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CSSJR 301(RES) am: Opposing the recent decisions to cancel future lease sales in the Chukchi and Beaufort Seas and to deny the suspension of Shell and Statoil's leases; urging the United States Department of the Interior to continue to promote oil exploration in the Chukchi and Beaufort Seas; urging the United States Bureau of Safety and Environmental Enforcement to reconsider and approve requests from Shell and Statoil for lease suspensions in the Chukchi Sea Planning Area and Beaufort Sea Planning Area; urging the Alaska Congressional delegation to continue its efforts to achieve consistent and equitable outer continental shelf revenue sharing for the state; urging the United States Congress to provide a means for equitable outer continental shelf revenue sharing across all coastal oil and gas producing states to ensure the states develop necessary infrastructure to support outer continental shelf development and preserve environmental integrity; and urging the ongoing efforts to develop offshore oil and gas in the Arctic Outer Continental Shelf.

00 CS FOR SENATE JOINT RESOLUTION NO. 301(RES) am 01 Opposing the recent decisions to cancel future lease sales in the Chukchi and Beaufort 02 Seas and to deny the suspension of Shell and Statoil's leases; urging the United States 03 Department of the Interior to continue to promote oil exploration in the Chukchi and 04 Beaufort Seas; urging the United States Bureau of Safety and Environmental 05 Enforcement to reconsider and approve requests from Shell and Statoil for lease 06 suspensions in the Chukchi Sea Planning Area and Beaufort Sea Planning Area; urging 07 the Alaska Congressional delegation to continue its efforts to achieve consistent and 08 equitable outer continental shelf revenue sharing for the state; urging the United States 09 Congress to provide a means for equitable outer continental shelf revenue sharing 10 across all coastal oil and gas producing states to ensure the states develop necessary 11 infrastructure to support outer continental shelf development and preserve 12 environmental integrity; and urging the ongoing efforts to develop offshore oil and gas 13 in the Arctic Outer Continental Shelf.

01 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 02 WHEREAS the state contains a world-class hydrocarbon basin holding over 30 03 percent of the nation's technically recoverable oil and gas resources; and 04 WHEREAS Arctic Outer Continental Shelf oil and gas development would supply 05 natural gas to the Alaska liquefied natural gas project, ensuring the long-term success of the 06 project; and 07 WHEREAS the United States Bureau of Ocean Energy Management estimates the 08 existence of 4,300,000,000 barrels of oil in the Chukchi Sea; and 09 WHEREAS the state has a rich history of developing its resources in a sustainable 10 and responsible manner; and 11 WHEREAS the state can demonstrate its history of safely developing its fisheries, 12 timber, and oil and gas resources; and 13 WHEREAS it is in the best interests of the state to continue the safe and responsible 14 development of resources in the state; and 15 WHEREAS, before the sale, lease, or other disposition of state land, resources, or 16 property, the state, through the division of oil and gas, issues a best interest finding that 17 considers and discusses certain topics, including the reasonably foreseeable effects of the 18 disposal on the area's fish and wildlife, historic and cultural resources, and communities, and 19 incorporates mitigation measures that are designed to protect the landscape; and 20 WHEREAS the design and evolution of the best interest finding, in many cases, 21 matches or, in some cases, exceeds federal standards imposed in federally controlled areas 22 still available for oil and gas exploration and development; and 23 WHEREAS the state imposes standards to protect the landscape, including limiting 24 the timing and intensity of travel on the tundra so that winter travel on temporary roads will 25 do the least amount of damage; and 26 WHEREAS the state enforces strict requirements for oil discharge and contingency 27 plans for all operators on the Alaska North Slope; and 28 WHEREAS the state has taken proactive measures, including deferring areas in the 29 state's Beaufort Sea lease sale area where subsistence activity occurs, including areas 30 immediately adjacent to Cross Island, where whaling crews from Nuiqsut have set up their 31 whaling camp; and

01 WHEREAS the state will continue actively to address environmental standards, 02 including modern mitigation standards that protect subsistence activities on the Alaska North 03 Slope; and 04 WHEREAS the federal government has developed plans for leasing on a long-term 05 basis, including plans for annual lease sales in the Chukchi Sea and Beaufort Sea Planning 06 Areas in the 2017-2022 Outer Continental Shelf Oil and Gas Leasing Program; and 07 WHEREAS the United States Department of the Interior published a 2017-2022 08 Outer Continental Shelf Oil and Gas Leasing Program, which proposes one lease sale each in 09 the Chukchi Sea and Beaufort Sea planning areas; and 10 WHEREAS the federal government has limited immediate opportunities in several 11 areas in the Arctic, including, most importantly, the Arctic National Wildlife Refuge, the 12 National Petroleum Reserve-Alaska, and the Arctic Outer Continental Shelf; and 13 WHEREAS, under the Gulf of Mexico Energy Security Act of 2006, the federal 14 government recognizes the effect that oil and gas development in federal offshore areas has 15 on the states of Alabama, Louisiana, Mississippi, and Texas, and recognizes the contributions 16 to national energy, security, and economic interests made by sharing with those states 37.5 17 percent of revenue from leases covered under phase one of the Gulf of Mexico Energy 18 Security Act of 2006; phase two of the Gulf of Mexico Energy Security Act of 2006 expands 19 the definition of "qualified outer continental shelf revenue" and continues to share revenue on 20 an adjacency factor but includes an annual revenue-sharing cap of $500,000,000 that applies 21 through 2055; and 22 WHEREAS the federal government fails to recognize the same effects on and 23 contributions made by other oil and gas producing states adjacent to federal outer continental 24 shelf areas, such as this state; and 25 WHEREAS, had outer continental shelf revenue sharing of 37.5 percent been in place 26 since 2003, the state would have benefitted from additional revenue, in an amount estimated 27 to be between $942,000,000 and $1,300,000,000, for necessary infrastructure, such as marine 28 ports, airports, utilities and housing, and increased state services, such as oil spill and 29 emergency response and environmental monitoring and mitigation; and 30 WHEREAS, on October 16, 2015, the United States Department of the Interior 31 cancelled future Outer Continental Shelf oil and gas lease sales in the Chukchi Sea Planning

01 Area and Beaufort Sea Planning Area, scheduled for 2016 and 2017, respectively; and 02 WHEREAS, on October 16, 2015, the United States Bureau of Safety and 03 Environmental Enforcement denied requests from Shell and Statoil for lease suspensions in 04 the Chukchi Sea Planning Area and Beaufort Sea Planning Area; and 05 WHEREAS, by actively managing its property, the state can induce the federal 06 government to continue to pursue hydrocarbon resources in the Arctic; and 07 WHEREAS the state should form a strategic alliance with all affected local 08 municipalities to identify the long-term needs of the state and local entities for rights-of-ways 09 for critical infrastructure; and 10 WHEREAS the Department of the Interior needs guidance from the state on the 11 number of lease sales and the timing of those lease sales; 12 BE IT RESOLVED that the Alaska State Legislature opposes the recent decisions of 13 the Obama Administration to cancel future lease sales in the Chukchi and Beaufort Seas and 14 to deny the suspension of Shell and Statoil's leases; and be it 15 FURTHER RESOLVED that the Alaska State Legislature urges the United States 16 Department of the Interior to reconsider its actions and continue to promote oil and gas 17 exploration in the Chukchi and Beaufort Seas; and be it 18 FURTHER RESOLVED that the Alaska State Legislature urges the Alaska 19 Congressional delegation to continue its efforts to achieve consistent and equitable outer 20 continental shelf revenue sharing for this state, as is granted the Gulf States of Alabama, 21 Louisiana, Mississippi, and Texas; and be it 22 FURTHER RESOLVED that the Alaska State Legislature urges the United States 23 Congress to provide a means for equitable outer continental shelf revenue sharing across all 24 coastal oil and gas producing states to ensure the states develop necessary infrastructure to 25 support outer continental shelf development and preserve environmental integrity; and be it 26 FURTHER RESOLVED that the Alaska State Legislature urges the United States 27 Bureau of Safety and Environmental Enforcement to reconsider and approve requests from 28 Shell and Statoil for lease suspensions in the Chukchi Sea Planning Area and Beaufort Sea 29 Planning Area; and be it 30 FURTHER RESOLVED that the Alaska State Legislature urges the Obama 31 Administration to support ongoing efforts to develop offshore oil and gas in the Arctic Outer

01 Continental Shelf responsibly and acknowledge the need for equitable revenue sharing with 02 oil and gas producing states adjacent to federal outer continental shelf areas. 03 COPIES of this resolution shall be sent to the Honorable Barack Obama, President of 04 the United States; the Honorable Joseph R. Biden, Jr., Vice-President of the United States and 05 President of the U.S. Senate; the Honorable Paul D. Ryan, Speaker of the U.S. House of 06 Representatives; the Honorable Nancy Pelosi, Minority Leader of the U.S. House of 07 Representatives; the Honorable Mitch McConnell, Majority Leader of the U.S. Senate; the 08 Honorable Harry Reid, Minority Leader of the U.S. Senate; the Honorable Loretta Lynch, 09 Attorney General of the United States; the Honorable Sally Jewell, United States Secretary of 10 the Interior; the Honorable Hilary Tompkins, Solicitor, U.S. Department of the Interior; the 11 Honorable Daniel M. Ashe, Director of the U.S. Fish and Wildlife Service; the Honorable 12 John C. Cruden, Assistant Attorney General for the Environment and Natural Resources 13 Division; Brian Salerno, Director of the Bureau of Safety and Environmental Enforcement; 14 Richard L. Trumka, President of the AFL-CIO; James P. Hoffa, General President of the 15 International Brotherhood of Teamsters; and the Honorable Lisa Murkowski and the 16 Honorable Dan Sullivan, U.S. Senators, and the Honorable Don Young, U.S. Representative, 17 members of the Alaska delegation in Congress.