Oil Development Proposed for
McNeil River Tide Flats

The Department of Natural Resources, Division of Oil and Gas is requesting comments on a proposed oil and gas lease sale in lower Cook Inlet, STATE OF ALASKA OIL AND GAS LEASE SALE, COOK INLET SOUTH AREAWIDE 200. This sale surrounds the area previously proposed for oil development by Federal Lease Sale #149. Though the Governor objected to the Federal sale, this sale is proposed for the year 2001. The sale area includes the strip of state lands extending from shoreline out seaward for two miles covering an area from Cape Douglas north to Redoubt Bay, then crossing the inlet and running from Kenai south to Homer. It effectively encircles three-fourths of the area proposed in lease sale 149.

Secretary Babbitt asked Governor Knowles how he could object to Lease Sale 149 and allow this State sale to proceed. They both have similar risks for oil spills and the state lands are much closer to sensitive fish and wildlife areas, including all of Kamishak Bay and the McNeil tide flats. The Governors response was that he expected the development "MIGHT" occur from shore based platforms using directional drilling.

This sale, especially the inclusion of the McNeil tide flats, Augustine Island and Ursus Cove pose a great threat to McNeil River bears and bear viewing. Development in the flats presents a risk of oil spills that would immediately impact fish spawning areas in the lower McNeil River, as well as any bears in the area. Cleanup activities in the summer would cause conflicts between bears and cleaning crews and likely change bear behavior toward humans viewing them at the falls. This sale is in the preliminary review and planning stages. We hope to get the State to remove the Kamishak Bay, Cape Douglas, Augustine Island and Ursus Cove areas from the sale and incorporate very strict controls if any other areas are developed. We ask that the lease sale not proceed on an "ASSUMPTION" that directional drilling from shore based areas would occur, but that it be a "REQUIREMENT." With this method of development, drilling platforms could be placed away from any sensitive areas at locations where, should a spill occur, it could be easily contained, making cleanup a lot quicker, easier and less likely to cause bear/human conflicts.

We encourage our members again to write to Governor Knowles and the State Division of Oil and Gas to express your concerns with this sale and the conflicts with management of the McNeil River Sanctuary and Refuge areas. The Division of Oil and Gas is requesting comments be received by September 9th, 1996.

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