RCA requires clarifications from BP, Hilcorp, on pipeline transfers

Kristen Nelson

Petroleum News

The Regulatory Commission of Alaska said in a June 12 order that it is requiring BP and Hilcorp to file more information on the proposed transfer of BP’s Alaska midstream interests to Hilcorp subsidiary Harvest Alaska.

The commission has set a Sept. 28 date for its decision on the midstream transfers. Upstream transfers in the sale, which was announced last August, are being reviewed by the Alaska Department of Natural Resources. That portion of the deal is expected to close June 30.

The companies filed additional information requested by RCA Dec. 23.

That information, the commission said, included the purchase and sale agreement governing the acquisition of BP’s Alaska assets. The commission said the parties requested, and it granted, confidential treatment of the purchase and sales agreement.

The companies have revised the financial terms, and RCA said it received a copy of the revised agreement May 4, but said while it appreciated the information, some of it “was not submitted in a manner that eases our review of issues we required into,” and cited the purchase and sales agreement and the amendment as an example.

“The amendment replaces certain sections of the original purchase and sales agreement and includes over 400 pages of new exhibits. Rather than restating the purchase and sales agreement, the amendment adds 429 pages to the 395 pages of the original purchase and sales agreement. No concise narrative of the changes in the financial terms of the agreement was submitted with the revised purchase and sales agreement,” RCA said.

The commission is now requesting detailed explanations of the amended purchase and sales agreement; detailed explanations of corporate guaranties; and detailed explanations of organizational information.

RCA is requesting additional detail related to the TAPS Carriers’ liabilities for major expenditures and wants to be copied on continuing financial information which Harvest Alaska is required to provide to BP, and to receive copies of all previous and current versions of financial assurances agreements between Harvest and the Alaska Department of Natural Resources.

The deadline for providing the documents and responses is June 26.

- KRISTEN NELSON