U.S. Fish and Wildlife Service says it can’t implement ‘no action alternative’ for Swanson River satellite project

Kristen Nelson

PNA Editor-in-Chief

The U.S. Fish and Wildlife Service is asking for public comment on a draft environmental impact statement for Unocal’s satellite expansion of Swanson River gas production.

The Fish and Wildlife Service, which manages the Kenai National Wildlife Refuge where the Swanson River field and the proposed satellites are located, says that because of inholdings at the refuge, the discussion is about “how” — not “if” — the development will take place.

Because of provisions of the Alaska Native Claims Settlement Act and federal oil and gas leasing activity by the U.S. Department of the Interior prior to passage of ANCSA the satellite project area includes a variety of surface and subsurface ownership, the agency said. Private surface and subsurface property rights were conveyed to Cook Inlet Region Inc. and Tyonek Native Corp. under ANSCA.

Although the draft EIS includes a “no action alternative” as required by the National Environmental Policy Act, Fish and Wildlife, the lead permitting agency for the project, said it does not have the authority to implement a no action alternative for the project because it is constrained by ANSCA: the natural gas resources proposed for development are either privately owned or have been previously leased and thus constitute valid inholdings within the refuge.

The majority of resources in the project area are owned by CIRI through ANSCA entitlements.

“One of the primary purposes of ANCSA was to provide Alaska Natives with resources (such as oil and gas) that could be developed for economic benefit. CIRI will receive a royalty on gas produced…,” Fish and Wildlife said.

“Federal regulations require that the owners of valid inholdings be provided adequate and feasible access for economic and other purposes, subject to reasonable regulation to protect refuge resources,” the agency said.

It “is also required,” Fish and Wildlife said, “to make available to CIRI, its successors and assigns, sand and gravel as is reasonably necessary for the construction of facilities and rights of way appurtenant to the exercise of the rights conveyed by the United States.”

A no action alternative would mean that Fish and Wildlife would not grant a right of way and the Corps of Engineers would not grant a permit for placement of fill in U.S. waters under the Clean Water Act and the resources would not be developed.

Fish and Wildlife said that while it does not have the authority to implement the no action alternative, other agencies are not constrained by ANILCA. The Corps and the Bureau of Land Management, which issues drilling permits for the refuge, are cooperating agencies.

Fish and Wildlife said that combinations of alternative access and adjacent pipeline-utility system alignments and drilling-production pads are evaluated in the DEIS for the eastern satellite, and an alternate road route is considered for the northern satellite.

There were also alternatives that were rejected for further evaluation because they were not technically or economically feasible.

“Some of the potentially significant impacts of the proposed project have been avoided by including site selection, design and procedural measures,” the agency said.

“For example, a new crossing of the Swanson River was avoided as a result of project design changes resulting from input received through the public scoping process.”

Fish and Wildlife said it concluded that while the project would have significant long-term impact, that impact “will be mitigated over time, when project roads and pads are removed and restored in accordance with permit requirements.”

East satellite could be two-pad development

Fish and Wildlife said the proposal is for gas development only and oil development would not be authorized under the proposed right of way permit.

The project will be done in stages, with go no-go decisions at the end of each stage.

“A go decision will mean the next element will be started; a no-go decision will mean that restoration of the completed element will be implemented,” the agency said.

The east satellite project includes construction of approximately 6.4 miles of gravel access road and a drilling pad, east satellite pad A. Four exploration wells are planned.

If the exploration wells find commercial resources, delineation and development wells would be drilled and production facilities installed. Pipelines and utility lines would be adjacent to the new road from the existing field to the east satellite A pad.

With a commercially viable gas find at east satellite pad A, 1.9 miles of gravel would be constructed and a second pad, east satellite pad B, would be built.

Directional drilling from the east satellite B pad would be used to reach targets to the north and east of the Swanson River. If commercially viable resources are found at either target, production facilities would be placed on the east satellite B pad and a buried pipeline-utility system would be installed adjacent to the road to east satellite pad A.

North satellite at Birch Hill

The initial north satellite development proposal includes 3.5 miles of gravel access road to the existing pad at Birch Hill. The pad will be enlarged to accommodate additional drilling, production facilities will be installed on the pad and a pipeline-utility system will be buried adjacent to the access road.

Fish and Wildlife said that an additional new pad might be required for field delineation and development.

Pipelines would tie in at Swanson

“All facility locations, including gravel roads and pads, will be located and designed for removal when natural gas reserves are depleted,” Fish and Wildlife said.

Gravel will come from on-refuge sources. Two existing and three new gravel sources have been identified. Approximately 278,600 cubic yards of gravel would be required for full development the proposed project: 11.7 miles of new gravel roads, an adjacent buried pipeline-utility system, three new drill pads and upgrade of the Birch Hill drill pad.

The DEIS was published in July. Fish and Wildlife said that Unocal and partners Marathon Oil Co. and CIRI applied for a right of way for the proposed project in January 2001.

Comments are due Oct. 1. A public hearing will be held Sept. 5, 7-9 p.m., at the Aspen Hotel in Soldotna. An additional public hearing will be held Sept. 17 in Arlington, Va.

Fish and Wildlife said it will identify an environmentally preferred alternative after evaluating public comments on the DEIS.