ConocoPhillips takes AOGCC, DNR to court on well data release
 Click here to go to the full PDF version of this issue, with any maps, photos or other artwork that appears in
some of the articles.
Kristen Nelson Petroleum News
ConocoPhillips Alaska is challenging the Alaska Department of Natural Resources in court over release of well data for exploratory wells it drilled in the National Petroleum Reserve-Alaska. In separate litigation it is requesting a permanent injunction preventing the Alaska Oil and Gas Conservation Commission from releasing the data it holds from a group of NPR-A wells.
At issue is the state requirement that AOGCC release well data from exploratory and stratigraphic wells 24 months after the 30-day filing period after well completion unless the agency is notified that the DNR commissioner “has made a finding that the required reports and information from a well contain significant information relating to the valuation of unleased land in the same vicinity,” AOGCC regulations specify, in which case AOGCC will hold that information confidential beyond the 24-month period until notified by the DNR commission to release the data.
AOGCC has the data from the NPR-A wells because it issues drilling permits for all wells within the state, irrespective of land ownership, and those permits require data submission.
ConocoPhillips request In April 2020, ConocoPhillips Alaska asked the DNR commissioner to notify AOGCC that DNR recognizes that well data for the Stony Hill 1, Tinmiaq 7-9 and West Willow 1 wells, all drilled on federal leases in the National Petroleum Reserve-Alaska, must remain confidential indefinitely.
In November 2020, the commissioner’s office requested that ConocoPhillips provide additional technical information.
DNR Commissioner Corri Feige denied the request Oct. 26, 2021, and on Nov. 26 she denied a request for reconsideration.
On Dec. 28, ConocoPhillips appealed the commissioner’s decision in Alaska Superior Court.
On May 13, the company filed in U.S. District Court for a permanent injunction prohibiting AOGCC from releasing the data.
The commissioner’s decision In her Oct. 26 decision, Feige focused on the state’s criteria for keeping well records confidential - that there is unleased acreage within 3 miles of the well, or in cases where the distance is greater, that areas are not available for lease.
“Extended confidentiality is appropriate in some circumstances where there are exogenous events and unleased acreage in the vicinity of a well, but an operator does not have occasion to make competitive use of information they have gathered during the 24 month period,” she said. While regulations do not directly address lands beyond 3 miles, they provide that if lands within 3 miles are offered for lease and receive no bids, “extended confidentiality will not be provided,” Feige said.
Federal promises of confidentiality ConocoPhillips said in its Alaska Superior Court filing the commissioner “erred by refusing to grant an evidentiary hearing”; that the company had met its burden that the well data contains significant information relating to the value of unleased land in the vicinity of the well; that the wells were drilled on federal lands in the NPR-A under lease terms requiring the well data to be kept confidential during the term of the leases; and that the commissioner failed to exercise “her discretion to align state and federal approaches to well confidentiality for well data on federal lands.”
In its filing for a permanent injunction against AOGCC, the company argued the commercial value of the well data, telling the court it invested “tens of millions of dollars” exploring NPR-A, “drilling a series of wells on federal lands pursuant to federal leases under federal law.” The company said it made the investments based on “the federal government’s express confirmation that the highly valuable data obtained from this exploratory work” would be held confidential during the term of the company’s leases, “thus preventing competitors from taking unfair advantage of CPAI’s efforts.”
ConocoPhillips said it is entitled to confidential treatment of its well data under federal law and asked that the injunction protect “any and all present and future data obtained by CPAI” on federal leases.
Issue with wells on state land Last June, ConocoPhillips requested extended confidentiality for CD-595 and CD-594, exploratory wells drilled on state acreage in the Colville River unit.
Feige denied the request in an Oct. 26 decision.
She said ConocoPhillips identified unleased acreage within 5 miles of the wells.
Citing DNR regulations, Feige said the commissioner has discretion in the interests of the state to extend confidentiality if the company makes “a significant showing that the reports or information contain significant information relating to the valuation of unleased land beyond the three-mile radius.”
Feige said there are only small unleased areas within 3 miles of the wells, and it is not in the state’s interest to extend confidentiality because ConocoPhillips, which formerly held the nearest available acreage, “failed to produce from this acreage and maintain it beyond its primary term.”
She said DNR’s regulations do not directly address lands beyond 3 miles but do provide that when lands within 3 miles “are offered for lease and receive no bids, extended confidentiality will not be provided.”
- KRISTEN NELSON
| 