Alaska Department of Natural Resources Division of Oil & Gas

The principal statutes authorizing the licensing and leasing of state lands for geologic carbon storage are found under Title 38, Chapter 5, Article 15A, Carbon Storage Exploration Licenses; Leases (AS 38.05.700 – AS 38.05.795).

The program is designed to first allow for exploration licensing, which is modeled after the oil and gas exploration license program. A license grants an exclusive right to explore a defined area for reservoirs suitable for underground carbon storage. During the 5-year exploration term, a license holder will characterize the subsurface, performing the analysis necessary to apply for a carbon storage facility permit from the Alaska Oil & Gas Conservation Commission (AS 41.06.105 – AS 41.06.210). Upon receiving a facility permit, the land under license is converted to a lease (AS 38.05.715). The carbon storage lease will authorize the use of the State's pore space for underground carbon storage.

Regulations for implementing these statutes have been adopted and will be effective on February 16, 2025.

Please note this program is distinct from the Carbon Offset Program, which authorizes the Department of Natural Resources to use the state's surface resources, such as forests, for tradable carbon offset credits. For more information about that program, please visit their website within the Office of Project Management & Permitting.

When DNR receives a carbon storage exploration license application, it will take a hard look at the proposed project and the qualifications of the applicant to carry out the project, as required under AS 38.05.710(a) and 11 AAC 84.1000. Once this evaluation is completed, DNR will publish notice and solicit public comments and competing proposals, per AS 38.05.710(b). If competing proposals are received and accepted, then a best interest finding (BIF) will be issued before a competitive bidding process is conducted.

If no competing proposals are received and accepted, then a BIF will be issued for the proposed exploration project area. Within the BIF, DNR will evaluate the geologic conditions of the area, its current and projected uses, reasonably foreseeable cumulative effects of carbon storage operations, and mitigation measures to protect against impacts. This analysis is shared with the public in a preliminary Best Interest Finding, where comments are sought to assist DNR in determining whether the licensing of the pore space is in the state’s best interest.

An exploration license does not authorize on-the-ground activities such as seismic surveys or drilling test wells. Further permits for specific activities are required and have public notice requirements. Public notices will be published on the Division of Oil & Gas Newsroom.Sign up to receive public notices by email here. Public notices will also be published in newspapers.

The State owns over 100 million acres, and is entitled to approximately 105.8 million acres, through pre-statehood and statehood land grants, which encompasses both fee title and mineral estate ownership. Land status and records can be researched through the DNR Land Administration System (LAS), DNR Alaska Mapper, and the DNR Recorder’s Office. For additional land status and ownership research tools and assistance with your application, please contact the Leasing Section.

Carbon Storage Exploration License Application

Well and carbon storage facility permits are issued by AOGCC. In May 2023, AOGCC was given the authority to pursue primacy over Class VI underground injection wells, those used for the geologic sequestration of carbon dioxide. For more information on the status of this program please visit their website.

Like DNR, AOGCC has a robust public process, including public hearings and opportunities to comment during its review of a carbon storage facility permit. AS 41.06.125 requires notification for surface landowners and anyone with mineral rights within one-half mile of the boundaries of a proposed carbon storage reservoir. Sign up for AOGCC notices here.

To learn more about Alaska’s carbon storage potential, download the Alaska Geologic Carbon Sequestration Potential Estimate (2011), which provides a qualitative screening of Alaska’s sedimentary basins and quantitate estimate of its unmineable coal seams. Well and geologic data can be obtained from the Alaska Oil & Gas Conservation Commission and the Department of Geological and Geophysical Surveys. The Division of Oil & Gas is building a database for information to assist carbon storage companies with site selection, which is expected to be published in the first quarter of 2026.