Legislature(1993 - 1994)
1994-03-09 Senate Journal
Full Journal pdf1994-03-09 Senate Journal Page 3118 SB 322 SENATE BILL NO. 322 "An Act repealing the limitation on delays imposed on oil and gas lease sales under the Alaska Land Act" was read the second time. Senator Pearce moved and asked unanimous consent for the adoption of the Finance Committee Substitute offered on page 2989. Without objection, CS FOR SENATE BILL NO. 322(FIN) "An Act repealing the requirement that an oil or gas lease sale be held during the calendar quarter for which scheduled under the leasing program and repealing related allowable delays for certain oil and gas lease sales under the Alaska Land Act; and providing for an effective date" was adopted. CS FOR SENATE BILL NO. 322(FIN) was read the second time. Senator Little offered Amendment No. 1 : Page 1, line 1, after "An Act": Insert "relating to the Alaska Land Act, amending the requirements relating to best interest findings and the requirements of notice and hearing applicable to the Department of Natural Resources under that Act as they relate to the disposition of state land, property, resources, or interests in them, and" Page 1, line 3: Delete "the Alaska Land" Insert "that" Page 1, line 6, after "Section 1.": Insert "AS38.05.035(e) is amended to read: (e) Upon the issuance of a final written finding that the interests of the state will be best served, the director may, with the consent of the commissioner, approve contracts for the sale, lease, or other disposal of available land, resources, property or interests in them, and, in addition to the conditions and limitations imposed by law, may impose additional conditions or limitations in 1994-03-09 Senate Journal Page 3119 SB 322 the contracts as the director determines, with the consent of the commissioner, will best serve the interests of the state. A written finding for an oil and gas lease sale under AS38.05.180 is subject to (g) of this section. A contract for the sale, lease, or other disposal of available land or an interest in land is not legally binding on the state until the commissioner approves the contract but, if the appraised value is not greater than $50,000 in the case of the sale of land or an interest in land, or $5,000 in the case of the annual rental of land or interest in land, the director may execute the contract without the approval of the commissioner. Before a public hearing, if held, or in any case not [NO] less than 180 days before the sale, lease, or other disposal of available land or an interest in land for oil and gas subject to AS38.05.180(b), the director shall make available to the public a preliminary written finding that sets out the facts and applicable law upon which the determination that the sale, lease, or other disposal will best serve the interests of the state will be based together with the information required by (g) of this section. Before a public hearing, if held, or in any case not less than 21 days before the sale, lease, or other disposal of available land, property, resources, or interests in them not subject to AS38.05.180(b), the director shall make available to the public a written finding that sets out the facts and applicable law upon which the determination that the sale, lease, or other disposal will best serve the interests of the state was based. For a sale, lease, or other disposal of available land or an interest in land for oil and gas subject to AS38.05.180(b), the director shall provide opportunity for public comment on the preliminary written finding for a period of not less than 60 days but the director may extend a public comment period on the preliminary written finding for an additional 30 days. Following receipt and consideration of any public comments to the preliminary written finding for a sale, lease, or other disposal of available land or an interest in land for oil and gas subject to AS38.05.180(b), the director shall prepare and issue a final written finding not less than 21 days before the sale, lease, or other disposal of available land, property, resources, or interests in them. The final written finding for a sale, lease, or other disposal of available land or an interest in land for oil and gas subject to AS38.05.180(b) must set out the facts and applicable law upon which the determination that the sale, lease, or other disposal will best serve the interests of the state was based, must 1994-03-09 Senate Journal Page 3120 SB 322 provide the information required by (g) of this section, and must be given notice as required by AS38.05.945(b)(3). A written finding is not required before the approval of (1) a contract for a negotiated sale authorized under AS38.05.115; (2) a lease of land for a shore fishery site under AS38.05.082; (3) a permit or other authorization revocable by the commissioner; (4) a mineral claim located under AS38.05.195; (5) a mineral lease issued under AS38.05.205; (6) a production license issued under AS38.05.207; (7) an exempt oil and gas sale under AS38.05.180(d) of acreage offered in a sale that was held within the previous five years if the sale was subject to a written best interest finding, unless the commissioner determines that new information has become available that justifies a revision of the best interest finding; or (8) a lease sale under AS38.05.180(w) of acreage offered in a sale that was held within the previous five years if the sale was subject to a best interest finding, unless the commissioner determines that new information has become available that justifies a revision of the best interest finding. * Sec. 2. AS38.05.035(g) is amended to read: (g) When the director prepares a preliminary written finding and the final written finding required under (e) of this section for an oil and gas lease sale scheduled under AS38.05.180, the director shall consider and discuss in the finding (1) facts that are known to the director at the time of preparation of the finding and that are material to the following matters or, for a final finding, to issues that were raised during the period allowed for receipt of public comment: (A) property descriptions and locations; (B) the petroleum potential of the sale area, in general terms; (C) fish and wildlife species and their habitats in the area; 1994-03-09 Senate Journal Page 3121 SB 322 (D) the current and projected uses in the area, including uses and value of fish and wildlife; (E) the governmental powers to regulate oil and gas exploration, development, production, and transportation; (F) the reasonably foreseeable cumulative effects of oil and gas exploration, development, production, and transportation on the sale area, including effects on subsistence uses, fish and wildlife habitat and populations and their uses, and historic and cultural resources; (G) lease stipulations and mitigation measures, including any measures to prevent and mitigate releases of oil and hazardous substances, to be included in the leases, and a discussion of the protections offered by these measures; (H) the method or methods most likely to be used to transport oil or gas from the lease sale area, and the advantages, disadvantages, and relative risks of each; (I) the reasonably foreseeable fiscal effects of the lease sale and the subsequent activity on the state and affected municipalities and communities, including the explicit and implicit subsidies associated with the lease sale, if any; (J) the reasonably foreseeable effects of oil and gas exploration, development, production, and transportation on municipalities and communities within or adjacent to the lease sale area; and (K) the bidding method or methods adopted by the commissioner under AS38.05.180; (2) a summary of agency and public comments received and the department's responses to those comments if the written finding is a final finding; and (3) the basis for the director's preliminary or final finding, as applicable, [DETERMINATION] that, on balance, leasing the area would be in the state's best interest. * Sec. 3." Page 2, following line 7: Insert new bill sections to read: "* Sec. 4. AS38.05.945(a) is amended to read: (a) This section establishes the requirements for notice given by the department for the following actions: 1994-03-09 Senate Journal Page 3122 SB 322 (1) classification or reclassification of state land under AS38.05.300 and the closing of land to mineral leasing or entry under AS38.05.185; (2) zoning of land under applicable law; (3) each of the following relating to interests in state land or resources: (A) a preliminary finding [A DECISION] under AS38.05.035(e) regarding the sale, lease, or disposal of an interest in state land or resources for oil and gas subject to AS38.05.180(b); (B) a final finding under AS38.05.035(e) regarding the sale, lease, or disposal of an interest in state land or resources for oil and gas subject to AS38.05.180(b); and (C) a decision under AS38.05.035(e) regarding the sale, lease, or disposal of an interest in state land or resources other than for oil and gas subject to AS38.05.180(b); (4) a competitive disposal of an interest in state land or resources after final decision under AS38.05.035(e); (5) a public hearing under AS38.05.856(b); (6) a preliminary finding under AS38.05.035(e) and 38.05.855(c) concerning sites for aquatic farms and related hatcheries. * Sec. 5. AS38.05.945(b) is amended to read: (b) When notice is required to be given under this section, (1) the notice must contain sufficient information in commonly understood terms to inform the public of the nature of the action and the opportunity of the public to comment on it; (2) if the notice is of an action described in (a)(3)(A) of this section, the department shall give notice for a period of at least seven consecutive days at the beginning of the period to receive public comment on the preliminary written finding, inviting the public to submit comments; the department shall give notice (A) by publication of a legal notice in newspapers of statewide circulation and in newspapers of general circulation in the vicinity of the proposed action; 1994-03-09 Senate Journal Page 3123 SB 322 (B) by publication of notice in display advertising form in the newspapers described in (A) of this paragraph; (C) by radio advertising in the vicinity of the proposed action; and (D) by placing copies of maps at public places in the vicinity of the proposed action; the maps must display the area proposed for disposal under this paragraph in relationship to adjacent communities, roads, and other readily identifiable natural features; (3) if the notice is of an action [NOTICE OF ONE OR MORE ACTIONS] described in (a)(1), (2), (3)(B) or (C), or (4) - (6) [(a)] of this section, the department shall give notice [SHALL BE GIVEN] at least 30 days before the action by publication in newspapers of statewide circulation and in newspapers of general circulation in the vicinity of the proposed action; (4) in addition to compliance with the requirements of the appropriate paragraphs of this subsection, the department shall give notice using [AND] one or more of the following methods: (A) [(1)] publication through public service announcements on the electronic media serving the area affected by the action; (B) [(2)] posting in a conspicuous location in the vicinity of the action; (C) [(3)] notification of parties known or likely to be affected by the action; or (D) [(4)] another method calculated to reach affected persons. [A NOTICE SHALL CONTAIN SUFFICIENT INFORMATION IN COMMONLY UNDERSTOOD TERMS TO INFORM THE PUBLIC OF THE NATURE OF THE ACTION AND THE OPPORTUNITY OF THE PUBLIC TO COMMENT ON THE ACTION.] * Sec. 6. AS38.05.945(c) is amended to read: (c) When notice is required to be given under (b) of this section for an [NOTICE AT LEAST 30 DAYS BEFORE] action under (a) of this section, the department shall also give notice, not later than the appropriate deadline set out in (b) of this section, [BE GIVEN] to the following: 1994-03-09 Senate Journal Page 3124 SB 322 (1) to a municipality if the land is within the boundaries of the municipality, to a coordinating body established by community councils in a municipality if the coordinating body or a community council within the area served by a coordinating body requests notice in writing; [:] if there is no coordinating body within the municipality, notice shall be provided to each community council established by the charter or ordinance of the municipality if the land is located within the boundaries of the municipality and if the community council requests notice in writing; (2) to a regional corporation if the boundaries of the corporation as established by 43 U.S.C. 1606(a) (sec.7(a) of the Alaska Native Claims Settlement Act) encompass the land and the land is outside a municipality; (3) to a village corporation organized under 43 U.S.C. 1607(a) (sec.8(a) of the Alaska Native Claims Settlement Act) if the land is within 25 miles of the village for which the corporation was established and the land is located outside a municipality; (4) to the postmaster of a permanent settlement of more than 25 persons located within 25 miles of the land if the land is located outside a municipality, with a request that the notice be posted in a conspicuous location; (5) to a nonprofit community organization or a governing body that has requested notification in writing and provided a map of its boundaries, if the land is within the boundaries." Renumber the following bill section accordingly. Senator Little moved for the adoption of Amendment No. 1. Senator Duncan called the Senate. President Halford stated the call was satisfied. The question being: "Shall Amendment No. 1 be adopted?" The roll was taken with the following result: 1994-03-09 Senate Journal Page 3125 SB 322 CSSB 322(FIN) Second Reading Amendment No. 1 YEAS: 9 NAYS: 11 EXCUSED: 0 ABSENT: 0 Yeas: Adams, Donley, Duncan, Ellis, Kerttula, Lincoln, Little, Salo, Zharoff Nays: Frank, Halford, Jacko, Kelly, Leman, Miller, Pearce, Phillips, Rieger, Sharp, Taylor and so, Amendment No. 1 failed. Senator Taylor moved and asked unanimous consent that CS FOR SENATE BILL NO. 322(FIN) be considered engrossed, advanced to third reading and placed on final passage. Senator Duncan objected. The question being: "Shall CS FOR SENATE BILL NO. 322(FIN) be advanced to third reading?" The roll was taken with the following result: CSSB 322(FIN) Advance from Second to Third Reading? YEAS: 11 NAYS: 9 EXCUSED: 0 ABSENT: 0 Yeas: Frank, Halford, Jacko, Kelly, Leman, Miller, Pearce, Phillips, Rieger, Sharp, Taylor Nays: Adams, Donley, Duncan, Ellis, Kerttula, Lincoln, Little, Salo, Zharoff and so, the bill failed to advance to third reading.