Caelus pays fine over reporting failure

Caelus Energy Alaska Inc. has paid $115,000 and taken corrective actions over violations at the Oooguruk unit, according to the Alaska Oil and Gas Conservation Commission.

The Texas-based independent “failed to report to AOGCC a pressure communication, failed to complete required monthly reports, and failed to complete required Mechanical Integrity (MIT) test in well ODSN-27,” according to a Feb. 4 ruling from the AOGCC.

The AOGCC notified the company about the problem on Jan. 12. The company did not contest the allegations, the corrective actions or the fine, according to the AOGCC.

The $115,000 fine covers four issues related to the well - $25,000 for failing to notify the AOGCC about a pressure communication in the well, $10,000 each for seven “significant pressure bleed events,” $10,000 for failing to provide required monthly pressure reports and $10,000 for failing to perform a required mechanical integrity test.

According to the AOGGC, records show “significant pressure anomalies” in the ODSN-27 well, which resulted in the initial violation and triggered the other violations.

“Although no injury to the public occurred, the seriousness of a potential wellbore failure, and the obvious threat it poses to both public health and the environment cannot be denied,” AOGCC Commissioner Cathy Foerster and Daniel Seamount wrote in their Feb. 4 order. “Caelus’ failure to comply with the fundamental wellbore mechanical integrity identification and reporting requirements raise the potential for similar behavior with more serious consequences making the need to deter similar behavior substantial.”

Having paid the fine and taken corrective actions, the company must now meet with AOGCC officials by the end of March to determine “root causes” for the violations.

Former operator Pioneer Natural Resources drilled the ODSN-27 well in 2012.

- Eric Lidji