STATE OF ALASKA
Department of Natural Resources
Division of Mining, Land and Water
Northern Regional Office
AS 38.05.945 Public Notice
Preliminary Finding and Decision
ADL 416074 Designated Material Site—Mine Site E Expansion
Proposed Action
Hilcorp Alaska, LLC (Hilcorp), has applied to the Department of Natural Resources (DNR), Division of Mining, Land and Water (DMLW), Northern Region Office (NRO) to expand Mine Site E (also known as Designated Material Site ADL 416074) with two new gravel extraction cells. Cell 5 is located on the north side of the mine site and to the east of Cell 4A, adding 16.6 acres. Cell 6 is to the east side of the mine site and to the east of Cell 1, adding 50.5 acres the mine site’s current 157 acres, more or less. Hilcorp applied for the mine site expansion to support the new pad development and additional pad expansions for drilling new wells within the Milne Point Unit. Additionally, Hilcorp has submitted a material sale application (ADL 420862) to purchase 500,000 cubic yards (cy) of material from the proposed two new cells at Mine Site E.
The DMLW, NRO has written a Preliminary Finding and Decision under AS 38.05.035(e), Written Finding for the Disposal of State Resources, proposing to designate the expansion of the material site under AS 38.05.550(b), Disposal of Materials and to issue a material sale contract to Hilcorp for 500,000 cy under AS 38.05.550-565.
Material Site Designation
This Preliminary Finding and Decision proposes to designate the expansion of the material site which will allow for subsequent issuance of material sale contracts under AS 38.05.550-565, including Hilcorp’s requested material sale contract (ADL 420862) for 500,000 cy from this site. The designation under AS 38.05.550(b) will allow, if deemed appropriate, for the use and operation of the material site for the long-term sale and extraction of materials until closed by the DMLW. Contracts for the sale of material may be issued by DMLW either by negotiated, competitive, limited, or public and charitable material sale methods. Contracts issued under AS 38.05.550-565, Material Sales, will be issued at a representative sale price per cubic yard determined by the DNR Commissioner or at fair market value determined by appraisal. Some sales under AS 38.05.565, Sale or Disposal of Materials for Special Purposes, may be without cost. Contracts issued under the authority of AS 38.05.810(a) Public and Charitable will be issued at less than fair market value.
Although the DMLW may continuously sell materials without further finding or notice once the site is designated, the DMLW must also ensure that state land and natural resources be available for the maximum use consistent with the public interest. To that end, the DMLW will continue to carefully review individual sale requests and operation plans once sites have been designated, to ensure resource consideration and multiple use issues are appropriately evaluated.
The approximately 67.1-acre expansion of the material site includes Cell 5 (16.6 acres to the east of Cell 4A) and Cell 6 (50.5 acres to the east of Cell 1). Mine Site E currently includes 157-acre, which is located approximately 2 miles east of the Oliktok Road, approximately 5 miles southeast of Oliktok Point, and 2 miles south of Simpson Lagoon within the Milne Point Unit on the North Slope. The legal description is that portion within the S1/2 Section 24, Township 13 North, Range 9 East, Umiat Meridian, currently containing approximately 157.0 acres, more or less. The proposed Cell 6 is within the SE1/4 Section 19, Township 13 North, Range 10 East, Umiat Meridian.
The public is invited to comment on the proposed expanded designation of the material site and to provide any information related to the Mining and Reclamation Guidelines (Attachment B) that may assist in the development of project specific operating and reclamation requirements for the site. The Northern Regional Office (NRO) must receive, in writing, any comments, objections, or expressions of interest no later than 5:00 PM, on August 10, 2017. Written comments should be submitted to DNR, DMLW, NRO, at 3700 Airport Way, Fairbanks, Alaska 99709, or to Kimberley Maher at Kimberley.maher@alaska.gov. Kimberley Maher can also be contacted for further information at 907-451-2737. Additional copies of the decision and copies of the standard material sale contract may be obtained from the NRO. Interested parties have the right to comment during the public notice period and the commenters who are aggrieved by the final finding and decision will have the right to appeal it. It should be noted that in order to be able to appeal the final finding and decision, a person must provide written comments during this comment period. A copy of the final finding and decision will be sent to any person who comments during the comment period, and will include an explanation of the appeal process.
If public comment in response to this notice indicates the need for significant change in the decision, additional public notice will be given. If no significant change is required, the decision, including any minor changes, will be issued as the final decision.
All programs and services provided by the State of Alaska are available to all qualified individuals regardless of age, race, social and economic status or gender, or disability. The State of Alaska, Department of Natural Resources, complies with Title II of the Americans with Disabilities Act of 1990. The State is prepared to accommodate individuals with disabilities by providing auxiliary aids when requested. Individuals with audio impairments who wish to respond to this decision by telephone may call the DNR Public Information Center in Fairbanks between the hours of 10:00 a.m. and 5:00 p.m., M-F at TDD 907-451-2770.
The Division of Mining, Land and Water reserves the right to waive technical defects in this notice.