Legislature(2015 - 2016)BARNES 124
02/27/2015 01:00 PM House RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| HJR4 | |
| HB115 | |
| HJR6 | |
| HJR7 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 115 | TELECONFERENCED | |
| *+ | HJR 4 | TELECONFERENCED | |
| *+ | HJR 6 | TELECONFERENCED | |
| *+ | HJR 7 | TELECONFERENCED | |
| + | TELECONFERENCED |
HJR 4-OFFSHORE OIL & GAS REVENUE SHARING
1:04:59 PM
CO-CHAIR TALERICO announced that the first order of business is
HOUSE JOINT RESOLUTION NO. 4, Urging the United States Congress
to provide a means for consistently and equitably sharing with
all oil and gas producing states adjacent to federal outer
continental shelf areas a portion of revenue generated from oil
and gas development on the outer continental shelf to ensure
that those states develop necessary infrastructure to support
outer continental shelf development and preserve environmental
integrity.
1:05:12 PM
REPRESENTATIVE DAN SADDLER, Alaska State Legislature, as the
sponsor, introduced HJR 4. He said HJR 4 calls on the federal
government to enact a fair and sensible system of federal
revenue sharing from the outer continental shelf (OCS). Oil and
gas development in federal areas can be a boon for the federal
government in terms of jobs, revenue, and a secure source of
domestic energy, but it also creates costly impacts on the
states bordering that development. The government recognizes
these strains and in some states it shares the proceeds to help
the states offset the costs of the improvements and services
necessary for safe, responsible development. In onshore areas
the federal government shares 50 percent of the revenue with the
state in which that production occurs. In states within three
miles of near shore, the federal government shares 27 percent of
the revenue. In four states bordering the Gulf of Mexico the
federal government shares 37.5 percent. However, under current
federal law, the State of Alaska would receive 0 percent share
of any federal revenues from oil produced in the Chukchi and
Beaufort seas or other OCS areas. Industry, the federal
government, and the State of Alaska know that the federal waters
off the North Slope hold tremendous amounts of oil. Recent
environmental impact statements for Shell Oil's efforts in that
region indicate that over three billion barrels of oil are
likely to be produced. But just as onshore development in the
North Slope required investments in infrastructure, development
of Alaska's offshore resources of oil and gas will also require
investments. Investments will need to be made in infrastructure
like roads, ports, airports, utilities, and housing, as well as
in services including public safety, search and rescue, oil
spill response, and environmental monitoring and mitigation.
The $2.75 billion generated since 2006 by the Chukchi and
Beaufort seas federal OCS lease sales would have brought $1
billion to the State of Alaska had the same revenue sharing
provisions applied to Alaska as apply in the Gulf of Mexico.
Now is a good time to have this kind of resolution passed and to
see Alaska's best chance of OCS revenue sharing in Congress.
Alaska's senior U.S. senator, Lisa Murkowski, is now the chair
of the U.S. Senate Energy and Natural Resources Committee.
Senator Murkowski sponsored legislation last year to offer a
37.5 percent share of OCS revenue, but it didn't get through and
it's anticipated the senator will try again. He said HJR 4 will
send a strong message from the State of Alaska to the U.S.
Congress to support legislation to enact a fair and sensible
system of federal revenue sharing.
1:08:14 PM
CO-CHAIR TALERICO opened public testimony and closed it after
ascertaining no one wished to testify.
1:08:57 PM
REPRESENTATIVE SEATON said he has supported this in the past.
Fair and equitable distribution needs to be there, so he
appreciates the sponsor bringing this resolution forward.
1:09:24 PM
REPRESENTATIVE HAWKER moved to report HJR 4 out of committee
with individual recommendations and the accompanying zero fiscal
note. There being no objection, HJR 4 was reported from the
House Resources Standing Committee.