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Providing coverage of Alaska and northern Canada's oil and gas industry
January 2003

Vol. 8, No. 1 Week of January 05, 2003

Katalla meets ACMP standards; DGC issues final determination

Kay Cashman, PNA publisher

The state Division of Governmental Coordination said Dec. 24 that it has completed coordinating the state’s review of the proposed Katalla oil and gas project and found it to be consistent with the Alaska Coastal Management Program. The project, proposed by Anchorage-based independent Cassandra Energy Corp., involves drilling three oil and gas exploration wells near Katalla, 56 miles southeast of Cordova and the site of Alaska’s first commercial oil production in 1902.

Steel bridges over six stream crossings

In a letter to Cassandra President Bill Stevens, DGC project review coordinator Nina Brudie said the proposed project is located in the east Copper River Delta region, near the old Katalla town site. It is in the Chugach National Forest at township 5E, range 19S, sections 25, 26, 27, 28, 36, Copper River Meridian.

The project area involves state, private and federal land.

Cassandra proposes to use an ocean-going barge to off-load equipment and supplies at a site on the west side of the Katalla River at the former town site of Katalla on state land.

Up to three acres will be used to store equipment and supplies temporarily and to support transfer operations to smaller barges or boats.

The company will clear new growth spruce trees, leaving a 50-foot buffer between the storage area and an airstrip located north of the site. A 100-foot buffer will be maintained at the southern margin of the storage area along Irish Creek.

Drilling equipment, materials, supplies and personnel will be transported from the storage area by landing craft or shallow draft small barge upstream at high tide and off-loaded at a gravel landing area approximately 550 feet south of the existing access road on National Forest System lands.

Cassandra will construct a staging area of up to two acres adjacent to the Katalla River, at or near the landing area. The company expects to make 50 to 60 barge off loadings over a two to three week period when it sets up the drill rig and crew camp.

An existing 2.5 mile access road will be used to transport equipment, supplies and materials to private land known as Claim No.1, where the crew camp and drill site will be located.

Cassandra plans to place temporary prefabricated steel bridges over six stream crossings.

Response planning for 5,500 barrel spill

Onsite operations will be conducted on three pads: one for the camp, one for drilling and one for storage. The camp will be capable of housing 66 people.

Drilling muds and cuttings will be collected and stored on an adjacent pad and disposed of either by grinding and injection in a well (if the field is commercial) or solidified and disposed of on site.

Under this option, freshwater drilling muds and cuttings from the exploration well will be mixed with cement to create an inert waste monofill. Prior to solidification, drilling wastes will be stored in a lined pit inside an on-pad structure.

DGC said operations will be conducted under a state-approved Oil Discharge Prevention and Contingency Plan. The plan outlines specific response planning and response options for a crude spill of 5,500 barrels per day.

The equipment storage area at the Katalla town site will be on state lands. The Katalla River barge landing, staging area and the access road will be on National Forest System lands. The drill site and crew camp will be on private lands secured by Cassandra from Del and Ginger Welch, formerly of Valdez, under a lease-purchase agreement.

DGC said there is a possibility that barging operations would be suspended during August through mid-September “to avoid possible conflicts with intertidal pink salmon spawning on the Katalla River.”

Forest Service permits contingent on ACMP review

The decision follows a Dec. 12 announcement by the Chugach National Forest saying it had approved a plan of operations for oil and gas drilling.

The Forest Service permits were contingent on a successful ACMP review.

Chuck Frey, planning staff officer for the Chugach National Forest, told PNA that drilling could begin in late March if no appeal is filed within the 45-day appeal period.






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