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2018 BIA Providers Conference

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Presentation on theme: "2018 BIA Providers Conference"— Presentation transcript:

1 2018 BIA Providers Conference
November 27-29, 2018 Anchorage, Alaska Division of Energy and Minerals Development Aggregate Development Kristofer Hornsby – Geologist Fe

2 Assistant Secretary – Indian Affairs
(Tara Sweeney) Director Bureau of Indian Affairs Bureau of Indian Education Deputy Assistant Secretary Policy and Economic Development Division of Energy and Mineral Development Division of Economic Development Division of Capital Investment Principal Deputy – Assistant Secretary Office of Indian Gaming Office of Self-Governance Office of Indian Energy and Economic Development Deputy Assistant Secretary Management We strive to provide the best possible technical and economic advice to Indian landowners seeking to manage and develop their energy and mineral trust resources

3 Division of Energy and Mineral Development
DEMD is the only national Governmental Agency that deals strictly with energy and mineral development on Indian lands. Majority of DEMD staff has extensive prior industry experience, making them uniquely suited to facilitate communication between Tribes / allottees and industry.

4 Division of Energy and Mineral Development
DEMD – What We Do Division of Energy and Mineral Development Minerals Construction aggregate projects Precious metals Coal Renewable Energy Wind Solar Biomass Hydro Natural Gas Conventional Energy & Geothermal Geothermal Oil & Gas Business Development Tribal Business Structures Financial Analysis Good Governance Practices Our Staff: Geologists, Geophysicists, Mineral Economists, Mineral Marketers, Engineers, Business Development Specialists, Financial Analysts, and Policy Analysts

5 Services Technical Assessment
Geologic and Geophysical assessment studies Economic Analysis Is it profitable? Negotiation Assistance Utilize economic analyses for evaluation of agreement terms To enable negotiations to proceed on a level playing field and move the process forward quickly

6 Alaska Examples of DEMD’s Technical Assistance

7 Lily Mayland Allotment
DEMD was asked to provide assistance in negotiating a lease between the allottee and a construction company. The initial offer was to purchase the property for $30,000 (which included the sand and gravel).

8 Lily Mayland Allotment
Based on DEMD’s technical assistance the initial terms were changed to: A five year lease, with an option for an additional five years. An annual minimum rental payment of $10,000. A royalty payment of $9.00/ton. Construction of a crew cabin and a barge loading dock to remain on the property after the lease has expired. The allottee will earn an average of $40,000/year and if the lease is effective for 10 years the total will be $400,000. And, the allottee will retain the reclaimed property.

9 Major Economic Opportunity
Supplying Sand and Gravel for Future Infrastructure Project.

10 LNG Pipeline Allotment Study
DEMD assessed 758 allotments Allotments were assessed according to: Distance to pipeline. Geology and probability of finding quality and quantity sand and gravel deposits. Market or economic conditions including size, accessibility and location. In summary, the ratings identified those allotments best suited for a detailed aggregate evaluation.

11 Metlakatla Background:
The Tribe requested a study to locate new sources of high grade aggregate as well as fill material. The Tribe will use the aggregate for local construction projects and road maintenance.

12 Metlakatla DEMD Assistance:
Determine the location, quality, and quantity, of construction aggregate. Assess the economic feasibility of a new operation. Assist in permitting and planning, including creating a mine and reclamation plan.

13 Metlakatla Accomplishments:
Based on exploration and laboratory results, DEMD geologists identified a large volume, high grade aggregate deposit. A mine and reclamation plan was drafted for the future quarry (Yellow Hill Quarry).

14 Metlakatla In Progress:
The identified site was previously used as a metal dump area. Tribe is in process of cleaning it up. Tribe is reviewing the mine and reclamation plans and will submit for permitting.

15 Dull Allotment DEMD received a request to review a mining trespass on the Dull Allotment. 13.5 tons were already mined due to the trespass. All of the allotment was deemed minable. DEMD estimated the marketable sand volume remaining was approximately 6.3 million tons.

16 Contact Us Division of Energy and Mineral Development
Dennis Bodenchuk Branch Chief Tammy Jacobs Geologist Duane Matt Amanda Irons Geological Engineer Kris Hornsby Assistant Secretary – Indian Affairs Division of Energy and Mineral Development Website:


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