Legislature(2005 - 2006)CAPITOL 124

01/18/2005 10:00 AM House OIL & GAS


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10:03:36 AM Start
01:07:21 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
<Mtg continued following floor session>
*+ HJR 4 ENDORSING ANWR LEASING TELECONFERENCED
Moved CSHJR 4(O&G) Out of Committee
Overview: Div. of Oil and Gas by
Director Mark Myers
Oil and Gas Activities in AK
HJR 4 - ENDORSING ANWR LEASING                                                                                                
                                                                                                                                
10:05:27 AM                                                                                                                   
                                                                                                                                
CHAIR KOHRING  announced that  the first  order of business  would                                                              
be  HOUSE  JOINT  RESOLUTION  NO. 4,  "Urging  the  United  States                                                              
Congress  to pass legislation  to  open the coastal  plain  of the                                                              
Arctic  National   Wildlife  Refuge,   Alaska,  to  oil   and  gas                                                              
exploration, development, and production."                                                                                      
                                                                                                                                
REPRESENTATIVE MIKE  HAWKER, Alaska State Legislature,  sponsor of                                                              
HJR  4, expressed  his  interest in  opening  the Arctic  National                                                              
Wildlife Refuge  (ANWR) to oil  development, and stated  that this                                                              
resolution  mirrors   the  language  used  in  the   prior  year's                                                              
resolution.                                                                                                                     
                                                                                                                                
10:07:56 AM                                                                                                                   
                                                                                                                                
CHAIR  KOHRING opened  the meeting  to public  testimony.   No one                                                              
wished to testify, so he closed the public hearing.                                                                             
                                                                                                                                
10:09:06 AM                                                                                                                   
                                                                                                                                
KEVIN  HAND, Director,  Arctic  Power,  in response  to  questions                                                              
from Representative  Rokeberg, stated that Arctic  Power personnel                                                              
are hard  at work in  Washington, D.C.   He said that  lobbying is                                                              
expensive and  "our opponents ...  have the capability to  raise a                                                              
much greater amount  of resources than we do."   He requested that                                                              
Arctic Power  be included  in the  governor's supplemental  budget                                                              
request for  $1.85 million to  continue efforts lobbying  the U.S.                                                              
Congress.  He  also mentioned HB 32, which would  appropriate $1.3                                                              
million to Arctic Power.                                                                                                        
                                                                                                                                
MR.  HAND,  in   further  response  to   Representative  Rokeberg,                                                              
clarified that Arctic  Power has requested $1.85  million from the                                                              
governor.    He said  that  Arctic  Power  is  "in somewhat  of  a                                                              
healthy  shape",  and  has been  fundraising  and  soliciting  the                                                              
support  of  business,   industry,  and  the  people   of  Alaska.                                                              
Although Arctic  Power is  able to  fund its operations  currently                                                              
but  he   predicted  "some  things   taking  place  in   D.C.  and                                                              
nationwide  where it  would quickly  exhaust our  resources to  be                                                              
able to take place in that debate."                                                                                             
                                                                                                                                
10:13:07 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE ROKEBERG  asked Mr. Hand if there  was an "informal                                                              
nosecount" of supporters in the U.S. House and the U.S. Senate.                                                                 
                                                                                                                                
MR. HAND  responded affirmatively,  and stated  that the  election                                                              
results  have  been favorable  to  Arctic  Power, which  has  many                                                              
supporters and  strong allies in  the U.S. Congress.   He remarked                                                              
that Arctic  Power made specific  gains in the U.S.  Senate, where                                                              
a net  of three  votes were  picked up  to [place  ANWR] over  the                                                              
"threshold of  50 votes".   He stated,  "If it came  up to  an up-                                                              
down vote  in the  U.S. Senate ...  we have  votes there  hard and                                                              
fast for the supporters of ANWR."                                                                                               
                                                                                                                                
10:15:28 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE ROKEBERG  referred to the  final resolve in  HJR 4,                                                              
which states:                                                                                                                   
                                                                                                                                
     FURTHER  RESOLVED  that  the  Alaska  State  Legislature                                                                   
     opposes  any  unilateral reduction  in  royalty  revenue                                                                   
     from exploration  and development  of the coastal  plain                                                                   
     of  the Arctic  National  Wildlife Refuge,  Alaska,  and                                                                   
     any  attempt   to  coerce  the  State  of   Alaska  into                                                                   
     accepting  less than  the 90  percent of  the oil,  gas,                                                                   
     and mineral  royalties from  the federal land  in Alaska                                                                   
     that was promised to the state at statehood.                                                                               
                                                                                                                                
REPRESENTATIVE  ROKENBERG  said  that  this  has to  do  with  the                                                              
"historic 90:10 -  50:50 argument".  He asked Mr.  Hand to explain                                                              
how that "plays  in Washington" and what effect it  has had in the                                                              
past.                                                                                                                           
                                                                                                                                
MR. HAND answered  that the resolution calls for a  90:10 split to                                                              
the State  of Alaska.  He  mentioned that, historically,  the U.S.                                                              
Congress  has  changed this  to  a  50:50  split, "There  is  some                                                              
question  with  the  Statehood   Act  and  such,  with  the  legal                                                              
precedent  it involved".   He  pointed out  that U.S.  Congressman                                                              
Don Young  has refiled  a bill which  calls for  a 90:10  split to                                                              
the State of Alaska.                                                                                                            
                                                                                                                                
10:18:29 AM                                                                                                                   
                                                                                                                                
CHAIR  KOHRING requested  that the  committee take  action on  the                                                              
legislation, acknowledging  that there  was an amendment  that the                                                              
committee needed to address.                                                                                                    
                                                                                                                                
REPRESENTATIVE  SAMUELS moved  to adopt Amendment  1, labeled  24-                                                              
LS0179\A.1, Chenoweth, 1/14/05, which read:                                                                                     
                                                                                                                                
     Page 3, line 23, following "Representatives;":                                                                             
          Insert:  "the Honorable Nancy Pelosi, Minority                                                                        
     Leader of the U.S. House of Representatives;"                                                                              
                                                                                                                                
     Page 3, line 24, following "Senate;"                                                                                       
          Insert:  "the Honorable Harry Reid, Minority                                                                          
     Leader  of  the  U.S.  Senate;  the  Honorable  Pete  V.                                                                   
     Domenici,  Chair of  the  Energy and  Natural  Resources                                                                   
     Committee of the U.S. Senate;"                                                                                             
                                                                                                                                
REPRESENTATIVE ROKEBERG objected for discussion purposes.                                                                       
                                                                                                                                
REPRESENTATIVE HAWKER  explained that  the amendment would  make a                                                              
minor change  to HJR 4;  it would add three  names to the  list of                                                              
resolution recipients.                                                                                                          
                                                                                                                                
10:19:58 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  ROKEBERG  asked how  much it  would  cost to  make                                                              
additional  copies of  the resolution  to send  to "the  Democrats                                                              
who've  never supported  this position".   He  voiced his  concern                                                              
about "the  reluctance on the  part of  the Democratic Party  as a                                                              
party  platform  as  well  as  ...  through  their  leadership  in                                                              
Congress to not support this concept in the past."                                                                              
                                                                                                                                
CHAIR KOHRING  commented that the  resolution wouldn't be  sent to                                                              
all  members of  the  Democratic or  Republican  parties, just  to                                                              
certain leaders.                                                                                                                
                                                                                                                                
REPRESENTATIVE   GARDNER   noted  that   for   the  Alaska   State                                                              
Democratic Party, "It  is part of the party platform  to open ANWR                                                              
and  it does  us  no  harm, and  could  be  of great  benefit,  to                                                              
underline that with the national leaders as well."                                                                              
                                                                                                                                
REPRESENTATIVE  ROKEBERG  agreed with  the  "theory  of trying  to                                                              
broaden  the net  and  [get] more  support  for this".   He  said,                                                              
"Organized  labor  has supported  this  in  the  past and  I  look                                                              
forward to  their support in the  future because of the  amount of                                                              
jobs this  activity would  generate throughout  the country."   He                                                              
withdrew his objection.                                                                                                         
                                                                                                                                
10:22:07 AM                                                                                                                   
                                                                                                                                
There being no objection, Amendment 1 was adopted.                                                                              
                                                                                                                                
10:22:15 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  SAMUELS moved to  report HJR  4 as amended  out of                                                              
committee with  individual recommendations  and the  attached zero                                                              
fiscal note.  There being no objection, it was so moved.                                                                        

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