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 energy needs. Exploration in the NPR-A 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 1999-2010 lease sales in the NPR-A. This exploration has resulted in several discoveries.
The BLM administers the federal oil and gas leasing program and issues permits for geophysical exploration, and operation permits to drill oil and gas wells, and authorizations to construct pads and install production facilities. Oil companies pay lease rentals and royalties on oil and gas production to the Office of Natural Resource Revenue (ONRR). The State of Alaska receives 90% of these bonuses, rentals and royalties from the oil and gas leases 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:
- Land Use Planning
- Leasing and Lease Sales
- Well Drilling Permitting and Development
- Operations and Production
- Plugging and Reclamation
Effective November 2, 2009, the BLM increased the Application for Permit to Drill (APD) processing fee to $6500.
Industry Submission of Notifications for Well Spud, Setting Casing, BOPE Testing, Meter/LACT Calibrations and Related Documentation