Legislature(2017 - 2018)GRUENBERG 120
02/23/2018 01:30 PM House JUDICIARY
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| HB330 | |
| HB259 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | HB 259 | TELECONFERENCED | |
| += | HB 330 | TELECONFERENCED | |
HB 330-DNR: DISCLOSURE OF CONFIDENTIAL INFO
1:33:24 PM
CHAIR CLAMAN announced that the first order of business would be
HOUSE BILL NO. 330, "An Act authorizing the commissioner of
natural resources to disclose confidential information in an
investigation or proceeding, including a lease royalty audit,
appeal, or request for reconsideration and issue a protective
order limiting the persons who have access to the confidential
information."
1:34:17 PM
REPRESENTATIVE LEDOUX moved to adopt Amendment 1, which read as
follows:
[Amendment 1 did not go through the Legislative Legal and
Research Services Office. The legislative drafting procedures
were not followed.]
Page 3, line 25, following "department":
Insert "relating to oil and gas"
Page 3, line 26:
Delete "a lease"
Insert "an"
Page 6, line 20, following "royalty":
Insert "or net profit share"
REPRESENTATIVE KREISS-TOMKINS objected for purposes of
discussion.
1:34:39 PM
GREG SMITH, Staff, Representative Gabrielle LeDoux, Alaska State
Legislature, advised that the general intent of Amendment 1
seeks to limit the type of disclosures that are subject to the
protective orders for oil and gas lease audit appeals and
requests for consideration, as opposed to all types of leases.
He opined that adding this net profit share after the word
"royalty" [HB 330, page 6, line 26] better encapsulates what is
needed (audio difficulties) the types of work for these
disclosures.
1:35:43 PM
REPRESENTATIVE KREISS-TOMKINS noted that given the addition of
"relating to oil and gas," he asked whether Mr. King had any
communications with Usibelli Coal Mine, Inc., as to whether this
will satisfy its concern.
MR. SMITH advised that they had reached out to Usibelli Coal
Mine, Inc., and had not received a confirmation that this
amendment would allay its concerns, but he believes it does.
1:36:07 PM
REPRESENTATIVE KREISS-TOMKINS asked Mr. Smith to share with the
committee any response it may receive from Usibelli Coal Mine,
Inc.
MR. SMITH responded that he definitely would share Usibelli Coal
Mine's response with the committee.
1:36:29 PM
ED KING, Special Assistant, Commissioners Office, Department of
Natural Resources, was available to testify.
CHAIR CLAMAN asked Mr. King to generally offer the position of
the Department of Natural Resources (DNR) as to Amendment 1.
MR. KING referred to the first change within the amendment as
follows:
Page 3, line 25, following "department":
Insert "relating to oil and gas"
MR. KING said that it is DNR's perspective that it would
restrict or narrow the scope of the protective orders to issues
relating only to oil and gas; thereby alleviating the
hypothetical concerns of Usibelli Coal Mine, Inc., or others may
have in the mining community. Generally speaking, he said that
DNR does not object to this narrowing of the scope as it is not
aware of any issues, outside of oil and gas, that would actually
use this protective order. Clearly, he pointed out, DNR would
prefer the more general authority in the event those types of
situations arose in the future.
1:37:39 PM
MR. KING advised that the next two changes are technical changes
the department felt would benefit the bill, as follows:
Page 3, line 26:
Delete "a lease"
Insert "an"
MR. KING explained that the words "a lease" before the word
"audit" is not necessary, and as a modifier, it could be
interpreted to modify the words "appeal, or request for
reconsideration," as well. Therefore, removing the word "lease"
was a cleaner way to approach this issue, and then making the
grammatical change from "a" to "an."
Page 6, line 20, following "royalty":
Insert "or net profit share"
MR. KING explained that the third change in this amendment and
adding, after the word "royalty," the words "or net profit
share," of which has to do with the fact that net profit share
lease terms are not considered royalty payments. Therefore, he
advised, when DRN runs into a situation where it has to audit
the net profit share payments to make certain that revenue was
properly paid and collected, DNR wants to make certain the
terminology is there and there is no doubt that the intent of
the legislature was to include those net profit share terms.
1:39:15 PM
REPRESENTATIVE KREISS-TOMKINS withdrew his objection. There
being no objection, Amendment 1 was adopted.
[HB 330 was held over.]