The Colville Delta unit west of Kuparuk, where Phillips Alaska Inc. and Anadarko Petroleum Corp. started up the Alpine field in mid-November, could see two satellites in production by the end of 2003.

While the companies have not made a final determination that the accumulations are commercial, Phillips has filed a draft environmental evaluation document proposing facilities and alternatives for development of Colville Delta South — approximately four miles south of the Alpine central processing facility — and Colville Delta North approximately five miles north of Alpine.

"Presently," Phillips said, "these accumulations have not been deemed commercial and are dependent on future delineation drilling to confirm commerciality," but the company said each is estimated to contain 50 million barrels of reserves. If they do prove commercial, Phillips and Anadarko could start pad, road and airstrip work next winter.

Phillips told the state that a gravel drill site would be built at each prospect with three-phase (oil, water and gas) hydrocarbon production to the Alpine central processing facility. The company would connect Colville Delta South (Nanuk) to Alpine with a 3.8-mile gravel all-weather road. Access to Colville Delta North (Fiord) would be via a 6,000-foot airstrip.

Construction would start next winter with production set to begin in late 2003.