04/19/2022 08:00 AM House COMMUNITY & REGIONAL AFFAIRS

        HB 349-HEARING ESTABLISH DRILLING UNITS/SPACING                                                                     
                                                                                                                                
9:47:11 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  SCHRAGE  announced that  the  final  order of  business                                                               
would  be   HOUSE  BILL  NO.   349,  "An  Act  relating   to  the                                                               
establishment of oil and gas drilling units and patterns."                                                                      
                                                                                                                                
9:47:39 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HANNAN  moved to  adopt Amendment 1  to HB  349, labeled                                                               
32-LS1542\A.1, Nauman, 4/18/22, which read as follows:                                                                          
                                                                                                                                
     Page 1, lines 4 - 5:                                                                                                       
          Delete "the correlative rights of lessees in a                                                                        
     pool"                                                                                                                      
          Insert "[THE] correlative rights [OF LESSEES IN A                                                                     
     POOL]"                                                                                                                     
                                                                                                                                
     Page 2, following line 9:                                                                                                  
     Insert a new bill section to read:                                                                                         
       "* Sec. 3. AS 31.05.100 is amended by adding a new                                                                   
     subsection to read:                                                                                                        
          (f)  The commission may adopt well spacing                                                                            
      regulations to protect correlative rights in a pool                                                                       
       without a drilling unit or units established under                                                                       
     this section."                                                                                                             
                                                                                                                                
CO-CHAIR SCHRAGE objected for the purpose of discussion.                                                                        
                                                                                                                                
9:47:47 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  HANNAN  explained  that in  Amendment  1,  "correlative                                                               
rights"  is specified  in  statute, as  suggested.   She  further                                                               
clarified that it  was only spoken about in  the regulations, not                                                               
in the statute.                                                                                                                 
                                                                                                                                
9:48:45 AM                                                                                                                    
                                                                                                                                
JEREMY  PRICE,  Commissioner,  Alaska Oil  and  Gas  Conservation                                                               
Commission,  said  there is  a  tweak  in  the beginning  of  the                                                               
language regarding lessees in a  pool, which was suggested by the                                                               
Alaska Department  of Law (DOL), and  ends up being broader.   In                                                               
summary, he stated, he appreciated  the committee considering the                                                               
amendment.                                                                                                                      
                                                                                                                                
CO-CHAIR SCHRAGE removed  his objection.  There  being no further                                                               
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
9:50:49 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  HANNAN moved  to  report  HB 349,  as  amended, out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There  being  no  objection, CSHB  349(CRA)  was                                                               
reported  out  of  the  House   Community  and  Regional  Affairs                                                               
Standing Committee.