Legislature(2001 - 2002)

04/10/2001 05:30 PM O&G

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
SB 164 - NO GAS PIPELINE OVER BEAUFORT SEA                                                                                    
                                                                                                                                
[Contains discussion relating to HB 83]                                                                                         
                                                                                                                                
Number 0100                                                                                                                     
                                                                                                                                
VICE CHAIR  FATE announced  the first  order of  business, SENATE                                                               
BILL NO. 164,  "An Act prohibiting leases  under the Right-of-Way                                                               
Leasing Act  on state land  in or  adjacent to the  Beaufort Sea;                                                               
and providing for an effective date."                                                                                           
                                                                                                                                
Number 0120                                                                                                                     
                                                                                                                                
VICE  CHAIR  FATE  requested  a  motion  to  adopt  the  proposed                                                               
committee  substitute (CS),  Version  J [22-LS0809\J,  Chenoweth,                                                               
4/5/01], as a work draft.   [Representative Chenault subsequently                                                               
said  "yes,"  which was  taken  as  a  motion; no  objection  was                                                               
stated, and Version J was treated as adopted.]                                                                                  
                                                                                                                                
VICE CHAIR FATE  explained that on page 2 of  Version J, language                                                               
was added  on lines 17-25.   However, an amendment was  needed on                                                               
page  3,  lines  7-11,  subparagraph   (B),  to  remove  language                                                               
regarding  capacity  that  doesn't  fit   in  the  bill  in  this                                                               
particular area.                                                                                                                
                                                                                                                                
[Adopted as  a work draft  at the 4/2/01 hearing  on HB 83  was a                                                               
proposed CS,  Version L; the original  HB 83 had been  gutted and                                                               
had language from SB 164 put  into it, and Version L retained the                                                               
employment language and language  dealing with pipeline capacity.                                                               
Senator  Torgerson,  sponsor of  SB  164,  had testified  at  the                                                               
4/2/01 hearing  on HB 83, indicating  he had no problem  with the                                                               
employment wording,  but felt the pipeline  capacity language did                                                               
not fit in the  bill.  Therefore, when SB 164 was  to be heard by                                                               
the House  Special Committee on  Oil and  Gas, a new  proposed CS                                                               
ordered by the  committee was to include  the employment language                                                               
from Version L of HB 83,  but not the capacity language; however,                                                               
the  resulting proposed  CS  for SB  164,  Version J,  mistakenly                                                               
included the capacity language.]                                                                                                
                                                                                                                                
Number 0400                                                                                                                     
                                                                                                                                
SENATOR JOHN  TORGERSON, Alaska  State Legislature,  came forward                                                               
to testify  as sponsor of SB  164.  He explained  that the thrust                                                               
of  SB 164  is  to eliminate  the  "over-the-top" [gas  pipeline]                                                               
route,  rather than  to talk  about [pipeline]  capacities.   The                                                               
bill talks about  eliminating a choice by  making the legislative                                                               
finding  that  [the  "over-the-top"  route]  isn't  in  the  best                                                               
interests of  the state because  it wouldn't  include value-added                                                               
uses, for example.   Referring members to  subparagraph (A) [page                                                               
3], Senator Torgerson emphasized  that the capacity question just                                                               
doesn't fit within the context of the bill.                                                                                     
                                                                                                                                
Number 0545                                                                                                                     
                                                                                                                                
REPRESENTATIVE  DYSON moved  to adopt  a conceptual  amendment to                                                               
Version J, page 3, "taking out  (A) on line 4, and ... everything                                                               
from  line  7  through  line  12."   There  being  no  objection,                                                               
conceptual Amendment 1 was adopted.                                                                                             
                                                                                                                                
[A  motion to  move the  bill from  committee was  made, but  was                                                               
withdrawn in order to hear testimony.]                                                                                          
                                                                                                                                
Number 0709                                                                                                                     
                                                                                                                                
MICHAEL J.  HURLEY, Government Relations, North  American Natural                                                               
Gas  Pipeline  Group,  came  forward   to  testify,  noting  that                                                               
committee members had  his written testimony.   He emphasized the                                                               
group's opposition  to the  bill, saying  it is  inappropriate at                                                               
this point to be taking options off the table.                                                                                  
                                                                                                                                
Number 0796                                                                                                                     
                                                                                                                                
REPRESENTATIVE  CHENAULT  asked  whether looking  at  alternative                                                               
routes is  a requirement of  the FERC [Federal  Energy Regulatory                                                               
Commission] or something that the group  has decided to do on its                                                               
own.                                                                                                                            
                                                                                                                                
MR. HURLEY specified  that a section in the  U.S. regulations, 18                                                               
C.F.R. 380.12,  sets out the  requirements for an  application to                                                               
the  FERC.   Section  12 of  18  C.F.R 380  outlines  one of  the                                                               
appendices required  for a filing, which  includes an alternative                                                               
analysis and  specifies that it  must look at  alternative costs,                                                               
environmental impacts, and so forth.                                                                                            
                                                                                                                                
Number 0934                                                                                                                     
                                                                                                                                
REPRESENTATIVE  OGAN  said  right   now  there  is  no  pipeline;                                                               
therefore, [the legislature]  is choosing a preferred  route.  He                                                               
added that  Congress already  has chosen a  route.   He suggested                                                               
that the  policy call is similar  to whether the State  of Alaska                                                               
wants to invest  in "fast ferries" or  a road out of  Juneau.  It                                                               
isn't prohibiting something that already  exists, he said, but is                                                               
making a policy call regarding the route.                                                                                       
                                                                                                                                
MR. HURLEY  restated his belief  that it is premature  for anyone                                                               
to  make   those  kinds  of  determinations   before  having  the                                                               
information.                                                                                                                    
                                                                                                                                
VICE CHAIR  FATE asked  whether there  were questions  of William                                                               
Britt,   Jr.,  Pipeline   Coordinator,   Department  of   Natural                                                               
Resources, who was on teleconference; none were offered.                                                                        
                                                                                                                                
Number 1168                                                                                                                     
                                                                                                                                
REPRESENTATIVE  DYSON made  a  motion  to move  HCS  for SB  164,                                                               
version  22-LS0809\J,  Chenoweth,  4/5/01,  as  amended,  out  of                                                               
committee  with individual  recommendations and  the zero  fiscal                                                               
note.   There being no objection,  HCS SB 164(O&G) was  moved out                                                               
of the House Special Committee on Oil and Gas.                                                                                  
                                                                                                                                

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