Legislature(2013 - 2014)HOUSE FINANCE 519
03/26/2013 09:00 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB27 | |
| HB129 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 27 | TELECONFERENCED | |
| + | HB 129 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE BILL NO. 129
"An Act relating to approval for oil and gas or gas
only exploration and development in a geographical
area; and providing for an effective date."
Commissioner Sullivan provided a PowerPoint presentation:
"HB 129: Oil and Gas Exploration and Development Approval
by Geographical Area."
Commissioner Sullivan continued to discuss a development
plan. He noted that it was important to remember that the
public interest phase would occur after // findings related
to oil and gas leasing. He noted that there was an
extensive vetting phase. There was much opportunity for
meaningful public input. He stressed that certainty was
important to the public process. He pointed to DNR statutes
and relayed that there was a good argument that the
department currently had the authority; however, it needed
to be clarified. The bill would avoid an internal debate on
the issue; the department did not want to invite
litigation.
10:03:30 AM
Co-Chair Austerman noted that the bill would be heard and
held at approximately 10:25 a.m.
WENDY WOOLF, PETROLEUM LAND MANAGER, DIVISION OF OIL/GAS,
DEPARTMENT OF NATURAL RESOURCES, looked to slide 2 titled
"Area wide Oil and Gas Lease Sales." She discussed lease
sale areas. She moved to slide 3 and explained that the
bill would clarify a statutory requirement related to
leasing phases. Subsequent to the initial leasing phase,
there would be a definition related to how oil and gas
development would occur.
Ms. Woolf explained slide 4: "Oil and Gas Lease Sale
Process." She discussed what HB 129 did, how it benefitted
the public, and how it benefitted the industry.
-It clarifies the Department of Natural Resources can
authorize oil and gas exploration and development
activities within a geographical area.
-It preserves public notice and review at the
beginning of an exploration or development phase.
-It ensures certainty when an approval has been
granted for exploration or development activities.
-It allows the public to comprehensively evaluate oil
and gas activities within a geographical area.
-It provides an opportunity for input at the beginning
of an exploration or development phase.
-It safeguards environmental concerns through special
stipulations and conditions.
-It allows a project to be planned within approved
parameters and conditions.
-It provides certainty that plans of operations
meeting those defined criteria can proceed.
-It ensures predictable project approvals for
subsequent exploration or development activity.
Ms. Woolf discussed slide 5: "Oil and Gas Lease Sale
Process."
Proposed Area wide Oil and Gas Lease Sale
-Public Notice and Opportunity to Comment
-Evaluate Statutory Criteria
-Develop Mitigation Measures
Final Finding of the Director to Lease Oil and Gas
Exploration Phase Public Notice and Opportunity to
Comment
Development Phase Public Notice and Opportunity to
Comment
Transportation (Pipelines) Public Notice and
Opportunity to Comment
10:09:32 AM
Ms. Woolf discussed slide 6: "Life of an Oil and Gas
Lease."
Year 0
-Final Finding of the Director - Area wide Oil
and Gas Lease Sale
-Lease Issued (10-Year Term)
Year 3
-Lease Plan of Operations - Seismic Program
(multiple leases)
-Public Notice and Comment Period
Year 5
-Lease Plan of Operations - Exploration Well
-Public Notice and Comment Period
Year 6
-Lease Plan of Operations - Exploration Well
-Public Notice and Comment Period
Year 7
-Lease Plan of Development - Conceptual -
Development Plan
Year 8
-Lease Plan of Operations - Initial Development -
Plans
-Public Notice and Comment Period
-Lease Plan of Operations - Modified Development
Plans
-Public Notice and Comment Period
-Pipeline Application (AS 38.05.850 or AS 38.35)
-Public Notice and Comment Period
Year 10
-Production
-Lease Plan of Operations - Additional
Development Plans
=Public Notice and Comment Period
Ms. Woolf discussed slide 7: Example of Geographical Areas
for Exploration Activities." The activities in the core of
the North Slope would define the exploration activities.
She separated out the shale from the conventional area.
Ms. Woolf discussed slide8: "Example Geographical Areas for
Development Activities." She spoke about the development
activities formed by the geography. She remarked that the
areas reflected looked at the core of the legislative
activities. She stated that the public notice and
opportunity for comment were important aspects of the
legislation.
10:15:57 AM
Ms. Woolf detailed slide 9:"Life of an Oil and Gas Lease
under HB 129."
Year 0
-Final Finding of the Director - Area wide Oil
and Gas Lease Angela Salerno, Executive Director,
National Association of Social Workers Alaska
Chapter Lease Issued (10 - Year Term)
Lessee develops exploration plans
Year 3
-Lease Plan of Operations - Seismic Program
(multiple leases)
Year 5
-Lease Plan of Operations - Exploration Well
Year 6
-Lease Plan of Operations - Exploration Well
Discovery - Lessee formulates development plan
Year 7
-Lease Plan of Development - Conceptual
Development Plan
Year 8
-Lease Plan of Operations - Initial Development
Plans
-Public Notice and Comment Period
-Lease Plan of Operations - Modified Development
Plans
-Public Notice and Comment Period
-Pipeline Application (AS 38.05.850 or AS 38.35)
-Public Notice and Comment Period
Year 10
-Production
-Lease Plan of Operations - Additional
Development Plans
Ms. Woolf discussed slide 10: "Results."
HB 129 provides for a new comprehensive review before
exploration or development.
HB 129 preserves public participation in the process.
HB 129 allows stipulations to be approved before a
company develops site specific plans for exploration
or development activities.
10:20:52 AM
JOE BALASH, DEPUTY COMMISSIONER, DEPARTMENT OF NATURAL
RESOURCES, discussed the new fiscal note.
Co-Chair Austerman wondered if the financing would be a
deposit. Mr. Balash stated that the bill would make
permitting much more streamlined. He remarked that there
would be more activity from additional lessees, so as the
workload becomes greater, the department needed to be much
more efficient.
Commissioner Sullivan referred to the shale oil development
which turned around North Dakota and Texas.
Co-Chair Austerman requested a better definition of a
geographical area to encompass shale oil development.
Vice-Chair Neuman remarked upstream cost of expediting the
permitting process. He felt that a fiscal note of $134
thousand would lead to a net gain for the state.
HB 129 was HEARD and HELD in committee for further
consideration.