Legislature(2017 - 2018)BARNES 124

02/08/2017 01:00 PM RESOURCES

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Audio Topic
01:50:29 PM Start
01:50:56 PM Overview: Alaska Oil and Gas Conservation Commission
02:27:44 PM HB40
02:58:24 PM HB111
07:02:40 PM HJR5
09:12:00 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to 06:00 pm --
-- Delayed to 20 Minutes Following Session --
+ Overview: AK Oil & Gas Conservation Commission TELECONFERENCED
-- Testimony <Invitation Only> --
*+ HB 111 OIL & GAS PRODUCTION TAX;PAYMENTS;CREDITS TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+= HB 40 TRAPPING NEAR PUBLIC TRAILS TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
= HJR 5 ENDORSING ANWR LEASING; RELATED ISSUES
Moved CSHJR 5(AET) Out of Committee
**Streamed live on AKL.tv**
         HJR  5-ENDORSING ANWR LEASING; RELATED ISSUES                                                                      
                                                                                                                                
7:02:40 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOSEPHSON announced  that the  final order  of business                                                               
would be  CS FOR  HOUSE JOINT RESOLUTION  NO. 5(AET),  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.                                                                  
                                                                                                                                
7:02:48 PM                                                                                                                    
                                                                                                                                
MIKE SATRE expressed his support of  HJR 5, and urged the opening                                                               
of leasing  and oil  and gas development  in the  Arctic National                                                               
Wildlife  Refuge   (ANWR).    He   said  Alaskans   and  previous                                                               
legislatures have historically supported  this action.  Mr. Satre                                                               
explained the  resolution does not  open all  of ANWR to  oil and                                                               
gas development, but does open  approximately 0.01 percent of the                                                               
refuge close to existing development  on the North Slope.  Alaska                                                               
has a history of responsibly  developing oil and gas resources in                                                               
that  area,  and can  leverage  the  existing infrastructure,  in                                                               
order to  provide oil  and gas  for the  decades of  world demand                                                               
ahead.    Alaska's future  depends  upon  increased oil  and  gas                                                               
development  on state  and  federal lands.    Taxing a  declining                                                               
resource  will not  provide fiscal  stability  because the  state                                                               
needs more oil  in the Trans-Alaska Pipeline System.   This issue                                                               
is  critical  to  his  family's  future.   Mr.  Satre  urged  the                                                               
committee to expeditiously pass the resolution.                                                                                 
                                                                                                                                
7:05:26 PM                                                                                                                    
                                                                                                                                
FRANK  BERGSTROM  provided  a  brief   description  of  his  many                                                               
positive experiences  on the North  Slope and said he  intends to                                                               
return.  Alaska  needs ANWR's oil, and the magnitude  of [oil and                                                               
gas] development there is minimal; in  fact, it is known it would                                                               
take only  2,000 acres to recover  all of the oil  located there.                                                               
He  said there  is  no unmanageable  downside  to the  thoughtful                                                               
development  of  ANWR.    At  [Prudhoe Bay],  one  sees  a  large                                                               
industrial plant:   the footprint of development is  small.  This                                                               
is a  wonderful opportunity  and he  encouraged the  committee to                                                               
support the development of ANWR.                                                                                                
                                                                                                                                
7:07:24 PM                                                                                                                    
                                                                                                                                
JULIA  YORK informed  the committee  she was  born and  raised in                                                               
Fairbanks and holds  a master's degree in biology.   She said she                                                               
is aware  of the  state's budget  crisis as  her family  has been                                                               
affected, but the crisis is  occurring because the state has been                                                               
dependent upon oil revenue for too  long; it is time to invest in                                                               
a more reliable  future for Alaska.  The bill  is financially and                                                               
environmentally irresponsible  and is based on  outdated polling.                                                               
In fact,  oil development  cannot be  done in  an environmentally                                                               
responsible manner on the tundra.   Ms. York said she has been to                                                               
the North  Slope oil fields  and advised that restoration  by oil                                                               
companies after spills  and disturbance is measured  by "how much                                                               
area is green," which is achieved  by planting grass.  She opined                                                               
this  is  a   misunderstanding  of  the  coastal   plain  and  is                                                               
misleading; furthermore,  the testimony  of oil  companies should                                                               
be discounted  as they  have a direct  financial incentive.   Ms.                                                               
York said  this is not  a matter of 2,000  acres of land,  but of                                                               
wide-reaching  and permanent  effects on  a sensitive  ecosystem,                                                               
including  multiplying  the  effect   of  climate  change.    She                                                               
concluded that villages are in imminent danger.                                                                                 
                                                                                                                                
7:11:08 PM                                                                                                                    
                                                                                                                                
STEVEN GREENLAW  said he has lived  in Alaska for four  years and                                                               
is a  student at the University  of Alaska Fairbanks.   He stated                                                               
there  is  a moral  imperative  to  protecting ANWR  because  the                                                               
dignity of the  human person is tied to the  land, and opening up                                                               
the area for  oil development would be a  shortsighted and short-                                                               
term benefit  for a  few.   Further, there is  an urgent  need to                                                               
substitute  renewable  resources  for  fossil fuels,  for  a  new                                                               
economy in  Alaska that values  its indigenous voices  and lives.                                                               
Mr. Greenlaw  urged the  co-chairs to consider  the dignity  of a                                                               
human  person in  their ethics;  to  Gwich'in, ANWR  is home  and                                                               
turning  the  land into  resources  would  alienate and  displace                                                               
them.   He quoted from  a source  in regard to  the environmental                                                               
crisis  and   the  suffering  of   the  excluded   [document  not                                                               
provided], and  expressed his opposition  to HJR 5 "for  the 1002                                                               
area."                                                                                                                          
                                                                                                                                
7:13:19 PM                                                                                                                    
                                                                                                                                
RICHARD  GLENN,  Vice  President,  Land  and  Natural  Resources,                                                               
Arctic Slope Regional Corporation  (ASRC), informed the committee                                                               
ASRC,  together  with  the   Kaktovik  Inupiat  Corporation,  own                                                               
approximately 91,000  acres of land  within the coastal  plain of                                                               
ANWR.   He said ownership  of the  land is true,  legitimate, and                                                               
legal ownership  of the land,  but its owners are  prevented from                                                               
developing  their land  unless  Congress acts  to  open ANWR  for                                                               
exploration.    The  13,000 shareholders  of  ASRC,  the  village                                                               
corporation, residents  of Kaktovik, and the  North Slope Borough                                                               
have  fought  for  the responsible  exploration  of  the  coastal                                                               
plain,  which can  be done  safely  on the  land where  residents                                                               
hunt, fish,  and catch caribou.   Mr. Glenn advised  only through                                                               
exploration of the  area will a determination be  made that there                                                               
are  resources  for  development  -  and  the  location  of  said                                                               
resources - so  responsible decisions can be made.   He urged for                                                               
the passage of the resolution.                                                                                                  
                                                                                                                                
7:15:37 PM                                                                                                                    
                                                                                                                                
KARA  MORIARTY, President/CEO,  Alaska Oil  and Gas  Association,                                                               
said she  was representing  the Alaska oil  and gas  industry and                                                               
referred to  a letter of  support for the resolution  provided in                                                               
the  committee packet.   She  said opportunities  to explore  for                                                               
resources  cannot  commence  until  the  land  is  available  for                                                               
purchasing  a lease.   The  resolution endorses  Congress opening                                                               
the  land  for  the  leasing  process,  which  is  extensive  and                                                               
requires  environmental impact  studies  before  and after  lease                                                               
sales.  Furthermore, she pointed out  the 1002 area was set aside                                                               
specifically for  oil and  gas development  in the  Alaska Native                                                               
Claims  Settlement  Act  (ANCSA)   and  in  the  Alaska  National                                                               
Interest  Lands Conservation  Act (ANILCA),  in order  to protect                                                               
"90-some  percent"  of the  refuge  and  allow development  in  a                                                               
certain area.   Ms. Moriarty opined safe  development is underway                                                               
"right next  door" and will continue  for decades.  She  said the                                                               
issue  is  on the  national  stage,  and  the industry  has  long                                                               
supported increased access to this area.                                                                                        
                                                                                                                                
REPRESENTATIVE RAUSCHER asked for the average cost of a lease.                                                                  
                                                                                                                                
MS.  MORIARTY stated  that is  very difficult  to speculate;  for                                                               
example,   lease   sales   can    generate   from   $200,000   to                                                               
$2,100,000,000 in bids.                                                                                                         
                                                                                                                                
7:18:41 PM                                                                                                                    
                                                                                                                                
ALEXANDER GEDSCHINSKY  acknowledged the state depends  on oil and                                                               
the  exploration  for oil  should  not  be unreasonably  stopped;                                                               
however,  ANWR  should   not  be  exploited.     He  pointed  out                                                               
ConocoPhillips Alaska, Inc. has  announced a massive discovery of                                                               
oil in  the National Petroleum  Reserve Alaska (NPRA),  which can                                                               
be  brought to  market  quickly  and cheaply.    He  said he  was                                                               
speaking for  younger residents whose  voices are not  heard, and                                                               
questioned why when  forty people testified in  opposition to the                                                               
bill and one  was in favor, legislators continued  to support the                                                               
bill.  He asked whether  constituents' comments matter as much as                                                               
those of oil companies.                                                                                                         
                                                                                                                                
7:20:23 PM                                                                                                                    
                                                                                                                                
PRINCESS JOHNSON  drew attention to  a map in the  committee room                                                               
and pointed  out about 95 percent  of the North Slope  is open to                                                               
oil  development; of  the  5 percent  left,  she questioned  when                                                               
there will be protection for the  remaining places.  She said she                                                               
is Neets'aii Gwich'in,  a member of the  Fairbanks Climate Action                                                               
Coalition, a mother, a daughter,  a sister, and has been speaking                                                               
out on this issue, along with  her home village of Vashraii K'oo,                                                               
or  Arctic Village,  since she  was 15  years old.   Ms.  Johnson                                                               
referred to earlier testimony, noting  people love Alaska because                                                               
of its  hunting, fishing,  and natural resources.   In  regard to                                                               
transparency, equity,  and [governmental] process, she  said over                                                               
the past three years the  U.S. Department of Interior updated the                                                               
comprehensive  conservation  plan  for ANWR,  and  during  public                                                               
testimony  in   Fairbanks  the   majority  of   Alaskans  opposed                                                               
development.   As  a result  of  that public  process, the  Obama                                                               
Administration  recommended to  Congress to  designate wilderness                                                               
for the  coastal plain  of ANWR  thus the  resolution disregards,                                                               
silences, and marginalizes the voices  of Alaskans.  In addition,                                                               
continuing  to privatize  and enclose  Alaska  robs residents  of                                                               
their ability to enjoy the land  and to feed their families.  Ms.                                                               
Johnson said  the belief  that all  Alaskans want  development in                                                               
the coastal plain of ANWR is untrue.                                                                                            
                                                                                                                                
7:22:47 PM                                                                                                                    
                                                                                                                                
ANNE  SENECA,   Spokesperson,  Consumer  Energy   Alliance  (CEA)                                                               
Alaska,  informed  the  committee   CEA  Alaska  seeks  to  raise                                                               
awareness   about  Alaska's   contribution  to   domestic  energy                                                               
production  for the  Lower  48.   Alaska's  onshore and  offshore                                                               
production  supplies   oil  to   America's  western   region  and                                                               
establishes  America's   geopolitical  presence  in   the  Arctic                                                               
region,  which plays  a  role  in consumer  energy  prices.   The                                                               
Arctic is a region of  growing geopolitical significance, and CEA                                                               
Alaska works to remind consumers  of the importance of the Arctic                                                               
region.  Representative Westlake's  leadership affords CEA Alaska                                                               
the  opportunity  to educate  consumers  and  advocate for  lower                                                               
energy prices through  the following key points:   only 8 percent                                                               
of  ANWR  would   be  considered  for  exploration;   if  oil  is                                                               
discovered,  2,000 acres  of  the  1002 area  would  be used  for                                                               
surface structures;  exploration would have a  positive impact on                                                               
the economy in Alaska and the Lower  48; there will be a need for                                                               
tens of  thousands of manufacturing and  service jobs nationwide;                                                               
history  shows that  oil  and gas  development  and wildlife  can                                                               
peacefully coexist  in the  Arctic; in the  oilfields there  is a                                                               
healthy population of brown bear,  fox, musk ox, birds, and fish;                                                               
dependence  on  imported oil  contributes  to  national debt  and                                                               
threatens  national security.   Ms.  Seneca concluded  CEA Alaska                                                               
supports an energy policy that  includes renewable energy sources                                                               
and fossil  fuels, and supports  exploration in the 1002  area of                                                               
ANWR.                                                                                                                           
                                                                                                                                
7:25:59 PM                                                                                                                    
                                                                                                                                
DONETTA TRITT  said she is  originally from Arctic Village.   She                                                               
informed  the committee  in late  July or  August, the  Porcupine                                                               
Caribou  Herd leaves  the 1001  area, also  known as  the calving                                                               
grounds  in  the  refuge,  and  then migrates  to  Canada.    The                                                               
migration route  travels near Arctic  Village, providing  for the                                                               
village as it has done for  thousands of years.  However in 2015,                                                               
for an unknown  reason, the caribou traveled  directly to Canada,                                                               
and that fall  elders in Arctic Village were  sick because Native                                                               
foods were not  available that winter.  Ms. Tritt  opined this is                                                               
a hint of what could happen.                                                                                                    
                                                                                                                                
7:27:43 PM                                                                                                                    
                                                                                                                                
RON  YARNELL said  he  owns a  wilderness  guiding business,  All                                                               
About Adventure, and  has been leading trips in  the Brooks Range                                                               
since the early  '70s and in ANWR since 1976.   The Arctic refuge                                                               
has provided  his living  for over  40 years,  and for  others as                                                               
well.   He  questioned  why  some are  anxious  to open  Alaska's                                                               
treasures  because over  95 percent  of  the north  slope of  the                                                               
Brooks  Range is  already open  to oil  development, or  is being                                                               
opened, and opined  protecting the 5 percent left is  enough of a                                                               
compromise.   Mr. Yarnell  inquired as to  why one  would destroy                                                               
what  one  loves about  Alaska:    wilderness.   His  significant                                                               
amount of experience  in the coastal plain reveals  that a unique                                                               
wilderness experience,  available only  there, would  not survive                                                               
oil  development.   He said  he has  guided thousands  across the                                                               
coastal plain  of the refuge and  opined one should not  vote for                                                               
this resolution  if one has not  spent time there.   In fact, the                                                               
federal government is needed to  protect special areas from local                                                               
pressure which  seeks to  exploit other  resources.   Mr. Yarnell                                                               
urged  the  committee to  drop  this  resolution and  concentrate                                                               
development in  Prudhoe Bay, which  has high potential  and fewer                                                               
conflicts.                                                                                                                      
                                                                                                                                
7:30:12 PM                                                                                                                    
                                                                                                                                
NARIEEZH  PETER said  she  lives in  Fairbanks  and is  Neets'aii                                                               
Gwich'in  and Navajo.   She  expressed  her belief  that not  all                                                               
Alaskans support  oil drilling,  especially in  ANWR.   Ms. Peter                                                               
said oil  is not bad,  but through its extraction  humans destroy                                                               
the  world, cause  climate change,  and hurt  the land,  which is                                                               
bad.   In  the  future  she wants  there  to  be caribou,  moose,                                                               
salmon,  ducks, and  blueberries that  have supplied  people with                                                               
food  and  energy  for generations;  however,  opening  ANWR  for                                                               
drilling will  disturb wildlife,  the Porcupine Caribou  Herd may                                                               
be forced to find new birthing  grounds, and the amount of salmon                                                               
may be decreased.  In  addition, plants may become polluted which                                                               
will diminish Native food sources  thus ANWR should be protected.                                                               
Ms. Peter went to Arctic Village  with her family and wants to go                                                               
again to see the  beauty and eat Native foods.   She said this is                                                               
her future.   In response to Co-Chair Josephson, she  said she is                                                               
12 years old and goes to middle school in Fairbanks.                                                                            
                                                                                                                                
7:32:45 PM                                                                                                                    
                                                                                                                                
MATT  GILBERT  said  he  is  Gwich'in  Athabascan  and  is  self-                                                               
employed.  He  has a master's degree in rural  development and is                                                               
speaking from  an economic  point of view  and from  his Gwich'in                                                               
culture worldview.  He has learned  the legislature gives up to a                                                               
$500 million tax  credit to oil companies just for  drilling.  In                                                               
addition,  oil companies  make more  from  Alaska wellheads  than                                                               
from those  in other countries -  a 30 percent return  - which he                                                               
compared to corporate  welfare.  Mr. Gilbert opined  if the state                                                               
stopped the aforementioned [corporate  welfare], it wouldn't need                                                               
to  develop  ANWR.    Also,  climate  change  is  worsening,  and                                                               
continuing  the use  of fossil  fuels is  suicidal; he  urged for                                                               
diversification  and  suggested the  use  of  federal grants  for                                                               
renewable energy.                                                                                                               
                                                                                                                                
7:35:06 PM                                                                                                                    
                                                                                                                                
ENEI PETER  said she is  Navajo and  (indisc.) and the  mother of                                                               
three Gwich'in Alaska Native daughters.   She asked the committee                                                               
to  oppose  HJR 5  because  disturbing  the  refuge would  be  an                                                               
affront  to the  Gwich'in way  of life  and to  the cultural  and                                                               
subsistence  survival  of  Alaska  Native  people;  further,  the                                                               
severity of climate  change demands that resources  remain in the                                                               
ground in some places.   Opening more places for development will                                                               
prevent  the U.S.  from meeting  its commitment  to curb  climate                                                               
change.    Ms. Peter  said  there  are  other  ways to  find  new                                                               
opportunities for the economy and for  jobs; in fact, there is no                                                               
other choice but to diversify  the state's economy.  The existing                                                               
policies  that  encourage  more   oil  and  gas  development  are                                                               
outdated,  and  are  based  on  a  history  of  colonization  and                                                               
corporate  structures that  were  set up  to  profit from  Native                                                               
people.                                                                                                                         
                                                                                                                                
7:37:37 PM                                                                                                                    
                                                                                                                                
LINDA  DEFOLIART spoke  in opposition  to  HJR 5.   Although  oil                                                               
companies assure  development can occur  safely and with  a small                                                               
footprint, climate  change is warming the  Arctic ground bringing                                                               
different   conditions  such   as  thawing,   freezing,  sinking,                                                               
heaving,  and  melting,  which   are  unknown  conditions.    She                                                               
questioned how  oil companies can guarantee  safety following the                                                               
many spills from drilling and  transporting oil; in addition, the                                                               
viewshed in the refuge is huge  and equipment could been seen for                                                               
miles.   The original footprint  for Prudhoe Bay was  2,100 acres                                                               
and is now over 600,000 acres.   If the current course continues,                                                               
eventually  there will  be no  more fossil  fuel, and  she opined                                                               
Alaska  needs to  find long  term fiscal  stability from  another                                                               
source.  Ms.  DeFoliart urged for the committee to  take the long                                                               
view and save the refuge  for its intrinsic value and sustainable                                                               
renewable resources.                                                                                                            
                                                                                                                                
7:38:48 PM                                                                                                                    
                                                                                                                                
JUSTINA BEAGNYAM  spoke in  opposition to  HJR 5.   She  said she                                                               
moved  from Texas  last year  to Alaska  because it  is the  last                                                               
great  wilderness,  and she  wished  to  merge her  education  in                                                               
business with  a career  in environmental policies.   She  read a                                                               
quote [document not  provided].  Ms. Beagnym pointed  out ANWR is                                                               
one of the  last remaining intact ecosystems in the  world with a                                                               
rich and  fragile habitat, heritage,  and culture.   Ms. Beagnyam                                                               
agreed there is  too much reliance on fossil fuels  and urged for                                                               
a transition to renewable energy with  no new leases on any land,                                                               
and further research  into renewable energy, which  would lead to                                                               
a more diversified economy.                                                                                                     
                                                                                                                                
7:41:55 PM                                                                                                                    
                                                                                                                                
JENNA JONAS stated  the coastal plain of ANWR is  a special place                                                               
to her as she  works as a guide in summer  and explores and hunts                                                               
with  a dog  team  in fall,  winter, and  spring.   Her  personal                                                               
experience  has shown  ANWR  is a  lush  and delicate  ecosystem;                                                               
further,  over the  past 10  years, she  has studied  this issue,                                                               
"and how much  the narrative is changing."   Decisions made today                                                               
will  have  repercussions  far  in the  future  due  to  Alaska's                                                               
position in the  global crisis of climate change.   Alaskans take                                                               
pride in their  independence, the land, their  management of fish                                                               
and  game, and  their respect  for  Native cultures.   Ms.  Jonas                                                               
opined  drilling  for  oil  in  one of  the  world's  last  great                                                               
ecosystems does  not honor the  aforementioned values  or improve                                                               
the lives  of future generations.   She encouraged  the committee                                                               
to recognize  that the value of  oil will increase as  it becomes                                                               
scarcer, to  value the opinion of  those who live in  the region,                                                               
and to consider  the long term effects of its  decision on future                                                               
generations.                                                                                                                    
                                                                                                                                
7:43:53 PM                                                                                                                    
                                                                                                                                
CHRISTINA EDWIN  stated her hope  is the legislature is  based on                                                               
the core  ideology of respect,  obligation to the  community, and                                                               
stewardship.   Based  on this  core  ideology, she  said she  was                                                               
present  for the  public process  and noted  there are  different                                                               
visions for  the future:   some wish to  drill in the  Arctic and                                                               
some do not.  Ms. Edwin  urged members of the committee to follow                                                               
their core ideology and serve  their community; her core ideology                                                               
is to oppose the resolution.                                                                                                    
                                                                                                                                
7:46:19 PM                                                                                                                    
                                                                                                                                
KEITH SILVER  spoke in support of  HJR 5 and advised  he does not                                                               
work for  an oil company.   The issue under  discussion addresses                                                               
0.5 of  1 percent of ANWR  and can be compared  to Point Thomson,                                                               
which is nearby  and is an example of oil  development done right                                                               
in a  small development.   Point Thomson has been  developed with                                                               
long   reach   drilling   and  stringent   safety   environmental                                                               
standards,  as  has  Alpine.    Mr. Silver  said  70  percent  of                                                               
Alaskans  agree  with  developing  ANWR, which  should  be  their                                                               
decision.  Recently, 9,000 jobs have  been lost mostly due to the                                                               
lack of oil and gas development  work.  He observed the 1002 area                                                               
is  about 150  miles  north  of Arctic  Village  over a  mountain                                                               
range, and the  land has multiple uses.  He  urged for passage of                                                               
the resolution in order to put  oil in the pipeline and people to                                                               
work.                                                                                                                           
                                                                                                                                
7:48:24 PM                                                                                                                    
                                                                                                                                
MISTY  NICKOLI said  she is  a lifelong  Alaskan from  Fairbanks.                                                               
She read a  quote [document not provided].  Ms.  Nickoli said she                                                               
and others have met with  numerous legislators who have expressed                                                               
the following:   1.) a desire to maintain the  Alaska way of life                                                               
and its  ecosystems; 2.) frustration  that "big oil"  spent money                                                               
from  Permanent Fund  Dividends (PFDs)  instead of  risking their                                                               
tax  subsidies;  3.)  support  of  the  economy  by  big  oil  is                                                               
overshadowed by the fact the state  does not profit, but pays out                                                               
$319  million  annually  to  big   oil  for  mostly  out-of-state                                                               
workers,  and Alaskan  employees are  the first  to be  laid off.                                                               
Further, many  legislators indicated an unwillingness  to contest                                                               
the refuge  as that  would mean political  suicide.   Ms. Nickoli                                                               
said anti-Alaska policies  cannot be conducted in  shadow, and it                                                               
is past time for legislators  and Alaskans to develop sustainable                                                               
industries and to stop the welfare system provided to big oil.                                                                  
                                                                                                                                
7:52:18 PM                                                                                                                    
                                                                                                                                
KERI PETERSON  spoke against the  bill.  Her  personal experience                                                               
from spending  a lot of time  in the refuge  is that it is  not a                                                               
wasteland,  unlike what  politicians and  the oil  companies say.                                                               
She said she  was happy that about 150 years  ago, others had the                                                               
foresight to  preserve Yellowstone,  Yosemite, the  Grand Canyon,                                                               
and  other national  parks, and  ANWR is  more wild  and special.                                                               
She worked at  Prudhoe Bay, which is the  opposite of wilderness,                                                               
and it  would be criminal  to put this  type of development  in a                                                               
pristine wilderness;  in fact, there  is no true  wilderness left                                                               
in the Lower  48, and now that  it is known the  earth is finite,                                                               
existing  intact  wildlife  systems  should be  preserved.    The                                                               
entire refuge, including  the 1002 area, is  critical habitat for                                                               
wildlife, and  its loss would  be devastating, especially  to the                                                               
caribou and the  Gwich'in people.  If the refuge  is not drilled,                                                               
it will  still exist after  the oil  is gone, which  is important                                                               
for tourism.                                                                                                                    
                                                                                                                                
7:54:10 PM                                                                                                                    
                                                                                                                                
ODIN MILLER said according to a  2010 estimate, 95 percent of the                                                               
food Alaskans eat is imported  [document not provided].  Although                                                               
Alaskans  pride   themselves  on  self-reliance,  the   state  is                                                               
vulnerable to  disruptions in  its food  pipeline, such  as after                                                               
[the terrorist attacks  of September 11, 2001].   A large portion                                                               
of  the 5  percent  of local  and wild  food  sources comes  from                                                               
salmon, salmonberries,  and caribou,  which are depended  upon by                                                               
indigenous  rural Alaskans.   Mr.  Miller said  he is  a lifelong                                                               
Alaskan    and    is    an    anthropology    student    studying                                                               
human/reindeer/caribou   interactions    in   Northwest   Alaska.                                                               
Caribou  are  facing  challenges  from climate  change  and  have                                                               
disappeared from parts  of the circumpolar North,  and caribou as                                                               
a food source cannot be replaced.   He questioned whether one can                                                               
trust a  presidential administration  that is going  to dismantle                                                               
existing  environmental   regulations,  to   conduct  responsible                                                               
environmental impact studies in ANWR.                                                                                           
                                                                                                                                
7:56:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAUSCHER asked to call for the question.                                                                         
                                                                                                                                
CO-CHAIR JOSEPHSON said there is no question.                                                                                   
                                                                                                                                
REPRESENTATIVE  JOHNSON offered  to make  a motion  to move  [the                                                               
resolution] out of committee.                                                                                                   
                                                                                                                                
CO-CHAIR JOSEPHSON said, "I would decline that, if I can."                                                                      
                                                                                                                                
REPRESENTATIVE JOHNSON opined a vote on her request is needed.                                                                  
                                                                                                                                
7:57:32 PM                                                                                                                    
                                                                                                                                
The committee took an at ease from 7:57 p.m. to 8:25 p.m.                                                                       
                                                                                                                                
8:25:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON removed [her request to make a motion].                                                                  
                                                                                                                                
CO-CHAIR  JOSEPHSON, stating  there was  no objection,  continued                                                               
public testimony.                                                                                                               
                                                                                                                                
8:26:01 PM                                                                                                                    
                                                                                                                                
SAM ALEXANDER spoke  in opposition to HJR  5.  He stated  he is a                                                               
Gwich'in from Fort  Yukon and a lifelong Alaskan who  is tired of                                                               
seeing  Alaska kick  the can  of fiscal  responsibility down  the                                                               
road.  For 40 years oil  fields have bestowed immense wealth upon                                                               
the  state,  but the  state  remains  addicted  to oil  and  more                                                               
revenue, and  willing to  gamble its  children's birthright  to a                                                               
truly wild and  natural world.  As a veteran  serving in Iraq, he                                                               
saw the waste  and death the effect  of greed for oil  had on the                                                               
Iraqi people.   The same oil companies are  destroying Alaska and                                                               
do not  have a long  term interest in  the state, except  to make                                                               
money.  Mr.  Alexander advised drilling for oil  will not provide                                                               
national security; in fact, oil  development contributes to peril                                                               
by causing  climate change  and emitting  greenhouse gasses.   He                                                               
urged the committee to stop gambling with the future of Alaska.                                                                 
                                                                                                                                
8:27:37 PM                                                                                                                    
                                                                                                                                
JESSICA  GIRARD  stated she  is  a  disabled combat  veteran  who                                                               
served twice in Iraq.  She said  the addiction to oil sent her to                                                               
Iraq,  and  she has  been  fighting  against the  addiction  ever                                                               
since.   The answer to  security is  to "transition" so  wars are                                                               
not fought  over oil,  and refugees  will not  need to  come from                                                               
other states to  untainted places.  Alaska  has immense resources                                                               
and a culture  that provides depth and essence to  the land.  Ms.                                                               
Girard served  in the military  for the diversity of  culture and                                                               
said  the Gwich'in  cannot  be separated  from  the caribou  they                                                               
depend upon, or from the land which is theirs.                                                                                  
                                                                                                                                
8:29:42 PM                                                                                                                    
                                                                                                                                
MICHELLE TOOHEY stated  she is one of the 70  percent of Alaskans                                                               
who support opening exploration and  production of oil and gas in                                                               
the  small  portion  known  as  the  1002  area  of  ANWR.    The                                                               
percentage of  70 percent support  comes from polls  conducted in                                                               
2016  which also  showed support  has been  consistent since  the                                                               
1990s.  Strong support should not  be a surprise as the 1002 area                                                               
was intentionally  set aside from being  designated wilderness as                                                               
part of the  Alaska National Interest Lands  Conservation Act; in                                                               
fact, 19 million acres is  federally designated wilderness and 92                                                               
percent  of the  refuge is  closed for  development.   Ms. Toohey                                                               
opined showing  Congress that Alaskans support  the resolution is                                                               
a must.  She recommended  the resolution move through the process                                                               
as quickly as possible in  order to inform Congress that Alaskans                                                               
firmly stand behind oil and gas development in ANWR.                                                                            
                                                                                                                                
8:31:38 PM                                                                                                                    
                                                                                                                                
MELINDA  CHASE, spokesperson,  Fairbanks Climate  Coalition, said                                                               
she strongly  believes fossil fuel  should be left in  the ground                                                               
because Interior  Alaska is experiencing an  increasingly warming                                                               
climate.   Last  year in  the  Interior, there  were four  deaths                                                               
related  to open  water and  two of  the victims  had traditional                                                               
knowledge of the land; however,  the weather has become variable.                                                               
She  urged  for  the  committee  to look  beyond  Alaska  to  the                                                               
environment  of the  world, and  advance  Alaska to  a more  just                                                               
economy,  as children  need  the  land.   Ms.  Chase referred  to                                                               
national plans to keep the atmosphere  clear.  As the only Arctic                                                               
state in the nation, Alaska  has a responsibility to its children                                                               
and the nation,  and she urged that the resolution  not pass, and                                                               
for  members  of  the  committee to  educate  themselves  on  the                                                               
changing climate and its effects on Alaska.                                                                                     
                                                                                                                                
8:34:39 PM                                                                                                                    
                                                                                                                                
SHANNON BUSBY said she was speaking  in opposition to HJR 5.  The                                                               
practice  of assigning  numbers to  places distances  one from  a                                                               
sense  of  place.   The  beautiful  coastal  plain and  ANWR  are                                                               
beautiful places to be left untouched.                                                                                          
                                                                                                                                
8:35:33 PM                                                                                                                    
                                                                                                                                
BARBARA  HUFF TUCKESS,  Director, Legislative  Affairs, Teamsters                                                               
Local 959, spoke in support  of the committee substitute (CS) for                                                               
HJR  5.    Teamsters  Local 959  represents  approximately  7,000                                                               
members  working in  industries except  for fish,  and represents                                                               
members who  work in the oil  and gas industry.   The opportunity                                                               
for  Congress  to  open  the  1002 area  and  ANWR  would  create                                                               
additional jobs as  well as put additional barrels of  oil in the                                                               
pipeline.    She  directed attention  to  her  written  testimony                                                               
provided in the committee packet.                                                                                               
                                                                                                                                
8:37:16 PM                                                                                                                    
                                                                                                                                
KIM  HEACOX said  he was  opposed to  HJR 5.   He  is a  contract                                                               
writer with  National Geographic who  has lived in Alaska  for 35                                                               
years, and has  visited the coastal plain of ANWR  which he found                                                               
to be a beautiful and compelling  place.  Mr. Heacox opined wild,                                                               
natural beauty is essential to  one's mental and spiritual health                                                               
and  inspires one  to  care for  the  planet.   He  read a  quote                                                               
[document  not  provided].   Although  burning  oil  has  brought                                                               
wealth, it would be  a poor decision to drill for  oil and gas in                                                               
the 1002  area, which is the  biological heart of ANWR.   He read                                                               
another  quote [document  not  provided].   Science  warns if  20                                                               
percent  of known  oil  reserves  in the  world  are burned,  the                                                               
global   environment  and   the  geopolitical   sphere  will   be                                                               
destabilized  and  condemn  future generations  to  a  diminished                                                               
quality  of  life.   However,  the  GOP  in Congress  refuses  to                                                               
acknowledge human-caused  climate change.  He  read another quote                                                               
[document not  provided].   Mr. Heacox has  heard fears  that the                                                               
fossil fuel economy  is becoming immoral, in a  manner similar to                                                               
200 years  ago in the  Old South, when  its economy was  based on                                                               
slavery.  He  concluded drilling for oil is  an economic narcotic                                                               
and a short  term solution to a long term  problem, and suggested                                                               
the clean energy revolution is waiting.                                                                                         
                                                                                                                                
8:40:35 PM                                                                                                                    
                                                                                                                                
JEANINE ST. JOHN  said she was representing the  Lynden family of                                                               
transportation  and logistics  companies, which  is a  multimodal                                                               
transportation company providing  transportation links that bring                                                               
essential goods  and services to Alaska,  and transporting Alaska                                                               
products to  world markets  for over 100  years, and  she further                                                               
described Lynden companies'  services.  Ms. St.  John said Alaska                                                               
is a  resource state  and all benefit  from a  healthful economy;                                                               
Alaskans rely  on the ability  to develop resources  whether they                                                               
are fish, minerals,  oil and gas, and Alaska's  robust economy is                                                               
based on  the ability  to produce resources.   She  said Lynden's                                                               
support of the  development of the 1002 area is  based on history                                                               
that development  of energy resources  can be accomplished  in an                                                               
environmentally  safe  manner.    She stated  concern  about  the                                                               
recession and  the budget  deficit and, on  behalf of  Lynden and                                                               
its over 900 Alaska employees, urged support for HJR 5.                                                                         
                                                                                                                                
8:42:48 PM                                                                                                                    
                                                                                                                                
SARAH JAMES  said she  against HJR  5 and grew  up in  the Arctic                                                               
Village area where  she and her family hunt, fish,  and gather in                                                               
a remote  village and live  a good life.   She is  proud Gwich'in                                                               
Athabascan  Alaskan,  and (indisc.)  Indian,  an  elder, and  she                                                               
respects  elders of  the  past.   She said  she  was speaking  on                                                               
behalf of the Gwich'in nation, and  she was one of four chosen to                                                               
speak for her nation,  for the caribou, and her way  of life.  In                                                               
Arctic  Village in  1988, there  was  a rebirth  of the  Gwich'in                                                               
nation  after it  was  divided  by the  U.S.  and Canada  border.                                                               
Before  first  contact,  the  coastal   plain  of  ANWR  was  the                                                               
birthplace of the  Porcupine Caribou Herd and  was not threatened                                                               
by  oil and  gas development.   Since  then, the  Gwich'in nation                                                               
fought hard  with others  and won  battles without  compromise to                                                               
say "no"  to oil  and gas.   Ms. James stated  75 percent  of her                                                               
food is wild meat, mostly  caribou, which also provides materials                                                               
for clothing, arts and crafts,  and tools.  She further described                                                               
life and  a culture focused  on caribou, and urged  the committee                                                               
to  permanently protect  the coastal  plain of  ANWR, which  is a                                                               
sacred place.                                                                                                                   
                                                                                                                                
8:47:02 PM                                                                                                                    
                                                                                                                                
ELLA EDE said  she is one of thousands of  Alaskans who have been                                                               
laid off  due to  industry layoffs  in the past  few years.   She                                                               
said she was  proud of having worked in the  industry for over 25                                                               
years in  the environmental field and  stakeholder relations, and                                                               
helping the  industry responsibly develop  the North Slope.   Ms.                                                               
Ede  questioned  why  anyone would  oppose  the  resolution,  and                                                               
expressed her support of HJR 5  on behalf of her husband and four                                                               
children.  She  said she hopes her children will  be able to live                                                               
in  Alaska and  earn a  living  wage.   Her entire  family is  in                                                               
support  of opening  ANWR and  continuing  to develop  resources,                                                               
which is  mandated by the  state constitution, the  Alaska Native                                                               
Claims Settlement  Act, and  Native corporations.   Ms.  Ede said                                                               
she was not  paid to testify, but felt it  was important to speak                                                               
on behalf of the resolution.                                                                                                    
                                                                                                                                
8:49:33 PM                                                                                                                    
                                                                                                                                
MICHELLE  EGAN said  she was  speaking on  behalf of  the Alyeska                                                               
Pipeline  Service   Company  (Alyeska)  in  support   of  HJR  5.                                                               
Expanded  access to  responsible development  of oil  and natural                                                               
gas  resources  on  the  North  Slope  is  vitally  important  to                                                               
national  energy security,  job prosperity,  the Alaska  economy,                                                               
and the future  of the Trans-Alaska Pipeline System  (TAPS).  The                                                               
ongoing success of the pipeline  system is dependent upon healthy                                                               
levels  of  Alaska  crude  oil production;  in  fact,  TAPS  once                                                               
delivered 2,100,000  barrels of oil  per day, but in  2016, after                                                               
the  first  throughput  increase since  2002,  delivery  averaged                                                               
517,000  barrels per  day.   Although  Alyeska  can respond,  the                                                               
lesser  flow  creates long  term  challenges  that will  grow  in                                                               
difficulty if  the decline trend  continues.  The  most effective                                                               
solution is to  deliver more oil into TAPS from  the North Slope.                                                               
Ms. Egan  said Alyeska strongly supports  responsible exploration                                                               
efforts that result in increased  throughput into TAPS, including                                                               
the 1002 area of ANWR.                                                                                                          
                                                                                                                                
8:51:49 PM                                                                                                                    
                                                                                                                                
CARL  PORTMAN,  Deputy  Director,  Resource  Development  Council                                                               
(RDC), informed  the committee  RDC strongly  supports HJR  5 and                                                               
has consistently supported  the opening of the 1002  area of ANWR                                                               
to  oil and  gas  development.   According to  a  study, oil  and                                                               
development  in  ANWR  could increase  domestic  production  from                                                               
510,000 to nearly 1,500,000 barrels  per day for approximately 12                                                               
years, saving  the nation  billions of  dollars in  imported oil,                                                               
creating thousands of new job,  refilling TAPS and generating new                                                               
state and  federal revenue.   He said the  1002 area is  the most                                                               
prospective  conventional   onshore  prospect  in   the  country,                                                               
holding  an estimated  5.7  [billion] to  16  billion barrels  of                                                               
technically  recoverable  oil.     Not  one  acre  of  designated                                                               
wilderness would  be disturbed  by opening the  1002 area  due to                                                               
advances  in technology;  it is  possible to  develop the  energy                                                               
reserves  inside ANWR  using  only  a fraction  of  the area  and                                                               
without significant  disturbance to wildlife.   He concluded that                                                               
the  1002  area  of  ANWR  should  be  open  to  exploration  and                                                               
development  for  national  security   and  the  Alaska  economy,                                                               
because  the   Arctic  outer  continental  shelf   (OCS)  is  not                                                               
available, and RDC strongly urges for the passage of HJR 5.                                                                     
                                                                                                                                
8:54:00 PM                                                                                                                    
                                                                                                                                
CAROLYN KREMERS  said she  has lived in  Alaska for  thirty years                                                               
and served in  Russia for two years as a  U.S. Fulbright Scholar.                                                               
In 1999,  she began  writing a  poem which  she submitted  as her                                                               
testimony in  opposition to  HJR 5.   She read  from the  poem in                                                               
part [document not provided].                                                                                                   
                                                                                                                                
8:56:44 PM                                                                                                                    
                                                                                                                                
JAMES SQUYRES recommended a book on  ANWR and spoke in support of                                                               
HJR 5.  He urged for the bill to move from committee.                                                                           
                                                                                                                                
8:57:38 PM                                                                                                                    
                                                                                                                                
JOHN HYDE  spoke in opposition  to the  bill.  He  questioned how                                                               
much  the oil  in the  1002  area is  worth, in  order to  define                                                               
whether it  is worth  the risk of  destroying what  exists there.                                                               
He  observed most  wildlife  refuges and  national  parks have  a                                                               
buffer zone  surrounding them,  but ANWR  has none,  and wildlife                                                               
does not  adhere to  boundaries.  In  his experience  working for                                                               
the Alaska  Department of Fish  & Game, he learned  safety cannot                                                               
be guaranteed; for  example, shortly after the  [Exxon Valdez oil                                                               
spill of 3/24/28],  he witnessed what was caused  by human error,                                                               
and all errors cannot be prevented.                                                                                             
                                                                                                                                
9:00:04 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOSEPHSON closed public testimony.                                                                                     
                                                                                                                                
REPRESENTATIVE BIRCH  directed attention to a  letter provided in                                                               
the  committee packet  from Governor  Walker  that indicated  the                                                               
governor's support  for HJR  5.   He questioned  whether comments                                                               
from  Representative Westlake's  staff  should be  heard at  this                                                               
time.                                                                                                                           
                                                                                                                                
CO-CHAIR JOSEPHSON  expressed his confidence  that Representative                                                               
Westlake supports moving the resolution from committee.                                                                         
                                                                                                                                
REPRESENTATIVE BIRCH encouraged a yes vote on the resolution.                                                                   
                                                                                                                                
CO-CHAIR  JOSEPHSON  addressed  the  witnesses in  the  room  who                                                               
testified  about their  concerns, and  opined their  concerns are                                                               
not wrong in  their "long view" of [environmental  impacts to the                                                               
planet];  however, the  state  needs revenue,  which  is also  an                                                               
important factor.                                                                                                               
                                                                                                                                
9:02:57 PM                                                                                                                    
                                                                                                                                
The committee took a brief at ease.                                                                                             
                                                                                                                                
CO-CHAIR JOSEPHSON announced public testimony was reopened.                                                                     
                                                                                                                                
9:05:08 PM                                                                                                                    
                                                                                                                                
KRISTINA OLESKA (indisc.)  said she does not  want the resolution                                                               
to pass.   Her community  of Sutton has experienced  what happens                                                               
when the fossil fuel industry  destroys habitat; Moose Creek is a                                                               
place that has taken millions  of dollars, work by the community,                                                               
and  decades, to  return to  "a fraction  of what  it was  in the                                                               
past."   She  pointed out  the oil  and gas  industry has  a poor                                                               
record  of  placing the  health  and  safety  of people  and  the                                                               
environment  over that  of its  profits.   In  Alaska, the  Exxon                                                               
Valdez  oil spill  affected  the economy  through  the losses  in                                                               
commercial fishing,  recreation, and  tourism.  She  opined there                                                               
is a  need for  the state  to stop  giving [disasters]  a chance.                                                               
The  former chief  executive officer  of the  company responsible                                                               
for the  Exxon Valdez spill  is now  the Secretary of  State, and                                                               
she does not  trust him or the federal  administration to protect                                                               
the lives of Alaskans,  thus it is now up to  the committee.  She                                                               
referred to recent oil spills  and other disasters and opined the                                                               
state  cannot afford  to clean  up after  industry -  putting the                                                               
burden on  the younger generation  - and she urged  the committee                                                               
to not pass the resolution.                                                                                                     
                                                                                                                                
9:07:49 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOSEPHSON closed public testimony.                                                                                     
                                                                                                                                
9:08:05 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR said  she shares concerns and the  sense of urgency                                                               
about  climate  change;  however,  the  state's  current  revenue                                                               
situation  is  very  resource dependent.    She  recalled  during                                                               
former  Governor   Sarah  Palin's  administration  there   was  a                                                               
statewide   energy  plan   coordinator  and   a  climate   change                                                               
subcabinet,  and cautioned  the  state  has missed  opportunities                                                               
without those  positions in place.   Co-Chair Tarr  expressed her                                                               
hope the  current administration  will reconvene  the subcabinet,                                                               
and  spoke of  relevant  legislation that  will  come before  the                                                               
committee.    The  committee  seeks  to  support  environmentally                                                               
responsible development,  to meet  the state's energy  needs, and                                                               
to share concerns about the urgency of climate change action.                                                                   
                                                                                                                                
9:10:10 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR  moved to  report [CSHJR  5(AET)] out  of committee                                                               
with  individual recommendations  and  the  attached zero  fiscal                                                               
note.                                                                                                                           
                                                                                                                                
CO-CHAIR TARR objected.                                                                                                         
                                                                                                                                
9:10:39 PM                                                                                                                    
                                                                                                                                
A  roll call  vote was  taken.   Representatives Birch,  Johnson,                                                               
Rauscher,  Talerico, Drummond,  Parish,  and  Josephson voted  in                                                               
favor of  CSHJR 5(AET).   Representative  Tarr voted  against it.                                                               
Therefore, CSHJR 5 (AET) was  reported out of the House Resources                                                               
Standing Committee by a vote of 7-1.                                                                                            

Document Name Date/Time Subjects
House Resources 2017 AOGCC.ppt HRES 2/8/2017 1:00:00 PM
House Resources 2017 AOGCC.pdf HRES 2/8/2017 1:00:00 PM
HB040 CS ver U.pdf HRES 2/8/2017 1:00:00 PM
HB 40
HB040 Sponsor Statement.pdf HRES 2/8/2017 1:00:00 PM
HB 40
HB040 Summary of changes.pdf HRES 2/8/2017 1:00:00 PM
HB 40
HB040 Supporting Documents 1.pdf HRES 2/8/2017 1:00:00 PM
HB 40
HB 40 support.pdf HRES 2/8/2017 1:00:00 PM
HB 40
hb040 fiscal note 1 vers D.pdf HRES 2/8/2017 1:00:00 PM
HB 40
hb040 fiscal note 2 vers D.pdf HRES 2/8/2017 1:00:00 PM
HB 40
hb040 fiscal note 3 vers D.pdf HRES 2/8/2017 1:00:00 PM
HB 40
hb040 fiscal note 1 vers U.pdf HRES 2/8/2017 1:00:00 PM
HB 40
hb040 fiscal note 2 vers U.pdf HRES 2/8/2017 1:00:00 PM
HB 40
hb040 fiscal note 3 vers U.pdf HRES 2/8/2017 1:00:00 PM
HB 40
HB040 CS ver U.pdf HRES 2/8/2017 1:00:00 PM
HB 40
HB040 Summary of changes.pdf HRES 2/8/2017 1:00:00 PM
HB 40
HB040 Supporting Documents 1.pdf HRES 2/8/2017 1:00:00 PM
HB 40