Legislature(1993 - 1994)
01/31/1994 08:15 AM House RES
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE RESOURCES STANDING COMMITTEE
January 31, 1994
8:15 a.m.
MEMBERS PRESENT
Representative Bill Hudson, Vice Chairman
Representative Con Bunde
Representative Pat Carney
Representative Joe Green
Representative David Finkelstein
MEMBERS ABSENT
Representative Bill Williams, Chairman
Representative John Davies
Representative Jeannette James
Representative Eldon Mulder
OTHER LEGISLATORS PRESENT
Representative Richard Foster
COMMITTEE CALENDAR
HB 384: "An Act eliminating the temporary character
of alternative procedures available to persons
who must show evidence of financial responsibility
before conducting noncrude oil operations; and
providing for an effective date."
MOVED OUT OF COMMITTEE WITH INDIVIDUAL
RECOMMENDATIONS
WITNESS REGISTER
LARRY LABOLLE, Chief of Staff
Representative Richard Foster's Office
State Capitol, Room 420
Juneau, Alaska 99801-1182
Phone: 465-3789
Position Statement: Gave an overview on HB 384 and answered
questions
MARY MCDOWELL, House Resources Committee Aide
Representative Bill Williams
State Capitol, Room 126
Juneau, Alaska 99801-1182
Phone: 465-3715
Position Statement: Answered a question
PREVIOUS ACTION
BILL: HB 384
SHORT TITLE: FINANCIAL REQMTS: NONCRUDE OIL OPERATIONS
SPONSOR(S): REPRESENTATIVE(S) FOSTER, Hoffman, Green
JRN-DATE JRN-PG ACTION
01/18/94 2098 (H) READ THE FIRST TIME/REFERRAL(S)
01/18/94 2098 (H) OIL & GAS, RESOURCES
01/24/94 (H) O&G AT 05:00 PM CAPITOL 124
01/24/94 (H) MINUTE(O&G)
01/26/94 2151 (H) O&G RPT 6DP
01/26/94 2152 (H) DP: G. DAVIS, OLBERG, KOTT,
SANDERS
01/26/94 2152 (H) DP: SITTON, GREEN
01/26/94 2152 (H) -ZERO FISCAL NOTE (DEC) 1/26/94
01/26/94 2160 (H) COSPONSOR(S): GREEN
01/31/94 (H) RES AT 08:15 AM CAPITOL 124
ACTION NARRATIVE
TAPE 94-7, SIDE A
Number 000
The House Resources Committee was called to order by Vice
Chairman Bill Hudson at 8:20 a.m. Members present at the
call to order were Representatives Hudson, Bunde, Carney,
and Green. Members absent were Representatives Williams,
Davies, James, Finkelstein and Mulder.
HB 384 - FINANCIAL REQMTS: NONCRUDE OIL OPERATIONS
Number 011
REPRESENTATIVE RICHARD FOSTER, PRIME SPONSOR, HB 384 told
committee members he was appreciative that they were hearing
HB 384 which was before the Oil and Gas Committee the
previous week. He asked his chief of staff to come forward
and give background information on HB 384.
LARRY LaBOLLE, CHIEF OF STAFF, REPRESENTATIVE RICHARD
FOSTER'S OFFICE, stated HB 384 is simple and
straightforward. It eliminates the sunset clause in the
current statute which requires direct action insurance for
noncrude operators. He said after the current legislation
became law, noncrude operators could not get $150 million
direct action insurance. Direct action means the insurer is
sued, not the perpetrator of the action.
MR. LaBOLLE said the insurance companies for several reasons
were unwilling to write the type of insurance policy
required. He mentioned the Department of Natural Resources
(DNR) did get waivers on the requirement before the
legislation allowed it. He said at that time, Senator Lyman
Hoffman asked for the current exemption which sunsets on
July 1, 1994.
MR. LaBOLLE told committee members that HB 384 removes the
sunset provision from the statute. He stated there was
testimony at the Oil and Gas Committee meeting from
operators who cannot get the insurance, and added that DNR
also testified at the meeting saying the department was in
support of HB 384, since operators still would be required
to show financial responsibility.
Number 036
(VICE CHAIRMAN HUDSON noted for the record that
REPRESENTATIVE FINKELSTEIN had joined the meeting at 8:25
p.m. and a QUORUM was not present).
REPRESENTATIVE CON BUNDE asked if HB 384 speaks only to
direct action insurance and not insurance at another level
which operators have.
MR. LaBOLLE responded HB 384 speaks only to the direct
action insurance requirement and still does not provide any
type of waiver from DNR oversight.
VICE CHAIRMAN HUDSON asked if there still is a federal
requirement for insurance.
Number 050
MR. LaBOLLE replied the requirement for insurance still
exists on the federal level, but the problem is not the
requirement for insurance, the problem lies in the
requirement for direct access.
VICE CHAIRMAN HUDSON recalled when the current statute was
enacted, there was a lot of concern about whether or not the
insurance industry would be able to provide the type of
insurance required, and whether or not small operators would
be able to afford it if it were available.
REPRESENTATIVE JOE GREEN made a motion to MOVE HB 384 from
committee with INDIVIDUAL RECOMMENDATIONS.
VICE CHAIRMAN HUDSON asked if there were any objections.
Hearing none, the MOTION PASSED.
ANNOUNCEMENTS
VICE CHAIRMAN HUDSON advised the committee they would meet
on Wednesday, February 2 at 8:00 a.m. for a briefing on the
federal wetlands policy in Alaska. He said the presentation
will be given by Alvin Ewing of the United States
Environmental Protection Agency. Paul Rusanowski of the
Governor's Office, Division of Governmental Coordination,
will give a briefing on the administration's perspective on
wetlands policy and federal activity in this area.
REPRESENTATIVE GREEN asked if there will be any
representatives from the Corps of Engineers at the meeting.
MARY McDOWELL, HOUSE RESOURCES COMMITTEE AIDE,
REPRESENTATIVE BILL WILLIAMS, responded the Corps of
Engineers declined the invitation. She met with Paul
Rusanowski earlier and he planned to ask them again.
ADJOURNMENT
There being no further business to come before the House
Resources Committee, Vice Chairman Hudson adjourned the
meeting at 8:30 a.m.
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