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State publishes notice for spring sales
Kristen Nelson Petroleum News
The Alaska Department of Natural Resources’ Division of Oil and Gas has published a notice of sale for its spring areawide oil and gas lease sales. Offerings for the bid opening May 22 will be for Cook Inlet Areawide 2019W and the Alaska Peninsula Areawide 2019 competitive oil and gas lease sales.
In-person bid submission will be May 20 from 9 a.m. to 4 p.m. in Suite 1100 of the Atwood Building in Anchorage or by mail to the division.
The public bid opening will be May 22 at 9 a.m. in Suite 102 of the Atwood Building.
Complete sale details are available on the division’s website http://dog.dnr.alaska.gov/Services/BIFAndLeaseSale under current lease sales.
There are no current leases in the Alaska Peninsula areawide sale area, which encompasses some 4 million gross onshore acres and 1.75 million gross acres of offshore state waters. There are 1,047 tracts offered in the sale, which is on the north side of the Alaska Peninsula from the Nushagak Peninsula in the north, south and west to the vicinity of Cold Bay.
Division data show 213 active leases in the Cook Inlet areawide sale area, which encompasses some 4.2 million gross acres divided into 815 tracts, consisting of state-owned uplands generally south and west of Houston and Wasilla in the Matanuska-Susitna Borough, the Anchorage bowl, the western shore of Cook Inlet from Beluga River to Harriet Point, and tide and submerged lands in upper Cook Inlet from Knik Arm and Turnagain Arm south to Anchor Point ant Tuxedni Bay.
Minimum bids Minimum bids are $5 per acre for the Alaska Peninsula and $15 per acre for Cook Inlet. Primary lease terms are 10 years for the Alaska Peninsula and eight years for Cook Inlet, with a one-time extension for the Cook Inlet leases under certain conditions.
One of the tracts in the Cook Inlet sale, Stump Lake Tract C1057, contains surface improvements. The division said a new lessee may enter into an agreement for assumption of the assets, otherwise, obligation to dismantle, remove and restore those assets would remain with previous lessees.
The royalty rate is 12.5 percent for both lease areas.
Annual rental rates for the Alaska Peninsula sale are $1 per acre for year one; $1.50 per acre for year two; $2 per acre for year three; $2.50 per acre for year four; and $3 per acre for years five through 10.
For Cook Inlet, the annual rental rate is $5 per acre for years one through four and $10 per acre for years five through eight.
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