Update: the fight for transparency continues!

The Alaska Supreme Court released an opinion on May 3, 2024 allowing Valdez to continue their fight for transparency from Hilcorp.

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Fighting for transparency in Alaska’s energy future.

Our Future, Our Voice.

In June of 2023, the Alaska Supreme Court heard oral arguments in the case of The Regulatory Commission of Alaska v. The City of Valdez. This case challenged the terms of the BP-Hilcorp sale which was approved on a secret record in 2019.

We teamed up with the Fairbanks Climate Action Coalition to hold a rally and pack the court on the day of the oral arguments, demonstrating the public’s vested interest in the transparency of the companies profiting off of our natural resources.

Video: Jeff Chen, Native Movement

Photos: Tanner Johnson

What is wrong with Hilcorp?

In August 2019, BP announced plans to sell all of its Alaska assets to affiliates of Texas-based oil company Hilcorp Energy Co. This nearly $6 billion sale was unprecedented in the relatively short time since Alaska’s oil boom of the 1970s. BP is the first dominant Trans-Alaska Pipeline System owner to entirely exit our state under untested promises to remediate infrastructure at the end of TAPS, but it will not be the last. Moreover, unlike BP, a multinational and publicly traded company, Hilcorp and its midstream counterpart Harvest have not been required to disclose basic financial information to the public as limited liability companies. For this reason, as well as Hilcorp’s sketchy record of environmental and safety violations, the sale caused serious concerns within Alaska and raised eyebrows worldwide. 

“Alaskans deserve to know more about companies profiting from our natural resources, like Hilcorp”

  • Despite the fact that a sale of this magnitude had both never happened before and never happened between a public and privately owned company, the Regulatory Commission of Alaska, or RCA, opted to let BP and Hilcorp keep confidential both details of the deal as well as Hilcorp’s financial health.

    The RCA inevitably approved the deal on this secret record in December 2020. Essentially kept in the dark, this meant that Alaskans effectively did not have real assurance that Hilcorp could either truly afford to become Alaska’s second-largest oil and gas operator or afford to respond appropriately in the case of an environmental disaster. If BP wanted out, state officials seemed to decide they could do nothing more than not make an enemy out of Hilcorp, so a green light based upon a secret record came as no real surprise.

  • Effectively, if the process of approving the BP-Hilcorp transfer on a secret record is ignored, it will set a regressive precedent for future sales and transactions of Alaska oil and gas. Alaskans deserve to know more about the multibillion-dollar companies making enormous profits from our natural resources. Alaskans cannot advocate for comprehensive fiscal policies, oil taxes or other legislation without the information necessary to create good policy.

  • On June 27 at 1:30pm, the Alaska Supreme Court will hear arguments on the city of Valdez’s cases related to the Regulatory Commission of Alaska’s approval of the BP-Hilcorp deal. Alaska Supreme Court oral arguments are open to the public and will also be live-streamed. Alaskans need to attend this particular court hearing in person to demonstrate to the powers that be that the public is still watching and cares about this issue.

    To get involved reach out to us at info@akpirg.org

Hilcorp’s History of Noncompliance Violations and Environmental Harm.

#Spilcorp