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Providing coverage of Alaska and northern Canada's oil and gas industry
May 2009

Vol. 14, No. 20 Week of May 17, 2009

State puts out contract for bullet line work

The Department of Natural Resources is planning to spend up to $3 million on “environmental support services” to progress a gas pipeline to markets within Alaska.

The contract is the second put to bid since the Legislature appropriated $7 million for a project to bring new natural gas supplies to communities from Fairbanks to Anchorage.

The contract, put to bid on May 12, will run from June 19, 2009, to June 30, 2011.

The contract involves collecting information about wetlands and plants, fish and wildlife, and cultural resources, as well as going through existing literature to look for gaps.

According to the state, the existing studies will come not only from state agencies, but also from Enstar Natural Gas, a private utility pursuing an in-state gas pipeline in Alaska.

DNR put out a $6 million contract in April for a contractor to gather information needed to put together a draft Environmental Impact Statement for the gas pipeline.

Alaska In-State Gas Line

The state is calling the project the Alaska In-State Gas Line. The state describes the project as a “bullet line,” a term used to describe a pipeline from northern Alaska into Anchorage and meant to distinguish the project from a larger pipeline to Outside markets.

However, the draft EIS proposal also requires the contractor to look at using a spur off that larger line as a way to deliver natural gas supplies to markets within the state.

The Alaska Natural Gas Development Authority is planning to spend up to $50,000 to evaluate the Ahtna 1-19 well drilled to explore a gas prospect near Glennallen.

ANGDA wants a sense of the size, life and commerciality of the prospect.

ANGDA is pursuing a pipeline or spur line project running through Glennallen.

—Eric Lidji






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