Nenana area OK’d for exploration licensing

The Alaska Division of Oil and Gas has issued a preliminary determination of state lands subject to oil and gas exploration licensing in the Nenana area.

The Nov. 30 decision notes that exploration licensing is designed to encourage exploration far from infrastructure in areas with unknown hydrocarbon potential and where the operator bears a higher investment risk.

Exploration licensing does not pertain to North Slope and Cook Inlet areas where there are existing leasing programs, and requires that any data collected be provided to the state.

The acreage is basically west of Nenana and includes a portion of the Denali Borough on its southern border. Specifics, including a map and section, township and range descriptions, are available on the division’s website at https://dog.dnr.alaska.gov/Home/Newsroom.

Areas which would be available for exploration licensing under the determination include “free and unencumbered” state acreage.

The division said “land within the Nenana determination area has unknown oil and gas potential and there is limited access to existing oil and gas infrastructure in much of the region.” Some oil and gas exploration has occurred there in the past, but, the division said, “technological advancements may facilitate more effective and efficient exploration.”

Comments on the preliminary determination are due by 5 p.m. Jan. 2.

- Petroleum News