Alaska Online Public Notices #Susitna Valley Gas Exploration Licenses

Susitna Valley Gas Exploration Licenses Final Written Finding of the Director

The Alaska Department of Natural Resources (DNR), Division of Oil and Gas (DO&G), acting as the government buyer, has issued two Susitna Valley Gas Exploration Licenses to the Alaska Natural Gas Corporation. These licenses cover approximately 567,359 acres of state-owned subsurface mineral estates in the Susitna Valley, primarily within the Matanuska-Susitna Borough, Alaska. The licenses are limited to exploration for and recovery of gas only, with a 10-year term and a combined work commitment of $6,000,000 ($3,000,000 per license). The License Areas exclude private lands, important recreation areas such as Nancy Lake and Willow Creek State Recreation Areas, and the Susitna River to reduce conflicts with private landowners and protect fisheries. The exploration targets unconventional gas resources, including biogenic gas-charged coals and carbonaceous shales, with an estimated mean total undiscovered microbial gas resource of 1.67 trillion cubic feet in the Susitna basin. The licenses grant exclusive rights to explore for gas on state lands, with the possibility to convert to gas-only leases upon meeting work commitments. The exploration and any subsequent development activities are subject to numerous federal, state, and local laws and regulations, including environmental protections, water use authorizations, and cultural resource preservation. Mitigation measures have been adopted to minimize impacts on air and water quality, fish and wildlife habitats, subsistence and recreational uses, and private property. The licenses require public notice and comment periods, and the licensee must submit detailed plans of operation for approval before conducting activities. The licenses also include provisions for emergency preparedness, spill prevention and response, noise and visual impact mitigation, and hiring practices encouraging local employment. The primary methods likely for transporting gas from the License Areas are pipelines and trucks, with pipelines being the preferred method due to safety and efficiency. The DNR has considered public comments expressing concerns about environmental, socio-economic, and climate change impacts and has incorporated responses and mitigation measures accordingly. The licenses are located in Alaska (US-AK), specifically in the Matanuska-Susitna Borough, with relevant nearby communities including Skwentna, Trapper Creek, Willow, Susitna, and Talkeetna. The exploration license process includes phased review, with future development subject to further permitting and public comment.

Description

The Alaska Department of Natural Resources (DNR), Division of Oil and Gas (DO&G), has issued the final written finding for the Susitna Valley Gas Exploration Licenses. The finding confirms that issuing the licenses is in the best interests of the state. The licenses may be awarded to the Alaska Natural Gas Corporation to explore gas on state-owned unencumbered lands within the License Areas in the Susitna basin, Matanuska-Susitna Borough, Alaska. The exploration licenses cover mostly forested and undeveloped lands with some transportation infrastructure. The process included public comments and agency reviews, with no competing proposals received. The exploration licenses have a 10-year term and include mitigation measures to address environmental and cultural resource concerns. The award is expected to generate short-term revenue to the state and potential long-term economic benefits if commercial quantities of gas are found.

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