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276
Cumulative Environmental Effects of Oil and Gas Activities on Alaska 's North Slope
. . .
field (] 977~. The field is located just to the west of the mouth of the Canning River and contains
reserves estimated at 5 TCFG and 360 million bb} (] 5. ~ billion gallons).
A point worth noting is that in the 2000 area wide State lease sale, one of the bidding
groups acquired a very substantial tract of leases in the Kavik-Kemik area. They picked up all
the leases, except those held by the discovery wells, which had been surrendered by previous
leasees. The possibility of a gas pipeline Tom the North Slope has changed the perception of
those discoveries. The winning companies are betting on gas and that the reserves are larger than
previously estimated.
Twenty of the 35 discoveries are either developed and on production or currently being
developed. Northstar located offshore, is an example of the latter. At least seven or eight of
these discoveries are satellite fields and would not have been developed if they were not
"immediately" adjacent to a large field with an existing infrastructure. Tabasco and the Midnight
Sun/Sambuca fields are satellites each of which has OOlP of 30 to 70 million bb! (~.2 to 2.9
billion gallons).
Since the first commercial discovery at Prubhoe Bay in 1968, a total of 39 discoveries
have been made on State leases and twenty-four, nearly all in the immediate Pru~hoe-Kuparuk
area, have been or are being developed. This area has been and will continue to be the primary
exploration grounds until or unless large, attractive areas of the National Petroleum Reserve-
Alaska and/or the Arctic National Wildlife Refuge become available for leasing.
Federal OCS, Beaufort Sea
The BeauLort OCS lands were unavailable to the petroleum industry until the joint
State/Federal lease sale of ~ 979. This and subsequent sales provided access to waters beyond the
three-miTe~ limit, stretching from Point Barrow in the west to the Canadian border in the east.
[Leasing
The BeauLort OCS has been the site of seven lease sales, commencing with the joint
State/Federal sale in ~ 979 and continuing over a 20-year period to the most recent sale held in
1998 (ADNR 2001a, MMS 200 Ic). These sales were helLcl at two to five year intervals, with
sales in 1979, 1982, 1984, 1988,1991, 1996, and 1998.
The total acreage offered was 54,81 1,200 acres (22,198,500 ha) in ~ 0,] 3 ~ blocks (MM S
200Ic). The total includes previously unoffered lands, reofferings of surrendered leases, and
reoffering of previously offered but unleased acreage.
The offerings ranged in size from 173,423 acres (70,236 ha) in 46 blocks (1979) to
IS,556,776 acres (779,384,592 ha) in 3,417 blocks (19911. Issuance of leases ranged from a low
of 24 blocks with 85,776 acres (34,739 ha) in 1979 to a high of 227 leases with 1,207,714 acres
(489,124 ha) in ~ 984 (MMS 2001c). The earliest phase of leasing in the late ~ 970s and early
198Os drew the greatest level of interest with approximately 21 percent ofthe offered acreage
being leased. The large acreage offerings of the late 198Os and early 199Os (7.28 to 18.56
million acres [2.9 to 7.5 million ha]) drew relatively little interest, with only 3.5 percent of the
offered blocks receiving successful high bids. [merest may be on the rise once again. At the
most recent sale in 1998, 9.3% of the 920,983 acres (372,998 ha) offered were leased.
Interest peaked early not only in terms of the percentage of offerings receiving bids but
also in terms of the values bid on the leases. The average per block bit! in the first three sales
Representative terms from entire chapter:
beaufort sea
