| General Functions
The Commission acts to prohibit the physical waste of crude oil and
natural gas, ensure a greater ultimate resource recovery, and protect the
correlative rights of persons owning oil and gas interest in lands subject
to Alaska's police powers. It also administers the Underground Injection
Control(UIC) program for oil and gas wells in Alaska, and oversees
metering operations to determine the quality and quantity of oil and gas
produced in the state. The Commission holds hearings and adjudicates
decisions, which require the combined expertise of petroleum geology and
petroleum engineering.
Physical waste can occur at the surface from the failure of surface and
subsurface equipment or below ground from construction defects or
inappropriate reservoir management practices. Surface waste is prevented
by reviewing each drilling proposal to ensure proper well design (i.e.,
casing/tubing program, cement program, casing setting depth, and automatic
surface safety valves). The well control equipment (i.e., mud system,
diverter, blowout prevention equipment.) and hydrogen sulfide and methane
gas detection equipment are also reviewed. Well logging programs,
production practices, shallow geohazards, abnormally pressured zones, and
plugging and abandonment procedures are examined as well. The Commission's
field inspection staff then verifies that operations are conducted in
accordance with state statutes, regulations and approved procedures.
Hydrocarbons not recovered can have have a great impact to the state's
economy since it directly affects the revenues to the State. Ultimate
recovery is increased by ensuring proper reservoir management practices,
and hinges on Commission decisions about well spacing, completion
techniques, stimulation practices, production rates, injection fluid type
and rates, injection well pattern, gas/oil/water ratios, and pressure
maintenance efforts. Findings and conclusions of the Commission are
rendered in pool rules and conservation orders.
Maximizing ultimate recovery is similar to preventing waste, but
requires detailed understanding of the physical parameters of the
reservoir (e.g. porosity, permeability, stratigraphy, faulting, reservoir
pressure, drive mechanism, fluid properties and effects of intermixing
fluids in stimulation and secondary and enhanced recovery), and its
production performance over time (i.e., production decline curve
analysis). State of the art simulation and reservoir modeling augment the
Commission's management activities.
Correlative rights, or the right of opportunity to produce an owner's
just and equitable share of a reservoir, are protected by establishing
drilling units and preventing competitive development within a reservoir.
The latter is achieved by voluntary or compulsory unitization.
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