Legislature(1993 - 1994)
01/24/1994 05:00 PM House O&G
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE SPECIAL COMMITTEE ON OIL & GAS
January 24, 1994
5:00 p.m.
MEMBERS PRESENT
Representative Joe Green, Chairman
Representative Pete Kott, Vice-Chairman
Representative Harley Olberg
Representative Gary Davis
Representative Jerry Sanders (arrived at 5:03)
Representative Joe Sitton
MEMBERS ABSENT
Representative Jerry Mackie
COMMITTEE CALENDAR
*HB 384 "An Act eliminating the temporary character of
alternative procedures available to persons who
must show evidence of financial responsibility
before conducting noncrude oil operations;
and providing for an effective date."
PASSED OUT OF COMMITTEE WITH INDIVIDUAL
RECOMMENDATIONS
WITNESS REGISTER
LARRY LABOLLE
Aide to Representative Richard Foster
Alaska State Legislature
Capitol Building Room 420
Juneau, Alaska 99801-1182
Phone: (907) 465-3789
Position Statement: Legislative Aide to Prime Sponsor of
HB 384
BILL SCHOEPHOESTER, Manager
Planning & Projects
Petro Marine Services
3111 "C" Street
Suite 500
Anchorage, Alaska 99503
Phone: (907) 562-5000
Position Statement: In favor of HB 384
MICHAEL CONWAY, Director
Division of Spill Prevention & Response
Department of Environmental Conservation
410 Willoughby
Suite 302
Juneau, Alaska 99801-1795
Phone: (907) 465-5250
Position Statement: In favor of HB 384
PREVIOUS ACTION
BILL: HB 384
SHORT TITLE: FINANCIAL REQMTS: NONCRUDE OIL OPERATIONS
SPONSOR(S): REPRESENTATIVE(S) FOSTER, Hoffman
JRN-DATE JRN-PG ACTION
01/18/94 2098 (H) READ THE FIRST TIME/REFERRAL(S)
01/18/94 2098 (H) OIL & GAS, RESOURCES
01/24/94 (H) O&G AT 05:00 PM CAPITOL 124
ACTION NARRATIVE
TAPE 94-01, Side A
Number 002
CHAIRMAN JOE GREEN called the meeting to order at 5:02 p.m.
Number 014
LARRY LaBOLLE, AIDE TO REP. RICHARD FOSTER, PRIME SPONSOR of
HB 384, testified on his behalf. He referred to a sponsor
statement which is on file. He stated the purpose of the
bill is to remove the sunset clause from the existing
legislation.
Number 030
BILL SCHOEPHOESTER (via Anchorage) stated that he also
represents the Association of Refined Oil Product
Distributors; an association of the three major line holders
that transport the line haul for the refined petroleum
products in the state of Alaska. He stated that it made a
lot of sense to repeal the temporary nature of the
authorization the Department of Environmental Conservation
(DEC) has to approve financial responsibility without direct
access. He stated HB 384 made good sense to him and he
would like to see it pass, because if the direct access
situation is ever corrected, it would not require any action
to change, because the DEC would not have to exercise it's
authority. He also stated that he has been struggling with
obtaining direct access insurance and has not had any
success.
Number 054
CHAIRMAN GREEN asked if there was anyone from the DEC who
might wish to answer questions or make a statement regarding
the fact that there is still an insurance problem.
Number 057
MICHAEL CONWAY, DIRECTOR OF THE DEC'S DIVISION OF SPILL
PREVENTION & RESPONSE, stated that the DEC supports
continuing the waiver provision and making the waiver
provision permanent. Without the provision, the DEC may
have to shut down facilities which provide fuel throughout
Alaska. The DEC is continuing to work with the insurance
industry to make direct action coverage more readily
available. He stated that there is a proposed product now
under review by DEC and the Department of Law, that would
serve as a rider for insurance coverage that does not offer
direct action. He stated the DEC believes that the waiver
provisions are strict enough (with a quarterly affidavit
required and the department's ability to deny waivers) that
the provision may be made a permanent part of the law. He
said the DEC supports the House language as optimal.
Number 069
CHAIRMAN GREEN asked Mr. Conway if HB 384 was passed out and
became law, and if in a few years some insurance company or
companies come forth and provide coverage, would the
Division of Spill Prevention & Response be the primary
office to bring that to the attention of the legislature?
Number 074
MR. CONWAY stated that it would be very easy for the DEC to
notify the legislature. The provision gives the DEC the
flexibility to be able to move with whatever the industry is
doing, but the DEC could provide the legislature with status
reports at any time.
Number 083
CHAIRMAN GREEN asked for the wish of the Committee.
Number 084
REPRESENTATIVE GARY DAVIS moved that the Committee pass out
HB 384 with individual recommendations.
Number 086
REPRESENTATIVE KOTT seconded the motion. There were no
objections.
Number 090
CHAIRMAN GREEN adjourned the meeting at 5:13 p.m.
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