Where exactly is the produced water supposed to sit? Ponds will not work in this part of the world. Also, anything unconventional on the North Slope is going to have a hell of a time getting product to market or competing for capacity in TAPS. Just look at the owners and tell me whose interests they will put first. Everyone who has worked that part of the world knows the smaller players in AK, with low production (and in this case it may well be seasonal production, i.e. ship-or-pay will kill their economics) get the less desirable slice in aggregation to Valdez. I would bet on 88E's conventionals first, if they actually had half-decent acreage, that is.
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