State regulators are insisting that oil and gas in Alaska cannot legally be deemed wasted if it leaks after it was the subject of a commercial transaction. AlaskaJournal
State regulators are insisting that oil and gas in Alaska cannot legally be deemed wasted if it leaks after it was the subject of a commercial transaction.on Thursday denied a petition by former state Sen. Hollis French for the commission to rule gas that leaked for months from a subsea pipeline into Cook Inlet in early 2017 constituted wasted resources, which would be a violation of state law.
Additionally, the commission’s claims that it had investigated the leak when it was ongoing and determined it was not an enforceable instance of waste lacked evidence that a substantive investigation had occurred, according to the court. French, who chaired the AOGCC when the leak occurred, first petitioned the agency to act on the leak in February 2019, shortly after he wasFrench claims disagreements between him and the other commissioners over the agency’s authority to take action against Hilcorp because of the gas leak led the Republican governor to remove the former Democratic lawmaker. Dunleavy wrote in a letter at the time that French was fired for poor work habits.
The hearing and subsequent order came nearly five years after the leak because French had to take the case to the Alaska Supreme Court to get his day in front of the commission. His initial 2019 petition was denied, leading French, an attorney by trade, to sue the agency and argue the case himself.
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