Legislature(1993 - 1994)

1994-03-09 Senate Journal

Full Journal pdf

1994-03-09                     Senate Journal                      Page 3118
SB 322                                                                       
SENATE BILL NO. 322 "An Act repealing the limitation on delays                 
imposed on oil and gas lease sales under the Alaska Land Act" was              
read the second time.                                                          
                                                                               
Senator Pearce moved and asked unanimous consent for the adoption              
of the Finance Committee Substitute offered on page 2989.  Without             
objection, CS FOR SENATE BILL NO. 322(FIN) "An Act repealing                   
the requirement that an oil or gas lease sale be held during the               
calendar quarter for which scheduled under the leasing program and             
repealing related allowable delays for certain oil and gas lease sales         
under the Alaska Land Act; and providing for an effective date" was            
adopted.                                                                       
                                                                               
CS FOR SENATE BILL NO. 322(FIN) was read the second time.                      
                                                                               
Senator Little offered Amendment No. 1 :                                        
                                                                               
Page 1, line 1, after "An Act":                                              
	Insert "relating to the Alaska Land Act, amending the                        
requirements relating to best interest findings and the                        
requirements of notice and hearing applicable to the Department                
of Natural Resources under that Act as they relate to the                      
disposition of state land, property, resources, or interests in them,          
and"                                                                          
                                                                               
Page 1, line 3:                                                                
	Delete "the Alaska Land"                                                    
	Insert "that"                                                               
                                                                               
Page 1, line 6, after "Section 1.":                                          
	Insert "AS38.05.035(e) is amended to read:                                    
		(e)  Upon the issuance of a final written finding                    
that the interests of the state will be best served, the director may,         
with the consent of the commissioner, approve contracts for the sale,          
lease, or other disposal of available land, resources, property or             
interests in them, and, in addition to the conditions and limitations          
imposed by law, may impose  additional conditions or limitations in            

1994-03-09                     Senate Journal                      Page 3119
SB 322                                                                       
the contracts as the director determines, with the consent of the              
commissioner, will best serve the interests of the state.  A written           
finding for an oil and gas lease sale under AS38.05.180 is subject             
to (g) of this section.  A contract for the sale, lease, or other              
disposal of available land or an interest in land is not legally binding       
on the state until the commissioner approves the contract but, if the      
appraised value is not greater than $50,000 in the case of the sale            
of land or an interest in land, or $5,000 in the case of the annual            
rental of land or interest in land, the director may execute the               
contract without the approval of the commissioner.  Before a public            
hearing, if held, or in any case not [NO] less than 180 days before      
the sale, lease, or other disposal of available land or an interest            
in land for oil and gas subject to AS38.05.180(b), the director                
shall make available to the public a preliminary written finding               
that sets out the facts and applicable law upon which the                      
determination that the sale, lease, or other disposal will best                
serve the interests of the state will be based together with the               
information required by (g) of this section.  Before a public                  
hearing, if held, or in any case not less than 21 days before the            
sale, lease, or other disposal of available land, property, resources,         
or interests in them not subject to AS38.05.180(b), the director           
shall make available to the public a written finding that sets out the         
facts and applicable law upon which the determination that the sale,           
lease, or other disposal will best serve the interests of the state was        
based.  For a sale, lease, or other disposal of available land or an         
interest in land for oil and gas subject to AS38.05.180(b), the                
director shall provide opportunity for public comment on the                   
preliminary written finding for a period of not less than 60 days              
but the director may extend a public comment period on the                     
preliminary written finding for an additional 30 days.  Following              
receipt and consideration of any public comments to the                        
preliminary written finding for a sale, lease, or other disposal of            
available land or an interest in land for oil and gas subject to               
AS38.05.180(b), the director shall prepare and issue a final                   
written finding not less than 21 days before the sale, lease, or               
other disposal of available land, property, resources, or interests            
in them.  The final written finding for a sale, lease, or other                
disposal of available land or an interest in land for oil and gas              
subject to AS38.05.180(b) must set out the facts and applicable                
law upon which the determination that the sale, lease, or other                
disposal  will best serve the interests of the state was based, must         

1994-03-09                     Senate Journal                      Page 3120
SB 322                                                                       
provide the information required by (g) of this section, and must            
be given notice as required by AS38.05.945(b)(3). A written                 
finding is not required before the approval of                                 
			(1)  a contract for a negotiated sale                                       
authorized under AS38.05.115;                                                  
			(2)  a lease of land for a shore fishery site                               
under AS38.05.082;                                                             
			(3)  a permit or other authorization revocable                              
by the commissioner;                                                           
			(4)  a mineral claim located under                                          
AS38.05.195;                                                                   
			(5)  a mineral lease issued under                                           
AS38.05.205;                                                                   
			(6)  a production license issued under                                      
AS38.05.207;                                                                   
			(7)  an exempt oil and gas sale under                                       
AS38.05.180(d) of acreage offered in a sale that was held within               
the previous five years if the sale was subject to a written best              
interest finding, unless the commissioner determines that new                  
information has become available that justifies a revision of the best         
interest finding; or                                                           
			(8)  a lease sale under AS38.05.180(w) of                                   
acreage offered in a sale that was held within the previous five years         
if the sale was subject to a best interest finding, unless the                 
commissioner determines that new information has become available              
that justifies a revision of the best interest finding.                        
   * Sec. 2.  AS38.05.035(g) is amended to read:                             
		(g)  When the director prepares a preliminary                              
written finding and the final written finding required under (e) of          
this section for an oil and gas lease sale scheduled under                     
AS38.05.180, the director shall consider and discuss in the finding            
			(1)  facts that are known to the director at                                
the time of preparation of the finding and that are material to the            
following matters or, for a final finding, to issues that were raised      
during the period allowed for receipt of public comment:                       
				(A)  property descriptions and                                             
locations;                                                                     
				(B)  the petroleum potential of the                                        
sale area, in general terms;                                                   
				(C)  fish and wildlife species and                                         
their habitats in the area;                                                    

1994-03-09                     Senate Journal                      Page 3121
SB 322                                                                       
				(D)  the current and projected uses                                        
in the area, including uses and value of fish and wildlife;                    
				(E)  the governmental powers to                                            
regulate oil and gas exploration, development, production, and                 
transportation;                                                                
				(F)  the reasonably foreseeable                                            
cumulative effects of oil and gas exploration, development,                    
production, and transportation on the sale area, including effects on          
subsistence uses, fish and wildlife habitat and populations and their          
uses, and historic and cultural resources;                                     
				(G)  lease stipulations and mitigation                                     
measures, including any measures to prevent and mitigate releases of           
oil and hazardous substances, to be included in the leases, and a              
discussion of the protections offered by these measures;                       
				(H)  the method or methods most                                            
likely to be used to transport oil or gas from the lease sale area, and        
the advantages, disadvantages, and relative risks of each;                     
				(I)  the reasonably foreseeable fiscal                                     
effects of the lease sale and the subsequent activity on the state and         
affected municipalities and communities, including the explicit and            
implicit subsidies associated with the lease sale, if any;                     
				(J)  the reasonably foreseeable                                            
effects of oil and gas exploration, development, production, and               
transportation on municipalities and communities within or adjacent            
to the lease sale area; and                                                    
				(K)  the bidding method or methods                                         
adopted by the commissioner under AS38.05.180;                                 
			(2)  a summary of agency and public                                         
comments received and the department's responses to those                      
comments if the written finding is a final finding; and                    
			(3)  the basis for the director's preliminary                             
or final finding, as applicable, [DETERMINATION] that, on                    
balance, leasing the area would be in the state's best interest.               
   * Sec. 3."                                                                
                                                                               
Page 2, following line 7:                                                      
	Insert new bill sections to read:                                             
   "* Sec. 4.  AS38.05.945(a) is amended to read:                            
		(a)  This section establishes the requirements for                           
notice given by the department for the following actions:                      
                                                                               

1994-03-09                     Senate Journal                      Page 3122
SB 322                                                                       
			(1)  classification or reclassification of state                            
land under AS38.05.300 and the closing of land to mineral leasing              
or entry under AS38.05.185;                                                    
			(2)  zoning of land under applicable law;                                   
			(3)  each of the following relating to                                    
interests in state land or resources:                                          
				(A)  a preliminary finding [A                                            
DECISION] under AS38.05.035(e) regarding the sale, lease, or                   
disposal of an interest in state land or resources for oil and gas           
subject to AS38.05.180(b);                                                     
				(B)  a final finding under                                                 
AS38.05.035(e) regarding the sale, lease, or disposal of an                    
interest in state land or resources for oil and gas subject to                 
AS38.05.180(b); and                                                            
				(C)  a decision under                                                      
AS38.05.035(e) regarding the sale, lease, or disposal of an                    
interest in state land or resources other than for oil and gas                 
subject to AS38.05.180(b);                                                   
			(4)  a competitive disposal of an interest in                               
state land or resources after final decision under AS38.05.035(e);             
			(5)  a public hearing under AS38.05.856(b);                                 
			(6)  a preliminary finding under                                            
AS38.05.035(e) and 38.05.855(c) concerning sites for aquatic farms             
and related hatcheries.                                                        
   * Sec. 5.  AS38.05.945(b) is amended to read:                             
		(b)  When notice is required to be given under                             
this section,                                                                  
			(1)  the notice must contain sufficient                                     
information in commonly understood terms to inform the public                  
of the nature of the action and the opportunity of the public to               
comment on it;                                                                 
			(2)  if the notice is of an action described                                
in (a)(3)(A) of this section, the department shall give notice for             
a period of at least seven consecutive days at the beginning of                
the period to receive public comment on the preliminary written                
finding, inviting the public to submit comments; the department                
shall give notice                                                              
				(A)  by publication of a legal                                             
notice in newspapers of statewide circulation and in newspapers                
of general circulation in the vicinity of the proposed action;               
                                                                               

1994-03-09                     Senate Journal                      Page 3123
SB 322                                                                       
				(B)  by publication of notice in                                         
display advertising form in the newspapers described in (A) of                 
this paragraph;                                                                
				(C)  by radio advertising in the                                           
vicinity of the proposed action; and                                           
				(D)  by placing copies of maps at                                          
public places in the vicinity of the proposed action; the maps                 
must display the area proposed for disposal under this paragraph               
in relationship to adjacent communities, roads, and other readily              
identifiable natural features;                                                 
			(3)  if the notice is of an action [NOTICE                                
OF ONE OR MORE ACTIONS] described in (a)(1), (2), (3)(B) or                  
(C), or (4) - (6) [(a)] of this section, the department shall give         
notice [SHALL BE GIVEN] at least 30 days before the action by                
publication in newspapers of statewide circulation and in newspapers           
of general circulation in the vicinity of the proposed action;               
			(4)  in addition to compliance with the                                     
requirements of the appropriate paragraphs of this subsection,                 
the department shall give notice using [AND] one or more of the              
following methods:                                                             
				(A) [(1)]  publication through public                                  
service announcements on the electronic media serving the area                 
affected by the action;                                                        
				(B) [(2)]  posting in a conspicuous                                    
location in the vicinity of the action;                                        
				(C) [(3)]  notification of parties                                     
known or likely to be affected by the action; or                               
				(D) [(4)]  another method calculated                                   
to reach affected persons.  [A NOTICE SHALL CONTAIN                            
SUFFICIENT INFORMATION IN COMMONLY UNDERSTOOD                                  
TERMS TO INFORM THE PUBLIC OF THE NATURE OF THE                                
ACTION AND THE OPPORTUNITY OF THE PUBLIC TO                                    
COMMENT ON THE ACTION.]                                                        
   * Sec. 6.  AS38.05.945(c) is amended to read:                             
		(c)  When notice is required to be given under (b)                         
of this section for an [NOTICE AT LEAST 30 DAYS BEFORE]                      
action under (a) of this section, the department shall also give         
notice, not later than the appropriate deadline set out in (b) of              
this section, [BE GIVEN] to the following:                                   
                                                                               
                                                                               

1994-03-09                     Senate Journal                      Page 3124
SB 322                                                                       
			(1)  to a municipality if the land is within                                
the boundaries of the municipality, to a coordinating body established         
by community councils in a municipality if the coordinating body or            
a community council within the area served by a coordinating body              
requests notice in writing; [:] if there is no coordinating body within    
the municipality, notice shall be provided to each community council           
established by the charter or ordinance of the municipality if the             
land is located within the boundaries of the municipality and if the           
community council requests notice in writing;                                  
			(2)  to a regional corporation if the                                       
boundaries of the corporation as established by 43 U.S.C. 1606(a)            
(sec.7(a) of the Alaska Native Claims Settlement Act) encompass          
the land and the land is outside a municipality;                               
			(3)  to a village corporation organized under                               
43 U.S.C. 1607(a) (sec.8(a) of the Alaska Native Claims Settlement         
Act) if the land is within 25 miles of the village for which the           
corporation was established and the land is located outside a                  
municipality;                                                                  
			(4)  to the postmaster of a permanent                                       
settlement of more than 25 persons located within 25 miles of the              
land if the land is located outside a municipality, with a request that        
the notice be posted in a conspicuous location;                                
			(5)  to a nonprofit community organization                                  
or a governing body that has requested notification in writing and             
provided a map of its boundaries, if the land is within the                    
boundaries."                                                                   
                                                                               
Renumber the following bill section accordingly.                               
                                                                               
Senator Little moved for the adoption of Amendment No. 1.                      
                                                                               
Senator Duncan called the Senate.                                              
                                                                               
President Halford stated the call was satisfied.                               
                                                                               
The question being: "Shall Amendment No. 1 be adopted?"  The roll              
was taken with the following result:                                           
                                                                               
                                                                               

1994-03-09                     Senate Journal                      Page 3125
SB 322                                                                       
                                                                               
CSSB 322(FIN)                                                                  
Second Reading                                                                 
Amendment No. 1                                                                
                                                                               
YEAS:  9   NAYS:  11   EXCUSED:  0   ABSENT:  0                              
                                                                               
Yeas:  Adams, Donley, Duncan, Ellis, Kerttula, Lincoln, Little, Salo,          
Zharoff                                                                        
                                                                               
Nays:  Frank, Halford, Jacko, Kelly, Leman, Miller, Pearce, Phillips,          
Rieger, Sharp, Taylor                                                          
                                                                               
and so, Amendment No. 1 failed.                                                
                                                                               
Senator Taylor moved and asked unanimous consent that CS FOR                   
SENATE BILL NO. 322(FIN) be considered engrossed, advanced to                  
third reading and placed on final passage.  Senator Duncan objected.           
                                                                               
The question being: "Shall CS FOR SENATE BILL NO. 322(FIN)                     
be advanced to third reading?"  The roll was taken with the                    
following result:                                                              
                                                                               
CSSB 322(FIN)                                                                  
Advance from Second to Third Reading?                                          
                                                                               
YEAS:  11   NAYS:  9   EXCUSED:  0   ABSENT:  0                              
                                                                               
Yeas:  Frank, Halford, Jacko, Kelly, Leman, Miller, Pearce, Phillips,          
Rieger, Sharp, Taylor                                                          
                                                                               
Nays:  Adams, Donley, Duncan, Ellis, Kerttula, Lincoln, Little, Salo,          
Zharoff                                                                        
                                                                               
and so, the bill failed to advance to third reading.