BlueCrest fined $20,000 for Cosmo Unit violations

May 4, 2018

The company is being fined for violations on two wells in the Cosmopolitan Unit on the southern Kenai Peninsula.

BlueCrest Alaska Operating is facing $20,000 in civil fines after failing safety valve inspections. The Alaska Oil and Gas Conservation Commission announced the fines in an April 26th order.

AOGCC found two violations, one for failure to complete a well safety valve performance test in April of 2016, and another for failure to obtain approval for the alternative closure of the subsurface safety valve on another well in July of 2017. Both wells are in the Cosmopolitan unit on the southern Kenai Peninsula, with one producing 330 barrels per day as of last fall.

BlueCrest acknowledged a failure to submit test results, but in its response to the state, said omission of those results was not willful. Logbooks show the tests on the safety valves being performed, but there is no record of how those tests turned out.

BlueCrest has 30 days to appeal or pay its fines.