A delegation of fishermen and government officials from the tip of the Alaska Peninsula was to travel to Texas last week promoting their area for oil and gas development, a turnaround from past opposition.
Representatives of the Aleutians East Borough were to travel to Houston to attend the North American Prospects Expo, the largest oil and gas exploration and production event in the world. Two representatives from the Aleut Corp., the regional Native corporation, also will attend.
"Oil and gas exploration, done correctly, can work," said borough administrator Bob Juettner. "We hope to convey to petroleum companies that we not only support their efforts, but we are a great place to do business."
"We have deep waters ports, harbors, airports, medical facilities and many other support services," said Aleutians East Borough Mayor Stanley Mack. "We want to educate companies about the potential that exists."
The Aleutians East Borough covers the fishing communities of King Cove, Nelson Lagoon, False Pass, Sand Point and Akutan along the western tip of the Alaska Peninsula and eastern Aleutian Islands.
The desire for petroleum development is driven by continued poor prospects in the borough's main industry, commercial fishing. Commercial fishing accounts for 95 percent of the economy in communities. Earnings have been hard hit by competition from salmon fish farms.
Aleutians East Borough families are officially the poorest in Southwest Alaska, according to 2000 census data. In 1999, per capita income was $21,437, one of the lowest in Southwest Alaska.
Eight wells were drilled within the borough between 1961 and 1983. Oil shows were evident in three wells around Port Moller and near Nelson Lagoon, a village of less than 100 people on the Bering Sea-side of the Alaska Peninsula. New leases likely would be available in those areas.
Political pressure from fishermen helped kill the process and companies pulled out before discovering whether commercial quantities of oil and gas existed, according to the borough.
Theo Chesley, a Nelson Lagoon fisherman, said his community in the past was dead set against offshore drilling.
"As far as the onshore stuff, guys are fairly excited about it," he said.
Many fishermen have lost boats or homes and moved out because of the downhill cycle of fishing and would welcome the chance for a petroleum industry job, as long as the industry does not affect the environment, Chesley said.
"We're definitely upbeat about it," he said. "We want them to come out."
Mark Myers, director of the state Division of Oil and Gas, said the state is midway through the extensive process of producing a "best interest finding document" to allow lease sales on the peninsula. The document examines locations, areas, seasons, wildlife protections and other conditions for a sale.
If determined to be in the state's best interest, a lease sale will be held in October, he said.
The state was also to be at the Texas exposition, along with the Bristol Bay Native Corp., he said.
"We all have separate booths, but we're all together," Myers said.
While there's potential for both oil and gas development, prospects for natural gas appear better, Myers said.
One condition is already in place: no drilling offshore, only on shore, or through directional drilling, near shore.
"That's a commitment already made by Commissioner Irwin," Myers said, referring to Tom Irwin, head of the Department of Natural Resources.
Myers said there could be sufficient gas reserves to warrant liquid natural gas production commercially and for use by area villages.
"There's a real rural energy component if things work right," Myers said.
Myers and a spokeswoman for Gov. Frank Murkowski, Becky Hultberg, said the likelihood of development is increased by local support.
"The governor has been very encouraged that initiative has been community driven," Hultberg said.
