State denies Florida company's bid to expand oil unit on the Arctic refuge border

The state has turned down a Florida company's request to grow its oil and gas unit along the western edge of the Arctic National Wildlife Refuge, saying the three leases it wanted to add had already expired and its own data showed no oil or gas beneath them.

Donkel Oil & Gas, based in Winter Springs, Florida, operates the Greater Point Thomson Unit, which lies offshore the eastern North Slope along the Staines River and the refuge boundary, according to the Department of Natural Resources. The unit covers 49,562 acres. The expansion would have added about 5,630 more.

In a decision signed Sept. 18, Division of Oil and Gas Director Haley Paine said the three leases expired under state law because Donkel applied on Feb. 27, 43 days after the extra time the leases had been given ran out. Donkel maintains that it filed on time and that the leases are still in effect. The division said it strongly disagrees.

The division also rejected the request on its merits. It said the confidential data Donkel submitted did not show that the expansion area holds all or part of an oil or gas reservoir, or even a potential accumulation.

Donkel can appeal to Natural Resources Commissioner John Crowther within 20 days of the decision, or by about Oct. 8.