April 30, 2021 — Oil and gas leasing isn’t allowed in Kachemak Bay. The state blocked development there after an oil rig got stuck and leaked oil into the bay in 1976.
But legislation proposed by Gov. Mike Dunleavy would allow the state to sell subsurface gas-only leases in part of Kachemak Bay, so oil and gas companies could drill into undersea reservoirs from miles away.
More broadly, the bill would permit subsurface leasing and drilling where surface drilling is currently prohibited. And the bill’s opponents say that would unravel state restrictions meant to protect wildlife.
Haley Paine, deputy director of the Alaska Division of Oil and Gas, told the House Fisheries Committee the point of the legislation is to capture royalties for the state.