Performance Details
Department of Natural Resources - Oil & Gas Development
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.
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Performance Detail
A: Result - Maximize financial benefit of oil, gas, and geothermal production to the state |
A1: Core Service - 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. |
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 regulation and lease or unit agreements.
Unit Adjudications & Contract Negotiations
Analysis of results and challenges: Adjudicate 100% of lease operation and unit actions as required by regulation and lease or unit agreements. When pertinent, provide subsurface technical and commercial understanding to inform lease operation and unit actions. 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 2019: 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 FY 2017 Decisions: Plan of Exploration/Plan of Development: 53 Unit Revision (expansion/contraction): 14 Participating Area (formation/expansion/contraction/tract allocation redeterminations): 6 Unit Formation: 1 Unit Extension: 1 Default/Termination: 5 Miscellaneous: 8 FY 2016 Decisions: Plan of Exploration/Plan of Development: 46 Unit Revision (expansion/contraction): 7 Participating Area (formation/expansion/contraction/tract allocation redeterminations): 10 Unit Formation: 0 Unit Extension: 1 Default/Termination: 4 Miscellaneous: 9 |
B: Result - Manage Alaska’s oil, gas, and geothermal resources for responsible exploration and development for maximum benefit to the state. |
Target #1: Provide access to state lands for the purpose of responsible oil, gas, and geothermal exploration and development.
Acreage Under Lease or License
Analysis of results and challenges: Note that historical acreage reported may be slightly different from previous reports because of changes in reporting protocols. FY 2019: Acreage under lease or license 4,453,261 FY 2018: Acreage under lease or license 4,996,840 FY 2017: Acreage under lease or license 5,343,661 FY 2016: Acreage under lease or license 6,161,719 |
B1: Core Service - 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. |
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
Analysis of results and challenges: 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 NS BIF). 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. FY2017: The Permitting Section reviewed 100% of the submitted Plan and Plan Amendment requests with 100% of the authorizations issued within expected timelines. Nine new Plans of Operation (five Lease Plans and four Unit Plans of Operation) and 75 plan amendments were reviewed. Five of nine Lease and Unit Plans were approved; three applications were put on hold and one was closed at the applicants’ request. Sixty-five of 75 Plan Amendments were approved; Ten Plan Amendment applications were closed or withdrawn. FY2016: The Permitting Section reviewed 100% of the submitted Plan and Plan Amendment requests with 93% of the authorizations issued within expected timelines. Ten new Plans of Operation (one Exploration License Plan, four Lease Plans, and five Unit Plans of Operation) and 83 plan amendments were reviewed. Eight of 10 plans were approved; one application was transferred to a different agency, and one was withdrawn. Seventy-four of 83 plan amendments were approved; three were withdrawn, and six did not require an approval to conduct the requested activity. One plan and four plan amendments that were approved experienced inter-agency coordination that, though resolved, resulted in longer timelines than is typical within our process. |
Target #2: Issue permits for geophysical exploration within established timelines (100% Compliance)
Number of Geophysical Exploration Permits Issued
Analysis of results and challenges: FY2019: Four geophysical permits were issued; five applications were received; and one was withdrawn by the applicant. FY2018: Three geophysical permits were issued; five applications were received; one was put on hold; and one was withdrawn. FY2017: Two geophysical permits were issued; four applications were received; and two were withdrawn. FY2016: Eleven geophysical exploration permits were reviewed and resulted in 10 permits being issued; and one application was withdrawn. |
C: Result - Ensure the design, construction, operation and maintenance of jurisdictional pipelines meet regulatory and environmental requirements. |
Target #1: Offer design criteria and safety information to the public to support best management practices for each lease.
Right-of-Way Lease Application Activity
Analysis of results and challenges: 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. |
C1: Core Service - 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. |
Target #1: Facilitate and improve regulatory and lease compliance monitoring of AS.38.35 pipelines
Compliance & Oversight Monitoring Actions of AS 38.35 Pipelines
Analysis of results and challenges: FY2019: The Pipeline Section applied 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, or other lease related actions such as amendments, releases of interest, and renewals. The Pipeline Section implemented a Geospatial Information System (GIS) platform for gathering field data and pipeline system data while conducting inspections. This GIS platform serves as a database by which pipeline, environmental, health, and safety data is aggregated and used to communicate concerns and progress to the lessees via inspection reports. FY2018 : The Pipeline Section applied 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, or other lease related actions such as releases of interests and renewals. The Pipeline Section has implemented a Geospatial Information System (GIS) platform for gathering field data and pipeline system data while conducting inspections. This GIS platform serves as a database by which pipeline environmental, health, and safety data is aggregated and used to communicate concerns and progress to the lessees via inspection reports. |
Current as of November 27, 2019