01/25/1994 03:45 PM Senate O&G

 SENATOR LEMAN called the Special Committee on Oil and Gas work                
 session to order at 3:45 p.m. and announced  SB 150  (OIL & GAS               
 EXPLORATION LICENSES/LEASES) to be up for consideration.  He                  
 said the bill was not formally in the committee, but they                     
 wanted to work on the amendments to where they would feel                     
 comfortable with taking action on the floor of the Senate.                    
                                                                               
 SENATOR SALO asked on page 3, lines 12 - 14, if deleting this                 
 language doesn't release the exploration company from starting                
 exploration.  SENATOR LEMAN said it was his intent for the                    
 explorers to have a plan and to follow it.  Each year the                     
 bonding for the work commitment will change.  The proposed                    
 language accomplishes the proposed change in the bonding                      
 requirements.                                                                 
                                                                               
 CLIFF BERGLIN, Fairbanks, opposed SB 150.  He said he would                   
 send written comments to the Committee.                                       
                                                                               
 He said the people who have been meeting on this bill for the                 
 last 2 years are the who's who of the world's oil companies.                  
 Therefore, it can't be in the best interest of the people of                  
 the State of Alaska.  He also asked what would happen to the                  
 mental health issue and to surface rights.                                    
                                                                               
 Number 308                                                                    
                                                                               
 SENATOR SHARP asked what was the size of the standard lease                   
 under competitive bid?                                                        
                                                                               
 KEN BOYD, Anchorage, answered the maximum size of the lease                   
 is 5,760 acres (3 miles square).  Leases vary in size, because                
 of the shape of land ownership.                                               
                                                                               
 SENATOR SHARP said he couldn't understand why they raised the                 
 minimum to 20,000 acres.  He asked when a license is converted                
 to a lease at the end of the explorat ion process, would it                   
 be convertible to 5,760 acre leases.  MR. BOYD said that is                   
 correct.  He explained that the leased acres have to be                       
 contiguous according to law.                                                  
                                                                               
 Number 344                                                                    
                                                                               
 SENATOR SALO asked who decided what land is to be                             
 relinquished.  MR. BOYD explained that the Commissioner would                 
 decide if the company didn't.