Legislature(2007 - 2008)BARNES 124
03/30/2007 01:00 PM House RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing|| Commissioner, Department of Natural Resources | |
| Alaska Oil & Gas Conservation Commission | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
March 30, 2007
1:02 p.m.
MEMBERS PRESENT
Representative Carl Gatto, Co-Chair
Representative Craig Johnson, Co-Chair
Representative Vic Kohring
Representative Bob Roses
Representative Paul Seaton
Representative Peggy Wilson
MEMBERS ABSENT
Representative Bryce Edgmon
Representative David Guttenberg
Representative Scott Kawasaki
COMMITTEE CALENDAR
CONFIRMATION HEARINGS
Commissioner, Department of Natural Resources
Acting Commissioner Tom Irwin - Anchorage
- CONFIRMATION ADVANCED
Alaska Oil & Gas Conservation Commission
Cathy Foerster - Anchorage
- CONFIRMATION ADVANCED
PREVIOUS COMMITTEE ACTION
No previous action to report
WITNESS REGISTER
TOM IRWIN, Acting Commissioner
Department of Natural Resources (DNR)
Anchorage, Alaska
POSITION STATEMENT: Discussed why he would like to be
commissioner.
ROY BURKHART
Willow, Alaska
POSITION STATEMENT: Opposed Acting Commissioner Irwin's
appointment to the Department of Natural Resources.
HERB SIMON
Nelchina, Alaska
POSITION STATEMENT: Asked Acting Commissioner Irwin to put
environmental safeguards into permit requirements for mega-
projects.
CATHY FOERSTER, Appointee
to the Alaska Oil and Gas Conservation Commission (AOGCC)
Anchorage, Alaska
POSITION STATEMENT: Related the reasons she wants to serve on
the AOGCC.
ACTION NARRATIVE
CO-CHAIR CRAIG JOHNSON called the House Resources Standing
Committee meeting to order at 1:02:36 PM. Representatives
Johnson, Gatto, Wilson, Seaton, and Roses were present at the
call to order. Representative Kohring arrived as the meeting
was in progress.
^CONFIRMATION HEARING
^Commissioner, Department of Natural Resources
1:02:49 PM
CO-CHAIR JOHNSON announced that the first order of business
would be the confirmation hearing on the appointment of Acting
Commissioner Tom Irwin as commissioner of the Department of
Natural Resources (DNR). He asked Acting Commissioner Irwin to
tell the committee why he would like to be commissioner.
1:03:15 PM
TOM IRWIN, Acting Commissioner, Department of Natural Resources
(DNR), presented the following reasons for his desire to be
commissioner. First and foremost, he is a Christian. Second, he
and his wife believe Alaska needs resource development so that
future generations have jobs and can remain in Alaska,
specifically his children and grandchildren. Third, he holds
Governor Palin in high regard. He believes if Alaska's
resources are not developed correctly, Alaska will be ruined and
he wants Alaska to be as special for his grandchildren as it has
been for him. He and Governor Palin have the same philosophy in
regard to Alaska's natural resources and he works with top-notch
people at DNR.
1:05:23 PM
CO-CHAIR GATTO jested that the DNR commissioner must be able to
spell tungsten and molybdenum.
1:05:31 PM
ACTING COMMISSIONER IRWIN said he can because he attended the
Colorado School of Mining where he was given a full scholarship,
summer employment and participated in a management training
program. The first property he worked at primarily produced
molybdenum, known as "molly," and secondarily tungsten. A
third product produced was iron manganese tungsten.
1:07:04 PM
REPRESENTATIVE SEATON noted the coastal zone management(CZM)
process was moved to a new program several years ago and many
people from local communities feel they no longer have a say in
that process. He asked whether local input can be reinvigorated
into that program as it exists now.
1:08:07 PM
ACTING COMMISSIONER IRWIN said that is a fair question and that
he is a proponent of people getting together. He continued:
If you look back before I left, we had actually called
multiple parties together. I don't remember the exact
count. We must have had 40 people in the room - maybe
50. Frankly, I wasn't there to talk. I was there to
listen. ... I've had it directly but I ran into the
folks from the North Slope Borough back in D.C. And
although we were talking about [Alaska Gasline
Inducement Act] AGIA as the primary point from my
standpoint, we clearly talked about this also. We
want people to have input.
1:08:55 PM
ACTING COMMISSIONER IRWIN continued:
I might as well stir the pot further because we have
the Habitat [Division] move also and, for the record
sir, I want to let you know the good people the state
has had working on both of those projects - our
Habitat folks, our biologists, the people in the
programs, the people in the CZMP. From my career,
I've been through many mergers of companies and it
seems like everybody - when you start to a new company
you change the deck chairs. My philosophy is don't
take your energy on moving things. Take your energy
on learning what is good and what is bad and working
on the bad and enforcing the good and I'm intent on
looking at those but understand I think there's a lot
of good with the move too. I'd be misleading to you.
But the other thing to be honest with this committee,
I think I've been living down here the last weeks on
another issue of oil and gas line and it's
appropriate, very out of characterization of myself.
I really get out first thing and say hello to all my
people and hear what they have to say. Honestly, I
haven't had a chance to do that yet.
So, to be direct, my first steps will be I will get
with the individuals in my department who are running
both of those programs. We will talk. We'll talk
about what is going on and I am committed to listening
to the Alaskan people, just as the Governor is.
1:10:36 PM
REPRESENTATIVE SEATON said his point addresses what has been
happening, that being the agency's lack of listening to people.
Local entities cannot write enforceable policies for anything
that could possibly be covered under state law, which includes
just about everything. For example, if a local community has an
important issue dealing with subsistence on eel grass beds, it
cannot write a policy to address that but instead must determine
the historic usage of every eel grass bed. He asked Mr. Irwin
to look into that part of the program and consider whether it
went too far and, if so, to address the problem. It has made
local input almost meaningless.
1:12:09 PM
ACTING COMMISSIONER IRWIN said he would do that and that he
would meet with Representative Seaton in the near future.
1:12:33 PM
REPRESENTATIVE KOHRING noted that he has been very pleased with
the work Acting Commissioner Irwin has done on the AGIA bill.
That bill improves upon previous legislation. He is glad to see
that Governor Palin saw fit to recommend Acting Commissioner
Irwin. He then excused himself to attend another meeting.
1:13:25 PM
ACTING COMMISSIONER IRWIN thanked Representative Kohring for his
comments.
1:13:30 PM
REPRESENTATIVE ROSES asked Acting Commissioner Irwin if he is
concerned that what transpired in the past will prevent him from
moving forward as commissioner.
1:14:03 PM
ACTING COMMISSIONER IRWIN thanked Representative Roses for
asking that question. He told members:
What transpired in the past, and I'm not going to talk
about others, let me talk about me. I took an oath to
do what is best for Alaskans. I just recently took
that oath again. I intend to to the fullest of my
ability, and I did add at the end of the oath "So help
me God." I stood up for what was right for Alaskans
and I don't think it will hinder me. I've learned a
lot. I actually think it brings more to the table.
You always learn from experiences.
So sir, I really believe I did what is right. I did
what many people would do. Who would have thought a
year and so many months later I'd be down in front of
this group again? But yes, to the best of my ability
I took that oath to do what is best for Alaska.
1:15:06 PM
REPRESENTATIVE ROSES remarked that he has only heard words of
praise for Acting Commissioner Irwin from others. He said he
believes Acting Commissioner Irwin is seen as a person who is
committed to doing what is right and what is best for the State
of Alaska.
1:15:44 PM
ACTING COMMISSIONER IRWIN said, in all fairness, he was
supported by a lot of good staff.
1:16:40 PM
CO-CHAIR GATTO said he tried to get Mark Myers to return but he
is now working for the United States Geological Survey. He
believes Acting Commissioner Irwin learned a great deal from his
past experience and took a stand for the people of Alaska.
1:17:45 PM
ACTING COMMISSIONER IRWIN said he will honor the oath he took to
the best of his ability. He jested he would appreciate any
suggestions on how to get Mark Myers back. Mr. Myers has an
incredibly important position for the United States and Alaska.
They talk regularly. He noted DNR has a huge opportunity before
it.
1:19:08 PM
CO-CHAIR JOHNSON opened the meeting to public testimony.
1:19:24 PM
ROY BURKHART related his opposition to the appointment of Acting
Commissioner Irwin to DNR because he does not believe Acting
Commissioner Irwin is diplomatic enough to run a department.
Mr. Burkhart said he worked on the Willow boat launch for 15
years. A number of environmental extremists in [the Division of
Parks] have derailed that project again. He has written six
letters to DNR but has yet to receive a response. He recounted
a short history of the Willow boat launch and said the entire
Valley delegation favors the project, as well as outdoor
organizations. However, the project is not supported at DNR.
He felt Acting Commissioner Irwin should be asked to put on
record that he supports the Willow boat launch and will demand
that DNR staff support the project.
1:22:11 PM
HERB SIMON, testifying via teleconference from Nelchina, said
[Trans-Alaska Pipeline System] TAPS has been operating for more
than 30 years and that the gas industry and Pebble Mine may open
soon. He asked why preventative measures can't be included as
conditions for the permitting of mega-projects in the state. He
continued:
So, for example, inspection criteria on the pipeline,
the TAPS or any other pipeline, and the clean up of
some of these mines - I'm from Nelchina and we have
mining equipment scattered all over this part of the
world where the mining operation was permitted, gunny
sacked, or somebody died or whatever. All of that
junk is scattered all over the country. Why can't
things like that be plowed into a conditional use type
permit so that one, this mining equipment is removed
from the sites like with TAPS or any other pipeline,
why we don't plow inspection criteria into the
conditional use permit of the pipeline. In other
words, I'm going not for the sake of environmentalism,
but preventative measures. I think, for example we
just recently in the past several years renewed the
permit for TAPS and then, through the jousting with
the big oil companies and the state, suddenly we come
to find out a lot of those feeder lines up north are
corroded 30 years after the fact where that should
have been periodic inspection criteria. Anyway,
that's the essence of my question.
1:25:45 PM
CO-CHAIR JOHNSON asked Mr. Simon to stay on line because his
questions may be addressed during the hearing. With no further
participants, he closed public testimony. He notified Acting
Commissioner Irwin that he is free to answer those questions but
is only compelled to answer questions from committee members.
1:26:27 PM
ACTING COMMISSIONER IRWIN said the Willow boat ramp has a long
history. He explained:
Of what was requested of DNR and the funding
available, etcetera, one was sort of put in with the
money available in a spot that DNR people strongly
felt don't put it in there because it will wash away.
It washed away. There is a boat ramp that is badly
needed out there. I've actually visited there twice
in a past life when I was here before. It's a funding
issue and really that boat ramp ties into several
funding issues and I certainly have got to be on
record that I support the Governor's budget but that
boat ramp and access to the world and parks, that
whole issue, you know, there's two sides. I mean you
heard I want resource development and I believe that
is what can help fund some of these things. We are so
rich in parks and we want people to put their boats in
the river but you also have to do it right. We're
legally bound to do it safely. You can't just throw
something in and not have the full money so all of
these things are an issue.
I'll go down a short rabbit trail if you'll allow me
to on parks. I think the parks people have done a
tremendous job in keeping parks open by having private
people come in and manage them. And those private
people have done a good job but there is an economic
motivation there and you get further and further
behind in the maintenance. Somewhere long term, and
these are shorter than long term in my mind, read what
they're doing with parks in your - I don't want to
reinvent the wheel. And whatever people do around the
world with parks doesn't hold a candle to ours. So
boat ramps and access and all of these things I
believe in, if we've been disrespectful somehow to an
individual, we don't mean that and maybe we have,
maybe we haven't because I don't recall the gentleman.
But he deserves an answer and there is something we're
missing. We need to be paying attention because he's
an Alaskan like everyone else.
1:29:01 PM
ACTING COMMISSIONER IRWIN continued:
The second question - boy, I could talk for hours on
it but there's a history of mining and there are some
junk places out there and we don't want those in
Alaska. But if I might go to one example, I helped
purchase, design, set up and get the Fort Knox Mine in
operation. There are checks and there are still
checks going on but if you go look in that valley, and
my first experience with Habitat people and Fish and
Game people, the mine is high on the ridge where it is
at but this valley had frankly been torn up and torn
up terribly with placer mining - not the new style
with plans and reclamation, I'm talking about the old
timers. They didn't know at the time what we really
had for the environment. They tore through the
permafrost that melted every summer. The black was
going through the Little Chena through Fairbanks. It
was close to being an impaired water body. It was to
the point it was catch and release for grayling on a
wonderful river system.
But here is what you can do. The company worked with
[the Alaska Department of] Fish and Game [ADF&G] and
[the Division of] Habitat. We had to put in a 385-
acre water reservoir, very sizeable. They said let us
work with you and here's what we'll get out of it.
You'll get your reservoir, leave humps in here and
let's take all of these placer miner ponds and we'll
reclaim them and connect them together. The goal was
not only did the mine get its water; we cleaned up the
river because now all of the solids have been taken
care of going downstream. The goal was maybe [5,000]
to 10,000 catchable-size grayling at the end of the
mine life, which was 12 years at the time. The first
year that this was in operation we saw an incredible
amount of fry in the little ponds. We had one pipe
into the big pond. The fry were disappearing. Well,
we've got some really big turbot in the channel so we
had to go back and Fish and Game helped us and it is
to their credit. Habitat people understand things.
Ellot [ph] - Ellot works for Habitat now. He is
second in command under Kerry Howard, superb people.
Their answer wasn't to say no. Their answer was to
say how do we get this resource development and get to
yes and everybody wins. There are so many catchable
size grayling that are going over the spillway.
They're tagged. They are going through Little Chena,
Chena. We're starting to find tagged grayling up by
Delta.
So, was it done wrong in the past? Sure. We've all
learned. Do you check on these things? Do you do
things better? It's imperative. And, if I might, Mr.
Chairman, I'd like to talk about Pebble.
1:31:50 PM
ACTING COMMISSIONER IRWIN continued:
I think we should be asking about Pebble. There are
two clear issues to me on Pebble. I won't budge on
these two so you might as well know who I am and I
made sure the Governor and I were in synch. First and
foremost, I will never allow something to hurt a
renewable resource called a fishery that is world
class like Bristol Bay, period. That's not me and
that's not my philosophy and that is not this
Administration's philosophy.
The second part is I believe in resource development.
I, as a commissioner, don't even know what to judge on
yet. I've heard big things and big numbers but here's
what I'll expect because I believe in a process. If
we don't follow a process as a state - you randomly
chuck this out, maybe a borough throws this one out,
individuals throw this out, it's out of my - whatever.
We're not that kind of state. We've all taken a stand
we're going to be fair. You have to have a clear
process and what will I demand before my people start
looking at that process? I want to know financial
assurances. Where are the deep pockets that pay for
any problem?
Reclamation plans - don't tell me how you're going to
start it up until you can tell me how you are going to
shut it down. Tell me how you are going to - and this
is my background - I know the answers, what I should
be looking for. Tell me what you're going to do if
you have to interrupt in mid-stream. What are you
going to do with acid rock drainage? What if you're
in construction and have to stop? What type of
earthquake can you stand? We can't stand a 1 in a 100
chance of something going away in that area. We're
accountable. We, as Alaskans, are accountable. I can
tell you the dam at Fort Knox can withstand a .27G
ground acceleration. Well, if there's a big
earthquake in Fairbanks, my family and I have always
talked about we ought to go stand on the dam because
it will knock you down but it will be there. Can they
tie it into bedrock? What is the drainage pattern?
There are so many questions I would want to see before
we even start the process but it's got to be allowed
to be a fair process otherwise I know what companies
do. If they don't have a fair chance to explore, to
study it, to put plans together and to be evaluated
correctly, they go elsewhere. But it isn't the one
site that's in jeopardy and I'm not preaching here,
I'm passionate about it. The next place is in
jeopardy because of this reason, the next place
because of that reason. Mining, oil and gas,
fisheries, they all then get challenged. We need a
process and if there is something wrong with the
process, it's my job to listen and fix the process,
beef it up. It's also my job if there's duplication
to remove duplication. That works both ways. But
Pebble is so important in our state right now.
Resources - you all have a huge responsibility and I
know you recognize it. I have a huge responsibility
to do my part correctly so I hope that answers my
position on Pebble.
1:35:22 PM
REPRESENTATIVE SEATON commented legislators have heard that DNR
is giving the agriculture industry the attention it needs or
advocating for its expansion. He asked Acting Commissioner
Irwin his philosophy on how the state should be looking at
agriculture.
1:36:09 PM
ACTING COMMISSIONER IRWIN said he skipped out of a House Oil and
Gas Committee hearing yesterday to meet with two representatives
and an individual from the cruise industry. They talked about
the huge number of meals served on the cruise ships coming to
Alaska. He heard about one farmer who had to throw out 1,500
pounds of potatoes at the end of the year and yet the cruise
ship wanted them. He said the agricultural industry does get
the short end sometimes. He believes the industry needs to be
viewed as a viable industry. He believes niche markets exist.
He remarked that with the problems associated with mad cow
disease, the dairy farmers and others are facing tough issues
that are not unique to Alaska. However, huge opportunities
exist. He hopes DNR is able to focus on a business plan for
the agriculture industry; that is a goal.
1:38:47 PM
REPRESENTATIVE SEATON said shellfish farmers are feeling
uncomfortable with the ADF&G. Commissioner Lloyd told the House
Fisheries Committee he was not opposed to moving oversight of
the mariculture industry [to DNR] because it is not within
ADF&G's core mission. However, ADF&G is interested in
maintaining biological checks and balances. He said a bill is
being drafted that will shift mariculture industry oversight to
the Division of Agriculture in DNR. He asked Acting
Commissioner Irwin's opinion of that transfer.
1:40:16 PM
ACTING COMMISSIONER IRWIN replied the agriculture industry must
get attention but he honestly does not know whether the Division
of Agriculture is the best home for mariculture oversight. He
said he would be more comfortable with that transfer if he could
assure legislators the agriculture industry is going to be okay
before accepting oversight of mariculture. He offered to get
back to the committee with a response to that question.
1:40:52 PM
REPRESENTATIVE SEATON commented that DNR handles the permits for
mariculture sites but ADF&G does the biological permitting. He
said although the mariculture industry is small, the
participants are Alaskans located around the Gulf of Alaska.
1:41:38 PM
ACTING COMMISSIONER IRWIN said, in response to a previous
comment about Mr. LeFevre, he thinks the world of Dick LeFevre.
Mr. LeFevre started the large mine permitting project team for
DNR when the Fort Knox Mine started up. He cares about the
environment. He said when Mr. LeFevre returned to state
employment, his first goal was to get the Alaskan Grown logo
lawsuit resolved. Alaskan farmers were using the Alaskan Grown
logo but the state decided it was available for anyone's use and
numerous lawsuits were filed. He said the first day Mr. LeFevre
met with the litigants, the case was resolved.
1:42:55 PM
REPRESENTATIVE ROSES said in some of the agricultural leases,
businesses have difficulty borrowing money for infrastructure
because the lending institutions require a lease that is a
minimum of five years longer than the mortgage.
1:44:22 PM
ACTING COMMISSIONER IRWIN said that issue pertains to several
leasing scenarios and is important. He said he is aware of a
hunting guide who bid on an area that was a mess. He cleaned up
the mess and built temporary structures on that land. Now his
right to permanently stay on the land versus how that land would
be bid is problematic for the state. He disclosed that he
recently worked for the Golden Valley Electric Association. He
firmly believes in renewable energy and that Alaska should be
funding renewable energy sources with income from the gas line.
Electric cooperatives spend millions to find wind and then
construct huge test towers. Those cooperatives have no
discovery rights to those areas. He said that problem is
further compounded with geothermal energy sources. He agreed
with Representative Roses and said DNR needs to come up with
solid answers to leasing issues that are fair.
1:47:11 PM
REPRESENTATIVE ROSES said he believes the only fair way to
address that problem is to require a new bidder who wins a lease
from a former leaseholder to pay back the original leaseholder
for the infrastructure built on the leased land through some
sort of an amortization process.
1:48:09 PM
ACTING COMMISSIONER IRWIN said he is not sure of the right
procedure and wants to further discuss that issue with
Representative Roses at a later date.
1:48:35 PM
REPRESENTATIVE WILSON said she shares Representative Roses'
concern. She asked whether agricultural leases can contain an
option to renew clause so that farmers can get loans toward the
end of their leases.
1:49:22 PM
ACTING COMMISSIONER IRWIN acknowledged this problem must be
solved because real people are getting hurt. He said he also
has serious concerns about [the shortfall in] the agricultural
revolving loan fund. He questioned what the state is going to
do to help fund this industry.
1:50:12 PM
CO-CHAIR GATTO expressed concern about disappearing farm land in
the Mat-Su Valley due to residential construction on that land.
He asked if the state could buy agricultural rights to farm land
or to prevent the farmer from losing money while reserving farm
land and open spaces for the community.
1:51:04 PM
ACTING COMMISSIONER IRWIN said he doesn't know the answer right
now but is an issue he will think about. He questioned at what
point a farmer owns the land and can do what he chooses with it
after he has paid off the mortgage. He said that land belongs
to the farmer and he does not want to take that right away from
the owner.
1:52:26 PM
CO-CHAIR GATTO said he lived in Fairbanks during the 1960s when
some homesteaders said they had to sell their land because they
could no longer pay the taxes due to price appreciation. He is
aware of Mat-Su farmers whose land is now worth millions because
of price appreciation. Those people do not want to be run off
of their land. He said he was suggesting the need to find a way
to keep the land classified as agricultural.
1:54:08 PM
REPRESENTATIVE SEATON noted the House Resources Committee had a
hearing on the gas-to-liquids technology because that could
generate hundreds of thousands of barrels to keep TAPS going at
a low tariff rate. He asked whether DNR has been looking at any
projects that fit that description.
1:55:30 PM
ACTING COMMISSIONER IRWIN said DNR's primary goal with TAPS is
to ensure that independent producers are provided access to the
pipeline so that companies that find oil along with gas have a
way to ship that oil, Point Thomson is an example. He
furthered:
When you talk with the Mark Myers of the world, and
[there] are 200 to 400 million barrels of liquids
there, and the possibility that that might have to be
processed first before you get at the gas because both
AOGCC has to worry about molecule recovery, DNR has to
worry about molecule recovery and economics. It's a
requirement with the state we can't leave liquids
behind. So, from that standpoint we're very focused
on it. I have not been personally involved in any
state programs that I know of that are really pushing
gas to liquids but we're certainly aware of anything
the companies do. I'm not going to preclude that but
I think our priorities right now - our value is making
sure we have access for people who find oil, for the
facilities, and DNR wrote a really good report on that
and some of the issues with it shortly before I left
last time and then on the gas getting - and it's
paramount here that whatever gas line that we have so
it's expandable and people who find gas can monetize
it. No - specifically to your other question, I don't
know.
1:57:20 PM
REPRESENTATIVE SEATON said the other question revolves around a
wet gas line versus a dry gas line. TAPS could become
uneconomic because a very wet gas line is permitted to take the
wet liquids off. He continued:
And then TAPS sits there and becomes economic and we
have a tariff over $10 a barrel and those kinds of
things. Are we looking at that when we're balancing
the proposals that might come through as far as the
effect of not only on the gas line but on TAPS as
well?
1:58:01 PM
ACTING COMMISSIONER IRWIN said the answer is yes. An additional
question is where do the liquids in the gas go? Should the
state develop an additional business or should the liquids get
sent to the Henry Hub? The state needs to be very wise about
the value of these products. He said more career options will
occur when more value is added to products in state.
1:58:45 PM
CO-CHAIR JOHNSON said some bills are working their way through
the Legislature regarding the Division of Habitat and ADF&G. He
has heard that DNR and ADF&G do not enforce laws in equal ways
or that DNR does not have enforcement powers. He expressed
concern:
In the Habitat Division we enforce the laws.
We have the enforcement capabilities. I don't want to
send a signal that we're not enforcing habitat laws
because DNR either won't, can't or chooses not to.
Can you address that a little bit about the
enforcement and the things that DNR does with their
habitat division? Can you address that a little bit?
And then I think we'll be done.
1:59:45 PM
ACTING COMMISSIONER IRWIN said the Division of Habitat has been
so successful in DNR that it has seen 99 percent compliance in
habitat permits. On the other hand, the timber industry is very
upset with the Division because it will not agree to put pipes
in streams that contain fish. He heard a little bit of the
testimony against the Division of Habitat. That testimony was
terribly incorrect about the staff he knows in that division.
They would not compromise their principles. When those
employees were transferred to DNR, they were told not to
compromise their principles. He wanted the employees to figure
out how to get to yes without compromising habitat protection.
He has little tolerance for anyone who would damage Alaska's
habitats. He acknowledged DNR does not have enough employees to
police the state but it will follow-up when possible. He
acknowledged that DNR's enforcement efforts have been poor in
the past.
2:02:10 PM
REPRESENTATIVE ROSES congratulated Acting Commissioner Irwin on
his long marriage and noted today is his 39th wedding
anniversary.
2:02:44 PM
CO-CHAIR JOHNSON asked the will of the committee.
2:02:49 PM
CO-CHAIR GATTO moved to recommend that Acting Commissioner
Irwin's name be forwarded for confirmation at the joint session
of the Legislature.
CO-CHAIR JOHNSON noted the motion carried with no objections.
^Alaska Oil & Gas Conservation Commission
2:03:12 PM
CO-CHAIR JOHNSON announced that the next order of business is
the confirmation hearing on the appointment of Cathy Foerster to
the Alaska Oil & Gas Conservation Commission (AOGCC). He asked
Ms. Foerster, who was participating via teleconference, to tell
the committee why she would like to be on the commission.
2:03:26 PM
CATHY FOERSTER, appointee to the AOGCC, said she would like to
be considered for reappointment for three reasons. First, she
is grateful to serve the state because Alaska has given so much
to her and her family. Her children want to remain in Alaska
for the rest of their lives and she wants to help make that
possible for them. Second, the AOGCC is dealing with several
important and highly technical projects right now. It recently
completed a technical study to determine the appropriate
allowable gas off-take when it holds North Slope gas sales.
The AOGCC is in the early phases of a similar study for Point
Thomson, is updating its regulations for well safety systems,
and is in the conceptual phase of reviewing its regulations and
processes involving gas disposition, such as flaring. She
believes the state has invested a lot of time in her to
understand the complex issues involved. Getting a new person up
to speed mid-stream would set the state back. Third, as a
petroleum engineer, her time with the AOGCC has been an
opportunity to learn and contribute and she would like to
continue her participation. She is pleased to be on a well-
respected commission and to work with intelligent, honest, hard
working and ethical people. She thanked members for their
consideration.
2:06:18 PM
REPRESENTATIVE SEATON said it has been a pleasure talking with
Ms. Foerster and appreciates her openness and expertise.
2:06:40 PM
MS. FOERSTER thanked him.
2:06:49 PM
CO-CHAIR GATTO asked Ms. Foerster if she could comment on
committee hearings that addressed the Alaska Gas Inducement Act
(AGIA).
2:07:01 PM
MS. FOERSTER said she has opinions as a citizen and voter, but
as an AOGCC representative, she has to restrict her comments to
conservation of the resource. The AOGCC is looking at ensuring
that the right amount of gas is sold from Prudhoe so that the
oil resources are not lost, and at the conservation and waste
issues at Point Thomson. Right now there are 200 to 400 million
barrels of condensate, liquid hydrocarbon, at risk if there is
an immediate gas blow down in that reservoir. Regarding the
remaining aspects of AGIA, she only has personal opinions.
2:08:22 PM
CO-CHAIR JOHNSON said she is not expected to share her personal
opinions.
2:09:12 PM
CO-CHAIR JOHNSON thanked Ms. Foerster and noted there being no
further questions, public testimony was closed.
2:09:43 PM
REPRESENTATIVE ROSES said he did not want Ms. Foerster to assume
her confirmation is any less valuable than Acting Commissioner
Irwin's just because her hearing was shorter.
2:10:31 PM
REPRESENTATIVE SEATON said the House Resources Committee has
reviewed the qualifications of Ms. Foerster for reappointment to
the Alaska Oil and Gas Conservation Commission. He moved to
forward her name to the joint session of the Legislature for
consideration.
2:11:01 PM
CO-CHAIR JOHNSON noted without objection, the motion carried and
thanked members for their participation.
2:11:20 PM
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 2:11 p.m.
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