Knowles discusses CBM issues

PALMER -- Former governor Tony Knowles has pledged to support property owners seeking more say in how and where coal-bed methane is developed in Alaska, a move popular among those advocating CBM development restrictions, but one that rankles an opponent in the race for Alaska's U.S. Senate seat.

Knowles, Monday, held a press conference at Colony Inn in Palmer to announce his support for a state buyback of the subsurface leases -- a move that drew cheers from the small crowd who gathered at the inn. He said if elected at the federal level, he'd also support a national document mirroring the Alaska Property Owners Bill of Rights, a document drawn up by several groups around Alaska that would increase landowners' rights in the development process. He'd also support the bill of rights' inclusion into state legislation, he said.

"First, we should get it back to the starting point by buying back the leases," Knowles said. "There has been, from the grass roots, developed a document called the bill of rights -- it's a framework around which we can assure the state develops those assets with the right values in place."

Knowles criticized his opponent, U.S. Sen. Lisa Murkowski, for what he said was a lack of action on CBM issues. The energy bill, he said, includes a $2 billion subsidy for the coal industry, including CBM developers.

"I have supported the role government can play in that as a protector of the people. It should never give a subsidy to a company that doesn't prove themselves as good corporate citizens first," Knowles said.

In advocating a buyback, Knowles said it wouldn't be the first time in Alaska history the state rethought its decision on an oil or gas lease. In 1976, the state sold numerous oil leases in the Kachemak Bay area. An oil rig got stuck in mud in Kachemak Bay triggering a groundswell of opposition to drilling in the area -- which had two years prior been declared a critical habitat area. According to information from the Alaska Department of Fish and Game, the state repurchased the leases they had sold to the oil companies. In the late 1990s, while Knowles was in office, development was stopped on federal leases in Bristol Bay in order to protect salmon runs critical to the local economy.

Knowles also voiced criticism for the way the new leasing program came about.

"If they made a mistake, why are they making property owners pay for that mistake?" Knowles asked.

Green party candidate for U.S. Senate, Jim Sykes said he believes Knowles is jumping on the bandwagon for CBM regulations simply because it's a hot-button issue. Sykes, last week, issued a letter to Knowles and Murkowski, asking them to join him in endorsing the Alaska Property Owners Bill of Rights, and in supporting its application to federal lands. "It's a government of the people, for the people and by the people," Knowles said. "We need to turn back to that."

Sykes said he's a little bewildered at Knowles' sudden interest in the issue. He pointed out that, for nearly a year, he has researched the issue and spoken to state and local officials about adding protections for landowners. He said he finds it hard to believe Knowles' sudden interest is driven by more than the U.S. Senate campaign.

"He's good at saying what he thinks people want to hear," Sykes said, "but what has he done in the last 10 months?"