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Vol. 23, No.17 Week of April 29, 2018
Providing coverage of Alaska and northern Canada's oil and gas industry

EIS scoping begins :

BLM seeks comments on environmental issues relating to ANWR oil and gas

Alan Bailey

Petroleum News

On April 20 the federal Bureau of Land Management published a notice in the Federal Register, announcing the start of a 60-day public scoping period for the preparation of an environmental impact statement for oil and gas activities on the coastal plain of the Arctic National Wildlife Refuge. The action results from a provision within the Tax Cuts and Jobs Act of 2017, requiring the Department of the Interior to conduct oil and gas lease sales for the coastal plain.

“Developing our resources on the coastal plain is an important facet for meeting our nation’s energy demands and achieving energy dominance,” said Joe Balash, assistant secretary for land and minerals management in the Department of the Interior. “This scoping process begins the first step in developing a responsible path forward. I look forward to personally visiting the communities most affected by this process and hearing their concerns.”

BLM requires comments on the scope of the EIS and on issues that the EIS should address by June 19.

Two lease sales

The tax statute requires at least two areawide lease sales in the ANWR coastal plain 1002 area by December 2024. However, the EIS may also inform post-lease activities, including seismic surveying, drilling, exploration, development, and the transportation of oil and gas, the Federal Register notice says. The EIS will consider the environmental impacts of various leasing alternatives, including areas to be offered and the stipulations that would be specified for lease operations. BLM will also consider potential impacts on subsistence resources and users. The tax statute says that the surface footprint of any production and support infrastructure within the 1.6 million-acre 1002 area must be limited to 2,000 acres.

Following publication of the EIS, BLM would conduct additional environmental analysis for specific activities such as seismic surveying and the filing of exploration plans, the Federal Register notice says.

Divergent opinions

Predictably, the announcement has prompted widely divergent opinions.

“Alaskans have long supported leasing and responsible development in the coastal plain, which was set aside for oil and gas development,” said Kara Moriarty, president and CEO of the Alaska Oil and Gas Association. “We are encouraged that the Department of Interior wants to hear from Alaskans across the state about this important issue. AOGA looks forward to participating in this public process.”

“The Department of the Interior is pursuing an irresponsibly aggressive timeline for Arctic Refuge drilling that reflects the Trump administration’s eagerness to turn over America’s public lands to private industry for development,” said Jamie Williams, president of the Wilderness Society. “They are taking reckless shortcuts that are a terrible violation of public trust … the Wilderness Society remains opposed to opening the Arctic Refuge coastal plain to drilling.”

Support from lawmakers

The Alaska Congressional delegation expressed its support for the BLM action.

“We welcome this scoping announcement and the department’s continued work to implement our legislation opening the coastal plain to responsible energy development,” the delegation said. “We appreciate the department following the law, planning multiple public meetings with Alaskans, and moving forward on this important program to help ensure the energy and economic security of our nation.”

Alaska Gov. Bill Walker agrees.

“Opening the 1002 Area of the Arctic National Wildlife Refuge to oil leasing is a historic opportunity for Alaska,” Walker said. “This is an important priority for my administration given the potential for significant new revenues from lease sales and production. The State of Alaska will work with the U.S. Department of Interior to support their efforts to prepare for these lease sales and ensure that local input is taken into consideration. Alaska has a long history of safe development on the North Slope, and new technology is making the footprint of development even smaller.”

BLM lead agency

Although the U.S. Fish and Wildlife Service manages ANWR, the tax statute says that oil and gas leasing in the ANWR 1002 area will be conducted under the regulations that apply to oil and gas leasing in the National Petroleum Reserve-Alaska. Presumably because BLM manages the NPR-A, BLM is the lead agency for the ANWR lease sale program.

Fish and Wildlife maintains a conservation plan for ANWR, including the 1002 area, that spells out what activities can be carried out in the refuge and stipulates environmental protection measures required for those activities. The current conservation plan does not consider oil and gas activities because these activities were illegal anywhere in ANWR at the time the plan was published. The plan says that Congress has reserved the authority to make final decisions on whether to allow oil and gas development in the refuge. That authority comes from the Alaska National Interest Lands Conservation Act, which set aside the 1002 area for possible future oil and gas development, subject to Congressional approval. In last year’s tax act, Congress granted that approval.



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