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NEWS BULLETIN

March 30, 2006 --- Vol. 12, No. 21March 2006

Kerr-McGee and DOG sign land use permit for Nikaitchuq development

Kerr-McGee Oil and Gas Corp. and Alaskaís Division of Oil and Gas have both signed the land use permit for constructing a production and processing pad, and a gathering line, near Oliktok Point in the Kuparuk River unit, Bill Van Dyke, acting director of DOG has told Petroleum News. Signing of the permit allows facility construction to start.

On March 28 Petroleum News reported that DOG had issued a decision granting Kerr-McGee an easement within the ConocoPhillips-operated Kuparuk River. The land use permit is associated with that easement.

Obtaining access to tidelands at Oliktok Point and a corridor for a gathering line has been one of two issues holding up the Nikaitchuq development. The state has not yet announced a decision on the other issue, a request by Kerr McGee for royalty relief for Nikaitchuq.

Kerr-McGee spokesman John Christiansen has told Petroleum News that the company is still working towards sanctioning the Nikaitchuq development.

Editorís note: Watch for the full story on Nikaitchuq in the April 2 edition of Petroleum News.

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