The statement said that Gov. Frank Murkowski was clear that consideration of the state buying back any coalbed methane leases in the Mat-Su and on the Kenai Peninsula would only be after all other options are exhausted.
“The state will consider buybacks of shallow natural gas leases only as a last resort,” Murkowski said at a press conference Dec. 4 in response to a question.
The Alaska Department of Natural Resources is engaged in crafting rules for coalbed methane development and the governor’s office said the state remains committed to the development of coalbed methane, both for use in Southcentral Alaska and as a significant source of rural energy.