Commission sets meeting to discuss regulations for old Cook Inlet fields

Kristen Nelson

The Alaska Oil and Gas Conservation Commission has set a hearing date of April 20 to take public comment on regulations to implement House Bill 380, passed last session, which provides for a temporary reduction of royalty on oil and gas produced from Cook Inlet fields discovered before Jan. 1, 1988, and either undeveloped or shut in at least from Jan. 1, 1988, through Dec. 31, 1997. Fields identified in the legislation as eligible for a 5 percent royalty on the first 25 million barrels or oil and the first 35 billion cubic feet of gas include Falls Creek, Nicolai Creek, North Fork, Point Starichkof, Redoubt Shoal and West Foreland.

As part of that legislation the commission was given the responsibility to review plans submitted by lessees demonstrating “best efforts to employ residents of this state, consistent with law, and to contract with firms in this state for work in connection with the development of the field, including the fabrication and installation of required facilities, whenever feasible.”

Regulations proposed describe required contents and completeness for plans and establish procedures for public hearings.

In a separate matter, the commission approved minor revisions to its proposed regulation revision at a meeting April 6. Those regulations are expected to be sent to the Department of Law for review in the near future.