Mat-Su residents need CBM to maintain lifestyle

Spectrum, by Penny Nixon

In a pathetic and predictable irony, ardent socialists in the form of the so called "Friends" of Mat-Su have been mauled by Article VIII of the Alaska Constitution (subsurface rights) which their socialist precursors inserted at statehood. Note that the definition of socialism is community control of the means of production, in this case gas production. For the out-of-state readers, the Alaska Constitution reserves subsurface rights to the people as a whole, and the state may grant leases over large areas which include private lands. In theory, a developer does not have to have the permission of the owner to cross or use their lands, but must pay damages. In reality, it would be economic suicide for a developer to do this on a large scale.

For the past 18 months, silly pseudoenvironmentalist sissified socialist Suttonites have attempted to impose their vision of socialism on the people of the Core Area by controlling private property through zoning. During this time they proposed trampling the very rights they now invoke in their hysterical anti-development rants. The spectacle Sept. 10 of a Sutton planning commissioner ranting uncontrollably at a public meeting was an illuminating and amusing sight which demonstrates the irrationality of their position.

It is a fitting (if bitter and predictable) reward that the many-headed monster they created now attempts to devour them. If I were a vengeful man, I would say "Serves them right," and leave them weeping in the dark in their socialist utopia of Sutton.

Surprisingly, however, I support their assertion of private property rights despite the limitation on those rights in the Alaska Constitution, but totally reject their uninformed and unscientific bleating about potential problems with shallow coal-bed methane development. In support of the assertion of private property rights mentioned above, I cite the U.S. Bill of Rights: Amendment XIV Section I (in part): Nor shall any state deprive any person of life, liberty, or property, without due process of law. A lawyer -- and likely most courts -- would claim that the Alaska Constitution was created by due process of law, however the U.S. Constitution claims in Article VI that "This Constitution, and the laws of the United States which shall be made in pursuance thereof, and all treaties made, or which shall be made, under the authority of the United States, shall be the supreme law of the land; and the judges in every state shall be bound thereby, anything in the Constitution or laws of any State to the contrary notwithstanding." The mere adoption of a State Constitution (or any law, for that matter) does not make it comply with the U.S. Constitution. Evergreen's public and written commitment not to trespass in Alaska unless they have an agreement with the land owner is recognition of the sensitivity of this issue for most land owners.

With regard to the production of gas from shallow coal-bed methane, here are the facts as it relates to Alaska:

1. Cook Inlet has produced 9.2 trillion cubic feet of gas in the last 40 years with which we have heated our homes and powered our industry. This production is projected to decline over the next 10 years. The Cook Inlet area has an estimated 200 Tcf (i.e. 20 times as much) producible from coal-bed methane. We (all Alaskans, and Mat-Su Borough residents in particular) need these resources to continue our lives as we currently do.

2. The state issues mitigation requirements when the lease is issued. These are not required by regulation (thankfully, as this document would be 400,000 pages to cover only a small percentage of the differences possible), but the developer would forfeit the lease if he does not comply with the limitations imposed by the state. These limitations may vary from site to site dependent on a multitude of factors including proximity to water bodies, dwellings and other resources.

3. The lessee must comply with state and federal water quality regulations as well as all other local, state and federal regulations, fish and game plans, critical habitat plans, sanctuary plans, ad nausea.

4. A bond is required with the amount dependent on the activity proposed and an estimate of possible damages.

5. The lessee may not enter surface private property holdings unless they have an agreement with the land owner or the lessee posts a surety bond. (Yes Martha, they could cross your land without your permission. For the record, Evergreen has publicly and in writing committed not to do so in Alaska. Other companies have not made such a commitment to date.)

6. The water produced by the gas well is reinjected below the coal seam to prevent large quantities of water being discharged at the surface. Some water will be trucked (meaning some road work), but the amount is insignificant over the long term and the water must comply with state and federal regulations wherever it is discharged.

7. The lessee pays a royalty to the state of 12.5 percent (if someone else has this rate in direct competition) or 6.25 percent if not in competition. The amount is based on net production after expenses. Additionally, a $1 per acre lease payment is required. A single lessee may not hold more than 138,240 acres.

8. The public gets to play in all of this at every level; i.e. notices are required and comment periods must be at least 60 days.

9. The bulk of public spending -- schools, roads, welfare, etc. -- in Alaska comes from oil and gas production. As most readers know, North Slope production has been declining rather steadily for the last 15 years and is projected to continue unless more production is implemented soon -- in the next two years.

10. It is likely that some problems will be encountered which are unanticipated. This is the nature of human existence, and is borne out by my experience in flight test and probably by the life experiences of most readers.

In conclusion, it is clear that the methodology proposed by Evergreen is rational and scientifically sound, the state is aggressively participating in the protection of residents and the community interest and the requirements imposed by the state are generally reasonable. Although the North Lakes Community Council Board has not formally adopted a position on this matter, it is my opinion that CBM development in the Mat-Su Borough is highly desirable, the risks are manageable and the benefits many. My comments to all concerned: "Drill well, drill deep, no toxic waste, no trespass on private lands."

Penny Nixon is the president of North Lakes Community Council in Wasilla.