MMS incentives for Beaufort almost a done deal

Petroleum News Alaska Staff

There might have been an error in the Beaufort Sea lease sale story in the Feb. 23 issue of Petroleum News Alaska.

According to U.S. Minerals Management Service spokeswoman Robin Cacy and a press release by MMS, the incentives for the upcoming Beaufort Sea oil and gas lease sale are at this time proposed incentives — i.e. not a done deal.

“The final notice of sale will outline any incentives package for the sale,” Cacy told PNA Feb.21.

However, in the opening remarks of her Feb. 24 speech in Anchorage, Rebecca Watson referred to the incentives for the sale as a fact, not a proposal. Washington, D.C.-based Watson is the assistant secretary for land and minerals management at the Department of the Interior.

Cacy said the proposed notice has been sent to Gov. Frank Murkowski, who has 60 days to comment on the size, timing and location of the proposed sale, as well as the incentives offered for that sale. After addressing the governor's comments, Interior will decide whether to proceed with the sale as planned.

A final notice of sale would be published in the Federal Register at least 30 days prior to the date of the public opening of the bids.

The Federal Register proposed sale notice gave a Sept. 24 date for the sale. An Interior Department source told PNA a likely explanation might be that the agency does not expect any changes to be made in the proposed incentives, since MMS is at a point in the process where only the governor will have a chance to comment on the incentives and he is expected to sign off on the package.

“It’s a matter of paperwork now, I think. Watson is high enough up in Interior to talk about them as if they’re a done deal.”