Hilcorp fined again for deviating from permit at Milne Point

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A state regulatory agency has fined Hilcorp $267,000 for making unauthorized equipment changes at Milne Point, one of its North Slope oil fields.

says that Hilcorp’s drilling permit for a well called I-27 allowed for the use of an electrical submersible pump. An investigation later revealed the company had substituted a jet pump, without notifying the agency of the change.enforcement actions. Regulators found problems at Hilcorp operations in Cook Inlet and on the North Slope. Several of them were for making changes to a permitted plan.

Hilcorp said it launched an investigation as soon as it learned of the unauthorized pump substitution and has already begun revising procedures and training. “An important part of Hilcorp’s culture is to get better every day, and we look forward to continuing to work closely with AOGCC to ensure compliant, safe and responsible operations,” the company said in an email.

The Alaska Oil and Gas Commission order says the steps Hilcorp has taken are too narrowly focused and are unlikely to prevent a similar re-occurrence.

 

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