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State amends Point Thomson decision DNR: Amendment removes provision calling for hearing, certain items of work which don’t apply to evaluation of proposed plans Kristen Nelson Petroleum News Editor-in-Chief
The Alaska Department of Natural Resources Division of Oil and Gas has amended its Sept. 30 decision denying ExxonMobil’s proposed 22nd plan of development for the Point Thomson unit on the eastern North Slope.
The division said in an Oct. 27 amended decision that it was removing a notice that it would hold a hearing under Article 21 of the Point Thomson Unit Agreement. The division said the decision “is amended to remove certain items of work and all references to Article 21 because they do not apply” to its evaluation of the unit operator’s proposed plan of development.
Under Article 21 a hearing was to be scheduled on the requirement for development operations.
The September decision provided notice under Article 21 of the unit agreement that unit operator ExxonMobil must initiate development operations within the unit by Oct. 1, 2007, and said the division would contact ExxonMobil to schedule a hearing on the issue to be held “not less than 30 days from the date of this decision.”
The division said in the original decision that it was also providing notice “under the individual lease agreements that the PTU leases containing certified wells” must begin production in paying quantities by Oct. 1, 2009. Hearing related to Article 21 Excerpts from Article 21 in the Sept. 30 decision give the director “authority to alter or modify from time to time at his discretion the rate of prospecting and development and the quantity and rate of production under this agreement…” The article also specifies that the director will only exercise powers in the section after giving notice to the unit operator and providing “opportunity for hearing” not less than 30 days from that notice.
The original decision also said oil and gas leases ADL 28382, ADL 47556, ADL 47560, ADL 47567, ADL 47473, ADL 312862 and ADL 343112 must begin producing in paying quantities by Oct. 1, 2009, and said notice was being provided separately to holders of those leases: Exxon Mobil Corp., ExxonMobil Oil Corp., Chevron U.S.A. Inc. and Devon Energy Production Co. LP. Appeal extended In a separate action, the division extended the 20 calendar day appeal period for the Sept. 30 decision because ExxonMobil did not receive the decision by certified mail until Oct. 5. The 20-day appeal period was restarted when the Oct. 27 amended decision was issued. If no appeal is filed, the decision becomes a final administrative order on the 31st day after issuance.
The Sept. 30 decision remains: The Point Thomson unit agreement is in default effective Oct. 1 for failure to obtain approval of a plan of development. ExxonMobil has 90 days from the Sept. 30 decision — until Dec. 29 — to submit an acceptable plan of development.
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