The U.S. Environmental Protection Agency has fined Hilcorp Alaska LLC roughly $180,000 for allowing leaks to go untreated and for not accurately reporting on leak inspection at facilities in Prudhoe Bay, Milne Point and on the Kenai Peninsula, the agency announced Tuesday.
In 2018, for example, the EPA said Hilcorp submitted reports that suggested on-site inspections were conducted at two different facilities at the same time, including at its Milne Point Unit and at its Kenai Gas Field. At its Beaver Creek Unit facility, Hilcorp did not conduct required leak monitoring until about 136 days after starting production, even though the Clean Air Act requires that monitoring to be completed within 60 days, the agency reported.
In Prudhoe Bay, the EPA said, Hilcorp took “several months” to conduct required repairs to multiple emissions leaks. The company said in a 2020 Annual Compliance Report that it failed to replace or repair 13 sources of leaks during scheduled shutdowns, according to the EPA.
“Facilities complying with the Clean Air Act requirements for oil and gas wells will reduce emissions of methane and volatile organic compounds,” the EPA said in a Tuesday release.
The EPA requires oil and gas companies to reduce leaks of methane and volatile organic compounds through regular inspections and prompt repairs. In all, almost 50 violations are detailed in a consent agreement and final order filed by the EPA last month.
Methane is a potent greenhouse gas that has a global warming potential or more than 25 times that of carbon dioxide. Volatile organic compounds refers to a group of chemicals that contribute to the formation of smog. According to the EPA, the oil and natural gas industry is the largest industrial source of these materials.
More information about how the EPA regulates the oil and gas industry can be found on the agency’s website at epa.gov.
Reach reporter Ashlyn O’Hara at ashlyn.ohara@peninsulaclarion.com.
