Oil & Gas
 
  Outer Continental Shelf Testimony April 14, 2009

Jeff Foley on Behalf of Matthew Nicolai, Calista Corporation

Calista Corporation is one of 13 Regional Native Corporations created following passage of the Alaska Native Claims Settlement Act (ANCSA) in December, 1971.  Calista represents 13 thousand shareholders of predominately Yupik lineage and a proud contingent of Cupik and Athabascan heritage.  Villages in the Calista region are located throughout the Yukon-Kuskokwim Delta Region and along the Bering Sea coast of western Alaska.

Life in the region has transitioned from an exclusively subsistence lifestyle to a reliance upon modern technology and goods with strong, proud ties to the traditional cultural values  of self sufficiency and community welfare.  Those seeking higher education have to leave the region and, because of lack of career opportunities within the region, are challenged to bring the benefits of modern society back to the villages.

Owing to a lack of surface based infrastructure in the region, transportation relies on natural waterways, aviation and snow machine travel in the winter.  Electrical energy and fuel costs are 3 to 5 times what they are in the rest of Alaska and the Lower 48 States and unemployment is extremely high.  Wind power generation is a good fit for some of the villages, but they will remain dependent on petroleum-based fuels for the foreseeable future. With the exception of a mostly collapsed commercial salmon fishing industry, there is little to no economic development.

Thirty five years ago, shortly after the ANCSA Native corporations were formed, there was local resistance to petroleum exploration and development in the near shore and onshore environments at the mouth of the Yukon River.  Since then, Native Corporations have evolved and matured. Their shareholders and descendants have assumed contributing and leading roles in government and industry across Alaska, around the country and internationally.  Meanwhile, the petroleum industry has effectively demonstrated that it can perform safely in arctic and subarctic Alaska and in the offshore environment around the world.  The regulatory and scientific communities have risen to the challenge of responsibly overseeing offshore oil and gas development with the primary goal of ensuring protection of vital wildlife and water resources.

Today, parents, children, Native corporation shareholders and leaders in the Calista Region desire opportunity to participate in the global economy while preserving their cultural identity.  Responsible development of petroleum resources in the outer continental shelf off Alaska, as proposed in the Draft Proposed 5-Year Program for 2010-2015 and offshore leasing by MMS in the OCS, will provide that opportunity.