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BP Exploration (Alaska) amends Northstar development plan reflecting timing change Right-of-way lease expected in August; materials ready to go for island construction; rig will begin production drilling in first quarter 2001 Kristen Nelson PNA News Editor
Materials for the island at Northstar are ready to go, BP Exploration (Alaska) Inc. told the state in a May 1 update, and engineering and permitting activities are progressing. Several environmental suits against the project are also pending.
Fabrication of island slope protection blocks is complete and the blocks are staged on the North Slope. Procurement of materials for the island is complete and gravel was purchased from the state on March 15.
Engineering and procurement of infrastructure is approximately 90 percent complete. Pipeline procurement is partially complete. Pipe has been purchased and is staged in Fairbanks and pipe bends are being fabricated in the Seattle area.
Engineering of the process facility is approximately 60 percent complete with detailed engineering scheduled for 1999. Process facility fabrication and assembly will occur in 2000. Amended development plan State permits have been issued except for the right-of-way lease for the pipeline which is expected to be issued in August.
BP has submitted an amended plan of development for the Northstar unit to reflect changes in development timing. The state Department of Natural Resources Division of Oil and Gas noted in accepting the amended third plan of development that several factors have impacted the timing of development activities at Northstar — including permitting delays, litigation and the economics of low oil prices.
The amended third plan of development provides for oil production in the fourth quarter of 2001, approximately six months later than provided for in the third plan. Construction, mobilization plans An ice road will be built in the fourth quarter of 1999 to support island construction, which will be completed in the third quarter of 2000. An ice road will be built in the first quarter of 2001 to support pipeline construction and to mobilize the drilling rig to the island. Construction of the pipeline will be completed by the third quarter 2001. Infrastructure will be sealifted in the third quarter of 2000 and installed in the fourth quarter of 2000; process facility and remaining infrastructure will be sealifted in 2001; installed in the third quarter; and commissioned in the fourth quarter 2001.
Nabors Alaska Drilling Inc. rig 33E has been modified and will be mobilized to the island by ice road in the first quarter of 2001; production drilling will begin in that quarter; first oil production is anticipated in the fourth quarter 2001. Pending litigation Greenpeace has challenged Northstar on several fronts, BP told the state in its May 1 amendment to the third plan of development, among them:
• Dec. 31, 1998, petitioned Alaska Coastal Policy Council to overturn proposed consistency determination; council dismissed petition Feb. 4; March 8, decision appealed to Alaska Superior Court. Court granted BP Exploration (Alaska)’s motion to intervene on March 25; state and BP answered the complaint on April 5.
BP said the court will direct the Division of Governmental Coordination to assemble the administrative record and will issue a schedule for the filing of briefs.
• Feb. 22, Greenpeace filed an administrative appeal challenging the Department of Natural Resource’s decision to approve ice road construction; denied March 1; appealed to Commissioner. If appeal denied, Greenpeace could appeal to Alaska Superior Court.
• Feb. 22, Greenpeace filed an administrative appeal challenging the Department of Natural Resource’s decision to allow water withdrawal; appeal denied as untimely by Division of Mining and Water on March 10; decision could be appealed to Commissioner; if denied, could be appealed to Alaska Superior Court.
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