Legislature(1997 - 1998)

03/24/1998 05:06 PM O&G

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
       HOUSE SPECIAL COMMITTEE ON OIL AND GAS                                  
                   March 24, 1998                                              
                      5:06 p.m                                                 
                                                                               
                                                                               
MEMBERS PRESENT                                                                
                                                                               
Representative Scott Ogan                                                      
Representative Norman Rokeberg                                                 
Representative Joe Ryan                                                        
Representative Con Bunde                                                       
Representative Tom Brice                                                       
Representative J. Allen Kemplen                                                
                                                                               
MEMBERS ABSENT                                                                 
                                                                               
Representative Mark Hodgins, Chairman                                          
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
HOUSE BILL NO. 393                                                             
"An Act relating to contracts with the state establishing payments             
in lieu of other taxes by a qualified sponsor or qualified sponsor             
group for projects to develop stranded gas resources in the state;             
providing for the inclusion in such contracts of terms making                  
certain adjustments regarding royalty value and the timing and                 
notice of the state's right to take royalty in kind or in value                
from such projects; relating to the effect of such contracts on                
municipal taxation; and providing for an effective date."                      
                                                                               
     - HEARD AND HELD                                                          
                                                                               
(* First public hearing)                                                       
                                                                               
PREVIOUS ACTION                                                                
                                                                               
BILL: HB 393                                                                   
SHORT TITLE: DEVELOP STRANDED GAS RESOURCES                                    
SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR                                   
                                                                               
Jrn-Date    Jrn-Page           Action                                          
 2/11/98      2280     (H)  READ THE FIRST TIME - REFERRAL(S)                  
 2/11/98      2281     (H)  OIL & GAS, FINANCE                                 
 2/11/98      2281     (H)  2 FISCAL NOTES (DNR, REV)                          
 2/11/98      2281     (H)  GOVERNOR'S TRANSMITTAL LETTER                      
 2/19/98               (H)  O&G AT 11:00 AM CAPITOL 124                        
 2/19/98               (H)  MINUTE(O&G)                                        
 2/24/98               (H)  O&G AT 10:00 AM CAPITOL 124                        
 2/24/98               (H)  MINUTE(O&G)                                        
 2/26/98               (H)  O&G AT 10:00 AM CAPITOL 124                        
 2/26/98               (H)  MINUTE(O&G)                                        
 3/03/98               (H)  O&G AT 10:00 AM CAPITOL 124                        
 3/03/98               (H)  MINUTE(O&G)                                        
 3/05/98               (H)  MINUTE(O&G)                                        
 3/09/98      2578     (H)  RES REFERRAL ADDED                                 
 3/10/98               (H)  O&G AT 10:00 AM CAPITOL 124                        
 3/10/98               (H)  MINUTE(O&G)                                        
 3/12/98               (H)  O&G AT 10:00 AM CAPITOL 124                        
 3/12/98               (H)  MINUTE(O&G)                                        
 3/19/98               (H)  O&G AT 10:00 AM CAPITOL 124                        
 3/19/98               (H)  MINUTE(O&G)                                        
 3/24/98               (H)  O&G AT 10:00 AM CAPITOL 124                        
 3/24/98               (H)  MINUTE(O&G)                                        
 3/24/98               (H)  O&G AT 5:00 PM CAPITOL 124                         
                                                                               
WITNESS REGISTER                                                               
                                                                               
JOHN SHIVELY, Commissioner                                                     
Department of Natural Resources                                                
400 Willoughby Avenue, 5th Floor                                               
Juneau, Alaska 99801                                                           
Telephone:  (907) 4532400                                                      
POSITION STATEMENT:  Testified on CSHB 393(O&G).                               
                                                                               
PATRICK CARTER, Legislative Assistant                                          
  to Representative Hodgins                                                    
Alaska State Legislature                                                       
Capitol Building, Room 110                                                     
Juneau, Alaska  99801                                                          
Telephone:  (907) 465-2283                                                     
POSITION STATEMENT:  Testified on CSHB 393(O&G)                                
                                                                               
ACTION NARRATIVE                                                               
                                                                               
TAPE 98-27, SIDE A                                                             
Number 0001                                                                    
                                                                               
VICE-CHAIR CON BUNDE called the House Special Committee on Oil and             
Gas meeting to order at 5:06 p.m.  Members present at the call to              
order were Representatives Bunde, Ogan, Rokeberg, Ryan, Bunde,                 
Brice and Kemplen.                                                             
                                                                               
HB 393 - DEVELOP STRANDED GAS RESOURCES                                        
                                                                               
Number 0073                                                                    
                                                                               
VICE-CHAIR BUNDE announced the committee would continue to hear HB
393, "An Act relating to contracts with the state establishing                 
payments in lieu of other taxes by a qualified sponsor or qualified            
sponsor group for projects to develop stranded gas resources in the            
state; providing for the inclusion in such contracts of terms                  
making certain adjustments regarding royalty value and the timing              
and notice of the state's right to take royalty in kind or in value            
from such projects; relating to the effect of such contracts on                
municipal taxation; and providing for an effective date."  He                  
stated that the committee would continue to hear Representative                
Ryan's amendments.                                                             
                                                                               
Number 0115                                                                    
                                                                               
REPRESENTATIVE JOE RYAN made a motion to adopt Amendment 7, 0-                 
GH2006\B.11, which reads:                                                      
                                                                               
     Page 13, line 10, following "royalty":                                    
                                                                               
          Insert "on gas"                                                      
                                                                               
     Page 13, following line 31:                                               
                                                                               
          Insert a new subsection to read:                                     
                                                                               
               "(d) Nothing in the chapter permits modification of             
               the state's rights that relate to timing, notice,               
               and rights to receive oil royalty in kind or in                 
               value under oil and gas leases or unit agreements."             
                                                                               
VICE-CHAIR BUNDE objected for discussion purposes.                             
                                                                               
Number 0137                                                                    
                                                                               
REPRESENTATIVE RYAN stated that the commissioner is given the                  
authority to make concessions (INDISC. -- STATIC ON TAPE).                     
                                                                               
Number 0246                                                                    
                                                                               
JOHN SHIVELY, Commissioner, Department of Natural Resources, stated            
that they did not have an objection to the amendment.  He stated               
that Representative Ryan is correct, it does separate out gas from             
oil.                                                                           
                                                                               
Number 0227                                                                    
                                                                               
REPRESENTATIVE SCOTT OGAN made a motion to consider an amendment to            
Amendment 7; on page 13, line 9, delete "oil and".                             
                                                                               
Number 0312                                                                    
                                                                               
REPRESENTATIVE NORMAN ROKEBERG objected.                                       
                                                                               
COMMISSIONER SHIVELY stated that it is correct as written because              
the leases are oil and gas leases.  Representative  Ryan is trying             
to make sure that the royalty on the oil part of that is not dealt             
with.                                                                          
                                                                               
REPRESENTATIVE OGAN withdrew his amendment.                                    
                                                                               
REPRESENTATIVE RYAN stated that no one has really gone to look for             
gas yet (INDISC.-- STATIC ON TAPE).                                            
                                                                               
Number 0380                                                                    
                                                                               
VICE-CHAIR BUNDE removed his objection.  He asked if there was a               
further objection, hearing none, Amendment 7 was adopted.                      
                                                                               
Number 0393                                                                    
                                                                               
REPRESENTATIVE RYAN made a motion to adopt Amendment 8, 0-                     
GH2006\B.12, which reads:                                                      
                                                                               
     Page 13, lines 20-23                                                      
                                                                               
          Delete all material and insert:                                      
                                                                               
               "(4) the modification does not impair the ability               
               of the state to meet the demand in this state for               
               gas during the term of the contract entered into                
               under AS 43.82.020."                                            
                                                                               
VICE-CHAIR BUNDE objected for discussion purposes.                             
                                                                               
Number 0443                                                                    
                                                                               
REPRESENTATIVE RYAN stated that the demand for gas in the state be             
ensured in the bill.  He stated that seven-eights of the gas would             
belong to the producer and one-eighth, the states royalty share, is            
allowed to be committed long term.  He stated that there is nothing            
specific that says the gas will be made available for in-state use.            
                                                                               
Number 0522                                                                    
                                                                               
REPRESENTATIVE OGAN stated that to be technically correct,                     
Amendment 8, on line 4, the words "entered into" should be changed             
to "developed".                                                                
                                                                               
Number 0612                                                                    
                                                                               
REPRESENTATIVE ROKEBERG asked why he chose not to use the words in             
the existing subsection and is deleting in regard to the ability of            
the approved pipeline project to meet the demand rather than the               
state.                                                                         
                                                                               
Number 0612                                                                    
                                                                               
REPRESENTATIVE RYAN replied (INDISC.-- STATIC ON TAPE) he is trying            
to ensure that there is gas for the people.                                    
                                                                               
Number 0697                                                                    
                                                                               
REPRESENTATIVE ROKEBERG stated that he thought the thrust of the               
amendment was to delete the concept of economic proximity, he asked            
what his driving point was. (INDISC.-- STATIC ON TAPE)                         
                                                                               
Number 0739                                                                    
                                                                               
REPRESENTATIVE RYAN stated that he wants the state to be able meet             
the demands.  He stated that he did not want this to be entered                
into on a long term contract and not have any gas for in-state use.            
                                                                               
Number 0765                                                                    
                                                                               
REPRESENTATIVE ROKEBERG stated that he agreed with the intent.  He             
referred to page 13, subsection (4) (INDISC -- STATIC ON TAPE).                
                                                                               
Number 0818                                                                    
                                                                               
COMMISSIONER SHIVELY stated that they talked about making gas                  
availabe on page 9, line 7.  He stated that the state is one                   
possibility but in Cook Inlet royalty gas is not used, it comes out            
of the private sector.  In the future royalty gas may be used.                 
Amendment 8 requires the state to do this and the administration               
wanted a broader interpretation to say that a qualified project                
would provide for it, how it is provided can fall under a number of            
options.                                                                       
                                                                               
Number 0905                                                                    
                                                                               
REPRESENTATIVE ROKEBERG stated that he had a conceptual amendment              
on page 13, line 20-23, to insert "or the state" after "qualified              
project" and delete, "within economic proximity of the project".               
                                                                               
Number 0976                                                                    
                                                                               
REPRESENTATIVE RYAN stated that Dr. van Meurs gave the price of                
$3.50 on the Pacific Rim versus $1.00.  He stated that the                     
economics of this may work out that the same quality gas may only              
be worth $1.00, which would mean there would be more money to be               
made in exporting the gas to the Pacific Rim (INDISC. -- STATIC ON             
TAPE).  He stated that his point is to have gas available in-state.            
                                                                               
VICE-CHAIR BUNDE asked "if he saw a possibility that sets the                  
demand in the state for gas that would give rise to demands from               
Western Alaska, that the state build a gas pipeline on the West                
Coast."                                                                        
                                                                               
Number 1085                                                                    
                                                                               
REPRESENTATIVE RYAN replied that at the present time he did not.               
                                                                               
VICE-CHAIR BUNDE asked if this would set it up so that Bethel could            
file suit and say that the state has to build them a pipeline and              
provide them with gas.                                                         
                                                                               
Number 1100                                                                    
                                                                               
COMMISSIONER SHIVELY stated that is the department's concern, by               
deleting the words "economic proximity" because Bethel could ask               
for gas to be set aside in the event that they may need it someday.            
He stated that the term is in there to state that if the gas could             
be economically provided, it would be.                                         
                                                                               
Number 1125                                                                    
                                                                               
REPRESENTATIVE ROKEBERG said, "that unless proximity meaning Cook              
Inlet in the general definition section then I have a problem if               
that is what he meant.                                                         
                                                                               
Number 1146                                                                    
                                                                               
VICE-CHAIR BUNDE stated that economic proximity is defined in                  
definition.                                                                    
                                                                               
Number 1153                                                                    
                                                                               
COMMISSIONER SHIVELY stated that it is the feeling that Anchorage              
could be economical if someone was willing to purchase and                     
transport the gas into that market.                                            
                                                                               
Number 1172                                                                    
                                                                               
VICE-CHAIR BUNDE asked if he understood correctly, that a project              
manager would do this for the state.                                           
                                                                               
Number 1153                                                                    
                                                                               
COMMISSIONER SHIVELY stated that industry would have to come                   
forward to be willing to make a deal, up-front before a line is                
constructed.                                                                   
                                                                               
Number 1223                                                                    
                                                                               
REPRESENTATIVE OGAN asked if on page 13, line 21, the words "or the            
state" were added after qualified project and "within economic                 
proximity of the project" was then left in, would that address the             
concerns.  He moved that be considered as an amendment to Amendment            
8.                                                                             
                                                                               
Number 1282                                                                    
                                                                               
REPRESENTATIVE RYAN agreed.                                                    
                                                                               
Number 1292                                                                    
                                                                               
REPRESENTATIVE ROKEBERG stated that he agreed with it.                         
                                                                               
COMMISSIONER SHIVELY replied that would be fine.                               
                                                                               
VICE-CHAIR BUNDE asked if there was an objection to the amendment              
to Amendment 8.  Hearing none, it was so ordered.  He asked if                 
there was an objection to Amendment 8, as amended, hearing none                
Amendment 8, as amended was adopted.                                           
                                                                               
Number 1335                                                                    
                                                                               
REPRESENTATIVE RYAN made a motion to adopt Amendment 9, 0-                     
GH2006\B.13, which reads:                                                      
                                                                               
     Page 13, line 24:                                                         
                                                                               
          Delete "Notwithstanding any contrary"                                
                                                                               
          Insert "Subject to the"                                              
                                                                               
VICE-CHAIR BUNDE objected for discussion purposes.                             
                                                                               
Number 1357                                                                    
                                                                               
REPRESENTATIVE RYAN stated that this paragraph in the bill gives               
the commissioner of natural resources the authority to develop any             
terms for royalty (INDISC. -- STATIC ON TAPE).  He stated that                 
there already are provisions.  He stated that we would be chopping             
up the state's one-eighth of the royalty share.                                
                                                                               
Number 1413                                                                    
                                                                               
COMMISSIONER SHIVELY stated that the amendment would negate the                
section.  He stated that this is talking about a valuation method              
as there has been substantial litigation, but the purpose of the               
paragraph is that the commissioner of revenue will come up with a              
system for how the valuation is arrived at.  He stated that the                
same valuation method would be used for the royalty.  He stated                
that the language that the amendment would delete, is needed.  He              
stated that if the legislature does not believe the departments                
should have that flexibility then the whole paragraph should be                
deleted.                                                                       
                                                                               
Number 1483                                                                    
                                                                               
VICE-CHAIR BUNDE asked if these provisions, between the two                    
commissioners and the affected parties, would come before the                  
legislature for approval.                                                      
                                                                               
Number 1495                                                                    
                                                                               
COMMISSIONER SHIVELY stated that was correct.  If the legislature              
thought that the valuation method chosen for royalty was incorrect,            
and thought that the state's fair share of royalty was going to be             
given away, then the legislature would have the right to object.               
He explained that this was different from HB 207.                              
                                                                               
Number 1528                                                                    
                                                                               
REPRESENTATIVE RYAN stated that Kuwait is about the same size of               
Alaska and has about amount of oil and they get 88 percent royalty             
and Alaska receives 12 percent. (INDISC. -- STATIC ON TAPE) He                 
stated that Alaska is getting the short end of the stick.                      
                                                                               
Number 1628                                                                    
                                                                               
COMMISSIONER SHIVELY stated that it needs to be kept in mind that              
Kuwait is a country and Alaska is a state.  The state gets its take            
which is the royalty and some taxes and the federal government gets            
its take on top of that.  He stated that the take off of the oil               
field is much more than 12.5 percent.                                          
                                                                               
Number 1652                                                                    
                                                                               
REPRESENTATIVE OGAN asked if the amendment would be subject to AS              
38 which precludes making any adjustments on royalties.                        
                                                                               
Number 1669                                                                    
                                                                               
COMMISSIONER SHIVELY stated that is correct, it negates the                    
section.                                                                       
                                                                               
Number 1679                                                                    
                                                                               
REPRESENTATIVE OGAN asked that under the other provisions of the               
bill, we are allowing the state to make adjustments on a lot of                
other oil and gas taxes (INDISC. -- STATIC ON TAPE).  He asked if              
it is enough of an incentive or does basis royalty needs to be                 
looked at.                                                                     
                                                                               
Number 1742                                                                    
                                                                               
COMMISSIONER SHIVELY stated that in the tax section it is                      
definitely talking about changing the taxes themselves, either by              
elimination or combining, etc.  He stated that in this section it              
is not talking about changing the royalty itself but the valuation             
method.  He stated that it is true that with substantial changes to            
a valuation method the amount that the state gets changes, but the             
royalty would still be 12.5 percent.                                           
                                                                               
Number 1769                                                                    
                                                                               
REPRESENTATIVE OGAN asked about the evaluation method.                         
                                                                               
Number 1784                                                                    
                                                                               
COMMISSIONER SHIVELY stated that it starts with a price and then               
deduct costs from that, (INDISC.-- STATIC ON TAPE).                            
                                                                               
Number 1815                                                                    
                                                                               
REPRESENTATIVE OGAN asked if the tax and a transportation costs are            
high then there could be the possibility (INDISC. -- STATIC ON                 
TAPE).                                                                         
                                                                               
Number 1850                                                                    
                                                                               
COMMISSIONER SHIVELY stated that if a commissioner negotiated a                
valuation system that guaranteed the 12.5 percent royalty was zero             
and the legislature did not catch it, it would be a problem of                 
public trust.  He stated that the royalty should be left as is                 
because of the situation of no basic value.  He stated that a                  
commissioner who negotiated away a whole royalty based on changing             
the valuation system would be violating the legislature (INDISC. --            
STATIC ON TAPE).                                                               
                                                                               
Number 1889                                                                    
                                                                               
REPRESENTATIVE RYAN talked about the difference of the valuation               
systems on the same products in different countries (INDISC. --                
STATIC ON TAPE).  He stated that we are dealing with the potential             
of 34 trillion cubic feet of discovered gas.  He stated that there             
are a lot of problems in setting up two commissioners to set out               
methodology of valuing the figures in relation to a contract that              
has yet to be negotiated with the buyer.  He stated that he is                 
uncomfortable and we are giving away a lot of authority.  He stated            
that he is concerned about the end result (INDISC. -- TAPE STATIC).            
                                                                               
Number 2011                                                                    
                                                                               
COMMISSIONER SHIVELY responded that if litigation were to occur the            
settlements are negotiated in confidence and the legislature would             
not be involved.  He stated that this gives the legislature an                 
opportunity to see the valuation method up-front.                              
                                                                               
Number 2044                                                                    
                                                                               
REPRESENTATIVE OGAN stated that he would like future legislators to            
scrutinize the valuation method.                                               
                                                                               
Number 2087                                                                    
                                                                               
VICE-CHAIR BUNDE called for a roll call vote.  Representatives Ryan            
and Ogan voted in favor of Amendment 9.  Representatives Brice,                
Bunde, Kemplen and Rokeberg voted against Amendment 9.  Amendment              
9 failed.                                                                      
                                                                               
Number 2096                                                                    
                                                                               
REPRESENTATIVE RYAN made a motion to adopt Amendment 10, 0-                    
GH2006\B.14, which reads:                                                      
                                                                               
     Page 16, following line 1:                                                
                                                                               
          Insert a new section to read:                                        
                                                                               
               "Sec. 43.82.235.  Contract term relating to a                   
               project labor agreement.  The commissioner shall                
               include in a proposed contract submitted to the                 
               legislature for approval under AS 43.82.200 a term              
               that requires the qualified sponsor or qualified                
               sponsor group and contractors of the qualified                  
               sponsor or qualified sponsor group to develop and               
               enter into a project labor agreement with                       
               appropriate collective bargaining organizations for             
               the project."                                                   
                                                                               
VICE-CHAIR BUNDE objected for discussion purposes.                             
                                                                               
Number 2132                                                                    
                                                                               
REPRESENTATIVE RYAN stated that it is the only way to ensure                   
Alaskan hire (INDISC.-- STATIC ON TAPE).                                       
                                                                               
Number 2187                                                                    
                                                                               
VICE-CHAIR BUNDE stated that he supported the concern but did to               
feel that it would be a fix (INDISC. -- STATIC ON TAPE).                       
                                                                               
Number 2223                                                                    
                                                                               
REPRESENTATIVE TOM BRICE stated that a one year eligibility                    
requirement is the least we can do.  He stated that this amendment             
could address a lot of the ills that have occurred through the                 
pipeline (INDISC.-- STATIC ON TAPE).  He stated that putting the               
project labor agreement in the bill is not all that bad.                       
                                                                               
Number 2307                                                                    
                                                                               
REPRESENTATIVE OGAN stated that it is something that the private               
sector should make the decision on and it is something that he is              
going to be voting against.                                                    
                                                                               
Number 2368                                                                    
                                                                               
VICE-CHAIR BUNDE asked for a roll call vote.  Representatives                  
Brice, Kemplen and Ryan voted in favor of Amendment 10.                        
Representatives Bunde, Ogan and Rokeberg voted against Amendment               
10.  Amendment 10 failed.                                                      
                                                                               
                                                                               
COMMISSIONER SHIVELY made the suggestion that Amendments B.15-B.17             
be incorporated into one amendment as the department does not have             
an objection to them.                                                          
                                                                               
Number 2377                                                                    
                                                                               
REPRESENTATIVE RYAN made a motion to adopt Amendment 11, 0-                    
GH2006\B.15-17.                                                                
                                                                               
Number 2399                                                                    
                                                                               
REPRESENTATIVE ROKEBERG objected and stated that he is not sure                
about version B.17 and asked for an explanation.                               
                                                                               
Number 2414                                                                    
                                                                               
REPRESENTATIVE RYAN stated that he does not know what the Budget               
and Audit committee does because he is not a member.  He stated                
that it will be making momentous decisions (INDISC. -- STATIC ON               
TAPE).  He stated that he would like to be informed as to what is              
going on.  He stated that deals are being made and money is being              
given away and as an elected official he is not going to be made               
privy to that.                                                                 
                                                                               
TAPE 98-27, SIDE B                                                             
Number 0011                                                                    
                                                                               
VICE-CHAIR BUNDE stated that all members of the legislature are                
welcome to attend as the executive sessions were never meant to                
exclude the legislature, it is only excluding members of the                   
public.                                                                        
                                                                               
Number 0030                                                                    
                                                                               
REPRESENTATIVE ROKEBERG stated that he only room big enough to hold            
each house of the legislature is the house chambers.  He objected              
to combining Amendment, 0-GH2006\B.17 in Amendment 11.                         
                                                                               
Number 0060                                                                    
                                                                               
VICE-CHAIR BUNDE asked if there was an objection to 0-GH2006\B.15              
and B.16.  Hearing none, Amendment 11 was adopted which reads:                 
                                                                               
                                                                               
     Page 19, line 5, following "Law,":                                        
                                                                               
          Insert "to the legislature,"                                         
                                                                               
     Page 19, line 10, following "Law,":                                       
                                                                               
          Insert "the legislature,"                                            
                                                                               
     Page 19, line 15:                                                         
                                                                               
          Delete "may be disclosed"                                            
                                                                               
          Insert "shall be disclosed on request"                               
                                                                               
Number 0087                                                                    
                                                                               
VICE-CHAIR BUNDE stated that Amendment 12,0-GH2006\B.17 was now                
before the committee which reads:                                              
                                                                               
     Page 21, line 26:                                                         
                                                                               
          Delete "the Legislative Budget and Audit Committee"                  
                                                                               
          Insert "each house of the legislature in executive work              
          session"                                                             
                                                                               
     Page 21, line 27:                                                         
                                                                               
          Delete "the committee"                                               
                                                                               
     Page 21, line 29:                                                         
                                                                               
          Delete "the Legislative Budget and Audit Committee"                  
                                                                               
          Insert "a house of the legislature"                                  
                                                                               
     Page 21, line 30:                                                         
                                                                               
          Delete "the committee"                                               
                                                                               
          Insert "that house of the legislature"                               
                                                                               
          Delete "the committee's"                                             
                                                                               
          Insert "that house's"                                                
                                                                               
     Page 21, lines 30-31:                                                     
                                                                               
          Delete "and all members of the legislature"                          
                                                                               
     Page 22, lines 9-10:                                                      
                                                                               
          Delete "Legislative Budget and Audit Committee under AS              
          43.82.410(3)"                                                        
                                                                               
          Insert "legislature"                                                 
                                                                               
Number 0092                                                                    
                                                                               
REPRESENTATIVE OGAN stated that if it is referring to the House                
during the regular session then the decisions (INDISC.--STATIC ON              
TAPE).  He asked if it would be cumbersome for the House as a whole            
to meet during executive session.                                              
                                                                               
Number 0132                                                                    
                                                                               
REPRESENTATIVE RYAN responded that it would reflect that everybody             
is welcome.  He asked everybody may not want to attend but at least            
everybody has the opportunity.                                                 
                                                                               
Number 0179                                                                    
                                                                               
VICE-CHAIR BUNDE stated that in previous meetings it has been                  
pointed out the legislature is invited to the executive sessions               
and were required to sign a nondisclosure agreement.                           
                                                                               
Number 0198                                                                    
                                                                               
REPRESENTATIVE OGAN asked how it would be referred to the                      
legislature, would it be through the committee process.                        
                                                                               
Number 0226                                                                    
                                                                               
REPRESENTATIVE RYAN replied that if it is presented to the                     
legislature during executive session.   The body would have the                
opportunity to attend and not have to pay the price of the airline             
ticket to do so.                                                               
                                                                               
Number 0289                                                                    
                                                                               
REPRESENTATIVE ROKEBERG stated that he appreciated Representative              
Ryan's intent and agrees with him.  He stated that he would ask                
that the committee adopt by reference the entire record of HB 207              
on this subject.                                                               
                                                                               
Number 0383                                                                    
                                                                               
VICE-CHAIR BUNDE asked for a roll call vote.  Representatives                  
Brice, Ogan and Ryan voted in favor of Amendment 12.                           
Representatives Bunde, Kemplen and Rokeberg voted against Amendment            
12.  Amendment 12 failed.                                                      
                                                                               
Number 040                                                                     
                                                                               
VICE-CHAIR BUNDE made a motion to adopt Amendment 13 which is a                
technical amendment that reads:                                                
                                                                               
     Refers to Page 18, line 26 of the CS Amendment 1, page 4, line            
     12 - following "public disclosure or"                                     
                                                                               
     Insert "public disclosure"                                                
                                                                               
     Refers to Page 18, Line 30 of the CS                                      
                                                                               
     Amendment 1, page 4, line 17 - Following "information"                    
                                                                               
     Delete "and"                                                              
                                                                               
     Insert "or"                                                               
                                                                               
Number 0420                                                                    
                                                                               
PATRICK CARTER, Legislative Assistant to Representative Hodgins,               
stated that it is a technical amendment to Amendment 1.  He read               
Amendment 13.                                                                  
                                                                               
Number 0528                                                                    
                                                                               
REPRESENTATIVE RYAN stated that he has a problem being a part of a             
public body that is doing the public's business and having all this            
confidential information running around.  He stated that all the               
resources in the state of Alaska is owned by the people.                       
                                                                               
Number 0549                                                                    
                                                                               
REPRESENTATIVE BUNDE stated that we would be guilty if malfeasance             
if we destroyed the commercial value of the interest by our                    
actions.                                                                       
                                                                               
Number 0565                                                                    
                                                                               
VICE-CHAIR BUNDE called for a roll call vote.  Representatives                 
Brice, Bunde, Kemplen, Ogan, Rokeberg and Ryan voted in favor of               
Amendment 10.  Amendment 10 passed.                                            
                                                                               
Number 0636                                                                    
                                                                               
VICE-CHAIR BUNDE stated that Representative Ryan has some more                 
amendments to be heard at a future meeting.  He recessed the House             
Special Oil and Gas meeting to the call of the chair at 6:10 p.m.              

Document Name Date/Time Subjects