The State of Alaska has moved to intervene in a federal court case in which the Native Village of Point Hope seeks to rescind dozens of leases issued by the federal government under an off-shore oil and gas lease sale conducted for federal waters in the Chukchi Sea (Leases, 2009, p. 1).
Just hours after being sworn into office, Attorney General Dan Sullivan said, “One of my highest priorities as Alaska’s attorney general is to vigilantly safeguard and defend Alaska’s interests, particularly as they relate to economic opportunities for Alaskans and the balance of state and federal rights and responsibilities. This case entails both such interests” (Leases, 2009, p. 1).
“The ultimate outcome of this case will likely have enormous economic consequences – either positive or negative – for the state of Alaska and our citizens,” Governor Palin said (Leases, 2009, p. 1).
Sullivan added that the state’s intervention is “necessary to protect the state’s interests, which are extensive and cannot be adequately represented by the other parties in this proceeding” (Leases, 2009, p. 1).
The plaintiffs contend that the decision by the U.S. Mineral Management Service to conduct the lease sale for the Outer Continental Shelf, along with the environmental impact statement underlying that action, violated federal law, including the Endangered Species Act. The lawsuit seeks to void all of the leases issued in the sale. If successful, this lawsuit conceivably could set back development of the OCS for decades (Leases, 2009, p. 1).
The case was filed in January 2008. The plaintiffs have filed for summary judgment, and responses from the federal government and from intervening parties ConocoPhillips and Shell are due July 17 (Leases, 2009, p. 1).
In the pleadings filed by Attorney General Sullivan, the state argues that its intervention is now important because of the change in the federal administration this year: “Although the state hopes its interests will continue to be aligned with those of the federal defendants, in an abundance of caution, the state must act to ensure its interests are protected until such time that the new federal administration’s policy positions are fully articulated” (Leases, 2009, p. 1).
The memorandum to the court describes the state’s significant interests in the litigation, observing that the oil and gas industry is the largest part of the private employment sector in Alaska and provides 90 percent of the general fund revenue for state government. “If these activities are curtailed,” the state notes, “Alaska will be harmed by the loss of property tax revenues, employment, and income to local communities” (Leases, 2009, p. 1-2).
Rescission of the leases would curtail not only substantial expenditures necessary to identify desirable tracts in federal Arctic waters but also would have a chilling effect on industry’s willingness to participate in future lease sales off Alaska’s coast and adversely impact development of adjacent state land, according to a statement by Kevin Banks, Acting Director of the Department of Natural Resources’ Oil and Gas Division (Leases, 2009, p. 2).
Banks also noted that oil from the Chukchi Sea could lower the unit cost for all oil if shipped through the TransAlaska Pipeline System, thus increasing state royalties and taxes from development on state lands. Eliminating this potential would frustrate the state’s goal of realizing the constitutional imperative for maximizing resources for the benefit of all Alaskans, he said (Leases, 2009, p. 2).
Commentary — Transformational Leadership Aspect
Governor Palin’s new attorney general took on a difficult case within hours of being sworn in. There was no celebration, no transition period. He went straight to work. Talk about “hit the ground running.”
Attorney General Sullivan’s release more than adequately delineates the salient issue: the federal government wants to rescind drilling leases on Alaska’s Outer Continental Shelf (OCS). Like the Governor, he has significant subject matter expertise on energy. That’s one of numerous reasons why she hired him.
One can see clearly from this letter that he is 100% aligned with his leader’s vision. This was a winner. Together, Governor Palin and Attorney General Sullivan will form a dynamic duo to protect their state’s interests. The old saying “great minds think alike” could not be more apropos than in this circumstance.
Governor Palin has 17 years experience in making these hiring decisions under her hemline. Those who impugn her experience and qualification are simply ignorant to this fact and really need to view her accomplishments…
Commentary — Political Aspect
Earlier this morning, this author wrote about the politics of progress versus the politics of retrogression. The federal government under the current administration is absolutely engaged in the politics of retrogression. This administration wants to keep up the same miserably failed policies of the past three decades — no domestic drilling, no refineries, high fuel taxes, and all sorts of “greenery” thrown in to further interfere with energy production.
Governor Palin is turning pipe dreams into pipelines. Her administration is fighting to develop domestic energy sources. The federal government on the other hand wants high gas prices, gas rationing, white roofs and a tire pressure monitor in every vehicle. Obama and his cronies don’t know a thing about energy — when it comes to energy, their vision of “hope and change” is more of the same. We’ve done the same thing for 30 years that has failed and now we expect that doing it again is going to work? That’s called “insanity.”
We have a blithering idiot doing a man’s job in the White House and in this instance the best man for the job is a woman….
Sullivan, D.S. (2009, June 17). State seeks to intervene in OCS lease sale litigation. State of Alaska, Department of Law. Retrieved June 18, 2009 from: http://www.law.state.ak.us/pdf/press/061709-OCS_Lease_Litigation.pdf?id=1903