Legislature(2011 - 2012)BUTROVICH 205
03/19/2012 03:30 PM Senate RESOURCES
Audio | Topic |
---|---|
Start | |
SB159 | |
SB215 | |
HJR29 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+= | SB 159 | TELECONFERENCED | |
*+ | SB 215 | TELECONFERENCED | |
+ | HJR 29 | TELECONFERENCED | |
HJR 29-BLM LEGACY OIL WELL CLEAN UP 4:05:07 PM CO-CHAIR WAGONER announced consideration of HJR 29. CO-CHAIR PASKVAN moved to bring HJR 29 before the committee for discussion. CO-CHAIR WAGONER objected for discussion purposes. 4:05:45 PM REPRESENTATIVE CHARISSE MILLETT, Alaska State Legislature, sponsor of HJR 29, explained that this issue was brought forward to her by someone who interned with the Alaska Oil and Gas Conservation Commission (AOGCC) and inventoried legacy wells that were drilled between 1944 and 1981 by the US Navy and the US Geological Survey (USGS). These wells were drilled when there wasn't any way to plug and abandon a well and there weren't any regulations. There are 136 wells spread all over the National Petroleum Reserve (NPR-A) and they are all in various stages of decay. Some of them are unplugged, some are full of diesel and some have shacks with barrels of diesel in them. The Bureau of Land Management (BLM) has plugged seven wells; 42 wells are still in violation of AOGCC rules. The state has asked the BLM to come up and clean the wells, but their plan is about one well a year. These wells pose a risk not only to the pristine environment of the Arctic, but just as a risk to the ecosystem. The last survey of the wells was done in 2007. REPRESENTATIVE MILLETT said three wells have been lost due to coast line erosion; they're just missing. Three others can't be found due to the terrain of the North Slope, its permafrost and snow flow; some wells are wide open up there in lakes with no casing. One is called the "whistling well;" the reason is because natural gas is escaping from it and has been escaping for the last 50 years. As the state fights to open ANWR, these wells are being used on environmentalist websites saying they are oil company wells. They aren't! They have been told that 17 of the wells are being used to monitor climate change, but they don't know how they are cased, if diesel is still present or if they really are monitoring climate change. It's a disgrace to Alaskans to allow the federal government to treat our land this way. REPRESENTATIVE MILLETT said she met with the BLM in Anchorage twice and with the BLM and Department of Interior (DOI) twice in Washington, D.C. (DC) and was told both times thanks for coming, but we don't have any money. 4:10:52 PM She related further that a land conveyance was done between the Arctic Slope Regional Corporation and the North Slope Borough and the federal government that transferred 33 wells. The federal government has now said in that conveyance that responsibility for abandoning and plugging those wells lies with the new land owner, which was not part of the agreement. And, ironically, the federal government has leased land in NPR-A, and the OCS for a total of $9 billion. If a private company was doing this, the fines would be over $40 billion. REPRESENTATIVE MILLETT said that Senator Murkowski brought the issue to Secretary Salazar's attention and he said they could plug three wells this year. With enough pressure and public exposure she thought the rest of those wells could be abandoned and plugged appropriately. 4:13:37 PM CARL PORTMAN, Deputy Director, Resource Development Council (RDC), Anchorage, AK, supported HJR 29. Every member of the House supported this resolution and joined in as co-sponsors. The DOI and other federal agencies require private companies to explore for and produce domestic energy and mineral resources in an environmentally responsible manner. And through laws, regulations and permitting, federal agencies have set a high bar to mitigate impacts to the environment. As a result, industry has been held to the highest standards. When violations or permitting requirements occur, companies are held responsible, often facing steep fines. However, in the case of lands in the federal Arctic, the government has not held itself to the same high standard. Of the 130 legacy wells that were drilled, Mr. Portman said, only a handful of were properly plugged and reclaimed. The remaining wells are out of compliance with regulations adopted by the AOGCC. The federal government has been reminded repeatedly of its obligation to plug the legacy wells and reclaim sites, but the state cannot impose fines on the federal government. If it could, they would exceed $8 billion and much more of the statute of limitations could be disregarded. MR. PORTMAN said that HJR 29 points out the double standard and hypocrisy that exits in the federal government's permitting and regulation of resource development activities in Alaska. The resolution rightly urges the federal government to comply with the same laws and requirements it expects industry to follow. The federal government should lead by example and set an even higher standard for itself. 4:16:52 PM CATHY FOERSTER, Chairman, Alaska Oil and Gas Conservation Commission (AOGCC), Anchorage, AK, strongly supported HJR 29. She thanked the legislature and all others who have rallied around this issue in DC for our state. It is a subject that is near and dear to her heart. She presented a power point explaining that the federal government drilled the wells from 1944 to 1981 in northern Alaska called legacy wells. They are all on the western North Slope with geography and biology just like ANWR, but all are in an area called the National Petroleum Reserve instead of a national wildlife refuge. 4:17:38 PM She said the BLM within the DOI is the agency that operates these wells that have has been out of compliance with Alaska regulation at one time or another and most of them still are today. Given the condition of most of these wells, review of the applicable regulations would likely reveal that they are not even in compliance with the DOI's own regulations. MS. FOERSTER said she didn't have enough time to go through all the wells, but she showed them pictures of the most troubling. One was of hundreds of rusting drums that had chemicals in them at one time. DOI doesn't have enough budget to clean up the mess; they can't pick up drums, but they have enough money to rent a helicopter, fly a bunch of people out there and to take pictures of it. 4:20:29 PM SENATOR WIELECHOWSKI said her testimony was compelling and asked why not sue them. MS. FOERSTER replied that the state can't trump the federal government and can't sue it either. She's been told the only thing she could do is embarrass them in the court of public opinion. "So, here we go." She said the state BLM would like to clean this mess up, too, but their hands are tied by the meager budget the federal government gives them. It's against the rules to even ask for more money for this stuff. The feds have all that money from lease sales and she mentioned the renovation of the Mall and re- sodding. For the same money they could plug and abandon (P&A) all those wells. MS. FOERSTER explained that in Alaska proper plugging and abandonment of wells is governed by Article 2 of AOGCC regulations. The purpose of properly plugging and abandonment includes: public safety, protection of the environment and protection of sources of drinking water; it includes sufficient down hole cement and plugs to insure that underground fluids cannot migrate. With very few exceptions, the 137 legacy wells do not comply with this requirement. She said several wells were left open to the surface and some were filled with diesel when the federal government left them. 4:23:20 PM Proper P&A of wells require that all underground pipe be cut off five feet below ground level so that it cannot create an excavation hazard or become a problem during normal earth movement and with few exceptions, again, most of the wells don't comply. The oil industry gets blamed for situations in the picture. Proper P&A requires sufficient surface remediation so that the site blends in with the natural vegetation again within a few seasons. Many of the legacy well sites are permanent eyesores littered with rotting wood, rusting metal and other debris. The few wells that have been re-vegetated have potentially more serious down-hole mechanical issues, because they are not secure. MS. FOERSTER said delaying P&A has caused several wells to be lost and the BLM has taken them off their concern list since they can no longer find them, but out of sight and out of mind doesn't mean out of trouble. Postponing the abandonment of the remaining wells puts them at risk of being lost, as well. 4:26:39 PM MS. FOERSTER said the state shouldn't have to force the federal government into compliance; they should provide adequate funding to bring these wells into compliance with both state and federal regulations, maybe from federal lease sale money. CO-CHAIR PASKVAN thanked her for the "awesome presentation" and asked a rough estimate of what it would cost to make 130 wells safe. 4:28:27 PM MS. FOERSTER replied $500 million-or less, but there are probably ways to do it cheaper. For example, oil companies have said if they get to lease the land they would plug and abandon them for free. Also, the BLM cleans up one or two wells a year and leaves, but a large part of the cost is mobilization and demobilization of the equipment. If they were to move that equipment up there and do more than one well at a time there would be enormous economies of scale. SENATOR WIELECHOWSKI said he found it hard to believe that this is not a violation of some federal law. Have the state's attorneys looked at this? MS. FOERSTER replied "yes we have, and no we can't." She even talked to the head of the EPA Crimes Division who assured her if it happened more than five years ago, the statute of limitations would apply. The EPA would love to help, but they can't figure out what to do. CO-CHAIR PASKVAN asked if Alaska spent the money to clean it up, could it attach or hold on to some federal royalty dollars. MS. FOERSTER replied that the Attorney General hadn't offered that as a solution. 4:31:29 PM CO-CHAIR WAGONER opened public testimony. 4:31:32 PM DAVID THERIAULT, Alaska Conservation Alliance, Anchorage, AK, supported HJR 29. He said they knew very little about this issue before Representative Millett's office approached them about it. Ms. Foerster's presentation was very persuasive. Their concern is to protect the environment and health, but they also want to see consistent rules consistently applied for both private and government entities. CO-CHAIR WAGONER said maybe his group could contact other conservation groups to get them involved in putting some pressure on the federal government. MR. THERIAULT responded that the conservation community is learning about it now and starting to talk about it with some of the national organizations and they all want to solve this problem one way or another. CO-CHAIR WAGONER, finding no further comments, closed public testimony. CO-CHAIR WAGONER offered Amendment 1. 27-LS1208\A.1 Nauman 3/17/12 AMENDMENT 1 OFFERED IN THE SENATE BY SENATOR WAGONER Page 1, line 3, following "region": Insert "; and urging the Office of the Governor to increase nationwide awareness about legacy wells and well sites" Page 2, line 24, following "region": Insert "; and be it FURTHER RESOLVED that the Alaska State Legislature respectfully requests the Office of the Governor to disseminate information through appropriate national news outlets and by other available means to increase awareness nationwide of the dangerous conditions of the legacy wells and legacy well sites in the state and the federal government's failure to plug the legacy wells properly and reclaim the legacy well sites" CO-CHAIR WAGONER explained that at the time when the legislature was given a doubling of their office accounts, he refused to accept his, but he was pursuing diverting that money to this cause. The amendment asks the governor and his office to become involved in this resolution process and get them to buy PR in certain newspapers, and maybe use a photo array of properly abandoned wells in Alaska. He thought it would have a major effect on what the feds would be able to do to answer this problem. CO-CHAIR PASKVAN asked the bill sponsor's thoughts on the amendment. REPRESENTATIVE MILLETT said she welcomed the amendment. Her staff found that a full page black and white ad in the Washington Post would cost $54,000 to $110,000. CO-CHAIR WAGONER said if they can't get the money together to use newsprint, they could use the Internet and send emails to every conservation club in the United States. 4:37:35 PM SENATOR FRENCH said it looks like the language is designed to coax the governor and not use a "shall" or "must," so a fiscal note could be avoided, and he thought that was a good idea. CO-CHAIR WAGONER found no objections to Amendment 1 and announced that it was adopted. CO-CHAIR PASKVAN moved to report HJR 29 as amended from committee with individual recommendations and no attached fiscal note. There were no objections and SCS HJR 29(RES) moved from committee.
Document Name | Date/Time | Subjects |
---|---|---|
SB 215 - Route Comparison.pdf |
SRES 3/19/2012 3:30:00 PM |
SB 215 |
SB 215 - Sponsor Statement and Legislation.pdf |
SRES 3/19/2012 3:30:00 PM |
SB 215 |
SB 215 - Energy Cost Comparison.pdf |
SRES 3/19/2012 3:30:00 PM |
SB 215 |
SB 215 - Fairbanks Impact.pdf |
SRES 3/19/2012 3:30:00 PM |
SB 215 |
HJR 29_BLM Legacy Wells_AOGCC.pdf |
SRES 3/19/2012 3:30:00 PM |
HJR 29 |
HJR 29_Version A.pdf |
SRES 3/19/2012 3:30:00 PM |
HJR 29 |
HJR29_Fiscal Note_1-2-022012-LEG-N.pdf |
SRES 3/19/2012 3:30:00 PM |
HJR 29 |
HJR 29 Amend Wagoner.pdf |
SRES 3/19/2012 3:30:00 PM |
HJR 29 |
Draft CS SB 159-D version.pdf |
SRES 3/19/2012 3:30:00 PM |
SB 159 |