Legislature(1993 - 1994)
03/21/1994 05:00 PM House O&G
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
HOUSE SPECIAL COMMITTEE ON OIL & GAS
March 21, 1994
5:00 p.m.
MEMBERS PRESENT
Representative Joe Green, Chairman
Representative Pete Kott
Representative Gary Davis
Representative Jerry Sanders
Representative Harley Olberg
Representative Joe Sitton
MEMBERS ABSENT
Representative Jerry Mackie
COMMITTEE CALENDAR
SB 322: "An Act repealing the requirement that an oil and
gas lease sale be held during the calendar quarter
for which scheduled under the leasing program and
repealing related allowable delays for certain oil
and gas lease sales under the Alaska Land Act; and
providing for an effective date."
MOVED CSSB 322(FIN) OUT OF COMMITTEE WITH
INDIVIDUAL RECOMMENDATIONS
WITNESS REGISTER
JERRY GALLAGHER, Director
Division of Mining
Department of Natural Resources
3601 C Street
Suite 880
Anchorage, Alaska 99510
POSITION STATEMENT: Department of Natural Resources
supports SB 322
PREVIOUS ACTION
BILL: SB 322
SHORT TITLE: DELAYS OF OIL AND GAS LEASE SALES
SPONSOR(S): RESOURCES
JRN-DATE JRN-PG ACTION
02/14/94 2832 (S) READ THE FIRST TIME/REFERRAL(S)
02/14/94 2832 (S) RES, FIN
02/22/94 (S) RES AT 12:00 PM BUTRVICH RM 205
02/22/94 (S) RES AT 3:00 PM BUTROVICH RM 205
02/23/94 2944 (S) RES RPT 3DP 1NR
02/23/94 2944 (S) ZERO FISCAL NOTE PUBLISHED
(DNR)
02/23/94 (S) RES AT 3:30 PM BUTROVICH RM 205
02/23/94 (S) MINUTE(RES)
02/24/94 (S) FIN AT 9:00 AM SENATE FIN 518
02/28/94 2989 (S) FIN RPT CS 5DP NEW TITLE
02/28/94 2990 (S) PREVIOUS ZERO FN APPLIES TO CS
(DNR)
02/28/94 (S) FIN AT 9:00 AM SENATE FIN 518
02/28/94 (S) MINUTE(FIN)
03/01/94 (S) RLS AT 1:00 PM FAHRENKAMP
RM 203
03/01/94 (S) MINUTE(RLS)
03/09/94 3105 (S) RULES RPT 4CAL 1NR 3/9/94
03/09/94 3118 (S) READ THE SECOND TIME
03/09/94 3118 (S) FIN CS ADOPTED UNAN CONSENT
03/09/94 3124 (S) AM NO 1 MOVED BY LITTLE
03/09/94 3125 (S) AM NO 1 FAILED Y9 N11
03/09/94 3125 (S) ADVANCE TO 3RD READING FLD Y11
N9
03/09/94 3125 (S) THIRD READING 3/10 CALENDAR
03/10/94 3152 (S) READ THE THIRD TIME
CSSB 322(FIN)
03/10/94 3152 (S) PASSED Y18 N- E2
03/10/94 3153 (S) EFFECTIVE DATE SAME AS PASSAGE
03/10/94 3153 (S) Lincoln NOTICE OF
RECONSIDERATION
03/14/94 3197 (S) RECON TAKEN UP - IN THIRD
READING
03/14/94 3197 (S) HELD ON RECONSIDERATION TO
3/15/94
03/15/94 3217 (S) PASSED ON RECONSIDERATION Y18
N- E1 A1
03/15/94 3218 (S) EFFECTIVE DATE SAME AS PASSAGE
03/15/94 3227 (S) TRANSMITTED TO (H)
03/16/94 2825 (H) READ THE FIRST TIME/REFERRAL(S)
03/16/94 2825 (H) OIL & GAS, JUDICIARY
03/21/94 (H) O&G AT 05:00 PM CAPITOL 124
ACTION NARRATIVE
TAPE 94-12, SIDE A
Number 002
CHAIRMAN GREEN called the meeting to order at 5:05 p.m.
SB 322 - DELAYS OF OIL AND GAS LEASE SALES
Number 009
JERRY GALLAGHER, DIRECTOR, DIVISION OF MINING, DEPARTMENT OF
NATURAL RESOURCES (DNR), stated CSSB 322 has exactly the
same language as HB 515 with regard to the sections that set
out to amend Title 38. He referred to AS 38.05.180(c) and
said it currently requires oil and gas lease sales to be
listed on the five year oil and gas leasing calendar for two
years before the sale can be held. He said AS 38.05.180(c)
also requires the sale to be held within 90 days of the
quarter that it is scheduled. He stated that SB 322
eliminates the language that requires the sale to be held
within 90 days of the quarter it was scheduled. He said in
many oil and gas lease sales, the public asks for additional
time to comment. He stated DNR's ability to grant the
additional comment period is constrained by AS 38.05.180(c).
He stated if DNR goes over the 90 day limit then the sale
falls off the calendar and it has to go through the five
year calendar again. He said AS 38.05.180(c) limits DNR's
ability to allow additional public comment. He said in
those cases where lease sales are challenged in court, even
if the state prevails, if the sale is beyond the 90th day of
the quarter, the state would have to go through the process
over again. He said DNR believed that eliminating AS
38.05.180(c) caused DNR no harm and gave them greater
flexibility in dealing with the public and the courts. He
stated DNR supported SB 322.
Number 038
REPRESENTATIVE GARY DAVIS asked for the original intent of
AS 38.05.180(c).
Number 040
MR. GALLAGHER stated there was a concern in the late 1970s
that a DNR commissioner would unilaterally and arbitrarily
delay oil and gas lease sales. He said the intent of the
language was not to allow any delay in leasing. He assured
the committee that the scenario never existed and it was not
likely to happen in the future. He said public pressure
required a reasonable approach to oil and gas leasing. He
said AS 38.05.180(c) constrains DNR's ability to be flexible
for public comment and causes a lot of problems.
Number 053
REPRESENTATIVE JOE SITTON asked what would keep a DNR
commissioner from ignoring AS 38.05.180(c).
MR. GALLAGHER stated legally there would be nothing to
prevent the commissioner from ignoring AS 38.05.180(c). He
said in reality, for anyone who operates in the public
forum, the pressures from both sides generally push one to
the middle ground. He stated maintaining the state's oil
and gas lease program on an orderly schedule was something
that he was hopeful and confident that every commissioner
could do. He said he thought that the statute as written
does more harm than good.
Number 063
REPRESENTATIVE SITTON asked Mr. Gallagher if the legislature
should put into place a mechanism that would prevent a
commissioner from ignoring AS 38.05.180(c).
MR. GALLAGHER stated that delaying oil and gas lease sales
did not seem to be a problem from DNR's perspective.
Number 073
REPRESENTATIVE DAVIS moved CSSB 322(Fin) out of committee
with individual recommendations and accompanying fiscal
note.
Number 075
REPRESENTATIVE PETE KOTT concurred and said when the
legislature is able to repeal laws it is doing something
that the public will find acceptable.
ADJOURNMENT
Number 078
CHAIRMAN GREEN adjourned the meeting at 5:12 p.m.
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