Plan of exploration due

Smith Bay Company updated POE for offshore NPR-A leases due April 12

Kay Cashman

Petroleum News

On Feb. 26, the Alaska Department of Natural Resources' Division of Oil and Gas sent an email to Smith Bay Company Alaska Inc. President David Pfeiffer reminding him of the status of ongoing litigation and an update on the timeline for the suspension of the plan of exploration, or POE, for the Smith Bay unit that was approved by the division on Sept. 8.

The division approved the suspension for the Smith Bay unit, or SBU, through 60 days following a decision issued by the U.S. District Court of Alaska on the merits of the National Petroleum Reserve-Alaska, or NPR-A, regulations. (The Smith Bay leases are in the shallow waters of Smith Bay north of NPR-A.)

The U.S. Bureau of Land Management's Dec. 17 final rule for Rescission of the Management and Protection of the National Petroleum Reserve in Alaska Regulations restored special areas to their previous extent and regulations. Additionally, BLM issued notice for an upcoming NPR-A lease sale on Feb. 11. The NPR-A lease sale closes and all bids must be received by BLM before 4 p.m., March 16.

Smith Bay Company Alaska, or SBCA, had asked the division by email whether its suspension could remain in place until there was certainty regarding the timing of an NPR-A lease sale and what lands would be available.

Division Director Derek Nottingham told SBCA that given BLM's Feb. 11 announcement of a lease sale and designation of available lands for lease, SBCA's suspension of the POE was no longer warranted and therefore has reached its end. SBCA accordingly must submit an updated POE no later than April 12, Nottingham said.