Legislature(1995 - 1996)

01/24/1995 10:06 AM O&G

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
              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.                                    
                                                                               

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