Great Bear responds to AOGCC action

In a response to an Alaska Oil and Gas Conservation Commission proposal to fine Great Bear Petroleum LLC for improper pressure testing of the surface casing of the company’s Alkaid No. 1 exploration well on the North Slope, Great Bear has commented to Petroleum News, defending the company’s position.

In an Aug. 6 email, Patrick Galvin, Great Bear’s vice president, external affairs, and deputy general counsel, told Petroleum News that his company disagrees that there was a violation of AOGCC regulations, but that the company had decided not to seek reconsideration of the agency’s decision. Galvin attributes the problem to inadequate communication between Great Bear and AOGCC when the tests were conducted.

“We understand AOGCC’s order to mean that they want to have more communication during the drilling process, and we will ensure that the new level of communication is implemented with future wells,” Galvin said.

As reported in the Aug. 9 issue of Petroleum News, AOGCC proposes a fine of $20,000 for, the agency said, the conducting of the pressure test in a manner that compromised the test results, for using unrealistic calculations to determine the well’s pressure kick tolerance, and for accepting a test result out of conformance with the test specification in the permit to drill the well.

Petroleum News received Great Bear’s response after the paper had gone to press for the Aug. 9 issue.

- ALAN BAILEY