Borough studying CBM development before supporting it

Spectrum, by John Duffy

In a recent Spectrum article, Evergreen Resources CEO Mark Sexton questioned the Mat-Su Borough's position and intent on the development of coal-bed methane. While I appreciate the information he provided from the industry's perspective, he also spoke about the borough's involvement in the passage of House Bill 69, which I believe needs some clarification.

To begin with, the borough had no part in the sponsorship of HB 69. This bill was introduced by Rep. Vic Kohring, as reported by Mr. Sexton. The original bill did not contain the controversial language giving the state the right to override local controls. That language was amended into the bill in the Senate Resources Committee last April. Mr. Sexton stated "the borough worked closely with the Alaska Municipal League on this issue." This is not the case. We informed AML of our concern about the loss of local control. AML worked to try to minimize the effect of this bill on all communities statewide. They had minimal input from me in their process. I could not take a position on this bill since the borough assembly did not have time to discuss the matter and adopt a position. The bill passed shortly after the amendment was made.

He also states that HB 69 was done "with Mayor Anderson's encouragement," and that the mayor "proposed a compromise that provided comfort in the amount of the local control the borough now has in the bill." Again not true. Mat-Su Borough Mayor Tim Anderson played absolutely no role in passage or debate of HB 69. The administration and the borough lobbyist routinely discuss legislative matters and my policy is to bring the mayor and Mat-Su Borough Assembly this information in a public meeting as soon as possible. The fast pace that HB 69 was on did not allow me the time to present the matter to the assembly for them to take an official borough position.

Mr. Sexton is correct in saying the borough mayor, assembly and administration has been supportive of Evergreen's efforts. We remain supportive of responsible development. However, it is very apparent from the recent public meetings in the borough that the public has concerns with coal-bed methane development. There is also a general lack of information on the various aspects of coal-bed methane development as well as information about our local geology and hydrology. It is apparent we must do our homework on this industry, which is new to Alaska. The mayor and assembly are doing that now. They have directed to me to develop a local ordinance regulating CBM, to gather more information, and to consult with third-party experts who have had experience with this industry. I have developed an outline of the issues to be addressed. Some of the topics on the list include additional public notice, noise, groundwater, surface use agreements, master planning, setbacks, road and pipeline construction, and well density/spacing. The assembly has directed that work sessions be scheduled to obtain information on the general hydrology of the borough, the geology of the borough, and with other local government officials who are dealing with CBM.

We are also working with the state Department of Natural Resources commissioner to develop state guidelines and regulations for coal-bed methane development. This process will also allow the public the opportunity to participate in developing industry guidelines, the amount and form of public notice, regulations, and other requirements necessary to ensure that a proper balance is achieved. Once the commissioner's process is completed, and the assembly completes their work, we hope the public's concerns about coal-bed methane development will be adequately addressed. Then we can move forward with the responsible development of this industry.

John Duffy is the Mat-Su Borough manager.