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Cominco to develop shallow gas leases north of Red Dog mine Company proposes two gravel drill pads to be built this year, two shallow gas exploration wells for next summer By Kristen Nelson PNA Editor-in-Chief
Cominco Alaska Inc. has begun the permitting process to develop the four shallow gas leases, 23,040 acres, it was issued by the state in November.
The leases, in the Wulik Basin in northwest Alaska, were the first issued by the state under its new non-competitive shallow gas leasing program.
Cominco proposes to construct two gravel drill pads connected by one mile of primitive road on the leases, some 10 miles north of the Red Dog Zinc Mine in Northwest Alaska.
The construction of the pads and road would take place before freeze up, 2001. Drilling, which is not included in this permit application, would be done in 2002.
“The ultimate objective of the overall exploration program is to demonstrate the presence and recoverability of shale gas reserves underlying these leases to justify development of a natural gas supply for Cominco’s Red Dog Zinc Mine, approximately eight miles south of the project area,” Cominco said in its application.
Three possible exploration drilling sites are being evaluated. Only two drilling pads will be constructed.
Preparation of the drilling pads would be done in mid-August on the east side of the Walik River. The pads will be approximately 95 feet by 65 feet. The proposed locations are in the northwest area of the lease block. A bulldozer was moved into the area under a winter travel permit in early 2001 and pad preparation will include removal of overburden and grading to provide a level working service.
Drilling equipment would be mobilized in the winter of 2001-2002 for drilling in the summer of 2002. Water disposal unresolved Cominco said how to deal with produced water is an unresolved issue.
There is active mineral exploration in the area under separate regulations and Cominco said “numerous mineral drill holes have been and are currently being drilled in the area.”
The company said a number of these mineral drill holes “will be used to evaluate subsurface water quality and quantity, in order to bring closure to the produced water disposal question” while the plan of operations is under agency review.
Once that issue has been resolved, a phase two plan of operations will be prepared for the exploration phase.
Cominco said the primary target is Ikalukrok shale with secondary targets in Kivalina shale and melange zones. The Wulik basin has been estimated to contain 160-200 billion cubic feet of gas in place with reservoir thickness averaging 225 feet in four core holes in the basin, and reservoir simulation indicates wells would recover about 2 bcf of gas over 20 years with a peak rate of 700,000 cubic feet a day per well.
Cominco said it has an immediate need for 8.25 million cubic feet a day to replace diesel used to generate about 30 megawatts of electricity.
The company said exploration continues to determine if there are adequate resources to supply power to local Inupiat villages.
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