HomeMy WebLinkAboutRESOLUTION 2002-73Suggested by: Councilman Bannock
CITY OF KENAI
RESOLUTION NO. 2002-73
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, URGING THE U.S.
FOREST SERVICE TO APPROVE THE PLAN OF OPERATIONS FOR THE EXPLORATORY
DRILLING PROGRAM AT KATALLA, ALASKA.
WHEREAS, the Alaska Native Claims Settlement Act (ANCSA) of 1971, Section 12 (c) enabled
Alaskan Regional Native Corporations to select federal lands, however, Chugach Natives
Incorporated (now known as Chugach Alaska Corporation (CAC)) was restricted to selecting
lands outside the boundary of the Chugach National Forest, with the exception of historic sites;
and,
WHEREAS, subsequent to a lawsuit filed by CAC, the U.S. Secretary of Interior, the U.S.
Secretary of Agriculture, the State of Alaska's Commissioner of the Department of Natural
Resources, and Chugach Natives Incorporated (CNI) entered into a settlement agreement as
culmination of the Chugach Region Study required by Section 1430 of ANILCA and in addition
to land selection rights and a cash payment, CNI was granted development rights to oil and gas
in the Katalla Area; and,
WHEREAS, the proposed action is to approve the Plan of Operations and issue a special use
authorization for activities in the Plan of Operations, including, but not limited to construction
of a barge access ramp, establishment of a temporary staging area, and use and maintenance
of an existing temporary access road, (all on National Forest System lands), which begins at the
Katalla River and goes east to private land known as Claim No. 1; and,
WHEREAS, approval of the Plan of Operations will be beneficial to national security by easing
the dependence on oil imports; will cause minimal environmental impact through the use of
pre-existing developmental footprints on both federal and private property; will enable the
fulfillment of the Chugach Natives Incorporated settlement agreement; embodies the spirit of
Executive Order 13212 which offers expediting review of permits or other actions as necessary
to accelerate the completion of energy-related projects while maintaining safety, public health,
and enVironmental protections; and, it will create employment opportunities.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
that it urges the U.S. Forest Service to approve the Plan of Operations for the exploratory
drilling program at Katalla, Alaska.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this s~h day of November,
2002. ~ ' '~ ~ ~l
A~"~EST: ~ do~i~liams, l~ay~-r
Sharon Harris, Acting City Clerk
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Page 1 of 2
Carol Freas
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From: John O Williams [kenai_mayor@hotmail.com]
Sent: Tuesday, October 29, 2002 7:02 PM
To: bannock@hotmail.com; Carol Freas; Cary Graves; cpajoe@kcpas.com; cpajoe@altrogco.com;
duanebannock@hotmail.com; jim.bookey@acsalaska.net; justpat44@hotmail.com; Linda Swarner
Subject: Fwd: Katalla Permitting
As a follow-up to an agenda item for next meeting ......John
>From' "Popp, Bill"
>To' "John J. Williams (E-mail)", "Duane Bannock (E-mail)", "Linda Snow (E-mail)"
>Subject: Katalla Permitting
>Date' Tue, 29 Oct 2002 16:48:40 -0900
>This email is a requested follow up to conversations I had with Mayor
>Williams and City Manager Snow on 10/29. I offer the following information
>for your consideration:
>The Katalla site is the location of the very first commercial exploration
>and production oil wells drilled in Alaska. This site saw initial work in
>1909, and initially continued to operate through 1932. This site was never
>proven commercially viable and had lain dormant for several decades until
>the 1980's when new exploration efforts were attempted that again did not
>proceed into production. In the last year, Cassandra Energy Corporation has
>initiated permitting to begin new exploration efforts in the old Katalla
>field. This site is located on both private and state land and will work to
>produce oil and gas subsurface prospects that are located under the Chugach
>National Forest. These mineral fights are owned by the Chugach Alaska
>Native Corporation (CAC), but will revert to the Federal government unless
>commercially viable volumes of oil or gas are produced by 12/31/04. On
>behalf of CAC, Cassandra Energy Corporation is attempting to develop these
>mineral rights. To do so, it must obtain permits for both road access to
>the exploration site through the Chugach National Forest and for the
>exploration and extraction plans for directional drilling into the Chugach
>National Forest subsurface zones. Cassandra is currently in the midst of
>the final stages of trying to obtain the necessary permits from the U.S.
>Forest Service. A draft environmental impact statement is currently in the
>final stages of review. The public comment period for this EIS ended
>10/24/02. However, based on past practices, the U.S.F.S. will likely accept
>late comments from governmental entities such as the City of Kenai though
>this should be confirmed with the U.S.F.S. There is strong opposition from
>environmental organizations to these permits being issued.
>Further complicating this issue are the state regulatory and permitting
>processes that still must be completed. The Division of Governmental
>Coordination (DGC) suspended its review of this project on July 17, 2002,
>pending the outcome of the federal permit process. During the initial DGC
>review, the AK Department ofFish and Game raised concerns about some
10/30/2002
Page 2 of 2
>aspects of this project, which have purportedly been addressed by the
>U.S.F.S. within the draft EIS currently under review. If this project
>succeeds in obtaining the needed federal permits, then the DGC will begin
>its review process again. This project faces a number of hurdles because of
>its remote location, which is adjacent to the Copper River Delta, and the
>extreme sensitivity of communities within the Prince William Sound region to
>new oil development. However, this project repeats in many ways the themes
>of the recent public heating process for the UNOCAL permits for gas
>exploration within the Kenai National Wildlife Refuge. Both projectS have
>mineral rights owned by a native corporation. Both projects have access
>issues within federal lands. And both projects sites have a history of oil
>and gas exploration and production. Ultimately, the very remote nature of
>the Katalla project is making for a far more complicated development plan
>than the Swanson River Satellite plans in the Kenai National Wildlife
>Refuge. Also, the Swanson River project is focused strictly on natural gas,
>while the Katalla project is specifically seeking new oil reserves.
>
>This permitting issue is extremely complex by its very nature. It would be
>my recommendation that, if the City of Kenai chooses to provide supporting
>comments for this project, they should be generalized in nature. With the
>complications of state and federal regulations and permitting, ANILCA,
>ANCSA, the 1982 settlement agreement between the federal government and
>Chugach Alaska Natives Corporation and other regulatory processes, it may
>not be advisable at this time to weigh in on the specifics of this project
>within the context of any written comments in support of the project. The
>draft EIS itself consists of several hundred pages of sometimes highly
>technical information and stipulations.
>I hope this information is of help. Please let me know if I can be of
>further assistance.
>Bill Popp
>Oil & Gas Liaison
>Kenai Peninsula Borough
>43335 Kalifomsky Beach Road, Suite 16
>Soldoma, AK 99669
>907-262-6355
>cell 398-8245
>fax 262-6762
>bpopp~borough.kenai. ak.us
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10/30/2002
Page 1 of 2
Carol Freas
From: dohn d Williams [kenai_mayor@hotmail.com]
$ont: Wodnesday, Octobor 30, 2002 3:47 PM
To' amyj@xofficetech.com; bannock@hotmail.com; Carol Fmas; Gary Graves;
duanobannock@hotmail.com; jim.bookoy@acsalaska.not; justpat44@hotmail.com; Linda Snow;
Linda Swarner
Subject: Fwd' Katalla update
>From: "Popp, Bill"
>To: "John J. Williams (E-mail)", "Duane Bannock (E-mail)", "Linda Snow (E-mail)"
>Subject: Katalla update
>Date: Wed, 30 Oct 2002 13'11'19 -0900
>
>Here is an update on the Katalla project.
>
>The State of Alaska Division of Governmental Coordination has started the
>clock again on the review of the Katalla permits. Information requested by
>DEC regarding spill response plans has been submitted as well as additional
>information requested by Fish and Game. The review period for DGC is 50
>days or less.
>
>In talking with the DGC staffer assigned this review, it appears this
>application is even more controversial than I originally thought. Cassandra
>Energy, the applicant, is the company that did the previous work on the site
>in the 1980's. They "abandoned" the site previously and left a substantial
>amount of hazardous materials on-site when they quit the site. Katalla is
>still identified as a hazardous waste site according to DGC, which has
>raised the ire of a number of groups in the Cordova area. Other issues
>muddying the water include the impacts of the project on tourist lodges
>located on adjacent properties, impacts on the salmon beating fiver the
>barge will travel upstream through to reach the beach where off loading of
>materials will take place, and the storage plans for hazardous materials
>near salmon streams. Cassandra has incorporated a clean up of the previous
>contamination as part of their start up plan, but they do not have much
>trust from the local communities based on their past history, which makes
>the new plans even more suspect in the minds of those opposing the permits.
>
>Very touchy project. I do urge caution in how you present your support for
>this permit application. Please note that you should address your
>letter/resolution to both the U.S. Forest Service and the Division of
>Governmental Coordination in Anchorage. I can provide those addresses if
>you need them.
>
>Bill Popp
>Oil & Gas Liaison
>Kenai Peninsula Borough
>43335 Kalifomsky Beach Road, Suite 16
·
10/30/2002
Page 2 of 2
>Soldotna, AK 99669
>907-262-6355
>cell 398-8245
>fax 262-6762
>bpopp~borough.kenai.ak.us
>
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10/30/2002