Legislature(2003 - 2004)

2004-04-30 House Journal

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2004-04-30                     House Journal                      Page 3689
HB 395                                                                                            
The following was read the second time:                                                             
                                                                                                    
     HOUSE BILL NO. 395                                                                             
     "An Act relating to shallow natural gas leasing and the regulation                             
     of shallow natural gas operations."                                                            
                                                                                                    
with the:                                                    Journal Page                           
                                                                                                    
 O&G RPT CS(O&G) NT 1DP 3NR 1AM                                      2936                           
 FN1: (DNR)                                                          3034                           

2004-04-30                     House Journal                      Page 3690
 RES RPT CS(RES) NT 2DP 3NR                                          3360                           
 FN2: (DNR)                                                          3360                           
 JUD REFERRAL WAIVED                                                 3472                           
 FIN RPT CS(FIN) NT 6DP 1NR                                          3573                           
 FN2: (DNR)                                                          3574                           
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
following committee substitute be adopted in lieu of the original bill:                             
                                                                                                    
     CS FOR HOUSE BILL NO. 395(FIN)                                                                 
     "An Act relating to the recovery of shallow natural gas, to the                                
     regulation of shallow natural gas or coal bed methane operations,                              
     and to oil and gas leasing operations involving activities not                                 
     governed under the Alaska Land Act; contingently redesignating                                 
     shallow natural gas as nonconventional gas, and relating to the                                
     regulation of that gas under that contingency; and providing for an                            
     effective date."                                                                               
                                                                                                    
There being no objection, it was so ordered.                                                        
                                                                                                    
Representative Kerttula declared a conflict of interest (page 3686).                                
                                                                                                    
Amendment No. 1 was offered  by Representatives Harris and Gara:                                     
                                                                                                    
Page 1, following line 6:                                                                           
 Insert a new bill section to read:                                                                 
"* Section 1.  AS 29.40.040 is amended by adding a new subsection                                 
to read:                                                                                            
         (c)  Land use regulations of a municipality adopted under this                             
     section establishing allowable uses and limitations on                                         
     nonconventional gas exploration and development activities,                                    
     including limitations that protect neighborhoods, protect the safety                           
     of residents, and limit audible noise, shall be given effect to the                            
     fullest extent allowed under the Constitution of the State of                                  
     Alaska."                                                                                       
                                                                                                    
Page 1, line 7:                                                                                     
 Delete "Section 1."                                                                              
 Insert "Sec. 2."                                                                                 
                                                                                                    

2004-04-30                     House Journal                      Page 3691
Renumber the following bill sections accordingly.                                                   
                                                                                                    
Page 8, line 8, following "payment":                                                                
 Insert ";                                                                                      
              (3)  unless provision is otherwise made in the lease by                           
     the Alaska Oil and Gas Conservation Commission under                                       
     AS 31.05.030(j) that would govern the lessee's disposal of                                 
     water produced from a coal seam as salt water or nonpotable                                
     water in a manner that does not add to or contaminate surface                              
     or subsurface water supplies, the lease must contain a term or                             
     condition that governs the lessee's disposal of the produced                               
     water in a manner that does not add to or contaminate surface                              
     water supplies; and                                                                        
              (4)  the lease must contain a term or condition that                              
     protects the water quality, water quantity, and habitat of fish-                           
     bearing surface water; the term or condition may not take                                  
       effect until approved by the commissioner of fish and game"                             
                                                                                                    
Page 9, line 3:                                                                                     
 Delete "and"                                                                                   
                                                                                                    
Page 9, line 6, following "entry":                                                              
 Insert ";                                                                                      
              (5)  for management and oversight of nonconventional                              
     gas, shall adopt regulations under AS 38.05.127(b) and this                                
     paragraph to ensure that exploration and development                                       
     activities under a gas only lease for nonconventional gas do                               
     not materially interfere with the public's right to access and                             
     enjoy recreational waters, waters that contain appreciable                                 
     quantities of resident or anadromous fish, and areas                                       
     important to sport or subsistence hunting activities"                                      
                                                                                                    
Page 12, line 14, following "entry":                                                                
 Insert ";                                                                                          
              (5)  for management and oversight of nonconventional                                  
     gas,                                                                                           
           (A)  the commissioner shall adopt regulations under                                      
         AS 38.05.127(b) and this subparagraph to ensure that                                       
         exploration and development activities under a gas only lease                              
         for nonconventional gas do not materially interfere with the                               

2004-04-30                     House Journal                      Page 3692
         public's right to access and enjoy recreational waters, waters                             
         that contain appreciable quantities of resident or anadromous                              
         fish, and areas important to sport or subsistence hunting                                  
         activities;                                                                                
           (B)  unless provision is otherwise made in the lease                                     
         by the Alaska Oil and Gas Conservation Commission under                                    
         AS 31.05.030(j) that would govern the lessee's disposal of                                 
         water produced from a coal seam as salt water or nonpotable                                
         water in a manner that does not add to or contaminate surface                              
         or subsurface water supplies, the lease must contain a term or                             
         condition that governs the lessee's disposal of the produced                               
         water in a manner that does not add to or contaminate surface                              
         water supplies; and                                                                        
           (C)  the lease must contain a term or condition that                                     
         protects the water quality, water quantity, and habitat of fish-                           
         bearing surface water; the term or condition may not take                                  
         effect until approved by the commissioner of fish and game"                                
                                                                                                    
Page 17, line 31:                                                                                   
 Delete "sec. 8"                                                                                    
 Insert "sec. 9"                                                                                    
                                                                                                    
Page 18, line 1:                                                                                    
 Delete "sec. 9"                                                                                    
 Insert "sec. 10"                                                                                   
 Delete "sec. 10"                                                                                   
 Insert "sec. 11"                                                                                   
                                                                                                    
Page 18, line 2:                                                                                    
 Delete "sec. 11                                                                                    
 Insert "sec. 12"                                                                                   
                                                                                                    
Page 18, line 3:                                                                                    
 Delete "sec. 12"                                                                                   
 Insert "sec. 13"                                                                                   
                                                                                                    
Page 18, line 4:                                                                                    
 Delete "secs. 8 - 12"                                                                              
 Insert "secs. 9 - 13"                                                                              
                                                                                                    

2004-04-30                     House Journal                      Page 3693
Page 18, line 12:                                                                                   
 Delete "sec. 13"                                                                                   
 Insert "sec. 14"                                                                                   
                                                                                                    
Page 18, line 15:                                                                                   
 Delete "Sections 2, 4, 6, 13, 16, 18, 20, 23, and 25"                                              
 Insert "Sections 3, 5, 7, 14, 17, 19, 21, 24, and 26"                                              
                                                                                                    
Page 18, line 20:                                                                                   
 Delete "sec. 26"                                                                                   
 Insert "sec. 27"                                                                                   
 Delete "Sections 2, 4, 6, 13, 16, 18, 20, 23, and 25"                                              
 Insert "Sections 3, 5, 7, 14, 17, 19, 21, 24, and 26"                                              
                                                                                                    
Page 18, line 22:                                                                                   
 Delete "sec. 26"                                                                                   
 Insert "sec. 27"                                                                                   
                                                                                                    
Page 18, line 26:                                                                                   
 Delete "sec. 27"                                                                                   
 Insert "sec. 28"                                                                                   
                                                                                                    
                                                                                                    
Representative Gara moved and asked unanimous consent that                                          
Amendment No. 1 be adopted.                                                                         
                                                                                                    
Objection was heard.                                                                                
                                                                                                    
The question being:  "Shall Amendment No. 1 be adopted?"  The roll                                  
was taken with the following result:                                                                
                                                                                                    
CSHB 395(FIN)                                                                                       
Second Reading                                                                                      
Amendment No. 1                                                                                     
                                                                                                    
YEAS:  28   NAYS:  9   EXCUSED:  1   ABSENT:  2                                                   
                                                                                                    
Yeas:  Berkowitz, Crawford, Croft, Dahlstrom, Fate, Foster, Gara,                                   
Gatto, Gruenberg, Guttenberg, Harris, Hawker, Heinze, Holm, Joule,                                  
Kapsner, Kerttula, Kookesh, Lynn, Masek, Meyer, Morgan, Ogg,                                        
Samuels, Seaton, Stoltze, Weyhrauch, Wilson                                                         
                                                                                                    

2004-04-30                     House Journal                      Page 3694
Nays:  Anderson, Chenault, Coghill, Kohring, Kott, McGuire,                                         
Rokeberg, Stepovich, Wolf                                                                           
                                                                                                    
Excused:  Cissna                                                                                    
                                                                                                    
Absent:  Moses, Williams                                                                            
                                                                                                    
And so, Amendment No. 1 was adopted.                                                                
                                                                                                    
Representative Coghill moved and asked unanimous consent that                                       
CSHB 395(FIN) am be considered engrossed, advanced to third                                         
reading, and placed on final passage.  There being no objection, it was                             
so ordered.                                                                                         
                                                                                                    
CSHB 395(FIN) am was read the third time.                                                           
                                                                                                    
The question being:  "Shall CSHB 395(FIN) am pass the House?"  The                                  
roll was taken with the following result:                                                           
                                                                                                    
CSHB 395(FIN) am                                                                                    
Third Reading                                                                                       
Final Passage                                                                                       
                                                                                                    
YEAS:  38   NAYS:  1   EXCUSED:  1   ABSENT:  0                                                   
                                                                                                    
Yeas:  Anderson, Berkowitz, Chenault, Coghill, Crawford, Croft,                                     
Dahlstrom, Fate, Foster, Gara, Gatto, Gruenberg, Guttenberg, Harris,                                
Hawker, Heinze, Holm, Joule, Kapsner, Kerttula, Kohring, Kookesh,                                   
Kott, Lynn, Masek, McGuire, Meyer, Morgan, Moses, Ogg, Samuels,                                     
Seaton, Stepovich, Stoltze, Weyhrauch, Williams, Wilson, Wolf                                       
                                                                                                    
Nays:  Rokeberg                                                                                     
                                                                                                    
Excused:  Cissna                                                                                    
                                                                                                    
And so, CSHB 395(FIN) am passed the House.                                                          
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
roll call on the passage of the bill be considered the roll call on the                             
effective date clause.  There being no objection, it was so ordered.                                
                                                                                                    
Representative Rokeberg later gave notice of reconsideration of the                                 
vote on CSHB 395(FIN) am, and reconsideration was taken up then.