Alaska asks for competing proposals for Bristol Bay basin exploration license

Petroleum News

The Alaska Division of Oil and Gas offered 3 million acres of land in the Bristol Bay basin for exploration licensing this summer and received one proposal in September. It solicited competing proposals and received two letters of intent to submit competing proposals by the October deadline.

But the division received only one formal proposal by the November deadline.

It has now taking public comments on the proposal, a work commitment of $3.2 million and a license term of 10 years for an area around Dillingham from Bristol Shores LLC.

The division is also requesting competing proposals for the identical license proposed.

Notice of intent to submit a competing proposal is due Jan. 14 and the proposal is due Feb. 13.

Pirtle Bates of the Division of Oil and Gas told Petroleum News that the application contains 829,440 gross acres. However, he said, the area in the exploration license application contains significant non-state acreage, and the state is limited to 500,000 acres when it awards an exploration license.