SB 310: "An Act amending the Alaska Right-of-Way Leasing Act to provide for the assignment and coordination in one office within the Department of Natural Resources, the State Pipeline Coordinator's Office, of the responsibility for state authorizations for and state oversight of the preconstruction, design, and construction of pipelines to transport natural gas from the North Slope to market, and to require the cooperation of state agencies in the work of the office; and providing for an effective date."
00 SENATE BILL NO. 310 01 "An Act amending the Alaska Right-of-Way Leasing Act to provide for the assignment 02 and coordination in one office within the Department of Natural Resources, the State 03 Pipeline Coordinator's Office, of the responsibility for state authorizations for and state 04 oversight of the preconstruction, design, and construction of pipelines to transport 05 natural gas from the North Slope to market, and to require the cooperation of state 06 agencies in the work of the office; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 09 to read: 10 LEGISLATIVE FINDINGS AND INTENT. (a) The legislature finds that 11 (1) it is in the best interests of the people of the state and the nation that 12 (A) Alaska's North Slope natural gas be expeditiously transported to 13 market in a manner that makes the maximum contribution to the development and
01 standard of living of the residents of the state; and 02 (B) North Slope natural gas pipelines be designed and constructed in a 03 safe and environmentally sound manner; 04 (2) it is desirable that the state have 05 (A) a unified voice representing the state's interests in dealing with 06 Canadian and federal agencies, gas owners, pipeline companies, and contractors 07 relating to permitting, authorization, and oversight of North Slope natural gas 08 pipelines; and 09 (B) a single point of contact for permits, authorizations, and oversight 10 of North Slope natural gas pipelines to ensure coordination among state, federal, and 11 international authorizing agencies and, if appropriate, to develop substantially similar 12 terms and conditions in pipeline-related documents; 13 (3) the system of permitting, authorization, and oversight of gas pipelines that 14 currently involves many state agencies should be replaced by a single, coordinated state 15 approval and oversight process for North Slope natural gas pipelines that provides for internal 16 alignment and dispute resolution; internal alignment fosters efficiency in state permitting, 17 approval, and oversight functions; 18 (4) it is in the best interests of the people of the state to relocate authority for 19 permits and authorizations from existing government structures and processes to one state 20 officer to the maximum extent possible, optimize state pipeline expertise and performance, 21 and minimize the effects to ongoing functions of government; and 22 (5) the state pipeline coordinator's office, established and maintained in the 23 Department of Natural Resources by a series of administrative orders dating from 24 September 1981, is the appropriate lead and single point of contact for the permitting, 25 authorization, and oversight of proposals for North Slope natural gas pipelines. 26 (b) It is the intent of the legislature that the provisions of this Act 27 (1) supersede comparable or substantially similar provisions of Administrative 28 Orders 70 (September 1, 1981), 104 (October 28, 1987), 121 (August 22, 1990), 134 29 (April 15, 1993), and 187 (January 8, 2001), all directed at the management system for design 30 and construction of the Alaska Natural Gas Transportation System; and 31 (2) not affect activities undertaken under authority of AS 38.35.015(7) and
01 38.35.210 or otherwise under AS 38.35 that relate to the development and oversight of oil 02 pipelines and other pipelines not described in (a) of this section on state land, and not modify 03 or impede the commissioner's authority, delegated to the state pipeline coordinator's office, to 04 coordinate with the United States Bureau of Land Management in the development and 05 oversight of the leases affecting the Trans Alaska Pipeline System and its ancillary facilities. 06 * Sec. 2. AS 38.35.015 is amended to read: 07 Sec. 38.35.015. Powers of the commissioner. The commissioner has all 08 powers necessary and proper to implement the policy, purposes, and provisions of this 09 chapter, so as to subserve, as the exercise of reasoned discretion determines, the public 10 interest, convenience, and necessity, including but not limited to 11 (1) granting leases of state land for pipeline right-of-way purposes; 12 (2) leasing, purchasing, or otherwise acquiring (including condemning 13 by declaration of taking) easements or other interests in land in this state for the 14 purpose of utilizing or granting leases of the land, easements, or interests for pipeline 15 right-of-way purposes; 16 (3) purchasing interests in pipelines in accordance with options 17 included in right-of-way leases; 18 (4) investigating any matters concerning any lessee with a view to 19 assuring compliance by it with its right-of-way lease, this chapter, and any other 20 applicable state or federal law; 21 (5) developing from time to time and maintaining a comprehensive 22 master plan for pipeline transportation development; 23 (6) developing and promoting programs to foster efficient, economical, 24 and safe pipeline transportation services in the state; 25 (7) coordinating the activities of the commissioner under this chapter 26 with the transportation and other relevant activities of other public agencies and 27 authorities; the provisions of AS 38.35.400 - 38.35.495 apply to the activities of the 28 commissioner under this chapter that relate to authorizations and oversight of 29 North Slope natural gas pipelines except that the provisions do not apply to the 30 commissioner's duties that are explicitly not subject to delegation; 31 (8) constructing, extending, enlarging, improving, repairing, acquiring,
01 operating, or engaging in transportation, service, or sale by any pipeline or providing 02 for these by contract, lease, or other arrangement on those terms that the commissioner 03 may consider necessary, convenient, or desirable with any agency, corporation, or 04 person, including but not limited to any carrier or any state agency, when the 05 commissioner determines that a lessee carrier is not willing to undertake and complete 06 the action within a reasonable time, and to sell, lease, grant, and dispose of any 07 property constructed or acquired in the exercise of this power. 08 * Sec. 3. AS 38.35.210 is amended to read: 09 Sec. 38.35.210. Delegation of commissioner's authority. Except as 10 required by AS 38.35.470, the [THE] commissioner shall delegate to the state 11 pipeline coordinator the duties prescribed in this chapter relating to the 12 authorization and oversight of North Slope natural gas pipelines that require or 13 allow delegation and may delegate to an employee of the Department of Natural 14 Resources or the Department of Law the authority otherwise granted under this 15 chapter. However, a delegation made under this section may not include [, 16 EXCEPT FOR] the authority to execute leases. 17 * Sec. 4. AS 38.35 is amended by adding new sections to read: 18 Article 2. Authorization and Oversight of North Slope Natural Gas Pipelines. 19 Sec. 38.35.400. Authorization and Oversight of North Slope natural gas 20 pipelines. The commissioner is the principal executive official for state 21 communication and coordination with appropriate federal and Canadian agencies 22 related to the authorization and oversight of North Slope natural gas pipelines, 23 including routing, design, and construction. 24 Sec. 38.35.410. Office of the state pipeline coordinator. (a) There is 25 created in the Department of Natural Resources the office of the state pipeline 26 coordinator. The office consists of an employee of the department who shall be the 27 state pipeline coordinator and employees supervised by the coordinator. The 28 commissioner shall exercise the communication and coordination duties described in 29 AS 38.35.400 through the state pipeline coordinator. 30 (b) The state pipeline coordinator 31 (1) is, except to the extent of the authority assigned under
01 AS 38.35.470, the designee of the commissioner as to all matters described in 02 AS 38.35.400 - 38.35.495 and, as the designee, has the lead responsibility for 03 coordinating and communicating about the authorization and oversight of North Slope 04 natural gas pipelines; 05 (2) shall exercise the authority assigned under AS 38.35.470; 06 (3) shall establish and maintain within the office a gas pipelines group 07 to coordinate actions by the state agencies that relate to the authorization and oversight 08 of North Slope natural gas pipelines; and 09 (4) shall coordinate agency program and financial plan submissions 10 under AS 37.07 (Executive Budget Act) that relate to the authorization and oversight 11 of North Slope natural gas pipelines. 12 (c) The office of the state pipeline coordinator shall 13 (1) establish preconstruction and construction field teams that the 14 office determines, after consultation with affected agencies, are necessary for data 15 gathering and oversight; the field teams established under this paragraph 16 (A) are composed of employees from the agencies composing 17 the gas pipelines group established under (b)(3) of this section and from other 18 state agencies; and 19 (B) may be assigned or reassigned the responsibilities and 20 authorities of the affected agencies without regard to the agency affiliation of 21 the employees, but assignment or reassignment may be made under this 22 subparagraph only after consultation among the heads of the affected agencies 23 and may not be made contrary to another provision of law; and 24 (2) prepare and submit to the governor and the heads of the principal 25 departments of the state government and the persons responsible for the agencies 26 composing the gas pipelines group periodic progress reports that summarize the 27 office's goals and objectives and the accomplishments of the office in meeting those 28 goals and objectives. 29 Sec. 38.35.420. Obligations of designated agencies. The head of each state 30 agency that is part of the gas pipelines group established under AS 38.35.410(b)(3) 31 shall
01 (1) appoint an agency employee as a liaison officer and assign the 02 person appointed to the gas pipelines group established under AS 38.35.410(b)(3); the 03 head of the state agency shall require that, for matters affecting the agency, the person 04 appointed under this paragraph 05 (A) serve as the single point of contact for the agency in all 06 matters relating to authorization and oversight of North Slope natural gas 07 pipelines during the preconstruction and construction phases; and 08 (B) report directly to the head of the agency; and 09 (2) to the maximum extent consistent with applicable law, delegate to 10 the liaison officer appointed under (1) of this section signatory authority for or on 11 behalf of the agency during the preconstruction and construction phases for 12 development of draft permits and authorizations for North Slope natural gas pipelines. 13 Sec. 38.35.430. Duties of agency liaison officers. A liaison officer appointed 14 under AS 38.35.420(1) shall 15 (1) be available to manage and perform work necessary to process 16 permits and applications for North Slope natural gas pipelines by the liaison officer's 17 employing agency; 18 (2) assist as necessary with the permits and authorizations of other 19 agencies; 20 (3) manage and perform work necessary to oversee construction of 21 North Slope natural gas pipelines; 22 (4) provide other necessary technical assistance to the office; 23 (5) develop and provide to the office annual work plans for 24 accomplishing the tasks described in (1) - (4) of this section for review and approval 25 by the state pipeline coordinator; the plans must include schedules, budgets, and 26 staffing plans for authorization and oversight work; each liaison officer shall monitor 27 progress against the officer's approved work plan and provide periodic reports to the 28 state pipeline coordinator; 29 (6) have daily supervision of staff employed in the liaison officer's 30 employing agency for work necessary to process permits and applications for North 31 Slope natural gas pipelines by the liaison officer's employing agency; however, the
01 authority of this paragraph does not extend to supervision of staff from the agency's 02 central or regional office providing support services for work necessary to process 03 permits and applications for North Slope natural gas pipelines; 04 (7) manage the administrative functions of the employing agency for 05 the work necessary to process permits and applications for or otherwise assist in 06 development of North Slope natural gas pipelines; 07 (8) maintain at the office of the gas pipelines group established under 08 AS 38.35.410(b)(3) a complete set of records on all aspects of the agency's activities 09 relating to the processing of permits and applications for North Slope natural gas 10 pipelines; 11 (9) provide to the state pipeline coordinator 12 (A) for review and comment copies of all 13 (i) applications and requests for permits and 14 authorizations to be issued by the liaison officer's employing agency 15 that relate to preconstruction and construction of North Slope natural 16 gas pipelines; and 17 (ii) proposed permits and authorizations to be issued by 18 the liaison officer's employing agency that relate to preconstruction and 19 construction of North Slope natural gas pipelines; and 20 (B) copies of all permits and authorizations issued by the 21 liaison officer's employing agency that relate to preconstruction and 22 construction of North Slope natural gas pipelines; 23 (10) coordinate with the state pipeline coordinator all public notices 24 and other public hearing processes required by law that relate to activities of the 25 liaison officer's employing agency involving the processing of permits and 26 applications for North Slope natural gas pipelines; 27 (11) process in the gas pipelines group established under 28 AS 38.35.410(b)(3) all permits and authorizations issued by the liaison officer's 29 employing agency relating to preconstruction and construction activities for North 30 Slope natural gas pipelines; 31 (12) to the extent allowed by law and whenever feasible, consult with
01 the state pipeline coordinator and consider the state pipeline coordinator's advice 02 before the taking of an enforcement action by the liaison officer's employing agency 03 relating to preconstruction and construction activities for North Slope natural gas 04 pipelines; however, the obligation set out in this paragraph may not limit the exercise 05 of employment authority by the agency. 06 Sec. 38.35.440. Financial considerations. (a) The provisions of AS 37.07 07 (Executive Budget Act) apply to the agency program and financial plans of an agency 08 described in AS 38.35.410(b)(3) that relate to the authorization and oversight of North 09 Slope natural gas pipelines. However, in order to develop a consolidated budget 10 request, 11 (1) each agency shall prepare and submit to the state pipeline 12 coordinator an annual program budget request for all appropriations, including costs 13 reimbursed or reimbursable under AS 38.35.140(b) or 38.35.145 and fees for permits 14 authorized by statute or regulation, that relate to activities of the agency for the 15 authorization and oversight of North Slope natural gas pipelines; after review and 16 approval by the state pipeline coordinator, the commissioner shall consolidate and 17 submit the requests for review and recommendation under AS 37.07.060; and 18 (2) an agency described in AS 38.35.410(b)(3) may not request an 19 appropriation for a portion of its work that relates to activities of the agency for the 20 authorization and oversight of North Slope natural gas pipelines except under (1) of 21 this subsection. 22 (b) When money has been appropriated by the legislature, the state pipeline 23 coordinator shall 24 (1) negotiate with each agency described in AS 38.35.410(b)(3) one or 25 more reimbursable services agreements for work that relates to activities of the agency 26 for the authorization and oversight of North Slope natural gas pipelines; and 27 (2) take action to ensure that payment or reimbursement is secured 28 promptly for costs incurred by the agency for its work. 29 (c) In addition to the limitation under AS 37.07.080(d) relating to employment 30 of additional agency employees, for an agency's activities relating to the authorization 31 and oversight of North Slope natural gas pipelines, the agency may not employ
01 personnel in addition to the number of employees allowed in the appropriations 02 approved under AS 37.07 (Executive Budget Act) without the prior approval of the 03 state pipeline coordinator. 04 Sec. 38.35.450. Interagency relationships; disposition of disputes. (a) If 05 there is a dispute between agencies as to a matter subject to the provisions of 06 AS 38.35.400 - 38.35.495, 07 (1) the state pipeline coordinator and the liaison officers of the affected 08 agencies shall use their best efforts to resolve the dispute; 09 (2) if the parties cannot achieve a complete resolution of the dispute 10 under (1) of this subsection, the commissioner and the heads of the affected principal 11 departments of the state government or persons responsible for the work of the 12 affected agencies shall use their best efforts to resolve the dispute; 13 (3) if the parties cannot achieve a complete resolution of the dispute 14 under (1) and (2) of this subsection, the governor, after consultation with and 15 consideration of any recommendation made by the members of the gas pipelines 16 group, shall resolve the dispute. 17 (b) The appropriate authority within the Office of the Governor responsible 18 for making coastal management consistency determinations shall coordinate 19 consistency reviews and determinations of activities of multiple agencies relating to 20 the authorization and oversight of North Slope natural gas pipelines required under 21 AS 44.19.145 and applicable program regulations. 22 Sec. 38.35.460. Legal matters. The attorney general is the legal advisor to 23 and shall furnish legal services for the gas pipelines group established under 24 AS 38.35.410(b)(3). 25 Sec. 38.35.470. State pipeline coordinator to issue all permits and 26 authorizations relating to North Slope natural gas pipelines. Notwithstanding any 27 other provision of law, the state pipeline coordinator shall have final authority to issue 28 a permit or authorization relating to preconstruction and construction activities for a 29 North Slope natural gas pipeline. 30 Sec. 38.35.480. Interpretation and application. Except as specifically 31 provided in AS 38.35.470, the provisions of AS 38.35.400 - 38.35.495 may not be
01 applied so as to create rights or modify the statutory or regulatory authority of an 02 agency designated by the governor that relates to the authorization and oversight of 03 North Slope natural gas pipelines. 04 Sec. 38.35.495. Definitions for AS 38.35.400 - 38.35.495. In AS 38.35.400 - 05 38.35.495, 06 (1) "North Slope natural gas pipeline" means all the facilities of a total 07 system of pipe, whether owned or operated under a contract, agreement, or lease, used 08 by a carrier for transportation of North Slope natural gas, as defined by AS 42.06.630, 09 in commercial operation for delivery, for storage, or for further transportation, 10 including all pipe, pump, or compressor stations, station equipment, tanks, valves, 11 access roads, bridges, airfields, terminals and terminal facilities, including docks and 12 tanker loading facilities, operations control centers for both the upstream part of the 13 pipeline and the terminal, tanker ballast treatment facilities, fire protection system, 14 communications system, and all other facilities used or necessary for an integral line 15 of pipe, taken as a whole, to carry out transportation, including an extension or 16 enlargement of the line; 17 (2) "office" means the office of the state pipeline coordinator. 18 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 19 read: 20 TRANSITION. The provisions of this Act apply to applications for right-of-way 21 leases on state land for a North Slope natural gas pipeline, as that term is defined in 22 AS 38.35.495, added by sec. 4 of this Act, that are pending on the effective date of this Act or 23 that are made under AS 38.35 on or after the effective date of this Act. 24 * Sec. 6. This Act takes effect July 1, 2002.