CSSCR 6(RES): Urging the governor to direct the division of oil and gas, Department of Natural Resources, to undertake a comprehensive review of the subject of Cook Inlet oil and gas platform abandonment for the purpose of developing new oil and gas platform abandonment regulations and their adoption and implementation.
00 CS FOR SENATE CONCURRENT RESOLUTION NO. 6(RES) 01 Urging the governor to direct the division of oil and gas, Department of Natural 02 Resources, to undertake a comprehensive review of the subject of Cook Inlet oil and gas 03 platform abandonment for the purpose of developing new oil and gas platform 04 abandonment regulations and their adoption and implementation. 05 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 WHEREAS recent testimony to legislative committees noted that four of the 16 07 offshore oil platforms in Cook Inlet are now "lighthoused," holding up warning lights and 08 nothing else; and 09 WHEREAS many of the Cook Inlet platforms in place date from the 1960s; and 10 WHEREAS past oil production in Cook Inlet peaked at 226,000 barrels a day in 1970 11 but last year was 24,000 barrels a day, while past gas production peaked at 312 billion cubic 12 feet a year in 1990 and is now about 200 billion cubic feet; and 13 WHEREAS, despite declining oil and gas production, there is some reason to believe 14 that these platforms could be used for redevelopment and exploration to help reverse the trend 15 in that production; and
01 WHEREAS state regulators have encouraged use of these platforms to drill for new 02 deeper wells; and 03 WHEREAS drilling into new geological zones 5,000 feet deeper than existing wells 04 might tap into larger fields of oil than have been hit so far; and 05 WHEREAS, by way of example, XTO Energy has redeveloped wells on two former 06 Shell platforms to tap into new oil, an illustration of the kind of work by growing, 07 independent companies that should be encouraged and extended in Cook Inlet; and 08 WHEREAS the Alaska Oil and Gas Conservation Commission recognized some time 09 ago the need for a cooperative and joint effort in updating and revising its existing regulations 10 to address the concerns of operating in this state's changing business and environmental 11 climate; among other topics deemed worthy of consideration was modification of the existing 12 Alaska Oil and Gas Conservation Commission regulations affecting platform abandonment; 13 and 14 WHEREAS, in 1996, the commission proposed implementation of revised platform 15 abandonment regulations using the public work product and sought comment from the 16 Department of Natural Resources; and 17 WHEREAS, following the commission's initiative, discussion ensued as to primacy 18 for regulation adoption, prompting a decision of the attorney general indicating that the 19 department, not the commission, had the obligation to take the lead in developing new oil and 20 gas platform abandonment regulations and their adoption and implementation; 21 BE IT RESOLVED that the Alaska State Legislature, consistent with the advice of 22 the attorney general, urges the governor to direct the division of oil and gas, Department of 23 Natural Resources, to undertake a comprehensive review of the subject of Cook Inlet oil and 24 gas platform abandonment using the 1996 proposals of the Alaska Oil and Gas Conservation 25 Commission as the starting point for its deliberations.