Coal Bed Methane Exploration a Potential in Susitna Valley

The Alaska Department of Natural Resources Division of Oil and Gas is considering 10-year coal bed methane exploration licenses for two sites in the Susitna Valley. The sites cover more than half a million acres, including nearly 35,000 acres of private land. Alaska Natural Gas Corporation applied for the permits.

The company submitted the applications in late April of 2024. And the company name was initially kept confidential until the preliminary finding was released in August, 2025.

The finding indicates that all acreage for which the State owns the subsurface rights in the proposed license area would be available for oil and gas exploration. The sites extend on the west side of the Parks Highway from the south Trapper Creek area, west nearly to Skwentna, and south nearly to Susitna. Several major rivers in the Susitna drainage area are included in the proposed license area.

According to the Finding, the license areas cover about seven percent of the Susitna River basin, primarily within the lower Susitna and Yentna sub-basins, over well-documented fishing and hunting areas. Also noted in the Findings are the potential for air pollution, seismic disturbances, altered river drainage patterns and sedimentation, changes to groundwater, and habitat fragmentation. 

However, the Finding indicates that the potential benefits of an alternative source of fuel for powering the railbelt communities and carbon sequestration outweigh those potential environmental issues.  

Representatives from Alaska Natural Gas Corporation did not respond to a request for comments.

The DNR’s Preliminary Finding is available on the DNR website. Public comments may be sent by email to dog.bif@alaska.gov by Thursday, October 30th.