Good morning everyone. Committee will come to order. We meet this morning to consider opening a very small portion of alaskas 1002 area to responsible Energy Development to meet the 1 billion budget reconciliation instruction that our Committee Received last week. The 1002 area covers 1. 57 million acres of land in northeast alaska within the nonwilderness portion. You bring it over here, sean. Within the nonwilderness portion of an war. And i think its important to put this in context in terms of the areas we are talking about. Anwar itself is 19 million acres. Approximately the size of south carolina. The nonwilderness area, is approximately the size of delaware. The area here is designated as federal wilderness. So when were talking about anwr itself, i think its importedant to recognize there are parts that are designated as wilderness, parts within the refuge and parts, the 1002 area specifically been designated for consideration for oil and Gas Exploration. So again i want to be clear its not federal wilderness. Congress recognized the value when it designated as the molly wilderness. This area here. That is aen area that is protected. The coastal plain is separate. Its about the sides of delaware in a refuge the size of the state of south carolina. So the areas were talking about are significant and what alaskans are asking for is to develop just 2,000 federal acres. 1 10,000th of anwr. Thank you. We should also understand that if we open the 1002 area, the economic benefits will be substantial. Our nationalal security will be strengthened and the environmental impacts will be minimal. For starters we will create thousands of new jobs and they will pay the types of wages that support families and put our kids through colleges. And generate substantial revenue 10s of billions of dollars over the life of the field. Theres been some discussion as to whether or not we can meet our 1 billion instruction. The answer to that is a simple yes and i would remind the committee that the first 10 years are just the start. This is the smallest part of a 40year period where responsible production raises billions in revenues for our country every year. The Congressional Research service has estimated the federal treasury could, depending on oil crisis and the amount of resources ultimately produced, but it could raise anywhere from 48. 3 billion on the low end to 296. 8 billion over 30 years. And bear in mind that is new wealth and prosperity. New wealth. It will not be created, not redirected or repurposed like so much of what we deal with. Those revenues will directly reduce our debt while simultaneously reducing it on a greater scale. Opening the 1002 area will help to keep energy affordable. Here in the lower 48 weve somewhat forgotten what it feels like the pay 4 for a gallon of gasoline. Prices are moderate right now. We recognize that but we also know they dont necessarily stay that way. So we need take steps to plan for the long term and we need do that now, not in 10 years. To keep Energy Prices affordable. A number of experts are already pointing to the warning signs. Youve got the International Energy agency found that quote Global Oil Supply could struggle to keep pace with demand after 2020. Risking a sharp increase in prices unless new projects are proved soon. Now, some are going to argue that were doing just fine. Were producing more, exporting some. So we can turn our attention to other matters. But i think tahats a mistake. Were projected to remain a significant net importer and setting aside some of the shorter term concerns ive mentioned, even the more cautious forecast from Energy Information administration projects oil prices will be back above 100 a barrel by 2040. I think its also misleading to suggest whether the benefits will happen all at once and all in the near term. We know thats not true. We will see the benefit for decades. Not just over the 10year budget window. We talk a lot about where we were back in 1995, when the congress had had passed anwr and the President Trump clinton at that time vetoed the effort to open the 1002 area. 1995. Think about where we would have been had had that action not taken place. We wouldnt have seen as dramatic a run up of oil prices in the mid2000s. States like california would not be importing so much of their oil from abroad. But thats exactly what has happened as supply from alaska has declined. There is no question that opening the 1002 area is important for our state and our national economy. And we can be just as confidence that the new technologies that are in place and are still coming online will insure that responsible development does not harm the environment. Between the 1970s and today, the surface foot print of Arctic Development has decreased by about 80 . And several of our witnesses this morning will speak directly to that. But put it in context. What was once a 65acre pad now takes about 12 acres or less. And then below ground the extended reach drilling from single pad will grow to an area of 125 square miles by 2020. So just in a few years here and again well have mr. Shut speak to that. But thats an increase of more than 4,000 since we began Oil Exploration and production in the 1970s. And development in the arctic has always raised concerns about wildlife and the environment and appropriately so. But i would remind everyone here this morning because alaskans have been so careful with development, fears of impacts to our wildlife and land have repeatedly proven wrong. Most of our roads are now built from ice and melt in the summertime, leaving no impact on the tundra. Developers follow thousands of regulatory requirements, best practices and mitigation measures. We inventory and we assess wildlife and study their habitat so that we avoid any sensitive places. We always talk about the caribou. The central arctic caribou heard which lives year round in and around prudo bay increased from 3,000 animals in 1969, just pryer to development, to 5,000 when Development Began in 1974. And was at about 22,000 animals just this last year. Its now more than seven times larger than when Development Began. It also may surprise some to learn that were developing energy at Point Thompson, a point that my colleague knows very, very well. But this is located on state land, just two miles from the border of the 1002 area. That project at Point Thompson is being carried out responsi y responsibly. Its not harming the wildlife that cross the invisible western boundary. Again, defying the claims we hear about possible harm. For over 40 years now, alaskans have repeatedly prove. We can develop safely and responsibly and development in the 1002 area will be different. We will not harm the caribou who move through the area. We will not harm it polar bears whose dens can be protected. The snow geese whose nesting areas can be safeguarded or any of the other birds or wildlife that visit the coastal plain in the summer. We are sensitive to habitat in the region and care for it. And alaskans understand this and this is why more than 70 of us have supported opening the 1002 area to responsible development. Were also acutely aware that our state needs this and well hear this from our governor. Right now we have the highest Unemployment Rate in the country. We have massive budget deficits projected to last for quite a while and our transalaska pipeline system, the economic backbone of our state is just 1 4 full and we know full wellopening the 1002 area is not an immediate cure but we also know its something that we have to do today because the benefits of development will take time to fully realize. Its like the old saying. We say it a lot around here. The best time to plant a tree was 20 years ago. The second best time is now. And we need to take that first step today so that we can realize the benefits Going Forward. I was born in alaska. My husband and i have raised their boys there. I hope they lead long and healthy lives in a place that is so beautiful and gorgeous that it sometimes takes your breath away. What i know is that no one cares more for alaska as those of us who live and work and raise our families there. We love our state. We respect the land. We would never risk its future for the sake of development. But we also realize that is not the case here. The 1002 area was created by a congressional compromise. We always knew its future would require another one. And today alaskans are asking just that. Were not asking to develop all of the 1002 area. But instead were asking 2,000 acres or about 1 10,000ths of the refuge and weve waited nearly 40 years for the right technologies to come along so the foot print of development is small enough to if sure that environment continues to be respected and will not be harmed. This is not a choice between energy and it environment. Were past that. And what we have today is a great line up of witnesses to help our committee understand that. We have our entire alaska delegation with us. Our governor, our congressman, our senator. We have our Lieutenant Governor, a number of alaskans who live on the north slope. I thank all of our witnesses for being here this morning. I look forward to an excellent and informative hearing. Senator cantwell. And i welcome the governor and our colleagues to todays discussion. But i should start this by saying this hearing is a great departure from the strong working relationship that senator mar kousky and i have set to Work Together on an Energy Agenda that will move our country forward. Its too bad were not using our resources this morning to force our house colleagues to reconsider the very important bill that included 100 different priorities to move our country forward on everything from Cyber Security to Energy Efficiency. I also dont support the makeup of today pfsz panels. The fact our two colleagues that do not support opening the arctic wildlife refuge who have carried the bill this session and last senate were not allowed to be part of this panel and i believe we should have had had more witnesses from Indian Country that represent not just the alaskanative claim settlement act corporations and yes, corporations are charged with Economic Development. But individual tribal members, as we have seen throughout alaska and the United States of america dont support this kind of development because they believe in the wildlife nature that god has given us and that we are stewards of mother earth. So i thank them for that. I thank for them for their Strong Spiritual believes. Thank you. So were here today because someone has come up with a ludicrous idea that we can pass a tax reform bill that raises the deficit, increases our taxes and that will take a sliver out of a wildlife refuge to do it. I almost want to call this caribou for millionaires because it is the most ridiculous idea ive ever heard as it relates to meeting the tax reform agenda. So, no i dont like the set up of these three panels. Im always glad to hear from the governor and from our colleagues but our other colleagues should have had had their voices heard and Indian Country should have been better represented. We have no bill before us today. We have no bill and theres a proposed markup for next wednesday. When will we see that language . When will we have any idea about this process . So i am disturbed and i could go in a direction of saying that we dont have to worry because some of the press reports are that from Bloomberg News and others that quote the coastal Arctic Refuge doesnt have any oil rock formations and theres no great interest in developing the arctic wildlife refuge and there are safer bets. So one could have the attitude that there are, particularly with the Trump Administrations desire, im not sure where in the United States of america they dont want to drill but with their 1. 7 billion acres they want on the outer Continental Shelf and many other places in america, i find it hard to believe there will be the economic incentive to drill in the wildlife refuge. But why put a big x on something that has been so unique to the United States of america. When i recently researched why we got to this point and heard some of the first people that made their case to the Eisenhower Administration, quoting from their reports. Quote we all knew that it must be preserved as an original fragment of our past. The last opportunity to protect part of this continent as it once was end quote. Why . Because as other people said quote it was a spiritual place, an arctic wildlife refuge. The fact that quote they also said it was an area that had had been left undisturbed by man. That it was the last laboratory in which plants, animals and where they live as they have always lived is preserved end quote. So this is why we got to this point. And this is whats unique about it. And this is why from the Eisenhower Administration to today we have fought to protect it. Now, is alaskas economy of great concern to us as a nation . Yes. Do we in the Pacific Northwest . I think one of the first things i said when we started a discussion is lets dotalk abou why the natural gas pipeline hasnt been built because it has a bigger Economic Impact than this . So there are issues in which we need to be mindful about the Energy Economy moving forward but this idea is not new and its not better. Theres nothing thats changed here. Theres no new science that says we dont have to worry about this wildlife. And there is no new science that says that the Oil Development will take up a smaller foot print. This map that we will get to everyone basically shows that the development will take up a significant portion of the refuge. The 800mile long transalaska pipeline, 219 miles of Power Transmission lines and so on and so forth. So the notion that wildlife can exist in this unique environment in the same way with this development is just wrong. I look forward to hearing from secretary perry on this because i sent him a letter yesterday asking him how they can exist together. So well look forward to seeing how he answers that. I point out that the uniqueness of this area has entered into an International Agreement. It caribou population is so unique, so specific and so special that weve entered if had to an agreement with canada on it. Thats because they want to protect this population of caribou as well. So the notion we should move forward on a wrong headed idea because all the sudden people want some revenue for a tax bill and move forward today on something that we dont even know what were moving forward on in language is just not the way i think we should be proceeding. I hope that we will have a chance, our colleagues, to ask our witnesses questions about this but be assured that even though we dont agree with this process or the process of trying to get 51 votes to change the arctic wildlife refuge, we are never stopping, we are never stopping in trying to protect the arctic wildlife refuge and the uniqueness and to work with the Indigenous People who also support that idea. Thank you. Thank you, senator cantwell. We have several panels this morning and i appreciate not only our delegation being here but all the alaskans and the visitors that have joined us this morning. Very distinguished panel. We will be led off by our colleague, senator sullivan. He will be followed by the congressman for all alaska. Congressman young who has represented us in the house of representatives for 45 years. 45 years going on 46. And the panel will be rounded out by our governor. Governor walker has been in office now for three years, is a lifelong resident and has great leadership and i appreciate you being here as well, governor. Independent senator. Thats true. He is an independent. We dont talk about the political affiliations here of anybody. That is noted for the record. Senator sullivan, if you would like the leadoff. Thank you, all of my colleagues for the opportunity to say a few words on this very important issue for our country. Now many have claimed to be protectors of alaskas environment but with all due respect to my colleagues here today there are three people in congress who care more about alaskas environment than anyone else in the entire body. Senator murkowski, congressman young and myself. The fundamental disconnect in the 1002 area is that the debate has not kept up with alaskas high standards, the highest in the world and ill talk about that, in advancements to technology. So with all due respect a lot has changed. Responsibly developing the 1002 area is a win, win, win for our country. Create jobs, help grow the economy, increase Energy Security for americans and help protect the Global Environment and strengthen our National Security. Its these last two points i would like to emphasize. As you know alaska has the highest Environmental Standards regarding responsible Arctic Resource Development of any place in the world. I was in charge as the commissioner to department of Natural Resources and i can tell you whether its what we call no impact exploration or specific r