Legislature(2005 - 2006)CAPITOL 124
04/01/2005 01:00 PM House RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| HJR16 | |
| HB174 | |
| HB142 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 142 | TELECONFERENCED | |
| + | HB 71 | TELECONFERENCED | |
| = | HJR 16 | ||
| = | HB 174 | ||
HB 142-OIL & GAS: REG. OF UNDERGROUND INJECTION CO-CHAIR SAMUELS announced that the next order of business would be HOUSE BILL NO. 142 "An Act relating to regulation of underground injection under the federal Safe Drinking Water Act; and providing for an effective date." 1:39:23 PM DAN SEAMOUNT, Commissioner, Alaska Oil and Gas Conservation Commission (AOGCC), said HB 142 gives the state the authority over a very small number of waste disposal wells from the Environmental Protection Agency (EPA), which will probably save money and time for the state, federal government, and industry. MR. SEAMOUNT said there is redundancy and confusion between the industry and agencies. There are two agencies regulating the same kind of wells, he said. Much time is spent deciding what kind of waste goes down which wells. "The AOGCC regulates what goes on underneath the ground," he said, and the most important mandate is protecting underground fresh water. The state currently oversees the Class 2 program. There are five classes he said, "but basically the best place to put oil field waste is deep underground near where it has been produced." 1:41:57 PM MR. SEAMOUNT said injection wells enhance oil recovery and generates billions of dollars to the state. Alaska's statute gives the state authority over Class 2 wells. The bill gives the state control over Class 1 wells. 1:43:08 PM MR. SEAMOUNT said two agencies are now protecting a non-existent resource--underground fresh water. The North Slope has no underground fresh water, he said. After the bill passes, the AOGCC would like to do away with Class 1 wells. He added that EPA supports this effort and is trying to come up with an ingenious way to give partial primacy to the state. 1:44:42 PM MR. SEAMOUNT said there are five classes of wells created under the federal Safe Drinking Water Act. Wastes are injected below freshwater aquifers for Class 1 wells, the state has primacy for Class 2 wells, there are no Class 3 wells in Alaska, Class 4 wells are outlawed, and Class 5 wells are the most numerous in Alaska, and they take any waste that doesn't fit in the other classes of wells, and most are septic systems. He said there are 1,150 Class 2 wells and only seven Class 1 wells in Alaska. 1:46:36 PM MR. SEAMOUNT noted that over 98 percent of injected materials go into Class 2 wells. The biggest problem is the confusion by operators of what is allowed in the wells, and they deal with two agencies, which is a waste of time. Mr. Seamount said they should all be Class 2 wells, but EPA does not agree with that. 1:47:36 PM MR. SEAMOUNT said there would not be any waste for Class 1 wells were it not for the North Slope infrastructure, and AOGCC believes that means they all qualify for Class 2 wells. He said often the same type of fluids go down different wells. Sometimes the wells are right next to each other, and the fluids end up in the same zone, he added. 1:49:23 PM MR. SEAMOUNT said the current system protects a non-existent resource and is inefficient. He stated that the AOGCC is faster than EPA because EPA staff have to be sent from Seattle. CO-CHAIR SAMUELS asked about EPA's position. 1:50:38 PM MR. SEAMOUNT said EPA is supportive. He explained that Class 1 and 2 wells are the same construction, but Class 2 wells are deeper so they are better for the environment. "There really isn't much difference at all between them," he said. He noted that it costs $1 more per barrel to operate a Class 1 well. MR. SEAMOUNT pointed out the options: "We can conduct business as usual, which means that we don't have to put any more effort into this initiative, but we're going to continue with the same confusion, same cost to taxpayer and industry, two agencies are going to be doing the same work." He said he doesn't think it is anybody's preference to continue that same way. 1:52:31 PM MR. SEAMOUNT said HB 142 would allow AOGCC to try to obtain primacy of Class 1 and 2 wells. In the long run, AOGCC sees only one class of wells on the North Slope--Class 2 wells overseen by the state--but not until this bill is passed and there is a favorable ruling by EPA. REPRESENTATIVE LEDOUX asked about the EPA ruling. MR. SEAMOUNT said there is a four-person task force with EPA to figure out how to make the change. REPRESENTATIVE LEDOUX asked if the task force is already in place, why is there a need for the legislation. MR. SEAMOUNT said the state would need language in statute to legally take over the program. 1:54:41 PM MR. SEAMOUNT said if EPA does not agree, the bill will not be needed. REPRESENTATIVE LEDOUX asked about waiting for the EPA to approve the change, and then ask for legislative approval. MR. SEAMOUNT answered that the AOGCC is trying to be prepared. REPRESENTATIVE OLSON asked the view of the North Slope Borough. MR. SEAMOUNT said he didn't know. REPRESENTATIVE GATTO asked where the North Slope gets drinking water. MR. SEAMOUNT said from surface water. 1:57:08 PM REPRESENTATIVE GATTO asked about surface contamination on top of permafrost. MR. SEAMOUNT said he thinks there is minimal surface contamination through disposal operations. 1:57:47 PM REPRESENTATIVE ELKINS moved to report HB 142 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HB 142 was passed out of the House Resources Standing Committee.
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