Alaska oil and gas regulators fine Hilcorp more than $50,000 for violations

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Alaska oil and gas regulators fine Hilcorp more than $50,000 for violations
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The Alaska Oil and Gas Conservation Commission expressed concerns about the company’s record and behavior, saying in one order that it exhibited a ‘lack of good faith’ in its compliance efforts.

In one of the newly issued orders, the three-member commissiona $39,000 penalty against Hilcorp Alaska for violating three requirements associated with a well drilled in September at the Swanson River field.

Hilcorp also did not provide the agency with data about one of the tests, as required, until the agency requested it, the order says. Hilcorp did not challenge the penalty, after the agency issued a notice in November. Hilcorp said it would work with its crews to prevent future violations. It said it would inform engineering staff about “differences in processes” involving North Slope and Cook Inlet permits, the order said.

“Hilcorp’s compliance issues can only be addressed by reading the conditions of approval attached to each permit — regardless of where in the state of Alaska the permitted work occurs,” the order says.a $25,000 proposed fine against Hilcorp, for failing to conduct a required test associated with blowout-prevention equipment, according to that three-page order. Such equipment is used to prevent an oil spill or gas leak.

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