Alaska Factsheet

There are 15 planning areas in the OCS offshore Alaska. Most have never been offered for leasing consideration because of the low resource potential and/or extremely high costs. The Proposed Final Program (PFP) for 2007-2012 (approved June 29, 2007) and the 2010-2015 Draft Proposed Program (DPP) scheduled sales in four of the fifteen planning areas.

The State of Alaska supports OCS activity. It is particularly interested in production in the Arctic that could augment the declining throughput in the pipeline from Prudhoe Bay.

Beaufort Sea

The tracts leased in two recent Beaufort Sea sales have not yet been explored. In anticipation of the valuable information that might result from exploration, the two Beaufort sales in the 2007-2012 program have been removed, but the area will be studied for possible sales in the 5-Year Program for 2012-2017.

Currently there are 186 active leases, with over 90 percent issued in the two most recent sales -- 195 (2005) and 202 (2007). Since 2001, there has been production from Northstar, a Federal/State unit, formed in 1989. There is development activity on two leases of the Liberty Project, currently under a suspension of production for construction and preparation to drill development wells.

In October 2009, MMS approved an Exploration Plan, but due to litigation, exploration has not occurred. Results from anticipated exploration, ongoing research into oil-spill clean-up capability in icy waters, and increased awareness of the effects of climate change will provide the opportunity to make more informed decisions regarding Arctic sales. For this reason, the area is included for scoping in the next 5-year program draft EIS.

The MMS estimate of undiscovered, economically recoverable resources for the Beaufort Sea Program Area is 2-7 billion barrels (Bbbl) of oil and 3-20 trillion cubic feet (tcf) of natural gas. Estimates of economically recoverable resources in the Beaufort are highly sensitive to resource price. Information acquired from exploration activities in this harsh and untested environment would serve to reduce the level of uncertainty in resource estimates for both leased and unleased areas.

The PRP removes the two sales scheduled in the 2007-2012 PFP. This is one of the three areas that the Court addressed in its July 28, 2009, clarification of its earlier order.

Chukchi Sea

The tracts leased in the Chukchi Sea Sale 193, held in 2008, have not yet been explored. In anticipation of the valuable information that might result from exploration, the remaining two Chukchi sales in the 2007-2012 program have been removed, but the area will be studied for possible sales in the 5-Year Program for 2012-2017.

There are 487 leases in this area, all issued in Sale 193 in 2008. In December 2009, MMS approved an Exploration Plan. However, as is the case for the recently issued leases in the Beaufort Sea, there has been no exploration in this area due to litigation. Results from anticipated exploration, ongoing research into oil-spill clean-up capability in icy waters, and increased awareness of the effects of climate change will provide the opportunity to make more informed decisions regarding Arctic sales. For this reason, the area is included for scoping in the next 5-year program draft EIS.

The MMS estimate of undiscovered, economically recoverable resources for the Chukchi Sea Program Area is 0.15-12 Bbbl of oil and 0.5-54 tcf of natural gas. Estimates of economically recoverable resources in the remote and harsh frontier environment of the Chukchi are very sensitive to resource price. Information acquired from exploration activities in this remote, harsh, and untested environment would serve to reduce the uncertainty in resource estimates for both leased and unleased areas.

The PRP removes two of the three PFP sales, reaffirming Chukchi Sea Sale 193, held in 2008. This is one of the three areas that the Court addressed in its July 28, 2009, clarification of its earlier order.

Cook Inlet

Very little of the Cook Inlet Planning Area is under lease, so MMS will hold a Cook Inlet sale in the current program if there is sufficient industry interest. The area also will be studied for inclusion in the 5-Year Program for 2012-2017.

The PRP retains the two special interest sales included in the PFP. Under that process, a request for industry interest is issued periodically to determine whether to proceed with the presale process. Such a request will be issued in the near future for Sale 219, scheduled for 2011. If there is industry interest, the presale process will proceed through the various decision points. Because there was no interest expressed in a 2008 request, Sale 211, scheduled for 2009, was not held pursuant to the process for special interest sales. This area is included for scoping for the next 5-year program EIS.

There are two active leases in the area that are part of the Cosmopolitan Unit, formed in 2001 with the two Federal and eight State leases in Lower Cook Inlet. The Unit is currently under a suspension of operations to allow time for evaluation of different development options.

The MMS estimate of undiscovered, economically recoverable resources for the Cook Inlet Program Area is 0.7-1 Bbbl of oil and 0.9-1.2 tcf of natural gas.

North Aleutian Basin/Bristol Bay

Due to the proximity of sensitive resources and uncertainty as to the effects of climate change on those resources, there will be no leasing, and thus no exploration and development, of North Aleutian Basin acreage under the current 5-year program or the new one being developed. Bristol Bay, in the North Aleutian Basin, holds some of the world's most vibrant commercial, subsistence and recreational fisheries, including the world's largest wild run of sockeye salmon. The unpolluted waters in this region provide more than 40% of total U.S. fish catch and support the fishing industry throughout Alaska and the Pacific Northwest. The value of this region as a sustainable commercial fishery has long been recognized, so much so that in 1972, the Alaska legislature established the Bristol Bay Fisheries Reserve.

The Bristol Bay region is also recognized globally for its ecological importance to other important species, providing habitat for dozens of marine mammals and one of the world's greatest concentrations of seabird colonies. Bristol Bay sits in close proximity to pristine wilderness areas such as the Alaska Maritime NWR, the Alaska Peninsula NWR, the Izembek Lagoon NWR, the Aniakchak Crater National Monument and Preserve, the Becharof NWR, the Katmai National Park and Preserve, and the Togiak NWR.

The PRP removes the one sale scheduled in the 2007-2012 PFP. This is one of the three areas that the Court addressed in its July 28, 2009, clarification of its earlier order. The clarification order identified one of the areas as the Bering Sea, which covers the North Aleutian Basin Planning Area.

This area is not included for scoping for the 2012-2017 draft EIS. There are no existing leases, and previously issued leases were bought back in settlement of litigation at significant government expense to protect the area. No activity is expected to occur in the foreseeable future.

11 Other Alaskan Planning Area

None of the other 11 Alaska planning areas was included in the PFP and they are not included for scoping for the next program. No activity is expected to occur in the foreseeable future.

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