Indigenous Environmental Network

OIL AND THE ALASKA NATIVE CLAIMS SETTLEMENT ACT

Map: Oil Exploration and Development in America's Arctic

Map: Proposed off shore Seismic, Leasing, and Drilling in Arctic Ocean

Map: Current and Proposed Oil & Gas Leases on Alaska' North Shore

By Rena Delbridge
Published Friday, July 3, 2009

FAIRBANKS --- The U.S. Fish and Wildlife Service on Thursday issued a decision against a controversial land exchange proposal on the Yukon Flats National Wildlife Refuge.

The service picked the no action² alternative from a range established in environmental studies. While the move falls short of a final word, it indicates the agency¹s direction, according to a news release. A final decision is expected in early 2010.

Exchange proponent Doyon Ltd., which hoped to drill for oil and gas on lands gained through the exchange, said the decision isn¹t a real blow. New information revealed through the environmental reviews might have prompted Doyon to turn down the trade in the end, said Jim Mery, Doyon vice president for lands and resources.

The corporation is talking with investors interested in exploring for oil and gas in the area, he said.

The FWS decision was welcomed by many in communities near the refuge, where some people feared the exchange would open a pristine area to outsiders and oil and gas development. It was disappointing to others who hoped development would spur needed jobs.

I¹m very happy, on behalf of the tribe,² said First Chief Michael Peters of the Gwichyaa Zhee Gwich¹in Tribe at Fort Yukon. This means a lot to us. I commend Fish and Wildlife.

He said the Yukon Flats is a pristine place² where Natives value clean air, clean water and a traditional lifestyle living off the land. Oil and gas development brings toxins, he said, and roads would bring an influx of outsiders that could alter a remote lifestyle.

Doyon, the Interior¹s largest Native corporation, first petitioned FWS almost six years ago to swap lands. Under the proposal, Doyon would have received 110,000 acres and oil and gas rights to another 97,000 acres of refuge lands. In exchange, the refuge would have picked up at least 150,000 acres owned by Doyon within refuge boundaries. Additionally, Doyon would have traded 56,500 acres of land within the refuge selected under the Alaska Native Claims Settlement Act, for acreage outside the refuge.

Now, Doyon will keep title to the 56,000 acres of land within the refuge, adjacent to other Doyon property.

Much of this acreage involves lands that have new oil and gas potential as a result of the U.S. Geological Survey work, Mery said.

FWS said U.S. Geological survey work in conjunction with the environmental review showed oil and gas resources might not be where originally thought. Doyon shared a large suite² of proprietary data with USGS for the study.

Mery said the work revealed more opportunities on Doyon lands, and it downgraded the potential of federal parcels.

Those factors, coupled with a much stronger oil price today compared to six or so years ago when this land exchange process started, has indeed cast doubts on whether Doyon would have gone forward with the exchange, he said.

Now, Doyon has an eye on very significant² prospects at Birch Creek, Beaver and Stevens Village, a small community about 30 miles from the Trans-Alaska Pipeline System.

Angela Ludwick is executive director of Tihteet Aii Inc., the corporation representing the Birch Creek tribe of about 200 members. She said the tribe was disappointed about the FWS decision, but it is optimistic that a partnership with Doyon could net the jobs the community needs.

We were for the development; we see that as a huge opportunity for a very poor tribe,² she said. There were no mixed feelings in Birch Creek Tribe. The people want to work; they want opportunities, they want opportunities for their children. ... But, it¹s actually working out for us.

The environmental impact statement prepared by FWS indicated prospective oil and gas resources on corporation land.

We feel very confident we can develop it very smartly and with considerations to the land and the environment, and I think us being involved will ensure that, Ludwick said.

FWS received more than 100,000 comments on a draft environmental impact statement released in January 2008. FWS spokesman Bruce Woods said most comments came from people living in villages near the refuge, but he could not provide a more detailed breakdown.

Key concerns included habitat fragmentation, negative impacts to traditional lifestyles through oil and gas development, and possible climate change in the future.

Peters said people want to keep their lands the way the are.

It's not easy out here in the Bush, but we¹re adjusting, he said, indicating a reluctance to open the area to outsiders, including sport hunters who might further deplete struggling moose populations.

According to the refuge Web site, residents of seven villages within or near the refuge use local resources for subsistence: Beaver, Birch Creek, Chalkyitsik, Circle, Fort Yukon, Stevens Village and Venetie. Some of the tribal corporations and Doyon own about 2.5 million acres of land within the refuge.