Legislature(1995 - 1996)
02/20/1995 08:10 AM House RES
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HRES - 02/20/95 HB 128 - WASTE DISPOSAL PERMIT EXEMPTION CO-CHAIRMAN WILLIAMS said it was not his intention to move HB 128 out of committee today. JACK PHELPS, AIDE, REPRESENTATIVE BILL WILLIAMS, PRIME SPONSOR, stated HB 128 was drafted in response to a recommendation by the Alaska Minerals Commission in their 1995 report, to address a statute which, because of its tremendous breadth, had recently created concern for both the mineral industry and the water well drillers in Alaska. He said HB 128 provides an exemption for drilling and incidental wastes that result from certain industrial activities in the state that hitherto have been treated as minimal and noncontaminating. He noted because the existing statute AS 46.03.100 is extremely broad, the department was faced with moving into a general permit proposal to deal with things hitherto had been ignored. He stressed the intention of HB 128 is to narrow that down somewhat and make it more comfortable for the industry and the Department of Environmental Conservation (DEC) in terms of regulating this activity. MR. PHELPS told committee members there is a proposed committee substitute in their folders. He noted there are significant changes between the sponsor substitute and the proposed committee substitute. He requested that committee members look at page 2 on the committee substitute near the bottom. He said what is now Section 3 is drawn from the original section of the original bill. He explained this section was rewritten based on discussions with DEC and incorporates changes the department requested to clarify the bill more carefully. He stressed the intent and the actual meaning of this section of the bill is not altered by these changes but is made more clear and evident. MR. PHELPS explained the other change between the committee substitute and the previous version of the bill are the additions of Sections 1 and 2. He said these sections transfer the permitting authority for a particular type of disposal that takes place in the oil industry from DEC to the Alaska Oil and Gas Conservation Commission (AOGCC). He stated this change was initiated by comments from the AOGCC indicating there was some preference in both agencies for AOGCC to regulate it because AOGCC has petroleum engineers on their staff and it seemed more appropriate for AOGCC to handle it rather than DEC. He noted in discussions with both agencies, there was an agreement that the transfer of authority needed to take place. The question was whether the transfer could be done through a memo of understanding or in statute, which is an issue the legislature will have to decide. He pointed out the transfer of that authority is proposed to be done statutorily in HB 128. MR. PHELPS stated the new subsection proposed on page 2, lines 13- 17, contains a definition of nonhazardous drilling operation waste. He said there is concern regarding this definition. He told committee members there is a memo in their folders from Blair Wondzell, who is an engineer with AOGCC, which suggests if the Title 46 definition of nonhazardous waste is placed in this subsection, it may create difficulties because AOGCC normally operates under the federal definition for all of their underground injection control permits. AOGCC requested the committee look at possibly using federal language rather than state statutory language. MR. PHELPS stated he had discussed that request with DEC and currently in their regulations, under AS 46.03, they bring their definition under the federal definition. Therefore, it may be appropriate for the committee to roll some reference of the federal definition into this section of the bill. Number 170 REPRESENTATIVE SCOTT OGAN clarified that HB 128 eliminates a duplication of efforts by DEC and AOGCC. MR. PHELPS responded there is no dual permitting process at this time. He said DEC has the authority and has been permitting disposals. He added the department had contemplated using a memorandum of understanding to transfer the authority to AOGCC. He noted AOGCC is currently developing regulations to perform that permitting. He stated HB 128 would make it clear who was going to do the permitting so there would not be a possibility of a dual permitting system and it would clarify who has the authority. He said it was not his understanding that both agencies wanted to do the permitting, but rather the permitting needed to be done by the appropriate agency. REPRESENTATIVE OGAN clarified AOGCC is better qualified to do the permitting. MR. PHELPS replied that would not be the right phrase to use. He said it is more appropriate to say that the agency who has the general authority to deal with oil well activities and does have petroleum engineers on their staff be the permitting agency. REPRESENTATIVE JOE GREEN made a MOTION to ADOPT CSSSHB 128(RES). CO-CHAIRMAN WILLIAMS asked if there were any objections. Hearing none, the MOTION PASSED. Number 227 CO-CHAIRMAN GREEN wondered if the AOGCC is already doing this type of activity currently. MR. PHELPS stated the AOGCC is the agency that does the permitting for oil wells. He said DEC is currently permitting for annular pumping. He explained AOGCC is in the process of developing regulations under which they would regulate it and the contemplated move was the memorandum of understanding between DEC and AOGCC enabling AOGCC to take over that activity. He noted HB 128 proposes that transfer in statute rather than through a memorandum of understanding. CO-CHAIRMAN GREEN said the reason he brought that up is because there is an activity done in an oil well drilling process called cementing. He asked if that portion of the oil well completion is governed by AOGCC. MR. PHELPS responded cementing, which is a form of annular pumping, is currently regulated under AOGCC. Number 270 DEENA HENKINS, SECTION CHIEF, DRINKING WATER & WASTEWATER SECTION, DEC, said she appreciated Mr. Phelps working with the department to try and clarify the language of the proposed exemptions. She stated excavation dewatering type processes have been excluded from subsection (B) on page 3. She said excavation dewatering can produce a huge amount of muddy water and the department has regulated those discharges usually with general permits. A lot of the water coming out of excavations is groundwater. MS. HENKINS said the department suggests on page 3, line 17 that "groundwater" be added to the kinds of water being removed from excavations which are not exempt from permits. Therefore, it would include groundwater, stormwater, or wastewater run-off. She stated the other concern expressed to her about the exclusions is that as the bill is written, drilling wastes can be put on the land without requiring any permit. The department is concerned that there may be some drilling additives, particularly in mineral drilling operations, that possibly could contaminate a shallow aquifer that might be used as drinking water. She stated the department would like to further discuss these concerns with Mr. Phelps this week. Number 322 BEVERLY WARD, REPRESENTATIVE, ARCO ALASKA, stated ARCO fully supports the concept of AOGCC having the authority to regulate the annular pumping. However, she said once ARCO looked at the specific wording of how that is being proposed to be done, they did have some suggested changes but has not had the chance to work with the staff on those changes. She felt before the bill is moved from committee, ARCO will have a chance to work with AOGCC, DEC and staff to determine the appropriate language. CO-CHAIRMAN WILLIAMS announced HB 128 would be held.
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