Hilcorp drawing criticism for Cook Inlet, North Slope work
As news of BP selling its North Slope operations to Hilcorp continues to settle in, at least one state lawmaker says Hilcorp needs to improve its regulatory compliance and safety record.
House Rep. Andy Josephson, D-Anchorage, praised Hilcorp for its work in Cook Inlet and for adding North Slope operations to its Alaska portfolio.
Josephson, who has previously served as House Resources co-chair and currently sits on the House Finance Committee, said past violations also concern him.
"I do have concerns that they have a poor regulatory compliance record," he said. "That’s just a fact. That’s a record that’s reflected in both in the Cook Inlet and on the North Slope. It’s partly environmental and partly health and safety. They need to work harder at that. We’re going to make them do that.”
The Alaska Oil and Gas Conservation Commission has fined Hilcorp at least three times for permitting and safety violations between 2013 and 2017.
On April 10, 2013, AOGCC fined Hilcorp $115,500 for failing to notify changes to an approved permit and failing to blowout prevention equipment.
On March 3, 2017, AOGCC fined Hilcorp $200,000 for failing to notify changes to an approved permit and failure to maintain a safe work environment.
On March 21, 2017, AOGCC fined Hilcorp $80,000 for failing to notify changes to an approved permit.
In an emailed statement, Hilcorp spokesman Justin Furnace wrote:
"Regarding our environmental performance, while we have not been incident free, Hilcorp has focused intently on achieving high standards of safety and environmentally responsible operations throughout our Alaskan operations. We do this through close coordination with local, state, and federal agencies that work to enhance public safety, improve emergency preparedness and protect the environment. And just as importantly, we do this through the continual building of a company culture that uphold and rewards integrity, accountability and responsibility. If we can’t do a project safely and responsibly, we will not undertake that project."
On Tuesday, the two companies announced a $5.6 billion agreement for Hilcorp to purchase BP’s North Slope operations.
The sale is expected to become complete sometime next year.
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