Legislature(2017 - 2018)BARNES 124
01/24/2017 11:30 AM House ARCTIC POLICY, ECONOMIC DEV., & TOURISM
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| Audio | Topic |
|---|---|
| Start | |
| HJR5 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HJR 5 | TELECONFERENCED | |
HJR 5-ENDORSING ANWR LEASING; RELATED ISSUES
11:32:20 AM
CHAIR WESTLAKE announced that the only order of business would
be HOUSE JOINT RESOLUTION NO. 5, Urging the United States
Congress to pass legislation to open the coastal plain of the
Arctic National Wildlife Refuge to oil and gas development;
urging the United States Department of the Interior to recognize
the private property rights of owners of land in and adjacent to
the Arctic National Wildlife Refuge; relating to oil and gas
exploration, development, production, and royalties; and
relating to renewable and alternative energy technologies.
11:32:44 AM
CHAIR WESTLAKE, as prime sponsor, introduced HJR 5. He opined
that the opening of the Arctic National Wildlife Refuge (ANWR)
would be beneficial to Alaska, as well as the rest of the United
States. He said the first priority of his constituents in House
District 40 is subsistence. He stated, "We want the jobs that
come with this." He indicated that the proposed joint
resolution would create tens of thousands of jobs across the
nation. He emphasized that he would not be offering HJR 5 if he
did not think that development in ANWR could be done [in an
environmentally responsible manner]. He deferred to his staff
for further presentation of the proposed legislation.
11:33:59 AM
JESSE LOGAN, Staff, Representative Dean Westlake, presented HJR
5 on behalf of Representative Westlake, prime sponsor. He
stated that if passed by both bodies, HJR 5 would signify a
unified voice of Alaska - to U.S. Congress and the new
Presidential Administration - that Alaska supports the opening
of the coastal plain of ANWR for oil and gas development. Mr.
Logan said HJR 5 urges U.S. Congress to pass legislation to open
["the 1002 study area"] of ANWR, urges the U.S. Department of
the Interior to recognize the property rights of owners of land
in and adjacent to the refuge, and recognizes the efforts the
State of Alaska has made in developing and deploying renewable
energy across the state.
MR. LOGAN reviewed that upon passage of the Alaska National
Interest Lands Conservation Act (ANILCA), by U.S. Congress, in
1980, 1.5 million acres of the nearly 19.5 million acres that
make up ANWR were set aside specifically for future
consideration of oil and gas development. He said, "Section
1002 of ANILCA set aside 1.5 million acres for consideration of
oil and gas development on the coastal plain of the refuge." He
relayed that depending on the structure of the federal
legislation that would authorize the development and
exploration, it's possible that less than 2,000 acres would be
needed for surface infrastructure, which represents less than
.01 percent of the refuge - a footprint often compared to a
postage stamp on a football field.
MR. LOGAN stated that according to the Energy Information
Administration (EIA), the operation of the Trans-Alaska Pipeline
System (TAPS) is uneconomical if production falls below 200,000
barrels per day; current production is just over 500,000 barrels
per day, which is down from the peak of 2 million in the late
'80s. He said TAPS has seen a decline of about 5 percent
annually. Less oil produced means slower moving oil, which in
turn means colder oil, and that combination "makes complicated
engineering and operation of TAPS." Mr. Logan said the EIA
estimates that development of ANWR would peak approximately 10
years after the beginning of production; peak flow would be
between 500,000 and 1.5 million barrels per day. He said the
low estimate could double the throughput of TAPS, while the high
end could quadruple it.
MR. LOGAN stated that the United States Geological Survey (USGS)
has estimated an approximate mean of 10.5 billion barrels of
recoverable oil; however, this number is an estimate, since no
one has ever developed this resource, and recoverable oil is
based on a range of $12 to $24 per barrel.
MR. LOGAN stated that Alaska has been responsibly developing its
natural resources for decades, while also maintaining some of
the highest environmental standards in the world. For years,
Alaska congressional delegation has been putting forth
legislation to open the plain of ANWR. He stated that
responsibly opening ANWR is not only vital to Alaska's economic
future, but also to the nation's inner security. He said the
proposed joint resolution would give Alaska's congressional
delegation a clear message and "some extra ammunition" that the
legislature and the state supports "the passage of that
legislation."
11:37:08 AM
REPRESENTATIVE NEUMAN noted that the prime objection to opening
the 1002 study area has been the possible effects on the
Porcupine Caribou herd. He asked Chair Westlake if his
understanding of the general consensus of his constituents is
that they believe there could be more development in the area
without affecting locals.
CHAIR WESTLAKE replied that Representative Neuman had hit upon
something missing, which is "the coastal zone management
component of this." He added, "And having that - and having
local input back in there - certainly would bolster that." He
reiterated that the people in the area would welcome the
opportunity to have the jobs that would result from the opening
of ANWR. He emphasized the importance of having coastal zone
management.
REPRESENTATIVE NEUMAN noted that in Kotzebue, a wildlife
subsistence board had been created to manage wildlife in the
area from the Red Dog Mine to the fort. He said if there was
going to be any detrimental effect from a project, the board
could stop the project. He asked the sponsor if he anticipated
there might be a local board to oversee the 1002 region, such
that the Natives in the area could suspend development or
oversee the wildlife management in the area.
CHAIR WESTLAKE, regarding the overseeing of the Red Dog Mine
projects, emphasized that the board had been created right from
the start. He said, "Everything was above board, and it works."
Notwithstanding that, he said he could not predict how such a
board could work in conjunction with possible projects in ANWR,
"because we're not there yet."
REPRESENTATIVE NEUMAN directed attention to the first sentence
of the last paragraph of the sponsor statement, which read as
follows, [original punctuation provided]:
HJR 5 urges Congress to take action and open the 1002
Area to oil and gas development and to do so in ways
that protect local residents as well as the Porcupine
Caribou herd.
REPRESENTATIVE NEUMAN asked the bill sponsor if he could offer
clarification as to what type of protection he had in mind.
CHAIR WESTLAKE said there would be further discussion on the
topic. He stated, "Just me answering those alone is doing a
disservice to the people in Alaska." He said he would like to
hear both sides of the issue.
11:40:34 AM
REPRESENTATIVE EDGMON said one big difference of the Northwest
Arctic Borough is the fact that it is an organized borough;
therefore, it has more authority through its subsistence board,
which has been staffed by elders from its inception in the
1980s, at the outset of the Red Dog project.
CHAIR WESTLAKE offered that at the time there had been an
agreement through Cominco Alaska and NANA Regional Corporation.
REPRESENTATIVE EDGMON indicated that a grant had been involved,
and it was more enforceable, because there had been the
formation of a borough. He offered his understanding that the
1002 study area does not reside in the North Slope Borough.
MR. LOGAN offered his understanding that Representative Edgmon
is correct.
REPRESENTATIVE EDGMON recollected that the aforementioned
borough formation played a big role in local control over the
Red Dog project.
11:42:28 AM
REPRESENTATIVE TUCK opined that it is important to include
language in HJR 5 seeking protection of the Porcupine Caribou
herd, because there may be opposition [to the opening of ANWR]
from members of U.S. Congress, and such provisions may give them
confidence that Alaska intends to do things right, protect
everyone's interest, and have sound development of resources.
11:43:13 AM
REPRESENTATIVE NEUMAN opined that the issue of opening ANWR is
an important one that has come before the legislature before.
He related that he thinks the issue of wildlife is important,
and he explained that because Chair Westlake is a new
legislator, he would like to find out his stance on the issue of
wildlife management, restrictions on hunting, and whether or not
the herd is currently a "level herd."
CHAIR WESTLAKE said there are several herds out there. He
indicated that [the number of caribou in the area] has dropped
some, but has leveled out.
11:43:54 AM
REPRESENTATIVE KNOPP, as one who had previously worked in the
area being discussed, noted that while some locals had been
allowed to hunt, those visiting or working there were not
allowed to do so. He said the state makes provisions for its
wildlife through a regulatory process. He stated that other
than making reference to that regulatory process, he would be
reluctant to insert any details to wildlife management in HJR 5.
He said he would like to see a resolution of support for HJR 5
from the people of Kaktovik, since that community is close to
[the 1002 study area].
11:45:59 AM
REPRESENTATIVE JOSEPHSON expressed support for HJR 5. He stated
that he thinks the area can be opened [to development] safely.
He directed attention to language on page 3, lines 7, of HJR 5,
which references offshore drilling. He offered his
understanding that the bill sponsor is trying to emphasize that
"if there's going to be any federal reluctance on offshore
drilling, it's all the more important to do ANWR."
CHAIR WESTLAKE confirmed that with the closing of offshore
drilling, "this makes it even more imperative; this is what we
have now." He indicated that [oil spills] can be contained more
easily on land.
11:46:59 AM
REPRESENTATIVE TUCK said Alaska has repeatedly demonstrated how
well it does on the North Slope with land drilling. He
mentioned the oil spill in the Gulf of Mexico and asked, "Why in
the world do we want to push people offshore into the dangerous
oil spill potential when we can do it safely right here in the
1002 area?" He encouraged opening the 1002 study area. He said
it had been pointed out "by our presenter" that it would be
safe. He offered his understanding that the size of the caribou
herds had grown three times its size since the pipeline was
built, which he said shows that resource development and caribou
herds can exist side by side.
11:48:28 AM
REPRESENTATIVE NEUMAN related he had heard that the footprint
being considered in area 1002 is similar in size to the Houston
Airport in the middle of the state of Texas. He asked the bill
sponsor to describe how much land would actually be used.
MR. LOGAN said the answer depends largely on the federal
legislation that authorizes the exploration. He said recently
bills that have been introduced have designated less than 2,000
acres for service development. He mentioned preservation of
land and wildlife species, as well as the development of
directional drilling. He said several years ago, U.S. Senator
Lisa Murkowski introduced a bill to allow development of ANWR
from outside its borders using only directional drilling.
REPRESENTATIVE NEUMAN noted that HJR 5 speaks to the 1002 area,
and he asked again how much area would be needed for
development.
CHAIR WESTLAKE said he does not know the answer at this time.
11:50:08 AM
REPRESENTATIVE EDGMON directed attention to the second "WHEREAS"
clause, on page 2, lines 5-7, of HJR 5, which read as follows:
WHEREAS the 1002 study area is part of the coastal
plain located within the North Slope Borough, and many
of the residents of the North Slope Borough, who are
predominantly Inupiat, are supportive of development
in the 1002 study area; and
REPRESENTATIVE EDGMON said he presumes it would be "almost pro
forma to get a gesture of support from the borough."
CHAIR WESTLAKE answered that is correct. He said, "They've
already expressed support ...."
REPRESENTATIVE EDGMON remarked that in his time in the
legislature, he has seen five versions of this legislation. He
said he understands the intent of expressing the legislature's
unwavering support for opening ANWR. He said he thinks this is
one major resource development project that "crosses all
political boundaries" in terms of support. He expressed support
for HJR 5, and stated that he would like it to pass through the
legislature in an expedient manner. He noted that two of
Alaska's congressional delegates from the U.S. Senate would be
coming through the Alaska legislature in about a month's time,
and he opined it would be appropriate to give them this
legislation in order to appeal to the new Administration the
sense of strong support and urgency to "get this thing moving."
11:52:33 AM
REPRESENTATIVE TUCK directed attention to a handout in the
committee packet, titled "ANWR Land Use," which he said offers a
visual of hypothetical development areas. It shows that 50
percent of ANWR is refuge land; 42 percent of ANWR is wilderness
land; 8 percent of ANWR is the 1002 area; and .08 percent of the
land, noted by two red dots, is the hypothetical development
area. He said that is a miniscule area compared to the entire
ANWR area.
11:53:26 AM
REPRESENTATIVE NEUMAN first noted for public interest that the
language on page 3, lines 6-11, of HJR 5 gives the acreage
information. He then asked whether the state has received all
the federal land transfers that are due.
MR. LOGAN offered his understanding that the State of Alaska is
still due land from the federal government.
REPRESENTATIVE NEUMAN suggested a change to the proposed joint
resolution to include a request for those lands due to the
state. He said he believes the Department of Natural Resources
would love to manage more state-owned land, so that the state
could gain royalties.
CHAIR WESTLAKE concurred.
11:54:39 AM
REPRESENTATIVE JOSEPHSON offered his understanding that the
State of Alaska has been given, either "in fee" or "other not
yet fully deeded lands" of 100 million acres and is entitled to
5 million more. Further, he said he thinks the land would not
be eligible for selection. He noted there is a national
movement to convert federal land to state ownership; however,
the Secretary of the Interior designee, Ryan Zinke, does not
favor that approach. He allowed that with a new Administration,
anything could happen.
11:55:40 AM
REPRESENTATIVE EDGMON observed that the aforementioned Secretary
of the Interior designee was not listed under the "COPIES"
portion of HJR 5, because he had not yet been confirmed, and he
questioned whether the timing of [Mr. Zinke's] confirmation
would comport with the timing of passing the proposed joint
legislation through the Alaska State Legislature.
MR. LOGAN indicated that legal counsel had been sought in the
drafting of HJR 5, and he confirmed that some names had been
left out because of the timing of the proposed legislation.
11:56:32 AM
CHAIR WESTLAKE announced that HJR 5 was held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HJR 5 Sponsor Statement.pdf |
HAET 1/24/2017 11:30:00 AM |
HJR 5 |
| HJR 5 ver D.PDF |
HAET 1/24/2017 11:30:00 AM |
HJR 5 |
| HJR 5 Fiscal Note LAA.pdf |
HAET 1/24/2017 11:30:00 AM |
HJR 5 |
| HJR 5 Supporting Document ANWR All Areas.pdf |
HAET 1/24/2017 11:30:00 AM |
HJR 5 |
| HJR 5 Supporting Document ANWR Land Use.pdf |
HAET 1/24/2017 11:30:00 AM |
HJR 5 |
| HJR 5 - Supporting Document- ANWR NETL.pdf |
HAET 1/24/2017 11:30:00 AM |
HJR 5 |
| HJR 5 - Supporting Document- Enivromentally Responsible Energy.pdf |
HAET 1/24/2017 11:30:00 AM |
HJR 5 |
| HJR 5 Supporting Document DNR Report 2013.pdf |
HAET 1/24/2017 11:30:00 AM |
HJR 5 |
| HJR 5 - Supporting Document - Estimates of Undiscovered Oil and Gas Resources.pdf |
HAET 1/24/2017 11:30:00 AM |
HJR 5 |