Governor Parnell Says (NGP Photo-l) Senator Begich’s Plan Is Unnecessary and We Say It Is Economic Suicide!

See Our Editorial From A Year Ago…And Return For Our New Editorial On Monday

See Governor Parnell’s OpEd Piece From This Morning’s Washington Post

Scroll Down For Full Op-EdMark Begich

Anchorage Federal Court Clarified that OCS Seismic Tests O.K.

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Senator Begich (NGP Photo-r) Urges NOAA and BOEM to Quit Delaying Arctic OCS Permits

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ADN by Sean Cockerham.  Primary voters will choose between Ethan Berkowitz (NGP Photo-R) and state Sen. Hollis French (NGP Photo) in less than three weeks for the Democratic nomination for governor. Much of the race for French is about defending Alaska’s oil tax, as Berkowitz is proposing to replace it with a system in which a state commission negotiates with the companies on royalties for each field. Berkowitz says his larger aim is to create a system in which Alaska’s oil revenue is put in savings so legislators will stop wasting it.   …   Berkowitz: "Until you have the structure in place that inhibits the ability of the Legislature and the governor to spend money, they’re going to spend the money. Because people who are elected have a different currency than people who operate in business. And the currency in politics is votes. And you get votes by buying projects.   …   French: "The big picture remains the gas pipeline … AGIA is getting us there, I was proud to be a part of the debate, proud to be a part of the process and when we voted on AGIA on the floor, I said this: ‘We are, to a large degree, in the oil and gas business as the state. And we are making an investment today, a big one in what amounts to a well we’re drilling. We may hit dust, but we may hit a gas pipeline.’ And if we hit a gas pipeline it’s going to return a fair economic value to you, and you and you. And moreover, not only to you in this room but all around this state, to Ketchikan, to Kodiak, to Kotzebue, they get a fair share of that resource, they get a fair share of that wealth … You’ve got to pay attention to the economic terms."


On thin ice
Habitat designation won’t help polar bears but will kill Alaska’s jobs
by Sean Parnell (NGP Photo above, 8-4-10)
Submitted to Washington Post

Imagine a federal agency listing a species as threatened under the Endangered Species Act even though that species is stable and shows no evidence of decline.

Now imagine that agency setting aside an area larger than the state of California as "designated critical habitat" for that species, and subjecting all activity in that region to federal review, skyrocketing costs, endless delays and certain litigation, despite the agency itself admitting that the critical-habitat designation will do nothing to benefit the species.

Unfortunately, this isn’t a hypothetical situation. This is exactly what is occurring in Alaska as the federal government strives to appease environmental advocacy groups.

At a time when our nation must look to its own energy resources, rather than remain so heavily reliant on foreign oil, the Interior Department’s proposal to designate nearly half of Alaska’s oil-producing area as critical habitat for the polar bear is a chilling prospect.

But it’s not chilling in a way that would help the polar bear. The Obama administration’s proposal to set aside the entire northern sector of Alaska would not have any impact on the predicted loss of Arctic sea ice, the justification Interior gave for listing the polar bear as threatened despite its currently stable population.

The only chilling effect would be to Alaska’s economy and to the nation’s efforts to be energy-independent, an issue critical to our national security.

The area proposed for designation as critical habitat is remote, but these 187,166 square miles are also home to many Alaskans who would be severely affected by the designation.

Whether it’s hunting for food, building a sea wall to protect a village from ocean erosion or constructing a septic system to replace unsanitary sewage lagoons, all manner of activity in an area designated as critical habitat gets caught in the regulatory machine of the federal bureaucracy.

Such a designation would also hobble the ability of Alaska Native Corporations to develop or use lands they were given through the Alaska Native Claims Settlement Act .

The bottom line is that once a species is listed as threatened, any and every action that could potentially affect that species or its habitat could be shut down or delayed.

While Alaska is working to improve the well-being of people in its rural areas, designating these areas as critical habitat signals a very serious turn for the worse for villages struggling to survive and cope with a rapidly changing world.

The Interior Department has said that the costs to our state for consultations associated with the designation will be less than $60,000 annually, or $700,000 over the course of 15 years. However, these federal estimates severely understate the economic effects of the delays in oil and gas development that the designation would create. The costs associated with just one capital project, such as sea wall construction, could far exceed these projections. The state of Alaska and the Arctic Slope Regional Corp., a native corporation, commissioned an economic impact study by a third party; it found economic effects in the hundreds of millions, possibly billions, of dollars.

Perhaps most perplexing, the Interior Department has acknowledged that this critical-habitat designation will not result in significant added conservation benefits for polar bears . In addition, much of the area proposed as critical habitat is not land at all, but sea ice. This ice by nature shifts and melts, and it is likely that much of the area designated as critical habitat will soon be open water, miles away from the nearest polar bear, but still squarely on top of some of America’s richest shallow-water oil and gas deposits.

The federal government will have protected open waters for bears that have roamed to new areas. Creating a boundary on critical habitat for polar bears is truly trying to hit a moving target.

Americans need to understand how we arrived at the point where the Interior Department can potentially shut down access to an entire state’s resources, while admitting that the move will not protect the species in question.

Years ago, environmental advocacy groups picked one species — the polar bear — to be the poster child for global warming, and these groups have waged a relentless publicity campaign ever since. Alaskans recognize the lock-up effort for what it is: a job-killer and damper on our nation’s energy security.

The federal government’s efforts to lock up one state’s resources should concern all Americans. Since 1970, restrictions on harvest have allowed Alaska’s polar bear population to rebuild and remain healthy. The increase happened during the most intensive period of oil and gas development in Alaska’s history, and as billions of barrels of oil were shipped to other states to fuel the nation’s economy.

Alaska worked hard to rebuild the polar bear population, and for the past several years the polar bear numbers here have remained stable, with no statistically significant declines or increases.

Politics should give way to science, and our federal government should be working with states to create private-sector jobs, not destroying an opportunity for economic growth.


Governor’s Office Release: The State of Alaska succeeded Thursday in helping to ensure that a federal court injunction won’t stand in the way of permitted seismic testing for oil and gas in the Chukchi Sea lease areas.
 
The Anchorage federal court agreed that its injunction doesn’t prevent seismic testing unrelated to defects the court found in an environmental impact statement prepared by the federal government.
 
“The State of Alaska continues to advocate for responsible off-shore development, so that we can generate and retain jobs in the current harsh economic climate,” said Governor Sean Parnell. “The court’s clarification yesterday averts the loss of important jobs in Alaska’s energy sector.” 
 
On July 21, the U.S. District Court in Anchorage issued an injunction against all activities under certain 2008 oil and gas lease sales in the Chukchi, pending additional analysis by the Bureau of Ocean Energy Management, Regulation, and Enforcement. On July 27, Shell, a lessee, moved for reconsideration or clarification of the injunction, arguing that the injunction was overly broad in that it barred even non-drilling activity, such as seismic testing. The state, which had intervened in the case, filed a brief in support of that motion on July 30. 
 
On Monday, the court clarified that the injunction was not intended to include permitted activities, such as seismic testing by Shell. Despite this clarification, federal agencies that issue permits for seismic and other testing remained uncertain as to whether activities by other companies could proceed.
 
After the state filed a brief Wednesday stating its belief that the injunction did not apply to other companies, the court clarified that its injunction was intended to be narrow and did not apply to any seismic testing in the area, including work proposed by Statoil USA E&P Inc., whose summer seismic testing plans were threatened due to the uncertainty over the scope of the court’s ruling.
 
Meanwhile, the state has moved for reconsideration to have the injunction lifted entirely. The judge has yet to rule on that motion.

 
U.S. Sen. Mark Begich has urged two federal agencies to quickly approve permits for oil and gas development work in the Beaufort and Chukchi Seas following a federal judge’s order that cleared the way for such work.
 
Begich Thursday spoke to separately to both National Oceanic and Atmospheric Administration Administrator Jane Lubchenco and Bureau of Ocean Energy Management Director Michael Bromwich, urging them to act quickly if the court ruling was favorable for Arctic oil development work. Both committed to working expeditiously to issue the necessary permits.
 
“The affected oil companies were are on the verge of having to pull the plug on development work in Alaska’s Arctic waters, so I’m pleased these two federal agencies have committed to working quickly and responsibly,” Begich said. “Hopefully the seismic work will indicate significant reserves of recoverable oil and gas which can be responsibly developed and create jobs for Alaskans.”
 
At issue are plans by Shell and Statoil to undertake seismic testing and survey work in the Beaufort and Chukchi Seas this summer, which if successful could lead to oil and gas development in the region. However, the companies’ plans were interrupted by a recent ruling by U.S. District Judge Ralph Beistline prohibiting Chukchi development because of sloppy work by the federal Minerals Management Service under the Bush administration.
 
Both Stat Oil and Shell had vessels waiting at Dutch Harbor to conduct the preliminary work immediately, but worried federal agencies wouldn’t issue permits quickly enough. Judge Beistline refined his earlier ruling Monday for Shell and Thursday for Statoil. In Statoil’s case he said it is “not construed to prevent scientific studies which have already been approved or are pending approval by BOEM (formerly MMS), to include activities under the approved work plan that were fully examined in the Agency’s EIS and are unrelated to the defects identified by the Court.”
 
As of Friday morning, Shell expected an Incidental Harassment Authorization from NOAA so it could proceed with its work immediately.