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Alaska development agency may eye some exploration work next winter in Arctic refuge after ruling

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Alaska development agency may eye some exploration work next winter in Arctic refuge after ruling


The Alaska Industrial Development and Export Authority (AIDEA) in Midtown Anchorage in March 2023. (Bill Roth / ADN)

A state development agency might consider doing some oil exploration work in the Arctic National Wildlife Refuge next winter, following a federal judge’s ruling Tuesday that the Biden administration lacked authority to cancel the agency’s oil and gas leases there, an agency official said.

The Alaska Industrial Development and Export Authority may not be able to pursue a full exploration program there next winter, with seismic surveys across the leases, agency executive director Randy Ruaro said in an interview Wednesday. But some seismic surveys — using seismic waves to map the subsurface — may be possible, he said.

That’s because the Biden administration threw up a major hurdle when it issued a decision in December that sharply limited exploration activity there, he said. That hurdle must still be removed, he said.

“They left part of ANWR open, even the Biden administration did, because they had to,” Ruaro said. “But quite a bit of it is zoned out.”

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The agency is challenging the decision in court. It can also work with the Trump administration, which supports drilling in the refuge, to reverse Biden’s decision, he said.

“We’ve got a couple options,” Ruaro said.

But it’s unknown how long either option will take, he said.

The possibility of drilling in the refuge took a big step forward in 2017 when the Republican-led Congress passed a law opening the refuge to development.

The state agency acquired the seven leases, totaling 365,000 acres in the northwest corner of the refuge along the coast, in a lease sale held in the final days of the first Trump administration.

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No major oil companies bid in that historic sale, and the state agency was the only bidder to hold on to its leases. But the Biden administration canceled the leases in 2023, citing legal flaws with the leasing program.

The 19.6-million-acre area for decades has been a battleground for pro-development advocates who say an oil discovery will help the economy and national security, and conservation and some Indigenous groups who fear it will threaten polar bears and caribou and add to climate pollution.

Judge Sharon Gleason, in her 22-page decision on Tuesday, said the cancellation violated the 2017 law calling for the refuge to be opened, because the Biden administration did not obtain a court order for the cancellation.

She sent the matter back to Interior, where the new Interior secretary, Doug Burgum, said last week that he plans to expand opportunities for oil and gas development in the 1.6-million-acre coastal plain of the refuge.

Alaska Gov. Mike Dunleavy and the Voice of the Arctic Iñupiat, representing elected Iñupiaq leadership from Alaska’s North Slope where the refuge is located, praised the decision.

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So did Alaska’s U.S. senators, who helped write the provision in the 2017 law opening the refuge, and freshman Rep. Nick Begich III.

“After the first Trump administration developed a good program and AIDEA secured seven leases, the Biden administration spent four years attempting to turn the program on its head,” Sen. Lisa Murkowski said in a statement from the delegation Wednesday. “While we lost years of development to their willful intransigence, this decision is an important step to getting things back on track.”

Conservation groups and the Gwich’in Steering Committee criticized Gleason’s decision for allowing the agency to keep its leases. They said the state development agency has no ability to extract oil and gas, and has been has been the subject of reports showing it has made poor financial investments.

“AIDEA is the ‘grim reaper’ of Alaska megaprojects — when they show up to spend money, smart investors stay away,” said Andy Moderow, senior director of policy for the Alaska Wilderness League. “We will continue to challenge their misguided attempts to industrialize the Arctic Refuge, so that the Coastal Plain can sustain continued and new traditions for generations to come.”

‘Valuable deposits’

The refuge’s remote location in northeast Alaska, and the controversy over drilling there, has likely limited bidding interest from oil companies. The Biden administration held a second lease sale for the refuge early this year, but receive no bids of any sort.

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Gleason’s decision suggested that the agency, which acquired its leases with the idea of working with exploration companies, could be sitting on sizable amounts of oil.

She said environmental reviews conducted under the first Trump administration and under Biden found that the coastal plain houses valuable deposits of oil and gas.

“Although these documents indicate that there are no proven plays, or groups of oil fields, due to the lack of oil and gas exploration in the Coastal Plain, they nonetheless confirm that the Coastal Plain contains valuable deposits according to the federal government’s best estimates,” Gleason wrote.

The U.S. Geological Survey in 1998 estimated that the refuge contains pools of oil that today would be comparable to large discoveries made in recent years in Alaska, far west of the refuge, such as at ConocoPhillips’ Willow field.

Ruaro said AIDEA has reviewed data from old wells drilled west of the refuge on state land. It’s also taken a new look at two-dimensional seismic surveys shot in the 1980s, when Congress allowed oil companies to drill the only well ever allowed in the refuge, he said.

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“We think we have a very good idea of what’s in the northwest corner of ANWR, on our leases, and we think there are billions of barrels of oil,” Ruaro said.

The recent announcement of an oil discovery just west of the refuge also highlights the area’s oil potential, Ruaro said. The partners announcing the find included Australian-based Santos and Bill Armstrong, the geologist whose work led to major discoveries in Alaska and prompted ConocoPhillips to take steps that led the company to Willow.

“We think those trends continue into ANWR,” said Ruaro, referring to geological patterns that could support a discovery.

Next steps on possible exploration in the refuge will be considered by the agency’s board, he said. The agency will work with partners like the community of Kaktovik, an Alaska Native village in the refuge, along with the North Slope Borough and the Voice of the Arctic Iñupiat, he said.

“I would say that all options to advance the project and development are on the table, and we’ll get full guidance from our board,” Ruaro said.

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The board will likely consider what it will take to soon acquire detailed, new seismic exploration data, known as three-dimensional seismic, which replaced the old 2D seismic technology, he said.

“3D is the goal,” he said.





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Alaska

Sand Point teen found 3 days after going missing in lake

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Sand Point teen found 3 days after going missing in lake


SAND POINT, Alaska (KTUU) – A teenage boy who was last seen Monday when the canoe he was in tipped over has been found by a dive team in a lake near Sand Point, according to a person familiar with the situation.

Alaska’s News Source confirmed with the person, who is close to the search efforts, that the dive team found 15-year-old Kaipo Kaminanga deceased Thursday in Red Cove Lake, located a short drive from the town of Sand Point on the Aleutian Island chain.

Kaminanga was last seen canoeing with three other friends on Monday when the boat tipped over.

A search and rescue operation ensued shortly after.

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Alaska Dive Search Rescue and Recovery Team posted on Facebook Thursday night that they were able to “locate and recover” Kaminanga at around 5 p.m. Thursday.

“We are glad we could bring closure to his family, friends and community,” the post said.

This is a breaking news story and will be updated when more details become available.

See a spelling or grammar error? Report it to web@ktuu.com

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Opinion: Homework for Alaska: Sales tax or income tax?

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Opinion: Homework for Alaska: Sales tax or income tax?


iStock / Getty Images

This is a tax tutorial for gubernatorial candidates, for legislators who will report to work next year and for the Alaska public.

Think of it as homework, with more than eight months to complete the assignment that is not due until the November election. The homework is intended to inform, not settle the debate over a state sales tax or state income tax — or neither, which is the preferred option for many Alaskans.

But for those Alaskans willing to consider a tax as a personal responsibility to help fund schools, roads, public safety, child care, state troopers, prisons, foster care and everything else necessary for healthy and productive lives, someday they will need to decide on a state income tax or a state sales tax after they accept the checkbook reality that oil and Permanent Fund earnings are not enough.

This homework assignment is intended to get people thinking with facts, not emotions. Electing the right candidates will be the first test.

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Alaskans have until the next election because nothing will change this year. It will take a new political alignment led by a reality-based governor to organize support in the Legislature and among the public.

But next year, maybe, with the right elected leadership, Alaskans can debate a state sales tax or personal income tax. Plus, of course, corporate taxes and oil production taxes, but those are for another school day.

One of the biggest arguments in favor of a state sales tax is that visitors would pay it. Yes, they would, but not as much as many Alaskans think.

Air travel is exempt from sales taxes. So are cruise ship tickets. That’s federal law, which means much of what tourists spend on their Alaska vacation is beyond the reach of a state sales tax.

Cutting further into potential revenues, state and federal law exempts flightseeing tours from sales tax, which is a particularly costly exemption when you think about how much visitors spend on airplane and helicopter tours.

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That leaves sales tax supporters collecting from tourists on T-shirts, gifts for grandchildren, artwork, postcards, hotels, Airbnb, car rentals and restaurant meals. Still a substantial take for taxes, but far short of total tourism spending.

An argument against a state sales tax is that more than 100 cities and boroughs already depend on local sales taxes to pay for schools and other public services. Try to imagine what a state tax piled on top of a local tax would do to kill shopping in Homer, already at 7.85%, or Kodiak, Wrangell and Cordova, all at 7%, and all the other municipalities.

Supporters of an income tax say it would share the responsibility burden with nonresidents who earn income in Alaska and then return home to spend their money.

Almost one in four workers in Alaska in 2024 were nonresidents, as reported by the state Department of Labor in January. That doesn’t include federal employees, active-duty military or self-employed people.

Nonresidents earned roughly $3.8 billion, or about 17% of every dollar covered in the report.

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However, many of those nonresident workers are lower-wage and seasonal, employed in the seafood processing and tourism industries, unlikely to pay much in income taxes. But a tax could be structured so that they pay something, which is fair.

Meanwhile, higher-wage workers in oil and gas, mining, construction and airlines (freight and passenger service) would pay taxes on their income earned in Alaska, which also is fair.

It comes down to what would direct more of the tax burden to nonresidents: a tax on income or on visitor spending. Wages or wasabi-crusted salmon dinners.

Larry Persily is a longtime Alaska journalist, with breaks for federal, state and municipal public policy work in Alaska and Washington, D.C. He lives in Anchorage and is publisher of the Wrangell Sentinel weekly newspaper.

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Nome brothers summit Mt. Kilimanjaro, carry Alaska flag to third major peak

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Nome brothers summit Mt. Kilimanjaro, carry Alaska flag to third major peak


ANCHORAGE, Alaska (KTUU) – Two brothers from Nome recently stood at the summit of Mount Kilimanjaro in Africa, planting an Alaska flag at 19,000 feet above the African plains.

The Hoogendorns completed the seven-day climb — five and a half days up and a day and a half down — trekking through rainforest, desert, and alpine terrain before reaching snow near the summit. The climb marks their third of the world’s seven summits.

Night hike to the top

The brothers began their final summit push at midnight, hiking through the night to reach the top by dawn.

“It was almost like a dream,” Oliver said. “Because we hiked through the night. We started the summit hike at midnight when you’re supposed to be sleeping. So, it was kind of like, not mind boggling, but disorienting. Because you’re hiking all night, but then you get to the top and you can finally see. It’s totally different from what you’d expect.”

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At the summit, temperatures hovered around 10 degrees — a familiar range for the Nome brothers. Their guides repeatedly urged them to put on jackets, but the brothers declined.

“We got to the crater, and it was dark out and then it started getting brighter out,” Wilson said. “And then you could slowly see the crater like illuminating and it’s huge. It’s like 3 miles across or something. Like you could fly a plane down on the crater and be circles if you want to. Really dramatic view.”

A team of 17 for two climbers

Unlike their previous expeditions, the brothers were supported by a crew of 17 — including porters, a cook, guides, a summit assistant, and a tent setup crew.

The experience deviated from their earlier climbs, where they carried their own food, melted snow for water, and navigated routes independently.

“I felt spoiled,” Wilson said. “I was like, man, the next mountain’s gonna be kind of hard after being spoiled.”

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Alaska flag on every summit

Oliver carried the same full-size Alaska flag on all three of his major summits, including in South America and Denali in North America, despite the added weight in his pack.

“I take it everywhere these days,” Oliver said. “It’s always cool to bring it out. And then people ask, you know, ‘where’s that flag from?’ Say Alaska.”

When asked about his motivation for the expeditions, Wilson said “I guess to like inspire other people. Because it seems like a lot of people think they can’t do something, but if you just try it, you probably won’t do good the first time, but second time you’ll do better. Because you just got to try it out. Believe in yourself.”

Background and next goals

The Hoogendorns won the reality competition series “Race to Survive: Alaska” in 2023. In 2019, they were the first to climb Mount McKinley and ski down that season. Oliver also started a biking trip from the tip of South America to Prudhoe Bay with hopes of still completing it.

Kilimanjaro is their third summit. The brothers said they hope to eventually complete all seven summits, with Mount Vinson in Antarctica among the peaks they are considering next… all while taking Alaska with them every step of the way.

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