The Environmental Costs and Benefits of Unitized Exploration or Development. DNR considered environmental issues in the lease sale process, this unitization process, and will review them again during the unit plan of operations approval process. Unitized exploration, development, and production minimize surface impacts by consolidating facilities and reducing activity in the field. The Initial XXX requires two exploratory xxxxx. The unit operator must obtain DNR’s approval of a unit plan of operations and permits from various state and federal agencies before beginning operations, including exploratory xxxxx, within the unit area. For example, state unitization regulations require the Commissioner’s approval of a unit plan of operations before the unit operator performs any field operations. 11 AAC 83.346. A unit plan of operations provides a more detailed plan for surface activities incident to exploration of the unit area than does a XXX. When working interest owners begin the permitting process to commence operations under a XXX, it must submit a Coastal Project Questionnaire, permit applications, and supporting information to the Alaska Division of Governmental Coordination (DGC). Consistency with the Alaska Coastal Management Program (ACMP) is determined by the DGC, state resource agencies (DNR, DEC, ADF&G) and affected local governments (North Slope Borough). The DGC conditions the proposed activity to ensure consistency with the ACMP and NSB Coastal District Plan (NSBCDP). Submittal of these documents to the state initiates an intensive public and agency review process. DGC organizes an inter-agency review, determines which permits are required, and publishes a public notice soliciting comments from federal, state and local agencies, and the public. DGC designates a 50-day review schedule starting with the public notice. State and federal agencies are asked to review the application, request any additional information and submit comments. After reviewing the comments, DGC crafts additional mitigation measures as necessary to ensure the project is consistent with the ACMP and NSB Coastal Management Program. DGC then issues a Proposed Consistency Determination for public comment. After the public comment period, additional stipulations may be imposed and a Final Consistency Determination may be issued for a project in the unit area. When reviewing a proposed unit plan of operations, the Division considers the unit operator’s ability to compensate the surface owner for damage sustained to the surface estate and plans for restor...
The Environmental Costs and Benefits of Unitized Exploration or Development. The proposed NE Storms Unit area is habitat for a variety of land and marine mammals, waterfowl and fish. Area residents may use this area for subsistence hunting and fishing. Oil and gas activity in the proposed unit area may affect some wildlife habitat and some subsistence activity. Mitigation measures, including seasonal restrictions on specific activities, reduce the impact on fish, wildlife, and human populations. Mitigation measures specifically address potential impacts to subsistence access and harvests. DNR develops lease stipulations through the lease sale process to mitigate the potential environmental impacts from oil and gas activity. Alaska statutes require DNR to give public notice and issue a written finding before disposal of the State’s oil and gas resources. AS 38.05.035(e), AS 38.05.945, 11 AAC 82.415. In the written best interest finding, the commissioner may impose additional conditions or limitations beyond those imposed by law. AS 38.05.035(e). DNR considered all comments submitted before holding Lease Sales 87 and the North Slope Areawide 2003. DNR included mitigation measures in the leases. The proposed NE Storms Unit leases contain stipulations designed to protect the environment and address any outstanding concerns regarding impacts to the area’s fish and wildlife species and to habitat and subsistence activities. They address issues such as the protection of primary waterfowl areas, site restoration, construction of pipelines, seasonal restrictions on operations, public access to, or use of, the leased lands, and avoidance of seismic hazards. Including the leases in the NE Storms Unit will neither change these protective measures, nor result in additional restrictions or limitations on public access to the lands or to public and navigable waters. Further, leases operations both before and after unitization are subject to a coastal zone consistency determination, and must comply with the terms of both the State Coastal Management Program and North Slope Borough Coastal Management Plan. Lease and unit operations also require State approval of a plan of operations application. Ongoing mitigation measures such as seasonal restrictions on specific activities in certain areas will reduce the impact on bird, fish, and mammal populations. Designating primary waterfowl areas and restricting activities within these areas is one method of protecting the bird habitat. DNR requires consolidation of facilities to minimize surface disturbanc...
The Environmental Costs and Benefits of Unitized Exploration or Development. The state’s evaluation of the environmental impacts from oil and gas activity began over fourteen years ago when DNR first considered offering to lease the acreage within the proposed McCovey Unit. DNR develops lease stipulations through the lease sale process to mitigate the potential environmental impacts. Alaska Statutes require DNR to give public notice and issue a written finding before the disposal of the state’s oil and gas resources. AS 38.05.035(e), AS 38.05.945, and 11 AAC 82.415. DNR offered the leases in the proposed McCovey Unit in Competitive Lease Sale 65 held on June 4, 1991. DNR first solicited public and agency comments on the sale on August 21, 1986, when we first proposed including the sale in the state’s five-year leasing schedule. The state considered the comments received and in the Five-Year Leasing Program published in January 1987, DNR proposed holding Sale 65 in June 1991. On February 4, 1988, DNR issued a public notice requesting general information on the proposed sale area. Environmental groups, the oil and gas industry, state and federal agencies and the public had until June 30, 1988, to provide comments. The DNR Office of History and Archaeology, ADF&G, MMS, and industry submitted general comments in response to the public notice. Additionally, the USFWS provided data on bird use of the barrier islands, and the NSB expressed concern over protection of subsistence whaling. On January 31, 1990, DNR issued a request for socioeconomic and environmental information regarding the proposed sale. The Division of Oil and Gas is specifically interested in information concerning fish and wildlife populations and potential effects of the proposed sale on these resources; human uses of fish and wildlife and potential effects of the proposed sale on these users; potential effects of proposed Sale 65 on the economy, lifestyles, and well-being of the region’s residents; and new programs and projects planned for or currently occurring in the proposed sale area. Data regarding potential effects of the proposed sale on air and water quality; characteristics of local communities; and the location of archaeological, historical, and recreation sites in the Sale 65 area are also requested, as are recommendations regarding potential mitigating measures. The notice requested agencies, local governments, and the public to submit information regarding the proposed sale area by May 31, 1990. The ADEC submitted a 77 page Environment Analysis of State O...
The Environmental Costs and Benefits of Unitized Exploration or Development. DNR develops lease stipulations, called mitigation measures, through the lease sale process to mitigate potential adverse environmental and social impacts of petroleum exploration, development, production, and transportation. Alaska Statutes require DNR to give public notice and issue a written finding prior to the disposal of the state’s oil and gas resources. Environmental protection measures attached to these leases have been developed over decades of lease offerings and today represent protection equal to or beyond what is required by existing law. These measures were developed after considering terms imposed in previous North Slope oil and gas lease sales, and after considering fish and wildlife resource and harvest data submitted by ADF&G. Also considered were environmental data relating to air and water quality, solid and liquid waste disposal, and oil spill prevention information submitted by ADEC, as well as comments submitted by the public, local governments, environmental organizations, and other federal, state, and local agencies. Additional project-specific mitigation measures will be imposed if and when oil and gas lessees or the unit operator submit proposed plans of operation. In addition to compliance with these mitigation measures, lessees must comply with all applicable local, state and federal codes, statutes and regulations, and any subsequent amendments. AS 38.05.035(e), AS 38.05.945, and 11 AAC 82.415. Mitigation measures address the protection of resources and values including protection of waterfowl habitat, access to subsistence resources, protection of archaeological resources, site restoration and rehabilitation, proper construction of pipelines and roads, and avoidance of geophysical hazards. Leases in the proposed unit area were offered in State of Alaska Lease Sales 70A, 70AW, 80, and most recently Areawide Lease Sale NS 2000 (NS 2000). The mitigation measures for the most recent lease in the proposed unit will be applied unit-wide. NS 2000 mitigation measures are hereby incorporated in the individual lease contracts as amended by this Findings and Decision. The Final Finding of the Director for North Slope Areawide Sale 87, held November 15, 2000, authorized NS 2000 under AS 38.05.035. This Decision and Finding of the Commissioner incorporates by reference the Final Finding of the Director for North Slope Areawide Oil and Gas Lease Sale 87, dated Tuesday, March 17, 1998. State regulation 11 AAC 83.303 (b)(1) requires that th...
