Legislature(2009 - 2010)BUTROVICH 205
04/03/2009 03:30 PM Senate RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| SB150 | |
| HJR21 | |
| HJR7 | |
| HJR18 | |
| SCR3 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HJR 18 | TELECONFERENCED | |
| + | HJR 7 | TELECONFERENCED | |
| *+ | SCR 3 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | SB 150 | ||
| = | HJR 21 | ||
HJR 7-ENDORSING ANWR LEASING
3:41:40 PM
CO-CHAIR WIELECHOWSKI announced the consideration of HJR 7.
[Before the committee was CSHJR 7(RES). This being the first
hearing, he stated that it is his intent to hear the resolution
and hold it until the next hearing to provide members time to
consider it and provide comments or suggestions.
At ease from 3:42 to 3:43.
REPRESENTATIVE CHERISSE MILLETT, Alaska State Legislature,
sponsor of HJR 7, said this resolution urges Congress to open
the coastal plain of ANWR to oil and gas exploration and
development. It is important at this time to let Congress know
that the Legislature is concerned about the possible closure of
ANWR and that it is important to open development of all Alaska
lands for the benefit of Alaskans and the United States. ANWR
holds the largest reserve for oil and gas development in the
U.S. and is considered to have high potential for continued
discovery.
REPRESENTATIVE MILLETT highlighted that the resolution has been
amended to include an additional "whereas" clause addressing
directional drilling and the development impact area has been
reduced to 2,000 acres.
SENATOR WAGONER said he knows that industry has repeatedly said
that 2,000 acres is enough area to develop, but he is skeptical
that it is enough. "It just kind of flies in the face of reality
because it's a small area," he said.
REPRESENTATIVE MILLETT replied at one point it was 7,000 acres,
but because of technology advancements the oil industry has said
it needs just 1,642 acres. That was rounded up to 2,000 acres to
provide leeway.
SENATOR WAGONER said it isn't the drilling that takes space;
it's the pipe storage yards and support services. He wants the
committee to be aware that some people might question the
number.
SENATOR FRENCH thanked Representative Millett for bringing this
up. He has supported ANWR drilling for a long time. He mentioned
how long Exxon sat on the Point Thomson lease and asked if the
resolution should include a "duty to develop" clause.
REPRESENTATIVE MILLETT replied the federal leasing department
has said that their leases carry an implied duty to produce.
This has never been an issue.
3:49:31 PM
SENATOR FRENCH asked if she said that the federal government has
leases similar to Alaska's leases where the duty to produce is
implied rather than stated.
REPRESENTATIVE MILLETT answered yes; the federal leasing
department told her they never saw the need to put duty to
produce language in a lease because there had never been a
problem. "They didn't understand why we would do that if they'd
never had an issue in all the leasing they've done on federal
lands," she said.
SENATOR FRENCH asked for clarification that she said that it is
not explicit in the lease, but it is implicit that there is a
duty to produce. Since the federal leasing department hasn't had
a problem, they haven't added the language.
REPRESENTATIVE MILLETT concurred with the summary.
SENATOR FRENCH said he'd like to see that documentation because
some people have criticized the slow development on federal
lands.
REPRESENTATIVE MILLETT commented that she found it interesting
that federal leases are handed back more frequently than state
leases.
SENATOR STEVENS asked where the resolution mentions directional
drilling.
REPRESENTATIVE MILLETT directed attention to page 3, line 10.
3:52:00 PM
SENATOR WAGONER recalled that there was an agreement years ago
between Washington Senator Scoop Johnson and Alaska Senator Ted
Stevens to continue to push for oil exploration in ANWR
regardless of what might happen in the Arctic National Wildlife
Refuge. He asked about including a "whereas" clause
acknowledging that point because it's part of the history of the
ANWR battle and discussion.
SENATOR HUGGINS asked if she knows the top ten reasons that
people oppose opening ANWR.
REPRESENTATIVE MILLETT replied some of the opposition includes:
environmental concerns, impacts to wildlife, the desire to keep
ANWR unchanged, and concerns about the Gwich'in lifestyle.
3:54:40 PM
CHRIS CANNON, representing himself from Fairbanks said he
opposes HJR 7. He said he believes that the coastal plain is
about the last five percent of land that is not open to oil and
gas leasing. He questions how much is enough and if this how we
want to generate state revenue. His perspective is that this
isn't so much an energy issue as a big non-renewable dollar sign
for the state. I'm testifying because this is important to me
and I hope you can appreciate that, he concluded.
SENATOR WAGONER asked where he works.
MR. CANNON replied he works for the Gwich'in Steering Committee
for eight months of the year and as a professional mountain
guide the other four months.
SENATOR WAGONER asked how many children he has in school.
MR. CANNON replied he has none.
LUCY BEECH, Executive Director, Gwich'in Steering Committee,
said that ANWR or the 1002 Area is known as the sacred place
where life begins to the Gwich'in people. It is the calving and
nursery ground of the Porcupine caribou herd upon which the
Gwich'in tribe has depended for over 20,000 years. Even during
famines they did not enter the calving and nursing grounds
because it is so sacred. Most tribal people believe that
spawning, calving, and nursery grounds are sacred and humans
have no business desecrating them. Alaska Natives have given up
so much to the state, but things aren't getting better. "All I
see is our lives are getting worse," she said.
MS. BEECH pointed out that the existing development on the North
Slope has emitted 41,408 tons of nitrous oxide and 779 tons of
sulfur dioxide, a key cause of acid rain. Recently friends in
the Prince William Sound saw the 20th anniversary of the
devastating Exxon Valdez oil spill. How do you fix such a mess?
"We're not willing to have a place we consider sacred to be
gambled with," she said. This place needs to be off limits.
4:00:56 PM
PAM MILLER, Northern Alaska Environmental Center (NAEC),
Fairbanks, said she is putting this issue in context by pointing
out that NAEC is excited about the bill that just passed that
addresses alternative energy resources. Other bills under
consideration about renewable energy, weatherization, and energy
efficiency are measures that will make life better for people
and communities statewide. NAEC endorses those efforts as the
future of sustainable energy in Alaska.
MS. MILLER highlighted that just this week the state announced a
civil action against BP for continuing poor maintenance,
negligence, and spills on the North Slope. The records that were
provided by the state regarding the status of oversight of
pipeline safety and spill reduction were a far cry from what is
included in that civil complaint. She suggested legislators read
that before supporting the opening of this one protected area of
Alaska. Even the Department of Natural Resources admits this is
the only area on the North Slope that is protected for its
habitat value. She added that part of that civil action was that
when pipe repairs commenced the workers were exposed to asbestos
that was then released into the air. This is in contradiction to
the Clean Air Act.
There has been chronic poor management of areas that are open to
oil and gas so it seems fruitless to go into an area that's been
protected for wildlife since 1960. Furthermore, there are still
decades of oil to produce on already open state land.
MS. MILLER described as specious the argument that 2,000 acres
is an adequate footprint for development since the proposed
drilling area is scattered over 1.5 million acres.
4:04:24 PM
CARL PORTMAN, Deputy Director, Resource Development Council
(RDC), said he is testifying in support of HJR 7. RDC is a
statewide nonprofit founded in 1975. This membership-funded
organization is comprised of individuals and companies from
Alaska oil and gas, mining, timber, tourism, and fishing
industries, as well as Native corporations, local communities,
organized labor, and industry support firms. Its purpose is to
link these diverse interests to encourage a strong diversified
private sector in Alaska and expand the state's economic base
through responsible development of natural resources.
MR. PORTMAN said the 1002 area of ANWR is considered to be the
nation's most promising onshore oil and gas prospect, and there
is strong statewide support for its environmentally responsible
development. It could play a large role in the state's future
prosperity, create thousands of jobs, and reduce reliance on
foreign oil. Even if all major prospects are developed, 92
percent of ANWR would remain closed to exploration. If the
footprint is limited to just 2,000 acres, that would be well
under one percent of the entire Arctic National Wildlife Refuge.
MR. PORTMAN posited that the U.S. must continue to pursue new
oil and gas development even as it slowly transitions to new
energy sources. Even under the most optimistic projections, the
nation will be dependent on fossil fuels for nearly 80 percent
of its energy consumption in 2030. "As a result, for every
barrel of oil America refuses to develop domestically, it will
have little choice but to import an equal amount from overseas
where weaker environmental regulations often apply," he stated.
ADRIAN HERERA, Arctic Power, said this nonprofit, grassroots
organization has for more than 12 years worked in Washington
D.C. to open ANWR. HJR 7 is crucial to this effort because
resolutions from the Alaska Legislature weigh heavily in this
contentious debate. A majority of Americans support opening the
1002 area of ANWR and those who do not support it oftentimes
change their minds to the affirmative once told that most
Alaskans and the state government support the issue.
The ANWR issue will continue to be contentious in the future
partly because it is the number one fundraising mechanism for
the environmental lobby, he said. Most recently on Capitol Hill
bills were introduced in both bodies to lock up the 1002 area
with a wilderness designation. A letter that will be delivered
to the White House is also circulating around Congress to put
off limits the entire on and off shore Arctic area to all forms
of commercial development. This is a threat to Alaska's
sovereignty over its lands. HJR 7 represents the voice of
Alaskans and tells Congress that they care and want the issue
dealt with responsibly.
CO-CHAIR WIELECHOWSKI closed public testimony and held HJR 7 for
further work.
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