Saturday, May 25, 2013

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Obama Issues Executive Order for More Coordination on Arctic Energy Project Review
Alaska's senators say the key is whether getting all those people together means streamlining -- or gridlock.
By Bill McAllister
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Alaska's U.S. senators today cautiously welcomed an executive order by President Obama to coordinate development of energy projects in Alaska.

They say the jury is still out on whether it's more bureaucracy or a genuine move to expedite regulatory review.

Under the president's order, David Hayes, deputy secretary of the Department of the Interior, will chair a new interagency group.

Members include senior officials from numerous federal departments -- including Defense, Commerce, Energy and Homeland Security -- as well as the federal coordinator for an Alaska natural gas pipeline project.

Alaska's senators say the key is whether getting all those people together means streamlining -- or gridlock.

Alaska's congressional delegation and the Parnell administration have been highly critical of the pace of federal agencies in reviewing energy development projects.

There have been repeated setbacks to exploratory drilling in the Beaufort and Chukchi seas.

And the last straw seems to have come with obstacles put in the way of ConocoPhillips in trying to access a lease in the National Petroleum Reserve-Alaska, with a permit for a bridge still pending before the U.S. Army Corps of Engineers.

The Obama administration says the new working group is intended to simply the decision-making process with greater information-sharing and closer scrutiny of schedules and progress.

Senators Mark Begich, a Democrat, and Lisa Murkowski, a Republican, don't have the same level of optimism that the process will improve.

But they agree it needs to.

Begich: "You can set up all these processes, but at the end of the day what matters is that we see oil or gas being produced from our fields. And I do believe that if we're successful, and I think we will be, by the end of next year I believe we'll be in production on Chukchi or NPR-A, in the sense of development or exploration on both or one of them."

Murkowski: "I think we're all withholding judgment at this time. It's going to be important to see how this actually works. Is this going to be yet another level of bureaucracy or is this going to gain some efficiencies? I think it was interesting that Mr. Hayes cautioned that the working group was not going to be a one-stop shop for permits, and those were the words that he used."

Governor Parnell also weighed in on the new executive order.

The governor said he is cautiously optimistic about the development but not happy that the State of Alaska didn't get a seat at the table in the working group.