construction of from 3 to 8 support/supply installations, one LNG plant and 

 one loading facility but Alaskan officials feel these estimates are too 

 low given the Bureau's assumptions about petroleum production. State 

 officials believe twice as many facilities may be built. 1 * 



Direct employment will peak during the development phase at from 

 2,000 to 4,000 workers around 1985. Major increases in population will 

 occur in the small towns along the Gulf even though the majority of 

 newcomers (over 60 percent) will settle in Anchorage. Population increases 

 will be even greater if concrete platforms are used instead of steel 

 platforms (about 1,000 workers per platform constructed). 



This large influx of population will severely strain the financial 

 and planning capabilities of adjacent coastal communities. The infra- 

 structures of these towns are primitive and ill-equipped to accomodate a 

 doubling or tripling of the present census. Boom town conditions may 

 lead to runaway inflation, housing shortages, poor sanitary conditions, 

 increases in the crime rate, considerable traffic congestion, and 

 displacement of established activities. Similar impacts have occurred 

 in Valdez and Fairbanks as a result of the trans-Alaskan pipeline. 



State and local governments will need considerable sums of money to 

 provide important municipal services. An Alaskan Department of Revenue 

 study concluded that the northern Gulf of Alaska lease sale will cost 

 each resident of the state between $271 and $304. The 20-year cash-flow 

 model used in the report indicated that the state would receive benefits 

 only during a 7-year period starting in 1985. Before 1985 and after 

 1991, the model showed 22 years of net losses to Alaska from OCS 

 development . "* 1 



25 



