|
SESM gets good news
Latchem’s Prudhoe natural gas treatment plant almost unstuck after 2 years
Kay Cashman Petroleum News
On Sept. 16, Ray Latchem, president of SES Midstream LLC, or SESM, received a final finding and decision reinstatement on Alaska lease 421361 from the Alaska Department of Natural Resources’ Division of Oil and Gas.
The Division told Latchem that the final finding and decision updates the prior final finding and decision dated July 23, 2020, that was the subject of a DNR’s Commissioner’s recension letter on Aug. 19, 2020, a director of Division of Mining, Land and Water letter on Jan. 22, 2021, and the subsequent Appeal No. 21-002.
Subject to the remand order in SESM’s Jan. 29, 2021, Appeal No. 21-002 to then-DNR Commissioner Corri Feige, the division proposes to issue a 25-year negotiated lease under AS 38.05.070(d) to SESM for the construction of a natural gas treatment and processing facility in Deadhorse, Alaska northwest of the Spine Road and west of the intersection with the Sag River Road.
Latchem told PN Sept. 23 that he is “quite pleased” with Acting DNR Commissioner Akis Gialopsos’ decision.
The proposed North Slope lease site will encompass approximately 13.2 acres. SESM intends to install a gravel pad that will cover approximately 8.6 acres. The gas processing facility will provide sales quality natural gas for use by area operators and to Norgasco, the local natural gas distribution company, run and owned by Latchem and his family.
Background: SESM, Latchem Background on SESM’s situation at the time of the appeal can be found in the March 7, 2021, issue of Petroleum News, page 7, titled “Prudhoe gas treatment plant hits snag: SES Midstream appeals division’s decision on Deadhorse lease to DNR commissioner; Ray Latchem says project is shovel ready.”
Latchem’s history with natural gas projects in Alaska can be found in the May 2, 2021, issue of PN, page 8: “Working small-scale natural gas in Alaska: ‘No rate increase in 30 years,’ brags Deadhorse gas utility Norgasco; founder forms company to scrub CO2, H2S from product.”
Pipeline easement On Sept. 23, the division posted a public notice on SESM’s gas supply pipeline private non-exclusive easement, asking for comments. The comment deadline is 4:30 pm Alaska Standard time on Oct. 23.
The division said it had received an application from SESM, requesting authorization to construct a gas supply line on state land on the North Slope.
The agency said the proposed supply line and easement will be adjudicated under AS 38.05.850.
SESM is proposing to construct and operate a gas supply line between a currently abandoned line operated by Hilcorp North Slope LLC, and SESM’s planned gas treatment facility, the notice said.
“Up to six million cubic feet of gas per day may transit from Flow Station 1 through the gas supply line to the gas treatment facility. The proposed easement measures 300 feet long and 50 feet wide, with a total easement acreage of 0.344 acres,” the notice said.
According to SESM’s application, the easement is in the Greater Prudhoe Bay unit, totally contained within the 13-acre Tract C.
SESM said the “easement is sought to authorize a short connector pipe between a GPBU field gas pipeline and a planned small gas treating facility that will serve the Deadhorse industrial community.”
Expected construction start date for the gas supply line is June 2024 and the end date is July 2024.
The method of construction is described in the application as “conventional welded steel piping will be used, per industry standards, including API and PHMSA regulations.”
Editor’s note: See related story in the Sept. 4, 2022, issue of Petroleum News titled “Alaska CNG delivering compressed natural gas.”
| 