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BIF out for 2008-17 North Slope lease sales Two substantive changes in mitigation measures: bear interaction plans required; pipelines must be elevated minimum of seven feet Kay Cashman Petroleum News
In order to hold areawide oil and gas lease sales the State of Alaska’s Division of Oil and Gas director has to make a best interest finding every 10 years for each of the geographical areas in which the division holds sales — the North Slope, Cook Inlet, Alaska Peninsula, North Slope Foothills and Beaufort Sea. The division has just released for public comment the first of five preliminary BIFs; this one for the North Slope region. It includes an Alaska Coastal Management Program consistency analysis and can be found online at www.dog.dnr.state.ak.us/oil/products/publications/northslope/nsaw08-ff_toc.html.
The purpose of the finding, which is expected to be issued with the ACMP analysis in September, is to determine whether the sales are in the best interest of the state and should be conducted.
To facilitate this, the division collected agency comments and socio-economic and environmental information to consider the potential effects of lease sales in the North Slope region, which consists of all unleased, state-owned lands lying between the National Petroleum Reserve-Alaska on the west and the Arctic National Wildlife Refuge on the east, and from the Beaufort Sea on the north to the Umiat Meridian Baseline in the south.
Sale terms not yet determined Allison Iversen, a natural resource specialist with the division, told Petroleum News April 25 that there were “no substantive changes” from the first areawide BIF in 1998, although bidding methods, minimum bid and sale terms have not yet been determined.
“Chapter 8 states that the sale terms will be determined annually, prior to issuing the notice of sale. Sale terms are always based on the pre-sale analysis of economic, engineering, geological and geophysical data, including the petroleum potential of available acreage,” Iversen said.
The sale area boundaries have not changed, she said.
When asked if the Point Thomson leases would be included in the 2008 sale, Iversen deferred to Nan Thompson, petroleum manager in charge of units.
Thompson said, “Those leases have not currently been designated for the 2008 North Slope sale. DNR has not made a final decision about when or how that acreage will be sold.”
The largest changes in the BIF, Iversen said, “are in the mitigation measures and lessee advisories,” but “these changes are more in format than substance. The mitigation measures have been completely re-formatted to make them easier to add — and/or delete — measures as necessary without re-numbering all of the measures.”
In the new BIF, the mitigation measures are organized into seven major topics, identified by Iversen as: facilities and operations; fish and wildlife habitat; subsistence, commercial and sport harvest activities; fuel, hazardous substances and waste; access; prehistoric, historic and archeological sites; and local hire, communication and training.
“Because the division will be updating all of the areawide findings in the near future, we took the opportunity to standardize mitigation measures statewide, where appropriate,” Iversen said.
“Obviously, some measures applicable in Cook Inlet or the Alaska Peninsula will not be applicable to the North Slope. Regardless, standardizing the mitigation measures will assist in permitting for both the state and industry.”
Error in Chapter 5 That said, “at first blush” the mitigation measures appear to have undergone massive changes, but Iversen said only two major substantive changes have been made.
The first is, all pipelines “must now be elevated a minimum of seven feet — mitigation measure 1.h.”
And, second, bear interaction plans are now required — mitigation measure 2.e.iii.
“The mitigation measure printed in the finding is in error — it states that the plans are recommended,” but the division “does intend to require the bear interaction plans and will make this edit for the final finding,” Iversen said.
In Chapter 5, which discusses the potential impacts and mitigation measures, she said there are “several references to the plans as required, not recommended. I apologize for the error and any confusion. The bear interaction plans will be submitted at the plan of operation stage and will be reviewed by OHMP staff.”
As for the rest of the finding, “new wildlife, habitat, subsistence, economic and other pertinent information has been incorporated,” Iversen said.
Once a finding has been completed, the division can conduct lease sales in the area for 10 years. However, annually, before holding a sale, the agency, which is part of the Alaska Department of Natural Resources, “must determine whether a supplement to the finding is required by issuing a call for comments,” Iversen said.
Based on the comments received, the division then issues either a finding of no new substantial information or a supplement to the finding. Additionally, the agency has to issue a notice of lease sale at least 45 days prior to the sale, detailing the sale terms.
The public comment period for the North Slope areawide lease sale to be held this fall just closed. Iversen said the comments the division receives will be compared to the 1998 finding and mitigation measures, not the new one.
“Similarly, comments submitted on this preliminary finding will be incorporated into the final finding, but will not necessarily impact the 2007 sale scheduled for October,” she said.
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