Contract disputes happen all the time between companies.
Since November, a contract between Enstar, a public utility that provides natural gas to Southcentral homes and businesses, and Hilcorp, which is the main gas producer in Cook Inlet, has been the center of a dispute over the steps and protocols for delivering “extra” gas — that which is not immediately needed.
Rather than go to arbitration, Enstar escalated the dispute to the court system with a complaint this week. It’s a disagreement about how Hilcorp delivers the “call option” natural gas for additional gas that Enstar wants but does not necessarily need. There are stages to the delivery process — Enstar has the basic gas, then is supposed to use gas it has in storage, and then can have a “call option” for more gas, as needed.
“Despite various efforts to resolve an ongoing contractual dispute related to the delivery of natural gas and an agreement related to natural gas supply protocols, Enstar has chosen to initiate legal action,” said Hilcorp in a statement. “We strongly disagree with their interpretation of the contracts and look forward to resolving these issues in a timely manner. We hope Enstar will come back to the table and work with us to develop a reasonable resolution that takes into account the needs of all Alaskans that depend on Cook Inlet natural gas.”
The issue, technical and contractual in nature, is not a matter of life and death for Alaskans who depend on these companies to keep their homes and businesses warm, because the contract gas is being delivered. It’s a disagreement that could have been arbitrated and ultimately may be resolved before the case is heard in Anchorage Superior Court.
Here’s the complaint in full:
Hilcorp has always been a greedy step child. Enstar did the right thing.
Man, why is everyone picking on Hilcorp? First BP leaves them w/crap, then federal Judge Sharon Gleason slams them w/crap, and now Enstar gives them crap?
Speaking of Enstar, many of us have resorted to wood-burning after Biden’s war on Alaska. We’re doing our part to preserve and share the natural gas we have w/everyone else. ;D
A Nobel Prize economist is not required to understand that it will be less expensive to deliver imported LNG at Nikiski than to continue subsidies for Cook Inlet Gas. This is all about who gets the terminal, pipelines and business
It is in our best interests to encourage these companies to settle their disputes, and assure them we appreciate their investments in Alaska.
Hilcorp is cr–. No one made them buy the Alaska BP assets. Hilcorp has a monopoly in Cook Inlet and they know it. I hope Enstar brings in LNG and forces Hilcorps hand.
I would suggest you should be glad Hilcorp bought those ass ets. I would be willing to donate moving boxes to your Ready to leave fund so you can. Anyone else?