Legislature(2007 - 2008)BUTROVICH 205
03/22/2007 03:30 PM Senate JUDICIARY
| Audio | Topic |
|---|---|
| Start | |
| SB78 | |
| SCR3 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 48 | TELECONFERENCED | |
| *+ | SCR 3 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 78 | TELECONFERENCED | |
SCR 3-POINT THOMSON UNIT APPEAL
3:58:08 PM
CHAIR FRENCH announced the consideration of SCR 3.
SENATOR THERRIAULT, Sponsor of SCR 3, said he introduced the
resolution after it became apparent that the Pt. Thomson
legislation he initially introduced could be a detriment to the
state's cause. SCR 3 resolves that the legislature is
encouraging the governor and the attorney general to allocate
adequate resources and to expedite the court's consideration of
the appeal. He emphasized that the resolution isn't encouraging
a court fight. In fact, he said, to expedite could mean getting
to a settlement; he didn't believe that the administration had
necessarily ruled that out.
SENATOR THERRIAULT said when he reviewed the resolution with
Kevin Banks and the Department of Law he was asked to insert an
additional "whereas" phrase that provides an update of the
action state agencies have taken. He distributed the proposed
amendment.
In conclusion he said there is potential benefit in having the
legislature support the administration's efforts through the
fast track supplemental for the oil and gas issues that were
passed, but there's also benefit in making a policy statement in
support of the steps the administration has taken to get the Pt.
Thomson lease unit into production.
4:02:13 PM
ANNE JOHNSON, Assistant Attorney General, Civil Division, Oil,
Gas & Mining Section, Department of Law, explained that the
proposed amendment is a reference to three other proceedings
that are currently in progress. Two proceedings are in superior
court and they evolved from the unit terminations. One
proceeding is an agency appeal on the individual lease
terminations.
CHAIR FRENCH asked if the administrative appeals filed by
ExxonMobil Corporation, BP Exploration, Chevron U.S.A.,
ConocoPhillips Alaska, Inc., and Devon Energy Production
Company, L.P. that are listed in the proposed amendment show up
together or one at a time.
MS. JOHNSON said all the entities appealed individually, but the
same issues are at stake so it's possible that a single decision
will come out.
SENATOR WIELECHOWSKI asked if the governor and the attorney
general are allocating adequate resources for this matter.
MS. JOHNSON deferred to Mr. Banks.
4:04:29 PM
KEVIN BANKS, Acting Director, Division of Oil & Gas, Department
of Natural Resources, said the financial support is under the
fast track supplemental and the Department of Law has retained
outside counsel to work on the case.
SENATOR WIELECHOWSKI asked if the governor and the attorney
general are taking all steps necessary to expedite the court's
consideration of the appeal.
MR. BANKS said yes; no stone will go unturned in the effort to
achieve what is in the best interest of the state.
SENATOR WIELECHOWSKI commented, "It appears that we're already
doing everything that we're asking to be done in this
resolution."
SENATOR THERRIAULT responded that although he doesn't disagree,
he believes there is potential benefit in having the legislative
branch on record as fully supporting the administration's
efforts. He asked Ms. Johnson or Mr. Banks if they see any
potential downside to the legislature going on record as
described.
MS. JOHNSON said she could not see a downside. She continued to
say, "I would like to say the Department of Law appreciates the
Senate's concurrent resolution on Pt. Thomson and the
proceedings that are related to it. We appreciate the
legislature's funding of the proceedings; the law department
will continue to move ahead as expeditiously as possible to
hopefully attain a successful resolution.
4:07:23 PM
CHAIR FRENCH said he wrote down the word "resolution" when
Senator Therriault said this could lead to a settlement or it
could lead to a court decision, but the idea is to get this
wrapped up as fairly and as quickly as possible without giving
away the farm in exchange for speed. With that in mind he
suggested the committee consider a bit of wordsmithing on page
3, lines 19 and 20, to capture that idea. If the legislature is
truly telling the administration to expedite the court's
consideration that's one thing, but if it is telling it to
expedite the process to resolve the ownership of the Pt. Thomson
leases that is a slightly different and broader charge than he
believes Senator Therriault is intending. I tend to support him,
he said, because at some point there may be a decision that it's
time to wrap it up because it's not possible to build and fill a
gas line without Pt. Thomson gas.
SENATOR THERRIAULT suggested the committee insert something
similar to "or facilitate the settlement" after the appeal
reference.
CHAIR FRENCH asked Ms. Johnson to comment.
MS. JOHNSON suggested inserting, "or facilitate a successful
resolution to the Pt Thompson unit and lease dispute".
CHAIR FRENCH, with stated agreement from the sponsor, held SCR 3
in committee to allow time to prepare a committee substitute.
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