Timeline could allow for OCS drilling next year
If the Interior Department meets its new timeline for revising the environmental impact statement it used for its 2008 Chukchi Sea lease sale, Shell could potentially resume its exploration efforts next summer.
The Bureau of Ocean Energy Management set an early October deadline for a draft supplemental environmental impact statement on the lease sale.The final analysis is planned to be released in February 2015 with a record of decision in March.
BOEM was forced to revise its environmental impact statement for the lease sale after the 9th Circuit Court of Appeals rejected the original analysis.
Senators Lisa Murkowski and Mark Begich welcomed the proposed schedule. However, Murkowski said the timeline is only part of what the administration must do in the coming months to ensure an exploration season in the Chukchi next summer.
“I am still waiting for the administration to make a genuine commitment to the Arctic development – and to provide much-needed regulatory and permitting predictability,” Murkowski said. “Companies willing to invest billions of dollars to develop our resources must have confidence that the federal agencies responsible for overseeing their efforts will meet their deadlines in a way that will withstand judicial scrutiny.”
BP to focus on getting more oil out of Prudhoe
The recent sale of BP assets on the North Slope to Hilcorp will allow the company to focus its efforts on increasing production at Prudhoe Bay, according to Janet Weiss, President of BP’s Alaska Region. Weiss said the sale will also allow the company to concentrate on advancing the future opportunity of Alaska LNG.
The sale agreement includes all of BP’s interests in the Endicott and Northstar oilfields and a 50 percent interest in each of the Liberty and Milne Point fields.The sale includes oil and gas pipelines associated with these fields.
BP said it remains committed to its plans for increased investment at Prudhoe Bay, which are a result of oil tax reform by the state. “Thanks to oil tax reform, Alaska is now on course for increased investment and production, and even the possibility of LNG,” said Weiss.
The sale represents 15 percent of BP’s total net production on the North Slope – 19,700 barrels of oil equivalent per day.
Donlin applies for gas line right of way
Donlin Gold LLC applied to the State of Alaska for a right-of-way lease for a natural gas pipeline from Cook Inlet to the proposed mine north of Crooked Creek.The 14-inch diameter, 315-mile line would begin at the Beluga gas field 30 miles west of Anchorage and end at the proposed Donlin gold mine site.
Permitting is currently underway for the mine, a project of NovaGold Resources and Barrick Gold Corporation. A draft environmental impact statement for the mine is expected to be published in August with a final likely to take another year. A decision on the EIS and permits is due in late 2015.
Most of the pipeline is to be buried. Construction, which could begin in 2016, is expected to take three to four years. The estimated cost of the pipeline is $1.02 billion.
Governor signs Alaska LNG project enabling bill
Joined by hundreds of Alaskans, including pipefitters, skilled workers, welders, and legislators, Governor Sean Parnell moved Alaska one step closer to a trans-Alaska gas pipeline by signing Senate Bill 138. The bill advances a large-diameter Alaska gas pipeline project and empowers Alaska to become an owner in the Alaska LNG project, and get North Slope gas to Alaskans first using local hire.
SB 138 also empowers the Alaska Gasline Development Corporation to carry the state’s interests in the project’s infrastructure, mainly the liquefaction and marine facilities. The bill also creates a fund for critical infrastructure development and requires the Alaska Energy Authority to provide a plan to deliver more affordable energy to areas of Alaska that are not expected to have direct access to a natural gas pipeline from the North Slope.
In coming weeks, formal commercial agreements will be finalized by AGDC, the companies that have gas under lease, and TransCanada, allowing the project to advance into the Pre-Front End Engineering and Design phase. Hundreds of Alaskans will work on refining the cost and engineering aspects of the project.Work will also continue on assessing where off-takes will be needed to get gas to Alaskans.
Alaska’s standards are second to none
The Alaska Department of Environmental Conservation (DEC) recently accepted comments on the Proposed Large Commercial Passenger Vessel Wastewater Discharge General Permit. The five-year permit will include cruise ships coming to Alaska destinations.
The permit is largely based upon the work of the science panel and the legislative statutory changes in 2013, authorizing mixing zones for cruise ships. This permit utilizes a process based upon science, best technology, and more closely aligns cruise ship permits with the process used for other dischargers.
RDC applauded DEC for establishing a reasonable regulatory environment in order to help grow tourism and Alaska’s economy. In its comments, RDC wrote,“Having reasonable regulations that are protective of the environment yet still allow businesses to operate is critical.”
RDC member Holland America Line was recently named the 2014 Marine Environmental Business of the Year by the Port of Seattle. The cruise industry continually works to reduce fuel usage, conserve energy, improve recycling, and has better wastewater treatment systems than that of some Alaskan coastal communities.
Antidegradation plan raises concern
RDC is concerned that the Department of Environmental Conservation Division of Water’s proposed anti-degradation implementation plan will further burden permittees as well as agency staff with additional work, creating delays or even halting future projects due to permitting concerns.
“As these proposed regulations will be used in permitting discharges, it is important to RDC members to have reliable, timely permitting processes,” said Marleanna Hall, RDC Projects Coordinator.“These unnecessary changes further expose RDC members to regulatory risk, costs, and permitting delays, with little or no added benefit to the environment,” Hall added.To read RDC’s comments on this ongoing issue, please visit akrdc.org/alerts/2014/antidegimplementationcomments.
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