Legislature(1995 - 1996)

02/20/1995 08:10 AM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
               HOUSE RESOURCES STANDING COMMITTEE                              
                       February 20, 1995                                       
                           8:10 a.m.                                           
                                                                               
                                                                               
 MEMBERS PRESENT                                                               
                                                                               
 Representative Joe Green, Co-Chairman                                         
 Representative Bill Williams, Co-Chairman                                     
 Representative Scott Ogan, Vice Chairman                                      
 Representative Alan Austerman                                                 
 Representative John Davies                                                    
                                                                               
 MEMBERS ABSENT                                                                
                                                                               
 Representative Ramona Barnes                                                  
 Representative Pete Kott                                                      
 Representative Eileen MacLean                                                 
 Representative Irene Nicholia                                                 
                                                                               
                                                                               
 COMMITTEE CALENDAR                                                            
                                                                               
 *HB 128:"An Act establishing an exemption to the requirement of              
 obtaining a waste disposal permit for certain activities                      
 that yield water and waste material discharges ancillary                      
 to those activities."                                                         
                                                                               
 HEARD AND HELD                                                              
                                                                               
 SJR 6:Relating to federally held property in those states,                   
 including Alaska, admitted to the Union since 1802.                           
                                                                               
 HEARD AND HELD                                                              
                                                                               
 HB 170:"An Act relating to intensive management of identified                
 big game prey populations."                                                   
                                                                               
 SCHEDULED BUT NOT HEARD                                                     
                                                                               
 (* First public hearing)                                                      
                                                                               
 WITNESS REGISTER                                                              
                                                                               
 JACK PHELPS, Aide                                                             
 Representative Bill Williams                                                  
 State Capitol, Room 128                                                       
 Juneau, AK   99801                                                            
 Phone:  465-3424                                                              
 POSITION STATEMENT:  Gave Sponsor Statement for HB 128                        
                                                                               
 DEENA HENKINS, Section Chief                                                  
 Drinking Water & Wastewater Section                                           
 Department of Environmental Conservation                                      
 410 Willoughby Ave., Ste 105                                                  
 Juneau, AK   99801                                                            
 Phone:  465-5300                                                              
 POSITION STATEMENT:  Suggested changes for HB 128                             
                                                                               
 BEVERLY WARD, Representative                                                  
 ARCO Alaska, Inc.                                                             
 134 N. Franklin                                                               
 Juneau, AK   99801                                                            
 Phone:  586-3680                                                              
 POSITION STATEMENT:  Supported concept of HB 128                              
                                                                               
 JOE AMBROSE, Aide                                                             
 Senator Robin Taylor                                                          
 State Capitol, Room 30                                                        
 Juneau, AK   99801                                                            
 Phone:  465-3873                                                              
 POSITION STATEMENT:  Gave Sponsor Statement for SJR 6                         
                                                                               
 ACTION NARRATIVE                                                              
                                                                               
 BILL:  HB 128                                                               
 SHORT TITLE: WASTE DISPOSAL PERMIT EXEMPTION                                  
 SPONSOR(S): REPRESENTATIVE(S) WILLIAMS,Kott,Toohey                            
                                                                               
 JRN-DATE     JRN-PG               ACTION                                      
 01/27/95       156    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 01/27/95       156    (H)   RESOURCES                                         
 01/27/95       163    (H)   COSPONSOR(S): KOTT, TOOHEY                        
 02/08/95       271    (H)   SPONSOR SUBSTITUTE INTRODUCED-                    
                             REFERRALS                                         
 02/08/95       271    (H)   RES                                               
 02/20/95              (H)   RES AT 08:00 AM CAPITOL 124                       
                                                                              
 BILL:  SJR  6                                                                
 SHORT TITLE: TRANSFER FED. LAND TO POST-1802 STATES                           
 SPONSOR(S): SENATOR(S) TAYLOR, Halford, Kelly, Sharp, Frank, Green,           
 Pearce                                                                        
                                                                               
 JRN-DATE      JRN-PG              ACTION                                      
 01/16/95        11    (S)   READ THE FIRST TIME - REFERRAL(S)                 
 01/16/95        11    (S)   RESOURCES                                         
 02/01/95              (S)   RES AT 03:30 PM BUTROVICH ROOM 205                
 02/01/95              (S)   MINUTE(RES)                                       
 02/03/95       159    (S)   RES RPT  CS  5DP          NEW TITLE               
 02/03/95       159    (S)   ZERO FISCAL NOTE (S.RES)                          
 02/03/95              (S)   RLS AT 12:10 PM BELTZ ROOM 211                    
 02/03/95              (S)   MINUTE(RLS)                                       
 02/06/95       181    (S)   RULES TO CALENDAR  2/6/95                         
 02/06/95       183    (S)   READ THE SECOND TIME                              
 02/06/95       183    (S)   RES  CS ADOPTED UNAN CONSENT                      
 02/06/95       183    (S)   ADVANCED TO THIRD READING UNAN                    
                             CONSENT                                           
 02/06/95       183    (S)   READ THE THIRD TIME  CSSJR 6(RES)                 
 02/06/95       183    (S)   COSPONSOR(S): FRANK, GREEN, PEARCE                
 02/06/95       184    (S)   PASSED Y15 N- E4 A1                               
 02/06/95       185    (S)   TRANSMITTED TO (H)                                
 02/08/95       263    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 02/08/95       263    (H)   RES                                               
 02/20/95              (H)   RES AT 08:00 AM CAPITOL 124                       
                                                                              
 BILL:  HB 170                                                                
 SHORT TITLE: INTENSIVE MANAGEMENT OF GAME                                     
 SPONSOR(S): REPRESENTATIVE(S) KELLY,Toohey                                    
                                                                               
 JRN-DATE     JRN-PG               ACTION                                      
 02/10/95       301    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 02/10/95       301    (H)   RESOURCES                                         
 02/20/95              (H)   RES AT 08:00 AM CAPITOL 124                       
                                                                               
 TAPE 95-21, SIDE A                                                            
 Number 000                                                                    
                                                                               
 The House Resources Committee was called to order by Co-Chairman              
 Williams at 8:10 a.m.  Members present at the call to order were              
 Representatives Green, Williams, Ogan, Austerman and Davies.                  
 Members absent were Representatives Barnes, Kott, MacLean and                 
 Nicholia.                                                                     
                                                                               
 CO-CHAIRMAN BILL WILLIAMS announced there is a quorum present.                
                                                                               
 HRES - 02/20/95                                                               
 HB 128 - WASTE DISPOSAL PERMIT EXEMPTION                                    
                                                                               
 CO-CHAIRMAN WILLIAMS said it was not his intention to move HB 128             
 out of committee today.                                                       
                                                                               
 JACK PHELPS, AIDE, REPRESENTATIVE BILL WILLIAMS, PRIME SPONSOR,               
 stated HB 128 was drafted in response to a recommendation by the              
 Alaska Minerals Commission in their 1995 report, to address a                 
 statute which, because of its tremendous breadth, had recently                
 created concern for both the mineral industry and the water well              
 drillers in Alaska.  He said HB 128 provides an exemption for                 
 drilling and incidental wastes that result from certain industrial            
 activities in the state that hitherto have been treated as minimal            
 and noncontaminating.  He noted because the existing statute                  
 AS 46.03.100 is extremely broad, the department was faced with                
 moving into a general permit proposal to deal with things hitherto            
 had been ignored.  He stressed the intention of HB 128 is to narrow           
 that down somewhat and make it more comfortable for the industry              
 and the Department of Environmental Conservation (DEC) in terms of            
 regulating this activity.                                                     
                                                                               
 MR. PHELPS told committee members there is a proposed committee               
 substitute in their folders.  He noted there are significant                  
 changes between the sponsor substitute and the proposed committee             
 substitute.  He requested that committee members look at page 2 on            
 the committee substitute near the bottom.  He said what is now                
 Section 3 is drawn from the original section of the original bill.            
 He explained this section was rewritten based on discussions with             
 DEC and incorporates changes the department requested to clarify              
 the bill more carefully.  He stressed the intent and the actual               
 meaning of this section of the bill is not altered by these changes           
 but is made more clear and evident.                                           
                                                                               
 MR. PHELPS explained the other change between the committee                   
 substitute and the previous version of the bill are the additions             
 of Sections 1 and 2.  He said these sections transfer the                     
 permitting authority for a particular type of disposal that takes             
 place in the oil industry from DEC to the Alaska Oil and Gas                  
 Conservation Commission (AOGCC).  He stated this change was                   
 initiated by comments from the AOGCC indicating there was some                
 preference in both agencies for AOGCC to regulate it because AOGCC            
 has petroleum engineers on their staff and it seemed more                     
 appropriate for AOGCC to handle it rather than DEC.  He noted in              
 discussions with both agencies, there was an agreement that the               
 transfer of authority needed to take place.  The question was                 
 whether the transfer could be done through a memo of understanding            
 or in statute, which is an issue the legislature will have to                 
 decide.  He pointed out the transfer of that authority is proposed            
 to be done statutorily in HB 128.                                             
                                                                               
 MR. PHELPS stated the new subsection proposed on page 2, lines 13-            
 17, contains a definition of nonhazardous drilling operation waste.           
 He said there is concern regarding this definition.  He told                  
 committee members there is a memo in their folders from Blair                 
 Wondzell, who is an engineer with AOGCC, which suggests if the                
 Title 46 definition of nonhazardous waste is placed in this                   
 subsection, it may create difficulties because AOGCC normally                 
 operates under the federal definition for all of their underground            
 injection control permits.  AOGCC requested the committee look at             
 possibly using federal language rather than state statutory                   
 language.                                                                     
                                                                               
 MR. PHELPS stated he had discussed that request with DEC and                  
 currently in their regulations, under AS 46.03, they bring their              
 definition under the federal definition.  Therefore, it may be                
 appropriate for the committee to roll some reference of the federal           
 definition into this section of the bill.                                     
                                                                               
 Number 170                                                                    
                                                                               
 REPRESENTATIVE SCOTT OGAN clarified that HB 128 eliminates a                  
 duplication of efforts by DEC and AOGCC.                                      
                                                                               
 MR. PHELPS responded there is no dual permitting process at this              
 time.  He said DEC has the authority and has been permitting                  
 disposals.  He added the department had contemplated using a                  
 memorandum of understanding to transfer the authority to AOGCC.  He           
 noted AOGCC is currently developing regulations to perform that               
 permitting.  He stated HB 128 would make it clear who was going to            
 do the permitting so there would not be a possibility of a dual               
 permitting system and it would clarify who has the authority.  He             
 said it was not his understanding that both agencies wanted to do             
 the permitting, but rather the permitting needed to be done by the            
 appropriate agency.                                                           
                                                                               
 REPRESENTATIVE OGAN clarified AOGCC is better qualified to do the             
 permitting.                                                                   
                                                                               
 MR. PHELPS replied that would not be the right phrase to use.  He             
 said it is more appropriate to say that the agency who has the                
 general authority to deal with oil well activities and does have              
 petroleum engineers on their staff be the permitting agency.                  
                                                                               
 REPRESENTATIVE JOE GREEN made a MOTION to ADOPT CSSSHB 128(RES).              
                                                                               
 CO-CHAIRMAN WILLIAMS asked if there were any objections.  Hearing             
 none, the MOTION PASSED.                                                      
                                                                               
 Number 227                                                                    
                                                                               
 CO-CHAIRMAN GREEN wondered if the AOGCC is already doing this type            
 of activity currently.                                                        
                                                                               
 MR. PHELPS stated the AOGCC is the agency that does the permitting            
 for oil wells.  He said DEC is currently permitting for annular               
 pumping.  He explained AOGCC is in the process of developing                  
 regulations under which they would regulate it and the contemplated           
 move was the memorandum of understanding between DEC and AOGCC                
 enabling AOGCC to take over that activity.  He noted HB 128                   
 proposes that transfer in statute rather than through a memorandum            
 of understanding.                                                             
                                                                               
 CO-CHAIRMAN GREEN said the reason he brought that up is because               
 there is an activity done in an oil well drilling process called              
 cementing.  He asked if that portion of the oil well completion is            
 governed by AOGCC.                                                            
                                                                               
 MR. PHELPS responded cementing, which is a form of annular pumping,           
 is currently regulated under AOGCC.                                           
                                                                               
 Number 270                                                                    
                                                                               
 DEENA HENKINS, SECTION CHIEF, DRINKING WATER & WASTEWATER SECTION,            
 DEC, said she appreciated Mr. Phelps working with the department to           
 try and clarify the language of the proposed exemptions.  She                 
 stated excavation dewatering type processes have been excluded from           
 subsection (B) on page 3.  She said excavation dewatering can                 
 produce a huge amount of muddy water and the department has                   
 regulated those discharges usually with general permits.  A lot of            
 the water coming out of excavations is groundwater.                           
                                                                               
                                                                               
 MS. HENKINS said the department suggests on page 3, line 17 that              
 "groundwater" be added to the kinds of water being removed from               
 excavations which are not exempt from permits.  Therefore, it would           
 include groundwater, stormwater, or wastewater run-off.  She stated           
 the other concern expressed to her about the exclusions is that as            
 the bill is written, drilling wastes can be put on the land without           
 requiring any permit.  The department is concerned that there may             
 be some drilling additives, particularly in mineral drilling                  
 operations, that possibly could contaminate a shallow aquifer that            
 might be used as drinking water.  She stated the department would             
 like to further discuss these concerns with Mr. Phelps this week.             
                                                                               
 Number 322                                                                    
                                                                               
 BEVERLY WARD, REPRESENTATIVE, ARCO ALASKA, stated ARCO fully                  
 supports the concept of AOGCC having the authority to regulate the            
 annular pumping.  However, she said once ARCO looked at the                   
 specific wording of how that is being proposed to be done, they did           
 have some suggested changes but has not had the chance to work with           
 the staff on those changes.  She felt before the bill is moved from           
 committee, ARCO will have a chance to work with AOGCC, DEC and                
 staff to determine the appropriate language.                                  
                                                                               
 CO-CHAIRMAN WILLIAMS announced HB 128 would be held.                          
                                                                               
 HRES - 02/20/95                                                               
 SJR 6 - TRANSFER FEDERAL LAND TO POST-1802 STATES                           
                                                                               
 Number 348                                                                    
                                                                               
 JOE AMBROSE, AIDE, SENATOR ROBIN TAYLOR, PRIME SPONSOR, stated the            
 Founding Fathers recognized that land was power and that a                    
 centralized federal government with a substantial land base would             
 eventually overwhelm the states.  That is why the original 13                 
 colonies and the next 5 states admitted to the Union were given fee           
 title to all land within their borders.  He said the Constitution             
 even includes a provision allowing for the donation of land to the            
 federal government for the creation of the District of Columbia.              
 The Founders guarded land ownership jealously, writing into the               
 Constitution's first article, a provision allowing the federal                
 government to purchase, with the consent of the state legislatures,           
 land it needed for the erection of forts, magazines, arsenals, dock           
 yards and other needful buildings.                                            
                                                                               
 MR. AMBROSE explained the opening of the West, with its wealth of             
 resources, led an envious federal government to begin to withhold             
 for itself large portions of land within the borders of newly                 
 admitted states under the guise of public domain.  The result of              
 this doctrine was the creation of what SJR 6 refers to as land poor           
 states, admitted to the Union as unequal, federally dominated                 
 entities.  He stated SJR 6 calls upon Congress to right this wrong            
 and release to the states all federal holdings within their                   
 borders.  The action proposed by this resolution would make land              
 use decisions now being decided by the Congress moot and empower              
 the states to settle those issues on their own.  He noted that                
 copies of the draft of SJR 6 were sent to members of the                      
 congressional delegations from the land poor states as well as to             
 groups and individuals interested in this issue.                              
                                                                               
 MR. AMBROSE told committee members they had a copy of an article              
 from the Ketchikan Daily News in their folders.  In that article              
 Representative Don Young was asked directly about SJR 6 and                   
 Representative Young said, "Senator Taylor's resolution is already            
 being seriously discussed in Washington."  He said Senator Taylor             
 is hoping that SJR 6 will be passed in a timely manner so that                
 Alaska will be the first of the states to send this message to                
 Congress.                                                                     
                                                                               
 Number 400                                                                    
                                                                               
 CO-CHAIRMAN GREEN made a MOTION to MOVE SJR 6 out of committee with           
 accompanying zero fiscal note with individual recommendations.                
                                                                               
 REPRESENTATIVE JOHN DAVIES OBJECTED for the purpose of discussion.            
 He said it was his understanding that SJR 6 would not be passed out           
 today.                                                                        
                                                                               
 CO-CHAIRMAN WILLIAMS said he had announced at the beginning of the            
 meeting that he did not plan to move HB 128.                                  
                                                                               
 CO-CHAIRMAN GREEN WITHDREW his MOTION.                                        
                                                                               
 Number 423                                                                    
                                                                               
 REPRESENTATIVE DAVIES said if the federal government had not                  
 retained control of some large acreages of land, the national                 
 forest system would not be in place.  He added if those lands were            
 in very small ownership patterns it would be difficult to put                 
 together long term contracts.                                                 
                                                                               
 MR. AMBROSE responded who is better suited to manage the land                 
 resource, the state or federal government.  He said the implication           
 is the state would not make the same decisions.  He stated there is           
 talk in Congress now of dismantling the U.S. Forest Service because           
 it is failing to manage the national forests for the intended                 
 purpose, take the productive land and turn it over to the Bureau of           
 Land Management (BLM), and from there to the states.  At the time             
 of statehood, what land was seeded to the state of Alaska was                 
 seeded in such a way to guarantee a chance to have an economy.  He            
 pointed out that if the decision had gone the other way, the state            
 would not be paying any royalties to the federal government now on            
 the North Slope.                                                              
                                                                               
 REPRESENTATIVE DAVIES noted the resolution urges the 104th Congress           
 to transfer to the states, by fee title, all federally controlled             
 property.  He wondered if this includes wilderness areas, parks,              
 etc.                                                                          
                                                                               
 MR. AMBROSE replied the intent of the resolution is to transfer all           
 federally held land within the 22 states admitted to the Union                
 since 1802.  He said the resolution also suggests at that point,              
 anything the federal government feels it needs it could buy from              
 the states which the Constitution says it must do with the                    
 permission of the legislatures.  He noted Congressman Young is                
 discussing taking the productive land, turning it over to the                 
 states, and making the rest of it into parks.                                 
                                                                               
 Number 473                                                                    
                                                                               
 REPRESENTATIVE DAVIES wondered if the state was to take over all              
 the federal lands, including parks and wilderness areas, would the            
 state be responsible for managing those parklands.                            
                                                                               
 MR. AMBROSE stated that is the intent.                                        
                                                                               
 REPRESENTATIVE DAVIES questioned if there would be a significant              
 fiscal impact on the state.                                                   
                                                                               
 MR. AMBROSE replied yes, but by the same token, the federal budget            
 could be reduced and the state would not have to be sending as much           
 money in that direction.                                                      
                                                                               
 REPRESENTATIVE DAVIES said the money sent in that direction is                
 primarily through individual income taxes.  Therefore, the state              
 treasury, unless an income tax was enacted to divert that flow to             
 the state treasury instead of the federal treasury, would not have            
 adequate resources to manage those lands.                                     
                                                                               
 MR. AMBROSE felt that was too speculative to discuss at this point.           
                                                                               
 Number 485                                                                    
                                                                               
 REPRESENTATIVE DAVIES felt there would be a substantial fiscal                
 impact in connection with SJR 6 and he questioned the zero fiscal             
 note.                                                                         
                                                                               
 Number 499                                                                    
                                                                               
 CO-CHAIRMAN GREEN suggested, in light of the question raised,                 
 holding the resolution until the next meeting to determine if a               
 positive fiscal note should be attached.                                      
                                                                               
 CO-CHAIRMAN WILLIAMS announced SJR 6 would be held until Wednesday,           
 February 22.                                                                  
 ADJOURNMENT                                                                   
                                                                               
 There being no further business to come before the House Resources            
 Committee, Co-Chairman Williams adjourned the meeting at 8:38 a.m.            
                                                                               
                                                                               

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