RDC NEWS DIGEST
MMS determines Shell’s plans to be complete
The U.S. Minerals Management Service has determined that Shell’s new Beaufort Sea exploration plan is complete, initiating a 30-day period in which the agency will carry out an environmental assessment of the plan. Following the conclusion of the environmental assessment, the agency will decide whether to approve the plan, require modification or disapprove it.
Shell is proposing exploration activities limited to the far western area of Camden Bay, including the use of one drill ship with one tending ice management vessel drilling two wells over the course of one year.
The two leases are about 16 and 23 miles north of Point Thomson. The two leases were obtained during the Beaufort Sea oil and gas lease sales 195 and 202 in 2005 and 2007. The sales were included in the 2002-2007 five year oil and gas leasing program and are not affected by the recent court decision on the current leasing program, which sent the 2007-2012 program back to MMS for additional environmental review.
Doyon still interested in Yukon Flats
Despite the U.S. Fish and Wildlife Service’s rejection of a proposed land exchange at the Yukon Flats National Wildlife Refuge, Doyon Limited may move forward with exploration on land within the refuge that it owns near the villages of Birch Creek and Stevens Village.
Doyon’s current land base in the area has potential for significant oil and gas prospects. Moreover, recent U.S. Geological Survey information indicated the land Doyon was about to trade away in the exchange may also hold promising petroleum prospects.
Oil and gas development in the Yukon Flats has the potential to create economic opportunities in the rural region with new jobs for local residents, as well as a reliable fuel source.
Doyon drills gas well near Nenana
Doyon is analyzing the results of a test well drilled this summer in the potentially natural gas-rich Nenana Basin west of Fairbanks.
Doyon is partnering with Usibelli Energy, Arctic Slope Regional Corporation and the developer, Denver-based Rampart Energy.
Doyon’s Arctic Wolf rig was transported in 50 truck loads from the North Slope to the site, four miles from Nenana.
The Fairbanks-based Native corporation and its three partners spent $15 million on the exploratory gas well Nunivak No. 1. The basin could hold 1 to 6 trillion cubic feet of natural gas. For comparison, Cook Inlet has produced 7 trillion cubic feet of gas.
Jim Mery, a vice president with the Interior Native regional corporation, said he is “very encouraged” by preliminary results.
Doyon has leased drilling rights to 500,000 acres in the basin. The prospect is ideally situated near critical infrastructure, including the Parks Highway, the Alaska Railroad and the electrical intertie.
If exploration is successful, Doyon will drill additional wells in 2010 to define the prospect. Gas could be piped to Fairbanks and North Pole or used at Nenana to generate electricity for the Railbelt. If the find is large, gas could be piped to Southcentral. Major users initially would be Golden Valley Electric Association and the Flint Hills refinery in North Pole.
To justify a pipeline to Fairbanks, Doyon will need to confirm a 15 to 20-year supply of 10 billion cubic feet per year.
Begich introduces package of Arctic bills
Recognizing that the Arctic will play a major role in the nation’s commerce, foreign policy, and energy independence over the next 50 years, U.S. Senator Mark Begich in August introduced a legislative package of seven bills designed to plan and prepare for the changes and challenges in the region. Begich devoted his maiden speech on the Senate floor to the issue because of its importance to Alaska.
Begich’s package of bills deal with oil exploration, climate change, shipping, health and diplomacy in America’s Arctic. Begich said the Arctic holds enormous natural resource wealth which should be carefully developed to create American jobs and help ensure the nation’s energy independence.
“This century, and the next 50 years of Alaska statehood, brings great challenges and great opportunities,” Begich said. “To succeed, we must address broader policy implications of an ice-diminishing Arctic on the diplomatic, scientific and national security fronts.”
RDC conference approaches, save the date!
RDC’s 30th Annual Conference, Alaska Resources 2010, will be held this November 18-19 at the Dena’ina Convention Center in Anchorage. The conference, which focuses on Alaska’s oil, gas, mining, fishing, tourism and forestry industries, attracted 800 attendees in 2008. Among this year’s slate of speakers is Gaétan Caron, Chairman and CEO of Canada’s National Energy Board. For information and sponsorship opportunities, visit akrdc.org.
AMEREF news and upcoming events
Provided by the Alaska Mineral & Energy Resource Education Fund (AMEREF), Rock & Roll Around Alaska is a course designed to educate Alaska’s teachers about Alaska’s natural resources and to incorporate AMEREF’s curriculum into the classroom. It is an interactive course offered through all three University of Alaska locations and allows teachers to receive one continuing education unit (CEU) towards recertification. Guest speakers and industry presentations are welcome. Upcoming course dates and locations are September 10-12 in Fairbanks, October 16-17 in Juneau (Math/ Science Conference for educators), November (TBD) in Anchorage, and April 21-23 on Prince of Wales Island.
AMEREF will sponsor two teachers (one each from Fairbanks and Anchorage) to attend the Math & Science Conference in Juneau. AMEREF will also offer the Rock & Roll Around Alaska course in Juneau for teachers to earn one CEU through University of Alaska Southeast. Please consider helping send a teacher to this important conference. For more information, please visit ameref.org.
AMEREF will also be hosting a fourth grade Anchorage class for one day at the Alaska Miners Association (AMA) Convention and Trade Show on November 5th. This is an excellent way to demonstrate to young Alaskan minds the opportunities mineral development in Alaska has to offer. Please consider partnering with AMEREF to help make it a success.
Finally, AMEREF will once again benefit from the George Schmidt Raffle and Silent Auction at the annual AMA banquet on November 6, 2009. Raffle and auction prizes and packages may be donated any time before the banquet, and sponsors will be recognized through program flyers and more. Your donation may be tax deductible. ,For additional information, and to learn about the AMEREF program and current events, please visit ameref.org.
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