Legislature(2017 - 2018)GRUENBERG 120

02/23/2018 01:30 PM JUDICIARY

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+ HB 259 CONFINING VEHICLE LOADS TELECONFERENCED
Heard & Held
-- Public Testimony --
+= HB 330 DNR: DISCLOSURE OF CONFIDENTIAL INFO TELECONFERENCED
Heard & Held
          HB 330-DNR: DISCLOSURE OF CONFIDENTIAL INFO                                                                       
                                                                                                                                
1:33:24 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN announced that the  first order of business would be                                                               
HOUSE  BILL NO.  330,  "An Act  authorizing  the commissioner  of                                                               
natural  resources to  disclose  confidential  information in  an                                                               
investigation  or proceeding,  including a  lease royalty  audit,                                                               
appeal,  or request  for reconsideration  and issue  a protective                                                               
order limiting  the persons who  have access to  the confidential                                                               
information."                                                                                                                   
                                                                                                                                
1:34:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX moved  to adopt Amendment 1,  which read as                                                               
follows:                                                                                                                        
                                                                                                                                
[Amendment  1  did  not  go through  the  Legislative  Legal  and                                                               
Research Services  Office.   The legislative  drafting procedures                                                               
were not followed.]                                                                                                             
                                                                                                                                
     Page 3, line 25, following "department":                                                                               
          Insert "relating to oil and gas"                                                                                  
                                                                                                                                
     Page 3, line 26:                                                                                                           
          Delete "a lease"                                                                                                  
          Insert "an"                                                                                                       
                                                                                                                                
     Page 6, line 20, following "royalty":                                                                                  
          Insert "or net profit share"                                                                                    
                                                                                                                                
REPRESENTATIVE   KREISS-TOMKINS   objected    for   purposes   of                                                               
discussion.                                                                                                                     
                                                                                                                                
1:34:39 PM                                                                                                                    
                                                                                                                                
GREG SMITH, Staff, Representative  Gabrielle LeDoux, Alaska State                                                               
Legislature,  advised  that the  general  intent  of Amendment  1                                                               
seeks to  limit the type of  disclosures that are subject  to the                                                               
protective  orders  for  oil  and gas  lease  audit  appeals  and                                                               
requests for  consideration, as opposed  to all types  of leases.                                                               
He  opined that  adding  this  net profit  share  after the  word                                                               
"royalty" [HB 330,  page 6, line 26] better  encapsulates what is                                                               
needed  (audio   difficulties)  the  types  of   work  for  these                                                               
disclosures.                                                                                                                    
                                                                                                                                
1:35:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS  noted that  given the  addition of                                                               
"relating to  oil and  gas," he  asked whether  Mr. King  had any                                                               
communications with Usibelli Coal Mine,  Inc., as to whether this                                                               
will satisfy its concern.                                                                                                       
                                                                                                                                
MR.  SMITH advised  that they  had reached  out to  Usibelli Coal                                                               
Mine,  Inc.,  and  had  not received  a  confirmation  that  this                                                               
amendment would allay its concerns, but he believes it does.                                                                    
                                                                                                                                
1:36:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS  asked Mr. Smith to  share with the                                                               
committee any  response it may  receive from Usibelli  Coal Mine,                                                               
Inc.                                                                                                                            
                                                                                                                                
MR. SMITH responded that he  definitely would share Usibelli Coal                                                               
Mine's response with the committee.                                                                                             
                                                                                                                                
1:36:29 PM                                                                                                                    
                                                                                                                                
ED KING,  Special Assistant, Commissioners Office,  Department of                                                               
Natural Resources, was available to testify.                                                                                    
                                                                                                                                
CHAIR CLAMAN  asked Mr. King  to generally offer the  position of                                                               
the Department of Natural Resources (DNR) as to Amendment 1.                                                                    
                                                                                                                                
MR. KING  referred to  the first change  within the  amendment as                                                               
follows:                                                                                                                        
                                                                                                                                
     Page 3, line 25, following "department":                                                                                   
          Insert "relating to oil and gas"                                                                                      
                                                                                                                                
MR.  KING  said  that  it  is DNR's  perspective  that  it  would                                                               
restrict or narrow  the scope of the protective  orders to issues                                                               
relating   only  to   oil  and   gas;  thereby   alleviating  the                                                               
hypothetical concerns of Usibelli Coal  Mine, Inc., or others may                                                               
have in the  mining community.  Generally speaking,  he said that                                                               
DNR does not object  to this narrowing of the scope  as it is not                                                               
aware of any issues, outside of  oil and gas, that would actually                                                               
use this  protective order.   Clearly, he pointed out,  DNR would                                                               
prefer the  more general  authority in the  event those  types of                                                               
situations arose in the future.                                                                                                 
                                                                                                                                
1:37:39 PM                                                                                                                    
                                                                                                                                
MR. KING advised that the  next two changes are technical changes                                                               
the department felt would benefit the bill, as follows:                                                                         
                                                                                                                                
     Page 3, line 26:                                                                                                           
          Delete "a lease"                                                                                                      
          Insert "an"                                                                                                           
                                                                                                                                
MR.  KING explained  that the  words  "a lease"  before the  word                                                               
"audit"  is  not  necessary,  and  as a  modifier,  it  could  be                                                               
interpreted  to   modify  the  words  "appeal,   or  request  for                                                               
reconsideration," as well.  Therefore,  removing the word "lease"                                                               
was a  cleaner way to  approach this  issue, and then  making the                                                               
grammatical change from "a" to "an."                                                                                            
                                                                                                                                
     Page 6, line 20, following "royalty":                                                                                      
          Insert "or net profit share"                                                                                          
                                                                                                                                
MR. KING  explained that the  third change in this  amendment and                                                               
adding,  after  the word  "royalty,"  the  words "or  net  profit                                                               
share," of  which has to do  with the fact that  net profit share                                                               
lease terms are  not considered royalty payments.   Therefore, he                                                               
advised, when  DRN runs into  a situation  where it has  to audit                                                               
the net  profit share payments  to make certain that  revenue was                                                               
properly  paid  and collected,  DNR  wants  to make  certain  the                                                               
terminology is  there and there  is no  doubt that the  intent of                                                               
the legislature was to include those net profit share terms.                                                                    
                                                                                                                                
1:39:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS  withdrew  his objection.    There                                                               
being no objection, Amendment 1 was adopted.                                                                                    
                                                                                                                                
[HB 330 was held over.]                                                                                                         
                                                                                                                                

Document Name Date/Time Subjects
HB330 ver A 2.16.18.pdf HJUD 2/16/2018 1:00:00 PM
HJUD 2/21/2018 1:00:00 PM
HJUD 2/23/2018 1:30:00 PM
HJUD 2/26/2018 1:00:00 PM
HRES 3/9/2018 1:00:00 PM
HRES 3/12/2018 1:00:00 PM
HRES 3/14/2018 1:00:00 PM
HB 330
HB330 Proposed Amendment 2.23.18.pdf HJUD 2/23/2018 1:30:00 PM
HRES 3/9/2018 1:00:00 PM
HRES 3/14/2018 1:00:00 PM
HB 330
HB259 Work Draft Committee Substitute ver L 2.23.18.pdf HJUD 2/23/2018 1:30:00 PM
HJUD 3/5/2018 1:00:00 PM
HB 259
HB259 ver M 2.23.18.pdf HJUD 2/23/2018 1:30:00 PM
HB 259
HB259 Sponsor Statement ver L 2.23.18.pdf HJUD 2/23/2018 1:30:00 PM
HB 259
HB259 Sectional Analysis ver L 2.23.18.pdf HJUD 2/23/2018 1:30:00 PM
HB 259
HB259 Summary of Changes ver M to L 2.23.18.pdf HJUD 2/23/2018 1:30:00 PM
HB 259
HB259 Additional Document-Leg. Research Report 2.23.18.pdf HJUD 2/23/2018 1:30:00 PM
HB 259
HB259 Supporting Document-Alaska Governor's Proclamation-Secure Your Load Day 2.23.18.pdf HJUD 2/23/2018 1:30:00 PM
HB 259
HB259 Supporting Document-Anchorage Mayoral Proclamation-Secure Your Load Day 2.23.18.pdf HJUD 2/23/2018 1:30:00 PM
HB 259
HB259 Supporting Document-Anchorage Municipal Assembly Resolution-Secure Your Load Day 2.23.18.pdf HJUD 2/23/2018 1:30:00 PM
HB 259
HB259 Supporting Document-Mat-Su Mayoral Proclamation-Secure Your Load Day 2.23.18.pdf HJUD 2/23/2018 1:30:00 PM
HB 259
HB259 Supporting Document-Unsecured Load Incident Articles-Secure Your Load Day 2.23.18.pdf HJUD 2/23/2018 1:30:00 PM
HB 259
HB259 Fiscal Note DOT-MSCVE 2.23.18.pdf HJUD 2/23/2018 1:30:00 PM
HB 259