04/12/2000 01:55 PM House JUD

HB 359 - DEPARTMENT NAT RES ADMIN APPEALS/OIL & GAS                                                                             
                                                                                                                                
Number 0530                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT announced that the next order of business would be                                                                
HOUSE BILL NO. 359, "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."                                                                                                                          
                                                                                                                                
Number 0580                                                                                                                     
                                                                                                                                
BOB LOEFFLER, Director, Central Office, Division of Mining, Land                                                                
and Water, Department of Natural Resources (DNR), came before the                                                               
committee to present HB 359.  The bill would create a uniform                                                                   
appeals process for DNR and would fix a public notice problem with                                                              
respect to DNR's Division of Oil & Gas.  Currently, he explained,                                                               
as an "artifact" of different laws passed at different times, DNR                                                               
has a couple of appeals tracks.  For some decisions there is a                                                                  
30-day appeals process, while for other decisions there is a 15-day                                                             
or 20-day appeals process.  There can also be multiple appeals for                                                              
some types of decisions; for example, in some cases an appeal can                                                               
be made to him, if his staff has made the decision, then to the                                                                 
commissioner and then to the commissioner again.  Therefore, HB 359                                                             
would create a uniform appeals process so that the public is not                                                                
confused and so that staff don't "blow it," as they occasionally                                                                
do.                                                                                                                             
                                                                                                                                
MR. LOEFFLER noted that it would be a one-shot appeals process in                                                               
that if a person does not like a decision made by staff, that                                                                   
decision can be appealed to the commissioner; the person then has                                                               
a right to go to court.  A simple process, it would not take any                                                                
rights away from the public, except for the chance of a multiple                                                                
appeal in some cases.  He believes the bill would help people                                                                   
understand the process, which would be quicker.                                                                                 
                                                                                                                                
Number 0722                                                                                                                     
                                                                                                                                
MR. LOEFFLER pointed out that HB 359 would also fix a                                                                           
notice-related problem.  The Division of Oil & Gas has to notice a                                                              
lease sale three times:  once for the preliminary finding; once for                                                             
the final finding; and, as an "artifact," the division has to                                                                   
notice that it is going to notice the final finding - a "notice of                                                              
a notice."  The consequence is confusion and expense.  It costs a                                                               
certain amount of money to place a legal notice in a newspaper,                                                                 
especially oil and gas lease notices that must go statewide.  He                                                                
believes that the "fix" would not change the rights of either                                                                   
citizens or governments.  All it would do is make government a                                                                  
little more efficient and less confusing.                                                                                       
                                                                                                                                
Number 0784                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN asked Mr. Loeffler whether [the state] is in                                                               
any jeopardy of having set a precedent in relation to the "notice                                                               
of a notice."                                                                                                                   
                                                                                                                                
MR. LOEFFLER replied that he doesn't think so.                                                                                  
                                                                                                                                
REPRESENTATIVE GREEN asked Mr. Loeffler whether that has been                                                                   
checked with the Office of the Attorney General.                                                                                
                                                                                                                                
MR. LOEFFLER responded that the bill has been reviewed by the                                                                   
Office of the Attorney General; they believe that the "notice of a                                                              
notice" is an "artifact."  In reply to a further comment from                                                                   
Representative Green about a precedent, Mr. Loeffler stated, "I                                                                 
don't believe that's a problem, sir."                                                                                           
                                                                                                                                
Number 0818                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI asked Mr. Loeffler whether a person can                                                                
request a reconsideration if a decision has not been appealed to                                                                
the commissioner.                                                                                                               
                                                                                                                                
MR. LOEFFLER answered that if the commissioner makes the decision,                                                              
it is no longer called an appeal; it is called a reconsideration.                                                               
If somebody other than the commissioner makes the decision, it is                                                               
called an appeal.  For example, the commissioner signs decisions                                                                
made for very important decisions in relation to oil and gas                                                                    
leases.  However, appeals of decisions made by his staff go to the                                                              
commissioner, and under current law a person can ask the                                                                        
commissioner again for a decision under reconsideration.                                                                        
                                                                                                                                
Number 0900                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT asked whether anyone else wished to testify, then                                                                 
closed the meeting to public testimony.                                                                                         
                                                                                                                                
Number 0921                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN stated that he is in favor of anything that                                                                
can streamline government without jeopardizing public notice.  He                                                               
pointed out that the bill is coming directly from the Office of the                                                             
Commissioner [DNR].                                                                                                             
                                                                                                                                
CHAIRMAN KOTT indicated three DNR representatives in the audience                                                               
were nodding their heads in agreement.                                                                                          
                                                                                                                                
Number 0943                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN made a motion to move HB 359 from the                                                                      
committee with individual recommendations and the attached zero                                                                 
fiscal note.  There being no objection, HB 359 was moved from the                                                               
House Judiciary Standing Committee.