FOR IMMEDIATE RELEASE: February 18, 2004 No. 04-028

Murkowski Looking at Intervening in NPR-A Lawsuit

(Anchorage) - Noting that the State of Alaska has significant interests
to protect, Governor Frank H. Murkowski this afternoon said he would ask
Attorney General Gregg Renkes to look into state intervention in a
lawsuit filed this week which challenges Secretary of Interior Gale
Norton's decision to open the National Petroleum Reserve-Alaska to oil
and gas leasing.

"Alaska has a great deal at stake at NPR-A, in terms of royalties, as
well as jobs and the economic activity associated with oil exploration
and development," Murkowski said. "The state clearly has an interest in
making sure NPR-A leases are kept on the Department of the Interior's
schedule.

"I am confident that the BLM went through a complete and thorough public
process in crafting the Environmental Impact Analysis that has most
recently come under attack. Murkowski said. "It is important to
remember that NPR-A is a petroleum reserve and BLM has a responsibility
to balance environmental protection with oil and gas development. A
review of BLM's conclusions demonstrates the high level of wildlife
protection that they have incorporated into their analysis. For
example, 1.5 million acres have been deferred for ten years while BLM
evaluates potential impacts. BLM has also committed to in-depth studies
related to Black Brant and caribou. It is refreshing to see a federal
organization that is making a real commitment to collecting and
evaluating scientific information before it makes hard and fast
decisions that will affect Alaskans for decades to come.

"Once again, we find the 'lock-up Alaska' attitude of the environmental
organizations has resulted in a legal challenge to the public process,"
Murkowski said. "I'm sure they would like nothing more than to be able
to delay indefinitely any reasonable use of the National Petroleum
Reserve. The fact is that it is a petroleum reserve. It should be used
for the purpose for which it was aside in 1923. Reducing America's
dependence on foreign oil is a laudable objective of the Bush
administration, but it is not compatible with the agenda of the
environmentalists."

The NPR-A contains 23 million acres of land, about the size of Indiana.
Since its creation, there have been 54 exploration wells drilled at
NPR-A, and more than 16,000 miles of seismic data collected. Three more
wells are scheduled for completion this winter season, and commercial
discoveries have been announced in the northeast quadrant, the area
closest to Prudhoe Bay. Most recent reports by the U.S. Geological
Survey estimate the area contains between 1.3 and 5.6 billion barrels of
economically recoverable oil, and between 40 and 80 trillion cubic feet
of gas.
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