National Petroleum Reserve in Alaska Statement on Proposed Legislation.

Today I have sent the Congress legislation calling for a private oil and gas leasing program for the National Petroleum Reserve in Alaska. A vital element of my energy program is to accelerate domestic energy production as a means to lessen our dependence on foreign oil and increase this Nation's energy security. We must make greater use of America's abundant natural resources, including oil, if we are to succeed in our struggle to win the energy fight.

To stimulate increased oil production here at home, I have already decontrolled the price of domestically produced "heavy" crude oil, implemented a phasing out of oil price controls for conventional crude oil, and stepped up the leasing schedule for oil production from the U.S. Outer Continental Shelf. The proposal sent to the Congress today will be another step in our overall plan of accelerating domestic energy production.

The National Petroleum Reserve in Alaska is situated on the Arctic North Slope of Alaska and in size is larger than the combined acreage of Massachusetts, Connecticut, Vermont, New Hampshire, Rhode Island, and Delaware. My proposal will rename the Reserve the Western Arctic Management Area under the jurisdiction of the Secretary of the Interior's Bureau of Land Management. The area will be managed under the principles of multiple use. This region has been the site of substantial Government-sponsored oil exploration since 1923. It was in that year that President Harding first set the area aside as a Naval Petroleum Reserve and directed the U.S. Navy to explore and manage the area. Based on the data gathered by the Navy and the Interior Department since then, the Reserve is believed to have promising oil and gas potential, with current estimates projecting an average of 7 billion barrels of oil and 14 trillion cubic feet of gas in place. It is my belief that exploration and development of these resources can be achieved most quickly and at least cost to the Government by a federally managed private leasing program. I am encouraged by the prospects that this proposal has for bringing into production badly needed domestic oil and gas.

When enacted, the legislation will provide for an accelerated leasing schedule, with the first competitive bids taking place 20 months after passage of the legislation. This is the minimum amount of time required to allow for development of necessary land management plans, environmental assessments, and lease sale preparation.

I am also confident that this legislation contains sufficient protection for the fragile arctic environment found there; because not only does this area of Alaska hold promise for oil development, but it possesses unique surface resources, including magnificent wildlife populations, native cultural and archeological heritage, scenic grandeur, and recreational opportunities. The land use plan which will be developed will direct special attention to these resources and will be designed especially to protect wildlife from adverse effects of exploration and drilling operations.

The proposal is a well-balanced one. It will expedite oil and gas development and ensure the protection of the other natural resources of the area. It is in the interests of our Nation's security, and I urge early congressional action on this legislation.