Legislature(2005 - 2006)
05/02/2005 10:36 AM Senate FIN
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR HOUSE BILL NO. 197(RLS)
"An Act exempting certain natural gas exploration and
production facilities from oil discharge prevention and
contingency plans and proof of financial responsibility, and
amending the powers and duties of the Alaska Oil and Gas
Conservation Commission with respect to those plans; and
providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Green stated that this bill would address oil spill
exemptions for gas wells.
REPRESENTATIVE VIC KOHRING, the bill's sponsor on behalf of the
House Special Committee on Oil and Gas, explained that this
legislation would exempt oil companies that are drilling strictly
for gas from oil spill contingency plans. Current State law
requires a company "that is drilling strictly for gas and is
drilling in formations that contain only gas" to develop an oil
spill contingency plan. The development of these plans is expensive
and time consuming. It "would be logical to exempt gas drillers"
from this requirement. The Oil and Gas Conservation Commission
would be responsible for making the determination as to whether a
formation contained oil. The company would be granted an exemption
from the oil spill contingency plan requirement were the Commission
to determine that the formation did not contain oil.
Representative Kohring stated that the bill is accompanied by a
zero fiscal note from the Department of Environmental Conservation
and is supported by the Governor Frank Murkowski Administration.
1:53:18 PM
Co-Chair Green asked when the oil spill contingency plan statute
was enacted.
Representative Kohring replied that the oil spill contingency plan
was enacted in HB 531 in the year 2003. This legislation would
correct a drafting error that inadvertently included gas drillers
with those that would be required to develop the oil spill
contingency plan.
1:53:59 PM
Co-Chair Green remarked that some of the regulations relating to
oil and gas drilling and development are "quite old". To that
point, a distinction between oil and gas might not have been made.
1:54:30 PM
KEVIN TABLER, Manager, Land/Government Affairs, Union Oil Company
of California/Anchorage requested that the Members support the
House Rules Committee version of the bill, as it would "clean up"
the unintended and inadvertent drafting error that was included in
HB 531 when the definition of conventional and non-conventional gas
wells was changed.
1:55:41 PM
Co-Chair Green understood that hearings on this bill had occurred
in the House Committee on Oil and Gas bill, the House Finance
Committee, the Senate Resources Committee and the Senate Rules
Committee.
Representative Kohring affirmed
1:56:06 PM
Co-Chair Wilken moved to report the bill from Committee with
individual recommendations and accompanying fiscal notes.
There being no objection, CS HB 197(RLS) was REPORTED from
Committee with previous zero fiscal note #1 dated March 14, 2005
from the Department of Environmental Conservation.
1:56:31 PM
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