Alaska Oil and Gas Conservation Commission
Encyclopedia
The Alaska Oil and Gas Conservation Commission (AOGCC) is a quasi-judicial agency in the U.S. state of Alaska
, within Alaska's Department of Administration. It was originally established in 1955, was subsequently abolished, but was eventually reestablished. This Commission is responsible for overseeing oil and gas drilling and production, reservoir
depletion, and certain other operations on private and state-owned lands in Alaska.
created the Alaska Oil and Gas Conservation Commission in 1955, before Alaska became a state in 1959. At that time, the Commission comprised the Territorial Governor, Commissioner of Mines, and Highway Engineer. Rules and regulations for the Commission's activities took effect in 1958.
In 1959, the Oil and Gas Conservation Commission was temporarily abolished, and its duties were transferred to the Alaska Department of Natural Resources
. In 1968, the Division of Oil and Gas was formed within the Department of Natural Resources. In 1976, the word "conservation" was added back to the division's title, and it became the Division of Oil and Gas Conservation.
In 1977, with oil production occurring in Prudhoe Bay, the Alaska Legislature
decided that an independent quasi-judicial agency should be created in the executive branch of the state. The present independent agency was at first located within the Department of Natural Resources, but in 1980 was transferred to the Department of Commerce and Economic Development. In 1994, it was transferred to the Department of Administration.
Under the current structure, adopted in 1979, one member must be a registered petroleum engineer, one member must be a registered geologist, and one member must represent the public at large (i.e., a citizen in neither of the two categories listed above).
program for enhanced oil recovery and underground disposal of oil field waste, as authorized by the U.S. Environmental Protection Agency. As part of this injection process, oil corporations must obtain an Aquifer Exemption Order granted by the AOGCC in areas with deep groundwater supplies. Some environmental groups such as the Cook Inletkeeper as well as First Nation People have contested these Orders, fearing they may contaminate groundwater supplies. The Commission also holds oversight of wastewater disposal known as "wastewater drain fields"; as such, oil corporations are permitted to dispose of wastewater in the soil when certain requirements are met, and reject Orders when not met. Additionally, the Commission adjudicates certain oil and gas disputes between owners, including disputes where the state is a party. It is designed to cooperate with industry, while still meeting its regulatory requirements. The Commission's website lists their primary mission is "to protect the public interest in exploration and development of oil and gas resources, while ensuring conservation practices, enhancing resource recovery, and protecting the health, safety, environment, and property rights of Alaskans." Though the Cook Inletkeeper website notes 2 billion USgals (7,570,824 m³) of toxic waste are disposed of in the Cook Inlet waterway every year by oil corporations
Alaska
Alaska is the largest state in the United States by area. It is situated in the northwest extremity of the North American continent, with Canada to the east, the Arctic Ocean to the north, and the Pacific Ocean to the west and south, with Russia further west across the Bering Strait...
, within Alaska's Department of Administration. It was originally established in 1955, was subsequently abolished, but was eventually reestablished. This Commission is responsible for overseeing oil and gas drilling and production, reservoir
Reservoir
A reservoir , artificial lake or dam is used to store water.Reservoirs may be created in river valleys by the construction of a dam or may be built by excavation in the ground or by conventional construction techniques such as brickwork or cast concrete.The term reservoir may also be used to...
depletion, and certain other operations on private and state-owned lands in Alaska.
History
A territorial statuteStatute
A statute is a formal written enactment of a legislative authority that governs a state, city, or county. Typically, statutes command or prohibit something, or declare policy. The word is often used to distinguish law made by legislative bodies from case law, decided by courts, and regulations...
created the Alaska Oil and Gas Conservation Commission in 1955, before Alaska became a state in 1959. At that time, the Commission comprised the Territorial Governor, Commissioner of Mines, and Highway Engineer. Rules and regulations for the Commission's activities took effect in 1958.
In 1959, the Oil and Gas Conservation Commission was temporarily abolished, and its duties were transferred to the Alaska Department of Natural Resources
Alaska Department of Natural Resources
The Alaska Department of Natural Resources is a department within the government of Alaska. The Department of Natural Resources develops, conserves and enhances natural resources for present and future Alaskans....
. In 1968, the Division of Oil and Gas was formed within the Department of Natural Resources. In 1976, the word "conservation" was added back to the division's title, and it became the Division of Oil and Gas Conservation.
In 1977, with oil production occurring in Prudhoe Bay, the Alaska Legislature
Alaska Legislature
The Alaska Legislature is the state legislature of the U.S. state of Alaska. It is a bicameral institution, consisting of the lower Alaska House of Representatives, with 40 members, and the upper house Alaska Senate, with 20 members...
decided that an independent quasi-judicial agency should be created in the executive branch of the state. The present independent agency was at first located within the Department of Natural Resources, but in 1980 was transferred to the Department of Commerce and Economic Development. In 1994, it was transferred to the Department of Administration.
Structure
The structure of the membership has changed throughout the years, though it has consistently been a three-person Commission.Under the current structure, adopted in 1979, one member must be a registered petroleum engineer, one member must be a registered geologist, and one member must represent the public at large (i.e., a citizen in neither of the two categories listed above).
Mission
The Commission is tasked to work in-hand with the oil industry to maximize production, administer correlative rights, and improve resource recovery. It also administers an underground injectionWater injection (oil production)
Water injection refers to the method in oil industry where water is injected back into the reservoir, usually to increase pressure and thereby stimulate production. Water injection wells can be found both on- and offshore, to increase oil recovery from an existing reservoir...
program for enhanced oil recovery and underground disposal of oil field waste, as authorized by the U.S. Environmental Protection Agency. As part of this injection process, oil corporations must obtain an Aquifer Exemption Order granted by the AOGCC in areas with deep groundwater supplies. Some environmental groups such as the Cook Inletkeeper as well as First Nation People have contested these Orders, fearing they may contaminate groundwater supplies. The Commission also holds oversight of wastewater disposal known as "wastewater drain fields"; as such, oil corporations are permitted to dispose of wastewater in the soil when certain requirements are met, and reject Orders when not met. Additionally, the Commission adjudicates certain oil and gas disputes between owners, including disputes where the state is a party. It is designed to cooperate with industry, while still meeting its regulatory requirements. The Commission's website lists their primary mission is "to protect the public interest in exploration and development of oil and gas resources, while ensuring conservation practices, enhancing resource recovery, and protecting the health, safety, environment, and property rights of Alaskans." Though the Cook Inletkeeper website notes 2 billion USgals (7,570,824 m³) of toxic waste are disposed of in the Cook Inlet waterway every year by oil corporations