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January 2010

Corps Kicks Off Point Thomson Project EIS Study

This is the first in a series of four newsletters to update you about a proposed project to further develop the Point Thomson oil and gas field on the Beaufort Sea coast. ExxonMobil has applied for a federal permit from the U.S. Army Corps of Engineers (Corps) to develop and operate additional facilities for this field. In this newsletter are summaries of the project description, the public review process, and ways for you to obtain more information and provide comments. For the Point Thomson Project, the Corps is the lead federal agency for the Environmental Impact Statement (EIS) development process, and the Environmental Protection Agency, U.S. Fish and Wildlife Service, and State of Alaska Department of Natural Resources are Cooperating Agencies. As the lead agency, the Corps is responsible for overseeing the EIS development process, seeking public input, consulting with other agencies, and ensuring NEPA compliance. Cooperating agencies have jurisdiction by law, such as the Endangered Species Act, Clean Air Act, or Clean Water Act, or special expertise in regard to any potential environmental impact to be addressed in the project EIS. These agencies' responsibilities include assisting to identify issues of concern, and providing meaningful and timely input throughout the NEPA process. The first formal phase of the EIS process is scoping. The "Formal Scoping" period is dedicated to: » identifying potentially interested parties » identifying public and agency concerns » defining the range of issues that will be examined The scoping comment deadline is February 25, 2010.

Public Scoping Meeting Schedule

Fairbanks Kaktovik Nuiqsut Barrow Monday, January 11, 2010 · 5-8 pm Westmark Hotel, 813 Noble St. Tuesday, January 12, 2010 · 4-7 pm Community Hall Wednesday, January 13, 2010 · 5-8 pm Trapper School Thursday, January 14, 2010 · 5-8 pm Inupiat Heritage Center

Anchorage Tuesday, January 19, 2010 · 5-8 pm Dena'ina Convention Center, 600 W. 7th Ave. (Kahtnu Room 1, 2nd floor)

There will be a presentation provided at all the meetings beginning at 6:00 pm (5:00 pm in Kaktovik), followed by questions and answers. Translation and opportunities for formal comments will be provided in Inupiaq in Kaktovik, Nuiqsut, and Barrow.

January 2010

Visit the project Web site at

Project Description

Exxon Mobil Corporation (ExxonMobil) has applied for a federal permit to develop the Thomson Sand Reservoir by 2014. ExxonMobil would recover liquid condensate from natural gas and re-inject the residual gas back into the reservoir, conserving it for future use. ExxonMobil proposes to develop offshore portions of the reservoir using long-reach directional drilling techniques from onshore pads. The produced hydrocarbon liquids (condensate, and possibly oil) would be shipped through a new 22mile long, elevated pipeline from Point Thomson to the existing Badami Development (see Gas Cycling diagram on page 3). This pipePage 2

line would then tie into the existing Badami pipeline, which connects with the existing oil pipeline system to the Trans-Alaska Pipeline System Pump Station No. 1. Initial average production of condensate is expected to


Onshore drilling rigs will pump offshore oil and gas. NOTE: Red line is the approximate boundary of the Thomson Sand Reservoir.

be approximately 10,000 barrels per day (bpd), and possibly up to 10,000 bpd of oil. The project includes construction and operation of a minimum of five wells drilled from three pads. (Authorized drilling of two production wells is already underway from the existing Central Pad.) Other proposed facilities include a gravel airstrip, cargo dock facility, in-field gravel roads, ice roads, in-field pipelines, and a gravel mine. Dredging for the dock may be required.


This project will provide economic benefits to the State of Alaska, North Slope Borough (NSB), and local communities through the creation of new jobs and tax revenues. New jobs will include both temporary jobs during drilling, engineering, procurement, and construction, and long-term jobs supporting permanent operations. New revenue for the State of Alaska and the NSB will help offset declining revenue from existing hydrocarbon production and facilities. Point Thomson is the largest discovered, undeveloped natural gas field in Alaska. If a gas pipeline is built, natural gas from Point Thomson would be an important energy source for the U.S. and Alaska. The facilities layout below shows the various elements of the proposed project, in addition to how the pads will be connected to each other.

2009 ­ 2010 Approximate Drilling Timeline* and Gas Cycling

Condensate to be (commencing 2014) Condensate to be sold sold

PTU-15 PTU-16

Injection Injection Well Well

Dry Dry Gas Gas

Central Processing Facility (CPF)

Wet Wet GasGas

Production Production Well Well

Step 1: May 2009 Step 3




Step 2: Aug 2009 Step 5






Step 4


Step 6

*Seasonal drilling restrictions will be applied.

Project Purpose and Need

According to ExxonMobil, the development of this resource will help the U.S. meet domestic energy demand and reduce dependence on foreign sources of oil. Production at Point Thomson will help offset declining production from Alaska's North Slope reservoirs, and will help to maintain the efficiency of the Trans-Alaska Pipeline System.


Page 3

For more information

For more information, contact: Ms. Julie McKim, Project Manager U.S. Army Corps of Engineers, CEPOA-RD PO Box 6898 Elmendorf AFB, Alaska 99506-0898 Phone: (907) 753-2773 Toll free in Alaska (800) 478-2712 Fax: (907) 753-5567 Your comments are a valuable part of the process. Please submit your comments by the following means: Provide verbal comments at a scoping meeting Submit a comment form Fax to: (907) 753-5567 E-mail to: [email protected] Submit comments through project Web site: Comments regarding the project must be submitted by February 25, 2010 at 5 p.m. to be considered in the scoping phase of the DEIS.

Visit the project Web site at

HDR Alaska, Inc. 2525 C Street, Suite 305 Anchorage, AK 99503

Postal Indicia Info

Visit the project Web site at


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