Shutdown impacts vary across departments

If the Alaska Legislature is unable to come to an agreement on a budget and there is a partial shutdown of state government, the impacts on departments related to the oil and gas industry would vary.

In the Department of Environmental Conservation, for example, the Division of Spill Prevention and Response would need to maintain a level of preparedness and since the division is primarily funded through the Prevention Account of the Oil and Hazardous Substance Release Prevention and Response Fund it would not be affected.

However, DEC permitting services rely on general fund support and will be largely suspended, the department said.

The Department of Natural Resources said that in the event of a shutdown there would be a delay in issuing “a variety of DNR permits and authorizations,” while DNR programs including the Office of Project Management and the State Pipeline Coordinator’s Office, which do not rely on general fund expenditures, will continue to operate.

The Department of Commerce and Economic Development said layoff letters have not been sent to state corporations which do not fall under the personnel act, including the Alaska Energy Authority, the Alaska Industrial Development and Export Authority and the Alaska Gasline Development Corp. DCCED agencies not funded by unrestricted general funds, including the Regulatory Commission of Alaska, would be able to recall the majority of their employees, the department said.

The Alaska Oil and Gas Conservation Commission, part of the Department of Administration, relies on program receipts from those using the service and will not the affected by the partial shutdown, the department said.

- Petroleum News