SJR 16-OFFSHORE OIL & GAS REVENUE                                                                            
                                                                                                                                
3:40:07 PM                                                                                                                    
CO-CHAIR MCGUIRE announced the consideration of SJR 16.                                                                         
                                                                                                                                
SENATOR WIELECHOWSKI,  Alaska State  Legislature, sponsor  of SJR                                                               
16,  said  that on  April  14  the  U.S. Department  of  Interior                                                               
Secretary  Ken  Salazar is  coming  to  Alaska seeking  input  on                                                               
exploration in  the Outer  Continental Shelf (OCS).  SJR 16  is a                                                               
timely  resolution   that  supports   responsible  oil   and  gas                                                               
development in the OCS and asks  for revenue sharing from oil and                                                               
gas leasing and  development in those federal  waters. A similar,                                                               
but more limited, resolution passed unanimously last year.                                                                      
                                                                                                                                
SENATOR STEDMAN  referenced page 2, line  30, and said he  is not                                                               
sure  how   to  define   environmentally  sound   and  culturally                                                               
sensitive.                                                                                                                      
                                                                                                                                
SENATOR  WIELECHOWSKI said  he is  open to  suggestion as  to how                                                               
that  is defined.  He wants  to  take into  account the  cultural                                                               
issues  that  are  in  play  on  the  North  Slope,  particularly                                                               
whaling.  Environmentally  sound  development would  protect  the                                                               
environment  in  all  of  Alaska. He  added  that  the  committee                                                               
certainly  could hold  the resolution  to  flesh it  out; he  was                                                               
pushing for  the April 14 deadline  and tried to use  broad terms                                                               
to appease the interests that people have.                                                                                      
                                                                                                                                
3:41:57 PM                                                                                                                    
SENATOR   HUGGINS   suggested   that  the   phrase   "responsible                                                               
development" would work in both instances.                                                                                      
                                                                                                                                
SENATOR  WIELECHOWSKI  said he  would  accept  that change  as  a                                                               
friendly amendment.                                                                                                             
                                                                                                                                
SENATOR WAGONER referenced the next  to last "Whereas" on page 2,                                                               
line  26,  and said  he  doesn't  know of  any  OCS  oil and  gas                                                               
production  off the  Alaska coast  since  it became  a state.  He                                                               
suggested the committee strike that "Whereas."                                                                                  
                                                                                                                                
3:43:14 PM                                                                                                                    
MICHELLE  SIDEMAN,  Staff  to   Senator  Wielechowski,  said  the                                                               
reference is  to the money  that has been collected  through high                                                               
bids in the lease sale; it's not money from actual production.                                                                  
                                                                                                                                
SENATOR WAGONER said that is his  point. He agrees that the sales                                                               
of leases  have generated millions  of dollars, but  there hasn't                                                               
been any oil and gas development that produced anything.                                                                        
                                                                                                                                
SENATOR   FRENCH  suggested   the  committee   strike  the   word                                                               
"production" on page  2, line 26, and insert "lease  sales" so it                                                               
would refer to oil and gas  lease sales. Also, on line 27, strike                                                               
the word "has" and insert the word "have."                                                                                      
                                                                                                                                
CHAIR MCGUIRE recapped the suggested changes and asked for a                                                                    
motion to adopt the first amendment.                                                                                            
                                                                                                                                
SENATOR HUGGINS moved Amendment 1.                                                                                              
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
     Page 1, line 1:                                                                                                            
          Delete "environmentally sound and culturally                                                                          
          sensitive"                                                                                                            
          Insert "responsible development                                                                                       
                                                                                                                                
     Page 1, line 14:                                                                                                           
         Delete   "environmentally   responsible   and                                                                          
          culturally sensitive"                                                                                                 
          Insert "responsible development"                                                                                      
                                                                                                                                
     Page 2, lines 30-31:                                                                                                       
          Delete "environmentally sound and culturally                                                                          
          sensitive"                                                                                                            
          Insert "responsible development"                                                                                      
                                                                                                                                
3:45:20 PM                                                                                                                    
CHAIR MCGUIRE announced that without objection Amendment 1 is                                                                   
adopted.                                                                                                                        
                                                                                                                                
SENATOR FRENCH moved Amendment 2.                                                                                               
                                                                                                                                
                          AMENDMENT 2                                                                                       
                                                                                                                                
     Page 2, lines 26:                                                                                                          
          Delete "production"                                                                                                   
          Insert "lease sales"                                                                                                  
                                                                                                                                
     Page 2, lines 27:                                                                                                          
          Delete "has"                                                                                                          
          Insert "have"                                                                                                         
                                                                                                                                
CO-CHAIR MCGUIRE announced that without objection Amendment 2 is                                                                
adopted.                                                                                                                        
                                                                                                                                
SENATOR  STEDMAN  suggested  the committee  hold  the  resolution                                                               
until the next meeting since this is the first hearing.                                                                         
                                                                                                                                
3:46:59 PM                                                                                                                    
CHAIR MCGUIRE announced she would hold SJR 16 in committee.