Legislators pass permitting reform bill

The Alaska Legislature passed House Bill 129, which will allow the state to “consolidate” approvals for oil and gas exploration and development.

Gov. Sean Parnell offered the legislation as part of his administration’s permitting reform effort and, more broadly, his drive to quickly boost Alaska’s oil production.

The bill will allow the state Department of Natural Resources to approve exploration or development for “all or part” of an area previously cleared for oil and gas leasing. Approvals will be valid for up to 10 years.

The bill will cut out “repetitive” steps in the permitting process, such as some of the public notice and comment periods associated with pushing a project through the seismic, exploratory drilling and development phases, administration officials said.

The administration said HB 129 will give people a chance for input at the beginning of an exploration or development phase.

“Projects may then move forward within the defined parameters and subject to the lease mitigation measures without additional public review,” the administration told legislators.

Some industry players endorsed the legislation, saying it would provide relief from the current “inefficient and cumbersome” permitting process.

But critics, including environmentalists, said allowing DNR to establish “general conditions” for exploration and development would short-circuit public review of specific project plans.

—Wesley Loy