City of Valdez v. Regulatory Commission of Alaska, Hilcorp Alaska, LLC, Harvest Alaska, LLC, Harvest Midstream I, L.P., Hilcorp Energy I, L.P., Hilcorp Energy Company, BP Pipelines (Alaska) Inc., and BP Corporation North America Inc. , City of Valdez v. Regulatory Commission of Alaska, Hilcorp Alaska, LLC, Harvest Alaska, LLC, Harvest Midstream I, L.P., Hilcorp Energy I, L.P., Hilcorp Energy Company, BP Pipelines (Alaska) Inc., and BP Corporation North America Inc.

548 P.3d 1067
CourtAlaska Supreme Court
DecidedMay 3, 2024
DocketS18178, S18347
StatusPublished
Cited by1 cases

This text of 548 P.3d 1067 (City of Valdez v. Regulatory Commission of Alaska, Hilcorp Alaska, LLC, Harvest Alaska, LLC, Harvest Midstream I, L.P., Hilcorp Energy I, L.P., Hilcorp Energy Company, BP Pipelines (Alaska) Inc., and BP Corporation North America Inc. , City of Valdez v. Regulatory Commission of Alaska, Hilcorp Alaska, LLC, Harvest Alaska, LLC, Harvest Midstream I, L.P., Hilcorp Energy I, L.P., Hilcorp Energy Company, BP Pipelines (Alaska) Inc., and BP Corporation North America Inc.) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Valdez v. Regulatory Commission of Alaska, Hilcorp Alaska, LLC, Harvest Alaska, LLC, Harvest Midstream I, L.P., Hilcorp Energy I, L.P., Hilcorp Energy Company, BP Pipelines (Alaska) Inc., and BP Corporation North America Inc. , City of Valdez v. Regulatory Commission of Alaska, Hilcorp Alaska, LLC, Harvest Alaska, LLC, Harvest Midstream I, L.P., Hilcorp Energy I, L.P., Hilcorp Energy Company, BP Pipelines (Alaska) Inc., and BP Corporation North America Inc., 548 P.3d 1067 (Ala. 2024).

Opinion

Notice: This opinion is subject to correction before publication in the PACIFIC REPORTER. Readers are requested to bring errors to the attention of the Clerk of the Appellate Courts, 303 K Street, Anchorage, Alaska 99501, phone (907) 264-0608, fax (907) 264-0878, email corrections@akcourts.gov.

THE SUPREME COURT OF THE STATE OF ALASKA

CITY OF VALDEZ, ) ) Supreme Court Nos. S-18178/18347 Appellant, ) (Consolidated) ) v. ) Superior Court Nos. 3AN-20-05915 CI ) and 3AN-21-04104 CI (Consolidated) REGULATORY COMMISSION OF ) ALASKA; HILCORP ALASKA, LLC; ) OPINION HARVEST ALASKA, LLC; HARVEST ) MIDSTREAM I, L.P.; HILCORP ) No. 7697 – May 3, 2024 ENERGY I, L.P.; HILCORP ENERGY ) COMPANY; BP PIPELINES (ALASKA) ) INC.; and BP CORPORATION NORTH ) AMERICA INC., ) ) Appellees. ) )

Appeal from the Superior Court of the State of Alaska, Third Judicial District, Anchorage, Catherine M. Easter, Judge.

Appearances: Robin O. Brena, Anthony S. Guerriero, and Laura S. Gould, Brena, Bell & Walker, P.C., Anchorage, for Appellant. David A. Wilkinson and Robert Kutchin, Assistant Attorneys General, Anchorage, and Treg R. Taylor, Attorney General, Juneau, for Appellee Regulatory Commission of Alaska. Anne Marie Tavella and Kristal Leonard, Davis Wright Tremaine LLP, Anchorage, for Appellees Hilcorp Alaska, LLC; Harvest Alaska, LLC; Harvest Midstream I, L.P.; Hilcorp Energy I, L.P.; and Hilcorp Energy Company. Michael S. McLaughlin, Patrick J. Coughlin, and Adam D. Harki, Guess & Rudd P.C., Anchorage, for Appellees BP Pipelines (Alaska) Inc. and BP Corporation North America Inc.

Before: Maassen, Chief Justice, and Carney, Henderson, and Pate, Justices, and Bolger, Senior Justice.* [Borghesan, Justice, not participating.]

PATE, Justice.

INTRODUCTION In this case, we review the superior court’s dismissal of administrative appeals from the Regulatory Commission of Alaska (RCA). The City of Valdez (Valdez) asserted a right to scrutinize information the RCA relied upon when deciding whether an oil company seeking to operate Alaska’s largest pipeline had the financial capacity to do so consistent with the best interests of the public. Valdez appealed to the superior court for review of two orders by the RCA: Order 6, which approved confidential treatment of certain financial statements that the oil company and its affiliates submitted to the RCA, and Order 17, which approved the transfer of a required certificate and the authority to operate the pipeline. The superior court dismissed Valdez’s appeals because it concluded Valdez lacked standing, Valdez failed to exhaust the available administrative remedies, and the case was moot. The court also ordered Valdez to pay a portion of the attorney’s fees of the oil company and other companies involved in the proceedings. Valdez appealed both decisions. We consolidated the appeals. We reverse the dismissal of the appeal of Order 6, affirm the dismissal of the appeal of Order 17, and vacate the award of attorney’s fees.

* Sitting by assignment made under article IV, section 11 of the Alaska Constitution and Alaska Administrative Rule 23(a).

-2- 7697 FACTS AND PROCEEDINGS A. BP Announced The Sale Of Its Alaska Assets And Sought Approval To Transfer Its Interest In The Trans-Alaska Pipeline System To Harvest Alaska. In 2019 BP p.l.c. (BP) announced it was planning to sell its Alaska oil and gas assets and exit Alaska. As part of this sale, “BP Pipelines (Alaska) Inc.” (BPPA), a subsidiary of BP, agreed to sell “substantially all of its Alaska assets,” including its interest in the Trans-Alaska Pipeline System (TAPS), to Harvest Alaska, LLC (Harvest Alaska).1 Alaska law requires pipeline carriers to obtain a certificate from the RCA before acquiring or operating pipeline facilities.2 The RCA may “attach terms and conditions” to the required certificate if “necessary for the protection of the environment and for the best interests of the oil or gas pipeline facility and the general public.”3 The certificate cannot be transferred to a new owner without RCA approval.4

1 Harvest Alaska is one of several affiliated companies that are wholly owned and controlled, through subsidiaries, by Hildebrand Enterprises. Harvest Alaska’s direct parent company is Harvest Midstream I, L.P. (Harvest Midstream). The general partner of Harvest Midstream is Harvest Midstream Company (HMC). When BPPA first sought approval to transfer its interest in TAPS to Harvest Alaska, Harvest Alaska was a wholly owned, direct subsidiary of Hilcorp Alaska, LLC (Hilcorp Alaska), another company owned and controlled, through subsidiaries, by Hildebrand Enterprises. Hilcorp Alaska is a wholly owned, direct subsidiary of Hilcorp Energy I, L.P. (HEI). The general partner of HEI is Hilcorp Energy Company (HEC). Hildebrand Enterprises remains the ultimate owner of both Harvest Alaska (through Harvest Midstream and HMC) and Hilcorp Alaska (through HEI and HEC). 2 AS 42.06.240(a) (requiring “a certificate of public convenience and necessity” issued by the RCA). 3 AS 42.06.240(d). 4 AS 42.06.305(a); see also AS 42.06.305(b) (providing RCA’s decision whether to approve transfer “shall be based on the best interest of the public”).

-3- 7697 BPPA and Harvest Alaska applied to the RCA for approval to transfer BPPA’s ownership interest in TAPS, its required certificate, and the operating authority under that certificate to Harvest Alaska. In connection with that application, Harvest Alaska and some of its affiliates filed certain required financial statements with the RCA,5 together with a petition seeking confidential treatment of those statements under AS 42.06.445(d) and 3 AAC 48.045.6 B. The RCA Took Public Comment And Issued Order 6, Granting A Petition For Confidential Treatment Of Financial Statements. The RCA invited comments on the transfer application and the associated petition for confidential treatment of financial statements.7 The RCA later said the comments it received “were split on whether [the RCA] should approve the applications as filed, or further scrutinize the transaction and consider imposing conditions on the approval of the application.” The RCA noted that the “majority of the comments

5 See 3 Alaska Administrative Code (AAC) 48.625(a)(7)(B) (requiring application for transfer of certificate of public convenience and necessity to include “the applicants’ most recent audited financial statements for the two most recent fiscal years preceding the date of the application”). 6 See AS 42.06.445(d) (allowing objection to public disclosure of information and requiring RCA to withhold information “from public disclosure if the information adversely affects the interest of the person making written objection and disclosure is not required in the interest of the public”); 3 AAC 48.045(a) (describing procedure for petitioning RCA to classify record as confidential, including “identifying the record . . . and setting out good cause, including facts, reasons, or other grounds” for confidential treatment); 3 AAC 48.045(b) (providing that “[g]ood cause to classify a record as confidential under this section includes a showing that (1) disclosure of the record to the public might competitively or financially disadvantage or harm the person with confidentiality interest or might reveal a trade secret; and (2) the need for confidentiality outweighs the public interest in disclosure.”). 7 The RCA also requested comment on a related motion that is not at issue in this appeal: Harvest Alaska had moved for a waiver of the requirement, found in 3 AAC 48.625(a)(7)(B), to provide the RCA with audited financial statements, explaining that it does not prepare audited financial statements. The RCA later granted the motion.

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548 P.3d 1067, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-valdez-v-regulatory-commission-of-alaska-hilcorp-alaska-llc-alaska-2024.