Legislature(2009 - 2010)BUTROVICH 205
04/13/2009 03:30 PM Senate RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing: Board of Game | |
| HJR22 | |
| HJR28 | |
| Confirmation Hearings: Board of Fisheries | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | HJR 22 | TELECONFERENCED | |
| + | HJR 28 | TELECONFERENCED | |
| + | TELECONFERENCED |
HJR 28-OPPOSE RESTRICTIONS ON OIL/GAS ACTIVITIES
4:06:30 PM
CO-CHAIR WIELECHOWSKI announced HJR 28 to be up for
consideration. [CSHJR 28(RES)am was before the committee for
consideration.]
JEANNE OSTNESS, staff to Representative Johnson, sponsor of HJR
28, provided a brief explanation of the history of Outer
Continental Shelf (OCS) drilling.
MS. OSTNESS read the following statement:
In 1953 Congress passed the Submerged Lands Act (SLA)
which granted individual states the rights to natural
resources on submerged lands up to three miles from
shore. It also reaffirmed federal claims to all
resources on lands on the Outer Continental Shelf
(OCS) which consists of all lands seaward of the outer
limit of the state's 3 mile extent.
The passage of the Submerged Lands Act led to the
passage of the Outer Continental Shelf Lands Act later
in 1953. That act outlines the federal
responsibilities over the submerged lands and
authorizes the secretary of the Interior to lease
those lands for resource development.
In the 1960s and 1970s an emergent environmentalist
movement resulted in the passage of the National
Environmental Policy Act of 1969, the creation of the
EPA in 1970 and the establishment of the Clean Air Act
in 1972. These and other related bills created the
core of the regulatory framework that is currently
applicable to all extractive industries.
During the 80's, various area specific moratoriums on
OCS drilling were passed by Congress. During this
time, petroleum revenues dropped markedly.
By 1990 the bans on drilling had encompassed so much
of the US exclusive economic zone that a blanket
moratorium in most areas was enacted by the President.
In 2008, President Bush rescinded the presidential
moratorium on OCS drilling, removing one of the major
roadblocks. And in October of 2008, Congress followed
suit and rescinded their ban on OCS leasing and lands
came up for lease.
The (Mining and Minerals Service) MMS estimates that
about 574 million acres of the US OCS are currently
off limits representing about 85 percent of OCS
acreage offshore in the Lower 48. Estimated resources
in the banned areas are 17.8 billion barrels of oil
and 76.5 Tcf of natural gas.
A recent northern economics report commissioned by
Shell oil on the economic impacts of OCS development
in Alaska, projects that 35,000 jobs will be created
in the state over 50 years of OCS development. Those
jobs represent a combine payroll of $72 billion over
the 50-year period projected in the study.
Unfortunately, recent comments and actions by Interior
Secretary Salazar and President Obama have cast the
future of OCS drilling into doubt. Present Obama has
chosen to delay the lifting of the presidential
moratorium on OCS drilling and Secretary Salazar has
expressed an interest in closing or severely limiting
OCS exploration and drilling in areas of the Lower 48
in favor of an as yet uncrafted comprehensive energy
plan.
This kind of back-pedaling and uncertainty adversely
effects potential exploration and development.
Especially in economically uncertain times like these,
companies can't afford to risk huge sums of capital
unless they have a reasonable guarantee that their
investment won't be pulled out from under them at the
last minute.
To that effect, HJR 28 sends a clear message to
President Obama, Secretary Salazar and the US Congress
that they should pass no laws or administrative orders
that would restrict OCS drilling and exploration in
Alaska or the continental US. Further, it urges them
to encourage offshore exploration and drilling. I urge
you to support this resolution.
SENATOR FRENCH asked for Obama's comments which Ms. Ostness
referred to.
MS. OSTNESS said she has Secretary Salazar's at hand. She does
not have President Obama's comments with her but will get them
for Senator French.
4:11:54 PM
MARILYN CROCKETT, Alaska Oil and Gas Association, supported HJR
28. Ms. Crockett stated the MMS estimates that Alaska's OCS
resources contain an estimated 27 million barrels of oil and 132
trillion cubic feet of natural gas. Recent analysis shows it
could generate another $1.3 trillion in federal, state and local
revenues and contribute 150,000 jobs if the areas offshore that
are restricted from development at this time are opened up. On
the Alaska level there is the potential to generate 35,000 jobs
with a total payroll of $72 billion. Clearly this is an
important resource for Alaska and the nation.
4:14:04 PM
MS. CROCKETT said that a lot of challenges exist such as remote
location and harsh operating environment, but other challenges
can be minimized such as access restrictions.
4:14:34 PM
JASON BRUNE, Executive Director, Resource Development
Council(RDC), supported HJR 28. Mr. Brune stated that RDC is a
statewide non-profit, membership funded organization founded in
1975 comprised of individuals and companies from Alaska's oil
and gas, mining, timber, tourism and fisheries industries as
well as Alaska native corporations, local communities, organized
labor and industry support firms. RDC's purpose is to link these
together to encourage a strong, diversified private sector in
Alaska and expand the state's economic base through the
responsible expansion of natural resources. He said an
additional 15 trillion cubic feet of gas must be discovered for
the trans-Canada or Denali pipeline project to be economically
viable over the long term. He stated that we should be
encouraging OCS development not hampering it. OCS has a strong
track record of coexisting with other industries including
fishing.
MR. BRUNE stated that energy exploration, development and
production in federal and state waters around Alaska will occur
in an environmentally sensitive and responsible manner with
restrictions when needed. He said the U.S. has a moral
obligation to develop domestic energy sources. The OCS is the
ideal location and its resources will buy the time needed to
develop the alternative and renewable energy resources that will
someday break our reliance on foreign oil.
4:17:39 PM
MS. OSTNESS drew attention to the House amendment on page 3,
line 3 of the resolution. It put an emphasis on "responsible" in
encouraging and promoting continued responsible exploration,
development and production.
SENATOR FRENCH supported the thrust of this resolution, but he
was concerned about the WHEREAS clause on page 2, lines 18 - 21.
It states that key members of the Obama administration and
Congress have stated as "key priority" the restriction of
development of Alaska's off-shore oil and gas reserves. Senator
French said he wonders if it would be better to remove that
clause and focus on telling the Obama administration and
Congress that we are strongly in support of OCS development.
SENATOR HUGGINS objected for discussion. His first question to
the sponsor is whether that is true or not.
MS. OSTNESS replied that Secretary Salazar announced the
Department of the Interior's new strategy for developing an off-
shore energy plan. Ms. Ostness said step one is a 180-day
extension on comment period for the proposed 5 year plan for oil
and gas development. Step two is assembling a new report on
conventional and renewable off-shore energies and having then
four regional conferences to review the findings. The final step
is expediting renewable energy rule-making for OCS. Ms. Ostness
stated that it just seemed that it was a delaying tactic.
SENATOR FRENCH said he didn't hear it as a key priority of the
Obama administration to impose restrictions on developing
Alaska's off shore and gas reserves. That may be the underlying
motive but that is not what was stated. It is better off to
remove it.
SENATOR HUGGINS said it does appear to be a little bit of a
stick in the eye. He asked the sponsor if that had been pointed
out before.
MS. OSTNESS replied no, it had not.
CO-CHAIR WIELECHOWSKI said he hoped to move this out of
committee today as Secretary Salazar is in Alaska and a message
could be sent to him. Co-chair Wielechowski said he tends to
agree with Senator French.
4:22:16 PM
SENATOR WAGONER said it isn't imperative that this be given to
Secretary Salazar tomorrow. He said perhaps this section needs
to be rewritten and checked if it is factual. Even if it is
factual, it should be rewritten.
MS. OSTNESS said she does not think the sponsor would object to
taking that section out.
CO-CHAIR WIELECHOWSKI asked Ms. Ostness given the choice of
delaying the resolution or taking the section out, if she would
have a preference.
MS. OSTNESS replied that she would rather have it move.
SENATOR HUGGINS maintained his objection. He stated that it
would be smarter to take a look and see what's true and what's
not, change the language and capture the sponsor's intentions.
SENATOR FRENCH said he would just as soon remove that section.
It cleans it up and the message could be delivered to Secretary
Salazar when he's here in Alaska.
4:24:34 PM
MS. OSTNESS said that this is viewed as a "sense of the House,"
had the majority members signed the letter and have given
Secretary Salazar the resolution with the House's results.
CO-CHAIR WIELECHOWSKI said he would like to move HJR 22 today,
but it is a committee process.
SENATOR HUGGINS said he agreed with striking it, but the sense
of the House has already happened. The resolutions would be
different if the Senate changes it.
SENATOR FRENCH said there is no obligation that they be exactly
the same. The Senate could pass one that says what they have
agreed to.
SENATOR HUGGINS said he preferred to do the modification so that
it moves out, is accurate and doesn't stick somebody in the eye.
SENATOR STEVENS pointed out that this is a joint resolution. He
questioned that the House has already dispersed their version
even though it has not been approved by both the House and the
Senate.
MS. OSTNESS said a letter was written just indicating that the
House has passed this resolution and that it was viewed as a
sense of the House at this point.
SENATOR STEVENS remarked that sending a joint resolution that
hasn't been approved by the Senate was premature.
MS. OSTNESS replied that it was just a letter; they didn't send
the resolution.
SENATOR STEVENS said he is comfortable moving the resolution. It
does not harm the resolution to take it out.
4:26:48 PM
SENATOR WAGONER asked for clarification on what was sent, was it
a letter stating there was a resolution in process?
MS. OSTNESS answered yes - and that it had passed the House with
a majority vote.
SENATOR WAGONER said he'd be comfortable taking it out if the
sponsor didn't want to re-write the section, but he thinks if it
is left in it should be re-written.
SENATOR FRENCH maintains his motion to remove page 2, lines 18 -
21.
4:27:34 PM
CO-CHAIR WIELECHOWSKI asked if there was continued objection to
the motion of removing page 2, lines 18-21. There were no
objections and it was so ordered.
SENATOR FRENCH moved to report SCS CSHB HJR 28(RES)am be from
committee with individual recommendations. There were no
objections and it was so ordered.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Cliff Judkins - Confirmation.pdf |
SRES 4/13/2009 3:30:00 PM |
|
| Brent Johnson - Confirmation.pdf |
SRES 4/13/2009 3:30:00 PM |
|
| Stanley Hoffman - Confirmation.pdf |
SRES 4/13/2009 3:30:00 PM |
|
| HJR 22 - Bill Packet.pdf |
SRES 4/13/2009 3:30:00 PM |
|
| HJR 28 - Bill Packet.pdf |
SRES 4/13/2009 3:30:00 PM |