Southcentral exploration licensing OK’d

The director of the Alaska Division of Oil and Gas has made a written determination that state land in Southcentral Alaska may be available for exploration licensing. Public comment was requested on a preliminary determination, issued in February. The division said in the May 9 determination that it received 22 timely public comments, with the commenters in general opposed to oil and gas exploration development within specific portions of Southcentral area.

After evaluating comments the director determined that boundaries and scope of the preliminary determination would not be changed.

The division quoted Alaska’s constitution to the effect that the state is directed “to encourage ... the development of its resources by making them available for maximum use consistent with the public interest,” and said the people of the state have an interest in developing the state’s oil and gas resources and maximizing the economic and physical recovery of those resources.

The director’s final determination is that all state-owned acreage in the Southcentral determination area will be available for oil and gas exploration licensing subject to state statute, noting that only state-owned oil and gas mineral estates within the area that are free and unencumbered may be available for licensing.

The available area excludes acreage offered under the Cook Inlet areawide oil and gas leasing program.

In general the border of the area runs from west of Yakutat north, then west in the vicinity of Tok to the eastern portion of the Denali Borough, south through the Matanuska-Susitna Borough almost to the Kenai Peninsula Borough, east almost to Palmer, then south to the eastern side of the Kenai Peninsula and then follows the coastline east almost to Yakutat. A map and legal description are available at http://dog.dnr.alaska.gov/.

Exploration licensing areas must be between 10,000 and 500,000 acres. The state may request proposals to explore designated areas and each year in the month of April applicants may submit proposals for exploration licenses, which require a work commitment, expressed in dollars.

Licensees are required to provide any data collected under a license to the state.

- Petroleum News