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Providing coverage of Alaska and northern Canada's oil and gas industry
March 2015

Vol. 20, No. 13 Week of March 29, 2015

Point Hope out of Chukchi appeal; litigation was impeding discussion

The Native Village of Point Hope has withdrawn from a longstanding appeal against the validity of the 2008 Chukchi Sea lease sale in which Shell, ConocoPhillips, Statoil and other companies purchased oil and gas leases. Point Hope, concerned about the potential impacts of offshore oil and gas activities on subsistence hunting, had joined with 12 environmental organizations in challenging the environmental impact statement for the sale. The appeal has resulted in delays in Chukchi Sea exploration activities.

Apparently, in a unanimous vote on March 17 the Native Village of Point Hope decided to withdraw from the appeal.

“This move is an important one for our community,” said Jack Schaefer, Native Village of Point Hope president. “After careful consideration, we realized this litigation was preventing us from having meaningful discussions inside our region regarding responsible resource development. We will continue to closely monitor outer continental shelf drilling activities while we pursue title and ownership of our ocean as an aboriginal claim to maintain control of our area - which includes revenue sharing of our oil.”

Rex Rock Sr., president of Arctic Slope Regional Corp. and a whaling captain from Point Hope, commended the village council’s decision.

“ASRC welcomes the news from the Native Village of Point Hope,” Rock said. “This recent action demonstrates that when we come together as one people - free from outside influence - we can progress our region forward in a productive manner.”

Rock said that ASRC, the Native regional corporation for the North Slope, shares the desire of the Village of Point Hope and other whaling communities to ensure protection for subsistence traditions.

“Withdrawing from this lawsuit removes the barrier that has prevented us from working together,” Rock said. “Now we can sit at the table to have meaningful discussions on how to move our North Slope communities forward.”

The lawsuit in question dates back to early 2008 when, just prior to the lease sale being held, the plaintiffs appealed in federal District Court in Alaska, claiming several deficiencies in the environmental impact statement for the sale. After changes mandated by the District Court to the EIS, the case was elevated to the 9th Circuit Court of Appeals. In January 2014 the 9th Circuit Court upheld the appeal and remanded the case back to District Court. Following a District Court order, the Bureau of Ocean Energy Management made further revisions to the EIS and issued a final version of the revised document in February of this year. The Department of the Interior anticipates making a new record of decision over holding the lease sale by the end of March.

Meantime, lease related activity in the Chukchi Sea, including the processing of federal permits, has been placed on hold until the new record of decision is issued.

- Alan Bailey






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