Company proposes to expand coal lease to oil and gas

MAT-SU -- Public comment is still being taken on a 1,200-acre lease of Mental Health Trust Authority land in the Sutton area.

The land is under an existing coal lease held by Knoll Acres Associates LLC which, according to the Alaska Department of Commerce, is located in Boise, Idaho.

Mike Franger, senior trust resource manager with the Alaska Mental Health Trust Authority land office, said a coal lease has existed on the property for several years, although it hasn't been productive recently. Knoll Acres has applied to have the lease expanded to include oil and gas development activities.

"It just gives them the opportunity to, at some point, look for oil and gas," Franger said.

Alaska statutes allow the executive director of the Alaska Mental Health Trust Land office to determine whether to lease land.

According to information from the land office, David Hanson, executive director of the trust, has decided it is in the best interest of the Alaska Mental Health Trust and its beneficiaries to move forward with the proposed lease.

Written public comments are being accepted on the proposed lease until 4:30 p.m. Nov. 26.

To comment on the proposed change, send written comments to Trust Land Office, Attn: Mike Franger, 718 L. St., Suite 202, Anchorage, AK 99501.