2003-04-04                     Senate Journal                      Page 0706
SB 172                                                                                            
SENATE BILL NO. 172 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
             "An Act relating to the limitation on upland acreage                                  
               that a person may take or hold under oil and gas                                    
          leases; and providing for an effective date."                                             
                                                                                                    
was read the first time and referred to the Resources and Finance                                   
Committees.                                                                                         
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, indeterminate, Department of Natural                                            
  Resources                                                                                         
                                                                                                    
Governor's transmittal letter dated April 3:                                                        
                                                                                                    
Dear President Therriault:                                                                          
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill that would amend AS 38.05.140(c) to increase the                                
upland acreage limit for oil and gas leases from 500,000 acres to                                   
750,000 acres, except for land north of the Umiat Meridian baseline.                                
                                                                                                    
Currently, under AS 38.05.140(c) oil and gas lessees may hold not                                   
more than a total of 500,000 acres on tide and submerged land and no                                
more than 500,000 acres on uplands. While oil and gas leases with                                   
certified wells and those included within units are excluded from these                             
acreage limitations, many operating oil and gas companies are already                               
either at the existing 500,000 acre limitation or close to it. The bulk of                          
this acreage is located on the North Slope and Beaufort Sea.                                        
                                                                                                    
In the past few years, the Department of Natural Resources has been                                 
encouraging exploration of frontier areas such as the North Slope                                   
foothills. The bill would increase the maximum upland acreage to                                    
750,000, of which no more than 500,000 acres could be located north                                 
of the Umiat Meridian baseline. Thus, companies would be able to                                    
lease and explore acreage in Alaska's frontier basins while still                                   
maintaining their interests on the North Slope.                                                     
                                                                                                    

2003-04-04                     Senate Journal                      Page 0707
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
Sincerely,                                                                                          
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor