BOEM Announces Cook Inlet Federal Lease Sale Yields more than $3 Million in High Bids

Date: June 22, 2017
Contact: John.Callahan@boem.gov

ANCHORAGE, Alaska - Cook Inlet Lease Sale 244 -- the first lease sale held in Alaska’s federal waters since 2008 -- today garnered $3,034,815 in high bids for 14 tracts covering roughly 76,615 acres in Cook Inlet, off Southcentral Alaska. All bids were submitted by Hilcorp Alaska LLC.

“Today was the first time in nearly a decade that parcels off Alaska have been leased. This is the latest sign of continued industry optimism in the Trump Administration,” said Vincent DeVito, Counselor to the Secretary for Energy Policy. This Administration understands that our lands offer vast energy development opportunities and that responsible energy development strengthens all aspects of our energy economy. Today's successful sale is another step in an America First energy strategy that puts us on our way toward energy dominance."

Cook Inlet Lease Sale 244 is the final to be held under the 2012-2017 Outer Continental Shelf (OCS) Oil and Gas Leasing Program (Five Year Program). It offered 1.09 million acres in Cook Inlet, comprising 224 blocks stretching roughly from Kalgin Island in the north to Augustine Island in the south.

“This sale represents an important step forward for energy development in Alaska,” said Dr. Walter Cruickshank, Bureau of Ocean Energy Management’s (BOEM’s) acting director. “It demonstrates our commitment to environmentally responsible energy development that provides economic opportunities and generates jobs. Expanded oil and gas production is critical to America’s economic and energy security, as we move to strengthen the Nation’s energy independence in accordance with the administration’s goals.”

Prior to today’s sale, twelve lease sales were held under the 2012-2017 Five Year Program, which offered about 73 million acres for development and generated about $3.275 billion in bid revenues.

The 2017-2022 Program is set to begin this summer and will be in effect until BOEM completes a new National OCS Oil and Gas Leasing Program as part of President Donald Trump’s America First Offshore Energy Strategy, as outlined in the President’s Executive Order 13795 on April 28, 2017, and amplified by Secretary Zinke’s Secretary’s Order 3350 on May 1, 2017.

The Cook Inlet Lease Sale terms include stipulations to protect biologically sensitive resources, mitigate potential adverse effects on protected species, and avoid potential conflicts associated with oil and gas development in the region.

Following today’s sale, each bid will go through a 90-day evaluation process to ensure the public receives fair market value before a lease is awarded. Lease awards will be posted to BOEM’s website as they are completed. BOEM will announce final sale statistics upon completion of evaluations. All materials and statistics for Lease Sale 244 are available at: http://www.boem.gov/ak244.

#