RCA OKs Anchor Point Energy transfer

The Regulatory Commission of Alaska has approved the transfer of Anchor Point Energy LLC to a new owner, Cook Inlet Energy LLC.

APE’s primary asset is the nine-mile pipeline system serving the North Fork natural gas field on the southern Kenai Peninsula.

The APE transfer was part of Cook Inlet Energy’s February acquisition of the North Fork field.

The same partnership that formerly owned the North Fork field also owned APE. The partnership included Armstrong Cook Inlet LLC, GMT Exploration Co., Dale Resources Alaska LLC, Jonah Gas Co. and Nerd Gas Co.

Cook Inlet Energy is an Anchorage-based subsidiary of Miller Energy Resources Inc., a publicly traded company based in Tennessee.

The North Fork pipeline consists of two parallel nine-mile lines, each 4 inches in diameter, extending to an interconnection with an Enstar pipeline near Anchor Point.

Under Cook Inlet Energy ownership, APE will continue operating the North Fork line as “a regulated common carrier pipeline, accessible to all shippers on nondiscriminatory terms and conditions,” said a joint transfer application filed in February with the regulatory commission.

The transfer of APE to Cook Inlet Energy required regulatory approval, as APE holds an operating certificate from the commission.

In an Aug. 8 order, the commission found the transfer was in the public interest. As part of its review, the commission considered Cook Inlet Energy’s management ability and financial fitness.

The order said Cook Inlet Energy had stated the change of ownership “will have no adverse effect on Anchor Point Energy’s rates or terms and conditions of service.”

- Wesley Loy