RESOURCEOct2003 REVIEW APERIODIC PUBLICATION OF THE RESOURCE DEVELOPMENT COUNCIL FOR ALASKA, INC. www.akrdc.org This Edition ALASKANS SUPPORT PROPOSED Sponsored By ConocoPhillips Alaska ROADLESS RULE EXEMPTION Wells Fargo

ocal communities, Alaskans from all King Cove walksL of life and businesses representing vir- tually every industry and economic sector in Road Issue Alaska responded to RDC’s Action Alert in August urging support for an Alaska exemp- tion from the Roadless Area Conservation Resurfaces Rule. The Alaska Municipal League (AML), a The controversial road link statewide organization of over 140 cities, between King Cove and Cold boroughs and unified municipalities repre- Bay is back on center stage with senting over 98 percent of Alaska residents, the release of a draft environ- was one of many organizations across Alaska mental impact statement (DEIS) supporting proposed rulemakings to exempt and a new round of public hear- the Tongass and Chugach national forests ings. from the roadless rule. In September, RDC’s Projects “The application of the roadless rule to the Coordinator Jason Brune testi- Tongass and Chugach would stifle future fied in favor of the DEIS economic development opportunities in a Preferred Alternative which state that already has more land in protected calls for a 17.2 mile, one-lane status than all other states combined,” said gravel road with a hovercraft Kevin Ritchie, Executive Director of AML. link to Cold Bay’s all-weather Some of the nation’s largest environmental airport. The option, one of sev- groups made it a top priority to mobilize If Alaska is granted an exemption to the roadless rule, its two eral outlined in the DEIS, is also their members to block the proposed exemp- national forests will continue to be managed with an em- favored by the Aleutians East tion for the nation’s two largest forests, de- phasis on preserving the wild character of the land. No com- Borough. spite the fact that both are among the most mercial logging would occur in the Chugach and only 3 Another option would elimi- percent of the timber in roadless areas of the Tongass would protected in America and would remain so nate the hovercraft entirely by be available for logging. even with the exemption. RDC rallied its members to support the exemption. (Continued to Page 8) exemption in order to preserve multiple use “We understood that with the passage of ANILCA in 1980, there would be no further opportunities in the dwindling areas of the I NSIDE Tongass and Chugach that remain open to a land withdrawals,” wrote Juneau Mayor Sally Smith in comments to the Forest variety of activities ranging from public ac- Mining Prospects 3 cess, transportation, tourism, power trans- Service. “ANILCA was meant to Roadless Exemption 4 mission grids, recreation, mining, timber strike a balance between protected harvest and other public uses. areas and those managed for multiple Alaska Exports 5 In addition to AML, the City and Borough use,” Smith said. “Application of the Alaska Development 6 of Juneau, Ketchikan, Wrangell, Seward, roadless rule would destroy that bal- Environmental Protection 7 ance, further compromising the eco- Valdez and the Kenai Peninsula Borough Valdez Board Tour 9 nomic and social needs of the people of were among Southeast and Southcentral President’s Message 10 Alaska communities to support the Alaska.” Conference Information11 (Continued to Page 4) Resource Development Council Executive Committee Officers 121 W. Fireweed, Suite 250 President John Shively Resource Review is the official periodic publication Sr. Vice President Mark Hanley Anchorage, AK 99503 of the Resource Development Council (RDC), Phone: (907) 276-0700 Vice President Jack Williams Fax: (907) 276-3887 Secretary Chuck Greene Alaska's largest privately funded nonprofit economic Treasurer Stephanie Madsen E-mail: [email protected] Past President Chuck Johnson development organization working to develop Website: www.akrdc.org Staff Alaska's natural resources in a responsible manner Material in this publication may be reprinted without permission provided Executive Director Tadd Owens and to create a broad-based, diversified economy appropriate credit is given. Deputy Director Carl R. Portman Writer & Editor Carl Portman Projects/AMEREF Coordinator Jason Brune while protecting and enhancing the environment. Finance/Membership Billie Rae Gillas

Page 2 October 2003 Resource Review www.akrdc.org A MESSAGE FROM THE EXECUTIVE DIRECTOR TADD OWENS TWO MAJOR MINING PROJECTS CONTINUE TO MOVE FORWARD

Optimism is growing in Alaska’s mining industry as two developed as an underground major projects continue to move toward completion — the mine with a 2,400 tons per day proposed Pogo Gold Mine northeast of Delta Junction and mill. Coeur Alaska expects to the proposed Kensington Gold Mine north of Juneau. Each produce an average of 175,000 of these two projects will bring significant new economic ben- ounces of gold annually for 10 efits to Alaska. years. Kensington is located Both projects are nearing the end of comprehensive, multi- in the Tongass National Forest Coeur Alaska is proposing to develop million dollar environmental reviews and exhaustive public about 45 miles north of the Kensington gold mine in the processes, and both Teck–Pogo, Inc. (Pogo) and Coeur Juneau. Coeur has already in- Tongass National Forest near Juneau. Alaska, Inc. (Kensington) deserve recognition for their out- vested $150 million in the project — more then $25 million has standing work to move these projects forward. been spent on environmental studies and permitting alone. Pogo is located on state lands about 85 miles east of Coeur Alaska is working primarily with the U.S. Forest Fairbanks. It is a high-grade gold deposit which will be de- Service, EPA and DNR on permitting. The draft supplemen- veloped as an underground mine with a 2,500 tons per day tal EIS will be available in early November of this year and the mill. Teck-Pogo is expected to spend be- public comment period will run through tween $200 million and $250 million in early 2004. If final permitting goes well, capital costs for the project. Production is with continued strong gold prices and a estimated between 375,000 and 500,000 positive feasibility study, Coeur Alaska ounces of gold per year. could begin construction as early as 2004. Teck-Pogo is working with the Based on Coeur Alaska’s most recent de- Department of Natural Resources (DNR), velopment plan, Kensington will employ the Environmental Protection Agency 325 people during construction and 225 (EPA) and the U.S. Army Corps of during operation. Coeur Alaska estimates Engineers among other agencies for the approximately 180 indirect jobs will be proper permits. A final environmental im- The work camp at the proposed Pogo mine is lo- created by the project. Annual payroll pact statement (EIS) for the Pogo project is cated 85 miles southeast of Fairbanks. from the mine will be approximately $16 expected late this year allowing construc- million and annual taxes are estimated to be tion to begin as early as 2004. Nearly 50 state and federal per- $1 million. mits and approvals are required for project approval. Pogo and Kensington will be significant additions to Approximately 500-700 employees will be needed during Alaska’s private sector and will provide vital diversification to the mine’s construction. Once completed, the Pogo Gold the Interior and Southeast regional economies. These projects Mine will employ 300 workers during operation for an esti- generate wealth for Alaska and increase our state’s valuable ex- mated 11 years. Teck-Pogo is working aggressively with local ports. Teck-Pogo and Coeur Alaska deserve applause for their agencies to train Alaska residents for these jobs. commitments to responsible development, local hire and in- Kensington is also a high-grade gold deposit which will be vestment in Alaska.

ALASKA MINING LEGEND, CHUCK HERBERT, PASSES AWAY IN KONA, HAWAII

Former RDC President Charles F. Fairbanks, served Navy Seabees and rose to the rank of Herbert passed away at the age of 93 on as deputy com- lieutenant commander while building September 3 in Kona, Hawaii. missioner of the camps, airfields and landing docks Herbert earned a bachelor’s degree in Department of throughout the Pacific. mining from the University of Alaska Natural Herbert was a long-time board mem- Fairbanks in 1934 and worked as a Resources, 1963- ber of RDC and served as its president miner in Interior Alaska from 1928-37. 67, and as commissioner of DNR, 1970- in 1981 and 1982. He was a major force He was supervising engineer for the 74. in Alaska mining circles as he not only division of mining of the While attending college in Fairbanks prospected all over Alaska, Canada, Reconstruction Finance Corporation during the early 1930s, Herbert hiked South America and Africa, but ran a from 1937-40, and after serving in the between the Interior city and number of successful gold operations. Legislature, was in the U.S. Navy from Anchorage on snow shoes and back He was truly dedicated to the responsi- 1942-46. From 1946-61 he worked as a again, delivering mail. During World ble development of Alaska’s natural miner and consultant in Anchorage and War II, he was commissioned by the resources.

(907) 276-0700 October 2003 Resource Review Page 3 “Unlike many of the other restrictions, which directly damaged the timber industry then rippled through the rest of the economy, the roadless rule has been more of an equal opportunity destroyer.” - Skip Reierson, Harbor Enterprises

Unlike most Lower 48 forests, there ALASKANS SUPPORT EXEMPTION are few roads in Alaska’s national forests providing public access for recreation and other activities.

under these plans, manage- restrictions, which directly wide scale industrial clear- (Continued from page 1) ment emphasis would con- damaged the timber industry cutting, even with the exemp- Smith warned the roadless tinue to focus on preserving then rippled through the rest tion, logging would be rule would “further drive a the wild character of the for- of the economy, the roadless banned from 95 percent of stake in the heart of opportu- est. Cottle said the exemption rule has been more of an national forest lands in the nity” for communities strug- is vital to communities adja- equal opportunity de- state. Even then, any new de- gling to sustain local cent to the forests as it “will stroyer,” said Skip Reierson velopment would be subject economies in a region where assure that the people of of Seward-based Harbor to comprehensive environ- 73 percent of the land is des- Alaska will have the opportu- Enterprises and Petro Marine mental review and a labori- ignated national forest and nity to grow and develop re- Services. “By virtually pro- ous public process. only 22 percent of the forest sponsibly” on lands intended hibiting access, it effectively To review RDC’s compre- itself remains open to limited for multiple use. eliminates recreation, hensive comments on the development. Governor Murkowski, in a tourism, mining, power issue, go to: Kenai Peninsula Borough August letter to the Forest transmission and any other www.akrdc.org/alerts/roadle Mayor Dale Bagley told the Service, warned that applica- multiple use activity,” ssexemptioncomments.html. Forest Service the “exemp- tion of the roadless rule in Reierson wrote the Forest tion will assure that citizens Alaska would essentially dic- Service. “Not coincidentally, “The exemption of the Kenai and the State of tate management of 99 per- these are among the new eco- will assure that Alaska will continue to enjoy cent of the Chugach and 90 nomic mainstays of the com- the traditional multiple uses percent of the Tongass as munities adversely affected citizens of the Kenai of the Chugach National wilderness and essentially by the slow and steady stran- and the State of Forest that have been in place closed to development. gulation of the timber indus- for generations.” Bagley Murkowski said the Clinton- try.” Alaska will continue warned “only bad results for era rule violates state and fed- Comments supporting the our economy and communi- eral laws, but the exemption exemption were also filed by to enjoy the tradi- ties” will occur if the forests would resolve state concerns. the Alaska Power tional multiple uses are not exempt from the rule. Many Alaska businesses Association, the Anchorage Valdez Mayor Bert Cottle from across the economic Chamber of Commerce, of the Chugach noted that even if an exemp- spectrum voiced strong sup- Chugach Alaska Corp- National Forest that tion is provided, the Chugach port for the exemption. The oration, Usibelli Coal Mine, and the Tongass will continue president of Alaska’s largest Holland America Lines and have been in place to be managed by existing independent petroleum mar- scores of other organizations, for generations.” forest plans that were devel- keter and distributor listed companies, and individuals. oped through an exhaustive the roadless rule among the While many Americans be- - Mayor Dale Bagley, public planning process “most destructive and egre- lieve Alaska’s two national based on years of scientific gious” land restrictions ever. forests have little or no pro- Kenai Peninsula Borough review. Cottle explained that “Unlike many of the other tection and are threatened by

Page 4 October 2003 Resource Review www.akrdc.org Alaska Exports Rise, Reverse 2002 Decline

The total value of Alaska’s Alaska’s increase in exports Korea is also bringing posi- port market list for 2003, im- exports surged 13 percent in was led by seafood, which in- tive results, she said. Exports porting over $62 million of the first half of 2003, com- creased $56 million, or 9 per- to South Korea led all coun- Alaska’s goods and sustain- pared to a 1 percent decline cent. Exports of fertilizers tries in terms of dollar in- ing 26 percent growth over for the same period last year. increased 25 percent, wood crease at $117 million, or 57 2002. Top exports to China “Double-digit export products rose 50 percent and percent. Seafood exports to include seafood, petroleum growth is an amazing accom- precious metals soared 278 South Korea improved $85 products, and fishmeal. plishment for any economy percent in the first six million, or 68 percent. Alaska fish producers are in the world, and is especially months of 2003 compared to Fertilizer exports climbed now able to sell all of the fish, gratifying for a Pacific Rim the same time period in 2002. $14 million, or 57 percent. including once-discarded state like Alaska,” said Japan remains Alaska’s “The recent Pac-5 parts that are now sold for Governor Frank number-one trading partner, Conference we organized re- use as animal feed. Murkowski. “We should all with seafood exports reach- inforced good business rela- Switzerland was second in be proud of this significant ing $278 million in the first tions and will help to assure dollar growth, increasing $39 achievement,” Murkowski six months of 2003. In that an upward swing of exports million and first in percent- said. “I believe that our same period energy sales in- to South Korea, Alaska’s sec- age terms, rising 281 percent. efforts to improve and ex- creased $13 million, or 14 ond-largest trading partner,” Switzerland is now ranked pand access to resources in percent; wood products said Johnson. Pac-5 is an fifth on Alaska’s trading our state will help continue climbed $18 million, or 94 economic conference of partner list due to Alaska’s this kind of economic percent; and minerals rose $5 South Korea and five other strong exports of precious progress.” million, or 95 percent. U.S. states bordering the metals to the nation, with The state’s January to June “Seafood continues to Pacific Ocean. gold accounting for nearly all 2003 trade figures show the drive our export numbers,” Alaska’s trade with Canada the increase. value of total Alaska exports said Margy Johnson, director rose 49 percent, or $28 Export of services and ex- for the first half of the year at of the Department of million, for the six-month pertise is also important to $1.15 billion — $130 million Community and Economic period, for the third most Alaska. Russia, with its higher than in the first half of Development’s Division of significant increase in both Sakhalin oil and gas develop- 2002. At the same time last Trade and Development. dollars and percentage of ment projects, presents year, total exports had de- “Japan remains critically im- growth. The main growth Alaska with lucrative export clined by 1 percent from the portant to our export picture.” resulted from increasing opportunities for services in first six months of the previ- The state’s active promo- mineral exports. China arctic engineering and oil- ous year. tion of trade with South ranked fourth in Alaska’s ex- field support activities.

AMEREF Needs Your Help AMEREF BOARD MEETS WITH LT. GOVERNOR LOREN LEMAN The Alaska Mineral and Energy Resource Education Fund (AMEREF) will hold its largest fundraisers of the year in conjunction with the Alaska Miners Association (AMA) Conference November 4-7. Wells Fargo has once again generously offered a $5,000 match- ing grant and the Rasmuson Foundation has offered a $7,500 matching grant. Donations are being accepted online at www.ameref.org or can be made in per- son at the conference. In addition, prizes are being requested for the annual raffle which will occur at the culmination of the AMA Conference. Contact staff at (907) 276-0700 to donate a prize or to buy tickets. Private donations are partic- ularly important this year as funding for the State Department of Education's AMEREF board members meet with Lt. Governor Loren Leman to discuss creative solutions for maintaining a long- portion of the partnership was elimi- standing partnership between the State of Alaska Department of Education and the private sector in providing a nated by Governor Murkowski's veto. balanced resource education program to Alaska schools.

(907) 276-0700 October 2003 Resource Review Page 5 Guest Opinion ALASKA DEVELOPMENT IS A Paula P. Easley CHALLENGE AND OPPORTUNITY

Can “a handful of people” overcome ing experts: Identify your most promis- thought, the matter was finally settled. problems of isolation, lack of capital, ing mineral prospects so we can assure Wrong again. uncertain resource base, trade barriers they’re not included within conserva- If today’s preservation efforts succeed, and climate and develop their economy? tion system boundaries; the experts Alaskans face millions more acres Hugh Johnson and Harold Jorgenson complied. named endangered species habitat, asked this question in their 550-page As negotiations progressed during the wilderness withdrawals for the Arctic study “The Land Resources of Alaska.” ensuing tug of war between state, coastal plain and in NPR-A, The study was undertaken by The Native, federal, environmental and de- roadless/wilderness areas covering most Conservation Foundation 40 years ago, velopment interests, no one trusted any- of the Tongass and Chugach, access to when “conservation” meant wise use of one else. Secret meetings were held by ocean resources strictly limited, RS 2477 resources, not “preservation.” A foun- all, new map versions routinely state roads legislated away, hundreds of dation purpose was to “ascertain the appeared, rumors abounded. new wild and scenic rivers, more na- most effective methods of making re- Then, development interests heard tional/international parks and heritage sources available and useful to people.” sites, more anti-development lawsuits, Their 1963 conclusions still apply: “So who will help Alaska more private acreage amassed by land “We would like to repeat that [Alaska’s] trusts and more restrictions on dwin- economic development is a national achieve its potential? Not dling multiple-use lands. challenge and a national opportunity. It California, Oregon or This is decidedly not the kind of help will need every possible type of assis- Johnson and Jorgenson had in mind. tance from its sister states and its parent Washington, which benefit So who will help Alaska achieve its national government during the next enormously from Alaska ac- potential? Not California, Oregon or few years. tivity and whose leaders Washington, which benefit enormously “At the same time, even while it re- from Alaska activity and whose leaders ceives this assistance, it will send forth consistently vote against our consistently vote against our issues. Not an ever-increasing flow of goods and issues. Not the manufactur- the manufacturing states that make services to swell the benefits to the nothing but money from Prudhoe Bay United States and the free world. ing states that make nothing development and would also from Alaska’s development is, therefore, of but money from Prudhoe ANWR and a gas pipeline. And cer- concern to both the state and the nation; Bay development and would tainly not environmentalists and their both share responsibility for its future states’ politicians who want Alaska pre- growth, its future welfare and also its fu- also from ANWR and a gas served as their “national treasure” at no ture problems.” pipeline. And certainly not cost to them. For readers living elsewhere back Alaska’s political leaders, here and in then, some background. Major Alaska environmentalists and their the nation’s capital, are united in insist- oil discoveries had convinced Congress, states’ politicians who want ing our young state has a right and re- after years of debate, that the territory Alaska preserved as their sponsibility to support itself and had the natural resources to support an contribute to the national well-being. economy. After finally gaining state- “national treasure” at no They note, “Our most precious lands hood, we were wildly optimistic about cost to them.” are preserved, and our environmental the future. We would prove Alaska record is unmatched. We can and must would not be the financial burden leave our children and grandchildren a Congress feared. We had big plans. strange bumps in the night; it became legacy of opportunity and prosperity on They didn’t include the Carter-Andrus clear they had been “had.” Promising which to build their own futures.” Once team’s later blocking of state and Native mineral deposits they’d identified in again, optimism fills the air. land selections or declaring much of the good faith were inside, not outside, the As John Barton of Montana puts it, state “national monuments,” actions CSU boundaries. Other prospective such a legacy will have far more impact that halted evaluation and uses of these lands and transportation routes were on their lives than “the purple flowered lands for decades. Nothing would purposely blocked by parks or wilder- pondweed or pimple-nosed peccary ever happen until federal designations were ness areas — and still are. Dirty pool? would.” Granted, the forces that think made; the battle was on. You decide. differently are powerful, but so are the Environmental groups with varying With 150-plus million acres in CSUs rest of us. interests coalesced, selecting their most and the Alaska Lands Act public law in Paula Easley is a former executive director of the prized lands for conservation system 1980, the environmental coalition right- Resource Development Council. She writes monthly units (CSUs). The feds told Alaska min- fully claimed a huge victory. At least, we for the Anchorage Daily News. Page 6 October 2003 Resource Review www.akrdc.org Guest Opinion Ernesta Ballard AGGRESSIVE AGENDA FOR ENVIRONMENTAL “My goal is to PROTECTION AND COMPREHENSIVE provide less interfer- REGULATION AT DEC ence with those who have the will and the Last winter we began a major review and regulatory program for municipal of our regulatory programs to see if they waste. Our goal is to clarify the public capacity to perform, can achieve these goals. Our review in- interest in municipal (domestic) solid and more consequence cludes the following: waste, and design a program that can ac- Air Permit Reform: Air permit re- complish the same level of protection for those who fail to form is a priority. Our current permit- throughout the state. ting process is needlessly complex and Mining Rule: We want to establish the make the commitment. drawn out. We need a clearer and more authorities, standards and regulatory I seek to influence logical distinction between major and methods necessary to permit mines in minor sources of emissions. Terms and Alaska in one rule. This project must be action in a way that conditions will closely mirror federal coordinated with water program ration- programs and all permit exemptions alization (below) to achieve consistency will achieve environ- available in federal law will be included. in groundwater standards, use of state mental protection Increased staff is already working to re- waters for treatment works, and other duce the time from application to permit areas of overlap. Our goal is to have a throughout our vast completion, with a goal of 90-110 days statutory proposal ready by the coming for construction permits. DEC’s air op- legislative session. state, not just in the erating permits backlog has been cut in Water Program Rationalization: We places that are easy to half since December 2002. The remain- are evaluating current authorities and ing 26 backlogged operating permits will operating practices to identify gaps in reach.” be issued by November 30, 2003. The protection of water resources to ensure majority of the regulatory reform will all water resources are consistently pro- be accomplished by May 2004. tected. New regulations will be based Governor Murkowski has an aggres- Spill Prevention and Response: We on risk and will establish self-imple- sive agenda for improved environmental are streamlining oil spill contingency menting “permits-by-rule,” increase the protection and more comprehensive plan regulations to make it easier for op- use of general permits, reserve staff time regulation. His goal is an improved de- erators to comply with state require- for complex permitting and increase use livery of the high state and federal stan- ments. Changes proposed for oil and of on-line permitting. Work will require dards set to protect the air, land and gas exploration and production facilities adjustments to water quality standards water. The resulting changes at the include a performance standard for con- (18 AAC 70) and permitting require- Department of Environmental trolling blowouts as opposed to mandat- ments (18 AAC 72). This project will be Conservation will affect the efficiency ing relief wells. Another change coordinated with the NPDES primacy and scope of our programs, not the un- includes the use of non-mechanical project. derlying protective standards. cleanup technology when a response is Triennial Review: Every three years, My goal is to provide less interference otherwise not possible because of envi- the federal Clean Water Act requires with those who have the will and the ca- ronmental conditions such as broken DEC to conduct a comprehensive re- pacity to perform, and more conse- ice. view of the Water Quality Standards quence for those who fail to make the National Pollutant Discharge (WQS) in 18 AAC 70. This Triennial commitment. I seek to influence action Elimination System (NPDES) Program Review helps set pollution limits by in- in a way that will achieve environmental Primacy: The Governor will seek legis- tegrating the most current information protection throughout our vast state, lation to assume full responsibility for on state and federal requirements and not just in the places that are easy to regulating discharges to Alaska’s waters, current science and technology. This reach. I want to minimize the burden of such as those from municipal treatment process solicits agency and public input compliance by offering such options as works, factories, and mines. He believes on which water quality standards or im- self-implementing, best practices alter- that permitting, compliance and en- plementation guidelines in the regula- natives to permitting, and on-line access forcement, now done by EPA, should be tions need revision. DEC has to department programs. I want to as- done by Alaskans who are knowledge- incorporated comments and is preparing sure all stakeholders that enforcement able about Alaskan conditions. a list of priority topics and a schedule of will be the predictable consequence of Solid Waste: DEC is undergoing a regulations revisions. failure to comply. comprehensive review of the statutory Ernesta Ballard is Commissioner of the Alaska Department of Environmental Conservation. (907) 276-0700 October 2003 Resource Review Page 7 Guest Opinion WISE USE OF ALASKA’S Lt. Governor Loren Leman NATURAL RESOURCES

I recently welcomed Interior Secretary Norton and I discussed Wildlife Refuge (ANWR), has a portion Secretary Gale Norton to my home- Alaska’s commitment to responsible, specifically set aside as a special study town of Ninilchik for the National balanced resource development. Alaska area for oil and gas development. I vis- Wildlife Refuge Centennial Celebration. is home to a vast wealth of natural re- ited ANWR recently with Robert Card, We toured wildlife exhibits, visited with sources, which contribute to a large part Under Secretary for the Department of locals and learned more about the of our State’s history. From the Energy. He was in Alaska to see this National Wildlife Refuge System. Chilkoot Trail to Prudhoe Bay, Alaska’s refuge, to meet the people who live Alaska’s 16 National Wildlife Refuges resources have long been sources of leg- within it at Kaktovik and to tour various constitute more than 80% of the total ends and income. I was pleased to learn oil and gas facilities on the North Slope. land of our nation’s 540 refuges. that Secretary Norton shares my belief These types of trips go a long way to- Founded in 1903 by President Theodore that careful environmental planning and ward educating public policy makers. Roosevelt, the National Wildlife Refuge the application of advanced technologies As a native citizen of this state and a System now encompasses 95 million can help Alaska reach its goals in energy civil/environmental engineer, I share the acres and is managed by the U.S. Fish development. concerns of all Alaskans that our natural and Wildlife Service. It is the only fed- Alaska’s refuges are unique in that assets not be misused. Our eral system of lands dedicated to con- fishing and hunting are allowed on Administration is committed to devel- serving wildlife. them, and one, the Arctic National oping Alaska’s resources responsibly.

King Cove Road Resurfaces that has attracted strong op- (Continued from Page 1) position from environmental building a 33-mile road to groups. Cold Bay, but it would take Brune, the RDC Projects an act of Congress to allow Coordinator, told federal construction since much of it regulators at the September would be built inside a desig- hearing in Anchorage that nated Wilderness area of the the road should be built for Izembek National Wildlife medical, economic and social Refuge. The Preferred reasons. In addition, an op- Alternative would place the tion supported by environ- 17-mile gravel road just in- mentalists to build a six-mile Residents of the fishing village of King Cove have been battling for years to side the refuge on private road would double the water build a road to nearby Cold Bay for medical, economic and social reasons. lands owned by King Cove crossing of the hovercraft, Corporation, but it would exposing it to higher winds it first surfaced. A number of weather to clear before being stop at the Wilderness and waves. Meanwhile, oth- local residents and medical airlifted. boundary where a hovercraft ers at the hearing, including personnel have been killed in Borough Manager Bob terminal would be built for local residents, voiced strong plane crashes that occurred Juettner is guardedly opti- the eight mile water crossing support for the all-land, 33- in marginal weather condi- mistic the Preferred to Cold Bay. mile road option, claiming it tions when people were fly- Alternative will be approved RDC joined the Aleutians would offer the highest ing out of King Cove during as there have been many East Borough in supporting safety and reliability factor. medical emergencies. In modifications to make it the Preferred Alternative, The King Cove issue other cases, severely ill peo- compatible with the refuge. noting it represents a reason- attracted national media ple have had to wait days for A decision could come in able compromise to an issue attention six years ago when the region’s notoriously bad October.

RDC SUPPORTS RDC is supporting federal legislation spon- settled since 1971, but also provide a much- sored by Senators Lisa Murkowski and Ted needed economic stimulus to Southeast Alaska by SOUTHEAST Stevens that authorizes the transfer of lands be- facilitating the development of the Kensington tween both Cape Fox Corporation and Sealaska gold mine project. The national forest lands in the ALASKA LAND and the Forest Service. If passed, S. 1354 will not proposed exchange are zoned for mineral devel- only resolve some of the Cape Fox and Sealaska opment. The exchange would form a contiguous EXCHANGE land entitlement issues which have remained un- block of private land managed as a mining district.

Page 8 October 2003 Resource Review www.akrdc.org tem designed to help tankers safely RDC Board Tours Valdez navigate Prince William Sound. A powerful tug tethered to the stern Last month the annual RDC small boat harbor expansion, the of a tanker provides immediate as- Board community outreach trip site of a proposed small boat har- sistance if the tanker loses power took place in Valdez. Board mem- bor, a 21-bed hospital now under or has steering problems. A second bers were treated to an extensive construction, a new junior high vessel stays with the tanker in close community tour hosted by Mayor school, airport improvements, a escort during the transit through Bert Cottle. RDC visited $100 mil- new ferry terminal and dock, and the Sound. Pictured at top left are lion in local, state and federal pub- new housing. Board members also RDC board members aboard the lic works projects, including the toured Alyeska’s Ship Escort $18 million, highly-maneuverable Response Vessel System (SERVS). tug “Aware.” They are viewing the SERVS’ mission is to prevent oil deployment of containment boom spills from tankers, and to respond during a drill in Port Valdez. In the should a spill occur. The founda- inset, Rick Rogers views the engine tion of Alyeska’s spill prevention room of the Aware. To the right of program is the tanker escort sys- the inset, Carol Fraser and Elizabeth Rensch from the deck of the Aware. RDC President John Shively is pictured above in the bridge of the Aware. Below, board members view a tanker being loaded with North Slope crude at the TAPS Valdez Marine Terminal.

Above, Valdez Mayor Bert Cottle shows RDC board members a construction site where a new dock and ferry terminal is being built in Valdez. At right, Wrangell-St. Elias National Park Service Ranger Vicki Snitzler takes RDC on a tour of the park’s new Visitors Center in Copper Center. At 13.2 million acres, Wrangell-St. Elias is the largest park in America and is bigger than many states and some countries, including Switzerland. It also boosts nine of the tallest 15 peaks in North America.

(907) 276-0700 October 2003 Resource Review Page 9 A Message From The President John Shively GOVERNOR MURKOWSKI AND LEGISLATURE DESERVE CREDIT IN REFORMING PROCESS, MAKING ALASKA WARMER PLACE FOR BUSINESS

As this is my first column as President of RDC, tions add unnecessary costs and uncertainty to I should start off by thanking the Board of development projects and other businesses, for Directors for giving me the honor of serving in that matter. this position. I have long admired the work of this Credit needs to be given to Gov. Murkowski organization. When I served as Commissioner of and the legislature for addressing this situation Natural Resources, RDC worked closely with the head on. There were a variety of actions taken to department on many resource issues and legisla- help simplify the permitting system, and I would tive efforts. RDC always brought a reasoned like to focus on two. approach to the table. The first is SB 74, which extended the time for Being President is a particularly gratifying submitting oil spill contingency plans from every assignment because of the outstanding staff we three years to every five years. The additional two have working for us. years isn’t much, and an argument could certainly Tadd continues a line of be made for a longer period, but the change in law distinguished executive was a very positive step. It means that in a 15-year “Simplifying the directors. Carl is more of period, a company need submit only three plans an institution than an em- rather than five. permitting process does ployee. Jason brings us all The change reduces the workload and costs for the energy and enthusiasm both industry and government, at a time when not mean, as some critics of youth, and Billie Rae government needs to reduce costs and Alaska charge, lowering our keeps the trains running needs to reduce the cost of doing business. The on time. It is a great team, change also reduces litigation risk, a major com- standards of environmental and I consider myself for- ponent of risk analysis for Alaskan projects. tunate to be working with The second piece of legislation I want to men- protection.” them. tion is SB 142, which designates the Department I would like to review of Natural Resources (DNR) as the lead agency some of successes of the for development projects. The legislation does not last legislative session give control over the decisions legislatively from the perspective of RDC and our longstand- granted to other agencies. However, the legisla- ing interest in reforming government’s processes. tion gives the permitee a single source of contact in We have maintained this interest because of government and allows DNR to set schedules for Alaska’s reputation for having particularly other agencies to work under and also to cumbersome permitting systems. coordinate appeals. I want to differentiate between the process of The DNR lead agency concept has worked well permitting and the purposes of these systems. The in the past for large mining projects and, I believe, initial purposes of most government programs are will work well for other projects. Having one good, particularly those that help protect the agency in charge of moving the project along will environment in which we work and play. definitely speed the decision process. Having this However, because there are so many programs type of oversight may also help eliminate mitiga- now mandated by our legislature and the U.S. tion measures from different agencies conflicting Congress, the permitting process has become a with one another. jungle through which only the brave (and, for the Simplifying the permitting process does not most part, well financed) dare tread. The develop- mean, as some critics charge, lowering our stan- ment community often has a difficult time dis- dards of environmental protection. Neither of the cerning what government really wants them to do. examples cited above reduces a single environ- In addition, government has become so fond of mental standard. However, both pieces of legisla- the permitting process that it wants permitees to tion bring some reason to the government’s do it over and over again once the permitted oversight responsibilities, and take us further from activity is up and running. Both of these situa- a system where the process becomes the product.

Page 10 October 2003 Resource Review www.akrdc.org RDC’s 24th Annual Conference Early Bird Registration—$200 Before Friday, October 31, 2003: Early Bird Rate: $200 Alaska Resources As of Monday, November 3, 2003: RDC members: $250, 2004: and non-members: $325 (Sign-up for $75 membership and get lower rate) New Frontiers, Expanding Hotel Accommodations: Call the Sheraton Anchorage Hotel at (907) 276-8700 for Opportunities room reservations. Specify "RDC Conference" for the best rate. The rate is $90 for either a single or a double. November 20-21, 2003 Sheraton Anchorage Hotel To Register: Featuring more than 30 high-level Please take advantage of this special Early Bird rate! Register speakers from across Alaska’s eco- online at www.akrdc.org or return this form by mail to: nomic spectrum, RDC’s 24th Annual Resource Development Council Conference, “Alaska Resources 2004: 121 West Fireweed Lane, Suite 250 New Frontiers, Expanding Opportunities,” Anchorage, Alaska 99503 will open Thursday, November 20th at the or fax to (907) 276-3887 Sheraton Anchorage Hotel. The two-day conference begins with Fees include a $50 non-refundable processing fee; no refunds a special segment on Alaska’s oil and gas industry. State and federal officials after Friday, November 7, 2003. Participant substitution is permitted: will present the latest information on please call RDC with changes. For additional information, new oil and gas frontiers and expanding call (907) 276-0700. opportunities from the Arctic to Cook Inlet and Bristol Bay. North Slope and Cook Inlet oil and gas producers, as well as independent explorers and Please print or type operators, will address new projects NAME: and opportunities they are pursuing in Alaska, as well as challenges and barri- TITLE: ers to development. COMPANY: The conference will then turn to a re- gional focus where Native corporation, MAILING ADDRESS: industry and community leaders from BILLING ADDRESS: Arctic, Southwest, Interior, and Coastal/Southeast Alaska will address CITY: the latest prospects, projects and trends in their regions. STATE: ZIP: As in the previous three years, RDC PHONE: FAX: is expecting another packed conference of legislative, government and business E-MAIL: leaders from across Alaska, the Lower COMPANY WEBSITE: 48 and Canada. Conference attendees will be treated to a special reception, Method of Payment: gourmet breaks and lunches, plenty of networking opportunities, and an audi- AMOUNT: $ ence of decision makers. CHECK #: We look forward to your support and active participation. For sponsor- VISA/MC/AMX #: ship opportunities, call RDC at 907- EXP. DATE: 276-0700. To view the conference agenda, go to www.akrdc.org. NAME: (as it appears on the credit card)

(907) 276-0700 October 2003 Resource Review Page 11 Less restrictions. More 24/7.

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