Exploration licensing open in April

Kristen Nelson

Petroleum News

The Alaska Division of Oil and Gas has a reminder out that exploration license proposals on state land are accepted annually in April.

Applications may be submitted in areas of the state where there has been a determination of lands. Exploration has been determined to be in the state’s best interest on close to 1 million acres in the Susitna basin, “awaiting a new proposal,” the division said.

The intent of the exploration licensing program is to encourage exploration in areas with unknown hydrocarbon potential, with licensees required to provide all geological and geophysical data acquired under an exploration license to the state.

An area proposed for an exploration license must be between 10,000 and 500,000 acres, with a license good for up to 10 years.

Instead of an up-front bonus payment, licensees must commit direct expenditures for exploration. There is a one-time $1 per acre licensing fee with no annual rental payments.

An existing exploration license covers 18,698 acres in the Houston-Willow basin, according to the division’s website, awarded Dec. 1, 2018, and good for 6 years. There are also two pending applications, both in the Susitna Valley, one for 433,331 acres and one for 479,918 acres.

A license in the Gulf of Alaska is under appeal.

The division said proposals must be submitted during the call for proposal period, with an exploration license awarded “if the proposal is found to be in the best interest of the state.” If there are competing proposals for an area, applicants must submit sealed bids, with the successful bidder “determined by the highest bid in terms of the minimum work commitment dollar amount.”

Once the work commitment has been met, the licensee may convert all or a portion of the license area to oil and gas leases.

- KRISTEN NELSON