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Division schedules additional hearing on Donkel appeal
Kristen Nelson PNA Editor-in-Chief
Division of Oil and Gas Hearing Officer Jim Hansen said Aug. 20 that he has tentatively decided to affirm the Department of Natural Resources’ 1999 decision on Unocal’s 1998 application for DNR approval of the shallow Tyonek gas reservoir participating area, but said he will hold an additional hearing on the matter Oct. 29.
The Division of Oil and Gas approved a Shallow Tyonek gas reservoir participating area, but for a smaller area than Unocal had proposed. The division said technical data submitted by Unocal did not support its interpretation that hydrocarbons from the northern lease, ADL 369116, would be produced through the North Middle Ground Shoal unit facilities on the southern lease, ADL 17595.
Suit filed in 2000 Daniel Donkel, Robert Bolt, George Kasper and John Does 1 through 91 brought suit in Superior Court against DNR in 2000 and Judge Sigurd Murphy remanded the case to DNR in March “with directions to reconsider whether the Shallow Tyonek Gas Reservoir Participating Area originally proposed by Unocal should be approved. If DNR does not intend to approve the Participating Area proposed by Unocal, then before making a final decision rejecting Unocal’s proposed Participating Area, DNR must provide notice and hearing to all working interest, royalty and overriding royalty owners in accordance with 11 AAC 83.371.”
The Division of Oil and Gas held a hearing June 25 as required by the court.
Donkel, Bolt and Kasper have also appealed the court’s decision to the state Supreme Court, arguing that the court “erred by failing to rule that the Department of Natural Resources has a mandatory duty to include lease ADL 369116 in a natural gas Participating Area…”
Mertz, Gottstein represent Donkel Donkel is represented by Douglas Mertz of Juneau and Jim Gottstein of Anchorage.
Hansen told Mertz and Gottstein in an Aug. 20 letter that he is denying motions the attorneys made at the June hearing for continuance, stay, issuance of subpoena and his disqualification.
Hansen told the attorneys that if they wished to submit pre-hearing briefs for the Oct. 29 hearing, those briefs would be due Oct. 21.
“The pre-hearing brief should set out all the facts, law and argument you want DNR to consider regarding the participating area,” Hansen said.
Witnesses may give live, written or telephonic testimony at the Oct. 29 hearing, he said, but must pre-file written testimony by Oct. 21, regardless of the manner in which they ultimately testify.
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