Juneau, Alaska (KINY) Financially unstable companies could cost Alaska billions, a regulator claims.
Cathy Foerster of the Alaska Oil and Gas Conservation Commission asked the legislature to make sure oil companies clean up old well, even after they are sold to other companies.
The Alaska Energy Desk said it is more common today for smaller oil companies to operate in Florida. She said some of them are more financially unstable.
She told the Senate Resources Committee Monday that if a big oil field such as Prudhoe Bay was sold to a smaller company, and that company goes bankrupt, it could cost the state billions of dollars.
The state currently has a $200,000 bond to cover the costs of plugging and abandoning all the wells at Prudhoe Bay. Foerster said that money would pay for only a portion of the costs of an engineering study to tell the state how much it would actually cost.
The gave the example of Aurora Gas last year. They declared bankruptcy last year. They are now unable to pay to plug and abandon its wells. That makes the state financially responsible for cleaning it up because the wells are on state owned land.
More from News of the North
Dunleavy Administration Saying it Inherits a $1.6 Billion Deficit
Juneau, Alaska (KINY) - The governor's team say they will revise the budget of former Gov. Bill Walker that was submitted Friday.
Lease Sale in Petroleum Reserve Draws Modest Interest
Anchorage, Alaska (AP) - the Bureau of Land Management on Wednesday received 16 bids on 16 tracts covering 272 square miles.
Green Lake Boat Access Restored in Sitka
Sitka, Alaska (KINY) - The Green Lake safety boom was broken during recent storm events.
Moy Captured by JPD Near Twin Lakes
Juneau, Alaska (KINY) - Moy tried to swim away from officers in the lake off Glacier Highway.
Weiss talks about superintendent search on Action Line
Juneau, Alaska (KINY) - The interim superintendent of the Juneau School District is in the running to fill the position on a permanent basis.
New elections supervisor named
Juneau, Alaska (KINY) Lt. Governor Kevin Meyer chose a familiar name when he chose a new Director for the Division of Elections.
Appointments made to planning commission and hospital board
Juneau, Alaska (KINY) The CBJ Assembly held a special meeting to make the appointments Thursday night.
Wanted woman possessed heroin
Ketchikan, Alaska (KINY) A Ketchikan woman wanted for violation of conditions of release faces new charges after drugs were found on her, police said.
Lady Falcons Smash North Pole in Home Opener
Juneau, Alaska (KINY) - Junior Charlee Lewis led the Lady Falcons with 14 points; she was 6-8 from the line.
Chad Bentz Named to Alaska Sports Hall of Fame
Anchorage, Alaska (KINY) - Chad Bentz of Juneau and two-time Olympic bronze medal-winning trap shooter Corey Cogdell-Unrein of Eagle River will headline the Class of 2019 into the Alaska Sports Hall of Fame.
CBJ has big decisions in 2019
Juneau, Alaska (KINY) Mayor Beth Weldon spoke about the future and Assembly goals for 2019 during a speech to the Greater Juneau Chamber of Commerce Thursday.
Vehicle Collides with Light Pole at Yandukin Near Egan Drive
Juneau, Alaska (KINY) - Juneau Police Department is asking drivers to slow down on city streets.