Legislature(2007 - 2008)SENATE FINANCE 532
03/24/2007 01:00 PM House OIL & GAS
| Audio | Topic |
|---|---|
| Start | |
| SB104|| HB177 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 177 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
JOINT MEETING
SENATE RESOURCES STANDING COMMITTEE
HOUSE SPECIAL COMMITTEE ON OIL AND GAS
March 24, 2007
1:07 p.m.
MEMBERS PRESENT
SENATE RESOURCES
Senator Charlie Huggins, Chair
Senator Lyda Green
Senator Lesil McGuire
Senator Bill Wielechowski
Senator Thomas Wagoner
HOUSE OIL AND GAS
Representative Vic Kohring, Chair
Representative Ralph Samuels
Representative Mike Doogan
Representative Scott Kawasaki
MEMBERS ABSENT
SENATE RESOURCES
Senator Bert Stedman, Vice Chair
Senator Gary Stevens
HOUSE OIL AND GAS
Representative Kurt Olson, Vice Chair
Representative Nancy Dahlstrom
Representative Jay Ramras
OTHER LEGISLATORS PRESENT
Representative Ralph Samuels
Representative Harry Crawford
Representative Mark Neuman
COMMITTEE CALENDAR
SENATE BILL NO. 104
"An Act relating to the Alaska Gasline Inducement Act;
establishing the Alaska Gasline Inducement Act matching
contribution fund; providing for an Alaska Gasline Inducement
Act coordinator; making conforming amendments; and providing for
an effective date."
HEARD AND HELD
HOUSE BILL NO. 177
"An Act relating to the Alaska Gasline Inducement Act;
establishing the Alaska Gasline Inducement Act matching
contribution fund; providing for an Alaska Gasline Inducement
Act coordinator; making conforming amendments; and providing for
an effective date."
HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 104
SHORT TITLE: NATURAL GAS PIPELINE PROJECT
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
03/05/07 (S) READ THE FIRST TIME - REFERRALS
03/05/07 (S) RES, JUD, FIN
03/14/07 (S) RES AT 3:30 PM BUTROVICH 205
03/14/07 (S) Heard & Held
03/14/07 (S) MINUTE(RES)
03/16/07 (S) RES AT 3:30 PM BUTROVICH 205
03/16/07 (S) Heard & Held
03/16/07 (S) MINUTE(RES)
03/19/07 (S) RES AT 3:30 PM BUTROVICH 205
03/19/07 (S) Heard & Held
03/19/07 (S) MINUTE(RES)
03/21/07 (S) RES AT 3:30 PM SENATE FINANCE 532
03/21/07 (S) Heard & Held
03/21/07 (S) MINUTE(RES)
03/21/07 (S) RES AT 5:30 PM SENATE FINANCE 532
03/21/07 (S) Heard & Held
03/21/07 (S) MINUTE(RES)
03/22/07 (S) RES AT 4:15 PM FAHRENKAMP 203
03/22/07 (S) Heard & Held
03/22/07 (S) MINUTE(RES)
03/23/07 (S) RES AT 1:30 PM BUTROVICH 205
03/23/07 (S) Presentation: Industry Representatives
03/24/07 (S) RES AT 1:00 PM SENATE FINANCE 532
03/24/07 (S) RES AT 3:00 PM SENATE FINANCE 532
BILL: HB 177
SHORT TITLE: NATURAL GAS PIPELINE PROJECT
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
03/05/07 (H) READ THE FIRST TIME - REFERRALS
03/05/07 (H) O&G, RES, FIN
03/06/07 (H) O&G AT 3:00 PM BARNES 124
03/06/07 (H) -- MEETING CANCELED --
03/08/07 (H) O&G AT 3:00 PM BARNES 124
03/08/07 (H) -- MEETING CANCELED --
03/13/07 (H) O&G AT 3:30 PM HOUSE FINANCE 519
03/13/07 (H) Heard & Held
03/13/07 (H) MINUTE(O&G)
03/15/07 (H) O&G AT 3:00 PM BARNES 124
03/15/07 (H) Heard & Held
03/15/07 (H) MINUTE(O&G)
03/19/07 (H) O&G AT 8:30 AM CAPITOL 106
03/19/07 (H) Heard & Held
03/19/07 (H) MINUTE(O&G)
03/20/07 (H) O&G AT 3:00 PM BARNES 124
03/20/07 (H) Heard & Held
03/20/07 (H) MINUTE(O&G)
03/21/07 (H) O&G AT 5:30 PM SENATE FINANCE 532
03/21/07 (H) Heard & Held
03/21/07 (H) MINUTE(O&G)
03/22/07 (H) O&G AT 3:00 PM BARNES 124
03/22/07 (H) Heard & Held
03/22/07 (H) MINUTE(O&G)
03/23/07 (H) O&G AT 8:30 AM CAPITOL 106
03/23/07 (H) Heard & Held
03/23/07 (H) MINUTE(O&G)
03/24/07 (H) O&G AT 1:00 PM SENATE FINANCE 532
WITNESS REGISTER
Merrick Pierce
North Pole, AK
POSITION STATEMENT: Commented on SB 104 and HB 177
Jim Sykes
Palmer, AK
POSITION STATEMENT: Commented on SB 104 and HB 177
Zeb Woodman
Laborers Local 942
Fairbanks, AK
POSITION STATEMENT: Commented on SB 104 and HB 177
Jean Woods
Palmer, AK
POSITION STATEMENT: Commented on SB 104 and HB 177
Bob Morigeau, District 6 representative
International Union of Operating Engineers Local 302
Anchorage, AK
POSITION STATEMENT: Commented on SB 104 and HB 177
James Gengler
International Brotherhood of Electrical Workers Local 1547
Fairbanks, AK
POSITION STATEMENT: Commented on SB 104 and HB 177
Stephanie Thompson
International Brotherhood of Electrical Workers Local 1547
Anchorage, AK
POSITION STATEMENT: Commented on SB 104 and HB 177
Gary Johnson
International Brotherhood of Electrical Workers Local 1547
Fairbanks, AK
POSITION STATEMENT: Commented on SB 104 and HB 177
John Garrett
Sheetmetal Workers International Association Local 23
Anchorage, AK
POSITION STATEMENT: Commented on SB 104 and HB 177
Doug Buckley
International Brotherhood of Electrical Workers Local 1547
Fairbanks, AK
POSITION STATEMENT: Commented on SB 104 and HB 177
Mike Kenney
Anchorage, AK
POSITION STATEMENT: Commented on SB 104 and HB 177
Bill Warren
Nikiski, AK
POSITION STATEMENT: Commented on SB 104 and HB 177
Paul Kendall
Anchorage, AK
POSITION STATEMENT: Commented on SB 104 and HB 177
Dan Apted
Anchorage, AK
POSITION STATEMENT: Commented on SB 104 and HB 177
Jomo Stewart
Fairbanks, AK
POSITION STATEMENT: Commented on SB 104 and HB 177
Mike Notar, president
Juneau and Vicinity Building Trades Council
Juneau, AK
POSITION STATEMENT: Commented on SB 104 and HB 177
ACTION NARRATIVE
CHAIR CHARLIE HUGGINS called the joint meeting of the Senate
Resources Standing Committee and the House Special Committee on
Oil and Gas to order at 1:07:50 PM. Present at the call to order
were Senator Green, Senator McGuire, Senator Wielechowski,
Senator Wagoner, Chair Huggins, Representative Doogan,
Representative Kawasaki and Chair Kohring.
SB 104-NATURAL GAS PIPELINE PROJECT
HB 177-NATURAL GAS PIPELINE PROJECT
1:09:32 PM
CHAIR HUGGINS announced the committee would hear SB 104 and HB
177.
MERRICK PIERCE, representing himself, said that the producers'
legal departments are only dedicated to profit; their
purposefully filing frivolous lawsuits prevents competitors from
shipping gas. To reduce the threat of litigation the legislature
should evaluate whether the AGIA inducements could be optional.
Applicants may decide that they don't need the included
exemptions, and they'll be able to pick and choose their
inducements. Multi-national corporations don't want a level
playing field among applicants, and unless the legislature
amends the constitution it appears that big oil isn't interested
in a project.
He added that many people already feel distrust in the
legislators, particularly those involved with gas legislation.
The voters' overwhelming preference for Governor Palin and her
promises of transparency should be accounted for.
1:13:09 PM
JIM SYKES, representing himself, said that he likes the idea of
the bill; the state is on the right track at long last. However,
he is concerned about how the project will be evaluated. He
agreed that the tax rates and inducements should be flexible
rather than mandated. Exxon's wish for a 45-year term shouldn't
be in the cards. The first open season can be made successful by
leaving options open. Governor Hickel's historic actions with
oil companies are a good model; it is Alaska's gas and the state
has control.
He added that another concern of his is triple damages; the
issue needs closer examination.
1:19:11 PM
CHAIR HUGGINS noted that Representatives Crawford and Samuels
were present.
1:19:32 PM
ZEB WOODMAN, with the Laborers Local 942, said that he is
interested in including AGIA language for Alaskans being hired
for the project; time will be needed to train rural Alaskans for
the jobs, and consistency in wages and conditions is important
to level the playing field between union and non-union workers.
1:21:05 PM
JEAN WOODS, representing herself, said that there is no doubt of
the need for gas for in-state use. Her biggest concern is the
process for the choice of the contract winner by the
commissioners and legislature. She said that industry is taking
the risk in the project, and that politicians won't be re-
elected if things don't go well.
1:23:16 PM
BOB MORIGEAU, District 6 representative for International Union
of Operating Engineers Local 302, explained his suggestions for
the pipeline project labor agreement (PLA), including ensuring
local and minority hire, apprenticeships, training centers,
certain labor dispute procedures, and standardized working
conditions. Such a labor agreement will give local workers a
better chance of hire, unlike with the oil pipeline project.
1:26:30 PM
JAMES GENGLER, International Brotherhood of Electrical Workers
Local (IBEW) 1547, said that he teaches electrical workers and
advocates education for workers, and that union apprenticeship
programs ensure lower-cost apprenticeship availability and
successful, timely project completion.
He gave examples of PLAs for the oil pipeline and Fort Greeley
construction projects, and urged the negotiation of an
appropriate PLA of the gasline project.
1:30:12 PM
STEPHANIE THOMPSON, IBEW Local 1547, Anchorage, explained that
she is an apprentice who is receiving excellent training, and
supports a PLA for the pipeline project.
1:32:13 PM
GARY JOHNSON, IBEW Local 1547, talked about his work history and
said he agrees that apprenticeship programs are well structured
and offer opportunities and training to people all over the
state; it's important that a PLA be used in the pipeline
project. He is confident the legislature will do what is right
for Alaskans.
1:35:39 PM
JOHN GARRET, Sheetmetal Workers International Association Local
23, spoke in support of a project labor agreement and talked
about his organization's history in the state and its outreach
programs; it's looking forward to helping build the pipeline.
1:37:20 PM
DOUG BUCKLEY, IBEW Local 1547, talked about his organization's
history in the state and emphasized the necessity of a PLA for
the pipeline project.
1:38:32 PM
MIKE KENNEY, representing himself, said that he likes AGIA and
thinks it is important that the state's resource is developed by
a local team; big oil has other projects around the world. It's
better to keep the project as an all-Alaskan line than to depend
on Canada, and moving in a timely manner is of utmost
importance.
1:46:00 PM
BILL WARREN, representing himself, said that he hopes there will
be a project labor agreement like that for the Trans-Alaska
Pipeline. He was disappointed by the Exxon testimony the
previous day, and said he advocates immediate instate use and
supports AGIA.
1:48:19 PM
PAUL KENDALL, representing himself, said that leaders need to
maintain control of the project and correct contract defects. He
accused the oil company representatives of being hypnotists, and
said that there's a difference between being courted and being
surrounded. He offered to work for free on the project for 30
days, because it is his belief that Alaska ought to draw on its
own resources; he reiterated his distaste for the major
producers.
1:55:12 PM
DAN APTED, representing himself, said that he is against oil
companies enacting structure to lock in tax rates. The line will
happen if the economics are there but the legislature should
fund a state study of getting gas to market by alternative
means, by railroad for example; it would cost less and be useful
for other commodities. A "plan B" should be considered.
2:00:58 PM
JOMO STEWART, representing himself, said that goals determine
strategy, and AGIA contains a list of those; they're Alaskans'
attempt to define maximum benefit, which should account for
increasing the standard of living, advancing the economy, and
allowing free competition in the private enterprise system.
He asked the legislators to see the pipeline process for what it
is, and to look at history to see how this has been done in the
past. At this point in Alaskan history, it would behoove policy
makers to avoid placing too much money into the general fund.
CHAIR HUGGINS announced that there were no more testifiers at
the time, and that Conoco-Phillips testimony would be continued
later. He told a personal story, and then announced a brief at-
ease.
2:23:57 PM
CHAIR HUGGINS called the meeting back to order.
2:24:24 PM
MIKE NOTAR, President of the Juneau and Vicinity Building Trades
Council, related the history of PLAs in Juneau and said that
they have saved the town money and put money in the pockets of
taxpayers. The jobs done under PLAs have been under or close to
budget and have provided Juneau with the only legal method of
ensuring that firms hire local workers. Stipulating a PLA for
AGIA would be in the public interest.
2:27:36 PM
CHAIR KOHRING asked what a PLA is and how it would be a benefit
to the pipeline project.
MR. NOTAR replied that it is a contract between laborers and the
unions that provides certainty and predictability, and defines
conditions under which the work will be performed.
CHAIR KOHRING commented there are skilled labor pools in Alaska,
and thanked Chair Huggins for his cooperation on the
legislation.
CHAIR HUGGINS noted that Representative Neuman had joined the
meeting earlier, and, there being no further business to come
before the committee, he adjourned the meeting at 2:30:30 PM.
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