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AOGCC sets first quarter 2001 regulatory cost charges; BP 78 percent of total
Kristen Nelson PNA News Editor
At a public meeting July 5, the Alaska Oil and Gas Conservation Commission set the regulatory cost charges operators will be billed for the first quarter of the fiscal year.
The regulatory cost charge is the method established by the Legislature to fund the commission and is based on production volumes for the preceding calendar year. Volumes include produced crude oil and gas and injected water.
BP had largest change BP Exploration (Alaska) Inc., as the new operator of the entire Prudhoe Bay field, as well as Milne Point and Badami, had the largest charge, some 78 percent of the total, just over half a million dollars.
Phillips Alaska — which operates the Kuparuk River field (Tarn, Tabasco, West Sak), had 18 percent of the total, some $110,000. The commission listed Phillips Petroleum separately, as the operator of the North Cook Inlet gas field, for a charge of $2,200.
Even the North Slope Borough, which operates gas fields which supply fuel for Barrow, was on the list, for $63.
Unocal’s share was 3.5 percent of total Unocal, largest of the Cook Inlet operators, accounted for almost 3.5 percent of the total, some $22,000.
Other Cook Inlet operators — Cross Timbers, Marathon and Forcenergy — combined account for less than half a percent of the state’s total production and had a combined regulatory cost charge of less than $2,500.
The billing is sent to field operators, who then apportion the amounts out according to field ownership.
The Legislature approves a budget for the AOGCC. From that amount, $2.86 million for fiscal year 2001 which began July 1, the commission subtracts an estimated amount for charges for drilling permits ($10,000 for fiscal year 2001), any remaining monies from the previous year ($190,000 estimated from fiscal year 2000 because of positions which were not filled for the entire fiscal year) and a $100,000 federal grant.
That leaves an estimated $2.56 million to be apportioned out to field operators in four quarterly installments. The first quarter is estimated and final adjustments are made before bills are sent out for the second quarter.
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