Legislature(2005 - 2006)HOUSE FINANCE 519
04/28/2005 08:30 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB103 | |
| HB218 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 218 | TELECONFERENCED | |
| += | HB 243 | TELECONFERENCED | |
| += | SB 103 | TELECONFERENCED | |
SENATE BILL NO. 103
"An Act relating to regulation of underground injection
under the federal Safe Drinking Water Act; and
providing for an effective date."
DANIEL T. SEAMOUNT, JR., COMMISSIONER, ALASKA OIL AND GAS
CONSERVATION COMMISSION (AOGCC), DEPARTMENT OF
ADMINISTRATION, (via teleconference) testified in support of
SB 103. The bill allows AOGCC to take over primacy for a
small number of waste disposal wells now overseen by EPA.
He explained that these are seven Class I wells on the North
Slope. He spoke of AOGCC's primacy over 1,155 Class II
injection wells. He said it is complicated trying to sort
out which wells apply. He spoke of redundant processes and
opined that there would be considerable time and money saved
because of this bill. AOGCC has a more streamlined process.
8:58:06 AM
Representative Holm inquired about the duplication of
efforts by the State of Alaska and EPA. Mr. Seamount
responded that AOGCC's process for evaluating and approving
Class II programs are very similar to EPA's. The state has
full-time inspectors and geological staff. EPA requests the
state's help on Class I well applications. Representative
Holm asked if permit fees support the work. Mr. Seamount
explained that a grant funds Class II wells.
9:00:12 AM
Representative Holm asked if there is a charge to the oil
companies for injection permits. Mr. Seamount replied that
EPA and the state do not charge; they pay a charge for the
injection based on how much gas is produced. Representative
Holm said that the fiscal note does not reflect the costs of
the permits. Mr. Seamount reported that there would be no
cost, but savings.
9:02:05 AM
Co-Chair Chenault asked if there is $127,000 for federal
funding for Class II, but no federal funding for Class I.
Mr. Seamount said that is correct. Co-Chair Chenault asked
where the money comes from. Mr. Seamount replied it comes
from regulatory cost charge, which is a direct charge to the
operators. He explained the budgeting process. Co-Chair
Chenault noted that they are paying for the services for the
injection of the waste. Mr. Seamount agreed.
9:03:37 AM
Co-Chair Chenault inquired about the presence of underground
drinking water. Mr. Seamount replied that there are no
underground supplies for drinking water and all of the water
is frozen by permafrost.
9:04:59 AM
Representative Foster MOVED to report SB 103 out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
SB 103 was REPORTED out of Committee with a "no
recommendation" recommendation and with fiscal impact note
#1 by the Department of Administration, and with zero note
#2 by the Department of Natural Resources.
Representative Hawker MOVED to ADOPT the letter of intent
for SB 103. There being NO OBJECTION, it was so ordered.
9:07:00 AM
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