Interior Alaska wants energy development

Need for reasonably priced energy — especially off the road system; Anschutz Exploration said to have filed for Copper River exploration license

Kristen Nelson

PNA News Editor

Coalbed gas — or other local energy sources — have the most significance for rural areas of Alaska, now dependent on imported diesel for power, said representatives of Native corporations at the Coalbed Methane Conference March 3 in Anchorage.

Norm Phillips, resource manager for Doyon Ltd. noted that Doyon, about the size of France, wants energy development to promote economic development and reduce the cost of fuel and power. The Yukon flats are known to contain coal, he said. The region has a $30 million resource database and likes to be involved in projects early, Phillips told the conference audience.

While the Calista Corp. in southwest Alaska is not known for coal, said Nick Enos, an exploration geologist with the region, it does have some potential, and the need for a local energy source is crucial. Placer Dome, he said, has spent $30 million exploring for gold at Donlin Creek — today’s largest gold resource in Alaska, some 11 million ounces — but the project is not currently economic because of the hundreds of barge trips it would take to supply fuel.

Richard Glenn, director of energy management for the North Slope Borough, said “Native-owned lands are the key to resource development.” With no roads, logistics in Alaska is probably as important than geology, he said: if the resource is not almost under a community it can quickly become uneconomic. Glenn also stressed the importance of local knowledge and cooperation for projects. “So what seem like small meetings, in rooms no bigger than your kitchen, suddenly become very important,” he said.

Wes Nason with Ahtna Corp. in eastern central Alaska bordering Canada in the east said two hydrocarbon basins are known in the region. Eleven holes have been drilled in the Copper River Basin since the 1960s, Nason said, and the corporation would like to see more drilling. Nason said Ahtna supports Anschutz in its application for a state exploration license in the area. Ahtna Minerals, he said, may provide some funding for shallow gas exploration.

Paul Roehl of the Bristol Bay Native Corp. noted that the Chignik Lagoon in the corporation — one of the potential sites for a coalbed methane test — has five communities, which will eventually be linked by road. Starting in the late 1920s, 26 oil and gas wells were drilled on the Alaska peninsula, and while some found oil and gas none were economic, he said.