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Providing coverage of Alaska and northern Canada's oil and gas industry
May 2003

Vol. 8, No. 19 Week of May 11, 2003

Bill streamlines court appeals of AOGCC decisions

House Bill 290, introduced April 30 by Rep. Hugh ‘Bud’ Fate, R-Fairbanks, would simplify the judicial appeal process from Alaska Oil and Gas Conservation Commission decisions.

It repeals the superior court’s ability to stay or suspend a commission order pending review and a statutory requirement that “rules and practice and procedure in civil cases govern the proceedings for review and appeal” at the commission. The bill repeals a lengthy section in statute on questions which the court can consider on appeal and replaces it with a section which limits appeal “to the questions presented to the commission by the application for rehearing.” On May 8, the bill had not yet been scheduled for a committee hearing.

Donkel opposes bill

Alaska oil and gas lease investor Dan Donkel opposes the bill and has put plans for his new oil and gas exploration company on hold until after the Alaska Legislature decides whether or not it will pass HB 290. Donkel is appealing a commission decision on forced unitization in Cook Inlet to the courts now and is asking the commission to hold a hearing to force unitization of a North Slope lease, both leases in which Donkel held an overriding royalty interest.

Donkel told Petroleum News in October that he was forming Danco Oil & Gas Inc. to pursue opportunities in the inlet with royalty income he expected from Forest Oil’s Redoubt Shoal development, which went into production a few weeks later.

“I am going to monitor HB 290 closely and if they’re able to slide this in at the eleventh hour and pass it, I am going to stay out of Alaska. … If they slide this bill through I won’t be able to get justice in Alaska because the AOGCC will be able to control what I put in front of a court,” Donkel said.






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