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Pioneer fined for unauthorized injection
Elizabeth Bluemink Anchorage Daily News
Pioneer Natural Resources, the sole independent oil producer on the North Slope, paid a $10,000 fine the week of Sept. 13 for injecting an unapproved chemical into its oil reservoir last May.
The violations involve glycol, which Pioneer was using as an anti-freeze fluid in a water supply line. Glycol is commonly injected into oil reservoirs on the North Slope but Pioneer had not sought or received permission to do so.
The glycol violations were initially reported by an employee whistleblower. Pioneer initially denied the allegations, but after concluding an internal investigation it told regulators that it had improperly injected roughly 45,000 gallons of a glycol-water mixture into the reservoir. The injections happened on two days.
$10,000 fine paid The Alaska Oil and Gas Conservation Commission sent a letter to Pioneer in late August proposing a $10,000 fine.
Pioneer did not contest the fine and sent its payment to the state regulator the week of Sept. 13.
Pioneer said in a statement Sept. 15 that it reported the violations as soon as the company confirmed they had happened and it has received conditional approval from the commission to inject glycol in the future.
The AOGCC is still investigating other allegations reported by the whistleblower, Mike Kelley, who quit his job at the company soon after making the accusations.
Among other accusations, Kelley claimed the company covered up spills, injured wildlife and created unsafe conditions for workers.
Kelley further alleged that the AOGCC neglected its duty to regulate the company. For that and other reasons, the commission hired an external investigator, Robert Shoaf, to handle the case. His report to the agency is expected next week.
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