05/19/2003 10:35 PM Senate RES

                 HB 283-ACREAGE FOR COAL LEASES                                                                             
                                                                                                                                
CHAIR  OGAN informed  members that  at the  last hearing  on this                                                               
legislation,  he  was  concerned  about  coal  leases  overlaying                                                               
traditional  oil and  gas  leases because  coal  is available  in                                                               
areas that  are also available  for areawide leasing for  oil and                                                               
gas in  the Tyonek Basin. He  noted the language on  page 1, line                                                               
11,  reads,  "The  coal  deposits  in the  land  covered  by  the                                                               
application shall  be temporarily  set aside" therefore  the coal                                                               
leases will not  affect deep hole oil and gas  leases. He said he                                                               
discussed  the matter  with Division  of  Oil and  Gas staff  and                                                               
learned that a company with a  coal lease can exploit the shallow                                                               
gas  for  either  production  or  safety  reasons.  He  said  his                                                               
concerns have been addressed.                                                                                                   
                                                                                                                                
SENATOR  WAGONER  moved HB  283  from  committee with  individual                                                               
recommendations and its attached zero fiscal note.                                                                              
                                                                                                                                
CHAIR  OGAN  announced  that  all  members  were  present  except                                                               
Senators  Lincoln  and  Elton. He  then  announced  that  without                                                               
objection, HB 283 moved from committee.