Performance Details

Department of Natural Resources - Oil & Gas

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Mission

The Division of Oil and Gas manages lands for oil, gas, and geothermal exploration and development in a fair and transparent manner to maximize prudent use of resources for the greatest benefit of all Alaskans and facilitates safe and environmentally conscious operation and maintenance of common carrier pipelines.

Core Services

• Enforce exploration and development obligations of lease and unit agreements, weighing several factors including resource potential and conservation, environmental and economic impacts, and proposed work commitments.
• Ensure that exploration, leasehold, and unit-related operations are conducted in a timely and responsible manner. Provide for exploration of state land through geophysical exploration permits.
• Administer AS 38.35 leases; revenue collection, permitting, compliance and engineering oversight of construction, operation, maintenance and termination of pipelines. Coordinate with state and federal agencies to serve the state"s best interests.

Mission Results	Core Services
A: Maximize financial benefit of oil, gas, and geothermal production to the state Details > TARGET #1: Ensure the state receives the maximum rates and payments for oil and gas resources.	A1: Enforce exploration and development obligations of lease and unit agreements, weighing several factors including resource potential and conservation, environmental and economic impacts, and proposed work commitments. Details > TARGET #1: Adjudicate all lease operation and unit actions (formation, expansion, contraction, termination, extension, participating area, tract allocation, & plans of exploration or development) as required by relevant regulation, lease, or unit agreements.
Mission Results	Core Services
B: Manage Alaska"s oil, gas, and geothermal resources for responsible exploration and development for maximum benefit to the state. Details > TARGET #1: Provide access to state lands for the purpose of responsible oil, gas, and geothermal exploration and development.	B1: Ensure that exploration, leasehold, and unit-related operations are conducted in a timely and responsible manner. Provide for exploration of state land through geophysical exploration permits. Details > TARGET #1: Evaluate and issue 100% of plan authorizations within established timelines for each lease or unit plans of operation. TARGET #2: Issue permits for geophysical exploration within established timelines (100% Compliance)
Mission Results	Core Services
C: Ensure the design, construction, operation and maintenance of jurisdictional pipelines meet regulatory and environmental requirements. Details > TARGET #1: Offer design criteria and safety information to the public to support best management practices for each lease.	C1: Administer AS 38.35 leases; revenue collection, permitting, compliance and engineering oversight of construction, operation, maintenance and termination of pipelines. Coordinate with state and federal agencies to serve the state"s best interests. Details > TARGET #1: Facilitate and improve regulatory and lease compliance monitoring of AS.38.35 pipelines.

Performance Detail

Target #1: Ensure the state receives the maximum rates and payments for oil and gas resources. Audit Collection of Royalty and Net Profit Share Lease Revenues Collected (in Millions) Fiscal Year $ Millions FY 2024 16.1 FY 2023 1.8 FY 2022 3.3 FY 2021 22.3 FY 2020 2.5 FY 2019 5.6 Analysis of results and challenges: FY2024: Audit collections were $16.1 million in royalty and NPSL revenue, not including interest. At the end of FY24, there were no audits in appeals in the Commissioner`s Office. There were also no audits in Superior Court. FY2023: Audit collections were $1.8 million in royalty and NPSL revenue, not including interest. At the end of FY23, there were no audits in appeals in the Commissioner`s Office. There were also no audits in Superior Court. FY2022: Audit collections were $3.3 million in royalty and NPSL revenue, not including interest. At the end of FY22, two issued audits remained in appeals in the Commissioner"s Office pending final resolution and represent claims of $6.3 million in NPSL revenue. At the end of FY22, three audits were in Superior Court and represent claims of $7.2 million. FY2021: The Audit Section issued six audits over the past fiscal year representing claims of $3.6 million in royalty and net profit shared leases (NPSL) revenue. Audit collections were $22.3 million in royalty and NPSL revenue, not including interest. At the end of FY21, seven issued audits remained in appeals in the Commissioner"s Office pending final resolution and represent claims of $0.6 million in royalty and $44.4 million in NPSL revenue. At the end of FY21, ten audits were in Superior Court and represent claims of $17.3 million. FY2020: The Audit Section issued seven audits over the past fiscal year representing claims of $3.6 million in royalty and net profit shared leases (NPSL) revenue. Audit collections were $2.5 million in royalty and NPSL revenue, not including interest. At the end of FY20, fourteen issued audits remained in appeals in the Commissioner"s Office pending final resolution and represent claims of $0.2 million in royalty and $68.5 million in NPSL revenue. At the end of FY20, thirteen audits were in either Superior Court or arbitration for resolution and represent claims of $45.5 million. FY2019: The Audit Section issued three audits over the past fiscal year representing claims of $14.8 million in royalty and net profit shared leases (NPSL) revenue. Audit collections were $5.6 million in royalty and NPSL revenue, not including interest. Twenty-seven issued audits remain in appeals pending final resolution and represent claims of $46.3 million in royalty and $68.5 million in NPSL revenue. FY2018: The Audit Section issued eight audits over the past fiscal year representing claims of $46.1 million in royalty and net profit shared leases (NPSL) revenue. Audit collections were $44.7 million in royalty and NPSL revenue, not including interest. Twenty issued audits remain in appeals pending final resolution and represent claims of $22.1 million in royalty and $63.1 million in NPSL revenue. There are two unresolved audits that were remanded back to the division representing claims of $11.6 million in royalty revenue. Target Last Modified: 09/30/2024

Target #1: Adjudicate all lease operation and unit actions (formation, expansion, contraction, termination, extension, participating area, tract allocation, & plans of exploration or development) as required by relevant regulation, lease, or unit agreements. Methodology: Commencing 2019 graph combines contract administration adjudications and new contracts negotiated during the reporting year. Unit Adjudications & Contract Negotiations Fiscal Year Received/Issued FY 2024 55 -29.49% FY 2023 78 -3.70% FY 2022 81 -4.71% FY 2021 85 +16.44% FY 2020 73 -5.19% FY 2019 77 +1.32% Analysis of results and challenges: The Division of Oil and Gas unit managers negotiate and administer contracts related to units and adjudicate a variety of lease operation and unit actions to enforce the exploration and development obligations of lease and unit agreements. These actions include unit formation, expansion, and contraction; unit termination; lease and unit plans of exploration or development; and unit participating area formation, expansion, contraction, and tract allocations. Division geologists, geophysicists, and engineers provide technical expertise and the Division"s economists provide commercial expertise. The number and type of decisions vary from year to year depending on operators" actions. FY 2024 Decisions: Plan of Explorations/Plan of Development: 38 Unit Revision (expansion/contraction): 6 Participating Area (formation/expansion/contraction/tract allocation redeterminations): 7 Unit Formation: 1 Unit Extension: 0 Default/Termination: 2 Miscellaneous Adjudications: 1 Contracts/Contract Amendments:0 FY 2023 Decisions: Plan of Explorations/Plan of Development: 42 Unit Revision (expansion/contraction): 3 Participating Area (formation/expansion/contraction/tract allocation redeterminations): 1 Unit Formation: 3 Unit Extension: 2 Default/Termination: 2 Miscellaneous Adjudications: 20 Contracts/Contract Amendments: 5 FY 2022 Decisions: Plan of Exploration/Plan of Development: 43 Unit Revision (expansion/contraction): 4 Participating Area (formation/expansion/contraction/tract allocation redeterminations): 9 Unit Formation: 3 Unit Extension: 4 Default/Termination: 0 Miscellaneous Adjudications: 8 Contracts/Contract Amendments: 10 FY 2021 Decisions: Plan of Exploration/Plan of Development: 56 Unit Revision (expansion/contraction): 9 Participating Area (formation/expansion/contraction/tract allocation redeterminations): 6 Unit Formation: 4 Unit Extension: 0 Default/Termination: 1 Miscellaneous Adjudications: 7 Contracts/Contract Amendments: 2 FY 2020 Decisions: Plan of Exploration/Plan of Development: 46 Unit Revision (expansion/contraction): 7 Participating Area (formation/expansion/contraction/tract allocation redeterminations): 7 Unit Formation: 2 Unit Extension: 1 Default/Termination: 4 Miscellaneous Adjudications: 2 Contracts/contract amendments negotiated: 4 FY 2019 Decisions: Plan of Exploration/Plan of Development: 45 Unit Revision (expansion/contraction): 7 Participating Area (formation/expansion/contraction/tract allocation redeterminations): 11 Unit Formation: 0 Unit Extension: 0 Default/Termination: 5 Miscellaneous Adjudications: 2 Contracts/contract amendments negotiated: 7 FY 2018 Decisions: Plan of Exploration/Plan of Development: 47 Unit Revision (expansion/contraction): 9 Participating Area (formation/expansion/contraction/tract allocation redeterminations): 8 Unit Formation: 1 Unit Extension: 0 Default/Termination: 2 Miscellaneous: 7 Target Last Modified: 09/30/2024

Target #1: Evaluate and issue 100% of plan authorizations within established timelines for each lease or unit plans of operation. Percent of Plan Authorizations Issued Within Timelines Fiscal Year YTD Total FY 2024 100% FY 2023 100% FY 2022 100% FY 2021 100% FY 2020 100% FY 2019 96% Analysis of results and challenges: FY2024: The Permitting Section reviewed 100% of the submitted Plan and Plan Amendment with 100% of the authorizations issued within established timelines. In FY2024, the Permitting Section approved three new lease plans of operations, one new unit plan of operations, two new easements, two easement amendments, three development plan amendments, one surface lease renewal application, five miscellaneous land use permits, 119 tundra travel requests, 48 general permits, and 67 plans of operations amendments for activities on the North Slope and in Cook Inlet. FY2023: The Permitting Section issued 100% of the submitted Plan and Plan Amendment requests within established timelines. In FY2023 the Permitting Section approved five new lease plan of operations, two new unit plan of operations, one new easement, three easement amendments, one lease development plan amendment, one new surface lease application, eight miscellaneous land use permits, 82 tundra travel requests, 51 general permits, and 72 plans of operations amendments for activities on the North Slope and in Cook Inlet. FY2022: The Permitting Section reviewed 100% of the submitted Plan and Plan Amendment requests with 100% of the authorizations issued within established timelines. In FY2022 the Permitting Section approved one new lease plan of operations, one new unit plan of operations, two easement amendments, two lease development plan amendments, one lease application, three lease amendments, 54 general permit approvals, and 50 plan of operations amendments. FY2021: The Permitting Section reviewed 100% of the submitted Plan and Plan Amendment requests with 100% of the authorizations issued within expected timelines. Four new Plans of Operation (two Lease Plans and two Units Plans of Operation), forty-seven General Permits and fifty Plan Amendments were approved. FY2020: The Permitting Section reviewed 100% of the submitted Plan and Plan Amendment requests with 100% of the authorizations issued within expected timelines. Seven new Plans of Operation (four Lease Plans and three Units Plans of Operation), 48 General Permits and 51 Plan Amendments were reviewed. Seven of seven Lease and Unit Plans were approved, and all General Permits and Plan Amendments were approved as well. FY2019: The Permitting Section reviewed 100% of the submitted Plan and Plan Amendment requests with 96% of the authorizations issued within expected timelines. Five new Plans of Operation (two Lease Plans and three Unit Plans of Operation) and 68 Plan Amendments were reviewed. Five of five Lease and Unit Plans were approved. Sixty-five of 68 Plan Amendments were approved (note: one amendment was closed and processed under a different project and the issues for the other two amendments were negated by the language update in 2018). FY2018: The Permitting Section reviewed 100% of the submitted Plan and Plan Amendment requests with 100% of the authorizations issued within expected timelines. Four new Plans of Operation (two Lease Plans and two Unit Plans of Operation) and 146 Plan Amendments were reviewed. Four of four Lease and Unit Plans were approved. One hundred and forty-four of 146 Plan Amendments were approved; two Plan Amendment applications were closed due to application to the wrong agency. Target Last Modified: 09/30/2024

Target #1: Offer design criteria and safety information to the public to support best management practices for each lease. Methodology: Lease application details include: applications, amendments and transfers. Right-of-Way Lease Application Activity Fiscal Year Issued Active Withdrawn YTD Total FY 2024 6 +20.00% 28 +27.27% 0 0% 34 +25.93% FY 2023 5 -44.44% 22 +4.76% 0 0% 27 -10.00% FY 2022 9 +12.50% 21 +5.00% 0 0% 30 +7.14% FY 2021 8 -20.00% 20 +5.26% 0 -100.00% 28 -6.67% FY 2020 10 -9.09% 19 0% 1 0% 30 0% FY 2019 11 +266.67% 19 0% 0 0% 30 +36.36% Analysis of results and challenges: FY2024: The Pipeline Section, which has specific jurisdiction for department actions associated with Alaska Statute 38.35 common or contract carrier pipelines, issued two new leases, one lease amendment, two renewals, and one easement for a total of six lease application activities (see diagram above), The Pipeline Section provided compliance oversight and conducted technical reviews for 28 pipelines including new pipeline projects for the Pikka and Willow Projects; reviews of proposed pipeline and related facility modifications ensuring each proposal met safety and design criteria as outlined in the specific codes. The Pipeline Section conducted public outreach using online public notice tools, and public hearings for the proposed AS 38.35 Willow Project activities. Additionally, the section made these reviews available to the public and industry by way of lease compliance and engineering reporting and Commissioner`s decisions. FY2023: The Pipeline Section (SPS) conducted reviews of several pipeline modification projects. These projects included reviewing the proposed modifications of pipelines and related facilities, pipeline integrity repairs, changes to service and temporary discontinuance of service. Technical reviews were completed to ensure that each proposal met safety and design criteria as outlined in specific codes. Additionally, the section conducted engineering reviews of newly proposed pipelines and has made that information available to the public and industry by way of lease compliance and engineering reporting and Commissioner`s decisions. FY2022: The Pipeline Section (SPS) conducted reviews of several pipeline modification projects. These projects included reviewing the proposed modifications of pipelines and related facilities, pipeline integrity repairs, changes to service and temporary discontinuance of service. Technical reviews were completed to ensure that each proposal met safety and design criteria as outlined in specific code. Additionally, the section conducted engineering reviews of newly proposed pipelines and has made that information available to the public and industry by way of lease compliance and engineering reporting and Commissioner"s decisions. FY2021: The Pipeline Section (SPS) conducted reviews of several pipeline modification projects and issued two new conditional leases. These projects included reviewing the proposed modifications of pipelines and related facilities, pipeline integrity repairs, changes to service and temporary discontinuance of service. Technical reviews were completed to ensure that each proposal met safety and design criteria as outlined in specific code. Additionally, the section conducted engineering reviews of newly proposed pipelines and has made that information available to the public and industry by way of lease compliance and engineering reporting and Commissioner"s decisions. FY2020: The Pipeline Section (SPS) conducted reviews of several pipeline modification projects. These projects included reviewing the proposed modifications of pipelines and related facilities, pipeline integrity repairs, changes to service and temporary discontinuance of service. Technical reviews were completed to ensure that each proposal met safety and design criteria as outlined in specific code. Additionally, the section conducted engineering reviews of newly proposed pipelines and has made that information available to the public and industry by way of lease compliance and engineering reporting and Commissioner"s decisions. FY2019: The Pipeline Section (SPS) conducted reviews of several pipeline modification projects. These projects included reviewing the proposed modifications of pipelines and related facilities, pipeline integrity repairs, changes to service and temporary discontinuance of service. Technical reviews were completed to ensure that each proposal met safety and design criteria as outlined in specific code. Additionally, the section conducted engineering reviews of newly proposed pipelines and has made that information available to the public and industry by way of lease compliance and engineering reporting and Commissioner"s decisions. FY2018: The Pipeline Section (SPS) conducted reviews of several pipeline modification projects. These projects included reviewing the proposed modifications of pipelines and related facilities, pipeline integrity repairs, changes to service and temporary discontinuance of service. Technical reviews were completed to ensure that each proposal met safety and design criteria as outlined in specific code. Additionally, the section conducted engineering reviews of newly proposed pipelines and has made that information available to the public and industry by way of lease compliance and engineering reporting and Commissioner"s decisions. Target Last Modified: 09/30/2024

Target #1: Facilitate and improve regulatory and lease compliance monitoring of AS.38.35 pipelines. Methodology: Commencing 2019, decrease is a result of metrics consolidation. Compliance & Oversight Monitoring Actions of AS 38.35 Pipelines Fiscal Year YTD Total FY 2024 202 +60.32% FY 2023 126 -17.65% FY 2022 153 +54.55% FY 2021 99 -36.13% FY 2020 155 +8.39% FY 2019 143 -28.50% Analysis of results and challenges: Analysis of results and challenges: The Pipeline Section generally applies a systematic approach to lease compliance inspections based on lessee annual reports and proposed work plans. Each field inspection is conducted according to a project mission developed around lease stipulations and the lessee`s work plans and maintenance activities, or other lease related actions such as amendments, releases of interest, and renewals. FY 2024: Field, compliance oversight and permitting activities continued to increase to slightly above pre-COVID-19 levels, in part due to new Oil and Gas development projects. The Pipeline Section with our liaison members carried out 202 actions, including 51 lease, land, water, and material actions; and 151 oversight activities including: inspections, reports, reviews, and surveillances. The section continued to develop Geospatial Information System (GIS) processes and tools which were first initiated in FY2019. Staffing and recruiting continued to be a challenge. FY 2023: The Pipeline Section observed activity, including field surveillances and permit applications similar to pre-COVID-19 activities. Although the metrics provided showed a decrease from FY 2022, that was due to a change in internal reporting. The Pipeline Section saw an increase in new lease applications, and authorization requests from lessees during FY 2023. FY 2022: The Pipeline Section observed activity, including field surveillances and permit applications, more consistent with pre-COVID-19 activities. This was reflected in the FY 2022 metrics which captured previous years prior to and during the inconsistencies associated with FY 2019-2021. FY 2020 — 2021: Inspections, permit applications, and surveillances were minimized between FY 2020 and FY 2021 due to COVID-19 restrictions implemented by lessees and industry, and long-term vacancies in the Pipeline Section. Oversight and regulatory actions of pipelines shifted from predominantly fieldwork to remote coordination and digital information sharing. At that time, industry reprioritized routine maintenance of pipelines during COVID-19 restrictions to restrict work that was critical to the safety, environment and integrity of pipelines and deferred routine maintenance to later. During these years, the Pipeline Section saw fewer permit applications. FY 2019: Starting in FY 2019, the Pipeline Section implemented a GIS platform that was utilized for gathering field data and pipeline system data while conducting inspections, thus changing some of the metrics originally collected. Target Last Modified: 09/30/2024

Last refreshed: 05/12/2025 12:00 pm