Legislature(2005 - 2006)FBX LIO Conf Rm
04/08/2005 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HCR2 | |
| SB144 | |
| SB103 | |
| SB110 | |
| SB155 | |
| SB70 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 71 | TELECONFERENCED | |
| + | SB 130 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 144 | TELECONFERENCED | |
| += | HCR 2 | TELECONFERENCED | |
| += | SB 70 | TELECONFERENCED | |
| += | SB 103 | TELECONFERENCED | |
| += | SB 110 | TELECONFERENCED | |
| += | SB 155 | TELECONFERENCED | |
9:24:56 AM SENATE BILL NO. 103 "An Act relating to regulation of underground injection under the federal Safe Drinking Water Act; and providing for an effective date." This was the first hearing for this bill in the Senate Finance Committee. DAN SEAMOUNT, Commissioner, Alaska Oil and Gas Conservation Commission, testified via teleconference from an offnet location and referenced a handout titled, "Alaska UIC Issues, What we do. What are the challenges? What are the options?" [Copy on file.] He stated this outlines the bill. Co-Chair Green requested the witness overview the information. 9:26:39 AM Mr. Seamount stated the second page of the handout summarizes the issue. This page reads as follows. AOGCC - EPA UIC Situation · Introduction · UIC and other USDW Responsibilities · Senate Bill 103 · The problem to solve o UIC Well Classes o Alaska UIC situation - redundancy, confusion, time, $$ · Options/Solutions Mr. Seamount testified this bill would allow the State, and specifically the Alaska Oil and Gas Conservation Commission (AOGCC), to obtain partial primacy for oversight of Class 1 type of disposal wells. There are only seven in the State. Currently the AOGCC has oversight of the approximately 1,155 Class 2 wells, which are constructed almost identically to Class 1 wells and are located in the same areas. The agency has inspectors on site and this legislation would not cost the State additional funds. Mr. Seamount remarked that the current "redundant" oversight results in confusion and requires time and money of both industry and government. With the passage of this legislation, one agency would provide oversight and issues decisions as to the types of fluids placed in these wells. Mr. Seamount informed that a task force has been formed with the federal Environmental Protection Agency (EPA) to address the transfer of this program. The EPA is "generally on board with this idea". Co-Chair Wilken directed attention to the photograph on the third page of the handout showing caribou grazing alongside the Alyeska Pipeline. This picture counters the argument about "caribou and pipelines not getting along." Senator Bunde told of 16 hunting trips he has made to Prudhoe Bay and reported that on each visit he has seen caribou "standing in the shade" of the pipeline. Senator Olson asked the consequences if this bill fails to pass in to law. 9:30:43 AM Mr. Seamount replied that without enabling statute, the agency could not assume operation of the program. The legislation would be reintroduced the following legislative session. Senator Olson asked how this would impact industry operations. 9:31:13 AM Mr. Seamount responded that generally EPA approval is significantly slower than AGOCC approvals. The confusion about allowable fluids for the different well classes would continue. As an example, fluids could not be deposited into a Class 2 well unless "they come from down the haul". Situations exist in which a "cement job is being run on a well" and the deposit of some materials could be made in a Class 2 well but other materials must be deposited into a Class 1 well. Exactly the same fluids have to go down different wells and often these wells are located near each other. 9:32:25 AM Senator Olson asked the industry opinion of this bill. 9:32:34 AM Mr. Seamount replied that the Alaska Oil and Gas Association has testified in support of this bill at hearings held in other committees. 9:32:47 AM Co-Chair Green asked how the original "misclassification" of these wells came about. 9:33:01 AM Mr. Seamount recalled that the passage of the federal Safe Water Drinking Act in approximately 1976 established five classes of wells. He noted that details of these classifications are contained in the aforementioned handout. The federal government had determined that class 2 wells used in the oil and gas industry could be managed by the State; the federal government must manage the remainder of well classifications. Co-Chair Green asked about any opposition to this bill. Mr. Seamount had heard of no opposition. Co-Chair Green noted that no one had signed up to testify. 9:34:26 AM Co-Chair Green noted the letter of intent adopted by the Senate Resources Committee. Mr. Seamount had no comment on the letter of intent. Co-Chair Green highlight that the letter of intent relates to the oversight of other class wells in the future by appropriate state agencies. 9:35:38 AM Co-Chair Wilken offered a motion to report the bill from Committee with individual recommendations, accompanying letter of intent and accompanying fiscal notes. There was no objection and SB 103 MOVED from Committee with the Senate Resources Committee letter of intent dated March 7, 2005, fiscal note #1 for $25,000 from the Department of Administration, and zero fiscal note #2 from the Department of Natural Resources. 9:36:33 AM [Pause on record.]
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