FOR IMMEDIATE RELEASE
Contact: Jody Weil, 907-271-4418

News Release No. 04-16c
Date: June 9, 2004
Updated: July 14, 2004

BLM Proposes New Plan for Northeast National Petroleum Reserve-Alaska

(Updated information in bold includes new public meeting dates for North Slope communities and public comment period extension.)

The Bureau of Land Management is proposing to amend its 1998 plan for the northeast corner of the National Petroleum Reserve-Alaska and make an additional 387,000 acres of land available for oil and gas leasing. While the existing plan provides for the potential of 600 million barrels of economically recoverable oil, BLM’s preferred alternative, recommends making available as much as 2.1 billion barrels of economically recoverable oil.

“The energy resources of the National Petroleum Reserve – Alaska are essential to meeting our nation’s energy demands. The National Petroleum Reserve is estimated to contain 5.9 billion to 13.2 billion barrels of oil. These resources will enhance domestic energy production and decrease dependence on foreign oil sources,” said BLM Alaska State Director Henri Bisson. “ Environmentally responsible energy development on public lands in the U.S. is a component of President Bush’s National Energy Policy, crucial to our future and essential to our way of life. In addition to providing jobs to tens of thousands of workers, energy development from public lands provides one-third of our nation’s oil and gas production," said Bisson.

“Energy is an important component of our daily lives. There are 190 million vehicles and 56 million homes that depend on oil and gas each and every day,” continued Bisson. According to the Department of Energy (Energy Information Association), a 42 gallon barrel of crude oil could produce: 19.9 gallons of gasoline, 9.5 gallons of diesel/heating fuel oil as well as various other products such as propane, jet fuel, etc.

“If you translate these numbers into the estimated barrels of economically recoverable oil under our preferred alternative, that is: 41.8 billion gallons of gasoline (at least a year’s supply of gasoline for 100 million people in the U.S.), 20 billion gallons of diesel/heating fuel oil and other petroleum based products” said Bisson.

“Under our existing plan for the northeast portion of the Petroleum Reserve, we estimate 60,000 barrels of oil production per day. At $40 a barrel, this would save approximately $2.27 million dollars per day and $830 million per year in imported oil. However, under our preferred alternative, at an estimated 200,000 barrels of production, there would be a dollar savings of about $7 million per day or $2 billion per year,” said Bisson.

“While these savings are significant, we also recognize the significance of the subsistence and wildlife resources. In fact, we have taken steps to expand protections in some areas while providing options for oil and gas activities. The goal of this analysis is to strike a balance between protecting resources and allowing reasonable development,” said Bisson.

“The NPR-A is rich in wildlife resources and important to the subsistence traditions of the Alaska Natives of the region,” said U.S. Fish and Wildlife Service Alaska Regional Director Rowan Gould. “The Bureau of Land Management has worked with us in addressing these issues as this proposal was developed. Once the public process has run its course and one of the proposed alternatives is selected, we look forward to continuing to work closely with BLM, and with other stakeholders, to make sure that any future oil and gas leasing or development is conducted in a manner that will protect those wildlife resources and respect the rights of those subsistence users,” Gould added.

In addition to area wide general lease stipulations and required operating procedures, site-specific stipulations would be applied to protect rivers, deep-water lakes, Teshekpuk Lake, sensitive goose molting areas, Teshekpuk Lake Caribou Habitat Area, Coastal Area, the Colville River Special Area and the Pik Dunes. Under the agency’s preferred alternative (Alternative B), approximately 96 percent of the planning area would be available to oil and gas leasing. This includes making about 75 percent of the high oil and gas potential area available whereas the existing plan only made 56 percent of the high potential area available.

“We received invaluable assistance from North Slope residents and other public entities. As a result of our numerous discussions and meetings, we are proposing to keep 213,000 acres of sensitive goose molting and caribou habitat northeast of Teshekpuk Lake off-limits to oil and gas leasing,” Bisson said. “We also propose expanding one quarter-mile buffers to include all the deep-water lakes south of the Teshepuk Lake and establishing new setbacks to the Tingmiaksiqvik (Ublutuok) River. In addition, the 1998 subsistence consultation buffer zone has been expanded to include the entire planning area, not just portions of several buffers,” said Bisson.

Alternative A, the No Action Alternative, keeps approximately 87 percent of 4.6 million acres available for oil and gas leasing and calls for no change from the status quo governed by the 1998 Record of Decision. Alternative C makes 100 percent of 4.6 million acres in the planning area available for oil and gas leasing. Natural and cultural resources would be protected under all alternatives, but the nature, number and scope of mitigation requirements would vary between alternatives.

The draft plan can be reviewed on line at www.ak.blm.gov. Printed copies are being distributed to major libraries throughout the state. Digital copies on compact disk (CD) and a limited number of printed copies can be obtained by calling (907) 271-5960 or obtained over-the-counter at BLM offices in Fairbanks and Anchorage during business hours. Public meetings are scheduled as follows:

BLM has extended the public comment period through August 23, 2004.

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