Legislature(2021 - 2022)BARNES 124
03/10/2021 01:00 PM House RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| HJR12 | |
| HB81 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HJR 12 | TELECONFERENCED | |
| += | HB 81 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
March 10, 2021
1:03 p.m.
MEMBERS PRESENT
Representative Josiah Patkotak, Chair
Representative Grier Hopkins, Vice Chair
Representative Zack Fields
Representative Calvin Schrage
Representative Sara Hannan
Representative George Rauscher
Representative Mike Cronk
Representative Ronald Gillham
Representative Tom McKay
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE JOINT RESOLUTION NO. 12
Urging the United States Department of the Interior, Bureau of
Land Management, to honor the recent lease sales and proceed
with permitting in the Arctic National Wildlife Refuge; urging
the President of the United States to defend the 2020 Record of
Decision approving the Coastal Plain Oil and Gas Leasing Program
in the Arctic National Wildlife Refuge; opposing designation of
the Arctic National Wildlife Refuge as a National Monument; and
urging the Alaska delegation in Congress to uphold sec. 20001 of
the Tax Cuts and Jobs Act of 2017.
- MOVED CSHJR 12(RES) OUT OF COMMITTEE
HOUSE BILL NO. 81
"An Act authorizing the commissioner of natural resources to
modify a net profit share lease."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HJR 12
SHORT TITLE: ENDORSING ANWR LEASING; RELATED ISSUES
SPONSOR(s): REPRESENTATIVE(s) RAUSCHER
02/18/21 (H) READ THE FIRST TIME - REFERRALS
02/18/21 (H) RES, STA
02/19/21 (H) STA REFERRAL REMOVED
02/19/21 (H) BILL REPRINTED
03/01/21 (H) RES AT 1:00 PM BARNES 124
03/01/21 (H) -- MEETING CANCELED --
03/03/21 (H) RES AT 1:00 PM BARNES 124
03/03/21 (H) -- MEETING CANCELED --
03/08/21 (H) RES AT 1:00 PM BARNES 124
03/08/21 (H) Heard & Held
03/08/21 (H) MINUTE(RES)
03/10/21 (H) RES AT 1:00 PM BARNES 124
BILL: HB 81
SHORT TITLE: OIL/GAS LEASE:DNR MODIFY NET PROFIT SHARE
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/18/21 (H) READ THE FIRST TIME - REFERRALS
02/18/21 (H) RES, FIN
03/05/21 (H) RES AT 1:00 PM BARNES 124
03/05/21 (H) Heard & Held
03/05/21 (H) MINUTE(RES)
03/10/21 (H) RES AT 1:00 PM BARNES 124
WITNESS REGISTER
DEBBIE MILLER
Juneau, Alaska
POSITION STATEMENT: Testified in opposition to HJR 12.
DOROTHY O'DONNELL
Fairbanks, Alaska
POSITION STATEMENT: Testified in opposition to HJR 12.
FRANK WILLIAMS
Fairbanks, Alaska
POSITION STATEMENT: Testified in opposition to HJR 12.
ALAN WEITZNER, Executive Director
Alaska Industrial Development and Export Authority (AIDEA)
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HJR 12.
JULIANNE WARREN
Fairbanks, Alaska
POSITION STATEMENT: Testified in opposition to HJR 12.
CONNOR ODOM
Fairbanks, Alaska
POSITION STATEMENT: Testified in opposition to HJR 12.
LOIS EPSTEIN
The Wilderness Society
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to HJR 12.
ABIGAIL STESSEN
Fairbanks, Alaska
POSITION STATEMENT: Testified in opposition to HJR 12.
SONJA BENSON
Fairbanks, Alaska
POSITION STATEMENT: Testified in opposition to HJR 12.
NAURI TOLER
Eagle River, Alaska
POSITION STATEMENT: Testified in opposition to HJR 12.
FAY HEROLD
Seward, Alaska
POSITION STATEMENT: Testified in opposition to HJR 12.
KAY BROWN
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to HJR 12.
JOSHUA KNICELY
Location not provided
POSITION STATEMENT: Testified in opposition to HJR 12.
JHONNY MEZA, Commercial Section Manager
Division of Oil and Gas
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Provided information and answered questions
during the hearing on HB 81.
ACTION NARRATIVE
1:03:00 PM
CHAIR JOSIAH PATKOTAK called the House Resources Standing
Committee meeting to order at 1:03 p.m. Representatives * were
present at the call to order. Representatives * arrived as the
meeting was in progress.
HJR 12-ENDORSING ANWR LEASING; RELATED ISSUES
1:03:53 PM
CHAIR PATKOTAK announced that the first order of business would
be HOUSE JOINT RESOLUTION NO. 12 Urging the United States
Department of the Interior, Bureau of Land Management, to honor
the recent lease sales and proceed with permitting in the Arctic
National Wildlife Refuge; urging the President of the United
States to defend the 2020 Record of Decision approving the
Coastal Plain Oil and Gas Leasing Program in the Arctic National
Wildlife Refuge; opposing designation of the Arctic National
Wildlife Refuge as a National Monument; and urging the Alaska
delegation in Congress to uphold sec. 20001 of the Tax Cuts and
Jobs Act of 2017.
1:04:16 PM
CHAIR PATKOTAK opened public testimony on HJR 12.
1:04:50 PM
DEBBIE MILLER testified in opposition to HJR 12. She said that
she first testified in defense of the Arctic National Wildlife
Refuge (ANWR) in 1985, and that she believes that the
legislature should not honor the recent coastal plain lease
sale, not proceed with permitting in ANWR, and that Section
20001 of the Tax Cuts and Jobs Act of 2017 should be repealed,
as it violates the original purpose of ANWR, as well as the
National Wildlife Refuge [System] Administration Act. She said
that oil development is not compatible with the wildlife,
wilderness, and recreational value of ANWR. She further
explained that the Eisenhower Administration gave 20 million
acres of federal land to the state for resource development, and
that there are now 1,113 active leases on the North Slope, and
that there is a lot of room for active oil development but that,
due to climate change, ANWR should not be open to drilling as it
may harm the wildlife. She said that people of Canada and
Alaska, as well as Inupiat, are opposed to this and that it's a
divisive issue. She opined that the state has many choices that
are wiser than drilling in a federally-protected wildlife refuge
which the majority of Americans would prefer kept as it is.
1:08:52 PM
DOROTHY O'DONNELL testified in opposition to HJR 12. She read a
statement as follows:
To those of you who plan to support this bill, I know
you'll ignore the righteous voices of concerned
Alaskans speaking up about the desecration of the
birthing grounds for the Porcupine caribou herd, about
the Gwich'in people who have sacred connection and
rely on these lands, and the climate crisis, which the
Arctic is affected by at disproportional rates. If
our state's wellbeing isn't reason enough to oppose
this resolution, then consider the economic reasons of
this greedy exploitation will not succeed. No major
oil companies bid on the leases in ANWR. They knew
this was a fiscal and reputational risk. The rest of
the world is rapidly moving away from this destructive
industry. If the state invested in this project,
these financial contributions would be obsolete within
years when we inevitably make the transition to
renewable resources. Please stand for Alaska in
opposing HJR 12. Thank you.
1:10:17 PM
FRANK WILLIAMS testified in opposition to HJR 12. He said that
he is a long-time Alaskan and opposes this resolution for all of
the reasons the committee has already heard. He offered his
understanding that a number of Alaskans oppose "further actions
like this."
1:11:20 PM
ALAN WEITZNER, Executive Director, Alaska Industrial Development
and Export Authority (AIDEA), testified in support of HJR 12, as
follows:
I'm calling in today to express AIDEA's support for
HJR 12. At AIDEA, our mission is to promote job
growth and spur economic development within Alaska.
We participated in a 1002 Area Leasing program in
order to preserve Alaska's ability to access, and
responsibly develop, our state's abundant natural
resources. We support the Voice of the Arctic
Inupiat, a coalition of 24 North Slope tribal
councils, municipal governments, and Alaska Native
corporations, which includes the Native village of
Kaktovik and the Kaktovik Inupiat Corporation.
Together, members of the Voice have advocated, and
continue to advocate, for responsible development of
oil and gas resources on the North Slope, specifically
within the 1002 area of ANWR.
Much of the economic development and jobs supported
across our North Slope communities has resulted from
the responsible development of Alaska's oil and gas
resources. Public funding from taxes on oil and gas
infrastructure has significantly contributed to
economic security within those communities, and
provided revenue to fund local services, schools,
health clinics, housing, emergency response, water and
wastewater, heat and electric utilities, and countless
essential services. As for the State of Alaska, we
all benefit through half of the fixed royalty of 16.67
percent on any increased production from the area's
development, and this is in addition to the half of
proceeds that are earned from the 1002 Area Lease
sale. We also grow the Permanent Fund for our future
generations.
We believe that the passage of this resolution will
preserve Alaska's ... rights designated under [Alaska
National Interest Lands Conservation Act] ANILCA, and
the rights conveyed to Alaska Native corporations and
its communities. It is our hope that the result from
the passage of HJR 12 would be for President Biden and
his Administration to spotlight Alaska as the leader
it is for responsible resource development, and to not
restrict the development of our own resources or
encroach on the local communities' self-determination.
We ask that instead, the Biden Administration uphold
Alaska as the gold standard of American innovation,
responsibility, and sustainability.
1:14:18 PM
JULIANNE WARREN testified in opposition to HJR 12. She recalled
hearing the testimony of a Gwich'in hunter and language-keeper
when this legislation was heard during the Thirtieth Alaska
State Legislature, and she opined that his testimony was an
example of the people who are most affected by plans for ANWR
not being heard. She said that she recommends The Man Who
Became a Caribou to learn about the connection between the
Gwich'in people and caribou, and that those who want to continue
drilling have a narrative based on untrue beliefs. She ended by
saying, "Please listen, and don't pass this bill."
1:17:35 PM
CONNOR ODOM testified in opposition to HJR 12. He said that
there is "no such thing as sustainable use of oil," future
generations are "condemned to basically a climate hell," and oil
production is irresponsible. He said that by putting oil "into
the atmosphere, you're not only condemning people to death,
you're condemning entire ecosystems," and that harm to the
planet should be considered.
1:19:21 PM
LOIS EPSTEIN, The Wilderness Society, testified in opposition to
HJR 12. She read a statement as follows:
[The] Wilderness Society has worked to protect
Alaska's arctic since our founding in the 1930s. I
will begin my testimony by quoting excerpts from
former Deputy Commissioner of [the Department of]
Revenue and former AIDEA board member Larry Persily.
In his January 29 piece in the Anchorage Daily News,
Persily said that, other than AIDEA bidding on Arctic
Refuge leases on January 6, "the only other bidders
were an Anchorage-based real estate development firm
and a U.S. subsidiary of an Australian company whose
stock trades at around a penny per share. If any
loyal company with a lot of money to risk on a high-
cost, highly controversial arctic project had wanted
to explore in ANWR, it would have submitted its own
bid, but no one did. The industry is turning away
from expensive, risky, controversial projects that can
take a decade or longer to produce cash. The world is
turning its attention away from oil, especially high-
profile, headline-grabbing Arctic development."
While you may not trust what I have to say, the
legislature ought to listen to Larry Persily.
Alaska's single-minded approach to economic
development, i.e. focusing only on resource
development, largely on oil, needs to change. Alaska
now gets more money from investments on an annual
basis than from oil. There are lots of problems with
HJR 12, including the 2,000-acre myth that federal
legislators concocted to mislead the public, and
ignoring BP's major North Slope pipeline spill,
Representative (indisc.) North Slope blowout, and the
role the refuge's oil would play in worsening climate
change. Additionally, HJR 12 does not maintain the
ecological and wilderness treasure that the Arctic
Refuge coastal plain represents, nor the areas
important to the Gwich'in people of Alaska and Canada.
Though that stands to benefit from Arctic refuge
involvement, including the Alaska Oil & Gas
Association, Kaktovik Inupiat Corporation, and Arctic
Slope Regional Corporation, are pushing hard for this
resolution to pass. With its problematic "whereas"
statements and its single-minded focus on oil and gas
development at the expense of a national treasure,
that is essential habitat for subsistence, we
respectfully ask legislators to consider the facts and
vote "no" on HJR 12.
1:22:12 PM
ABIGAIL STESSEN testified in opposition to HJR 12. She said
that this is the time to diversify the energy economy instead of
developing more oil. She said there are more difficulties for
development, such as the decreasing longevity of ice roads. She
mentioned climate change and warned that continued development
of oil would cost the state more than monetary value. She
stated that it would be better to plan for the climate crisis
rather than "increasing the severity of it through promoting oil
and gas development here."
1:23:58 PM
SONJA BENSON testified in opposition to HJR 12. She said that
the coastal plain should be preserved, and that she doesn't
think this is the right time to open a rare, pristine area that
supports more than 170 species of birds, which migrate all over
the world. She said that it is an international treasure which
would be impacted by oil development, which is not compatible
with wilderness values. She said that with the climate crisis,
she supports renewable resources.
1:26:50 PM
NAURI TOLER testified in opposition to HJR 12. She said she
agreed with the comments that had been made by previous
testifiers. She said that she understands that business exist
to make a profit, but observed that business is "not necessarily
designed to help our cultural ... way of life."
1:29:02 PM
FAY HEROLD testified in opposition to HJR 12. She said that the
effects of climate change are visible in Alaska. She opined
that it's time to transition away from fossil fuel, and noted
that the oil companies, as well as the rest of the planet, are
transitioning also. She said that the state must consider
diversifying energy, and put energy into different resources
instead of oil lease sales. She stressed that, for the sake of
future generations, the state must change.
1:31:45 PM
KAY BROWN testified in opposition to HJR 12. She said that she
was the Director of Oil & Gas in the 1980s, and at that time she
supported oil development, but she has changed her mind over the
years and now feels it's a mistake. She noted that she is
"especially troubled" by the effects of climate change, and that
Alaska's leaders need to face the challenge. She said that
Alaska needs to phase out existing production and shouldn't be
undertaking new oil development. She opined there are many
"inaccuracies" in HJR 12 that should be addressed.
1:34:16 PM
JOSHUA KNICELY testified in opposition to HJR 12. He said that
"we are moving away from fossil fuels" out of necessity, climate
change is getting worse, and development of fossil fuels is
clinging to the past. He noted that the state can move into the
future or cling to "this terrible thing" that will hurt Alaska
in the future.
1:35:48 PM
CHAIR PATKOTAK, after ascertaining that there was no one else
wished to testify, closed public testimony on HJR 12.
1:36:11 PM
REPRESENTATIVE HOPKINS moved to adopt Amendment 1, labeled 32-
LS0413/B.1, Nauman, 3/8/21, which read as follows:
Page 3, following line 14:
Insert new material to read:
"WHEREAS support for development of the coastal plain
of the Arctic National Wildlife Refuge by many state
residents is predicated on the maximum employment of
the in-state workforce during all phases of
development and operation; and"
1:36:19 PM
CHAIR PATKOTAK objected for the purpose of discussion.
1:36:26 PM
REPRESENTATIVE HOPKINS explained that Amendment 1 would be
inserted into the discussion on economic impact and asked for
support from the committee to further support Alaskan jobs with
this resolution.
1:37:30 PM
REPRESENTATIVE RAUSCHER, as prime sponsor of HJR 12, said that
he views Amendment 1 as friendly and that he supports it.
1:37:55 PM
CHAIR PATKOTAK removed his objection. There being no further
objection, Amendment 1 was adopted.
1:38:32 PM
REPRESENTATIVE RAUSCHER thanked committee members for their time
and for the thoughtfulness of Amendment 1. He acknowledged the
Alaska Support Industry Alliance, the Alaska Chamber, and the
Resource Development Council, and recognized the March 8, 2021,
testimony of Matthew Rexford of the Kaktovik Inupiat Corporation
as especially helpful.
1:40:46 PM
REPRESENTATIVE MCKAY spoke in support of HJR 12, [as amended],
and expressed his belief that drilling operations do not affect
the caribou.
CHAIR PATKOTAK said the goal is always a balance between the
village way of life and the economy.
1:43:13 PM
REPRESENTATIVE FIELDS said that the majority of the residents in
his district oppose development in ANWR for environmental
reasons. He expressed his belief that climate change must be
addressed, but said he would be inclined to defer to Chair
Patkotak.
CHAIR PATKOTAK replied that he is from Barrow, and he noted the
pros and cons of oil operations, expressing that natural gas,
among other resources, has benefited his constituents as one of
the "tangible, immediate, life-changing things."
1:45:47 PM
REPRESENTATIVE CRONK expressed his belief that Alaska is the
safest place in the world when it comes to resource production.
1:46:33 PM
REPRESENTATIVE GILLHAM said that caribou are not affected [by
the activity] and that animals have right of way when they are
in the area; everything shuts down when an animal is in the
vicinity. He also indicated that he would defer to Chair
Patkotak as a resident of the area.
1:47:20 PM
REPRESENTATIVE HOPKINS said that many of the people who
testified were from his and a neighboring district, and he is
looking forward to being a part of bodies that act on climate
change in the future. He noted the work of U.S. Senator Lisa
Murkowski and of Secretary Deb Haaland as the first indigenous
Secretary of the Interior.
CHAIR PATKOTAK noted the statements referring to deference to
himself and his district, and he remarked that it's good to
strike a balance between opinions for and against the issue.
1:49:43 PM
REPRESENTATIVE HANNAN said that, insofar as hundreds of Alaskans
and her own constituents oppose HJR 12, she would be voting no
on HJR 12 on the House floor.
1:50:28 PM
REPRESENTATIVE HOPKINS moved to report HJR 12, as amended, out
of committee with individual recommendations and the
accompanying fiscal notes. There being no objection, CSHJR
12(RES) was reported out of the House Resources Standing
Committee.
1:50:50 PM
The committee took an at-ease from 1:50 p.m. to 1:54 p.m.
HB 81-OIL/GAS LEASE:DNR MODIFY NET PROFIT SHARE
1:54:41 PM
CHAIR PATKOTAK announced that the final order of business would
be HOUSE BILL NO. 81 "An Act authorizing the commissioner of
natural resources to modify a net profit share lease."
1:55:25 PM
JHONNY MEZA, Commercial Section Manager, Division of Oil and
Gas, Department of Natural Resources, provided information on HB
81. He noted the questions posed by committee members during
the March 5, 2021, meeting and said that the Department of
Natural Resources (DNR) has provided answers.
CHAIR PATKOTAK advised the committee members that DNR had
emailed the answers to their offices.
1:57:22 PM
CHAIR PATKOTAK opened public testimony on HB 81. After
ascertaining that no one wished to testify, he closed public
testimony.
CHAIR PATKOTAK announced that HB 81 was held over.
1:58:33 PM
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 1:58 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 81 Letter of Support Alaska Oil and Gas Association 3.9.2021.pdf |
HRES 3/10/2021 1:00:00 PM HRES 3/17/2021 1:00:00 PM HRES 3/19/2021 1:00:00 PM |
HB 81 |
| HJR 12 Amendment Hopkins 3.10.2021.pdf |
HRES 3/10/2021 1:00:00 PM |
HJR 12 |
| HJR 12 Testimony Received by 3.9.2021.pdf |
HRES 3/10/2021 1:00:00 PM |
HJR 12 |
| HJR 12 Research AOGA Statement on Federal Leasing Ban 01.27.2021.pdf |
HRES 3/1/2021 1:00:00 PM HRES 3/8/2021 1:00:00 PM HRES 3/10/2021 1:00:00 PM |
HJR 12 |
| HJR 12 Sponsor Statement 2.22.2021.pdf |
HRES 3/1/2021 1:00:00 PM HRES 3/8/2021 1:00:00 PM HRES 3/10/2021 1:00:00 PM |
HJR 12 |
| HJR 12 Supporting Document ADN Editorial 3.1.2021.pdf |
HRES 3/8/2021 1:00:00 PM HRES 3/10/2021 1:00:00 PM |
HJR 12 |
| HJR 12 Testimony Matthew Rexford Kaktovik Inupiat Corporation 2.28.2021.pdf |
HRES 3/8/2021 1:00:00 PM HRES 3/10/2021 1:00:00 PM |
HJR 12 |
| HJR 12 FN NA.pdf |
HRES 3/8/2021 1:00:00 PM HRES 3/10/2021 1:00:00 PM |
HJR 12 |
| HJR 12 Testimony AOGA 3.8.2021.pdf |
HRES 3/8/2021 1:00:00 PM HRES 3/10/2021 1:00:00 PM |
HJR 12 |
| HJR 12 Testimony Tom Walsh AK Support Industry Alliance 3.8.2021.pdf |
HRES 3/8/2021 1:00:00 PM HRES 3/10/2021 1:00:00 PM |
HJR 12 |
| HB 81 Presentation to HRES 3.5.2021.pdf |
HRES 3/5/2021 1:00:00 PM HRES 3/10/2021 1:00:00 PM HRES 3/19/2021 1:00:00 PM |
HB 81 |
| HB 81 Sectional Analysis Version A 2.23.2021.pdf |
HRES 3/5/2021 1:00:00 PM HRES 3/10/2021 1:00:00 PM HRES 3/17/2021 1:00:00 PM HRES 3/19/2021 1:00:00 PM |
HB 81 |
| HB 81 Sponsor Statement 1.28.21.pdf |
HRES 3/5/2021 1:00:00 PM HRES 3/10/2021 1:00:00 PM HRES 3/17/2021 1:00:00 PM HRES 3/19/2021 1:00:00 PM |
HB 81 |
| HB 81 Support DNR NPSL One Pager 3.5.2021.pdf |
HRES 3/5/2021 1:00:00 PM HRES 3/10/2021 1:00:00 PM HRES 3/17/2021 1:00:00 PM HRES 3/19/2021 1:00:00 PM |
HB 81 |
| HJR 12 Testimony Received by 3.10.2021.pdf |
HRES 3/10/2021 1:00:00 PM |
HJR 12 |
| HJR 12 Testimony Received After Committee 3.10.2021.pdf |
HRES 3/10/2021 1:00:00 PM |
HJR 12 |