Legislature(1993 - 1994)
01/24/1994 05:00 PM O&G
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
HOUSE SPECIAL COMMITTEE ON OIL & GAS January 24, 1994 5:00 p.m. MEMBERS PRESENT Representative Joe Green, Chairman Representative Pete Kott, Vice-Chairman Representative Harley Olberg Representative Gary Davis Representative Jerry Sanders (arrived at 5:03) Representative Joe Sitton MEMBERS ABSENT Representative Jerry Mackie COMMITTEE CALENDAR *HB 384 "An Act eliminating the temporary character of alternative procedures available to persons who must show evidence of financial responsibility before conducting noncrude oil operations; and providing for an effective date." PASSED OUT OF COMMITTEE WITH INDIVIDUAL RECOMMENDATIONS WITNESS REGISTER LARRY LABOLLE Aide to Representative Richard Foster Alaska State Legislature Capitol Building Room 420 Juneau, Alaska 99801-1182 Phone: (907) 465-3789 Position Statement: Legislative Aide to Prime Sponsor of HB 384 BILL SCHOEPHOESTER, Manager Planning & Projects Petro Marine Services 3111 "C" Street Suite 500 Anchorage, Alaska 99503 Phone: (907) 562-5000 Position Statement: In favor of HB 384 MICHAEL CONWAY, Director Division of Spill Prevention & Response Department of Environmental Conservation 410 Willoughby Suite 302 Juneau, Alaska 99801-1795 Phone: (907) 465-5250 Position Statement: In favor of HB 384 PREVIOUS ACTION BILL: HB 384 SHORT TITLE: FINANCIAL REQMTS: NONCRUDE OIL OPERATIONS SPONSOR(S): REPRESENTATIVE(S) FOSTER, Hoffman JRN-DATE JRN-PG ACTION 01/18/94 2098 (H) READ THE FIRST TIME/REFERRAL(S) 01/18/94 2098 (H) OIL & GAS, RESOURCES 01/24/94 (H) O&G AT 05:00 PM CAPITOL 124 ACTION NARRATIVE TAPE 94-01, Side A Number 002 CHAIRMAN JOE GREEN called the meeting to order at 5:02 p.m. Number 014 LARRY LaBOLLE, AIDE TO REP. RICHARD FOSTER, PRIME SPONSOR of HB 384, testified on his behalf. He referred to a sponsor statement which is on file. He stated the purpose of the bill is to remove the sunset clause from the existing legislation. Number 030 BILL SCHOEPHOESTER (via Anchorage) stated that he also represents the Association of Refined Oil Product Distributors; an association of the three major line holders that transport the line haul for the refined petroleum products in the state of Alaska. He stated that it made a lot of sense to repeal the temporary nature of the authorization the Department of Environmental Conservation (DEC) has to approve financial responsibility without direct access. He stated HB 384 made good sense to him and he would like to see it pass, because if the direct access situation is ever corrected, it would not require any action to change, because the DEC would not have to exercise it's authority. He also stated that he has been struggling with obtaining direct access insurance and has not had any success. Number 054 CHAIRMAN GREEN asked if there was anyone from the DEC who might wish to answer questions or make a statement regarding the fact that there is still an insurance problem. Number 057 MICHAEL CONWAY, DIRECTOR OF THE DEC'S DIVISION OF SPILL PREVENTION & RESPONSE, stated that the DEC supports continuing the waiver provision and making the waiver provision permanent. Without the provision, the DEC may have to shut down facilities which provide fuel throughout Alaska. The DEC is continuing to work with the insurance industry to make direct action coverage more readily available. He stated that there is a proposed product now under review by DEC and the Department of Law, that would serve as a rider for insurance coverage that does not offer direct action. He stated the DEC believes that the waiver provisions are strict enough (with a quarterly affidavit required and the department's ability to deny waivers) that the provision may be made a permanent part of the law. He said the DEC supports the House language as optimal. Number 069 CHAIRMAN GREEN asked Mr. Conway if HB 384 was passed out and became law, and if in a few years some insurance company or companies come forth and provide coverage, would the Division of Spill Prevention & Response be the primary office to bring that to the attention of the legislature? Number 074 MR. CONWAY stated that it would be very easy for the DEC to notify the legislature. The provision gives the DEC the flexibility to be able to move with whatever the industry is doing, but the DEC could provide the legislature with status reports at any time. Number 083 CHAIRMAN GREEN asked for the wish of the Committee. Number 084 REPRESENTATIVE GARY DAVIS moved that the Committee pass out HB 384 with individual recommendations. Number 086 REPRESENTATIVE KOTT seconded the motion. There were no objections. Number 090 CHAIRMAN GREEN adjourned the meeting at 5:13 p.m.