Legislature(1993 - 1994)
02/14/1994 04:43 PM Senate RES
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SENATE RESOURCES COMMITTEE
February 14, 1994
4:43 P.M.
MEMBERS PRESENT
Senator Mike Miller, Chairman
Senator Loren Leman, Vice Chairman
Senator Dave Donley
MEMBERS ABSENT
Senator Steve Frank
Senator Drue Pearce
Senator Al Adams
Senator Fred Zharoff
COMMITTEE CALENDAR
SENATE BILL NO. 308
"An Act modifying administrative procedures and decisions by state
agencies that relate to uses and dispositions of state land,
property, and resources, and to the interests within them, and that
relate to land, property, and resources, and to the interests
within them, that are subject to the coastal management program;
and providing for an effective date."
SB 240 (MUNICIPAL TAX CREDIT/HABITAT PROTECTION) WAS SCHEDULED, BUT
NOT HEARD THIS DATE.
SB 217 (INCREASE LAND GRANT TO UNIV. OF ALASKA) WAS SCHEDULED, BUT
NOT HEARD THIS DATE.
SCR 13 (GOLD RUSH CENTENNIAL DECADE) WAS SCHEDULED, BUT NOT HEARD
THIS DATE.
PREVIOUS ACTION
SB 308 - No previous action to record.
SB 240 - See Resources minutes dated 2/4/94 and 2/14/94.
SB 217 - See Health, Education & Social Services minutes dated
1/26/94 and 2/2/94.
SCR 13 - No previous action to record.
WITNESS REGISTER
Jim Eason, Director
Division of Oil and Gas
Department of Natural Resources
P.O. Box 107034
Anchorage, Ak. 99510-0734
POSITION STATEMENT: Supported SB 308
Senator Little
Capitol Building
Juneau, Ak. 99801-1182
POSITION STATEMENT: Commented on SB 308.
George Findling, Manager
Public Relations
Arco Alaska
Anchorage, Ak. 99510
POSITION STATEMENT: Supported SB 308.
Darcy Richards, Program Director
Aleutians West Coastal Research Service Area
Anchorage, Ak 99510
POSITION STATEMENT: Commented on SB 308.
Mike Wenig
Trustees of Alaska
725 Christensen Dr.
Anchorage, Ak. 99501
POSITION STATEMENT: Commented on SB 308.
Navette Bowen, Alaska Marine Conservation council
Anchorage, Ak.
POSITION STATEMENT: Commented on SB 308
Susan Flensburg
Bristol Bay Coastal Resource Service Area
P.O. Box 849
Dillingham, Ak. 99576
POSITION STATEMENT: Commented on SB 308.
Connie Gatling
Kenai-Soldotna
POSITION STATEMENT: Commented on SB 308.
Mike O'Maera
P.O. Box 1125
Homer, Ak. 99603
POSITION STATEMENT: Commented on SB 308.
Gail Parsons
P. O. N4, Box 2397
Homer, Ak. 99603
POSITION STATEMENT: Commented on SB 308.
Hal Spence
Homer News
3482 Landings St.
Homer, Ak. 99603
POSITION STATEMENT: Commented on SB 308.
Tom Lohman
North Slope Borough
P.O. Box 69
Barrow, Ak. 99723
POSITION STATEMENT: Commented on SB 308.
Riki Ott
United Fishermen of Alaska
P.O. Box 1430
Cordova, Ak. 99574
POSITION STATEMENT: Opposed SB 308.
ACTION NARRATIVE
TAPE 94-7, SIDE A
Number 001
CHAIRMAN MILLER called the Resources Committee meeting to order at
4:43 p.m. and announced SB 308 (ADMIN ACTION RE LAND/RESOURCES/
PROPERTY) to be up for consideration.
JIM EASON, Director, Division of Oil and Gas, supported SB 308. He
said it is intended to clarify the intent of the legislature
regarding how best interest findings and coastal zone consistency
determinations, under Title 38 and Title 46, are to be developed.
He explained that it makes more explicit the Director's authority
to establish the scope of administrative review for a disposal and
the written findings in support of a best interest finding and a
coastal zone consistency determination. The scope, under this
legislation, will be limited to those reasonably foreseeable, non-
speculative, direct effects. The written decision will be designed
to address those affects.
He said the scope would also be limited to the applicable laws and
facts pertaining to the land, resources, and property that the
Director finds material to the determination - and that are known
or made known during the review of the findings. The scope may be
limited to the issues based upon the law and facts and the nature
of the uses which are found to be relevant.
This legislation will also address the issue of sequencing or the
ability of the Director to make findings for sales and disposals in
a sequenced fashion.
Number 167
Timing is important, Mr. Eason said, because the bids received on
sale 78, which was enjoined, are being retained by the Department,
with the possibility that there may be an opportunity to conduct
that sale if the Court reverses the Superior Court before June 29.
He said there is a companion bill that addresses an amendment to AS
38.05.180 (c) to remove the requirement that the Department hold a
sale within 90 days of the quarter in which it is originally
scheduled. It is important that this receive the Committee's
consideration early on.
Number 185
SENATOR LITTLE asked for his definition of "non-speculative
effect". MR. EASON said there are many opinions on what is
speculative. The intent is to set a higher standard, so the Court
is not encouraged lightly to step in and exercise its discretion.
It will place a higher burden on fact as to what is or is not
speculative.
SENATOR LITTLE said she was concerned that this legislation was
being rushed through Committee. She was also concerned about
people who administer coastal management plans having input.
Number 280
GEORGE FINDLING, Manager, Public Relations, Arco Alaska, pointed
out that detailed findings and analysis can never be definitive
because the impacts of oil and gas development arise only from
activity on leases. They are not known at the lease sale stage.
Second, he noted, already state agencies retain considerable
control through mitigation measures and permits over subsequent
activities on oil and gas leases.
Third, he said DNR compiles thousands of pages of findings which
courts find inadequate.
Fourth, in 1990 the legislature limited best interest findings to
criteria listed in AS 38.05.035. Now, there is a need for the
legislature to further limit the court's ability to impose
additional best interest findings.
In conclusion he said this is the type of bill they could support.
DARCY RICHARDS, Program Director, Aleutians West Coastal Research
Service Area, administers the Coastal Management Plan for the
Western Aleutians. She urged the Committee not to move the bill
until the public had adequate opportunity to review it.
MIKE WENIG, Trustees for Alaska, asked the Committee to take more
time to consider the merits of this legislation. He said DNR did
not consider a caribou herd in a recent oil development lease.
Number 354
NAVETTE BOWEN, Alaska Marine Conservation Council, commented that
the bill could have more public review before the Committee acted
on it.
SUSAN FLENSBURG, Bristol Bay Coastal Resource Service Area, said
she needed more time for reviewing the bill.
CONNIE GATLING, Kenai-Soldotna, requested that the bill not move
from Committee until the public has had more time for meaningful
review. It is a major rewrite of Title 38 and has far reaching
implications.
Number 439
MIKE O'MAERA said there should be more opportunity for discussion
of the bill. On page 2, line 8, he thought "non-speculative" had
to be defined.
He said there seems to be some attempt to limit the ability of
people to present information as it becomes available and seems to
lock action into the initial phase of the administrative review.
Page 2, line 26 talks of limiting the scope to a discrete phase of
the project. This appears to be an attempt to shield the process
from public scrutiny.
He thought this bill would foster distrust of the oil companies and
increase litigation on a constitutional basis.
Number 493
GAIL PARSONS supported Mr. O'Maera's testimony. She wanted time
for more public input.
HAL SPENCE, Homer News, asked why there is such a hurry with this
bill. SENATOR MILLER said that LS 79 was coming up shortly.
TOM LOHMAN, North Slope Borough, said the public has not had enough
time to review this legislation. He didn't think the bill was
necessary.
Number 565
RIKI OTT, United Fishermen of Alaska (UFA), opposed SB 308, because
it is not necessarily in the state's best interest to have leases
in the middle of good fishing grounds. If you don't consider all
the potential mitigation measures, then you're disadvantaging both
the oil industry and future decision makers. If you don't put all
the issues up front, the developer won't have a good idea of
whether they can economically develop or not.
TAPE 94-7, SIDE B
Number 570
Future decision makers, likewise might be in the middle of a multi- -
phased development and have only the choice of letting it proceed
or stop.
On page 2, lines 14 & 15 it seems like input from the public is
trying to be limited. Limiting the affects to the specific
geographic scope of the lease/sale does not take into account the
fact that we have migratory fish. She noted that LS 79 which is to
be held soon, is in an environmentally sensitive area.
SENATOR MILLER thanked everyone for their participation. He said
the Committee would consider SB 308 again on Thursday and adjourned
the meeting at 5:30 p.m.
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