AOGCC fines UAF over geothermal well

The Alaska Oil and Gas Conservation Commission has fined the University of Alaska Fairbanks, Alaska Center for Energy and Power, for failure to conduct a required survey for its Pilgrim Springs 13-1 geothermal well, drilled in 2013.

In a May 26 decision and order the commission said ACEP was issued a drilling permit for the PS 13-1 geothermal well in August 2013. “As a condition of issuance of the permit, an inclination survey was specifically required for the wellbore.”

The commission said there is no dispute that a survey was required, with the requirement for the inclination survey to be completed at 500 feet and 1,000 feet measured depth included in a letter accompanying the permit, and “Inclination survey required” added to the permit to drill.

The commission said ACEP requested an informal review, which was held May 12. In writing and at the review ACEP said an inclination survey was not standard for its experienced geothermal consultant or driller and the survey was overlooked. ACEP also cited financial/logistical challenges. And said the commission approved its request to complete the well at 243 feet, and said that approval cured the failure to perform the survey.

The commission said that as operator of the well, “ACEP bears sole responsibility to understand and comply fully with all AOGCC regulations,” and those regulations require the inclination survey, which was also required by the drilling permit.

The commission also said ACEP did not disclose the lack of an inclination survey when it applied to change the well’s completion depth, so approval of the change did not constitute a waiver of the survey requirement.

And, financial challenges did not relieve ACEP of its obligation to acquire the survey, the commission said; it imposed a civil fine of $10,000 for failure to conduct the survey.

- Petroleum News