State calls for comments on Healy basin gas-only exploration license proposal

The Alaska Department of Natural Resources’ Division of Oil and Gas is requesting comments on a gas-only exploration license proposal in the Healy basin.

The division provided notice of its intent to evaluate the proposal in November, and asked for competing proposals. The division said Jan. 11 that it received no competing proposals.

The exploration license proposal is from Usibelli Coal Mine Inc., which applied for a gas-only exploration license with a $500,000 work commitment and a 10-year term. The license area is some 208,630 acres in Interior Alaska. The license area is east of Denali National Park and sits astride the Parks Highway and the Alaska Railroad from south of Healy to south of Clear Sky Lodge. The Usibelli Mine is in the proposed exploration license area.

The division must issue a written finding to determine if an exploration license in this area is in the state’s best interests, and is requesting comments from agencies and the public on this proposed license. The 60-day comment period ends March 11.

If the exploration license is granted, Usibelli will have the exclusive right to explore state land within the license area for gas. There is a license fee of $1 per acre, and the licensee will also post a surety bond to guarantee performance of the minimum work commitment.