In 2012, the Cook Inlet Natural Gas Storage Alaska found over 16 billion cubic feet of native natural gas while drilling a storage area, but the ownership of the gas was never clearly established. Now CINGSA is appealing the Regulatory Commission of Alaska’s December decision to split the gas between the storage facility and four utilities.
Hobson: “So the RCA ordered CINGSA to pay 87 percent of the proceeds from any sale of that first two [billion cubic feet] of the found native gas to it’s customers, so we are appealing that decision.”
Spokeswoman Lindsay Hobson with CINGSA says this appeal is to defend their private property rights, due process rights, and to protect the settlement process following the RCA’s December decision.
Hobson says during the process with the RCA, CINGSA entered into contracts for a 50/50 split of the found native gas proceeds with Homer Electric Association, ENSTAR, Anchorage Municipal Light and Power, and Chugach Electric which store gas in the facility.
Hobson: “So 50 percent to CINGSA and then the remaining 50 percent to our customers according to their contracted storage capacity. So that was our settlement position and on appeal, in an effort to protect our property rights, we will maintain our position that the proceeds stay with CINGSA, as CINGSA is the property owner, invested in the facility, constructed the facility.”
The appeal was filed January 4 and since then two judges have been dismissed by motions from CINGSA’s and ENSTAR’s attorneys. As of Tuesday, the case is assigned to Judge Eric Aarseth.
Hobson said she could not comment on why the judges were dismissed.