475,000 acres withdrawn from ANWR sale; Porcupine calving considered

Steve Sutherlin

Petroleum News

The Department of the Interior’s Bureau of Land Management has reduced the acreage available in its Jan. 6 oil and gas lease sale within the Coastal Plain of the Arctic National Wildlife Refuge, BLM said in a Dec 18 amendment to the detailed statement of the sale.

BLM pulled 10 tracts totaling approximately 475,000 acres - about 30% of the 1.56 million-acre coastal plain - after considering nominations and comments timely submitted in response to a Nov. 17 call for nominations published in the Federal Register.

The withheld tracts, tracts 1 through 8, tract 11 and tract 12 are in the southeast portion of the Coastal Plain.

BLM said the most substantive comments from organizations such as Canadian governmental entities, Audubon Society chapters and Gwich’in tribal organizations, among others, differentiated levels of “special concern and analysis” for various tracts.

“Particularly useful were such tract-differentiated comments related to the core calving grounds of the Porcupine Caribou Herd, which, as distinguished from the polar bear and migratory birds, do not have special protections under federal statutes,” BLM said.

The BLM Alaska State Director’s determination to withdraw the tracts “reflects careful consideration of multiple factors, specifically the environmental information developed as a part of the environmental impact statement process, substantive comments received, industry interest based on the tract nominations from potential bidders, and the resource potential specifically in light of the mandate BLM has from Section 20001 of Public Law 115-97 to conduct not fewer than two lease sales of at least 400,000 acres each within the Coastal Plain in those areas with the highest potential for discovery of hydrocarbons,” BLM said.

The remaining tracts offered may be further amended or withdrawn at any time prior to issuance of a written acceptance of a bid, BLM said.

Leases issued as a result of the sale will have primary terms of 10 years, BLM said. A minimum bid of $25 or more per acre or fraction thereof is required and the leases are subject to a fixed royalty rate of 16.67%, with a minimum rental payment of $10 per acre.

Sealed bids must be received by the BLM Alaska State Office on or after Dec. 21, and prior to the bid submission deadline 4 p.m. Dec. 31.

- STEVE SUTHERLIN