Legislature(2003 - 2004)
01/28/2004 03:35 PM Senate RES
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* first hearing in first committee of referral
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SB 264-REPEAL PIPELINE PREAPPLICATION DEADLINE
CHAIR SCOTT OGAN announced SB 264 to be up for consideration.
MS. MARTY RUTHERFORD, Deputy Commissioner, Department of Natural
Resources (DNR), said the purpose of this bill is to repeal the
sunset date in AS 38.35.145(c), the statute that allows DNR to
enter into agreements with perspective lessees to recover the
cost for preliminary work on a pipeline right-of-way lease
application. That provision ended on December 31, 2003. She
explained:
As a little background, Mr. Chairman, pipeline right-
of-way lease applicants must submit very detailed
applications that require a lot of engineering and
design work. To do that, applicants expend a great
deal of resources - just to complete that application.
The applicants have found and told us that it's very
useful to have agencies involved in the pre-
application so that they are aware of both permitting
issues at an early stage and detailed information that
we can provide them prior to getting their application
complete. We've also found that agency participation
during the pre-application phase expedites the review
and approval of the project ultimately.
This ability to enter into reimbursement agreements
has been used most recently for pre-application work
on the Pt. Thompson project before that project was
delayed and the Kenai Kachemak pipeline extension. It
might be useful for you to hear some of the types of
assistance provided at this stage. They include such
things as identification and explanation of applicable
state law and the regulatory requirements as well as
an explanation of the regulatory process,
identification of land ownership, not only state, but
federal and private. That affects who an applicant
must deal with to complete a pipeline right-of-way
lease. Another thing would be an identification of any
restrictions that exist on affected state lands which
might interfere with our authorizing a right-of-way
lease or hinder an applicant's ability to begin
construction. These things might include a third-party
interest such as a utility right-of-way or outside
influences such as archeological sights. We also
identify potential environmental issues such as
difficult stream crossings. Our assistance could
include reaching out to other affected parties. We
have done that in the past to help an applicant with
entities such as utilities that do have the right-of-
way or other landowners or even competing applicants
for the same right-of-way. We help an applicant to
understand the other party's interest and to help
resolve those conflicts.
Our assistance can be with helping an applicant to
develop an initial project application and perhaps one
of the most important aspects for a large project -
our ability to enter into reimbursement agreement for
the pre-application work allows us to staff up in a
timely fashion. So when an application does come in
the door, we can move the project through quickly.
MS. RUTHERFORD said the pre-application work is completely
applicant initiated. Without this legislation, DNR is not able
to work with the applicants until receiving an application. The
fiscal impact of passing this is zero, but the impact of not
passing it is significant. Without it, they can't enter into a
reimbursable service agreement and don't have any general funds
available to provide this type of assistance.
CHAIR OGAN asked when this bill was originally passed and about
the discussion of the sunset date in 2003.
MS. RUTHERFORD replied that she thought it was passed in 2000
and she couldn't find out why the sunset date was added.
SENATOR SEEKINS moved to pass SB 264 from committee with zero
fiscal note and individual recommendations. There were no
objections and it was so ordered.
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