By OGJ editors
HOUSTON, Dec. 8 -- Alaska Gov. Frank H. Murkowski said that all other options would have to be exhausted before the state would consider buying back any coalbed methane leases in the Mat-Su Borough and on the Kenai Peninsula.
"The state will consider buybacks of shallow natural gas leases only as a last resort," Murkowski said during a news conference last week.
State officials currently are working with the public in crafting rules that will be required for coalbed methane development, such as setback requirements, noise limitations, and water quality monitoring.
"Prior to approving any coalbed methane development, the Department of Natural Resources will make a determination as to whether additional site specific measures are necessary given the particular values of the location," Murkowski said. "Until DNR's public process is complete and the companies have determined where development might occur, it is premature to consider buybacks."
The state remains committed to the development of coalbed methane, recognizing that over the next decade the known reserves of natural gas in the Cook Inlet region may be inadequate to meet the demand. Additionally, coalbed methane could be a significant source of rural energy, he said.
