ALASKA STATE LEGISLATURE SENATE RESOURCES COMMITTEE

SEN. CATHY GIESSEL

Chair Sen. John Coghill, Vice-Chair Sen. State Capitol, Room 427 Sen. Kevin Meyer Sen. Natasha von Imhof Juneau, AK 99801-1182 Sen. Sen. (907) 465-4843 ______April 12, 2018

GMT2 Draft SEIS Comments Attn: Stephanie Rice, GMT2 Project Manager Bureau of Land Management 222 West 7th Avenue, #13 Anchorage, AK 99513

Ms. Rice,

I write you in my capacity as the Chair of the Resources Committee. I strongly support the Draft Supplemental Environmental Impact Statement (DSEIS) to the Alpine Satellite Development Plan (ASDP) for the proposed Greater Moose’s Tooth 2 (GMT2) development project within the boundaries of the National Petroleum Reserve-Alaska (NPR-A). I also firmly support moving forward with Alternative A, the Bureau of Land Management’s (BLM) proposed alternative, and the one supported by the project sponsor.

The NPR-A was constituted to serve as a strategic reservoir of hydrocarbons in service of the United States’ national interest. The NPR-A’s role is reflected in the Department of Interior’s Secretarial Order 3349, which directs the Department to promote American energy independence and economic growth.

GMT2 has been reviewed extensively by federal and state regulating agencies and was part of the 2004 Alpine Satellite Development Plan Final Environmental Impact Statement (EIS), when it was then known as Colville Development 7 (CD7).

The reservoir GMT2 is trying to reach with the development project, the Spark-Rendezvous accumulation, is the largest reservoir in the northeastern NPR-A, with an estimated recoverable deposit of 120-200 million barrels of oil and condensate, as well as 1.9 to 3 trillion cubic feet of natural gas. The targeted reservoir, with an estimated peak production rate of 30,000 barrels per day, would be a significant addition to the index of projects on Alaska’s North Slope (ANS) basin.

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The preferred alternative, Alternative A, is the most economic and environmentally sustainable path to support the success of GMT2. Alternative A proposes a smaller total gravel footprint of 78 acres, while Alternatives B and C (a different road alignment and no road alternative, respectively) at 87 and 92 acres, are noticeably larger. Alternative A proposes nearly a third less gravel than Alternative C, despite proposing a year-round gravel road. Alternative A proposes using nearly half as much water as Alternative C and will not require fresh water every year after construction for the purposes of building extensive ice roads. Finally, Alternative A does not propose the construction of an airstrip at GMT2 resulting in minimal air traffic, which is one of the most significant sources of disturbance for subsistence hunting opportunities.

The proposed road construction under Alternative A would be built to minimize caribou disturbance and support herd crossing success of the terrain, and the road plans have numerous emergency pullouts and subsistence hunting access points. Alternative A’s total projected miles of vehicular traffic would be over one million miles less than Alternative C, the roadless alternative. These and other factors clearly show Alternative A strikes the ideal balance between harvesting a large reservoir in the northeast NPR-A while reducing the environmental footprint compared to all other viable alternatives.

The development of GMT2 is necessary for the State of Alaska. The state is in the deepest recession since the 1980’s, and jobs in the oil and gas sector are the single largest multiplier of dollars into our communities. For every oil and gas sector job created, an additional twenty jobs are indirectly created due to the intense multiplying power these high wage, family supporting occupations generate. The proposed capital costs for GMT2 are $1.5 billion, representing a significant investment. This commitment of capital projects confidence in investing for the long- term in Alaska.

In closing, I reiterate my support for the DSEIS to GMT2, and specifically for Alternative A. The development of more opportunities in the ANS will restore Alaska’s standing as a world-class hydrocarbon jurisdiction and contribute to the national interest by conforming with the goals outlined in Secretarial Order 3349.

Respectfully,

Senator Cathy Giessel Chair, Alaska Senate Resources Committee

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