STATE OF ALASKA

DEPARTMENT OF NATURAL RESOURCES

DIVISION OF OIL AND GAS

STATE PIPELINE COORDINATOR’S SECTION

PUBLIC NOTICE

COMMISSIONER’S ANALYSIS AND PROPOSED DECISION

CROSS INLET PIPELINE EXTENSION PROJECT

RIGHT-OF-WAY LEASE FOR the CIGGS PIPELINE

ADL 232963

PROPOSED MINERAL ORDER 1204 A1

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 proposed 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.  On June 12, 2018, Harvest submitted a supplemental request to add up to 15 acres for the Low Pressure CIGGS pipeline near Nikiski to be included as part of this ROW lease. (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.  (ADL 232962 – Tyonek)

In accordance with Alaska Statute 38.35.080, the Commissioner has prepared an analysis of the CIGGS conversion application that finds Harvest to be fit, willing, and able to operate the converted 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 this application. 

Additionally, DNR is proposing to close the lands within the proposed section of the Low Pressure CIGGS ROW, plus 100 feet on either side, to mineral entry through Mineral Order 1204 for the protection of the proposed pipeline.  The mineral order would take effect upon issuance of the ROW lease and end upon the expiration or termination of the lease.  The order would potentially effect up to 66 acers of State-owned lands.

Documents concerning the proposed ROW lease and Mineral Order amendment are available online: 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 the proposed ROW lease must be submitted in writing to the SPCS before 5:00 p.m. on Wednesday September 5, 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.

DNR reserves the right to waive technical defects in this publication. 

/s/ State Pipeline Coordinator                                                                Publish Date: August 6, 2018

     Department of Natural Resources