Photo credit: Rob Bussell
By SUZANNE DOWNING
A lawsuit aimed at blocking oil and gas development on Alaska Industrial Development and Export Authority leases in the Arctic National Wildlife Refuge has been dismissed by the US District Court in Alaska.
AIDEA announced that the case, which challenged development activity in the Coastal Plain of ANWR, was voluntarily dismissed after both the plaintiffs and the authority agreed the lawsuit should be dropped.
On Feb. 10, the Alaska District Court entered an order dismissing the legal action, which AIDEA officials described as clearing another obstacle to responsible resource development in the refuge.
AIDEA Executive Director Randy Ruaro said the dismissal removes a potential barrier to moving forward with what Congress mandated when it opened the Coastal Plain for leasing.
“Congress mandated and required the Department of Interior to lease, develop, produce and allow the transportation of oil and gas from the most prospective leases in the ANWR Coastal Plain,” Ruaro said. “AIDEA holds several leases that experts believe hold billions of barrels of oil and trillions of cubic feet of natural gas.”
Ruaro pointed to recent changes in royalty rates that could increase Alaska’s share of revenue if production moves forward.
“With a recent increase in the royalty rate in favor of the State of Alaska, ANWR could produce several billion dollars a year in revenue to the State,” he said.
He argued that development in ANWR and nearby state lands could help provide long-term funding for public services and Alaska’s fiscal future.
“Development of ANWR and other natural resources … can and should provide the revenue Alaska needs for education, healthcare, and to grow the permanent fund and the dividend for all Alaskans,” Ruaro said, adding that it would also provide high-paying jobs for Alaska families.
AIDEA is a public corporation of the State of Alaska with a mission to promote economic development and expand opportunities for Alaskans through responsible infrastructure and resource investment.
AIDEA Acting Board Chair Bill Kendig echoed that message, calling the dismissal a step toward allowing development to proceed as intended under federal law.
“This decision clears an obstacle in the way for responsible development to move forward as Congress intended,” Kendig said. “AIDEA remains focused on creating economic opportunities for Alaskans while developing our resources lawfully and responsibly.”
Kendig said AIDEA is committed to working with local North Slope communities to ensure development benefits the region.
The authority said it plans continued engagement with Kaktovik Iñupiat Corporation, the Native Village of Kaktovik, and the City of Kaktovik — the only community located within ANWR’s boundaries.
AIDEA consultants estimate the Coastal Plain could contain billions of barrels of recoverable oil and trillions of cubic feet of natural gas, according to the authority’s ANWR Coastal Plain Resources Report.
