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Providing coverage of Alaska and northern Canada's oil and gas industry
December 2018

Vol. 23, No.48 Week of December 02, 2018

BRPC has deal to use Alpine line

Kristen Nelson

Petroleum News

Alpine Transportation Co. has filed two applications with the Regulatory Commission of Alaska for approval of a connection agreement and permit between ATC and Brooks Range Petroleum Corp.

The application for a connection permit would allow BRCP’s Southern Miluveach crude oil sales pipeline to connect to ATC’s Alpine Pipeline. ATC is requesting that if a permanent connection permit is not granted by March 1, that RCA grant a temporary connection permit by that time. ATC is also requesting approval of the connection agreement between ATC and BRPC.

BRPC is in the process of developing the Southern Miluveach unit, estimated to hold 33 million barrels of proven and probable light oil reserves, with peak production estimated at some 15,000 barrels per day, ATC told the commission.

ATC said an approved plan of development for the unit “requires Brooks Range to install a crude sale pipeline and connect into the Alpine Pipeline infrastructure system by the first quarter of 2019.”

Six-inch crude sales line

BRPC has requested that ATC permit it to connect a 6-inch diameter sales line, some 0.2217 miles long, originating at the Mustang pad processing facility in the Southern Miluveach unit, to a tie-in to the common carrier Alpine Pipeline near Kuparuk River unit Drill Site 2S.

ATC said it and BRPC have a connection agreement which will become effective when RCA grants a connection permit and approves the connection agreement.

The connection involves a hot tap into the 14-inch diameter Alpine Oil Pipeline, a 34-mile line between Alpine Central Facility 1 in the Colville River unit and the inlet of the Kuparuk Pipeline Extension at Central Processing Facility 2.

Estimated cost of the connection is $1.05 million; additional annual operating expenses are estimated at $20,000 per year, with the cost of the connection to be paid by BRPC and additional operating costs included in ATC rates.

Mustang work underway

BRPC has been working to get the Southern Miluveach unit into production for a number of years.

A plan of development approval Oct. 31 by the Alaska Division of Oil and Gas notes that BRPC plans to use an early production facility at Mustang while it builds a permanent facility.

The division said BRPC’s work commitment for 2018 includes installation of any remaining on-pad piles in the third quarter; begin installation of Alaska-fabricated modules in June and complete installation by the end of 2018; conduct engineering for a ConocoPhillips Alaska-executed pipeline tie-in, with field work to begin in the fourth quarter of the year; telecoms survey work to be done in the summer; preparation of Mustang Pad for installation of the early production facility in third quarter; installation of early production facility in third quarter; and functional checkout of the early production facility - upon completion of installation - in the fourth quarter.

BRPC has told the division it plans to pre-produce its SMU M-02 well before converting it to gas injection, trucking oil and flaring gas during the period before the early production facility is in operation. The division denied the company permission to flare gas for an indeterminate period estimated at three to six months.






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