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Home My WebLink AboutO 190Other Order 190 Docket No: OTH-21-053 North Cook Inlet Unit B-02 1. November 16, 2021 Notice of proposed enforcement action per 20 AAC 25.535 (b)(1) and 20 AAC 25.353 (b)(2) 2. November 29, 2021 Hilcorp’s response to Notice of Proposed Enforcement 3. December 20, 2021 Hilcorp’s civil penalty payment receipt 4. January 6, 2022 Hilcorp’s response to AOGCC Decision and Order ORDERS STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue Anchorage Alaska 99501 Re: Failure to test BOPE HAK Rig 404, North Cook Inlet Unit B-02, Permit to Drill 197-210 ) ) ) ) ) Other Order 190 Docket Number: OTH-21-053 December 29, 2021 DECISION AND ORDER On November 16, 2021 the Alaska Oil and Gas Conservation Commission (AOGCC) issued a Notice of Proposed Enforcement Action (Notice) to Hilcorp Alaska, LLC (Hilcorp) for violating the provisions of 20 AAC 25.285(f)(2) (BOPE testing) by failing to perform a function pressure test of the BOPE blind rams. The Notice proposed a specific corrective action and a $25,000 civil penalty under AS 31.05.150(a). Summary of Proposed Enforcement Action: The Notice proposed a civil penalty of $25,000 for violating the provisions of 20 AAC 25.285(f)(2). The Notice also proposed that Hilcorp submit a detailed written explanation that describes how recurrence of this violation will be prevented in future operations. Violation - Failure to Comply with Sundry Approval Conditions: Hilcorp Alaska, LLC (Hilcorp) performed well workover operations on North Cook Inlet Unit (NCIU) B-02 between April 30, 2021 – July 7, 2021, pursuant to sundry permit 321-146, approved on April 8, 2021. The workover was performed with HAK Rig 404. Blowout prevention equipment (BOPE) was function pressure-tested to 2500 psi on May 21, 2021. On May 22, 2021, the casing was perforated with wireline-conveyed perforating guns. When the spent guns were pulled to surface, the rig’s BOPE blind rams were closed as part of a routine operation before disconnecting the wireline lubricator from the BOPE stack. After disconnecting the lubricator, it was discovered that the blind rams had been closed on the spent perforating gun toolstring. The blind rams were then opened, and the wireline tools removed from the well. Closing the blind rams on a spent perforating gun may have compromised its ability to seal the wellbore in the event of a well control incident. Normal operations were resumed without first function pressure-testing the BOPE blind rams. Multiple wellbore entries were performed, including seven wireline runs, running 3-1/2” tubing for remedial cementing operations and running 4-1/2” completion tubing, before the BOPE blind rams were tested. The BOPE was function pressure-tested to 2500 psi during the next scheduled weekly BOPE test, on May 27, 2021, five days after closing the blind rams on the wireline tools. The blind rams successfully passed the function pressure test. Failing to function pressure-test the BOPE before the next wellbore entry after routine use of that equipment may have compromised its effectiveness is a violation of 20 AAC 25.285(f)(2). Other Order 190 December 29, 2021 Page 2 of 3 Mitigating Circumstances: The factors in AS 31.05.150(g) were considered in determining the appropriate penalty. The potential seriousness of the violation, benefits Hilcorp realized as a result of the violation, and need to deter similar behavior in future operations are the factors which most heavily influence AOGCC’s decision in imposing the $20,000 penalty assessed for the initial violation. Mitigating circumstances included no injury to the public or the environment as a result of the non- compliance, which led the AOGCC to include a per-day assessments of $1000/day. Findings and Conclusions: The regulations are clear on requirements for testing BOPE before the next wellbore entry after routine operations may have resulted in damage to BOPE. In addition to violating 20 AAC 25.285, AOGCC finds that function pressure testing the blind rams after closing them on a wireline toolstring is a good oilfield engineering practice and is an expectation of a prudent operating company, as required in 20 AAC 25.526 (Conduct of Operations). Hilcorp violated 20 AAC 25.285(f)(2) at NCIU B-02 by failing to function pressure-test the BOPE before the next wellbore entry after routine use of that equipment may have compromised its effectiveness. Hilcorp has not disputed the findings in the Notice and has stated by letter received on November 29, 2021 that it will pay the civil penalty proposed by AOGCC. Hilcorp has not provided any information that would warrant changing the penalty amount. In their November 29, 2021 letter, Hilcorp provided the following corrective actions to prevent recurrence: x The situation has already been reviewed and discussed with all Hilcorp Alaska Operations Engineers and Drilling Engineers in the monthly meeting. x Additionally, it is being reviewed with all rig crews in pre-tour meetings. The intent is to remind engineers and rig crew personnel of the potential for serious consequences and discuss what should be done to ensure the BOPE remains fully functional. The AOGCC notes that Hilcorp’s proposed actions to prevent recurrence appear unlikely to prevent recurrence in the long term as personnel change out. Now Therefore It Is Ordered That: Hilcorp is assessed a civil penalty in the amount of $25,000 for violating 20 AAC 25.285(f)(2). Within 10 days of the date of AOGCC’s final decision, Hilcorp shall provide a detailed written explanation that describes how it intends to sustainably prevent recurrence of this violation over the long term, assuming employee turnover will occur. This explanation is requested under 20 AAC 25.300. As an Operator involved in an enforcement action, Hilcorp is required to preserve documents concerning the above action until after resolution of the proceeding. Other Order 190 December 29, 2021 Page 3 of 3 Done at Anchorage, Alaska and Dated December 29, 2021. Jeremy M. Price Jessie L. Chmielowski Chair, Commissioner Commissioner cc: AOGCC Inspectors Phoebe Brooks (AOGCC) RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10-days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. Jeremy Price Digitally signed by Jeremy Price Date: 2021.12.29 13:59:48 -09'00' Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2021.12.29 15:08:45 -08'00' Bernie Karl K&K Recycling Inc. P.O. Box 58055 Fairbanks, AK 99711 Mailed 12/29/21 SJC 1 Carlisle, Samantha J (OGC) From:Carlisle, Samantha J (OGC) Sent:Wednesday, December 29, 2021 2:13 PM To:AOGCC_Public_Notices Subject:Other Order 190 (Hilcorp, NCIU) Attachments:other190.pdf Failure to test BOPE HAK Rig 404, North Cook Inlet Unit B-02, Permit to Drill 197-210 Samantha Carlisle Executive Secretary III Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 (907) 793-1223 INDEXES Hilcorp Alaska, LLC Dan Marlowe, ASC Operations Manager 3800 Centerpoint Dr., Suite 1400 Anchorage, Alaska 99503 January 6, 2022 Chairman Jeremy Price Commissioner Jessie Chmielowski Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, Alaska 99501 VIA EMAIL AND CERTIFIED MAIL Subject: Docket Number: OTH-21-053 Notice of Proposed Enforcement Failure to Test BOPE HAK Rig 404 North Cook Inlet Unit B-02 (PTD 1972100) Dear Chairman Price and Commissioner Chmielowski, Hilcorp Alaska, LLC (Hilcorp) received the above referenced Notice of Proposed Enforcement on November 16, 2021. Hilcorp has paid the civil penalty outlined and responded with specific actions to prevent recurrence on November 29, 2021. The Decision and Order from AOGCC was received by Hilcorp on December 29, 2021. In the Order, AOGCC required Hilcorp to “…provide a detailed written explanation that describes how it intends to sustainably prevent recurrence of this violation over the long term, assuming employee turnover will occur…” Please find below detailed steps that have been or will be taken to prevent recurrence, with added measures to prevent recurrence in the event of employee turnover: x The situation has already been reviewed and discussed with all Hilcorp Alaska Operations Engineers and Drilling Engineers. x Additionally, it is being reviewed with all rig crews in pre-tour meetings. The intent is to remind engineers and rig crew personnel of the potential for serious consequences and discuss what should be done to ensure the BOPE remains fully functional. x Furthermore, Hilcorp has reached out to local Well Control Instructors (Martin Walters, Avram Levy) to request that they add an additional segment to their curriculum. This segment will cover situations where the BOPE are closed on something that they are not designed to close on and will instruct/remind that the BOPE should be re-tested as soon as possible in the event of such a situation. The instructors have agreed to add the segment to their curriculum. x Hilcorp has internally communicated these lessons learned amongst our staff. Adding the curriculum to the local Well Control classes will ensure that everyone who holds a valid Well Control Certificate will be trained on this specific issue every two years. By Samantha Carlisle at 8:43 am, Jan 06, 2022 x Well Control training covers our Operations Engineers, Drilling Engineers, Wellsite Supervisors, Drillers, and Toolpushers. Additionally, this training will benefit other companies in Alaska whose employees hold valid Well Control Certificates and safeguard the local Industry as a whole from making similar mistakes. The combination of addressing current employees plus adding to the Well Control curriculum ensures that we will capture and impart knowledge on a rolling basis both internally and externally. If a current employee leaves and a new employee joins, the new employee will still be informed of the important lessons pertaining to this situation. If you have any questions, please call me at 907-283-1329. Sincerely, Dan Marlowe ASC Operations Manager Digitally signed by Dan Marlowe (1267) DN: cn=Dan Marlowe (1267), ou=Users Date: 2022.01.05 16:07:22 -09'00' Dan Marlowe (1267) THE STATE 'ALASKA GOVERNOR NUKE 1)L NLE zkVY November 16, 2021 CERTIFIED MAIL — RETURN RECEIPT REQUESTED 7018 0680 0002 2052 7965 Mr. Dan Marlow Hilcorp Alaska, LLC P.O. Box 244027 Anchorage, AK 99524-4027 Re: Docket Number: OTH-21-053 Notice of Proposed Enforcement Failure to Test BOPE HAK Rig 404 North Cook Inlet Unit B-02 (PTD 1972 100) Dear Mr. Marlow: Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue RECEIVED Anchorage, Alaska 3572 Main; 907,279.7.279.1433 Fax; 907.275.7542 ULC 9 a 2021 www.aogcc.alaska.gov AOGCC Pursuant to 20 AAC 25.535, the Alaska Oil and Gas Conservation Commission (AOGCC) hereby notifies Hilcorp Alaska LLC (Hilcorp) of a proposed enforcement action. Nature of the Apparent Violation or Noncompliance (20 AAC 25.535(b)(1)) Hilcorp failed to comply with 20 AAC 25.285(f)(2). Basis for -Finding the Violation or Noncompliance 20 AAC 25-535(b)(2)). Hilcorp Alaska, LLC (Hilcorp) performed workover operations on North Cook Inlet Unit Well B-02 between April 30, 2021—July 7, 2021, pursuant to sundry permit 321-146, approved on April 8, 2021. The workover was performed with HAK Rig 404. Blowout prevention equipment (BOPE) was function pressure -tested to 2500 psi on May 21, 2021. On May 22, 2021, the casing was perforated with wireline -conveyed perforating guns. When the spent guns were pulled to surface, the rig's BOPE blind rams were closed as part of a routine operation before disconnecting the wireline lubricator from the BOPS stack. After disconnecting the lubricator, it was discovered that the blind rams had been closed on the spent perforating gun toolstring. The blind rams were then opened, and the wireline tools removed from the well. Closing the blind rams on a spent perforating gun may have compromised its ability to seal the wellbore in the event of a well control incident. Normal operations were resumed without first function pressure -testing the BOPE blind rams. Multiple wellbore entries were performed, including seven wireline runs, running 3-112" tubing for remedial cementing operations and running 4-112" completion tubing, before the BOPE blind rams were tested. The BOPE was function pressure -tested to 2500 psi on May 27, 2021, five days after closing the blind rams on the wireline tools. Failing to function pressure -test the BOPE before the next wellbore entry after routine use of that equipment may have compromised its effectiveness is a violation of 20 AAC 25.285(1)(2). Docket Number: OTH-21-053 November 16, 2021 Page 2 of 3 Proused Action f2O AAC 25.535(b)(3)). For this violation, the AOGCC intends to impose a civil penalty on Hilcorp under AS 31.05.150 in the amount of $25,0001 ($20,000 for the initial violation plus $1,000 per day for the five days in between closing the wireline tools on the blind rams and function pressure -testing the BODE). In addition, within fourteen days of receipt of this letter (next business day if the due date falls on a weekend), Hilcorp is requested to provide AOGCC with a written response describing the steps that have been or will be taken to prevent recurrence on Hilcorp operated rigs in Alaska. The information request is made pursuant to 20 AAC 25.300. Failure to comply with this request will be an additional violation. Ri hts and Liabilities 20 AAC 25.535 4 Within 15 days after receipt of this notification — unless the AOGCC, in its discretion, grants an extension for good cause shown — Hilcorp may file with the AOGCC a written response that concurs in whole or in part with the proposed action described herein, requests informal review, or requests a hearing under 20 AAC 25.540. If a timely response is not filed, the proposed action will be deemed accepted by default. If informal review is requested, the AOGCC will provide Hilcorp an opportunity to submit documentary material and make a written or oral statement. If Hilcorp disagrees with the AOGCC's proposed decision or order after that review, it may file a written request for a hearing within 10 days after the proposed decision or order is issued. If such a request is not filed within that 10 -day period, the proposed decision or order will become final on the 11th day after it was issued. If such a request is timely filed, the AOGCC will hold its decision in abeyance and schedule a hearing. If Hilcorp does not concur in the proposed action described herein, and the AOGCC finds that Hilcorp violated a provision of AS 31.05, 20 AAC 25, or an AOGCC order, permit or other approval, then the AOGCC may take any action authorized by the applicable law including ordering one or more of the following: (i) corrective action; (ii) suspension or revocation of a permit or other approval; and (iii) imposition of penalties under AS 31.05.150. In taking action after an informal review or hearing, the AOGCC is not limited to ordering the proposed action described herein, as long as Hilcorp received reasonable notice and opportunity to be heard with respect to the AOGCC's action. Any action described herein or taken after an informal review or hearing does not limit the action the AOGCC may take under AS 31.05.160. Questions regarding this letter should be directed to Bryan McLellan at 907-793-1226. Sincerely, Jessie L. Digitally signed by.lessleL Chmielowski -0021.11.tb1643:24 Chmielowski Jessie L. Chmielowski Commissioner cc: Phoebe Brooks Jim Regg Bryan McLellan 'AS 31.05.150(g) requires AOGCC to consider nine criteria in setting the amount of a civil penalty. Docket Number: OTH-21-053 November 16, 2021 Page 3 of 3 RECONSIDERATION AND APPEAL As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10 -days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date an 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 Rm. on the next day that does not fall on a weekend or state holiday. Uj Hilcorp Alaska LLC P.O.Box 61529 Hrnj.,ztnn TY 7790A -11;9Q Owner: 40012563 Check Date: 1 12114120211 Check Number: 420094279 ...... .... M 1900036446 12/01/2021 121321 $0.00 $25,000.00 RECEIVED DEC L u ctj�� AOGCC THIS CHECK IS PRINTED ON CHEMICALLY REACTIVE PAPER THAT HAS VISIBLE FIBERS AND A WATERMARK --HOLD TO LIGHTTO VIEW AMEGY BANK 35-1058 1131 Hilcorp Alaska LLC P.O.Box 61529 Houston TX 77208-1529 Void After 90 Dais Check No Check Date Check Amount 42009429 12/14/2021 *****$25,000.00 PAX Twenty -Five Thousand Dollars And Zero Cents TO STATE OF ALASKA THE AOGCC ORDER (I 333 WEST 7TH AVE ANCHORAGE AK 99501-3539 Authorized Signature' IML, 20094 29110 1: & 13 110 58 61: 0444140 7 748110 Hilcorp Alaska, LLC Dan Marlowe, ASC Operations Manager 3800 Centerpoint Dr., Suite 1400 Anchorage, Alaska 99503 11/29/2021 Commissioner Jessie Chmielowski Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, Alaska 99501 VIA EMAIL AND CERTIFIED MAIL Subject: Docket Number: OTH-21-053 Notice of Proposed Enforcement Failure to Test BOPE HAK Rig 404 North Cook Inlet Unit B-02 (PTD 1972100) Dear Commissioner Chiemlowski, Hilcorp Alaska, LLC received the above referenced Notice of Proposed Enforcement on November 16, 2021. Hilcorp will pay the civil penalty outlined. Please find below detailed steps that will be taken to prevent recurrence: x The situation has already been reviewed and discussed with all Hilcorp Alaska Operations Engineers and Drilling Engineers in the monthly meeting. x Additionally, it is being reviewed with all rig crews in pre-tour meetings. The intent is to remind engineers and rig crew personnel of the potential for serious consequences and discuss what should be done to ensure the BOPE remains fully functional. If you have any questions, please call me at 907-398-9904. Sincerely, Dan Marlowe ASC Operations Manager By Samantha Carlisle at 11:06 am, Nov 30, 2021 Digitally signed by Dan Marlowe (1267) DN: cn=Dan Marlowe (1267), ou=Users Date: 2021.11.29 11:18:25 -09'00' Dan Marlowe (1267) Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.govNovember 16, 2021 CERTIFIED MAIL – RETURN RECEIPT REQUESTED 7018 0680 0002 2052 7965 Mr. Dan Marlow Hilcorp Alaska, LLC P.O. Box 244027 Anchorage, AK 99524-4027 Re: Docket Number: OTH-21-053 Notice of Proposed Enforcement Failure to Test BOPE HAK Rig 404 North Cook Inlet Unit B-02 (PTD 1972100) Dear Mr. Marlow: Pursuant to 20 AAC 25.535, the Alaska Oil and Gas Conservation Commission (AOGCC) hereby notifies Hilcorp Alaska LLC (Hilcorp) of a proposed enforcement action. Nature of the Apparent Violation or Noncompliance (20 AAC 25.535(b)(1)). Hilcorp failed to comply with 20 AAC 25.285(f)(2). Basis for Finding the Violation or Noncompliance (20 AAC 25.535(b)(2)). Hilcorp Alaska, LLC (Hilcorp) performed workover operations on North Cook Inlet Unit Well B-02 between April 30, 2021 – July 7, 2021, pursuant to sundry permit 321-146, approved on April 8, 2021. The workover was performed with HAK Rig 404. Blowout prevention equipment (BOPE) was function pressure-tested to 2500 psi on May 21, 2021. On May 22, 2021, the casing was perforated with wireline-conveyed perforating guns. When the spent guns were pulled to surface, the rig’s BOPE blind rams were closed as part of a routine operation before disconnecting the wireline lubricator from the BOPE stack. After disconnecting the lubricator, it was discovered that the blind rams had been closed on the spent perforating guntoolstring. The blind rams were then opened, and the wireline tools removed from the well. Closing the blind rams on a spent perforating gun may have compromised its ability to seal the wellbore in the event of a well control incident. Normal operations were resumed without first function pressure-testing the BOPE blind rams. Multiple wellbore entries were performed, including seven wireline runs, running 3-1/2” tubing for remedial cementing operations and running 4-1/2” completion tubing, before the BOPE blind rams were tested. The BOPE was function pressure-tested to 2500 psi on May 27, 2021, five days after closing the blind rams on the wireline tools. Failing to function pressure-test the BOPE before the next wellbore entry after routine use of that equipment may have compromised its effectiveness is a violation of 20 AAC 25.285(f)(2). Docket Number: OTH-21-053 November 16, 2021 Page 2 of 3 Proposed Action (20 AAC 25.535(b)(3)). For this violation, the AOGCC intends to impose a civil penalty on Hilcorp under AS 31.05.150 in the amount of $25,000 1 ($20,000 for the initial violation plus $1,000 per day for the five days in between closing the wireline tools on the blind rams and function pressure-testing the BOPE). In addition, within fourteen days of receipt of this letter (next business day if the due date falls on a weekend), Hilcorp is requested to provide AOGCC with a written response describing the steps that have been or will be taken to prevent recurrence on Hilcorp operated rigs in Alaska. The information request is made pursuant to 20 AAC 25.300. Failure to comply with this request will be an additional violation. Rights and Liabilities (20 AAC 25.535(b)(4)) Within 15 days after receipt of this notification – unless the AOGCC, in its discretion, grants an extension for good cause shown – Hilcorp may file with the AOGCC a written response that concurs in whole or in part with the proposed action described herein, requests informal review, or requests a hearing under 20 AAC 25.540. If a timely response is not filed, the proposed action will be deemed accepted by default. If informal review is requested, the AOGCC will provide Hilcorp an opportunity to submit documentary material and make a written or oral statement. If Hilcorp disagrees with the AOGCC’s proposed decision or order after that review, it may file a written request for a hearing within 10 days after the proposed decision or order is issued. If such a request is not filed within that 10-day period, the proposed decision or order will become final on the 11th day after it was issued. If such a request is timely filed, the AOGCC will hold its decision in abeyance and schedule a hearing. If Hilcorp does not concur in the proposed action described herein, and the AOGCC finds that Hilcorp violated a provision of AS 31.05, 20 AAC 25, or an AOGCC order, permit or other approval, then the AOGCC may take any action authorized by the applicable law including ordering one or more of the following: (i) corrective action; (ii) suspension or revocation of a permit or other approval; and (iii) imposition of penalties under AS 31.05.150. In taking action after an informal review or hearing, the AOGCC is not limited to ordering the proposed action described herein, as long as Hilcorp received reasonable notice and opportunity to be heard with respect to the AOGCC’s action. Any action described herein or taken after an informal review or hearing does not limit the action the AOGCC may take under AS 31.05.160. Questions regarding this letter should be directed to Bryan McLellan at 907-793-1226. Sincerely, Jessie L. Chmielowski Commissioner cc: Phoebe Brooks Jim Regg Bryan McLellan 1 AS 31.05.150(g) requires AOGCC to consider nine criteria in setting the amount of a civil penalty. Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2021.11.16 16:43:24 -09'00' Docket Number: OTH-21-053 November 16, 2021 Page 3 of 3 RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10-days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday.