Environmental Attacks Threaten Canadian and Alaskan Arctic Activity

See how Alaska's own government threatens Arctic investment!

See today's Alaska Dispatch story on Alaska tax issues.

1.  Mackenzie Delta.  CBC News.  An environmental review panel's recommendation to impose noise limits on any Mackenzie Valley pipeline facilities built inside a bird sanctuary could scuttle the $16.2-billion project, its backers have told the National Energy Board.  Globe and Mail Story.

 
2.  National Petroleum Reserve Alaska.  (Note:  We observe that Alaskan officials are rightfully upset at the Federal actions below--beyond their control--that deter investment in the State.  We also observe that this is all the more reason politicians should act now to improve the investment climate policies over which they do have control.  As we editorialized Friday, they should moderate the state petroleum production tax and cruise ship law resulting from a damaging voters initiative.  -dh)

  • Governor Sean Parnell (NGP Photo-r with Senator Lisa Murkowski) issued the following statement Friday on the Corps of Engineers decision to deny ConocoPhillips and Anadarko a permit to construct a drill pad known as CD-5 in the National Petroleum Reserve-Alaska.  “Just in the last six months, we’ve fought the federal government for tying up Outer Continental Shelf leasing, and for adding bureaucratic nightmares and costs with Endangered Species Act listings and critical habitat area designations. We’ve seen the U.S. Fish and Wildlife Service and the Environmental Protection Agency show reluctance to approve anything related to jobs in Alaska.  “And then -- first, by delay, and now, through their decision -- the Corps of Engineers continues to set back our nation's chances for economic recovery, domestic energy production, and Alaskans' prospects for jobs.
  • U.S. Sen. Lisa Murkowski, reacted Friday to the Obama administration’s denial of Conoco Phillips’ permit to construct a bridge to access what would have been the first oil and gas lease in Alaska’s National Petroleum Reserve (NPRA), insisting the company instead use directional drilling for the development.  For decades, those who oppose developing ANWR or Alaska’s offshore fields have continually cited the 23 million-acre NPRA as the area where development should occur instead. If a producer cannot get across the Colville River, however, NPRA’s resources are effectively off-limits.  “I am alarmed and amazed by this short-sighted decision, which totally ignores the economics of future energy development in all of northern Alaska,” Murkowski said. “Directional drilling can work in ANWR because the oil is concentrated in the northwest corner. That is an entirely different situation than the vast and widely distributed deposits in the NPRA, however, and the administration knows it.”  While the one oil deposit that Conoco is trying to access may be within reach of directional drilling, the known deposits that are next in line for development are more than 10 miles away from existing infrastructure and far outside of the technological scope of extended reach drilling. The bridge and the related pipelines are essential for additional oil and gas development from the petroleum reserve.  “If allowed to stand, this myopic decision will kill all future oil development from the nation’s largest designated petroleum reserve and probably stop all future natural gas production from the area as well,” Murkowski said. “The loss of energy potential is staggering for the nation and it would happen for absolutely no environmentally sound reason.”   “America is dangerously reliant on foreign oil.  Restricting access to even more of our domestic resources is simply unacceptable,” Murkowski said.  Although Conoco Phillips may reapply for the permit, it is clear that they have lost another drilling season because of this regulatory overreach. 
  • House Speaker Mike Chenault, R-Nikiski, and House Resources Committee Co-Chair Craig Johnson, R-Anchorage, released the following statements Friday expressing their frustration and outrage at the U.S. Army Corps of Engineers decision to deny ConocoPhillips Alaska and Anadarko Petroleum a bridge permit to begin exploration on leases in the National Petroleum Reserve – Alaska, or NPR-A.