Legislature(1997 - 1998)

04/30/1998 01:30 PM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
HB 274 - OIL & GAS CONSERVATION COMMISSION                                     
                                                                               
CO-CHAIRMAN OGAN called on Representative Ramona Barnes to present             
the report on HB 274 from the subcommittee.                                    
                                                                               
Number 016                                                                     
                                                                               
REPRESENTATIVE RAMONA BARNES stated the subcommittee has done                  
extensive work on HB 274.  She reported Howard Grey of Anchorage               
and past president of the Professional Geologist Association (PGA)             
was contacted at the suggestion of Leo Mark Anthony regarding the              
petroleum geologists in Alaska.  He explained that there are                   
between 130 and 140 American Institute of Professional Geologists              
(AIPG) members in Alaska who are registered with PGA.  He further              
explained that the number could be doubled because there are                   
between 130 and 140 geologists working in Alaska who have not                  
registered with the association, but would otherwise probably                  
qualify.  He also estimated that of the 300 to 400 geologists in               
Alaska probably 100 are involved in some way with the oil industry             
and who may qualify under the bill to become a member of the Alaska            
Oil and Gas Conservation Commission.  Mr. Grey upon receipt of the             
proposed committee substitute said that the changes to the existing            
law were fine and that it was a valid idea to replace the term                 
"professional" with the term "petroleum" and cited arguments                   
presented by Representative Joe Green that licensure is not                    
mandatory to work within the industry in Alaska.  When asked                   
whether he thought the changes to the law would affect the size of             
the pool of applicants, he replied yes it was probable.  However,              
he felt that the wording of the bill would likely ratchet up the               
quality of individuals making up the pool.  The changes would give             
access to a greater number of individuals who would be more certain            
to qualify as members of the commission.  In addition, defining the            
qualified geologist as a "petroleum geologist" would also help                 
ensure well-qualified individuals for the commission.  To use his              
words, he said it probably would result in ... "A pretty good field            
to draw from."                                                                 
                                                                               
REPRESENTATIVE BARNES further stated that Mr. Leo Mark Anthony of              
Anchorage did not recall specific numbers, but noted there are many            
registered geologists in Alaska.  He also pointed out that AIPG is             
the primary qualifier.  It provides qualified applicants with a                
certificate and the state provides registration upon the                       
presentation of the AIPG certificate and the required money.  Mr.              
Anthony suggested when seeking applicants for the commission one               
should probably look for qualified, registered geologists within               
the petroleum industry who have at least 10 years of experience.               
The experience would be necessary to assure a knowledgeable                    
applicant.                                                                     
                                                                               
REPRESENTATIVE BARNES further stated that Catherine Reardon,                   
Director of Occupational Licensing, Department of Commerce,                    
explained the registration process under AS 08.02.011.  She stated             
registration is voluntary in Alaska and there is no renewal                    
process.  The problem is that few other states do it like Alaska               
resulting in many geologists from other states applying and                    
obtaining registration in Alaska.  Of the about 400 geologists                 
listed as registered, she estimates that only half live and work in            
Alaska.  A similar problem exists when attempting to tabulate the              
number of petroleum engineers.  Ms. Reardon noted that the records             
show a total of 89 petroleum engineers registered, and of that                 
number, 40 have provided out-of-state addresses.  That leaves just             
49 instate petroleum engineers.                                                
                                                                               
REPRESENTATIVE BARNES further stated that in a letter from                     
Assistant Attorney General Robert Mintz he indicated there were 579            
petroleum engineers employed within the state of Alaska in 1996,               
the most recent year from which data are available.  In both cases,            
it is unknown whether the individuals listed as petroleum engineers            
would actually qualify for the commission under the proposed bill.             
Mr. Mintz also pointed out that the number is not a reliable                   
estimate for determining who would qualify under the proposal.                 
                                                                               
REPRESENTATIVE BARNES further stated that Dave Johnston, the                   
petroleum geologist on the commission now, explained that the term             
"petroleum engineer" is an imprecise definition.  No one can                   
statistically answer how many petroleum engineers there are or how             
many there are in each category or speciality, such as subsurface.             
Mr. Johnston felt that to obtain an accurate count most likely                 
would require examining each individual and in whatever file is                
used.  Yet, he does not think that it will change the numbers                  
greatly.  He also pointed out that the way to improve HB 274 is to             
change the word "or" to "and" under 2(A).  Others, however, have               
indicated that such a change is unnecessary to redundant.  He also             
suggested making licensure a goal rather than a requirement.  There            
are many well-qualified engineers without licenses, although it is             
not difficult to obtain.                                                       
                                                                               
Number 165                                                                     
                                                                               
REPRESENTATIVE BARNES noted that there is a proposed committee                 
substitute for HB 274, version 0-LS0998\Q, Glover, 4/28/98.                    
                                                                               
REPRESENTATIVE BARNES explained the following language in Section              
1 has been deleted:                                                            
                                                                               
     "Before making an appointment, the governor may solicit                   
     the recommendations of professional or industry                           
     representatives for appointment of a commissioner."                       
                                                                               
REPRESENTATIVE BARNES stated it is unnecessary to include verbiage             
allowing a governor to seek council with professional or industry              
representatives when he already has that power.                                
                                                                               
REPRESENTATIVE BARNES further explained that the previous Section              
2 is now Section 1.  On page 2, line 7, the language "and the                  
person completes university or industry training" has been added.              
It was added with the intent of increasing the quality of the pools            
from which candidates are drawn for the commission.                            
                                                                               
Number 196                                                                     
                                                                               
CO-CHAIRMAN OGAN asked Representative Barnes which proposed                    
committee substitute is the new one.                                           
                                                                               
REPRESENTATIVE BARNES replied version "Q."                                     
                                                                               
Number 0208                                                                    
                                                                               
CO-CHAIRMAN BILL HUDSON asked Representative Barnes whether she has            
taken the proposed committee substitute and put it into the "Q"                
version.                                                                       
                                                                               
REPRESENTATIVE BARNES replied the "Q" version is the new proposed              
committee substitute from the subcommittee.                                    
                                                                               
Number 215                                                                     
                                                                               
REPRESENTATIVE BARNES made a motion and asked unanimous consent to             
adopt the proposed committee substitute for HB 274, version 0-                 
LS0998\Q, Glover, 4/28/98.  There being no objection, it was so                
adopted.                                                                       
                                                                               
CO-CHAIRMAN OGAN asked Representative Barnes to explain the changes            
to the committee substitute again.                                             
                                                                               
REPRESENTATIVE BARNES explained the following language in Section              
1 has been deleted:                                                            
                                                                               
     "Before making an appointment, the governor may solicit                   
     the recommendations of professional or industry                           
     representatives for appointment of a commissioner."                       
                                                                               
REPRESENTATIVE BARNES further explained on page 2, line 12, of                 
version "P", the language "including and completing course work"               
has been deleted and the language "and the person completes                    
university or industry training" has been inserted.                            
                                                                               
REPRESENTATIVE JOE GREEN noted his appreciation of the work that               
the subcommittee members have done.  The bill is better.  The only             
reason for the provision in Section 1, which has been removed, was             
to jab at the Governor.  He has maintained steadfastly that there              
aren't qualified individuals causing him to go out of the realm of             
what is necessary for the job.  For two years now he has nominated             
people who are obviously not qualified.                                        
                                                                               
Number 265                                                                     
                                                                               
CO-CHAIRMAN HUDSON made a motion to move the proposed committee                
substitute for HB 274, version 0-LS0998/Q, Glover, 4/28/98, out of             
the committee with individual recommendations and the attached zero            
fiscal note.                                                                   
                                                                               
Number 273                                                                     
                                                                               
REPRESENTATIVE IRENE NICHOLIA asked Representative Barnes whether              
the "Q" version would still restrict the pool to 25 persons.                   
                                                                               
REPRESENTATIVE BARNES replied it would not restrict the pool to 25             
persons, according to the research.  There are a lot of individuals            
who do not show up on the registers, but who work for oil                      
companies.  There is probably a pool of over 500.                              
                                                                               
CO-CHAIRMAN OGAN noted that there being no objection to the motion,            
CSHB 274(RES) was so moved from the House Resources Standing                   
Committee.                                                                     

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