RESOURCE DEVELOPMENT COUNCIL Growing Alaska Through Responsible Resource Development
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RESOURCE DEVELOPMENT COUNCIL Growing Alaska Through Responsible Resource Development 2018 ANNUAL REPORT RDC Officers President Eric Fjelstad Executive Committee Perkins Coie LLP Anchorage Anna Atchison Lance Miller Glenn Reed Casey Sullivan Kinross – Fort Knox NANA Regional Corporation Pacific Seafood Andeavor Sr. Vice President Fairbanks Anchorage Processors Association Anchorage Jeanine St. John Seattle Lynden Carol Fraser Kara Moriarty Sinclair Wilt Anchorage Aspen Hotels of Alaska Alaska Oil and Gas Association John Shively Westward Seafoods, Inc. Anchorage Anchorage Pebble Partnership Anchorage Anchorage Vice President Tim Gallagher Hans Neidig Scott Jepsen HDR Alaska, Inc. ExxonMobil Lorali Simon ConocoPhillips Anchorage Anchorage Usibelli Coal Mine, Inc. Alaska, Inc. Palmer Anchorage Scott Habberstad Alaska Airlines Anchorage Secretary Mike Satre Bill Jeffress Hecla Greens Creek SRK Consulting (U.S.) Inc. Mining Company Anchorage Juneau Wendy Lindskoog BP Alaska Treasurer Anchorage Lori Nelson Hilcorp Alaska LLC Tom Maloney Anchorage Ahtna Netiye’, Inc. Anchorage Sam Mazzeo Past President Wells Fargo Ralph Samuels Anchorage Holland America Line Anchorage akrdc.org Board of Directors About RDC Cindy Bailey, Oil Search Limited, Anchorage Jaeleen Kookesh, Sealaska Corporation, Juneau RDC is a statewide association comprised Greg Baker, Westward Fishing Company, Seattle Thomas Krzewinski, Golder Associates, Anchorage of individuals and companies from Rosie Barr, Calista Corporation, Anchorage John Lau, ENSTAR Natural Gas Company, Anchorage Alaska’s oil and gas, mining, forestry, Tom Barrett, Alyeska Pipeline Service Company, Anchorage Tom Lovas, Energy & Resource Economics, tourism and fisheries industries. RDC’s Greg Beischer, Millrock Resources, Inc., Anchorage Anchorage membership includes Alaska Native Jason Bergerson, North Slope Borough, Anchorage Thomas Mack, Aleut Corporation, Anchorage Corporations, local communities, Ethan Berto, Cruise Line Agencies of Alaska, Ketchikan John MacKinnon, Associated General Contractors, organized labor, and industry support Patty Bielawski, Jade North LLC, Anchorage Anchorage firms. RDC’s purpose is to encourage a Rick Boyles, Teamsters Local 959, Anchorage Wendie MacNaughton, Sumitomo Metal Mining strong, diversified private sector in Alaska Jason Brune, Cook Inlet Region, Inc., Anchorage Pogo LLC, Fairbanks and expand the state’s economic base Patrick Carter, The Carter Company, Anchorage Stephanie Madsen, At-Sea Processors Association, through the responsible development of Dave Chaput, Alaska Frontier Constructors, Anchorage Juneau our natural resources. Andy Cole, Donlin Gold LLC, Anchorage Karen Matthias, Matthias Consulting, Anchorage Stephen Connelly, Eklutna, Inc., Anchorage Joey Merrick, Laborers Local 341, Anchorage RDC Staff Jason Criqui, Northrim Bank, Anchorage James Mery, Doyon Limited, Fairbanks Marleanna Hall, Executive Director, Dave Cruz, Cruz Companies, Palmer Lisa Parker, Parker Horn Company, Soldotna [email protected] Mike Ferris, Alaska Enterprise Solutions, Anchorage Judy Patrick, Judy Patrick Photography, Wasilla James Fueg, Pebble Partnership, Anchorage Steve Post, North Star Equipment Services, Anchorage Carl Portman, Deputy Director, Gideon Garcia, Northern Air Cargo, Anchorage Christy Resler, ASRC Energy Services, Anchorage [email protected] Ricky Gease, Kenai River Sportfishing Association, Genevieve Schok, Flowline Alaska, Fairbanks Soldotna Ethan Schutt, Alaska Native Tribal Health Consortium, Paul Glavinovich, Minerals Consultant, Anchorage Anchorage Stephen Grabacki, Fisheye Consulting, Anchorage Keith Silver, Anchorage RDC Lobbyist Karl Hanneman, Tower Hill Mines, Fairbanks Chad Steadman, First National Bank Alaska, Anchorage David Parish, David Parish & Associates James Hill, AllPro Alaska Toyota, Anchorage Phil Steyer, Chugach Electric Association, Anchorage Steve Hites, Skagway Street Car Company, Skagway John Sturgeon, Koncor Forest Products, Anchorage Resource Development Council Teresa Imm, Arctic Slope Regional Corporation, Anchorage Jan Trigg, Coeur Alaska – Kensington Mine, Juneau 121 West Fireweed Lane, Suite 250 Mike Jungreis, Reeves Amodio LLP, Anchorage Tim Williams, Alaska Railroad Corporation, Anchorage Anchorage, AK 99503 Rada Khadjinova, Fugro, Anchorage Sam Wolfe, Anchorage 907-276-0700 akrdc.org Resource Development Council @alaskardc #akrdc2018 [email protected] akrdc.org akrdc.org Oil and Gas Industry Fact Alaska needs investment and is falling behind – attracting only 1.7% of total U.S. investment. Alaska now ranks fifth among U.S. oil producing states. Photo courtesy Alyeska Pipeline Service Company akrdc.org Overview North Slope oil production continues to drive billion barrels in the National Petroleum Alaska’s economy, comprising 77 percent of the Reserve-Alaska, and 10 billion barrels in state’s general fund revenues at $2.4 billion. the non-Wilderness portion of the coastal Overall, the industry accounts for more than plain of the Arctic National Wildlife Refuge, one-third of the Alaska economy. where after decades of effort, it was recently opened by Congress. Two lease sales are to The industry directly employed 5,033 workers be held there within the next four years. in Alaska, including 4,275 residents earning $749 million in wages. In 2017, the industry spent $4.6 billion with 1,000 Alaska vendors and generated a multiplier effect resulting in RDC’s Efforts 41,300 jobs and $2.4 billion in wages. When all government impacts are considered, the • Launched efforts opposing changes to cur- The chart depicts crude oil supply sources to refineries in industry accounted for $6 billion in wages and rent state oil tax policy. California. As domestic production has declined, the state over 109,000 jobs - 35 percent of all jobs in has been forced to import more crude from foreign sources. The chart stresses the need for Alaska projects. Alaska. • Submitted comments in support of Arctic and Cook Inlet lease sales in the proposed 2019- • Generated comments supporting the The North Slope has produced more than 17 2022 Outer Continental Shelf leasing program. Preferred Alternative in the Liberty project billion barrels of oil with current production at • Submitted comments and testified in support Environmental Impact Statement. approximately 540,000 barrels per day, which of the Nanushuk project. continues a multi-year trend in rising • Supported a road from Nuiqsut to Utqiagvik. production. • Submitted comments and testified in support of the Greater Mooses Tooth 2 Project in the • Published Action Alerts and submitted There is an estimated 40 to 50 billion National Petroleum Reserve-Alaska (NPR-A). comments on a wide range of other barrels of oil remaining to be developed oil and gas issues. onshore and offshore northern Alaska. The • Testified in support of opening the ANWR majority of this remaining resource is in federal Coastal Plain to oil and gas development. • Featured updates in the Resource Review areas. However, on state lands there are newsletter and hosted public forums with encouraging recent discoveries with the • Supported permitting for the AK LNG Project. presentations from oil industry executives. potential of five billion barrels of oil. In federal areas, there is an estimated 45 billion barrels • Submitted comments supporting lease sales in • Published background paper on the oil and gas of oil, including 27 billion barrels offshore, 8.8 the Beaufort Sea. industry at akrdc.org. akrdc.org Mining Industry Fact In 2017, the industry accounted for $250 million in payments to Alaska Native corporations and $109 million in state government-related revenues. akrdc.org Overview Mining is growing in Alaska’s economy, providing more than 9,000 direct and indirect Alaska jobs and $700 million in personal RDC’s Efforts income throughout the state. In 2017, the industry accounted for $250 • Testified and commented in support of the million in payments to Alaska Native Donlin Gold project. corporations, $109 million in state government-related revenues, and mostly • Submitted comments on Miscellaneous Land year-round jobs for residents of many Alaska Use Permit for the Pebble project. communities – half of which are in rural Alaska where few other jobs are available. • Submitted comments on Draft Anti- degradation Implementation regulations. The mining industry in Alaska includes exploration, mine development and • Advocated for a fair permitting process for production. Alaska’s mines produce coal, gold, future projects, including the Pebble Project. lead, silver, zinc, as well as construction materials such as sand, gravel, and rock. Alaska • Urged the Environmental Protection • Submitted comments on Financial also contains many Rare Earth Elements, a Agency to withdraw the July 2014 Proposed Responsibility Requirements under CERCLA much needed resource for the nation. Determination on the Pebble Project. 108(b) for Classes of Facilities in the Hardrock Mining Industry. There are six major producing mines in • Submitted comments on the Environmental Alaska and seven projects in the exploration Protection Agency’s and U.S. Army Corps of • Expressed concerns with the Ch’u’itnu or permitting stage. In addition, more than 600 Engineers proposed rule to redefine the Traditional Landscape nomination. placer mines operate across the state. “Waters of the United States.” • Featured mining issues and projects in the New mining projects offer opportunities in • Submitted comments and defended Resource Review newsletter and