DNR reviewing core hole drilling request

Public comments oppose project

By RINDI WHITE-Frontiersman reporter

MAT-SU -- More than 110 public comments were received regarding core holes to be drilled at seven potential locations around the Valley, and few were in favor of the project.

"The vast majority were opposed to issuing them at this time," said Matt Rader, with the Department of Natural Resources Division of Oil and Gas. Rader said a decision is pending on whether or not the core holes will be permitted.

In an application submitted to DNR, Evergreen Resources Alaska Inc. proposed to drill core holes at the seven Valley locations. According to information from DNR's request for comments, the purpose of the holes is to drill for geological information only -- no dewatering of the coal seams or gas production is involved. According to information from the department, the process is expected to take about eight weeks, and was set to begin this month. The work would be done under the umbrella of a $500,000 statewide operations bond in Evergreen's name.

Three sites proposed for drilling are on state-owned land north of Kashwitna Lake, north of Willow-Fishhook Road and near the mouth of Sheep Creek. Rader said three other sites are on Mental Health Trust Authority land, and one site is on private land near the Little Susitna River.

In addition to the actual drilling process, some site preparation will be needed in order to get to the drill site. That may include clearing access to the site and constructing 45-by-60-foot drill pads. If approved, drilling will take place 24 hours a day for about two weeks at each site, using a compact, truck-mounted unit.

Local groups and residents opposing the request have repeatedly mentioned a similar request made in the Talkeetna area, in which a similar instance was made but later dropped by both DNR and Evergreen after 17 public comments were received strongly objecting to the drilling.

The difference, Rader said, is that the opposition in Talkeetna was to leasing land, not drilling core holes on land already leased.

"This is a separate action on existing leases," Rader said.

The pending decision whether to approve or deny the leases is significant, not only that it will be the first activity outside the Pioneer Unit, a leased area south of Wasilla once held by Unocal and, more recently, transferred to Evergreen. The area has been involved in gas production in one way or another since 1994.

Several opposed to drilling in the Valley -- or opposed to allowing drilling before new regulations specifically applicable to shallow-gas drilling in a more densely populated area -- have taken up a rally cry asking the state to buy back the leases held by Evergreen Resources outside the Pioneer Unit. Permitting the core holes to be drilled, they say, would significantly raise the cost of a potential buyback by the state.

But Gov. Frank Murkowski Monday issued a press release stating that a buyback isn't likely.

"The state will consider buybacks of shallow natural gas leases only as a last resort," Murkowski said in a Dec. 4 press conference. "Prior to approving any coal-bed methane development, the Department of Natural Resources will make a determination as to whether additional site-specific measures are necessary, given the particular values of the location. Until DNR's public process is complete and the companies have determined where development might occur, it is premature to consider buybacks."