Oil Patch Insider

Tundra access looks good; Shively joins Holland America; Peak to build Thetis ice roads

Wadeen Hepworth

Despite the lack of cold temperatures into mid-December, Gary Schultz is predicting tundra travel will start earlier this year than last.

Warmer temps on the North Slope had oil company and state of Alaska personnel worried about when the movement of vehicles that are part of off-road exploration could begin, but it seems the lack of snow — i.e. insulation — has offset the warm temperatures.

Schultz, natural resource manager for the Alaska Division of Mining, Land and Water, told PNA Dec. 16 that the recent drop in temperatures combined with “a fair amount of wind and then rain,” has resulted in the coastal areas “starting to firm up.”

“There aren’t many pockets of soft ground under the surface,” he said. “Looking at what was happening earlier with the warm temps, we thought it might not open up until February, but there has been less snow this year to insulate the ground. … And then it got cold. It was 31 below in Deadhorse this morning.”

Schultz said he’s “optimistic,” and predicts an earlier opening than last year,” which had the latest tundra access dates on record.

In 2002 the state broke the North Slope into two areas, Schultz said.

“The coastal area was opened to off-road travel on Jan. 25, 2002. The foothills had very deep snow and very little wind. This created a deep, fluffy snow layer that insulated the ground. There were areas in the foothills where the ground never did freeze completely,” Schlutz said.

“In spite of this, we thought that the deep snow would protect the ground (especially since the seismic operator in this area was using only tracked equipment). Therefore, again on Jan. 25, we allowed off-road travel in the foothills on a project-specific basis under two conditions: a) that a DNR inspector had to be present to verify that no tundra damage was occurring and b) that the operator would have to fund a follow-up inspection the following summer to confirm that no damage had occurred. This work went well, and we did not find any significant tundra damage from this operation,” he said.

SHIVELY HEADS TO HOLLAND AMERICA…. Former Alaska Department of Natural Resources Commissioner John Shively started a new career Dec. 16 promoting a different type of natural resource — Alaska’s wilderness, wildlife, glaciers, fishing and Native culture.

Shively has accepted the position of vice president of external affairs for Holland America in Alaska.

But he’s not totally leaving Jade North LLC, the consulting firm he founded in 2000 after resigning as commission. A partner in the firm, Patty Bielawski, is assuming Shively’s management duties, but she said he will retain his partnership in the company and the title of senior partner.

Instead of being a fulltime consultant, he “will now serve in the role of senior advisor on strategic issues for the business rather than handle day to day client representation. We envision this as analogous to a partner who serves in an “of counsel” role in the legal profession,” Bielawski said.

Anchorage-based Jade North provides consulting services for the natural resource, Alaska Native and government sectors.

MARTY RUTHERFORD JOINS JADE NORTH…. In mid-January, Alaska Department of Natural Resources Deputy Commissioner Marty Rutherford will leave state government and become a partner at Jade North LLC, the company said Dec. 16. (See related article on page 6.)

Rutherford will “represent clients with natural resource extraction and transportation interests as well as assist clients with land management projects and issues with government, Native and other private land owners,” Jade North said in a statement.

Earlier this year Bill Schoephoester joined Jade North. He does electric utility and oil spill prevention and response planning, as well as project management services.

DRILLING TO START AT KUPARUK-THETIS PROJECT IN JANUARY…. Pioneer Natural Resources Co. has all its permits to drill three exploration wells at its prospect between Thetis Island and the Kuparuk River unit. The company will begin drilling the first well (Ivik) in late January, Ken Sheffield, president of the Calgary-based Pioneer subsidiary and Alaska project manager, told PNA Dec. 16.

Peak Oilfield Service Co. has been awarded the contract to build the project’s ice roads, Sheffield said.

“As of today, we have not signed a rig contract, but plan to address this issue in the near term,” he said.

The proposed exploration wells are offshore in approximately five to 10 feet of water. Drilling plans call for grounded sea ice pad locations that will be accessed via ice roads from Oliktok Point dock. No tundra travel is planned.

All sea ice operations are expected to be completed by the end of March.