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Providing coverage of Alaska and northern Canada's oil and gas industry
September 2022

Vol. 27, No.37 Week of September 25, 2022

Oct. 20 opening, Nov. 3 close for online state fall lease sale bids

Kristen Nelson

Petroleum News

The Alaska Department of Natural Resources’ Division of Oil and Gas said Sept. 15 that bidding will open Oct. 20 for the state’s fall areawide oil and gas lease sales - the Beaufort Sea, North Slope and North Slope Foothills. The deadline to submit bids is Nov. 3 and results will be available online Nov. 9 on the division’s website at https://dog.dnr.alaska.gov.

DNR said this will be the 25th North Slope areawide sale. All unleased acreage in the North Slope region is offered each fall and since 1998 the sales have brought in more than $310 million in cash bonuses for the state.

There are 1.9 million acres on 1,125 leases currently under lease within the North Slope areawide sale area and more than 700,000 acres on 255 leases in the Beaufort Sea sale area, with 355 of the leases in production and paying royalties to the state, DNR said.

Gov. Mike Dunleavy said Alaska “is committed to making millions of prospective acres in Alaska available for lease. Alaska’s resources are a national security asset and can help our domestic energy needs and the needs of our allies around the world.”

“We’re encouraged by the major new sanctioned developments in the region and the ongoing exploration and development efforts we see across the North Slope,” said Acting DNR Commissioner Akis Gialopsos.

Details of the sales are available on the division’s website.

EnergyNet Services

The division said it has contracted with EnergyNet Services LLC for the online bidding system for the sale, with bidder registration and bid submission on the EnergyNet Government Listings site at https://www.energynet.com.

Minimum bid amounts, royalty rates and annual rental rates vary by sale area. All tracts have primary 10-year lease terms.

Beaufort Sea tracts have a minimum bid of $25 per acre, a 16.66667% royalty rate and an annual rental rate of $10 per acre.

North Slope state/Arctic Slope Regional Corp. tracts and north sub-region tracts have a minimum bid of $25 per acre, a 16.66667% royalty rate and an annual rental rate of $10 per acre. North Slope south sub-region tracts have a $25 per acre minimum bid, a 12.5% royalty rate and an annual rental rate of $10 per acre.

North Slope Foothills tracts have a minimum bid of $5 per acre, a 12.5% royalty rate and rent of $1 per acre for year 1, $1.50 per acre for year 2, $2 per acre for year 3, $2.50 per acre for year 4 and $3 per acre for years 5-10.

In instructions to bidders the division said the first day to view the lease sale on EnergyNet is Oct. 14, with Oct. 20 the first day to submit bids.

Oct. 31 at 4 p.m. is the deadline to qualify to bid with the division.

The deadline to submit bids to EnergyNet is Nov. 3 at 4 p.m. and the deadline to submit signed bid forms to EnergyNet is Nov. 8 at 2 p.m.

Bidding results will be available to the public Nov. 9 at 9 a.m. and the deadline to settle bid deposit wire transfers is Nov. 9 at 2 p.m.

- KRISTEN NELSON






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