- We think thafs Balance

January 1996 A monthly publication of the Resource Development Council, Inc. I

I & Multiole Use Land Management It may surprise you to know that ninety percent of our nation's largest national forest, 's Tongass National Forest, will never be open to timber harvesting. Over 15 million acres are set aside as , national monuments, wildlife preserves and other special protection areas. Only 10% of the Tongass National Forest will ever be harvested. And the harvest cycle will extend over a one hundred year period. That means, at the end of the first century of harvest, there will be one hundred year old trees on the first acre cut. A continuing, sustainable, balanced process is in place to provide for both the people "As those with the biggest economic, cultural and environmental stake in the future of this small portion of ANWR, Alaska Natives are asking that the federal government fulfill its obligation to include us as active participants in determining the best use of these lands and our future." - Carl Marrs, President, Cook Inlet Region, Inc.

Three Alaska Native corporations are suing Interior Secretary Bruce Babbitt and other Department of Interior officials for their alleged failure to abide by statutory obligations to consult with them on whether ANWR should be open to oil drilling.

ANWR, Tongass caught in

budget battle ... Page 3 ,

The three Native corporations, Arc- tic Slope Regional Corporation, Cook Inlet Region, Inc., and Kaktovik Inupiat Corporation, contend that the Alaska National Interest Lands Conservation Act (ANILCA) guarantees them input on refuge decisions and that Interior Language to open the 1.5 million acre Coastal Plain of ANWR to oil and gas drilling is officials, without proper consultation contained in the budget reconciliation bill that President Clinton vetoed in December. with Alaska Natives, issued a report in August that reversed the recommen- "Not only have the defendants ig- The suit also criticizes Ada Deer, dations of a 1987 study supporting oil Resource Development Council t-~oredthe views of the vast majority of the Assistant Interior Secretary for Bulk and gas leasing in ANWR. 121 W. Fire weed, Suite 250 Rate Alaska Natives," the lawsuit asserts, Indian Affairs, for "taking sides" in the U.S. Postage The Natives allege that the U.S. Anchorage, AK 99503 "they have actively exploited minority battle between Inupiat Eskimos who Fish and Wildlife Service is using the ADDRESS CORRECTION REQUESTED views within the Native comm~nityto support drilling and the Gwich'in Indians Anchorage, AK August report to support Babbitt's support their own anti-development Permit No. 377 who oppose it. opposition to drilling. policies." (Continued to page 6) Page 8 / RESOURCE REVIEW /January 1996 In the case of mining reform, facts on industry's side By Chuck Ha wley impact might appear different if the all metals only 3.14 percent of equity. Mining Geologist Secretary had told the public that, of The Clinton administration claims Interior Secretary Bruce Babbitt has this billion dollars, more than half would that mining reform efforts on the mining been doing his best to dramatize a so- be paid to labor and suppliers in the law are a sham. But Babbitt's own pro- called giveaway of public lands on is- production of the metals. Some would posals would leave only a handful of suance of patent to a mining company. also be paid in federal, state and local American mining operations intact and However, the main points that Babbitt taxes. Hopefully, the miner will make would cost up to 17,000 jobs in the Dear President Clinton: Time to open AN has criticized on mining patent, such as some profit. western states. In contrast, the pro- Editor's Note: The following letter from edge and experience with Arctic oil and on Arctic oil field development. lack of a federal royalty, minimal price Taxes paid by miners are signifi- posal backed by most western con- Becky Gay was sent to President Bill Clinton gas development. In contrast, Russia has a very dis- for federal surface, and post-mining cant. In 1994, the metal-mining indus- gressmen uses a proven revenue gen- on December 7,1995. It has been edited for RDC believes most Americans mal development record in the Arctic, use of mining lands for speculative try paid as tax 38.2 percent of its net erator model; the 5 percent net royalty space constraints. would support development in the re- but is actively seeking Alaska North gain, have been corrected in the bud- pre-tax income, while the gold mining is essentially that used by Nevadawhere fuge if they were given accurate and Slope oil production technology and get bill on the President's desk. industry paid 48.7 percent. And the it has raised more than $40 million in I am writing on behalf of Alaska's objective information, instead of the know-how in its attempts to safely de- The billion-dollar land value cited industry cannot be considered overly taxes with minimal administrative cost. largest membership-funded, multi- highly-emotional and often-times velop energy resources above the Arc- by Secretary Babbitt is not the value of profitable. Standard and Poor's 1995 In the case of mining reform, the cultural organization to urge you to reach misleading rhetoric which has plagued tic Circle. While Alaskans are willing to the mineral deposit but the gross value industry reports indicate that gold min- facts are on the side of the industry. a reasonable compromise with this issue. In fact, a recent poll by the share their expertise and experiences of metals in the ground. The dollar ing earned a return of 5.25 percent and Congress allowing for environmentally- Gordon S. Black Corporation revealed in North Slope oil development, they responsible oil and gas exploration and that the American public, when find it troubling to learn that Vice Presi- development along the Coastal Plain of National presented with the facts, supports dent Al Gore has been very supportive the Arctic RDC urges Clinton to open ANWR limited oil and gas leasing in ANWR by of Russian efforts to develop oil re- (ANWR). (Continued from page 2) a 56-37 percent margin. We believe a serves in the Russian Far East and Heritage Area Alaskans strongly support a leas- strong case can be made for Siberia while strongly opposing leasing Isn't it reasonable to allow develop- Opening ANWR could mean hun- ing, exploration and development pro- development and that the issue should and exploration in a tiny sliver of ANWR ment to proceed in a very isolated and dreds of thousands of new jobs across gram on ANWR's Coastal Plain. Their proposal draws be decided on its own merits - not where North America's biggest oil re- small segment of ANWR underthestrict- America, less reliance on foreign oil support is based on first-hand knowl- environmental politics. serves may exist. Frankly, doesn't it est environmental measures in the imports and greater domestic produc- Contrary to what some believe, make more sense to support develop- world? If Alaska had developed most of tion. ANWR leasing will help contrib- opposition there is no choice between the environ- ment here in America rather than in its land and if wilderness was truly en- ute to a balanced budget without sac- ment and the economy when it comes Russia or other foreign countries where dangered here, then the case for devel- rificing the environment. The Resource Development Coun- to Arctic oil development. Exploration environmental protection and regula- opment would be weakened. But that is President Clinton, please do not cil has come out against legislation in and development can proceed with tions are much weaker? A vote for not the case as Alaska contains more slam the door on a reasonable com- Congress which would create a new minimal impact to the environment. Alaska exploration and development is wild lands in parks and refuges than all promise. Opponents of development costly bureaucracy within the National While the prevailing perception in the a vote for American jobs, American the land in Maine, New Hampshire, refuse to compromise, but we both Park Service and add to the cost of Lower 48 is that ANWR would be sac- production, American revenue, Ameri- Vermont, Massachusetts, Connecticut, know a true balance is found in the government at a time when Congress is rificed for oil production, less than 8 can technology and the highest level of New York, New Jersey, Pennsylvania, middle. looking for ways to reduce costs. percent of the refuge would be opened environmental protection. Ohio, Delaware and Maryland com- Alaskans recognize the immense Both S.ll10 and H.R.1280 would es- to leasing, leaving 92 percent perma- In considering RDC's request to bined. Nearly every acre of these lands pressure you face from the national tablish NationalHeritage Areas, taking more nently closed to any development. More- seek a compromise on the ANWR is- will remain undeveloped, preserved environmental lobby to veto any mea- land out of private ownership and posing over, development would impact less sue with Congress, please understand forever in a natural state for future gen- sure that would allow exploration on new threats to private property. than 12,000 acres of the 19 million-acre that most Native Alaskans who live, erations to enjoy. Those who suggest the Coastal Plain, but please do not put Unfortunately, the National Heri- refuge. hunt and work on the North Slope and that the last remaining Arctic wilder- a lock on Alaska's future. Please work tage Area bills run counter to recent Politics aside, oil development in in ANWR's Coastal Plain support de- ness would be lost if development is with Governor Knowles and Alaska, trends in Congress to limit government ANWR makes sense. America has the velopment. permitted in ANWR are deliberately de- where the overwhelming majority of its and shift more power back to the states. most advanced technology in Arctic oil Also, please recognize that Alaska ceiving the American public, yourself citizenssupport development in asmall The issue of reducing government and field development and stringent has given more to the preservation and the press. segment of ANWR's Coastal Plain. its costs, as well as the protection and regulations and laws to ensure it's done movement than any other state. Ninety Alaska has always been heavily We ask that you take pride and respect of private property rights, were right. As a result, Prudhoe Bay and percent of America's national wildlife dependent on the development of show your confidence in American major elements of the "Contract with more recent North Slope oil refuge lands are in Alaska, as well as 70 natural resources to sustain its technology, regulation and, most of all, America." developments actually showcase percent of all national park lands. Alaska economy. Because of massive land committed and high-qualified Ameri- Both bills increase the power of the environmentally-sensitive also contains 62 percent of the nation's withdrawals and other actions to protect can engineers and other workers pro- Park Service over vast land areas. In development. Delegationsfrom around federally-designated Wilderness, an the environment, Alaskans can ducing Alaska oil. Alaska, federal agencies already con- the world frequently visit Alaska area larger than the state of Utah or guarantee most of Alaska will remain ANWR can be developed in a safe trol 60 percent of the land base. More production facilities to seek advanced, Idaho. ANWR development would not wilderness even if the state succeeds in and responsiblefashion, providingjobs land could be subject to National Heri- cutting-edge American technology. diminish this designated Wilderness tapping the full potential of its resource and energy while maintaining a healthy tage Areas, taking even more out of America pioneered and wrote the book block by one acre. industries. environment in the Arctic. private ownership and local control. (Continued to page 7)

Page 2 / RESOURCE REVIEW / January 1996 January 1996 I RESOURCE REVIEW I Page 7 Natives sue over ANWR ARCO plans

'Complete disregard for our view' West Sak (Continued from page 1) ANWR, Alaska Natives are asking that the federal government fulfill its obliga- on all accounts, especially on the is- The suit says Deer should have tion to include us as active participants ARCO Alaska, Inc., may begin under the 32-year average of 421 mil- sues of clearcutting and sustainable considered all Native interests before in determining the best use of these reducing oil from the giant West lion board feet. The Stevens bill would harvests. vigorously opposing refuge drilling, and lands and our future," Marrs said. ak field as early as 1997, but most have provided some stability in the for- On the ANWR front, Alaskans have said she "exploited the minority Native Oliver Leavitt, Vice President of f the 20 billion barrels of crude in est and sent more loggers back to work. been working hard to convince moder- view to perpetuate the cynical myth ... Arctic Slope Regional Corporation ieformation will never be produced It would have partially restored the bal- ate Republicans to keep the drilling that opening the Coastal Plain is op- (ASRC), asserted that "caribou can ecause of the oil's thickness. ance set by Congress through TTRA. measure in the budget package. The posed by the Alaska Natives that would coexist with development" and that the West Sak is the giant, hard-to- Refusing to honor the 1990 com- White House has been putting on afull- be most directly affected." Prudhoe Bay experience proves it. reduce North Slope oil field that promise, anti-logging interests, includ- court press to remove it. Deer came to Alaska in October to ASRC represents 7,300 Inupiat Eski- LRCOhas been studying for years, ing Interior Secretary Bruce Babbitt, As the Anchorage Daily News urge the Alaska Federation of Natives mos on Alaska's North Slope, many of -ying to develop the technology accuse Stevens of trying to greatly in- pointed out in its December 8, 1995 to back off its endorsement of ANWR whom hunt caribou across the Arctic. ecessary to profitably pump the crease logging in the Tongass, which editorial, the President was wrong to drilling. AFN voted by nearly a 2-1 mar- Senator Frank Murkowski empha- eld. The company's president, Ken they say will pose a substantial threat to single out the ANWR provision in his gin against taking a neutral stand on the sized that Alaska Natives do not want a "hompson, said ARCO intends to tourism. Let's look at the facts: veto of the budget reconciliation bill. issue, and passed a measure asking government handout, but instead need ring on the field one section at a Less than 450,000 acres of the The Daily News, which sometimes Congress to open the Coastal Plain to economic opportunities and "the right me, starting with theeasiest in 1997, Tongass have been logged since the takes editorial stands unpopular with development. to live like the rest of America." !ongoing studies show that such an 17 million acre national forest was cre- Alaska resource producers, said "the The suit faulted Deer for acting as Babbitt has favored the anti-drilling tpproach is sound. ated in 1907. As a result of ANILCA in time to explore ANWR has come. The a "cheerleader for the Secretary's anti- position of the Gwich'in people over the ARCO plans to spend about $10 1980 and TTRA ten years later, the development policies insteadof play- most that will be harvested over the Alaska people and the oil companies ... position of the majority of Alaska Na- nillion in I996 on West Sak studies With President Clinton rejecting ing the role of Native advocate in the tives, Murkowski charged, adding that next 100 years is 1.7 million acres -10 can do the job in an environmentally- ind expects to make a final decision legislation that would allow for development of ANWR policy." the Gwich'in make up less than 1 per- percent of the forest. sound manner." We couldn't agree ate in the year. At that point the reasonable and balanced timber The suit was filed in federal court in cent of the state's Native people. more with the Daily News. company should know how much harvesting in the Tongass National Anchorage days after President Clinton Murkowski said that of the 14,000 jobs The editorial also noted that Presi- ;rude it can produce from its firs1 Forest and oil and gas development in vetoed the federal budget bill that in- that would be created in Alaska by dent Clinton has voiced his opposition Ihase of development and how many a tiny fraction of ANWR, resource "In his latest veto, President cluded a provision to open ANWR to ANWR drilling, at least 3,000 would be to ANWR drilling many times. wells it will need. development measures have taken big drilling. set aside for Natives. He said drilling "Clearly he knows opposition is Speaking before the RDC hits in the continuing federal budget Clinton was less than The plaintiffs, joined by state and technologies would ensure that only a good politics," the News said. "But the feud. good politics of the moment are bad federal lawmakers, held a press con- "very small footprint" would be left on rhompion said phased honest when he singled out Just before Christmas, President policy for the future. ANWR should be ference in Washington, D.C., Decem- the Coastal Plain by drilling. jevelopment would allow ARCO to Clinton vetoed budget legislation that the Tongass in a statement opened while calm prevails in the energy ber 12 to explain the suit. Congressman Don Young and earn how best to pump the field and would have raised the allowable cut in markets, not ripped apart by desperate "The vast majority of Alaskan Na- State Senator A1 Adams, a Native o test theories on how drilling the Tongass to near the level estab- to Congress." lawmakers during the next energy tives support the development of the Democrat who represents northern [ethnologies will work at West Sak. lished by Congress inthe 1990Tongass crisis." Coastal Plain for oil exploration," said Alaska, also spoke at the press confer- The field liesabovethe large Kuparuk Timber Reform Act (TTRA). The reform While the outcome of the negotia- Carl Marrs, President of Anchorage- ence. formation. Because it is closer to the law closed vast areas of the forest to Can't recreationalists exist on the tions between Congress and the ad- based Cook Inlet Region, Inc. Marrs The suit asks the courtto orderthe surface, West Sak's oil is thick as logging, leaving approximately one-third other 90 percent? If not, what is fair? Do ministration is completely impossible said Natives "are being left out of a vital administrationto cease distributing cop- molasses, which poses much greater of the commercial forested lands in the they want it all? to predict, the ANWR provision is not decisionmaking process by the Depart- ies of its revised environmental impact development and production Tongass open to harvesting on a 100- In his latest veto, President Clinton dead as long as Congress keeps it in ment of Interior that will affect our stan- study and to redo it, taking into account challenges compared to warmer, year rotation cycle. That was the bal- was less than honest when he singled the budget bill. We remain hopeful the dard of living and that of our children for the views of a majority of Alaska Na- thinner oil deeper underground. ance Congress set for the Tongass, but out the Tongass in a statement to Con- House and Senate will insist that the generations to come." tives. It also asks the court to direct Thinner the oil, the easier it is to since the passage of TTRA five years gress. White House compromise on this is- Marrs criticized Babbitt's "complete Deer to refrain from taking positions pump to the earth's surface. ago, millions of additional acres have "In the Tongass National Forest in sue. If so, the ANWR provision has a disregard for our view on this issue" and that are not in the best interests of all Although West Sak rivals been closed to logging and the annual Alaska, it would allow harmful fair chance of making it into a final the Interior Secretary's "anti-develop- Alaska Natives. Prudhoe Bay in size, it's considered harvests have fallen well below the clearcutting, require the sale of timber budget package approved by the Presi- ment platform." He said the Native cor- Meanwhile, a December editorial a marginal field since most of the oil intended levels of the 1990 compro- at unsustainable levels and dictate the dent. porations were suing Babbitt and other by the Chicago Tribune urged Presi- is non-recoverable. Moreover, Wes1 mise. use of an outdated forest plan for two Send your fax in support of the officials for not honoring their obliga- dent Clinton to lift the drilling ban on Sak is likely to be a slow producer Legislation by Senator Ted Stevens years," Clinton said in reference to an ANWR provision to: President Bill tions under ANILCA. ANWR. "If not, he should find a way to because of the characteristics of its would have required the Forest Service Interior Department budget measure Clinton, (202) 456-2461, Senator Bob "As those with the biggest eco- compensate the state and people like crude. The field is unlikely to gener- to raise the annual harvest volumes to he had just axed. Dole, (202) 228-1245 and Congress- nomic, cultural and environmentalstake the Inupiats for the income they will ate large revenues to the state's 418 million board feet, which is still Clinton's remarks were misleading man Newt Gingrich, (202) 225-4656. in the future of this small portion of lose," the Tribune said. treasury, but will create jobs. January 1996 I RESOURCE REVIEW 1 Page 3 Page 6 I RESOURCE REVIEW / January 1996 Private-sector contributions give boost to resource education RDC's con erence looks at global corn facing sta e's resource indus

The Alaska Mineral and Energy Resource Education Fund (AMEREF) produces a highly-acclaimed natural resource education program to provide Alaska students with the knowledge, skills and attitudes necessary to make informed decisions on resource development. The program was initiated 14 years ago as a partnership between the State and private-sector to provide students with balanced information about Alaska's natural resources and its economy. More than 150,000 students have been exposed to AMEREF materials in grades K-12. Recent private-sector contributions have made it possible for AMEREF to begin a new training program for teachers and build additional kits for the classroom. Major contributions were received in December from Bob Stiles of the Alaska Coal Association, left, Jim Palmer of House Finance Committee Chair Mark Hanley shares a laugh with Moderator Thyes Shaub and Senator Robin Taylor during a conference BP Exploration (Alaska), Inc., center, and Jim Cloud, National Bank of Alaska. Receiving the contributions were AMEREF President Paul workshop focusing on the political arena. At right, House Speaker Gail Phillips, Senator Jim Duncan and Rep. Jerry Mackie report that the Glavinovich and Vice President David Stone of Echo Bay Mines. AMEREFrequires continuing effort and funding to update materials, build top priority of the 1996 Legislature willbegettingAlaskaJsfiscal house in order. Senator Drue Pearce, notpictured,predictedaction on several new kits, train teachers and fund a professional coordinator's position within the Alaska Department of Education. (Photos by Carl Portman) bills aimed at stimulating resource activity. The legislators spoke before a crowd of 350 RDC members at the Hotel Captain Cook.

In a letter to Pete Panarese, Chief of Field Operations for surface access to remote areas and other infrastructure to the Alaska Division of Parks and Outdoor Recreation, RDC support a growing tourism industry. But, if the general public expressed its strong opposition to proposed changes in state is unable to access the park by surface, then aircraft, includ- regulations that would ban helicopter landings in State ing helicopters, remain the only feasible means to reach Park, as well as result in new restrictions on fixed-wing remote, rugged lands. Moreover, helicopters are a safe and aircraft landings in the park. RDC said there is no environ- reliable means of transportation, often able to land where no mental or biologicaljustification for the new restrictions. Here other aircraft can. Helicopter operations are among the is a condensed version of RDC's comments to the State: lowest in terms of environmental impact. The proposed changes are a step backwards in meeting Given the fact that Alaska contains 62 percent of all the demands of a growing Alaska tourism industry, much less federally-designated Wilderness - 57 million acres which Alaska Department of Environmental Conservation Commissioner Gene Burden discusses the role perception, risks and probabilities play the needs of Alaskans. Banning helicopter landings through- ban commercial development and associated activities, it in resource developmentpolicy and regulation in Alaska. At right, Jerry DeFrancisco, AT& TAIascom, Ronald Duncan, GCI, and Carl Reed, out the park needlessly closes the gates to inaccessible and would be most inappropriate to ban helicopter landings and Cellular One, exchange views on how telecommunications enhance Alaska's competitive position in business. roadless areas. With so much of the park and surrounding place new restrictionson aircraft in Denali State Park. Chugach areas closed to surface access, a ban on helicopter landings State Park and already ban is imprudent, arbitrary and unsafe. helicopter landings, and a majority of Denali National Park is If Alaska's vast parks are to provide a foundation for the managed for the preservation of backcountry qualities for state's growing tourism industry, access, as well as new those who demand solitude and untracked wilderness visitor opportunities must be provided. Statistics show that experiences. flightseeing is among the most popular and highest rated RDC encouraged the Division of Parks and Outdoor activities for Alaska visitors. Helicopters quite often afford the Recreation to provide the widest possible range of visitor only viable access to Alaska's largely inaccessible land base. opportunities and attractions in Denali State Park, including Flightseeing has become an exhilarating experience that helicopter landings. It noted that helicopters provide promises to draw increasing numbers of visitors to the state. flightseeing and access to remote areas for people of all With virtually no environmental impact, it's one of the best physical abilities and for those with a limited time margin. The ways to see Alaska's most dramatic and rugged landscapes. helicopters used in today's modern flightseeing market are Some people have expressed concern that noise from quieter and leave practically no footprint on the land. aircraft could impair the wilderness experience at Denali Denali State Park is a multiple use conservation unit that Robert Loiselle, Klukwan Forest Products, highlighted Alaska's global position in timber. At center, Robert Hatfield, Alaska Railroad State Park. These people tend to favor limits on flightseeing has accommodated helicopter landings for over 40 years Corporation, headed a transportation panel of rail, water, air and trucking executives who stressed that Alaska needs to look after its over the park and a ban on helicopter landings. In many without adversely impacting other park uses. transportation infrastructure to be competitive in world markets. At right, Mike Carey, Anchorage Daily News, and media consultant Ted Ferrioli participate in a media panel on effective strategies for influencing public opinion. (Photos by Carl Portman) cases, however, these are the same people who oppose Page 4 / RESOURCE REVIEW / January 1996 January 1996 / RESOURCE REVIEW / Page 5