Alaska Oil and Gas Conservation Commission regulates oil and gas operations in Alaska, including permitting, production data, and carbon storage wells.
aogcc.alaska.gov ↗Alaska
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North Slope operator gets hearing on nearly $937,000 in proposed gas flaring penalties
Mustang Holding LLC will get a public hearing in January on nearly $937,000 in penalties state regulators have proposed for burning off gas at its North Slope oil field without permission.
The Alaska Oil and Gas Conservation Commission set the hearing for Jan. 7 in Anchorage, according to a notice issued Tuesday. It covers two penalty orders for flaring at the Southern Miluveach Unit.
The commission says Mustang was told it wouldn't get permission to keep flaring, or burning off gas, for well testing after Oct. 31, 2025, and that regular production at the field began Nov. 22. The company kept flaring, according to its own reports to the commission, and the commission found that "the continued flaring was knowing and intentional."
The first order proposes $741,520 for about 112 million cubic feet of gas flared from November through March. The second, issued Oct. 16, proposes $195,214 for about 33 million cubic feet flared from April through July. Each penalty is twice the fair market value of the gas burned, which the orders say state law requires.
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AOGCC Public Hearing on Fiscal Year 2027 Regulatory Cost Charges
AOGCC hearing room, 333 West 7th Avenue, Anchorage, AK 99501, and by phone (907) 202-7104, conference ID 883 690 690#
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About Alaska Oil and Gas Conservation Commission
aogcc.alaska.gov ↗Alaska
The Alaska Oil and Gas Conservation Commission (AOGCC) is the quasi-judicial state agency that regulates oil and gas drilling, well integrity and underground injection on Alaska lands. It issues drilling permits, keeps production data and hears regulatory cases on operations in Cook Inlet and on the North Slope.
Its decisions set the drilling and injection rules for fields such as Willow in the National Petroleum Reserve-Alaska, and determine which fields are cleared to supply gas for sale. It also weighs conservation questions, including how much oil condensate would be lost if a field such as Point Thomson switched from gas cycling to blowdown. It regulates wells that inject carbon dioxide underground for storage as well, a role that depends on federal approval for the state to permit them in place of the EPA.
Its findings feed into debates over Cook Inlet gas supply, the proposed Alaska LNG pipeline and the safety of drinking water near injection sites. Lawmakers call on it to explain what North Slope fields can deliver.