Regulations

Title 11 Alaska Administrative Code - Chapter 80

Pipeline Right-of-Way Leasing
11 AAC 80.005. Applications for right-of-way leases

(a) Applications for right-of-way leases of state land for pipeline purposes under AS 38.35 shall be submitted to the commissioner of natural resources, through the office of the director of the division of lands, on Form DL-10-130.

(b) Form DL-10-130 when completed shall contain

(1) the name and address of the applicant or applicants;

(2) the date of the application;

(3) the points of origin and termination of the proposed pipeline, its total length and its length on uplands in which the state has an ownership interest; the application must be accompanied by a plat or map showing the proposed alignment of the centerline of the proposed pipeline right-of-way which indicates state upland ownership interest throughout the length of the proposed right-of-way;

(4) the location of the proposed pipeline right-of-way crossing the beds of streams or the beds of other bodies of water; the application must be accompanied by a plat or map showing the proposed alignment of the centerline of the proposed pipeline right-of-way where it crosses the beds of streams or the beds of other bodies of water;

(5) the width of the proposed temporary right-of-way required for construction of the pipeline and the width of the proposed right-of-way required for the operation of the completed pipeline for each segment of the pipeline on lands in which the state has an ownership interest and the size and location of any special sites, in addition to the proposed right-of-way, requested either on a temporary basis during the construction of the pipeline or for the operation of the completed pipeline;

(6) a project description describing (A) the general character of the proposed pipeline, including

(i) the nature of the substance to be transported;

(ii) the diameter of the pipe to be used;

(iii) the size, number and location of pumping, compressor, heating or refrigeration stations, if any;

(iv) the proposed transportation capacity of the pipeline; and

(v) the estimated life of the pipeline;

(B) the special design characteristics of the proposed pipeline, including

(i) the engineering and design characteristics of the pipe to be used;

(ii) the planned temperature of the substance to be transported and whether it will require refrigeration or heating;

(iii) if known at the time of making application, whether the pipeline is planned to be on or above the surface, buried, or both, the methods to be employed for burying any sub-surface portion and any bridges, trestles, other structures or beams for support of the proposed pipeline above the ground; if not known at the time of making application, that the pipeline will be buried or on the surface as dictated by soils and conditions encountered at the time of construction;

(iv) the proposed methods for crossing all streams and other bodies of water;

(v) a description of the method for any proposed grading or cut and fill; and

(vi) the techniques planned for spill or leak prevention, detection and containment;

(C) the planned construction, operation and maintenance support facilities, including

(i) access roads;

(ii) airstrips;

(iii) heliports;

(iv) float plane facilities;

(v) communication facilities;

(vi) equipment and material storage sites;

(vii) material sites; and

(viii) material disposal sites;

(D) the planned human support facilities, including

(i) field camps (size, number, approximate location and extent of duration);

(ii) housing for personnel operating and maintaining the pipeline; and

(iii) health care facilities;

(E) the estimated personnel requirements, including

(i) the approximate number of persons to be employed during the construction period; and

(ii) the approximate number of persons to be employed for the operation and maintenance of the pipeline;

(F) the proposed construction timetable including

(i) the estimated date of construction commencement;

(ii) the estimated time period for construction; and

(iii) the estimated date of the commencement of operation;

(G) estimated costs including

(i) the cost of materials;

(ii) the cost of construction and installation; and

(iii) the annual cost of maintenance and operation;

(7) proposed or feasible interconnections, terminal facilities and storage facilities, including

(A) the nature of any proposed connections with field gathering systems;

(B) the technical and economic feasibility of providing connections with other field gathering systems at intermediate points along the proposed pipeline or the technical and economic feasibility of connections or interconnections with other pipelines at intermediate points along the proposed pipeline;

(C) the location, area and capacity of tank farms or other storage facilities;

(D) the location and description of any terminal delivery facility; and

(E) the technical and economic feasibility of providing delivery facilities at intermediate points along the proposed pipeline;

(8) the plans of the applicant to reasonably prevent, detect and abate conditions which might arise from the construction, operation and maintenance, or termination of all or any part of the proposed pipeline which might cause or threaten to cause

(A) a hazard to the safety of workers or the public health or safety; or

(B) serious and irreparable harm or damage to public or private property or to vegetation or timber, fish or other wildlife populations, or their habitats or natural waters;

(9) the plans of the applicant for rehabilitation of natural resources damaged by the construction, operation and maintenance, or termination of the proposed pipeline;

(10) the plans and procedures of the applicant to protect the interests of the individuals living in the general areas of the right-of-way who rely on fish, wildlife and biotic resources of the area for subsistence purposes;

(11) the plans of the applicant for quality control and the procedures of the applicant for inspection and testing;

(12) the plans of the applicant to ensure that the applicant's contractors and subcontractors comply with the appropriate terms of a right-of-way lease;

(13) an annual financial statement and balance sheet for each applicant for the three fiscal years immediately preceding the date of the application prepared in accordance with generally accepted accounting and auditing principles and certified by a firm of reputable and independent certified public accountants;

(14) the probable financing requirement for the proposed pipeline;

(15) the proposed general contractor, if known at the time of the application; and

(16) the proposed operator of the pipeline, if known at the time of the application.

(c) Upon receipt of an application, the commissioner of natural resources has the authority to require any additional information the commissioner considers necessary or desirable to make the determinations required by AS 38.35.100 and 38.35.110.

(d) The application fee prescribed by 11 AAC 05.010 must accompany each application.

(e) The commissioner will, in his or her discretion, waive the application requirements of (b)(13) and (b)(14) of this section if the applicant applies for a conditional lease under AS 38.35.100 (b), and the conditional lease will be subject to the conditions specified in AS 38.35.100 (a)(5) and in AS 38.35.100 (d) - (f).

11 AAC 80.015. Annual rental payments

(a) Repealed 8/6/94.

(b) The first year's rental charge may, upon agreement of the commissioner of natural resources and the applicant, be based upon an informal appraisal, and the first year's rental charge shall be adjusted on the basis of the formal appraisal conducted before the end of the first year of the lease term.

11 AAC 80.025. Request for authorization to provide temporary or emergency service or for temporary or emergency abandonment, reduction or impairment of service

(a) Requests for authorization to provide temporary or emergency service or for temporary or emergency abandonment, reduction or impairment of service shall be submitted to the office of the director of the division of lands on Form DL-10-131.

(b) Form DL-10-131 when completed shall include

(1) the name and address of the lessee;

(2) the date of the request;

(3) the lease number of each right-of-way lease affected by the request;

(4) a description of the service rendered by the lessee prior to the request;

(5) a description of the proposed change; and

(6) a statement of the reasons for the proposed change.

(c) The commissioner of natural resources or his authorized representative will act on each completed request as soon as practicable.

11 AAC 80.035. Administrative determination for temporary or emergency service or
temporary or emergency abandonment, reduction or impairment of service

(a) The commissioner of natural resources, or his authorized representative, will disapprove a request for authorization for temporary or emergency rendering of service or a request for the temporary or emergency abandonment, reduction or impairment of service under AS 38.35.040 only after determining that

(1) the disapproval will promote state interests and goals and will have no adverse effect upon the interstate character of commercial activities which outweighs the public benefit; and

(2) the disapproval will not illegally interfere with an area of regulation pre-empted by federal statute or regulation.

(b) The commissioner of natural resources, or his authorized representative, will exercise the authority conferred upon him by AS 38.35.040 to require temporary or emergency rendering of service or temporary or emergency abandonment, reduction or impairment of service only after determining that

(1) the requirements will promote state interests and goals and will have no adverse effect upon the interstate character of commercial activities which outweighs the public benefit; and

(2) the requirement will not illegally interfere with an area of regulation pre-empted by federal statute or regulation.

(c) In making determinations required in subsections (a) and (b) of this section, the commissioner of natural resources or his authorized representative will investigate and consider all relevant facts and will make written findings which specify

(1) the state interests to be advanced by disapproving the request or by imposing the requirement and the degree to which the state interests will be advanced;

(2) the nature and degree of any adverse effect created on interstate commerce by disapproving the request or by imposing the requirement; and

(3) the nature and degree of the effect of disapproving the request or of imposing the requirement upon areas of federal regulation.

11 AAC 80.045. Field gathering lines exempt

Field gathering lines are exempt from the requirement of obtaining a right-of-way lease under AS 38.35.

11 AAC 80.055. Field gathering lines defined

"Field gathering lines" means pipe and associated facilities, including separators, test equipment, pumps, treaters and tanks, used in the transfer of gas or oil from a well or other facility used in the production of gas or oil to a point where there is either a custody transfer of the gas or oil or where the gas or oil enters a common carrier pipeline, whichever first occurs.

11 AAC 80.065. Applications for renewal

(a) A lessee who seeks to renew a lease of state land for pipeline right-of-way purposes must submit an application for renewal of the right-of-way lease no later than two years before lease expiration, unless otherwise provided in the right-of-way lease. Upon request by the lessee, the commissioner may waive this deadline.

(b) Upon receipt of an application for renewal, the commissioner will publish notice of it consistent with AS 38.35.070 .

11 AAC 80.075. Renewal determination

(a) Within a reasonable time after receipt of the lessee's application to renew a lease of state land for pipeline right-of-way purposes, the commissioner will make, in the exercise of reasoned discretion, a written determination whether the requirements of AS 38.35.110 have been satisfied.

(b) The commissioner will obtain and evaluate information that the commissioner considers reasonably necessary to make a determination under (a) of this section, including

(1) information from the lessee, as required; the commissioner may require the lessee to provide information that the commissioner considers relevant to determining compliance with AS 38.35.110 ; and

(2) independent analyses and reviews.

(c) The commissioner will base the written determination on the administrative record developed under (b) of this section, and will include a statement of the reasons and findings supporting the determination.

11 AAC 80.085. Notice and comment

(a) The commissioner will provide the written determination required by 11 AAC 80.075 to the lessee.

(b) Consistent with AS 38.35.070 , the commissioner will publish notice of the written determination and a statement regarding whether the commissioner intends to renew the right-of-way lease. The commissioner will

(1) make copies of the written determination and the lease available to the public for viewing;

(2) provide copies of the written determination, upon request, to the public at cost; and

(3) if the terms of the lease will change upon renewal, provide copies of the new proposed lease, upon request, to the public at cost.

(c) The commissioner will provide the public at least 30 days to submit written comments on the written determination, and may schedule one or more public hearings.

(d) If the commissioner revises the written determination following the close of the public comment period, the revised written determination will be published consistent with AS 38.35.070 . The written determination, or if revised, the revised written determination published by the commissioner, is the final administrative decision 30 days after the end of the public comment period, unless the commissioner, in writing, extends that 30 day period for a specified period of not more than 90 additional days to allow for a full consideration of comments received.