2014 RESOLUTIONS

14.101 Supporting Hydrocarbon Exploration and Development in the Coastal Plain of ANWR as part of the National Energy Policy

14.102 Establishing A Collective Response On The Issue Of Transitioning A Class II Carbon Dioxide Enhanced Oil Or Gas Recovery Project To A Class VI Geologic Storage Project


 

IOGCC Resolutions
Columbus, Ohio



14.101 RESOLUTION

Supporting Hydrocarbon Exploration and Development in the Coastal Plain of ANWR as part of the National Energy Policy

WHEREAS, the oil and natural gas industry is a vital part of the United States’ economy and increasing domestic energy production and reducing dependence on foreign supplies are in the best interest of our nation’s strategic and economic well being; and

WHEREAS, IOGCC supports conservation and use of alternative fuels, but recognizes that for the foreseeable future increased domestic oil production is needed to fuel the nation; and

WHEREAS, the Coastal Plain of ANWR (Federal 1002 Area) is one of America’s best possibilities for the discovery of several new oil and gas accumulations. U.S. Department of Interior estimates that the Area contains between 5.6 and 16 billion barrels of technically recoverable oil, of which 100% could be economically produced at market prices above $55 per barrel; and

WHEREAS, advanced technology has greatly reduced the “footprint” needed for Arctic oil development. If Prudhoe Bay were developed today, the footprint would be, 64% smaller (less than the size of an average airport); and

WHEREAS, only the 1.5 million acre Coastal Plain, 8% of ANWR is being considered for development. The remaining 17.5 million acres or 92% of ANWR will remain permanently closed to any kind of development as federally designated “wilderness”. If oil is discovered, less than 2000 acres of the over 1.5 million acres of the Coastal Plain will be allowed to be affected by surface development activities; and

WHEREAS, to date, North Slope oil field development expenditures for production activity have contributed well over $50 billion to the nation’s economy, directly impacting each state in the union; and

WHEREAS, the North Slope oil fields currently provide the U.S. with approximately 15% of its domestic production; and

WHEREAS, the Trans-Alaska Oil Pipeline currently operates each day at approximately one fourth of its design capacity; and

WHEREAS, government studies suggest that new production from the Coastal Plain of ANWR could produce a 10-year sustained rate of 1 million barrels per day with production likely to continue for more than 25 years; and

NOW, THEREFORE, BE IT RESOLVED, that the Interstate Oil and Gas Compact Commission urges the President and Congress, in the national interest, to open the Coastal Plain of ANWR to hydrocarbon exploration and development.


 

14.102 RESOLUTION

Establishing A Collective Response On The Issue Of Transitioning A Class II Carbon Dioxide Enhanced Oil Or Gas Recovery Project To A Class VI Geologic Storage Project

WHEREAS, the United States Environmental Protection Agency (USEPA) adopted 40 CFR 144.19 Transitioning from Class II to Class VI as part of the Class VI Geologic Sequestration final rule on December 10, 2010; and

WHEREAS, the draft “Underground Injection Control (UIC) Guidance on Transitioning Class II Wells to Class VI Wells” (EPA 816-P-13-004) released for comment December 12, 2013, appears to broaden the U.S. EPA’s regulatory authority by overfiling existing state Class II primacy programs which currently regulate the injection of carbon dioxide (CO2) and other substances into underground formations, for purposes of enhanced recovery of oil and/or natural gas (EOR); and

WHEREAS, the transition discussed in the draft guidance conflicts with state law related to the conservation of natural resources, the prevention of waste, the maximization of ultimate recovery of oil and gas, and the protection of correlative rights; and

WHEREAS, under the draft guidance, the Class II UIC program Director and/or the EOR project operator are potentially required to report any and all data that may be requested by the Class VI UIC program Director (as of September 7, 2011 U.S. EPA Regional Administrators or U.S. EPA Administrator); and

WHEREAS, CO2 is a valuable commodity when utilized to enhance recovery oil, gas, and other resources; and

WHEREAS, current research indicates that CO2 can be sequestered at the same time it is being used for EOR purposes; and

WHEREAS, in many states CO2 is currently being injected for purposes of EOR; and

WHEREAS, the Class II to Class VI transitioning draft guidance has created legal, regulatory, policy, and commercial uncertainties; and

NOW, THEREFORE, BE IT RESOLVED that the Interstate Oil and Gas Compact Commission requests that, for the purposes of transitioning wells from Class II to Class VI status under section 144.19, U.S. EPA state in all pertinent U.S. EPA documents that the transition determination is to be made by the Class II UIC Program Director.