02/27/2013 03:30 PM Senate RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| SB21 | |
| SJR3 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 21 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SJR 3 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE RESOURCES STANDING COMMITTEE
February 27, 2013
3:31 p.m.
MEMBERS PRESENT
Senator Cathy Giessel, Chair
Senator Fred Dyson, Vice Chair
Senator Peter Micciche
Senator Click Bishop
Senator Lesil McGuire
Senator Anna Fairclough
Senator Hollis French
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 21
"An Act relating to appropriations from taxes paid under the
Alaska Net Income Tax Act; relating to the oil and gas
production tax rate; relating to gas used in the state; relating
to monthly installment payments of the oil and gas production
tax; relating to oil and gas production tax credits for certain
losses and expenditures; relating to oil and gas production tax
credit certificates; relating to nontransferable tax credits
based on production; relating to the oil and gas tax credit
fund; relating to annual statements by producers and explorers;
relating to the determination of annual oil and gas production
tax values including adjustments based on a percentage of gross
value at the point of production from certain leases or
properties; making conforming amendments; and providing for an
effective date."
- MOVED CSSB 21(RES) OUT OF COMMITTEE
SENATE JOINT RESOLUTION NO. 3
Urging the United States Congress to pass legislation to open
the coastal plain of the Arctic National Wildlife Refuge to oil
and gas exploration, development, and production; relating to
oil and gas exploration, development, production, and royalties;
and relating to renewable and alternative energy technologies.
- MOVED CSSSSJR 3(RES) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 21
SHORT TITLE: OIL AND GAS PRODUCTION TAX
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/16/13 (S) READ THE FIRST TIME - REFERRALS
01/16/13 (S) TTP, RES, FIN
01/22/13 (S) TTP AT 3:30 PM BELTZ 105 (TSBldg)
01/22/13 (S) Heard & Held
01/22/13 (S) MINUTE(TTP)
01/24/13 (S) TTP AT 3:30 PM BUTROVICH 205
01/24/13 (S) Heard & Held
01/24/13 (S) MINUTE(TTP)
01/29/13 (S) TTP AT 3:30 PM BELTZ 105 (TSBldg)
01/29/13 (S) Heard & Held
01/29/13 (S) MINUTE(TTP)
01/31/13 (S) TTP AT 1:00 PM BUTROVICH 205
01/31/13 (S) Heard & Held
01/31/13 (S) MINUTE(TTP)
02/05/13 (S) TTP AT 3:30 PM BUTROVICH 205
02/05/13 (S) Heard & Held
02/05/13 (S) MINUTE(TTP)
02/07/13 (S) TTP AT 3:30 PM BUTROVICH 205
02/07/13 (S) Moved SB 21 Out of Committee
02/07/13 (S) MINUTE(TTP)
02/08/13 (S) TTP RPT 1NR 4AM
02/08/13 (S) NR: DUNLEAVY
02/08/13 (S) AM: MICCICHE, GARDNER, FAIRCLOUGH,
MCGUIRE
02/08/13 (S) LETTER OF INTENT WITH TTP REPORT
02/09/13 (S) TTP AT 10:00 AM BUTROVICH 205
02/09/13 (S) -- MEETING CANCELED --
02/11/13 (S) RES AT 3:30 PM BUTROVICH 205
02/11/13 (S) Heard & Held
02/11/13 (S) MINUTE(RES)
02/13/13 (S) RES AT 3:30 PM BUTROVICH 205
02/13/13 (S) Heard & Held
02/13/13 (S) MINUTE(RES)
02/15/13 (S) RES AT 3:30 PM BUTROVICH 205
02/15/13 (S) Heard & Held
02/15/13 (S) MINUTE(RES)
02/18/13 (S) RES AT 3:30 PM BUTROVICH 205
02/18/13 (S) Heard & Held
02/18/13 (S) MINUTE(RES)
02/20/13 (S) RES AT 3:30 PM BUTROVICH 205
02/20/13 (S) Heard & Held
02/20/13 (S) MINUTE(RES)
02/22/13 (S) RES AT 3:30 PM BUTROVICH 205
02/22/13 (S) Heard & Held
02/22/13 (S) MINUTE(RES)
02/25/13 (S) RES AT 3:30 PM BUTROVICH 205
02/25/13 (S) Heard & Held
02/25/13 (S) MINUTE(RES)
02/27/13 (S) RES AT 3:30 PM BUTROVICH 205
BILL: SJR 3
SHORT TITLE: ENDORSING ANWR LEASING
SPONSOR(s): SENATOR(s) MICCICHE
01/23/13 (S) READ THE FIRST TIME - REFERRALS
01/23/13 (S) RES
02/04/13 (S) SPONSOR SUBSTITUTE INTRODUCED-REFERRALS
02/04/13 (S) RES
02/20/13 (S) RES AT 3:30 PM BUTROVICH 205
02/20/13 (S) Scheduled But Not Heard
02/27/13 (S) RES AT 3:30 PM BUTROVICH 205
WITNESS REGISTER
MARGARET DOWLING, staff to Senator Giessel
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Explained amendments to CSSB 21(RES),
version N.
MICHAEL PAWLOWSKI, Advisor
Petroleum and Fiscal Systems
Department of Revenue (DOR)
Anchorage, Alaska
POSITION STATEMENT: Helped clarify amendments to CSSB 21(RES),
version N.
SUSAN POLLARD, Assistant Attorney General
Department of Law (DOL)
Juneau, Alaska
POSITION STATEMENT: Clarified language about credit provisions
in CSSB 21(RES), version N.
ADRIAN HERRERA
D.C. Coordinator for Arctic Power
Washington, D.C.
POSITION STATEMENT: Gave supporting testimony for the amendment
to CSSSSJR 3(RES), version N.
ACTION NARRATIVE
3:31:21 PM
CHAIR CATHY GIESSEL called the Senate Resources Standing
Committee meeting to order at 3:31 p.m. Present at the call to
order were Senators French, Dyson, Bishop, McGuire Fairclough
and Chair Giessel. Senator Micciche joined them at 3:32.
SB 21-OIL AND GAS PRODUCTION TAX
3:32:03 PM
CHAIR GIESSEL announced that CSSB 21(RES), labeled 28-GS1647\N,
was before the committee. She said a legislative letter of
intent and a Senate Resources memorandum to the Finance
Committee would be transmitted with the bill. The memorandum had
five specific subjects that were raised in this committee, but
were within the Finance Committee's jurisdiction and merited
further consideration. She said that Legislative Legal Services
and the Department of Law (DOL) had also suggested a few
refinements.
3:33:20 PM
SENATOR DYSON moved Amendment 5.
28-GS1647\N.7
Bullock
AMENDMENT 5
OFFERED IN THE SENATE
TO: CSSB 21(RES), Draft Version "N"
Page 2, line 21, following "section.":
Insert "A taxpayer receiving the transfer of a
certificate under this subsection may not apply more
than $10,000,000 in tax credits authorized by this
section in a single tax year and may not use a tax
credit authorized by this section to reduce a tax
liability under this chapter below zero."
Page 3, line 12:
Delete the first occurrence of "and"
Insert "or"
Page 3, line 13:
Delete ", regardless of whether the oil and gas
is located in the state"
Page 3, line 16:
Delete the first occurrence of "and"
Insert "or"
Page 3, lines 16 - 17:
Delete ", regardless of whether the oil and gas
is located in the state"
Page 3, line 21:
Delete "and"
Insert "or"
Page 3, line 22:
Delete "regardless of whether the oil and gas is
located in the state,"
Page 8, line 22:
Delete "20"
Insert "30"
Page 15, line 12:
Delete "in"
Insert "for"
Page 15, line 23:
Delete "43.55.024(c)"
Insert "43.55.024"
Page 17, line 2:
Delete "again"
Insert "against"
Page 18, line 15:
Delete "taxable oil"
Insert "oil taxable under AS 43.55.011(e)"
Page 22, line 24:
Delete the first occurrence of "an"
Insert "any"
Page 27, line 4:
Delete "an area"
Insert "acreage"
Page 27, line 7:
Delete "an area"
Insert "acreage"
Page 27, line 8:
Delete "production tax value"
Insert "gross value at the point of production"
Page 30, line 8:
Delete "Sections 9, 10, 12, 15, and 24"
Insert "Sections 9, 10, 12, 15, 20, 21, and 24"
Page 30, line 29:
Delete "Sections 1, 3, 6, 7, 9, 10, 12, 15, 17,
18, 24, and 26 - 28"
Insert "Sections 1, 3, 6, 7, 9, 10, 12, 15, 17,
18, 20, 21, 24, and 26 - 28"
SENATOR FRENCH objected.
3:34:37 PM
MARGARET DOWLING, staff to Senator Giessel, Alaska State
Legislature, Juneau, Alaska, explained that this amendment
cleans up minor word changes and is nothing substantive.
She explained language inserted on page 2, line 21, clarified
that if the Alaska manufacturing credit is transferred, the
transferee takes the credit subject to the same limitation that
would be imposed on the person who earned the credit. So, only
$10 million in any one year can be applied against a tax
liability.
3:36:33 PM
Next on page 3, line 12, "and" was deleted and "or" was inserted
to clarify that the costs associated with those manufacturing of
goods that qualify for credits can be used for goods either in
the exploration, development "or" production of oil; "and"
generally means in addition to.
In section 2, on page 3, line 13, language that was not needed
was removed, because it is assumed that it doesn't matter where
the products are used at the end point. Language on page 3, line
16, deleted "and" and inserted "or" for the same reason above on
line 12.
3:38:06 PM
Language on page 3, lines 16-17, deleted "regardless of whether
the oil and gas is located in the state". That is basically the
same change as on line 13.
Language on page 3, line 21, deleted "and" and inserted "or"
after "development" - the same change as on lines 12 and 16.
Language on page 3, line 22, deleted ", regardless of whether
the oil and gas is located in the state" for the same reason she
explained on lines 13 and 17.
3:38:58 PM
Section 6 on page 8, line 22, replaced the number "20" with
"30", a conforming change for AS 43.55.020, payment of tax, to
account for increasing the GRE to 30 percent.
3:39:33 PM
Section 15, on page 15, line 12, deletes "in" and inserts "for"
to clarify that the tax credit that is increased 15 percent a
year stops increasing on December 31 of the calendar year
immediately preceding the calendar year "for" which the credit
is applied against the tax liability.
On page 15, line 23, "43.55.024(c)" was replaced with
"43.55.024". The reference to subsection (c) was not necessary.
All the credits under .024 - not just (c) - must be considered
first when they determine the total tax liability to see if it
reaches zero or less before the loss carry forward credit can be
applied.
On page 17, line 2 "again" was replaced with "against", a simple
word correction.
On page 18, line 15 "taxable oil" was replaced with "oil taxable
under AS 43.55.011(e)". The Department of Law wanted to make
sure there was no confusion that the $5/bbl credit is applied
against taxable oil and not royalty oil.
3:41:48 PM
In section 24, on page 22, line 24, "an" was replaced with
"any". This clarified that there may or may not be an increase
in the amount of credit under .023(r), which is the provision
that allows the 15 percent increase in value of an unused loss
carry forward credit. It just says if there is any increase,
it's not assuming there is an increase, and it has to be
identified in the statement a producer would have to file with
the department to get the credit.
The Department of Law suggested in section 28 on page 27, line
4, to delete "in area" and insert "acreage" to clarify that
"area" is presently defined in the DOR regulations as meaning a
geographic region or geologic province including the Cook Inlet
or the North Slope of the state. So, this change doesn't affect
the intent of section 24, but it removes any ambiguity as to
whether "area" for this provision means the same thing as "area"
as defined in regulations. Language on page 27, line 7, makes
the same change as the previous one.
Language on page 27, line 8, deleted "production tax value" and
inserted "gross value at the point of production" to also
enhance clarity that the GRE is taken off the gross production
tax value to achieve the production tax value, which cannot be
reduced below zero.
Section 33 on page 30, line 8, deleted "sections 9, 10,11, 12
and 24" and inserted "sections 9, 10, 12, 15, 20, 21 and 24"
and this is a conforming change that accounts for these
amendments. Page 30, line 29, does the same replacing of section
numbers to account for the changes made with the amendments.
3:45:24 PM
At ease 3:45:24 to 3:45:49.
3:45:49 PM
SENATOR FRENCH removed his objection to Amendment 5.
CHAIR GIESSEL, finding no further objection, announced that
Amendment 5 was adopted.
SENATOR DYSON moved Amendment 6.
28-GS1647\N.9
Nauman/Bullock
AMENDMENT 6
OFFERED IN THE SENATE
TO: CSSB 21(RES), Draft Version "N"
Page 11, lines 20 - 22:
Delete "Except as provided in (p) - (u) of this
section for a tax credit based on lease expenditures
incurred after December 31, 2013, to explore for,
develop, or produce oil or gas deposits located north
of 68 degrees North latitude, a [A]"
Insert "A"
Page 11, line 23:
Delete "35 [25]"
Insert "25"
Page 11, line 24, following "loss":
Insert "based on lease expenditures incurred to
explore for, develop, or produce oil or gas deposits
located south of 68 degrees North latitude. A
producer or explorer subject to the requirements in
(p) - (u) of this section may elect to take a tax
credit in the amount of 35 percent of a carried-
forward annual loss based on lease expenditures
incurred after December 31, 2013, to explore for,
develop, or produce oil or gas deposits located north
of 68 degrees North latitude"
3:46:39 PM
SENATOR FRENCH objected.
MS. DOWLING explained that the first change was in section 9 on
page 11, lines 20-22, and was a reworking of language to be
better understood by taxpayers that the carry forward loss
credit remains 25 percent for all areas except the North Slope
(the intent of section 9). For North Slope producers, the carry
forward loss credits are still subjected to the subsections of
(p) through (u) and it's in the amount of 35 percent, but only
for expenses that are incurred after December 31, 2013. This is
going to match the 35 percent base tax rate for the North Slope
that will go into place after December 31, 2013.
SENATOR FRENCH asked if this is meant to ensure that it's a 25
percent net operating loss carry forward credit for south of the
Brooks Range and 35 percent north of the Brooks Range on the
North Slope.
MS. DOWLING said she thought it was that simple, but wanted Mr.
Pawlowski's opinion.
MICHAEL PAWLOWSKI, Advisor, Petroleum and Fiscal Systems,
Department of Revenue (DOR), Anchorage, Alaska, said it is that
simple. The confusion is a little bit around the dates. The
expenditures during 2013 will be at 25 percent, because the base
rate during 2013 is 25 percent. On the effective date of the
act, January 1, 2014, the tax rate on the North Slope is 35
percent and after December 31, 2013 the North Slope loss carry
forward credit will go to 35 percent as well.
SENATOR FRENCH removed his objection.
CHAIR GIESSEL, hearing no further objection, announced that
Amendment 6 was adopted.
3:50:23 PM
SENATOR DYSON moved Amendment 7.
28-GS1647\N.10
Nauman/Bullock
AMENDMENT 7
OFFERED IN THE SENATE
TO: CSSB 21(RES), Draft Version "N"
Page 11, following line 18:
Insert a new bill section to read:
"* Sec. 9. AS 43.55.023(a), as amended by sec. 8
of this Act, is amended to read:
(a) Except as provided in AS 43.55.025(q), a [A]
producer or explorer may take a tax credit for a
qualified capital expenditure as follows:
(1) notwithstanding that a qualified
capital expenditure may be a deductible lease
expenditure for purposes of calculating the production
tax value of oil and gas under AS 43.55.160(a), unless
a credit for that expenditure is taken under
AS 38.05.180(i), AS 41.09.010, AS 43.20.043, or
AS 43.55.025, a producer or explorer that incurs a
qualified capital expenditure may also elect to apply
a tax credit against a tax levied by AS 43.55.011(e)
in the amount of 20 percent of that expenditure;
(2) a producer or explorer may take a
credit for a qualified capital expenditure incurred in
connection with geological or geophysical exploration
or in connection with an exploration well only if the
producer or explorer
(A) agrees, in writing, to the applicable
provisions of AS 43.55.025(f)(2); and
(B) submits to the Department of Natural
Resources all data that would be required to be
submitted under AS 43.55.025(f)(2);
(3) a credit for a qualified capital
expenditure incurred to explore for, develop, or
produce oil or gas deposits located north of 68
degrees North latitude may be taken only if the
expenditure is incurred before January 1, 2014."
Renumber the following bill sections accordingly.
Page 11, line 20, following "in":
Insert "AS 43.55.025(q) and"
Page 12, line 30:
Delete "sec. 11"
Insert "sec. 12"
Page 20, following line 28:
Insert a new bill section to read:
"* Sec. 22. AS 43.55.025 is amended by adding a new
subsection to read:
(q) An exploration expenditure incurred after
December 31, 2013, to explore for oil or gas located
north of 68 degrees North latitude that is the basis
for a credit under (a)(1), (2), or (3) of this section
may not also be the basis for a credit claimed under
AS 43.55.023 or this section."
Renumber the following bill sections accordingly.
Page 30, line 2:
Delete "26 - 28"
Insert "28 - 30"
Page 30, line 4:
Delete "25"
Insert "27"
Page 30, line 6:
Delete "11, 13, and 14"
Insert "12, 14, and 15"
Page 30, line 8:
SENATOR FRENCH objected.
MS. DOWLING explained that Amendment 7 was the "anti-stacking
provision." She said that the new section 9 was designed to put
producers on notice that they should take a look at subsection
(q) by inserting "except as provided in AS 43.55.025(q)". The
restriction in (q) specifies that a North Slope producer cannot
use the same expenditures for both a loss carry forward credit
and for an exploration credit. They can be used for one or the
other but not both. This is consistent with Alaska policy that
disfavors allowing multiple credits or deductions using the same
expense. Their experts have said that not putting in such a
section would risk having credits taken under .023(a) in the
amount of 30 percent and then the loss carry forward in the
amount of 35 percent for a total of 65 percent. The amendment
had further conforming changes to account for the desired
effective date of these new provisions and an instruction to
renumber the remaining sections of the bill.
3:52:48 PM
SENATOR FRENCH asked for a walk through of how the credits could
be stacked in the absence of this amendment and in its presence.
3:53:17 PM
MR. PAWLOWSKI explained that there are separate credits. The
.023(b) credit is the loss carry forward and the .025 credit is
the exploration credit. A company makes an expenditure and it
qualifies for the credit based on that expenditure. So, you
could make an expenditure for an exploration well under .025 and
use that same expenditure to claim a credit under .023(b). So,
functionally you would end up with a 65 percent credit.
SENATOR FRENCH asked if the exploration credit would also be
accumulating at 15 percent as if it were a net operating loss.
MR. PAWLOWSKI answered no. The intent of this amendment is to
make sure you cannot claim expenditures twice. The EIC that was
expanded in the CS is one that remains monetizable by the state
for exploration expenditures only. The .025 credit has
limitations related to having to come into the Department of
Natural Resources and prequalify the expenditures as an
exploration target and then share the information from that
exploration with it. The difference between that exploration
credit and the blanket .023 (b) credit is that there is no
similar qualification other than the expenditure was made. This
puts the taxpayer in a position of deciding on one or the other.
SENATOR FRENCH asked the relative value of each.
MR. PAWLOWSKI answered the exploration incentive credit (EIC) is
30 percent if within 25 miles of a unit boundary and 40 percent
if farther than 25 miles from a unit boundary. Brooks Range
Petroleum testified that most of the area within the central
North Slope is within that 30 percent range. So, it's 30 or 40
percent depending on distance from infrastructure; then the loss
carry forward credit in the CS is 35 percent of the loss,
assuming the taxpayer had no revenues.
3:56:45 PM
SENATOR FRENCH asked if he had any idea which credit the
producers prefer.
MR. PAWLOWSKI said no; he thought it would depend on each
individual company. The committee heard from Brooks Range in
particular that the revision to the EIC was material to their
company.
3:57:35 PM
SUSAN POLLARD, Assistant Attorney General, Department of Law
(DOL), Juneau, Alaska, added that the previous explanation for
this amendment was correct except for the reference to section 9
where (p) through (u) refers to the section .023 statute, which
provides the new rules for the carry forward loss credit. The
amendment they are looking at now adds an exception to section
.025, which is the exploration incentive credit that Mr.
Pawlowski was just referring to.
SENATOR FRENCH removed his objection.
CHAIR GIESSEL, finding no further objection, announced that
Amendment 7 was adopted.
3:58:34 PM
SENATOR DYSON moved to report CSSB 21(RES), version \N as
amended, from committee [with individual recommendations] and
attached fiscal notes.
SENATOR FRENCH objected saying he thought the process was rushed
and the amendments they just adopted made some significant
changes; and the CS put in front of them last Friday basically
revamps the governor's bill. The fiscal notes, which they had
received this afternoon had not been discussed either. He didn't
feel confident of the work.
SENATOR DYSON said he wanted to amend his previous motion to
include individual recommendations and the letter of intent.
SENATOR MICCICHE said he appreciated the process the bill had
gone through; the committee had spent many hours and some
members had spent hundreds of hours processing this bill in two
different committees. It will also go to the Finance Committee
that would have another opportunity to review it.
4:01:00 PM
SENATOR MCGUIRE asked Mr. Pawlowski about the fiscal note on the
Competitiveness Review Board. She agreed with the personnel
services and the travel and the fact that they would have at
least two meetings, but she didn't necessarily agree with the
estimated $835,000 per year for costs that are based on previous
DOR consulting contracts for oil and gas and related issues. The
board is not meant to supplant what the DOR is doing, and she
didn't know that is was meant to do up to a million dollars'
worth of personnel services.
MR. PAWLOWSKI said the department appreciated the dialogue on
this issue, and said the Competitiveness Review Board language
could be interpreted such that they will engage in services with
types of groups like PFC and Gaffney Cline & Associates. The
fiscal note was modeled after those kinds of contracts. The
personnel services component is already in the 2014 budget. No
new positions are being added for this board and it would need
professional level engagement.
SENATOR FRENCH maintained his objection.
CHAIR GIESSEL asked for a roll call on moving SB 21 from
committee.
A roll call vote was taken: Senators McGuire, Micciche, Bishop,
Dyson, Fairclough and Giessel voted yea; Senator French voted
nay. Therefore, CSSB 21(RES), version N as amended, moved from
committee with attached fiscal notes, letter of intent and with
individual recommendations.
4:04:44 PM
At ease from 4:04 to 4:07 p.m.
SJR 3-ENDORSING ANWR LEASING
4:07:57 PM
CHAIR GIESSEL called the meeting back to order and announced
that SSSJR 3 was before the committee. She asked for a motion to
[adopt] the work draft committee substitute (CS) for SSSJR 3 [as
the working document].
4:08:11 PM
SENATOR MICCICHE moved to [adopt] CSSSSJR 3( ), version 28-
LS0331\C, [as the working document].
SENATOR FAIRCLOUGH objected for purposes of discussion.
SENATOR MICCICHE explained the resolution updates previous
resolutions urging the US Congress to pass legislation to open
Alaska's coastal plain of the Arctic National Wildlife Refuge to
oil and gas exploration and development. Such development is
currently prohibited in the Refuge under the Alaska National
Interest Lands Conservation Act (ANILCA) of 1980.
He said it's clearly in the state's best interests to continue
to become less dependent on foreign sources for energy and it's
in the interests of Alaska to have that energy produced within
the state. The one change to the resolution passed by the 27th
Legislature is that Alaska will have a transportation system for
oil very close to the Arctic National Wildlife Refuge with
completion of the Pt. Thomson pipeline. It's a key time in the
need for energy security for Congress to finally see the light
on opening ANWR to development.
SENATOR MICCICHE said other items that changed were on page 2,
line 11, where the language - "although the domestic demand for
energy continues to rise we are also increasing domestic
production" - was outdated. Lines 21-24 talk about the Pt.
Thomson pipeline and some numbers were updated for accuracy. The
Central Arctic Caribou Herd was added on line 11.
On page 3, line 14, "has developed directional drilling
technology" was added. The old language was written at the
sunrise of drilling technology. Line 18 deleted reference to
"specific fields", because the reality is that we are practicing
the innovative technology in the new fields that would enhance
environmental protection beyond traditionally high standards.
4:11:19 PM
Finally, the "whereas" that begins on line 24 was changed
because it was prior to this legislature creating the Renewable
and Alternative Energy Resources Plan. He reminded the committee
that ANWR is about the size of South Carolina and the proposed
development area in the Coastal Plain is about one-fifth the
size Dulles International Airport in Washington, D.C.
4:12:44 PM
At ease from 4:12 to 4:15 p.m.
4:15:10 PM
SENATOR FAIRCLOUGH offered conceptual Amendment 1 to delete "of
not more than 2,000 acres, which is less than one-tenth of 1
percent of the area of the Coastal Plain" and insert "as limited
by Congress" on page 3, line 3. She explained that language in
past resolutions had stated acres that were all contingent on
legislation before Congress that actually described the scope of
what would be available inside the Arctic Coastal Plain for
development. So when the first bill before Congress that the
legislature was responding to had a very small number of 2,000.
Now there is a $10,000 proposal before Congress. The issue is
that they don't know that until Congress starts putting a bill
to discuss ANWR in play; and her amendment is trying to allow
Congress to make that definition and absolutely trying to limit
the area that is open for oil exploration.
Originally ANWR and the Coastal Plains had 8.9 million acres
available and another 9.16 million acres were added to that. Of
all that, about 9 million is in wilderness, but another 9
million is designated as Refuge - so Alaskans and Americans can
be secure in the fact that most of this land is out of oil
development futures.
4:17:58 PM
She restated the amendment: the same deletion on page 3, line 3,
after "area" and "of not more than 2,000 acres, which is less
than one-tenth of 1 percent of the area of the Coastal Plain"
and insert "a limited area as defined by Congress" after "area".
SENATOR MICCICHE objected for purposes of discussion and asked
to hear from Adrian Herrera with Arctic Power.
ADRIAN HERRERA, D.C. Coordinator for Arctic Power, Washington,
D.C., supported the amendment saying the explanation on how
Congress came up with the 2,000 acres was correct and that it is
an ever changing figure. Currently Don Young has H.R. 49 on
Capitol Hill to open the 1002 area and it has the 2,000 acre
limit in it. This morning a second bill was introduced with a
1002 provision in it that limits the acreage to 10,000 acres out
of every 100,000 acres that can be leased within the 1002 area.
It didn't limit the actual footprint size. Legislation is going
to vary ever more and keeping a footprint of 2,000 acres as a
minimum is accurate as far as current legislation goes, but it
changes. The point is to minimize impact and everyone agrees on
that about ANWR 1002 legislation.
SENATOR MICCICHE removed his objection.
SENATOR FRENCH said the amendment also has the benefit of
correcting the math error in the clause that said 2,000 acres is
less than one-tenth of 1 percent of the Arctic Coastal Plain,
but it is actually 1,500 acres.
CHAIR GIESSEL announced that conceptual Amendment 1 was adopted.
4:22:06 PM
CHAIR GIESSEL opened public testimony. Finding none, she closed
it.
SENATOR DYSON moved to report CSSSSJR 3, version C as amended,
from committee with individual recommendations and attached
fiscal notes.
CHAIR GIESSEL announced that, without objection, CSSSSJR 3(RES)
passed from the Senate Resources Standing Committee.
4:23:19 PM
At ease from 4:23 to 4:25 p.m.
4:25:16 PM
CHAIR GIESSEL adjourned the Senate Resources Standing Committee
meeting at 4:25 p.m.