Murphy continues to appeal state’s Point Thomson decision

Kristen Nelson

Minority interest owner Murphy Exploration (Alaska) Inc. is appealing the Division of Oil and Gas’s decision on expansion-contraction of the Point Thomson unit.

Murphy has interests in two leases at the Red Dog prospect where BP Exploration (Alaska) Inc. has drilled an exploration well. Murphy told the state Oct. 24 that except for Murphy and TotalFinaElf, all of the owners in the two Red Dog leases — ADL 377012 and ADL 377013 — are also owners at Point Thomson.

Murphy said that in spite of repeated requests, ExxonMobil, unit operator at Point Thomson, has not addressed unit equities, although, Murphy said, ExxonMobil did offer Murphy an opportunity to ratify the Point Thomson unit agreement and unit operating agreement.

Murphy said it has not been provided with the information which would allow it to “make a businesslike decision on whether to align within the expanded PTU.” Murphy said it has asked ExxonMobil for “access to technical and commercial data (including reserves), development plans, costs, timing, etc., so that we could evaluate our position and make a businesslike decision on unit participation.”

ExxonMobil offered Murphy a 0.325 percent participation in the Point Thomson unit, but Murphy said “no technical justification for the figure was offered.”

Murphy, through its attorneys, told the state in November that it believes DNR has exceeded its statutory authority in expanding the Point Thomson unit to include the Red Dog leases, because it did so without consent of all the lessees.

Murphy argues that the state’s decision compels it to join the Point Thomson unit.

ExxonMobil told the state in November that there is nothing in the state’s decision which compels Murphy to join the unit. But, ExxonMobil said, the state’s leases do give DNR the authority to compel Murphy to join the Point Thomson unit.

ExxonMobil told the state that Murphy is requesting that it be provided data acquired at substantial cost, with no compensation by Murphy for that data.

In a December response to DNR, Murphy’s attorneys said ExxonMobil is still refusing to provide Murphy with information the company needs to name an informed decision.