DNR seeks geothermal resources nominations

Petroleum News

The Alaska Department of Natural Resources, Division of Oil and Gas, has begun soliciting nominations of lands with geothermal resources for potential future disposal.

The division said April 15 that letters identifying state lands for future geothermal disposition must be received by Nov. 9; further details are available at http://dog.dnr.alaska.gov/services/explorationlicensing.

“Beginning this year, and biannually thereafter, the Division will solicit an informal Nomination of Lands period to identify areas for designations as proposed geothermal disposal areas (PGDA) for potential future geothermal lease sales or prospective permits. Nominated lands are not automatically designated as PGDAs or offered for lease or prospective permit,” the division said.

“Alaska is located along the most active tectonic and volcanic region in the world,” the division said, but the state’s geothermal potential is largely untapped, although the Chena Hot Springs Resort has an electricity and heat-generating power plant, in operation since 2006 with a generating capacity of 400 kilowatts.

The division said response to the call for nominations will determine whether it will issue a best interest finding that makes certain lands available for exploration, with subsequent issuance of permits or leases. “All state-owned, unencumbered lands south of the Umiat Baseline are potentially available for geothermal resource exploration,” the division said.

Prospecting permits for geothermal are valid for two years, with a one-year renewal, and may be converted to a non-competitive geothermal lease. Competitive geothermal leases have a primary term of 10 years and may be renewed for one additional five-year term.

The division said links for locations of geothermal resources in the state are available on its website.

- Petroleum News