The US Bureau of Ocean Energy Management announced on Nov. 15 that it will prepare an environmental impact statement in support of a potential 2019 oil and gas lease sale in the Beaufort Sea. Its announcement came hours before Alaska’s Oil & Gas Division (OGD) reported that it received a near-record $21.8 million in winning bids that day in its annual North Slope, Beaufort Sea, and North Slope Foothills areawide lease sales.
BOEM’s notice of intent to prepare a Beaufort Sea lease sale EIS appeared in the Nov. 16 Federal Register. Comments must be received by Dec. 17. Public meetings will be held in Utqiagvik on Dec. 3, Nuiqsut on Dec. 4, Kaktovik on Dec. 5, and Anchorage on Dec. 6.
“We especially need to hear from residents of the Beaufort Sea communities, letting us know how the proposed leasing area is currently being used and what specific areas need extra attention,” BOEM Alaska Region Director James J. Kendall said.
“To address these issues, we will use rigorous science together with traditional knowledge and other input we receive from this early step in the leasing process,” Kendall said.
The area identified for the potential lease sale includes the entire Beaufort Sea OCS planning area, which encompasses about 65.1 million acres, the US Department of the Interior agency said.
DOI’s proposed 2019-24 National Outer Continental Shelf Oil and Gas Leasing Draft Proposed Program includes Beaufort Sea lease sales in 2021 and 2023 as well as 2019. BOEM said it last held a lease sale there in April 2007, where 90 blocks were leased, bringing more than $42 million into the federal treasury.
Alaska state officials noted that 2017’s North Slope sale was the third-largest ranked by bonus bid amount since 1998, when areawide oil and gas leasing began. By bid per acre, it was the largest sale since 1998, which netted an average $110/acre.
Bid per acre peak
The Nov. 15 North Slope sale shattered the bid per acre record, netting an average of $121/acre. It edged out the 2017 sale to rank third largest, bringing in $27.3 million, $6.9 million more than last year, the officials said.
“As we have always said, Alaska is open for business, and this successful lease sale, following a banner year in 2017 is a perfect example of that,” said Governor Bill Walker (I). “I am particularly pleased to see the continued work of Repsol E&P showing strong interest, and we welcome all bidder groups to Alaska’s North Slope.”
OGD Director Chantal Walsh observed, “The continued delineation of the Nanushuk trend will yield great benefits for the state once development begins.”