The Resource Development Council the best way to do this, but our effort is development extremist he's being made for Alaska (RDC) has announced plans to intended to neutralize the petition to appear. His background, experience, spearhead a statewide campaign to campaign being conducted by and commitment to balancing support policies of the new Secretary of environmental and consumer groups development and environmental Interior James Watt. demanding Watt's resignation,"she said. concerns are exactly what this nation RDC officials say the effort will begin The Council, the state's largest needs," Herbert said. "We want Congress with a petition drive. The group will initi- citizens group, whose members come to know Alaskans support him. ate the project by contacting associate from labor, business'and government, Herbert said the project would be a organizations which actively support also plans a letter campaign targeted to major undertaking of RDC. "We're going 444 West 7th Avenue Anchorage, Alaska 99510 April - May 1981 rational land-use policies. key members of congress. to need a lot of volunteers--individuals ''We are convinced the vast majority Charles F. Herbert, newly-elected and organizations working with their of Alaskans support his appointment as President of the Resource Development own members--to make this a success."

Interior Chief, " said Paula Easley, Council, explained the action of the Herbert urged Alaskans wishing to executive director of thecouncil. "Our job group's executive committee. assist the project, dubbed "Alaskans for is to get them to speak up. Petitions aren't "Jim Watt is not the pro- Secretary Watt," to contact RDC at 278- 9615.

ouse Research Agency, continun.. Resource Review is the official monthly newsletter of the Resource Development Council for Alaska, Inc., Christine Johnson performs relating to energy conservation, the Box 516, 444 West 7th Avenue, research on social and health services, Susitna Hydroelectric project, and Anchorage, Alaska 99510. Phone (907) the judiciary and law enforcement, and telecommunications. 278-961 5. state taxes and expenditures. She is Leslie Longenbaugh has been hired Executive Committee Olficers as a temporary entry-level research President ...... Charles F. Herbert currently working on an evaluation of the Vice Presldent ...... Mano Frev child support enforcement program and analyst. Her research has focused on Vice President ...... Dorothy Jones an analysis of water right issues, as well State loan programs and hgher Secretary ...... Bob Swetnam as providing oversight of State loan education issues. Treasurer ...... Darrel Rexwlnkel Past Presldent ...... Tom Fink program activities. At a recent hearing in Juneau Staff Jack Kreinheder focused his efforts dealing with Alaska coal, researchers Executive Director ...... Paula Easley the past session on revenue sharing, oil Susan Brody and Ann DeVries were Deputy Director ...... Joyce Munson Administrative Manafier . . Mary Holmes and gas, fisheries and health care. His commended by RDC's executive director Research Analyst ...... Larry Hayden present assignments include an analysis for their reports on Coal Leasing and Community Relations of coastal protection funds and research Taxation and Markets for Alaskan Coal. Coordinator ...... Carl Portman

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Box 516, Anchorage, Alaska 99510 ANCHORAGE, ALASKA

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Page 3 Page 6 rights. Betty Barton was formerly assistant city manager of Bethel and a local Former Alaska Department of respected, effective organization of its In its first year of operation, the According to the annual report, the government specialist of the Department agency takes requests for research on a Natural Resources Commissioner kind in Alaska." He added, "we're just House Research Agency has responded of Community and Regional Affairs. Her Charles F. "Chuck" Herbert has been ordinary people who believe enough in to 187 requests for research from "first come, first serve" basis to assure a work has focused on health care, senior elected President of the Resource Alaska's future to devote our time and legislators in addition to 14 special non-partisan entity. Special projects citizens programs, food and drug laws, Development Council. money to fighting for change." projects resulting in major reports and requiring more extensive work are and refugee resettlement. Outgoing President Tom Fink handed Herbert became Deputy Commis- papers, says the agency's annual report. authorized by the bi-partisan governing Susan Brody serves as acting sioner of the Department of Natural The House Research Agency's staff committee of the agency, composed of director in the director's absence. She the gavel to Herbert at the Council's consists of six full-time researchers, one annual meeting April 10 at the Captain Resources in 1963, and seven years later the Speaker, Minority Leader, and the has performed research on petrochem- part-time researcher, and a research icals, other oil and gas related issues, Cook Hotel. Fink, an Anchorage Governor Bill Egan named him Commis- ranking House member of the Legislative analyst in addition to the director, coal, timber, and day care. She is a insurance executive and former Speaker sioner. He has worked as an operator and Council. administrative assistant and two former member of the Anchorage office of the Alaska House of Representatives, mining consultant in Alaska, Canada, In keeping with its mission of seasonal secretaries. providing objective research, the agency of CH2M Hill, a national consulting firm. stated, "any organization is only as good and Central and South America. Herbert Charles "Chuck ~erbert The organization's expertise and as its members, and if that is the criteria served as ~laska'sfirst chairman of the compiles factual data, identifies and knowledge in several key issue areas has critically evaluates policy options. Anne DeVries has undertaken by which we are judged, you can be Alaska Public services Commission and Association, the American Institute of significantly expanded, the report states. However, as a general rule, the agency market analysis of various Alaska proud, as I am, to be part of the most is currently active in the Alaska Miners Mining Engineers, the American Mining The staff is now prepared to address will not render policy recommendations. natural resources, including agriculture Congress, and Commonwealth North. For various oil and gas-related issues, Research requested by legislators is and coal. She has also researched issues several years Herbert has been RDC's including petrochemicals, corporate treated confidentially unless the director relating to higher education, workers' staff consultant on mining. Valdez Wins Environmental A ward taxes and leasing questions. requests otherwise. compensation, telecommunications and Other new Executive Committee During the interim, the research The agency staff consists of: public financing. officers elected were vice presidents Connie Barlow has been a special Alexander Hoke, a staff member of The Resource Development Council presented its Environmental agency provided information on finance, Mano Frey, Laborers Local 341, and assistant on oil and gas issues to the the former legislative research division, Enhancement Award to the City of Valdez at the organization's annual bonding, public utilities, telecommun- Dorothy Jones of the Matanuska-Susitna Commissioner of the Department of has performed work in the fields of meeting, Friday, April 10 at the Captain Cook Hotel. ications, higher education, worker's Borough Assembly. Bob Swetnam, Natural Resources, a research analyst, taxation, state expenditures, In accepting the award from Resource Development Council Executive compensation, and various public Phillips Petroleum, was elected and deputy director of the Coastal transportation, energy conservation and Committee member Jed Holley, Valdez Mayor Stephen McAlpine thanked the 1ssistance programs. Other projects secretary, and Darrel Rexwinkel, Management Office, and a member of the alternative energy sources. Currently he Resource Development Council and noted that "growth and environmental involved coal, state loan programs, child Coopers & Lybrand, was chosen support, enforcement, refugee reasearch staff of the Federal-StateLand is completing a preliminary economic qualities can be rendered compatible through sound planning." The award is treasurer. resettlement, water rights, coastal Use Planning Commission. To date, and technological assessment of given in recognition of a community or organization's outstanding efforts to The 1981-82 Executive Committee protection funds and energy ~arlowhas researched issues related to airships as an alternative transportation improve the quality of life through well planned economic development and also includes E.W. "Pete" Casper, Green conservation. oil and gas and the allocation of water mode. Continued on page 12 aesthetic improvements. Construction Company; Paul Dunham, 'Valdez has become one of Alaska's major growth centers in the past Machinists Local 601;Tom Fink, Schroer- decade and while many people will assume that industrial expansion is Fink Insurance; Bob Fleming, former Coal Hearings planned and located, Eakins said it could Alaskan activities. necessarily accompanied by environmental deterioration, Valdez citizens Alaska broadcaster; O.K. "Easy"Gilbreth, Continued. . . be a model industrial complex. Lee Johnson, Arctic Slope Technical have proved otherwise," Holley stated. Citing the accomplishments Valdez Alaska Oil and Gas Association; H. Steve Hall of Mobil Oil, the largest Services, spoke on port development in spreading their infrastructure invest- has achieved in the past two years, Holley noted that the city, along with Glenzer, Jr., Associated General holder of state coal leases, says "Mobil terms of non-coal resources of the ments for rail, ports, roads, and utilities. volunteer service organizations, is pursuing the beautification of the city in Contractors; Dan Hinkle, attorney for has no near-term plans to mine its Interior and Southcentral regions. "With This would lessen the investment risk by tandem with industrial expansion designed to establish the community as a Marathon Oil Company; Jed Holley, deposits." To do so, a 70-mile spur from proper planning, great economies could tieing it to more than one project. diversified center of commerce. business consultant; John Kelsey, Valdez Mobil's leases in the Beluga field to the be achieved by design to accommodate Projects recently completed in Valdez include the landscaping of the Dock Company; Tom Pargeter, National Eakins sees Anchorage or Seward Alaska Railroad at Wasilla would have to grain, petrochemicals, fish products, Mineral Creek Parkstrip, construction of the Camp Comfort Neighborhood Bank of Alaska; and former District handling Healy coal, and strongly be built. minerals, and other possible exports," Park, a softball complex, and the small Boat Harbor Boardwalk. Continuing Seven Senator Bill Sumner, owner and supports state investment in a regional Mobil emphasized the need for low Johnson said. improvements and programs in 1981 include construction of the Valdez Civic operator of Aviation Alaska. port for Beluga coal. In order to enter the royalties, taxes, and signals from the Paula Easley, Executive Director of Auditorium, capital improvements to provide neighborhood parks, New members elected to the world markets of coal, grain, and administration and legislature on the Resource Development Council, expansion of bike paths and improvements to historical hiking routes, the Resource Development Council's State petrochemicals, "We need to become creating the climate for coal reported on recommendations made at adoption of a Parks and Recreation Master Plan and Community Development Board of Directors from Anchorage are more sophisticated, and a world-class, development. Hall stated that high the RDC Coal Marketing Conference and Plan. In addition, annual landscaping programs consisting of flower and tree Rex Bishopp, John Creed, Erwin Davis, multi-purpose bulk handling facility resource extraction fees would simply the Council's policy on coal develop- plantings, continue. William English, Lloyd Pernela, Jim would greatly help accomplish that delay Alaska production. ment. Easley concluded, "If Alaska is Runner-up candidates for the Environmental Enhancement Award were Sourant, Pat Starratt, Bill Sumner, Dale )goal," Eakins said. "It would be a wise Hall, who attended the RDC Coal serious about getting into the coal export the Anchorage Recycling Center, Fairbanks North Star Borough Solid Waste Teel, Dave Harbour, and Don Wold. Other state investment that would establish the Marketing Conference in January, said market, it should make some fast, Management System, and the City of Cordova for the Eyak Lake Management new members include Bob Childers, state's image as a resource development that with recent interest growing in the courageous decisions to find solutions Study Team. Valdez; Pat Quinlan, Kenai; and Fair- economy." development of a transportation system, for handling and transporting the pro- banksans Tom Owen and Joe Thomas. If the port facility is properly Mobil might take a closer look at its duct."

Page 2 / RESOURCE REVIEW / April/May 1981 April/May 1981 / RESOURCE REVIEW / Page 11 xpresses Regret, Continued. . Because Mr. Schnabel had won every preliminary in the Haines eagle lawsuit, and because he seemed to have won every aspect of the trial, I stated in 1 ') "Alaska can look forward to a the letter that it was absurd for him to say the lawsuit closed the mill. (Let me add tremendous amount of activity toward that I did not participate in any aspect of the case, nor did I see any of the trial. I strategic mineral production," says read about it in the paper and heard some reports from those who saw it.) Llewellyn King, publisher of several In my opinion, as an outside observer, I didn't think the lawsuit could have Robert LeResche, Commissioner of industrial trade journals. caused Mr. Schnabel to close his mill. But here I may have been mistaken. I have Natrual Resources, has proposed the Speaking before a capacity crowd at since heard that the very existence of the litigation may have made it more establishment of an export promotional the Resource Development Council's difficult for Mr. Schnabel to get bonding. Mayor Halliwill's letter to the Juneau program to quell Japanese fears about annual meeting at the Captain Cook Empire set me straight about this. the quality of Alaskan coal and the Hotel, King said he expects the I also said in the letter that the lawsuit was a longshot from the beginning. state's sincere intentions toward Departments of State and Interior to Enviromentalists are usually the underdogs, fighting big development entering the world coal market. spearhead a drive to develop the state's corporations. This is the case in the lower-48, and it goes in spades for Alaska. Speaking at the March Coal Port hard rock minerals to avoid growing But giving the underdog his chance is a pretty important right --a right I think Hearings in Juneau, LeResche said national shortages. "I would expect an government policy is very important to initiative from this administration to most Alaskans support. Especially when the fight is about something as Llewellyn King, publisher of the Energy Daily, Metals Daily, and Defense Week, Japanese and Korean businessmen. The build up the strategic stockpiles in these important as the unique eagles of Haines. addresses a large crowd on international energy affairs at the ResourceDevelopment state needs to give them a simple minerals and to open up where possible I hope this clarifies some of the misinterpretations of my letter. I'm really Council's Annual Meeting. sorry if the letter offended Mr. Schnabel or others in Haines. I'm also sorry to have statement of policy and establish a fixed and how possible their development." gotten off to a bad start with the citizens of Haines. royalty at a very low rate, LeResche said. However, King noted that only at the development... are those many interested resident said he never heard of it until Before I finish, let me mention that the first lawsuit I personally brought in The tax policy must be clear, the Department of the Interior are Alaskan in no development..." These people arriving in Anchorage. "My advice to you Alaska actually was on behalf of loggers, as well as enviromentalists. The suit Commissioner said. "The legislature and matters receiving much attention. He represent a strong lobby, the would be to forget it before somebody prevented the state from wasting $18 million of timber at the Point McKenzie administration must decide right now said that overall the administration isn't enviromental movement, King asserted. down there hears it and takes an interest agricultural land disposal. It was settled March 11, less than a week after it was what the severance tax will be." focusing much on Alaska and therefore He warned that mineral and energy in your prosperity." He added, "the last filed. Favorable editorials from the Anchorage Times and the Fairbanks News- LeResche supports endorsement by many of the state's issues are taking a leasing programs will be closely watched thing you need is a media campaign to Miner are enclosed. state government of tax-exempt back seat in Washington. by environmental groups. "They will be apologize for being successful." If the In the future I plan to continue representing local loggers, fishermen, financing to encourage establishment of Financing of the proposed gas line is quick to challenge Interior Secretary state spends $2 million on an advertising subsistence groups, environmental organizations, and anyone else who is infrastructure. He envisions two or three far from secure, King said. In fact, he James Watt's efforts in court if they campaign to tell the country that Alaska interested in promoting the wise use of the state's natural resources. export sites rather than one large facility. expressed doubt towards the actual believe he has exceeded his authority," isn't a "blue-eyed Arab," it would only As several people in Haines have pointed out to me, most Alaskans came To expand the Seward and construction of the pipeline and said "I King predicted. "I don't think the lands create a problem where one does not now here to enjoy the state's natural resources and most support their wise use. Anchorage ports to handle three million wouldn't be suprised if other alternatives bill will be changed." exist, King said. "Can you imagine what Who knows, one day I may even be asked to represent the town of Haines, tons of coal annually, a $4 million are discussed soon." According to King, editor of The would happen if you went around telling and if that dav comes. I will consider it an honor. Durwood Zaelke appropriation would be necssary. "By and large Alaska does not Energy Daily, Metals Daily, and Defense people that you really weren't rich?" LeResche said/The state could be the concern the average American," King Week, the great majority of Americans is King closed by saying, "I think with financier of the last resort for infrastruc- explained. "Unfortunately the only not aware that the state is enjoying an Alaska's resources and the attitude of "A Fourth Branch of Government" ture." people in the contiguous forty-eight economic boom. Referring to the phrase, this new administration, you will be The host of federal regulatory activities of all the regulatory agencies. Although the coal buyer will states outside of those interested in "blue-eyed Arab," the Washington D.C. infinitely more successful." agencies in Washington is an unofficial At present, each agency regulates as if determine which port to use, LaResche "fourth branch of government" its mission were the only one in the said,"We need to start monthly or weekly independent of the system of checks and world." shipments as soon as possible to show balances that constrain the Executive, The Chamber observed that there is them we are in business and seri- Legislative, and Judicial branches, the no government framework for measuring ous." The Resource Development Council The policy statement regarding the members of the Council's statewide U.S. Chamber of Commerce says in its the overall burden of regulations, to LeResche said he hoped the adopted sixteen policy statements on Alaska Railroad urges the state to take board, but was unanimously passed recommendations to the Reagan identify and eliminate overlaps and administration and legislature, following renewable and nonrenewable resources, the necessary steps to acquire once amendments were agreed upon. Administration for federal regulatory duplication, or resolve jurisdiction approval by the Coal Task Force, would the Alaska Railroad, government control, ownership from the federal government, The policy statement on natural gas reform. conflicts. introduce legislation spelling out state taxes and state land policies at its annual create an independent authority to and petrochemical development in According to the January edition of 'The critical question remains one of policy and setting severance tax. He meeting April 10. oversee its operation and contract with Alaska calls for the state to analyze, Association Trends, the new president centralized authority over the regulators warned that severance taxes hit the coal The Resource Development Council private enterprise to operate and manage investigate, identify and remove must seek both a comprehensive fedreg so the historical American government industry much harder then the oil statements represent several months of the facility. Once the railroad becomes problems that are detracting from and reform bill and revision of specific system of checks and balances can be industry. intensive work by over 100 people, each economically feasible, the Resource retarding the establishment of a regulatory programs on a case-by-case restored," the Chamber said. "This is the Dick Eakins, Director of the Division hpecialists in their field. Each policy Development Council urges that it be petrochemical industry in Alaska. basis to correct the situation. key objective of meaningful regulatory of Economic Enterprise, said he foresees requires urgent attention and will direct placed in private ownership. The Furthermore, the Council urges the Association Trends quoted the Chamber reform; it should be a top priority of the Beluga coal serving as the catalyst for the Council's activities throughout the statement contained stipulations which legislature to develop a clear economic as saying that "some government entity new Administration." other major developments, thereby year. brought lively discussion among must be given authority to oversee the Continued on page 11 Continued on page 8 April/May 1981 / RESOURCE REVIEW / Paae 3 Page 10 / RESOURCE REVIEW / April/May 1981 If fuel prices continue to rise and domestic crude oil, and the growth of indications are that the energy portion of Schnabel Lumber Company of However, Schnabel Lumber and Schnabel's attorney has agreed to household income and energy transportation and distribution costs in the household budget could be reduced Haines is appealing for financial aid from Company is now forced with continued continue the case in hopes the company consumption follow historical trends, by rural Alaska. by as much as 27 percent of projected companies and individuals throughout litigation and costs in preparing breifs can find a way to pay him. I988 the proportion of cash incomespent In concluding, the study forecast 1988 levels. Alaska to help pay costs of new litigation for presentation to the State Supreme "I need help and I am turning to those on energy will rise from 29 to 43 percent that median household energy Of the two programs, a fuel in the firm's court battle with the Court after SEACC filed an Appeal for that have an interest in seeing this case for rural native households. expenditures in rural Alaska will assistance program would require that Southeast Alaska Conservation Council Stay March 2. closed to the advantage of all of us," The projection was released in a increase 50 percent, from $2,000 in 1978 the state provide continuous and (SEACC). I John Schnabel, president of the Schnabel commented. "In this time of report titled, "The Impact of Rising to $3,002 in 1988. The researchers increasing financial assistance to help In a landmark ruling, Judge Allen lumber company, said "It is important need, I ask you to contribute to Schnabel Energy Prices on Rural Alaska" by emphasize that these findings depend on residents pay rising costs of fuel and Compton of Juneau on December31,1980 that we not lose by default the Lumber Company whatever assistance researchers William Nebesky and Oliver the assumption that government electricity. A weatherization program required the perservationist organiza- opportumity to uphold this landmark you can afford." Goldsmith. Both men are with the programs aimed at reducing the impact that would help residents caulk and tion to pay $25,000 in court costs and decision." Schnabel said his company "is In the original court action, SEACC, University of Alaska's Institute of Social of rising energy prices will not be insulate their homes, could permanently attorney fees to the private Haines tapped out and does not have the funds to represented by the Sierra Club Defense and Economic Research. functioning between 1978 and 1988. reduce the proportion of per capita lumber company they had sued, after the pay its aged trade accounts. We cannot Fund, sued Schnabel Lumber Company Study results indicated that between Should fuel assistance or weatherization household income required for future plaintiff's charges had been denied. finance another round of litigation," and the State of Alaska over a long-term 1974 and 1978, rising energy costs programs be carried out over this period, energy expenditures. SEACC appealed the ruling two weeks Schnabel added. timber sale in the Haines area, which sharply increased household later, but on January 30, a court order The Borough of Haines has provided preservationists said would destroy expenditures on heating oil and visory Co was issued ordering SEACC to pay. $3,500 to obtain a transcript of the trial eagle habitat and eagles themselves. The electricity in rural Alaska. During this timber sale was the result of an extensive time the proportion of income spent on With Petrochem land use plan, compiled by local heating oil and electricity increased from governments of the Haines area and the 18 to 29 percent for native households Members of a citizens advisory Poland and Keller were accompanied on State, which addressed the eagle's and from 10 to 16 percent for all committee studying the effects of a the tour by Eric Myers of the Alaska DITOR'S NOTE: According to the Durwood Zaelke said in a letter to the needs. A special study conducted by the Editor of the Southeast Alaska Empire households in rural Alaska. petrochemical industry in Alaska say Public Interest Research Group. Myer ) merican Bar Association Code of Haines-Klukwan Resource Study Group The report said energy costs in rural that three plants they recently visited in was invited to speak on the panel, but 'rofessional Responsibility, a "lawyer that "even a casual observer could tell also showed that logging would not be Alaska are determined in large part by Mich,igan, Louisiana, and Texas operate failed to respond. hall not file a suit, assert a position, from the outset (20 months ago) that the detrimental to eagles utilizing thechilkat storage capacity in each village, mode of cleanly and are a plus to their Poland and Keller spoke highly of the relay a trial, or take action on behalf of case had only the slightest chance 01 River Valley. shipment - surface or air - distance of the communities. facilities operated by Dow Chemical USA, iis client when he knows, or when it is being won. It was a valiant effort to Schnabel has been logging in the village from the main distribution center, Kay Poland, Director of the Office of the leader of a nine-member consortium tvious, that such action would merely protect the eagles. " Haines area for 41 years. Today the eagle village size, and the type of shipping Commercial Fisheries Development for studying the feasibility of a erve to harass or maliciously injure Furthermore, Zaelke attacked John population is reportedly at an all-time Schnabel by writing, "the citizens 01 container used. For example, shipping in the State of Alaska, and Millett Keller, petrochemical complex in the 49th state. tnother." Some observers in the recorded high in the valley. The Schnabel barrels costs on the average over twice Anchorage businessman, discussed their "The petrochemical business is not a 'ichnabelLumber Company's court battle Haines who want to diversify thei~ sawmill and other logging operations are as much as shipping fuel in bulk lots. findings before the April 2 meeting of the smokestack industry," Keller said. "It's vith the Southeast Alaska Conservation economy and attract tourists should be the major private employers in the council believe the Sierra Club Defense wary of Schnabel and others of his Uk.' Also, the researchers found that smaller Resource Development Council. both Continued on page 7 Haines area. the village, higher the energy cost. :und has purposely engaged in litigation In a letter to the Editor of Resource According to Paula Easley, Between 1974 and 1978, the price of o harass and injure the lumber Review, Mr. Zaelke writes about hi5 Executive Director of the Resource diesel fuel delivered to Alaska Village mpany. controversial comments. Development Council, the preservation- Electric Cooperative (AVEC) communi- Sierra Club Defense fund attorney ists have made a nationwide effort to ties increased at nearly four times the turn the entire Chilkat Valley into an Dear Editor: rate of residential heating oil prices in eagle haven to the discouragement of all Fairbanks. In addition, electricity prices Thank you for the copy of your February 1981 issue of Resource Review, which other land uses. "Scientific research had charged AVEC consumers during the contained a discussion of the Haines lawsuit, and a related editorial. shown eagles are not harmed by same period increased by an average While I generally abide by the saying "don't explain and don't complain," I logging," Easley said, "yet preservation- rate of 17 percent per year, compared to would like to try to correct some misinterpretations of my "infamous" letter to the ists have instigated a land lock-up in the an annual increase of only four percent in editor of the Juneau Empire about the Haines lawsuit. Iwould also like to apologize Haines area. Fairbanks. to Mr. John Schnabel. An escrow account for the Schnabel The report says the growth in "Fresh from 'back east,'and breathing fire," to use Mayor Halliwill's phrase, I Legal Defense Fund has been established consumer prices of heating oil and began directing the Sierra Club Legal Defense Fund office in Juneau. In Novem- at the law firm of Faulkner, Bonfield, electricity in rural Alaska to 1988 will ber, I believe, I read in the Juneau Empire a story about Haines. In the story Mr. Duggan, & Holmes, 311 S. Franklin, depend mainly on the future path of John Schnabel was quoted as saying that the eagle lawsuit had forced his mill to Juneau, Alaska, 99801. Any unused funds world petroleum prices, the long-term close down. (He also said the poor Asian market was a cause.) will be returned on a pro rata basis to impact of decontrolling prices of U.S. Dow Crude Oil Processing Plant -- Oyster Creek, Texas Continued on page 10 contributors. Page 4 / RESOURCE REVIEW / April/May 1981 April/May 1981 / RESOURCE REVIEW / Page 9

9 Continued. . .

I~laskaneeds to examine its facilities but also those rights-of-way exert ownership rights. Thus the state transportation system in terms of would be required to cross federal lands could utilize this particularly useful BY marketing a resource which could in any future extension of railroad lines, feature of any railroad expansion while Bob Gilliland successfully compete in the demanding whether eastward to Canada or permitting the operator of the railroad to RDC Rail Expansion international marketplace. Placing the elsewhere. However, these conclusions market its services as a private carrier. were followed with several recommenda- Committee many problems and opportunities Acquisition by the state and the confronting both the state and local tions. It was strongly felt that the state private operation of the ARR would have governments,and private industry, in the should create a non-political entity apart its immediate benefits felt most heavily Within recent months several events along the railbelt taking place without perspective of making a responsible and from any existing state agency which along the present railbelt. However, it is occurring both in and out of Alaska the railroad, includingthesettlement and intelligent utilization of this valuable would function as a separate corporate assured that the direct and indirect have spurred renewed activity and resource was the goal of the Alaska Coal body. The role of the state would be to economic growth of the Matanuska involvement could soon include interest in the role of the Alaska Railroad' Valley. Marketing Conference in January, 1981, provide, as the owner, any major new activities of most Alaskans. in Alaska's future growth. For the first As an aftermath of the heavy traffic coordinated by the Resource infrastructure requirements. Such time the state is in the position to initiate during the war years and after the 1964 Development Council. Although the requirements might include capital changes in the ownership and operation earthquake, the ARR was essentially be asked, why should the state use its conference was limited to the specific investments in the railroad itself and World Trade Week of the railroad for the betterment of all renewed along its entire length with a excess funds in such an undertaking? theme of coal, much of the information terminal and port facilities which would May 17-23 Alaskans. heavier load-carrying capacity and up- One frequent response to the state's and the conclusions regarding the coal enable private industry to proceed with Studies made by the United States grading of engines and rolling stock. acquisition of the ARR is that it is nothing resources would be applicable to the acquiring and marketing natural May 17-23 has been proclaimed Department of Transportation, the State However, it must be agreed that at times, more than replacing one government ARR's role in any future resource resources in the most reasonable and World Trade Week by President Ronald of Alaska DOT, and the Canadian because of budgetary and policy owner with another. However, this does marketing. It was proposed that the expeditious manner. However, it was Reagan. government have explored the restraints placed on thefederally-owned not recognize the many opportunities federal government launch a determined strongly urged that the state should not The Anchorage Chamber of economics and possible routes of and operated railroad, its step-child available to the state for development of effort to find a possible buyer for the go into the railroad operating business in Commerce, in cooperation with the U.S. making a railroad connection with the treatment often resulted in lost both the transportation system and railroad with the State of Alaska being the manner of the federal government. Department of Commerce's International outside, as well as to extend the railroad opportunities for improvement and in the Alaska's natural resources which can the most likely candidate. Participants of This would require, from the start, that Trade Administration and many local all the way to the Aractic shores. At the reduction of services. occur with the state's control of the~~R's )the conference, representing a the state's policy be that the operation organizations, will present a series of time these various studies were made the The federal policies of management destiny. cross-section of legislators, government and managemant of the railroad be programs and seminars to help focus realization of completion of such large and operation eminating from A common element is found in the personnel, private industrial companies, contracted to private industry. . Alaska's position in world trade. A scale endeavors seemed almost beyond Washington have at times delayed various studies and reports concerning and the public from different areas of the Such a separation of interests would complete schedule of events will be reach. The construction and adoption of planned expansion programs the railroad's extension of planned state, felt the state should acquire all the allow participation by the state in the mailed under separate cover from the maintenance of such projects across so and equipment needs which have been improvement which would open up federal interest in the ARR. Additionally, various federal railroad programs. It Chamber of Commerce. Inquiries should mech wilderness could not be justified by proposed by the railroad management. natural resource areas. All recommenda- it was concluded that the state's interest would also allow the state to exercise its be directed to the Anchorage Chamber of either public policy or private sources in For some years the federal tions have cautioned that until such time should include not only all the existing authority to acquire right-of-way and Commerce at 272-2401. spite of known natural resources in the government has endeavored to interest as a market demand was sufficiently areas. prospective buyers in the ARR, including developed to warrant the huge expenditure required for transportation The key to having the ARR play an the State of Alaska. While in past years, tsJ Continued. . beyond their call." She added, "we were ever-increasing role in the economic the state was not capable of purchasing and extraction facilities, there would be told their (Dow) policy is to employ growth of Alaska is to utilize its capacity the ARR or to make expenditures which no justification for making any not like a pulp mill where there are clouds smoke and dust generated from an people locally." She said Dow has to provide transportation of natural would add to the present facility, such is appreciable new investment. of smoke rising from the stacks." asphalt plant than a petrochemical employed many local high school resources in a manner which will enable not the case today. Transportation is the critical Poland described Midland, Michigan complex. There are some carbon dioxide graduates and provided them with private industry to market these Because of the present and future element in development of natural - headquarters for Dow - as "very clean emissions, basically generated by the considerable training. resources to their greatest potential. supply of money made available from resources and has long been controlled and prosperous, a community that I facility's power plant, Keller recalled. "It's not the type of place you'd be Since its inception as agovernment- extraction of our oil resources, Alaska is by interests outside the state. The would be proud to live in." The Anchorage businessman reluctant to send your child to work in."' owned railroad in 1914, the ARR has had in the financial position to purchase the opportunity to alter this factor in the Keller added, "I noticed in Midland praised Dow for its efforts toward as its primary goal the connection of an ARR from the federal government in the near future will allow the state to that the people were very friendly and eliminating water pollution. Dow says open harbor on the Pacificocean with the immediate future. It also has the become more aggressive in addressing had no peculiar lumps on their faces or that all water in the complex, including Correction interior of Alaska, to provide aid in the opportunity to do so with objective market opportunities which have bumps on their backs." He continued, rainfall and snow melt, is filtered through The March issue of Resource Review referred to Walter Parker development of resources, and in the planning to attain the maximum benefit recently emerged. "there was no indentifiable obnoxious a special purifying treatment system that as the first Commissioner of the settlement of public lands; as well as to for Alaska's future economy. Various factors have caused Japan odor" coming from the plants. For the discharges the water in a cleaner state Department of Transportation Even though the state presently has and Korea, as well as other possible provide transportation for military ( ) most part," Keller said, "emission is of than when it entered the plant. and Public Facilities. Don Harris needs. No one will deny that these goals the financial means to acquire the ARR users, to make serious inquiry into steam which dissipates within a very In the communities visited, Poland served as the first Commissioner. have been accomplished, but only to a from the federal government and becoming buyers of Alaska's coal on a short distance." said Dow provided "good community Resource Review regrets the limited degree. One cannot imagine the possibly to pursue expansion and long-term basis. Thus for the first time I Keller explained that there is more assistance programs ...they went far growth and industry that has developed improvements, the question should still Continued on page 7 April/May 1981 / RESOURCE REVIEW / Page 7 Page 6 / RESOURCE REVIEW / April/May 1981