RAPID/Roadmap/5-AK-a
Alaska Drilling and Well Development (5-AK-a)
Drilling and Well Development Process
1
5-AK-a.1 to 5-AK-a.2 - Has the Environmental Process Been Completed for Drilling?
At this stage, it is necessary to revisit the environmental process to determine if any other environmental permits are required and to determine if ADNR needs to issue a Best Interest Finding.For more information on the Environmental Overview process, see:
5-AK-a.3 to 5-AK-a.4 - Has the Developer Secured the Water Rights Required to Divert and Use a Geothermal Resource?
Relationship of geothermal resources to water
A developer must apply for a receive a permit from the AOGCC before drilling a well in search, or in support of the recovery or production of, geothermal resources. Alaska Stat. § 41.06.050(a). The application must contain sufficient information to enable to determine whether the proposed operation of a well will interfere with or import a prior water right. Alaska Stat. § 41.06.050(b). In determining whether a permit application will be accepted, the AOGCC will consider whether the proposed will significantly interfere with or substantially impair a prior water right.
If the project will divert, impound, or use a significant quantity of surface or groundwater, the developer must obtain a water right from the Alaska Division of Mining Land and Water. For more information on Alaska’s Water Access and Water Rights issues, see:
Water Access and Water Rights Issues:
19-AK-a
5-AK-a.5 - Contact AOGCC and Hold Pre-Application Meeting (Optional)
AOGCC suggests that all developers contact their regional office and set up a pre-application meeting before application to ensure all information is correctly included the in the application materials. If necessary, a variance from the AOGCC regulations is possible as provided for under Alaska Admin. Code tit. 20, § 25.715.
5-AK-a.6 - Permit to Drill (Form 10-401)
All wells drilled in support or in search of the recovery or production of geothermal resources must comply with the regulations contained in 20 AAC 25.705-.740. The developer should submit a Permit to Drill (Form 10-401) before drilling or redrilling a well or re-entering an abandoned well (20 AAC 25.005(a)). Upon application, the AOGCC will classify a well as:
- Exploratory;
- Development, either oil or gas;
- Service; or
- Stratigraphic test.
Alaska Admin. Code tit. 20, § 25.005(b).
An application for a Permit to Drill must include the following items:
- A plat identifying the property and the property's owners and showing:
- the coordinates of the proposed location of the well at the seufrace;
- the coordinates of the proposed location referenced to the state plane coordinate system;
- the prposed depth of the well; and
- any other information required by AAC 25.050(b);
- A diagram and description of the blowout prevention equipment (BOPE);
- Information on drilling hazards;
- A description of the procedure to conducting formation integrity tests;
- A complete proposed casing and cementing program;;
- A diagram and description of the diverter system;;
- A drilling fluid program;
- For exploratory or stratigraphic test wells, a tabulation setting out depths of predicted abnormally geo-pressurized strata;
- (for exploratory or stratigraphic test wells) a seismic refraction or reflection analysis as required by 20 AAC 25.061(a);
- For a well drilled from an offshore platform, mobile bottom-founded structure, jack-up rig, or floating drilling vessel, an analysis of seabed conditions
- Evidence showing that the requirements of 20 AAC 25.025 have been met;
- A copy of the proposed drilling program;
- A general description of how the operator plans to dispose of drilling mud and cuttings.
[ https://www.akleg.gov/basis/aac.asp 20 AAC 25.005(c)].
5-AK-a.7 to 5-AK-a.8 - Review Application Materials for Completeness
The AOGCC will not review application materials unless they are complete and include all applicable required documents and fees as described above.
If the application is complete, it is forwarded to the three AOGCC Commissioners for their review.
5-AK-a.9 - Public Notice and Comment Period
Notice of the application is published by AOGCC on their webpage and the public is given an opportunity to comment on applications before they are submitted to the Commissioners for their approval or denial of the proposed permit.
5-AK-a.10 to 5-AK-a.11 - Is a Written Request Filed or Does AOGCC Require a Hearing?
The AOGCC will, on its own motion or of a written request, hold a public hearing within the jurisdiction of the proposed well. Hearing procedures are described in 20 AAC 25.540.
5-AK-a.12 - Surety Bond (Form 10-402A); or Personal Bond (Form 10-402B)
A developer proposing to drill a well which requires a permit must file a bond and, if required, security to ensure that each well is drilled, operated, maintained, repaired, and abandoned and each location is cleared in accordance with 20 AAC 25.025.
Bond: The bond must be either:
- a surety bond issued on Form 10-402A; or
- a personal bond of the operator on Form 10-402B accompanied by security guaranteeing the operator’s performance.
Security: Security must be in the form of a certificate of deposit or irrevocable letter of credit issued in the sole favor of the AOGCC by a bank authorized to do business in the state, or must be in another form that the commission determines to be adequate to ensure payment
5-AK-a.13 to 5-AK-a.14 - Permit to Drill
If the application is approved by the AOGCC, a letter to the operator is attached to one copy of the application and returned by courier or mail. This letter grants approval for the drilling operations, and it presents any stipulations identified by the Commission concerning operational or environmental safety. It also provides notification that the permit to drill does not exempt the operator from obtaining additional permits or approvals required by law from other governmental agencies, and it does not authorize conducting drilling operations until all other required permits and approvals have been issued.
Every well branch requires a separate Permit to Drill and will be designated by a unique name designated by the operator and a unique API number assigned by the AOGCC.
The regulatory cost of any geothermal well with a valid permit to drill will be subject to regulatory cost as required under 20 AAC 25.720. The cost required is determined by the following formula:
- RCCg = Vgop/Vgot*(Ag-Lg)
- RCCg = the regulatory cost charge for geothermal wells
- Vgop = the total volume of geothermal resources produced from the wells with a permit to drill
- Vgot = the total volume of geothermal resources and all fluids injected into the ground for wells with a permit to drill
- Ag = the appropriation made for the operating costs
- Lg = the lapsed amount of a previous appropriation that is appropriated for this year
Alaska Admin. Code tit. 20, § 25.720(a).
Before determining regulatory cost charges for a fiscal year, the AOGCC may establish regulatory costs charges for geothermal wells to be paid during the first quarter of the fiscal year. Alaska Admin. Code tit. 20, § 25.725(a).
5-AK-a.15 - Completion and Operations Reports Required Under Specific Permit to Drill
If drilling operations are not commenced with 24 months after the commission approves an application for a Permit to Drill, the Permit to Drill expires. 20 AAC 25.005(g).
Once the drilling operations have ceased or there arises a reason for suspension of operations, the developer must file a WEllCompletion or Re-Completion Report and Log (Form 10-407).Abandonment procedures fall under 20 AAC 25.105 and suspension of operations procedures fall under 20 AAC 25.110.
Contact Information
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Alaska Department of Natural Resources
Geothermal Contact
(907) 465-3427