Oil Bonanza Hoars for Alaska's Arctic Slope ...
(Continued from Page 1)
intends to give the Governor notice
in the near future.
The first word that the protrac
tion sheets had been released came
Thursday when the BLM in Fair
banks was asked by a big oil com
pany to supply it with a complete
set of the protractions.
Upon checking, BLM officials
found that the protraction sheets
were on the way to Alaska.
For a number of reasons, oil of
ficials, state and federal land of
ficials generally express the opin
ion that the state will not make a
selection in the Umiat reeion.
For one thing, the handling of
leasing by the state would be ex
pensive and time consuming and
with the BLM handling the leas
ing, the state would get 90 per cent
of all revenue derived anyway.
For another thing, according to
the Statehood Act, the state is not
allowed to make a selection north
of the Porcupine, Yukon and Kus
kokwim rivers except with Presi
dential approval.
Although at one time the state
contemplated making a selection
up north, to date the state has made
no such selection.
Thirdly, if the state made a large
selection in the Umiat region and
it was later proved not to have oil
or gas, then the state would have
a lot of low value land on its hands.
Fourthly, the state with every
large selection correspondingly
loses money from the federal aid
highway program. If the state se
lected an area under which oil
later were discovered, it would get
100 per cent of the lease money,
but the big question seems to be, is
it worth the gamble?
Decision Likely
The consensus of land officials
here seems to be a determination
of whether or not the state would
make an Umiat selection was made
during the recent visit to Alaska of
Assistant Secretary of Interior John
Carver.
A bill is also now before Congress
which, if passed, will allow Alaska
ten years, instead of five years,
from the date it became a state for
selecting lands quickly.
Anytime after 60 days from the
time the Governor is notified, by
Secretary of the Interior Udall can
publish a notice in the federal re
gister opening the Umiat to the
public for oil and gas leasing. Then
after an additional 60 days, simul
taneous drawings of the lucky ap
plications will be held.
Long Drawing
In 19.68, when 4 million acres in
the Umiat region was opened to
leasing, drawings were held all day
long for four days in a local theater.
Reportedly big crowds attended
the drawings.
Since the region shortly proposed
for opening is four times as large,
it follows that drawing the lucky
applications alone will take about
two weeks.
Great Potential
The oil industry has long con
sidered the North Slope area of
Alaska to be (he most important
new area for oil and gas of any
other on the continent.
The whole area consisting of more
than 40 million acres (including
Petroleum Reserve No. 4 > is geo
logically ideal for locating oil.
The Navy discovered the Umiat
nil field, a major reserve, estimated
to contain 200 million barrels of oil.
The lowest estimate of 70 million
barrels and the highest estimate is
950 million barrels an estimate made
bv the Bureau of Mines two years
ago. , „
Largest Reserve
The Navy also located the Gubik
gas field classed as one of the
world's largest reserves of natural
gas.
In 1958 the first large area on
Alaska’s north slope was opened
for public oil and gas leasing and
development. It consisted of 3 to 4
million acres in the Umiat Region.
Leasing continued steadily from
1958 until January, 1961, when
there became a stampede for leases
in the area by the major coirmanies.
Real Interest
British Petroleum became the
first major oil company to really
come out and indicate an interest
when it acquired roughly 150,000
acres in February, 19G1 under a
development contract. Under the
contract it promised to carry on an
active drilling program over a 5
year period.
British Petroleum assigned 50 per
cent in its contract to Sinclair Oil.
Sinclair and British Petroleum are
more or less 50-50 partners in this
hemisphere.
In November of 1961 the British
Petroleum-Sinclair combine got
their second development contract
of half million acres contiguous with
the first. This gave them about a
million acre drilling area.
In the meantime, Texaco, Califor
nia Standard, Shell and Atlantic
Refining have been sort of getting
squared away to get development
contracts of their own. Atlantic got
its first development contract this
summer of half million acres.
Plotting Structures
Beginning early this year, four
separate seismograph companies
have been hired to move their men
and equipment to the North Slope
to initiate programs of plotting the
geologic structures.
Three of the companies. United
Geophysical Corporation, Geophy
sical Services, Inc., and Western
Geophysical Co. are on contract
with the British Petroleum-Sinclair
combine and National Geophysical
Co. is on contract to Atlantic Re
fining.
The seismograph crews are driv
ing small holes ever so many miles,
setting off shock charges and mea
suring the time it takes the shock
to bounce back to the surface. In
this way the geologic structures
can be plotted.
Fig On Way
British Petroleum-Sinclair have
a rig on the way now to the area.
It is being barged to the mouth of
the MacKenzie River, then will be
shipped to the vicinity of Barter ^
Island, and cat trained to location
this fall. The rig should arrive by
Christmas.
In adition to the forthcoming
drilling for oil, drilling started the
middle of July for gas in the gen
eral Gubik gas structure. The struc
ture is considered the most likely
reservoir for supplying natural gas
to the city of Fairbanks.
Colorado Gas and Oil, as the op
erator, has unitized leases in the
Gubik area, that is, file various
leases have been pooled.
Prilling For Gas
All the individual owners tossed
their holdings into a kitty and
earnings that come out of the drilli
ng will be paid proportionately.
Two rigs that had been purchased
by Alaska Propane Co. from the
government in 1959 were sold to
Colorado Gas and Oil.
Several million dollars have al
ready been spent since the first of
this year on operations in the Umiat,
much of'it transportation.
Visitors, Tourists, Interior Alaskans—
Taste the Delicacy of the Eskimo . . .
MUKTUK
at the Tanana Valley Fair, August 15-18
The Tundra Times Staff will sell small pieces of delicious muktuk
at the annual affair. Watch for our booth. Don't miss this golden oppor
tunity. Subscriptions to the Tundra Times, the most lively newspaper
in Alaska, will be on sale too!
Much of the rolling stock vehicles
l used in the exploration over the
tundra terrain has been especially
designed with more narow cabs
than standard in order for them to
fit into air cargo craft available
in Fairbanks. All this takes extra
money.
Leases Kept
More than 1500 leases covering
almost every block in the Umiat re- '
gion opened in 1958 has been held.
Only about 20-30 leases have been
dropped and most of these inad- |
vertently by failure to pay the lease
fee.
The forthcoming opening of an
additional 10 million acres will mean
that the other major oil companies
will be able to get in on the “boon"
in the far north.
For the first time. Gulf Oil Co.
and Pan American Petroleum have
field parties on the north slope.
Anchorage Impact
Tlie past five-year oil and gas
development in the Kenai, Cook
Inlet, the 5000-acre Swanson Rvier
oil field (estimated conservatively
at containing 200-300 million bar
rels) has been a big boon to the
economy of Anchorage.
But according to practically !
everyone in the oil industry, the j
forthcoming five-year development
of Alaska's north slope, will make
the development in the Anchorage j
area look like peanuts.
Natives Counted . •
(Continued From Pg. 3)
System Derived
As a result of the studies, Palmer
said a system of accurately determ
ining the ratio of Cessium 137 and
K-40 in one's urine.
One of the principal costs in the
program of moving the whole body
counter from village to village is
the fact that several tons of lead
bricks must be transported to each
place.
Tons of Brick
The bricks are used to set up a
shield to prevent outside radiation
from coming in while a person is
being scanned for radiation.
There are two methods of count
ing being used. In one method, per
sons are moved past the counter at
a constant rate on a movable tabla
or chain. In a second method, a per
son remains stationary and tha
counter is moved past him at a
constant rate.
Moose Samples
While at Ft. Yukon. Palmer and
Hanson collected moose samples
also, to be analyzed for radioactiv
ity.
In addition, the State Department
of Health for some time has been
collecting caribou samples from
Anaktuvuk Pass and has sent the
samples to Las Vegas, Nevada for
analysis.
The Artie Research Center in An
chorage is also setting up a program
to analyze the amount of radio
activity in teeth, extracted at na
tive hospitals.
WIEN ALASKA AIRLINES
KOTZEBUE . Twice Daily
*(Xoatak-Kivalina-Pt. Hope
Cape Lisburne) . Mon., Wed., Fri.
*(Xoorvik-Kiana-Selawik.) . Tues., Thur., Sat.
* (Shungnak-Kobuk-Ambler) . Thur.
“ (Buckland) . Tues. Sa.t
NOME . Twice Daily
* (White Mountain-Golovin-Elim
Moses Pt.-Koyukl Mon., Wed., Fr i
®(Shaktoolik-Unalakleet) Mon., Fri.
* (Teller-Teller Mission-Port C larence
Tin City-Wales-Shismaref Tues., Thur., Sat.
*(Granite Mtn-Candle-Deering) Tues., Sat.
"Kotzebue-Barrow) . Tues., Thur., Sat.
* (Gambell-Savoonga
Northeast Cape.) . Mon., Wed., Fri.
FORT YUKON . *»auy
•(Barter Island) . Sun.
•Beaver-Stevens Village) ... Mon., Wed., Fri.
•(Rampart-Tanana) Mon.
•(Venctie-Arctlc Village) . Tues., Sat.
•(Old Crow) . 3rd Thar.
•(Chalkyitslk-Shuman House-Canyon Village) . Fri.
•(Birch Creek,) . Tues.
PT. BARROW . Daily
•(Umiat) . Mon., Wed., Fri,
• (Wainwrlght) . Mon., Wed., Fri.
*(Pt. Lay) . Wed.
‘(Meade River) . Tues.
• (Coleville) . 1st & 3rd Thar.
TANANA . Daily ex. Sun.
HUGHES . Tues., Thur., Sat.
•(Utopia) (also served out of Betties, see below) .Tues., Thur.
•(Hogatza, Huslia) . Thur.
BETTLES Tues., Thur., Sat.
•(Utopia) . ... Sat.
•(Allakaket, Hughes) .. ... Tues., Thur., Sat.
•(Chandelar) .,. Sat.
•(Big Lake) . 1st & 3rd Sat.
•(Wiseman) . Wed.
•(Porcupine Creek Once per mo. on Wed., conditions permitting
• (ANAKTUVUK Pass) . Thur.
•(Ruby Creek-Kobuk) . Tues.
GALENA Mon., Wed., Fri.
•(Koyukuk-Nulato-Kallag-Kalakaket) . Mon., Wed., Fri.
•(Ruby) . Mon., Wed., Fri., Sat.
•(Huslia) . Mon.
•(Kokrines) . Service by boat from Ruby every Mon.
CIRCLE HOT SPR1NGS-CIRCLE Tues., Sat.
RAMPART Tues., Fri.
LIVENGOOD . Fri.
WOODCHOPPER-EAGLE . Mon., Wed., Fri.
BOUNDARY-CHICKEN . Wed.
MINTO-MANLEY HOT SPRINGS . Tues., Fri.
CHEN A HOT SPRINGS . Tues.
UTOPIA-HUGIIES-HOGATZA-KOBUK
KIANA-KOTZEBUL .. Mon.
CHARTERS available anywhere utilizin'* the following equipment:
Cessna 180, Cessna 185, Pilatus, Beaver, Porter, Norseman. Twin
Beechoraft, DC-3, Supet 46 and F-27. We invite your inquiry.
•NOTT : Connections are made with bush aircraft to communities
irv parenthesis.
3rd Ave. & Lacey Street PHONE 452-3555 452-3115
Hours — 5:30 a.m. to 10:00 p.m. Daily Except Sunday