Legislature(2005 - 2006)

2005-02-14 House Journal

Full Journal pdf

2005-02-14                     House Journal                      Page 0308
HB 142                                                                                            
HOUSE BILL NO. 142 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to regulation of underground injection under the                              
     federal Safe Drinking Water Act; and providing for an effective                                
     date."                                                                                         
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Oil & Gas and the Resources and Finance Committees.                                                 
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Zero, Dept. of Natural Resources                                                                
2.  Fiscal, Dept. of Administration                                                                 
                                                                                                    
The Governor's transmittal letter dated February 10, 2005, follows:                                 
                                                                                                    
"Dear Speaker Harris:                                                                               
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill relating to the regulation of underground injection                             
under the federal Safe Drinking Water Act.  This bill would enable the                              
Alaska Oil and Gas Conservation Commission (AOGCC) to regulate                                      
all underground injection wells used in the oil and gas industry, in                                

2005-02-14                     House Journal                      Page 0309
contrast to the current situation under which the AOGCC regulates                                   
most of these wells but the United States Environmental Protection                                  
Agency (EPA) regulates others.                                                                      
                                                                                                    
Under the federal Safe Drinking Water Act of 1974, 42 U.S.C. 300f -                                 
300j-26, the underground injection of waste or other fluids requires an                             
EPA permit, unless the EPA has approved a state underground                                         
injection control program as meeting Safe Drinking Water Act                                        
standards.  In 1986, the EPA approved Alaska's underground injection                                
program for a subset of underground injection wells, known as Class II                              
wells.  Class II wells inject certain fluids related to the recovery and                            
production of oil and natural gas.  The AOGCC administers this                                      
program.  However, the EPA continues to regulate other types of                                     
injection wells in Alaska, including Class I wells, which are used in                               
the oil and gas industry to dispose of wastes that do not go into Class                             
II wells.  I believe that the time has come for authority over all                                  
underground injection relating to oil and gas operations to return to the                           
state.                                                                                              
                                                                                                    
This action would have several benefits for the state and the industry.                             
First, the AOGCC is generally able to respond more quickly to permit                                
applications than is the EPA.  Second, having a single, uniform                                     
process for regulating underground injection by the industry will                                   
improve efficiency and reduce confusion.  Finally, there has been                                   
considerable uncertainty over, and considerable agency time and effort                              
devoted to, the question of when a Class II well is appropriate for                                 
waste disposal and when a Class I well is required, and this question                               
will likely become much less important with a single agency                                         
exercising authority over both classes of wells.                                                    
                                                                                                    
Under the bill that I am proposing, the AOGCC would have the                                        
authority to take all actions necessary to allow the state to acquire                               
primary enforcement responsibility for Class I injection wells, in                                  
addition to continuing its current regulation of Class II wells.  While                             
the definition of Class I wells covers broad categories of industrial and                           
municipal wastes in certain circumstances, in practice Class I wells in                             
Alaska have been used only in the oil and gas industry, to                                          
accommodate wastes not allowed in Class II wells.  There are                                        
currently 1,144 Class II wells (disposal and enhanced recovery) and                                 
seven Class I wells in the state.                                                                   
                                                                                                    

2005-02-14                     House Journal                      Page 0310
This bill also provides for an immediate effective date.                                            
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                Sincerely yours,                                                    
                                /s/                                                                 
                                Frank H. Murkowski                                                  
                                Governor"