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State issues Copper River basin preliminary finding Proposed exploration license area between Nelchina, Glennallen, along Glenn Highway Kristen Nelson PNA News Editor
Alaska’s exploration license program is moving ahead with a preliminary best interesting finding out for a proposed Copper River oil and gas exploration license.
The Alaska Department of Natural Resources Division of Oil and Gas issued the finding Jan. 19, initiating a 60-day comment period which closes March 20.
The proposed exploration license covers approximately 500,000 acres within the Copper River basin study area and bounded on the south by township 1N, Copper River meridian, on the north by township 6N, Copper River meridian, and on the east by the Copper River.
Licensing supplements other program Exploration licensing supplements the state’s conventional oil and gas leasing program by targeting areas outside of known oil and gas provinces on the North Slope, in the Beaufort Sea and the Cook Inlet basin. Exploration licensing eliminates bonus money — the money involved in the license is what a bidding company commits to spend exploring in the license area. The state receives subsurface geologic information and, should development occur, revenue through royalties and taxes. The state said in the preliminary finding that exploration license areas are more likely to yield gas rather than oil, and reserves could provide a source for local energy consumption.
State accepts applications in April The state accepts proposals for exploration licenses in April of each year. Such proposals must include the amount of money the licensee would spend on exploration and the term of the license. Before any exploration occurs, the licensee would have to obtain required permits for the work.
The state plans to issue a final finding in July. If there is only one proposal, the final finding will identify the prospective licensee. If, however, there is more than one proposal submitted, then both the amount of work commitment and the identify of each applicant are kept confidential.
If the final finding concludes the license would be in the state’s best interest, then the commissioner of the Department of Natural Resources will request that each applicant submit a new proposal in the form of a sealed bid. Maintaining confidentiality, the state said, is necessary so as not to influence the final bids. The applicant submitting the highest bid (in dollars to be spent on an exploration program) will be awarded the license.
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