STATE CAPITOL 

1'0. Box I I 000 I 

juneau . AK 9981 1-000 I 

907-465-3500 

fax: 907-465-3532 

Governor Bi ll Walker 

STATE OF ALASKA 

April29, 2015 

Dr. James Kendall 

Alaska Region Director 

Bureau o f Ocean Energy Management 

3801 Centerpoint Drive, Suite 500 

Anchorage, AK 99503-5820 

~~©~O {W 

MAY 0 5 ZOi5 

Regional Direclor, Alaska OCS 

Bureau of Ocean Energy Management 

Anchorage, Alaska 

550 West Seventh Avenue. Suite 1700 

Anchorage. AK 9950 I 

907-269-7450 

fax 907-269-746 1 

1mw. Gov.Aiaska.Gov 

Governor@ Alaska. Gov 

Re. Revised Shell Gulf of Mexico, Inc. 2015 Chukchi Sea bxploration Plan (H ..evision 2) Call for 

Comments 

Dear Dr. Kendall: 

Thank you for the opportunity to review the Shell G ulf o f Mexico, lnc. (Shell) Revised 201 5 

Chukchi Sea Exploration Plan (EP). The State of Alaska remains fully supportive of Shell's effons to 

conduct exploratory drilling in the Chukchi Sea. It is important that safety and environmental 

standards protect Alaska's waters and coastline, as well as our citizens' access to healthy and 

sustainable subsistence resources. We support the operational standards that have been included in 

the EP to enable Shell to respond to a range of spill volumes, from small operational spills up to and 

including a worst case discharge event associated with a blowout. 

Responsible exploration of Alaska's O uter Continental Shelf (OCS) is critical not only to Alaska's 

economy, but to the economy of the nation. The State of Alaska and Alaskans alike continue to have 

a tremendous stake in the timely progress and successful completion of leasing, exploration, and 

development of Alaska's OCS resources. In a study conducted by the University of Alaska 

Anchorage Institute of Social and Economic Research (ISER), the U.S. economy would see an 

addition of 54,000 annual jobs, peaking at over 91,000, with a 5145 billion payroll over a 50-year 

period as a result of Alaskan OCS development. Potential National LeJJe/ Ben~fits of Alaska OCS 

Developmwt, p.ES-1, Febmary, 2011. Development of cl1e OCS could generate approximately 5193 

billion in government revenue. 

OCS development is also a prime source of the continued health and diversity of Alaska's onshore 

oil industry. Production from the OCS could have several positive effects including lower pipeline 

tariffs, extending the life of the Trans-Alaska Pipeline System (fAPS) pipeline, a more robust and 

lower cost service industry, and longer-lived onshore facilities; all of which are critical given the 

declining TAPS throughput and growing concern of TAPS operational challenges wid1out additional 

supply. 

Development of the OCS would also greatly help secure our nation's energy needs. Studies estimate 

iliat tl1e OCS contains 27 billion barrels of conventional oil and 132 trillion cubic feet of natural gas. 
Dr. James Kendall 

Shell Chukchi Sea 2015 EP 

April29, 2015 

Page 2 

Studies have also shown that Alaska's Beaufort and Chukchi Sea development could result in the 

production o f 700,000 barrels of oil per day for 40 years, in turn supplying more jobs, incomes, and 

energy for our state and nation, lowering our nation's trade deficit, and helping to meet President 

Obama's goal o f reducing the nation's reliance on foreign oil. 

In 2011 , Shell submitted to the Bureau of Ocean Energy and Management (BOE.M) a revised EP 

(EP Revision 1). This EP was subsequently approved by BOEM in December 2011. In accordance 

with the terms and conditions of BOEM's prior approval of EP Revision 1, Shell plans to continue 

exploration d1·illing operations at its Burger Prospect in the Chukchi Sea. This EP Revision 2 

includes Shell's plans to resume drilling operations at the currently approved drill sites located at the 

Burger Prospect. Shell plans to drill all sLx exploration wells using eitl1er the Discoverer and/ or the 

Mobile Offshore Drilling Unit (MODU) Transocean Polar Pioneer (Polar Pioneer). EP Revision 2 

includes simultaneous use o f both drilling units, plus some additional support vessels; whereas in EP 

Revision 1 only the drillship Discoverer was used. 

The State of !\Iaska continues to work closely witl1 BOEM to review Shell's submitted EP and has 

provided subject matter expertise as a Cooperating Agency during the Plan review. 

I thank you for the opportunity to provide comments on Shell's Revised OCS Chukchi Sea 

Exploration Plan. We look forward to working with BOEM on this plan and future actions in the 

OCS. 

Sincerely, 

Bill Walker 

Governor 

cc: The Honorable Mark Myers, Commissioner, Alaska Department of Natural Resources 

Craig Fleener, Arctic Policy Advisor, Office of tl1e Governor 

Kip Knudson, Director of State and Federal Relations, Office of the Governor 

Sara Longan, Executive Director, Office of Project Management and Permitting, Alaska 

Department o f_ atural Resources