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Vol. 9, No. 36 Week of September 05, 2004
Providing coverage of Alaska and northern Canada's oil and gas industry

An initial step

BLM completes five Alpine satellites’ EIS; modifies ConocoPhillips’ plan

Kristen Nelson

Petroleum News Editor-in-Chief

The Bureau of Land Management has released the final environmental impact statement for ConocoPhillips Alaska’s Alpine satellites development plan. BLM said Aug. 30 that the final EIS contains the agency-preferred alternative, which modifies ConocoPhillips’ proposal to develop five satellites in the National Petroleum Reserve-Alaska and in the Colville River Delta.

The agency said major changes include: relocating portions of proposed gravel access roads and pipelines outside a three-mile setback for Fish Creek; raising pipelines to seven feet at the vertical support members, an addition of two feet to assist migrating caribou; lengthening the bridge across a channel of the Colville River; moving power lines from separate poles to cable trays mounted on the pipeline supports; and adding environmental enhancements to the access road to pad CD-4.

“We made a number of positive adjustments to reflect considerations raised by the public and cooperating agencies,” Henri Bisson, BLM’s Alaska state director, said in a statement. “Several key changes responded specifically to concerns about subsistence issues raised by residents of Nuiqsut which will also help protect the environment,” he said.

Bisson said what BLM is proposing “is consistent with the 1998 plan for this area.” While some production and development facilities will be within the Fish Creek three-mile setback, Bisson said, “the proposed location of these facilities is environmentally preferable and on that basis is contemplated by the exception clause outlined in the original 1998 plan.”

Final EIS initial development step

ConocoPhillips Alaska spokeswoman Dawn Patience told Petroleum News that the company was pleased that the final EIS is being released. She said ConocoPhillips appreciates the efforts of both the Bureau of Land Management, the lead agency on the final EIS, and the many other state and federal agencies that contributed. “These agencies demonstrated a professionalism working together on this project and giving all stakeholders the opportunity to participate,” she said.

“The final EIS is the initial step in development of these five satellites,” Patience said. She said ConocoPhillips will be reviewing stipulations in the document.

“A final decision to move forward on these projects won’t be sanctioned until after the record of decision is issued and the outcome of remaining permits are known.”

BLM spokesman Ed Bovy told Petroleum News that the agency anticipates that the record of decision will be signed sometime in October.

Nanuq a no-go under borough’s permit stipulations

Patience said the North Slope Borough has issued a permit for CD-4, the pad south of Alpine at the Nanuq discovery, but said ConocoPhillips “cannot move the project forward under the current permit stipulations.” She said she could not provide any more information because the company is negotiating those stipulations with the borough.

ConocoPhillips will continue to work with the North Slope Borough on the permit issues, she said, but: “The permits for this project must be in hand before a decision is made on this winter’s activity.”

Varied land ownership

Three of the proposed drilling pads, CD-5, CD-6 and CD-7, are in NPR-A. CD-3 is on state of Alaska land and CD-4 is on land owned by Kuukpik Corp., the Native corporation for the village of Nuiqsut. CD-5 is on land conveyed to Kuukpik within NPR-A.

Twenty to 30 wells would be drilled from each pad and the unprocessed, three-phase (oil, gas and water) crude oil would be sent to the Alpine central processing facility for processing. Processed oil would be transported through the existing pipeline system to the trans-Alaska pipeline.

BLM said the development plan represents an important expansion of the estimated 429 million barrel Alpine field. By 2006, initial production of more than 330 million barrels of additional oil is expected, the agency said.

The final EIS can be read on-line through the BLM website www.ak.blm.gov.



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