Legislature(2023 - 2024)BARNES 124
01/19/2024 01:00 PM House RESOURCES
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| Start | |
| Presentation(s): Resource Development Activity | |
| Adjourn |
* first hearing in first committee of referral
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+ teleconferenced
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ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
January 19, 2024
1:03 p.m.
MEMBERS PRESENT
Representative Tom McKay, Chair
Representative George Rauscher, Vice Chair
Representative Thomas Baker
Representative Kevin McCabe
Representative Dan Saddler
Representative Stanley Wright
Representative Jennie Armstrong (via teleconference)
Representative Donna Mears
Representative Maxine Diberth
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
PRESENTATION(S): RESOURCE DEVELOPMENT ACTIVITY
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
JOHN CROWTHER, Deputy Commissioner
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Updated the committee on future trends in
the oil and gas industry.
DEREK NOTTINGHAM, Director
Division of Oil & Gas
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Provided a presentation on the Willow and
Pikka oil field projects.
MELANIE WERDON, State Geologist/Director
Division of Geological & Geophysical Surveys
Fairbanks, Alaska
POSITION STATEMENT: Gave a presentation titled, "Alaska Mining
Industry Update".
STEVE BUCKLEY, Mining Section Chief
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Answered questions regarding mining claim
rentals and royalties.
ACTION NARRATIVE
1:03:39 PM
CHAIR TOM MCKAY called the House Resources Standing Committee
meeting to order at 1:03 p.m. Representatives Rauscher, Baker,
McCabe, Saddler, Wright, Armstrong, Mears, Dibert, and McKay
were present at the call to order.
^PRESENTATION(S): Resource Development Activity
PRESENTATION(S): Resource Development Activity
1:04:39 PM
CHAIR MCKAY announced that the only order of business would be a
Resource Development Activity presentation.
1:05:31 PM
JOHN CROWTHER, Deputy Commissioner, Alaska Department of Natural
Resources (DNR), assured the committee that DNR sees positive
trends in the future for resource development in oil and gas.
He said improvements in technology have unlocked resources
providing new frontiers.
1:06:44 PM
DEREK NOTTINGHAM, Director, Division of Oil & Gas, Department of
Natural Resources (DNR), reported that over the last year the
Willow Project has moved forward after much litigation, as well
as the Pikka Project on the North Slope where drilling has
begun. He began a PowerPoint presentation [hard copy included
in the committee packet]. He showed a list of the following
statistics based on an estimation by the United States Geologic
Survey (USGS): 18.9 billion barrels of oil produced to date;
significant oil production continues from existing and
developing fields; recent large discoveries moving into
development; more than 48 billion barrels of undiscovered oil;
approximately 50 trillion cubic feet of discovered gas;
approximately 194 trillion cubic feet of undiscovered
conventional gas and approximately 125 cubic feet of
unconventional gas - methane hydrates and shale gas. He spoke
about a steady incline in North Slope activity and investment,
mentioning recent finds, Nanushuk and Torok formations, and
legacy fields. Compared to most basins, Alaska is
underexplored. Mr. Nottingham showed a map of cumulative
production sites on the North Slope, reporting there were
approximately 18,883 million barrels of oil (mmbo) produced in
2023. He mentioned Prudhoe Bay, Kuparuk River, and Coville
River and oil fields yet to go into production.
1:12:04 PM
DEPUTY COMMISSIONER CROWTHER, in response to a request, spoke to
the recent history and context of the West Harrison Bay Unit
with relation to Shell. He said DNR obligated Shell to come to
the terms of its lease. He spoke of a broader investment
climate, noted that Shell has applied for another extension,
which is being evaluated, and noted that other producers have
shown interest in the area and DNR is optimistic about the unit
reaching production in the near future. In response to a
question, he related that the extension request from Shell was
for a two-year period.
1:18:56 PM
MR. NOTTINGHAM showed a map of the various oil companies working
on the North Slope. He elucidated that Hilcorp is the only
producer in Prudhoe Bay and Exxon and ConocoPhillips are the
major lease holders. He showed another map related to future
production on the North Slope. He named the following key North
Slope projects with estimated production rates from January 2023
to January 2024: Pikka; Willow; CRU Narwhal CD8; MPU Raven Pad;
and KRU Nuna-Torok units. In response to a question, he
identified which projects were on state or federal lands. He
continued to show a fall 2023 North Slope oil forecast of short-
term and long-term production from 2024 to 2033. He talked
about a fall 2023 statewide oil forecast for Cook Inlet and
discussed the terms: current production (CP), under development
(UD), near term, and under evaluation (UE).
1:33:17 PM
MR. NOTTINGHAM moved on to give an update on the Pikka Project.
He noted that all necessary permits were obtained to begin
construction. He listed the winter '23-'24 construction steps
related to well-drilling, sustained production anticipated in
2026, and two phases of anticipated performance. He anticipated
peak production would be 80,000 barrels of oil per day (bopd)
and additional wells and production as Santos matures.
He gave an updated list of the Willow Project: federal
permitting approval was received in 2023; arguments challenging
federal review to be heard in February before the Ninth Circuit
Court, following favorable decision from the Alaska District
Court; final investment decision announced in December 2023,
pipeline right-of-way permits approved by DNR; and development
activities currently underway. He informed the committee the
anticipated performance would be a peak production of 180,000
barrels of oil per day; 600 million barrels of oil estimated
over the life of the project; and $8-17 billion in royalty and
property tax payments to federal, state, and municipal
governments.
1:35:48 PM
MR. CROWTHER cited a resolution of the legislature in both the
permitting and litigation aspects, with respect to the Willow
Project, would allow the project to move forward.
1:36:28 PM
MR. NOTTINGHAM the Eastern North Slope exploration: a major new
drilling area with potential; an exploration program through
partnership of Armstrong, Santos, and Apache; located south of
the Badami Unit; mobilizing three drilling rigs for three wells
in 2024 and three more in 2025; potential of valuable
information in undeveloped area; north of the recently approved
Grey Owl Unit, owned by Balcony Natural Resources. He next
discussed Cook Inlet exploration and development of undiscovered
resources, including 599 million barrels of mean conventional
oil and 5.3 trillion cubic feet of mean unconventional gasoil
and gas; undiscovered, technically recoverable gas, including
1.2 trillion cubic feet additional mean resource assessed in the
federal Southern Cook Inlet Outer Continental Shelf area, with
legislation proposed by the governor that would make these
prospects more economic for development.
1:40:42 PM
MR. NOTTINGHAM and DEPUTY COMMISSIONER CROWTHER, in response to
a questions, advised there had been some exploratory wells in
the Lower Cook Inlet; current federal policy is limiting access
to resources; state lands and water are directly under control
of DNR; a jack-up rig possibly could be used in Lower Cook
Inlet; there are producers that find the current royalty
structure prohibitive to development; net profit shared leases
(NPSLs) have been put forward thus far attracting six bids from
investors; and several companies have looked into nontraditional
shipping options other than a pipeline.
1:52:38 PM
MR. NOTTINGHAM continued the presentation, addressing DNR's 2022
Cook Inlet forecast, including a histogram of the projected
proved developed and unproved developed gas in Cook Inlet, and
emphasizing that the market demand is at 70 billion cubic feet.
He said DNR assumed 15 new wells per year for this forecast from
2022 to 2041.
CHAIR MCKAY said he was glad to hear about the potential of 15
new wells per annum. He stressed the need to take action now,
because the time to bring in new [oil] rigs would be two to
three years, so time is of the essence.
REPRESENTATIVE MEARS mentioned limitations of equipment are
significant; she asked about the requirements of leaseholders
for oil production.
1:58:31 PM
MR. CROWTHER replied to various questions: Leasing for oil
production brings obligation upon both parties, the lessee to
explore for future wells and DNR; all of the operators have rigs
under development; specific numbers regarding historical net-
profit share leases offered on the North Slope could be provided
at a later date; and Cook Inlet leases are different from other
leases and are highly competitive.
2:04:34 PM
MELANIE WERDON, Director, Division of Geological & Geophysical
Surveys, continued the presentation on slide 1 titled, "Alaska
Mining Industry Update."
MS. WERDON read slide 2, titled "Economic Benefits of Mineral
Industry." [original punctuation provided]:
•$1 billion to 450+ local businesses for goods and services
•$55 million in local-tax and $131 million in state-government
revenue for libraries, road repairs, airports, schools,
public safety
•$266 million in royalty payments to Alaska Native Corporations
•$4.5 million in charitable contributions to ~280 non-profits
•$2.7 million to University of Alaska and vocational schools for
education and workforce development
•11,400 total direct, indirect, and induced jobs
•73% Alaska resident hire at large mines, with employees from 90
communities
•$1 billion in wages statewide
MS. WERDON moved to slide 3, titled "2023 Industry Summary -
Notes." [original punctuation provided]:
•Data and images courtesy of mining and exploration companies
•Presentation and interpretation of data is solely the author's
responsibility
•Incomplete data for full-year 2023 picture -values are
preliminary estimates
•Resource data is presented in metric units unless noted
•Not all active projects are discussed
2:06:54 PM
MS. WERDON moved on to slide 4, titled "Alaska Mine Development
Pyramid," that illustrates the different stages from initial
exploration to mine operation. She informed the committee
"significant investment is needed to move a project up the
pyramid and that a large number of mineral exploration projects
needed to overcome low odds of an eventual mine developing."
2:07:58 PM
MS. WERDON informed the committee on slide 5, titled, "Alaska
Mine Development (continued)," that her portion of the
presentation would focus on the economic evaluation, permitting,
and operating [a mine]. She advanced to slide 6, "2023 Alaska
Mines and Exploration Summary," immediately followed by a
question from Representative Rauscher.
2:08:22 PM
REPRESENTATIVE RAUSCHER asked to go back to "page" 2, regarding
"workforce development," if a potential miner would need an
education specifically in that field.
2:08:42 PM
MS. WERDON replied there is a wide spectrum of miners across the
board from camp construction, food preparation, and technical
fields.
2:09:27 PM
REPRESENTATIVE MCCABE on slide 2, he opined why he did not see
anything on the mental health trust leases; and about how the
cost of electricity would be much higher in Fairbanks if it were
not Kinross [Gold Mining Company].
2:11:10 PM
MS. WERDON read from slide 7, "Alaska Mines - Announced Mine
Lives" [original punctuation provided]:
• Mine life is how long a mine will operate with
currently known reserves and resources
• Not all mines have published mine lives
• Does not mean that mining will end by the announced
date
• Routinely extended by resource drilling and
development work
2:12:04 PM
MS. WERDON moved to slide 8, titled "2023 Alaska Mines -
Production Value." She showed a map of mine locations and
provided the estimated values for the Red Dog, Pogo, Usibelli,
Kensington, Greens Creek, Dawson Au, Fort Knox and Gil Mines.
The left side of the slide emphasized the estimated mineral
production of zinc, lead, gold, silver and coal.
MS. WERDON focused the presentation to operating mines in Alaska
on slide 9, "Kinross Alaska - Fort Knox Mine." She read from
the slide, [original punctuation provided]:
• Kinross poured their 9-millonth ounce of gold on 9/27/2023
at open-pit mine
• 730 employees and 300 contractors
• Expected 2023 production is 285,00-295,00 ounces of gold
• Gilmore (West-Pit) Expansion extends mine life through 2027
• 2023 development work includes modifying mill in
preparation for Manh Choh ore
• 3.3 million ounces of gold reserves and resources (as of
12/31/2023)
2:13:59 PM
MS. WERDON moved to slide 10, titled "Kinross Alaska-Gil Mine
(Fort Knox Satellite)." She read from the slide [original
punctuation provided]:
• Gil Mine is 8 miles east of Fort Knox Mine and a different
ore type (schist versus granite)
• Ore trucked from open pit to Fort Knox mill using an
existing road network
• Mining began in October 2021, with expected 2-year mine
life, but mining continues
• Expected to produce ~160,000 ounces of gold over a 2-year
mine life
• Mine added 80-100 jobs to Kinross workforce
2:14:50 PM
REPRESENTATIVE MCCABE said he toured Kinross this summer and
found all but one of the employees lived in Fairbanks. He
thought Alaska needs to celebrate Kinross mine for its' jobs,
longevity and the economic infusion to Fairbanks.
2:16:18 PM
MS. WERDON proceeded to slide 11, titled "Coeur Alaska -
Kensington Mine." She read from the slide [original punctuation
provided]:
• Underground, quartz vein-hosted gold
• 386 employees
• 2023 expected production between 81,000-85,000 ounces of
gold, with 58,103 ounces of gold produced through Q3 2023
• Current mine life through 2026, with 1.5 years of mine life
added as of year-end 2022 by aggressive exploration
drilling
• Mining Kensington, Jualin, Raven, Elmira veins
• New ore zone recently discovered
• Development and exploration drilling continues
2:16:55 PM
MS. WERDON moved to slide 12, titled "Northern Star Resources -
Pogo Mine," and read from the slide [original punctuation
provided]:
• Underground, quartz vein-hosted gold
• 650 employees
• ~4.8 million ounces gold mined since 2005
• 187,837 ounces of gold produced through Q3 2023; 250,000
ounces gold forecast for 2023
• Concentrated drilling at Goodpaster target northwest of
mine, with 2022 announced resource of 1.1 million ounces of
gold
• Focusing on optimization initiatives to reach 300,000
ounces of gold annual production
2:18:03 PM
MS. WERDON moved to slide 13, titled "Hecla Mining - Greens
Creek Mine," and read the bulleted items [original punctuation
provided]:
• Underground, polymetallic massive sulfide deposit
• 495 direct jobs
• 2023 expected production is 9.8 - 10.0 M ounces (oz.)
silver; 55,000 - 65,000 oz. gold; 47,000 metric tonnes (T)
zinc; 17,000 T lead
• Current reserve mine life through 2037, with ore tonnes
doubled over past 15 years
• Currently mining East Ore Zone and Upper Plate reserves
• Development and exploration drilling continues
2:18:57 PM
MS. WERDON moved to slide 14, titled "Teck Alaska - Red Dog
Mine." She read the slide contents [original punctuation
provided]:
• Open pit, polymetallic sulfide deposit
• 600 direct jobs and 700 contractors (52% of all workers are
NANA shareholders
• 2023 expected production is 545,00 - 575,000 tonnes zinc;
95,000 - 110,000 tonnes lead
• ~7 million ounces silver, and byproduct germanium
• Current mine life through 2031, with good potential to
extend mine life with nearby deposits
2:19:45 PM
REPRENTATIVE BAKER spoke about workforce development and multi-
generational staff at Red Dog Mine because of on-the-job
training and upward mobility specifically at that mine.
2:20:55 PM
REPRESENTATIVE MCCABE believed soon [Red Dog Mine communities]
will have a world class fishing river due to the removal of zinc
from the watershed by the mine.
2:21:40 PM
MS. WERDON explained slide 15, titled "Sundance Mining Group -
Dawson Mine," which read [original punctuation provided]:
• Underground, gold-quartz vein system
• Near Hollis, Prince of Wales Island
• Initial production in 2019; 50 workers
• Mill averages ~150 short tons/day and uses gravity
separation
• Produced 12,821 ounces of gold in 2021; gold production is
similar in 2022 and 2023
2:22:28 PM
MS. WERDON read from slide 16 next, titled "Usibelli Coal Mine,"
that stated [original punctuation provided]:
• Mining since 1943, with 2021-2023 yearly production of
about 1,000,000 short tons of coal
• Regional Interior Alaska electricity generation
• 104-person workforce
• Early September 2023 met 1,000 days without a Lost Time
Accident (>1,100 days and counting!)
• Researching potential to extract Critical Minerals and
Rare-Earth Elements from coal and coal byproducts
2:23:47 PM
REPRESENTATIVE MCCABE championed the Usibelli Mine because of
its' heart for the environment. He reported there has been 1122
days since an accident which is cause for celebration and
emphasized the use of coal as a clean resource.
2:25:24 PM
MS. WERDON moved to slide 17, titled "2023 Developments that
Initiated Mining," that showed the number of projects currently
operating. She advanced to slide 18, titled "Kinross/Contango
ORE Manh Choh," that read as follows [original punctuation
provided]:
•Kinross 70% interest/ Contango ORE 30% interest
•Groundbreaking ceremony on August 29, 2023
•Trucking ore on state highway system from Tok to Fort Knox
mill (225 miles); lawsuit filed on October 23, 2023 against
Department of Transportation & Public Facilities regarding
ore haul
•Planned production from 2024 to 2028 of 3,000 tons per
day, mixing this ore and Fort Knox ore
•Adds estimated 500-600 jobs in Tok and Fairbanks areas
•Estimated mine life is 4.5 years, with about 220,000
ounces of gold produced per year
2:26:40 PM
CHAIR MCKAY questioned whether the lawsuit over trucking the ore
from Tok to Fort Knox lawsuit would shut down the project.
2:27:04 PM
MS. WERDON believed the project was still operating and would
follow-up with the committee.
2:27:32 PM
MS. WERDON advanced the presentation to slide 19, "2023
Permitting to Economic Evaluation," in concert with slide 20,
"Pebble Limited Partnership Pebble," which read as follows
[original punctuation provided]:
• First- or second-largest porphyry copper deposit in the
world
• Projected 20-year life-of-mine production: 6.4 billion
pounds copper, 7.3 million ounces gold, 300 million pounds
molybdenum, 37 million ounces silver, 254 short tons
rhenium, and byproduct palladium
• 12/1/2022 - U.S. Environmental Protection Agency (EPA)
"Clean Water Act Section 404(c)Recommended Determination"
to prohibit/restrict use of Bristo Bay watershed for
developing Pebble deposit
• 2023: State filed suit against U.S. EPA with U.S. Supreme
Court
2:29:02 PM
MS. WERDON moved to slide 21, "Donlin Gold - Donlin Project"
which read as follows [original punctuation provided]:
• Barrick Gold Corp./NovaGold Resources Inc. (50/50
interests)
• Proposed open-pit gold mine; in permitting stage
• Mine life of 27 years, with annual production of 1.1
million ounces of gold
• Proposed $34 million for 2023 field season for geotechnical
and hydrologic fieldwork, permitting activities, and mine-
optimization studies
• Lawsuit filed in April 2023 challenging issuing of permits
and adequacy of 2018 environmental review by U.S. Army
Corps of Engineers
2:30:22 PM
MS. WERDON moved to slide 22, titled "Ambler Metals - Arctic
Project," which read as follows [original punctuation provided]:
• South32 Limited/Trilogy Metals Inc. (50/50 interest) in
Ambler Mining District, with numerous copper-zinc-lead-
silver-gold-cobalt prospects
• Arctic project, at the feasibility stage, is the most
advanced-stage project in district (nearby Bornite project
is at pre-feasibility stage)
• Calculated 13-year mine life with projected production of
149 million pounds of copper, 173 million pounds of zinc,
26 million pounds of lead, 32,538 ounces of gold and 2.8
million ounces of silver
• Mine project depends on the Ambler Access Project
2:31:20 PM
MS. WERDON moved to slide 23, "Ambler Access Project," which
read as follows [original punctuation provided]:
• Ambler Metals/AIDEA (50/50) formed public-private
partnership to build a proposed 211-mile controlled-use
industrial access road
• 2023 field season for pre-development studies with $24.6
million budget; employed 30+ local residents
• U.S. Bureau of Land Management (BLM) published a Final
Environmental Impact Statement (EIS) in March 2020 and a
Record of Decision (ROD), with rights-of-way issued January
2021; BLM subsequently required a Supplemental EIS
• BLM published draft Supplemental EIS during Q3 2023
• BLM planning Final Supplemental EIS in 1Q 2024; ROD in 2Q
2024
2:33:10 PM
REPRESENTIVE BAKER added to the Amber Access Project discussion
and the economics in that part of the state. He reported that
the cost of diesel is 20 dollars in his district, conversely
communities near the Red Dog mine benefit from lower fuel costs
from the mine.
2:34:24 PM
MS. WERDON moved to slide 24, titled "Graphite One - Graphite
Creek," with the following bullet points [original punctuation
provided]:
• USA's largest large-flake graphite deposit, with more than
10 miles of potential extension
• Announced upgraded graphite resource March 2023
• Received $4.7 million U.S. Department of Defense (DoD)
grant to develop fire-suppressant foam
• Received $37.5 million DoD matching grant to accelerate
publishing a new feasibility study
• $2.0 million investment by Bering Straits Native
Corporation
• Aggressive exploration, with 57 core holes drilled in 2023;
all holes with visible graphite (up to 27%)
2:35:56 PM
MS. WERDON moved to slide 25, titled "2023 Exploration
Expenditures All Projects," with a graph of expenditures from
1998 to 2022 in millions of dollars. She explained the
estimated mineral exploration in 2023 would be $230 million of
expenditures.
2:36:43 PM
MS. WERDON moved to slide 26, titled "2023 Alaska Exploration by
Deposit Type" with a pie chart of the percentages of minerals in
the state.
2:37:17 PM
REPRESENTATIVE SADDLER asked if it was a massive sulfide
deposit.
2:37:34 PM
MS. WERDON replied it is very high grade and massive sulfide.
She said, for instance, Red Dog Mine had many different ore
types with a range of characteristics.
2:38:59 PM
MS. WERDON moved to slide 27, titled "2023 Advanced to Early
Exploration," that showed a map of mining projects in the state.
She continued to slide 28, titled "2023 Advanced to Early
Exploration," as reminder of the number of projects in the
permitting phase.
2:39:35 PM
MS. WERDON read from the list on slide 29, titled "Additional
Significant Mineral Projects," which read as follows [original
punctuation provided]:
• Aktigiruq/Anarraaq/Lik (zinc-lead-silver-germanium-barite),
near Red Dog Mine
• Wishbone Hill (coal)
• Livengood (gold)
• Illinois Creek/Waterpump Creek/Last Hurrah (polymetallic)
• Golden Summit (gold), near Fort Knox Mine
• Estelle (gold) and Whistler (copper), proposed West Susitna
Access Corridor
• Herbert (gold)
• Sun (polymetallic), Ambler Mining District
• Bornite (copper-cobalt-zinc), Ambler Mining District
• Lucky Shot (gold)
• Johnson Tract (polymetallic)
• Palmer (polymetallic)
• Pogo Mine area (gold)
• Nikolai project (nickel-copper-cobalt-palladium)
2:40:00 PM
MS. WERDON explained another project on slide 30, "Teck - Red
Dog Area Exploration" [original punctuation provided]:
• Aktigiruq = Anarraaq = Lik, near Red Dog; State land
• Sediment-hosted deposits with significant zinc, lead,
silver, and barite resources; byproduct germanium
• 2023: conducted resource-definition drilling at all
projects
• Primary focus is Aktigiruq scoping-level studies for an
underground mine leveraging existing mill and supporting
facilities at Red Dog Mine
• DNR approved Pland of Operations for access road in 2022
• Waiting from unfinished Environmental Assessment and Final
Decision from U.S. Army Corp of Engineers - federal Section
106 Process (cultural review)
MS. WERDON added that about five years ago, Teck announced this
discovery.
2:42:07 PM
MS. WERDON moved to slide 31, titled "DOWA-American Pacific
Palmer," that listed the mineral deposits in Southeast Alaska
[original punctuation provided]:
• American Pacific Mining & Dowa Metals & Mining Alaska Ltd.
• Copper-zinc-silver-gold-barite deposit near Haines
• Preliminary Economic Assessment-stage project
• 2023: Drilled 27 holes to refine resource in the South Wall
resource area; metallurgical studies
• Geotechnical and hydrological drilling, environmental
baseline studies, and permitting
• Preparing for a Feasibility Study
2:43:08 PM
MS. WERDON proceeded to slide 32, titled "Nova Minerals
Estelle," which read as follows [original punctuation provided]:
• Gold-bearing quartz veins in plutonic rocks; state land in
west-central Alaska Range
• Early-stage exploration project
• 2021-2023: Large drilling programs at Kobel and RPM
deposits
• Updated mineral-resource estimate in March 2023
• Conducting regional exploration at other prospects
2:43:57 PM
MS. WERDON moved to slide 33, titled "Division of Mining, Land
and Water." She deferred to Jeff Buckley online.
2:44:27 PM
MR. CROWTHER added that they just wanted to provide an overview
to the committee in slide 34, "Mining Section Overview." He
informed the committee some of the projects are on state land
and some are not. He stated regulatory efforts are in place at
these mines [original punctuation provided]:
• Mineral Property Management
• Manage 37,000+ mining claims for mineral exploration and
development
• 87 Offshore and 48 Mining Leases
• APMA (Application for Permits to Mine in Alaska)
• 684 APMA's for hard rock exploration and placer mining
• Approval of Plans of Operations for Upland, Offshore, &
Millsite Leases
• Large Mines
• Oversees statewide reclamation requirements and large
mines
• Coal Permitting & Compliance
• 36 Coal Leases
• Abandoned Mine Lands
• Regulates reclamation and removes hazards from past
mining operations
2:45:33 PM
MR. CROWTHER forwarded to slide 35, titled "Mining Statistics,"
that showed a histogram with the number of mining claims from
2016 to 2023. He quickly moved to slides 36 and 37 that showed
the total acreage of mining claims and the closing of mining
claims, respectively.
2:46:40 PM
MR. CROWTHER moved to slide 38, titled "Mining Revenue," that
showed state mining revenue from 2015 to 2021.
2:46:54 PM
REPRESENTATIVE SADDLER asked whether the graph on slide 38
includes all sources of revenue that the state obtains from
mining, such as taxes, penalties, fees, etcetera.
MS. WERDON deferred to Mr. Buckley.
2:47:39 PM
STEVE BUCKLEY, Mining Section Chief, Department of Natural
Resources (DNR), stated that the numbers represent claim rentals
for state mining claims and royalties.
REPRESENTATIVE SADDLER sought to confirm that the slide does not
include mining license tax or income taxes.
MR. BUCKLEY said, "That's correct."
2:48:44 PM
MR. CROWTHER concluded on slide 39, "Permits to Mine in Alaska,"
that showed the number of applications for mining permits from
2019 to 2023.
2:51:47 PM
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 2:51 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Cook Inlet Oil and Gas Activity Map.pdf |
HRES 1/19/2024 1:00:00 PM |
|
| North Slope Oil and Gas Activity Map.pdf |
HRES 1/19/2024 1:00:00 PM |
|
| Cook Inlet Working Interest Ownership Map.pdf |
HRES 1/19/2024 1:00:00 PM |
|
| North Slope Working Interest Ownership Map.pdf |
HRES 1/19/2024 1:00:00 PM |
|
| OPMP Brief - Coordinated Mine Projects 1-19-2024.pdf |
HRES 1/19/2024 1:00:00 PM |
|
| 2024 01 19 HRES DNR Alaska Mining Overview v2.pdf |
HRES 1/19/2024 1:00:00 PM |
|
| 2024 01 19 HRES DNR Oil and Gas Update v2.pdf |
HRES 1/19/2024 1:00:00 PM |