2011RESOU R CE EXT R ACTION PR OJECT PR OJECTION Research provided by Petroleum News and North of 60 Mining News RESOURCE EXTRACTION PROJECT PROJECTION TABLE OF CONTENTS Preface .................................................................................................................................................................................................. 3 Executive Summary ........................................................................................................................................................................... 4 Background Information Overview ......................................................................................................................................... 13 Oil & Gas Resource ................................................................................................................................................................ 14 Four oil sources, two drivers, could raise northern Alaska’s oil output ................................................... 14 Despite declines, Cook Inlet still active ................................................................................................................... 16 Proposed Projects – Oil & Gas ............................................................................................................................................ 19 Projects to be Watched – Oil & Gas ................................................................................................................................. 23 Existing Fields – Oil & Gas .................................................................................................................................................... 24 Mining Resource ...................................................................................................................................................................... 27 Proposed Projects – Mining .................................................................................................................................................. 29 Projects to be Watched – Mining ........................................................................................................................................ 32 Existing Mines – Mining .......................................................................................................................................................... 34 Appendix – Oil & Gas ..................................................................................................................................................................... 37 Badami Producing Unit, Eastern North Slope ......................................................................................................... 37 Beechey Point Unit, Central North Slope .................................................................................................................. 38 Dewline Unit, Central North Slope ............................................................................................................................... 39 Great Bear Petroleum Shale Source Rock Development, Central North Slope ..................................... 41 Kitchen Lights Unit, Upper Cook Inlet exploration ............................................................................................... 42 Kuparuk River Producing Unit, Central North Slope ........................................................................................... 44 Liberty Development, Beaufort Sea OCS, off Central North Slope .............................................................. 46 Nikaitchuq Producing Unit, Central North Slope .................................................................................................. 47 North Tarn, Central North Slope prospect ............................................................................................................... 49 Oooguruk Producing Unit & Nuna Development Project, Central North Slope .................................... 50 Point Thomson Unit, Eastern North Slope ................................................................................................................ 52 Prudhoe Bay Producing Unit, Central North Slope .............................................................................................. 55 www.AEDCweb.com Page | 1 Repsol/Armstrong/GMT Prospects, Central North Slope, on and offshore ............................................... 57 Stinson Prospect, offshore Eastern North Slope ..................................................................................................... 58 Tofkat Prospect, Central North Slope (previously named Titania) ............................................................... 59 Umiat Prospect, Central North Slope ......................................................................................................................... 60 Viscous and Heavy Oil, Central North Slope ............................................................................................................ 61 Yukon Gold, Eastern North Slope .................................................................................................................................. 63 Appendix – Mining ........................................................................................................................................................................... 66 Bokan Mountain Rare Earth Element Project .......................................................................................................... 66 Chuitna Coal Project ............................................................................................................................................................ 67 Donlin Creek gold project .................................................................................................................................................. 67 Fort Knox Gold Mine ............................................................................................................................................................ 68 Greens Creek Mine ................................................................................................................................................................ 69 Kensington gold mine ........................................................................................................................................................... 69 Lik Zinc Project ....................................................................................................................................................................... 70 Livengood gold project ........................................................................................................................................................ 71 Niblack Project ........................................................................................................................................................................ 72 Nixon Fork Gold Mine .......................................................................................................................................................... 72 Pebble Copper-Gold-Molybdenum Project ................................................................................................................ 73 Pogo Gold Mine ....................................................................................................................................................................... 74 Red Dog Mine ........................................................................................................................................................................... 74 Rock Creek Gold Mine ......................................................................................................................................................... 75 Usibelli Coal Mine - Healy Operations ......................................................................................................................... 76 Wishbone Hill Coal Project ............................................................................................................................................... 76 www.AEDCweb.com Page | 2 PREFACE Welcome to the 2011 AEDC Resource Extraction Project Projection. This projection began in 2004 as a modest project to address a request to the Kenai Peninsula Borough Mayor’s oil & gas office from the University of Alaska sponsored Workforce Development conference to give perspective on what the future might hold for resource extractions in the next decade. While that first forecast was very simplistic, it triggered a flood of requests for a more detailed projection that should be updated annually. Over time, this projection changed in a number of ways, including improved project details and better modeling of project flow and annual workforce demands. In 2007, the projection was handed off to AEDC. Then in 2009 a milestone was reached through an agreement between AEDC and Petroleum News (PN) and North of 60 Mining News (N60) publications. The two publications agreed to provide the factual research upon which AEDC then developed its own perspectives and projections. At the same time, AEDC also engaged the McDowell Group to provide help with modeling annualized workforce needs and project spending for the projects profiled. When it was first developed, the purpose of the projection was focused on providing perspectives in support of workforce training