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November 2002

Vol. 7, No. 47 Week of November 24, 2002

ANWR will happen in 2003, says Roger Herrera; Ted Stevens says possible in first quarter

U.S. House, Senate, Bush administration aligned in pro-exploration mode

Steve Sutherlin

PNA Managing Editor

Approval of exploration for oil in the Arctic National Wildlife Refuge will come in 2003, says Roger Herrera, Arctic Power’s Washington, D.C., coordinator.

Although the energy bill didn’t go anywhere in the lame duck session this month, Herrera told PNA Nov. 19, ANWR drilling supporters came away from the session with strong optimism for approval of their cause early in the next session, now that Republicans are firmly in control of the Senate.

“We were mightily pleased, the balance of power is much more advantageous,” he said, adding that the chairmen of the House and Senate, as well as those of key committees, are united with the administration in support of drilling.

New strategy pondered

Herrera said the threat of filibuster would be blunted next session because an ANWR drilling provision will likely be inserted in a budget reconciliation bill, which cannot be filibustered, therefore a majority vote prevails. Pro-exploration forces count a clear 53-vote majority in favor, he said, and only 51 votes are needed to pass.

The budget bill route was how an ANWR drilling provision passed Congress in 1995, only to see veto of the entire bill by President Clinton.

ANWR supporters were unable to insert an ANWR provision in a budget bill this session because Senate Majority Leader Tom Daschle controlled the process, and kept it out, Herrera said.

“The chairman dictates the timing and the agenda,” he said. “But it is no longer in the hands of Mr. Daschle.”

It is entirely appropriate to include an ANWR drilling provision in a budget bill, because of its impact on federal revenues, Herrera said. It is estimated that ANWR development would result in $1.5 billion in income to the federal government.

“There are not too many things in the budget that actually supply income, most of them use income,” Herrera said.

Herrera said the legislation might proceed relatively quickly, because the budget process timeline is governed by special rules that fast track it ahead of other legislation. Sen. Ted Stevens has suggested it is possible the provision could pass in the first 90 days of the session, Herrera said, but the timeframe could stretch to six months if the opposition erects roadblocks.

“It’s not an easy process, it’s controversial and emotional,” he said, adding that supporters can’t afford to be “less than cautious and clever.”

Stevens to push ANWR and gas line

Stevens said at a Nov. 15 press conference that he would pursue whatever means are necessary to advance ANWR exploration and construction of a North Slope natural gas pipeline.

“We’re looking for an energy bill to come forward to develop our needs as far as ANWR and the natural gas pipeline are concerned,” he said.

Stevens said he planned to revisit assumptions made by analysts at the Office of Management and Budget that inflate the projected expense to the government of incentives for the North Slope gas pipeline. The assumptions are based on predictions of economic conditions up to 10 years in the future, he said. Some tax credits, such as the marginal well tax credit, might not kick in for 15 years.

“It’s not fair to kill a bill based on what might happen in 2015,” he said.

The OMB scoring is used by the administration to consider legislation, and if the projected expense is too high, it could lead to a veto, Stevens said.

Murkowski’s new role

Sen. Frank Murkowski will have strong allies in the administration as he continues the fight for ANWR development from Juneau, as governor.

“We would like to promote a close working relationship between Alaska and the federal government through the governor’s office,” U.S. Interior Secretary Gale Norton said in Anchorage Oct. 31 on a campaign stop for Alaska gubernatorial candidate Frank Murkowski.

Norton said she was campaigning for Murkowski and other western governors because the Bush administration values states’ input when making national policy.

Alaska has the majority of the nation’s undiscovered hydrocarbon potential, she said.

“People in the east have a vision of the west as a huge park,” she said, “Alaska is a whole step beyond.”

It is possible to develop oil and minerals in the state, including ANWR, in an environmentally responsible way, said Norton. The best environmental technology is expensive, she said, so the best way to insure environmental responsibility is by maintaining local prosperity.






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