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Administrative History of the National Petroleum Reserve-Alaska

In 1923 President Warren Harding designated 23.5 million acres on Alaska’s North Slope, northwestern Alaska, as the Naval Petroleum Reserve.   In 1976 as a result of the Arab oil embargo, President Ford signed the Naval Petroleum Reserves Production Act renaming the reserve the National Petroleum Reserve-Alaska, transferring it from the Navy to the Department of Interior, and asking that a development plan and appropriate legislation be submitted to Congress.  The Act specified that “maximum protection” be extended to wildlife during oil and gas extraction.  In 1980 Congress directed the Interior Department’s Bureau of Land Management (BLM) to carry out oil and gas leasing within the reserve.  

            Drilling of test wells for oil and gas in the reserve began in 1945, and lease sales have occurred over the past decades.  However, BLM designated several “Special Areas” in recognition of their environmental value: Teshekpuk Lake (1.72 million acres), Colville River (2.5 million acres), and the Utukok River Uplands (3.9 million acres); and it did not begin holding large competitive lease sales until the late 1990s.  For planning purposes it divided the reserve into three areas:  the Northeast with 4.6 million acres of public land, the Northwest with 8.8 million, and the South with 9.2 million.   

            In 1998 BLM prepared an Integrated Activity Plan/Environmental Impact Statement (IAP/IES) for the Northeast area and the Secretary of Interior signed a Record of Decision (ROD), which opened 87 percent of the Northeast area to leasing but did not allow leasing north and east of Teshekpuk Lake, an area particularly rich in wildlife.  BLM has leased almost1.5 million acres in the Northeast, and, after revisions to its plan, is now preparing to sell leases in the Teshekpuk area.

            In January 2005 BLM released an amendment to the IAP/EIS, which would have made possible leasing north and east of the Teshekpuk Lake. A lease sale was scheduled for the Teshekpuk area in September 2006, but, as the result of a lawsuit by Audubon and other conservation groups, a U.S. district court found the analysis of the cumulative environmental effects in the amended IAP/EIS inadequate.  In August 2007 BLM issued a Supplemental IAP/EIS in response to the court.  

            The agency released a final environmental statement and activity plan for the Northeast Area  in May 2008.  It defers additional oil and gas drilling on 430,000 acres north and east of Teshekpuk Lake for at least ten years and prohibits leases on 219,000 acres of the lake itself and its island, but it allows leasing on other lands south and east of the lake. The plan could be reversed by another administration, and conservationists will try to secure permanent protection for the deferred lands through Congress. 

BLM prepared an IAP/IES for the Northwest area in 2003, and the Secretary of Interior signed a ROD for the area in January 2004.  The plan designates a Kasegaluk Lagoon Special Area (102,000 acres) and defers leasing on 1.5 million acres near Wainwright for ten years.  However, these areas are already open for seismic surveys.  BLM has already leased 2.3 million acres in the Northwest as a whole.  

            The South area became the object of scoping for an IAP/EIS in 2005.  In the summer of 2007  BLM announced that it was discontinuing preparation of the document because of residents’ concerns  that leasing would impact resources needed for subsistence, in particular the western Arctic caribou herd, which calves in the area.  BLM noted in its announcement that the area contains only about an estimated 2.1 percent of the undiscovered petroleum in the reserve as a whole.  It harbors an estimated 27 percent of its undiscovered gas, but at this time no means of transporting the gas exist.  Large reserves of bituminous coal are also present.

            The Chukchi Sea is adjacent to the National Petroleum Reserve though not part of it.  January 2, 2008, the Minerals Management Service issued the Final Notice for Chukchi Sea Sale 193 to be held February 6. The sale would not include near-shore waters, but it would impact polar bears.  The Bush Administration postponed until, after the sale took place, a final decision, due January 9, on whether the polar bear must be protected under the Endangered Species Act. Despite an attempt to pass legislation in Congress postponing the sale, it took place as originally scheduled.  The Minerals Management Service received bids on 488 blocks, 2,304 acres in size, with the high bids apparently totaling $2.66 billion. Shell Gulf of Mexico submitted the single largest bid and the greatest number of bids.  March 9, the Center for Biological Diversity, Greenpeace, and the Natural Resources Defense Council sued the Department of the Interior for missing the January 9, legal deadline for deciding whether to list the polar bear as threatened or endangered under the Endangered Species Act.

                                                                            --Mary Byrd Davis

--last revised June 5, 2008

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