Thanks for that information.
Release Date: 10/22/15
Contacts: Mitch Snow , 202-912-7368
BLM Approves First Federal Production Well in the National Petroleum Reserve
The Greater Mooses Tooth Project will be the first onshore production from federally-managed land in the Arctic
ANCHORAGE – The Bureau of Land Management (BLM) today approved a drilling permit and offered a right-of-way grant (ROW) for the proposed Greater Mooses Tooth Unit oil and gas development project (GMT1), opening the way for the first production of oil and gas from federal land in the National Petroleum Reserve in Alaska (NPR-A).
“Today the BLM achieved an important milestone for realizing the promise of the NPR-A Integrated Activity Plan,” said BLM Director Neil Kornze. “I’m proud of this collaborative effort to ensure thoughtful, balanced, and responsible development in the NPR-A that will provide additional economic security for Alaskans as well as a new source of oil for the Trans-Alaska Pipeline System.”
Nearly the size of Indiana, the NPR-A, located on Alaska’s North Slope, is the largest single block of federally managed land in the United States. By law, the BLM administers the NPR-A for the purposes of oil and gas development along with protection of areas containing significant subsistence, recreational, fish and wildlife or historical or scenic value. The Naval Petroleum Reserves Production Act of 1976 as amended, which transferred the NPR-A from the Navy to the Department of the Interior, mandates protection of these special areas while also providing for development of oil and gas resources.
The GMT1 project, proposed by ConocoPhillips, Alaska, Inc., (CPAI) includes construction of an 11.8-acre drilling pad in the northern portion of the 23-million acre NPR-A. Along with above-ground elevated pipelines and an electric power line, the GMT1 project will provide access to both federal and Arctic Slope Regional Corporation (ASRC) oil and gas resources. The ASRC was established pursuant to the Alaska Native Claims Settlement Act of 1971. This decision enables ASRC to reasonably develop the petroleum resources from corporation-owned lands.
“We continue to work extensively with ConocoPhillips, Alaska Inc. in developing a responsible path forward in the development of oil and gas resources in the NPR-A,” said BLM Alaska State Director Bud Cribley. “This important milestone lays the groundwork for future development and our commitment to serve America’s energy needs and Alaska’s economic viability.”
The drilling permit and ROW grant implements the best management practices and lease stipulations required by the 2013 NPR-A Integrated Activity Plan, as well as additional project design features to reduce impacts as required by the Record of Decision (ROD) for the GMT1, approved earlier this year. The ROD also established a compensatory mitigation fund to finance development of a long-term landscape level Regional Mitigation Strategy and mitigation projects identified through the Strategy. The Regional Mitigation Strategy is currently being developed through a collaborative, multi-stakeholder process that includes representatives from across Alaska.
The BLM’s 2013 Integrated Activity Plan identified 11 million acres in the NPR-A for protection of natural values, while making close to 12 million acres and 72 percent of the technically and economically recoverable oil available for development. Currently, 212 authorized leases cover more than 1.75 million acres in the reserve; however, only exploratory drilling has occurred in the reserve to date. The Greater Mooses Tooth project would facilitate the first production and transportation of oil to the Trans-Alaska Pipeline from federal lands in the NPR-A.
In 2011, President Obama directed the Secretary of the Interior to conduct annual oil and gas lease sales in the NPR-A. Lease sales had previously been held every two years.
Since 1999, 11 lease sales in the NPR-A have garnered more than $261 million, half of which was shared with the State of Alaska. On November 18, 2015, the BLM will conduct its 12th annual lease sale in the NPR-A, which will include 143additional tracts covering approximately 1.5 million acres.
According to the BLM, market conditions and other factors determine when the wells will be drilled. But, an approved Application for Permit to Drill is valid for two years or until the lease expires, whichever occurs first.
The BLM manages more than 245 million acres of public land, the most of any Federal agency. This land, known as the National System of Public Lands, is primarily located in 12 Western states, including Alaska. The BLM also administers 700 million acres of sub-surface mineral estate throughout the nation. The BLM's mission is to manage and conserve the public lands for the use and enjoyment of present and future generations under our mandate of multiple-use and sustained yield. In Fiscal Year 2014, the BLM generated $5.2 billion in receipts from public lands.
--BLM--
http://www.blm.gov/wo/st/en/info/newsroom/2015/october/nr_10_22_2015.html
Of course he is, it's all about his legacy.---as he quietly opened up more federal land in Alaska to drilling.
Obama is going to reject it in a few minutes.
And leaving the tar sands alone ? Bonus !!
NIMBY
Another reason to live where there's no railroad, no natural gas, and no oil pipelines. Miles and miles of pipeline that turn millions of gallons of treated WWTP effluent into 70% of northern California's electricity every day through geothermal, but no oil, no natural gas. So sad.
America has built the equivalent of 10 Keystone pipelines since 2010 — and nobody said anything----
While TransCanada Corp. has been cooling its heels on its Keystone XL proposal for the past six years, the oil pipeline business has been booming in the United States.
Crude oil pipeline mileage rose 9.1 per cent last year alone to reach 66,649 miles, according to data from the Washington, D.C.-based Association of Oil Pipe Lines (AOPL) set to be released soon.
Between 2009 and 2013, more than 8,000 miles of oil transmission pipelines have been built in the past five years in the U.S., AOPL spokesperson John Stoody said, compared to the 875 miles TransCanada wants to lay in the states of Montana, South Dakota and Nebraska for its 830,000-bpd project. By last year, the U.S. had built 12,000 miles of pipe since 2010
“That’s the point we make,” Stoody said. “While people have been debating Keystone in the U.S. we have actually built the equivalent of 10 Keystones. And no one’s complained or said anything.”
On Monday, TransCanada asked the U.S. State Department to suspend review of its controversial Alberta-to-Nebraska pipeline in the latest episode of a six-year drama that has seen as many as five environmental reviews, numerous legal challenges and a rejection in 2012 by President Barack Obama. Despite TransCanada’s request for a pause, the U.S. President could still reject the pipeline.
The 487-mile southern leg of the project, dubbed the Gulf Coast project, between Cushing, Okla. and Texas refineries came on stream in 2014.
While the northern leg of Keystone XL remains under review, the Lower 48s have seen new oil pipes crisscrossing the country.
“If you look at 2010 versus now we have seen historic realignment that has transformed the infrastructure situation,” said Afolabi Ogunnaike, analyst at Wood Mackenzie. “There has been tremendous investment in pipelines and more investments are coming on.”
The U.S. midstream infrastructure is responding to a near-doubling of U.S. production over the past six years. The U.S. saw an 11.6 per cent increase in crude oil transport via pipelines in 2014, according to AOPL data.
But as U.S. oil production eases in response to lower crude prices, the rapid build-up could see pipeline capacity exceed production in the Bakken in North Dakota and even the Permian basin straddling Texas and New Mexico, Ogunnaike estimates.
“The low oil price environment is allowing the crude oil logistics to catch up to supply,” he said.
Armed with shipping commitments despite low crude prices, key pipeline operators are proceeding with many projects to alleviate the bottlenecks, which could add as much as 8.7 million barrels per day by 2018, Reuters data shows.
Last week, Houston-based pipeline company Enterprise Product Partners said it would have US$7.8 billion of major capital projects ready by the end of 2017. Tulsa, Okla.-based shipper Magellan Midstream Partners raised its capital expenditure by US$200 million to US$1.6 billion in its earnings announcement Tuesday. TransCanada has reported higher volumes on the Keystone Pipeline System in its third-quarter earnings, while Enbridge Inc. is also looking to expand its presence in the Gulf Coast.
Much of the opposition in the U.S. has focused on crude rail terminals, especially in California and Oregon, which has led to delays on some rail projects. In many states, pipeline is viewed more favourably than the sight of crude-bearing rail cars barreling down town centres.
“There is some local opposition, but we don’t have local or inter-state projects that are attracting the same level of scrutiny as Keystone XL seems to have. Keystone XL is an international issue,” Ogunnaike says.
But for many the fight against Keystone XL pipeline remains a high priority in a larger battle to combat climate change.
“I have always opposed Keystone XL,” tweeted Democrat presidential hopeful Bernie Sanders on Monday. “It isn’t a distraction — it’s a fundamental litmus test of your commitment to battle climate change.”
But the opposition has done little to stop the surge of Alberta crude flowing through the U.S. pipeline systems: Canadian crude oil exports to the U.S. soared to 3.4 million barrels per day in August – a new record.
http://business.financialpost.com/news/energy/america-has-built-the-equivalent-of-10-keystone-pipelines-since-2010-and-no-one-said-anything