Buccaneer Energy is going back to the Alaska Oil and Gas Conservation Commission to try and settle issues at the Kenai Loop well site in Kenai.
One hearing has already been held to find some resolve to ownership disputes between Buccaneer and Cook Inlet Region Incorporated, or CIRI. Natural gas is draining from property near the Kenai Loop site that isn’t controlled by the field’s operator, and the two sides are at odds over what to do about it.
Kristen Nelson of the Petroleum News reports that at the January 30th hearing, Buccaneer officials said they didn’t know their wells would have an impact on other wells that were already producing in the area until after they had drilled what they believed were new reserves.
A CIRI official told the commission that work to find a solution with Buccaneer has been brief and not very productive. One idea for how to settle was to create an escrow account for the gas that currently has no legal owner. But lack of a formal unit recognized by the state complicates that.
The two sides will go back to the Commission again for another hearing on April 8.