Legislature(2003 - 2004)

2004-04-30 House Journal

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2004-04-30                     House Journal                      Page 3696
HB 531                                                                                            
The following was read the second time:                                                             
                                                                                                    
     HOUSE BILL NO. 531                                                                             
     "An Act relating to natural gas exploration and development and                                
     to nonconventional gas, and amending the section under which                                   
     shallow natural gas leases may be issued; and providing for an                                 
     effective date."                                                                               
                                                                                                    
with the:                                                    Journal Page                           
                                                                                                    
 O&G RPT CS(O&G) 7AM                                                 3206                           
 FN1: INDETERMINATE(DNR)                                             3206                           

2004-04-30                     House Journal                      Page 3697
 RES RPT CS(RES) 3DP 1DNP 3NR 2AM                                    3399                           
 FN1: INDETERMINATE(DNR)                                             3399                           
 FIN RPT CS(FIN) 4DP 5NR                                             3575                           
 FN1: INDETERMINATE(DNR)                                             3575                           
                                                                                                    
The Rules Committee submitted the following updated fiscal note:                                    
                                                                                                    
2.  Fiscal, Dept. of Natural Resources                                                              
                                                                                                    
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. 531(FIN)                                                                 
     (same title)                                                                                   
                                                                                                    
There being no objection, it was so ordered.                                                        
                                                                                                    
Representative Kerttula declared a conflict of interest (page 3686).                                
                                                                                                    
                                                                                                    
Amendment No. 1 was offered  by Representatives Croft and Kerttula:                                  
                                                                                                    
Page 39, line 31 through page 40, line 6:                                                           
 Delete all material and insert:                                                                    
       "(3) for a nonconventional gas lease, rights under the                                       
     reservation as set out in AS 38.05.125 may not be exercised under                              
     the lease unless                                                                               
           (A) the owner and the state and its lessees,                                             
         successors, or assigns reach a prior written agreement under                               
         which the state and its lessees, successors, or assigns may                                
         enter upon the land in the exercise of the reserved right; only                            
         one written agreement authorizing entry onto the land may be                               
         required under this subparagraph to authorize activity by the                              
         state and its lessees, successors, or assigns, or by their agents,                         
         attorneys, and servants as allowed under this subsection; an                               
         agreement entered into under this subparagraph is                                          
                (i) for the duration of the period of production or                                 
              recovery operations unless the parties agree to a different                           
              duration; and                                                                         
                  (ii) a covenant running with the land;                                           

2004-04-30                     House Journal                      Page 3698
           (B) the director, after notice and an opportunity to be                                  
         heard, determines that, to exercise rights under the reservation                           
         and the lease, the lessee has no other reasonable means of                                 
         entry than access and entry upon the land of the owner; the                                
         lessee has the burden of demonstrating compliance with this                                
         subparagraph; and                                                                          
           (C) the state, its lessees, successors, or assigns make                                  
         provisions to pay the owner of the land full payment for all                               
         damages sustained by the owner by reason of entering upon                                  
         the land for the purpose of exercising rights under the lease,                             
         by posting a surety bond determined by the owner and by the                                
         state, its lessees, successors, or assigns to be sufficient as to                          
         form, amount and security to secure to the owner payment for                               
         all damages, subject to the following:                                                     
                (i) if a provision of this subparagraph conflicts                                   
              with a requirement of AS 38.05.130, the provision of this                             
              subparagraph prevails; and                                                            
                (ii) in addition to the coverage for actual                                         
              damages required by AS 38.05.130 or this subparagraph,                                
              as appropriate, the parties shall make provision for                                  
              payment of reasonable compensation to the owner for any                               
              loss by the owner of the owner's use and enjoyment of the                             
              property."                                                                            
                                                                                                    
Representative Croft moved and asked unanimous consent that                                         
Amendment No. 1 be adopted.                                                                         
                                                                                                    
Representative Masek objected.                                                                      
                                                                                                    
The question being:  "Shall Amendment No. 1 be adopted?"  The roll                                  
was taken with the following result:                                                                
                                                                                                    
CSHB 531(FIN)                                                                                       
Second Reading                                                                                      
Amendment No. 1                                                                                     
                                                                                                    
YEAS:  14   NAYS:  23   EXCUSED:  1   ABSENT:  2                                                  
                                                                                                    
Yeas:  Berkowitz, Crawford, Croft, Gara, Gatto, Gruenberg, Harris,                                  
Kapsner, Kerttula, Kohring, Kookesh, Morgan, Moses, Stoltze                                         
                                                                                                    
                                                                                                    

2004-04-30                     House Journal                      Page 3699
Nays:  Anderson, Chenault, Coghill, Dahlstrom, Fate, Foster, Hawker,                                
Heinze, Holm, Joule, Kott, Lynn, Masek, Meyer, Ogg, Rokeberg,                                       
Samuels, Seaton, Stepovich, Weyhrauch, Williams, Wilson, Wolf                                       
                                                                                                    
Excused:  Cissna                                                                                    
                                                                                                    
Absent:  Guttenberg, McGuire                                                                        
                                                                                                    
And so, Amendment No. 1 was not adopted.                                                            
                                                                                                    
                                                                                                    
Amendment No. 2 was offered  by Representatives Kerttula and Croft:                                  
                                                                                                    
Page 48, line 4, following "gas":                                                                   
 Insert "leases issued under AS 38.05.177 and in effect on                                          
December 31, 2003."                                                                                 
                                                                                                    
Page 48, lines 5 - 7:                                                                               
 Delete all material.                                                                               
                                                                                                    
Representative Kerttula moved and asked unanimous consent that                                      
Amendment No. 2 be adopted.                                                                         
                                                                                                    
Objection was heard and withdrawn.  There being no further objection,                               
Amendment No. 2 was adopted.                                                                        
                                                                                                    
Amendment No. 3 was offered  by Representatives Rokeberg and                                         
Joule:                                                                                              
                                                                                                    
Page 15, line 14, following "only.":                                                            
 Insert: "The commissioner may not issue an exploration license                                 
on land that is held under an existing coal lease entered into under                            
AS 38.05.150 that has an active permit for exploration or mining                                
unless the licensee under this subsection is also the lessee under                              
AS 38.05.150 of that land."                                                                     
                                                                                                    
Page 20, lines 9 - 10                                                                               
Delete "[EXCEPT AS PROVIDED BY AS 38.05.177(a)(2)(C),]"                                             
Insert "except as provided by AS 38.05.180(ff)(4)                                               
[AS 38.05.177(a)(2)(C)],"                                                                           
                                                                                                    

2004-04-30                     House Journal                      Page 3700
Page 20, line 23:                                                                                   
 Delete "A [NOTWITHSTANDING AS 38.05.177, A]"                                                   
 Insert "Notwithstanding AS 38.05.180(ff) or AS 38.05.132(a) [AS                                
38.05.177], a"                                                                                      
                                                                                                    
Page 22, line 15, following "nonproduction;"                                                    
 Insert "on application by the lessee, the director may extend                                  
the lease issued under this section for a period of not more than 10                            
years if the gas produced from the lease is to be used by the lessee                            
solely for its mining operations;"                                                              
                                                                                                    
Page 40, line 6, following "paragraph":                                                             
 Insert ";                                                                                          
       (4)  the provisions of this subsection do not apply to                                       
     authorize a lease for the recovery of nonconventional gas on land                              
     that is held under an existing coal lease entered into under                                   
     AS 38.05.150 that has an active permit for exploration or mining                               
     unless the lessee under this subsection is also the lessee under                               
     AS 38.05.150 of that land."                                                                    
                                                                                                    
Representative Rokeberg moved and asked unanimous consent that                                      
Amendment No. 3 be adopted.                                                                         
                                                                                                    
Objection was heard and withdrawn.  There being no further objection,                               
Amendment No. 3 was adopted.                                                                        
                                                                                                    
Representative Coghill moved and asked unanimous consent that                                       
CSHB 531(FIN) am be considered engrossed, advanced to third                                         
reading, and placed on final passage.  There being no objection, it was                             
so ordered.                                                                                         
                                                                                                    
CSHB 531(FIN) am was read the third time.                                                           
                                                                                                    
The question being:  "Shall CSHB 531(FIN) am pass the House?"  The                                  
roll was taken with the following result:                                                           
                                                                                                    
CSHB 531(FIN) am                                                                                    
Third Reading                                                                                       
Final Passage                                                                                       
                                                                                                    
YEAS:  36   NAYS:  1   EXCUSED:  1   ABSENT:  2                                                   

2004-04-30                     House Journal                      Page 3701
Yeas:  Berkowitz, Chenault, Coghill, Crawford, Croft, Dahlstrom,                                    
Fate, Foster, Gara, Gatto, Gruenberg, Guttenberg, Harris, Hawker,                                   
Heinze, Holm, Joule, Kapsner, Kerttula, Kookesh, Kott, Lynn, Masek,                                 
McGuire, Meyer, Morgan, Moses, Ogg, Rokeberg, Samuels, Seaton,                                      
Stoltze, Weyhrauch, Williams, Wilson, Wolf                                                          
                                                                                                    
Nays:  Kohring                                                                                      
                                                                                                    
Excused:  Cissna                                                                                    
                                                                                                    
Absent:  Anderson, Stepovich                                                                        
                                                                                                    
And so, CSHB 531(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.                                
                                                                                                    
CSHB 531(FIN) am was referred to the Chief Clerk for engrossment.