04/17/2000 02:05 PM House FIN

SENATE BILL NO. 257                                                                                                           
                                                                                                                                
     "An  Act relating  to  notice requirements  for  certain                                                                   
     final findings  concerning the  disposal of  an interest                                                                   
     in state land or resources  for oil and gas; relating to                                                                   
     administrative     appeals     and     petitions     for                                                                   
     reconsideration  of  decisions   of  the  Department  of                                                                   
     Natural  Resources;  and   providing  for  an  effective                                                                   
     date."                                                                                                                     
                                                                                                                                
BOB LOEFFLER,  DIRECTOR, DIVISION OF MINING,  LAND AND WATER,                                                                   
DEPARTMENT OF  NATURAL RESOURCES testified in  support of the                                                                   
legislation.  The  legislation   creates  a  uniform  appeals                                                                   
process for the Department of  Natural Resources and solves a                                                                   
technical problem that is unique  to public notice of oil and                                                                   
gas  sales.  He  explained  that  different  laws  passed  at                                                                   
different times  have created a variety of  appeal schedules.                                                                   
He gave examples  of appeal timelines, which vary  from 15 to                                                                   
30 days.  The appeal process would  be uniform with  a 20-day                                                                   
deadline. The legislation would  also delete the  requirement                                                                   
to send  a second  notice to  notify that  a third  notice is                                                                   
close at hand.                                                                                                                  
                                                                                                                                
Representative  Grussendorf clarified  that  only one  appeal                                                                   
can be made to the commissioner or the department.                                                                              
                                                                                                                                
Mr. Loeffler  noted that  disposals would  retain the  status                                                                   
quo. Other  permits can be appealed  up to three  times under                                                                   
the  present system.  Appeals  are allowed  to the  director,                                                                   
then the commissioner and then to the commissioner again.                                                                       
                                                                                                                                
Representative  Grussendorf  questioned   if  one  appeal  is                                                                   
sufficient. Mr.  Loeffler responded that multiple  appeals do                                                                   
not add value. He maintained that  multiple appeals frustrate                                                                   
the applicant.                                                                                                                  
                                                                                                                                
Representative Phillips  spoke in support of  the legislation                                                                   
and maintained that it would make  government more efficient.                                                                   
                                                                                                                                
Mr. Loeffler explained  that the division director  makes the                                                                   
decision.  All decisions  are appealed  to the  commissioner.                                                                   
The  commissioner's decision  can be  reconsidered under  the                                                                   
same schedule. Further disputes go to court.                                                                                    
                                                                                                                                
(TAPE CHANGE, HFC 00 - 123, SIDE 2)                                                                                           
                                                                                                                                
Representative  Foster   MOVED  to  report  SB   257  out  of                                                                   
Committee with  the accompanying fiscal note.  There being NO                                                                   
OBJECTION, it was  so ordered.  There being  NO OBJECTION, it                                                                   
was so ordered.                                                                                                                 
                                                                                                                                
SB   257   was   REPORTED   out   of   Committee   with   "no                                                                   
recommendation" and  a zero fiscal note by  the Department of                                                                   
Natural Resources, published 2/9/00.