Legislature(2003 - 2004)
2004-04-30 House Journal
Full Journal pdf2004-04-30 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.