HB 330-DNR: DISCLOSURE OF CONFIDENTIAL INFO  1:33:24 PM CHAIR CLAMAN announced that the first order of business would be HOUSE BILL NO. 330, "An Act authorizing the commissioner of natural resources to disclose confidential information in an investigation or proceeding, including a lease royalty audit, appeal, or request for reconsideration and issue a protective order limiting the persons who have access to the confidential information." 1:34:17 PM REPRESENTATIVE LEDOUX moved to adopt Amendment 1, which read as follows: [Amendment 1 did not go through the Legislative Legal and Research Services Office. The legislative drafting procedures were not followed.] Page 3, line 25, following "department": Insert "relating to oil and gas" Page 3, line 26: Delete "a lease" Insert "an" Page 6, line 20, following "royalty":  Insert "or net profit share" REPRESENTATIVE KREISS-TOMKINS objected for purposes of discussion. 1:34:39 PM GREG SMITH, Staff, Representative Gabrielle LeDoux, Alaska State Legislature, advised that the general intent of Amendment 1 seeks to limit the type of disclosures that are subject to the protective orders for oil and gas lease audit appeals and requests for consideration, as opposed to all types of leases. He opined that adding this net profit share after the word "royalty" [HB 330, page 6, line 26] better encapsulates what is needed (audio difficulties) the types of work for these disclosures. 1:35:43 PM REPRESENTATIVE KREISS-TOMKINS noted that given the addition of "relating to oil and gas," he asked whether Mr. King had any communications with Usibelli Coal Mine, Inc., as to whether this will satisfy its concern. MR. SMITH advised that they had reached out to Usibelli Coal Mine, Inc., and had not received a confirmation that this amendment would allay its concerns, but he believes it does. 1:36:07 PM REPRESENTATIVE KREISS-TOMKINS asked Mr. Smith to share with the committee any response it may receive from Usibelli Coal Mine, Inc. MR. SMITH responded that he definitely would share Usibelli Coal Mine's response with the committee. 1:36:29 PM ED KING, Special Assistant, Commissioners Office, Department of Natural Resources, was available to testify. CHAIR CLAMAN asked Mr. King to generally offer the position of the Department of Natural Resources (DNR) as to Amendment 1. MR. KING referred to the first change within the amendment as follows: Page 3, line 25, following "department": Insert "relating to oil and gas" MR. KING said that it is DNR's perspective that it would restrict or narrow the scope of the protective orders to issues relating only to oil and gas; thereby alleviating the hypothetical concerns of Usibelli Coal Mine, Inc., or others may have in the mining community. Generally speaking, he said that DNR does not object to this narrowing of the scope as it is not aware of any issues, outside of oil and gas, that would actually use this protective order. Clearly, he pointed out, DNR would prefer the more general authority in the event those types of situations arose in the future. 1:37:39 PM MR. KING advised that the next two changes are technical changes the department felt would benefit the bill, as follows: Page 3, line 26: Delete "a lease" Insert "an" MR. KING explained that the words "a lease" before the word "audit" is not necessary, and as a modifier, it could be interpreted to modify the words "appeal, or request for reconsideration," as well. Therefore, removing the word "lease" was a cleaner way to approach this issue, and then making the grammatical change from "a" to "an." Page 6, line 20, following "royalty": Insert "or net profit share" MR. KING explained that the third change in this amendment and adding, after the word "royalty," the words "or net profit share," of which has to do with the fact that net profit share lease terms are not considered royalty payments. Therefore, he advised, when DRN runs into a situation where it has to audit the net profit share payments to make certain that revenue was properly paid and collected, DNR wants to make certain the terminology is there and there is no doubt that the intent of the legislature was to include those net profit share terms. 1:39:15 PM REPRESENTATIVE KREISS-TOMKINS withdrew his objection. There being no objection, Amendment 1 was adopted. [HB 330 was held over.]