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Vol. 29, No.17 Week of April 28, 2024
Providing coverage of Alaska and northern Canada's oil and gas industry

New NPR-A regulations

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Rules will limit possible oil and gas development to around half of the reserve

Alan Bailey

for Petroleum News

The federal Bureau of Land Management has published a final version of its revised regulations for the management of the 23-million-acre National Petroleum Reserve-Alaska in the northwestern sector of the state. In particular, by establishing new regulations that apply to five special areas that are subject to stringent environmental protections, the new regulations will likely, in effect, limit possible oil and gas development to around half of the reserve's total acreage. The regulations also set rules for the protection of subsistence resources and activities in the reserve.

''Alaska's majestic and rugged lands and waters are among the most remarkable and healthy landscapes in the world, sustaining a vibrant subsistence economy for Alaska Native communities,'' said President Joe Biden on April 19 in response to the publication of the regulations. ''These natural wonders demand our protection. I am proud that my administration is taking action to conserve more than 13 million acres in the western Arctic and to honor the culture, history, and enduring wisdom of Alaska Natives who have lived on and stewarded these lands since time immemorial.''

Vehement objections

But, given the high level of dependence of the Alaska economy on the oil industry, Alaska lawmakers have expressed vehement objections to the new regulations.

"The Biden administration may be focused on short-term political gains, but at the expense of Alaska's long-term future, limiting jobs for Alaskans, revenues for our state, and the future energy and mineral security of our nation," said U.S. Sen. Lisa Murkowski. "Once again, the president and his team are making unjustifiable decisions that hurt us while allowing some of the worst regimes in the world -- in nations like Iran and Russia -- to stay in power, enrich themselves from resource production, and then use those revenues to finance terror and war. At this point, the Biden administration is undermining the rule of law, ignoring the voices of Alaska Natives, and punishing Alaska despite our strong environmental record."

"The Biden administration sanctions Alaskans, while terrorists in Iran and communists in China get off scot-free and are strengthened. It's no wonder, with such anti-American policies, that authoritarian regimes in Russia, China and Iran are on the march," said U.S. Sen. Dan Sullivan. "The Biden administration is deliberately undertaking policies to punish Americans and undermine our strengths while continuing to help our adversaries."

The economies of North Slope communities are also highly dependent on the industry.

"The federal government has once again chosen to overlook the legitimate concerns of elected indigenous leaders from Alaska's North Slope," said Nagruk Harcharek, president of the Voice of Arctic Inupiat. "This is a continuation of the onslaught of being blindsided by the federal government about unilateral decisions affecting our homelands ... economic development projects, which have taken place with the engagement and inclusion of the North Slope Inupiat for over 50 years, are essential to the survival of our communities and culture."

Support from environmental organizations

Environmental organizations, on the other hand, strongly support the new regulations.

"The Biden administration's actions for America's Arctic show a commitment to conservation that meets the needs of the region's outsized vastness and ecological value," said Kristen Miller, executive director at Alaska Wilderness League. "Our nation's public lands are an essential part of addressing the climate and biodiversity crisis, and this decision could not come at a more critical time. Under this rule, the western Arctic's special areas will start to receive the protections they deserve for the sake of local communities, the region's biodiversity, and our global climate."

Governed under the NPRPA

Congress assigned BLM oversight of the NPR-A under the National Petroleum Reserves Production Act, passed in 1976. BLM maintains regulations that spell out how it manages the NPR-A under the terms of the NPRPA. And the NPRPA specified three overarching mandates for managing the reserve: the conducting of an oil and gas leasing, exploration and development program; the protection from the impacts of that program of environmental, historic and scenic resources; and the assurance of maximum protection of surface values within highly sensitive areas of the reserve, referred to as "special areas."

The regulations have included three special areas: Teshekpuk Lake, the Utukok River Uplands and the Colville River Special Area. In 1999 BLM expanded the Teshekpuk Lake and Colville River Special Areas.

BLM maintains an integrated activity plan for NPR-A. The IAP specifies what areas within the reserve are available for oil and gas leasing, as well as rules for where oil and gas infrastructure can be located. The IAP now includes special areas that are not specified in the regulations: In 2004 the department designated a fourth special area, the Kasegaluk Lagoon Special Area, and in 2013 added a fifth special area, the Peard Bay Special Area. In 2013 the agency also expanded the Teshekpuk Lake Special Area by a further 2 million acres while also expanding the Utukok Uplands Special Area.

Two special areas move into regs from the IAP

A core change in the newly issued regulations involves incorporating the two additional special areas into the regulations, rather than having them just in the IAP. And, under the new regulations, the maintenance of an IAP is now mandatory. In addition BLM has added to the regulations specific rules regarding how the natural environment must be protected within the special areas. The new regulations also include standards and procedures for designating and amending special areas.

Under the new regulations BLM can decide to remove land from three of the special areas, if there is some change in the resource values within those areas. However, the agency cannot remove land from the Teshekpuk Lake and Utukok River Uplands Special Areas unless directed to do so by statute.

Regulations for managing special areas

The new regulations spell out lists of natural resources that require protection in each special area. The regulations require a BLM official who is responsible for authorizing activities within a special area to take steps to protect these resources, including, but not limited to, setting conditions for activities, delaying actions, and denying proposed activities in whole or in part. However, the presumption is that oil and gas activities will not be permitted, unless it is clear that the activities can be carried out with no or minimal impacts on significant resource values.

Given the extent of land within the special areas, the special areas regulations apply to around 13 million acres of the 23-million-acre reserve.



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