Mining News: Mineral, oil and law experts lead DNR

Parnell calls on attorney general to lead natural resources department, calls on Fogels, Balash to bring energy, mining experience

Shane Lasley

Mining News

Since being elected to his first full term as Alaska’s governor in November, Gov. Sean Parnell has delivered tough words to groups he sees as attempting to block the development of the state’s resources.

“We are under an unprecedented assault by federal agencies and environmental groups to lock up Alaska’s resources,” Parnell said during a Nov. 18 presentation to the Resource Development Council’s annual conference in Anchorage. “This is our immediate reality – yours and mine, and every Alaskan’s. But it won’t be our future. We’re fighting back aggressively – and our strategy is gaining ground. Yes, we have filed a lot of lawsuits. And I don’t apologize for any of them.”

During his Dec. 6 inaugural speech, the governor reiterated his commitment to stand up for the state’s right to develop its vast wealth of resources.

“Our very future as a state is at stake. If we give up our right to responsibly develop our resources without a fight, we surrender state sovereignty and economic potential. We must develop our resources... And we will,” he avowed.

To deliver on his pledge, Parnell appointed state Attorney General Dan Sullivan as commissioner of the Alaska Department of Natural Resources.

Accepting the post, Sullivan said, “Our mineral, oil, natural gas and renewable energy resources are the envy not only of other states, but of entire countries. I look forward to working to further create opportunities to develop these world-class resources for the benefit of Alaska, Alaskans and our economic future.”

As Alaska’s top lawyer, Sullivan led the state Department of Law in several battles with federal agencies and environmental groups overstepping their legal bounds in an effort to delay or stop resource development in Alaska.

“I’ve already worked with many members of the department, and I know from experience that they are vastly knowledgeable, smart and hard-working. I’m looking forward to building on the excellent work that has already been accomplished by Tom Irwin and Marty Rutherford.”

Irwin was Sullivan’s predecessor in DNR’s top job and Rutherford served as the department’s deputy commissioner.

In December Parnell rounded out DNR’s top positions by naming Ed Fogels and Joe Balash as the department’s deputy commissioners.

Fogels, who has worked at DNR for 24 years, previously served as acting deputy commissioner of the agency and as mining coordinator responsible for the permitting and administration of all large mining projects in Alaska. His most recent role was director of the Office of Project Management and Permitting

Balash was Parnell’s assistant on energy and natural resource development issues, coordinating policy among the governor’s office and the departments of natural resources and environmental conservation, and the Alaska Energy Authority. Balash also was a member of Parnell’s gas-line team.

“Ed and Joe have decades of experience working on critical Alaska resource development issues,” Sullivan said. “I look forward to working with them and the other outstanding professionals at DNR on the numerous resource development challenges and opportunities facing the state.”

DNR defends Pebble exploration permits

Trustees for Alaska, an Anchorage-based environmental law firm, claims that the miscellaneous land use permits and temporary water use permits DNR issued to Pebble explorers are illegal because the state regulators did not seek adequate public notice and analysis of whether the permits are in the public’s interest.

Trustees – which filed the lawsuit on behalf of Nunamta Aulukestai, Jack Hobson, and former Alaska First Lady Bella Hammond, among others – further allege the permits issued for Pebble exploration are causing harm to the people of the region.

“The State has issued permits behind closed doors without even looking at the harms to public resources. At last those harms will be addressed in court,” said Trustees for Alaska Attorney Nancy Wainwright.

DNR argues, due to their temporary nature, the land and water use permits issued for exploration drilling at Pebble do not require a public review.

The Pebble Partnership has joined DNR in arguing its case. Alaska Miners Association and Council of Alaska Producers are participating as amicus curiae, or friend of the court.

Industry leaders worry that, though this case is focused on Pebble, the repercussions would be felt across all sectors of the state.

“This is a big deal. It is not just focused on Pebble. When you are throwing in temporary water use permits, you are talking fish processing, the Alaska natural gas pipeline, mining projects and tourism operators. These permits are used all around the state,” Resources Development Council Executive Director Jason Brune told Mining News.

Eric Aarseth, the Anchorage Superior Court judge presiding over the case said, “The most basic question in this case is whether the State was required to balance various constitutional interests when considering whether to issue the permits and do so in a transparent way.”

The trial, scheduled to run through Dec. 17, is expected to last longer due to the mountains of evidence involved in the case.