Active bidding expected at Alaska oil lease sales

Reuters ^ | Feb 23, 2006 | Reuters

[thackney]

ANCHORAGE, Alaska, Feb 23 (Reuters) - A pair of high-profile but delayed Alaska oil and gas lease sales are expected to draw heavy interest when bidding takes place next week, a state energy official said on Thursday.

High oil prices and an increased number of interested energy companies are expected to boost demand for the leases that will provide producers with the right to explore for oil and gas on state territory, said Bill Van Dyke, acting director of the Alaska Division of Oil and Gas.

The leases to the North Slope area and the Beaufort Sea are in the vicinity of the nation's biggest oil fields and are considered prime prospects for new oil and gas discoveries. The bids for the leases will be opened March 1.

"Commodity prices are good and we have a lot of new companies interested in Alaska," said Van Dyke at a trade show held in Anchorage. "We're hoping for a good turnout and I think we'll get it."

The North Slope lease sale will offer 1,225 tracts of land spread over 5 million acres and the Beaufort Sea sale will offer 573 tracts spread over 2 million acres, according to the division.

Alaska has shortened the duration of the lease terms and increased the royalty rate, a move that state energy officials say is justified given high oil prices and the proximity to existing oil fields.

Tracts that are considered to be reasonably close to existing oil fields will be sold for terms of five years rather than seven years and royalty rates for those lands will be 16.67 percent versus the previous rate of 12.5 percent.

[thackney]

Better late than never. These sales were scheduled for last October.

[thackney]

The North Slope Areawide sale area encompasses a gross area of approximately 5.1 million acres that are divided into 1,225 tracts ranging in size from 640 to 5,760 acres. These tracts are located entirely within the North Slope Borough between the Canning River and Arctic National Wildlife Refuge (ANWR) on the East and the Colville River and National Petroleum Reserve - Alaska (NPRA) on the West. The southern boundary of the sale area is the Umiat baseline. The northern fringe of the sale area is set back from the Beaufort Sea to exclude any tide or submerged lands. Activities resulting from this sale may affect the native villages of Barrow, Nuiqsut, and Kaktovik, and the community of Deadhorse.

Tract Map
http://www.dog.dnr.state.ak.us/oil/products/publications/northslope/nsaw2006/nsaw_06_tractmap.pdf

[SevenofNine]

SO Kathy who fault is this Karl Rove or Dick Cheney LOL!

[thackney]

The Beaufort Sea Areawide sale area encompasses a gross area of approximately two million acres that are divided into 573 tracts ranging in size from 640 to 5,760 acres. These tracts are located within the North Slope Borough and consist of State-owned tide and submerged lands in the Beaufort Sea between the Canadian Border and Point Barrow. The sale area is adjacent to both the National Petroleum Reserve - Alaska (NPRA) and the Arctic National Wildlife Refuge (ANWR). The southern fringe of the sale area includes some state-owned uplands lying between the NPRA and ANWR. Activities resulting from this sale may affect the native villages of Barrow, Nuiqsut, and Kaktovik, and the community of Deadhorse.

Tract Map
http://www.dog.dnr.state.ak.us/oil/products/publications/beaufortsea/bsaw2006/bsaw_06_tractmap.pdf

[CWOJackson]

Don't forget the UAE and Walmart.

[KellyAdmirer]

Oh, the caribou! Oh, the humanity! Hahahahahaha.

[wildcatf4f3]

Oh the caribouanity!!

[wildcatf4f3]

or caribouity!!!

[thackney]

Leasing Methods:

Alaska has several leasing method options designed to encourage oil and gas exploration and maximize state revenue. These methods include combinations of fixed and variable bonus bids, royalty shares and net profit shares. Minimum bids for state leases are generally $5 or $10 per acre. Fixed royalty rates are generally 12-1/2 percent or 16-2/3 percent, although others have been as high as 20 percent. A sliding scale royalty has also been used on occasion. Lease terms are set at 5, 7, or 10 years, depending on geographical location.

Five-Year Oil and Gas Leasing Program
http://www.dog.dnr.state.ak.us/oil/products/publications/otherreports/5year06/5yr_program.pdf
January 2006 (19.8 MB)

Central North Slope Oil & Gas Activity Map
http://www.dog.dnr.state.ak.us/oil/products/maps/northslope/images/north_slope_activity_map_2006-01-10.pdf
January 2006 (1.06 MB)

North Slope Oilfield and Pool Ownership
http://www.dog.dnr.state.ak.us/oil/products/maps/northslope/images/ns_pool%20ownership_02_05.pdf
February 2005 (815 K)