State extends gas leases near mine

The state of Alaska has extended the primary term of four shallow natural gas leases near the Red Dog mine in northwestern Alaska.

Teck Cominco Alaska applied for four leases to the north and west of its Red Dog Mine operation in February 2000. The leases were issued Nov. 1, 2000.

This September, Teck Cominco applied to the Alaska Division of Oil and Gas for a three-year extension, submitting geological, geophysical, engineering and financial data. The firm also gave the division an overview of current and proposed operations for its shallow natural gas program in the Wulik and North basins.

In an Oct. 29 decision, division Director Mark Myers said the division was extending the leases for three years, “based upon the exploration activity already conducted on the leased and adjacent areas, and the likely prospect of further exploration activities and possible development and production.”

If natural gas were developed from the leases, the division said, it would provide fuel for mining operations, “offering potential reductions to emissions levels and minimizing the impact to air quality.”