Bidding opens soon in Augustine Island geothermal lease sale

Kay Cashman

Petroleum News

The Alaska Department of Natural Resources' Division of Oil and Gas posted a public notice on Feb. 28 of the Augustine Island 2025 competitive geothermal lease sale.

(See map in the online issue PDF)

Augustine Island is in Kamishak Bay on the west side of Lower Cook Inlet, approximately 68 miles southwest of Homer and approximately 170 miles south-southwest of Anchorage.

West of Augustine Island are the Chigmit and Alaska-Aleutian mountain ranges. Augustine Island has been augmented by numerous eruptions of Augustine Volcano from which debris avalanches and lahars have deposited sediment on the flanks of the volcanic cone and in the surrounding waters.

The North Augustine Island competitive geothermal lease sale area consists of the northern portion of Augustine Island and tidelands and adjacent waters within approximately 3 miles of the island.

The Sale Area contains about 55,771 acres of onshore and portions of tidelands and adjacent waters divided into 26 tracts. The state owns the land within the sale area, and Augustine Island is entirely located within the Kenai Peninsula Borough.

The bidding method for the sale will be cash bonus and fixed royalty, with competition by sealed bid.

The division has contracted with EnergyNet Services LLC to provide an online bidding system. Bidder registration and bid submission will be on the EnergyNet government listings site at https://www.energynet.com.

All times listed below are Anchorage, Alaska local time:

*First day to submit bids with EnergyNet is Thursday, April 3;

*Deadline to submit bids is Wednesday, April 16 at 4:00 p.m.;

*Bidding results available to the public online at https://dog.dnr.alaska.gov on Tuesday, April 22 at 9:00 a.m.

The lease sale terms and conditions are as follows:

The bid method for this sale will be cash bonus and fixed royalty, with competition by sealed bid.

--KAY CASHMAN