State proposes giving the North Slope Borough 583 acres in the Kuparuk oil field

The Alaska Department of Natural Resources proposed Thursday to give the North Slope Borough about 583 acres of state land in the Kuparuk River oil field. The state would keep about 185 acres the borough also wanted, which hold part of the Kuparuk Operations Center, field roads and pipelines.

Under state law, boroughs are entitled to a set amount of state land, which they select and the state approves or rejects. The North Slope Borough was granted 89,850 acres in 1972 and has about 64,533 acres left to claim, according to the department's preliminary decision.

The land borders the Ugnuravik River about 28 miles west of Deadhorse, just south of the Ugnu-Kuparuk Airport. The state would keep the part of the selection in Section 9. That area holds part of the operations center and a small piece of its runway. It also holds the stretch of spine road that is the only route to oil operations to the west, and three pipeline rights-of-way.

The borough would get only the surface. The state would keep the oil, gas and other minerals, and the land would remain subject to ConocoPhillips' oil and gas leases. The borough could not dispose of the land until it is surveyed, at the borough's expense, and ownership is transferred.

Some state offices recommended keeping more of the land during reviews in 2022 and 2025. In the first round, the selection also included a gravel pit known as Mine Site C. The Division of Oil and Gas permitting staff objected to the entire selection, citing the operations center, the runway, the road and the pit. The department's Northern Regional Office objected to giving up the pit, which had produced more than 12 million cubic yards. "Retention of this pit is critical so the State can ensure continued availability of material for oilfield development," the office wrote.

The borough dropped the pit from its selection in October 2023, and it would stay with the state.

In the second round, the department's resource assessment staff recommended giving the borough only Sections 16 and 17. The decision also includes 35 acres in Section 8. That land holds no infrastructure, and it would let the borough reach its land in Sections 16 and 17 without using the section-line easement through the gravel pit, the decision says.

The state pipeline coordinator asked to keep the pipeline rights-of-way, for their rent and for oversight. All three are in Section 9.

The department's Land Conveyance Section concluded that the state's interest in keeping the 583 acres does not outweigh the borough's interest in getting them. Written comments are due by 4:30 pm Nov. 24, and only people who comment can appeal the final decision.