State gives Spectrum North Slope ROW

The State of Alaska and Spectrum Alaska LNG have signed a 31-year right-of-way lease for a small strip of the Prudhoe Bay unit where the small company intends to build a natural gas pipeline to supply a liquefied natural gas facility it proposes to build on the North Slope.

Under the deal, Spectrum will pay $69,762.26 per year for the lease, which can be adjusted every five years to account for changes in the fair market value of the lease.

The lease requires Spectrum to start building its proposed pipeline by October 2016 and to bring the project into operation as a common carrier pipeline by October 2017.

The proposed pipeline would run approximately 1,100 feet from an area just south of Flow Station 3 at the Prudhoe Bay unit to a proposed LNG facility near Spine Road.

The Spectrum project is designed to make gas available to industrial customers on the North Slope as well as residential and commercial customers in the Interior and beyond.

—Eric Lidji