OPENING STATEMENT

SENATOR FRANK H. MURKOWSKI

SENATE COMMITTEE ON ENERGY AND NATURAL RESOURCES

HEARING
S.1217

OCTOBER 14, 1987

MR. CHAIRMAN, YESTERDAY WE HEARD FROM THE GOVERNMENT--THE REGULATORS--ABOUT HOW WE COULD MODIFIY THE LEGISLATION TO LEASE ANWR. OFFICIALS OF THE DEPARTMENT OF INTERIOR, THE ENVIRONMENTAL PROTECTION AGENCY, AND THE STATE OF ALASKA TOLD US THEIR RECOMMENDATIONS.

TODAY, WE HEAR ANOTHER VIEW

THAT OF THE INDUSTRY--THOSE

WHO ARE REGULATED.

THE TESTIMONY FROM SPOKESMEN FOR THE INDUSTRY IS ESPECIALLY IMPORTANT BECAUSE INDUSTRY IS MOST CLOSELY INVOLVED WITH THE

ANWR ISSUE.

THEY KNOW ALASKA, THEY KNOW THE COSTS INVOLVED, THEY TAKE THE RISKS, THEY UNDERSTAND THE ENVIRONMENTAL CONSIDERATIONS AND THEY OPERATE UNDER THE LAWS WE SET FOR THEM. ...IN OTHER WORDS, THEY KNOW FIRST-HAND WHAT WORKS AND WHAT DOESN'T.

INDUSTRY HAS A LEGITIMATE BASIS FOR PROVIDING TESTIMONY ON THE SUBJECT BEFORE US. THE PETROLEUM INDUSTY, THROUGH ITS MANY YEARS OF EXPERIENCE ON ALASKA'S NORTH SLOPE, BUILDING THE TRANS ALASKA PIPELINE, AND EXPLORING FOR OIL OFFSHORE ALASKA, HAS FUNDED THE MAJORITY OF THE RESEARCH AND KNOWLEDGE THAT WE HAVE TODAY ABOUT DEVELOPMENT IN THE ARCTIC.

BESIDES THE OIL INDUSTRY, WE WILL BE HEARING FROM THE MARITIME PEOPLE. THEY ALSO HAVE BEEN CLOSELY INVOLVED WITH ALASKA OIL OVER THE PAST DECADE. THE MARINE ENGINEERS BENEFICIAL ASSOCIATION (MEBA) PROVIDE THE PILOTS FOR THE SHIPS THAT DELIVER ALASKA CRUDE TO AMERICAN MARKETS.

THEY RECOGNIZE THE GREAT BENIFITS FOR AMERICA, IN TERMS OF JOBS AND THE ECONOMY, THAT ARE DERIVED FROM DOMESTIC OIL PRODUCTION. AND ALONG WITH THE PETROLEUM INDUSTRY, THEY RECOGNIZE THAT DEVELOPING ANWR IS CRITICALLY IMPORTANT TO AMERICA'S LONG-TERM ECONOMIC, ENERGY, AND NATIONAL SECURITY.

WHEN YOU TALK ABOUT THE BENEFITS ASSOCIATED WITH OIL PRODUCTION IN ALASKA, IT'S INTERESTING TO REFLECT FOR A MOMENT ON WHAT WE'RE TALKING ABOUT THE "BOTTOM LINE" SO TO SPEAK.

-

THOSE BENEFITS DON'T GO, AS SOME WOULD SUGGEST, JUST TO THE STATE OF ALASKA. EVERY ONE OF THE 50 STATES REAPS AN ECONOMIC BENEFIT FROM THE DEVELOPMENT DOLLARS.

IN DEVELOPING OF THE NORTH SLOPE OIL FIELDS, ACCORDING TO THE INDUSTRY, 10-AND-A-HALF BILLION DOLLARS WAS PAID OUT FOR MATERIAL AND SERVICES TO VENDORS THROUGHOUT THE UNITED STATES.

(-REFER TO MAP-)

FOR INSTANCE, $765 MILLION WAS SPENT IN THE STATE OF WASHINGTON. $147 MILLION IN THE CHAIRMAN'S HOME STATE OF LOUISIANA. $1.8 BILLION WAS SPENT IN CALIFORNIA. ALMOST $3.5 BILLION IN TEXAS. $145 MILLION IN COLORADO, $128 MILLION IN OREGON... EVEN .8 MILLION IN HAWAII.

THE POINT IS MR. CHAIRMAN, (AND I ASK THIS CHART BE INSERTED IN THE RECORD), IS THAT DOMESTIC OIL PRODUCTION HAS A SIGNIFICANT ECONOMIC IMPACT FOR ALL AMERICA. IT PROVIDES JOBS, NOT ONLY IN ALASKA WHERE THE DRILLING AND PRODUCTION TAKES PLACE, BUT JOBS, SALES, AND AN ECONOMIC BOOST IN EVERY ONE OF THE 50 STATES.

THE MARITIME PEOPLE RECOGNIZE THIS, AND I APPLAUD THEM FOR COMING FOWARD. TO ENDORSE ANWR PRODUCTION. I HOPE THAT OTHER UNIONS WILL FOLLOW SUIT AND HELP MAKE SURE WE KEEP A HEALTHY ECONOMY AND ENERGY SECURITY FOR THE UNITED STATES.

I LOOK FORWARD TO HEARING THE TESTIMONY OF TODAY'S WITNESSES, AND I AGAIN THANK THE CHAIRMAN FOR MOVING FORWARD EXPEDITIOUSLY WITH THESE PROCEEDINGS. WE'RE CN A VERY POSITIVE TRACK, AND I LOOK FORWARD TO WORKING WITH YOU AND THE COMMITTEE TO CRAFT THE KIND OF COMPROMISE THAT WILL ACCOMODATE THE CONCERNS WE HEAR DURING THESE HEARINGS AND YET ALLOW US TO GO FOWARD AND OPEN ANWR.

3475.9
Texas

South
Carolina

6.0

73.5

Alabama 2.4

Georgia

The CHAIRMAN. Next we are happy to welcome Oliver Leavitt, Vice President of Arctic Slope Regional Corporation, who has an excellent statement which I have read, Mr. Leavitt. I hope you will summarize it very quickly because we are almost out of time. That seems to happen with us, that we schedule too many witnesses. And I have read your statement. It is excellent.

Please proceed.

STATEMENT OF OLIVER LEAVITT, VICE PRESIDENT, ARCTIC SLOPE REGIONAL CORP., ACCOMPANIED BY WILLIAM J. VAN NESS, JR., COUNSEL, ARCTIC SLOPE REGIONAL CORP.

Mr. LEAVITT. Thank you, Mr. Chairman.

Again, my name is Oliver Leavitt. I am the Vice President of the alliance for the Arctic Slope Regional Corporation. The ASRC is the Eskimo-owned regional corporation for the 56 million acre North Slope area of Alaska.

For the record, Mr. Chairman, on behalf of the North Slope Borough Mayor, I was asked if I would submit for the record his testimony.

The CHAIRMAN. Yes. Without objection, we will put his entire statement in.

Mr. LEAVITT. I would like to submit my full testimony for the record and provide the committee with a brief summary.

The CHAIRMAN. Yes, please.

Mr. LEAVITT. The background section of my testimony identifies the three major interests of the Inupiat Eskimo people in the pending Coastal Plain decision. These interests are protecting Eskimo culture, lifestyle and subsistence use of the study area, securing permission to develop the economic potential of the 92,160 acres of privately owned lands in ANWR, and opening the coastal plain to oil and gas leasing under the proper land use planning and environmental regulations.

Mr. Chairman, if I may, I forgot to mention a very important gentleman in my life and to the Eskimo people. To my left is William Van Ness, Counsel for the Arctic Slope.

The CHAIRMAN. Where is he from?

Mr. LEAVITT. He is from Washington, D.C. and represents us here.

The CHAIRMAN. I am glad you introduced him to the committee. Mr. LEAVITT. I thought I had better do that, Mr. Chairman. The CHAIRMAN. We are always glad to have Bill Van Ness back before the committee.

Mr. LEAVITT. As you requested today's witnesses to specifically address how the oil and gas resources of the 1.5 million acre Coastal Plain Study Area can be competitively leased, explored and developed in a manner that is environmentally responsible, it is clear to my people from the more than 40 year history of oil and gas exploration and development of Alaska's North Slope that the Coastal Plain Study Area can be safely opened to leasing and exploration and development.

With that background, I would like to proceed by making some specific suggestions and recommendations for the committee's consideration.