Legislature(1997 - 1998)
02/10/1997 03:30 PM Senate RES
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* first hearing in first committee of referral
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SJR 9 ENDORSING ANWR LEASING
SENATOR DRUE PEARCE explained SJR 9 is before this Legislature and
addressed to Congress because both bodies are newly elected and
need to take a position on oil and gas exploration in ANWR. SJR 9
encourages Congress to pass legislation for oil and gas
exploration, development, and production on the coastal plain of
ANWR. The Congressional delegation will continue to be active in
the ongoing attempts to get Congress to take action. She is
presenting SJR 9 on behalf of Arctic Power, who represents 10,000
Alaskans from every walk of life, who support opening ANWR. Arctic
Power is co-chaired by Mayor Selby of the Kodiak Island Borough and
Mano Frey of the State AFL-CIO. This topic of conversation has
been ongoing in the Legislature since the mid 1980's, and has
included controversial discussions about land exchanges within ANWR
and calving grounds. At this point, Alaskans do know how to
develop and explore for oil and gas in an environmentally sensitive
way. We are very familiar with the coastal plain, and it is time
for Congress and the President to make the decision, and let the
State of Alaska, through the phasing process, make any mitigating
decisions necessary for the flora and fauna on the 1002 coastal
area. She noted letters of support from the Resource Development
Council and the residents of the North Slope Borough. SJR 9 is not
without controversy. Senator Pearce indicated she has worked in
the past with the Arctic Slope Regional Corporation as a liaison
with the Village of Kaktovik to bring Congressional members and
others into the refuge. She does not believe her past involvement
creates a conflict of interest, because Congress will make the
decision about SJR 9.
Number 266
SENATOR LINCOLN commented SJR 9 appears to have more "whereas"
clauses than last year's legislation, and asked about page 2, line
26. Last year's legislation referred to 5,000 to 7,000 acres that
would be affected, and one and one-half percent is now decreased to
one-half of one percent in SJR 9.
SENATOR PEARCE estimated the range to be below one percent. She
suspected the percent change was technical. Regarding the change
from 5,000 to 2,000 acres, there are 26 known structures determined
by completed seismic work but that seismic work is not recent. No
one knows which of those structures may hold oil and gas reserves
in an amount that might be economically feasible to produce. It is
likely the companies will want to do new seismic testing to find
out which structures are the most prospective. It is difficult to
decide, at this time, whether 2,000 or 7,000 acres might eventually
be affected. Exploration always takes place in the winter, when
caribou are nowhere near the area. Once the desirable areas are
determined, the state could mitigate for environmental concerns.
Secondly, in two years, the state has been successful in a number
of areas, particularly the development plans for both the Badami
and North Star fields. North Star is a huge field by lower 48
standards and is the first field in Alaska to be developed
offshore. The entire field will be developed from one drilling
platform because new well technology is available. Oil and gas
industry people believe the development footprint will be much
smaller than it would have been two years ago because the
technology is developing so quickly. Two drilling sites are
planned on the Alpine site that are expected to produce over
100,000 barrels per day. That site is on a delta area, much like
the Canning River area, and some of the other river areas of ANWR.
SENATOR PEARCE explained the "Whereas" clause on the top of page 2,
regarding demand for oil, contains new numbers because the United
States' demand for oil has increased considerably during the past
two years. Our domestic crude production has continued to fall,
and is now at 6,000 barrels per day. Our overall demand for oil
has increased by 2 1/2 percent in the past year, and almost 5
percent for two years. Oil imports have risen to more than 52
percent and the price of that oil increased by over 35 percent in
one year. This country could very easily be held hostage by the
oil producers in other parts of the world as it was in the '70s and
'80s. That clause is important to include in SJR 9 because those
numbers are of increasing concern.
SENATOR LINCOLN requested SJR 9 be amended on page 3, line 10, by
deleting the words "to the maximum extent possible" because those
words are "weasel words" and add nothing to the resolution.
Number 366
SENATOR SHARP objected to Senator Lincoln's proposed amendment and
commented those "weasel" words come from the Alaska Supreme Court,
which decided the Legislature cannot mandate employers to use state
workforces exclusively. Hopefully the Administration, the
Legislature, and local governments will enforce it to the maximum
extent possible.
SENATOR PEARCE added SJR 9 is going to members of Congress who have
taken oaths to uphold the U.S. Constitution. While Alaska may want
to close its borders to outside workers, that action would fly in
the face of the interstate commerce clause. Mandating state hire
in SJR 9 would raise a flag in Congress.
VICE-CHAIR GREEN questioned the practicality of requiring an all-
Alaskan workforce since that might not be possible.
SENATOR LINCOLN explained the amendment would request that
"activity be conducted in a manner that protects the environment
and uses the state's work force." It does not create an absolute
condition or ask anyone to do anything unconstitutional.
SENATOR PEARCE indicated she understood the clause "to the maximum
extent possible" to refer to both environmental activities and use
of the state work force with the intent of making the whole
sentence stronger.
Number 403
SENATOR LEMAN appreciated Senator Lincoln's concern but feared her
proposed amendment could be detrimental to the intent because that
clause requests optimal use of the state's work force.
SENATOR TAYLOR commented the adjectives will define the type of
environmental protection; including the word "maximum" makes that
clause stronger.
SENATOR LINCOLN believed the phrase "to the extent possible" is
interpreted to mean we hope you will do this. By leaving it out
the message becomes "you will protect the environment and you will
hire Alaska's work force."
SENATOR TAYLOR repeated he interprets that phrase to mean the
highest or greatest extent possible. If the word "minimum" was
used rather than "maximum" it would have the impact suggested by
Senator Lincoln.
There being further objection to the motion, a roll call vote was
taken with Senator Lincoln voting "yea," and Senators Torgerson,
Taylor, Sharp, Leman and Green voting "nay." The motion to delete
the phrase "to the maximum extent possible" failed.
Number 459
SENATOR LINCOLN proposed to insert on page 3, after line 8, a new
clause to read:
FURTHER RESOLVED that the Congress join with the state to
ensure the continued health and productivity of the Porcupine
Caribou herd and the protection of land, water, and wildlife
resources during the exploration and development of the
coastal plain of the Arctic National Wildlife Refuge ....
She explained that clause will not weaken SJR 9 but specifies
protection of a herd that many depend upon for their lifestyle.
The clause reiterates some of the concerns of the Tanana Chiefs
Conference who support oil and gas development but not in the
calving area of the Porcupine Caribou herd.
SENATOR LEMAN commented he does not have any objection to the
clause, with the exception that the Legislature join with Congress
to ensure the continued health and productivity of the herd. He
believes Alaska is capable of that goal itself. He suggested
deleting "Congress join with" and the word "to" on the first line
of Senator Lincoln's amendment.
SENATOR LINCOLN did not object to that deletion. SENATOR LEMAN
offered his suggested language as an amendment. SENATOR PEARCE
felt all Alaskans want water, land and wildlife resources to be
protected during the exploration and development phases but
expressed concern that Senator Lincoln intended her amendment to
mean there will be no exploration in any of the areas that have
ever been used as a calving area. SENATOR LINCOLN replied that is
not the intention of the amendment.
Number 496
SENATOR PEARCE felt this type of language clarifies and strengthens
Alaskans' intent to continue to develop the North Slope in a
responsible manner. She referred to a letter from Congressman
Vinto and the misconceptions it contained.
SENATOR TAYLOR felt Senator Lincoln's amendment impacts the flow of
the resolution and suggested striking the language "join with" and
insert the word "follow" so that Congress will follow the State of
Alaska's example on the TAPS line, and to include language allowing
the state to continue managing the Porcupine herd and its current
policies of protecting the land, water, and wildlife resources. He
suggested noting the TransAlaska Pipeline because it is the same
demagogues in Congress, now typified by Mr. Vinto, who came up with
shrill rhetoric, when Alaska was seeking permits to build the
original pipeline across Alaska. Senator Taylor stated, "I heard
the same rhetoric come out, and that was the - it's almost like
writing the perfect country western song - you gotta talk about
pick-up trucks, you gotta talk about a train, you gotta talk about
jail and a dog and so on. And what these people do is, they run
right back through the same old rhetorical mantra and that is that
you gotta bring in children, you gotta threaten the children's
heritage, and you gotta talk about saving something that is the
last that ever was, and I'm sure this thing was basically just a
fund raising letter that is attached and going out to every person
that's ever contributed in Orange County, California. The
difficulty of it is that it's harkening upon an emotional response
that is bereft of any semblance of factual basis." He wanted to
reference the TAPS line in the amendment because the Central Arctic
caribou herd, which was of a major concern 20 years ago, has grown
tenfold during the period of time the pipeline has been in
operation.
Number 565
SENATOR LINCOLN asked Senator Taylor if he was speaking to her
amendment. SENATOR TAYLOR replied he was because it would be a
gross mistake to allow Congress to tell Alaskans what to do about
the Porcupine Caribou herd because we probably have some of the
world's experts in our fish and game department. The Porcupine
Caribou herd has become a poster child for every environmental
organization so Alaska needs to emphasize the good job it has done
with the Central Arctic Caribou herd, and that it intends to do the
same for both herds.
SENATOR SHARP believed Senator Lincoln's proposed amendment should
be a "Whereas" clause rather than a "Further Resolved" clause.
VICE-CHAIR GREEN clarified Senator Sharp's suggested language is
the third amendment to Senator Lincoln's amendment.
SENATOR LEMAN disagreed with the placement suggested by Senator
Sharp because the state is presently managing appropriately and is
resolving it will continue to do so.
SENATOR TAYLOR clarified Senator Leman's amendment is the only one
on the table at this time.
VICE-CHAIR GREEN stated Senator Leman's amendment reads:
FURTHER RESOLVED that the state ensure the continued health
and productivity of the Porcupine Caribou herd and the
protection of land, water, and wildlife resources during the
exploration and development of the coastal plain of the Arctic
National Wildlife Refuge...
TAPE 97-11, SIDE B
Number 000
SENATOR TAYLOR continued his objection because he believed the
clause should be a "Whereas" clause to keep the primary resolve of
SJR 9 clean and simple.
VICE CHAIR GREEN announced the motion was to adopt Senator Leman's
amendment to Amendment #2, with the "FURTHER RESOLVED" language.
Senators Lincoln, Torgerson, Leman voted for the amendment, and
Senators Taylor, Green and Sharp voted against it, therefore the
motion failed.
SENATOR SHARP called for the question to adopt Amendment #2.
SENATOR TAYLOR continued his objection. Senators Green, Leman,
Sharp, Taylor and Torgerson voted "nay" and Senator Lincoln voted
"yea," therefore the motion failed.
Number 559
SENATOR SHARP referred to a map of ANWR in committee packets, and
asked for clarification of the purple area designated as "Historic
Oil Leases" between Venetie and Arctic Village.
CAM TOOHEY , Executive Director of Arctic Power, answered the map is
of the 1002 area and details the land status. The light purple
area is a lease sale that was held in about 1980 within Gwich'en
lands for oil and gas exploration.
VICE-CHAIR GREEN asked if actual exploration occurred. MR. TOOHEY
replied a lease was entered into but he was not sure of the extent
of the exploration.
SENATOR SHARP commented that area appears to be as large as the
entire 1002 area. SENATOR TAYLOR referred to the pink areas. MR.
TOOHEY pointed out the Gwich'in historic oil lease area and noted
other areas are oil and gas activities within Canadian boundaries.
SENATOR LINCOLN confirmed no exploration occurred on the Gwich'in
lease area. SENATOR TAYLOR questioned whether the pink area he was
pointing to (both offshore and onshore) at the top of the map
contains Canadian leases. MR. TOOHEY said yes, those are historic
leases that occurred in the Canadian Arctic. He was unsure of the
recent status of those leases but noted there has been a tremendous
amount of oil and gas exploration activity in that region.
SENATOR TAYLOR asked if the Porcupine Caribou herd moves across a
specific area of the border. MR. TOOHEY said it does. SENATOR
PEARCE clarified the black dots are the wells that have been
drilled on the historic leases. SENATOR TAYLOR asked if that is
the area the caribou wander through. MR. TOOHEY said it is.
Number 518
SENATOR LEMAN referred to the issue of using the state's work
force, and pointed out his intent is that Alaskan businesses that
hire Alaskans be used, as well as the state's labor force. SENATOR
PEARCE agreed that is the intent of that language. Many Alaskan
support industry companies have massive expertise in Arctic oil
exploration, development and production, and it is important those
companies be used to the maximum extent possible.
SENATOR TAYLOR moved and asked unanimous consent that SJR 9 be
moved from committee with individual recommendations. VICE-CHAIR
GREEN announced SJR 9 is not accompanied by any fiscal notes, and
the Senate Resources Committee will be preparing a zero fiscal
note. SENATOR LINCOLN objected and asked, with the passage of SJR
9, whether a delegation would travel to Washington, D.C. as one did
last year, and whether there will be a fiscal note at some point to
allow legislators or others to move the legislation along.
SENATOR PEARCE stated two years ago a number of legislators
traveled to Washington, D.C. to lobby Congress. The legislators'
travel was paid for by the Legislature as part of its regular
operating expenses. At that time, there was also a reappropriation
of ANWR dollars that were appropriated for the first time early in
the Hickel Administration. Part of the remainder of those dollars
was appropriated to the Governor's Office for their efforts. Part
of that money was granted to Arctic Power who used those dollars
for efforts in target states. She was unaware of the Governor's
plans for the upcoming fiscal year.
SENATOR LINCOLN clarified she was questioning whether the intent is
to have legislative members involved in pursuing SJR 9 in Congress.
SENATOR PEARCE answered the two are unrelated; this resolution will
be provided so the Congressional delegation has it for their files.
If the Governor and/or the Legislators want to be a part of some
effort again this year, that decision will be made by the
leadership.
VICE CHAIR GREEN asked if there was continued objection to the
motion to move SJR 9 from committee. There being no objection, SJR
9 moved from committee with a zero fiscal note.
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