The 36-page decision upheld a state permitlast year that allows Oil Search Alaska, a subsidiary of Australia-based Santos, to access its large Pikka prospect using 75 miles of gravel roads that were built by ConocoPhillips four decades ago. The roads are located in ConocoPhillips’ Kuparuk River oil field, on state-owned land.
Gialopsos said in his decision that the permit is intended to be temporary until the two sides reach an agreement and does not represent a taking of ConocoPhillips’ assets — it can still use the road. ConocoPhillips says it is not impeding North Slope development because it has allowed Oil Search to use the Kuparuk River roads for exploration work at Pikka at no cost. It says Oil Search now has no incentive to negotiate a deal for the use of the road, since the permit allows the roads’ use without compensation to ConocoPhillips.]
Brad Keithley, a former oil and gas attorney, said the fundamental problem leading to the dispute is that the Department of Natural Resources does not have facility-sharing rules in place for roads. Such rules exist for common-carrier pipelines under the oversight of the Regulatory Commission of Alaska.
I just hate to see oil companies and congressional Republicans disagreeing. Just breaks my heart. I'm sure this lawsuit will be worth it for Conoco and the GOP will elect a Speaker today 🤣