This is an archived version of this website that is no longer being updated. For current data, visit the latest version of the site.
Glossary
8(g)
The 8(g) zone is the offshore region within three miles of a state shoreline. A portion (27%) of revenue from production in the 8(g) zone is distributed to the respective states that border the zone. The 8(g) zone is named for the section within the Outer Continental Shelf Lands Act that designates it.
Abandoned mine land fee
A fee for current day coal production that funds reclamation of mines abandoned before 1977.
Accounting year
This data is based on transactions that were reported to and accepted into ONRR’s financial system in a given a year. Since companies are allowed to adjust and correct data up to seven years after a transaction takes place, accounting year data can include corrections for sales that took place in previous years. This data is most useful when analyzing dollars ONRR collected and disbursed in a given year.
Acquired lands
Acquired lands are public lands that were obtained by the federal government through purchase, condemnation, gift, or exchange.
Acquisition fee
A fee for securing an uncompetitive lease in place of a bonus.
Annual fee
A yearly maintenance fee for maintaining a claim.
APD
Application for permit to drill
Appropriation
There are two main congressional actions that result in federal spending: authorization and appropriation. A fund or recipient may be authorized to receive money during the federal budget process, but Congress must still designate a specific amount to be distributed to the fund or recipient. This process is called “appropriation”.
Authorization
An act of Congress to obligate funding for a program or agency. An authorization may be effective for one year, a fixed number of years, or an indefinite period. An authorization may be for a definite amount of money or for 'such sums as may be necessary.' The formal federal spending process consists of two sequential steps: authorization and then appropriation.
Barrel
In the U.S., an oil barrel is defined as 42 US gallons, and abbreviated as bbl.
bbl
Abbreviation for a unit of measurement of oil. One bbl, or oil barrel, is defined as 42 US gallons.
Biomass
Organic nonfossil matter used as fuel. Sources of biomass include wood, wood waste products, biofuel, and many plant-based materials.
BLM
The Bureau of Land Management (BLM) is part of the U.S. Department of the Interior, and manages exploration, development, and production of natural resources on federal lands.
BOEM
The Bureau of Ocean Energy Management (BOEM) is part of the U.S. Department of the Interior, and is responsible for managing the development of energy and mineral resources on the U.S. Outer Continental Shelf.
Bonus
The amount the highest bidder paid for a natural resource lease.
BSEE
The Bureau of Safety and Environmental Enforcement (BSEE) is part of the U.S. Department of the Interior, and is charged with promoting safety, protecting the environment, and conserving resources offshore through regulatory oversight and enforcement.
Calendar year (CY)
The calendar year runs from January 1 through December 31. The two annual time periods for reporting data are calendar year and fiscal year.
Claim-staking fee
A fee that covers the government’s administrative costs in the claim-staking process for mining on federal lands.
Coastal political subdivision
A state's political subdivision, such as a county, parish, borough, or city. The political subdivision must be within the coastal zone as defined in the Coastal Zone Management Act of 1972.
Civil society
People and organizations not associated with industry or government, such as trade unions, issue-based coalitions, faith-based organizations, indigenous-peoples movements, the media, think tanks, and foundations.
Crude oil
Oil is that is not treated or refined.
Direct use
Geothermal energy (hot water near the surface of the earth) can be used directly for heating buildings, drying crops, heating water, and other industrial processes.
Disbursement
After collecting revenue from natural resource extraction, the Office of Natural Resources Revenue (ONRR) distributes that money to different agencies, funds, and local governments for public use. This process is called “disbursement.”
Dry natural gas
Natural gas that remains after removing the liquefiable hydrocarbon portion from the gas stream (i.e., gas after lease, field, or plant separation) and after removing any quantities of nonhydrocarbon gases that render the gas unmarketable.
DOI
The U.S. Department of the Interior (DOI) is a Cabinet-level agency responsible for managing America’s natural and cultural resources.
Environmental Impact Statement (EIS)
A document intended to provide decision makers and the public with information about the potential impacts of major federal actions and alternatives to them. Federal agencies prepare an EIS if a proposed federal action is determined to significantly affect the quality of the human environment, as required by the National Environmental Policy Act (NEPA).
EITI Standard
The Extractive Industries Transparency Initiative Standard is an international standard for openness around the management of revenue from natural resources. Governments disclose how much they receive from extractive companies operating in their country and these companies disclose how much they pay. Governments sign up to implement the EITI Standard and must meet seven requirements. In 2017, the U.S. withdrew from EITI as an Implementing Country, but remains committed to institutionalizing the EITI principles of transparency and accountability.
Extractive industry
Oil, gas, and mining industries that extract natural resources.
Fair market value
The estimated price for a natural resource lease, based on the government’s analysis and the geological resources on the lands or waters.
Federal land
Lands and waters owned by the federal government, including public domain lands, acquired lands, and the Outer Continental Shelf.
Fiscal year (FY)
The federal government’s fiscal year runs from October 1 through September 30. The two annual time periods for reporting data are calendar year and fiscal year.
Fossil fuel
An energy source formed in the Earth’s crust from decayed organic material. Common fossil fuels include oil, gas, and coal.
Fractionation
The division of ownership among multiple individuals.
GOMESA
The Gulf of Mexico Energy Security Act (GOMESA) of 2006 directs a portion of revenue from gulf oil and gas royalties to the states of Alabama, Louisiana, Mississippi, and Texas. The act also directs a portion of gulf revenue be disbursed to the Land and Water Conservation Fund.
Gross domestic product (GDP)
A measure of the total value of goods and services produced in a specific area. The Bureau of Economic Analysis measures GDP by adding up the “real value added” for each industry that contributes to the U.S. economy.
Hydraulic fracturing
A well development process that involves injecting water under high pressure into a bedrock formation through the well, to increase the size and extent of existing bedrock fractures.
IMDA
The Indian Mineral Development Act of 1982, which increased Indian self-governance concerning extraction.
Independent Administrator (IA)
The EITI International Board requires participating countries to appoint an Independent Administrator to help apply the international standards. The USEITI Independent Administrator is Deloitte & Touche LLP.
Indian lands
Lands owned by Native Americans, including tribal lands held in trust by the federal government for a tribe’s use, Indian allotments held in trust by the federal government for individual use, and lands held by Alaska Native corporations.
Kilowatt hour (kWh)
A measure of electrical energy equivalent to a power consumption of 1,000 watts for 1 hour; abbreviated as kWh.
kWh
Abbreviation for “kilowatt hour,” a measure of electrical energy equivalent to a power consumption of 1,000 watts for 1 hour.
Land and Water Conservation Fund
Provides matching grants to states and local governments to buy and develop public outdoor recreation areas across the 50 states.
Lease
A contract that allows a company to be the exclusive entity that can apply to explore for and extract natural resources within a specific tract of federal lands or waters.
Lease condensate
Light liquid hydrocarbons recovered from oil and natural gas wells during production.
Locatable minerals
Locatable minerals are minerals that may be “located” and obtained by filing a mining claim. Locatable minerals include gold, silver, copper, lead, and many other metallic and nonmetallic minerals.
long ton
A long ton (also known as “imperial ton” or “displacement ton”) is 2,240 pounds, compared to a conventional ton (or “short ton”), which is 2,000 pounds.
Margin of variance
The percentage difference that the USEITI Multi-Stakeholder Group defined as significant for each revenue type as part of the reconciliation process.
Material variance
A discrepancy between government-reported and company-reported revenue payments that is considered significant by the Independent Administrator. Margins of variance vary by revenue type, and were approved by the Multi-Stakeholder Group as part of the USEITI process.
mcf
1000 cubic feet, a unit of measure for natural gas.
Megawatt Capacity (MC) fee
A revenue payment for the calculated value of electricity generated on federal lands.
Megawatt hours
One megawatt is equivalent to one million watts. One megawatt hour (abbreviated as Mwh) is equivalent to 1,000 Kilowatt hours.
Metric ton
One metric ton is equal to 2240 pounds. To convert metric tons to tons, multiply by 1.1023. To convert tons to metric tons, multiply by 0.9072.
Millage tax
A millage tax is a property tax based on the assessed value of a property. Millage tax rates are quantified in terms of mills: One mill is worth 1/1000 of a dollar, or $0.001.
Mill levy
A mill levy is calculated by determining how much revenue each taxing jurisdiction will need for the upcoming year, then dividing that projection by the total value of the property within the area.
Mill rate
A mill rate is the amount of tax payable per dollar on the assessed value of a property. Each mill is worth one-tenth of a cent, or $0.001.
Mineral acres
Sometimes the land’s surface owner is different from the owner of the minerals in the ground below. For instance, a state might retain mineral rights when it sells or swaps land.
Mineral resource potential
According to the U.S. Geological Survey, mineral resource potential is the likelihood for the occurrence of undiscovered mineral resources in a defined area.
Multi-Stakeholder Group (MSG)
A cross-sector body comprised of members and alternates from government, industry, and civil society organizations commissioned by the Secretary of the Interior to guide and monitor EITI implementation.
Natural gas liquids (NGL)
Natural gas liquids, such as ethane, propane, and butane, are byproducts of wet natural gas. These liquid hydrocarbons are separated from the gas stream close to the well or at a processing plant.
North American Industry Classification System (NAICS)
The standard used by federal agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. economy.
ONRR
The Office of Natural Resources Revenue (ONRR) is part of the U.S. Department of the Interior, and is responsible for collecting, disbursing, and verifying federal and Indian energy and other natural resource revenue.
Operating fee
A fee for a percentage of the anticipated value of wind energy produced on federal waters.
Outer Continental Shelf
The part of the continental shelf under federal jurisdiction, seaward of the line that marks state ownership, often three miles off a state’s coastline.
OSMRE
The Office of Surface Mining Reclamation and Enforcement (OSMRE) is part of the U.S. Department of the Interior, and is responsible for regulating surface coal mining in the United States, as well as funding the restoration of abandoned coal mines.
OST
The Office of the Special Trustee for American Indians (OST) is part of the Department of the Interior and is responsible for stewardship of assets held in trust on behalf of American Indians.
Paying quantities
Quantities of oil or gas that are sufficient to yield a profit to the lease holder over operating expenses, even though the drilling costs or equipping costs are never recovered, and even if the undertaking as a whole may result in a loss to the lease holder.
Petroleum products
Products come from processing crude oil (including lease condensate), natural gas, and other hydrocarbon compounds. These include unfinished oils, liquefied petroleum gases, pentanes plus, aviation gasoline, motor gasoline, naphtha-type jet fuel, kerosene-type jet fuel, kerosene, distillate fuel oil, residual fuel oil, petrochemical feedstocks, special naphthas, lubricants, waxes, petroleum coke, asphalt, road oil, still gas, and miscellaneous products.
Play
A group of oil and gas fields in the same region formed by the same geological processes.
Private lands
Lands owned by citizens or corporations.
Production
We use the term “production” as a catch-all term for mining, drilling, energy generation, and other forms of natural resource extraction. There is no distinction between “extraction” and “production” in ONRR or EIA datasets.
Proved reserves
Quantities of natural resources that, by analysis of geological and engineering data, can be estimated with reasonable certainty to be commercially recoverable from known reservoirs and under current economic conditions, operating methods, and government regulations.
Public domain lands
Public domain lands are lands that have belonged to the federal government since they were obtained from the 13 original colonies, from Native American tribes, or through purchases from other countries, and have not been dedicated to a specific use.
Reclamation
The process of restoring the surface environment to acceptable pre-existing conditions, including surface contouring, equipment removal, well plugging, and revegetation.
Rent
An annual payment for leasing lands or waters before production starts.
Renewable energy
Energy resources that are virtually inexhaustible in duration but limited in the amount of energy that is available per unit of time. These include biomass, hydropower, geothermal, solar, wind, ocean thermal, wave action, and tidal action energy.
Resource advisory council (RAC)
A group of 12 to 15 members with diverse interests in local communities, such as ranchers, environmental groups, tribes, state and local government officials, academics, and other public land users.
Royalty
A payment for extracted natural resources, determined by a percentage of the resources’ production value.
Standard Occupation Classification
A system used by federal statistical agencies to classify workers into occupational categories for the purpose of collecting, calculating, or disseminating data.
State or local lands
Lands owned by state or local governments.
Split estate
A land parcel that has surface rights and subsurface rights (such as the rights to develop minerals) owned by different parties.
Subsurface rights
A lease holder’s right to use as much of the land beneath the surface as necessary to operate under the lease.
Subsurface mining
Underground mining, which has different and more labor intensive techniques than surface mining.
Surface rights
A leaseholder’s right to use as much of the surface of the land as necessary to operate under the lease.
Tax expenditures
Revenue lossess attributed to provisions of federal tax laws that allow a special exclusion, exemption, or deduction from gross income, or which provide a special credit, a preferential rate of tax, or a deferral of tax liability.
Tickets/pounds
Some minerals, such as quartz crystal, are sold in relatively small quantities in gift shops and tourist attractions. In some cases, tourists can buy admission tickets to dig for their own minerals. For those transactions, the Office of Natural Resources Revenue may collect royalties on the admission tickets, not on the weight of minerals collected. Furthermore, some minerals are sold by quality, not by weight. The unit “tickets/pounds” shows quantities measured in both tickets sold and weight sold, combined.
Ton
In the U.S., one ton is 2,000 pounds. In some countries this is referred to as a short ton.
Trust land
Land for which the federal government holds title to the land but the beneficial interest remains with a Native American individual or tribe.
Unorganized land
In Alaska, over half of land is not contained in any of its 19 organized boroughs. This land (collectively called the Unorganized Borough) is divided into 10 census areas for statistical purposes.
Variance floor
During the reconciliation process, only variances between reported numbers that exceed a minimum dollar amount are investigated by the Independent Administrator.
Wet gas
Natural gas that hasn’t been treated to remove liquid hydrocarbons or other nonhydrocarbons that make the gas unmarketable.
Withheld
We refer to data as “withheld” when publishing that data could violate federal laws and regulations. Most commonly, we withhold data if it can be used to personally identify individuals, or if the data is protected by the Trade Secrets Act. In the latter case, data is often withheld when there is only one company producing a specific commodity within a specific region. We withhold all location data for Native American production, revenue, and disbursements.
Federal land represents 61.2% of all land in Alaska.
2 energy or mineral commodities were produced on federal land in Alaska in calendar year 2018.
Production on federal land in Alaska resulted in $51,757,049 in calendar year 2019 revenue.
Revenue from federal land resulted in $25,913,942 disbursed from the federal government to Alaska in fiscal year 2019.
Alaska also borders an offshore area with significant natural resource extraction, which may contribute to the state’s economy. For production and revenue data about offshore extraction near Alaska, see offshore Alaska.
The state of Alaska chose to participate in an extended reporting process, so this page includes additional state revenue and disbursements data, as well as contextual information about state governance of natural resources.
Borough production of gas in 2018 (mcf)There is no county-level data for Alaska in 2018.County-level data for 2018 is withheld.
Borough or census area
mcf of gas
Kenai Peninsula Borough
14,990,814
14,990,814
Data about gas extraction on federal land in Kenai Peninsula Borough in 2018 is withheld.14,990,814 mcf of gas were produced in Kenai Peninsula Borough in 2018.
North Slope Borough
300,093
300,093
Data about gas extraction on federal land in North Slope Borough in 2018 is withheld.300,093 mcf of gas were produced in North Slope Borough in 2018.
Oil
Borough or census area production
Borough production of oil in 2018 (bbl)There is no county-level data for Alaska in 2018.County-level data for 2018 is withheld.
Borough or census area
barrels of oil
Kenai Peninsula Borough
598,883
598,883
Data about oil extraction on federal land in Kenai Peninsula Borough in 2018 is withheld.598,883 barrels of oil were produced in Kenai Peninsula Borough in 2018.
North Slope Borough
433,788
433,788
Data about oil extraction on federal land in North Slope Borough in 2018 is withheld.433,788 barrels of oil were produced in North Slope Borough in 2018.
Revenue
Companies pay a wide range of fees, rates, and taxes to extract natural resources in the United States. What companies pay to federal, state, and local governments often depends on who owns the natural resources.
Federal revenue
Natural resource extraction can lead to federal revenue in two ways: non-tax revenue and tax revenue. Revenue data on this site primarily includes non-tax revenue from extractive industry activities on federal land.
Revenue from production on federal land by resource
When companies extract natural resources on federal lands and waters , they pay royalties, rents, bonuses, and other fees, much like they would to any landowner . This non-tax revenue is collected and reported by the Office of Natural Resources Revenue (ONRR).
For details about the laws and policies that govern how rights are awarded to companies and what they pay to extract natural resources on federal land : coal, oil and gas, renewable resources, and hardrock minerals.
The federal government collects different kinds of fees at each phase of natural resource extraction . This chart shows how much federal revenue was collected in calendar year (CY)2019 for production or potential production of natural resources on federal land in Alaska, broken down by phase of production.
1. Securing rightsCompanies pay bonuses or other fees to secure rights to resources on federal land
2. Before productionCompanies pay rent on federal land while exploring for resources
3. During productionCompanies pay royalties after production begins
Other revenueMinimum or estimated royalties, settlements, and interest payments
Oil and Gas
Oil & Gas $51,749,368
$1,533,706
$5,686,268
Oil $37,447,259Gas $6,169,897NGL $64,183
$848,053
Onshore
Bonus: The amount offered by the highest bidder
$1.50 annual rent per acre for 5 years $2 annual rent per acre thereafter
12.5% of production value
Geothermal
Geothermal $7,680
$0
$7,680
$0
$0
Competitive leasing
Nomination fee: $110 per nomination + $0.11 per acre Bonus: The amount offered by the highest bidder $160 processing fee
$2 per acre for the first year $3 annual rent per acre for years 2-10 $5 annual rent per acre thereafter
Electricity sales: 1.75% of gross proceeds for 10 years, then 3.5% Arm’s length sales: 10% of gross proceeds from contract multiplied by lease royalty rate More about geothermal rates
Noncompetitive leasing
Lease: $410 payment
$1 annual rent per acre for 10 years $5 annual rent per acre thereafter
All commodities
All commodities $51,757,049
$1,533,706
$5,693,948
$43,681,339
$848,054
Other revenue streams
Hardrock mining on public domain lands
Federal revenue from hardrock mining on public domain land occurs through the claim-staking process and is managed by the Bureau of Land Management (BLM). It is not included here, because the dataset does not have state-level data. Learn more about hardrock mining on federal land.
Onshore solar and wind energy
Federal revenue from onshore renewable energy generation on federal land is not included here, because that dataset, from BLM, does not have state-level data. Learn more about onshore renewables on federal land.
To see how much was collected nationwide for all revenue types, including BLM revenues, see federal revenue by company.
Revenue from production on federal land by county
Most non-tax revenue collected by ONRR comes from counties with significant natural resources on federal land.
Revenue by borough in 2019There is no county-level data for Alaska in 2019.County-level data for 2019 is withheld.
Borough or census area
Revenue
Kenai Peninsula Borough
8969927
8969927
Data about revenue on federal land in Kenai Peninsula in 2019 is withheld.Companies paid 8969927 to extract natural resources on federal land in Kenai Peninsula County in 2019.
North Slope Borough
42787122
42787122
Data about revenue on federal land in North Slope in 2019 is withheld.Companies paid 42787122 to extract natural resources on federal land in North Slope County in 2019.
Federal tax revenue
Individuals and corporations (specifically C-corporations) pay income taxes to the IRS. The federal corporate income tax rate tops out at 21%. Public policy provisions, such as tax expenditures, can decrease corporate income tax and other revenue payments in order to promote other policy goals.
In 2016, the state of Alaska collected $1,761,666,223 in state revenue from natural resource extraction (this includes both tax and non-tax revenue). Counties also collect and distribute their own revenue from natural resource extraction.
After collecting revenue from natural resource extraction, the Office of Natural Resources Revenue distributes that money to different agencies, funds, and local governments for public use. This process is called “disbursement.”
Most federal revenue disbursements go into national funds. For detailed data about which expenditures and projects from those national funds are in Alaska, see nationwide federal disbursements.
ONRR also disburses some revenue from natural resource extraction to state governments. In 2019, ONRR disbursed $25,913,942 to Alaska. This included revenues from both onshore and offshore extraction in or near Alaska:
In 2016, the state of Alaska distributed $1,761,666,223 in state revenue from natural resource extraction to state and local funds.
State fund
Distribution
Total
$1,761,666,223
General Fund
$1,132,972,459
Alaska Permanent Fund
$390,500,000
Constitutional Budget Reserve Fund
$225,293,764
Other Restricted
$6,500,000
Public School Trust Fund
$6,400,000
State governance
The state of Alaska participated in additional reporting about state and local natural resource governance, revenues, and disbursements.
Understanding land ownership
Land ownership in Alaska is unique among states. When the United States purchased Alaska from Russia in 1867, the federal government initially owned all 375 million acres of the Alaska Territory. When Alaska became a state 92 years later, in 1959, the federal government granted 28% of the land to the state through a process that was unique to Alaska. The state selected 103 million acres of land and was granted an additional 1.2 million acres in trust lands; Alaska also owns all mineral rights in its acreage.
The state of Alaska is the second largest landowner in the state (after the U.S. government). It received patent to 90 million of the acres it selected. Some of the areas the state selected have not yet been transferred from the federal government. Learn more about:
The Alaska Mental Health Trust also owns and manages 1 million acres with significant timber, oil, gas, coal, or material resources. Revenues from lands managed by the Trust support mental health programs in the state.
To explore a map of land ownership in Alaska, see the Alaska Department of Natural Resource’s mapping application.
Alaska Native corporations
In most states, American Indian land was taken by force, settled by treaty, or both — but in Alaska, Native claims to land were not settled or resolved until Congress passed the Alaska Native Claims Settlement Act (ANCSA) in 1971. ANCSA granted 44 million acres (both surface and sub-surface) and 1 billion dollars to 12 regional native corporations and 220 village corporations. These village and regional corporations now own 12% of land in Alaska; non-native private lands in Alaska make up just 1% of the land in the state.
These private, for-profit corporations belong to and benefit Alaska Natives in their region or village, but are distinct from tribes. Alaska Natives were allotted shares in Alaska Native corporations when the corporations were created. Unlike shares in a publicly traded corporation, however, Alaska Native corporation shares cannot be traded or sold.
Alaska Native corporations have generated substantial revenues from resource development, though this exposes them to the same revenue sustainability questions that affect state revenues. ANCSA provides for natural revenue sharing among all ANCs, so ANCs may mutually support each other to help smooth revenue volatility: For example, the Red Dog zinc mine has generated $1.3 billion in net proceeds for NANA Regional Corporation since mining began. It has retained about $480 million and shared about $820 million with other ANCs. Of the $480 million retained, about $221 million has been paid out to individual shareholders as dividends.
Separately from the Alaska Native corporations, there are 229 federally recognized tribal entities in Alaska. Until recently, they were viewed as landless (with the exception of one reservation, the Metlakatla Indian Community’s Annette Island Reserve). The Bureau of Indian Affairs recently changed this by establishing Rule 25 CFR Part 151, which allows Alaska tribes to apply to put land into trust.
State agencies
Alaska state agencies regulate extraction and interact with extractive industry companies in Alaska, particularly when they're operating on state or private land.
The Alaska Oil and Gas Conservation Commission leads monitoring, enforcement, and restoration activities to support responsible stewardship of Alaska’s oil and gas resources. Its responsibilities include:
Evaluating and approving drilling operations
Preventing oil and gas waste at drill sites where the majority of natural gas extraction is flared
Preventing freshwater contamination throughout drilling
Administering Alaska’s Underground Injection Control Program
Inspecting oil field drilling, projecting, metering, and abandonment activities
The Division of Oil and Gas is responsible for leasing state lands for oil, gas, and geothermal extraction. It publishes studies, and its activities include:
Identifying prospective lease areas; evaluating oil and gas resources; and performing geologic, economic, environmental, and social analyses
Fielding and issuing exploration permits, developing leasing schedules, and conducting public review of proposed sales
Conducting oil and gas lease sales, negotiating contracts, and conducting royalty audits
Decommissioning, removal, and restoration regulatory review
The Mining, Land, and Water Division is the primary manager of Alaska’s land holdings, which are larger by area than any other state, and Alaska's mineral resources (excluding oil, gas, coalbed methane, and geothermal energy). It is responsible for:
Managing state mineral exploration, development and leasing programs on 96 million acres of state lands available for exploration
Planning, leasing, and permitting industrial use mines
Administering the Abandoned Mine Land Program, which regulates surface mines and mining reclamation activities (in 2014, there were 23 sites awaiting reclamation)
Overseeing major land development project authorizations like the North Slope
The Alaska Department of Revenue Tax Division collects state taxes, including the Oil and Gas Production Tax and Oil and Gas Property Tax, and administers tax laws.
The Environmental Conservation’s Program Spill Prevention and Response Division (SPAR) prevents spills of oil, prepares for when a spill occurs, and responds rapidly to protect human health and the environment.
Local governance in Alaska
Alaska has two local government structures (PDF): cities and boroughs. All local governments in Alaska enjoy broad powers, but some cities and boroughs are home rule municipalities (PDF), which have the right to “exercise all legislative powers not prohibited by law or by charter.”
Fiscal costs of extractive activity
In addition to generating revenue and economic activity, extractive industries can bring costs to state and local communities. Development and activity related to the extractive industries are concentrated on Alaska's northern coast, so attention to costs is concentrated in that part of the state.
For a holistic look at how the North Slope Borough has met the transportation, water, emergency services, and reclamation needs of extractive industries, see the North Slope Borough case study.
Multiple organizations in the Alaska state government work on the reclamation and remediation of sites related to extraction. The Alaska state government invests significant tax dollars to prevent and respond to oil and hazardous substance emergencies, including reclamation services such as managing contaminated drilling sites. The Oil and Hazardous Substance Release Prevention and Response Fund imposes a 4 cent surcharge per barrel of oil for prevention, and a 1 cent surcharge per barrel of oil for response. The Division of Spill Prevention and Response (SPAR) had a total operating budget of $19.9 million in fiscal year 2016. $12.3 million of that went to spill prevention and response in fiscal year 2016.
The DNR Mining, Land, and Water’s Abandoned Mine Lands Program administers the federal AML program in Alaska for coal and select hard rock reclamation projects. The program estimated in May of 2014 that 15 coal projects and 8 non-coal projects remained to be reclaimed. Alaska is a Minimum Program state, meaning it receives $3 million a year from the federal Abandoned Mine Land Reclamation program, with the funds coming from fees paid by current coal mine operators. See examples of AML projects.