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Web posted
Interior Secretary Ken Salazar on April 14 will hold in Anchorage one of four national Outer Continental Shelf (OCS) public meetings. Alaskans should participate because the results could revive or scuttle America's economy - and in the bargain - Alaska's economic hopes! The March 18 Federal Register discussed Secretary Salazar's strategy for developing a comprehensive energy plan for the OCS, and described four public meetings to receive input from stakeholders. Presumably, this "stakeholder" information will be used to develop and modify the draft proposed OCS oil and gas leasing program for 2010-2015. The secretary convened the first two hearings in Atlantic City and New Orleans. The last meeting will be later this month in San Francisco. Anchorage's meeting begins at 9 a.m. April 14 at the Dena'ina Convention Center, when Salazar opens the proceeding and the Mineral Management Service and U.S. Geological Survey (USGS) provide briefings. Before lunch, we expect to hear from Gov. Sarah Palin and our Congressional delegation. Then stakeholders can comment from 2 p.m. to 4 p.m. and from 6 p.m. to 8 p.m. Salazar initiated the Atlantic City meeting with remarks that appeared to reflect his dedication to developing OCS. He even said it would be a dereliction of duty to not support a robust OCS leasing plan. However, he also seemed to link OCS activity with enactment of the administration's global warming and other environmental priorities. He could clarify this in the later public meetings for those of us who may have misunderstood. Alaskans should participate to represent our "stakeholder" interests. Without citizen views to balance the record, the record could point to a preponderance of comment with which we disagree. Let's look for a moment at what is at stake. Alaska has about three-quarters of the entire U.S. coastline, so our state could arguably be the most greatly affected by OCS policies. Our private economy and government are over 80 percent dependent on oil activity, and trans-Alaska oil pipeline throughput is slipping by about 7 percent per year. North Slope oil used to provide the country with about 20 percent of its domestic supply. We were the No. 1 source of domestic oil. Some of the most promising OCS acreage anywhere in the country is within 200 miles of our coast. A recent study predicted that OCS activity in the Beaufort and Chukchi seas could produce 35,000 jobs, 6,000 of them being direct jobs. Alaska's offshore resources could exceed 27 billion barrels of oil and 132 trillion cubic feet of gas, according to the MMS. If Alaska receives future OCS revenue sharing as Gulf of Mexico states have, that potential multi-billion dollar stream could save state and local governments from making deep cuts … and preserve a generation of private sector jobs. New OCS oil and gas discoveries could also support Alaska gas pipeline feasibility and a lengthened lifespan for the trans-Alaska oil pipeline. National OCS benefits are significant, too. The government calculates that OCS could contain a potentially recoverable resource of 86 billion barrels of oil and 420 trillion cubic feet of natural gas. Not developing that natural wealth would logically lead us to pay trillions of dollars to foreign nations for their exports. Developing domestic energy rather than importing it can have a stunning impact on jobs, balance of payments deficits, strength of our currency, domestic manufacturing, local and federal royalty and tax revenues, and overall national security. It was good to hear Secretary Salazar's apparent understanding of the potential OCS impact on national security. Consumer Energy Alliance President David Holt observed after the Atlantic City meeting that, "Secretary Salazar came face to face today with the very people who would benefit most immediately from allowing energy exploration along the OCS." He observed, on behalf of his 100-plus consumer alliance of organizations, that "by approving a plan to allow offshore oil and natural gas exploration and wind development as part of a comprehensive energy proposal, the Obama administration can stand with the majority of Americans who understand that developing our abundant resources can help get us out of the current economic crisis." In Alaska right now, no one disputes that our state and municipal revenues are diminishing and threatening Alaska with imminent economic crisis. To compound that challenge, no one disputes that some of Alaska's utility, regulatory and legislative decisions - and indecisions - have led citizens to the threshold of local energy crises. OCS development of oil and gas resources will help bridge the fiscal and energy gaps between now and a time when more alternative energy can be economically viable. American OCS exploration and operations are safe. OCS activity can provide a vital link as we seek to repair the chain of economic activity that binds us all in prosperity and enables America and Alaska to pass on hope to her kids and grandkids. Should a "do nothing in the Arctic" theme dominate American discourse and this OCS public process, the result could be very bad for Alaska and tragic for America. Likewise, citizens should be sure that apparent governmental support of OCS exploration and development is real. OCS is a value unto itself and should not be counterbalanced with or traded for other anti-energy actions. Citizens should be vigilant, as well: assuring that with a good lease sale program comes an honest permitting process, one in which government administrators work to reasonably expedite - not obstruct - development of lawfully leased lands. Meanwhile, let's assume that every party to America's lease sale policies brings to the table an attitude of honesty and good intent. Be a part of history. See you next Tuesday. Dave Harbour is a retired Regulatory Commission of Alaska commissioner. He served as chairman of the gas committee, Western Conference of Public Service Commissioners; vice chairman of the gas committee, National Association of Regulatory Utility Commissioners; and as NARUC's official representative to the Interstate Oil and Gas Compact Commission. |
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