Legislature(2015 - 2016)CAPITOL 106

11/03/2015 03:30 PM RESOURCES

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Audio Topic
03:31:09 PM Start
03:32:19 PM SJR301
03:48:06 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SJR301 SUPPORT O&G LEASES ON ARCTIC OCS TELECONFERENCED
Moved CSSJR 301(RES) AM Out of Committee
-- Invited/Public Testimony --
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                        November 3, 2015                                                                                        
                           3:31 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Benjamin Nageak, Co-Chair                                                                                        
Representative David Talerico, Co-Chair                                                                                         
Representative Mike Hawker, Vice Chair                                                                                          
Representative Bob Herron                                                                                                       
Representative Craig Johnson                                                                                                    
Representative Paul Seaton                                                                                                      
Representative Andy Josephson                                                                                                   
Representative Geran Tarr                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Kurt Olson                                                                                                       
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Charisse Millett                                                                                                 
                                                                                                                              
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CS FOR SENATE JOINT RESOLUTION NO. 301(RES) AM                                                                                  
Opposing the  recent decisions  to cancel  future lease  sales in                                                               
the  Chukchi and  Beaufort Seas  and  to deny  the suspension  of                                                               
Shell and  Statoil's leases; urging the  United States Department                                                               
of the  Interior to  continue to promote  oil exploration  in the                                                               
Chukchi and  Beaufort Seas;  urging the  United States  Bureau of                                                               
Safety and  Environmental Enforcement  to reconsider  and approve                                                               
requests  from Shell  and Statoil  for lease  suspensions in  the                                                               
Chukchi Sea Planning Area and  Beaufort Sea Planning Area; urging                                                               
the Alaska  Congressional delegation  to continue its  efforts to                                                               
achieve consistent and equitable  outer continental shelf revenue                                                               
sharing  for the  state;  urging the  United  States Congress  to                                                               
provide  a means  for equitable  outer continental  shelf revenue                                                               
sharing  across  all coastal  oil  and  gas producing  states  to                                                               
ensure  the states  develop necessary  infrastructure to  support                                                               
outer  continental shelf  development and  preserve environmental                                                               
integrity;  and urging  the ongoing  efforts to  develop offshore                                                               
oil and gas in the Arctic Outer Continental Shelf.                                                                              
                                                                                                                                
     - MOVED CSSJR 301(RES) AM OUT OF COMMITTEE                                                                                 
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SJR301                                                                                                                  
SHORT TITLE: SUPPORT O&G LEASES ON ARCTIC OCS                                                                                   
SPONSOR(s): SENATOR(s) STOLTZE                                                                                                  
                                                                                                                                
10/30/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
10/30/15       (S)       RES                                                                                                    
10/31/15       (S)       RES AT 9:00 AM BUTROVICH 205                                                                           
10/31/15       (S)       Moved  CSSJR301(RES) Out of Committee                                                                  
10/31/15       (S)       MINUTE(RES)                                                                                            
11/02/15       (S)       RES RPT CS 5DP  SAME TITLE                                                                             
11/02/15       (S)       DP:    GIESSEL,    COSTELLO,    COGHILL,                                                               
                        STEDMAN, STOLTZE                                                                                        
11/03/15       (H)       RES AT 3:30 PM CAPITOL 106                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SENATOR BILL STOLTZE                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Speaking as  the sponsor,  introduced CSSJR                                                             
301(RES)am.                                                                                                                     
                                                                                                                                
BRANDON BREFCZYNSKI, Staff                                                                                                      
Senator Bill Stoltze                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Speaking  on  behalf  of Senator  Stoltze,                                                             
sponsor, presented the changes made in CSSJR 301(RES)am.                                                                        
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:31:09 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  BENJAMIN NAGEAK  called  the  House Resources  Standing                                                             
Committee  meeting  to  order  at 3:31  p.m.      Representatives                                                               
Herron,  Hawker,  Johnson,  Seaton,  Talerico,  and  Nageak  were                                                               
present  at  the  call  to   order.    Representatives  Tarr  and                                                               
Josephson   arrived    as   the   meeting   was    in   progress.                                                               
Representative Millett was also in attendance.                                                                                  
                                                                                                                                
            SJR301-SUPPORT O&G LEASES ON ARCTIC OCS                                                                         
                                                                                                                                
CO-CHAIR NAGEAK announced  that the only order  of business would                                                               
be CS  FOR SENATE JOINT  RESOLUTION NO. 301(RES) am  Opposing the                                                               
recent decisions to cancel future  lease sales in the Chukchi and                                                               
Beaufort Seas and  to deny the suspension of  Shell and Statoil's                                                               
leases; urging  the United States  Department of the  Interior to                                                               
continue to promote  oil exploration in the  Chukchi and Beaufort                                                               
Seas;   urging   the  United   States   Bureau   of  Safety   and                                                               
Environmental  Enforcement  to  reconsider and  approve  requests                                                               
from Shell and  Statoil for lease suspensions in  the Chukchi Sea                                                               
Planning Area and Beaufort Sea  Planning Area;  urging the Alaska                                                               
Congressional  delegation  to  continue its  efforts  to  achieve                                                               
consistent and equitable outer  continental shelf revenue sharing                                                               
for the  state; urging  the United States  Congress to  provide a                                                               
means  for  equitable  outer continental  shelf  revenue  sharing                                                               
across all  coastal oil  and gas producing  states to  ensure the                                                               
states   develop  necessary   infrastructure  to   support  outer                                                               
continental   shelf   development  and   preserve   environmental                                                               
integrity;  and urging  the ongoing  efforts to  develop offshore                                                               
oil and gas in the Arctic Outer Continental Shelf.                                                                              
                                                                                                                                
                                                                                                                                
3:32:19 PM                                                                                                                    
                                                                                                                                
SENATOR  BILL STOLTZE,  Alaska  State  Legislature, informed  the                                                               
committee  that  CSSJR  301(RES)am  reaffirms  the  legislature's                                                               
commitment  and makes  a strong  statement addressing  the recent                                                               
administrative  action to  "slam the  door on  [outer continental                                                               
shelf (OCS)]  activity."  The resolution  also includes defensive                                                               
language  regarding  nongovernmental environmental  organizations                                                               
that  are threatening  existing projects.   Senator  Stoltze said                                                               
the  [Third  Special Session  of  the  Twenty-Ninth Alaska  State                                                               
Legislature]  provided   a  window  of  opportunity   to  send  a                                                               
strongly-worded  resolution  to  the  federal  administration  in                                                               
order  to  support  the  efforts   of  the  Alaska  congressional                                                               
delegation.   He advised that  the resolution is relevant  to the                                                               
special session because all of  the natural gas pipeline projects                                                               
"factor in" the  resources of the Chukchi and Beaufort  Seas.  He                                                               
pointed out  that the committee  previously heard [HJR  301], the                                                               
House companion  measure, and therefore members  of the committee                                                               
are very  familiar with this  issue.   A Senate amendment  to the                                                               
resolution is very similar to HJR  4 [passed in the First Session                                                               
of the Twenty-Ninth Alaska State  Legislature], and is consistent                                                               
with  previous  messages.    He expressed  his  support  for  the                                                               
amendment.  Senator  Stoltze said  this  is  the proper  time  to                                                               
advance  long-term  projects in  OCS,  and  the resolution  is  a                                                               
vision of prosperity and economic development for Alaska.                                                                       
                                                                                                                                
3:37:31 PM                                                                                                                    
                                                                                                                                
BRANDON BREFCZYNSKI,  Staff, Senator  Bill Stoltze,  Alaska State                                                               
Legislature, informed the committee of  the changes made in CSSJR                                                               
301(RES)am.  On  page 3, line 13, a new  WHEREAS was added, which                                                               
read:                                                                                                                           
                                                                                                                                
     WHEREAS, under  the Gulf of Mexico  Energy Security Act                                                                    
     of 2006,  the federal government recognizes  the effect                                                                    
     that oil and gas  development in federal offshore areas                                                                    
     has on  the states of Alabama,  Louisiana, Mississippi,                                                                    
     and Texas, and recognizes  the contribution to national                                                                    
     energy,  security,  and   economic  interests  made  by                                                                    
     sharing with those states 37.5  percent of revenue from                                                                    
     leases covered  under phase one  of the Gulf  of Mexico                                                                    
     Energy Security Act  of 2006; phase two of  the Gulf of                                                                    
     Mexico  Energy   Security  Act  of  2006   expands  the                                                                    
     definition  of   "qualified  outer   continental  shelf                                                                    
     revenue"  and   continues  to   share  revenue   on  an                                                                    
     adjacency  factor  but   includes  an  annual  revenue-                                                                    
     sharing cap of $500,000,000  that applies through 2055;                                                                    
     and                                                                                                                        
                                                                                                                                
MR. BREFCZYNSKI said on page 3, line 22, a new WHEREAS was                                                                      
added, which read:                                                                                                              
                                                                                                                                
     WHEREAS the  federal government fails to  recognize the                                                                    
     same  effects on  and contributions  made by  other oil                                                                    
     and  gas producing  states  adjacent  to federal  outer                                                                    
     continental shelf areas, such as this state; and                                                                           
                                                                                                                                
MR. BREFCZYNSKI said on page 3, line 25, a new WHEREAS was                                                                      
added, which read:                                                                                                              
                                                                                                                                
     WHEREAS,  had outer  continental shelf  revenue sharing                                                                    
     of 37.5  percent been  in place  since 2003,  the state                                                                    
     would have  benefitted from  additional revenue,  in an                                                                    
     amount  estimated   to  be  between   $942,000,000  and                                                                    
     $1,300,000,000, for  necessary infrastructure,  such as                                                                    
     marine  ports,  airports,  utilities and  housing,  and                                                                    
     increased  state  services,  such   as  oil  spill  and                                                                    
     emergency  response  and environmental  monitoring  and                                                                    
     mitigation; and                                                                                                            
                                                                                                                                
MR. BREFCZYNSKI said on page 4, beginning on line 18, a new                                                                     
FURTHER RESOLVED was added, which read:                                                                                         
                                                                                                                                
     FURTHER  RESOLVED  that  the Alaska  State  Legislature                                                                    
     urges the Alaska   Congressional delegation to continue                                                                    
     its efforts  to achieve consistent and  equitable outer                                                                    
     continental shelf  revenue sharing  for this  state, as                                                                    
     is  granted  the  Gulf States  of  Alabama,  Louisiana,                                                                    
     Mississippi, and Texas; and be it                                                                                          
                                                                                                                                
MR.  BREFCZYNSKI  said  the  final  change  amended  the  FURTHER                                                               
RESOLVED  on   page  4,  beginning   on  line  30,   to  include,                                                               
"acknowledging the  need for equitable  revenue sharing  with oil                                                               
and gas  producing states adjacent  to federal  outer continental                                                               
shelf areas."                                                                                                                   
                                                                                                                                
3:39:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON remarked:                                                                                                 
                                                                                                                                
     ...  the  Obama   Administration  released  a  national                                                                    
     strategy  for the  Arctic region  in May  of 2013,  and                                                                    
     then in  January of 2014,  the implementation  plan for                                                                    
     this national strategy was released.  ... Effort No. 1,                                                                    
     advance  United   States  security  interests   of  the                                                                    
     National  Strategy  on  the Arctic  region,  there's  a                                                                    
     section  titled,  "Provide  for  Future  United  States                                                                    
     Energy  Security," and  I'll quote  here,  ... 'we  are                                                                    
     committed to  working with stakeholders,  industry, and                                                                    
     other  Arctic states  to  explore  the energy  resource                                                                    
     base, develop  and implement  best practice,  and share                                                                    
     the   experience   to    enable   the   environmentally                                                                    
     responsible production of oil  and natural gas, as well                                                                    
     as renewable energy.'  Canceling  leases in the Chukchi                                                                    
     and  the  Beaufort  do  not  seem  to  mesh  with  this                                                                    
     sentence.  The federal  government, in  my opinion,  is                                                                    
     not  following  their  own   strategy  for  the  Arctic                                                                    
     region.                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON further referred to the implementation                                                                    
plan, reading as follows [document not provided]:                                                                               
                                                                                                                                
     Would ensure  the safe  and responsible  development of                                                                    
     nonrenewable  energy resources  with  the objective  of                                                                    
     ensuring  safe,   responsible,  exploration,   and  the                                                                    
     development  onshore and  offshore Arctic  nonrenewable                                                                    
     energy resources in an environmentally sound manner.                                                                       
                                                                                                                                
REPRESENTATIVE  HERRON relayed  that  one of  the steps  includes                                                               
assessing  the   capacity  and  integrity  of   the  Trans-Alaska                                                               
Pipeline System to facilitate the  flow of additional onshore and                                                               
offshore oil resources  by the end of 2016.   He restated that by                                                               
canceling  the leases,  the federal  government is  going against                                                               
its own national strategy for the Arctic region and Alaska.                                                                     
                                                                                                                                
                                                                                                                                
3:42:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SEATON   appreciated   the  additions   to   the                                                               
resolution regarding Alaska sharing in its economic development.                                                                
                                                                                                                                
3:43:22 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  NAGEAK opened  public  testimony.   After  ascertaining                                                               
that there were no witnesses, public testimony was closed.                                                                      
                                                                                                                                
3:44:02 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  TALERICO  moved  to report  [CSSJR  301(RES)am  out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
zero fiscal note].   [There being no  objection, CSSJR 301(RES)am                                                               
was reported out of the House Resources Standing Committee.]                                                                    
                                                                                                                                
3:45:00 PM                                                                                                                    
                                                                                                                                
The committee took an at ease from 3:45 p.m. to 3:47 p.m.                                                                       
                                                                                                                                
3:48:06 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Resources Standing Committee meeting was adjourned at 3:48 p.m.                                                                 
                                                                                                                                

Document Name Date/Time Subjects
11.3.15 HSE RES CSSJR 301(RES) am.pdf HRES 11/3/2015 3:30:00 PM
11.3.15 HSE RES CSSJR 301(RES) Fiscal Note 10.31.15.pdf HRES 11/3/2015 3:30:00 PM