00                             HOUSE BILL NO. 69                                                                          
01 "An Act relating to regulation of shallow natural gas leasing and closely related energy                                
02 projects; and providing for an effective date."                                                                         
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 31.05.060 is amended by adding a new subsection to read:                                          
05            (c)  Notwithstanding the requirements of (a) and (b) of this section that relate                             
06       to fixing a date for a hearing and causing notice of the hearing to be given, for an                              
07       action under this chapter that involves the exploration for or development of shallow                             
08       natural gas or coal bed methane and that has application to a single well or a single                             
09       field, upon the request of a lessee or operator, a member of the professional staff of the                        
10       commission designated by the commission may, where operations might be unduly                                     
11       delayed, approve a variance from the commission's regulations that apply to the well                              
12       or field without conforming to requirements of (b) of this section.  In the exercise of                           
13       its authority to issue the variance,                                                                              
14                 (1)  the professional staff member or the commission may approve the                                    

01       variance if                                                                                                       
02                      (A)  the approval provides at least an equally effective means of                                  
03            accomplishing the requirement set out in the commission's regulation; or                                     
04                      (B)  the professional staff member or the commission                                               
05            determines that the request is more appropriate to the proposed operation than                               
06            compliance with the requirement of the regulation; and                                                       
07                 (2)  the terms of the approval of the variance may include exempting                                    
08       the lessee or operator from a requirement of a regulation if the professional staff                               
09       member or the commission determines that the requirement is not necessary or not                                  
10       suited to the well or field taking into consideration                                                             
11                      (A)  the nature of the operation involved;                                                         
12                      (B)  the characteristics of the well or field for which the                                        
13            variance is sought; and                                                                                      
14                      (C)  the reasonably anticipated risks of the exemption from the                                    
15            requirement to human safety and the environment.                                                             
16    * Sec. 2.  This Act takes effect immediately under AS 01.10.070(c).