Pipeline transfers conditionally approved

The Regulatory Commission of Alaska has approved the transfer of five North Slope pipelines from BP Transportation (Alaska) to Hilcorp Alaska subsidiary Harvest Alaska, subject to the sale closing and approval of right-of-way transfers by the Department of Natural Resources.

The sale, announced April 22, involves all of BP’s interests in the Endicott and Northstar oil fields and a 50 percent interest in Liberty and Milne Point. Hilcorp Alaska will become operator at Endicott, Milne Point and Northstar.

Hilcorp became operator of Chevron’s Cook Inlet assets in 2012 and of Marathon’s Cook Inlet assets in 2013 and its subsidiary Harvest Alaska is the operator of the Cook Inlet pipelines associated with those assets.

RCA said in a Nov. 7 order that BP and Harvest filed joint applications in May, supplemented in September and October, for transfer of BP’s 98.58 percent interest in the Northstar oil and gas pipelines, BP’s 50 percent interest in the Milne Point natural gas liquids and oil pipelines and BP’s 57.89 percent interest and Amoco’s 10.57 percent interest in the Endicott pipeline.

BP and Harvest have told the commission that transfers of controlling interests to Harvest will not affect existing rates on the pipelines.

The commission said the transfers would be effective the later of the transactions closing or transfer or right-of-way leases by DNR.

Four of the pipelines are in use. The Milne Point natural gas liquids line was purged and disconnected in 2006 from the Oliktok Pipeline. The applicants told RCA that while the Milne Point NGL line was not currently in operation, there is a continuing need for the line, which may be required again to transport NGL in support of oil production.

- Kristen Nelson