SEATTLE (Oil Monster): The state agency that protects Alaska’s state-owned oil and gas from waste confirmed Friday that a small North Slope company deliberately burned off state-owned natural gas for almost four months because reinjecting the gas was inconvenient for the company.
In a starkly written order, the Alaska Oil and Gas Conservation Commission confirmed a $313,616 fine against Cook Inlet Energy and implied that the firm misled regulators about the reasons for flaring gas from the Badami oil and gas field in 2024 and 2025.
Last year, the AOGCC fined Cook Inlet Energy almost $358,000 for the flare, but the firm challenged the decision, and the fine was reduced in last week’s final order.
In Alaska, subsurface oil and gas are collectively owned by the state’s residents, and the state has strict laws that prohibit producers from wasting it. Natural gas is regularly released during oil production, and Alaska law requires that it be captured and reinjected into the ground.
Alaska’s no-flare rule is a point of pride for the state, so much so that Gov. Mike Dunleavy once mentioned it in a State of the State address.
The state typically issues exemptions only in cases of emergency, or when a company is drilling test wells and capturing gas isn’t feasible.
One such exemption was granted in 2022 for a well being developed on state land south of Prudhoe Bay.
Courtesy: www.adn.com
