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State denies Holitna exploration license
After an August 2005 preliminary best interest finding determined that an application for a gas-only exploration license in the Holitna basin was in the state’s best interest, the Alaska Division of Oil and Gas has issued a final finding and decision denying the application.
The division said in its Oct. 2 final finding that while mitigation measures were included in the preliminary finding, it “received significant comments on the proposed mitigation measures.” After reviewing the comments, the division said it “has concluded that no mitigation measure is sufficient.”
The problem is that typical mitigation measures drafted to avoid sensitive areas “would be ineffective in this instance due to the fact that the small proposed license area entirely includes uniquely sensitive spawning and over-wintering habitat,” the division said.
The proposed license area was only 26,779 acres, making “it difficult to condition the license in a manner that allows exploration activities to occur harmoniously with the other uses in the area and without impact to sensitive fish and wildlife resources.”
The division also said the license had “very little local support and the project proponent has not proactively garnered such support.”
Proposal a conversion of shallow gas lease applications The July 2004 proposal by Holitna Energy Co. LLC converted shallow gas applications to an exploration license application, a conversion allowed as part of the 2004 termination of the state’s non-competitive shallow gas leasing program.
The proposed license area is in the Bethel census area in Southwest Alaska near the confluence of the Holitna River and Basket Creek, some 10 miles southeast of Sleetmute.
The division said that during the 60-day public comment period after release of the preliminary finding its staff attended meetings in Aniak, Sleetmute, Crooked Creek, Red Devil and Bethel in September 2005.
“Most of the comments expressed strong opposition to the proposed license. Among the concerns expressed was the potential for impact to local subsistence resources, including disturbance of fish, moose and caribou and their habitats, and potential pollution of surface and subsurface water resources.” Concern was also expressed about possible disturbance of historical and cultural artifacts.
The license would have allowed exploration for nonconventional gas resources, such as coalbed methane, as well as conventional gas.
—Kristen Nelson
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