Legislature(2019 - 2020)BUTROVICH 205

02/25/2019 03:30 PM Senate RESOURCES

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03:30:22 PM Start
03:30:54 PM SJR7
05:03:58 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Moved SJR 7 Out of Committee
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE RESOURCES STANDING COMMITTEE                                                                             
                       February 25, 2019                                                                                        
                           3:30 p.m.                                                                                            
MEMBERS PRESENT                                                                                                               
Senator Chris Birch, Chair                                                                                                      
Senator John Coghill, Vice Chair                                                                                                
Senator Cathy Giessel                                                                                                           
Senator Lora Reinbold                                                                                                           
Senator Click Bishop                                                                                                            
Senator Scott Kawasaki                                                                                                          
Senator Jesse Kiehl                                                                                                             
MEMBERS ABSENT                                                                                                                
All members present                                                                                                             
COMMITTEE CALENDAR                                                                                                            
SENATE JOINT RESOLUTION NO. 7                                                                                                   
Requesting  that the  United States  Department  of the  Interior                                                               
Bureau  of  Land Management  implement  an  oil and  gas  leasing                                                               
program  in the  coastal plain  of the  Arctic National  Wildlife                                                               
     - MOVED SJR 7 OUT OF COMMITTEE                                                                                             
PREVIOUS COMMITTEE ACTION                                                                                                     
BILL: SJR 7                                                                                                                   
SHORT TITLE: ENDORSING ANWR LEASING; RELATED ISSUES                                                                             
SPONSOR(s): SENATOR(s) BIRCH                                                                                                    
02/20/19       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/20/19       (S)       RES                                                                                                    
02/25/19       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
WITNESS REGISTER                                                                                                              
TREVOR FULTON, Staff                                                                                                            
Senator Birch                                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided an overview of SJR 7.                                                                            
FAITH MARTINEAU, Executive Director                                                                                             
Office of Project Management and Permitting                                                                                     
Alaska Department of Natural Resources                                                                                          
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SJR 7.                                                                            
CARL PORTMAN, Deputy Director                                                                                                   
Resource Development Council                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SJR 7.                                                                            
KARA MORIARTY, President and CEO                                                                                                
Alaska Oil and Gas Association                                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SJR 7.                                                                            
ALBERT FOGLE, Vice President                                                                                                    
Alaska State Chamber of Commerce                                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SJR 7.                                                                            
LILLIAN POTHIER, representing self                                                                                              
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in opposition of SJR 7.                                                                         
ADRIENNE TITUS, representing self                                                                                               
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified in opposition of SJR 7.                                                                         
LOIS EPSTEIN, Engineer and Arctic Program Director                                                                              
The Wilderness Society                                                                                                          
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in opposition of SJR 7.                                                                         
FRAN MAUER, representing self                                                                                                   
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified in opposition of SJR 7.                                                                         
SARAH MAUPIN, member                                                                                                            
Alaska Slope Regional Corporation                                                                                               
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified in opposition of SJR 7.                                                                         
CRIS EICHENLAUB, representing self                                                                                              
Eagle River, Alaska                                                                                                             
POSITION STATEMENT: Testified in support of SJR 7.                                                                            
VIKKI JO KENNEDY, representing self                                                                                             
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT: Testified in opposition of SJR 7.                                                                         
PRINCESS LUCAJ, representing self                                                                                               
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified in opposition of SJR 7.                                                                         
MISTY NICKOLI, representing self                                                                                                
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified in opposition of SJR 7.                                                                         
ROSEMARY AHTUANGARUAK, representing self                                                                                        
Nuiqsut, Alaska                                                                                                                 
POSITION STATEMENT: Testified in opposition of SJR 7.                                                                         
JOHN SONIN, representing self                                                                                                   
Douglas, Alaska                                                                                                                 
POSITION STATEMENT: Testified in opposition of SJR 7.                                                                         
ANNA SORENSEN, Director of Administration and Finance                                                                           
Northern Alaska Environmental Center                                                                                            
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified in opposition of SJR 7.                                                                         
ACTION NARRATIVE                                                                                                              
3:30:22 PM                                                                                                                    
CHAIR CHRIS BIRCH called the  Senate Resources Standing Committee                                                             
meeting to order  at 3:30 p.m. Present at the  call to order were                                                               
Senators  Coghill, Giessel,  Kawasaki,  Reinbold, Kiehl,  Bishop,                                                               
and Chair Birch.                                                                                                                
          SJR 7-ENDORSING ANWR LEASING; RELATED ISSUES                                                                      
3:30:54 PM                                                                                                                    
CHAIR  BIRCH   announced  the   consideration  of   Senate  Joint                                                               
Resolution 7  (SJR 7).  He explained that  SJR 7  endorses Arctic                                                               
National Wildlife Refuge (ANWR) leasing.                                                                                        
He opined  that ANWR is  critical to Alaska's future  economy for                                                               
increasing Trans-Alaska  Pipeline System's (TAPS)  throughput. He                                                               
noted  that Senator  Giessel has  provided the  committee with  a                                                               
summary of  the 14 prior  times that the Senate  has collectively                                                               
generated an  ANWR resolution, showing  that the  endorsement has                                                               
been a long-term effort on the part of the Senate.                                                                              
CHAIR BIRCH said ANWR's development  potential has an opportunity                                                               
to create  thousands of jobs  for Alaskans and bring  in billions                                                               
in revenue  for state coffers. SJR  7 would display an  intent to                                                               
see progress made on AMWR's  leasing program and show that Alaska                                                               
is indeed  "open for  business." The resolution  will serve  as a                                                               
31st  Legislature's comment  on  the  Draft Environmental  Impact                                                               
Statement  (EIS). He  noted that  March 13,  2019 is  the closing                                                               
date for public testimony on the EIS.                                                                                           
3:32:14 PM                                                                                                                    
TREVOR FULTON,  Staff, Senator  Birch, Alaska  State Legislature,                                                               
Juneau, Alaska,  paraphrased the following sponsor  statement for                                                               
SJR 7:                                                                                                                          
     In late  2017 after  nearly 40 years  of effort  by the                                                                    
     state  and  by  Alaska's federal  delegation,  Congress                                                                    
     finally authorized  an oil and gas  leasing program for                                                                    
     ANWR with  the passage  of the Tax  Cuts and  Jobs Act;                                                                    
     that  congressional authorization  of ANWR  activity is                                                                    
     what  makes  this  resolution   differ  from  the  many                                                                    
     previous versions you have likely seen over the years.                                                                     
     Rather  than  urging  Congress to  open  up  ANWR,  the                                                                    
     version before  you today  urges the  executive branch,                                                                    
     specifically the  Department of  Interior, to  stay the                                                                    
     course on  a leasing  program. A leasing  program which                                                                    
     has  just   taken  an  important  early   step  in  the                                                                    
     regulatory process  with the  publication of  the Draft                                                                    
     EIS just  this December; that's what's  different about                                                                    
     this  version of  ANWR resolution  however much  of the                                                                    
     rest remains the same.                                                                                                     
     The "whereases"  of this  resolution continue  to focus                                                                    
     on the impressive  oil and gas potential  of ANWR which                                                                    
     is  estimated  at 7.7  billion  barrels  of oil  and  7                                                                    
     trillion cubic  feet of gas. The  potential benefits of                                                                    
     ANWR  could  bring  to  Alaska  and  the  rest  of  the                                                                    
     country,  including  generating  over $100  billion  in                                                                    
     state,   federal,   and  local   government   revenues;                                                                    
     creating over  12,500 direct and indirect  jobs at peak                                                                    
     employment;  increasing  throughput and  extending  the                                                                    
     life of TAPS; and enhancing  the economics of the AKLNG                                                                    
     project;  all  while strengthening  national  security,                                                                    
     bolstering the  U.S. economy, and  providing affordable                                                                    
     energy to U.S. consumers.                                                                                                  
     The resolution  also highlights  advances in  oil field                                                                    
     technology that  have exponentially  shrunk development                                                                    
     footprints over the years. The  highlights of a 50-year                                                                    
     record  of  safe  and responsible  development  on  the                                                                    
     North  Slope  and  the continued  state  commitment  to                                                                    
     ensuring  the  health  of  the  Porcupine  and  central                                                                    
     Arctic  caribou herds  and  protecting the  environment                                                                    
     and  wildlife of  Alaska's arctic  region. Finally,  it                                                                    
     also highlights the  widespread support for responsible                                                                    
     development in  the ANWR coastal  plain by  Alaskans in                                                                    
     general  and specifically  by  residents  of the  North                                                                    
     One of the goals of this  resolution is to serve as the                                                                    
     31st Legislature's official comment  on the BLM's "2018                                                                    
     Coastal Plain  Oil and Gas Leasing  Program Draft EIS,"                                                                    
     which was published in  December. Comments submitted on                                                                    
     the Draft EIS will inform  key decisions to made in the                                                                    
     final  EIS which  is scheduled  for release  later this                                                                    
     year; those  key decisions include  which areas  of the                                                                    
     coastal plain would  be offered for leasing  as well as                                                                    
     the  terms  and  conditions  to  be  applied  to  those                                                                    
     leases.  In  order  for   this  resolution  to  provide                                                                    
     meaningful  input on  the  Draft  EIS, this  resolution                                                                    
     will have  to make it  through both bodies  before that                                                                    
     March 13th deadline.                                                                                                       
3:35:38 PM                                                                                                                    
SENATOR KIEHL asked what the state and local government portion                                                                 
will be from the potential $100 billion in revenue from ANWR.                                                                   
MR. FULTON explained the information  is available from the Draft                                                               
EIS on the  BLM website. He addressed section 3,  page 236 in the                                                               
BLM report that  noted projected revenue distribution  over a 30-                                                               
year period as follows:                                                                                                         
   • Local governments: $1.2 billion;                                                                                           
   • State government: $71 billion;                                                                                             
   • Federal government: $32.5 billion.                                                                                         
SENATOR KAWASAKI  addressed the  fourth "whereas"  in SJR  7 that                                                               
talks about two lease sales held  by December 2024. He noted that                                                               
in the law the sales are  referenced as, "Ten years after date of                                                               
enactment." He inquired  if the "whereas" in the  resolution is a                                                               
MR.  FULTON deferred  the question  to Faith  Martineau with  the                                                               
Alaska Department of Natural Resources (DNR).                                                                                   
SENATOR KAWASAKI specified that the  law itself calls for a, "ten                                                               
year  after  enactment  of  the  law." He  asked  if  the  actual                                                               
enactment would be 2028. He explained  that he was trying to make                                                               
sure the form is correct.                                                                                                       
3:38:46 PM                                                                                                                    
FAITH   MARTINEAU,   Executive   Director,  Office   of   Project                                                               
Management   and  Permitting,   Alaska   Department  of   Natural                                                               
Resources (DNR), Anchorage, Alaska,  explained that section 20001                                                               
of the 2017 Tax Cuts and  Jobs Act provides specific direction to                                                               
the Department  of Interior and  Bureau of Land  Management (BLM)                                                               
to  conduct not  fewer  than  two lease  sales  within 10  years;                                                               
however, the  first lease sale has  to be enacted within  4 years                                                               
of the  issuance of  the finalization  of that  tax act,  so that                                                               
would be 2022 because the act was passed in 2017.                                                                               
SENATOR KAWASAKI  asked about the  fifth "whereas"  regarding the                                                               
estimated 7.7  billion barrels of  oil and 7 trillion  cubic feet                                                               
of natural  gas. He asked  what the source  was for the  ANWR oil                                                               
and gas projections.                                                                                                            
MR. FULTON replied  that the information came from  the Draft EIS                                                               
document, located on  page 36, section 3. The quoted  source is a                                                               
United States Geological Survey (USGS) report from 2005.                                                                        
SENATOR KIEHL  noted that the  resolution allows for up  to 2,000                                                               
acres  of potential  disturbance  and asked  how  the acreage  is                                                               
calculated.  He  inquired if  Congress  set  limits or  does  the                                                               
federal  government   have  rules   about  how  the   acreage  is                                                               
MR.  FULTON responded  that the  acreage  parameters were  placed                                                               
within the 2017  Tax Act, (Public Law 115-97),  and referenced as                                                               
     In  administering  this  section, the  Secretary  shall                                                                    
     authorize up to 2,000 surface  acres of Federal land on                                                                    
     the  Coastal  Plain to  be  covered  by production  and                                                                    
     support  facilities (including  airstrips and  any area                                                                    
     covered  by  gravel  berms  or  piers  for  support  of                                                                    
     pipelines) during the term of  the leases under the oil                                                                    
     and gas program under this section.                                                                                        
MR.  FULTON  said   the  previous  statement  is   what  the  law                                                               
prescribes.  During the  "scoping" process  for the  EIS document                                                               
there  were  a   number  of  public  comments   asking  for  more                                                               
information.  The Draft  EIS provided  additional information  as                                                               
     The BLM interprets the types  of production and support                                                                    
     facilities  that  will  count towards  the  2,000  acre                                                                    
     limit as  including any type  of gravel or  other fill-                                                                    
     constructed facility which touches  the land surface to                                                                    
     include  gravel  pads  used for  processing  facilities                                                                    
     including  wells,  production  facilities, or  pump  or                                                                    
     compressor stations,  gravel air  strips or  roads, and                                                                    
     any other  area covered  by gravel  berms or  piers for                                                                    
     support of pipelines.                                                                                                      
3:42:51 PM                                                                                                                    
CHAIR BIRCH opened  public testimony and said  the committee will                                                               
first hear from invited testimony.                                                                                              
3:43:30 PM                                                                                                                    
MS.  MARTINEAU   disclosed  that  she  also   leads  the  state's                                                               
participation as  a cooperating agency  in the development  of an                                                               
EIS for an  oil and gas leasing program in  ANWR's coastal plain.                                                               
She said  she was calling to  voice DNR's support for  SJR 7. The                                                               
Department of Interior  and BLM recently published  its Draft EIS                                                               
which  reflects  potential implementation  strategies,  available                                                               
leasing areas, and lease stipulations.                                                                                          
She  said  the  state's  cooperating  agency  team  has  provided                                                               
comments  to  BLM  on  the  Draft  EIS  prior  to  the  March  13                                                               
commentary deadline.  Selection of  an alternative  that provides                                                               
maximum flexibility  to future decision  makers is  critical. The                                                               
alternative should  consider new information such  as exploratory                                                               
seismic  data  as well  as  existing  local, state,  and  federal                                                               
permitting  processes  to   facilitate  responsible  development,                                                               
production, and  transportation of oil  and gas resources  to and                                                               
from ANWR's  coastal plain. DNR,  part of the  cooperating agency                                                               
team,  has  reached  out  to  the North  Slope  Borough  and  its                                                               
stakeholders  to  identify  areas   of  potential  alignment  and                                                               
She  said she  believes SJR  7 will  reinforce the  importance of                                                               
responsible  oil and  gas development  to  the state  and to  all                                                               
Alaskans  with the  hope  that the  final  resolution includes  a                                                               
recommendation   from   the   Alaska  Legislature   to   maximize                                                               
flexibility for future  decision makers as BLM  determines how to                                                               
implement an oil and gas leasing program in the coastal plain.                                                                  
3:46:50 PM                                                                                                                    
SENATOR KAWASAKI  asked her  to explain the  role of  the state's                                                               
cooperating agency team.                                                                                                        
MS.  MARTINEAU replied  that the  State of  Alaska has  a lot  of                                                               
different departments  and divisions and programs,  each with its                                                               
own mission and responsibilities. She  explained that to maximize                                                               
the  efficiency  and  effectiveness  of  the  state's  commenting                                                               
opportunities,  especially during  federal plan  reviews such  as                                                               
with the EIS for the coastal  plains oil and gas leasing program.                                                               
The  Office  of  Project Management  and  Permitting  coordinates                                                               
directly  with agency  representatives to  collect comments.  The                                                               
coordinated  approach  helps  to  ensure that  the  state  has  a                                                               
subject-matter expert for each of the different resource areas.                                                                 
She  detailed   that  the  Department   of  Fish  and   Game  has                                                               
specifically identified  data and  is including studies  based on                                                               
monitoring  for   terrestrial  mammals  including   caribou.  The                                                               
Department of  Environmental Conservation was key  in identifying                                                               
existing  monitoring information  related to  air quality  and to                                                               
provide  comments regarding  spill  response.  The Department  of                                                               
Natural Resources  has been able to  identify potential solutions                                                               
regarding water  sources and the  lack of abundant  surface water                                                               
within the coastal plain area. She  added that there are a number                                                               
of other resource  areas where the state has  provided comment as                                                               
3:49:01 PM                                                                                                                    
CARL  PORTMAN,  Deputy  Director,  Resource  Development  Council                                                               
(RDC),  Anchorage, Alaska,  testified in  support of  SJR 7.  She                                                               
said RDC has  consistently supported opening ANWR's  1002 Area to                                                               
oil and gas development and detailed as follows:                                                                                
      • ANWR's coastal plain is considered America's best                                                                       
         onshore prospect for conventional oil and gas                                                                          
      • Alaska depends on the responsible development of its                                                                    
         natural resources to support its economy:                                                                              
        o The discovery of oil lead to Congress finally voting                                                                  
          in favor of Alaska's statehood.                                                                                       
      • Alaska's North Shore:                                                                                                   
        o Produced more than 17 billion barrels of oil.                                                                         
        o Trans-Alaska Pipeline System (TAPS):                                                                                  
             square4 Even though operating at one-quarter capacity,                                                             
               oil production generated $2.7 billion in state                                                                   
               revenues in FY2018, accounting for 80 percent of                                                                 
              unrestricted general-fund revenues.                                                                               
             square4 AWWR's coastal plain production could increase                                                             
               TAPS output to approximately two-thirds of its                                                                   
      • North Slope oil industry:                                                                                               
        o Over the past 40 years has demonstrated that energy                                                                   
          development and environmental stewardship can coexist.                                                                
        o Proven track record of responsible development in                                                                     
          sensitive areas by protecting the environment,                                                                        
          wildlife, and subsistence needs of local residents.                                                                   
        o Generates thousands of jobs:                                                                                          
             square4 Raised the standard of living,                                                                             
             square4 Significantly improved the quality of life,                                                                
             square4 Breaks the cycle of dependency.                                                                            
      • ANWR's 1002 Area:                                                                                                       
        o 1.6-million-acre area.                                                                                                
       o Non-wilderness portion of ANWR's coastal plain.                                                                        
        o Federal law requires the footprint of production and                                                                  
          support facilities to be limited to no more than 2,000                                                                
          surface acres:                                                                                                        
             square4 Equivalent to 0.01 percent of ANWR's 19-million                                                            
      • Economy:                                                                                                                
        o Oil and gas production will be required to power the                                                                  
          economy and serve as a bridge to the renewable and                                                                    
          green energy sources of the future.                                                                                   
        o Every barrel of oil not developed in Alaska will                                                                      
          simply be imported from overseas where environmental                                                                  
          regulations are often weaker, and the carbon footprint                                                                
          is larger.                                                                                                            
3:53:27 PM                                                                                                                    
KARA   MORIARTY,  President   and   CEO,  Alaska   Oil  and   Gas                                                               
Association, Anchorage,  Alaska, testified  in support of  SJR 7.                                                               
She said  AOGA has  long supported a  leasing program  for ANWR's                                                               
coastal  plain.  A  statewide  poll in  January  showed  that  64                                                               
percent  of Alaskans  continue to  support development  in ANWR's                                                               
coastal plain region.                                                                                                           
She explained the need for an ANWR leasing program as follows:                                                                  
   • ANWR's history:                                                                                                            
        o Formed in 1960 with 9 million acres.                                                                                  
        o Expanded to 19  million acres in 1980  with the passage                                                               
          of the Alaska National  Interest Lands Conservation Act                                                               
        o Over  90 percent  of ANWR  is permanently  protected as                                                               
        o Section 1002  of ANILCA,  1002 Area,  a section  of the                                                               
          law that states that a  small portion of ANWR's coastal                                                               
          plain  will  be  set  aside  for  future  oil  and  gas                                                               
             square4 Limited to 2,000 acres which is smaller than most                                                          
               U.S. airport acreage.                                                                                            
   • Need for additional oil and gas development:                                                                               
        o The  U.S.   Energy  Information   Administration  (EIA)                                                               
          predicts  that by  2050,  petroleum  and other  liquids                                                               
          followed  closely  by  natural   gas,  will  remain  by                                                               
          multiple magnitudes the most  consumed energy source in                                                               
          the U.S.                                                                                                              
        o The  International  Energy Administration's  prediction                                                               
          for  global demand  is like  EIA's  prediction for  the                                                               
        o The government has described the  1002 Area as the most                                                               
          significant oil potential in the U.S.                                                                                 
        o The 1002  Area is the  largest onshore play  in federal                                                               
          land in the U.S.                                                                                                      
        o Production  from   the  1002  Area  will   reduce  U.S.                                                               
          reliance  on foreign  oil over  the  decades by  almost                                                               
          $600 billion.                                                                                                         
   • Safe oil and gas development:                                                                                              
        o The  oil-and-gas  industry  has   a  history  of  safe,                                                               
          effective, and  environmentally responsible development                                                               
          of the Arctic, spanning almost five decades.                                                                          
        o Today's development is not the  same as it was 40 years                                                               
             square4 Typical oil pad in 1970 was 65 acres with an                                                               
               underground drilling area of 3 miles.                                                                            
             square4 A new oil rig by Doyon, an Alaska native                                                                   
               corporation, has a total gravel pad of 12 acres                                                                  
               on the surface with an underground drilling area                                                                 
               of 150 miles.                                                                                                    
MS. MORIARTY  summarized that AOGA believes  that the development                                                               
of ANWR's  coastal plain will  be good  for the country  and will                                                               
continue to  build upon the  jobs and  revenues that the  oil and                                                               
gas industry has contributed to the state for decades.                                                                          
3:58:21 PM                                                                                                                    
ALBERT FOGLE,  Vice President, Alaska State  Chamber of Commerce,                                                               
Anchorage, Alaska,  testified in support  of SJR 7. He  set forth                                                               
that responsible  oil and gas  development in the  small fraction                                                               
of ANWR  proposed for  leasing will  help ensure  energy security                                                               
for decades. New  oil production from the ANWR  coastal plain has                                                               
the  potential  to  increase throughput  through  TAPS,  increase                                                               
thousands  of jobs  nationwide, generate  billions of  dollars in                                                               
government revenue  for public services,  and keep  energy prices                                                               
4:02:52 PM                                                                                                                    
LILLIAN POTHIER, representing self,  Juneau, Alaska, testified in                                                               
opposition of SJR 7. She opined  that ANWR should not be utilized                                                               
for  oil and  gas extraction.  She said  oil and  gas are  finite                                                               
resources  and  investment should  be  made  in renewable  energy                                                               
sources.  ANWR's  eco-system  should  not be  impacted  by  human                                                               
development in any way.                                                                                                         
4:05:32 PM                                                                                                                    
ADRIENNE TITUS,  representing self, Fairbanks,  Alaska, testified                                                               
in opposition  of SJR  7. She said  greenhouse gas  and emissions                                                               
need to  be reduced. She  opined that the  1002 Area is  the last                                                               
five percent  of the North Slope  that has not been  explored and                                                               
the area  needs to  be left  alone. She  asserted that  the North                                                               
Slope coastal  communities are  negatively impacted  from climate                                                               
change as well as health impacts from oil and gas development.                                                                  
4:10:04 PM                                                                                                                    
LOIS  EPSTEIN,   Engineer  and   Arctic  Program   Director,  The                                                               
Wilderness  Society, Anchorage,  Alaska, testified  in opposition                                                               
of SJR 7. She offered reasons for opposing SJR 7 as follows:                                                                    
   1. BLM's Draft EIS does not include a reasonable range of                                                                    
     alternatives, all the alternatives  offer similar results in                                                               
     impacts and production.                                                                                                    
   2. Even though the 2017 Tax Act limits surface disturbance to                                                                
     2,000  acres, the  Draft  EIS  excludes substantial  acreage                                                               
     throughout the ANWR coastal plain  such as gravel mines, ice                                                               
     roads,  [inaudible], snow  fences,  raised structures,  etc.                                                               
     The  footprint of  production and  support  will be  greater                                                               
     than 2,000  acres. Additionally,  while well pad  sizes have                                                               
     been  reduced over  the years,  the rest  of the  industry's                                                               
    footprint and impact have remained relatively unchanged.                                                                    
   3. Although TAPS is currently operating at less than its peak                                                                
     flow, pipelines  always are designed  and operated  to carry                                                               
     less  than  peak  flow.  Oil   production  in  ANWR  is  not                                                               
     necessary  to ensure  TAPS remains  viable and  economic for                                                               
     decades  to  come.  DNR staff  expects  TAPS  throughput  to                                                               
     continue  increasing  through  the  late 2020s  due  to  new                                                               
   4. The job claims made by some are highly misleading. Unless                                                                 
     the people  who obtain  jobs would otherwise  be unemployed,                                                               
     the jobs resulting  from ANWR oil development  do not create                                                               
     new jobs. Most  of the oil and gas workers  in Alaska reside                                                               
     out of  state and thus their  wages are largely sent  out of                                                               
   5. Alaska's Arctic oil development has some real problems. One                                                               
     employee  died  this past  year,  there  have been  blowouts                                                               
     attributed to thawing permafrost  during the past two years,                                                               
     and  Alaska's [inaudible]  emissions  requirements are  well                                                               
     behind other states' standards.                                                                                            
   6. As information about the problems with potential seismic                                                                  
     operations  and  oil  drillings   in  ANWR  have  been  made                                                               
     increasingly available  to Alaskans, there has  been growing                                                               
     opposition,   non-native  and   native,   to  allowing   any                                                               
     industrial  activities on  ANWR's  coastal  plain. A  recent                                                               
     poll showed over 44 percent  of Alaskans opposed drilling in                                                               
   7. Alaska will have a "black eye" nationally and globally for                                                                
     unnecessarily  destroying  ANWR's  iconic  landscape.  There                                                               
     will be  permanent impacts that  will transform  ANWR's near                                                               
     pristine area.                                                                                                             
4:14:11 PM                                                                                                                    
SENATOR REINBOLD noted that Ms.  Epstein stated that the majority                                                               
of oil  workers are out  of state and  asked what her  source for                                                               
the labor data was. Senator  Reinbold said her research has shown                                                               
70 percent to 90 percent of oil workers are "Alaska hire."                                                                      
MS. EPSTEIN answered that her data  was derived from a 2016 Draft                                                               
EIS report that  stated on page 3-235, "64 percent  of wages were                                                               
spent out of state."                                                                                                            
4:15:26 PM                                                                                                                    
FRAN MAUER,  representing self,  Fairbanks, Alaska,  testified in                                                               
opposition of  SJR 7. He disclosed  that he has been  involved in                                                               
conservation  issues in  Alaska  for 48  years.  He reviewed  the                                                               
history of how ANWR was  established and opined that the American                                                               
people are  being unjustifiably  impacted by  the loss  of ANWR's                                                               
wild landscape  due to the  interest of  the State of  Alaska. He                                                               
said the state should work  towards renewable energy projects and                                                               
alternative  economic  programs  rather   than  focusing  on  the                                                               
economic benefits of oil.                                                                                                       
4:19:56 PM                                                                                                                    
SARAH MAUPIN,  member, Alaska Slope Regional  Corporation (ASRC),                                                               
Fairbanks,  Alaska,  testified  in   opposition  of  SJR  7.  She                                                               
addressed  a  study by  the  Alaska  Community Action  on  Toxins                                                               
(ACAT) on the negative effects  from oil drilling in the National                                                               
Petroleum Reserve in Alaska (NPRA).  She said billions in revenue                                                               
is derived  from oil production  but not  much of the  money goes                                                               
towards  regional  schools or  communities.  She  said many  ASRC                                                               
shareholders  have   spoken  against  further  drilling   due  to                                                               
concerns with  health qualities and  air qualities  implicated by                                                               
oil drilling. She  asserted that people are dying  because of the                                                               
drilling that is  happening, BLM has not  conducted a responsible                                                               
EIS, and she is in opposition of drilling in ANWR.                                                                              
4:26:06 PM                                                                                                                    
CRIS   EICHENLAUB,  representing   self,  Eagle   River,  Alaska,                                                               
testified  in support  of  SJR 7.  He said  Alaska  has the  best                                                               
regulations on  the planet  for regulating  resource development.                                                               
He opined that  developing the state's resources  for the maximum                                                               
value to the people is part of Alaska's constitution.                                                                           
4:28:35 PM                                                                                                                    
VIKKI JO  KENNEDY, representing  self, Kodiak,  Alaska, testified                                                               
in opposition of SJR  7. She said getting to ANWR  is going to be                                                               
the problem. She asked that the state leave ANWR alone.                                                                         
4:30:32 PM                                                                                                                    
PRINCESS LUCAJ,  representing self, Fairbanks,  Alaska, testified                                                               
in opposition of  SJR 7. She said the public  opinion on ANWR has                                                               
changed  considerably  since a  recent  Senate  online poll  that                                                               
showed that 44.5  percent of the respondents opposed  oil and gas                                                               
lease sales in ANWR.  She opined that it is not  true to say that                                                               
the majority  of Alaskans  are in  support of  oil and  gas lease                                                               
sales in  ANWR. She  said the state  is in a  lot of  trouble and                                                               
needs to go in a different and innovative direction.                                                                            
4:34:08 PM                                                                                                                    
MISTY  NICKOLI, representing  self, Fairbanks,  Alaska, testified                                                               
in opposition of  SJR 7. She opined that the  state is paying out                                                               
its  limited  funds  to  the  federal  government  and  corporate                                                               
interests  for  their benefit  to  develop  natural resources  in                                                               
ANWR. She  added that wildlife will  be impacted and the  cost to                                                               
human health is too great.                                                                                                      
4:36:44 PM                                                                                                                    
ROSEMARY  AHTUANGARUAK,   representing  self,   Nuiqsut,  Alaska,                                                               
testified in  opposition of SJR  7. She  said she had  hoped that                                                               
the vision of protecting an area  along the Arctic coast from oil                                                               
and gas development  would be a vision that was  maintained for a                                                               
traditional way of life. She said  tons of emissions from oil and                                                               
gas  development  on the  North  Slope  is impacting  people  and                                                               
4:41:13 PM                                                                                                                    
JOHN  SONIN, representing  self,  Douglas,  Alaska, testified  in                                                               
opposition of  SJR 7. He  opined that the  state is stuck  on the                                                               
dependence  of oil  production and  should find  alternatives for                                                               
economic and health reasons.                                                                                                    
4:44:12 PM                                                                                                                    
ANNA SORENSEN,  Director of Administration and  Finance, Northern                                                               
Alaska  Environmental  Center,  Fairbanks, Alaska,  testified  in                                                               
opposition of SJR  7. She said several myths  have been presented                                                               
by proponents  of SJR  7. ANWR's coastal  plain is  an ecological                                                               
link between  the Brooks  Range and  the Beaufort  Sea. President                                                               
Eisenhower  protected the  "coastal  plain" as  part  of the  8.9                                                               
million-acre ANWR for the purpose  of preserving unique wildlife,                                                               
wilderness and  recreation values. ANILCA in  1980 prohibited oil                                                               
and gas  development in Section  1003 where  development required                                                               
an act of Congress.                                                                                                             
She  summarized that  a recent  poll shows  that the  majority in                                                               
favor of oil  and gas development, 55 percent  versus 44 percent,                                                               
is a slim  majority and the two-thirds majority  noted in earlier                                                               
testimony  has been  shrinking consistently  over  time and  more                                                               
Alaskans are opposing drilling in ANWR.                                                                                         
4:48:17 PM                                                                                                                    
SENATOR KIEHL noted  that Ms. Sorensen had started  to comment on                                                               
the 2,000-acre disturbance  area and asked that  she complete her                                                               
MS. SORENSEN specified that previous  testimony had noted that no                                                               
more than  2,000 acres at any  given time would impact  ANWR, but                                                               
the  Northern  Alaska  Environmental  Center  believes  that  the                                                               
calculation was false  and would provide their  estimation to the                                                               
4:49:28 PM                                                                                                                    
CHAIR BIRCH closed public testimony.                                                                                            
CHAIR BIRCH  announced that his  intent is to  move SJR 7  out of                                                               
committee if it is the will of  the committee due to the March 13                                                               
deadline on receiving testimony for the EIS.                                                                                    
4:49:49 PM                                                                                                                    
SENATOR GIESSEL noted that SJR  7 represents the sixth resolution                                                               
that she has had the opportunity  to vote "yes" on. She disclosed                                                               
that she  had spoken at two  of the public scoping  meetings that                                                               
were  held by  the  Department  of Interior.  She  said her  only                                                               
criticism of  SJR 7 is  the resolution only speaks  about revenue                                                               
and  the  environment,  the  resolution does  not  speak  to  the                                                               
positive  impact on  Alaska's  people  that resource  development                                                               
She referenced an  article that was published in May  2018 in the                                                               
Journal of  American Medical Association (JAMA).  Research in the                                                               
JAMA article relates to life  expectancy and the change from 1980                                                               
to  2014, specifically  if people  were living  longer or  not in                                                               
counties  across  the  United  States.  She  disclosed  that  the                                                               
affiliations for the  researchers for the JAMA  article were from                                                               
the  Institute of  Health Metrics  and Evaluation,  University of                                                               
Washington-Seattle;   and  the   Department  of   Public  Health,                                                               
Rotterdam,   Netherlands.   She   pointed  out   that   the   two                                                               
organizations had  nothing to do  with oil. She referenced  a map                                                               
that exemplified  the results  from the  article that  showed the                                                               
North Slope,  Northwest Arctic Borough,  parts of  the Aleutians,                                                               
and Southeast had the highest  life expectancy increase, 8 to 13-                                                               
year increase in life expectancy from 1980 to 2014.                                                                             
She pointed  out that  during the  time from  1980 to  2014, TAPS                                                               
came on line where the North  Slope began to produce oil, and the                                                               
Red  Dog  Mine  near  Kotzebue began  producing.  The  two  noted                                                               
projects  created jobs  and the  jobs  brought increased  income,                                                               
access  to health  care, education,  and  additional assets.  The                                                               
research in the  JAMA article looked at  what factors contributed                                                               
to  the change  in life  expectancy  and in  fact those  criteria                                                               
accounted for  82 percent of  the impact causing the  increase in                                                               
life  expectancy. She  asserted  that the  JAMA  article is  very                                                               
concrete,  objective,  unsolicited  documentation  that  resource                                                               
development is good for Alaskan's health.                                                                                       
She  said she  shared the  concerns for  the environment,  noting                                                               
that  she  is  a  lifelong  Alaskan like  other  members  in  the                                                               
committee.   She  opined   that  the   greatest  threat   to  the                                                               
environment  is poverty  and  that is  what  the legislators  are                                                               
trying  to  overcome  in Alaska,  bringing  wealth  to  Alaskans,                                                               
bringing  access to  clean water,  health care,  education, jobs,                                                               
and income. She  set forth that she is going  to be quite pleased                                                               
to vote "yes" on SJR 7.                                                                                                         
4:53:26 PM                                                                                                                    
SENATOR KAWASAKI commented on "whereases"  in the resolution, the                                                               
first  one  on  page  3,   "Safe  and  responsible  oil  and  gas                                                               
exploration development  over the  past 50 years  without adverse                                                               
effects  on the  environment." He  said when  the Legislature  is                                                               
putting  out   definitive  policy,  he  questioned   whether  the                                                               
previous statement was true, maybe to a varying degree.                                                                         
He addressed  another "whereas" and noted  testimony from Nuiqsut                                                               
that questioned whether Iupiat   residents were supportive of the                                                               
development.  He  added   that  he  can  not   tell  whether  the                                                               
resolution endorses  a specific proposal moving  forward. He said                                                               
he is always  uncomfortable saying he supports  something that is                                                               
several hundred  pages and he  has not had  a chance to  read. He                                                               
asked if  the committee is  supporting a specific  alternative or                                                               
not. He pointed out that one  of the Draft EIS alternatives is no                                                               
action  and the  remaining alternatives  have varying  degrees of                                                               
MR.  FULTON specified  that there  were four  action alternatives                                                               
identified in  the Draft  EIS, one  of which  is the  "no action"                                                               
alternative, the  other three being continually  more restrictive                                                               
than the  previous. The  intent was not  to endorse  any specific                                                               
alternatives,  but   the  resolution   endorses  and   urges  the                                                               
Department  of Interior  to continue  with the  important process                                                               
regarding  ANWR. The  Draft  EIS  is the  first  step  in a  long                                                               
regulatory  process, an  important  step, and  the  intent is  to                                                               
encourage progress on the leasing  program in general rather than                                                               
one of the specific alternatives.                                                                                               
4:56:37 PM                                                                                                                    
He addressed Senator Kawasaki's  question regarding the "whereas"                                                               
pertaining to support from the  North Slope Borough residents and                                                               
referenced  a resolution  supporting  ANWR  development that  was                                                               
passed September 8,  2017 from the "Voice of  the Arctic Iupiat"                                                                
which consists of the following members:                                                                                        
   • Arctic Slope Native Association,                                                                                           
   • Arctic Slope Regional Corporation,                                                                                         
   • Atqasuk Corporation,                                                                                                       
   • City of Anaktuvuk Pass,                                                                                                    
   • City of Atqasuk,                                                                                                           
   • City of Utqiagvik (Barrow),                                                                                                
   • City of Point Hope,                                                                                                        
   • City of Wainwright,                                                                                                        
   • Ilisagvik College,                                                                                                         
   • Kaktovik Iupiat Corporation,                                                                                               
   • Native Village of Atqasuk,                                                                                                 
   • Native Village of Kaktovik,                                                                                                
   • Native Village of Point Hope,                                                                                              
   • Native Village of Point Lay,                                                                                               
   • North Slope Borough,                                                                                                       
   • Nunamiut Corporation,                                                                                                      
   • Olgoonik Corporation,                                                                                                      
   • Tikigaq Corporation,                                                                                                       
   • Ukpeagvik Iupiat,                                                                                                          
   • Wainwright Tribal Council.                                                                                                 
SENATOR  KIEHL noted  that  previous  ANWR resolutions  contained                                                               
language that is not contained in SJR 7 and detailed as follows:                                                                
   • Called for using some of the revenues for the development                                                                  
     of renewable and alternative energy resources in the state.                                                                
   • Called for exploration development and production activity                                                                 
     to be conducted in a manner that protects the environment                                                                  
    and the population levels of the Porcupine caribou herd.                                                                    
   • Called for the use of the state's workforce to the maximum                                                                 
     extent possible.                                                                                                           
He  asked if  there was  a particular  reason why  the previously                                                               
noted  language was  not present  in SJR  7 and  inquired if  the                                                               
resolution's sponsor would be amenable to adding the language.                                                                  
4:58:58 PM                                                                                                                    
MR.  FULTON  asked that  Senator  Kiehl  reiterate each  language                                                               
topic individually.                                                                                                             
SENATOR  KIEHL requested  he address  "alternative energy  in the                                                               
MR. FULTON answered  that language would be outside  the scope of                                                               
the  audience  that the  resolution  is  aimed towards.  Previous                                                               
resolutions  had  been  addressed  towards  Congress,  SJR  7  is                                                               
directed towards  the Department of Interior  regarding the Draft                                                               
SENATOR KIEHL  asked him to  address the "Porcupine  caribou herd                                                               
and using the state's workforce."                                                                                               
CHAIR  BIRCH replied  that his  office  will follow  up with  the                                                               
requested information.                                                                                                          
SENATOR  BISHOP commented  that he  respects everyone's  opinion,                                                               
pro and  con; however, the fact  remains that the state  does not                                                               
have a  federal treasury  and cannot  print money.  He emphasized                                                               
that  he wants  to see  the state  get to  renewables as  fast as                                                               
possible, but it  needs a cash stream  to be able to  pay for the                                                               
renewables  whether the  renewable  project is  the Susitna  Dam,                                                               
wind farm, LNG project, or a  propane project in rural Alaska. He                                                               
said  $0.64/kilowatt  hour  in   rural  Alaska  with  power  cost                                                               
equalization (PCE) is a lot of  money. He stated that he wants to                                                               
work with  his counterparts in  the Senate to lower  energy costs                                                               
across the state,  but revenue is needed to do  it. He added that                                                               
the seven  trillion cubic feet of  gas in the Point  Thomson area                                                               
is almost fuel-grade quality gas and  the quicker the gas can get                                                               
online the quicker  the state can lower its  carbon footprint. He                                                               
said he will support SJR 7.                                                                                                     
5:01:33 PM                                                                                                                    
SENATOR COGHILL moved to report  SJR 7, [work order 31-LS0544\M],                                                               
from committee with individual  recommendations and attached zero                                                               
fiscal note.                                                                                                                    
5:01:41 PM                                                                                                                    
CHAIR BIRCH said there being no objection, the motion carried.                                                                  
5:01:48 PM                                                                                                                    
At ease.                                                                                                                        
5:03:34 PM                                                                                                                    
CHAIR BIRCH called the committee back to order.                                                                                 
5:03:58 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair  Birch adjourned  the Senate  Resources Standing  Committee                                                               
meeting at 5:03 p.m.                                                                                                            

Document Name Date/Time Subjects
SJR7 Sponsor Statement.pdf SRES 2/25/2019 3:30:00 PM
SJR7 Endorsing ANWR Leasing.PDF SRES 2/25/2019 3:30:00 PM
SJR7 Fiscal Note.pdf SRES 2/25/2019 3:30:00 PM
SJR7 BLM ANWR Coastal Plain Oil & Gas Leasing Program DEIS Executive Summary.pdf SRES 2/25/2019 3:30:00 PM
SJR7 USGS ANWR & 1002 Area Map.pdf SRES 2/25/2019 3:30:00 PM
SJR7 Alaska Chamber Letter 2.22.19.pdf SRES 2/25/2019 3:30:00 PM
SJR7 Alliance Email 2.25.19.pdf SRES 2/25/2019 3:30:00 PM
SJR7 Flowline Alaska Email 2.25.19.pdf SRES 2/25/2019 3:30:00 PM
SJR7 Cathy Duxbury Email 2.25.19.pdf SRES 2/25/2019 3:30:00 PM
SJR7 Laura Buchheit Email 2.25.19.pdf SRES 2/25/2019 3:30:00 PM
SJR7 RDC Letter 2.22.19.pdf SRES 2/25/2019 3:30:00 PM
SJR7 Udlehoven Email 2.25.19.pdf SRES 2/25/2019 3:30:00 PM
SJR7 DEIS Surface Development Definition.pdf SRES 2/25/2019 3:30:00 PM
SJR7 DEIS Table 3-37 Government Revenues.pdf SRES 2/25/2019 3:30:00 PM
SJR7 ANWR Votes in AK LEG 1997-2017.pdf SRES 2/25/2019 3:30:00 PM
SJR7 VOICE of the Arctic Inupiat ANWR Resolution 9.8.17.pdf SRES 2/25/2019 3:30:00 PM
SJR7 Alexandra Caccavo Email 2.25.19.pdf SRES 2/25/2019 3:30:00 PM
SJR7 Lois Epstein Corrected Testimony 2.26.19.pdf SRES 2/25/2019 3:30:00 PM
SJR7 Lois Epstein Email 2.26.19.pdf SRES 2/25/2019 3:30:00 PM