Atofina demands its leases be included in Point Thomson unit

Kristen Nelson

The application by the majority owners to expand and contract the Point Thomson unit is being contested by Atofina Petrochemicals Inc., successor to PetroFina Delaware’s interest in six oil and gas leases across the top of the unit. Atofina has told the state it plans to file its own application to expand the unit to include those leases.

ExxonMobil did not include the Atofina leases in its final expansion-contraction plan submitted in January, although Atofina said it has had discussions with ExxonMobil about including the leases.

Atofina said that when ExxonMobil began plans to expand the unit last summer, five of the six leases in which Atofina has an interest were to be included. Atofina said ExxonMobil invited it to join the unit. Atofina said ExxonMobil said portions of the Atofina leases “were located within the Thomson Sand most likely structure oil water contact.”

Atofina said it has not yet responded to the offer to join the unit “because ExxonMobil has not clearly indicated how unit equity will be determined” or how a Point Thomson participating area would be configured.

Although the Atofina leases were initially included in the Point Thomson expansion plans, Atofina said successive plans excluded first a portion of the leases and then all of them.

In September, Atofina said, ExxonMobil submitted a draft plan to the state eliminating the northern half of three leases — leases which ExxonMobil had previously indicated to Atofina would be included in their entirety.

A November draft included the Atofina leases, along with a commitment to drill a well on that acreage. But, Atofina said, it had not been consulted about that commitment.

Then, in January, ExxonMobil told the state it would not include any of the Atofina leases north of the unit. Atofina said ExxonMobil said “it could not commit to drilling a well or commit to payment of penalty for failure to drill on land in which it owned no interest” but Atofina told the state it “was not afforded an opportunity by ExxonMobil to include a work commitment on its leases north of the unit.”

The plan is also being contested by Richard Wagner of Fairbanks, who told the division March 19: “Lease ADL 372256 expired by its own terms and conditions 11/30/98.” Wagner said he and others bid on tracts 79 and 80 — which cover the area of lease 372256 — in the Beaufort Sea Areawide 2000 sale, but the state returned the bids unopened.

The sale notice for the 2000 Beaufort Sea sale said tracts 79 and 80 had been deleted from the sale because the former lessee was appealing termination of lease ADL 372256.