An application package for an Oil Discharge Prevention and Contingency Plan, under Alaska Statute 46.04.030 and in accordance with 18 AAC 75, has been received by the Department of Environmental Conservation.  The details are as follow:

Applicant:                   
Blue Crest Alaska Operating LLC
3301 C Street, Suite 202
Anchorage, AK  99503

Proposed Activity:      
Review of a major amendment application package for an Oil Discharge Prevention and Contingency Plan that is required to commit adequate resources to meet all planning requirements for prevention and response for a realistic maximum discharge from the operations at BlueCrest’s Cosmopolitan site located near Anchor Point.  The site is a crude oil production site.  Production operations covered by the plan include drilling new wells; workover of existing wells; separation and processing of produced fluids into sales quality crude oil; storage of crude oil, oil-based drilling fluids, and produced water; and transfer of sales quality crude oil to contracted tanker trucks for transport to the Marathon refinery in Nikiski.

Currently the plan addresses oil spill prevention and response measures to support a maximum response planning standard (RPS) of 1,500 barrels of oil per day (bopd) at the wellhead for a total discharge volume of 22,500 barrels over 15 days and a 300 barrel RPS for oil storage tanks. Based on information regarding expected reservoir pressures at the time of plan approval in 2015 there was no expected aerial blowout plume from a loss of well control event.  Based on that information the modelled blowout plume indicated oil would be contained within the pad boundaries.  Therefore, the blowout scenario in the plan did not include on water response efforts and on land recovery operations reflected removal of oil only from the existing pad area. 

Following recent well workover operations the well pressures have increased substantially.  Based on new modelling parameters and assumptions, an updated blowout plume model was developed based on the increased well pressures and corresponding increase in the oil to gas ratio.  The new modelling now indicates the potential for a significant aerial plume that could carry oil approximately 15,000 feet from the well head, with the potential for off-pad migration and direct deposition to the shoreline and waters of Cook Inlet.  Based on current and expected future production rates from individual wells the RPS has been reduced to 1,000 bopd at the wellhead for a total discharge volume of 15,000 barrels over 15 days.

Location:                    
The facility consists of an onshore drill site and production facility located on private leased property, approximately 5 ½ miles north of Anchor Point and ½ mile west of the Sterling Highway. The western drill site boundary is approximately 500 feet from mean high tide of the open waters of Cook Inlet.

Potential Results:       
A potential risk exists of oil spills entering the lands or waters of the state as a result of this operation.

Activity identified as: 
State Contingency Plan Number 15-CP-5245

Any person wishing to submit a request for additional information or provide comments regarding this application may do so in writing to Mike Evans, Department of Environmental Conservation, SPAR/PPRP, 555 Cordova Street, Anchorage, AK 99501, 907-269-7541 (phone), 907-269-7687 (fax), or mike.evans@alaska.gov  

The public comment period for this application begins on December 28, 2018 and ends on January 28, 2019. Requests for additional information and comments must be received by 5:00 pm on January 28, 2019.  It is the responsibility of the commenter to verify that facsimile and email submissions are received by the deadline.  An additional comment period may be provided in accordance with 18 AAC 75.455(d).   

Copies of the application package are available for public review at the following locations: the department's office at 555 Cordova Street, Anchorage, AK 99501; and the department’s website at http://dec.alaska.gov/Applications/SPAR/PublicMVC/IPP/CPlansUnderReview

The department will hold a public hearing on the plan application if it determines that good cause exists.  Residents in the affected area or the governing body of an affected municipality may request a public hearing by writing to the Department of Environmental Conservation, at the above address prior to January 14, 2019.  The State of Alaska, Department of Environmental Conservation complies with Title II of the Americans with Disabilities Act of 1990. If you are a person with a disability who may need a special accommodation in order to participate in this public process, please contact Theresa Zimmerman at (907) 465-6171 or TDD Relay Service 1-800-770-8973/TTY or dial 711 prior to January 18, 2019 to ensure that any necessary accommodations can be provided.