Exploration license application received
The Alaska Department of Natural Resources is evaluating the acceptability of an oil and gas exploration license proposal for the Susitna Valley. The division accepts proposals every April. It then requests comments and additional proposals within the same area. The map the division provided shows what is roughly a block of land most of which is west of the Parks Highway, beginning south of Willow, ending just south of Talkeetna on the eastern edge and extending beyond Skwentna on the western edge.
The division said the solicitation area consists of state-owned, unencumbered land within townships 18-25 north, ranges 5-12 west, Seward Meridian.
Comments and notices of intent to submit proposals are due by 5 p.m. June 24; proposals are due within 60 days of the May 24 date of the notice.
The division said that if proposals are received and the DNR commissioner finds that an exploration license should be issued, the commission will request competitive sealed bids from each applicant who submitted a proposal.
Exploration licenses are based on specific minimum work commitments expressed in dollars and require a security to be posted on the projected cost of the planned exploration work. The program supplements the state’s areawide oil and gas leasing program and is intended to encourage exploration in basins which are not part of the state’s producing areas on the North Slope and in Cook Inlet.
Successful license holders have exclusive right to explore state land within the license for up to 10 years and may convert all or a portion of the license area to oil and gas leases after meeting the work commitment specified in the license.
Before issuing a license, the division must find that the license is in the state’s best interest.
- KRISTEN NELSON