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October 2016

Vol. 21, No. 42 Week of October 16, 2016

Harvest applies to amend Milne ROW

KRISTEN NELSON

Petroleum News

The State Pipeline Coordinator’s Section of the Alaska Division of Oil and Gas has received an application from Harvest Alaska LLC to amend the right-of-way lease for the Milne Point Products Pipeline.

SPCS said in a Sept. 29 notice that the Milne line is currently allowed to provide common carrier services for the transportation of natural gas liquids.

Harvest, the managing member of the line, has applied for a change to allow the line to also carry natural gas.

The line is an 8-inch, 10.4-mile products pipeline, originating at the Oliktok Pipeline and terminating at the Milne central facilities pad.

The application was received in May when a related application was filed with the Regulatory Commission of Alaska to allow the line to provide common carrier natural gas transportation service on the line.

SPCS said Harvest anticipates a demand for natural gas in support of Milne Point field operations and the conversion would allow natural gas to be supplied for the facility’s generators.

No NGL customers

The Milne Point Products Pipeline is limited under its lease to transporting natural gas liquids, but currently has no customers for NGLs, Harvest Alaska told SPCS in its application, noting that the Oliktok Pipeline to which the line is connected “has been converted from an NGL pipeline to a natural gas pipeline.”

Harvest said Hilcorp Alaska, the Milne Point field operator, is looking into installing micro turbines at Milne and powering the turbines with natural gas from the product pipeline, and has also said it is looking at using natural gas for field operations in the future and asked that the pipeline “be available to provide natural gas transportation service.”

The Milne product line has not had any shippers for its NGL service for several years and has remained unused and Harvest said the Milne Point operator does not anticipate any need for NGLs from the pipeline in the foreseeable future and the pipeline does not know of any other potential NGL shippers.

The pipeline was originally designed to carry either NGLs or natural gas, making conversion relatively simple, Harvest said in its application. Pipeline design and construction would be reviewed, road crossing centralizers would be repaired and a hydro test performed.

SPCS is accepting comments on the application through Oct. 31.






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