Legislature(1997 - 1998)
02/06/1998 03:30 PM Senate RES
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SENATE RESOURCES COMMITTEE
February 6, 1998
3:30 p.m.
MEMBERS PRESENT
Senator Lyda Green, Vice Chair
Senator Bert Sharp
Senator Robin Taylor
Senator John Torgerson
MEMBERS ABSENT
Senator Rick Halford, Chairman
Senator Loren Leman
Senator Georgianna Lincoln
COMMITTEE CALENDAR
SENATE CONCURRENT RESOLUTION NO. 20
Relating to support of the State of Alaska's areawide leasing
program.
MOVED SCR 20 OUT OF COMMITTEE
HOUSE JOINT RESOLUTION NO. 39
Urging the United States Congress to enact legislation that
prohibits the President of the United States from extending or
establishing national monuments without the express authorization
of the Congress.
MOVED HJR 39 OUT OF COMMITTEE
PREVIOUS SENATE COMMITTEE ACTION
SCR 20 - No previous Senate action.
HJR 39 - No previous Senate action.
WITNESS REGISTER
Senator Drue Pearce
Alaska State Capitol
Juneau, Alaska 99801-1182
POSITION STATEMENT: Sponsor of SCR 20
KAREN COWERT
Alaska Support Industry Alliance
POSITION STATEMENT: Supports SCR 20
Dave Stancliff
Staff to Representative Scott Ogan
Alaska State Capitol
Juneau, Alaska 99801-1182
POSITION STATEMENT: Testified for co-sponsor of HJR 39
ACTION NARRATIVE
TAPE 98-7, SIDE A
Number 001
VICE CHAIRMAN GREEN called the Senate Resources Committee meeting
to order at 3:33 p.m. Senators Taylor, Torgerson, Sharp and Green
were present. The first order of business was SCR 20.
SCR 20 - STATE AREAWIDE LEASING PROGRAM
SENATOR DRUE PEARCE, representing Area F in Anchorage, stated she
sponsored SCR 20 at the request of the Support Industry Alliance.
The Nineteenth Legislature unanimously passed a bill in 1996 that
allows areawide leasing. The first areawide lease will occur in
Cook Inlet; the second will occur on the North Slope. Areawide
leasing is meeting with some resistance and is being legally
challenged. The Alliance has asked the Twentieth Legislature to
voice its position on areawide leasing to help fight court
challenges to specific areawide lease sales. SCR 20 voices the
Legislature's support.
SENATOR TAYLOR asked if this process utilizes stakeholder meetings.
SENATOR PEARCE said the first stakeholder event happened in Lease
Sale 85A which was a specific lease sale. The Administration then
convened a stakeholder process for the areawide lease sale in Cook
Inlet. She expressed concern that this process has led to specific
points and areas that opponents to leasing of any sort will use to
challenge areawide leasing in court. Senator Pearce said that
while the resolution does not speak to the whole stakeholder
process, she thought that process is outside of the bounds of the
statute.
SENATOR TAYLOR noted he did not understand where the stakeholder
process came from because he did not believe it was part of the
1996 legislation. SENATOR PEARCE answered it was not and is
actually a process that is completely outside of the law.
SENATOR TAYLOR said he would not suggest encumbering SCR 20 with
any controversy about the stakeholder process because he
understands the purpose and need for which the resolution was
submitted. He added it is his understanding there is absolutely no
legal authorization for the stakeholder process and its intended
effect is to further convolute and delay the process, and provide
opportunities for additional litigation. He repeated the
stakeholder process is being used to stifle the policy and intent
of the 1996 Legislature.
VICE-CHAIR GREEN stated the Legislature needs to be vigilant of
several issues, not only areawide leasing, because some of the same
groups use court challenges and other methods to delay progress
made by other industries.
Number 96
KAREN COWERT, General Manager for the Alaska Support Industry
Alliance, read the following statement.
The Alliance is a statewide trade organization representing
businesses that provide products and services to oil and gas
companies and activities. One of the most important issues
facing Alaska's oil and gas industry, and thus the economy, is
the State's new areawide leasing program. It would appear
that the Legislature agreed, having passed the law creating
the program. In fact, the vote says it all, and in 1996 every
single one of Alaska's elected officials, Democrat,
Independent, and Republican, passed HB 388. As a trade
organization consisting of over 300 businesses that supplies
products and service to oil and gas companies and activities,
and representing 25,000 employees, the Alliance was extremely
pleased to see the law pass in such a unified manner.
Unfortunately, there are those that are choosing to ignore our
State leaders unanimous passage of areawide leasing. The
opposition claims that they did not have sufficient time to
express their opinions on this piece of legislation. Given
the two year time period during which the bill was considered
and modified, the Alliance believes there was more than ample
time to provide comment at numerous stages. For this reason
the Alliance asks that the Legislature reiterate support for
areawide leasing through this resolution. This reiterization
will assist the Alliance and others in efforts to accurately
portray the program and the benefits to be reached by all
Alaskans.
In closing, smart global economy, efficiency in government,
business and job opportunities, additional royalty revenue for
our permanent fund when the industry is given the opportunity
to explore, develop, and produce oil and gas, realizes that
areawide simply makes good sense for Alaskans. Thank you for
allowing me the opportunity to support your resolution and I'd
be happy to answer or address any concerns or questions you
might have of the Alliance.
SENATOR TAYLOR stated he appreciates the fact that the resolution
was brought on an affirmative basis. He does not believe any
committee member wants to slow its movement, but he felt it would
be a failure on the part of the committee to discuss the extensive
amount of background and time spent on HB 388. As a legislator in
1996, he recalled that extensive discussion in both houses about
all aspects of the program occurred. He repeated his frustration
that the stakeholder process is totally unauthorized, and has
nothing to do with the 1996 legislation. He questioned who had the
authority to create the stakeholder process, and what funding
source is being used. He concluded by saying this Administration
authorized the stakeholder process to intentionally destroy and
defeat the policy set by the Legislature in SB 308.
SENATOR PEARCE clarified that HB 388 was the bill that created
areawide leasing; SB 308 was sponsored by her, passed during the
Eighteenth Legislature and revised the leasing process and
established a phase process. She said Senator Taylor was speaking
to the fact that the stakeholder process adds something that is not
in the leasing process. She said, in her opinion, one of the
reasons the stakeholder process is being used is that it is a back
door attempt to eliminate phasing.
SENATOR TAYLOR stated the legislative intent of SB 308 was very
clear.
Number 175
SENATOR TORGERSON said he supported the initial process for Lease
Sale 85. During that process there was a lot of debate. He
explained that fishermen opposed the lease sale because drilling
would occur in the fishing corridor during fishing season. Fishing
would be restricted within a geographical boundary, with heavy
fines imposed for fishing outside of the restricted area. During
that process, a decision was made to not drill in that corridor
during the fishing season. He commented however, that often the
same arguments were repeatedly used for other aspects of the lease
by people who object to anything. He said that is where he thinks
the stakeholder process has gotten out of whack.
SENATOR TORGERSON moved SCR 20 out of committee with individual
recommendations and its accompanying zero fiscal note. There being
no objection, the motion carried.
HJR 39 - LIMIT DECLARATION OF NATL. MONUMENTS
DAVE STANCLIFF, staff to Representative Scott Ogan, explained the
purpose of HJR 39 as follows. Representative Ogan was concerned
about the authority exercised by the President of the United States
in both Utah and Alaska when setting aside vast amounts of land by
Executive Order, without any congressional or public involvement.
Congress has three measures before it to deal with this issue; one,
S 477 by Senator Orrin Hatch, will be heard on February 12. HJR 39
is timely and gives positive encouragement to Congress to take
back, on behalf of Americans, some authority with regard to
delegation and use of American lands.
SENATOR TORGERSON asked if the American River Heritage Program
would be covered by HJR 39. MR. STANCLIFF said that would not fall
under this resolution; HJR 39 applies specifically to the
Antiquities Act.
SENATOR TAYLOR moved HJR 39 out of committee with individual
recommendations and its accompanying zero fiscal note. There being
no objection, the motion carried.
There being no further business before the committee, VICE-CHAIR
GREEN adjourned the meeting at 4:47 p.m.
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