Legislature(1993 - 1994)

1994-03-14 House Journal

Full Journal pdf

1994-03-14                     House Journal                      Page 2761
HB 199                                                                       
The following was read the second time:                                        
                                                                               
HOUSE BILL NO. 199                                                            
"An Act providing for oil and gas exploration licenses, and oil and           
gas leases, in certain areas of the state; and providing for an                
effective date."                                                               
                                                                               
with the:                                                 Journal Page         
                                                                               
	-ZERO FISCAL NOTE  (REV)  3/5/93                                  549         
	GOVERNOR'S TRANSMITTAL LETTER                                     549         
	O&G RPT  CS(O&G) NEW TITLE  3DP  2NR                             2312         
	-ZERO FISCAL NOTE (DNR) 2/9/94                                   2312         
	RES RPT  CS(O&G) NEW TITLE  5DP 2NR 1AM                          2543         
	-PREVIOUS ZERO FISCAL NOTE (DNR) 2/9/94                          2543         
	FIN RPT  CS(O&G) NEW TITLE  7DP 1AM                              2713         
	-PREVIOUS ZERO FISCAL NOTE (DNR) 2/9/94                          2714         

1994-03-14                     House Journal                      Page 2762
HB 199                                                                       
Representative Phillips moved and asked unanimous consent that the             
following committee substitute be adopted in lieu of the original bill:        
                                                                               
CS FOR HOUSE BILL NO. 199(O&G)                                                
"An Act relating to the exploration and production of oil and gas             
and related hydrocarbons, to oil and gas exploration licenses, and             
to oil and gas leases in certain areas of the state; and providing for         
an effective date."                                                            
                                                                               
There being no objection, it was so ordered.                                   
                                                                               
                                                                               
Amendment No. 1 was offered  by Representative Brown:                           
                                                                               
Page 2, line 23, after "AS38.05.005 - 38.05.040,":                             
	Insert "38.05.140(f),"                                                        
                                                                               
Page 9, after line 15:                                                         
	Insert a new bill section to read:                                            
   "* Sec. 4.  AS 38.05.140(f) is amended to read:                           
	(f)  The submerged and shoreland lying north of 57 degrees,                  
30 minutes north latitude and east of 159 degrees, 49 minutes west             
longitude within the Bristol Bay drainage are designated as the                
Bristol Bay Fisheries Reserve. Within the Bristol Bay Fisheries                
Reserve no surface entry permit to develop an oil or gas lease or            
oil and gas exploration license may be issued on state owned or              
controlled land until the legislature by appropriate resolution                
specifically finds that the entry will not constitute danger to the            
fishery."                                                                      
                                                                               
Renumber the following bill sections accordingly.                              
                                                                               
Page 12, line 6:                                                               
	Delete "secs. 2 - 7"                                                          
	Insert "secs. 2 - 8"                                                          
                                                                               
Page 12, line 7:                                                               
	Delete "Section 8"                                                            
	Insert "Section 9"                                                            
                                                                               

1994-03-14                     House Journal                      Page 2763
HB 199                                                                       
Representative Brown moved and asked unanimous consent that                    
Amendment No. 1 be adopted.                                                    
                                                                               
Representative Green objected.                                                 
                                                                               
Representative Brown moved and asked unanimous consent that CSHB
199(O&G) and all pending amendments be returned to the Finance                 
Committee.                                                                     
                                                                               
Representative Phillips objected.                                              
                                                                               
                                                                               
The Speaker stated that the House would recess until 5:00 p.m., and            
so, the House recessed at 12:05 p.m.                                           
HB 199                                                                       
CSHB 199(O&G) was again before the House.                                      
                                                                               
Representative Vezey rose to a point of order citing Section 388 of            
Mason's Manual regarding limiting debate to the motion before the              
body.                                                                          
                                                                               
The Speaker cautioned the member to proceed in order.                          
                                                                               
The Speaker invoked Section 102 of Mason's Manual.                             
                                                                               
The call was satisfied.                                                        
                                                                               
The question being:  "Shall CSHB 199((O&G) and all pending                     
amendments be returned to the Finance Committee?"  The roll was                
taken with the following result:                                               

1994-03-14                     House Journal                      Page 2764
HB 199                                                                       
                                                                               
CSHB 199(O&G)                                                                  
Second Reading                                                                 
Return to Finance Committee                                                    
with all pending amendments                                                    
                                                                               
YEAS:  17   NAYS:  23   EXCUSED:  0   ABSENT:  0                             
                                                                               
Yeas:  Brice, Brown, Carney, Davidson, Davies, B.Davis, Finkelstein,           
Grussendorf, Hoffman, Mackie, Menard, Navarre, Nicholia, Nordlund,             
Sitton, Ulmer, Willis                                                          
                                                                               
Nays:  Barnes, Bunde, G.Davis, Foster, Green, Hanley, Hudson, James,           
Kott, Larson, MacLean, Martin, Moses, Mulder, Olberg, Parnell,                 
Phillips, Porter, Sanders, Therriault, Toohey, Vezey, Williams                 
                                                                               
And so, the motion failed.                                                     
                                                                               
Amendment No. 1 was again before the House.  Objection to                      
Amendment No. 1 was not maintained and so, it was adopted.                     
                                                                               
                                                                               
Amendment No. 2 was offered  by Representative Brown:                           
                                                                               
Page 11, lines 26 - 28:                                                        
	Delete "proposed Competitive Oil and Gas Lease Sales 80, 87, and              
88, as the area to be offered in each of those proposed competitive oil        
and gas lease sales"                                                           
	Insert "any area proposed for a competitive oil and gas lease sale            
that"                                                                          
                                                                               
Representative Brown moved and asked unanimous consent that                    
Amendment No. 2 be adopted.                                                    
                                                                               
                                                                               
Representative Green objected.                                                 
                                                                               
                                                                               
The question being:  "Shall Amendment No. 2 be adopted?"  The roll             
was taken with the following result:                                           
                                                                               

1994-03-14                     House Journal                      Page 2765
HB 199                                                                       
                                                                               
CSHB 199(O&G) am                                                               
Second Reading                                                                 
Amendment No. 2                                                                
                                                                               
YEAS:  14   NAYS:  26   EXCUSED:  0   ABSENT:  0                             
                                                                               
Yeas:  Brown, Carney, Davidson, Davies, B.Davis, Finkelstein,                  
Grussendorf, Hoffman, Menard, Nicholia, Nordlund, Sitton, Ulmer,               
Willis                                                                         
                                                                               
Nays:  Barnes, Brice, Bunde, G.Davis, Foster, Green, Hanley, Hudson,           
James, Kott, Larson, Mackie, MacLean, Martin, Moses, Mulder,                   
Navarre, Olberg, Parnell, Phillips, Porter, Sanders, Therriault, Toohey,       
Vezey, Williams                                                                
                                                                               
And so, Amendment No. 2 was not adopted.                                       
                                                                               
                                                                               
Amendment No. 3 was offered  by Representative Brown:                           
                                                                               
Page 6, lines 29 - 30:                                                         
	Delete "The regulations must provide for at least one period for              
that purpose during each calendar year."                                       
                                                                               
Representative Brown moved and asked unanimous consent that                    
Amendment No. 3 be adopted.                                                    
                                                                               
                                                                               
Representative Green objected.                                                 
                                                                               
                                                                               
The question being:  "Shall Amendment No. 3 be adopted?"  The roll             
was taken with the following result:                                           
                                                                               
CSHB 199(O&G) am                                                               
Second Reading                                                                 
Amendment No. 3                                                                
                                                                               
YEAS:  15   NAYS:  25   EXCUSED:  0   ABSENT:  0                             
                                                                               

1994-03-14                     House Journal                      Page 2766
HB 199                                                                       
Yeas:  Brown, Carney, Davidson, Davies, B.Davis, Finkelstein,                  
Grussendorf, Hoffman, Menard, Navarre, Nicholia, Nordlund, Sitton,             
Ulmer, Willis                                                                  
                                                                               
Nays:  Barnes, Brice, Bunde, G.Davis, Foster, Green, Hanley, Hudson,           
James, Kott, Larson, Mackie, MacLean, Martin, Moses, Mulder,                   
Olberg, Parnell, Phillips, Porter, Sanders, Therriault, Toohey, Vezey,         
Williams                                                                       
                                                                               
And so, Amendment No. 3 was not adopted.                                       
                                                                               
                                                                               
Amendment No. 4 was offered  by Representative Brown:                           
                                                                               
Page 7, line 20:                                                               
	Delete "and"                                                                  
                                                                               
Page 7, line 21, after "exploration license":                                  
	Insert ", and (3) describe the process and procedures that will be            
used to solicit competitive sealed bids if more than one proposal was          
submitted for an area"                                                         
                                                                               
Page 7, line 25, after "proposal":                                             
	Insert "for an area"                                                          
                                                                               
Page 8, lines 5 and 6:                                                         
	Delete ", to determine which prospective licensee should be issued            
the exploration license"                                                       
                                                                               
Page 8, line 7, after "licensees":                                             
	Insert "and the public"                                                       
                                                                               
Representative Brown moved and asked unanimous consent that                    
Amendment No. 4 be adopted.                                                    
                                                                               
Representative Green objected.                                                 
                                                                               
                                                                               
Representative Ulmer moved and asked unanimous consent that the                
question be divided into two parts.                                            
                                                                               

1994-03-14                     House Journal                      Page 2767
HB 199                                                                       
The Speaker ruled the question was divisible.                                  
                                                                               
There being no objection, Amendment No. 4 was divided into two                 
parts.                                                                         
                                                                               
Amendment No. 4, Part A:                                                       
                                                                               
Page 7, line 20:                                                               
	Delete "and"                                                                  
                                                                               
Page 7, line 21, after "exploration license":                                  
	Insert ", and (3) describe the process and procedures that will be            
used to solicit competitive sealed bids if more than one proposal was          
submitted for an area"                                                         
                                                                               
Page 7, line 25, after "proposal":                                             
	Insert "for an area"                                                          
                                                                               
Page 8, lines 5 and 6:                                                         
	Delete ", to determine which prospective licensee should be issued            
the exploration license"                                                       
                                                                               
The question being:  "Shall Amendment No. 4, Part A be adopted?"               
The roll was taken with the following result:                                  
                                                                               
CSHB 199(O&G) am                                                               
Second Reading                                                                 
Amendment No. 4, Part A                                                        
                                                                               
YEAS:  18   NAYS:  22   EXCUSED:  0   ABSENT:  0                             
                                                                               
Yeas:  Brice, Brown, Carney, Davidson, Davies, B.Davis, Finkelstein,           
Grussendorf, Hoffman, James, Mackie, MacLean, Menard, Navarre,                 
Nicholia, Nordlund, Ulmer, Willis                                              
                                                                               
Nays:  Barnes, Bunde, G.Davis, Foster, Green, Hanley, Hudson, Kott,            
Larson, Martin, Moses, Mulder, Olberg, Parnell, Phillips, Porter,              
Sanders, Sitton, Therriault, Toohey, Vezey, Williams                           
                                                                               
And so, Amendment No. 4, Part A was not adopted.                               
                                                                               

1994-03-14                     House Journal                      Page 2768
HB 199                                                                       
Amendment No. 4, Part B:                                                       
                                                                               
Page 8, line 7, after "licensees":                                             
	Insert "and the public"                                                       
                                                                               
There being no objection to Amendment No. 4, Part B, it was adopted.           
                                                                               
Amendment No. 5 was offered  by Representative Brown:                           
                                                                               
Page 3, following line 11:                                                     
	Insert a new subsection to read:                                              
	"(e)  The commissioner may not issue exploration licenses to                 
a licensee so that, at any one time, the licensee holds exploration            
licenses on more than 1,000,000 acres."                                        
                                                                               
Page 3, line 29, after "cover":                                                
	Insert ", subject to the maximum acreage limitation on exploration            
licenses by one licensee under AS38.05.131(e),"                                
                                                                               
Representative Brown moved and asked unanimous consent that                    
Amendment No. 5 be adopted.                                                    
                                                                               
Representative Green objected.                                                 
                                                                               
Representative Grussendorf rose to a point of order stating that debate        
should be limited to the motion before the body.                               
                                                                               
The Speaker cautioned the member to proceed in order.                          
                                                                               
Amendment to Amendment No. 5 by Representative Navarre:                        
                                                                               
In subsection (e), following "licenses on more than":                          
                                                                               
	Delete "1,000,000"                                                            
	Insert "2,000,000"                                                            
                                                                               
Representative Navarre moved and asked unanimous consent that the              
amendment to Amendment No. 5 be adopted.                                       
                                                                               
There being no objection, the amendment to Amendment No. 5 was                 
adopted.                                                                       

1994-03-14                     House Journal                      Page 2769
HB 199                                                                        
There being no objection to Amendment No. 5 as amended, it was                
adopted.                                                                       
                                                                               
                                                                               
Amendment No. 6 was offered  by Representative Brown:                           
                                                                               
Page 3, line 29:                                                               
	Delete "not less than 20,000 acres and"                                       
                                                                               
                                                                               
Representative Brown moved and asked unanimous consent that                    
Amendment No. 6 be adopted.                                                    
                                                                               
                                                                               
Representative Green objected.                                                 
                                                                               
                                                                               
The question being:  "Shall Amendment No. 6 be adopted?"  The roll             
was taken with the following result:                                           
                                                                               
CSHB 199(O&G) am                                                               
Second Reading                                                                 
Amendment No. 6                                                                
                                                                               
YEAS:  16   NAYS:  24   EXCUSED:  0   ABSENT:  0                             
                                                                               
                                                                               
Yeas:  Brice, Brown, Carney, Davidson, Davies, B.Davis, Finkelstein,           
Grussendorf, Hoffman, Mackie, Menard, Moses, Navarre, Nicholia,                
Sitton, Willis                                                                 
                                                                               
Nays:  Barnes, Bunde, G.Davis, Foster, Green, Hanley, Hudson, James,           
Kott, Larson, MacLean, Martin, Mulder, Nordlund, Olberg, Parnell,              
Phillips, Porter, Sanders, Therriault, Toohey, Ulmer, Vezey, Williams          
                                                                               
Navarre changed from "Nay" to "Yea".                                           
                                                                               
                                                                               
And so, Amendment No. 6 was not adopted.                                       
                                                                               

1994-03-14                     House Journal                      Page 2770
HB 199                                                                       
Amendment No. 7 was offered  by Representative Brown:                           
                                                                               
Page 3, lines 24 - 25:                                                         
	Delete "upon fulfillment of the work commitments contained in the             
exploration license"                                                           
	Insert "after drilling a well that is capable of producing oil or gas         
in paying quantities"                                                          
                                                                               
Page 8, lines 18 - 19:                                                         
	Delete "the work commitment obligation set out in an oil and gas              
exploration license issued under AS 38.05.132 has been met"                    
	Insert "a well that is capable of producing oil or gas in paying              
quantities has been drilled within the exploration license area"               
                                                                               
                                                                               
Representative Brown moved and asked unanimous consent that                    
Amendment No. 7 be adopted.                                                    
                                                                               
                                                                               
Representative Green objected.                                                 
                                                                               
                                                                               
The question being:  "Shall Amendment No. 7 be adopted?"  The roll             
was taken with the following result:                                           
                                                                               
CSHB 199(O&G) am                                                               
Second Reading                                                                 
Amendment No. 7                                                                
                                                                               
YEAS:  6   NAYS:  34   EXCUSED:  0   ABSENT:  0                              
                                                                               
Yeas:  Brown, Carney, Davidson, Davies, Finkelstein, Grussendorf               
                                                                               
Nays:  Barnes, Brice, Bunde, B.Davis, G.Davis, Foster, Green, Hanley,          
Hoffman, Hudson, James, Kott, Larson, Mackie, MacLean, Martin,                 
Menard, Moses, Mulder, Navarre, Nicholia, Nordlund, Olberg, Parnell,           
Phillips, Porter, Sanders, Sitton, Therriault, Toohey, Ulmer, Vezey,           
Williams, Willis                                                               
                                                                               
And so, Amendment No. 7 was not adopted.                                       
                                                                               

1994-03-14                     House Journal                      Page 2771
HB 199                                                                       
                                                                               
Amendment No. 8 was offered  by Representative Brown:                           
                                                                               
Page 8, line 27, after "production":                                           
                                                                               
	Insert ", together with a cash bonus payable, or a fixed royalty              
share or net profit share reserved, to the state, as the commissioner          
may determine"                                                                 
                                                                               
                                                                               
Representative Brown moved and asked unanimous consent that                    
Amendment No. 8 be adopted.                                                    
                                                                               
                                                                               
Representative Green objected.                                                 
                                                                               
                                                                               
The question being:  "Shall Amendment No. 8 be adopted?"  The roll             
was taken with the following result:                                           
                                                                               
                                                                               
CSHB 199(O&G) am                                                               
Second Reading                                                                 
Amendment No. 8                                                                
                                                                               
YEAS:  13   NAYS:  27   EXCUSED:  0   ABSENT:  0                             
                                                                               
                                                                               
Yeas:  Brown, Carney, Davidson, Davies, B.Davis, Finkelstein,                  
Grussendorf, MacLean, Menard, Nicholia, Nordlund, Sitton, Willis               
                                                                               
                                                                               
Nays:  Barnes, Brice, Bunde, G.Davis, Foster, Green, Hanley,                   
Hoffman, Hudson, James, Kott, Larson, Mackie, Martin, Moses,                   
Mulder, Navarre, Olberg, Parnell, Phillips, Porter, Sanders, Therriault,       
Toohey, Ulmer, Vezey, Williams                                                 
                                                                               
                                                                               
And so, Amendment No. 8 was not adopted.                                       

1994-03-14                     House Journal                      Page 2772
HB 199                                                                       
Amendment No. 9 was offered  by Representative Brown:                           
                                                                               
Page 11, lines 11 - 23:                                                        
                                                                               
	Delete all material.                                                          
                                                                               
Renumber the following bill sections accordingly.                              
                                                                               
                                                                               
Page 12, line 6:                                                               
	Delete "secs. 2 - 7"                                                          
	Insert "secs. 2 - 6"                                                          
                                                                               
                                                                               
Page 12, line 7:                                                               
	Delete "Section 8"                                                            
	Insert "Section 7"                                                            
                                                                               
                                                                               
Representative Brown moved and asked unanimous consent that                    
Amendment No. 9 be adopted.                                                    
                                                                               
                                                                               
Representative Green objected.                                                 
                                                                               
                                                                               
The question being:  "Shall Amendment No. 9 be adopted?"  The roll             
was taken with the following result:                                           
                                                                               
                                                                               
CSHB 199(O&G) am                                                               
Second Reading                                                                 
Amendment No. 9                                                                
                                                                               
                                                                               
YEAS:  13   NAYS:  27   EXCUSED:  0   ABSENT:  0                             
                                                                               
                                                                               
Yeas:  Brown, Carney, Davidson, Davies, B.Davis, Finkelstein,                  
Hoffman, Menard, Navarre, Nicholia, Nordlund, Ulmer, Willis                    
                                                                               

1994-03-14                     House Journal                      Page 2773
HB 199                                                                       
Nays:  Barnes, Brice, Bunde, G.Davis, Foster, Green, Grussendorf,              
Hanley, Hudson, James, Kott, Larson, Mackie, MacLean, Martin,                  
Moses, Mulder, Olberg, Parnell, Phillips, Porter, Sanders, Sitton,             
Therriault, Toohey, Vezey, Williams                                            
                                                                               
And so, Amendment No. 9 was not adopted.                                       
                                                                               
                                                                               
Amendment No. 10 was offered  by Representative Brown:                          
                                                                               
Page 3, lines 4 - 9:                                                           
	Delete all material.                                                          
                                                                               
Reletter the following subsection accordingly.                                 
                                                                               
Representative Brown moved and asked unanimous consent that                    
Amendment No. 10 be adopted.                                                   
                                                                               
                                                                               
Representative Green objected.                                                 
                                                                               
                                                                               
The question being:  "Shall Amendment No. 10 be adopted?"  The roll            
was taken with the following result:                                           
                                                                               
CSHB 199(O&G) am                                                               
Second Reading                                                                 
Amendment No. 10                                                               
                                                                               
YEAS:  8   NAYS:  32   EXCUSED:  0   ABSENT:  0                              
                                                                               
Yeas:  Brown, Carney, Davidson, Finkelstein, Nicholia, Nordlund,               
Sitton, Willis                                                                 
                                                                               
Nays:  Barnes, Brice, Bunde, Davies, B.Davis, G.Davis, Foster, Green,          
Grussendorf, Hanley, Hoffman, Hudson, James, Kott, Larson, Mackie,             
MacLean, Martin, Menard, Moses, Mulder, Navarre, Olberg, Parnell,              
Phillips, Porter, Sanders, Therriault, Toohey, Ulmer, Vezey, Williams          
                                                                               
And so, Amendment No. 10 was not adopted.                                      
                                                                               

1994-03-14                     House Journal                      Page 2774
HB 199                                                                       
Amendment No. 11 was offered  by Representative Brown:                          
                                                                               
Page 3, line 30:                                                               
	Delete "500,000 acres"                                                        
	Insert "100,000 acres"                                                        
                                                                               
Representative Brown moved and asked unanimous consent that                    
Amendment No. 11 be adopted.                                                   
                                                                               
Representative Green objected.                                                 
                                                                               
The question being:  "Shall Amendment No. 11 be adopted?"  The roll            
was taken with the following result:                                           
                                                                               
CSHB 199(O&G) am                                                               
Second Reading                                                                 
Amendment No. 11                                                               
                                                                               
YEAS:  10   NAYS:  30   EXCUSED:  0   ABSENT:  0                             
                                                                               
Yeas:  Brown, Carney, Davidson, Davies, B.Davis, Finkelstein,                  
Grussendorf, Hoffman, Menard, Sitton                                           
                                                                               
Nays:  Barnes, Brice, Bunde, G.Davis, Foster, Green, Hanley, Hudson,           
James, Kott, Larson, Mackie, MacLean, Martin, Moses, Mulder,                   
Navarre, Nicholia, Nordlund, Olberg, Parnell, Phillips, Porter, Sanders,       
Therriault, Toohey, Ulmer, Vezey, Williams, Willis                             
                                                                               
And so, Amendment No. 11 was not adopted.                                      
                                                                               
                                                                               
Amendment No. 12 was offered  by Representative Brown:                          
                                                                               
Page 2, line 26:                                                               
	Delete "land"                                                                 
                                                                               
Page 2, line 27:                                                               
	After "(1)"                                                                   
	Insert "land"                                                                 
	Delete "and"                                                                  
                                                                               

1994-03-14                     House Journal                      Page 2775
HB 199                                                                       
Page 2, line 28, after "(2)":                                                  
	Insert "land"                                                                 
                                                                               
Page 3, line 3, after "Meridian":                                              
	Insert "; and                                                                 
			(3)  tide and submerged lands"                                              
                                                                               
Representative Brown moved and asked unanimous consent that                    
Amendment No. 12 be adopted.                                                   
                                                                               
Representative Green objected.                                                 
                                                                               
The question being:  "Shall Amendment No. 12 be adopted?"  The roll            
was taken with the following result:                                           
                                                                               
CSHB 199(O&G) am                                                               
Second Reading                                                                 
Amendment No. 12                                                               
                                                                               
YEAS:  11   NAYS:  29   EXCUSED:  0   ABSENT:  0                             
                                                                               
Yeas:  Brown, Carney, Davidson, B.Davis, Finkelstein, Grussendorf,             
Navarre, Nicholia, Nordlund, Ulmer, Willis                                     
                                                                               
Nays:  Barnes, Brice, Bunde, Davies, G.Davis, Foster, Green, Hanley,           
Hoffman, Hudson, James, Kott, Larson, Mackie, MacLean, Martin,                 
Menard, Moses, Mulder, Olberg, Parnell, Phillips, Porter, Sanders,             
Sitton, Therriault, Toohey, Vezey, Williams                                    
                                                                               
                                                                               
And so, Amendment No. 12 was not adopted.                                      
                                                                               
                                                                               
Amendment No. 13 was offered  by Representative Brown:                          
                                                                               
Page 1, line 1, through page 12, line 7:                                       
	Delete all material and insert:                                               
"An Act relating to oil and gas leases."                                     
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF                               
ALASKA:                                                                        
   * Section 1.  AS 38.05.140(c) is amended to read:                         

1994-03-14                     House Journal                      Page 2776
HB 199                                                                       
	(c)  A person may not take or hold at one time phosphate                     
leases on state land exceeding in the aggregate 10,240 acres.  A               
person may not take or hold sodium leases or permits during the                
life of sodium leases on state land exceeding in the aggregate                 
acreage 5,120 acres, except that the commissioner may, where it                
is necessary in order to secure the economic mining of sodium                  
compounds, permit a person to take or hold sodium leases or                    
permits for up to 15,360 acres. A person may not take or hold at               
any one time oil or gas leases exceeding in the aggregate 750,000          
[500,000] acres granted on tide and submerged land and 750,000             
[500,000] acres on all land other than tide and submerged land,                
including leases held both as lessee and under option or operating             
agreement from others.  Where more than a single person holds an               
interest in an oil or gas lease, each person shall be charged only             
with that percentage of the total acreage that [WHICH]                     
corresponds to its percentage share of the total beneficial interest           
in the lease.                                                                  
                                                                               
   * Sec. 2.  AS 38.05.180(m) is amended to read:                            
	(m)  An oil and gas lease must cover a reasonably compact                    
area not exceeding 20,000 [5,760] acres, and may be for a                  
maximum period of 10 years, except that the commissioner may                   
issue a lease for a period not less than five years upon a finding             
that it is in the best interests of the state.  An oil and gas lease           
shall be automatically extended if and for so long thereafter as oil           
or gas is produced in paying quantities from the lease or if the               
lease is committed to a unit approved by the commissioner.  A                  
lease issued under this section covering land on which there is a              
well capable of producing oil or gas in paying quantities does not             
expire because the lessee fails to produce oil or gas unless the               
lessee is allowed reasonable time to place the well on a producing             
status.  Upon extension, the commissioner may increase lease                   
rentals so long as the increased rental rate does not exceed 150               
percent of the rate for the preceding year.  If drilling has                   
commenced on the expiration date of the primary term of the lease              
and is continued with reasonable diligence, including such                     
operations as redrilling, sidetracking, or other means necessary to            
reach the originally proposed bottom hole location, the lease                  
continues in effect until 90 days after drilling has ceased and for            
so long thereafter as oil or gas is produced in paying quantities.             
                                                                               

1994-03-14                     House Journal                      Page 2777
HB 199                                                                       
An oil and gas lease issued under this section that [WHICH] is            
subject to termination by reason of cessation of production does               
not terminate if, within 60 days after production ceases, reworking            
or drilling operations are commenced on the land under lease and               
are thereafter conducted with reasonable diligence during the                  
period of nonproduction."                                                      
                                                                               
Representative Brown moved and asked unanimous consent that                    
Amendment No. 13 be adopted.                                                   
                                                                               
Representative Green objected.                                                 
                                                                               
The question being:  "Shall Amendment No. 13 be adopted?"  The roll            
was taken with the following result:                                           
                                                                               
CSHB 199(O&G) am                                                               
Second Reading                                                                 
Amendment No. 13                                                               
                                                                               
YEAS:  5   NAYS:  35   EXCUSED:  0   ABSENT:  0                              
                                                                               
Yeas:  Brown, Carney, Davidson, Finkelstein, Grussendorf                       
                                                                               
Nays:  Barnes, Brice, Bunde, Davies, B.Davis, G.Davis, Foster, Green,          
Hanley, Hoffman, Hudson, James, Kott, Larson, Mackie, MacLean,                 
Martin, Menard, Moses, Mulder, Navarre, Nicholia, Nordlund, Olberg,            
Parnell, Phillips, Porter, Sanders, Sitton, Therriault, Toohey, Ulmer,         
Vezey, Williams, Willis                                                        
                                                                               
And so, Amendment No. 13 was not adopted.                                      
                                                                               
                                                                               
Amendment No. 14 was offered  by Representative Brown:                          
                                                                               
Page 1, lines 2 and 3 (title amendment):                                       
	Delete "in certain areas of the state"                                      
                                                                               
Page 9, lines 12 - 15:                                                         
	Delete "In unproven areas the commissioner may offer additional               
incentives, including a reduction of royalty to a minimum of five              
                                                                               

1994-03-14                     House Journal                      Page 2778
HB 199                                                                       
percent in the case of oil and gas, and other terms in and granting a      
permit or lease for exploration and development whenever it appears            
to be in the best interests of the state to do so."                            
	Insert "[IN UNPROVEN AREAS THE COMMISSIONER MAY                               
OFFER ADDITIONAL INCENTIVES, INCLUDING A REDUCTION                             
OF ROYALTY TO A MINIMUM OF FIVE PERCENT IN THE                                 
CASE OF OIL AND GAS, AND OTHER TERMS IN AND                                    
GRANTING PERMIT OR LEASE FOR EXPLORATION AND                                   
DEVELOPMENT WHENEVER IT APPEARS TO BE IN THE BEST                              
INTERESTS OF THE STATE TO DO SO.]"                                             
                                                                               
Representative Brown moved and asked unanimous consent that                    
Amendment No. 14 be adopted.                                                   
                                                                               
Representative Green objected.                                                 
                                                                               
The question being:  "Shall Amendment No. 14 be adopted?"  The roll            
was taken with the following result:                                           
                                                                               
CSHB 199(O&G) am                                                               
Second Reading                                                                 
Amendment No. 14                                                               
                                                                               
YEAS:  15   NAYS:  25   EXCUSED:  0   ABSENT:  0                             
                                                                               
Yeas:  Brice, Brown, Carney, Davidson, Davies, B.Davis, Finkelstein,           
Grussendorf, Hoffman, Menard, Navarre, Nordlund, Sitton, Ulmer,                
Willis                                                                         
                                                                               
Nays:  Barnes, Bunde, G.Davis, Foster, Green, Hanley, Hudson, James,           
Kott, Larson, Mackie, MacLean, Martin, Moses, Mulder, Nicholia,                
Olberg, Parnell, Phillips, Porter, Sanders, Therriault, Toohey, Vezey,         
Williams                                                                       
                                                                               
And so, Amendment No. 14 was not adopted.                                      
                                                                               
                                                                               
Representative Phillips moved and asked unanimous consent that                 
CSHB 199(O&G) am be considered engrossed, advanced to third                    
reading and placed on final passage.                                           
                                                                               

1994-03-14                     House Journal                      Page 2779
HB 199                                                                       
Representative Ulmer objected.                                                 
                                                                               
The question being:  "Shall CSHB 199(O&G) am be advanced to third              
reading on the same day?"  The roll was taken with the following               
result:                                                                        
                                                                               
CSHB 199(O&G) am                                                               
Second Reading                                                                 
Advance to Third Reading                                                       
                                                                               
YEAS:  23   NAYS:  17   EXCUSED:  0   ABSENT:  0                             
                                                                               
Yeas:  Barnes, Bunde, G.Davis, Foster, Green, Hanley, Hudson, James,           
Kott, Larson, MacLean, Martin, Moses, Mulder, Olberg, Parnell,                 
Phillips, Porter, Sanders, Therriault, Toohey, Vezey, Williams                 
                                                                               
Nays:  Brice, Brown, Carney, Davidson, Davies, B.Davis, Finkelstein,           
Grussendorf, Hoffman, Mackie, Menard, Navarre, Nicholia, Nordlund,             
Sitton, Ulmer, Willis                                                          
                                                                               
And so, lacking the necessary 30 votes, CSHB 199(O&G) am failed                
to advance and will be in third reading on tomorrow's calendar.