Knowles calls for improved monitoring of oil and gas industry

Governor says $4.8 million initiative would add 30 positions, increase environmental and safety monitoring, speed permitting

Steve Sutherlin

PNA Managing Editor

Gov. Tony Knowles proposed a $4.8 million initiative Dec. 12 to hire more personnel for state oil and gas permitting and regulation agencies for increased environmental monitoring and faster permitting. The plan seeks $3.7 million from the Legislature to add 30 staff positions to six state agencies. Another $1.1 million would be raised from existing fees paid by oil and gas companies. No new industry fees were proposed.

Knowles said the proposal would benefit industry through faster lease processing, permitting and more collaborative decision-making.

“One of the goals of this initiative is to get people out of the office and into the field, where the hands-on work needs to be done,” Knowles said. “This will require some reorganization of responsibilities ... but we are committed to raise the standard for environmental responsibility and maintaining a positive, 'open for business' attitude.”

Knowles said his plan would reduce the time for processing air and water quality permits and oil spill contingency plans to keep pace with drilling permit applications that have increased 35 percent over the last 10-year average. It would also expedite processing of title and lease applications by the Department of Natural Resources to keep pace with increased private sector activity.

Monitoring by the state would also increase under the initiative, Knowles said. It would increase well inspections, testing, and follow-up by the Alaska Oil and Gas Conservation Commission and air and water quality monitoring and inspections and oil spill preparedness drills by establishing a full-time North Slope office of the Department of Environmental Conservation.

Enforcement of electrical and occupational safety and health codes by the Department of Labor and Workforce Development will be stepped up, as will fire and life safety inspections by the fire Department of Public Safety.

The plan would add support to ensure habitat restoration and protection of fish and wildlife by the Department of Fish and Game, Knowles said, working with industry on how best to undertake exploration, development, field closures, and remediation.