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Public notice: DNR notice of intent on Susitna oil and gas exploration

by Sue Deyoe ~ June 7th, 2010

Notice of Intent to Evaluate Oil & Gas Exploration License; Request for Comments; Request for Competing Proposals; and Call for New Information
Category: Public NoticesDepartment: Natural Resources
Publish Date: 05/27/2010Location: Anchorage, Glennallen, Palmer, Wasilla
Coastal District: N/A

Body of Notice:

May 27, 2010

NOTICE OF INTENT TO EVALUATE OIL AND GAS EXPLORATION LICENSE PROPOSAL

REQUEST FOR COMMENTS ON EXPLORATION LICENSES WITHIN SOLICITATION AREA

REQUEST FOR COMPETING PROPOSALS

CALL FOR NEW INFORMATION ON SUSITNA BASIN EXPLORATION LICENSES FINAL FINDING OF THE DIRECTOR, SEPTEMBER 25, 2003

NOTICE OF INTENT TO EVALUATE EXPLORATION LICENSE PROPOSAL

Pursuant to AS 38.05.133, AS 38.05.945(b)(3), 11 AAC 82.912 and 11 AAC 82.918, the Department of Natural Resources, Division of Oil and Gas (DO&G) provides notice of its intent to evaluate the acceptability of an oil and gas exploration license proposal for Susitna Basin that was received April 29, 2010. The proposal was received in accordance with AS 38.05.133(b) and 11 AAC 82.909(d). The DO&G will hold confidential the name of the applicant and the provisions of the proposal in accordance with
AS 38.05.035(a)(8) and AS 38.05.133(e).

REQUEST FOR COMMENTS ON EXPLORATION LICENSES WITHIN SOLICITATION AREA

The DO&G is requesting comments on exploration license proposals for exploration of oil and gas resources within the solicitation area as noted in the next section below and as shown on the attached map. A successful license holder will have the exclusive right to explore state land within the license area for deposits of oil and gas for up to ten years, and may convert all or a portion of the license area to a standard oil and gas lease after meeting the work commitment specified in the license. Before issuing an exploration license, the DO&G must find, in writing, that an exploration license in this area is in the state’s best interest.

To be considered, comments on exploration licenses within the solicitation area must be submitted to the address and by the deadline provided at the end of this announcement.

REQUEST FOR COMPETING PROPOSALS

The DO&G is requesting competing proposals within the solicitation area. The solicitation area consists of state-owned land within T. 26 N., R. 6 thru 10 W., T. 25 N., R. 6 thru 10 W., T. 24 N., R. 6 thru 10 W., and
T. 23 N., R. 8 thru 10 W., Seward Meridian, encompassing approximately 408,060 gross acres, as shown on attached map.

The DO&G does not have a standard proposal form. Submitted proposals shall be in accordance with
11 AAC 82.909(e) and must include the following information below, along with the required map:

1. Describe the lands proposed to be subject to licensing and provide this information on a map at a scale of 1:250,000 or greater;

2. State the specific work commitment expressed in dollars of direct exploration expenditures;
3. Propose the term of the license (not to exceed ten years);
4. Describe the amount and form of bond or other security to be posted, based on the projected cost of the planned exploration work (AS 38.05.132(c)(4)(B));
5. State that the prospective licensee meets the minimum qualifications specified under 11 AAC 82.200(a) and 11 AAC 82.205; and

6. Designate one person authorized to receive notices on behalf of the prospective licensee.
If competing proposals are received, the commissioner will request competitive sealed bids.

To be considered, competing proposals must be submitted to the address and by the deadline provided at the end of this announcement.

CALL FOR NEW INFORMATION

The DO&G is requesting new information on the Susitna Basin Exploration Licenses Final Finding of the Director issued on September 25, 2003. Once a best interest finding for an area is written, the DO&G can issue licenses in that area for up to ten years without having to issue a new finding for each, provided that before each subsequent license, the DO&G solicits new information and makes a determination whether substantial new information has become available that justifies a supplement to the most recent best interest finding (AS 38.05.131(a), AS 38.05.180(w), and AS 38.05.035(e)(6)(F)). Through this request for new information, the DO&G provides an opportunity for interested parties to submit new information to the DO&G that has become available since the issuance of the best interest finding for this area. The Susitna Basin Final Finding is available on the DO&G website: www.dog.dnr.alaska.gov/oil

The DO&G is requesting new information concerning:
• fish and wildlife species and their habitats in the area;
• current and projected uses in the area, including uses and value of fish and wildlife such as subsistence and recreation;
• potential geophysical hazards within the area;
• reasonably foreseeable cumulative effects of exploration, development, production, and transportation for oil and gas in the area, including effects on subsistence uses, fish and wildlife habitat and populations and their uses, and historic and cultural resources;
• license stipulations and mitigation measures, including any measures to prevent and mitigate releases of oil and hazardous substances, to be included in the license, and a discussion of the protections offered by these measures;
• reasonably foreseeable fiscal effects of the license and the subsequent activity on the state and affected municipalities and communities, including the explicit and implicit subsidies associated with the license, if any;
• air and water quality;
• reasonably foreseeable effects of exploration, development, production, and transportation involving oil and gas on municipalities and communities within or adjacent to the lease sale area.

When providing information, please be as specific as possible. For example, if your information is from a published study, please provide a copy of the study or a complete citation so that DO&G staff can obtain a copy for consideration. Based on the comments received, DO&G will determine whether there is substantial new information that justifies a supplement to the finding, and will either issue a supplement to the finding, or a decision of no substantial new information. To be considered, new information must be submitted to the address and by the deadline provided at the end of this announcement.

HOW TO MAKE A SUBMITTAL

Submittal(s) should clearly be marked as “Comment on the Exploration License Proposal”, “Competing Proposal”, or “New Information for Susitna Basin Best Interest Finding”, and must be sent to:

Terry Peterson
Natural Resource Manager
500 W. 7th Ave., Suite 800
Anchorage, AK 99501

or by email to:
terry [dot] peterson [at] alaska [dot] gov

Comments on the exploration license proposal, competing proposals, and new information for the best interest finding must be received no later than:

July 1, 2010, 4:30 pm

For further information contact Terry Peterson at (907) 269-8816 or terry [dot] peterson [at] alaska [dot] gov.

The DO&G complies with Title II of the Americans with Disabilities Act 1990. This publication will be made available in alternative communication formats upon request.

A person is eligible to file a request for reconsideration of the commissioner’s decision and file any subsequent appeal to the Superior Court only if the person has meaningfully participated in the process by either submitting written comment during the period for receipt of public comment or has presented oral testimony at a public hearing, if a public hearing was held, and is affected by the final written finding (AS 38.05.035(i)).

Kevin R. Banks
Director

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