NEWS BULLETIN

January 15, 2020 --- Vol. 26, No.04January 2020

Placer unit development appears to be moving forward

The dispute between Alaska Department of Natural Resources' Division of Oil and Gas and ASRC Exploration appears to be close to settlement with today's public notice by the U.S. Army Corps of Engineers regarding a recent permit application received from AEX for its North Slope Placer unit.

The Placer unit was terminated by the division in July, but an email from DNR Deputy Commissioner Sara Longan with the following statement from Commissioner Corri Feige confirmed a settlement is in the works: "ASRC Exploration LLC and the Department of Natural Resources continue to work closely together to move the Placer unit forward into development and, ultimately, production. We are hopeful to resolve soon."

The Corps permit applied for by AEX, a subsidiary of Arctic Slope Regional Corp., is for work in waters of the United States, specifically in the Miluveach River, with the possible end result of connecting Placer to the Mustang field operated by Brooks Range Petroleum, where Placer oil might be processed.

Per the 30 day public notice, the project site is located within sections 4, 9, 15, 15, 22, 26, 27 of township 11 north, range 7 east, Umiat Meridian; Latitude 70.31429º N., Longitude 150.3745º W.; near the village of Nuiqsut. The proposed gravel road will take off from the existing gravel road between the Mustang pad and the Mustang gravel pit near section 35 of township 1N, range 7E, UM.

The Mustang pad is about 45 miles west of Deadhorse and can be accessed via the Spine Road. The purpose of the Corps permit is to "develop oil within the Kuparuk C reservoir, contained within the Placer unit," the public notice said.

The work AEX proposes is to discharge approximately 68,000 cubic yards of gravel to construct an approximately seven-acre gravel pad, the top width of which varies between 250 and 400 feet and the bottom width varies between 270 and 420 feet, with a length of 1,000 feet. The pad will be 5 feet high (with 2:1 fill slope.).

Approximately 325,000 CY of gravel will be used to build a seven-mile access road. The dimensions of the road will be 24 feet wide at the top, 44 feet minimum bottom width, 5 to 6 feet high, 2:1 fill slope.

The road will have a 37-acre footprint, and a three-phase pipeline with vertical support members will transport fluids from the pad to a "nearby processing facility" (unnamed). Total footprint of the Placer project is 45.5 acres.

- KAY CASHMAN

See full story in the Jan. 19 issue, available online Friday, Jan. 17 at www.PetroleumNews.com.

For information on PN's news bulletin service, call 907-522-9469.

PO Box 231651, Anchorage, AK 99523 - 1651


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