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State OKs operating plan for 3 Evergreen core holes
Kristen Nelson Petroleum News Editor-in-Chief
The Alaska Division of Oil and Gas has approved an operating plan from Evergreen Resources for three core holes on state leases in the Matanuska-Susitna area of the state north of Anchorage.
The Alaska Oil and Gas Conservation Commission has approved drilling permits for two other core holes, one on fee lands and one on a Mental Health Trust lease. The commission issued a drilling permit for Houston Pit No. 1, on Mental Health Trust land northwest of the City of Houston, and for Little Su No. 1, on fee land northwest of Palmer.
The Division of Oil and Gas approved operating plans for the Kashwitna Lake No. 1, the Willow Fishhook No. 1 and the Sheep Creek No. 1. Kashwitna Lake is some 10 miles north of Willow, Willow Fishhook is northeast of Willow and Sheep Creek No. 1 is some 20 miles north of Willow.
The division said that public comments were overwhelmingly against approval of the plan of operations for the core holes, but said objections were not with the core hole drilling, but rather “with the existence of the leases and uncertainty over impacts to drinking water aquifers, surface property rights, lifestyles, existing land use, and the quality of life that might result if the leases are developed for coalbed methane.” No authority to buy back leases A “large majority” wanted a hold on all activity until lease buyback can be explored.
But, the division said, it does not have the authority to buy back the leases. The question of buyback, the division said, “is a political one that would require a legislative grant of authority to DNR to negotiate and execute any such buy back.”
Since the Department of Natural Resources lacks the authority to buy back the leases, “it is inappropriate for DNR to deny this application based on the possibility that these leases may be considered for buy back.”
The Office of Habitat Management and Permitting requested containment and testing of the well bore solids prior to disposal, but the division said the Alaska Department of Environmental has the expertise in the solid waste disposal, the division said, and it “has determined that solid waste associated with mineral core hole drilling in Alaska does not pose a significant risk to humans, fish, or wildlife.”
Evergreen will drill the core holes over an eight-week period beginning in December. Drilling time at each site is estimated at two weeks.
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