• Plan of Operations

    Land use activities on state oil and gas leases are regulated by 11 AAC 83.158 and paragraphs 9 and 10 of the lease contract. These require the lessee to prepare a plan of operations that must be approved by ADNR through DO&G and by any other interest holder, if ownership is shared, before the lessee may commence any activities on the lease. Except for equipment uses exempted under 11 AAC 96.020, the lessee must prepare a plan of operations and obtain all required approvals and permits for each phase of exploration, development, or production prior to implementation of that activity. All permit applications and plans are available for public review.

    An application for approval of a plan of operations must contain sufficient information, based on data reasonably available at the time the plan is submitted in order for the Commissioner to determine the surface use requirements and impacts directly associated with the proposed operations. An application must include statements and maps or drawings setting out the following:

    Other stipulations, in addition to the mitigation measures already developed at the lease sale stage, may be required at the plan of operations approval stage. These will address site-specific concerns directly associated with the proposed project. The stipulations and the terms and conditions of the lease are attached to the plan of operations approval and are binding on the lessee. Lease activities are field monitored by ADNR, ADEC, ADF&G, and AOGCC to ensure compliance with each agency's respective permit terms. Paragraph 16 of the lease contract requires that the lessee keep the area of activity open for inspection by authorized state officials. The lessee must post a $500,000 statewide bond to cover a drill site. Lease operations approvals are generally granted for three years.