02/23/2024 01:00 PM House RESOURCES

            HJR 20-NAT'L PETROLEUM RESERVE IN ALASKA                                                                        
                                                                                                                                
1:03:21 PM                                                                                                                    
                                                                                                                                
CHAIR MCKAY announced  that the first order of  business would be                                                               
HOUSE  JOINT RESOLUTION  NO. 20,  Urging  withdrawal of  proposed                                                               
Bureau  of Land  Management  regulations  affecting the  National                                                               
Petroleum  Reserve in  Alaska; and  urging meaningful  engagement                                                               
with tribes, local governments, and affected communities.                                                                       
                                                                                                                                
1:03:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE THOMAS  BAKER, Alaska State Legislature,  as prime                                                               
sponsor, presented the sponsor statement  for HJR 20 [included in                                                               
the   committee  packet],   which  read   as  follows   [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     HJR 20 urges  that the Bureau of  Land Management (BLM)                                                                    
     withdraw  a   proposed  rule  affecting   the  National                                                                    
     Petroleum  Reserve in  Alaska  (NPR-A). The  Resolution                                                                    
     also  urges meaningful  engagement  with tribes,  local                                                                    
     governments  and impacted  communities. There  are many                                                                    
     flaws  with this  proposed policy.  In short,  the rule                                                                    
     lacks  meaningful  engagement, lacks  legal  durability                                                                    
     and has flawed economics.                                                                                                  
                                                                                                                                
     Lack of  meaningful engagement. The timing  and rollout                                                                    
     of the  rule-making was messy. The  BLM disregarded the                                                                    
     fall subsistence hunting and  whaling seasons within my                                                                    
     district, despite pleas from  my constituents to extend                                                                    
     the comment  period and  engage in  formal consultation                                                                    
     outside of traditional hunting  and whaling times. Yet,                                                                    
     BLM  ignored those  multiple requests.  Inadequate time                                                                    
     was granted  for organizations to  respond meaningfully                                                                    
     during  the   public  comment  period  and   the  BLM's                                                                    
     engagement  with  impacted   communities  was  woefully                                                                    
     insufficient. The  BLM failed  to engage  with impacted                                                                    
     communities  and organizations  as required  by federal                                                                    
     law and  agency policy.  This all came  at a  time when                                                                    
     Alaskans  were asked  to comment  on multiple  projects                                                                    
     with overlapping public comment  periods to include the                                                                    
     cancellation of leases within the  1002 Area and Ambler                                                                    
     Road projects.                                                                                                             
                                                                                                                                
     Lack   of   legal   durability.   The   proposed   rule                                                                    
     fundamentally  alters NPR-A's  purpose and  contravenes                                                                    
     both  Naval Petroleum  Reserves Production  Act (NPRPA)                                                                    
     and  congressional  intent.  The NPR-A  was  originally                                                                    
     created  in  1923  for  the purposes  of  oil  and  gas                                                                    
     development.  Later  in   1980,  the  NPRPA  amendments                                                                    
     directed  the  Secretary  of Interior  to  "conduct  an                                                                    
     expeditious  program  of  competitive leasing"  in  the                                                                    
     area. However, the BLM's proposed  rule will treat 13.1                                                                    
     million acres of Special Areas  in the NPR-A as defacto                                                                    
     wilderness.  This rule  lacks legal  durability because                                                                    
     only Congress  has the authority to  set forth national                                                                    
     energy policy,  and this proposed  rule seeks  to usurp                                                                    
     Congressional authority. Further,  it has the potential                                                                    
     to impact  future development within the  NPR-A because                                                                    
     it  shifts  the  national   energy  policy  focus  from                                                                    
     responsible     development    to     surface    estate                                                                    
     conservation. This  has the potential to  impact future                                                                    
     leasing  and development  with the  NPR-A,  as well  as                                                                    
     potential  tie-ins of  satellite  fields  to the  Trans                                                                    
     Alaska Pipeline. That is unacceptable for Alaska.                                                                          
                                                                                                                                
     Flawed   economics.   Finally,   the  BLM   failed   to                                                                    
     adequately  assess the  economic  impact this  proposed                                                                    
     rule  would  have  on   North  Slope  communities,  the                                                                    
     Federal  Treasury, and  the  greater  State of  Alaska.                                                                    
     They did not account for  the lost revenue to the North                                                                    
     Slope  Borough,  the   Federal  Treasury,  and  Alaskan                                                                    
     businesses.  Furthermore,  they  did  not  identify  or                                                                    
     assign  value to  the increased  costs  in services  to                                                                    
     Alaskans  by  the Federal  or  State  governments as  a                                                                    
     result of  the economic suffocation this  proposed rule                                                                    
     would impose.  If the proposed  rule is  published, our                                                                    
     ability  to continue  exploring and  producing for  oil                                                                    
     and gas in the NPR-A  will be negatively impacted. It's                                                                    
     important to  say again,  the NPR-A  was set  aside for                                                                    
     the   purpose  of   protecting   our  national   energy                                                                    
     security. This  will negatively  impact our  ability to                                                                    
     increase oil flowing through  the Trans Alaska Pipeline                                                                    
     from  the  NPR-A.  Our governments,  organizations  and                                                                    
     residents will be negatively impacted  from the loss of                                                                    
     revenue,  jobs   and  the  multiplier  effect   of  the                                                                    
     resource dollars.                                                                                                          
                                                                                                                                
1:06:30 PM                                                                                                                    
                                                                                                                                
CHAIR MCKAY opened invited testimony.                                                                                           
                                                                                                                                
1:06:42 PM                                                                                                                    
                                                                                                                                
ANDY  MACK, CEO,  Kuukpik  Corporation,  Village Corporation  for                                                               
Nuiqsut, spoke in  support of HJR 20.  He  explained that Kuukpik                                                               
Corporation  is  the  private  landowner  of  145,000  acres  for                                                               
Nuiqsut village.   For the past several  decades, the corporation                                                               
has been  involved in decisions regarding  the National Petroleum                                                               
Reserve in  Alaska (NPR-A).   The corporation works  for balanced                                                               
development;  to protect  the land;  and to  maintain subsistence                                                               
activities.   Development  is mitigated  as much  as possible  to                                                               
avoid  impacts.   In  many  instances, Kuukpik  has  been at  the                                                               
forefront of protecting the land.   The corporation sees the most                                                               
concerning issue to be the  impact on subsistence activities.  He                                                               
drew the  committee's attention  to a  particular section  of the                                                               
proposed  Bureau of  Land Management  (BLM)  rule which  suggests                                                               
that  other  things are  more  important  than subsistence.    He                                                               
pointed out  the proposed  rule is written  so the  effects would                                                               
spill out to additional areas and activities in the NPR-A                                                                       
                                                                                                                                
1:12:31 PM                                                                                                                    
                                                                                                                                
D.J. FAUSKE, Director, Government  and External Affairs for North                                                               
Slope Borough, spoke in support of  HJR 20 on behalf of the North                                                               
Slope  Borough.   The borough  is  a home  rule government  which                                                               
represents  over  10,000  residents, many  communities,  and  the                                                               
entire  national  petroleum reserve.    The  new BLM  regulations                                                               
would drastically  change the terms  Congress set for  the NPR-A.                                                               
The new  regulations were set  without consulting  Alaska natives                                                               
or organizations  located within  the Arctic.   An  extension was                                                               
requested  but denied.   The  rule will  also affect  oil flowing                                                               
through the pipeline.                                                                                                           
                                                                                                                                
1:17:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE referenced  a book  titled The  Moral Case                                                             
for  Fossil  Fuels which  brought  to  light  the issue  of  life                                                             
expectancy among  people in the Arctic.   He asked Mr.  Fauske to                                                               
comment on how the generation views oil.                                                                                        
                                                                                                                                
MR. FAUSKE  responded to the question  with personal experiences,                                                               
referencing  his family  history.   He  also  discussed the  life                                                               
expectancy which  was previously 56  years old.  Now  the average                                                               
life expectancy is between 68 and  69.  People of the Arctic have                                                               
benefited greatly from oil exploration.                                                                                         
                                                                                                                                
1:20:58 PM                                                                                                                    
                                                                                                                                
CHAIR MCKAY called  on several testifiers who could  not be heard                                                               
due to technical difficulties.                                                                                                  
                                                                                                                                
1:22:05 PM                                                                                                                    
                                                                                                                                
KARA MORIARTY, President and CEO,  Alaska Oil and Gas Association                                                               
(AOGA), provided  invited testimony  in support of  HJR 20.   She                                                               
stated that  the oil  and gas  industry expect  to spend  over 14                                                               
billion  dollars in  capital expenditures  in a  five-year period                                                               
from 2023  to 2028,  much of  which will be  spent in  the NPR-A.                                                               
This  legislation  appropriately  requests BLM  to  withdraw  its                                                               
proposed  NPR-A rule  which  would  be a  complete  shift in  BLM                                                               
management  of the  area.   The proposed  rule presents  many new                                                               
substantive standards  which would  have significant  and adverse                                                               
impacts.     Additionally,  the  proposed  rule   conflicts  with                                                               
congressional intent and raises  questions of legal durability of                                                               
the proposal.                                                                                                                   
                                                                                                                                
1:25:28 PM                                                                                                                    
                                                                                                                                
BRIDGET  ANDERSON,  Senior   Vice  President,  External  Affairs,                                                               
Arctic Slope  Regional Corporation, spoke  in support of  HJR 20,                                                               
emphasizing the  lack of input  by people  who live in  the area.                                                               
She  also  called  into  question  the  necessity  of  the  rule,                                                               
pointing  out that  the proper  process  was not  followed.   The                                                               
proposed  rule  is worded  in  such  a  way  that it  calls  into                                                               
question whether the people who live  in the area will be able to                                                               
use  the land.   There  is unified  support for  HJR 20  from the                                                               
region.                                                                                                                         
                                                                                                                                
1:28:40 PM                                                                                                                    
                                                                                                                                
DOREEN  LEAVITT, Director,  Natural Resources,  Inupiat Community                                                               
of  the  North  Slope,  spoke  in  support  of  HJR  20,  drawing                                                               
attention particularly  to the lack  of notification.   All eight                                                               
of  the  communities and  nine  federally  recognized tribes  are                                                               
impacted  by  the  BLM  decision.     The  tribes  have  a  legal                                                               
entitlement  to proper  consultation which  did not  occur.   The                                                               
tribes were left out of the  decision-making process.  This has a                                                               
direct impact on  the land and the people, changing  the tax base                                                               
as well as access to privately owned land.                                                                                      
                                                                                                                                
1:31:47 PM                                                                                                                    
                                                                                                                                
CHAIR MCKAY opened public testimony                                                                                             
                                                                                                                                
1:32:27 PM                                                                                                                    
                                                                                                                                
CHERYL  BOWIE, representing  self, spoke  in support  of HJR  20.                                                               
She  discussed  being born  in  Kotzebue  and described  personal                                                               
experiences regarding the  issues of oil and gas.   She described                                                               
the values of the Arctic.                                                                                                       
                                                                                                                                
1:36:21 PM                                                                                                                    
                                                                                                                                
NAGRUK HARCHAREK,  President, Voice of the  Arctic Inupiaq, spoke                                                               
in  support of  HJR 20.   He  described the  Voice of  the Arctic                                                               
Inupiaq   as   a   non-profit  comprised   of   cities,   tribes,                                                               
corporations,  and  regional  organizations  concerned  with  the                                                               
North Slope who are concerned about  the future of the Arctic and                                                               
explained why the organization supports HJR 20.                                                                                 
                                                                                                                                
1:38:04 PM                                                                                                                    
                                                                                                                                
KARI  NORE,   Director,  External  Affairs,  Alaska   Chamber  of                                                               
Commerce,  spoke  in  support  of  HJR 20.    She  described  the                                                               
diversity  of the  Alaska Chamber  of Commerce  membership.   The                                                               
Chamber  supports  Alaska oil  and  gas  exploration in  Alaska's                                                               
federal areas.  She pointed  out that the NPR-A ensures America's                                                               
national energy security while balancing it with conservation.                                                                  
                                                                                                                                
1:39:42 PM                                                                                                                    
                                                                                                                                
LEILA KIMBRELL, Executive  Director, Resource Development Council                                                               
for Alaska, spoke  in support of HJR 20.   She described the work                                                               
of  the  Resource  Development   Counsel  for  Alaska  (RDC)  and                                                               
explained why  the RDC supports  the resolution.   She emphasized                                                               
the potential for irresponsible development  in the NPR-A and the                                                               
North Slope.  Time is of the essence.                                                                                           
                                                                                                                                
1:42:35 PM                                                                                                                    
                                                                                                                                
CHAIR MCKAY closed public testimony.                                                                                            
                                                                                                                                
1:42:44 PM                                                                                                                    
                                                                                                                                
CHAIR MCKAY noted that there were no amendments.                                                                                
                                                                                                                                
1:42:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAUSCHER moved  to report HJR 20  out of committee                                                               
with individual recommendations and accompanying fiscal notes.                                                                  
                                                                                                                                
1:43:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MEARS objected  for purpose  of discussion.   She                                                               
expressed appreciation  for the  resolution and pointed  out that                                                               
all Alaskans have  a responsibility to look out for  the land for                                                               
the greater good.                                                                                                               
                                                                                                                                
REPRESENTATIVE MEARS removed her objection.                                                                                     
                                                                                                                                
1:44:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  explained that what  the BLM has  done is                                                               
unconscionable;  it seems  the bureau  is going  to incrementally                                                               
choke off the life blood of the state.                                                                                          
                                                                                                                                
1:44:57 PM                                                                                                                    
                                                                                                                                
CHAIR  MCKAY  announced there  being  no  objection, HJR  20  was                                                               
reported out of the House Resources Standing Committee.