Local residents challenge core hole decision

MAT-SU -- A week after Department of Natural Resources officials gave Evergreen Resources Alaska Inc. the thumbs-up to drill three core holes on shallow gas leases on state land in the Valley, a local group has appealed its decision.

DNR announced on Dec. 16 its approval of Evergreen's plan to drill seven test holes around the Valley. The decision wraps up an extended public comment process through which the department gathered about 110 public comments in reference to the core hole drilling plan. Although most of the public comments were opposed to DNR's granting approval for Evergreen to drill the holes, a letter from DNR Natural Resources Specialist Matt Rader said the public comments were overruled.

"The primary concern [of the public comments] is not with drilling the core holes themselves," Rader wrote. "The concern is with the existence of the leases and uncertainty over impacts to drinking water aquifers, surface property rights, lifestyles, existing land use and the quality of life that might result if the leases are developed for coal-bed methane.

"A large majority of the public comments request a moratorium on all shallow gas permitting and activity until a buyback of the leases can be explored," Rader continued in the letter.

Rader later stated a buyback was not a decision DNR was qualified to make.

"Ultimately, the question of whether to buy back these leases is a political one that would require a legislative grant of authority to DNR to negotiate and execute any such buy back," Rader wrote. "Without any authority to consider buying back these leases, it is inappropriate for DNR to deny this application based on the possibility that these leases may be considered for buy back."

But some Valley residents are challenging that statement. On Monday, Friends of Mat-Su, a Valley nonprofit with a membership of about 300, joined three Valley residents in requesting DNR Commissioner Tom Irwin to reverse the core hole drilling approval. Willow resident Steve Charles, Wasilla resident Myrl Thompson and Palmer resident Scott Haan are the three residents who launched the appeal.

"The borough and the Legislature are considering rule changes and possibly even a lease buyback," Thompson said in a press release issued Monday. "Meantime, it's 'Damn the torpedos, full speed ahead,' while the citizens are told to sit quietly and watch the drilling."

Rader's letter of approval set out the guidelines for an appeal. According to the letter, any person affected by the decision may appeal it by Jan. 6. An appeal won't stop the drilling -- that decision takes effect immediately, Rader's letter said.

Chris Whittington-Evans, FoMS president, said those who filed the appeal hope the drilling will be put on hold long enough for the appeal to be carefully considered. Although DNR dismissed the argument held by some who submitted public comments opposing the drilling that DNR had no authority to hold up the core hole permits on the grounds that a lease buyback may be issued, Whittington-Evans said the appeal challenged that stance.

"The public can't trust in a process when the state is sort of going ahead with development as they see it, by approving the core holes," Whittington-Evans said. "There's going to be an inevitability of development … as long as you allow exploration to continue."

The appeal, Whittington-Evans said, requests that the core hole permits be denied for those reasons and because the regulations governing coal-bed methane drilling are under revision.

"This program is flawed in many ways," Whittington-Evans said. "The leases themselves seem like they run contrary to some aspects of the constitution."

If the appeal isn't granted, the decision can be further appealed in Alaska Superior Court. Whittington-Evans said FoMS has never been directly involved in a lawsuit before, but it's a decision they're considering.

"The next step, if we take it, will be done with a level of seriousness -- that we don't have another recourse," Whittington-Evans said. "But it's not our next step, per se."