Legislature(2011 - 2012)BARNES 124
02/08/2012 01:00 PM House RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| HJR29 | |
| HB9 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 9 | TELECONFERENCED | |
| *+ | HJR 29 | TELECONFERENCED | |
| + | TELECONFERENCED |
HJR 29-BLM LEGACY OIL WELL CLEAN UP
1:04:17 PM
CO-CHAIR SEATON announced that the first order of business would
be HOUSE JOINT RESOLUTION NO. 29, Urging the United States
Department of the Interior, Bureau of Land Management, to plug
legacy wells properly and to reclaim the legacy well sites as
soon as possible in order to protect the environment in the
Arctic region.
1:05:15 PM
REPRESENTATIVE CHARISSE MILLETT, Alaska State Legislature, prime
sponsor, predicted that by bringing up the subject of legacy
wells HJR 29 will result in big impacts on the state of Alaska
because it will lead to discussions and agreements with the
federal government about the wells. She explained that between
1944 and 1981 approximately 136 wells were drilled in the
National Petroleum Reserve-Alaska (NPR-A). Some were drilled by
the U.S. Navy and some by the U.S. Geological Survey. Some of
the wells are being used as climate change mechanisms, but an
extraordinary number of these wells have not been capped or
mitigated at all. This has caused a lot of issues to arise with
the Alaska Oil and Gas Conservation Commission (AOGCC) because
the wells pose a risk to both wildlife and human life. The well
sites are unattractive with many barrels around them. Some
wells can no longer be found because they were just bore holes,
or have eroded, or have [sunken] into lakes. This is a black
eye on Alaska even though those wells were drilled by the
federal government. Therefore, HJR 29 urges the U.S. Bureau of
Land Management (BLM) to take responsibility and continue with
mitigation of the wells.
1:07:20 PM
REPRESENTATIVE MILLETT said she introduced HJR 29 because the
squeaky wheel gets the grease. There is disagreement between
BLM and AOGCC regarding how many wells have been capped, but she
said she thinks there are about 110 wells that are worrisome, 42
that are very worrisome, and she would like to see some
movement. She conveyed that according to the BLM, getting money
for this type of thing is difficult to do, especially without
the earmark process. However, Alaskans and the legislature can
take a lead in encouraging Congress to clean up these wells.
Creative solutions have been proposed to the BLM, such as giving
the land to the State of Alaska and then the state would clean
up the wells. She related that some producers have said they
would take over the mitigation costs if they could lease the
land for exploration.
REPRESENTATIVE MILLETT reiterated that the resolution would
start a dialogue amongst Alaskans, Congress, and BLM. She would
like to see the wells capped, mitigated, and [the land put] back
in the pristine condition that the state relies on its producers
to do. If any private producer left wells like these anywhere
in Alaska, the environmental groups would be screaming. She
said she has reached out to 24 environmental groups urging them
to get behind this cause, but has had little feedback. When a
"thimble of oil" is dropped on the North Slope it becomes a
front page story, but the NPR-A wells have yet to be a front
page story and only two articles have been written about the
issue. Raising awareness of these wells that have not been
remediated over the past 60 years is a long time in coming, and
it is sickening the way the lands have been left.
CO-CHAIR SEATON concurred that this is an important topic for
everyone.
1:10:01 PM
REPRESENTATIVE P. WILSON remarked how dare [the federal
government] request Alaska to do things when it does not do
those things itself.
REPRESENTATIVE MILLETT responded that this is in Alaska's
backyard. The federal government controls and restricts Alaska
on every aspect of development in the state, yet this is the
legacy that the federal government has left Alaska.
1:10:35 PM
REPRESENTATIVE KAWASAKI thanked the sponsor for bringing forward
the resolution. In regard to the third [whereas] on page 2, he
inquired whether any of the unplugged legacy wells have damaged
the surface vegetation, groundwater, fish, land mammals, and sea
mammals.
REPRESENTATIVE MILLETT replied that it is hard to equate because
not a lot of travel is done on the NPR-A. The North Slope
Borough has taken over some of the wells, she said, so the
borough could be contacted about the wells, the land transfer,
and the responsibility that now lies with the borough. However,
right now it is out in the wilderness. There is open diesel,
but no one is studying water contamination, so the effects on
wildlife will not be known until there is someone monitoring it.
1:11:47 PM
REPRESENTATIVE GARDNER thanked the sponsor for raising this
issue and writing the resolution. She shared that this issue
has been raised by many legislators when meeting with federal
officials in Washington, DC, but the officials have always
pleaded poverty and no money for amelioration. Noting the
various people to whom the resolution would be sent, she asked
whether there are others who should receive the resolution given
that funding is what is needed.
REPRESENTATIVE MILLETT agreed HJR 29 should go to everyone that
can be thought of, including every member of Congress and every
environmental organization. She said she would be accepting of
any suggestions from Representative Gardner regarding who the
resolution should be sent to.
1:13:04 PM
REPRESENTATIVE KAWASAKI asked whether well reclamation efforts
between the years 1944 and 1981 were not properly understood and
the requirements under law at that time were done, but now the
wells are out of compliance because the laws have changed since
then.
REPRESENTATIVE MILLETT concurred, but said that just as there
are legacy wells in other areas of the state that have been
drilled since 1959, the owner/operator of that well is still
required to make the well right to standards of today. It is a
case of what is good for one group of people should be good for
all groups of people. Anyone drilling in Alaska should be
responsible for the legacy that it leaves.
1:14:05 PM
CO-CHAIR FEIGE, observing that reporters were in the committee
room, said that maybe the press would pick up the story. He
requested the sponsor to review who she talked to regarding the
aforementioned land swap, and presumed that such a land swap
would include the subsurface as well as the surface.
REPRESENTATIVE MILLETT deferred to AOGCC commissioner Cathy
Foerster to provide the specific details because it was AOGCC
that was involved in these talks.
1:14:48 PM
REPRESENTATIVE HERRON suggested that the resolution be sent to
the boards of the Sierra Club, World Wildlife Fund, and all
other non-governmental organizations (NGOs) so that the boards
of the organizations could decide, not the executive director.
REPRESENTATIVE MILLETT replied that the resolution has been
sent, but sending the actual resolution, if it passes, is a
great idea. The more that awareness can be raised about this
issue, the more likely it will become a front page story.
REPRESENTATIVE HERRON suggested the committee work with the
sponsor to add all of those NGOs to the mailing list.
CO-CHAIR SEATON said that could come forward as an amendment
when the committee is considering amendments.
1:16:36 PM
REPRESENTATIVE P. WILSON commented that a way to get front page
news is for the State of Alaska to tell the federal government
that it will not pay any more money until something is done.
She inquired whether the sponsor has spoken to the governor
about how far he is willing to go regarding this issue.
REPRESENTATIVE MILLETT responded that the Department of
Environmental Conservation (DEC) is aware of this issue. She
allowed she probably has not given enough credit to the Alaska
contingent of the BLM, which has made this issue its number one
priority. She acknowledged that the Alaska BLM's hands are tied
through the federal appropriations process and said the wells in
Alaska are competing with many other sites around the U.S. from
the 1940s. Unfortunately, the State of Alaska cannot force the
federal government to abide by state law or pay fines. She
pointed out that offshore NPR-A lease sales have brought the
federal government $9 billion, but not a cent of that has been
re-appropriated back to this area.
1:18:19 PM
REPRESENTATIVE DICK commented that if environmental groups
really are concerned about cleaning up the environment this
should be a number one priority. But, if environmental groups
are only concerned about locking up land, then he can see where
the land is already locked up and there really is not a motive
to do anything further here. He said it seems to him that if
environmental groups really do get on board with the sponsor
that is proof that they really do care about cleaning up the
environment; if they do not, then maybe their motives should be
questioned.
CO-CHAIR SEATON reminded members that the resolution is a
communication from the legislature and the governor, if it
passes and the governor signs it. He said he agrees it should
be sent to parties that should be interested, but questions
their named involvement in a resolution from the legislature.
REPRESENTATIVE MILLETT offered her appreciation for the
committee's consideration of HJR 29 and said that as awareness
is raised it ensures that folks doing business in Alaska will be
expected to do it right and within the letter of the law. The
legacy wells on the NPR-A send a mixed message to people about
how pristine Alaska's environment is. Maybe the squeaky well
will get the cap.
1:21:10 PM
REPRESENTATIVE FOSTER inquired about the estimated cost for
plugging an open well.
REPRESENTATIVE MILLETT answered that the BLM has provided two
numbers - one for complete remediation and one for plugging.
These two different things can be done separately or at the same
time, she explained, but she does not have a total number. The
most concern is just plugging the open wells. The last well
cost around $16 million for that one well one time. Ideas have
been floated that a group of wells could be plugged at the same
time which would lower the cost [per well]. However, there is
no real handle on the total package of what it would cost to do
remediation.
CO-CHAIR SEATON moved to testimony from representatives of AOGCC
and BLM.
1:22:59 PM
CATHERINE FOERSTER, Engineering Commissioner, Alaska Oil and Gas
Conservation Commission (AOGCC), thanked the committee for
allowing her to testify in support of HJR 29. She said this
subject has been dear to her since becoming a commissioner in
2005. Responding to Representative Kawasaki's earlier question,
she said some of these wells were drilled after 1959, which was
when the AOGCC came into being and established proper
requirements for plugging and abandonment (P&A); therefore, the
wells drilled after that were out of compliance with AOGCC
regulations. In response to Representative Foster's earlier
question, she said that so far the cost per well for the BLM's
"attempts" to P&A and remediate has averaged $4.6 million per
site. She noted that she is saying "attempts" because BLM
claims to have plugged and abandoned and remediated more wells
than AOGCC acknowledges as having been done properly, so there
is a dispute in this regard. Responding to Representative
Gardner's earlier question, Ms. Foerster said that her sister-
in-law has suggested that today's PowerPoint presentation be put
on YouTube as a way to reach more people. Addressing Co-Chair
Feige's earlier question, she offered her understanding that the
land swap was grassroots to granite, so the mineral and surface
rights were swapped as was the remediation obligation. Thus,
the North Slope Borough now has responsibility for 33 of the 136
wells.
1:25:29 PM
REPRESENTATIVE GARDNER, in regard to the [state] leasing this
land for development, inquired what confidence could be had that
the state would not face a similar situation for any new wells
that are drilled, given the previous defiance of AOGCC's
regulations.
MS. FOERSTER replied that AOGCC has not had any problems with
any operators in the state of Alaska other than the federal
government. She added that the federal government is not taking
out any leases from AOGCC and has not come to AOGCC in the last
year and a half for a permit to drill.
1:26:36 PM
MS. FOERSTER began reviewing the photographs in her PowerPoint
presentation, explaining that between the mid-1940s and the
early 1980s the federal government drilled numerous wells in
northern Alaska to test the viability of oil and gas development
in the arctic environment. She said these legacy wells are all
in the western North Slope, an area with geography and biology
like that of the Arctic National Wildlife Refuge (ANWR). While
the area the wells are in is called a national petroleum reserve
rather than a national wildlife refuge, that does not make what
has happened there okay.
MS. FOERSTER related that the U.S. Bureau of Land Management
(BLM), within the U.S. Department of Interior, is the agency
that operates these wells. While the BLM is not the operator
that drilled the wells, it has been assigned responsibility by
the federal government to manage these wells. Essentially every
one of the 136 wells has been out of compliance with Alaska
regulations at one time or another and most of them still are.
Given the condition of these wells, review of the applicable
federal regulations would likely reveal that they are not even
in compliance with the regulations of the entity that owns and
manages them.
1:28:09 PM
MS. FOERSTER prefaced that she will be covering only the most
troubling issues, not every issue, that AOGCC has with these
wells. Displaying the photo labeled "Solid waste primarily in
the form of empty drums litter the area around Skull Cliff Core
Test," she pointed out that the objects in the picture are not
caribou or musk ox, but rusting barrels and drums. While the
BLM says there is insufficient budget to clean up these hundreds
of rusting drums, it has a big enough budget to rent a
helicopter to fly out and take pictures of the drums. She
suggested that the next time the BLM is out taking pictures it
should bring along a big net, gather up the drums, and carry
them out. Additionally, she continued, while the BLM does not
have enough money to clean up its mess, it has enough money to
write a report about it; this picture and the others she will be
showing are taken from a BLM report that used to be on the
agency's web site.
MS. FOERSTER urged that as members view these pictures, they
consider the hypocrisy of the federal government in wanting to
protect the Arctic National Wildlife Refuge from the very sort
of mess that the federal government has caused, and is allowing
to continue, elsewhere in Alaska.
1:29:46 PM
MS. FOERSTER allowed that to be fair to the federal government
and current administration, the legacy wells have been a problem
since the middle of the last century and are not solely the
fault of the current administration. However, because this
administration is the only one in place now, it is the only one
that the state can hold accountable. Also, to be fair to the
Alaska BLM folks who are Alaskans too, she said she thinks that
they would like to clean up the mess as well, but their hands
are tied by their meager annual budget of about $1 million,
which enables them to write a report and take pictures and not
much else. However, she stressed, she is not going to cut the
federal government any slack because it takes in billions of
dollars from Alaska lease sales and some of that money should
come back to Alaska to fix this mess. She shared that when
making this presentation to the Ground Water Protection Council,
a group of state and federal regulators from across the U.S.,
she asked that people in the audience stand up if the picture
depicted a proper P&A and remediate; no one, including
representatives of the BLM, stood up for any of the pictures.
1:31:11 PM
MS. FOERSTER, moving to the photo labeled "North Simpson #1 is
partially submerged in the summer," stated that in Alaska the
proper plugging and abandonment of wells is governed by Article
2 of AOGCC regulations. The purpose of properly plugging and
abandoning wells includes public safety, protection of the
environment, and protection of sources of drinking water. She
asked, rhetorically, whether anyone would want to take a drink
from the lake in the photo.
MS. FOERSTER stated that proper plugging and abandonment of a
well includes sufficient downhole cement and plugs to ensure
that underground fluids cannot migrate. With few exceptions,
none of the [136] legacy wells complies with this requirement.
Turning to the photo labeled "Simpson Core #29," she noted that
the well is open to the surface with no downhole plugs at all
and with no wellhead. The mud or diesel that was probably in
the well at one time has likely gone into the environment. The
earlier question about whether there has been damage to the
environment can be answered by looking at the pictures of these
wells. Several of the wells were left filled with diesel, she
said, and she thinks this is one of them, although she is not
sure.
1:32:25 PM
MS. FOERSTER, displaying the photo labeled "Light trash is
present in the seep between Cores #30 and #30A," explained that
the well was drilled in a seep, so the oil on the surface is a
naturally occurring seep. Proper plugging and abandonment of a
well requires that all underground pipe be cut off five feet
below ground level so that it cannot create an excavation hazard
or become a problem during subsidence or other normal earth
movement. With few exceptions, she said, none of the legacy
wells complies with this requirement.
MS. FOERSTER, moving to the photo labeled "Awuna wellhead with
exposed wooden pilings and Styrofoam," stated that this picture
has been used in mailers and fundraisers opposing development of
the Arctic National Wildlife Refuge. She said the oil industry
was probably blamed for this well and this is another part of
the legacy that these wells are leaving for Alaska. Properly
plugging and abandonment of a well requires sufficient surface
remediation that the site blends in with the natural vegetation,
and within a few seasons there should be no surface indication
of a well's location. Many of the legacy well sites are
permanent eyesores littered with rotting wood, rusting metal,
and other debris. However, because the legacy wells have not
been properly plugged, those wells that are re-vegetated are
potentially more serious downhole mechanical integrity issues
because they are out of site and out of mind but not secured.
She said the helicopter shown in this picture re-emphasizes that
the BLM has enough money to rent helicopters.
1:33:52 PM
MS. FOERSTER pointed out that the delay in plugging and
abandonment has caused at least three of the wells to be lost
due to subsidence and other normal earth movement. The BLM has
taken these wells off its concern list because it can no longer
find them, she said. Two of the wells are at the bottom of what
subsidence and snowmelt have turned into lakes and the third has
been buried by a landslide. Additionally, wells can simply be
no longer found and there is no explanation for why. Postponing
the abandonment of these wells simply puts the remainder of them
at risk of also becoming lost. Losing a well does not mean that
it is no longer a mechanical integrity or environmental concern;
it is just one that cannot be seen. She explained that the
[Awuna well] is on its way to being lost as the subsidence lake
develops. How long before it is lost, she asked, and how much
will it cost to find and fix it after that happens.
MS. FOERSTER, turning to the photo labeled "East Simpson #2 is
partially submerged during the spring thaw," noted that the
question with this legacy well is how long will it take for
natural subsidence to submerge this site completely and what
will be the cost to find it and fix it in the middle of a lake.
1:35:15 PM
MS. FOERSTER, displaying the photo labeled "Kaolak #1 with cabin
on the drill pad," asserted that allowing these unsafe and
unsightly wells to litter Alaska's wilderness while threatening
both human safety and the environment is unacceptable.
Nonetheless, BLM has properly plugged and abandoned fewer than
10 of the 136 wells. If these wells were operated by an oil
company the AOGCC would force compliance with its regulations
and impose fines for non-compliance, she said. Unfortunately,
while BLM can be found in violation of AOGCC regulations, AOGCC
has no legal authority to force the U.S. Department of Interior
into compliance. Additionally, she continued, AOGCC should not
have to. Showing the photo labeled "Umiat #1 is located about 5
miles from the Umiat airstrip," she said the federal government
should provide adequate funding specifically designated for the
purpose of bringing its own wells into regulatory compliance
with its and AOGCC's regulations. This funding could come from
the billions of dollars collected in lease sales or from
stimulus efforts. For example, jobs could have been given to
displaced Gulf of Mexico workers after the Macondo disaster to
come to Alaska and plug and abandon these wells.
MS. FOERSTER reiterated Representative Millett's earlier
statement that oil companies are interested in leasing these
lands and to have the remediation be part of their leasing.
There are opportunities to make these problems go away, she
said, and making this happen is a part of her job. She vowed
that as long as she is with AOGCC she will be haranguing to make
it happen. She cannot force the BLM into compliance, but she
can embarrass them in the court of public opinion and find and
work with the reasonable people to try to move this forward.
1:37:17 PM
REPRESENTATIVE GARDNER inquired whether the information gained
when these wells were drilled is in the public domain or
available to potential lessors.
MS. FOERSTER responded that AOGCC has scant records on these
wells and she does not know how much information the BLM has;
however, anything that AOGCC has is available to the public.
REPRESENTATIVE P. WILSON suggested that the resolution could be
amended with a whereas clause asking the BLM to provide the
state with the information that the agency has on these wells.
She inquired about the cabin depicted in the photo labeled
"Kaolak#1 with cabin on the drill pad."
MS. FOERSTER answered that as far as she knows the cabin was
part of the activity around that well. She expressed her
optimism that the Alaska BLM representatives and the AOGCC will
collaborate moving forward with the legacy wells and that BLM
will provide AOGCC with whatever information it has. She said
she is therefore unsure that such a whereas clause is necessary.
1:39:22 PM
REPRESENTATIVE KAWASAKI asked how many of the approximately
2,200 legacy wells on the North Slope are not currently in
compliance with AOGCC's regulations for capping.
MS. FOERSTER replied that the BLM is by far the biggest violator
of AOGCC's regulations. Many, many wells on the North Slope are
long-term shut-in wells on active pads, she continued, and these
are looked at every day by operators. A handful of wells
needing cleanup are located in exploratory sites and AOGCC has
given notice to those operators and the operators are
proceeding. Two or three wells between Anchorage and Fairbanks,
the Rosetta wells, are true orphan wells for which AOGCC cannot
find the owners. Other than the Rosetta wells, the only ones
that have not been remediated are a few Point Thomsen
exploratory wells that ExxonMobil and BP admit they own and
admit they owe remediation. However, due to high pressure in
the Thomsen reservoir and the way that those wells were left
because it was thought at the time that they would be re-entered
soon, re-entering the wells for plugging and abandonment poses
severe dangers that the companies do not know how to get around.
The wells are partially plugged and abandoned, so they are not
an immediate environmental risk. It would be a far greater risk
to go in without a thoroughly prepared plan, which the companies
and AOGCC are working on.
1:42:12 PM
REPRESENTATIVE KAWASAKI, in regard to AOGCC rules about whether
a gravel pad is still active, inquired whether AOGCC actually
looks to see if a pad qualifies as active. He said it seems to
him that a company not wanting to do remediation could just keep
leasing the ground and say that it is actively monitoring that
site.
MS. FOERSTER clarified that an active pad is producing, so oil
and gas production is coming from that pad.
MS. FOERSTER, responding to Co-Chair Feige, said she joined
AOGCC nearly seven years ago at the end of March 2005.
CO-CHAIR FEIGE asked how many wells the BLM has drilled in
Alaska over the past seven years.
MS. FOERSTER responded she does not have an exact count for the
last seven years, but a handful of coalbed methane test wells
have been drilled in or near the city of Wainwright since her
arrival at AOGCC. One well was drilled before she arrived and a
few more were drilled after she arrived.
CO-CHAIR FEIGE inquired whether BLM followed all of the AOGCC
regulations that it was supposed to follow.
MS. FOERSTER answered no, it did not.
1:44:11 PM
REPRESENTATIVE MUNOZ offered her appreciation for Ms. Foerster's
work to raise awareness of this issue. She asked what the
[federal] government's original purpose was for drilling these
wells.
MS. FOERSTER replied that the original purpose was to find out
whether oil and gas drilling was viable in an arctic
environment. Geologists had long recognized the North Slope as
an oil-rich area and after World War II the U.S. wanted to
ensure its own energy security. So, it was exploration, but as
seen by the surface oil seeps in her presentation it was not
hard to imagine that the area was oil rich. She added that the
exploration was very shallow.
REPRESENTATIVE MUNOZ inquired whether the [federal] government
has ever used any of the resources there for military activity
or other purposes.
MS. FOERSTER responded she does not know and deferred to the BLM
to answer the question.
REPRESENTATIVE MUNOZ asked whether the U.S. Environmental
Protection Agency (EPA) has been involved or notified.
MS. FOERSTER answered that the Alaska EPA has been informed of
this and has offered its moral support to AOGCC. When she made
her presentation at the Ground Water Protection Council, several
federal EPA people in attendance were aghast and offered
suggestions to her that AOGCC has already tried. Thus, EPA is
aware of the issue, but has not made the issue its mission.
REPRESENTATIVE GARDNER inquired about the current condition of
the BLM's coalbed methane wells.
MS. FOERSTER replied that those wells have been abandoned. In
further response, she said the wells are plugged and abandoned,
and that it was not AOGCC's abandonment regulations that the BLM
did not follow.
1:47:31 PM
TED MURPHY, Deputy State Director of Resources, Division of
Resources, Alaska State Office, U.S. Bureau of Land Management,
stated that he is before the committee to answer questions on
the legacy well program within Alaska. He said he thinks the
BLM is on track to continue working closely with the state to
reach resolution, a common understanding of where the wells are
at, the condition the wells are in, and how to remediate and
plug those wells into the future. Collaboration is the
component that everyone needs to do to get this done.
CO-CHAIR SEATON asked whether Mr. Murphy disagrees with the
facts as they have been presented or that the pictures do not
truly represent the situation around the wells.
MR. MURPHY responded that the pictures are an accurate
reflection of the condition of the wells. He said the federal
government does not control 136 wells in the NPR-A. Some of
those were conveyed in the Barrow Gas Field Transfer Act [of
1984] and some of those wells, while called wells, are actually
cores or shallow wells that were never cased. They were used to
determine the thickness of the permafrost and maybe some
geologic structures. They may have ranged anywhere from a
couple hundred feet to nearly a thousand feet.
CO-CHAIR SEATON requested Mr. Murphy to provide the committee
with a written commentary about the number of wells and the type
of wells.
1:50:13 PM
REPRESENTATIVE HERRON requested Mr. Murphy to say "mia culpa" on
behalf of the BLM and the federal government.
MR. MURPHY stated "mia culpa."
REPRESENTATIVE GARDNER, in regard to Mr. Murphy's statement that
BLM is working closely with the state to reach common
understanding, inquired what the active parts are of working
closely.
MR. MURPHY answered that it begins with the 2004 report on the
legacy wells that he put back on the BLM's web site yesterday.
He said BLM is making an amendment to that report. He explained
that some of the pictures shown earlier are a re-visitation of
those wells and it is important to understand that the BLM has
chosen to address those wells being impacted by coastal erosion
and that would have been overrun by the ocean in the near
future. Those wells were plugged and the mud pits remediated.
REPRESENTATIVE GARDNER understood Mr. Murphy to be saying that
the wells likely to be impacted by coastal erosion or that have
been impacted by coastal erosion have been plugged and
remediated.
MR. MURPHY said yes, within the next five years. The BLM does
not have an accurate representation of what the coastal erosion
impacts will be into the future, but the BLM has addressed the
ones that will be overrun or have been overrun by the ocean.
1:52:19 PM
REPRESENTATIVE KAWASAKI offered his understanding that 12 wells
have been plugged since the 2004 inventory, one in 2010 at the
cost of $17 million and Umiat #9 that was plugged in 2011 at a
cost of $2.5 million. In regard to reassessment of the 2004
inventory, he asked what the process will be for determining
which wells should be first. He further asked when the BLM will
get done.
MR. MURPHY replied he does not know when BLM will be done as it
is contingent on a number of factors, but he is committed to BLM
continuing to address the problem. He outlined the screening
process that will occur: condition of the existing pad and
pits; visible solid waste, such as equipment, piping, and
barrels; whether the bore hole penetrated known oil and gas
stratigraphy; whether the well had an oil or gas show and, if
so, is the well capable of flowing; whether the well is near
human activity and, if so, whether it is a risk to the people
near the well; the condition of the wellhead and whether there
has been previous problems or repair work on that wellhead; and
whether the presence of the unplugged well has the potential to
negatively impact anticipated development.
1:54:11 PM
CO-CHAIR FEIGE allowed that much of this happened before Mr.
Murphy came onboard the BLM and that Mr. Murphy is working
towards a solution. As far as the solutions of removing pits
and reclaiming the wells being impacted by coastal erosion, he
said the BLM is keeping pilots like him employed. He said he is
disturbed by the BLM's failure to follow existing AOGCC
regulations for the wells drilled near Wainwright. While he did
not know whether that was a willful disregard of the regulations
or simply a lack of knowledge or expertise on the part of the
people that were doing those wells, he asked that Mr. Murphy
pass on to the federal government that the state does not take
kindly to the violation of its laws.
REPRESENTATIVE MUNOZ inquired what the top federal agency
funding priorities are for Alaska and where this remediation
effort fits into those priorities.
MR. MURPHY explained that the Alaska BLM budget is based upon
the conveyance program, which is the largest funded program
within BLM Alaska, followed by the oil and gas "1310 program"
and then the recreational components. As far as priorities, the
annual budget for the legacy well program is a base of $1
million and supplementals are addressed thereafter.
CO-CHAIR SEATON requested the committee members to submit any
other questions they may have and that BLM provide in writing
any disputes it has with HJR 29 so the committee may address
them.
CO-CHAIR SEATON held over HJR 29.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 9 Version U.pdf |
HRES 2/6/2012 1:00:00 PM HRES 2/8/2012 1:00:00 PM HRES 2/10/2012 1:00:00 PM HRES 2/24/2012 1:00:00 PM HRES 2/27/2012 1:00:00 PM |
HB 9 |
| HB 9 Sectional, version U.pdf |
HRES 2/6/2012 1:00:00 PM HRES 2/8/2012 1:00:00 PM HRES 2/10/2012 1:00:00 PM HRES 2/24/2012 1:00:00 PM HRES 2/27/2012 1:00:00 PM |
HB 9 |
| HB 9 Sponsor Statement- version U.pdf |
HRES 2/6/2012 1:00:00 PM HRES 2/8/2012 1:00:00 PM HRES 2/10/2012 1:00:00 PM HRES 2/24/2012 1:00:00 PM |
HB 9 |
| Amendment1-RES.pdf |
HRES 2/6/2012 1:00:00 PM HRES 2/8/2012 1:00:00 PM HRES 2/10/2012 1:00:00 PM |
HB 9 |
| Amendment 2-RES.pdf |
HRES 2/6/2012 1:00:00 PM HRES 2/8/2012 1:00:00 PM HRES 2/10/2012 1:00:00 PM |
HB 9 |
| HB 9.pdf |
HRES 2/6/2012 1:00:00 PM HRES 2/8/2012 1:00:00 PM HRES 2/10/2012 1:00:00 PM HRES 2/24/2012 1:00:00 PM |
HB 9 |
| HB 9 Fact Sheet.docx |
HRES 2/6/2012 1:00:00 PM HRES 2/8/2012 1:00:00 PM HRES 2/10/2012 1:00:00 PM HRES 2/24/2012 1:00:00 PM |
HB 9 |
| AGDC Legislative Recommendations.pdf |
HRES 2/6/2012 1:00:00 PM HRES 2/8/2012 1:00:00 PM HRES 2/10/2012 1:00:00 PM |
HB 9 |
| 2002 Ballot Measure 3, Section 1.docx |
HRES 2/6/2012 1:00:00 PM HRES 2/8/2012 1:00:00 PM |
HB 9 |
| HB 369.pdf |
HRES 2/6/2012 1:00:00 PM HRES 2/8/2012 1:00:00 PM HRES 2/10/2012 1:00:00 PM |
HB 9 |
| HJR 29.pdf |
HRES 2/8/2012 1:00:00 PM |
|
| HJR 29 Sponsor Statement.pdf |
HRES 2/8/2012 1:00:00 PM |
|
| HJR 29 BLM Legacy Wells.pdf |
HRES 2/8/2012 1:00:00 PM |
|
| HJR 29 BLM Legacy Well Pictures.pdf |
HRES 2/8/2012 1:00:00 PM |
|
| HJR 29 AOGCC - legacy well non-compliance.pdf |
HRES 2/8/2012 1:00:00 PM |
|
| HJR 29 AOGCC - legacy well white paper.pdf |
HRES 2/8/2012 1:00:00 PM |
|
| HJR 29 Support Letter RDC.pdf |
HRES 2/8/2012 1:00:00 PM |
|
| ANGDA - H Res Comm 02812.pdf |
HRES 2/8/2012 1:00:00 PM HRES 2/10/2012 1:00:00 PM |
HB 9 |
| HB 9 ANGDA e-mail.pdf |
HRES 2/8/2012 1:00:00 PM HRES 2/10/2012 1:00:00 PM |
HB 9 |
| Executed ROW Lease 072006.pdf |
HRES 2/8/2012 1:00:00 PM HRES 2/10/2012 1:00:00 PM |
HB 9 |
| HJR 29 email support Mayor Hugo 02072012.pdf |
HRES 2/8/2012 1:00:00 PM |
HJR 29 |
| Subsection G-New.pdf |
HRES 2/8/2012 1:00:00 PM |
HB 9 |
| Avoid Duplications.pdf |
HRES 2/8/2012 1:00:00 PM |
HB 9 |
| HRES Response.pdf |
HRES 2/8/2012 1:00:00 PM HRES 2/10/2012 1:00:00 PM |
HB 9 |