WHAT IS A LEASE SALE?
A lease sale is the process by which BOEM provides the right to apply for authorization to explore and develop the mineral resources within the leased area. Typically, a lease sale consists of many OCS blocks. Each block covers an area that is no more than 5,760 acres (a three mile by three mile area).
Before authorizing any activities, BOEM conducts reviews under the National Environmental Policy Act (NEPA) and other environmental laws to ensure that the activities will be conducted in a safe and environmentally sound manner, and that the interests of key stakeholders are considered.
During a lease sale, oil companies bid against each other for the exclusive right to explore for oil and/or gas on specific blocks.
HOW MUCH OIL AND GAS DOES THE FEDERAL GOVERNMENT BELIEVE IS IN COOK INLET?
BOEM estimates that the federal waters of Cook Inlet contain an economically recoverable 810 million barrels of oil, and .33 trillion cubic feet of natural gas. (Source: BOEM Fact Sheet RED-2017-12 [PDF], “Assessment of Undiscovered Technically Recoverable Oil and Gas Resources of the Nation’s Outer Continental Shelf, 2016”)
WILL THIS BE THE FIRST FEDERAL LEASE SALE IN COOK INLET?
No. Six federal lease sales have been held in the Cook Inlet Planning Area within the past 45 years.
- In October 1977, Lease Sale CI resulted in 87 leases being issued.
- In September 1981, Lease Sale 60 resulted in 13 leases being issued.
- Lease Sale 149, held in June 1997, resulted in 2 leases being issued.
- Lease Sale 191 was scheduled for May 2004, and bids were solicited. However, none were received.
- Lease Sale 244, held in June 2017, resulted in 14 leases issued. It generated $3,034,815 in high bids.
ARE THERE CURRENTLY ANY ACTIVE LEASES IN THE FEDERAL WATERS OF COOK INLET?
There are 14 active leases in the federal waters of Cook Inlet. Each of these is owned in full by Hilcorp Alaska LLC. They were acquired by Hilcorp via Cook Inlet Oil & Gas Lease Sale 244, held in June 2017.
HOW MANY OF THE OIL PLATFORMS IN COOK INLET ARE IN FEDERAL WATERS?
There are currently no oil or gas platforms in the federal waters of Cook Inlet. All existing platforms are in nearshore waters that are regulated by the State of Alaska.
HOW MANY SEISMIC SURVEYS HAVE OCCURRED IN LEASE SALE AREA 244 SINCE THE SALE OCCURRED?
A 3-D seismic survey was conducted in 2019 under permit 19-0. Details are here: https://www.boem.gov/about-boem/alaska-region-gg-survey-19-01
DID ANY LESSEES REQUEST A WAIVER OR VARIANCE FROM STIPULATION NO. 9?
Hilcorp proposed survey activities during the later summer of 2020, and its plans were authorized by BOEM as described here: https://www.boem.gov/alaska-region-gg-survey-20-01. Their 2020 proposal did not include any of the lease blocks where Stipulation 9 applies (Protection of Gillnet Fishery).
WERE ANY TEMPORARY OR PERMANENT STRUCTURES PLACED OR PLANNED DURING THE DRIFT GILLNET FISHING SESSION?
Hilcorp has until Oct. 31, 2020 to complete their planned activities. As of Oct. 5, 2020, however, Hilcorp has not notified BOEM that it intends to commence the activities approved in their plan.
To date, no permanent or temporary structures have been placed or are planned for the federal waters of Cook Inlet.