Usibelli applies for shallow gas leases

Usibelli Coal Mine has applied for eight shallow natural gas leases on state land in the Healy area. The Department of Natural Resources, Division of Oil and Gas, is asking for comments on the potential benefits "a discovery of a local source of natural gas" would have for residents of the area.

The lease applications are for state land in the Healy area in portions of township 10 south, ranges 5-8 west; township 11 south, ranges 5, 6 and 8 west; and township 12 south, ranges 7-8 west, all in the Fairbanks Meridian.

If the applications are approved, Usibelli would receive leases for state-owned natural gas in a field "if any part of the field is above 3,000 feet true vertical depth, for an initial term of three years," the state said.

The applications will be adjudicated on a lease-by-lease basis, "and if a discovery of a local source of natural gas would benefit local residents, the leases will be issued," the state said.

The public comment period closes July 25.