http://www.planetark.org/dailynewsstory.cfm/newsid/20492/story.htm

BLM plans to ease oil rules in Alaska reserve

USA: April 17, 2003

ANCHORAGE, Alaska - The Bureau of Land Management plans to ease 
Clinton-era regulations that barred oil and gas development in 
certain environmentally sensitive areas of Alaska's North Slope, 
officials said.

The rules, imposed five years ago in the northeast section of the 
National Petroleum Reserve-Alaska, may be overly restrictive and put 
too much potentially oil-rich territory off-limits, said Henri 
Bisson, the Alaska director for the BLM, an agency of the U.S. 
Interior Department.

Those rules were applied when the Clinton administration reopened the 
23-million-acre petroleum reserve to oil drilling after a 15-year 
hiatus. They keep oil wells out of vast Teshekpuk Lake, an area near 
the Arctic coastline that is important to migratory birds and caribou 
but also believed to have high oil potential.

Of the 3 billion barrels of recoverable oil believed to be in the 
reserve's 4.6-million-acre northeast portion, "2 billion barrels are 
currently off limits. That's how much oil we think is in the 
Teshekpuk Lake Special Area," Bisson said.

Industry advocates praised the BLM plan, which requires a formal 
environmental study before it may be put into effect.

Of all sites within the petroleum reserve, "There's the feeling that 
this is very high, if not the highest prospective acreage," said Tadd 
Owens, executive director of the pro-industry Resource Development 
Council for Alaska.

Environmentalists were critical.

"To roll back those protections seems premature and risky," said John 
Schoen, the Audubon Society's senior Alaska scientist for the Audubon 
Society.

A recent Audubon study of the western North Slope report identified 
Teshekpuk Lake as an area of extreme ecological importance, "valuable 
for nesting and molting geese, for other water birds and for 
caribou," Schoen said.

The BLM plan for eased regulations in the reserve's northeast section 
comes at the same time the agency is planning for oil leasing in a 
separate 8.8 million-acre section west of there.

It also coincides with the Bush administration's push for oil 
development in the Arctic National Wildlife Refuge, a separate area 
in northeastern Alaska.

Pam Miller, an Anchorage-based environmental consultant, 
characterized Tuesday's announcement as part of a bad trend.

"It's an outrage that there's no place on the North Slope that 
(Secretary Gale) Norton's Interior Department doesn't want to drill," 
she said.

But Peter Ditton, the BLM's associate Alaska director, said the 
environment may be adequately protected if the agency uses general 
performance standards instead of the 79 specific stipulations that 
now apply to oil and gas leases in the area.

"Most of our stipulations are prescriptive in nature. They're very 
specific. They say, Thou shall' or 'thou shall not' do specific 
things," Ditton said.

The review will also consider technological solutions to 
environmental challenges, he said. For example, the BLM could 
consider imposing seasonal restrictions on Teshekpuk Lake development 
instead of banning it outright, he said.

The National Petroleum Reserve-Alaska lies west of the North Slope's 
established oil fields. Its eastern border, the Colville River, is 
about 60 miles from Prudhoe Bay.

The reserve was established in 1923 to provide energy for the 
nation's military forces. Despite sporadic exploration since the 
1940s, there has never been any commercial oil production there. 
Industry interest was muted until the mid-1990s, when Arco Alaska 
Inc. discovered the 430 million-barrel Alpine oil field on state land 
in the Colville River Delta.

Since 1999, 1.4 million acres in the reserve's northeast section have 
been leased and the industry has drilled 13 exploratory wells, the 
BLM said.

Two of the most active explorers - ConocoPhillips (COP.N), the 
successor company to Arco Alaska, and partner Anadarko Petroleum 
(APC.N) - say they found commercial quantities of oil. They have 
submitted a development plan that could lead to production by 2008.

Other companies with leases in the reserve are TotalFinaElf, Chevron 
(CVX.N), EnCana (ECA.TO) and BP (BP.L).

Story by Yereth Rosen

REUTERS NEWS SERVICE

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