Performance Details

Department of Commerce, Community, & Economic Development - Alaska Oil and Gas Conservation Commission

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Mission

To protect the public interest in exploration and development of Alaska's valuable oil, gas, and geothermal resources through the application of conservation practices designed to ensure greater ultimate recovery and the protection of health, safety, fresh ground waters and the rights of all owners to recover their share of the resource.

Core Services

• Ensure safety of well drilling and control equipment.
• Ensure greater ultimate recovery.
• Minimize waste due to unnecessary flaring and venting of produced gas.
• Expeditiously adjudicate all permit applications while ensuring compliance with regulations, statutes, orders and other AOGCC directives.
• Protect Alaska's underground fresh water.
• Have no lost time accidents

Mission Results

Core Services

A: Ensure safe, efficient recovery of Alaska resources, prevent physical waste, timely review of applications, prevent contamination of underground fresh water, and have no lost-time accidents.  Details >

A1: Ensure safety of well drilling and control equipment.  Details > TARGET #1: Witness at least 75% of well safety equipment tests. (Blowout prevention equipment (BOPE), Safety Valve System (SVS), Mechanical Integrity Test (MIT)) A2: Ensure greater ultimate recovery.  Details > TARGET #1: Evaluate development and depletion of 20% of Alaska's oil and gas pools, and every pool at least once every five years. A3: Minimize waste due to unnecessary flaring and venting of produced gas.  Details > TARGET #1: Less than 0.5% loss of total gas production through flaring and venting. A4: Expeditiously adjudicate all permit applications while ensuring compliance with regulations, statutes, orders and other AOGCC directives.  Details > TARGET #1: Comprehensively review and adjudicate drilling permit applications in less than 10 working days. A5: Protect Alaska's underground fresh water.  Details > TARGET #1: Zero incidents that result in contamination of underground fresh water due to oil and gas activities. A6: Have no lost time accidents  Details > TARGET #1: No incidents that result in lost time for AOGCC staff or field inspectors.

Performance Detail

Target #1: Witness at least 75% of well safety equipment tests. (Blowout prevention equipment (BOPE), Safety Valve System (SVS), Mechanical Integrity Test (MIT)) Percent of Tests Witnessed Fiscal Year % of Tests Witness Goal FY 2019 47% 75% FY 2018 59% 75% FY 2017 51% 75% FY 2016 48% 75% FY 2015 36% 75% FY 2014 47% 75% FY 2013 44% 75% FY 2012 38% 75% FY 2011 38% 75% Analysis of results and challenges: To ensure that well safety equipment is adequate and in good working order, regular inspections and tests of equipment performance are conducted. AOGCC’s inspectors are too few in number to witness every test; our goal is to witness at least 75%. During FY2019, AOGCC fell short of that goal in part due to one Inspector on extended leave for medical reasons not related to work, and for inspection responsibilities not captured by these performance measures. Inspection Supervisor’s assessment – nearly a decade of inspection data shows this goal is unachievable with 8 inspectors, due to travel logistics and distances, and with the diverse field inspection responsibilities. Despite not achieving the witness goal, AOGCC’s use of a risk-based data system to prioritize inspections continues to ensure that well safety equipment is suitable for the working environment. Review of all well safety equipment tests and comparison to AOGCC witnessed tests ensures the accurate representation of equipment performance.

Target #1: Evaluate development and depletion of 20% of Alaska's oil and gas pools, and every pool at least once every five years. Percent of Oil & Gas Pools Evaluated Fiscal Year % of Pools Evaluated Goal FY 2019 25% 20% FY 2018 20% 20% FY 2017 27% 20% FY 2016 30% 20% FY 2015 25% 20% FY 2014 30% 20% FY 2013 32% 20% FY 2012 29% 20% FY 2011 20% 20% Analysis of results and challenges: AOGCC’s reservoir engineer evaluates many oil and gas pools each year to ensure that operating companies are maximizing resource recovery. During FY2019, AOGCC exceeded our goal of 20%.

Target #1: Less than 0.5% loss of total gas production through flaring and venting. Percent of Gas Lost Through Flaring and Venting Fiscal Year % Gas Lost Goal FY 2019 .27% .50% FY 2018 .23% .50% FY 2017 .20% .50% FY 2016 .24% .50% FY 2015 .20% .50% FY 2014 .20% .50% FY 2013 .26% .50% FY 2012 .34% .50% FY 2011 .21% .50% Analysis of results and challenges: Unnecessary flaring and venting of produced gas wastes state hydrocarbon resources. AOGCC reviews every flaring and venting event to ensure that it was needed for safety or maintaining operational efficiency. During FY2019, the percentage of gas lost was less than AOGCC’s goal of 0.5% lost.

Target #1: Comprehensively review and adjudicate drilling permit applications in less than 10 working days. Percent Permits Adjudicated within 10 working days Fiscal Year % Permits Adjudicated Goal FY 2019 54% 75% FY 2018 35% 75% FY 2017 46% 75% FY 2016 50% 75% FY 2015 52% 75% FY 2014 50% 75% FY 2013 65% 75% FY 2012 68% 75% Analysis of results and challenges: During the past year, AOGCC performance improved significantly over FY2018 through increased focus on timely review of applications. However, we still fell short of our 75% goal because of the complex, out-of-the-ordinary well work requiring additional review and AOGCC staff scrutinizing applications more closely than in the past.

Target #1: Zero incidents that result in contamination of underground fresh water due to oil and gas activities. Incidents of Contaminated Underground Fresh Water (Zero Recorded Incidents) Fiscal Year Number of Incidents Goal FY 2019 0 0% 0 0% FY 2018 0 0% 0 0% FY 2017 0 0% 0 0% FY 2016 0 0% 0 0% FY 2015 0 0% 0 0% FY 2014 0 0% 0 0% FY 2013 0 0% 0 0% FY 2012 0 0% 0 0% FY 2011 0 0 Analysis of results and challenges: There are no documented instances of underground freshwater contamination in Alaska. AOGCC’s increased scrutiny of applications and slightly larger field inspector staff will allow us to maintain that unblemished record.

Target #1: No incidents that result in lost time for AOGCC staff or field inspectors. Incidents Resulting in Lost Time of Staff and Field Inspectors Fiscal Year Number of Incidents Goal FY 2019 1 0% 0 0% FY 2018 0 -100% 0 0% FY 2017 1 0% 0 0% FY 2016 0 0% 0 0% FY 2015 0 0% 0 0% FY 2014 0 0% 0 0% FY 2013 0 0% 0 0% FY 2012 0 0% 0 0% FY 2011 0 0 Analysis of results and challenges: There was one reported incident in FY2019. Some of AOGCC staff are exposed to an extensive amount of time in the field, driving and flying between widely separated locations in often inclement weather. AOGCC’s emphasis on personal safety will allow us to continue our goal of zero incidents.

Current as of December 9, 2019