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Entry authorization issued for GMT2 work
Kristen Nelson Petroleum News
ConocoPhillips began production at its Greater Mooses Tooth 1 pad in the National Petroleum Reserve-Alaska in October 2018 and has begun work on the second pad, Greater Mooses Tooth 2.
Scott Jepsen, ConocoPhillips Alaska’s vice president of external affairs and transportation, told the Alaska Support Industry Alliance Sept. 12 that first oil is expected from GMT2 in 2021, with estimated peak gross production of 35,000-40,000 barrels per day from 48 wells.
Jepsen said gravel was in place and was being reworked for the GMT2 pad and an 8-mile road, along with preparation for pipeline installation, scheduled to begin in 2020, as well as completion of module and fabrication work.
He said pipeline installation between GMT1 and GMT2 would be complete, and modules and pipe racks installed, in 2021, with drilling, commissioning and startup of GMT2 in that year.
Entry authorization The Alaska Department of Natural Resources, Division of Oil and Gas, issued an entry authorization for ConocoPhillips Jan. 3 for construction of GMT2 produced oil and miscible injection pipelines on state lands.
The entry authorization also covers the GMT1 waterline, which supplies injection water from state land to federal leases within Greater Mooses Tooth. The company applied for modification to the existing easement for the waterline, 2.75 miles of 14-inch line and pipe rack between the CD4 North pipeline tie-in and the Alpine Central Facility, to allow installation and operation of an 8-inch miscible injection pipeline and a 20-inch produced oil pipeline. The division said the company also proposes to include installation and operation of a 20-inch produced oil line, messenger cable and power cable on existing vertical support members over the Nechelik Channel on state lands.
The project will support construction and operation of GMT2. The decision authorizes a private non-exclusive easement on state lands to install GMT2 infrastructure on existing VSMs and pipe rack.
Not actual easement This is not the easement, which will be granted once terms and conditions of the entry authorization have been met, including completion of construction and submittal of an as-built survey. The entry authorization is for 5 years; the easement will be for a term of 35 years.
The entry authorization, or EA, authorizes construction and survey activities within the approximately 33-acre construction area, the division said. Upon completion of construction and survey, a non-exclusive private easement of some 16.83 acres will be issued for operation and maintenance of the infrastructure.
The division said that upon the end of pipeline life or terms of the easement, ConocoPhillips is expected to remove all infrastructure from state-owned lands and restore the site to its original condition. The division is requiring a performance guarantee for full estimated cost of dismantlement, removal and remediation, which for the GMT1 waterline and GMT2 infrastructure is estimated at $5,814,950.
The division said it determined that there are no other directly competing uses for this area which would provide greater economic benefit to the state.
EA stipulations include reservation of the right to grant additional authorizations to third parties for compatible uses on or adjacent to land under this authorization and the division said it “may require authorized concurrent users of State land to enter into an equitable agreement regarding concurrent use.”
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