Legislature(2003 - 2004)
03/09/2004 03:17 PM House O&G
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 395-SHALLOW NATURAL GAS Number 0246 CHAIR KOHRING announced that the next order of business would be HOUSE BILL NO. 395, "An Act relating to shallow natural gas leasing and the regulation of shallow natural gas operations." Number 0286 REPRESENTATIVE ROKEBERG moved to adopt the proposed committee substitute (CS), Version 23-LS1314\C, Chenoweth, 3/9/04, as a work draft. There being no objection, Version C was before the committee. Number 0334 ERIC MUSSER, Staff to Representative Vic Kohring, Alaska State Legislature, explained that Version C has two changes. "A water component enacting an exaction fee and setting out criteria for testing wells and establishing a restoration fund was removed from the work draft," he explained. The second change is on page 1, Section 1, and takes the previous hydraulic fracturing language and splits it out, giving the Department of Natural Resources (DNR) the authority to regulate it on its own, he said. A provision is inserted to say that if reinjection of produced water is required, then reinjection would be done to depths below known sources of drinking water for consumption or agricultural purposes, he continued. It also gives DNR direct authority to regulate the disposal of waste produced during the operation. [Version C] addresses considerable public concern about protecting well water supplies and drinking water, he concluded. Number 0540 MARK MYERS, Director, Division of Oil & Gas, Department of Natural Resources (DNR), said he hoped the Alaska Oil and Gas Conservation Commission (AOGCC) was available to answer questions also. He mentioned regulations of hydraulic fracturing to protect ground water. He said Section 1 prohibits the practice of producing gas from an aquifer where water is used for drinking water, such as has been done in the Lower 48. Referring to the reinjection changes in Version C, he said produced water must now be reinjected at depths below the aquifer zone, which provides for strong protection of drinking water. The ability by the department to regulate the disposal of waste is also clearly stated in the proposed CS. Overall, Version C provides clarity and adds protection to ground water, he concluded. CHAIR KOHRING asked Mr. Myers to address the water fee issue. MR. MYERS replied that the biggest water-risk issue is when the gas is being produced from the same aquifer zone that is used for drinking water. In the Lower 48, in arid regions, there are cases where the coal seams are actually the drinking water aquifers, he noted. This [proposed CS] makes it clear that this activity would not be allowed in Alaska, he said. He asked Chair Kohring if that answers his question. CHAIR KOHRING replied that it helps. He asked if there was any further discussion on the bill. [None was offered.] Number 0822 REPRESENTATIVE ROKEBERG moved to report CSHB 395 [Version 23- LS1314\C, Chenoweth, 3/9/04] out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 395(O&G) was reported from the House Special Committee on Oil and Gas.
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