April 18, 2018 Final Finding of the Director Recommended citation: ADNR (Alaska Department of Natural Resources). 2018. North Slope areawide oil and gas lease sales. Written Finding of the Director. April 18, 2018. Questions or comments about this final 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 (ADNR) 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: ADNR 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: ADNR, Division of Oil and Gas 550 W. 7th Ave., Suite 1100 Anchorage, AK 99501-3560 Phone 907-269-8800. Division of Oil and Gas Contributors: Shawana Guzenski Jonathan Schick Kyle Smith Final Finding of the Director Prepared by: Alaska Department of Natural Resources Division of Oil and Gas April 18, 2018 Contents Page Chapter One: Director’s Final Written Finding and Decision 2-1 A. Director’s Final Written Finding ........................................................................................... 2-1 B. Director’s Decision ................................................................................................................ 2-3 Chapter Two: Introduction 2-1 A. Constitutional Authority ........................................................................................................ 2-1 B. Written Findings .................................................................................................................... 2-2 C. Annual Lease Sales................................................................................................................ 2-7 Chapter Three: Description of the North Slope Lease Sale Area 3-1 A. Location and General Description ......................................................................................... 3-1 B. Land and Mineral Ownership ................................................................................................ 3-3 C. Historical Background ........................................................................................................... 3-6 D. Communities ......................................................................................................................... 3-7 E. Historic and Cultural Resources .......................................................................................... 3-13 F. Climate ................................................................................................................................ 3-13 G. Natural Hazards ................................................................................................................... 3-16 H. References ........................................................................................................................... 3-25 Chapter Four: Habitats, Fish, and Wildlife 4-1 A. Ecoregions ............................................................................................................................. 4-1 B. Habitats .................................................................................................................................. 4-3 C. Fish and Wildlife Populations ............................................................................................... 4-8 D. References ........................................................................................................................... 4-49 Chapter Five: Current and Projected Uses in the Lease Sale Area 5-1 A. Subsistence ............................................................................................................................ 5-1 B. Commercial and Sport Fishing .............................................................................................. 5-9 C. Hunting and Trapping .......................................................................................................... 5-10 D. Tourism and Recreation ...................................................................................................... 5-13 E. Other Uses ........................................................................................................................... 5-15 F. References ........................................................................................................................... 5-16 Chapter Six: Petroleum Potential, Operations, and Transportation Methods in the Sale Area 6-1 A. Geology ................................................................................................................................. 6-1 B. Exploration History ............................................................................................................... 6-4 C. Oil and Gas Potential ............................................................................................................. 6-6 D. Likely Methods to Transport Oil and Gas from the Sale Area .............................................. 6-7 E. Spills and Releases: Risk, Prevention, and Response ......................................................... 6-14 F. References ........................................................................................................................... 6-30 Chapter Seven: Governmental Powers to Regulate Oil and Gas 7-1 A. State of Alaska ....................................................................................................................... 7-1 B. Federal ................................................................................................................................. 7-11 C. Other Federal and State Regulatory Considerations ............................................................ 7-14 D. Local Governmental Powers ............................................................................................... 7-15 E. References ........................................................................................................................... 7-16 Chapter Eight: Reasonably Foreseeable Effects of Leasing and Subsequent Activity 8-1 A. Introduction ........................................................................................................................... 8-1 B. Phases of Oil and Gas Development ..................................................................................... 8-2 North Slope Areawide Final Best Interest Finding C. Post-Disposal Oil and Gas Activities .................................................................................... 8-4 D. Reasonably Foreseeable Cumulative Effects to Air and Water .......................................... 8-13 E. Reasonably Foreseeable Cumulative Effects on Fish and Wildlife Uses ............................ 8-17 F. Reasonably Foreseeable Cumulative Effects on Terrestrial Habitats and Wildlife ............ 8-21 G. Reasonably Foreseeable Cumulative Effects on Other Activities ....................................... 8-47 H. Mitigation Measures and Other Regulatory Protections ..................................................... 8-48 I. Reasonably Foreseeable Fiscal Effects of the Lease Sale and Subsequent Activity on the State and Affected Municipalities and Communities ............................................... 8-50 J. References ........................................................................................................................... 8-58 Chapter Nine: Mitigation Measures Error! Bookmark not defined. A. Mitigation Measures .............................................................................................................. 8-1 B. Definitions ............................................................................................................................. 8-9 Tables Page Table 2.1.—Topics required by AS 38.05.035(g)(1)(B). ................................................................. 2-3 Table 3.2.—Temperature and precipitation means for Prudhoe Bay (°F) 1981–2010. ................. 3-14 Table 3.3.—Temperature and precipitation means for Umiat (°F) 1981–2010. ............................ 3-14 Table 5.1.—Average Household Cost of Subsistence Activities 2010 & 2015. .............................. 5-3 Figures Page Figure 3.1.—Sale Area. ................................................................................................................... 3-2 Figure 3.2.— New areawide boundary surrounding jointly owned tracts ....................................... 3-3 Figure 4.1.—Ecoregions in the Sale Area. ....................................................................................... 4-3 Figure 4.2.—Federally designated habitat areas. ............................................................................. 4-8 Figure 4.3.—North Slope game management