04/13/2009 01:00 PM House RESOURCES

SJR 16-OFFSHORE OIL & GAS REVENUE                                                                                             
                                                                                                                                
1:51:42 PM                                                                                                                    
                                                                                                                                
CO-CHAIR NEUMAN announced  that the next order of  business is CS                                                               
FOR SENATE  JOINT RESOLUTION NO. 16(RES),  Expressing support for                                                               
responsible development of  the oil and gas  resources in federal                                                               
waters offshore  of Alaska's  coast as a  means to  ensure energy                                                               
independence,  security for  the nation,  and jobs  for Alaskans;                                                               
and  urging the  United States  Congress to  provide a  means for                                                               
consistently  sharing with  all coastal  energy-producing states,                                                               
on  an  ongoing  basis,  revenue   generated  from  oil  and  gas                                                               
development on the outer continental  shelf, to ensure that those                                                               
states  develop, support,  and maintain  necessary infrastructure                                                               
and preserve environmental integrity.                                                                                           
                                                                                                                                
1:51:53 PM                                                                                                                    
                                                                                                                                
MICHELLE SYDEMAN, Staff, Senator  Bill Wielechowski, Alaska State                                                               
Legislature, introduced SJR 16 on  behalf of the Senate Resources                                                               
Standing  Committee,  sponsor,  which is  co-chaired  by  Senator                                                               
Wielechowski.    She  paraphrased   from  the  following  written                                                               
statement [original punctuation provided]:                                                                                      
                                                                                                                                
     SJR  16 expresses  support for  responsible development                                                                    
     of  the oil  and gas  resources in  federal waters  off                                                                    
     Alaska coast. It also urges  Congress to provide Alaska                                                                    
     with a fair  share of federal revenue from  oil and gas                                                                    
     leasing and development in federal waters.                                                                                 
                                                                                                                                
     Under current law, Alaska  receives little revenue from                                                                    
     oil and  gas leasing  and development that  occurs more                                                                    
     than six miles  off our coast. This  contrasts with how                                                                    
     other   states,   including   Louisiana,   Mississippi,                                                                    
     Alabama and Texas, are treated.  Under the 2006 Gulf of                                                                    
     Mexico Energy  Security Act, these states  receive 37.5                                                                    
     percent of  revenues from  newly leased  federal waters                                                                    
     off their  coasts. This new  law is expected  to direct                                                                    
     more than $13 billion to  Louisiana alone over the next                                                                    
     three decades.                                                                                                             
                                                                                                                                
     Alaska deserves to be treated  in the same way as other                                                                    
     states   that  contribute   to   our  nation's   energy                                                                    
     security.  Like other  energy-producing states,  Alaska                                                                    
     bears  the  costs  of   infrastructure  in  support  of                                                                    
     offshore  development, and  our  coastal resources  and                                                                    
     residents  bear the  impacts  of offshore  development.                                                                    
     Alaskans  deserves   to  share   in  the   benefits  of                                                                    
     production, just as we do its costs.                                                                                       
                                                                                                                                
     The federal Minerals  Management Service estimates that                                                                    
     there  could  be  as  much  a  55  billion  barrels  of                                                                    
     technically  recoverable  oil  and 280  trillion  cubic                                                                    
     feet  of  technically   recoverable  gas  off  Alaska's                                                                    
     coast. Last year companies bid  $2.6 billion for access                                                                    
     to tracts  in the  Chukchi Sea.  More than  1.4 million                                                                    
     acres off  Alaska's coast have  already been  leased by                                                                    
     the  federal government.  The  Chukchi  Sea sale  could                                                                    
     result  in the  leasing  of an  additional 2.7  million                                                                    
     acres, providing  ongoing support for a  robust oil and                                                                    
     gas industry in Alaska.                                                                                                    
                                                                                                                                
     As  more  lands  off  Alaska's  coast  are  leased  for                                                                    
     offshore oil production, we need  to ensure that Alaska                                                                    
     gets its  fair share  of the  benefits of  that leasing                                                                    
     and production. It's time  Congress treated all coastal                                                                    
     states   equally  and   fairly.  Please   join  me   in                                                                    
     supporting SJR 16.                                                                                                         
                                                                                                                                
MS. SYDEMAN urged that SJR 16  be considered quickly so it can be                                                               
sent  to U.S.  Interior  Secretary  Ken Salazar  while  he is  in                                                               
Alaska.                                                                                                                         
                                                                                                                                
1:54:49 PM                                                                                                                    
                                                                                                                                
CO-CHAIR NEUMAN,  in regard to the  term responsible development,                                                               
asked  for  Ms.  Sydeman's  definition of  the  word  responsible                                                               
because it seems to be different for everybody.                                                                                 
                                                                                                                                
MS.  SYDEMAN related  that  it  is a  word  the Senate  Resources                                                               
Standing Committee adopted by  recommendation of Senator Huggins.                                                               
She said  she thinks  it is in  the eye of  the beholder,  and to                                                               
some  extent by  passing  this resolution  without a  definition,                                                               
which probably  would be difficult to  develop, it is left  up to                                                               
Secretary Salazar and others to interpret.                                                                                      
                                                                                                                                
CO-CHAIR NEUMAN clarified  that it is CSSJR  16(RES), labeled 26-                                                               
LS0753\S (Version S), that is before the committee.                                                                             
                                                                                                                                
1:55:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GUTTENBERG noted  that  at a  2006 energy  summit                                                               
some U.S. Senators strongly opposed  Alaska being included in the                                                               
[2006 Gulf  of Mexico Energy  Security Act].   He asked  what the                                                               
historic perspective is from that happening.                                                                                    
                                                                                                                                
MS. SYDEMAN  responded that U.S.  Senator Jeff Bingaman  from New                                                               
Mexico was  one of  the senators  expressing objections,  but she                                                               
does  not know  the history.   She  related that  last week  U.S.                                                               
Senator  Begich and  U.S. Senator  Landrieu from  Louisiana tried                                                               
again  unsuccessfully  to get  Alaska  included  in this  revenue                                                               
sharing.  Thus, she acknowledged, it is an uphill battle.                                                                       
                                                                                                                                
1:56:59 PM                                                                                                                    
                                                                                                                                
CO-CHAIR NEUMAN  closed public testimony after  ascertaining that                                                               
no one wished to testify.                                                                                                       
                                                                                                                                
REPRESENTATIVE  EDGMON  moved  to  report CSSJR  16(RES)  out  of                                                               
committee with  individual recommendations and zero  fiscal note.                                                               
There being no  objection, CSSJR 16(RES) was reported  out of the                                                               
House Resources Standing Committee.