One Company Bids In Sealed Bid Lease Sale

Only one company bid for a single exploration lease this morning at a state division of oil and gas sale. Bill Barron, division director said the exploration area is on state land on the Iniskin Peninsula area of southwest Cook Inlet near Lake Clark National Park and Preserve. He said the first exploration of the area started in 1902 near Oil Bay and continued through the 1950s.

Download Audio

Barron said the idea with this first ever sealed bid for competitive exploration was to encourage exploration outside of current state oil and gas lease sale areas.

“Far from existing infrastructure, with relatively low or unknown hydrocarbon potential and where there is a higher investment risk to the operator,” Barron said.

As he described the more than 168 thousand acre lease site, he opened the bid.

“Bidding company is Cook Inlet Energy LLC, minimum work commitment dollar amount, $1,501,000.”

Barron says the lease term is 4 years. The licensee will pay a one time fee of one dollar per acre.

Previous articleRFP Released For Alaska Class Day Boat Construction
Next articleChildren’s Home Featured at Bethel Cultural Center
Lori Townsend is the News Director for Alaska Public Media. She has worked in print and broadcast journalism for nearly 30 years. Radio brought her to Alaska, where she worked as a broadcast trainer for Native fellowship students at Koahnic Broadcasting before accepting a reporting/host position with APRN in 2003. APRN merged with Alaska Public Media a year later. Through her freelance work, she has produced news and feature stories nationally and internationally for Independent Native News, National Native News, NPR , Pacifica, Monitor Radio, Radio Netherlands and AIROS. Townsend is the recipient of numerous awards for her work from the Alaska Press Club, the Native American Journalists Association and a gold and a silver reel award from the National Federation of Community Broadcasters.