Buccaneer actions raise questions

By Nina Faust
Troubling questions about Buccaneer Energy were raised in recent opinion pieces.  Buccaneer seems to be operating by the seat of their pants, letting things slide till the last minute, not always operating by the rules, and continually asking for special dispensation. This behavior does not bode well for their ability to handle the unexpected.
Buccaneer’s West Eagle Unit application in the Caribou Hills is a good example. Buccaneer bought these leases in March 2010 from Stellar Oil and Gas LLC, with ample time to develop before expiration, but they were over-extended on other prospects around the Cook Inlet region.  Now scrambling, they want the State of Alaska to extend the expiration dates of 80 percent of the leases.  
These parcels were sold nearly 10 years ago despite strong opposition within the Homer area.  Over 400 people attended a public hearing and most asked the state to remove leases in this area from the sale. The state sold them anyway.  Since nothing happened, most folks thought the issue had gone away.  It has not. 
Buccaneer has rushed to complete their application, get necessary permits, and drill the first well.  They went over old 2-D seismic data and got a three-year lease to buy a drilling rig if things go their way.  They have provided little public information of their project to help residents understand the scale of what they propose and appear unprepared for emergency situations.  Buccaneer missed the proposed drilling date of Sept. 30, 2012, which wasn’t really feasible given their late start and admitted need to realign parts of East End Road to accommodate their drilling rig.  The project has been rushed and poorly planned—something very dangerous in oil and gas development.
This approach to West Eagle, the mooring of the Endeavour and illegal lowering the rig’s legs in Kachemak Bay, and claiming they will start drilling off Anchor Point before securing a back up rig agreement in case of a blow-out, should make Alaskans very nervous.  This Australian company has come here to exploit the resource in the fastest way possible with the likelihood that mistakes will be made.
The State should let the leases expire.  Give Homer time to further explore alternative energy for this area and Lower Cook Inlet.  Already the Kachemak Bay Research Reserve and the City of Homer have partnered to log the tidal energy at the dock.  The Aleutian Pribilof Islands Association has received a $200,000 Department of Energy grant to explore tidal energies.  Homer could do something similar.  Renewable energy benefits all residents because over time, its price will not increase once the initial instillation is paid for, and it is clean energy.
There is no hurry to develop this lease area.  Buccaneer is trying to grab as many opportunities as it can while the grabbing is good, but at the same time is putting itself in a position where it may not be able to live up to responsibilities.  
The State should not renew these leases so Buccaneer can focus on quality, not quantity.  In the long run, this is best to protect resources and the interests of local residents.  The State does not lose in the long run because oil and gas in the ground is money in the bank.
Buccaneer will have presentations on from 6-7:30 p.m. Oct. 24 at the Best Western Bidarka and 6:30-8 p.m. Oc. 25 at McNeil Canyon School.

Contact the writer
Posted by on Oct 24th, 2012 and filed under Point of View. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

1 Response for “Buccaneer actions raise questions”

  1. david says:

    “The State does not lose in the long run because oil and gas in the ground is money in the bank.”

    While that may be true, gas supply is forcast to to be in deficit next year…There is a very real risk electricity supplies will be reduced, it gets very cold in Alaska in winter without heating, a fact Nina seems unaware of in her article…..Buccaneer is the only source of near term additional gas supply being brought onstream…..They are working very diligently to bring energy security to the Cook Inlet by next year, when the likes of Apache and Hillcorp are years behind…..

Comments are closed

Like us on Facebook