Legislature(1993 - 1994)
02/02/1994 05:10 PM Senate O&G
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE SPECIAL COMMITTEE ON OIL & GAS February 2, 1994 5:10 P.M. MEMBERS PRESENT Senator Loren Leman, Chairman Senator Rick Halford Senator Bert Sharp Senator Judith Salo Senator Al Adams MEMBERS ABSENT None COMMITTEE CALENDAR SENATE BILL NO. 239 "An Act relating to evidence of financial responsibility provided by persons who conduct noncrude oil operations; and providing for an effective date." PREVIOUS ACTION SB 239 - See Oil & Gas minutes dated 1/24/94. WITNESS REGISTER Ray Gillespie Petro Marine, Crowley Marine, Delta Western 9478 Riverbend Court Juneau, Ak. 99801 POSITION STATEMENT: Supported CS to SB 239. Mike Conway, Director Division of Spill Prevention and Response Department of Environmental Conservation 410 Willoughby Ave., Suite 105 Juneau, Ak. 99801-1795 POSITION STATEMENT: Supported CS to SB 239. ACTION NARRATIVE TAPE 94-3, SIDE A Number 001 SENATOR LEMAN called the Special Committee on Oil and Gas meeting to order at 5:10 p.m. and announced SB 239 (NONCRUDE OIL OPERATIONS:FINANC'L RESPB'TY) to be up for consideration. SENATOR SHARP moved to adopt the CS to SB 239 dated 1/26/94, 8-LS1408E. There were no objections and it was so ordered. SENATOR SHARP explained that his amendment adds to section 46.04.040 (b), reduction of the financial responsibility for on-shore exploration and production. He said that other states have either no financial responsibility for on-shore drilling except in California where there is a $1 million financial responsibility requirement within 30 miles of the coast line. Number 84 SENATOR ADAMS noted that the present title is too broad. He suggested using, "An Act extending the authority of the Department of Environmental Conservation to grant waivers for evidence of financial responsibility for certain persons who conduct non-crude oil operations." SENATOR LEMAN said that title would not allow the incorporation of section 1 of the CS. RAY GILLESPIE, Crowley Maritime, Delta Western, Petro-Marine, suggested repealing the temporary nature of the financial responsibility requirement. It was noted that the CS already addressed that issue. SENATOR SALO asked Senator Sharp to explain the intent of the amendment. SENATOR SHARP clarified that the CS repeals section 6 which is the sunset provision for non-crude shippers. The other change brings financial responsibility for onshore oil exploration down to $1 million using the same wording in SB 150. Number 180 MIKE CONWAY, Director, Division of Spill Prevention and Response, said they support repealing the temporary waiver provision. They support Senator Sharp's changes. He said that Mead Treadwell, Department of Environmental Conservation, supported the concept as well. SENATOR ADAMS asked him why this language should not go forward in SB 150. MR. CONWAY explained that these particular provisions deal with financial responsibility which are in the DEC statutes. So the reason would be for consistency with all the financial responsibility statutes. Number 215 SENATOR HALFORD moved to pass CS to SB 239 (Oil and Gas) with individual recommendations. There were no objections and it was so ordered. SENATOR LEMAN adjourned the meeting at 5:20 p.m.
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