Non-exclusive private easement application
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Kristen Nelson Petroleum News
Hilcorp Alaska is in the process of purchasing the North Fork unit on the southern Kenai Peninsula from Vision Resources with a requirement for a change in how the pipeline serving the unit, a common carrier, is regulated. North Fork Pipeline currently has a Regulatory Commission of Alaska-issued certificate of public convenience and necessity.
When the CPCN was issued, exploration was underway east and north of the North Fork unit which could have resulted in transmission of natural gas from multiple shippers. Exploration east of North Fork was unsuccessful and a separate pipeline was built to transport gas from north of the unit.
North Fork Pipeline has never operated as a common carrier, moving only gas from North Fork.
The CPCN was granted because the Department of Natural Resources authorized the pipeline under an AS 38.35 right-of-way lease, requiring that RCA issue the CPCN.
The pipeline owner has applied to DNR for conversion of the right-of-way lease under AS 38.35, requiring regulation of the pipeline as a common carrier, to authorization under an easement under AS 35.05.850.
The Feb. 5 RCA application requests that the commission revoke the CPCN on condition that DNR authorize the pipeline under AS 35.05.850.
The State Pipeline Coordinator's Section of DNR's Division of Oil and Gas issued a notice of application for a private non-exclusive easement for the North Fork Pipeline on March 7.
An application from Vision Resources to the division on Feb. 3 requested authorization to relinquish the state right of way for the line and convert the authorization to a private non-exclusive easement.
The division requested public comments on the application in writing by 5 p.m. April 6.
--KRISTEN NELSON
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