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Providing coverage of Alaska and northern Canada's oil and gas industry
September 2005

Vol. 10, No. 36 Week of September 04, 2005

PBIF out for Healy gas exploration license

On Aug. 31 the Alaska Division of Oil and Gas issued its preliminary best interest finding for a proposed gas exploration license covering a 552,960 acre area around Healy in Interior Alaska. The proposed license area straddles the Parks Highway, on the north side of the Alaska Range, and lies adjacent to Denali National Park.

Usibelli Coal Mine Inc. applied for the license in April 2004 and proposed an exploration work commitment of $500,000 over a period of 10 years.

The director of division concluded that the potential benefits of the proposed license outweigh the possible adverse impacts, and that “the exploration license will best serve the interests of the State of Alaska.” There will be a public review period before the director makes a final decision on the license proposal. An informational meeting will be held in Healy in September and a further meeting to hear public comment on the preliminary finding and the proposed exploration license will take place in Healy in October. People can also submit comments to the division by post, fax, or e-mail.

All comments must be submitted by Oct. 31 — the division will then prepare a final best interest finding. The division expects to issue the director’s final decision on the license proposal in November.

Prospective for gas

The proposed license area includes Tertiary and Quaternary non-marine rocks of the Healy basin, an offshoot of the Nenana basin to the north. The existence of substantial coal seams associated with Usibelli’s Healy coal mine in the southern part of the area points to the likely presence of dry natural gas in the subsurface, the division said.

But very little is known about the subsurface geology of the area. According to the best interest finding “There is a high potential for shallow natural gas within the coal beds of the proposed license area. However, it is unknown whether the quantity of gas will support a commercial project.”

The best interest finding specifies numerous mitigation measures to minimize impacts of gas exploration and development on the flora and fauna, as well as minimizing impacts on local residential, recreational and commercial activities.

—Alan Bailey






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