Legislature(1993 - 1994)
02/02/1994 05:10 PM Senate O&G
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* first hearing in first committee of referral
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= 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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