The Alaska Oil and Gas Conservation Commission (“AOGCC”) is considering revisions to 20 AAC 25.025 of the Alaska Administrative Code. One revision would “allow a reduction in the requisite bond amount if an operator demonstrates that it has a bond in place with the landowner dedicated exclusively to the plugging and abandonment of a well or wells.”
For those operators that were authorized to increase their bond amount in four annual installments, the proposed change would give those operators additional time to reach the higher bonding amount by increasing the number of annual installment payments from four to seven. Installment payments began on August 16, 2019, and currently are due on August 16 of 2020, 2021, and 2022.
Comments to the proposed regulation changes, including the potential costs to private persons of complying with the proposed changes, can be submitted in writing and sent to the following by not later than 4:30 p.m. on September 10, 2020:
333 West 7th Avenue
Anchorage, Alaska 99501
A hearing on the proposed regulation changes is scheduled for September 1, 2020 at 10:00 a.m. at 333 West 7th Avenue, Anchorage, Alaska. Those desiring to participate or be present at the hearing should check with the AOGCC after August 25, 2020 to ascertain if the hearing will be telephonic. Additional information is available regarding the hearing and the proposal on the AOGCC’s website.