Legislature(2007 - 2008)BARNES 124

05/04/2007 01:00 PM RESOURCES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 241 STAMPEDE STATE RECREATION AREA TELECONFERENCED
<Bill Hearing Canceled>
*+ HJR 21 OPPOSE UN LAND DESIGNATIONS IN ALASKA TELECONFERENCED
Moved CSHJR 21(RES) Out of Committee
*+ HB 94 MARINE PARKS ADDITIONS/HUNTING ALLOWED TELECONFERENCED
Moved CSHB 94(RES) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 128 OIL & GAS PRODUCTION TAX: EXPENDITURES TELECONFERENCED
Moved CSHB 128(RES) Out of Committee
HB 128-OIL & GAS PRODUCTION TAX: EXPENDITURES                                                                                 
                                                                                                                                
1:11:53 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO announced  that the first order  of business would                                                               
be  HOUSE BILL  NO.  128,  "An Act  relating  to allowable  lease                                                               
expenditures for  the purpose of  determining the  production tax                                                               
value  of  oil and  gas  for  the purposes  of  the  oil and  gas                                                               
production tax;  and providing for  an effective date."   [Before                                                               
the  committee   is  CSHB  128(O&G),   as  amended   at  previous                                                               
hearings.]                                                                                                                      
                                                                                                                                
1:12:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  referred  to  an  amendment  labeled  25-                                                               
LS0561\K.4, Bullock, 5/3/07, which read:                                                                                        
                                                                                                                                
     Page 4, line 1, following "equipment":                                                                                 
          Insert ";                                                                                                         
               (20)  costs related to the maintenance of                                                                    
     oil and  gas facilities, equipment,  and infrastructure                                                                
     that  are incurred  as a  result  of a  violation of  a                                                                
     regulation adopted  by the person in  the Department of                                                                
     Natural   Resources  who   is  the   lead  person   for                                                                
     exercising oversight  over the  maintenance of  oil and                                                                
     gas  facilities, equipment,  and infrastructure  in the                                                                
     state"                                                                                                                 
                                                                                                                                
     Page 4, lines 4 - 5:                                                                                                       
          Delete all material and insert:                                                                                       
          "APPLICABILITY.   (a)    AS 43.55.165(e)(19),   as                                                                    
     enacted in sec.  1 of this Act, applies to  oil and gas                                                                    
     produced after March 31, 2006.                                                                                             
          (b)  AS 43.55.165(e)(20), as enacted in sec. 1 of                                                                     
     this Act,  applies to  oil and  gas produced  after the                                                                    
     effective date  of the regulations described  in sec. 5                                                                    
     of this Act."                                                                                                              
                                                                                                                                
     Page 4, line 20:                                                                                                           
          Delete "Section 1 of this Act"                                                                                        
          Insert "AS 43.55.165(e)(19), as enacted in sec. 1                                                                     
     of this Act,"                                                                                                              
                                                                                                                                
     Page 4, line 21:                                                                                                           
          Delete all material and insert:                                                                                       
        "*  Sec.  5. The  uncodified  law  of the  State  of                                                                
     Alaska is amended by adding a new section to read:                                                                         
          CONDITIONAL       EFFECT;        NOTICE.       (a)                                                                    
     AS 43.55.165(e)(20), as enacted in  sec. 1 of this Act,                                                                    
     takes effect  only if the  person in the  Department of                                                                    
     Natural   Resources  who   is  the   lead  person   for                                                                    
     exercising oversight  over the  maintenance of  oil and                                                                    
     gas  facilities, equipment,  and infrastructure  in the                                                                    
     state adopts regulations related  to the maintenance of                                                                    
     oil and  gas facilities, equipment,  and infrastructure                                                                    
     in the state.                                                                                                              
          (b)  The commissioner of natural resources shall                                                                      
     notify the  revisor of statutes  of the  effective date                                                                    
     of the regulations described in (a) of this section.                                                                       
        *  Sec. 6.  If  AS 43.55.165(e)(20),  as enacted  in                                                                  
     sec. 1  of this Act,  takes effect, it takes  effect on                                                                    
     the  effective date  of  the  regulations described  in                                                                    
     sec. 5 of this Act.                                                                                                        
      * Sec. 7. Except as provided in sec. 6 of this Act,                                                                   
    this    Act    takes     effect    immediately    under                                                                     
     AS 01.10.070(c)."                                                                                                          
                                                                                                                                
REPRESENTATIVE   SEATON   explained   that   the   aforementioned                                                               
amendment is  Don Bullock's [version of]  Conceptual Amendment 4,                                                               
which  was adopted  unanimously  [at the  May  2, 2007  hearing].                                                               
Therefore,   K.4  has   already   been   incorporated  into   the                                                               
legislation.   He explained that  Conceptual Amendment 4  added a                                                               
new subsection, which read:                                                                                                     
                                                                                                                                
     costs incurred as a result  of an action or inaction in                                                                    
     violation of  regulation or  procedures adopted  by the                                                                    
     pipeline safety integrity  organization (PSIO) or other                                                                    
     appropriate agency.                                                                                                        
                                                                                                                                
REPRESENTATIVE SEATON  pointed out  that the PSIO  isn't included                                                               
because it  is to  be under the  Department of  Natural Resources                                                               
(DNR).  "So, they identified  the agency or any subsidiary agency                                                               
such as PSIO that would be adopting these regulations," he said.                                                                
                                                                                                                                
1:14:03 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO then  turned attention to page  3, paragraph (19),                                                               
which he said is the only  issue keeping CSHB 128(O&G) from being                                                               
forwarded to  the next committee  of referral.    He  related his                                                               
understanding  that if  paragraph  (19) is  maintained, then  the                                                               
next  committee  of  referral is  the  House  Judiciary  Standing                                                               
Committee.   However, if paragraph  (19) is deleted,  no referral                                                               
to House Judiciary  Standing Committee is necessary  and it could                                                               
be forwarded  to the  House Finance  Committee.   He acknowledged                                                               
that the administration says paragraph  (19) needs to be included                                                               
in the legislation.                                                                                                             
                                                                                                                                
1:15:13 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON noted  his agreement that with  the inclusion of                                                               
paragraph (19)  a House Judiciary Standing  Committee referral is                                                               
necessary.                                                                                                                      
                                                                                                                                
1:15:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON related  that  in  conversations with  the                                                               
administration he has come to  understand that it's uncomfortable                                                               
with the  language of  paragraph (19).   Therefore,  he expressed                                                               
the  need  for  some  better  definitions  if  the  will  of  the                                                               
committee is to "do something retroactively."                                                                                   
                                                                                                                                
1:16:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GUTTENBERG pointed  out  that  HB 128  originally                                                               
included  paragraph (19)  and didn't  receive  a House  Judiciary                                                               
Standing  Committee  referral.    He opined  that  if  the  House                                                               
Finance  Committee, the  next committee  of referral,  believes a                                                               
House Judiciary Standing Committee  referral is appropriate, then                                                               
it can be  referred to that committee at that  point.  He related                                                               
his desire to leave the legislation on its current path.                                                                        
                                                                                                                                
1:17:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAWASAKI   clarified  that  paragraph   (19)  was                                                               
changed a  lot in  the House  Special Committee  on Oil  and Gas.                                                               
Therefore,  he opined  that  a referral  to  the House  Judiciary                                                               
Standing  Committee is  probably  appropriate  if paragraph  (19)                                                               
remains.                                                                                                                        
                                                                                                                                
1:17:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  moved that the committee  delete paragraph                                                               
(19) on page 3, lines 19-23.                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON objected.                                                                                                      
                                                                                                                                
REPRESENTATIVE  GUTTENBERG stated  a  point of  order.   He  then                                                               
related  his understanding  that in  order to  take action  on HB                                                               
128, the  committee would need  to vote to bring  the legislation                                                               
back before it.                                                                                                                 
                                                                                                                                
1:18:16 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO related his understanding  that when the motion to                                                               
report legislation from committee  fails, the legislation remains                                                               
with the chair.                                                                                                                 
                                                                                                                                
1:18:37 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO moved  to bring HB 128 back  before the committee.                                                               
There  being  no objection,  HB  128  was before  the  committee.                                                               
[Representative Seaton's earlier motion  to delete paragraph (19)                                                               
was treated as withdrawn.]                                                                                                      
                                                                                                                                
1:19:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  moved that  the committee  adopt Amendment                                                               
6, as follows:                                                                                                                  
                                                                                                                                
     Page 3, lines 19-23 through page 4, line 2:                                                                                
          Delete all material                                                                                                   
                                                                                                                                
CO-CHAIR  JOHNSON  objected.    He  then  asked  if  there  is  a                                                               
representative from the administration  who could shed some light                                                               
as to why the administration  has some problems with the language                                                               
of paragraph (19).                                                                                                              
                                                                                                                                
1:20:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SEATON  related   his  understanding   that  the                                                               
commissioner  of  the  Department  of  Revenue  agrees  with  the                                                               
language  in  the   amendment  [labeled  25-LS0561\K.4,  Bullock,                                                               
5/3/07]  regarding  going  forward  with  regulations.    If  the                                                               
legislature wants  to go back  and try  to put in  standards, the                                                               
[department] needs  something for standards  if the desire  is to                                                               
go back  to 2006  and have  a standard  other than  the standards                                                               
included in the legislation.  He  said that paragraph (20) in the                                                               
amendment [labeled 25-LS0561\K.4,  Bullock, 5/3/07] doesn't cover                                                               
retroactively a standard lower than  gross negligence, other than                                                               
the other partners in the oil field rejecting the bill.                                                                         
                                                                                                                                
1:21:40 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO furthered  that  the [commissioner  of DOR]  said                                                               
that  he  couldn't write  regulations  without  the authority  in                                                               
statute to  write the regulations  that allow the refusal  of the                                                               
deduction that's submitted.                                                                                                     
                                                                                                                                
1:22:07 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOHNSON inquired  as to  the problems  the [department]                                                               
had with the language.                                                                                                          
                                                                                                                                
1:22:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON clarified that  the amendment the committee                                                               
adopted  was  the  statutory  portion  necessary  for  [creating]                                                               
regulations.  He further clarified  that the regulations wouldn't                                                               
be writing retroactive regulations,  but rather [the regulations]                                                               
would provide  a standard to  sue against.  [The  department] did                                                               
have problems, he  related, with regard to the  effect this might                                                               
have throughout  the current  language on  the incentives  in the                                                               
petroleum production profits tax (PPT).                                                                                         
                                                                                                                                
1:23:17 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO reminded the committee  that the amendment labeled                                                               
25-LS0561\K.4, Bullock, 5/3/07,  has been adopted and  will be in                                                               
the forthcoming committee substitute (CS).                                                                                      
                                                                                                                                
1:23:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GUTTENBERG  related  his understanding  that  the                                                               
retroactivity  remains,  although  it  looks  different  than  in                                                               
previous legislation.                                                                                                           
                                                                                                                                
REPRESENTATIVE SEATON related his agreement.   He the pointed out                                                               
that  two applicability  subsections were  necessary because  the                                                               
regulation  section would  begin  at the  effective  date of  the                                                               
regulations,  which  is  different   than  the  March  31,  2006,                                                               
effective date in paragraph (19).                                                                                               
                                                                                                                                
1:25:06 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO,   referring  to  paragraph  (19),   related  his                                                               
understanding that  there was a reduction  in corrosion inhibitor                                                               
as a  way to  save money.   Although it saved  money in  2006, it                                                               
cost  money  in 2007.    The  aforementioned  is the  reason  for                                                               
allowing  the commissioner  to go  back  and say  that the  state                                                               
doesn't want to pay for expenses related to negligence.                                                                         
                                                                                                                                
1:26:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES,   referring  to  paragraph  (20)   in  the                                                               
amendment  labeled  25-LS0561\K.4,  Bullock,  5/3/07],  asked  if                                                               
regulations  that  govern  how  the  producers  are  supposed  to                                                               
maintain oil  and gas  facilities, equipment,  and infrastructure                                                               
are currently in place.                                                                                                         
                                                                                                                                
1:27:22 PM                                                                                                                    
                                                                                                                                
KEVIN BANKS, Acting  Director, Central Office, Division  of Oil &                                                               
Gas, Department  of Natural Resources  (DNR), related  his belief                                                               
that  there  are regulations  that  govern  how DEC  reviews  the                                                               
facilities.   The intention was to  have a gap analysis  over the                                                               
next   several  months   in  order   to  determine   whether  new                                                               
regulations need  to be added.   There could also  be regulations                                                               
from  the  Department  of   Transportation  &  Public  Facilities                                                               
(DOT&PF) and other agencies.                                                                                                    
                                                                                                                                
1:27:49 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO  questioned then if  the legislation  is necessary                                                               
to  go back  and  deny maintenance  costs,  if their  regulations                                                               
exist.                                                                                                                          
                                                                                                                                
MR. BANKS explained  that the regulations DNR  would be reviewing                                                               
aren't  focused on  whether it  relates to  an exception  for the                                                               
Trans-Alaska  Pipeline  System  (TAPS).     The  intent  of  this                                                               
language seems  to address a  situation in which a  regulation in                                                               
place  that   addresses  maintenance   or  proper  care   of  the                                                               
facilities is  violated, then costs  related to that  are subject                                                               
to a disapproved allowance.   Mr. Banks opined that the amendment                                                               
is trying  to disallow those  costs incurred as a  consequence of                                                               
violating some regulation related to maintenance.                                                                               
                                                                                                                                
1:29:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES  surmised that paragraph (20)  captures most                                                               
of  what  is  specified  in  paragraph  (19),  and  therefore  he                                                               
questioned whether  paragraph (20) is  redundant.  He  then asked                                                               
if   the  deletion   of  paragraph   (19)  would   eliminate  the                                                               
redundancy.                                                                                                                     
                                                                                                                                
MR. BANKS  said that when  paragraph (19) was first  proposed, he                                                               
read it  as creating a  setting in  which DOR begins  to question                                                               
whether a cost is related  to improper maintenance and could then                                                               
turn to DNR for advice as to whether  that was true or not.  Then                                                               
language was developed to guide  that kind of advice.  Therefore,                                                               
it seems  that by including  [paragraph (20)], a  circumstance in                                                               
which  a regulatory  violation constitutes  an  improper cost  is                                                               
being selected.  Paragraph (20),  he opined, seems to be slightly                                                               
more specific than paragraph (19).                                                                                              
                                                                                                                                
1:31:59 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO  related his  understanding from  the commissioner                                                               
that paragraph (19) allows [the retroactivity].                                                                                 
                                                                                                                                
1:32:13 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON  asked if yet  to be written regulations  can be                                                               
applied retroactively.                                                                                                          
                                                                                                                                
REPRESENTATIVE ROSES remarked that was his question.                                                                            
                                                                                                                                
1:32:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WILSON asked  if DNR  has regulations  that would                                                               
cover [what is referred to in paragraph (20)].                                                                                  
                                                                                                                                
MR. BANKS said  that he doesn't believe that DNR,  at the moment,                                                               
has articulated maintenance and  requirements in regulation.  The                                                               
department relies on the lease  contract and the general scope of                                                               
the lease stipulations to govern  whether activities conducted on                                                               
the lease  are appropriate.   [This legislation] seems  to expand                                                               
those concepts into a more regulatory framework.                                                                                
                                                                                                                                
1:34:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE    SEATON   related    his   understanding    from                                                               
conversations  with the  administration  that  going forward  the                                                               
amendment is vital.   Although the [department] can  go back now,                                                               
it would have to do so for  one of the existing standards:  gross                                                               
negligence, wilful  misconduct, or because the  partners rejected                                                               
the bill because it wasn't  performed as a prudent operator would                                                               
do.    He  related  his  further  understanding  that  the  lease                                                               
agreements  at Prudhoe  Bay include  clauses regarding  items for                                                               
which they don't  pay.  As of today, the  other partners have not                                                               
been billed  for the  BP spill,  shutdown, and  pipe replacement.                                                               
The purpose  of paragraph  (19) is to  have a  different standard                                                               
that's lower  than gross  negligence and will  only apply  if the                                                               
other  partners  accept  the  bills.    He  noted  that  improper                                                               
maintenance is  not necessarily the  negligence standard,  and in                                                               
fact it may be lower than that in  some cases.  "If you want them                                                               
to go  back and look at  a standard that's lower  than those that                                                               
are incorporated  in here ...  then [paragraph] (19)  is needed,"                                                               
Representative Seaton opined.                                                                                                   
                                                                                                                                
1:36:44 PM                                                                                                                    
                                                                                                                                
JONATHAN  IVERSEN,  Director,  Anchorage  Office,  Tax  Division,                                                               
Department  of  Revenue,  characterized  Representative  Seaton's                                                               
comments as  an accurate summary.   He  then said that  he didn't                                                               
know whether BP has billed  the aforementioned costs to the other                                                               
working  interest owners  in  the  unit or  if  any requests  for                                                               
payment have been  approved or denied.  Paragraph  (19) fills the                                                               
gap between  where gross  negligence stops  and the  costs denied                                                               
between the working interest owners, he opined.                                                                                 
                                                                                                                                
1:37:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES  asked if  the  state  has the  ability  to                                                               
exempt those  costs under  the gross  negligence definition.   If                                                               
the answer  is no  and the  desire is to  reduce the  standard to                                                               
simple  negligence, then  it's probably  important to  understand                                                               
the difference  between gross  negligence and  simple negligence.                                                               
Black's  Law Dictionary  specifies  that "gross  negligence is  a                                                             
lack of slight  diligence or care; a conscience  voluntary act or                                                               
omission  in  reckless disregard  of  a  legal  duty and  of  the                                                               
consequences  to   another  party   who  may   typically  recover                                                               
exemplary damages."   Representative Roses opined  that the gross                                                               
negligence standard isn't going to be that difficult to prove.                                                                  
                                                                                                                                
1:39:09 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO inquired  as to the definition of  the term "legal                                                               
duty."   He further  inquired as  to whether  the injection  of a                                                               
corrosion inhibitor is smart or a legal duty.                                                                                   
                                                                                                                                
1:39:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WILSON   opined  that  Alaska   statutes  include                                                               
definitions  for  gross  negligence  and  negligence,  which  she                                                               
surmised  would  be   followed  over  what  is   specified  in  a                                                               
dictionary.                                                                                                                     
                                                                                                                                
1:39:48 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO suggested  that  since  Representative Roses  was                                                               
reading   from  Black's   Law  Dictionary   that  would   be  the                                                             
[definition] to which to refer.                                                                                                 
                                                                                                                                
1:40:03 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOHNSON  remarked  that the  aforementioned  discussion                                                               
exemplifies why  HB 128  should receive a  referral to  the House                                                               
Judiciary Standing  Committee.  He  said that although  he agrees                                                               
that  [paragraph  (19)]  should  be  included,  it  needs  to  be                                                               
appropriate language  and language with which  the administration                                                               
can "live with."                                                                                                                
                                                                                                                                
1:41:12 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON maintained his objection.                                                                                      
                                                                                                                                
1:42:43 PM                                                                                                                    
                                                                                                                                
A roll call  vote was taken.  Representatives  Wilson, Roses, and                                                               
Seaton  voted   in  favor  of   the  adoption  of   Amendment  6.                                                               
Representatives Edgmon, Kawasaki,  Guttenberg, Johnson, and Gatto                                                               
voted against  it.  Therefore,  Amendment 6 failed to  be adopted                                                               
by a vote of 3-5.                                                                                                               
                                                                                                                                
1:43:52 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO informed the committee  that the next committee of                                                               
referral for HB 128 is the  House Finance Committee.  He reminded                                                               
the  committee  that   on  a  previous  motion   to  report  this                                                               
legislation  from committee,  it failed  on a  4-4 vote.   Unless                                                               
someone is willing to change  from that previous vote, the result                                                               
is unlikely  to change.  Therefore,  he said, "So what  I'm going                                                               
to do is  say, 'Let it go  to Judiciary; I hope  that will change                                                               
one vote.'"                                                                                                                     
                                                                                                                                
1:44:21 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOHNSON interjected  that he  believes HB  128 is  good                                                               
legislation that needs to pass [out  of this committee] and go to                                                               
the House Judiciary Standing Committee.                                                                                         
                                                                                                                                
1:44:29 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON moved  to report CSHB 128(O&G),  as amended, out                                                               
of   committee   with    individual   recommendations   and   the                                                               
accompanying fiscal  notes as well  as a recommendation  that the                                                               
legislation receive  a referral  to the House  Judiciary Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
1:45:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GUTTENBERG  suggested  dividing the  motion  such                                                               
that there  is a  motion to report  CSHB 128(O&G)  from committee                                                               
and  a  second motion  to  refer  the  legislation to  the  House                                                               
Judiciary Standing Committee.                                                                                                   
                                                                                                                                
1:45:43 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON moved to rescind his prior motion.                                                                             
                                                                                                                                
1:45:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON opined  that if the question  is divided as                                                               
stated,  then   whether  there's   a  House   Judiciary  Standing                                                               
Committee  referral will  influence  whether  the legislation  is                                                               
reported from committee.  Therefore,  he suggested first taking a                                                               
vote as  to whether the  committee wants to recommend  a referral                                                               
to the House Judiciary Standing Committee.                                                                                      
                                                                                                                                
1:46:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GUTTENBERG  noted that  although everyone  has the                                                               
ability to go to the  speaker and offer recommendations regarding                                                               
referrals,   the   speaker   isn't   required   to   follow   the                                                               
recommendations.                                                                                                                
                                                                                                                                
CO-CHAIR GATTO  related that he  would take the message  from the                                                               
committee to the speaker.                                                                                                       
                                                                                                                                
1:47:17 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON  moved that  the committee take  a sense  of the                                                               
body  as to  whether the  committee would  recommend that  HB 128                                                               
receive a House Judiciary Standing Committee.                                                                                   
                                                                                                                                
CO-CHAIR GATTO objected.                                                                                                        
                                                                                                                                
1:47:57 PM                                                                                                                    
                                                                                                                                
A  roll call  vote  was taken.    Representatives Seaton,  Roses,                                                               
Edgmon, Kawasaki,  Wilson, Gatto, and  Johnson voted in  favor of                                                               
recommending  that HB  128  be referred  to  the House  Judiciary                                                               
Standing Committee.  Representative  Guttenberg voted against it.                                                               
Therefore,  the  sense  of the  committee  regarding  whether  to                                                               
recommend  that  HB  128  receive   a  House  Judiciary  Standing                                                               
Committee passed by a vote of 7-1.                                                                                              
                                                                                                                                
1:48:51 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON moved  to report CSHB 128(O&G),  as amended, out                                                               
of   committee   with    individual   recommendations   and   the                                                               
accompanying fiscal notes.                                                                                                      
                                                                                                                                
REPRESENTATIVE SEATON objected.  He  then clarified that he isn't                                                               
opposed to having  a standard, but he expressed  concern that the                                                               
standard in paragraph (19) inserts  uncertainty and risk into the                                                               
PPT and  could result  in not sanctioning  projects in  Alaska by                                                               
the oil companies.  He then removed his objection.                                                                              
                                                                                                                                
 1:50:10 PM                                                                                                                   
                                                                                                                                
There  being no  further  objection, CSHB  128(RES) was  reported                                                               
from the House Resources Standing Committee.                                                                                    
                                                                                                                                

Document Name Date/Time Subjects