Biden moves fast to impact Alaska resource industries
On his first day in office President Joe Biden left no doubt he intends to make dramatic changes impacting Alaska miners and other resource de- velopment industries. Biden signed an executive order placing a temporary moratorium on oil and gas activity in the Arctic National Wildlife Refuge just hours after his in- auguration and one day after the Trump administration issued nine oil and gas leases in the refuge’s coastal plain. Biden is sending a strong signal that the new presidential adminis- tration will take a vastly different ap - proach to Alaska resource issues than the previous one. The key action was a vast and broad 3400-word executive order in the mantle of action to protect public health and the environment and to ad- dress climate change. “In light of the alleged legal defi - ciencies underlying the program, in- cluding the inadequacy of the environ- mental review required by the National Environmental Policy Act, the Secre- tary of the Interior shall, as appropri- ate and consistent with applicable law, place a temporary moratorium on all activities of the Federal Government relating to the implementation of the Coastal Plain Oil and Gas Leasing Pro - gram,” the order said. The moratorium is a step toward closing the refuge to drilling perma- nently with Democrats controlling both chambers of Congress and the White House. Drilling in the 19-million-acre ref - uge had made enormous gains under former President Donald Trump. A Re- publican-led Congress approved it in the 2017 Tax Cut and Jobs Act, requir - ing lease sales by the end of 2021 and 2024, achieving a decades-old dream of Alaska’s congressional delegations. The first lease sale drew limited bids and any production from those leases would be a decade or more away. The lease owners will have legal recourse if the administration moves forward with a complete closure. The order also says the Interior Secretary “shall review the program and, as appropriate and consistent
with applicable law, conduct a new, comprehensive analysis of the poten- tial environmental impacts of the oil and gas program.” Alaska’s leadership has condemned Biden’s actions. “I’m prepared to use every resource available to fight for Alaskans’ right to have a job and have a future by taking advantage of every opportunity avail- able to us,” Gov. Mike Dunleavy said in a statement. “Well, that was fast,” U.S. Sen. Dan Sullivan said in a statement. “Today, in his inaugural address, President Biden called for national unity and healing. However, just hours earli- er, his administration took their cues from radical environmentalists in is- suing punitive and divisive actions against Alaska, many other resource development states, and whole sectors of our economy.” Sen. Lisa Murkowski said she was “astounded” to see Biden put jobs at risk on his first day in office. “In the past month, we have seen significant progress with the sale, signing, and issuing of leases in the non-wilderness (coastal area of the refuge),” she said. “The Biden admin - istration must faithfully implement
the law and allow for that good prog- ress to continue.” “This is not the time to roll back our progress in ANWR, especially amid an economic downturn caused by a global pandemic,” said Rep. Don Young. Opponents have long argued drill- ing would add to global warming and endanger wildlife there. “These swift decisions will impact the long-term future for Alaskans and the country,” Kara Moriarty of the Alaska Oil and Gas Association told the Anchorage Daily News. “The demand for oil and gas is not going away in the next few decades. We stand ready to work with this administration to find common ground on future issues. Our state’s economy depends on a vibrant industry.” Beyond the moratorium, Biden can temporarily suspend the leases or de- cline to issue federal authorizations needed for oil and gas activity to pro- ceed in the refuge. Because any development is in the future, the moratorium has no imme- diate direct impact on the Alaska econ- omy, but could be a significant chilling effect on all resource development in - dustries consider new investments in the state.
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The Alaska Miner
Winter 2021
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