Federal Oil and Gas in Alaska
Oil and gas leasing on Alaska’s Federal lands onshore is concentrated in two regions: the Cook Inlet Region on both sides of the Cook Inlet and in the National Petroleum Reserve – Alaska (NPR-A). Exploration and production in the Cook Inlet Region began in the 1950’s and continues to contribute to Alaska's economy and Alaska’s energy needs. Exploration in the National Petroleum Reserve-Alaska has three distinct exploration periods; the first two were government-led efforts from 1945-1952 and 1975-1981 and resulted in several discoveries but no sustainable production. The third period of exploration has followed the 1999 - 2008 lease sales in the NPR-A. This exploration has resulted in several discoveries. First production of oil and gas from the NPR-A will likely occur in 2014.
The BLM administers the Federal oil and gas leasing program and issues permits for geophysical exploration, operation permits to drill oil and gas wells, and authorizations to construct pads and install production facilities. Oil companies pay lease bonuses and lease rentals to the BLM for the leasing of lands and pay royalties for oil and gas production. The State of Alaska receives 90% of these bonuses, rentals and royalties from the lands in the Cook Inlet Region and 50% of the bonuses, rentals, and royalties from the NPR-A.
There are five phases in the development of oil and gas on Federal lands:
For more information on the history of oil and gas discoveries and production within Alaska, read Crude Dreams by Jack Roderick, published in 1997.
NEW! Effective November 2, 2009, the BLM increased the Application for Permit to Drill (APD) processing fee to $6500.
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