Hearing On Buccaneer ‘Illegal’ Production This Week

Posted: January 29, 2014 at 7:40 am

There’s a public hearing in Anchorage tomorrow, where Cook Inlet Region, Inc. will argue that Buccaneer has been illegally producing natural gas from the Kenai Loop 1-1 and 1-3 wells. Neither CIRI nor Buccaneer would comment on the matter.

 

Jason Moore with CIRI said they’re prefer to have the issue decided by the AOGCC without bringing into the court of public opinion.

 

In paperwork filed with the AOGCC on October 8 of last year, CIRI claimed that “Buccaneer has been in violation of 20 AAC 25.055(b) since January 14, 2012, when it began regular production of natural gas from the KL 1-1 well even though the interests in Section 33, the governmental section where the well are located, had not been pooled.”

 

In layman’s terms, CIRI says Buccaneer was taking resources beyond the boundaries of the area they have leased, without providing payment for the surrounding landowners.

 

There were similar complaints with well 1-3, dating back to February 10, 2013.

 

CIRI isn’t the only subsurface owner, the State of Alaska has 120 acres in the area, and Alaska Mental Health Trust Authority has 320. Both have joined the complaint.

 

The Commission is being asked to order Buccaneer to establish an escrow account, with “funds sufficient to cover its/their past illegal production and all future production prior to the establishment and implementation of a pooling agreement.”

 

For full details on the hearing, click here.

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