Groups challenge Smith Bay plan

A coalition of environmental groups offered the lone comments on a NordAq exploration program planned for Smith Bay

Eric Lidji

For Petroleum News

A one-well oil exploration program proposed for the nearshore Smith Bay region of the North Slope this winter has raised the hackles of a coalition of environmental groups.

In joint comments to the Alaska Department of Natural Resources, eight environmental groups challenged NordAq Energy Inc.’s proposed Tulimaniq No. 1 exploration well.

The groups were the Alaska Wilderness League, the Center for Biological Diversity, the Conservation Lands Foundation, the Eyak Preservation Council, the Northern Alaska Environmental Center, Resisting Environmental Destruction on Indigenous Land, which is better known by its acronym REDOIL, the Sierra Club and The Wilderness Society.

Aside from the comments of other state agencies, the environmental groups offered the only public comments on the proposed plan of operations for exploration work.

The state responded to the comments in its recent decision to approve the winter exploration program. The decision can be appealed before exploration work begins.

NordAq must still obtain various permits for specific activities before work can begin.

The groups accused the department of failing to properly consider the cumulative environmental impacts of the program, the specific environmental impacts on the Teshekpuk Lake region, the potential for an oil spill and other environmental issues.

NordAq plans to drill a vertical well in the Ikpikpuk River delta this winter. The program includes core samples and a vertical seismic profile, which would occur in the well bore.

While NordAq is still narrowing down the precise location, the company intends to drill the well from an ice pad constructed in the nearshore waters off the coastal delta.

Depending on the results, NordAq might drill appraisal wells in subsequent years.

The Smith Bay region is remote, even by the standards of the North Slope. But the region is also prospective for oil and gas and has therefore drawn the interest of oil companies.

Teshekpuk Lake

A recent court decision requires the state to analyze impacts at each stage of a project.

Essentially, the comments suggest that the department should have split its approval process in two, submitting a preliminary finding for comments and then issuing a final decision. The state uses that bifurcated approach in other permitting scenarios.

The state believes its existing regulatory process adheres to the court ruling by providing the public with a chance to comment on the plan of operations directly, by analyzing the plan of operations in its final ruling and by giving the public time to appeal any ruling.

The proposed program would occur in the Teshekpuk Lake region.

Second only to the Arctic National Wildlife Refuge, the Teshekpuk Lake region is perhaps the most contentious area of the North Slope, when it comes to development.

The environmental groups took pains in their comments to describe the “ecological vibrant” region, which is an important bird habitat and a popular area for caribou herds.

The state believes the NordAq plan properly considers those special needs. Common measures to mitigate environmental impacts in the “Teshekpuk Lake Special Area” include a restriction on summer barge travel to protect birds, among other measures.

Oil spill prevention

The department believes many of the group’s concerns about oil spills stem from development work, while the current program only addresses exploration activities.

For exploration activities in Alaska, the Alaska Department of Environment Conservation manages oil spill contingency plans before work begins and the Alaska Oil and Gas Conservation Commission inspects blowout preventers before drilling gets under way.

In agency comments included with the ruling, the DEC reminded NordAq to apply for a discharge permit relative to the work but otherwise made no comment about spill plans.