Oppose Western Arctic Energy Bill Provisions

Demand Responsible Energy Development
Oppose Western Arctic Energy Bill Provisions

The Senate Energy and Natural Resource Committee bill Title III provisions are unnecessary to assure development of domestic oil and gas resources in the National Petroleum Reserve-Alaska (Reserve). This bill seeks to give free reign to the oil industry in the Reserve without designating protected areas for wildlife and subsistence users as planned by Congress in the 1976 National Petroleum Reserve Production Act.

The bill maximizes the ability of the lessees to hold on to leases without actually producing oil and gas. In a time of high gas prices amid declining supplies, it is beyond reason as to why oil companies should have such an iron grip on publicly-owned oil and gas resources. When drilling proponents claim that new technology justifies drilling in sensitive areas, it is also beyond reason as to why oil companies should have the ability to freeze in place environmental terms that might apply to their actions for decades to come.

These and other provisions will not secure America’s energy future. They will only secure the profits of America’s wealthiest industry sector – the oil and gas industry, and should be opposed.

Provisions of Title III specific to the National Petroleum Reserve-Alaska:

Expands the reach of the Secretary of Interior’s authority to permit oil and gas development without regard for wildlife habitat, native hunting and fishing, water quality or other non-commercial values.

The Committee bill recodifies 1980 rider language to ensure permanent authorization for an indiscriminate leasing and development program. The 1980 rider authorizes the Secretary to issue oil and gas leases without first complying with standard BLM land use planning requirements under FLPMA and limits judicial review of NEPA compliance. (Section 317, p.22)

Allows the Secretary of Interior to literally give away public resources to private companies by waiving all fees and royalties.

The Committee bill changes the standard the Secretary must use to determine whether rents or royalties should be waived or suspended. The new language allows relief when “the Secretary determines that the waiver, suspension, or reduction is necessary to promote development.” The bill does not further define this standard. (Section 317, p.28)

Grants new authority to the Secretary of Interior to renew leases indefinitely.

The Committee bill maximizes the ability of the lessees to hold on to leases without actually producing oil and gas. “No leases covering lands capable of producing oil and gas in paying quantities shall expire because the lessee fails to produce” (Section 317, p.24). The Secretary “shall” renew leases without discoveries for an additional ten-year period even if the lease does not meet the original requirements. (Section 317, p.25)

Paves the way for weaker environmental protection for lands where subsurface estate is conveyed to the Arctic Slope Regional Corporation.

The Committee bill removes the Secretary’s discretion under current law, ANCSA § 14(g), and requires the Secretary to waive administration of any lease that encompasses conveyed estate. Thus, the Regional Corporation rather than the federal government would administer the lease. The bill does not clarify whether or not the Regional Corporation must apply the federal government’s stipulations or whether the Regional Corporation may modify or waive stipulations (Section 317, p.)

Establishes a North Slope Science Initiative (NSSI)

Although the core concept of coordinating and setting priorities for North Slope research and monitoring activities is good, there are a number of unanswered questions and concerns. The NSSI is to set research priorities, but what drives those priorities? Research needed to facilitate oil and gas development fails to describe any level of involvement by other stakeholders in the actual work of the NSSI, including tribal and subsistence organizations or the general public. The provision also does not address the application of FACA to the process. The provision fails to make clear that coordinating functions of the NSSI do not provide authority to usurp a given agency's management and monitoring obligations under other statutes with respect to the lands it manages or other responsibilities (Section 318, p. 32).

Alaska’s North Slope is our nation’s only arctic ecosystem. A balanced approach to energy policy and conservation in America’s Arctic would give wilderness protection to the coastal plain of the Arctic National Wildlife Refuge and permanent protection for the most biologically and culturally important areas of NPRA and the Arctic Ocean while maximizing oil and gas potential in the central arctic around Prudhoe Bay and elsewhere in the Petroleum Reserve. In all cases, wherever exploration and development proceed, these activities must be carried out under strict environmental standards, including those related to operations, cleanup and restoration.

For More Information Contact:
Eleanor Huffines, The Wilderness Society 907-272-9453
Deirdre McDonnell, Earthjustice 907-586-2751