02/23/1994 03:38 PM Senate RES

 CHAIRMAN MILLER called the Resources Committee meeting to order at            
 3:38 p.m. and announced  SB 322  (DELAYS OF OIL AND GAS LEASE SALES)     )    
 to be up for consideration.                                                   
                                                                               
 JIM EASON, Director, Division of Oil and Gas, said this is a very             
 simple, but important amendment.  It removes a provision requiring            
 when the Department schedules a sale on its five-year schedule that           
 they have to hold that sale within 90 days of the quarter in which            
 the sale is scheduled.  If they don't do that, they lose the                  
 opportunity to conduct the sale for a minimum of two years.                   
                                                                               
 The reason it should be deleted now, he explained, is because there           
 is a vast amount of laws and regulations that overlap, more than in           
 1978 when this amendment was adopted.  The likelihood is that sales           
 will often have to be delayed just to avoid potential complications           
 with these overlaps.                                                          
                                                                               
 MR. EASON said recently they have found another reason.  Last night           
 the Supreme Court noticed they would not hear the State's appeal on           
 the sale 78 decision.  He said the Department's ability to continue           
 to work with the public on that sale was stalled by this very                 
 provision.  They delayed that sale once in order to allow more                
 time, but couldn't delay it further because of this provision.                
                                                                               
 SENATOR LITTLE supported SB 322.  She said there were many                    
 difficulties with lease sale 78.  The Commissioner was not able to            
 hold additional public hearings although there were several                   
 requests after the public comment period had closed.                          
                                                                               
 SENATOR FRANK moved to pass SB 322 from Committee with individual             
 recommendations and accompanying fiscal note.  There were no                  
 objections and it was so ordered.                                             
 Number 92                                                                     
                                                                               
 SENATOR FRANK suggested sending an effective date along to the next           
 Committee.  SENATOR MILLER agreed.