State proposes regulations for pipeline right-of-way renewal

Petroleum News Alaska Staff

The state has regulations for pipeline rights-of-way renewal, including the trans-Alaska pipeline, out for public comment.

The Alaska Department of Natural Resources published the proposed regulations June 30. Written comments are due at the State Pipeline Coordinator’s Office by Aug. 14. Hearing testimony will be taken Aug. 3 in Anchorage, with teleconference sites in Barrow, Fairbanks, Juneau and Valdez.

The proposed regulations provide a process for the renewal of pipeline rights-of-way on state land, including the trans-Alaska pipeline right-of-way lease.

The proposed regulations address renewal applications, the commissioner’s renewal determination and public notice and comment. The regulations are not expected to require an increased appropriation.

The proposed regulations require submittal of an application for renewal of a right-of-way lease at least two years prior to lease expiration, unless otherwise provided in the right-of-way lease or unless the commissioner, at the request of the lessee, waives the deadline.

In making a renewal determination, the commissioner will require the “lessee to provide relevant information, including but not limited to a detailed demonstration of: commercial operation; full compliance with all state law, including but not limited to state law pertaining to regulation and taxation of the pipeline facility; compliance with all terms of the lease; and the useful life of the pipeline system.”

The commissioner is also authorized to conduct independent analyses and reviews as part of the renewal determination.

Copies of the proposed regulations are available on the Internet at: www.corecom.net/JPO or www.dnr.state.ak.us/commis.