State proposes 50-year Deadhorse Airport lease for an oilfield camp and yard

The Alaska Department of Transportation and Public Facilities proposed Tuesday to lease nearly 11 acres at Deadhorse Airport to Delta Leasing LLC for 50 years, for a worker camp and an oilfield equipment yard.

Delta Leasing would pay about $133,000 a year plus fees, according to the lease notice. That works out to about 28.5 cents per square foot, the same rate as a 38-year lease the department proposed at the airport in May for an oil and gas laydown yard.

The notice lists the uses as non-aeronautical: a gravel pad, camp modules housing only the company's employees and subtenants, a vehicle and equipment maintenance facility, and space to park, stage, maintain and lease vehicles and oilfield support equipment.

Non-aviation uses at the state's rural airports must not interfere with flying and typically need federal approval and fair market rent, according to the department's leasing guide. Federal rules require lease revenue to go back into airport projects and maintenance.

The department has proposed several Deadhorse Airport leases and extensions this year for oilfield-related uses, including drilling equipment storage, logistics, communications and employee housing. Some were no-bid, including a five-year extension for the North Slope's phone co-op. This one is open to competing applications.

Competing applications and written comments are due by 4:30 pm Nov. 30.