BLM issues leases from National Petroleum Reserve-Alaska sale

Kristen Nelson

The U.S. Department of the Interior’s Bureau of Land Management has leases out for tracts won in the National Petroleum Reserve-Alaska lease sale.

ARCO Alaska Inc. officials paid the agency $55 million Aug. 20 — the remaining 90 percent of their winning bids and first year’s rent on the tracts.

Mike Richter, ARCO Alaska exploration manager, told PNA that the company wanted to drill at least three wells this year, dependent on permitting and weather. ARCO is working hard on the permitting process, he said.

Fran Cherry, BLM’s Alaska regional manager, said the agency was pleased with both the bid response and the spread of locations staked for exploration in the leased area. Both ARCO and BP Exploration (Alaska) Inc. have staked locations for drilling. “And if you look at where the (North Slope) trend has gone, they’re following — in their industry terms — they’re following that string of pearls across there,“ Cherry said.

The next step, Cherry said, is for BLM to do an environmental analysis on the staked locations. He said that most of the work has been done and restrictions are in place, “but we have to look at each individual site” and negotiate changes or approve it before drilling permits are issued.