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Alaska’s AG testifies on legacy wells Geraghty says state might have legal claim against federal government, but ‘negotiated solution’ for site cleanup is best option Wesley Loy For Petroleum News
Alaska Attorney General Michael Geraghty, testifying before a legislative committee April 3, laid out legal options to force the federal government to clean up so-called legacy wells on the North Slope.
He did not say the state intends to sue the feds, something the administration of Gov. Sean Parnell has done repeatedly.
In fact, Geraghty told the Senate Resources Committee he saw “a number of obstacles” with any legal action the state might bring.
While frustration over the legacy wells is understandable, Geraghty said a “negotiated solution” is preferable.
Resolution passes The legacy wells are located in and around the National Petroleum Reserve-Alaska.
Federal departments drilled some 136 exploratory wells and boreholes between 1943 and 1982. The drilling was done to assess the NPR-A’s petroleum potential, and to test arctic drilling concepts.
State drilling regulators and elected officials say the federal government never properly plugged and abandoned many of the wells, and some sites pose safety and environmental hazards.
The state officials contend the federal government wouldn’t tolerate private companies leaving well sites in such condition.
The Alaska Legislature has passed a resolution calling on the U.S. Bureau of Land Management, which oversees the petroleum reserve, to plug the legacy wells and reclaim the sites as soon as possible. The resolution, as amended, refers to the legacy wells as “travesty wells.”
“The feds have made billions in lease sales in the NPR-A and the outer continental shelf; they need to use a portion of that to do what’s right and clean up their mess,” said state Rep. Charisse Millett, R-Anchorage, lead sponsor of House Joint Resolution 6.
BLM officials have said they’re working on a “strategic plan” to deal with the legacy wells. They say 18 wells already have been plugged, and the government has spent almost $86 million since 2002.
‘Sovereign immunity’ In his testimony, Geraghty said the state might have a cause of action under the federal Resource Conservation and Recovery Act, which pertains to the handling of hazardous waste.
But a lawsuit under RCRA could be problematic, he said.
First, the BLM likely would assert “sovereign immunity” as a defense. And because many of the well sites are decades old, a statute of limitations could bar the state’s claims. Also, the BLM already has conceded it is responsible for the cleanup of the sites, Geraghty said.
“Simply seeking a declaration that BLM is legally responsible may not advance the ball that far,” he said.
The attorney general also said he questions whether a federal judge would mandate that BLM either alter its spending priorities or create new priorities.
“I suspect that is a step the court would be loath to take,” he said. “They might very well order BLM to conduct a cleanup, but I don’t believe a judge can require Congress to appropriate money.”
Geraghty testified at the request of the committee, chaired by Sen. Cathy Giessel, R-Anchorage.
Prior to the hearing, the committee sent Geraghty a letter posing a few questions, such as whether public or private entities other than the federal government could participate in a cleanup.
Geraghty said it might be possible to raise funds for legacy well cleanup through the sale of wetland “mitigation credits” to developers.
With regard to the BLM’s plans to determine the historic preservation eligibility of the oldest legacy wells, Geraghty said this wouldn’t prevent plugging and abandonment operations, or disposal of wastes.
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