Department of Commerce, Community, and Economic Development
Alaska Oil and Gas Conservation Commission
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1. March 20, 2019 Alaska Climate Action Network Petition for a Hearing
2. May 16, 2019 AOGCC response
3. ------------------- emails
INDEXES
Carlisle, Samantha J (CED)
From:
Sent:
To:
Cc:
Subject:
Attachments:
Tracking:
Ms. Smith,
Carlisle, Samantha J (CED)
Thursday, February 20, 2020 2:49 PM
Ceal Smith
Brentwood Higman; Pamela Miller; Colombie, Jody J (CED)
RE: March 20, 2019 hearing request
OTH-19-005.pdf
Recipient
Ceal Smith
Brentwood Higman
Pamela Miller
Colombia, JodyJ (CED)
Delivery
Delivered: 2/20/2020 2:49 PM
I am attaching the response that was sent to you via email on May 16, 2019.
Please let me know if you need anything else.
Thank you,
Samantha Carlisle
Executive Secretary III
Alaska Oil and Gas Conservation Commission
333 West 701 Avenue
Anchorage, AK 99501
(907) 793-1223
Read
Read: 2/20/2020 2:51 PM
CONFIDL:NTIALI TYNOUCE. Iles (-,mail m, sage, inchltting ante attaChmcuts, contains intotvtation from I tic -Alaska Od and (,as Conservation
Commission (Ah(,( C), State^ of ;Alaska and is for the sole use of the iiitetit d rk idpienI(,). It may contain confidential and, m privileged information.
The un.mthorized mviem-, uce or disclosmre of such fnfoi mall(n1 ma}- t folate stat" or Crdrrol last If you am an unintended iedpienI of this o-mait, pleexe
delay, if, without first saving or forwarding it, and, so that phut AOC(; L is ol,areof the mistake in vending it to you, c'ontad Samantha (at Iisle i I 1 (90 7)
791-1221 or 4.auumthft.Carlisk a ul t.kp,t,
From: Ceal Smith <ceal@akclimateaction.org>
Sent: Thursday, February 20, 2020 1:26 PM
To: Carlisle, Samantha J (CED) <samantha.carlisle@alaska.gov>
Cc: Brentwood Higman <hig314@gmail.com>; Pamela Miller <pamela@akaction.org>
Subject: Re: March 20, 2019 hearing request
Hi Samantha,
On March 20, 2019 the Alaska Climate Action Network, Ground Truth Trekking and Alaska Community Action on
Toxics filed the attached Request for Hearing. To date, we have not heard back from the AOGCC. We will be
preparing a new request but I wanted to check with you to see what, if anything, is on the record regarding our
March 20th request.
Thank you!
Ceal
Ceal Smith, MSci
Research & Policy Analyst
Alaska Climate Action Network
Join AK CAN! on Facebook
Eagle River, AK
907.952.7472
On Dec 18, 2018, at 12:55 PM, Carlisle, Samantha J (DOA) <samantha.carlisle@alaska.aov> wrote:
Thank you!
From: ceal@akclimateaction.ore <ceal@akclimateaction.org>
Sent: Tuesday, December 18, 2018 9:52 AM
To: Carlisle, Samantha J (DOA) <samantha.carlisle@alaska.eov>
Cc: lois Epstein <lois eystein@tws.org>; Kate Troll <kate.troll@email.com>; Alaska Climate Action
Network <ceal@akclimateaction.org>
Subject: Dec 18th hearing docs 1:2 (petition)
Good morning,
Unfortunately due to poor road conditions I'm unable to attend the hearing this morning in person. I
will be calling in, but please see the attached documents. 1 of 2 emails, here is the signed petition. I will
send an addendum with additional signatures later today.
Thank you,
Ceal Smith
Ceal Smith, MSci
Research & Policy Analyst
Alaska Climate Action Network
Join AK CAN! on Facebook
Eagle River, AK
907.952.7472
Carlisle, Samantha J (CED)
From: Pamela Miller <pamela@akaction.org>
To: Carlisle, Samantha 1 (CED)
Sent: Thursday, February 20, 2020 2:59 PM
Subject: Read: March 20, 2019 hearing request
Your message
To:
Subject: March 20, 2019 hearing request
Sent: Thursday, February 20, 2020 11:58:42 PM (UTC+00:00) Monrovia, Reykjavik
was read on Thursday, February 20, 2020 11:58:38 PM (UTC+00:00) Monrovia, Reykjavik.
Carlisle, Samantha J (CED)
From: Microsoft Outlook
To: Ceal Smith; Brentwood Higman; Pamela Miller
Sent: Thursday, February 20, 2020 2:49 PM
Subject: Relayed: RE: March 20, 2019 hearing request
Delivery to these recipients or groups is complete, but no delivery notification was sent by the
destination server:
Ceal Smith ceal akclimateaction.or
Brentwood Higman (hig314(cbgmail com)
Pamela Miller (pamela@akaction org)
Subject: RE: March 20, 2019 hearing request
I
THE STATE
OIALASKA
May 16, 2019
GOVERNOR MIKE. DUNLEAVY
Ceal Smith, Director
Alaska Climate Action Network
Eagle River, Alaska
Sent by Email: ceal(ci)akclimateaction.ore
Bretwood Higman, PhD
Ground Truth Trekking
Soldotna, AK
Sent by Email: hig314(fi�email.com
Pam Miller, Executive Director
Alaska Community Action on Toxics
Anchorage, AK
Sent by Email: namcla c ,akaction.org
Re: Docket Number: OTH-19-005
Petition for a Hearing
Dear Ms. Smith, Mr. Higman and Ms. Miller:
Alaska Oil and Gas
Conservation Commission
333 West Sevenll, Avenue
Anchorage, Alaska 99501-3572
Main: 907.279.1433
Fax: 907.276.7542
www. a og c c. olaska. gov
The Alaska Oil and Gas Conservation Commission (AOGCC) received a "petition for a hearing
on a complaint of waste," dated and received March 20, 2019, from Alaska Climate Action
Network (ACAN). ACAN requests a hearing on the following:
A. 1,468 releases in excess of 1 hour reported to AOGCC between January 2012
and January 31, 2017, with special focus on releases greater than 100,000 Mcf,
as documented in data obtained from your agency and shown in Table 1 below.
B. As yet undetermined number of gas releases in excess of 1 hour reported to
AOGCC between February 1, 2018 and October 20, 2018 as indicated in
documents released to the Alaska Climate Action Network on January 4, 2019,
and
C. As yet undetermined number of gas releases in excess of 1 hour reported to
AOGCC since October 20, 2018.
According to ACAN, "these releases indicate that a significant level of waste of Alaska's oil and
gas resources has occurred in possible violation of applicable statutes listed in Appendix I below."
With regard to paragraph A, 1,486 releases in excess of 1 hour" over a five year period —
essentially a request for a hearing on nearly 1,500 matters — is an insufficient description to permit
AOGCC to craft a public notice containing adequate detail to allow interested parties to know the
Docket No. OTH-19-005
Ceal Smith
May 16, 2019
Page 2 of 2
basis for ACAN's claims of waste, whether their interests may be affected, and if so, what evidence
would be relevant to a determination of ACAN's claims. In addition, apart from the occurrence of
the releases, no support is offered for ACAN's assertions that the releases constitute "waste." Table
1 is information obtained from gas dispositions reports required by law to be filed with AOGCC
on a monthly basis. By law, gas disposition reports are received monthly for every production
facility in the state. For flaring / venting longer than an hour, an operator must submit a written
supplement explaining why the gas was flared / vented, the duration of the flaring / venting, the
volume flared / vented and the actions taken to minimize flaring / venting. The reports, including
the supplements, are reviewed by AOGCC, which determines within 90 days if the flaring / venting
is authorized or constitutes waste. AOGCC's determination is set forth on the gas disposition form.
Gas disposition reports do not, standing alone, constitute evidence of waste. For these reasons,
ACAN's request for a hearing on the matters in paragraph A is denied at this time.
With regard to paragraphs B. and C., no factual basis is provided for the "as yet undetermined
number of gas releases" claims. AOGCC does not schedule hearings to address "as yet
undetermined" claims. Nor do "as yet undetermined claims" set forth any basis for a claim of
waste. ACAN's request for a hearing on the matters in paragraphs B and C is also denied at this
time.
Sincerely,
Daniel T. Seamount, Jr
Commissioner
ssie L. Chmielowski
ommissioner
As provided in AS 31.05.080(x), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC
grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by
it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the
order or decision is believed to be erroneous.
The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it
within 10•days is a denial of reconsideration. If die AOGCC denies reconsideration, upon denial, this order or decision and the denial of
reconsideration are FINAL and may be appealed to superior court. The appeal MUST be riled within 33 days after the date on which the
AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by
inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed.
If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on
reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed
within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on
reconsideration.
In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period;
the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the nett day
that does not fall on a weekend or state holiday.
Colombie, Jody J (DOA)
From: Colombie, Jody J (DOA)
Sent: Thursday, May 16, 2019 1:45 PM
To: teal@akclimateaction.org, hi9314@gmail.com, pamela@akaction.org
Subject: OT H -19-005
Attachments: OTH 19-005.pdf
AOGCC's response to your petition for a hearing on a complaint of waste, dated and received March 20, 2019.
l„Ji J ('ulunrhir
��nrird .Il1iSTU71/
. ILisArr Oil uml (ius ('oim,rrulion ( mmnis)ion
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Alaska Climate Action Network
March 20, 2019
Ms. Jody Colombie
Alaska Oil and Gas Conservation Commission
333 W. 7" Avenue
Anchorage, AK 99501
aogm.customer.svcna alaska.gov
iody.colombie@alaska.gov
Dear Ms. Colombie,
This document is a petition for a hearing on a complaint of waste as required under AS
31.05.060(a). We are specifically requesting a hearing on the following:
A. 1,468 gas releases in excess of 1 hour reported to AOGCC between January 2012 and
January 31, 2017, with special focus on releases greater than 100,000 Mcf, as
documented in data obtained from your agency and shown in Table 1 below, and
B. As yet undetermined number of gas releases in excess of 1 hour reported to AOGCC
between February 1, 2018 and October 20, 2018 as indicated in documents released to the
Alaska Climate Action Network on January 4, 2019, and
C. As yet undetermined number of gas releases in excess of 1 hour reported to AOGCC
since October 20, 2018.
These releases indicate that a significant level of waste of Alaska's oil and gas resources has
occurred in possible violation of applicable statutes listed in Appendix I below. Please open a
docket for this petition and notify me at cealna,akclimateaction.org Bretwood Higman at
hig314na.gmail.com and Pam Miller at pamelana,akaction.org of the date of the hearing.
We will be urging the commission to take action upon this complaint at the hearing.
Sincerely,
Ceal Smith, Director
Alaska Climate Action Network
Eagle River, AK
ceal@akclimateaction.org
Bretwood Higman, PhD
Ground Truth Trekking
Soldovia, AK
hig3litAgmail.com
Pam Miller, Executive Director
Alaska Community Action on Toxics
Anchorage, AK
pamela@akaction.org
Table 1: Gas releases in excess of 100, 000 Mfc reported to AOGCC between Jan/, 2010 and
Jan 31, 2017.
Appendix I.
Applicable Statutes and Rules
§AS 31.05.027 gives AOGCC authority over all land in the state of Alaska lawfully subject to its
police powers, including Federal lands,
§AS 31.05.095 clearly states, "the waste of oil and gas in the state is prohibited",
§AS 31.05.170(15) defines "waste" in addition to its ordinary meaning, "physical waste" and
includes the inefficient, excessive, or improper use of, or unnecessary dissipation of, reservoir
energy; and the locating, spacing, drilling, equipping, operating or producing of any oil or gas
well in a manner which results or tends to result in reducing the quantity of oil or gas to be
recovered from a pool in this state under operations conducted in accordance with good oil field
engineering practices; the inefficient above -ground storage of oil; and the locating, spacing,
3
A
B
C
D
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101081
747534
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290000032
PBUGC2
0
112300
0
0
436111
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4
2012
01 -Jul -12
290000031
PBU GCI
0
112300
0
0
395787
250
5
2012
01 -Jun -12
290000031
PBU GCI
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0
0
362033
2020
6
2013
01 -Apr -13
290000031
PBU GCI
0
112300
0
0
360310
1862
7
2016
01 -Apr -16
290000008
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0
112300
1000976
4E+06
313559
163592
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0
44561
263807
17836
9
2016
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722459
247420
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PBU GC 1
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2014
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523153
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1501945
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3638
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2016
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PBUCGFB
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1645424
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124369
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2016
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118507
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5481
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8785
21
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112300
950008
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115459
15406
22
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112292
4967
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24
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2017
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41667
Table 1: Gas releases in excess of 100, 000 Mfc reported to AOGCC between Jan/, 2010 and
Jan 31, 2017.
Appendix I.
Applicable Statutes and Rules
§AS 31.05.027 gives AOGCC authority over all land in the state of Alaska lawfully subject to its
police powers, including Federal lands,
§AS 31.05.095 clearly states, "the waste of oil and gas in the state is prohibited",
§AS 31.05.170(15) defines "waste" in addition to its ordinary meaning, "physical waste" and
includes the inefficient, excessive, or improper use of, or unnecessary dissipation of, reservoir
energy; and the locating, spacing, drilling, equipping, operating or producing of any oil or gas
well in a manner which results or tends to result in reducing the quantity of oil or gas to be
recovered from a pool in this state under operations conducted in accordance with good oil field
engineering practices; the inefficient above -ground storage of oil; and the locating, spacing,
3
drilling, equipping, operating or producing of an oil or gas well in a manner causing, or tending
to cause, unnecessary or excessive surface loss or destruction of oil or gas; and other producing
oil or gas in a manner causing unnecessary water channeling or coning; the operation of an oil
well with an inefficient gas -oil ratio; the drowning with water of a pool or part of a pool capable
of producing oil or gas; underground waste; the creation of unnecessary fire hazards; the release,
burning, or escape into the open air of gas, from a well producing oil or gas; the use of gas for
the manufacture of carbon black; and the drilling of wells unnecessary to carry out the purpose or
intent of this chapter; and
20 ACC 25.235. Gas disposition. (a) For each production facility the operator shall compile and
report monthly gas disposition and acquisition on the Facility Report of Produced Gas
Disposition (Form 10-422). If a facility's production comes from multiple pools, the operator
shall allocate production between each producing pool as a percentage of the total volume of gas
that the facility handled for the month. The operator shall report gas acquisition or disposition by
category, as follows:
(1) gas sold;
(2) gas reinjected;
(3) gas flared or vented* (form only includes flared);
(4) gas used for lease operations other than flaring or venting;
(5) natural gas liquids (NGLs) produced;
(6) gas purchased;
(7) gas transferred;
(8) other.
(b) Any release, burning, or escape into the air of gas other than incidental de minimis venting as
authorized under (d)(4) of this section must be reported as flared or vented on the Facility
Report of Produced Gas Disposition (Form 10-422). The operator shall submit a written
suualement for any flaring or venting incident exceeding one hour. The supplement must
describe why the gas was flared or vented, list the beginning and ending time of the flaring or
venting, report the volume of gas flared or vented, and describe actions taken to comply with (c)
of this section.
(c) The operator shall take action in accordance with good oil field engineering practices and
conservation purposes to minimize the volume of gas released, burned, or permitted to escape
into the air.
(d) Gas released, burned, or permitted to escape into the air constitutes waste, except that
(1) flaring or venting gas for a period not exceeding one hour as the result of an
emergency or operational upset is authorized for safety;
(2) flaring or venting gas for a period not exceeding one hour as the result of a planned
lease operation is authorized for safety;
(3) flaring pilot or purge gas to test or fuel the safety flare system is authorized for
safety;
(4) de minimis* venting of gas incidental to normal oil field operations is authorized;
(5) within 90 days after receipt of the report required under (b) of this section, the
commission will, in its discretion, authorize the flaring or venting of gas for a period
exceeding one hour
(A) if the flaring or venting is necessary for facility operations, repairs, upgrades,
or testing procedures;
(B) if an emergency that threatens life or property requires the flaring or venting,
unless failure to operate in a safe and skillful manner causes the emergency; or
(C) if the flaring or venting is necessary to prevent loss of ultimate recovery;
(6) upon application, the commission will, in its discretion, authorize the flaring or
venting of gas for purposes of testing a well before regular production.
(e) Notwithstanding an authorization under
(d) of this section, the commission will, in its discretion, review flaring or venting
of gas and classify as waste any volume of gas flared or vented in violation of
(c) of this section.
(f) Notwithstanding conservation orders that the commission issued before 1/1/95,
this section applies to flaring or venting ofgas that occurs on or after 1/1/95.