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North Slope, Beaufort Sea sale date set
The state will open bids Oct. 22 for its 2008 North Slope and Beaufort Sea areawide oil and gas lease sales.
The Alaska Department of Natural Resources Division of Oil and Gas said July 25 that the bid opening will begin at 9 a.m. at the Wilda Marston Theater at the Loussac Public Library in Anchorage.
The North Slope areawide sale lies between the Arctic National Wildlife Refuge and the National Petroleum Reserve-Alaska; the southern boundary is the Umiat baseline.
The Beaufort Sea sale includes state-owned tide and submerged lands from Point Barrow to the Canadian border. Beaufort Sea tracts 27 through 39, east of Kaktovik, and tracts 555 and 557 through 573, between Tangent Point and Point Barrow, are deferred from this lease sale.
Minimum bid is $10 per acre Both sales have cash bonus bidding with a minimum bid of $10 per acre on all tracts.
Royalty rates and length of lease vary by area.
For the North Slope sale, all tracts north of the North Slope royalty line have a fixed royalty rate of 16.66667 percent and a lease length of five years; all tracts south of the North Slope royalty line have a royalty rate of 12.5 percent and a lease term of seven years.
For the Beaufort Sea sale, tracts 1 through 26 have a fixed royalty rate of 12.5 percent; all other tracts have a fixed royalty rate of 16.66667 percent.
There are three lease lengths in the Beaufort Sea sale: Tracts 1-26 have a 10-year lease term; tracts 40-77, 500-554 and 556 have seven-year terms; and all other tracts have five-year terms.
For details, including tract deletions, tract deferrals and maps, see the division’s Web site at www.dog.dnr.state.ak.us/oil/.
—Petroleum News
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