HOUSE BILL REPORT

SJM 8015

BYSenators Bottiger and Johnson

Requesting the opening of the Arctic National Wildlife Refuge Coastal Plain to oil and gas exploration.

House Committe on Natural Resources

Majority Report:  Do pass.  (14)

      Signed by Representatives Sutherland, Chair; K. Wilson, Vice Chair; Amondson, Beck, Bumgarner, Fuhrman, Hargrove, Haugen, R. King, Meyers, Sayan, Schmidt, C. Smith and S. Wilson.

Minority Report:  Do not pass.  (3)

      Signed by Representatives Belcher, Cole and Spanel.

House Staff:Bill Koss (786-7129)

AS REPORTED BY COMMITTEE ON NATURAL RESOURCES APRIL 3, 1987

BACKGROUND:

The Alaska National Wildlife Refugee (ANWR) covers 19.3 million acres in the northeast corner of Alaska.  In a wildlife refuge, the primary resource management objective is protecting wildlife.  The coastal plain region of the ANWR is a 1.55 million acre area about 75 miles east of Prudhoe Bay.

In a draft report to Congress, the U.S. Department of the Interior estimated that the area may contain as much recoverable oil and gas as Prudhoe Bay, the largest U.S. oil field.  The draft report recommended that the federal government allow oil and gas exploration in the region.  The oil industry supports opening the area and believes it is one of the best oil prospects in North America.

Environmental groups oppose opening the wildlife refuge to development and claim there is only a five percent chance the area will produce a Prudhoe Bay size discovery.  They also cite the availability of other Arctic areas where oil is more likely to be found.  The ANWR coastal plain is a calving area for North American's largest caribou herd.

The Interior Department is scheduled to issue its final report and recommendation in mid-April.  Congressional action is required for development of the Wildlife Refuge.  Final congressional action is not expected until 1988.

SUMMARY:

The legislature asks that Congress open the Alaska National Wildlife Refuge coastal plain to environmentally responsible oil and gas exploration, development, and production.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Alan Hastings, Alaska Oil & Gas Association; Denny Samuel, Western Oil & Gas Association; Jack Fablich, Port of Tacoma.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The coastal plain of the refuge is an important caribou calving area, but experience in other Arctic areas shows caribou adapt to changes and herds have grown in size.  Three thousand jobs were created in Tacoma to construct modules used in Prudhoe Bay oil development.  Similar employment would come from finding oil in the refuge.

In recent years, the U.S. has become increasingly dependent on imported oil.  In the event of an international crisis, Americans might end up waiting in lines at gas stations again and face high, inflated prices.  Because of the long lead time for developing Arctic wells, exploration needs to begin now.

House Committee - Testimony Against:      None Presented.