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HomeMy WebLinkAboutIndustrial Roads Program 2003coe DOT&PF Statewide Planning D Mike McKinnon,Senior Planner IvISion February 24,2003 Table of Contents Overview Project Description Sheets Capital Budget Industrial Roads Team North Slope Ice Road Season Chart Attachment 1-Northwest Alaska Transportation Plan March Status Report 10 12 Overview Introduction This report outlines the Department of Transportation and Public Facilities (DOT&PF)Industrial Roads Program that is part of the department's response to Governor Murkowski's goal of advancing the economy through "Roads to Resources”.Projects selected for the program were drawn from many sources including discussions with resource owners and operators,DOT&PF area plans from around the state,coordination with the Department of Natural Resources, and other research. Selection Considerations The five projects outlined in this report are the first generation of the department's resource road efforts.Other important projects will be pursued in subsequent work in a prioritized manner.The most influential factors for selecting the first five projects were: e Major elements of the resource development are underway e NEPA documents for the resource extraction are complete or are in progress e Resources are large-scale and associated markets are favorable e Owners/operators are interested in state participation in access development Initial Industrial Roads Program Projects 1.Colville River Bridge North Slope Oilfield Connector Roads Glacier Creek Road Crooked Creek Road Yukon River Port and Road Networkawn Project Descriptions and Program Capital Budget The remainder of the report contains fact sheets and other background material on each project.It also includes a capital budget,which is a first cut outline of the funds needed to keep projects moving through the design and construction processes as rapidly as possible.The budget will be adjusted over the early part of the program as scopes,design processes and construction schedules mature. Program Staff and Organization A dedicated team of DOT&PF staff,reporting to Commissioner Barton,is being assigned to work on the Industrial Roads Program.The team consists of senior engineers,planners and legal staff;they will work with liaisons in the other state agencies to enhance project development.Liaison positions are also being set up with federal agencies,resource owners/operators,the Denali Commission, and affected local governments.The single point of contact strategy will be employed to expedite project coordination and review efforts. Colville River Bridge Description/Purpose This project is an industrial grade bridge across the Colville River.It is the first of three stages of work needed to provide all season access to oilfield developments in and near NPR-A.As a Stage |project,the bridge will significantly extend winter drilling and construction seasons.When combined with the Stage II and Ill road projects the bridge will provide all-season access to Northeast NPR-A.The combined project also provides important all-season access to Deadhorse Airport and the Dalton Highway for the village of Nuiqsut. Status Reconnaissance engineering is currently underway in the Northwest Alaska Transportation Plan.The draft reconnaissance engineering report is due mid- March 2003.The final report is due October 2003. Funding/Schedule Need $8-12 million for design engineering.If these funds are available by October 2003,the design can be ready by July 2005. Construction will require $90 million and could be complete by end of 2006. Support for Project Strong community and industry support. Issues 1.Industrial Use Road designation.Legal counsel is investigating ways to develop a permanent Industrial Use Road designation.A report from the Northwest Alaska Transportation Plan consultant,CH2M HILL,is due mid- March. 2.Accelerate Design and Construction schedule.The team will look at state and federal statutes and regulations from the Dalton Highway,ANILCA Title Xl,Transportation and other projects to assess project development streamlining opportunities. 3.Design-Build Models.The team will evaluate design/build and design/build/finance models to see if any of these approaches will accelerate design and construction. North Slope Oilfield Connector Roads Description/Purpose The connector roads are stages |and Ill of an all-season route to oil/gas exploration and production in and near NPR-A.Stage Il is the Colville River Bridge.The two-stage,47-mile road would connect the oilfield developments on the west of the Colville River to the existing road system (Spine Road)in the Kuparuk field area.The new roads will eliminate the need for mainline ice roads. The shrinking ice road season (204 days to 103 days in last 30 years),and reductions in available water supplies for ice road construction are making mainline ice roads impractical. Stage |is a 14 to 17-mile road from the Spine Road west to the Colville River Bridge.This road is needed as a first stage of construction to provide all-season access to the bridge site for bridge construction activities. Stage III (not shown on the map)is a 30-mile road from the Nuiqsut/Alpine area west into NPR-A to access new exploration and production areas. Status a, Reconnaissance engineering is currently underway in the Northwest Alaska Transportation Plan.A draft report is due mid-March 2003.The final report is due October 2003. Stage III has been incorporated into the Northwest Alaska Plan for further development. Funding/Schedule Need $4 million for Stages |and Ill design engineering by October 2003 to have the design,including environmental documents complete by December 2004. Need $17-20 million for Stage |construction and $25-40 million for Stage III construction.It may be possible to complete Stage II by December 2006.Stage Ill,which will likely be subject to longer BLM processes,may not be complete until late 2007. Support for Project Strong support for project from Nuiqsut and the oil/gas industry. Issues See associated Colville River Bridge project on proceeding page. Glacier Creek Road Description/Purpose This is a new 3-mile segment of Glacier Creek Road,which begins near MP 7.5 on the Nome-Teller Road.The new road replaces 8 miles of difficult hillside alignment that has severe grades and stream washouts that make road maintenance impractical.The project will allow access to mining developments in the area,including the 1-2 million-ounce prospect at Rock Creek. Status DOT&PF considered this project for federal-aid program funds under the department's Community Roads Program.However,it did not rank well in the STIP's community-based ranking criteria.Reconnaissance engineering for the project will be completed as part of the Northwest Alaska Transportation Plan. Funding/Schedule $3.5 million is needed for this project.If funding is received in October 2003, design could be complete by late 2004.Construction could be complete by the end of 2005. Support for Project Strong support from area communities and Regional/Village Native Corporations. Issues No significant issues associated with this project.The new section is along a practical road building alignment. Crooked Creek Road Description/Purpose This project is a 14-mile road from the village of Crooked Creek on the Kuskokwim River to Donlin Creek Gold Mine.It is the first generation of road development needed for the mine.The road will allow the mine operators to use the barge port at Crooked Creek to transfer fuel and freight to the mine during its exploration phase. Status DOT&PF may transfer the project to AIDEA.If that is the case,DOT&PF will coordinate with AIDEA staff to the support project as needed. Funding/Schedule $4.0 million in State General Obligation Bonds will be available in April 2003. Those funds will allow AIDEA to complete design early 2005.It is expected Design will cost about $1-1.5 million.The remaining funds will be available for the project's construction phase. Need $10-15 million for construction.If funds are available by early 2005, construction can be complete by the end of the construction season in 2006. Support for Project Strong support for the project from area communities and Regional/Village Native Corporations. Issues 1.Right of Way.Project needs to avoid native allotments along the route. NovaGold/Placer Dome and Calista have committed to work with AIDEA to ensure land status issues are resolved early in the design phase. 2.Industrial Use Road designation.Legal counsel is investigating ways to develop a permanent Industrial Use Road designation.A report from CH2MHILLisduemid-March. Yukon River Port and Road Network Description/Purpose This project builds an ocean-going barge port on the Yukon River opposite the village of Holy Cross.The port will allow transfer of freight and 30-40 million gallons of fuel needed annually for Donlin Creek Mine production.Development of this port will help make it economically feasible for other potential gold mines in the area to go to production. The Stage |road will be a 60-mile route east from the port site to the Donlin Creek Mine.Stage II will be a 100-mile road north off the Port-Donlin Creek Road to access a limestone deposit near McGrath that is a practical source of limestone for area gold mine operations.Stage IV will connect Ruby to the road network. A major power plant will be located in the region at either the port site or the mine site.The port and road network will allow some combination of transmission lines and fuel pipelines for mine-site power generation.Providing large-scale power generation capability will significantly assist the development of other mines in the region. Status Reconnaissance engineering is underway in the Northwest Alaska. Transportation Plan.A draft report is due March 2003.The final is due October 2003. Funding/Schedule Need $9 million over two funding periods for design of the port and the road network.If funds become available by October 2003,the design can be complete by December 2005. Need $4-6 million for port construction and $25-40 million for the Stage |road. Need $60-80 million for the Stage II road and $25-30 million for the 40-mile Stage Ill road. Stage |construction can be complete by October 2007 and Stage II could be complete by early 2010.This schedule is compatible with current mine development schedules. Support for Project Strong support for the project throughout the region.The fuel depot will lower fuel costs for area villages and the mine(s)will provide good jobs for the region. Issue No significant adverse issues.Land status is compatible with infrastructure development and terrain has good road-building characteristics. Capital Budget Funding sources for the projects are not fully defined.Joint funding packages for most of the projects need to be developed.They will generally involve private funds,public bonds and/or funding from state and federal sources. The Northwest Alaska Transportation Plan is building funding packages for the North Slope access projects and the Yukon River Port and Road Network project.It also will include a new funding package for the Glacier Creek Road; this project may be suitable for state General Fund or federal Denali Commission funding.Draft packages will be available in March.Final packages are scheduled for July 2003. The Crooked Creek Road project has $4 million for design.It will likely be constructed with AIDEA funds although public fund elements may be included. Project (funds in millions)2003 2004 2005 2006 2007 2008 2009 Colville River Bridge (CRB)$10 $5 $35 $40 NPR-A Access Roads Stage I-17 miles to CRB $2 $10 $10 Stage 11-30 miles to NPR-A $2 $5 $15 $20 Glacier Creek Mine Road $1 $4 Crooked Creek Road $7 $10 Yukon River Port &Roads $5 $4 $10 $20 $30 $40 '$20 Total Funding per year $20 $35 $80 $80 $30 $40 $20 Industrial Roads Team Introduction To develop industrial roads,a DOT&PF team of senior planners,engineers,legal staff and support staff will focus exclusively on industrial road projects.The team will pursue funding packages,expedite project development processes and manage consultant engineering contracts,all with the goal of moving projects through design and into construction as rapidly as possible. Staff Statewide Planning Division Senior Planner will lead funding and project coordination efforts with help from division staff.The Northern Region Director and three or four Northern Region senior engineers will manage design contracts for the industrial road projects.Bridge Design staff is expected to play an ongoing review role for the Colville River Bridge. DOT&PF Commissioner Mike Barton N R Director Ralph Swarthout Region Leader Patty Miller Project Engrs. Ethan Birkholz Steve Henry Cindi Little John Alvis Senior Planner Mike McKinnon Capital Budget Trans.Planner Admin.Assist Bridge Design Bridge Engineer Liaisons DNR DEC DOL DCED AIDEA Local Gov'ts Fed.Agencies Denali Comm. Governor Office DOL attorneys will be needed to advise project managers,and liaisons at DNR and DEC will help with environmental and permitting issues.A DED liaison will help with funding packages and other tasks.Coordination with Corps of Engineers,local governments and resource owners/operators will also require single point of contact liaison positions.The AIDEA design manager for the 10 Crooked Creek project will coordinate with DOT&PF staff as funding packages begin to develop for that project.AIDEA will also need to coordinate on design parameters and other features of the Crooked Creek Road so it is compatible with the Yukon River Port and Road Network project. The team would meet by video-teleconference twice a month to report to the Commissioner on project progress. Funding Staff work on this first generation of program projects will be funded through the ongoing Northwest Alaska Transportation Plan.The reconnaissance engineering effort needed to complete the plan and prepare the projects for design will continue to October 2003. It is expected that project-level funding for Design efforts will be in place through State and federal road programs by October 2003. 11 wuUlauVvInwaysWinter Work Season Length 250 200 4 Poo_aaa _Z _ re a _,|_-_aT Z 150 HT}EE]-P EH ET ET EE ET HH HE ET A HE =Benne -a Tt =-__, 100 HI EH ET HT HH HH HH HH HH HH HH HH HH HH H HH HH HH HA HWW ee SHE HHH HAHAHAHAHAHAHHHHHHHHHHHE 0 DAN AG Am ab 4D AD MW AD AD D od oF oD A co &O NN VD &o&©©A ©CO O A BDPPDPPPDPPPPPPesPPPPPPPPPPPPPPPPGFGPgh Calendar Year Appendix 1.North Slope Ice Road Season Duration 1970-2002 12