Legislature(2021 - 2022)BUTROVICH 205
03/30/2022 03:30 PM Senate RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| SB121 | |
| HJR34 | |
| HB304 | |
| SB239|| SB240 | |
| SB240 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 121 | TELECONFERENCED | |
| *+ | HB 304 | TELECONFERENCED | |
| *+ | HB 209 | TELECONFERENCED | |
| + | HB 148 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| *+ | HJR 34 | TELECONFERENCED | |
| += | SB 239 | TELECONFERENCED | |
| += | SB 240 | TELECONFERENCED | |
HJR 34-NAT'L PETROLEUM RESERVE IN ALASKA
3:41:11 PM
VICE CHAIR MICCICHE announced the consideration of HOUSE JOINT
RESOLUTION NO. 34 Supporting oil and gas leasing and development
within the National Petroleum Reserve in Alaska.
3:41:31 PM
REPRESENTATIVE JOSIAH PATKOTAK, Alaska State Legislature,
Juneau, Alaska, sponsor of HJR 34, introduced the legislation
speaking to the following sponsor statement:
In 1923, a large swath of land on Alaska's North Slope
was set aside by the federal government for the
purpose of providing a potential supply of oil for the
United States Navy. Later redesignated the National
Petroleum Reserve in Alaska (NPR-A), this 23.5-
million-acre area has become a critical source of oil
and gas production in Alaska and holds vast potential
for future development that could provide thousands of
jobs and billions of dollars of revenue for local
communities, the state, and the nation.
The most recent Integrated Activity Plan for the NPR-A
was finalized by the Department of Interior in 2020,
following a multi-year planning process that included
extensive input and consultation with the State of
Alaska, the North Slope Borough, North Slope tribes,
Alaska Native corporations, and impacted communities.
That plan opened over 18 million acres of the Reserve
to responsible oil and gas leasing that has the
potential to
- Generate over $4.75 billion in state, federal, and
local government revenues
- Create over 3,600 direct and 2,750 indirect jobs
annually
- Increase throughput and extend the life of the
Trans Alaska Pipeline System
- Strengthen national security, bolster the US
economy, and provide affordable energy to US
customers
However, in January of this year, the Department of
the Interior elected to revert to the 2013 NPR-A
Integrated Activity Plan, which would remove nearly 7
million acres or roughly 28 percent of the entire
Reserve from oil and gas leasing.
With the goal of realizing the enormous benefits
development of oil and gas in the NPR-A would bring to
local communities, tribal governments, the state, and
the nation, House Joint Resolution 34 urges the
Department of the Interior to maximize the area
available for oil and gas leasing and development
within the NPR-A while conserving and protecting
valued fish, wildlife, subsistence, and cultural
resources.
3:45:05 PM
SENATOR BISHOP asked whether the Secretary of the Interior had
responded to any requests to meet with any of the leaders of the
North Slope Borough.
REPRESENTATIVE PATKOTAK answered not yet, but requests have been
sent to the Secretary of the Interior for conversations.
Conversations have occurred with staff from the Department of
the Interior, as a community. The borough mayor spoke about the
importance of responsible development in the district and what
it means to the economic livelihood of indigenous people. A
meeting is in the works, but nobody has confirmed. However, he
anticipates that the Department of Interior staff, or maybe the
Secretary, will attend along with representatives from the
Department of Energy.
3:46:11 PM
SENATOR BISHOP asked Representative Patkotak to apprise the
Senate Resources Standing Committee once the meeting was
confirmed.
REPRESENTATIVE PATKOTAK answered that he would do his best to
keep everyone in the loop, especially since the meetings will
provide legislative leadership an opportunity to voice their
opinions.
3:46:49 PM
SENATOR STEVENS observed that HJR 34 had twelve Senate cross
sponsors.
REPRESENTATIVE PATKOTAK expressed appreciation for the support.
3:47:12 PM
SENATOR KIEHL advised that we was not a cross sponsor because he
wasn't sure he disagreed with all the changes in the 2020 plan,
but he did agree with the resolves in HJR 34 that call for the
maximum use of the land for development consistent with good
environmental management and renewable use of the resources. He
added that he absolutely agreed that local consultation
including travel consultation, is critical. If it did not
happen, the state should call it out.
REPRESENTATIVE PATKOTAK expressed appreciation for Senator
Kiehl's comments.
3:49:20 PM
VICE CHAIR MICCICHE turned to invited testimony on HJR 34.
3:49:35 PM
BRIDGET ANDERSON, Vice President of External Affairs, Arctic
Slope Regional Corporation (ASRC), Anchorage, Alaska, provided
invited testimony on HJR 34.
She stated that ASRC is one of the 12 land-owning Alaska Native
corporations that were created under the 1971 Alaska Native
Claims Settlement Act (ANCSA). ASRC represents the business
interests of the corporations more than 13,000 Inupiat
shareholders.
MS. ANDERSON stated that ASRC has advocated for years alongside
the other North Slope entities for the responsible development
of the natural resources in the region, including the NPR-A.
th
ASRC will celebrate its 50 anniversary this year and during
that time has found ways to work with partners, the State of
Alaska, industry, and the federal government to fulfill the
directives in ANCSA, one of which is to provide benefits to
shareholders. Thus, ASRC uses the land conveyed through ANCSA
for the cultural and economic benefit of its shareholders. Some
of these lands are within the NPR-A. Despite sustained efforts
share ASRC's perspective on responsible resource development in
the region with the federal government, ASRC's voice is often
drowned out by entities with no ties to the region or
understanding of the nuanced ANCSA model for indigenous
representation. She called the choices that Congress and the
administration have made to overlook ASRC's voice frustrating
and insulting.
MS. ANDERSON stated that ASRC is keenly aware that advances in
responsible resource development on the North Slope and NPR-A
have benefited the region and state But for Alaska Native
corporations it goes beyond jobs and increased revenues. She
highlighted that the ANCSA Regional Association reported that
the regional Native corporations have disbursed more that $3.5
billion through the revenue sharing provisions of ANCSA. Section
7(i) of ANCSA requires 70 percent of revenues from subsurface
and timber resources on ANCSA lands to be shared with the other
regional corporations, and Section 7(j) requires regional
corporation that receive Section 7(i) payments to disburse 50
percent to the Alaska Native village corporations in their
regions. To that end, ASRC has contributed more than $1.5
billion to the other regional corporations.
MS. ANDERSON concluded her testimony stating support for HJR 23
on behalf of ASRC.
VICE CHAIR MICCICHE expressed appreciation for the testimony.
3:53:05 PM
SENATOR STEVENS highlighted the benefits that stem from ASRC
sharing $1.5 billion with the regional corporations in the area
through provisions in ANCSA. He said it has carried all Alaska
Native corporations forward.
3:53:53 PM
VICE CHAIR MICCICHE opened public testimony on HJR 34.
3:54:18 PM
KARA MORIARITY, President/CEO, Alaska Oil and Gas Association
(AOGA), Anchorage, Alaska, stated unequivocal support for HJR 34
on behalf of AOGA. She stated that AOGA represents the majority
of oil and gas companies that have state and federal interests
both onshore and offshore. She said this industry accounts for
about 25 percent of all jobs and wages in the state, making it
the most important economic driver in the state. With the recent
surge in oil prices, estimates for this coming year indicate
that the industry will provide local and state governments with
more than $5 billion.
MS. MORIARITY highlighted that federal land in Alaska continues
to offer the most promising opportunities for oil and gas
leasing, particularly for North Slope communities. However,
despite clear federal policy from Congress in 1980 the first
NPR-A lease sale didn't occur until 1990, and the first oil
development didn't start until 2015. She agreed with the sponsor
when he said the benefit of energy independence today couldn't
be more important.
MS. MORIARITY concluded her testimony stating that AOGA joins
the committee in urging the federal government to maximize the
area that is available for development in NPR-A
3:56:42 PM
VICE CHAIR MICCICHE closed public testimony on HJR 34.
VICE CHAIR MICCICHE stated support for Ms. Anderson's statement
that the way the federal government was ignoring Alaskans in
these important decisions was insulting. He added that it was
also largely illegal based on the guarantees under ANCSA,
ANILCA, and the Statehood Compact that have been consistently
ignored and eroded since the start.
3:57:41 PM
SENATOR STEVENS moved to report HJR 34, work order 32-LS1578\B,
from committee with individual recommendations and attached
[fiscal note(s)].
VICE CHAIR MICCICHE found no objection and HJR 34 was reported
from the Senate Resources Standing Committee.