations showing how the surface casing shoe pressure value was determined must be provided; (9) information demonstrating that the inner and outer casing strings have sufficient collapse and burst strength to withstand the maximum anticipated pressure of disposal operations; (10) information demonstrating that the surface casing shoe (A) is set below the base of permafrost and any freshwater; and (B) is adequately cemented to provide isolation; the information required under this sub-section must include (i) casing and cementing records for both casings forming the annulus; 3 Register 200_ MISCELLANEOUS BOARDS (ii) casing and cementing records for all wells that penetrate the disposal interval within aone-quarter mile radius of the surface casing shoe; (iii) the results of a leak-off test conducted below the surface casing shoe, or, if leak-off is not attained, the results of a formation integrity test conducted below the surface casing shoe; (iv) the results of an infectivity test conducted below the surface casing shoe; and (v) if required by the commission, a cement quality or other log(s); (11) a list and description of any uncemented significant hydrocarbon zones within the disposal annulus; (12) a list of, description of, and salinity determination for all waters penetrated by the well; salinity determinations must be based upon laboratory measurements or calculation methods described in the "Survey of Methods to Determine Total Dissolved Solids Concentrations," Contract No. 68-03-3416, KEDA Project No. 30-956, U.S. Environmental Protection Agency, Office of Drinking Water; (13) if drilling waste was previously disposed of through the annular space of the well, the dates of the disposal operations, the types and volumes of each type of waste disposed of, and the sources of the waste; and (14) additional information and analyses required by the commission. (f) Annular disposal operations must comply with the following conditions: 4 Re ister 200 MISCELLANEOUS BOARDS g ~ - (1) the downhole disposal pressure may not at any time exceed the downhole pressure measured during the formation leak-off test that was conducted below the surface casing shoe unless the commission approves a higher pressure; (2) the operator must continuously monitor the following during disposal operations: the types and volumes of each type of waste disposed, disposal rates, surface pressures of the receiving well's disposal annulus, and, as specified by the commission, surface pressures of the annuli of all wells within aone-quarter mile radius of the surface casing shoe of the receiving well and surface pressures of the receiving well's outer annuli and tubing; (3) the operator shall immediately cease disposal, notify the commission within 24 hours, and take all appropriate remedial action, including but not limited to any action ordered by the commission, if (A) there is evidence of a breach of the disposal annulus or migration of fluids from the disposal interval; (B) disposal operations pose a threat to well integrity, health or safety, hydrocarbon- bearing zones, correlative rights, or the environment, including freshwater; or (C) there is any unauthorized disposal; (4) the operator shall file with the commission an incident report within 10 working days after any incident requiring action under (f)(3) of this section; the incident report shall include a description of any actions taken and the effects and results of those actions; and 5 Register 200_ MISCELLANEOUS BOARDS (5) the operator shall comply with any other conditions the commission determines are important to ensure compliance with any limitations or requirements of this section. (g) The operator shall (1) not later than 30 days after each calendar quarter during an authorized disposal operation period, file with the commission a Report of Annular Disposal (Form 10- 423); and (2) file additional information and analyses as required by the commission. (h) Upon written request of the operator, the commission may approve a variance from a requirement of this section if the variance provides at least an equally effective means of complying with the requirement, or a waiver of a requirement of this section if the waiver will not promote waste, is based on sound engineering and geoscience principles, will not jeopardize the ultimate recovery of hydrocarbons, will not jeopardize correlative rights, and will not result in an increased risk to health, safety, or the environment, including freshwater. (i) In this section, "drilling waste" means the following substances, unless identified as a "hazardous waste" in 40 C.F.R. 261: (1) drilling mud, drilling cuttings, reserve pit fluids, cement-contaminated drilling mud, completion fluids, formation fluids associated with the act of drilling a well permitted under 20 AAC 25.005, and any added water needed to facilitate the pumping of drilling mud or drilling cuttings; (2) drill rig wash fluids and drill rig domestic waste water; and 6 Re ister 200 MISCELLANEOUS BOARDS g ~ - (3) other substances that the commission determines, upon the operator's written request, are wastes associated with the act of drilling a well permitted under 20 AAC 25.005. (Eff. 9/22/96, Register 129; am 11/7/99, Register 152; am / / ,Register Authority: AS 31.05.030 AS 31.05.040 20 AAC 25.110(n) is amended to read: (n) Upon written request of the operator, the commission may modify a deadline in this section upon a showing of good cause, approve a variance from any other requirement of this section if the variance provides at least an equally effective means of comnlyin~ with the requirement, or approve a waiver of a requirement of this section if the waiver will not promote waste, is based on sound en~ineerin~ and ~eoscience principles, will not jeopardize the ultimate recovery of hydrocarbons, will not jeopardize correlative rights, and will not result in an increased risk to health, safety, or the environment, including freshwater. (Eff. 4/2/86, Register 97; am 11/7/99, Register 152; am 11/19/2008, Register 188; am / / ,Register _~ Authority: AS 31.05.030 AS 31.05.040 AS 31.05.095 7 Hearing Testimony Annular Disposal of Drilling Waste Winton G. Aubert, Ph.D., P.E. 10/15/2009 Before the Commission today are proposed changes to Title 20, Chapter 25 of the Alaska Administrative Code, which are the AOGCC regulations. Specifically, and upon the Commission's motion, we are proposing repeal and re-adoption of Section 080 of the Commission regulations, entitled "Annular disposal of drilling waste", and a minor addi- tion to Section 110 of the regulations, entitled "Suspended wells". The proposed addition to regulation Section 110, "Suspended wells", allows the Com- mission explicit flexibility to vary or waive existing well suspension requirements. This explicit flexibility was, we believe, inadvertently removed from then existing regulations during a 2008 rewrite of Section 110. Compare ?999: 2D AAC 25. ??0 (d) (2) with 2008: 20 AAC 25. ? 10 (c) (2). We further believe that enacting this proposed change would impose no additional regulatory burden on industry. Our proposed repeat and re-adoption of Section 080, "Annular disposal of drilling waste", is upon the Commission's motion to clarify the language and improve the logical order of the existing regulation. Before the Commission is actually a re-noticed proposal, that we believe addresses the U.S. Environmental Protection Agency's (EPA's) concern that AOGCC regulations not conflict with Federal law. Proposed changes to the existing Section 080 include explicit requirements for (1) limit- ing the time duration of actual annular disposal to 90 days within aone-year approval window; (2) a receiving well schematic; (3) plats of all disposal interval penetrations within the one-quarter-mile area of review around the receiving well; (4} fists of well op- erators and surface owners within the one-quarter-mile area of review; (5) a shallow seismic data interpretation; (6) proposed waste slurry density; (7) results of a fluid infec- tivity test; {8) a salinity determination of all waters penetrated by the receiving wellbore; (9) continuous monitoring of physical injection parameters; (10} unusual incident report filing within 10 working days; and (11} modifred filing timing for the Report of Annular Disposal (Form 10-423). Further proposed changes to the existing Section 080 are (1) inclusion of explicit flexibil- ity for Commission-approved variances and waivers, and {2) for waste injection into fresh water {<10,000 mg/L TDS), the requirement of a U.S. Environmental Protection Agency (EPA) aquifer exemption. Finally, we propose recognizing the AOGCC's authority to regulate annular disposal in water wells associated with oil or gas exploration and production, such as water source wells. This water well oversight was excluded from Commission responsibility in the 1999 regulations. With respect to aspects of our proposed regulation changes falling under AOGCG over- sight, we expect a relatively minor change in regulatory burden will result. We are not prepared to comment on the regulatory burden effect of our proposed "EPA oversight" provision. STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION Annular Disposal and Suspended Wells Regulations October 15, 2009 at 9:00 a.m. NAME AFFILIATION PHONE # TESTIFY (Yes or No) ~~~ ~ c~-+~~,~.~. IcXk o N `10'1- 3~ - ~3P3 rat O ~ ~~ ~ ~~ ~~~~"1 ~ ~ r''K ~- % U / ~ ~ -ICJ/ y /1_,/c~' n ~~ ~? ~P~/~- ~~ ~ ~ l ~~ ~~ .~ ~~~ rt,lc~ ,3 r~~ ~~ S G5~-Y~s Z ~Vo ~~ ' ~ ~ STATE OF ALASKA ADVERTISING ORDER NO. NOTICE TO PUBLISHER ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED A O_03014009 ' 1 AFFIDAVIT OF PUBLICATION (PART2 OF THIS FORM) WITH ATTACHED COPY OF I ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. September 1, 2009 R 333 W 7th Ave, Ste 100 Jod Colombie ° Anchorage, AK 99501 PHONE PcN M 907-793-1238 - DATESADVERTISEMENT REQUIRED: o Anchorage Daily News September 3, 2009 PO Box 149001 Arichora e AK 99514 g THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ~ tTS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement Legal® ^ Display Classified ^Other (Specify) SEE ATTACHED SEND INVOICE IN TRIPLICATE AOGCC, 333 W. 7th Ave., Suite 100 TO Anchora e AK 99501 REF TYPE NUMBER AMOUNT DATE 1 VEN s Ait~ 02910 FIN AMOUNT SY CC PGM ~ 10 02140100 2 REQUISITIONED BY: PAGE 1 OF I TOTAL OF 2 PAGES ALL PAGE LC ACCT FY NMR DIST 73451 DIVISION APPROVAL: 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM STATE OF ALASKA ADVERTISING ORDER SEE BOTTOMfOR INVOICE A NOTICE TO PUBLISHER I ADVERTISING ORDER NO. INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /~ 0_03014009 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF /`1 ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F AOGCC R 333 West 7~' Avenue. Suite 100 Anchorage. AK 9951 M 907-793-1238 o Anchorage Daily News PO Box 149001 Anchorage, AK 99514 AGENCY CONTACT DATE OF A.O. PHONE IPCN l 7l l/ 1 / 7_ l -ILL 1 DATES ADVERTISEMENT REQUIRED: September 3, 2009 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account # STOF0330 United states of America State of division. AFFIDAVIT OF PUBLICATION REMINDER SS INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2009, and thereafter for consecutive days, the last publication appearing on the day of , 2009, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This _ day of 2009, Notary public for state of My commission expires _ NOTICE OF PROPOSED CHANGES IN THE REGULATIONS OF THE ALASKA OIL AND GAS CONSERVATION COMMISSION The Alaska Oil and Gas Conservation Commission (AOGCC) proposes to adopt regulation changes to Title 20 of the Alaska Administrative Code, dealing with the annular disposal of drilling waste (20 AAC 25.080) and suspended wells (20 AAC 25.110). On May 22, 2009, AOGCC published a notice of proposed changes to 20 AAC 25.080; because of substantive changes to the proposed changes, AOGCC is re-noticing them, fully revising (i. e., repealing and readopting) 20 AAC 25.080 as follows: modify the aquifer exemption for the disposal of drilling waste to require that the operator apply for and the U.S. EPA grant the exemption; modify the information that must be submitted with an annular disposal application; modify the limitations and conditions applicable to annular disposal; add a provision for requesting variances and waivers; and delete subsection (i) to recognize AOGCC's authority to regulate annular disposal in water wells associated with oil or gas exploration or production. In addition, AOGCC proposes to add to 20 AAC 25.110(n) the opportunity for variances and waivers. Written comments on the proposed regulation changes, including the potential costs of compliance, may be submitted to AOGCC at 333 West 7`'' Ave., Suite 100, Anchorage, AK 99501. The comments must be received by 5:00 p.m. on October 9, 2009. Written and/or oral comments may be submitted at a hearing to be held on October 15, 2009, at 333 West 7`h Ave., Suite 100, Anchorage, AK. The hearing will be held from 9:00 a.m. to 11:00 a.m. and might be extended to accommodate those present before 9:30 a.m. who did not have an opportunity to comment. If, because of a disability, a special accommodation is needed to participate in this process, please contact the Commission's Special Assistant, Jody Colombie, at 907-793-1221; 333 West 7"' Ave., Suite 100, Anchorage, AK 99501; or jody.colombie(a~alaska.gov. Ms. Colombie must be contacted by October 6, 2009, at 5:00 p.m. to ensure that necessary accommodations can be provided. The proposed regulation changes are available at www.aogcc.alaska.~,ov or by contacting Ms. Colombie at the phone number, physical address, or e-mail address above. After the public comment period ends, AOGCC will adopt, without notice, these or other provisions dealing with the same subjects or decide to take no action. The language of the proposed and final regulations may be different. YOU SHOULD COMMENT DURING THE TIME ALLOWED IF YOUR INTERESTS COULD BE AFFECTED. Written comments are subject to public inspection. Statutory Authority: AS 31.05.030; AS 31.05.040; AS 31.05.095 Statutes Being Implemented, Interpreted, or Made Specific: AS 31.05.030; AS 31.05.040; AS 31.05.095 Fiscal Information: The proposed regulation changes are not expected to require an increased appropriation. DATE: ~ l Daniel T. Seamoun , r. Chair ADDITIONAL REGULATIONS NOTICE INFORMATION (AS 44.62.190(d)) 1. Adopting agency: Alaska Oil and Gas Conservation Commission. 2. General subject of regulations: annular disposal of drilling waste and suspended wells. 3. Citation of regulations: 20 AAC 25.080 and 20 AAC 25.110(n). 4. Reason for the proposed action: update the annular disposal of drilling waste regulations and add opportunities for variances and waivers to the suspended wells regulations. 5. Program category and BRU affected: Alaska Oil and Gas Conservation Commission. 6. Cost of implementation to the state agency: zero. 7. The name of the contact person for the regulations: Name: Daniel T. Seamount, Jr. Title: Chair Address: 333 W. 7th Avenue, Suite 100, Anchorage, AK 99501 Telephone: (907) 793-1221 E-mail: jody.colombie@alaska.gov 8. The origin of the proposed action: agency staff. 9. Date: September 1, 2009. ~+ 10. Prepared by: Jc~ J. C o e ska an Gas Conservation Commission (907) 793-1221 Register ~_ MISCELLANEOUS ~ARDS 20 AAC 25.080 is repealed and readopted to read: 20 AAC 25.080. Annular disposal of drilling waste (a) Drilling waste, as defined in (i) of this section, may not be disposed through the annular space of a well unless authorized by the commission under this section. The operator of a well for which a permit to drill has been issued by the commission may request authorization to dispose of drilling waste through the well's annular space by filing an Annular Disposal Application (Form 10-403RD), including all the information required under (e) of this section. (b) Annular disposal of drilling waste will be limited to (1) 35,000 barrels through the annular space of a single well; (2) wastes generated by drilling operations on the same drill pad or platform as the disposal annulus; (3) 90 days of actual disposal within aone-year approval period; and (4) aone-year period beginning on the date of approval of the Annular Disposal Application. (c) Drilling waste must not (1) migrate from the approved disposal interval; (2) impair the mechanical integrity of any well; or 1 Register ~_ MISCELLANEOUS ~ARDS (3) damage a producing or potentially producing formation or impair the recovery of oil or gas. (d) Drilling waste may not be disposed of into any freshwater unless the operator applies for and the United States Environmental Protection Agency grants an aquifer exemption. (e) An application for authorization under this section will not be complete unless it includes or references (i. e., if the information is on file with the commission) the following information: (1) a schematic of the well proposed to receive the drilling waste; (2) lists and plats identifying (A) all wells and well branches that penetrate the disposal interval within aone-quarter mile radius of the surface casing shoe of the disposal annulus; the well paths of all wells and well branches must be shown on the plat, and the planar distances from all wells and well branches to the surface casing shoe of the disposal annulus must be provided; (B) all publicly recorded water wells within aone-mile radius of the surface location of the well that would receive the drilling waste; and (C) all operators and surface owners within aone-quarter mile radius of the surface casing shoe of the disposal annulus; (3) the measured and true vertical depths at the base of any freshwater aquifer(s) and permafrost; 2 Register ~0_ MISCELLANEOUS ~ARDS (4) an assessment of shallow seismic information in the area of the receiving well, where available, with an interpretation of faults and other anomalies; (5) a stratigraphic description of and off-set well log(s) across the disposal interval showing the drilling waste receiving and confining intervals; (6) a description of the drilling waste, including its composition and well source, and the identification of any waste that falls within (i)(3) of this section; (7) the estimated density of the drilling waste slurry; (8) the anticipated maximum pressure at the surface and at the surface casing shoe during the disposal operations; the calculations showing how the surface casing shoe pressure value was determined must be provided; (9) information demonstrating that the inner and outer casing strings have sufficient collapse and burst strength to withstand the maximum anticipated pressure of disposal operations; (10) information demonstrating that the surface casing shoe (A) is set below the base of permafrost and any freshwater; and (B) is adequately cemented to provide isolation; the information required under this sub-section must include (i) casing and cementing records for both casings forming the annulus; 3 Register ~_ MISCELLANEOUS 1~ARDS (ii) casing and cementing records for all wells that penetrate the disposal interval within aone-quarter mile radius of the surface casing shoe; (iii) the results of a leak-off test conducted below the surface casing shoe, or, if leak-off is not attained, the results of a formation integrity test conducted below the surface casing shoe; (iv) the results of an infectivity test conducted below the surface casing shoe; and (v) if required by the commission, a cement quality or other log(s); (11) a list and description of any uncemented significant hydrocarbon zones within the disposal annulus; (12) a list of, description of, and salinity determination for all waters penetrated by the well; salinity determinations must be based upon laboratory measurements or calculation methods described in the "Survey of Methods to Determine Total Dissolved Solids Concentrations," Contract No. 68-03-3416, KEDA Project No. 30-956, U.S. Environmental Protection Agency, Office of Drinking Water; (13) if drilling waste was previously disposed of through the annular space of the well, the dates of the disposal operations, the types and volumes of each type of waste disposed of, and the sources of the waste; and (14) additional information and analyses required by the commission. (f) Annular disposal operations must comply with the following conditions: 4 Register ~_ MISCELLANEOUS l~ARDS (1) the downhole disposal pressure may not at any time exceed the downhole pressure measured during the formation leak-off test that was conducted below the surface casing shoe unless the commission approves a higher pressure; (2) the operator must continuously monitor the following during disposal operations: the types and volumes of each type of waste disposed, disposal rates, surface pressures of the receiving well's disposal annulus, and, as specified by the commission, surface pressures of the annuli of all wells within aone-quarter mile radius of the surface casing shoe of the receiving well and surface pressures of the receiving well's outer annuli and tubing; (3) the operator shall immediately cease disposal, notify the commission within 24 hours, and take all appropriate remedial action, including but not limited to any action ordered by the commission, if (A) there is evidence of a breach of the disposal annulus or migration of fluids from the disposal interval; (B) disposal operations pose a threat to well integrity, health or safety, hydrocarbon- bearing zones, correlative rights, or the environment, including freshwater; or (C) there is any unauthorized disposal; (4) the operator shall file with the commission an incident report within 10 working days after any incident requiring action under (f)(3) of this section; the incident report shall include a description of any actions taken and the effects and results of those actions; and 5 Register ~_ MISCELLANEOUS ~ARDS (5) the operator shall comply with any other conditions the commission determines are important to ensure compliance with any limitations or requirements of this section. (g) The operator shall (1) not later than 30 days after each calendar quarter during an authorized disposal operation period, file with the commission a Report of Annular Disposal (Form 10- 423); and (2) file additional information and analyses as required by the commission. (h) Upon written request of the operator, the commission may approve a variance from a requirement of this section if the variance provides at least an equally effective means of complying with the requirement, or a waiver of a requirement of this section if the waiver will not promote waste, is based on sound engineering and geoscience principles, will not jeopardize the ultimate recovery of hydrocarbons, will not jeopardize correlative rights, and will not result in an increased risk to health, safety, or the environment, including freshwater. (i) In this section, "drilling waste" means the following substances, unless identified as a "hazardous waste" in 40 C.F.R. 261: (1) drilling mud, drilling cuttings, reserve pit fluids, cement-contaminated drilling mud, completion fluids, formation fluids associated with the act of drilling a well permitted under 20 AAC 25.005, and any added water needed to facilitate the pumping of drilling mud or drilling cuttings; (2) drill rig wash fluids and drill rig domestic waste water; and 6 Register ~0 MISCELLANEOUS ~ARDS (3) other substances that the commission determines, upon the operator's written request, are wastes associated with the act of drilling a well permitted under 20 AAC 25.005. (Eff. 9/22196, Register 129; am 11/7/99, Register 152; am / / ,Register Authority: AS 31.05.030 AS 31.05.040 20 AAC 25.110(n) is amended to read: (n) Upon written request of the operator, the commission may modify a deadline in this section upon a showing of good cause, approve a variance from any other requirement of this section if the variance provides at least an equally effective means of complyin~ with the requirement, or approve a waiver of a requirement of this section if the waiver will not promote waste, is based on sound engineering and ~eoscience principles, will not ieonardize the ultimate recovery of hydrocarbons, will not jeopardize correlative rights, and will not result in an increased risk to health, safety, or the environment, including freshwater. (Eff. 4/2/86, Register 97; am 11/7/99, Register 152; am 11/19/2008, Register 188; am / / ,Register _) Authority: AS 31.05.030 AS 31.05.040 AS 31.05.095 7