Specifically, we agreed to determine  the nature and extent of dismantlement, removal, and restoration  requirements for existing oil industry activities on state-owned land on  Alaska’s North Slope, including how these requirements compare to  those of other oil-producing states;  whether any cost estimates exist for the dismantlement and removal of  the infrastructure and for the restoration of North Slope state-owned  land;  what financial assurances the state of Alaska has that funds will be  available to cover the eventual dismantlement, removal, and restoration  costs and how these assurances compare to those of other oil-producing  states; and  the nature and extent of dismantlement, removal, and restoration  requirements and financial assurances governing future oil industry  activities on federal lands located on the North Slope and how these  compare with requirements and financial assurances in other related  industries, such as mining and nuclear power. Current DR&R Requirements for Existing Oil Production Are Very General

The state of Alaska’s dismantlement, removal, and restoration  requirements, which apply to almost all existing oil production on the  North Slope, offer no specifics on what infrastructure must be removed or  to what condition lands used for oil industry activities must be restored. A comparison of  Alaska’s DR&R requirements to those of nine other oil-producing states  reveals a spectrum of requirements; some states have general requirements  like Alaska’s, while other states have more explicit requirements that  create a fixed obligation to fully restore the land according to specific  standards. In addition, the state of Alaska has not developed a land use plan for the  North Slope or identified the condition to which the state would like its  lands returned after oil production ceases.
Why GAO Did This Study

This report discusses the nature and extent of dismantlement, removal, and restoration requirements for oil industry activities that are occurring on both federal and state lands located on the North Slope of the state of Alaska.

What GAO Found

The state of Alaska, which owns the lands where most of the North Slope's current oil production occurs, has adopted general dismantlement, removal, and restoration requirements that contain no specific stipulations on what infrastructure must be removed or to what condition the lands used for oil industry activities must be restored once production ceases. Alaska's requirements are similar to those of some states but less explicit than those of other states, which create a fixed obligation to fully restore the land according to specific requirements. Until the state of Alaska defines the condition in which it would like its lands returned, there is no way to accurately estimate the cost of dismantling and removing the infrastructure and restoring the disturbed land on Alaska's North Slope. Existing financial assurances, such as bonding requirements, ensure the availability of only a small portion of the funds that are likely to be needed to dismantle and remove the infrastructure used for oil industry activities and to restore state-owned lands. Current dismantlement, removal, and restoration requirements and financial assurances for federal lands on the North Slope vary by agency, but are generally insufficient to ensure that any federal lands disturbed by oil industry activities will be restored.