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Preliminary Best Interest Finding and Determination for a proposed sale of North Slope Royalty Oil to Marathon Petroleum Supply and Trading Company LLC

The Division of Oil and Gas is publishing notice under 11 AAC 03.020 and is seeking comments regarding the Commissioner’s “Preliminary Best Interest Finding and Determination for the Sale of Alaska North Slope Royalty Oil to Marathon Petroleum Supply and Trading Company LLC.” The Department of Natural Resources proposes to sell approximately 10,000 to 15,000 barrels per day of the State’s North Slope royalty in-kind oil to Marathon Petroleum Supply and Trading Company LLC for processing at its refinery at Nikiski, in the Kenai Peninsula Borough. The deadline for comments on this Preliminary Best Interest Finding and Determination is 4:30 PM Alaska Time, Friday, April 11, 2025.

The Commissioner of the Department of Natural Resources proposes to sell royalty oil from the State oil and gas leases on the North Slope under a three-year contract. Deliveries of royalty oil under this proposed contract will have an estimated starting date of August 1, 2025 and continue until July 31, 2028. The price provision in the proposed contract is based on a formula that relies on accepted industry price reporting services and resembles the formulas used to calculate value of royalty oil paid to the State by the North Slope producers. The Commissioner’s Preliminary Best Interest Finding and Determination includes a draft of the sales contract, provides an analysis of its specific provisions, and how it will serve the best interests of the state under the criteria set out in AS 38.05.183 and AS 38.06.070.

The public can access this document at: https://dog.dnr.alaska.gov/Library/

These findings are preliminary; and final conclusions have not been reached. Comments received from the public and from the Royalty Board will be used to determine whether the proposed sales contract is in the state’s best interest. If the Commissioner determines that the proposed sale is in the state’s best interest and if the Royalty Board recommends that the sale go forward, a bill will be introduced in the legislature to approve the contract.

Comments should be emailed to: sean.clifton@alaska.gov

Or mailed to:
Division of Oil and Gas
C/O RIK Public Comments
550 W. 7th Avenue, Suite 1100
Anchorage, Alaska 99501-3563
Phone: (907) 269-8800

Attachments, History, Details

Revision History

Created 3/4/2025 2:19:43 PM by scclifton
Modified 3/4/2025 2:20:24 PM by scclifton
Modified 3/7/2025 3:29:26 PM by scclifton
Modified 3/25/2025 5:13:53 PM by scclifton

Details

Department: Natural Resources
Category: Public Notices
Sub-Category: Oil & Gas
Location(s): Statewide
Project/Regulation #:
 
Publish Date: 3/4/2025
Archive Date: 4/11/2025
 
Events/Deadlines: