MMS to issue rolling call for Norton Sound leasing interest

Kristen Nelson

PNA Editor-in-Chief

The U.S. Department of the Interior’s Minerals Management Service said Jan. 23 that it is seeking companies interested in exploring Norton basin for oil and gas, possibly as a means to bring natural gas to western Alaska communities. The area is offshore Alaska in Norton Sound and the northern Bering Sea, west and south of the Seward Peninsula, and covers about 25 million acres from three to 320 miles offshore in water depths from 25 feet to approximately 650 feet.

The agency is proposing a new processing for leasing federal outer continental shell tracts in this frontier agency.

“The areas off Western Alaska, although largely unexplored, may contain substantial natural gas resources that could be used for local communities, as well as export,” MMS Alaska Regional Director John Goll said in a statement.

“Communities, such as Nome, as seeking new energy sources to improve their economic outlook. They are intrigued about the possibilities this sale could offer. What we hope is some enterprising company can find an economical way to make this happen.”

MMS said this call for information and nominations is the first step in an 18-month special interest process. The call, published in the Federal Register Jan. 22, seeks comments on the proposal from industry and the public and requests that industry nominate small, very specific areas where they are willing to commit to exploration.

MMS will use the information received to make the decision whether to proceed with leasing. If there is no industry interest this year, MMS will defer the sale for one year and reissue the call next year.

This process will continue throughout the 2002-2007 five-year program until there is sufficient interest to hold a sale and the nominated area is deemed appropriate for leasing. MMS said only one round of leasing will occur during this five-year program.