State denies Donkel unit expansion near ANWR, finding the leases already expired

The Alaska Division of Oil and Gas denied an application from Donkel Oil & Gas, LLC to expand the Greater Point Thomson Unit, finding the three leases had expired and its data showed no oil or gas in the ground at issue.

Division Director Haley Paine signed the 38-page decision Sept. 18. It says leases ADL 392127, 392128 and 392132 expired as a matter of law because Donkel, a Florida company, filed the application Feb. 27, 43 days after the tolling period closed. Donkel asserts the filing was timely and the leases remain in force; the division said it strongly disagrees.

On the merits, it said Donkel's confidential data "does not demonstrate that the proposed expansion area includes all or part of an oil or gas reservoir" or potential accumulation. The unit, which Donkel operates, covers 49,562 acres; the expansion would have added about 5,630.

Written comments closed at 4:30 p.m. July 21, directed to unit manager Mark Villarreal. None came. An appeal to Natural Resources Commissioner John Crowther is due within 20 days of issuance, about Oct. 8, at [email protected].