AOGCC recognizes USGS bonding exemption
Kristen Nelson Petroleum News
The U.S. Geological Survey has formally requested, and the Alaska Oil and Gas Conservation Commission has granted, a waiver from AOGCC bonding requirements.
The bonding is to ensure that wells are properly plugged and abandoned and to ensure that the state does not become responsible to P&A any abandoned or orphan wells.
USGS said in an April 21 request for waiving the bonding that USGS, along with the State of Alaska, plans to drill research core holes on the North Slope.
“USGS states federal law prohibits USGS from agreeing to provisions requiring insurance coverage or indemnification unless specifically authorized by the United States Congress,” the commission said in an April 27 order waiving bonding requirements when USGS acts as operator.
“Based on the status of the United States as a self-insured sovereign, a waiver of the bonding requirements” contained in the commission’s regulations is approved, the commission said in its order.
- KRISTEN NELSON
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