04/12/2000 06:11 PM Senate FIN

SENATE BILL NO. 257                                                                                                             
"An Act relating to notice requirements for certain                                                                             
final findings concerning the disposal of an interest                                                                           
in state land or resources for oil and gas; relating                                                                            
to administrative appeals and petitions for                                                                                     
reconsideration of decisions of the Department of                                                                               
Natural Resources; and providing for an effective                                                                               
date."                                                                                                                          
                                                                                                                                
                                                                                                                                
BOB LOEFFLER, Director, Division of Mining, Land and Water,                                                                     
Department of Natural Resources, explained the bill does                                                                        
two things, creates a uniform appeals process for the                                                                           
Department of Natural Resources and corrects a notice                                                                           
problem for the Division of Oil and Gas.                                                                                        
                                                                                                                                
Mr. Loeffler explained the problems that precipitated this                                                                      
bill. He stated that for a variety of reasons, different                                                                        
laws have been passed over several years, and because of                                                                        
the way they interact, there is a variety of appeals                                                                            
processes within the department. He noted that these                                                                            
different processes follow different schedules with 15 - 30                                                                     
days allowed to file an appeal. The different processes, he                                                                     
added require different channels and opportunities for                                                                          
appeals. He remarked that this causes confusion for the                                                                         
public and for department staff. He stated that this bill                                                                       
establishes there is only one appeal process, one appeal to                                                                     
the commissioner and the next appeal made in court.                                                                             
                                                                                                                                
Mr. Loeffler continued with the second problem relating to                                                                      
notices for lease sales stating that there are currently                                                                        
three notices. He detailed these notices. As a result, he                                                                       
said the public is confused and there is additional cost                                                                        
for publishing the multiple notices.                                                                                            
                                                                                                                                
Co-Chair Torgerson asked why this bill does not have a                                                                          
negative fiscal note.                                                                                                           
                                                                                                                                
Mr. Loeffler responded that the Division of Oil and Gas has                                                                     
a higher workload this year, and the intent is to use the                                                                       
small cost savings from this legislation to pay for the                                                                         
other operations. The savings anticipated by other                                                                              
divisions, he said are spread between many employees and                                                                        
would be difficult to identify. He stated that because the                                                                      
department had a $750,000 budget reduction, "we're just                                                                         
struggling to keep up."                                                                                                         
                                                                                                                                
Co-Chair Torgerson asked if the fiscal note therefore has                                                                       
nothing to do with the bill but rather with the                                                                                 
department's desire to save money to be spent elsewhere                                                                         
within the department.                                                                                                          
                                                                                                                                
Mr. Loeffler repeated that the savings would be difficult                                                                       
to calculate.                                                                                                                   
                                                                                                                                
Senator Leman asked how much the department spends annually                                                                     
on public notices.                                                                                                              
                                                                                                                                
Mr. Loeffler did not know the entire cost but knew that the                                                                     
intermediate notice is a few thousand dollars for each oil                                                                      
and gas lease sale. He noted that the department offers "a                                                                      
few" of these sales each year.                                                                                                  
                                                                                                                                
Senator Leman was interested in reducing costs and stated                                                                       
that if this bill could allow the department to save money,                                                                     
he supported it. He suggested a conceptual amendment to                                                                         
remove the appeals process from the bill and maintain only                                                                      
the public notice portion.                                                                                                      
                                                                                                                                
Co-Chair Torgerson wanted the amendment offered on the                                                                          
Senate floor.                                                                                                                   
                                                                                                                                
Co-Chair Parnell pointed out that the Committee has in its                                                                      
possession, another bill that contains this language.                                                                           
                                                                                                                                
Co-Chair Parnell offered a motion to report from Committee,                                                                     
SB 257, 1-GS2046.A with accompanying zero fiscal note from                                                                      
the Department of Natural Resources.                                                                                            
                                                                                                                                
Without objection, the bill MOVED from Committee.