Legislature(2001 - 2002)
2001-01-16 House JournalFull Journal pdf
2001-01-16 House Journal Page 0091 HB 60 HOUSE BILL NO. 60 by the House Rules Committee by request of the Governor, entitled: "An Act relating to the Right-of-Way Leasing Act; and providing for an effective date." 2001-01-16 House Journal Page 0092 was read the first time and referred to the House Special Committee on Oil & Gas and the Resources Committee. The following fiscal note(s) apply: 1. Zero, Dept. of Natural Resources The Governor's transmittal letter dated January 12, 2001, appears below: "Dear Speaker Porter: The Right-of-Way Leasing Act, enacted in 1972, provides the authority to the Department of Natural Resources to lease state land for oil and gas pipelines. Leases for the several pipelines, the Trans- Alaska Pipeline System (TAPS), Endicott, Kuparuk, Oliktok and Milne Point, are all due to expire in May 2004. In anticipation of these expirations, now is the time to make needed changes to the Leasing Act as proposed in this bill I transmit today. This bill increases the maximum term of right-of-way lease renewals from the current 10 years to 30 years, making the renewal term consistent with that of federal grants of right-of-way for oil and gas pipelines. Longer renewal periods will result in significant savings of time and money to industry and the state. The current broad definition of "state land" in the Leasing Act could require the state to issue a pipeline right-of-way lease over land in which the state does not have fee ownership, such as a state highway right-of-way over private land. Additionally, some land that is technically within the definition of "state land" is owned or managed by authorities other than the Department of Natural Resources, such as the University of Alaska, the Alaska Railroad Corporation, or the Department of Transportation and Public Facilities. This bill removes the potential for conflicts by specifying that land owned or administered by a state authority other than the Department of Natural Resources is not subject to the Right-of-Way Leasing Act. Rights-of- ways in those areas would be handled by the respective owners or managers. 2001-01-16 House Journal Page 0093 Finally, this bill would require lessees under new and renewed right- of-way leases to reimburse the state for costs associated with monitoring the operation, maintenance, and termination of pipelines on state right-of-way leases. The public demands that the state and federal governments thoroughly oversee Alaska pipelines. Though state law does not now require such reimbursement, the pipeline owners in the state have voluntarily reimbursed the state for such costs for TAPS and the newer pipelines for the last several years. This change also makes the state involvement with lessees consistent with our federal counterparts who already have the authority to require lessee reimbursement for monitoring operations, maintenance and termination activities. It is timely that we make these changes to our Right-Of-Way Leasing Act as soon as possible. Sincerely, /s/ Tony Knowles Governor"