SETTLEMENT AGREEMENT
THIS AGREEMENT is made and entered into by and between Chevron
U.S.A. Inc., a Pennsylvania corporation ("Chevron"), BP Exploration
(Alaska) Inc., a Delaware corporation ("BP"), Arctic Slope Regional
Corporation, an Alaska corporation ("ASRC"), and the Alaska
Department of Natural Resources ("DNR") (all collectively referred
to as "Parties").
In consideration of the mutual covenants and obligations
provided herein, the Parties agree as follows:
1. Chevron, BP and ASRC will forego filing with the United States
Supreme Court a petition for certiorari to review the Alaska
Supreme Court's decision in State of Alaska. Department of
Natural Resources; and Alaska Oil and Gas Conservation
Commission v. Arctic Slope Regional Corporation. and Standard
Alaska Production Company and Chevron U. s. A. Inc. , supreme
Court Nos. S-3400, S-3416, and S-3437, will cease any further
appeal or prosecution of that case, and will take any
affirmative steps necessary to bring the litigation to a
conclusion without further challenge to the decision of the
Alaska Supreme court.
2. In this Settlement Agreement, the term "KIC well data" means
any or all of the reports and information on the KIC #1 well
filed with the Alaska Oil and Gas Conservation Commission as
required by AS 31. 05. 035 (a) and any related confidential
information pertaining to the KIC #1 well that was disclosed
to DNR representatives at the presentation made by Chevron and
BP on May 13, 1992, in support of their application for
extended confidentiality for those reports and information.
3. The restrictions set out in paragraphs 4 through 7 hereof will
remain in effect only as long as the KIC well data are
required to be held confidential pursuant to AS 31.05.035(c).
These restrictions shall not apply to data which:
a. at the time of disclosure was developed by DNR and
already in the possession of DNR: or
b. as of May 13, 1992, was in the public domain or which,
after disclosure of the data, becomes part of the public
domain through no action or failure to act on the part of
DNR or its Designated Representatives (as defined below);
or
c. is hereafter lawfully acquired by DNR from a source other
than reports and information filed with the Alaska Oil
and Gas Conservation Commission as required by AS
31.05.035(a) or the May 13, 1992, presentation.
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4. Except as otherwise provided in this paragraph, DNR agrees
that no more than two (2) senior geoscientists in the employ
of the Division of Oil and Gas (referred to below as
"Designated Representatives") will have knowledge of the KIC
well data at a given time. Prior to the effective designation
of a successor Designated Representative, the other Parties
hereto will be given advance notice regarding the individual
and allowed the opportunity to express their respective
opinions on such designation. The limitation in this
paragraph on the number of DNR employees with knowledge of the
KIC well data will not preclude:
a. brief periods of overlap between the time the data are
disclosed to the successor of a departing Designated
Representative and the time the latter departs; or
b. disclosure of the data to a Director of the Division of
Oil and Gas in addition to two senior geoscientists, in
the event that the Director is not a geoscientist by
education and training (in which case the Director will
be considered another Designated Representative for
purposes of paragraphs 5 and 6 hereof); or
c. disclosure of the data to the Commissioner of Natural
Resources in addition to two senior geoscientists and
(pursuant to subparagraph b hereof) the Director of the
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d.
Division of Oil and Gas, when in the Commissioner's sole
discretion the Commissioner determines he or she has a
need to know the data (in which case the Commissioner
will be considered another Designated Representative for
purposes of paragraphs 5 and 6 hereof); or
the designation of a successor
Representative who is transferred
to a Designated
within DNR to a
position outside the Division of Oil and Gas, even if
this results in more than two geoscientists in the employ
of DNR having knowledge of the KIC well data.
5. DNR and its Designated Representatives will not keep notes or
other records, in any medium, containing or referring to any
of the KIC well data.
6. DNR's Designated Representatives will not disclose to or
discuss with any person(s) other than a Designated
Representative any portion of the KIC well data. DNR shall
use its best efforts to require that each Designated
Representative provide written assurance to DNR that the
commitment contained in this§ 6 shall remain in full force
and effect even if the Designated Representative is terminated
or otherwise ceases to be employed by DNR.
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7. This Agreement is not intended to limit DNR's authority to use
the KIC well data in carrying out its various statutory
responsibilities. DNR covenants and represents that it will
maintain the confidentiality of the KIC well data to the
extent the data are required to be held confidential pursuant
to AS 31. 05. 035 (c). In furtherance of its obligation to
maintain such confidentiality, DNR will not publicly refer to,
or confirm or deny, its use of the KIC well data in any
specific decision or action.
8. The parties acknowledge that, in furtherance of DNR's
statutory responsibilities, it may be necessary for a
Designated Representative from time to time to inspect the KIC
well data on file with the Alaska Oil and Gas Conservation
Commission. Prior to such inspection, DNR will notify the
other parties hereto and allow representatives of the other
parties to be present during such inspection.
9. DNR confirms that following the opportunity to review the KIC
well data, it has by letter dated May 14, 1992, granted an
extension of the confidentiality of the KIC well data pursuant
to the provisions of AS 31.05.035(c) and corresponding
regulation 11 AAC 83.153.
10. This Agreement shall be governed by and construed in
accordance with the laws of the State of Alaska.
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11. Chevron and BP represent that they made available to DNR
representatives at the May 13, 1992 presentation the true and
complete reports and information on the KIC #1 well filed with
the Alaska Oil and Gas Conservation Commission as required by
AS Jl.05.035(a), and that to the extent Chevron or BP
disclosed any additional related information it fairly
represented the actual data obtained from the KIC #1 well or
Chevron or BP's respective analysis or interpretation thereof.
DNR understands that Chevron, BP and ASRC otherwise make no
representations or warranties as to the quality and accuracy
of the KIC well data or any related information disclosed at
the May 13, 1992 presentation and assume no liability for any
damage or loss of any kind which may result from DNR's use of
such data or information.
12. To the extent that the memorandum dated May 12, 1992 from
Commission Harold Heinze to James Eason and Ken Boyd titled
"Review of Confidential Information Chevron KIC #1 (Jago River
No. 1)" (as clarified by the letter dated May 13, 1992 from
Commissioner Heinze to Messrs. Thoeni and Luttrell)
established rules or limitations regarding the use,
disclosure, discussion or examination of the KIC well data by
DNR or its employees, that memorandum is superseded by the
provisions of this Agreement as to use, disclosure, discussion
or examination of the KIC well data occurring on or after the
effective date of this Agreement.
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•
13. Any notice required or authorized under this Agreement shall
be given by regular United States mail, certified mail,
express delivery, or hand delivery and shall be complete when
received by the Party being notified. The addresses of the
Parties for notice purposes shall be as follows:
Chevron U.S.A. Inc. P.O. Box 1635
Houston, Texas 77251 Attention: Western Exploration Division Land Manager
BP Exploration (Alaska) Inc. P.O. Box 196612
Anchorage, AK 99512-6612 Attention: E. P. Zseleczky, Land Manager
Arctic Slope Regional Corporation P.O. Box 129
Barrow, AK 99723 Attention: Oliver Leavitt
Vice President - Land
Alaska Department of Natural Resources P.O. Box 107034
Anchorage, AK 99510-0734 Attention: Director, Division of Oil and Gas
14. This Agreement may be executed in several original
counterparts, any one or more of which may be signed by all or
by one ·or more of the Parties. All counterparts will
constitute one and the same Agreement, and the aggregate of
the counterparts signed by all of the Parties will have the
same force and effect as if all Parties to the aggregate
counterparts had signed the same instrument. This Agreement
shall be effective as of July 13, 1992.
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15. This Agreement shall be binding upon and inure to the benefit
of each of the Parties, their successors and assigns, as well
as their respective representatives, subsidiaries and
affiliates.
IN WITNESS WHEREOF, this Agreement µy , 1992.
l f-l, is dated this .i..!._:_ day of
DEPARTMENT OF NATURAL RESOURCES
CHARLES E. COLE ATTORNEY GENERAL
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CHEVRON U.S.A. INC.
By: _____________ _ Title: ------------
BP EXPLORATION (ALASKA) INC.
By: ___________ _ Title: -------------
ARCTIC SLOPE REGIONAL CORP.
By: ____________ _ Its: --------------
. . . JUL 13 '92 04!29PM AK RKY DIV 7137547854
is. This A.qraament ahall ~a binding upon and inure to the beneri~
of each of the Parties, their successors and assigns, as well
as their respective representatives, sutisidiaries and
affiliates.
IN Wl'l'NESS WHEREOF, this A9roement is dated this /!3./11 day ot __ ~J._u_/_',) _____ , 1992.
CEPARTMENT or NATtJRAL RESOtJRCES
By: Tit~l_a_: __________ _
CHARLES E. COLE Al"l'ORNEY GENERAL
Sy•~----------~--Assistant Attorney General
8
CHEWON U.S.A. INC.
Sy: ~ ~z7 «=--Titl~----~--------
BP EXPLOiaTION (ALASKA) INC.
By: Tit~le-.-.------------
ARCTIC SLOPE REGIONAL CORP.
By: ?ts_s ____________ _
JUL~13-92 HON 14:10 BP (ALASKA)-EXPLORATION FAX NO. 5645132 P. 11
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15. Thia A~reement shall ~e bindin9 upon and inure to th• benefit
or each of the Parties, their suooessors and assiqna, a• wall
aa their reepeative representatives, • ubsidiaries and
aftiliataa,
IN WITNESS WH!UOF, this Agreement is datad this __ day or __________ , 1992.
DEPARTMENT OF NATURAL RESOURCES
Br:-.-______ " T tle:
CHARLES E. COLE ATTORNEY GENERAt
By:~~-:-~-=------------Assistant Attorney General
CHEVRON U.S.A. INC,
By· 'l'it.,,...l_a_: -----------
BP EXPLORATION (ALASKA) INC.
~'MHf-~~----~Pl r~~-,-&,,11-;...;p,=-:..::;;.;;...~r..,__,- 1 - ll - ·
ARCTIC SLOPE REGIONAL CORP.
Sy: Its-,------------
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