AOGCC to investigate oil production

The Alaska Oil and Gas Conservation Commission has told the Alaska Permanent Fund Corp. board that it “recognizes the importance of increasing oil and gas production” to the state, and will undertake an “assessment of the issues raised in your resolution.” The fund board requested in February that the commission conduct “an investigation of all maintenance and operational practices, including tariff and facility pricing that may have an impact (limiting) the amount of oil developed from state leases” and report to the fund board of trustees “the results of the investigation and any steps that the AOGCC is prepared to take to increase production from state leases.”

The commission’s March 12 letter was signed by commission Chair Sarah Palin and Commissioner Randy Ruedrich. The commission said its “authority to maximize ultimate recovery of oil and gas clearly places the general scope of the resolution with the Commission” but it said it has asked the Department of Natural Resources, Department of Revenue, Regulatory Commission of Alaska, Department of Environmental Conservation and Department of Law “to list their respective impacts and influences on increasing oil and gas production.”