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Lease Buyback is Last Resort Says Governor


December 09, 2003
Tuesday - 12:50 am

Alaska Governor Frank Murkowski has made it clear that consideration of the state buying back any coalbed methane leases in the Mat-Su and on the Kenai Peninsula would only be after all other options are exhausted.

"The state will consider buybacks of shallow natural gas leases only as a last resort," Murkowski said on Thursday, December 4, while responding to a question during a press conference.

DNR is currently engaged with the public in crafting rules, such as setback requirements, noise limitations, and water quality monitoring, that will be required for coalbed methane development in the Mat-Su Borough.

"Prior to approving any coalbed methane development, the Department of Natural Resources will make a determination as to whether additional site specific measures are necessary given the particular values of the location," Murkowski said. "Until DNR's public process is complete and the companies have determined where development might occur, it is premature to consider buybacks."

The state remains committed to the development of coalbed methane, recognizing that over the next decade the known reserves of natural gas in the Cook Inlet region may be inadequate to meet the demand. Additionally, coalbed methane could be a significant source of rural energy.


Source of News Release:

Office of the Governor
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