Hilcorp agrees to temporary shutdown of Cook Inlet production

Walker: Alaskans want peace of mind that our waters are protected

In the aftermath of discussions with Gov. Bill Walker regarding the company’s gas lien leak in Cook Inlet, Hilcorp Alaska executives have agreed to a temporary shutdown of oil and gas production to environmental impact an safety risks.

Hilcorp will reduce the gas line pressure by half – from 145 pounds per square inch to 65 psi, which is the minimum needed to maintain pressure to prevent water from entering the line. Because the gas line was formerly an oil pipeline, old crude oil could potentially leak into the inlet if water were to enter the gas line.

In a statement issued on March 25, Walker said he appreciated Hilcorp’s implementation of “a prudent plan of action.

“Alaskans want peace of mind that our waters are protected,” the governor said.

Hilcorp also issued a statement, saying the company was continuing response efforts, in coordination with state and federal regulatory authorities, to repair the 8-inch natural gas pipeline in the Middle Ground Shoal area of Cook Inlet.

Hilcorp first discovered the leak during a helicopter overflight on Feb. 7, and reported it to federal and state agencies. The company had said that efforts to repair the line are hampered by winter ice, which makes it dangerous for divers and boats to operate in the area of the leak.

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But Bob Shavelson, advocacy director of the nonprofit Cook Inletkeeper, says that the Texas-based Hilcorp, one of the largest privately-held oil and natural gas exploration and production companies in the United States, knew – or should have known- about the leak months earlier.

“Hilcorp could have addressed this leak the day they discovered, but it chose to push the envelope and see if anyone cared about Cook Inlet,” Shavelson wrote in a March 25 email.

“I think they learned there’s strong support for clean water and responsible corporate management in Alaska, and we’re glad they finally got that message.”

The ongoing pollution “lies in the heart of some of the most important habitat for the endangered Cook Inlet beluga whale and its prey species,” he noted earlier, in an Inletkeeper blog (https://inletkeeper.org/blog/hilcorpgasleak).

Hilcorp’s obligation right now must be to Cook Inlet, not to continued profits,” Shavelson wrote. “Hilcorp has reaped sizable tax credits and enjoyed considerable profits during a time of fiscal crisis in Alaska, and it has a responsibility to do the right thing and shut down the pipeline until it can operate safely without polluting Cook Inlet.”

Shavelson also noted that since 2012 Hilcorp has been cited by the Alaska Oil & Gas Conservation Commission for over two dozen violations, including a 2015 violation that nearly killed three workers.

Shavelson also said in his blog that Hilcorp annually dumps over 2 billion gallons of toxic produced water into Cook Inlet fisheries from its Trading Bay facility under a loophole in the Clean Water Act, “and in August 2016, it reported a ’14 gallon crude spill’ at its Drift River facility which has blossomed into a much larger-thought still unknown – spill volume.
Hilcorp said in its statement, also issued on March 25, that as the company works with government agencies to finalize the plan to reduce gas line pressure, shut-in production and repair the pipeline, “the safety of personnel, wildlife and the environment remain the top priority.”

Hilcorp also said its response team and necessary equipment are ready to begin repairs as soon as it can be done safety. Based on current weather forecasts Hilcorp anticipates repair operations to occur in the next two weeks, the company said.

Walker said that Hilcorp has committed to not start up production at the platforms again until federal and state regulators are satisfied the oil and gas lines can be operated safely and in accordance with all applicable laws.

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