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- <text id=92TT2118>
- <title>
- Sep. 28, 1992: Alaska's Billion-Dollar Quandary
- </title>
- <history>
- TIME--The Weekly Newsmagazine--1992
- Sep. 28, 1992 The Economy
- </history>
- <article>
- <source>Time Magazine</source>
- <hdr>
- ENVIRONMENT, Page 60
- Alaska's Billion-Dollar Quandary
- </hdr><body>
- <p>A battle is raging over how best to spend the settlement money
- from the Exxon Valdez disaster
- </p>
- <p>By Michael D. Lemonick--With reporting by Andrea Dorfman/Kodiak
- </p>
- <p> To a casual visitor, the chill, choppy waters of Prince
- William Sound show little evidence of the disaster that struck
- on Good Friday 1989. Nearly 11 million gal. of crude oil poured
- from a gash in the grounded tanker Exxon Valdez that day,
- forming a slick that eventually reached into the Gulf of Alaska
- and nearly to the Shumagin Islands, about 965 km (600 miles)
- away. More than 1,930 km (1,200 miles) of coastline was fouled;
- commercial and subsistence fishing were halted; populations of
- bald eagles, seabirds, otters and other animals plummeted; and
- at least 35 archaeological sites were sullied. Now, after four
- summers of intensive oil scooping and shoreline scrubbing,
- seals, whales and bald eagles are plentiful and the fishing
- season is in full swing. The water, rocks and sand look pristine
- once more.
- </p>
- <p> But looks can deceive. According to biologists, Exxon's
- $2.5 billion cleanup effort was by no means as effective as the
- company has proclaimed. Many killer whales have vanished from
- Prince William Sound, while the social structure of the
- remaining groups appears to be breaking down. Several large
- colonies of murres, a seabird, have not produced any chicks in
- the years since the spill. Harlequin ducks, black oyster
- catchers and other animals have been contaminated by eating
- oil-drenched mussels, and sea-otter populations are
- hemorrhaging, literally and figuratively--a side effect of
- hydrocarbon poisoning.
- </p>
- <p> Part of the problem is the disaster's magnitude, but
- scientists and environmentalists charge that Exxon squandered
- vast sums on paperwork, ill-conceived cleanup techniques and
- heroic rescues. It cost the company about $80,000 for each of
- the several hundred otters it cleaned, many of which died
- anyway. The use of scalding-hot, pressurized seawater to hose
- down beaches left many areas almost sterile, empty of the
- limpets and other intertidal creatures that dwell there.
- </p>
- <p> No amount of money could ever fully compensate for the
- havoc wreaked by the Valdez spill, but the record $1.025 billion
- in fines and damages imposed on Exxon by a federal judge last
- October should have provided the state and federal governments
- with an extraordinary opportunity to take further protective
- measures, assess remaining problems and mollify resentful
- citizens. Instead, the deal has touched off a chorus of outrage
- from residents and environmentalists, who wanted a minimum of
- $2 billion, and has ignited a fierce debate over how best to
- spend the sum. Says biologist Rick Steiner of the University of
- Alaska: "The last thing we want to see out of this is a stack
- of studies, symposia and who knows what else."
- </p>
- <p> Unfortunately for Alaska, the windfall is far less than it
- seems. After deducting the sums owed to federal and state
- governments for past cleanup, litigation expenses and damage
- assessment, Alaska can expect just $635 million. How to spend
- it is the official business of the six-member oil spill trustee
- council, which includes the Alaska attorney general along with
- representatives from two state and three federal departments.
- The body has already come under fire. Alaskans claim that
- Washington's representatives are watching out for the Bush
- Administration's interests and that the council is unreceptive
- to the views of the public. Environmentalists criticize the
- council for acting too slowly and for wasting money on items
- like excessive overhead.
- </p>
- <p> But this hasn't stopped Alaskans from going aggressively
- after a slice of the pie. The trustee council has received
- nearly 450 proposals from environmentalists, scientists,
- government employees, tour-boat operators, fishermen and others.
- There are a few oddball ideas, like dismantling the trans-Alaska
- pipeline, but most are worthwhile projects--expanding wildlife
- refuges and parks, for example, or building fish ladders and
- establishing a marine public-information center.
- </p>
- <p> For now, the trustee council seems to be considering three
- broad areas of spending: land purchases to protect vital
- habitats, scientific studies and some type of endowment that
- would invest the money and finance restoration from the
- interest. Environmentalists contend that putting too much into
- an endowment would prevent the state from tackling expensive but
- urgent projects. Scientific study, on the other hand, has strong
- support from the conservationists, who advocate such efforts as
- long-term monitoring of wildlife and assessments of which
- habitats should be purchased. There is some concern, however,
- about the council's judgment. It has been accused of
- rubber-stamping projects that involve the state's powerful
- fishing industry and favoring scientists who work for the
- government agencies represented on the council. "Lots of people
- stand to gain personally from how this money is spent," charges
- Lisa Rotterman, an independent biologist.
- </p>
- <p> Habitat acquisition has attracted nearly universal public
- support. An unlikely coalition of environmentalists, commercial
- fishermen, native Alaskans and state legislators wants at least
- 80% of the money to be used to buy and preserve 202,000 hectares
- (500,000 acres) of prime fish and wildlife habitat, either by
- purchasing the land outright or by buying up the rights to
- exploit its resources. The advocates argue that since little
- more can be done to restore areas damaged by the spill,
- protecting the region's ecosystem from further harm is the next
- best option. Much of the land is privately held old-growth
- forest already marked for logging--some of it, thanks to the
- state's complex land-allotment system, actually inside state and
- national parks, including Kenai Fjords National Park, the Kodiak
- National Wildlife Refuge and Kachemak Bay State Park.
- </p>
- <p> The advantages of habitat acquisition are manifold.
- Old-growth forests provide nesting sites for some of the bird
- species harmed by the spill. Watersheds and upland forests offer
- food and breeding areas for mink and river otter as well as
- salmon and other fish. Protecting prime habitat from logging and
- development will also benefit hunters, fishermen, kayakers,
- hikers and the growing tourist industry.
- </p>
- <p> For native Alaskans, who own much of the land in question,
- such deals would provide needed cash. The Afognak Joint
- Venture, for instance, a coalition of native corporations, hopes
- the trustee council will purchase its 50,000 hectares (125,000
- acres) on Afognak Island, a mountainous place nearly the size
- of Maui, brimming with salmon, elk, Kodiak bears and bald
- eagles. Though part of the island belongs to the Kodiak Refuge,
- the AJV lands are being logged and could be stripped bare within
- a decade. Asserts AJV chairman Howard Valley: "By selling it
- back, at least we will be able to preserve it."
- </p>
- <p> Also competing for funds is the Kodiak Restoration
- Committee, a partnership of native groups, fishermen, businesses
- and government agencies in the Kodiak Island Borough, a
- 51,800-sq-km (20,000 sq. mi.) district at the southernmost point
- of the Valdez spill zone. While the borough's wildlife escaped
- serious damage, its all-important fishing industry suffered
- mightily. "Domestic violence and divorces soared, and visits to
- mental-health services almost doubled," says borough Mayor
- Jerome Selby. "We're never going to be able to mend the social
- fabric of the community." The borough wants $280 million to
- create nature preserves, recreation areas, a fisheries
- technology center, an archaeological museum and other projects.
- </p>
- <p> With so many groups vying for money, some are bound to go
- without. Trustees say privately that they will probably devote
- some of the settlement to habitat protection and scientific
- studies but bank most of it in an endowment. A preliminary plan
- could be released early next year. But given the competing
- claims and heated emotions, it, like the Exxon Valdez spill
- itself, will almost certainly leave in its wake a residue of
- anger and disappointment.
- </p>
-
- </body></article>
- </text>
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