AIDEA might bid in ANWR lease sale; project in line with mission

Kay Cashman

Petroleum News

At the Alaska Industrial Development and Export Authority’s monthly board meeting on Dec 23 a resolution allowing it to bid in the Jan. 6 federal oil and gas lease sale for the coastal plain of the Arctic National Wildlife will be discussed in executive session and could then come up for a vote in the public portion of the meeting.

The newly drafted Resolution G20-31 points out that one of the purposes of AIDEA is to develop and provide financing for industrial development and facilities that “are essential to the development of the natural resources and the long-term economic growth” of Alaska, directly and indirectly alleviating unemployment in the state.

The staff of the Authority anticipates it will “need to incur or encumber up to $20 million in costs in the first year,” the resolution says.

If approved, the new project will be known as “CP Oil and Gas Development.”

The U.S. Bureau of Land Management has issued a detailed statement of the sale and AIDEA meets the criteria for bidding described in the DSS.

The resolution says because the leases are in the Arctic and the Arctic Infrastructure Development Fund, or AIDF, was set up by the Alaska Legislature and can be increased with funds from several sources with the approval of AIDEA’s board, the authority has the ability to finance projects or facilities that promote and create infrastructure needed to bring natural resources to market.

Opening new areas in the Arctic for responsible oil and gas development is vital for Alaska’s economy and to promote the sustainable utilization of Arctic infrastructure facilities including the Trans-Alaska Pipeline System, the resolution notes.

Furthermore, because AIDEA can “use the AIDF to promote and provide financing for Arctic infrastructure development, and is authorized to enter into lease agreements with government entities necessary to fulfill the purposes of the program as outlined in AS 44.88.830,” submitting “a bid or multiple bids for tracts defined in the DSS would be in furtherance of the Authority’s statutory powers and in the public interest.”

If the resolution is passed by the board, the authority will be able to accept new funding in the AIDF, transfer the necessary funding from the Revolving Fund to a separate account within the AIDF for the project, and “expend or encumber” up to $20 million from the AIDF to pay for any and all project expenses.

The resolution authorizes AIDEA’s executive director, Alan Weitzner, to evaluate and submit bids for the January coastal plain lease sale, and incur and pay for any project expenses within his discretion as long as they are “not material and do not alter the intent” of the resolution.

AIDEA board members are: J. Dana Pruhs, chair; Bernie Karl, vice chair; Albert Fogle; Bill Kendig; Julie Sande; Julie Anderson, commissioner, Alaska Department of Commerce, Community, and Economic Development; and Anna MacKinnon, special assistant to the commissioner, Alaska Department of Revenue.

- KAY CASHMAN