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Irwin makes access to land, more efficient permitting his priorities New natural resources commissioner points to project team concept for large projects as key stimulating development and state revenues Patricia Jones PNA Contributing Writer
Tom Irwin, Alaska Department of Natural Resources commissioner, advocates increasing land access and clarifying the regulatory permitting process as crucial steps to stimulate oil and gas development, which will, in turn, boost state revenues.
In an interview with Petroleum News Alaska on Feb. 18, Irwin keyed in on those two methods among a myriad of incentives and tax credits being discussed by Gov. Frank Murkowski’s administration as ways to increase Alaska’s oil production in the short term. (See adjacent news item.)
“These two areas are right up in front. … We need a clearer permitting process, one that does not compromise any principles, but is clear. And we need access,” Irwin said.
Large project permitting teams He can speak first-hand about the state’s permitting process because of his former role as general manager of the Fort Knox gold mine near Fairbanks. Irwin was part of a team of experienced mining employees working for Amax Gold who came to Alaska in 1992 to develop and permit what eventually became the state’s largest open-pit gold mine.
Included in that original Fort Knox development team was Bill Jeffress, who recently left his Fort Knox position as manager of environmental services to take over as director of the state’s Division of Governmental Coordination, which oversees the Alaska Coastal Management Program. The Murkowski administration has moved both DGC and the Department of Fish and Game Habitat Division’s regulatory responsibilities into DNR, putting the department front and center for permitting future development projects.
Irwin complimented the permitting process used by the state’s large mine project team in the early 1990s.
“We had great success with the large mine project concept when Fort Knox was permitted. It’s our intent to use that concept in permitting any large project statewide, to expand it into all natural resource developments,” Irwin said.
Basically, the process involves DNR supplying a project manager to serve as the point of contact between industry and agencies. Other state agencies report to that project manager; federal agencies are also invited to join the team.
Irwin describes the team concept as efficient and a way to keep the permitting process on track with the different agencies’ priorities.
“You are acquiring the priorities and making the system move efficiently,” he said. “All the issues are addressed by people with decision-making authority, who can coordinate these issues.”
Improved access could spark development Irwin also points to road development on the North Slope as a way to stimulate additional oil and gas development. He briefly discussed a road to Nuiqsut, a concept that has already received attention from planners with the state Department of Transportation and Public Facilities.
“To encourage more exploration, we need access,” Irwin said. “The winters seem to be getting colder later, and warmer earlier. There’s a huge cost for mob (mobilization) and demob. Too many dollars are going into mob and demob, and they are not going into drilling holes.”
He compared Alaska’s exploration work with that in Canada, where he said that “thousands of holes are being drilled … to do that, they drive roads in there.”
“I’m not saying we need to put roads everywhere, but we need to figure out how to provide better access,” he added.
Additional access will aid both existing producers and new companies exploring Alaska’s North Slope, Irwin said, something he’s discovered during recent talks with various oil and gas companies.
“Independents need access to ground,” he said.
The new administration’s message to industry, Irwin said, is “… to make things more cost effective, without losing protection of the Alaskan environment.”
Division heads soon to be named Irwin, who was named head of DNR in mid January, has yet to announce three other key positions within the department. Those positions include director of the Division of Oil and Gas, director of the Division of Mining, Land & Water and director of Forestry.
Mark Myers, who has served as director of Oil and Gas, is “incredibly capable,” Irwin said. “I’ve spent more time with Mark than any other single person on the job. I’m very pleased with Mark’s knowledge on what is really the most critical part of the state.”
People are Irwin’s number one priority, he added. “You’ve got to build the right team.”
Those three key positions will be announced in less than two weeks, Irwin said. “I’ll make my decision soon,” he said.
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