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FOSSIL FUEL AND GEOTHERMAL ENERGY SOURCES FOR LOCAL USE

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FOSSIL FUEL AND GEOTHERMAL ENERGY SOURCES FOR LOCAL USE ( fossil-fuel-and-geothermal-energy-sources-for-local-use )

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Fossil Fuel and Geothermal Energy Sources for Local Use in Alaska Chapter J, Railbelt Company (and others before them) mined coal from the Healy Creek field over a thirty-year period from 1944 to 1972. The field now is largely depleted of easily accessible deposits, but may still have as much as 250 million mineable short tons of coal using more expensive mining methods (Merritt, 1985). Western Nenana field. The Western Nenana field spans the Parks Highway between the Nenana and Sanctuary Rivers, and lies in part in Denali National Park. Estimated coal resources in this area are 250 million tons (Wahrhaftig and others, 1951) from the lower Nenana Basin coal-bearing stratigraphy, with an estimated volume of potentially mineable coals within 500 feet of the surface of 80 million short tons (Merritt, 1985). Tatlanika field. Coal-bearing strata of the Tatlanika field are exposed over an area of approximately a 120 square miles, and is located about 12 miles east of Liberty Bell Mine and 25 miles east of the Parks Highway, extending from Buzzard Creek in the west to Grubstake, Roosevelt, and Hearst creeks on the east. Merritt (1985) estimates that 77 million short tons of potentially mineable coal with bed thicknesses of at least 29 inches exist in the field within 500 feet of the surface from the Healy Creek through Grubstake formations. Wood River field. Coals of the Wood River field occur in an area of less than 40 square miles located on the northwest flank of Mystic Mountain about 40 miles east of the Parks Highway. At least 16 significantly thick coals occur within the field and span the entire stratigraphic range of coal-bearing units within the Nenana Province. The field has an estimated 80 million short tons of potentially mineable coal within 500 feet of the surface (Merritt, 1985). Rex Creek field. Coal-bearing strata of the Rex Creek field occupy 25 square miles located about 15 miles east of the Parks Highway in an area crossed by Rex Creek located east of Rex Dome and west of Iron Creek. At least 15 million short tons of potentially mineable coal occur in the Healy Creek, Sanctuary, and Suntrana formations (Merritt, 1985). Mystic Creek field. The Mystic Creek field is located east of the Wood River between Keevy Peak to the southwest and Mystic Peak to the northeast, about 35 miles east of the Parks Highway. At least 10 coal beds up to 15 feet thick are present in outcrop over a 20 square mile area. The field has an estimated 20 million short tons of potentially mineable coal from the Healy Creek Formation and other undifferentiated strata (Merritt, 1985). Conventional oil and gas resource potential As explained in the discussion of requirements for exploitable oil and gas resources (Chapter A), functioning petroleum systems occur in thick sedimentary basins, and require three basic elements: effective source rocks, reservoirs, and traps. Each of the elements must be in existence and connected at the time hydrocarbons are generated. This section provides an overview of the various basins in the Railbelt region then considers each of the necessary elements of petroleum systems in turn to evaluate the role conventional oil and gas resources may play in supplying rural energy to Alaska’s Railbelt energy region. Overview of sedimentary basins. The Railbelt region encompasses several main Tertiary age sedimentary basins, including the Cook Inlet, Susitna, the eastern part of the greater Nenana basin, and the northeast part of the Minchumina basin (sheet 2; Kirschner, 1988). The Nenana basin is also known as the Tanana basin (e.g. Trop and Ridgway, 2007) or Middle Tanana basin (Ehm, 1983; Stanley and others, 1990). The Cook Inlet basin contrasts with the other Railbelt basins in many respects, including areal extent, thickness, tectonic setting, and petroleum productivity. Situated above southern Alaska’s subduction zone, the Cook Inlet is a forearc basin filled by sediment eroded from the Aleutian Range and southern Alaska Range magmatic arc to the west, the central Alaska Range and Talkeetna Mountains to the north, and the Chugach–Kenai Mountains accretionary prism to the southeast. Most exploration in the Cook Inlet basin has occurred on state-managed land, whereas extensive private and federally protected areas are either lightly explored or closed to exploration. The vast majority of hydrocarbons produced from basin thus far were found in Tertiary nonmarine strata deposited in alluvial fans, river channels, floodplains, lakes, and coal swamps. These units overlie older Mesozoic formations of mixed marine and nonmarine origin. Proven petroleum systems in the Cook Inlet basin have supplied local and export markets more than 1.3 billion barrels of oil and nearly 7.75 trillion cubic feet of gas since the late 1950s (Alaska Division of Oil and Gas, 2007; Hartz and others, 2009). Most of this success has resulted from targeted exploration of large anticlinal structures that are readily apparent on seismic data. Although many of these structures have been drilled and tested, these folds continue to attract exploration and active industry leases suggest the potential for future discoveries. Significant additional hydrocarbons are likely also housed in stratigraphic traps, although this type of accumulation is subtle and has only been lightly explored. The Cook Inlet basin has witnessed declining production from existing fields drawing attention to its role in meeting south-central Alaska’s future energy needs. Recent studies undertaken by the Alaska Division of Oil and Gas (Hartz and others, 2009) suggest there may be significant volumes of recoverable gas in parts of Cook Inlet’s complex fluvial reservoirs that are not tapped effectively by existing wells. It may be feasible to recover some of this nonproducing gas through more complete field development projects in the near term. Furthermore, the State of Alaska is attempting to incentivize new exploration activity via major tax credits. Exploitable petroleum systems may exist in the Susitna, Nenana, and Minchumina basins, although limited exploration has not yielded oil or gas production. Both the Page 103 Railbelt

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