State Files Consent Decree to Provide Pricing Protection for Alaskans
Anchorage, Alaska - Attorney General Michael C. Geraghty announced today that the state filed a consent decree in Alaska Superior Court to resolve competitive concerns with Hilcorp Alaska LLC’s (“Hilcorp”) acquisition of Marathon Oil Company’s Cook Inlet assets. The consent decree provides consumers in Southcentral Alaska substantial pricing protections over a five year period while still encouraging new investment in the exploration and development of Cook Inlet’s natural gas resources.
“Hilcorp is well known in the oil and gas industry as an active developer in mature oil and gas basins such as Cook Inlet,” Attorney General Geraghty said. “It plans to spend approximately $300 million over the next two years on new Cook Inlet development in addition to the more than $200 million Hilcorp spent in 2012 alone. This settlement allows Hilcorp to keep investing in Cook Inlet while still protecting consumers.”
The key feature of the proposed consent decree is a cap on the price of natural gas sold to local utilities and Cook Inlet industrial users for the next five years. The decree also prevents Hilcorp from selling gas for LNG export until all local needs are met.
Comments on the proposed settlement can be submitted to the Alaska Superior Court for 60 days following the filing of the consent decree. Following the comment period, the Superior Court will hold a hearing to determine whether to approve or reject the consent decree.
For more information, contact Assistant Attorney General Ed Sniffen at 269-5200.
Posted: November 7, 2012