August 2, 2019 GULF OF ALASKA OIL AND GAS EXPLORATION LICENSE Preliminary Written Finding of the Director Recommended citation: DNR (Alaska Department of Natural Resources). 2018. Gulf of Alaska oil and gas exploration license. Preliminary written finding of the director. August 2, 2019. Questions or comments about this preliminary finding should be directed to: Alaska Department of Natural Resources Division of Oil and Gas 550 W. 7th Ave., Suite 1100 Anchorage, AK 99501-3560 Phone 907-269-8800 The Alaska Department of Natural Resources (DNR) administers all programs and activities free from discrimination based on race, color, national origin, age, sex, religion, marital status, pregnancy, parenthood, or disability. The department administers all programs and activities in compliance with Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, Title II of the Americans with Disabilities Act (ADA) of 1990, the Age Discrimination Act of 1975, and Title IX of the Education Amendments of 1972. If you believe you have been discriminated against in any program, activity, or facility please write to: Alaska Department of Natural Resources ADA Coordinator P.O. Box 111000 Juneau AK 99811-1000 The department’s ADA Coordinator can be reached via phone at the following numbers: (VOICE) 907-465-2400, (Statewide Telecommunication Device for the Deaf) 1-800-770-8973, or (FAX) 907-465-3886 For information on alternative formats and questions on this publication, please contact: DNR, Division of Oil and Gas 550 W. 7th Ave., Suite 1100 Anchorage, AK 99501-3560 Phone 907-269-8800. GULF OF ALASKA OIL AND GAS EXPLORATION LICENSE Preliminary Written Finding of the Director Prepared by: Alaska Department of Natural Resources Division of Oil and Gas August 2, 2019 Contents Page Chapter One: Director’s Preliminary Written Finding and Decision A. Director’s Preliminary Written Finding ................................................................................. 1–1 B. Gulf of Alaska Application and Exploration License ............................................................ 1–3 C. Preliminary Decision: Request for Public Comment ............................................................. 1–4 Chapter Two: Authority and Scope of Review A. Constitutional and Statutory Authority .................................................................................. 2–1 B. Written Findings .................................................................................................................... 2–2 C. Review by Phase .................................................................................................................... 2–4 D. Licensing Process .................................................................................................................. 2–6 Chapter Three: Description and Location of the License Area A. Property Location and General Description........................................................................... 3–1 B. Land and Mineral Ownership................................................................................................. 3–1 C. History and Cultural Resources ............................................................................................. 3–5 D. Local Communities ................................................................................................................ 3–6 E. Climate ................................................................................................................................. 3–10 F. Natural Hazards .................................................................................................................... 3–11 G. References ............................................................................................................................ 3–15 Chapter Four: Habitats, Fish, and Wildlife A. Major Habitats of the Area .................................................................................................... 4–1 B. Fish and Wildlife Populations ................................................................................................ 4–4 C. References ............................................................................................................................ 4–25 Chapter Five: Current and Projected Uses A. State Game Refuges, Critical Habitat Areas, and Other Designated Areas ........................... 5–1 B. Current and Projected Uses in the License Area .................................................................... 5–2 C. References ............................................................................................................................ 5–14 Chapter Six: Petroleum Potential and the Likely Methods of Oil and Gas Transportation in the License Area A. Geology .................................................................................................................................. 6–1 B. Phases of Oil and Gas Development ...................................................................................... 6–4 C. Oil and Gas Exploration, Development, and Production Activities....................................... 6–6 D. Likely Methods of Oil and Gas Transportation in the License Area ................................... 6–11 E. Spill Risk, Prevention, and Response ................................................................................... 6–14 F. References ............................................................................................................................ 6–26 Chapter Seven: Governmental Powers to Regulate Oil and Gas A. State of Alaska ....................................................................................................................... 7–1 B. Federal .................................................................................................................................. 7–11 C. Other Federal and State Regulatory Considerations ............................................................ 7–14 D. References ............................................................................................................................ 7–16 Chapter Eight: Reasonably Foreseeable Effects of Licensing and Subsequent Activity A. Introduction ............................................................................................................................ 8–1 B. Reasonably Foreseeable Cumulative Effects on Air .............................................................. 8–2 C. Reasonably Foreseeable Cumulative Effect on Water Resources and Water Quality ................................................................................................................................... 8–3 Gulf of Alaska Oil and Gas Exploration License | Preliminary Written Finding of the Director i D. Reasonably Foreseeable Cumulative Effects on Terrestrial and Freshwater Habitats and Fish and Wildlife Populations .......................................................................... 8–7 E. Reasonably Foreseeable Cumulative Effects on Coastal and Marine Habitats and Fish and Wildlife Populations ............................................................................................. 8–14 F. Reasonably Foreseeable Cumulative Effects on Fish and Wildlife Uses ............................. 8–25 G. Reasonably Foreseeable Cumulative Effects on Historic and Cultural Resources .............. 8–28 H. Reasonably Foreseeable Fiscal Effects of the Disposal and Subsequent Activity on the State and Affected Municipalities and Communities .................................................... 8–29 I. Other Reasonably Foreseeable Effects on Municipalities and Communities Near the License Area .................................................................................................................. 8–33 J. References ............................................................................................................................. 8–35 Chapter Nine: Mitigation Measures A. Mitigation Measures .............................................................................................................. 9–1 B. Definitions .............................................................................................................................. 9–8 Appendix A: Summary of Comments and Responses Appendix B: Gulf of Alaska Sample Exploration License Appendix C: Gulf of Alaska Sample Lease Tables Page Table 2.1. Topics required by AS 38.05.035(g)(1)(B). ............................................................... 2–4 Table 5.1. Nominal Prince William Sound permit values, 2000–2016 ....................................... 5–7 Table 5.2. Nominal total Prince William Sound permit earnings, 2000–2016............................ 5–8 Table 5.3. Economic impact of sport fishing in Alaska in 2001, 2003, 2006, 2011. ................ 5–10 Figures Page Figure 3.1. Gulf of Alaska Area Map ........................................................................................... 3–3 Figure 3.2. Gulf of Alaska Land Status Map ................................................................................ 3–4 Figure 5.1. Critical Habitat Area and Anadromous Rivers in and adjacent to the License Area ............................................................................................................... 5–2 Figure 5.2. Gulf of Alaska Game Management Units ................................................................ 5–12 Gulf of Alaska Oil and Gas Exploration License | Preliminary