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State of Alaska asks for comments on area in Holitna exploration license
Kay Cashman
On July 2, Holitna Energy Co. submitted a request to convert its shallow natural gas applications in southwestern Alaska to a Holitna basin exploration license, as per language in House Bill 531, which essentially legislated out of existence the state’s non-competitive, shallow gas leasing program, commonly referred to as its coalbed methane program.
On Oct. 22, the Alaska Department of Natural Resources, Division of Oil and Gas, issued a public notice saying it intended to evaluate Holitna Energy’s exploration license proposal, which encompasses 26,880 gross acres. Must issue best interest finding Before issuing an exploration license the division must issue a best interest finding to determine if an exploration license in the area is in the state’s best interest.
In its public notice the division asks for comments on the proposed license area. The 60-day comment period begins today, Oct. 22 and ends on Dec. 21.
Holitna Energy has said the gas produced on its acreage will likely be used to supply power and heat for Donlin Creek mining project and for nearby villages. On May 25, the company’s top executive, Phil St. George, told Petroleum News that Donlin Creek may not be the only potential large mine customer for Holitna basin gas. St. George said he was approached by state development employees interested in taking Holitna gas about 100 miles south to Iliamna Lake, to the Pebble gold-copper-molybdenum project.
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