STATE OF ALASKA

DEPARTMENT OF NATURAL RESOURCES

DIVISION OF OIL AND GAS

STATE PIPELINE COORDINATOR’S SECTION

PUBLIC NOTICE

CROSS INLET PIPELINE EXTENSION PROJECT

PUBLIC HEARING FOR ROW LEASES

COMMISSIONER’S ANALYSIS AND PROPOSED DECISION

CROSS INLET – TYONEK ROW LEASE ADL 232962

PROPOSED MINERAL ORDER 1204

The Commissioner of the Department of Natural Resources (Commissioner) received two applications, dated Sept. 1, 2017, from Harvest Alaska, LLC (Harvest), a subsidiary of Hilcorp Alaska, LLC, for two pipeline right-of-way (ROW) leases under Alaska Statute 38.35 (ROW Leasing Act) for the Cross Inlet Pipeline Extension Project (Cross Inlet).  Public notice of the applications was conducted in accordance with AS 38.35.070 on Sept. 13, 2017. 

These applications propose to:

1. Convert one of the 10” CIGGS natural gas pipelines into an oil line and connect it to CIPL so that oil from the west side of Cook Inlet can be transported to the east side without the need for the Drift River terminal. The ROW lease would authorize the converted CIGGS line which is approx. 21 miles long. No temporary construction ROW is needed; proposed operation ROW would be 50 feet wide.  (ADL 232963 - CIGGS)

    

2. Build a new 10” pipeline from the Tyonek Platform to the Beluga Pipeline at Ladd Landing. Natural gas that was being transported by the CIGGS line plus the natural gas retrieved at the platform will be transported to the west side of the inlet via the new segment.  The ROW lease would authorize approximately 5.5 miles for the sub-sea portion of the pipeline. Proposed construction ROW would be 500 feet wide; proposed operation ROW would be 50 feet wide.  (ADL 232962 – Tyonek)

In accordance with Alaska Statute 38.35.080, the Commissioner has prepared an analysis of the Tyonek application that finds Harvest to be fit, willing, and able to construct and operate a natural gas pipeline in the manner required by Alaska Statute 38.35.100.  The public is invited to comment on the Commissioner’s Analysis and Proposed Decision for the Tyonek ROW lease.  The CIGGS analysis and decision is still under consideration.

DNR will hold a public hearing concerning the Tyonek decision and the CIGGS application on March 12^th in Nikiski at the Community Recreation Center.  The public is invited to attend an open house from 5:30-6:30 pm and the public hearing at 6:30 pm.  The hearing will end no later than 8:00 pm. The public may provide testimony during the hearing or submit written comments in person.

Additionally, DNR is proposing to close the lands within the proposed ROW leases, plus 100 feet on either side, to mineral entry through Mineral Order 1204 for the protection of the proposed pipelines.  The mineral order would take effect upon issuance of at least one of the ROW leases and end upon the expiration or termination of the lease(s).  If neither ROW lease is issued the MO will not be issued.  The order would potentially effect up to approximately 1,230 acers of tide and submerged lands within Cook Inlet. 

All documents concerning the above listed actions are available at the Division of Oil and Gas newsroom website: http://dog.dnr.alaska.gov/Home/Newsroom. The public may obtain hard copies of documents, at cost, from the State Pipeline Coordinator’s Section (SPCS) upon request (see contact information below).  Electronic copies of the documents are also available at the Kenai, Soldotna, Homer, Anchor Point, and Ninilchik libraries. 

All comments about any of these actions must be submitted in writing to the SPCS before 5:00 p.m. on Wednesday March 14, 2018. 

State Pipeline Coordinator’s Section

3651 Penland Parkway

Anchorage, AK 99508

Phone: (907) 269-6479 Fax: (907) 269-6880

Email: spco.records@alaska.gov

The State of Alaska, Department of Natural Resources complies with Title II of the Americans with Disabilities Act of 1990.  Individuals with disabilities who may need auxiliary aids, services or special modifications to participate in this review may call 269-8411 TTY/TDD. Please provide sufficient notice in order for the department to accommodate your needs.

The SPCS reserves the right to waive technical defects in this publication. 

/s/ Jason Walsh                                                                                     Publish Date: February 7, 2018

     State Pipeline Coordinator