The ruling is a setback for Oil Search, which is developing the giant Pikka oil field. But the judge also issued a stay in the case, delaying any changes, at least for now.
An Alaska Superior Court judge on Tuesday ruled in favor of ConocoPhillips in a fight with the state and another oil company over the use of roads needed to access a huge oil field on the North Slope.
ConocoPhillips also said it supports development of the oil field. It hopes to reach a long-term agreement with Santos, Oil Search’s parent company, for the use of the roads, ConocoPhillips said.made by Guidi during the case, it expected a decision that was not in its favor. It said it would appeal such a decision to protect Alaska’s constitutional rights over resource development.
a miscellaneous land use permit allowing Oil Search “free use” of the roads, Guidi wrote. It was the first time in state history that such a permit had been issued, allowing one entity to use the private facilities developed by another party on state leases, Guidi wrote. “DNR has no legal basis or authority to grant a third party the right to use leasehold improvements, by permit or other means, even though they are built on state land,” Guidi wrote.Guidi wrote that the state has other options to provide Oil Search with access to the Pikka field, including eminent domain if ConocoPhillips and Oil Search can’t reach a commercial agreement for the use of the roads.
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