North Slope: ExxonMobil and Alaska wrestle over Point Thomson
ExxonMobil wrestles over Point Thomson
ExxonMobil wants to start drilling wells in Alaska's North Slope, but the oil giant said the state is denying a drilling permit for the 106,201-acre field known as Point Thomson and is therefore taking its case to Alaska's Superior Court.
The natural gas reserves are believed to represent nearly one-fourth of the North Slope's 35 trillion cubic feet of proved reserves.
This has led some state lawmakers to view the field's development as vital to a successful natural gas pipeline project. They want to see a resolution soon, said an Associated Press report.
Since 2005, the state has tried to take the leases and find new leaseholders; field operator ExxonMobil, and its partners who include BP and Chevron want to move forward.
ExxonMobil said it is "ready, willing and able," to begin a $1.3 billion project that would start producing 10,000 barrels a day of condensate, which is considered a light form of oil.
The current issue is whether ExxonMobil truly has the right to pursue legal action for the permit at this point.
The state says it is a premature move because Natural Resources Commissioner Tom Irwin has not reached a final decision on the company's permit request.
ExxonMobil says Irwin's decision has already been made when he wrote a letter in August, saying: "You do not have and will not be granted permission to enter the subsurface of Alaska lands without a valid oil and gas lease."
A ruling by Judge Patrick McKay could come within a week.