AOGCC sets 2014 CO 360 hearing date

The Alaska Oil and Gas Conservation Commission has set a Jan. 7 public hearing date to gather information on disposition of gas liquids at the Prudhoe Bay oil pool.

The commission said field operator BP Exploration (Alaska) is disposing of natural gas liquids under Conservation Order 360 which the commission issued in the mid-1990s, and is transporting the maximum amount of NGL that can be handled by the trans-Alaska oil pipeline, with the remaining NGL used to create miscible injectant for enhanced oil recovery.

The commission noted that at a June 2012 hearing BP offered evidence that Prudhoe Bay oil production would increase if additional miscible injectant were available, testifying that for every barrel of propane used for MI, 0.6 barrels of oil was recovered and 0.7 barrels of propane recovered for re-use as MI.

The commission said that after the 2012 hearing BP advised the commission that the commission had misinterpreted BP’s evidence on the quantity of MI per injected barrel which is recoverable.

The commission said the purpose of the January hearing is to gather evidence on two issues: whether the commission should alter CO 360 to require that additional MI be used to extract oil; and whether the commission has misinterpreted BP’s 2012 testimony.

The commission said the outcome of the inquiry may lead it to reopen CO 360 and/or Other Order 75 (issued following the 2012 hearing) for amendment.

The hearing will take place at 9 a.m., Jan. 7, at the commission’s Anchorage office, with any pre-filed testimony to be offered due Dec. 6.

—Petroleum News