Legislature(2005 - 2006)CAPITOL 124

01/24/2006 05:00 PM House OIL & GAS


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Audio Topic
05:05:22 PM Start
05:06:24 PM Overview/update from Alaska Oil & Gas Conservation Commission
05:54:43 PM HB300
06:03:39 PM Overview/update from Alaska Oil & Gas Conservation Commission
06:27:28 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Overview/Update from Alaska Oil & Gas TELECONFERENCED
Conservation Commission - Cathy Foerster,
Commissioner
= HB 300 OIL & GAS CONSERVATION COMMISSION MEMBER
Moved CSHB 300(O&G) Out of Committee
HB 300-OIL & GAS CONSERVATION COMMISSION MEMBER                                                                               
                                                                                                                                
5:54:43 PM                                                                                                                    
                                                                                                                                
CHAIR KOHRING announced that the  next order of business would be                                                               
HOUSE BILL  NO. 300,  "An Act relating  to the  qualifications of                                                               
the member of the Alaska  Oil and Gas Conservation Commission who                                                               
need  not be  certified, trained,  or experienced  in either  the                                                               
field  of  petroleum  engineering   or  the  field  of  petroleum                                                               
geology."                                                                                                                       
                                                                                                                                
5:55:07 PM                                                                                                                    
                                                                                                                                
CHAIR KOHRING,  sponsor of  HB 300, explained  that HB  300 "adds                                                               
some substance"  to the requirements  for the public seat  on the                                                               
three-member AOGCC.   As a result  of the oil and  gas industry's                                                               
technical  nature and  complexity, Chair  Kohring opined  that it                                                               
makes  sense  to  require  that an  appointed  individual  has  a                                                               
background in  the oil and gas  industry.  The law  [referring to                                                               
the  public seat  of  the  AOGCC] currently  reads  "Need not  be                                                               
certified,  trained,  or  experienced  in  either  the  field  of                                                               
petroleum  engineering or  petroleum technology."   However,  the                                                               
proposed committee  substitute (CS) says that  the public member,                                                               
"Shall  have  training or  experience  that  gives the  person  a                                                               
fundamental  understanding of  the oil  and gas  industry in  the                                                               
state."                                                                                                                         
                                                                                                                                
5:57:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SAMUELS  moved to  adopt  CSHB  300, Version  24-                                                               
LS0997\F, Kane,  1/23/06, as the  working document.   There being                                                               
no objection, Version F was before the committee.                                                                               
                                                                                                                                
5:57:42 PM                                                                                                                    
                                                                                                                                
DANIEL  T.   SEAMOUNT,  JR.,  Commissioner,  Alaska   Oil  &  Gas                                                               
Conservation  Commission  (AOGCC), Department  of  Administration                                                               
(DOA), stated that  the AOGCC can support HB 300.   He noted that                                                               
although   the  AOGCC   doesn't  feel   like  there's   been  any                                                               
demonstrative  problems with  lack  of experience  by the  public                                                               
member  in the  past, oil  and gas  operations are  becoming much                                                               
more  complex and  it's good  insurance  for all  members of  the                                                               
commission to  have a fundamental  understanding of  the industry                                                               
he/she regulates.                                                                                                               
                                                                                                                                
5:59:29 PM                                                                                                                    
                                                                                                                                
CHAIR  KOHRING  noted  that  [HB  300]  is  "definitely  not"  an                                                               
indictment of past members who have served on the AOGCC.                                                                        
                                                                                                                                
5:59:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SAMUELS asked if  "fundamental understanding" is a                                                               
term of art or if common sense should apply.                                                                                    
                                                                                                                                
MR. SEAMOUNT explained that  the term "fundamental understanding"                                                               
allows for some flexibility.   The AOGCC doesn't currently have a                                                               
definition for it.                                                                                                              
                                                                                                                                
MS. FOERSTER further explained that  while the AOGCC felt that it                                                               
was appropriate to  "tighten up" the requirement  "a little bit,"                                                               
the AOGCC didn't want to restrict  good applicants who might be a                                                               
little unorthodox  or might  not meet a  tight requirement.   She                                                               
said that  it would be  a loss to the  state if such  people were                                                               
kept from applying.                                                                                                             
                                                                                                                                
6:02:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROKEBERG  opined that an appointment  to the AOGCC                                                               
public seat  should not be  a political reward but  rather should                                                               
be based on competence.                                                                                                         
                                                                                                                                
6:03:11 PM                                                                                                                    
                                                                                                                                
CHAIR  KOHRING,  upon determining  that  no  one else  wished  to                                                               
testify on HB 300, announced the closure of public testimony.                                                                   
                                                                                                                                
6:03:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SAMUELS moved  to  report CSHB  300, Version  24-                                                               
LS0997\F,  Kane,  1/23/06,  out   of  committee  with  individual                                                               
recommendations  and the  accompanying zero  fiscal note.   There                                                               
being no objection,  CSHB 300(O&G) was reported out  of the House                                                               
Special Committee on Oil and Gas.                                                                                               

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