Gov. Mike Dunleavy has created an oversight committee relating to the sale of BP assets in Alaska to Hilcorp. The committee is made up of seven senior level members of the Dunleavy cabinet, including:
- Commissioner or designee of the Department of Natural Resources (Chair)
- Commissioner or designee of the Department of Environmental Conservation
- Attorney General or designee of the Department of Law
- Commissioner or designee of the Department of Fish & Game
- Commissioner or designee of the Department of Labor and Workforce Development
- Commissioner or designee of the Department of Commerce, Community, and Economic Development
- Commissioner or designee of the Department of Revenue
- Governor’s Office Director of Policy & Communications
The committee will advise the governor on whether regulatory and statutory requirements are being satisfied, inform him on comments from the public and the Alaska Legislature, and brief the governor on proceedings related to the transfer in the state’s quasi-judicial agencies.
For once I agree with the Governor on something. Performing some due diligence on this transaction is a good idea to protect Alaska’s interests. Running this huge, aging operation with fewer people, less money, and reduced access to deep expertise will be a real challenge. Watch out for more spills and a higher overall level of safety incidents. Old oilfields are never fun. I know, having had years of experience running them.
This would have been a better idea at the end of August, when the sale of BP assets to Hilcorp was announced. Much of the transaction has been formalized and we have moved to execution of the deal. The Legislature’s role is to enact laws that apply prospectively; the Legislature does not approve this transaction. Regulatory agencies operate under laws and rules currently on the books; they do not invent new rules to apply only to the current parties. Frankly, I do not understand what value the oversight committee is going to add.
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