Point Thomson

pt thomson routemap
Proposed Point Thomson route map

DNR Issues ROW Lease for Pt. Thomson Export Pipeline

On October 31, 2012, the DNR Commissioner signed the Final Decision and determined that it is in the best interest of the State of Alaska to award a Right-of-Way Lease to Point Thomson Export Pipeline, LLC, for the Point Thomson Export Pipeline.

Links to the Final Finding and Decision of the Commissioner and the Right-of-Way Lease for the Point Thomson Export Pipeline can be found below.

Final Finding and Decision of the Commissioner

Right-of-Way Lease for Point Thomson Export Pipeline

Public Comments

Point Thomson Export Pipeline Commissioner's Analysis and Proposed Decision

The Commissioner of the Department of Natural Resources (DNR) received an application, dated August 4, 2010, from PTE Pipeline LLC for a pipeline Right-of-Way Lease under Alaska Statute 38.35 (Right-of-Way Leasing Act) for the proposed Point Thomson Export Pipeline. The public notice of the application was published in accordance with AS 38.35.070 on August 19, 2010. In accordance with AS 38.35.080 the Commissioner has prepared an analysis of the PTE Pipeline LLC application.

Associated with the issuance of the Right-of-Way Lease, and justified within the Commissioner's Analysis and Proposed Decision, the State Pipeline Coordinator's Office has requested a Mineral Order (MO 1126) closing the subsurface estate of the proposed operational right-of-way to mineral entry and location in accordance with AS 38.05.185.

The public is invited to comment on the MO 1126, the Draft Right-of-Way Lease and the Commissioner's Analysis and Proposed Decision, which finds PTE Pipeline LLC to be fit, willing and able to construct and operate a pipeline in a manner required by present and future public interest as required by AS 38.35.100.

Public Notice of Commissioner's Analysis and Proposed Decision: PTE Pipeline Right-of-Way Draft Lease, Mineral Order No. 1126 and Public Hearings

Point Thomson Export Pipeline Commissioner's Analysis and Proposed Decision

Attachment A: Draft Right-of-Way Lease and Stipulations

Attachment B: Point Thomson Design Basis

Attachment C: Notice of Application

Attachment D: Mineral Order

Attachment E: Third Party Interests

Attachment F: Acronyms and Abbreviations

Attachment G: References


Background Information

In October 2009, ExxonMobil proposed a project to further develop the Point Thomson oil and gas field. Point Thomson, which is located approximately 60 miles east of Deadhorse on the Beaufort Sea coast, and 60 miles west of Kaktovik, just west of the Arctic National Wildlife Refuge, holds an estimated 8 trillion cubic feet of natural gas and 200 million barrels of condensates. This project requires authorization from the USACE under Section 10 of the Rivers and Harbors Act of 1899 and Section 404 of the Clean Water Act. The project would recover liquid condensate from natural gas, and extract oil. The residual gas would be injected back into the reservoir, conserving it for future use. This project would develop onshore and offshore portions of the Thomson Sand Reservoir using long-reach drilling technology from onshore pads. Extracted condensate and oil would be shipped via a 22-mile export pipeline to connect to the Trans-Alaska Pipeline System to market.

The USACE has been designated as the lead Federal Agency on the main Point Thomson project with the State DNR acting as one of the cooperating agencies. The SPCO has been supporting DNR's coordinate efforts during the scoping portion of the Draft Environmental Impact Statement (DEIS).

The SPCO has also been working with ExxonMobil during its preparation to submit an application for an AS 38.35 ROW Lease for the development, construction and operation of an export pipeline. This pipeline is a critical part of the Point Thomson project and ExxonMobil has worked closely with the SPCO to ensure the submission of a complete application.

To date, the SPCO has participated in the five DEIS scoping meetings held in January of 2010. These scoping meetings included the entire Point Thomson Project Team from ExxonMobil and its consultants as well as representatives from each of the cooperating agencies. The scoping meetings were held in Kaktovik, Fairbanks, Nuiqsut, Barrow and Anchorage. While the meetings covered the project in its entirety, and was specifically for the purposes of the DEIS, they provided a great opportunity for the SPCO to hear from communities about any issues that may concern the export pipeline.

In early March of 2010 ExxonMobil Pipeline Company asked the SPCO to participate in a preapplication meeting to discuss the details of the AS 38.35 Application for Pipeline ROW Lease. At the meeting, specifics about the pipeline ROW, the design and the construction were discussed. The meeting was productive and the SPCO was very satisfied with the effort on ExxonMobil's part to provide a thorough and complete application and to keep communication with this office open throughout the process. At this time SPCO continues to receive project updates from ExxonMobil regarding the DEIS. The USACE timeline for the Point Thomson DEIS process extends past the current projection for SPCO's notice, analysis and review for the AS 38.35 lease.

The Point Thomson DEIS was published in the Federal Register on November 18, 2011.  That publication date started a 45-day public comment period.  All comments must be submitted to the USACE and received by close of business January 03, 2012.

After the public comment period ends the USACE will prepare a Final EIS in response to comments received.  After the Final EIS is published in the Federal Register the USACE will make a determination on the permit.  This determination is called a Record of Decision and will describe in detail the USACE decision.