Reuters: Regulatory News: Exxon gets key permit for Alaska's Point Thomson field

Reuters: Regulatory News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Exxon gets key permit for Alaska's Point Thomson field Oct 26th 2012, 20:29 By Yereth Rosen ANCHORAGE, Alaska | Fri Oct 26, 2012 4:29pm EDT ANCHORAGE, Alaska Oct 26 (Reuters) - Exxon Mobil Corp on Friday received a major federal permit it needed to start construction on the Point Thomson oil and gas field on the eastern North Slope of Alaska, officials said, after an extended delay that threatened some leases there. The U.S. Army Corps of Engineers granted Exxon a wetlands-fill permit for construction of drill pads, roads, an airstrip, pipeline, and docking and other facilities needed for production at the long-languishing field - production the state of Alaska has accused the company of dragging its heels on. The Army Corps decision to issue the permit followed a detailed environmental impact study that began in 2009. While there remain a few outstanding state permits, the wetlands-fill authorization was the major approval needed for construction, said Mike Holley, northern branch team leader for the Alaska district of the Army Corps. "I believe this is the major one that Exxon Mobil wanted," he said. Exxon was not immediately available for comment. Along with partners BP Plc and ConocoPhillips , Exxon expects to start producing 10,000 barrels per day after the construction. Holley said Exxon hopes to begin construction soon. "They are planning on doing as much of the construction this winter as possible," he said, adding that ice roads will be built to accommodate winter building. The Point Thomson field has been the subject of long-running dispute between the state of Alaska and the oil companies. The state contended the companies were improperly delaying development at the field, where leases date back to the 1960s. The state began procedures to revoke the leases so they could be re-auctioned. The field holds an estimated 8 trillion to 9 trillion cubic feet of natural gas and hundreds of millions of barrels of oil and natural-gas condensates, state officials say. Exxon and its partners argued development was challenged by extraordinary high-pressure conditions in the reservoir, among other factors. In March, the state reached a comprehensive settlement with Exxon and its partners. Prior partial settlements resulted in new exploration drilling and plans for production of liquids. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions