SCR 7-OIL AND GAS REG REVISIONS  CHAIR THOMAS WAGONER announced SCR 7 to be up for consideration. MARY JACKSON, staff to Senator Wagoner, said this resolution came from the Kenai meeting also. Practically speaking, a gentleman named James Udelhoven who began work in Cook Inlet in the late 1960's cautioned, "Don't make the first hurdle so big that the new kid won't try to take the hurdle." She said this resolution was created to applaud the efforts that have been made to streamline permitting and to insure that those efforts are continued. MARK MYERS, Director, Division of Oil and Gas and State Geological Survey, supported SCR 7 saying it would eliminate overhead and duplication. 4:19:01 PM CHAIR WAGONER said the Regulatory Commission of Alaska (RCA) could work at a faster rate and has already demonstrated that recently. SENATOR RALPH SEEKINS asked for examples of enhanced attractiveness of exploration and development. MR. MYERS replied that some outstanding examples are in the Beaufort Sea where Teck Cominco and Armstrong Resources bought leases and within four months had their permits to drill in the Beaufort Sea, which is usually one of the hardest places to permit because of the environmental issues, remoteness of location and concerns over subsistence resources. They have developed good working relationships with the North Slope Borough, which is necessary. Kerr McGee did the same with two separate rigs this winter and last. These companies are brand new to Alaska. He explained that the hearing process within the communities has to happen up front and that while it is labor- intensive, it streamlines the process later on. 4:22:51 PM SENATOR SEEKINS asked if the streamlining had been accomplished through efforts of the legislature or just through incentives initiated by the administration. MR. MYERS replied that the legislature has enhanced the process by funding some positions and moving program offices like Coastal Zone Management into the Department of Natural Resources. It has provided funding on a case-by-case basis for project coordinators and supported budget increases at times for agencies like DEC in critical areas. Having extra folks on staff has been critically important. 4:24:45 PM CHAIR WAGONER related that other companies are going to drill in the Beaufort Sea. MR. MYERS replied that ConocoPhillips has a well, Kerr McGee has multiple wells and Pioneer is looking at development. Another well will potentially be shallow-drilled off the Point McIntyre area. CHAIR WAGONER asked if Pioneer was in the process of having a platform built for them. MR. MYERS replied yes, it is lighter weight and more mobile. He said Pioneer is not actively drilling this year, but they are assessing sanctioning a development project from the earlier successful drilling out there about two years ago. 4:26:19 PM SENATOR SEEKINS moved to pass SCR 7 from committee with individual recommendations and zero fiscal note. There were no objections and it was so ordered.