Today’s Key Takeaways: BLM announces lease sale in ANWR. Southcentral mayors say time is running out- again. Red Dog mine gets key permit from feds. Alaska House Republicans announce leadership
OIL:
Congressionally mandated lease sale announced for Alaska’s Coastal Plain
BLM Headquarters, December 9, 2024
Sale includes minimum acres required, creating smallest footprint of potential surface disturbance and limiting seismic exploration
ANCHORAGE — Today the Bureau of Land Management (BLM) issued a Record of Decision (ROD) for the Coastal Plain Oil and Gas Leasing Program Supplemental Environmental Impact Statement (SEIS), which analyzed the program as well as a lease sale mandated by Congress in the Tax Cuts and Jobs Act of 2017 (Tax Act) for the nearly 1.6-million-acre Coastal Plain of the Arctic National Wildlife Refuge. The BLM is also issuing the Notice of Sale, for the oil and gas lease sale for 400,000 acres—the minimum required by the Tax Act—in the northwest portion of the Coastal Plain on January 9, 2025.
The 2017 Tax Act required the BLM to offer two lease sales in the Coastal Plain within seven years of enactment. During the previous Administration, the first lease sale was held and resulted in nine leases being issued. In January 2021, President Biden issued Executive Order 13990, directing the Interior Department to review the Coastal Plain Oil and Gas Leasing Program. As a result of the deficiencies found during that review, in June 2021, Secretary of the Interior Deb Haaland issued Secretary’s Order 3401, which suspended all activities related to implementing the Leasing Program, pending completion of a comprehensive analysis under the National Environmental Policy Act (NEPA). Of the nine leases sold during the previous Administration’s sale, two were canceled and refunded at the request of the lessees and the remaining seven were canceled by the Department due to multiple legal deficiencies in the underlying record.
The BLM will proceed with the preferred alternative from the recently published final SEIS, which best balances the five purposes of the Refuge by presenting a pathway to provide maximum protection for the conservation purposes of the Refuge while meeting the requirement under the Tax Act. The BLM and the U.S. Fish and Wildlife Service worked as joint lead agencies on the SEIS, which was informed by science, public comments and cooperating agency input. The agencies consulted with Alaska Native Tribes and Corporations and engaged with a wide variety of other stakeholders to develop the analysis, using the best available data and science.
The area offered for sale will avoid important polar bear denning and Porcupine Caribou Herd calving areas. This also has the smallest footprint of potential surface disturbance due to No Surface Occupancy stipulations, and limits seismic exploration to the areas available for leasing.
Leasing is the first step in the process to develop federal oil and gas resources. Any permits or authorizations for specific on-the-ground activities on lands obtained through the lease sale would require additional review through the NEPA process.
The SEIS, ROD and associated documents are available for review at the BLM’s National NEPA Register.
Notice of the second lease sale is posted on the BLM’s lease sale webpage for Alaska.
GAS:
Southcentral mayors say time is running out for utilities to address looming natural gas shortfall
Wesley Early, Alaska Public Media, December 6th, 2024
Southcentral Alaska faces a looming natural gas shortage, putting the future of how homes, businesses and governments keep themselves powered on and well heated at a crossroads.
For the past year, a coalition of regional mayors has met with various stakeholders and utilities about the best path to provide energy for Alaska’s Railbelt. Right now, the region largely relies on liquified natural gas from Cook Inlet, but experts predict that the demand for LNG will outweigh the local supply by around 2027.
Anchorage Assembly members held a retreat Thursday to hear from the coalition about the state of the gas shortfall, and what the city can do to mitigate its own natural gas use. The main takeaway: There’s no plan finalized yet to deal with the shortfall, but there needs to be one soon because time is running out.
“Where we are today on the development of these projects and commitments going forward on these projects probably should have occurred three or four or five years ago,” Kenai Peninsula Borough Mayor Peter Micciche said to the Assembly. “And here we are today, worrying about what things look like in ‘27,’28 or a cold winter week today.”
Micciche said a fix for the looming natural gas shortfall won’t come from the Legislature or the governor or local mayors like himself. It has to come from utilities.
“Our most valuable mission here is advocating for someone willing to step up and make the right decisions for a comprehensive plan forward,” Micciche said. “There isn’t one, and that’s something that we have to demand going forward.”
MINING:
Feds approve key step toward expansion at major Northwest Alaska zinc mine
Max Graham, Northern Journal/Alaska Beacon, December 9, 2024
Red Dog mine, a regional economic linchpin, is running low on ore. With a new permit in hand, the multinational company that operates the project is now moving quickly to try to extend its life.
For years, one of Alaska’s largest mines has steadily depleted its ore while its operator has waited for a key federal permit to access new mineral deposits.
This week, the U.S. Army Corps of Engineers approved the permit for Red Dog Mine, allowing its Canadian operator to build roads and other infrastructure to reach two new zinc prospects.
It’s a significant step toward extending the life of the mine, which is set to close within a decade unless those new deposits prove lucrative enough to tap.
With the federal Clean Water Act permit in hand, Red Dog’s operator, Teck, now says it will move ahead quickly with construction.
The zinc mine, one of the world’s largest, is a major source of jobs and accounts for more than 80% of the revenue for the remote Northwest Arctic Borough. It has also generated billions of dollars for Alaska Native-owned corporations across the state since opening more than 30 years ago.
But, barring new development, its days are numbered: Running low on ore, the mine is set to close in 2031. Facing the prospect of diminished revenue for the borough — which comes through yearly, agreed-upon payments from Teck — regional elected officials have already been considering sharp cuts to government services.
But Teck has long been examining its options to expand.
The new permit allows the company to build just over 12 miles of roads needed to access two zinc deposits, called Aktigiruq and Anarraaq, that could help sustain mining operations for years longer.
POLITICS:
Alaska House Republican Caucus Announces Leadership for 34th Legislative Session
House Republican Caucus, December 7, 2024
Anchorage, Alaska — The newly formed Alaska House Republican Caucus, 19 members strong, is united and ready to serve the people of Alaska. With a motivated and committed team, the Caucus is determined to bring effective leadership and responsible governance to the 34th Legislative Session.
Representative Elect Mia Costello of Anchorage has been selected to serve as Minority Leader, with Outgoing Speaker of the House, Representative Cathy Tilton of the Mat-Su Valley, assuming the role of Minority Whip. Finance Committee members will be Representatives Will Stapp (Fairbanks), Frank Tomaszewski (Fairbanks), Jamie Allard (Eagle River), DeLena Johnson (Palmer) and Rep. Elect Jeremy Bynum (Ketchikan).
In accepting the leadership position, Rep. Elect Costello remarked: “I am honored to lead this dedicated group of legislators as we represent the interests and values of Alaskans. I deeply appreciate the confidence my colleagues have placed in me and pledge to guide our efforts with focus, integrity, and resolve.”
Standing for Alaskan Priorities
The Alaska House Republican Caucus is guided by principles that resonate with Alaskans statewide:
- Delivering affordable, reliable Alaska-sourced energy to secure a stable future.
- Ensuring accountability in education with stable funding, school choice, and measurable outcomes for families.
- Advocating for responsible budgets that protect the Permanent Fund Dividend and safeguard Alaska’s economic future.
Other Committee Assignments as of December 7th
Resources – Representatives Sadler, Rauscher, Coulombe and Rep-Elect Elam
Judiciary – Representatives Vance, Rep-Elects Costello, and Underwood
Labor & Commerce – Representatives Sadler, Coulombe, and Rep-Elect Nelson
Education – Rep-Elects Underwood, Schwanke, and Elam
Health & Social Services – Representatives Prax, Coulombe, and Rep-Elect Schwanke
State Affairs – Representatives Vance, McCabe, and Rep-Elect Moore
Transportation – Representatives McCabe, Tilton, and Rep-Elect Moore
Community and Regional Affairs – Representatives Prax and Ruffridge
Energy – Representatives Tilton, Rauscher and Rep-Elect Costello
Fisheries – Representatives McCabe, Vance, and Rep-Elect Elam
Military & Veteran Affairs – Representatives Saddler, Rauscher, and Rep-Elect Nelson
Tribal Affairs – Rep. Elect Schwanke