In 1980, when Congress established the Arctic National Wildlife Refuge, the coastal plain – 1002 area – was reserved for the potential development of its oil and gas resources. The U.S. Geological Survey estimates the 1002 area may have from four to 16 billion barrels of oil. The broad range in this estimate reflects great uncertainty due to the lack of exploration data to make a more accurate assessment.
The name “1002” comes from Section 1002 of the 1980 Alaska National Interest Lands Conservation Act (ANILCA). Congress explicitly directed further non-invasive exploration in the area:
“..to authorize exploratory activity within the coastal plain in a manner that avoids significant adverse effects on the fish and wildlife and other resources.”
The 1002 area was excluded from the refuge’s vast Wilderness designation in a compromise struck under ANILCA. In exchange, Congress doubled the size of the refuge and designated eight million acres outside the 1002 area as Wilderness. In recognizing the 1002 area’s enormous oil and gas potential, Congress mandated a study of its petroleum resources, as well as its wildlife and environmental values. In 1987, the Department of the Interior concluded oil development would have minimal impact on wildlife and recommended the 1002 area be opened. In 1995, Congress voted to open the area to exploration, but President Clinton vetoed the measure.
In what seems like a total disconnect with this prior congressional direction, the U.S. Fish and Wildlife Service (USFWS) has refused to even consider any type of oil and gas exploration and development in the range of alternatives in its Draft Comprehensive Conservation Plan (CCP). While the agency cites the need for congressional authorization to conduct exploration as its excuse why no exploration is even contemplated in the CCP range of alternatives, the agency is willing to consider Wilderness proposals that also require an Act of Congress. This inconsistent reasoning is wrong and would violate federal requirements that a full range of alternatives be considered.
In May, Governor Parnell, with support from North Slope Borough Mayor Charlotte Brower and Arctic Slope Regional Corporation President and Chief Executive Officer Rex Rock, made a compelling proposal to Secretary of Interior Sally Jewell for the State of Alaska to put forward $50 million to help cover the cost of modern 3-D seismic surveys. These are non-intrusive high-tech surveys that can greatly improve what is known about the oil and gas resource potential in the 1002 area. 3-D seismic could bring needed information to the table without adverse impacts to fish and wildlife.
You would expect the administration to embrace the notion of improved understanding of America’s most promising onshore oil and gas basin. After all, Americans deserve to know the value of the oil and gas resources beneath the coastal plain.
The 1002 area represents only eight percent of the refuge, yet it has the potential to displace much of our oil imports from the Middle East, create tens of thousands of jobs across America, and generate billions of dollars in lease payments and long-term tax revenues to the federal treasury. Moreover, the 1002 Area has the potential to refill the Trans-Alaska Pipeline System, existing infrastructure that is currently operating at only one-fourth of its original capacity.
In late June, Secretary Jewell rejected the State’s generous offer to partner in better understanding of this critical and strategic resource. In spite of the Secretary’s rebuff, Alaska DNR Commissioner Dan Sullivan in July submitted a detailed and comprehensive 240-page plan for Seismic Exploration in the 1002 area in accordance with ANILCA 1002(e). The Secretary is required by law to conduct hearings on this plan in Alaska and to approve the plan within 120 days if it meets all the statutory and regulatory requirements for a 1002 area exploration plan. The exploration plan and accompanying special permit application builds upon the detailed proposal the State submitted in May. The plan will take advantage of current technology, which will have significantly less environmental impacts than the exploration activities approved and conducted in the 1002 Area during the 1980s. Sullivan said ANILCA does not contain a sunset provision and therefore an exploration plan is still on the books.
Alaskans statewide strongly support exploration and development in the 1002 area. Polling has consistently shown that more than 70 percent support development of energy resources beneath the 1002 area. In addition, the Alaska Federation of Natives, the North Slope Borough, and the Arctic Slope Regional Corporation support development. Local residents and the Inupiat people who actually live adjacent to the 1002 area also support development. This support should be given considerable weight and convince the USFWS to at least move forward with a 3-D seismic survey to better quantify what may exist beneath the 1002 Area.
The Secretary of Interior should embrace better resource information to make a more balanced and informed decision for this national asset. We should expect public policy decisions affecting billions of dollars in economic activity, tens of thousands of jobs, and billions in government revenue be based on the latest and best information available.
Governor Parnell’s proposal to partner with the federal government on an advanced seismic survey is generous and should not be dismissed.
Thank you, Governor Parnell, for your leadership on this critical issue.
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