Before a pipeline ROW lease is issued by DNR, the SPCO conducts a review and decision process as required by AS 38.35, the Right-of-Way Leasing Act. Each potential pipeline lessee is evaluated to ensure that they meet the "fit, willing, and able" requirements outlined in AS 38.35.100. In FY14, the SPCO Special Projects Section was in various stages of the ROW leasing process with several potential applicants and applicants. See below for a brief description of theses pipeline projects.
The Alaska Industrial Development and Export Authority (AIDEA) applied for a natural gas pipeline on the North Slope on February 14, 2014. The application was deemed incomplete and the SPCO worked with the applicant to obtain the missing information prior to public noticing the application. The pipeline, ADL 420136, was proposed to connect to an LNG facility to be constructed on a workpad authorized under a DNR Northern Region Office public and charitable lease authorization, ADL 419992. The AIDEA project would have been located approximately one mile east of the Spectrum LNG facility (see Spectrum LNG section below) and pipeline right-of-way. On May 5, 2014, AIDEA contacted the SPCO to request instead a cancellation of its authorizations and a transfer of the Spectrum right-of-way lease, ADL 419409. AIDEA proposes to start construction on the pad for the LNG facility by late 2014.
On October 9, 2012, Spectrum Alaska, LLC, applied for an Alaska Statute (AS) 38.35 Right-of-Way Lease for the purpose of constructing and operating a natural gas pipeline and liquefied natural gas (LNG) facility on the North Slope. The proposed pipeline would transport natural gas from a connection just south of Flow Station 3 to a new pad adjacent to Spine Road where a LNG plant would be constructed. The entire proposed right-of-way, which would include the pad and LNG facility, is on state land.
The pipeline would be eight inches in diameter, for a length of 1,100 feet, with a design maximum throughput of approximately 50 million standard cubic feet (MMscf) per day. The plant, which would have an initial production capacity of approximately 100,000 gallons per day, would process the natural gas to LNG so it could be trucked to supply points.
The SPCO issued the Commissioner's Analysis and Preliminary Decision on July 31, 2013, and the Final Decision on October 11, 2013. The Right-of-Way Lease to Spectrum Alaska, LLC was signed on October 15, 2013 with an effective date of August 15, 2014.
On May 5, 2014, Spectrum Alaska, LLC and the Alaska Industrial Development and Export Authority (AIDEA) submitted a request to transfer the lease from Spectrum to AIDEA. The SPCO is processing the transfer request for the right-of-way lease. For further information on the current status of this project, see the section on AIDEA.
On October 11, 2013, the DNR Commissioner signed the Final Decision and determined that Polar LNG, LLC is fit, willing and able to construct, operate and maintain a natural gas pipeline and related LNG facility, as proposed in the application and in a manner that will be required by the present or future public interest.
Links to the Final Finding and Decision of the Commissioner and related documents can be found below.
Trans-Foreland Pipeline Co., LLC, proposes to construct an approximately 29-mile pipeline to transport oil across Cook Inlet. Approximately 22 submerged miles of the pipeline are on state lands and approximately four miles of buried pipeline will be located in the state-owned North Kenai Spur Highway right-of-way. The pipeline will extend from the Cook Inlet Energy Kustatan Production Facility to the Kenai Pipeline Company Tank Farm in Nikiski, both located in the Kenai Peninsula Borough.
Links for the public notice, amended right-of-way application, and project description can be found below.
Donlin Gold, LLC, submitted a pipeline right-of-way lease application dated April 9, 2014, in accordance with the Alaska Right-of-Way Leasing Act, AS 38.35.050, for the proposed contract carrier Donlin Gold Natural Gas Pipeline Project.
The proposed Donlin Gold Natural Gas Pipeline Project would transport natural gas from the Beluga Natural Gas Pipeline system to the Donlin Gold mine. The 14-inch diameter pipeline would originate 7.7 miles north of the Beluga Power Plant and terminate at the Donlin Gold mine site, approximately 10 miles north of Crooked Creek Village. The proposed 315-mile-long pipeline will be located across a variety of lands. The approximate length that will be located on land owned by the State of Alaska is 207 miles.
In 2013, South Central LNG completed a summer field season to explore a proposed pipeline route and LNG facility to ship Alaska's North Slope gas to Asian and other world markets. In fall 2013, the project was re-named the Alaska LNG (AK LNG) Project.
AKLNG is an integrated team of BP, ConocoPhillips, ExxonMobil, TransCanada and the State of Alaska. In spring 2014 AK LNG held several meetings with state and federal agencies to present possible pipeline routes and discuss required permits and procedures. Among these meetings were consultations with the Federal Energy Regulatory Commission (FERC), who will be the lead federal agency in a National Environmental Policy Act (NEPA) environmental review of the project. Legislative actions in the 2014 legislative session approved the partnership of the State with the industry corporations; the designated state agency on the project is the Alaska Gasline Development Corporation.
The project is still in conceptual stages. Click here to be directed to the project website for more information.
ALASKA LNG Permitting
SPCO issued Alaska LNG three land use permits for their 2014 summer field season, for meteorological ocean studies in the Cook Inlet and hydrological studies on the North Slope. Other permits associated with summer field activities include authorizations with the Alaska Department of Fish and Game, and the DNR Division of Parks and Outdoor Recreation and Office of History and Archaeology.
The SPCO issued a right-of-way lease to the Alaska Gasline Development Corporation for the ASAP pipeline project on July 25, 2011. Click here for more information on the ASAP project.