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Expedited ruling on purchase requested ML&P, Chugach Electric ask Regulatory Commission of Alaska to rule on purchase of ConocoPhillips’ share of Beluga River field KRISTEN NELSON Petroleum News
Municipal Light & Power and Chugach Electric Association have asked the Regulatory Commission of Alaska for expedited approval of their purchase of ConocoPhillips Alaska’s interest in the Beluga River unit.
The companies announced the sale Feb. 8 (see story in Feb. 14 issue of Petroleum News). It will transfer 70 percent of ConocoPhillips’ Beluga River interests to ML&P and 30 percent to Chugach Electric.
ML&P already has an interest in the field, including a 33.33 percent working interest in the Beluga River unit deep oil and gas resources, and will have a 56.7 percent interest once the sale is complete; Chugach Electric will have a 10 percent interest. Hilcorp Alaska will continue to own one-third of the field and will take over as field operator.
RCA said the acquisition includes all gas resources, including 15,500 lease acres, 8,200 of which are in the Unit 1 participating area, and 7,300 acres held by the unit, Sterling and Beluga producing zones, and ConocoPhillips’ 67 percent working interest in deep oil and gas resources.
Once the sale is complete ML&P will own 56.7 percent of the gas leasehold interests down to 7,000 feet and 80 percent of the deep oil and gas leasehold interests below 7,000 feet and Chugach will own a 10 percent interest down to 7,000 feet and a 20 percent interest in the deep oil and gas resources below 7,000 feet.
Expedited consideration ML&P and Chugach are requesting expedited consideration of approval of the purchase and sale agreement, with a decision issued by April 21. The utilities also seek expedited approval for recovery of all costs associated with the acquisition. ML&P also seeks expedited approval to use cash from underlift settlement proceeds resulting from ConocoPhillips ceasing to be a Beluga River working interest owner; ML&P’s restricted deferred regulatory liability from gas sales fund; and ML&P’s restricted future gas purchases fund.
Account and ratemaking associated with the acquisition would be addressed in separate, subsequent proceedings for which ML&P and Chugach will submit separate filings.
The utilities do not request expedited consideration for those issues.
The commission said ML&P and Chugach have filed a petition for confidential treatment of the purchase and sale agreement with ConocoPhillips.
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