Hammond v. North Slope Borough

645 P.2d 750, 12 Envtl. L. Rep. (Envtl. Law Inst.) 20979, 17 ERC (BNA) 1656, 1982 Alas. LEXIS 409
CourtAlaska Supreme Court
DecidedMay 7, 1982
Docket5550, 5558, 5560 and 5561
StatusPublished
Cited by34 cases

This text of 645 P.2d 750 (Hammond v. North Slope Borough) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hammond v. North Slope Borough, 645 P.2d 750, 12 Envtl. L. Rep. (Envtl. Law Inst.) 20979, 17 ERC (BNA) 1656, 1982 Alas. LEXIS 409 (Ala. 1982).

Opinions

BURKE, Justice.

This appeal concerns a decision by the State of Alaska to lease offshore tracts in the Beaufort Sea for oil and gas exploration and development. That decision culminated in a lease sale held on December 11, 1979. The matter is before this court as a result of a suit filed by persons claiming that the lease sale will adversely affect the ecology and wildlife resources of the area and the centuries-old traditions and lifestyle of the Inupiat Eskimo people.

FACTS

The sale had its origin in November 1974, when the State of Alaska issued a lease [753]*753schedule which included three prospective Beaufort Sea lease sales. The sales were set for March 1976, September 1977 and July 1978. These sales were postponed, however, due to a dispute with the federal government over the ownership of certain tracts in the sale area. Efforts to resolve this dispute eventually led to the announcement of a joint federal-state lease sale, scheduled for December 1979.

On March 31, 1978, Governor Hammond announced a five year oil and gas leasing schedule. The schedule analyzed onshore and offshore leasing areas for oil and gas potential, environmental sensitivities and other factors, in an attempt to develop rationally the state’s oil and gas resources. In January 1979, a final five year leasing plan was submitted to the legislature for its consideration. This proposal included the December 1979, Beaufort Sea lease sale.

Public comments were solicited on the March 31,1978, proposal. Legislative hearings were conducted on the final five year plan by the Eleventh Alaska Legislature, and the Beaufort Sea sale was the subject of hearings held by the House Interim Committee on Leasing, the Senate Resources Committee, and the House Resources Committee.

The lands involved in the Beaufort Sea lease sale were determined in March of 1978, after a joint call by the state and federal governments. Public comments were submitted and, as a result of environmental considerations, substantial deletions to the total proposed area were made.

In May 1978, the Joint Federal/State Beaufort Sea Task Force (Task Force) was organized to assist the Commissioner and Secretary of Interior in developing a management plan for the sale. The Task Force was to assist in identification of problems associated with the lease documents, permits, regulations, guidelines, environmental impact statements, mitigating measures, presale procedures, operating requirements, exchange of data, postsale surveillance, unitization and drainage, and the interim agreement. The plan submitted by the Task Force was approved by the Secretary of Interior and the Governor in January 1979. In April 1979, a Joint Federal/State Draft Environmental Impact Statement (DEIS) was released. Hearings on the DEIS were held in May and June of 1979 in Fairbanks, Kaktovik, Nuiqsut, and Barrow. In addition to the oral testimony at the public hearings, numerous written comments were received. After a review of the comments concerning the DEIS, a Final Environmental Impact Statement (FEIS) was completed and released in August 1979.

In addition, a Joint Federal/State Issue Document (JF/SID) was prepared, which outlined for the Secretary of the Department of Interior and Commissioner Le-Resche the important issues regarding the sale and possible alternative methods for development of the area.

The Commissioner also had the benefit of the Beaufort Sea Outer Continental Shelf Assessment Program (OCSEAP), which began in 1976. The program was an interdisciplinary effort by government and private sector scientists to assess the effects of oil and gas exploration and development in the Beaufort Sea. The studies conducted by OCSEAP scientists provide the basis for many of the restrictions ultimately placed on the sale and on the lessees.

In August 1979, the federal government published a proposed notice of sale for its portion of the lease sale. The state published its required notices between October and December 1979. The notices contained information concerning the proposed lease sale, its location, the acreage involved, and the availability of specific lease terms. Also during that time period, a letter of invitation was sent by the Department of Natural Resources to the North Slope Borough, the villages of Kaktovik, Nuiqsut, Wainwright, and the City of Barrow inviting consultation with the Department of Natural Resources and soliciting comments on the proposed lease sale. No response was received from any of the named villages or the North Slope Borough.

On October 25, 1979, the Commissioner prepared written findings and a formal decision, as required by AS 38.05.035(a)(14). [754]*754He concluded that it was in the best interest of the state to proceed with the joint federal/state oil and gas lease sale on submerged state, federal, and disputed land in the Beaufort Sea.

The Commissioner’s findings and decision addressed the purpose of the lease sale, whether the Department adequately prepared for the sale to allow a responsible best interest decision, and whether the sale in all its particulars was consistent with the public interest. It analyzed the Beaufort Sea lease sale in terms of: (1) its social, cultural, environmental and economic impact on the state; (2) the social and industrial needs of the state, now and in the future; (3) the consistency with the Alaska Coastal Management Program (ACMP), as well as the proposed North Slope Borough Coastal Management Program; (4) environmental concerns and protections; (5) imposition of numerous stipulations and conditions to minimize any negative impact upon arctic wildlife, including whales, caribou, polar bear, seals, migratory birds, fish and other marine organisms; (6) the impact on the Inupiat Eskimos; and (7) the selection of bidding systems. Reference was made to the numerous documents and sources considered by the Commissioner.

On October 26, 1979, the Governor, the Commissioner, and the Secretary of Interior met, to discuss the final sale terms. As a result of agreements reached, on October 29, 1979, the joint federal/state notice of lease sale for the Beaufort Sea was signed.

The Beaufort Sea and nearby shore areas are habitat for many wildlife species. Included are the bowhead and grey whales, polar bear, seals, fish, caribou and great numbers of birds. At the present time, little is known about the breeding habits, mating activities, critical habitat and the effect of human activity on the whales. The bowhead has been listed as endangered since December 1970, under both the Federal Endangered Species Act and its predecessor, the Endangered Species Conservation Act of 1969. Commercial whaling of the bowhead has been prohibited since 1946 by the International Convention for the Regulation of Whaling. Present estimates of the bowhead population range between 1,783 and 2,865 animals.

The FEIS recognizes the importance of subsistence activities to the Inupiat culture, and the substantial impact on the Inupiat society which would result from significant reductions in their subsistence resources. It points out that the Inupiat people rely heavily on many of these species for subsistence, particularly the bowhead whale. The significance of subsistence activities is not limited to food gathering, but involves social and cultural identification of a traditional and unique lifestyle. Whaling, for example, serves to integrate the community socially and culturally, in addition to providing the Inupiat with an important food source.

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Bluebook (online)
645 P.2d 750, 12 Envtl. L. Rep. (Envtl. Law Inst.) 20979, 17 ERC (BNA) 1656, 1982 Alas. LEXIS 409, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hammond-v-north-slope-borough-alaska-1982.