04/27/2005 03:30 PM Senate RESOURCES

    CSHCR  7(RES)-COOK INLET OIL & GAS PLATFORM ABANDONMENT                                                                 
                                                                                                                              
CHAIR  THOMAS  WAGONER  announced  CSHCR  7(RES)  to  be  up  for                                                               
consideration.                                                                                                                  
                                                                                                                                
REPRESENTATIVE  KURT  OLSON,  sponsor, explained  that  currently                                                               
most of the platforms  are at least 40 years old  and four of the                                                               
16  have  been lighthoused  already.  During  a recent  Resources                                                               
meeting in Kenai, industry representatives  showed an interest in                                                               
having  regulations reviewed  and updated  to define  abandonment                                                               
requirements  and their  ultimate liability.  In 1996  the Alaska                                                               
Oil   and   Gas    Conservation   Commission   (AOGCC)   proposed                                                               
implementation of  revised regulations, but the  attorney general                                                               
decided the  issue fell  under the purview  of the  Department of                                                               
Natural   Resources  (DNR)   rather  than   the  AOGCC.   Defined                                                               
regulations would also be of  value to independent companies that                                                               
will   assume  operations   of   several   of  these   platforms.                                                               
Environmental groups,  industry, DNR,  DEC and AOGCC  and several                                                               
federal agencies  are interested  in the  review that  would take                                                               
place.                                                                                                                          
                                                                                                                                
3:40:41 PM                                                                                                                    
SENATOR  DYSON asked  if there  was  any major  criticism of  his                                                               
resolution.                                                                                                                     
                                                                                                                                
REPRESENTATIVE OLSON replied no.                                                                                                
                                                                                                                                
CHAIR  WAGONER   commented  that   oil  companies   endorse  this                                                               
resolution because they  want to know what their  liability is in                                                               
removing platforms and negotiating with independents.                                                                           
                                                                                                                                
3:41:21 PM At ease 3:44:27 PM                                                                                               
                                                                                                                                
SENATOR BEN STEVENS joined the committee.                                                                                       
                                                                                                                                
3:44:49 PM                                                                                                                    
SENATOR  DYSON moved  to pass  CSHCR 7(RES)  from committee  with                                                               
individual recommendations  and zero  fiscal note. There  were no                                                               
objections and it was so ordered.