04/16/1994 01:00 PM House JUD

  Number 328                                                                   
                                                                               
  SB 322 - DELAYS OF OIL & GAS LEASE SALES                                     
                                                                               
  JERRY GALLAGHER, Director of the Division of Mining,                         
  Department of Natural Resources (DNR), stated that this bill                 
  was introduced by the Senate Resources Committee.  He                        
  explained that if the last two sentences were deleted from                   
  the current law, AS 38.05.180c, more flexibility would                       
  result.  This current law requires the department to                         
  complete oil and gas lease sales within 90 days of when they                 
  are put on a two year schedule.  If the sale is not                          
  completed within that 90 day period, it falls off the                        
  schedule and DNR is forced to start over.  Sometimes sales                   
  are delayed by court challenges.  In other instances, more                   
  time should be allowed for public comment.  He said SB 322                   
  deletes the last two sentences, allowing the program to run                  
  properly.  Mr. Gallagher assured the committee that DNR is                   
  in support of the bill, and urged them to move it out of                     
  committee when a quorum is present.                                          
                                                                               
  REP. PHILLIPS and MR. GALLAGHER discussed the importance of                  
  passing the bill, the lack of opposition, and the                            
  possibility of an immediate effective date.                                  
                                                                               
  Number 398                                                                   
                                                                               
  REP. JAMES speculated about the history of the statute.  She                 
  presumed the reason for the statute was so that the                          
  commissioner did, in fact, have these lease sales, and the                   
  opportunity for lease sales would not have been missed                       
  because of some delinquent or mislead commissioner; which                    
  has not proven to be the case.  She showed support for the                   
  bill, believing the intent, at the time the statute was                      
  written, was meant for problems that no longer exist.                        
                                                                               
  Number 418                                                                   
                                                                               
  MR. GALLAGHER agreed with Rep. James, reminding the                          
  committee of the "Mean Green" area of statute, stemming from                 
  the late 1970's when people feared that an evil green                        
  environmental commissioner would delay oil and gas sales.                    
  That has not happened and is not expected to become a                        
  problem, since the pressure to maintain the leasing program                  
  exists.                                                                      
                                                                               
  Number 427                                                                   
                                                                               
  CHAIR PORTER asked questions of Mr. Gallagher regarding                      
  bids, and requested clarification of what takes place in the                 
  current given 90 day period.  Chairman Porter then concluded                 
  the hearing on SB 322 and announced SB 316 to be the next                    
  bill up for hearing via teleconference.