Legislature(2021 - 2022)BARNES 124
03/09/2022 01:00 PM House RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| HJR34 | |
| HB347 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HJR 34 | TELECONFERENCED | |
| += | HB 347 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
March 9, 2022
1:10 p.m.
MEMBERS PRESENT
Representative Josiah Patkotak, Chair
Representative Grier Hopkins, Vice Chair
Representative Zack Fields
Representative Calvin Schrage
Representative George Rauscher
Representative Ronald Gillham
Representative Tom McKay
MEMBERS ABSENT
Representative Sara Hannan
Representative Mike Cronk
COMMITTEE CALENDAR
HOUSE JOINT RESOLUTION NO. 34
Supporting oil and gas leasing and development within the
National Petroleum Reserve in Alaska.
- HEARD & HELD
HOUSE BILL NO. 347
"An Act relating to the confidentiality of certain state records
relating to animals; and providing for an effective date."
- MOVED CSHB 347(RES) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HJR 34
SHORT TITLE: NAT'L PETROLEUM RESERVE IN ALASKA
SPONSOR(s): REPRESENTATIVE(s) PATKOTAK
02/22/22 (H) READ THE FIRST TIME - REFERRALS
02/22/22 (H) RES
03/09/22 (H) RES AT 1:00 PM BARNES 124
BILL: HB 347
SHORT TITLE: CONFIDENTIALITY OF ANIMAL RECORDS
SPONSOR(s): REPRESENTATIVE(s) RAUSCHER
02/22/22 (H) READ THE FIRST TIME - REFERRALS
02/22/22 (H) RES
03/02/22 (H) RES AT 1:00 PM BARNES 124
03/02/22 (H) -- MEETING CANCELED --
03/04/22 (H) RES AT 1:00 PM BARNES 124
03/04/22 (H) Heard & Held
03/04/22 (H) MINUTE(RES)
03/07/22 (H) RES AT 1:00 PM BARNES 124
03/07/22 (H) Heard & Held
03/07/22 (H) MINUTE(RES)
03/09/22 (H) RES AT 1:00 PM BARNES 124
WITNESS REGISTER
TREVOR FULTAN, Staff
Representative Josiah Patkotak
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Answered a question on behalf of
Representative Patkotak, prime sponsor of HJR 34.
BRIDGET ANDERSON, Senior Vice President
External Affairs
Arctic Slope Regional Corporation
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HJR 34.
MORRIE LEMEN, JR., Executive Director
Inupiat Community of the Arctic Slope
Barrow, Alaska
POSITION STATEMENT: Testified in support of HJR 34.
HARRY BROWER, JR., Mayor
North Slope Borough
Utqiagvik, Alaska
POSITION STATEMENT: Testified in support of HJR 34.
KARA MORIARITY, President & CEO
Alaska Oil and Gas Association (AOGA)
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HJR 34.
ACTION NARRATIVE
1:10:45 PM
CHAIR JOSIAH PATKOTAK called the House Resources Standing
Committee meeting to order at 1:10 p.m. Representatives McKay,
Fields, Hopkins, Rauscher, Gillham, Schrage, and Patkotak were
present at the call to order.
HJR 34-NAT'L PETROLEUM RESERVE IN ALASKA
1:11:25 PM
CHAIR PATKOTAK announced that the first order of business would
be HOUSE JOINT RESOLUTION NO. 34, Supporting oil and gas leasing
and development within the National Petroleum Reserve in Alaska.
CHAIR PATKOTAK handed the gavel to Vice Chair Hopkins.
1:11:59 PM
CHAIR PATKOTAK, as prime sponsor of HJR 34, explained that the
resolution urges responsible development of the National
Petroleum Reserve Alaska (NPR-A). He stated the resolution
comes at an important time because in January 2022 the US
Department of Interior announced that instead of staying with
the NPR-A [Integrated Activity] Plan finalized in 2020, it was
reverting to the more restricted plan of 2013, effectively
removing about seven million acres (30 percent) of the reserve
from oil and gas leasing. It causes him consternation that the
department made the decision and set this policy from
Washington, DC, without seeking feedback from those most
affected by development in the NPR-A: the North Slope Borough
and the tribes, Native corporations, and communities within the
NPR-A, along with the State of Alaska.
CHAIR PATKOTAK elaborated on the negative implications of that
decision. He related that according to the 2020 Record of
Decision (ROD) for the NPR-A Integrated Activity Plan, the
reserve holds the potential to: generate over $4.75 billion in
state, federal, and local government revenues, create over 3,600
direct and 2,750 indirect jobs annually, increase throughput and
extend the life of the Trans Alaska Pipeline System (TAPS),
strengthen national security, bolster the US economy, and
provide affordable energy to US customers. The NPR-A is of
interest to him because it is in his backyard and falls wholly
within the jurisdiction of the North Slope Borough. The borough
oversees some of the permitting aspects of development and
strives to set a balance between the economic benefits brought
by development and the protection of sensitive land and cultural
subsistence resources. The economic benefits include positive
direct financial impacts and indirect impacts generationally for
those who live within these impacted communities and who would
potentially be below the poverty line without the resource
development. Aside from the jobs and wages is the ability for
the local municipality to provide basic services and funding for
schools, hospitals, and water/sewer systems.
CHAIR PATKOTAK stated that, overall, HJR 34 asks that things
don't lean too far in the direction of either development or
conservation. If development is overly restricted, the
opportunity is missed to meet the needs of rural communities on
the North Slope and other areas of the state. If critical areas
are not protected, valuable subsistence resources could be
endangered. The 2020 plan struck that balance and was done by
working with those who know the area best. He pointed out that
the resolution's "BE IT RESOLVED" clauses do not advocate for
either the 2020 plan or 2013 plan but ask that the benefits of
development be weighed against the potential impacts with the
input of the entities he has mentioned.
1:19:31 PM
REPRESENTATIVE RAUSCHER stated he supports the resolution. He
asked whether there is a breakdown of the state, federal, and
local government revenues, so it can be known how much the state
would take in from the $4.75 billion in revenue.
CHAIR PATKOTAK replied he doesn't have that breakdown with him.
He deferred to Trevor Fultan to respond further.
1:20:11 PM
TREVOR FULTAN, Staff, Representative Josiah Patkotak, Alaska
State Legislature, on behalf of Representative Patkotak, prime
sponsor of HJR 34, explained that the numbers provided in the
resolution itself come from the draft environmental impact
statement (EIS). He said he will provide those to the committee
as a follow up.
1:20:38 PM
REPRESENTATIVE FIELDS said he supports the resolution. He
requested more insight into the most proximate communities on
the North Slope and how development within the NPR-A has promise
for these communities.
REPRESENTATIVE PATKOTAK responded that the closest community to
any development would be Nuiqsut. Past exploration has been
around the Nuiqsut area where hunters from Anaktuvuk Pass have
come across industry operators. Depending on the season lots of
summer hunting is done from Barrow and Nuiqsut eastward and
westward. Regarding Teshekpuk Lake, the next phase is the
Willow Project where development and infrastructure will move
westward. A positive direct impact is the NPR-A [Impact]
Mitigation Fund, which is "kind of" the state's share of royalty
that is federally obligated to be held in an account and NPR-A
affected communities can apply for grants. It is in the
legislature's capital budget each year and grants have been
given for tribal operations, village operations, playground
equipment, water and sewage, and other opportunities for
villages. He pointed out that he is using the term villages
because not every community is represented by an organized city,
Point Lay being an example.
1:24:11 PM
VICE CHAIR HOPKINS opened invited testimony.
1:24:54 PM
The committee took a brief at-ease.
1:25:28 PM
BRIDGET ANDERSON, Senior Vice President, External Affairs,
Arctic Slope Regional Corporation (ASRC), testified in support
of HJR 34. She said ASRC is one of the 12 land-owning Alaska
Native corporations created through the [1971] Alaska Native
Claims Settlement Act (ANCSA) and represents the business
interests of more than 13,000 Inupiaq shareholders. She
expressed ASRC's gratitude for the legislature's willingness to
highlight the strategic importance and purpose of the NPR-A to
decisionmakers in Washington, DC, through HJR 34. For years
ASRC and other North Slope entities have advocated for the
responsible development of natural resources in this region,
including the NPR-A. This is not always the case, as this
region was the only one to oppose the passage of ANCSA because
the region's leaders did not believe the land allocation
formulas considered the viewpoint of the region's people.
Despite this opposition to the law that created ASRC, early
leaders worked to build the corporation.
MS. ANDERSON stated that during its five decades of existence,
ASRC has found ways to work together with its in-region
partners, the State of Alaska, industry, and the federal
government to meet the mandates and directives in ANCSA. One of
those directives is to provide benefits to shareholders. To
that end, ASRC uses the land it was conveyed through ANCSA for
the cultural and economic benefit of its shareholders. Some of
ASRC's lands are within the boundaries of the NPR-A. Despite
the intent of ANCSA, ASRC has been blocked from developing some
of its lands by the legislative and executive branches in
Washington, DC. Over the years ASRC has put significant
resources toward engaging with the federal government to share
its perspective on responsible resource development in its
region. Despite ASRC's sustained efforts and willingness to
work with the federal government, ASRC's perspectives are often
drowned out by entities that have no ties to the region nor any
understanding of the nuances of the ANCSA model of indigenous
representation.
MS. ANDERSON related that the choice by members of Congress and
the administration to ignore ASRC's voice is frustrating and
insulting. She said ASRC is keenly aware that advances in
responsible resource development on the North Slope and in the
NPR-A have benefitted the region, the state, and the nation.
She offered ASRC's support for HJR 34 and said ASRC stands ready
to be part of the solution for the nation's energy independence
and national security, and to support Alaskans and Americans.
1:28:42 PM
REPRESENTATIVE FIELDS said he thinks people sometimes fail to
appreciate the broad benefits of development for ASRC and its
subsidiaries as well as for other regional corporations. He
stated it would be nice to see a map of how other Alaska Native
corporations (ANCs) are involved in development and pipeline
maintenance given that the jobs and shareholder impacts go
beyond the North Slope and are of statewide importance.
1:30:10 PM
MORRIE LEMEN, JR., Executive Director, Inupiat Community of the
Arctic Slope, testified in support of HJR 34 and stated he
agrees with ASRC's testimony. He said the Inupiat Community of
the Arctic Slope (ICAS) is one of two regional tribes,
encompassing 97,000 square miles of service area within its
constitution and having dominion over those lands.
MR. LEMEN related that the mission of ICAS is to support
reasonable oil and gas development, which can and will be done
safely within NPR-A. He said ICAS supports economic development
to sustain a future within its region. He stated that ICAS has
a responsibility to stand up for the indigenous people in the
Arctic who have a right to healthy living and that development
will get them there. Multi-generational families live in single
dwelling homes and without development ICAS is not able to give
them the quality of life they need to sustain themselves in the
Arctic. They end up leaving their homes in the Arctic to find a
way to live elsewhere; that is not by choice, it's because
without development ICAS is unable to help them along the way.
He thanked the committee for hearing ICAS's cries for help in
making responsible development happen on the North Slope.
1:34:41 PM}
HARRY BROWER, JR., Mayor, North Slope Borough, testified in
support of HJR 34. He said the North Slope Borough represents
roughly 10,000 residents in eight communities, and the borough's
jurisdiction includes the entire NPR-A. Over the years the
borough, staff, and residents have spent countless hours
attending public meetings and commenting on proposals about the
NPR-A because the NPR-A is their living room and ancestral home.
The borough formed to ensure that the Inupiat people of the
North Slope have input over the development of the North Slope.
MAYOR BROWER specified that the borough exercises zoning and
other oversight in partnership with the state, which has led to
some of the strictest environmental regulations in the nation
and one of the best examples of responsible development in the
world. The borough makes sure that the benefit of North Slope
development flows not just to the state and federal government,
corporations, and shareholders, but also to the people of the
North Slope. In his lifetime amazing progress has been made
with reduced poverty, expanded services, and increased wellbeing
of the borough's people. But now the federal government wants
to take the borough backwards by throwing out its input and
rewriting the plan that was just adopted in 2020, effectively
sanctioning the land within the borough and the opportunities
for all Alaskans. Meanwhile the federal government looks to
reduce sanctions on countries like Venezuela or Iran so they can
add more oil to the global market.
MAYOR BROWER stated that Alaskans, and especially indigenous
Alaskans, have always answered the call to service for their
country. In the public process [the borough] has offered its
voice, has asked for the opportunity to responsibly develop the
borough's resources while protecting the subsistence resources
that its people depend on, but has been ignored. He thanked the
committee for showing with HJR 34 that it is listening and urged
that the resolution be passed.
1:39:13 PM
VICE CHAIR HOPKINS opened public testimony on HJR 34.
1:39:31 PM
KARA MORIARITY, President & CEO, Alaska Oil and Gas Association
(AOGA), testified in support of HJR 34 and thanked the sponsor
for introducing the resolution. She noted that AOGA represents
the majority of companies that have state and federal interests
both onshore and offshore and that the industry is the single
most important economic driver in the state, accounting for
roughly 25 percent of all jobs and wages. It is estimated that
the industry will provide local and state governments with over
$3 billion this year. Federal lands continue to provide some of
the most promising opportunities for oil and gas leasing and
development in Alaska, which is particularly essential to North
Slope communities. For example, she related, she experienced
the many benefits derived from oil and gas firsthand as a former
teacher in Atqasuk, one of the villages in NPR-A. The village's
schools, housing, community infrastructure, wages, and benefits
were the best of all rural Alaska.
MS. MORIARITY said that despite clear federal policy by Congress
in 1980 requiring the NPR-A to be administered in a manner that
responsibly increases the development of production in US energy
reserves, the first NPR-A lease sale did not occur until 1998
and the first oil development in NPR-A did not commence until
2015. At a time of global instability and rising energy costs,
the benefits of energy independence could not be clearer. She
said AOGA joins with Chair Patkotak in this resolution in urging
the federal government to maximize the area available for
development in the NPR-A so the benefits of development can
continue to be realized by the state and federal governments and
most importantly for the benefit of the local communities.
1:42:01 PM
VICE CHAIR HOPKINS invited Bryce Ward, mayor of the Fairbanks
North Star Borough, to provide public testimony.
1:42:37 PM
The committee, unable to hear Mayor Ward, took a brief at-ease
to address the technical difficulty with the audio system.
1:42:42 PM
VICE CHAIR HOPKINS again invited Mayor Ward to provide public
testimony.
1:44:15 PM
The committee, still unable to hear Mayor Ward, took another
brief at-ease to resolve the problem with the audio system.
1:44:40 PM
VICE CHAIR HOPKINS apologized for the continuation of the
technical difficulty and invited Mayor Ward to submit written
testimony.
1:45:30 PM
VICE CHAIR HOPKINS closed public testimony on HJR 34.
1:45:45 PM
VICE CHAIR HOPKINS returned the gavel to Chair Patkotak.
1:46:17 PM
CHAIR PATKOTAK announced that HJR 34 was held over.
HB 347-CONFIDENTIALITY OF ANIMAL RECORDS
1:46:36 PM
CHAIR PATKOTAK announced that the final order of business would
be HOUSE BILL NO. 347, "An Act relating to the confidentiality
of certain state records relating to animals; and providing for
an effective date." [Before the committee, adopted as a working
document on 3/4/22, was Version I, the proposed committee
substitute (CS) for HB 347, labeled 32-LS1471\I, Bullard,
2/28/22.]
1:46:53 PM
REPRESENTATIVE RAUSCHER, prime sponsor of HB 347, made closing
comments on the bill. He noted there is consensus on both sides
of the argument regarding the problem that is faced. He urged
committee members to vote yes on HB 347, an important bill that
was several years in the making.
[Although a Version G had not been previously adopted as a
working document, the following motion was made to report
Version G out of committee.]
1:47:33 PM
REPRESENTATIVE HOPKINS moved to report CSHB 347, Version 32-
LS1471\G, Bullard, 3/4/22, out of committee with individual
recommendations and the accompanying [zero] fiscal note. There
being no objection, CSHB 347(RES) was reported out of the House
Resources Standing Committee.
1:47:55 PM
The committee took a brief at-ease.
1:47:58 PM
REPRESENTATIVE PATKOTAK noted the committee would hear HB 299 at
its next meeting.
1:50:11 PM
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 1:50 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HJR 34 Supporting Document Petroleum News Article 3.9.2022.pdf |
HRES 3/9/2022 1:00:00 PM SRES 3/28/2022 3:30:00 PM |
HJR 34 |
| HJR 34 Supporting Document BLM Memo 3.9.2022.pdf |
HRES 3/9/2022 1:00:00 PM SRES 3/28/2022 3:30:00 PM |
HJR 34 |
| HJR 34 Sponsor Statement 3.9.2022.pdf |
HRES 3/9/2022 1:00:00 PM SRES 3/28/2022 3:30:00 PM |
HJR 34 |
| HJR 34 Supporting Document NPR-A ROD Executive Summary 3.9.2022.pdf |
HRES 3/9/2022 1:00:00 PM SRES 3/28/2022 3:30:00 PM |
HJR 34 |
| HJR 34 Letter of Support DNR 3.9.2022.pdf |
HRES 3/9/2022 1:00:00 PM SRES 3/28/2022 3:30:00 PM |
HJR 34 |
| HJR 34 Letter of Support ICAS NSB ASRC 3.9.2022.pdf |
HRES 3/9/2022 1:00:00 PM SRES 3/28/2022 3:30:00 PM |
HJR 34 |