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DNR evaluates Susitna exploration license, seeks competing proposals
Kay Cashman Petroleum News
The Alaska Department of Natural Resources' Division of Oil and Gas intends to evaluate the acceptability of an oil and gas exploration license proposal for the Susitna Valley area.
The complete notice, issued Aug. 7, with a map is available on the state's online public notice system at: https://aws.state.ak.us/OnlinePublicNotices/Notices/View.aspx?id=216325
The division is asking for additional proposals for oil and gas or gas only exploration within the Susitna Valley solicitation area. The solicitation area consists of state-owned, unencumbered land within T 18 N., R. 5-12 W., T. 19 N., R 5-12 W., T. 20 R. 5-12 W., T 21 N., R. 5-12 W., T. 22 N., R 5-12 W., T. 23 N., R. 5-12 W., T. 24 R. 5-12 W., T. 25 N., R. 5-12 W. Seward Meridian.
(See map in the online issue PDF)
A notice of intent to submit a proposal must be submitted within 30 days of the date of this notice. To submit a proposal, complete the exploration license application form, available at http://dog.dnr.alaska.gov/Programs/ExplorationLicensing.htm, provide the required attachments, and send all documents to 500 W. 7th Ave., Suite 1100, Anchorage, AK 99501.
Proposals must be received within 60 days from the Aug. 7 date of notice to be considered. If proposals are received and the commissioner finds that an exploration license should be issued, the commissioner will request competitive sealed bids from each applicant who submitted a proposal.
A successful license holder will have the exclusive right to explore state land within the license area for deposits of oil and gas for up to 10 years and may convert all or a portion of the license area to oil and gas leases after meeting the work commitment specified in the license.
Before issuing an exploration license, the division must, in writing, find that an exploration license in this area is in the state's best interest.
Alaska Natural Gas Corp. The 2023 issue of The Explorers, an annual magazine published by Petroleum News, included a profile of Alaska Natural Gas Corp., which had two applications pending for a single exploration program in the Susitna Valley. The applications have since been removed from the state's exploration licensing page.
The two license areas covered 913,249 contiguous acres in the Susitna River basin within the Matanuska-Susitna valleys, immediately west of the Parks Highway.
Alaska Natural Gas Corp. submitted its proposal in late April 2017, asking for 10-year licenses, each with a $500,000 work commitment. Based on economic and geologic considerations, the state imposed $3 million and $3.3 million work commitments.
The licenses only allow for natural gas exploration. The Susitna Valley is considered gas-prone, with a higher likelihood of unconventional resources such as coal-bed methane.
Alaska Natural Gas Corp. is a privately held company. On its website, the company said it planned to use horizontal drilling technology to target coal-bed methane in the region.
Alaska Natural Gas Corp. is a privately held company. In state corporations filings, Robert Fowler was listed as president and Jean-Robert Pronovost as secretary and treasurer.
--KAY CASHMAN
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