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The NewsRoom
Release: #3777
Date: February 6, 2008
MMS Chukchi Sea
Lease Sale 193 Breaks Energy Records With $2.6 Billion in High Bids
Record Number of Bids on Record Number
of Tracts
ANCHORAGE
– The Department of the Interior’s Minerals Management Service (MMS)
has completed the first
Chukchi Sea sale since 1991. Today’s offshore lease sale is
the most successful in Alaska’s history based on the number of bids
received and the number of tracts receiving bids. The sale showed
the industry’s heightened interest in this area with 667 bids on 488
blocks -- both record-setting numbers -- on the
Outer Continental
Shelf. This was the third offshore
lease sale in the Chukchi Sea. Tracts getting bids are spread
throughout the Chukchi Sea, with the closest to land being
approximately 54 miles offshore.
“We are very pleased with the
sale’s historic results. The oil and gas resources present in the
Chukchi Sea are vital to our Nation’s and Alaska’s economy and will
boost future supplies into the Trans-Alaska pipeline,” said MMS
Director Randall Luthi. “Over the past 30 years, MMS has funded nearly
$300 million for environmental studies in Alaska waters. Since 2000,
we’ve conducted 30 to 40 active environmental studies each year
offshore Alaska. We are committed to ensuring that all environmental
concerns have been addressed while we move forward to supply energy to
our nation.”
Companies submitted bids totaling
almost $3.4 billion, with high bids of more than $2.6 billion. Each
high bid on a block will now go through a thorough evaluation process
to ensure that the public receives fair market value before a lease is
awarded.
The highest bid received for the
sale was $105,304,581 submitted by Shell. More complete information on
the sale held today will be available on the MMS Alaska homepage
located at
www.mms.gov/alaska by 3 p.m. AST on February 6th.
“We know that the Chukchi Sea is
very important to the people who live along its coast and use its
resources,” Luthi said. “MMS will continue working closely with the
State of Alaska, local communities, whalers, and industry to help
minimize any impacts of industry activity on subsistence hunting. In
fact, leases issued from the sale will include stipulations for
protection of biological resources, including marine mammals and
migratory and other protected birds, and methods to minimize
interference with subsistence hunting and other subsistence harvesting
activities.”
The sale was first proposed in the
2002-2007 Oil and Gas Leasing Program, but MMS delayed it to provide
sufficient time to complete the environmental analysis. It was then
incorporated into the 2007-2012 Leasing Program.
The
Chukchi Sea Sale 193 sale area is located offshore Alaska from north
of Point Barrow to northwest of Cape Lisburne. It contains more than
29 million acres. The sale area extends from
about 25 to 50 miles from shore out to 200 miles offshore. Two
sales have been held in the Chukchi Sea Planning Area. Sale 109 was
held in 1988 with 351 leases issued, and Sale 126 in 1991 with 28
leases issued. Five exploration wells have been drilled. All of the
leases were either relinquished or have expired.
Media Contact:
Robin
Cacy 907-334-5208
MMS: Securing Ocean Energy & Economic Value for America
U.S. Department of the Interior
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Last Updated:
05/27/2008,
04:05 PM
Central Time
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