Alaska oil and gas watchdog again fines Hilcorp for Cook Inlet violation

Hilcorp’s Alaska office successful Midtown Anchorage are seen connected Feb. 7. The company, now a ascendant usability successful Alaska, announced it has struck a woody to grow its North Slope holdings by buying Eni’s Alaska assets. (Photo by Yereth Rosen/Alaska Beacon)

Alaska’s lipid and state regulator has fined Hilcorp Alaska $86,000 for an overdue trial intended to observe conditions that could origin a blowout.

According to a determination published Friday by nan Alaska Oil and Gas Conservation Commission, Hilcorp was required to execute a unit trial connected an injection good successful nan McArthur River lipid section nary later than January 2024, but nan trial didn’t return spot until March.

That unit trial is expected to return spot each 4 years, nether nan position of an area injection bid issued successful 1986 by nan commission, which is successful complaint of preventing lipid and state waste.

“Hilcorp’s nonaccomplishment to show nan mechanical integrity of nan M-30 injection good wrong the required four-year rhythm violated AIO 5. Violating an AOGCC order, for illustration AIO 5, makes Hilcorp liable for civilian penalties pursuant to AS 31.05.150(a),” Friday’s bid stated, referring to nan Alaska statute that nan committee operates under. 

AOGCC projected a $50,000 good for nan missed trial and an further $36,000 because Hilcorp kept nan injection good operating for 24 days pinch an overdue test.

“Hilcorp’s nonaccomplishment to comply pinch nan (1986) AOGCC bid raises nan imaginable for akin behaviour pinch much superior consequences,” Friday’s bid stated.

Since 2020, Hilcorp has been nan second-largest lipid and state shaper connected nan North Slope, down only ConocoPhillips Alaska.

Since nan commencement of this year, Hilcorp has been nan taxable of 4 different enforcement actions, AOGCC records indicate. During that period, location has been only 1 involving a different North Slope company, Oil Search Alaska.