HomeMy WebLinkAboutMT Spur Geothermal WKSHP DNRDOG KathyMeans 08-27-2007Mt. Spurr Geothermal WorkshopAugust 27th - 28th, 2007Bruce Anders and Kathy MeansState of AlaskaDept. of Natural ResourcesDivision of Oil and GasLeasing and Permitting Sectionbruce.anders@alaska.gov (907) 269-8775kathy.means@alaska.gov (907) 269-8757
State Leasing and Permitting Processes for Geothermal ProjectsStatutory BackgroundAlaska State ConstitutionyArticle VIII, § 1. Statement of PolicyIt is the policy of the State to encourage the settlement of its land and the development of its resources by making them available for maximum use consistent with the public interest.yArticle VIII, § 2. General AuthorityThe legislature shall provide for the utilization, development, and conservation of all natural resources belonging to the State, including land and waters, for the maximum benefit of its people.
State Leasing and Permitting Processes for Geothermal ProjectsGeothermal Statutes and RegulationsyAS 38.05.181 Geothermal ResourcesyAS 38.05.965(6) Definitionsy11 AAC 84.700-790 Geothermal Leasingy11 AAC 84.810-950 Geothermal Unitizationy11 AAC 82.400-475 Competitive Bidding
State Leasing and Permitting Processes for Geothermal ProjectsGeothermal ProcessyStep 1 - Call for Applications{Commissioner designates a “proposed geothermal disposal area” and issues a “call for applications.” [11 AAC 84.710]{For Mt Spurr, Call for Applications went out April 9, 2007{Mt Spurr Call for Applications: April 9, 2007Ù15 tracts, 2560 acres max each tractÙDeadline for applications May 14, 2007ÙMost tracts received 2 or more applications
State Leasing and Permitting Processes for Geothermal Projects`Step 2: Commissioner Decides to Hold Competitive Lease Sale`For those tracts that receive more than one application, may proceed with a competitive lease process. [11 AAC 84.720(b)] `Geothermal lease sale is conducted under same process as oil and gas lease sales. [11 AAC 82.400, 11 AAC 84.725]Geothermal Process
State Leasing and Permitting Processes for Geothermal ProjectsyStep 3: Best Interest FindingyAuthority: AS 38.05.035(e): “An ADNR director may not dispose of state land, resources, property, or interests, unless the director first determines in a written finding that such action will serve the best interests of the state.”Geothermal Process
State Leasing and Permitting Processes for Geothermal ProjectsBest Interest FindingsyPurposes of BIF:{Public Process{Technical Analysis{Assesses Environmental Impact{Assesses Social Impact{Weighs Benefits vs. Costs{Mitigation Measures to Offset Impacts
State Leasing and Permitting Processes for Geothermal ProjectsBest Interest FindingsyStandard Elements of a BIF:{Property description{Habitat, fish & wildlife in the area{Current & projected use of proposed sale area{Socio-economic analysis{Reasonably foreseeable effects{Mitigation measures{Lessee advisories{Request for public comments
State Leasing and Permitting Processes for Geothermal ProjectsBest Interest FindingsyBIF or PBIF:{In a mineral lease sale…ÙDO&G is required to commence a 60-day comment period via a PBIF[AS 38.05.135(b) and .945(a)(1)A)]ÙCommissioner evaluates commentsÙCommissioner issues BIF{However, under geothermal regs [11 AAC 84.700], no such requirement to begin with a PBIF{Nonetheless, we will be issuing a PBIF –30 days{In the best interests of Alaskans that there be an opportunity for public comment{But what about ACMP?....
State Leasing and Permitting Processes for Geothermal ProjectsACMPyThe Alaska Coastal Management Program (ACMP) {The ACMP requires that projects in Alaska's coastal zone be reviewed and found consistent with the statewide standards of the ACMP. {A finding of consistency with the ACMP must be obtained before a lease sale in the CZ.{Single-agency review: DO&G publishes proposed consistency determination (“consistency analysis”), with a 30-day comment period
State Leasing and Permitting Processes for Geothermal ProjectsACMPyIn a normal oil and gas lease sale…{We would run the ACMP review process simultaneously with the BIF process{So will there be an ACMP review for Mt Spurr?...
State Leasing and Permitting Processes for Geothermal Projects
State Leasing and Permitting Processes for Geothermal ProjectsCoastal Zone Boundary
Mt. Spurr Geothermal Tracts
State Leasing and Permitting Processes for Geothermal ProjectsMount Spurr Proposed Geothermal Exploration AreayLocated on south flank of Mt. Spurr, just below Crater PeakyChakachamna L. to west, Chakachatna R. to south, CIRI-owned land to eastyNearest Community: Tyonek (40 miles east)yLand status: State-ownedyPSC 395 along Chakachatna River
State Leasing and Permitting Processes for Geothermal ProjectsCompetitive Sale ProcessySale Announcement – 45 day bidding periodySealed bids – public opening on Sale DateyCommissioner awards to highest qualified bidderyLease issuedy(Anticipated Mt. Spurr timeline shown a few slides later)
State Leasing and Permitting Processes for Geothermal ProjectsGeothermal Lease TermsyPrimary Term: 10 years (may be extended under specific criteria) [11 AAC 84.745]yRental: $3 per acre/yearyRoyalty: 10 – 15% of gross revenues derived from the production, sale or use of geothermal resourcesy20 years after production commences (and each 10 years thereafter), rental & royalty rates may be renegotiated by the CommissioneryBonding [11 AAC 84.790]{$10/acre or $10,000, whichever is greater; higher bond may be required yPlans/reports/data required
State Leasing and Permitting Processes for Geothermal ProjectsPermittingyPermits - State{DO&G –ÙGeophysical Exploration Permit - for conducting seismic surveys on state lands. ÙPlan of Operations [11 AAC 84.750] - maps, surface use plan, mitigation measure complianceÙPlan of Exploration [11 AAC 84.755] - for proposed exploration, including drilling wells. ÙPlan of Development [11 AAC 84.760]{Division of Mining Land & Water (DMLW)ÙLand use permit [11 AAC 96] – pads, airstrips, staging areasÙROW [AS 38.05.850] - roads, trails, ditches, field gathering lines, electric transmission linesÙApplication for water rights [11 AAC 05]{Office of Habitat Management & Permitting (OHMP)ÙFish habitat permits [AS 41.14.840] for activities within or across a stream used by fish (if OHMP determines that such use could represent an impediment to the efficient passage of fish) - culvert installation; water withdrawals; stream realignment/diversion; dams; low-water crossings; construction/placement/removal of material below ordinary high water. {Office of Project Management & Permitting (OPMP)ÙACMP consistency determination
State Leasing and Permitting Processes for Geothermal ProjectsPermitting
State Leasing and Permitting Processes for Geothermal ProjectsOther PermitsyPermits – other agencies{Alaska Department of Environmental Conservation (ADEC)ÙAir quality minor permitÙTemporary storage of drilling wasteÙOil discharge prevention and contingency planÙCertificate of financial responsibilityÙDomestic water and wastewater permits{Borough/Local Government (Kenai Peninsula Borough)ÙDevelopment permitsÙApproval for pad use{US Army Corps of Engineers (ACOE)ÙAny dredging of filling - 404 permit{Environmental Protection Agency (EPA)ÙNPDES{FAA ÙAirstrip notification
State Leasing and Permitting Processes for Geothermal ProjectsAnticipated TimelineyAgency review and analysis May-August, 2007{Finalize sale tracts, lease termsyPreliminary Best Interest Finding: mid-September, 2007{Proposed mitigation measures{30-day public comment periodyFinal Best Interest Finding: November, 2007{20-day reconsideration period{Effective 30 days after issuanceySale Announcement: December, 2007{Lease terms{Public noticeySale: January, 2008yLeases awarded February, 2008
State Leasing and Permitting Processes for Geothermal ProjectsGeothermal LeasingQuestions?kathy.means@alaska.gov (907) 269-8757