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Vol. 22, No. 10 Week of March 05, 2017
Providing coverage of Alaska and northern Canada's oil and gas industry

Slowdown for GMT-2

Native Village of Nuiqsut has asked BLM to delay consideration of NPR-A project

TIM BRADNER

For Petroleum News

A protest from the village of Nuiqsut has thrown a kink into ConocoPhillips’ schedule for its GMT-2 project in the National Petroleum Reserve-Alaska. The company had hoped to have construction begin on the project in 2018 and production to start in late 2020 but a slip in the schedule for preparing a supplemental environmental impact statement, or SEIS, may put that in jeopardy.

GMT-2 is expected to produce between 25,000 barrels per day to 30,000 barrels per day.

“BLM received a letter from the Native Village of Nuiqsut, or NVN, expressing major reservations about the GMT-2 project and asked BLM to delay its consideration,” of the project, BLM spokeswoman Lesli Ellis-Wouters said in an email.

“The BLM took time to consult with the Native Village of Nuiqsut and respond to that request (to delay GMT-2), explaining that there is a statutory obligation to respond to ConocoPhillips’ submittal of an application for permit to drill, but that the BLM will consider and address NVN’s concerns during the NEPA (National Environmental Protection Act) process,” Ellis-Wouters said.

“It was appropriate for BLM to address these concerns prior to the publication of a NOI (Notice of Intent),” for preparation of a supplemental EIS for GMT-2.

“BLM is committed to working with all stakeholders to address their needs and concerns throughout the GMT-2 SEIS process,” she said.

The Native Village of Nuiqsut is the tribal group for the village of Nuiqsut, which is near the producing Alpine field and a few miles east of the areas ConocoPhillips plans to develop in the Greater Mooses’ Tooth unit of NPR-A. The tribal group should be not confused with Kuukpik Corp., the for-profit village corporation for Nuiqsut, which generally supports oil development in the region, or the city of Nuiqsut.

Native Village of Nuiqsut was also part of the lengthy litigation, in a coalition with environmental groups, against the CD-5 project and construction of a bridge across the Colville River.

BLM now plans to publish the draft SEIS between October 2017 and February 2018 with a possible record of decision, the final go-ahead for permits, between January and May, 2018.

“These dates are estimates only. The timeline has been shared with all stakeholders. We are working closely with ConocoPhillips to produce a legally defensible and efficient NEPA document,” Ellis-Wouters said.

ConocoPhillips had hoped to have the project producing in the fourth quarter of 2020, according to presentations the company made to Alaska business groups in mid-2016.

GMT-2 is the third in several projects ConocoPhillips and its minority partner, Anadarko Petroleum Corp., have planned in the northeast NPR-A. The first project, CD-5, on the NPR-A across the Colville River from the Alpine field, is now in production.

The second, GMT-1, eight miles southwest of CD-5, is now in construction. It is expected to be completed in 2018 and will produce 30,000 barrels per day at peak.

GMT-2, eight miles southwest of GMT-1, would be the third project. In January ConocoPhillips announced what could be its fourth NPR-A project, Willow, which is a few miles farther west of GMT-2.



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