|
BLM offers 8 million acres in NPR-A Acreage includes northeast, northwest planning areas, acreage relinquished since 2002 sale, new area north of Teshekpuk Lake By Kristen Nelson Petroleum News
The Bureau of Land Management said Aug. 23 that it will offer 8,036,486 acres in 696 tracts in the northeast and northwest National Petroleum Reserve-Alaska at a Sept. 27 lease sale.
Leases on 183,200 acres relinquished since the 2002 sale will be reoffered, along with some 373,000 acres north of Teshekpuk Lake which will be offered for the first time following the January 2006 completion of a revised land use plan for the northeast NPR-A planning area. BLM said Teshekpuk Lake and areas along the Colville River will not be leased. Bid opening set for Sept. 27 The bid opening will be at 9 a.m. Sept. 27 at the Z.J. Loussac Public Library in Anchorage.
“In order to mitigate possible impacts to biological and subsistence values surrounding Teshekpuk Lake, BLM has crafted 11 additional stipulations that will apply to biologically sensitive areas,” acting state director Julia Dougan said in a statement. “Some areas will also need to have another three years of monitoring and study before we will authorize activities beyond winter exploration,” Dougan said. Minimum bids $25, $5 Minimum bids for high potential tracts are $25 per acre with a 16.67 percent fixed royalty rate, for low potential tracts $5 per acre with a 12.5 percent royalty rate and $25 per acre minimum bid for tracts A through G north of Teshekpuk Lake, with a 16.67 percent royalty rate. Tracts A through G are from 40,000 to 60,000 acres per tract; the high potential tracts are one-quarter of a township (approximately 5,760 acres per tract); and the low potential tracts are one-half of a township (approximately 11,500 acres).
Leases have initial terms of 10 years.
The Energy Policy Act of 2005 allowed leases to be extended if a well is drilled capable of producing in paying quantities, renewed for 10 years if there is a discovery not capable of producing in paying quantities or extended for 10 years without a discovery for a fee of $100 per acre “provided exploration has been pursued diligently.”
BLM said it has issued a proposed rulemaking to implement the change in lease terms and said the final regulations “should be in effect by this time next year.” Those rules “will be applicable to all existing leases and all leases issued through this lease sale.” Satellite production encouraged To encourage development of small fields in NPR-A whose economic margins would not support onsite production facilities, supplemental lease terms apply if a lease is developed and produced as a satellite, with separation at a central facility on a lease, field or unit not part of the field or unit that includes this lease.
Facility fees may be deducted in calculating the value of production for royalty; facility fee or allowance may not exceed $2 per barrel of oil equivalent; movement of raw production to the central facility from an accumulation point on this lease or the unit of which it is a part will be regarded as transportation, not gathering; and the total of all transportation and facility fee allowances may not exceed 50 percent of the value of production for royalty purposes during that production month. Two lawsuits pending on BLM's decision to open northeast to leasing BLM also said there are two pending lawsuits on its decision to open the northeast portion of NPR-A to oil and gas leasing, both of which have been fully briefed and both with decisions pending, one in the D.C. Federal District Court and one in the Alaska Federal District Court.
| 