July 02, 1999 --- Vol. 5, No. 32July 1999

AOGCC approves billing to industry for fiscal year budget

The Alaska Oil and Gas Conservation Commission met July 1 to approve cost allocations to industry.

The Legislature approved a new funding method for the commission last session. The commission’s budget is approved by the Legislature, and then the commission bills the operators of the state’s fields based on the volume of produced oil and gas and reinjected oil and water from that field.

The commission had planned to send a single bill, payable annually within 20 days. At industry request the commission agreed that the annual bill can be paid in quarterly installments.

Unocal looks at cross-inlet pipeline

Unocal Alaska Resources has begun discussions with regulators on permitting for an oil pipeline across Cook Inlet.

Kevin Tabler, Unocal’s land and government affairs manager, told PNA July 1 that the company is looking at the possibility of a line from its Granite Point tank farm to the east side of Cook Inlet.

Unocal has not, Tabler said, established that such a line would be economic, but has begun an analysis. No funds, he said, have been committed to build the line.

Tabler said that work has begun on pipeline route access and right-of-way acquisition discussions because before applying for a permit the company has to know what the route will be.

“We’re starting to look at what it would take to permit it and the lead time for permitting is so long in that whether this project happens or not you still have to start the process now,” he said.

The purpose of the line would be to extend the life of production from the company’s fields.

June ANS production down 8 percent from May

Transportation problems drove Alaska North Slope crude production down substantially in June.

Overall North Slope production averaged 1,031,564 barrels a day for June, down 7.8 percent from an average of 1,118,669 barrels a day for May.

Economist Denise Hawes of the Alaska Department of Revenue Division of Oil and Gas Audit said July 1 that there were storage tanks out of service at the Valdez marine terminal and that tanker delays occurred throughout the month.

The only field reporting increased production in June was Endicott, where production increased 4.6 percent, averaging 50,005 barrels a day in June compared to 47,816 barrels a day in May.

Declines led by Lisburne

The Lisburne production center, which processes oil from the Point McIntyre, Niakuk and Lisburne fields, had the sharpest percentage drop from May to June, down 14.3 percent. Lisburne averaged 118,468 barrels a day in June, compared to 138,232 barrels a day in May.

Milne Point had a 10.7 percent decrease from May to June, averaging 50,427 barrels a day in June compared to 56,441 barrels a day in May.

Production from the Kuparuk River field (including West Sak, Tarn and Tabasco) dropped 8 percent from May to June, averaging 250,352 barrels in June compared to 272,003 barrels a day in May.

Production at Prudhoe Bay was down 6.9 percent, averaging 562,312 barrels a day in June compared to 604,127 barrels a day in May.

Cook Inlet production was down 1.2 percent, averaging 29,799 barrels a day in June compared to 30,171 barrels a day in May.

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