04/12/2000 09:07 AM Senate 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, explained  the bill  does                                                                    
two  things,  creates  a uniform  appeals  process  for  the                                                                    
Department  of  Natural  Resources  and  corrects  a  notice                                                                    
problem for the Division of Oil and Gas.                                                                                        
                                                                                                                                
Mr. Loeffler  explained the problems that  precipitated this                                                                    
bill. He  stated that  for a  variety of  reasons, different                                                                    
laws have  been passed  over several  years, and  because of                                                                    
the  way  they  interact,  there is  a  variety  of  appeals                                                                    
processes  within  the  department.   He  noted  that  these                                                                    
different processes follow different  schedules with 15 - 30                                                                    
days allowed to file an  appeal. The different processes, he                                                                    
added  require  different  channels  and  opportunities  for                                                                    
appeals.  He remarked  that this  causes  confusion for  the                                                                    
public and  for department staff.  He stated that  this bill                                                                    
establishes there is only one  appeal process, one appeal to                                                                    
the commissioner and the next appeal made in court.                                                                             
                                                                                                                                
Mr. Loeffler  continued with the second  problem relating to                                                                    
notices  for lease  sales stating  that there  are currently                                                                    
three notices.  He detailed these  notices. As a  result, he                                                                    
said the  public is  confused and  there is  additional cost                                                                    
for publishing the multiple notices.                                                                                            
                                                                                                                                
Co-Chair  Torgerson asked  why  this bill  does  not have  a                                                                    
negative fiscal note.                                                                                                           
                                                                                                                                
Mr. Loeffler responded that the  Division of Oil and Gas has                                                                    
a higher  workload this year, and  the intent is to  use the                                                                    
small  cost savings  from this  legislation to  pay for  the                                                                    
other   operations.  The   savings   anticipated  by   other                                                                    
divisions,  he said  are spread  between many  employees and                                                                    
would be difficult  to identify. He stated  that because the                                                                    
department  had a  $750,000  budget  reduction, "we're  just                                                                    
struggling to keep up."                                                                                                         
                                                                                                                                
Co-Chair Torgerson  asked if the  fiscal note  therefore has                                                                    
nothing  to   do  with   the  bill   but  rather   with  the                                                                    
department's  desire to  save money  to  be spent  elsewhere                                                                    
within the department.                                                                                                          
                                                                                                                                
Mr. Loeffler  repeated that the  savings would  be difficult                                                                    
to calculate.                                                                                                                   
                                                                                                                                
Senator Leman asked how much  the department spends annually                                                                    
on public notices.                                                                                                              
                                                                                                                                
Mr. Loeffler did not know the  entire cost but knew that the                                                                    
intermediate notice is  a few thousand dollars  for each oil                                                                    
and gas lease  sale. He noted that the  department offers "a                                                                    
few" of these sales each year.                                                                                                  
                                                                                                                                
Senator Leman  was interested in  reducing costs  and stated                                                                    
that if this bill could  allow the department to save money,                                                                    
he  supported it.  He suggested  a  conceptual amendment  to                                                                    
remove the appeals  process from the bill  and maintain only                                                                    
the public notice portion.                                                                                                      
                                                                                                                                
Co-Chair  Torgerson  wanted  the amendment  offered  on  the                                                                    
Senate floor.                                                                                                                   
                                                                                                                                
Co-Chair Parnell pointed  out that the Committee  has in its                                                                    
possession, another bill that contains this language.                                                                           
                                                                                                                                
Co-Chair Parnell offered a motion  to report from Committee,                                                                    
SB 257,  1-GS2046.A with accompanying zero  fiscal note from                                                                    
the Department of Natural Resources.                                                                                            
                                                                                                                                
Without objection, the bill MOVED from Committee.