Legislature(1995 - 1996)
01/24/1995 10:06 AM 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, 1995 10:06 a.m. MEMBERS PRESENT Representative Norman Rokeberg, Chairman Representative Scott Ogan, Vice Chairman Representative Bill Williams Representative Gary Davis Representative Tom Brice Representative Bettye Davis Representative David Finkelstein MEMBERS ABSENT None COMMITTEE CALENDAR *HJR 13:Endorsing, in principle, legislation authorizing oil and gas leasing, exploration, and development on the coastal plain within the Arctic National Wildlife Refuge, provided the legislation does not contain a provision decreasing this state's royalty. PASSED OUT OF COMMITTEE (* First public hearing) WITNESS REGISTER REPRESENTATIVE MIKE NAVARRE Alaska State Legislature State Capital, Room 521 Juneau, Alaska 99801 Telephone: (907) 465-3779 POSITION STATEMENT: Provided sponsor statement for HJR 13 GEORGE AHMAOGAK, Mayor North Slope Borough P.O. Box 69 Barrow, Alaska 99723 Telephone: (907) 852-0200 POSITION STATEMENT: Testified in support HJR 13 WARREN MATUMEAK, SR., Director North Slope Borough Wildlife Management P.O. Box 69 Barrow, Alaska 99723 Telephone: (907) 852-0350 POSITION STATEMENT: Urged passage of HJR13 DEBBIE REINWAND Arctic Power 3730 W. 64th Anchorage, Alaska 99503 Telephone: (907) 563-2697 POSITION STATEMENT: Testified in support of HJR 13 BEVERLY WARD, Director Government Relations ARCO Alaska Inc. 134 N. Franklin Juneau, Alaska 99801 Telephone: (907) 586-3680 POSITION STATEMENT: Testified in support of HJR 13 JERRY WEAVER, Board Member Arctic Power 301 W. Northern Lights Blvd. Anchorage, Alaska 99510 Telephone: (907) 265-2920 POSITION STATEMENT: Strongly urged passage of HJR 13 CINDY SCHEBLER Arctic Power 301 W. Northern Lights Blvd. Anchorage, Alaska 99510 Telephone: (907) 265-2920 POSITION STATEMENT: Strongly urged passage of HJR 13. CHUCK SULLIVAN The Alliance P.O.Box 112070 Anchorage, Alaska 99511 Telephone: (907) 349-1591 POSITION STATEMENT: Testified in support of HJR 13 ERIC DOPPLING The Alliance 4653 Becharof St. Anchorage, Alaska 99507 Telephone: (907) 349- 6518 POSITION STATEMENT: Testified in support of HJR 13 MATHEW FAGNANI Arctic Power 611 E. 12th St. Anchorage, Alaska 99501 Telephone: (907) 274-6662 POSITION STATEMENT: Urged passage of HJR 13 BECKY GAY Resource Development Council 121 W. Fireweed Lane, Suite 250 Anchorage, Alaska 99503 Telephone: (907) 276-0700 POSITION STATEMENT: Urged passage of HJR 13 MANO FREY, President AFL-CIO 2501 Commercial Drive Anchorage, AK 99501 Telephone: (907) 272-4571 POSITION STATEMENT: Statement of support for HJR 13 FRANK J. DILLON Alaska Trucking Association 3443 Minnesota Dr. Anchorage, Alaska 99501 Telephone: (907) 276-1149 POSITION STATEMENT: Urged passage of HJR 13 KEITH BURKE The Alliance 4220 B Street Anchorage, Alaska 99503 Telephone: (907) 563-2226 POSITION STATEMENT: Strongly urged passage of HJR 13 PAUL HUGO, Mayor City of Anaktuvuk Pass General Delivery Anaktuvuk, Alaska 99721 POSITION STATEMENT: Strongly supported HJR 13 REPRESENTATIVE EILEEN MACLEAN Alaska State Legislature State Capitol Room 405 Juneau, Alaska 99801 Telephone: (907) 465-4833 POSITION STATEMENT: Voiced opposition to Amendment 1 for HJR 13 REPRESENTATIVE JOE GREEN Alaska State Legislature State Capital, Room 24 Juneau, Alaska 99801 Telephone: (907) 465-4931 POSITION STATEMENT: Statement of support for HJR 13 PREVIOUS ACTION BILL: HJR 13 SHORT TITLE: ENDORSING ANWR LEASING SPONSOR(S): REPRESENTATIVE(S) NAVARRE, Rokeberg, Grussendorf, Brown, Davies, Kubina, MacLean JRN-DATE JRN-PG ACTION 01/16/95 19 (H) READ THE FIRST TIME - REFERRAL(S) 01/16/95 19 (H) O&G, RES, FIN 01/18/95 74 (H) COSPONSOR(S): DAVIES 01/19/95 87 (H) COSPONSOR(S): KUBINA 01/19/95 87 (H) COSPONSOR(S): MACLEAN 01/24/95 (H) O&G AT 10:00 AM CAPITOL 124 ACTION NARRATIVE TAPE 95-01, SIDE A Number 000 The House Special Committee on Oil and Gas was called to order by Chairman Norman Rokeberg at 10:06 a.m. Members present at the call to order were Representatives Rokeberg, B. Davis, G. Davis, Williams, Ogan, and Brice. Members absent were Representative(s) Finkelstein. CHAIRMAN NORMAN ROKEBERG announced that there was a quorum present. He announced that the meeting is on teleconference with Anchorage, Barrow, Homer, Valdez, Atqasuk, and Anaktuvuk Pass. Number 012 HO&G - 01/24/95 HJR 13 - ENDORSING ANWR LEASING CHAIRMAN ROKEBERG declared that a committee substitute (CS) has been prepared. He asked if Representative Williams would move the committee substitute. REPRESENTATIVE BILL WILLIAMS moved to adopt the CS. CHAIRMAN ROKEBERG asked if there was an objection. REPRESENTATIVE TOM BRICE objected for the purpose of a brief discussion. Number 045 REPRESENTATIVE BRICE asked if the sponsor would discuss the fact that there was no clause in the Resolution concerning the 90/10 royalty split. Number 057 REPRESENTATIVE DAVID FINKELSTEIN joined the committee at 10:08 a.m. CHAIRMAN ROKEBERG declared that the committee substitute was before the committee for discussion. Number 073 REPRESENTATIVE MIKE NAVARRE, sponsor of HJR 13, commented on the results of the National elections, the will of the people and stressed the importance of acting on HJR 13. Representative Navarre explained that technology is available to safely develop the Arctic National Wildlife Refuge (ANWR). Representative Navarre also commented on the unique position that Alaska will be in because of the prominence of our state's congressional delegation. Representative Navarre also stated he was concerned about the fact that there is a growing dependence on imported oil. For the first time, the United States used more imported than domestic oil. Representative Navarre stated it would be more beneficial, at this point to leave any reference about the 90/10 split out of this resolution that asks for consideration at the national level, and that a new resolution could be drafted for that purpose. Number 143 REPRESENTATIVE NAVARRE addressed the issue of environmental protection and stated that development would not affect the Porcupine caribou herd, or their habitat. Number 164 CHAIRMAN ROKEBERG thanked Representative Navarre for his comments, and called for questions. Number 174 CHAIRMAN ROKEBERG called upon the participants in Barrow who were waiting to join in the discussion via teleconference. Number 183 GEORGE AHMAOGAK, Mayor, North Slope Borough, joined the discussion via teleconference from Barrow. He stated that the ANWR is under the jurisdiction of the North Slope Borough, and the people of the North Slope strongly support development. Mayor Ahmaogak then commented on the history of oil production on the North Slope, and stated that oil production on the North Slope has been declining for years. Number 230 MAYOR AHMAOGAK stated the benefits of opening ANWR. They included Jobs, Transportation, Education, Medical Care, and Police protection. The people of the North Slope need these programs, and the opening of ANWR would guarantee that the people of the North Slope would be secure. Number 254 WARREN MATUMEAK, SR., Director, Wildlife Management, North Slope Borough, urged the members to vote in favor of CSHJR 13. Number 293 CHAIRMAN ROKEBERG asked Mr. Matumeak about the scope of hunting that occurs in ANWR coastal area 1002, and asked if any caribou were hunted. Mr. Matumeak responded that the caribou are hunted as part of the subsistence lifestyle of the people. Number 320 DEBBIE REINWAND, representing Arctic Power, strongly urged the members to vote in favor of HJR 13. She stated that Arctic Power was specifically formed to advocate oil and gas exploration and development. She stated it would be of great benefit not only to the state of Alaska, but to the entire United States to open the coastal plain of the Arctic National Wildlife Refuge. Ms. Reinwand then stated that our dependance of foreign oil has grown and for this reason the development of ANWR becomes even more crucial. Number 350 BEVERLY WARD, Director, Government Relations, ARCO Alaska, stated that ARCO is convinced ANWR can be explored without danger to the local wildlife. She also stated that ARCO's experience in operating oil fields in the Arctic has provided the company with a thorough understanding of the arctic environment. Ms. Ward said that the opening of ANWR will benefit the entire United States, not just Alaska. Number 382 JERRY WEAVER, Board Member, Arctic Power, strongly seconded the previous comments, especially those that were made by Representative Navarre and all of the expert witnesses from around the state. Number 395 CINDY SCHEBLER of Arctic Power, urged a "yes" vote on HJR 13. She also mentioned that the development of the coastal plain will bring many jobs to the nation as a whole, not just to the state of Alaska. Number 424 CHUCK SULLIVAN, representing The Alliance, spoke in support of HJR 13 stressing state and National security. He then mentioned the development of our resources is essential to the long term health of the economy of our state. Number 458 ERIC DOPPLING, representing The Alliance, commented that he supported the opening of ANWR and thanked the committee for their efforts. Number 467 MATTHEW FAGNANI, Arctic Power, spoke in support of opening ANWR in area 1002, and stressed its importance. Number 486 BECKY GAY representing the Resource Development Council, urged a rapid vote in favor of HJR 13 while stressing Alaska's technology and willingness to urge safety. Number 510 MANO FREY, President of the Alaska AFL-CIO, spoke in support of opening ANWR, and stated that HJR 13 will help bring about the opening of ANWR. Number 547 FRANK DILLON, Alaska Trucking Association, stated we need to educate other people about Alaska's excellent environmental record and urged passage of HJR 13. Number 547 KEITH BURKE, The Alliance, stated that support for Alaska's oil and gas industry is essential. He commented that America is now using more foreign oil than domestic. Mr. Burke urged rapid passage of HJR 13. Number 590 CHAIRMAN ROKEBERG asked for other communities involved in the teleconference to join in the discussion. Number 600 PAUL HUGO, Mayor, City of Anaktuvuk Pass, supported HJR 13 provisionally. The provisions are that no land may leased to parties other than companies using the land for oil and gas production. Number 620 CHAIRMAN ROKEBERG called for other witnesses from around the state, there being none, the Chair asked for witnesses from the committee room in Juneau. There being none, the Chair closed public testimony and asked for further discussion by the committee. Number 630 REPRESENTATIVE BRICE observed that there was no discussion of the 90/10 split to ensure the state's rights, and proposed an amendment on page 3, line 2, of the resolution by deleting the word "and," and by adding at the end of line 2, "and protect the integrity of the Alaska Statehood Act." Number 653 CHAIRMAN ROKEBERG stated he had discussed that issue with Alaska's congressional delegation and had decided to delete it. He then stated he did appreciate the point that Representative Brice was trying to make. Number 655 REPRESENTATIVE BRICE asked of the nature of that discussion, and stated that Alaska must maintain its position on the 90/10 royalty split. Number 678 REPRESENTATIVE EILEEN MACLEAN, Alaska State Legislature, voiced her opposition to Representative Brice's amendment. Number 696 CHAIRMAN ROKEBERG stated he had some difficulty with this decision. Number 700 REPRESENTATIVE FINKELSTEIN spoke of the flexibility of the amendment. Number 726 REPRESENTATIVE BRICE suggested that the members of Alaska's congressional delegation run for state House if they want to interfere in state government. Number 748 REPRESENTATIVE B. DAVIS stated this was an uphill battle for Alaska, and urged Representative Brice to withdraw his motion. Number 784 CHAIRMAN ROKEBERG called for a roll call vote on Representative Brice's amendment. Representatives Brice and Finkelstein voted in favor of the amendment. Representatives Rokeberg, Ogan, G. Davis, B. Davis and Williams voted against the amendment. So the amendment failed. Number 800 REPRESENTATIVE B. DAVIS commented there was no second to the motion. Number 820 REPRESENTATIVE FINKELSTEIN spoke of the absence of references to the Porcupine caribou herd in HJR 13, and proposed an amendment to Page 3, Line 1 of the resolution by inserting "FURTHER RESOLVED that the Congress join with the state in providing strict standards for protection of land, water, and wildlife resources, including the habitat of the Porcupine caribou herd, during the exploration and development of the coastal plain of the Arctic National Wildlife Refuge; and be it". Representative B. Davis asked Representative Finkelstein if he would remove the word "strict." Representative Finkelstein refused. Number 850 REPRESENTATIVE JOE GREEN, Alaska State Legislature, spoke on the Kaparuk River caribou herd and the co-existence of oil companies and the caribou. Number 890 REPRESENTATIVE BRICE asked if this amendment was redundant. Number 943 REPRESENTATIVE FINKELSTEIN stated this issue is very broad and would take long periods of time to reach a decision that would be fair to the people and the state. Number 965 REPRESENTATIVE OGAN stated that the caribou herds have not been negatively affected. Number 985 CHAIRMAN ROKEBERG said he believed that the issue has been adequately covered and asked for any further discussion. Hearing none, the Chair called for a vote on Representative Finkelstein's amendment. Number 992 Representative Finkelstein voted in favor of the amendment. Representatives Rokeberg, Ogan, B. Davis, G.Davis Brice, and Williams voted against the amendment. CHAIRMAN ROKEBERG declared that the motion had been defeated. Number 1007 CHAIRMAN ROKEBERG asked if there was an objection to moving the resolution out of committee. Hearing no objection, CSHJR 13(O&G) was moved with individual recommendations. ADJOURNMENT The committee then adjourned at 11:07 a.m.