Tax bill with language opening ANWR passed by the Congress

Alan Bailey

Petroleum News

On Dec. 20 the House of Representatives passed a landmark tax bill that includes language to open the 1002 area of the Arctic National Wildlife Refuge for oil and gas exploration and development. And, having already been passed by the Senate, the bill went to President Trump for his signature. The opening of the 1002 area represents the culmination of decades of effort to allow oil and gas activities in the prospective eastern part of the coastal plain of the North Slope.

Sen. Lisa Murkowski, R-Alaska, the author of the ANWR opening language, has characterized the passage of the bill as a watershed moment for Alaska and all of America.

“I think this is a big day for Alaska. This is a big day for the country,” Murkowski said during a press conference convened by herself, Sen. Dan Sullivan, R-Alaska, and Rep. Don Young, R-Alaska. “I think that what we have seen out of the Senate and now the House, and soon to be signed by the president, is an opportunity for Alaskans that will bring many bright days into the future. This is a proud moment for Alaskans. I’m proud to be here with my friends and colleagues as the Alaska delegation.”

The legislation requires the secretary of the interior to hold at least two areawide lease sales within 10 years, with the first sale taking place within four years of the legislation being enacted and the second within seven years. The idea is that federal revenues from leasing and oil production in the 1002 area will offset some of the impact of tax reductions enacted in the bill. The legislation limits surface development in the 1002 area of ANWR to a maximum of 2,000 acres, the assumption being that modern directional drilling can enable access to extensive areas of the subsurface using a minimal surface footprint.

- ALAN BAILEY