Legislature(2015 - 2016)CAPITOL 106
11/03/2015 03:30 PM House RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| SJR301 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SJR301 | TELECONFERENCED | |
SJR301-SUPPORT O&G LEASES ON ARCTIC OCS
CO-CHAIR NAGEAK announced that the only order of business would
be CS FOR SENATE JOINT RESOLUTION NO. 301(RES) am Opposing the
recent decisions to cancel future lease sales in the Chukchi and
Beaufort Seas and to deny the suspension of Shell and Statoil's
leases; urging the United States Department of the Interior to
continue to promote oil exploration in the Chukchi and Beaufort
Seas; urging the United States Bureau of Safety and
Environmental Enforcement to reconsider and approve requests
from Shell and Statoil for lease suspensions in the Chukchi Sea
Planning Area and Beaufort Sea Planning Area; urging the Alaska
Congressional delegation to continue its efforts to achieve
consistent and equitable outer continental shelf revenue sharing
for the state; urging the United States Congress to provide a
means for equitable outer continental shelf revenue sharing
across all coastal oil and gas producing states to ensure the
states develop necessary infrastructure to support outer
continental shelf development and preserve environmental
integrity; and urging the ongoing efforts to develop offshore
oil and gas in the Arctic Outer Continental Shelf.
3:32:19 PM
SENATOR BILL STOLTZE, Alaska State Legislature, informed the
committee that CSSJR 301(RES)am reaffirms the legislature's
commitment and makes a strong statement addressing the recent
administrative action to "slam the door on [outer continental
shelf (OCS)] activity." The resolution also includes defensive
language regarding nongovernmental environmental organizations
that are threatening existing projects. Senator Stoltze said
the [Third Special Session of the Twenty-Ninth Alaska State
Legislature] provided a window of opportunity to send a
strongly-worded resolution to the federal administration in
order to support the efforts of the Alaska congressional
delegation. He advised that the resolution is relevant to the
special session because all of the natural gas pipeline projects
"factor in" the resources of the Chukchi and Beaufort Seas. He
pointed out that the committee previously heard [HJR 301], the
House companion measure, and therefore members of the committee
are very familiar with this issue. A Senate amendment to the
resolution is very similar to HJR 4 [passed in the First Session
of the Twenty-Ninth Alaska State Legislature], and is consistent
with previous messages. He expressed his support for the
amendment. Senator Stoltze said this is the proper time to
advance long-term projects in OCS, and the resolution is a
vision of prosperity and economic development for Alaska.
3:37:31 PM
BRANDON BREFCZYNSKI, Staff, Senator Bill Stoltze, Alaska State
Legislature, informed the committee of the changes made in CSSJR
301(RES)am. On page 3, line 13, a new WHEREAS was added, which
read:
WHEREAS, under the Gulf of Mexico Energy Security Act
of 2006, the federal government recognizes the effect
that oil and gas development in federal offshore areas
has on the states of Alabama, Louisiana, Mississippi,
and Texas, and recognizes the contribution to national
energy, security, and economic interests made by
sharing with those states 37.5 percent of revenue from
leases covered under phase one of the Gulf of Mexico
Energy Security Act of 2006; phase two of the Gulf of
Mexico Energy Security Act of 2006 expands the
definition of "qualified outer continental shelf
revenue" and continues to share revenue on an
adjacency factor but includes an annual revenue-
sharing cap of $500,000,000 that applies through 2055;
and
MR. BREFCZYNSKI said on page 3, line 22, a new WHEREAS was
added, which read:
WHEREAS the federal government fails to recognize the
same effects on and contributions made by other oil
and gas producing states adjacent to federal outer
continental shelf areas, such as this state; and
MR. BREFCZYNSKI said on page 3, line 25, a new WHEREAS was
added, which read:
WHEREAS, had outer continental shelf revenue sharing
of 37.5 percent been in place since 2003, the state
would have benefitted from additional revenue, in an
amount estimated to be between $942,000,000 and
$1,300,000,000, for necessary infrastructure, such as
marine ports, airports, utilities and housing, and
increased state services, such as oil spill and
emergency response and environmental monitoring and
mitigation; and
MR. BREFCZYNSKI said on page 4, beginning on line 18, a new
FURTHER RESOLVED was added, which read:
FURTHER RESOLVED that the Alaska State Legislature
urges the Alaska Congressional delegation to continue
its efforts to achieve consistent and equitable outer
continental shelf revenue sharing for this state, as
is granted the Gulf States of Alabama, Louisiana,
Mississippi, and Texas; and be it
MR. BREFCZYNSKI said the final change amended the FURTHER
RESOLVED on page 4, beginning on line 30, to include,
"acknowledging the need for equitable revenue sharing with oil
and gas producing states adjacent to federal outer continental
shelf areas."
3:39:54 PM
REPRESENTATIVE HERRON remarked:
... the Obama Administration released a national
strategy for the Arctic region in May of 2013, and
then in January of 2014, the implementation plan for
this national strategy was released. ... Effort No. 1,
advance United States security interests of the
National Strategy on the Arctic region, there's a
section titled, "Provide for Future United States
Energy Security," and I'll quote here, ... 'we are
committed to working with stakeholders, industry, and
other Arctic states to explore the energy resource
base, develop and implement best practice, and share
the experience to enable the environmentally
responsible production of oil and natural gas, as well
as renewable energy.' Canceling leases in the Chukchi
and the Beaufort do not seem to mesh with this
sentence. The federal government, in my opinion, is
not following their own strategy for the Arctic
region.
REPRESENTATIVE HERRON further referred to the implementation
plan, reading as follows [document not provided]:
Would ensure the safe and responsible development of
nonrenewable energy resources with the objective of
ensuring safe, responsible, exploration, and the
development onshore and offshore Arctic nonrenewable
energy resources in an environmentally sound manner.
REPRESENTATIVE HERRON relayed that one of the steps includes
assessing the capacity and integrity of the Trans-Alaska
Pipeline System to facilitate the flow of additional onshore and
offshore oil resources by the end of 2016. He restated that by
canceling the leases, the federal government is going against
its own national strategy for the Arctic region and Alaska.
3:42:34 PM
REPRESENTATIVE SEATON appreciated the additions to the
resolution regarding Alaska sharing in its economic development.
3:43:22 PM
CO-CHAIR NAGEAK opened public testimony. After ascertaining
that there were no witnesses, public testimony was closed.
3:44:02 PM
CO-CHAIR TALERICO moved to report [CSSJR 301(RES)am out of
committee with individual recommendations and the accompanying
zero fiscal note]. [There being no objection, CSSJR 301(RES)am
was reported out of the House Resources Standing Committee.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| 11.3.15 HSE RES CSSJR 301(RES) am.pdf |
HRES 11/3/2015 3:30:00 PM |
|
| 11.3.15 HSE RES CSSJR 301(RES) Fiscal Note 10.31.15.pdf |
HRES 11/3/2015 3:30:00 PM |