The DNR commissioner's preliminary conclusion was that the applicant is fit, willing and able to construct, operate, maintain and terminate the proposed Pikka Sales Oil Pipeline under an AS 38.35 ROW lease as presented and described in their application and supplemental information.

The Feb. 1, 2022, application was from Oil Search (USA) Inc., or OSU.

The proposed Pikka Sales Oil Pipeline would transport sales-quality oil from the Nanushuk Operations Pad, or NPF, in the Pikka Unit to a tie-in pad, or TIP, at Kuparuk Pipeline Extension approximately 22 miles east, all on state lands, for eventual delivery to the trans-Alaska pipeline for shipment outside of Alaska.

Seawater and gas pipelines, authorized separately under ADL 421723, will run parallel to the sales oil pipeline on the same pipeline support structure between the NPF and TIP.

The Pikka Sales Oil Pipeline will be an aboveground line that will operate at a maximum operating pressure of 1,480 pounds per square inch gauge, transporting 80,000 barrels of oil per day during Pikka Phase I, which Santos, the owner of OSU and Pikka operator OSA, Oil Search (Alaska), (51%) recently sanctioned in conjunction with 49% partner Repsol.

OSU proposes a 300-foot-wide construction ROW; reduced to a 60-foot operational ROW.

According to DNR the applicant proposes to start construction of the Pikka Sales Oil Pipeline during the fourth quarter of 2023 with initial ice pad and ice road construction to support pipeline construction. Pipeline construction is proposed to start the first quarter of 2024 and startup oil delivery is proposed for 2025, although Santos and Repsol recently said startup will likely be in 2026.

The public comment period for this decision begins Sept. 2 and extends through 5 p.m. Oct. 7. Written comments may be emailed to: [email protected] or faxed to 907-269-6578 or submitted by U.S. Mail or in person to: Alaska Department of Natural Resources, Division of Oil and Gas, State Pipeline Coordinator's Section in Anchorage.

DNR will hold three public hearings; the first on Oct. 5, either as an in person hearing in the community of Nuiqsut, or online, whichever the city determines is best for the community. Details on this hearing will be available at:

https://dog.dnr.alaska.gov/Services/Pipeline/Pikka_Sales_Oil_Pipeline.

The other two hearings will be online on Oct. 7 at 12 p.m. and 6 p.m. Information on how to connect to these online public hearings will be available at:

https://dog.dnr.alaska.gov/Services/Pipeline/Pikka_Sales_Oil_Pipeline.

This DNR commissioner's preliminary conclusion is subject to further consideration of all comments submitted during the public comment period for this decision.

- KAY CASHMAN

See full story in Sept. 11 issue of Petroleum News, available online Thursday, Sept. 8 at www.petroleumnews.com.

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

PO Box 231647, Anchorage AK 99523-1647