Legislature(2001 - 2002)
01/30/2001 10:02 AM House O&G
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HJR 7 - ENDORSING ANWR LEASING Number 0074 CHAIR OGAN announced the first order of business would be HOUSE JOINT RESOLUTION NO. 7, urging the United States Congress to pass legislation to open the coastal plain of the Arctic National Wildlife Refuge, Alaska, to oil and gas exploration, development, and production. Number 0103 EDWARD GRASSER, Staff to Representative Beverly Masek, Alaska State Legislature, came forward on behalf of the sponsor to explain HJR 7. He said the opening of the coastal plain to exploration and development of oil and gas is supported by a vast majority of Alaskans, including those who live on or near the coastal plain. MR. GRASSER noted that one leading argument by environmental and other groups against the opening of the Arctic National Wildlife Refuge (ANWR) concerns the health of the Porcupine caribou herd. Recently published records about the Central Arctic caribou herd, however, indicate it has done fairly well since Prudhoe Bay was developed and the pipeline was built. MR. GRASSER recalled his experience with the Porcupine caribou herd, from spending about 24 years guiding in ANWR. Emphasizing that his testimony was anecdotal, he said caribou herds in most of the state are fairly resourceful at adapting to different conditions. One of the few Alaskan species that seems to propagate to the point of overgrazing, caribou change their range as it becomes depleted. Although there may be drilling in part of the caribou calving grounds if ANWR is opened, his own experience indicates the animals will probably either ignore it or just move a little farther away. MR. GRASSER said production in Prudhoe Bay is starting to decline, and ANWR may represent one of the best opportunities to locate and recover sizable reserves of oil. It is in the financial best interest of the state to extend oil production and use of the existing infrastructure. Specifically, it is in the state's best interest to keep the pipeline full of oil. MR. GRASSER suggested that President Bush's election and continued control of Congress by Republicans probably give Alaska its best chance right now to persuade the federal government and the American public to open ANWR; this opportunity should be taken advantage of. It probably doesn't hurt that California is currently experiencing energy problems, he noted. MR. GRASSER urged legislators to send this message to Washington, D.C., as soon as possible, especially considering the newly changed political climate there. He pointed out that although the content of HJR 7 pretty much copies legislation that passed the Alaska State Legislature by an overwhelming majority in prior years, there have been some changes due to changes in administration, for example. Number 0436 REPRESENTATIVE JOULE referred to the "whereas" clause regarding the residents of the North Slope Borough. He suggested that it may be helpful to have the supporting documentation. MR. GRASSER said he had a letter from the mayor of the City of Kaktovik and a survey [both in packets]; he affirmed that those would be in the accompanying materials. [Question 10] on the survey says, "The coastal plain of the Arctic National Wildlife Refuge should be open to oil and gas exploration," with five options for responses. Only 9 percent of the respondents either disagreed or strongly disagreed, he noted, whereas 78 percent either agreed or strongly agreed. Number 0582 CHAIR OGAN referred to page 2, line 20, of HJR 7, which began a paragraph that read: WHEREAS the oil and gas industry and related state employment have been severely affected by reduced oil and gas activity, and the reduction in industry investment and employment has broad implications for the state's work force and the entire state economy; and He suggested that language may be a bit dated, no longer reflecting the North Slope environment. When this was first written, for example, oil was selling for $10 or less a barrel. MR. GRASSER agreed that it probably needs to be changed. CHAIR OGAN asked members to look at that and possibly amend it. He emphasized that he didn't want to hold the legislation in committee, however, and suggested that it would be acceptable to work on the language before the resolution goes to the House Resources Standing Committee. Number 0775 CHAIR OGAN also suggested adding language after page 2, line 6, similar to the following: "Further restrictions on oil and gas exploration and development forces development offshore in countries with poor environmental records." He explained that the North Slope provides the world's environmental example for oil technology. As heard in a recent presentation, coil tube drilling now allows coverage of a 50-square-mile area from one drilling pad. Furthermore, if oil isn't developed in the United States - and ANWR in particular - it will be developed in areas of the world that are environmentally unfriendly and where the same standards aren't used. Chair Ogan said he didn't want to hold HJR 7 in committee for such an addition, however. MR. GRASSER replied that he didn't think it would be a problem to work on that language and have it inserted in the House Resources Standing Committee. CHAIR OGAN offered to work with Mr. Grasser in that regard. He then shared his own experience with caribou, which aren't bright and don't get nervous unless one tries to sneak up on them like a bear or wolf would, for example. He noted that caribou herds have increased sixfold in Prudhoe Bay since development occurred there, although some studies show that the cows move away from the oil development a bit when calving. He asked whether Mr. Grasser was aware of any mortality studies regarding calves and related effects of oil development in Prudhoe Bay. MR. GRASSER answered that he wasn't aware of such specific studies. However, the Central Arctic caribou herd has increased dramatically. From 1970 to 1994, on many occasions in Prudhoe Bay he had witnessed caribou grazing alongside the oil pipeline, which didn't seem to affect use of the area by caribou. Number 1025 REPRESENTATIVE DYSON recalled that in the 10 or 12 years he himself spent at Prudhoe Bay, it seemed the caribou enjoyed the gravel pads and airport runways, away from mosquitoes and flies. He suggested that a factor in the herd expansion may have been that predators tended to move away. He also recalled that he had hired a couple of engineers who had worked on the trans- Siberian pipeline; when asked what problems they'd had with caribou [in Siberia], the workers said, "We didn't have any problem with caribou - the workers killed 'em all and ate 'em." Representative Dyson suggested that in addition to more responsible development, [those developing in Alaska] probably will treat the wildlife significantly better than most other populations would. Number 1153 REPRESENTATIVE JOULE referred to page 1, line 13, which read: WHEREAS the residents of the North Slope Borough, within which the coastal plain is located, are supportive of development in the "1002 study area"; and REPRESENTATIVE JOULE requested, if HJR 7 is amended in the House Resources Standing Committee, an amendment to say those residents include the Inupiat population, because the aboriginal people of that area support the development. MR. GRASSER announced that since this is legislation from a previous time, he would be happy to work with any members of this committee before bringing up HJR 7 in the House Resources Standing Committee. CHAIR OGAN indicated it was okay if members agreed, but he didn't want to hold this resolution up. REPRESENTATIVE JOULE suggested that the resolution probably should be carried to Washington, D.C., for the Energy Council meetings in April or March. He proposed working on the changes before the next meeting of the current committee instead. CHAIR OGAN indicated the resolution had been noticed the week before and there had been time for amendments. REPRESENTATIVE JOULE said if the chair wished to move out the resolution, that was fine; he himself could work with the sponsor. Number 1402 CAM TOOHEY, Executive Director, Arctic Power, testified via teleconference, noting that Arctic Power is a nonprofit group working to open ANWR to oil and gas development. He said this year's census of the Central Arctic caribou herd, which surrounds Prudhoe Bay, shows growth to 27,000 animals from 5,000 in the early 1970s; there has been a 37 percent increase since the last count, in 1998. Of note, in the year 2000 not one animal from the Porcupine caribou herd entered the coastal plain; they stayed in Canada. Verified by the Alaska Department of Fish and Game (ADF&G) and others, this is further evidence that over the last 20 years, the caribou don't necessarily use the coastal plain on a regular basis; they use the entire Arctic and whichever areas that they happen to migrate to, for their calving period. MR. TOOHEY pointed out that the more new fields there are that are roadless and have a smaller "footprint" - such as Alpine and Badami on the North Slope - the more it helps to sell the idea that ANWR can be opened safely. MR. TOOHEY noted that a poll of Alaskans the previous month showed that 70 percent supported development. Support is stronger in the coastal plain community of Kaktovik, where more than 78 percent of residents [polled] support it. He believes that Alaskans stand behind this project and the resolution. In addition, Mr. Toohey said support for [opening] ANWR has also grown tremendously nationwide; including ANWR in the presidential debates helped to educate the nation about energy, Alaska's contribution to that energy mix, and the benefits and potential for development of ANWR. National polling demonstrating in the final weeks of the campaign that a clear majority of Americans supported development of ANWR, he added. MR. TOOHEY touched on nationwide energy problems, including home heating oil supplies in the Northeast, the rise in natural gas costs in the Midwest, truckers' consumption of diesel, and recent power blackouts in California. All focus attention nationally on energy, including where it comes from, who consumes it, and how the dependence on foreign sources can be lessened. Mr. Toohey offered the following quotation from the Anchorage paper [quoting President Bush], "I campaigned hard on the notion of having environmentally sensitive exploration at ANWR, and I think we can do so." MR. TOOHEY said this resolution is important and timely. It is also important to realize that energy issues will be foremost in coming sessions in Congress, as people look at ways to reduce [dependence] or remove themselves from the current energy situation. Number 1661 CHAIR OGAN expressed the hope that [legislators] will be able to set up some high-level meetings with the Bush administration when attending the Energy Council this year. Recently appointed to the executive committee for that, Chair Ogan said he believes the coming Energy Council meetings will be some of the most important that Alaskan legislators have attended. He thanked Mr. Toohey for his work in Washington, D.C., on behalf of Alaskans. Number 1716 REPRESENTATIVE JOULE suggested it will be important that people in Washington, D.C., know that Alaskans are working on this in a bipartisan way. He encouraged having a member of the minority be on the Energy Council, which is currently not the case. CHAIR OGAN agreed it would be a good idea, suggesting that Representative Joule would be a good candidate. Chair Ogan said he would let his own wishes be known on that. He asked whether anyone else wished to testify on HJR 7; there was no response. Number 1791 REPRESENTATIVE DYSON made a motion to move HJR 7 from committee [with individual recommendations and the zero fiscal note]. There being no objection, HJR 7 was moved from the House Special Committee on Oil and Gas.
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