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.