NOTICE OF SALE
BEAUFORT SEA AREAWIDE 2016W
NORTH SLOPE AREAWIDE 2016W
NORTH SLOPE FOOTHILLS AREAWIDE 2016
COMPETITIVE OIL AND GAS LEASE SALES
The Alaska Department of Natural Resources (DNR), Division of Oil and Gas (DO&G), is giving notice pursuant to AS 38.05.945(a)(4) that it is offering State lands for competitive oil and gas leasing in the Beaufort Sea Areawide 2016W (BSA 2016W), the North Slope Areawide 2016W (NSA 2016W), and the North Slope Foothills Areawide 2016 (FHA 2016) Competitive Oil and Gas Lease Sales. This notice is available on the State of Alaska Online Public Notice System at http://aws.state.ak.us/OnlinePublicNotices/.
In-person bid submission – Monday, December 12, 2016 from 9:00 a.m. to 4:00 p.m. at Suite 800 of the Atwood Building, 550 West 7th Avenue, Anchorage, Alaska or by mail to DNR Division of Oil & Gas, Attn: Lease Sale, 550 W 7th Avenue, Suite 1100, Anchorage, Alaska 99501-3563.
Public bid opening – Wednesday, December 14, 2016 from 9:00 a.m. until all bids are read at Suites 102 and 104 of the Atwood Building, 550 West 7th Avenue, Anchorage, Alaska.
Areawide Lease Sale Locations
The Beaufort Sea Areawide is divided into 591 tracts ranging in size from 530 to 5,760 acres. These tracts are within the North Slope Borough and consist of state-owned tide and submerged lands in the Beaufort Sea between the Canadian border and Point Barrow. The northern boundary of the Areawide is along the federal Alaska Outer Continental Shelf. The southern fringe of the sale area includes some state-owned uplands lying between the National Petroleum Reserve – Alaska (NPR-A) and the Arctic National Wildlife Refuge (ANWR). Some tracts are jointly owned by the State of Alaska and Arctic Slope Regional Corporation (ASRC).
The North Slope Areawide is divided into 3,137 tracts, ranging in size from 640 to 5,760 acres. Tracts in this sale area are within the North Slope Borough between the Canning River and ANWR on the east and the Colville River and NPR-A on the west. The southern boundary of the sale area is the Umiat Meridian baseline. The Areawide is divided into North and South Sub-regions. Some tracts are jointly owned by the State of Alaska and ASRC.
The North Slope Foothills Areawide is divided into 1,347 tracts ranging in size from 480 to 5,760 acres. These tracts are located between ANWR and NPR-A. The northern boundary of the sale area is the Umiat Meridian baseline and the southern boundary is the Gates of the Arctic National Park and Preserve.
Sale Documents
Complete details regarding these lease sales are on the DO&G website at http://dog.dnr.alaska.gov/Leasing/SaleDocuments.htm. Sale documents include this Notice of Sale, Sale Announcement and Instructions to Bidders, Attachment A with estimated acreages and deferred tracts, lease forms, mitigation measures, Bid Form for DNR Areawide Oil & Gas Lease Sale, and tract map. These documents are also available in the following locations:
Nuiqsut Trapper School Library, Nunamiut School Library in Anaktuvuk Pass, Harold Kaveolook School Library in Kaktovik, Meade River School Library in Atqasuk, Tuzzy Consortium Library in Barrow, Alaska Resource Library & Information Services and Z.J. Loussac Public Library in Anchorage.
If you are unable to access this information, call the Asset Management Section at (907) 269-8800 or email dog.leasing@alaska.gov. You may subscribe to lease sale email announcements at http://list.state.ak.us/mailman/listinfo/DOG.Leasing.
Sale Terms and Conditions
| Beaufort Sea Areawide2016W |
| Lease Sale Tracts | Bid Variable | Minimum Bid | Royalty Rate | PrimaryLease Term | Annual Rental Rate | Lease Form |
| State/ASRC Tracts | DEFERRED FROM SALE |
| BSA2016W Tracts | Cash Bonus | $25.00 per acre | 16.66667% Fixed | 8Years* | Years 1 – 6: $10.00 per acre Year 7: $100.00 per acre** Year 8: $250.00 per acre** | DOG201509W |
| *Under provisions of AS38.05.180(m), state oil and gas leases may receive a one-time lease extension under certain conditions, upon request. |
| **Annual rental will be as listed above; except that beginning in the year after the year in which sustained production commences on the lease or the state otherwise determines in its sole discretion, upon request, that the lessee has exercised reasonable diligence in exploring and developing the lease, the annual rental will be $10.00 per acre or fraction of an acre. In evaluating a request to decrease rental based on the exercise of reasonable diligence, the state will consider the funds expended by the lessee to explore and develop the lease and the types of work completed by or on behalf of the lessee on this lease. |
| North Slope Areawide2016W |
| Lease Sale Tracts | Bid Variable | Minimum Bid | Royalty Rate | PrimaryLease Term | Annual Rental Rate | Lease Form |
| State/ASRC Tracts | DEFERRED FROM SALE |
| North Sub-Region Tracts | Cash Bonus | $25.00 per acre | 16.66667% Fixed | 8Years* | Years 1 – 6: $10.00 per acre Year 7: $100.00 per acre** Year 8: $250.00 per acre** | DOG201509W |
| South Sub-Region Tracts | Cash Bonus | $25.00 per acre | 12.5% Fixed | 8Years* | Years 1 – 6: $10.00 per acre Year 7: $100.00 per acre** Year 8: $250.00 per acre** | DOG201509W |
| *Under provisions of AS38.05.180(m), state oil and gas leases may receive a one-time lease extension under certain conditions, upon request. |
| **Annual rental will be as listed above; except that beginning in the year after the year in which sustained production commences on the lease or the state otherwise determines in its sole discretion, upon request, that the lessee has exercised reasonable diligence in exploring and developing the lease, the annual rental will be $10.00 per acre or fraction of an acre. In evaluating a request to decrease rental based on the exercise of reasonable diligence, the state will consider the funds expended by the lessee to explore and develop the lease and the types of work completed by or on behalf of the lessee on this lease. |
| North Slope Foothills Areawide2016 |
| Lease Sale Tracts | Bid Variable | Minimum Bid | Royalty Rate | PrimaryLease Term | Annual Rental Rate | Lease Form |
| FHA2016 Tracts | Cash Bonus | $10.00 per acre | 12.5% Fixed | 10 Years | Year 1: $1.00 per acre Year 2: $1.50 per acre Year 3: $2.00 per acre Year 4: $2.50 per acre Years 5+: $3.00/acre | DOG201503 |
Tracts Deferred or Deleted from Sale
Deferred or deleted lease sale tracts will not be offered for lease in this sale, but may be included in future lease sales. DO&G reserves the right to delete or defer any additional acreage or tracts from the sale at any time prior to issuance of the lease. Currently deferred or deleted lease sale tracts are listed on Attachment A of the Sale Announcement and Instructions to Bidders. Check http://dog.dnr.alaska.gov/Leasing/SaleDocuments.htm for updated Attachment A documents.
Best Interest Findings to Offer Oil and Gas Leases in Areawide Sales
These lease sales are being held under AS 38.05.035(e) and AS 38.05.180. Under these statutes, land that is subject to a best interest finding issued within the previous 10 years may be offered for oil and gas leasing. The finding sets forth the facts, policies, and applicable laws and regulations upon which the Director based his determination that oil and gas lease sales in an Areawide sale will best serve the interests of the State. Every year the Director requests substantial new information that may justify a supplement to the finding and issues a response to information received. Best interest finding documents and supplements for these sales are available online at http://dog.dnr.alaska.gov/Leasing/BestInterestFindings.htm. If you are unable to access this information, call the Asset Management Section at (907) 269-8800 or email dog.bif@alaska.gov.
Americans with Disabilities Act Compliance
The State of Alaska, DNR, DO&G complies with Title I of the Americans with Disabilities Act 1990. This publication will be made available in alternative communication formats upon request. Please call (907) 269-8800 or email dog.leasing@alaska.gov to make any necessary arrangements.
James B. Beckham
Acting Director
Division of Oil and Gas