    [Public Papers of the Presidents of the United States: William J. Clinton (1996, Book I)]
    [April 28, 1996]
    [Pages 651-653]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Statement on Exports of Alaska North Slope Crude Oil
    April 28, 1996

        Today I am taking action that will allow, for the first time,
    exports of Alaska North Slope (ANS) crude oil. Permitting this oil to
    move freely in international commerce will contribute to economic
    growth, reduce dependence on imported oil, and create new jobs for
    American workers. It will not adversely affect oil supplies or gasoline
    prices on the West Coast, in Hawaii, or in the rest of the Nation.
        I am also announcing additional measures to address safety concerns
    relating to oil tankers and other commercial vessels in Puget Sound-area
    waters in Washington State.
        I want to express my appreciation to Congress, led by the Alaska
    congressional delegation, for its bipartisan support of the legislation
    that has made exports possible. In addition, I want to express my
    appreciation to Alaska Governor Tony Knowles. It has been a pleasure to
    work with him to make ANS exports a reality.
        After careful consideration, I have determined that ending the 23-
    year ban against exporting ANS oil is in the national interest, subject
    to four important conditions:
            1.  Tankers exporting ANS crude oil must remain outside of the
                200-mile Exclusive

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                Economic Zone. This will ensure that tankers in the ANS
                export trade remain far from the U.S. coastline and the
                environmentally sensitive areas along the Aleutian Islands.
            2.  ANS export tankers must be equipped with a satellite
                communications system to permit the Coast Guard to monitor
                the tankers' positions.
            3.  ANS export tankers must be inspected annually, in accordance
                with U.S. Coast Guard policies and procedures. This
                condition will ensure that the tankers are kept in safe
                working order.
            4.  ANS export tankers will be required to exchange their
                ballast water in deep ocean water prior to entering Alaska's
                Prince William Sound. Ship logs will record ballast
                exchanges and will be checked periodically by the Coast
                Guard. This condition will help prevent the introduction
                into Alaskan fisheries of nonindigenous, aquatic nuisance
                species.
        These requirements, which will be applied to ANS oil exports as
    export license conditions, will protect Alaska's unique environment and
    abundant natural resources. A fifth requirement--that exports be carried
    in U.S.-flag tankers, crewed by U.S. merchant seamen--is already in
    place under PL 104-58, the oil export legislation I supported and signed
    into law last November. That law is also the source of the authority
    under which I am imposing the four additional export conditions.
        By removing the ban that has prevented ANS oil from moving freely in
    international markets for more than two decades, we will be stimulating
    increased domestic oil production in Alaska and California, creating new
    jobs in the oil industry, and preserving jobs for America's merchant
    seamen.
        Over the last several months, my administration has conducted an
    extensive interagency review of the environmental, economic, and energy
    aspects of lifting the ban. Led by the National Economic Council and the
    Council on Environmental Quality, the interagency review team confirmed
    the Department of Energy's 1994 findings that lifting the export ban
    would provide important benefits to the economy. Permitting exports will
    generate up to 25,000 more jobs, particularly for American workers in
    California and Alaska, but also in States that produce oil industry
    supplies and equipment. Additional oil production of about 100,000
    barrels per day is expected, according to DOE projections, and Alaska,
    California, and the Federal Government will also benefit from up to $2
    billion in additional Federal, State, and local royalty and tax
    payments.

        The review group identified an additional benefit of exports. It
    determined that overall tanker movements along the West Coast will
    decline. Because of the ban, the ANS oil that exceeds the West Coast's
    needs currently must be shipped down the West Coast anyway. Without the
    ban, that ``surplus'' oil--which has been suppressing Alaska and
    California producer prices below U.S. market levels--can now be
    exported.

        While the review group found no likelihood of adverse impacts from
    ANS exports on Washington State's consumers, refiners, or environment,
    concern is clearly rising in that State about the increasing volume of
    vessel traffic projected to occur as a result of other factors. For
    example, the growing international trade between Washington State and
    Pacific Rim nations, while clearly a boon to the State's economy, is
    prompting debate over the adequacy of current vessel safety procedures
    and resources.

        I share those concerns. Accordingly, I am requesting the Coast Guard
    to prepare, by no later than 120 days from today, a status report on its
    plan for a private-sector vessel assistance system. I am also asking the
    Coast Guard to accelerate completion of the plan, which will be
    submitted to Congress, and to offer its assistance to any serious
    private-sector efforts to improve vessel safety. The plan is required
    under a provision of the ANS export law authored by Senator Patty
    Murray, who has been at the forefront of efforts to safeguard her
    State's waterways. To further support those efforts, I am asking the
    Secretary of Transportation to determine, by the end of this year, the
    need for additional, cost-effective measures to protect the marine
    environment, and to prevent shipping accidents, in Washington State.

        Finally, I wish to emphasize that in permitting ANS oil to be
    exported, I am in no way diminishing my authority under various laws to
    impose new export restrictions if necessary to respond

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    to a national emergency, or to deal with severe oil supply shortages.

    Note: The memorandum of April 28 on exports of Alaskan North Slope crude
    oil is listed in Appendix D at the end of this volume.