THE EXPLORERS 2006 - 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 issued a final finding and decision denying the application on Oct. 2, 2006.

The July 2004 proposal by Holitna Energy converted shallow gas applications to an exploration license application, allowed as part of the 2004 termination of the state’s non-competitive shallow gas leasing program.

The division said that while mitigation measures were included in the preliminary finding, it “received significant comments on the proposed mitigation measures” and after review “concluded that no mitigation measure is sufficient.”

The problem was 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 agency said, noting there was “strong” local opposition to the license.

The proposed license area, which is in the Bethel census area in Southwest Alaska, would have allowed exploration for nonconventional gas resources, such as coalbed methane, as well as conventional gas.

—Petroleum News