Legislature(2003 - 2004)

02/05/2003 01:00 PM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HJR  6-ENDORSING ANWR LEASING                                                                                                 
                                                                                                                                
                                                                                                                                
CO-CHAIR  CHENAULT  announced that  the  first order  of  business                                                              
would be  HOUSE JOINT RESOLUTION  NO. 6, 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.                                                                                       
                                                                                                                                
Number 0140                                                                                                                     
                                                                                                                                
REPRESENTATIVE  VIC KOHRING, Alaska  State Legislature,  testified                                                              
on  behalf of  the House  Special Committee  on Oil  and Gas,  the                                                              
sponsor of HJR 6.  He said:                                                                                                     
                                                                                                                                
     It's   ...  a   resolution  from   the  [House   Special                                                                   
     Committee]  on Oil and  Gas.  We  chose to go  with that                                                                   
     route as opposed  to an individual member,  because it's                                                                   
     an  all-inclusive  effort;  ... it's  a  very  important                                                                   
     piece of  legislation.  It's  a resolution;  it wouldn't                                                                   
     have ...  anything to put into  effect as far as  a law,                                                                   
     but  it's  making  a very  important  statement  to  the                                                                   
     United  States Congress,  as  well as  the President  of                                                                   
     the United  States, and  other important officials  that                                                                   
     you  see listed  on page  2.   This is  a very  familiar                                                                   
     piece of  legislation that we've  had in the  past; it's                                                                   
     the same  bill as last  year that reiterates  our stance                                                                   
     on the issue  of whether we should go into  ANWR [Arctic                                                                   
     National  Wildlife  Refuge]  and  open  up  the  coastal                                                                   
     plains  for  exploration,   and  hopefully,  eventually,                                                                   
     development  -  if we  can  find  the reserves  that  we                                                                   
     expect to be there.                                                                                                        
                                                                                                                                
     If  you  go  through the  resolution,  you'll  see  real                                                                   
     important  points  in  here.   It's  a  1.5-million-acre                                                                   
     area  that constitutes  the  coastal plain,  which is  a                                                                   
     very  small area  in all  of  ANWR; it's  just the  very                                                                   
     northern  tip   on  one  side,   so  if  there   is  any                                                                   
     development  in  there,  it's  going to  affect  a  very                                                                   
     minimal  area.  The  expected footprint,  ... as  far as                                                                   
     what  would be  left behind  if we were  to develop  the                                                                   
     area, would  be less than one-half  of 1 percent  of the                                                                   
     coastal  plain itself  - only about,  we predict,  2,000                                                                   
     to 7,000  acres of land involved.   We are  hopeful that                                                                   
     we can  pass this [out  of the House Resources  Standing                                                                   
     Committee]  and move  it to  the House  floor, and  this                                                                   
     will  be our  way of  sending  a message  to the  United                                                                   
     States  Congress.  As  a member  of the Energy  Council,                                                                   
     ... we  are going  to advocate  strongly for ANWR  again                                                                   
     this year; we  are going to travel to  [Washington] D.C.                                                                   
     for  the  Energy  Council,  and this  will  be  ...  our                                                                   
     primary  issue  in advocating  for  the opening  of  the                                                                   
     coastal  plain,  and  hopefully  we  will  realize  some                                                                   
     major developments  that can very positively  contribute                                                                   
     to our  economy, and help  lessen dependence  on foreign                                                                   
     oil.                                                                                                                       
                                                                                                                                
REPRESENTATIVE KOHRING referred to the bill packet and said it                                                                  
contained additional information including the substantial                                                                      
number of jobs that [opening ANWR] would create.                                                                                
                                                                                                                                
Number 0373                                                                                                                     
                                                                                                                                
REPRESENTATIVE LYNN asked how anybody who's concerned about the                                                                 
future of Alaska, economic development, and energy independence                                                                 
for the  United States  of America  could possibly  be opposed  to                                                              
opening ANWR.                                                                                                                   
                                                                                                                                
REPRESENTATIVE KOHRING  said the  question was perplexing  to him,                                                              
too, and he couldn't  imagine anybody being opposed  to it, but he                                                              
did mention  there  had been concerns  from people  living  in the                                                              
region  about   the  effect  on   the  environment   and  wildlife                                                              
populations,  mainly,  the  Porcupine  caribou  herd.    He  said,                                                              
"We're sensitive  to the  environment; there's  reference  to that                                                              
in here, that  we want to develop  the area in a  very responsible                                                              
way and not ...  affect the migrations or the  calving grounds ...                                                              
of the herd."   Another point, he  said, would be to  look at [the                                                              
results]  in Prudhoe  Bay:   the caribou  population is  healthier                                                              
than  it was  before  the [area]  was developed.    Representative                                                              
Kohring remarked,  "I've  seen pictures of  caribou rubbing  their                                                              
backs on the pipeline,  and it doesn't seem to  affect the calving                                                              
either, so,  I'm ... hopeful  that we're  going to see  little, if                                                              
no, impact  on the  environment there, and  the concerns  of those                                                              
in that area, along those lines, will be mitigated."                                                                            
                                                                                                                                
REPRESENTATIVE LYNN expressed support for HJR 6.                                                                                
                                                                                                                                
Number 0493                                                                                                                     
                                                                                                                                
REPRESENTATIVE MASEK  remarked, "We've  seen this before  us every                                                              
year  now,  I  think  this  is  the  ninth  time  I've  seen  this                                                              
resolution."   She  recalled questions  from the  press about  the                                                              
effort  the  [legislature]  has  put into  [funding  the  lobbying                                                              
efforts  of]  Arctic   Power  and  [towards  opening]   ANWR,  and                                                              
remarked,  "As history says,  you have  to take  it step  by step,                                                              
and  have  patience,  and  I think  overall  from  when  we  first                                                              
started here ...  we've made quite big steps."   She continued, "I                                                              
think  we're highlighting  more on  getting [ANWR]  open; I  think                                                              
this resolution  is really  important, and it  plays a  pretty big                                                              
role in our state as far as ... how we support ANWR."                                                                           
                                                                                                                                
REPRESENTATIVE  MASEK  made  a   reference  about  President  Bush                                                              
educating  the  new members  of  Congress,  and said  she  thought                                                              
[Alaska]  needed to  have this  type  of resolution.   She  talked                                                              
about questioning  by the public and  the media of the  efforts of                                                              
the  [legislature  to  open  ANWR]  and  brought  attention  to  a                                                              
newspaper article  about crises occurring  around the world.   She                                                              
said, "In Russia,  ... they're one of our biggest  ... competitors                                                              
as  far as  opening any  oil  development, and  I  know in  Russia                                                              
they're ... facing  serious trouble as to how ...  they export the                                                              
oil because of the  lack of a pipeline, and they're  going to have                                                              
[to]  build new  [facilities]  to get  the  oil out."   She  spoke                                                              
about the Venezuelan  government's undergoing [large]  changes and                                                              
remarked,  "They're the  next country  that  we're competing  with                                                              
[for] ... oil  development.  So, I  think the more that  we can do                                                              
today to  secure and  show the oil  companies that  ... we  have a                                                              
very good economy  here -- and it's  very safe; it's not  like the                                                              
other  countries."   She said  deliberations  over the  resolution                                                              
help with the process.  She expressed her support.                                                                              
                                                                                                                                
Number 0703                                                                                                                     
                                                                                                                                
REPRESENTATIVE   GATTO   spoke  about   the   Persian  Gulf   war,                                                              
particularly,  the  destruction of  Kuwait's  oil  wells upon  the                                                              
retreat  of  the Iraqi  army.    Referring  to Iraq's  leader,  he                                                              
remarked,  "He, ...  essentially,  took the  chance  to plunge  us                                                              
into  a nuclear  winter;  it wouldn't  be  nuclear,  but the  idea                                                              
being  that he took  a risk  of essentially  destroying the  whole                                                              
...  planet as  we know  it. "   If  a similar  situation were  to                                                              
occur,  he said,  all of that  oil in  the Middle  East that  [the                                                              
United States] imports  so much of would become  unavailable for a                                                              
very long period  of time.  Representative Gatto  spoke about [the                                                              
United  States'] need  to  have  access to  its  own secure  [oil]                                                              
supplies, and said  due to national security, [the  United States]                                                              
needed  to  have   a  dependable  resource  within   the  country.                                                              
Representative  Gatto,   referring  to  Representative   Kohring's                                                              
aforementioned  trip  to  Washington   D.C.,  remarked,  "The  one                                                              
message I  want to  get back to  Washington D.C.,   is,  there are                                                              
crazy people in  the world, and they do crazy things;  ... if they                                                              
were to cut off  our ... supply, ... we need it,  we depend on it,                                                              
and we  can't get  by without it;  ... if they  take it  away from                                                              
us, I don't  know ... what will  happen, but I do know  we will be                                                              
in severe  trouble."  He  suggested the  oil supply in  the Middle                                                              
East could easily be taken away from the [United States].                                                                       
                                                                                                                                
REPRESENTATIVE  KOHRING,  in  response  to  Representative  Gatto,                                                              
said  he  would  take  that message  with  him  while  he  travels                                                              
throughout Washington,  D.C., and meets with  various congressmen.                                                              
He thanked Representative  Masek for her leadership  on this issue                                                              
and remarked, "I  know you've had this resolution  yourself in the                                                              
past, and we  did pass the same resolution with  the Twenty-Second                                                              
Alaska Legislature ...."                                                                                                        
                                                                                                                                
Number 0905                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GUTTENBERG said  dialogue from  either the  courts                                                              
or  Congress  said that  Alaska  wouldn't  get [royalties  at  the                                                              
ratio of]  90:10 [in  relation to the  federal government]  out of                                                              
ANWR coastal  plain development, and would  go back to  50:50.  He                                                              
asked Representative  Kohring to expand on whether  there had been                                                              
any more dialog on the subject.                                                                                                 
                                                                                                                                
REPRESENTATIVE KOHRING  replied that he  was not aware of  any new                                                              
dialog,  but  he  would  research   the  issue  and  present  that                                                              
information at  a subsequent  meeting.  Noting  that the  bill did                                                              
address that  particular issue, he  referred to page 3,  lines 15-                                                              
19, which read:                                                                                                                 
                                                                                                                                
     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  KOHRING indicated  he might  present a  resolution                                                              
to  the  House  Special Committee  on  Oil  and  Gas  specifically                                                              
addressing that issue.                                                                                                          
                                                                                                                                
Number 1089                                                                                                                     
                                                                                                                                
REPRESENTATIVE MASEK  moved to report HJR 6 out  of committee with                                                              
individual  recommendations  and   the  accompanying  zero  fiscal                                                              
notes; she asked for unanimous consent.                                                                                         
                                                                                                                                
Number 1104                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GUTTENBERG objected  for the  purpose of  offering                                                              
an amendment to HJR 6.                                                                                                          
                                                                                                                                
[Although Co-Chair  Chenault called a brief at-ease,  a motion was                                                              
made immediately afterward, and thus the recording continued.]                                                                  
                                                                                                                                
Number 1133                                                                                                                     
                                                                                                                                
REPRESENTATIVE MASEK  withdrew her motion  to report HJR 6  out of                                                              
committee.                                                                                                                      
                                                                                                                                
Number 1148                                                                                                                     
                                                                                                                                
REPRESENTATIVE GUTTENBERG  referred to page 1, lines  13-15, which                                                              
read:                                                                                                                           
                                                                                                                                
     WHEREAS  the "1002 study  area" is  part of the  coastal                                                                   
     plain  located  within  the  North  Slope  Borough,  and                                                                   
     residents   of  the   North  Slope   Borough,  who   are                                                                   
     predominantly   Inupiat   Eskimo,  are   supportive   of                                                                   
     development in the "1002 study area"; and                                                                                  
                                                                                                                                
REPRESENTATIVE  GUTTENBERG talked  about  the Gwich'in  [people's]                                                              
[dependence]   on  the   [Porcupine]  caribou   herd,  and   their                                                              
opposition  to opening  ANWR.   He suggested  the Gwich'in  people                                                              
have a  completely different position  [on ANWR] than  the Inupiat                                                              
[people],  and  said  the  interest   was  in  not  bringing  that                                                              
conflict  into   this  resolution.     Representative   Guttenberg                                                              
offered an amendment  to strike [lines 13-15]; he  said he thought                                                              
it would strengthen the [resolution].                                                                                           
                                                                                                                                
Number 1205                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MASEK objected  to the  amendment.   She told  the                                                              
committee  that the  area being  discussed is  in the North  Slope                                                              
Borough (NSB);  she said she thought  it was important  for [lines                                                              
13-15] to  remain in  the resolution because  they are  in support                                                              
of it.                                                                                                                          
                                                                                                                                
Number 1230                                                                                                                     
                                                                                                                                
REPRESENTATIVE    KOHRING,   in    response   to    Representative                                                              
Guttenberg's  suggested amendment,  said  it would  be helpful  to                                                              
demonstrate  support in the  affected regions.   Referring  to the                                                              
Gwich'in  [people],  he said  there  are  people who  have  voiced                                                              
their opposition  to the resolution.  He suggested,  however, that                                                              
the majority  of residents in  the area, mostly  Inupiat [people],                                                              
are  in  support  of  the  legislation.    Representative  Kohring                                                              
remarked, "I  think that  would enhance and  not detract  from the                                                              
strength of this resolution."                                                                                                   
                                                                                                                                
Number 1282                                                                                                                     
                                                                                                                                
REPRESENTATIVE MASEK  reminded the committee  that HJR 6  would be                                                              
going  to Congress  and the  President.   She  offered her  belief                                                              
that it  would delineate  the process to  remove lines  13-15, and                                                              
that  it  was  important  for  the   language  to  remain  in  the                                                              
resolution.                                                                                                                     
                                                                                                                                
Number 1324                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GATTO, discussing  the  importance  of making  the                                                              
bill accurate,  referred to line  14 and suggested  [amending] the                                                              
sentence to  say, "and  the Inupiat residents  of the  North Slope                                                              
Borough  are  supportive."    He  said the  outcome  would  be  an                                                              
accurate statement  because it doesn't  refer to  other residents,                                                              
only to the ones who are supportive.                                                                                            
                                                                                                                                
Number 1376                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOHRING,  responding to Representative  Gatto, said                                                              
[the  proposed amendment]  was  a  reasonable suggestion  that  he                                                              
would not object to.                                                                                                            
                                                                                                                                
REPRESENTATIVE  HEINZE  stated her  belief  that  the language  is                                                              
fine, clear,  and succinct,  and said she  didn't think  it should                                                              
be changed.                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GUTTENBERG  referred to  the  Gwich'in people  and                                                              
said they don't  have oil on their  land, don't live in  the North                                                              
Slope Borough, and  don't have the resources to walk  the halls of                                                              
Congress.   He remarked, "But those  guys are back  there pounding                                                              
the halls of Congress  on the [development of ANWR],  and my point                                                              
was not  to have something  that they can  refute talk  about that                                                              
their resources are  on the land, ... the caribou  that are in the                                                              
calving   grounds  or   what   they  harvest."      Representative                                                              
Guttenberg  reiterated  his belief  that  removal  of the  section                                                              
would  be  beneficial  to  deter  any  future  opposition  to  the                                                              
reference.                                                                                                                      
                                                                                                                                
CO-CHAIR FATE suggested  that at one time the  Gwich'in people had                                                              
mounted an  exploratory effort  to find  and develop  hydrocarbons                                                              
on their land.   He said he  was sympathetic to the  lifestyle and                                                              
wishes  of the  Gwich'in [people],  but  that there  was a  larger                                                              
issue at  stake, which  is the  economy and  the State  of Alaska,                                                              
and  proceeding  with something  that  the  state and  the  nation                                                              
desperately  need.     Representative  Fate  concurred   with  the                                                              
language as it exists in HJR 6.                                                                                                 
                                                                                                                                
Number 1529                                                                                                                     
                                                                                                                                
REPRESENTATIVE MASEK  pointed out  that the Gwich'in  [people] had                                                              
traveled  to Washington,  D.C.,  to  lobby on  this  issue in  the                                                              
past.   She referred  to Sara  James (ph),  who she  said was  the                                                              
forerunner on  this issue; had received  a lot of press  and media                                                              
attention; and  had made a big  presence in Washington,  D.C.  She                                                              
offered her  belief that the reason  for ANWR not opening  was due                                                              
to the lobbying  of the Gwich'in [people], and  remarked, "I think                                                              
we all  know that  they're on  the opposite  side of this  issue."                                                              
Representative  Masek said  the Gwich'in  people have  a right  to                                                              
speak  out and say  what they  want, and  that they  have done  so                                                              
very eloquently.   She  commented, "We as  a legislative  body ...                                                              
do  have to  look  at the  bigger  picture ...."    She noted  her                                                              
desire for the language to remain the same.                                                                                     
                                                                                                                                
Number 1632                                                                                                                     
                                                                                                                                
REPRESENTATIVE GUTTENBERG withdrew his amendment.                                                                               
                                                                                                                                
Number 1644                                                                                                                     
                                                                                                                                
REPRESENTATIVE MASEK  moved to report HJR 6 out  of committee with                                                              
individual  recommendations  and   the  accompanying  zero  fiscal                                                              
notes;  she  asked   for  unanimous  consent.     There  being  no                                                              
objection, HJR  6 was reported  from the House Resources  Standing                                                              
Committee.                                                                                                                      

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