State, feds summer lease sales? ANWR 1002 maybe, NPR-A no go
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Kay Cashman Petroleum News
On Feb. 5, the Alaska Department of Natural Resources' Division of Oil and Gas posted a public notice saying they will offer all available state acreage in the Beaufort Sea, North Slope and North Slope Foothills Areawide oil and gas lease sale areas, tentatively in the summer of 2026.
Why summer? And does this preclude the regular fall or winter lease sale normally held in conjunction with federal lease sales?
Summer because the feds are looking to hold NPR-A and ANWR 1002 (coastal plain) area lease sales this summer. And no, this does not preclude a fall/winter (usually November) lease sale.
The federal NPR-A lease sale is scheduled to begin opening bids on March 18.
What this means is the division can't hold a simultaneous sale with BLM for NPR-A this time. The division must complete the call for new information process, then must issue a sale notice at least 45 days before a sale. BLM is only required to issue notice 30 days prior to a sale.
For the ANWR coastal plain sale area, BLM is still in the call for nominations and comments phase. If they give the Division of Oil and Gas enough notice, and the division's best interest finding review process is complete, it is possible the division might be able to hold a simultaneous sale. If they do, readers will see a notice from the division's leasing emailer.
On Feb. 5, the Division of Oil and Gas said it is requesting substantial new information concerning Beaufort Sea, North Slope and North Slope Foothills that have become available over the past year.
Based on the information received, the division will either issue supplements to the findings or issue decisions of no substantial new information for these lease sales.
The most recent Beaufort Sea Areawide final best interest finding was issued in 2019. The most recent North Slope Areawide final best interest finding was issued in 2018. The most recent North Slope Foothills Areawide final best interest finding was issued in 2021. No supplements have been issued for these areawide lease sale areas. The findings and supplements are located at: http://dog.dnr.alaska.gov/Services/BIFAndLeaseSale.
Areawide lease sales Alaska holds annual competitive oil and gas lease sales in five defined geographic areas, called areawide lease sales. Before the division may hold an areawide lease sale in any of the five geographic areas, Alaska law requires a written finding saying it is in the state's best interest to have a lease sale.
A best interest finding is generally valid for 10 years. It describes facts and relevant laws pertaining to the proposed lease sale area and discusses the potential effects of oil and gas exploration, development and production, and transportation. It also contains mitigation measures that lessees must follow.
The Beaufort Sea Areawide lease sale area covers about 1.7 million acres, 572 tracts ranging in gross area from 520 to 5,760 acres. These tracts are located within the North Slope Borough and mostly consist of state-owned tide and submerged lands in the Beaufort Sea between the Canadian Border and Point Barrow.
The North Slope Areawide lease sale area covers about 5.1 million acres, 3,137 tracts ranging in gross area from 640 to 5,760 acres. These tracts are entirely within the North Slope Borough between the Canning River and ANWR on the east and the Colville River and NPR-A on the west.
The North Slope Foothills Areawide lease sale area covers approximately 7.6 million acres, divided into 950 tracts ranging in gross area from 480 to 5,760 acres, between ANWR and NPR-A, south of the Umiat baseline south to the Gates of the Arctic National Park and Preserve.
Only those tracts in which the mineral estate is free and unencumbered are included in any lease issued.
Substantial new information must be received by the division by 5:00 p.m. on March 10 to be considered.
--KAY CASHMAN
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