Sponsor Statement for HJR 12

Supporting oil & gas lease sales in the National Petroleum Reserve Alaska

HJR 12 is a statement by the 20th Alaska Legislature urging the Secretary of the U.S. Department of the Interior to re-institute an oil and gas leasing program in the National Petroleum Reserve Alaska (NPRA).

Leasing in the NPRA is in the state's best interest for three reasons: 1) The economic activity associated with oil and gas leasing, exploration, and production benefits Alaskans; 2) oil produced in the NPRA would be transported through the Trans-Alaska Pipeline, helping to keep the pipeline open, and potentially enhancing the commercial viability of existing and future oil development projects on the North Slope; 3) the State of Alaska will receive 50% of the revenues from oil and gas production in the NPRA.

There were four oil and gas lease sales in the NPRA during the early 1980's. In January 1982 Sale # 821 offered 59 tracts. 52 bids were submitted on 29 tracts for a total of $86,575,537. In May of 1982 Sale # 822 offered 212 tracts. 14 bids were submitted on 12 tracts for a total of $11,747,131. In July of 1983 Sale # 831 offered 84 tracts. 23 bids were submitted on 18 tracts for a total of $20,309,208. In July of 1984 Sale # 841 offered 64 tracts but no bids were submitted. Sale # 841 scheduled for August 1985 was canceled due to lack of interest.

With advances in technology new interpretations are being developed from the data collected during the past several decades by both the private sector and the federal government. These new evaluations are generating renewed interest, and oil companies with considerable experience in Alaska have indicated that they would like to utilize new interpretations of it to resume exploration.

I believe the federal government should resume lease sales and allow - no, encourage - the industry to explore for oil and gas in the NPRA. I also believe it is important that the Alaska Legislature send a unified message to the Department of the Interior that we support lease sales being scheduled. I would appreciate your support of this measure.