DNR proposes renewal of Nuiqsut line ROW

Alan Bailey

Petroleum News

The Alaska Department of Natural Resources has proposed renewing the right-of-way lease for the Nuiqsut Natural Gas Pipeline, the pipeline that delivers natural gas from the Alpine oil field to the village of Nuiqsut on the North Slope. Gas from the line fuels an electricity power generation plant at Nuiqsut. The 14.4-mile, 3.5-inch diameter line crosses state land as well as Native land and hence requires a state right of way, held by the North Slope Borough.

In 1999, as part of a surface use agreement for the construction of the facilities for the Alpine oil field, ARCO Alaska Inc. agreed to make gas available at no charge to Kuukpik Corp., the Nuiqsut village corporation. The North Slope Borough funded the construction of the gas pipeline from the Alpine production facilities and donated the capital infrastructure to the village. The borough has been operating the system as an unlicensed utility, with customers in the village covering the operating costs of the village gas supply system. The Alpine field went into operation in 2000.

DNR issued the original 20-year right-of-way lease for the pipeline on March 13, 1999. In April 2019 the North Slope Borough filed a lease renewal application for a further 20-year term - the borough had earlier been granted an extension to the timeframe for filing the application. In proposing to grant the 20-year lease extension, DNR says that it has found the North Slope Borough to be in full compliance with the lease terms. And DNR is also proposing to modify the rules for closing the pipeline corridor to mining operations, while also allowing future lease extensions to be for 30 years rather than 20 years.

The only issue of significance that has impacted the pipeline was some pipeline coating damage, which was repaired in 2018. The majority of the repair sites are now in excellent condition, and the North Slope Borough is operating a continuous monitoring and upkeep program for coating repairs, the DNR says.

- ALAN BAILEY