Legislature(1993 - 1994)
02/07/1994 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
February 7, 1994
5:00 p.m.
MEMBERS PRESENT
Representative Joe Green, Chairman
Representative Pete Kott, Vice Chairman
Representative Harley Olberg
Representative Gary Davis
Representative Joe Sitton
MEMBERS ABSENT
Representative Jerry Sanders
Representative Jerry Mackie
OTHER LEGISLATORS PRESENT
Senator Johnny Ellis
Senator Jalmar M. Kerttula
COMMITTEE CALENDAR
HB 199: "An Act relating to the exploration and production
of oil and gas and related hydrocarbons, to oil
and gas exploration licenses, and to oil and gas
leases in certain areas of the state; and
providing for an effective date."
ADOPTED HB 199 AND MOVED OUT OF COMMITTEE
WITH INDIVIDUAL RECOMMENDATIONS.
SJR 13: Opposing the ban on the export of Alaska North
Slope crude oil; endorsing HR 543, legislation
removing restraints on the export of Alaska North
Slope oil; requesting the Congress of the United
States to pass legislation to permit the export of
Alaska North Slope crude oil; and requesting the
President of the United States to present to the
United States Congress a recommendation to lift
the ban on the export of Alaska North Slope crude
oil.
ADOPTED SJR 13.
*HB 401: "An act establishing a procedure for review of
proposed projects under the Alaska coastal
management program, and relating to petitions for
compliance with and enforcement of district
coastal management programs under that program and
to the disposition of those petitions."
ADOPTED HB 199 AND MOVED OUT OF COMMITTEE WITH
INDIVIDUAL RECOMMENDATIONS.
WITNESS REGISTER
DR. PAUL RUSANOWSKI, Director
Division of Governmental Coordination
Office of the Governor
PO Box 110030
Juneau, Alaska 99811
Phone: (907) 465-3562
POSITION STATEMENT: Testified in support of HB 401.
STEVEN PORTER
ARCO, Alaska
P.O. Box 100360
Anchorage, Alaska 99510
Phone: (907) 265-6269
POSITION STATEMENT: Testified in support of HB 401.
MIKE O'MEARA
P.O.Box 1125
Homer, Alaska 99603
Phone: (907) 235-7767
POSITION STATEMENT: He questioned HB 401
BETH KERTTULA, Assistant Attorney General
Department of Law
Courthouse Building, 6th Floor
P.O. Box 110300
Juneau, AK 99811-0300
Phone: (907) 465-6713
POSITION STATEMENT: Testified in support of HB 401
PREVIOUS ACTION
BILL: HB 199
SHORT TITLE: OIL & GAS EXPLORATION LICENSES/LEASES
SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR
JRN-DATE JRN-PG ACTION
03/05/93 549 (H) READ THE FIRST TIME/REFERRAL(S)
03/05/93 549 (H) OIL & GAS, RESOURCES, FINANCE
03/05/93 549 (H) -ZERO FISCAL NOTE (REV) 3/5/93
03/05/93 549 (H) GOVERNOR'S TRANSMITTAL LETTER
03/15/93 (H) O&G AT 05:00 PM CAPITOL 124
03/16/93 (H) O&G AT 08:00 AM CAPITOL 124
03/22/93 (H) O&G AT 05:00 PM CAPITOL 124
03/22/93 (H) MINUTE(O&G)
03/25/93 (H) O&G AT 05:00 PM CAPITOL 124
03/31/93 (H) O&G AT 05:00 PM CAPITOL 124
04/06/93 (H) MINUTE(O&G)
04/07/93 (H) O&G AT 05:00 PM CAPITOL 124
04/07/93 (H) MINUTE(O&G)
01/13/94 (H) O&G AT 05:00 PM CAPITOL 124
01/26/94 (H) O&G AT 05:00 PM CAPITOL 124
01/31/94 (H) O&G AT 05:00 PM CAPITOL 124
01/31/94 (H) MINUTE(O&G)
02/07/94 (H) O&G AT 05:00 PM CAPITOL 124
BILL: SJR 13
SHORT TITLE: EXPORT OF ALASKA OIL
SPONSOR(S): SENATOR(S)ELLIS,Kelly,Rieger,Frank,
Leman,Donley,Kerttula,Sharp,Pearce,Little,Duncan,
Phillips,Miller;
REPRESENTATIVE(S) Green,Grussendorf,Nordlund
JRN-DATE JRN-PG ACTION
01/11/93 14 (S) READ THE FIRST TIME/REFERRAL(S)
01/11/93 15 (S) RESOURCES, JUDICIARY
03/24/93 933 (S) COSPONSOR(S): DONLEY
03/31/93 (S) RES AT 3:30 PM BUTROVICH RM 205
03/31/93 (S) MINUTE(RES)
03/31/93 (S) MINUTE(RES)
04/05/93 1100 (S) RES RPT CS 4DP NEW TITLE
04/05/93 1100 (S) ZERO FISCAL NOTE TO SB & CS
(REV)
01/21/94 (S) JUD AT 01:30 PM BELTZ ROOM 211
01/21/94 (S) MINUTE(JUD)
01/26/94 2595 (S) JUD RPT CS 3DP NEW TITLE
01/26/94 2596 (S) ZERO FISCAL NOTE TO CS
PUBLISHED (REV)
01/26/94 (S) RLS AT 11:30 AM FAHRENKAMP
ROOM 203
01/26/94 (S) MINUTE(RLS)
01/28/94 2614 (S) RULES RPT CS 5CAL AND DP NEW
TITLE
01/28/94 2614 (S) PREVIOUS ZERO FN APPLIES TO CS
(REV)
01/28/94 2624 (S) READ THE SECOND TIME
01/28/94 2625 (S) RLS CS ADOPTED UNAN CONSENT
01/28/94 2625 (S) COSPONSOR(S): KERTTULA, SHARP,
PEARCE
01/28/94 2625 (S) LITTLE,DUNCAN,PHILLIPS,MILLER
01/28/94 2625 (S) ADVANCED TO THIRD READING
UNAN CONSENT
01/28/94 2625 (S) READ THE THIRD TIME
CSSJR 13(RLS)
01/28/94 2626 (S) PASSED Y16 N- E4
01/28/94 2626 (S) Kelly NOTICE OF
RECONSIDERATION
02/01/94 2642 (S) RECONSIDERATION NOT TAKEN UP
02/01/94 2643 (S) TRANSMITTED TO (H)
02/02/94 2212 (H) READ THE FIRST TIME/REFERRAL(S)
02/02/94 2213 (H) O&G, RESOURCES
02/02/94 2230 (H) CROSS SPONSOR(S): GREEN,
GRUSSENDORF
02/02/94 2230 (H) CROSS SPONSOR(S): NORDLUND
02/07/94 (H) O&G AT 05:00 PM CAPITOL 124
BILL: HB 401
SHORT TITLE: COASTAL ZONE MANAGEMENT PROCEDURES
SPONSOR(S): SPECIAL COMMITTEE ON OIL AND GAS
JRN-DATE JRN-PG ACTION
01/26/94 2154 (H) READ THE FIRST TIME/REFERRAL(S)
01/26/94 2154 (H) O&G, RESOURCES
02/07/94 (H) O&G AT 05:00 PM CAPITOL 124
ACTION NARRATIVE
TAPE 94-5, SIDE A
Number 001
CHAIRMAN JOE GREEN called the meeting to order at 5:04 p.m.
He noted members in attendance. He noted that Anchorage and
Ketchikan were on-line via teleconference, later to be
joined by Fairbanks and Homer.
HB 199 - OIL & GAS EXPLORATION LICENSES/LEASES
Number 015
REPRESENTATIVE HARLEY OLBERG moved to adopt the committee
substitute for HB 199. Hearing no objections, it was so
ordered.
REPRESENTATIVE GARY DAVIS moved to adopt HB 199 with
individual recommendations and with attached fiscal notes.
Hearing no objection, it was so ordered.
Number 062
SJR 13 - EXPORT OF ALASKAN OIL
SENATOR JOHNNY ELLIS supported the resolution. He mentioned
that Alaska has lost about $2.5 billion since the early
1970s, when the two federal acts were imposed on the state.
He further stated the Department of Energy is reviewing the
national pros and cons of lifting the bans and although an
extension is expected regarding re-authorization of the
Export Act, Congressional hearings will soon be reviewing
the terms and details, which include Alaska's situation.
Therefore any expeditious assistance provided to Senator
Pearce in attending the Energy Council meeting next month
will assist our Congressional Delegation in making Alaska's
case in Congress.
Number 083
REPRESENTATIVE JOE SITTON stated that he supports the
resolution, but questioned TAPS's historical position on the
export ban.
SENATOR ELLIS responded to the question with some historical
information and indicated there probably was a deal made
between the Trans Atlantic Pipeline Service and the
legislation of the 1970s. Energy Department projections
have claimed that imported oil will be up to 60 percent in
the relatively near future, which is why the California
independent oil producers are our biggest allies in this
fight; domestic oil production is at the bottom of the
barrel. Although the timing seems to be right, this will be
an uphill battle. Members of Congress will be debating this
issue in the spring.
SENATOR JALMAR KERTTULA indicated Alaska's need for
inclusion and fair treatment in the nation's equity
policies.
Number 141
SENATOR ELLIS emphasized the importance of providing
Congress with current information such as the Prudhoe Bay
production curve. In order to make an informed decision,
Congress needs to know of brand new discoveries in the oil
field. Economists previously projected a two to seven year
glut of crude remaining on the West Coast; additional
information might indicate a greater benefit than is
currently being recognized.
REPRESENTATIVE PETE KOTT moved and asked unanimous consent
to adopt SJR 13. Hearing no objection, the motion carried.
Number 177
HB 401 - COASTAL ZONE MANAGEMENT PROCEDURES
DR. PAUL RUSANOWSKI, DIRECTOR, DIVISION OF GOVERNMENTAL
COORDINATION, OFFICE OF THE GOVERNOR, also ADMINISTRATOR,
ALASKA COASTAL MANAGEMENT PROGRAM, spoke for the need for
passage of this legislation. He said coastal zone
management (CZM) has been in existence since 1977 and it has
a fail-flaw that needs to be addressed. He stated the
Coastal Policy Council (CPC) has a due process conflict with
the legislation which supports the elevation process within
the CZM program. He further stated that roughly 70 percent
of Alaska's population resides within the coastal zone.
Alaska's CZM program encompasses most of the coastline and,
in some cases, extends hundreds of miles inland. The zone
inward varies because each district within the coastal zone
can set its boundaries based on various influences and
conditions. Within each district, any project that is
subject to permitting by more than one agency or is
federally permitted, is then coordinated in its review by
the Division of Governmental Coordination. The reviews are
then subject to elevation if a dissenting party objects, and
these can elevate to the director level within the resource
agencies and ultimately to the commissioner level. In the
present situation, an aggrieved party can also petition the
CPC to address the same issues that were subject to
elevation. A due process conflict is potentially created if
the commissioners of the resource agencies also sit on the
Coastal Policy Council. This happened recently with the
Timber Creek Cabin elevation. He stated that we need a
statutory and/or regulatory fix to resolve this issue. The
present bill separates individual projects from a petition
of process/policy concerns. A project would elevate through
the review process but would not be petitioned to the CPC.
In lieu of severing this petition process, another review
step has been created within the consistency determination
at the regional consistency level or the director level
elevation. The CPC would review their petition and make a
determination. If the comments were not fairly considered
they would remand the determination for review. This
resolves the existing due process problem. He pointed out
this as an equitable solution and it enhances the
consistency process. By moving from the APA process to an
informal hearing process, there is an estimated $8,000 net
savings to the program. This also provides an opportunity
to ensure that public comment is considered in the process.
At the present time, the public must rely on districts to
champion their comments.
DR. RUSANOWSKI called attention to the proposed amendment #2
which originated within governmental coordination, and
recommended that on page five, line 10, the following
language be added under item (B): " A party that is
authorized under AS 46.40.096(e-1) or (g) of this section
may file a petition showing..." This references both
conditions and preserves all petition rights.
Number 330
STEVEN PORTER, ARCO, ALASKA and MEMBER, COASTAL POLICY
COUNCIL, stated the CPC process was not designed to
accommodate the individual consistency determination
although they understand the need and desire to set a
balance between conservation and development issues. He
said they came up with a consensus document that provides
for a petition to the CPC regarding a reasonable time frame.
The recommendation is that the reasonable time frame be no
more than thirty days. The amendment as stated is on page
four, line six of the document.
Number 345
REPRESENTATIVE SITTON questioned whether thirty days was an
adequate time frame for the council to address a possibly
complex subject.
Number 350
MR. PORTER responded that because of the purpose of the
hearing, basically a single meeting of the CPC for a review
indicated that thirty days would be ample time. He stated
there has not been opposition to the thirty days.
Number 356
DR. RUSANOWSKI expressed there was no opposition to the
thirty-day period. He said there is an issue of adequate
notification which argues for a reasonable period of time.
From experience in working with elevations, which have a
fifteen day review, thirty days seems more than adequate.
Number 366
REPRESENTATIVE DAVIS questioned the logistics of the
council's management of this thirty day process of review.
Number 382
DR. RUSANOWSKI stated that a small number of projects,
approximately one dozen move forward with some dispute; they
are handled within a fifteen day meeting time line. He
explained that in this case, we are broadening out to
include the public and there is concern as to whether the
same fifteen days would be adequate in all cases.
Therefore, a longer period of time might be necessary to
accommodate the public. He concluded there seems to be no
problem with thirty days.
Number 405
REPRESENTATIVE KOTT asked if the period for receipt of
public comment was fifteen days.
DR. RUSANOWSKI responded the public comment period is
typically thirty days for a public notice project, however
it can be as short as seventeen days for response. He said
most of the projects have a thirty day public comment period
associated with them.
Number 418
MIKE O'MEARA (via Homer) commented that from his experience
it is difficult for the public to adequately cope with a
thirty day comment period as opposed to a sixty day period.
He asked that consideration be given to the comments
provided by the ombudsmen and other legislators in order to
provide adequate comment time for the average citizen. He
stated that he would like more information.
Number 459
DR. RUSANOWSKI addressed the concern by recounting that a
year and a half ago, the attorney general specified there
was a due process problem in addressing the elevations and
petitions. The CPC authorized governmental coordination to
proceed in building consensus for a solution. The process
included five participants from the CPC, Bob Walsh of
Community & Regional Affairs, five different coastal
districts, eight people from various resource agencies
within the state, and five private industry representatives.
In approximately a year's time, this working group met in
attempts to craft a concept. The concept went back to the
CPC in October of last year and was endorsed by the council
to move forward with support for legislative action. Since
October, members of this working group have met informally
with the Division of Governmental Coordination to work on
various drafts of the present legislation. In January, the
efforts were completed.
Number 501
MR. O'MEARA asked for an elaboration of the five coastal
districts involved in this process.
Number 506
DR. RUSANOWSKI stated that district participation was
solicited throughout the process, but the five districts
that chose to be consistent in their participation were
Bristol Bay Coastal Resource Service Area, Kodiak Island
Borough, Northwest Arctic Borough, North Slope Borough and
the Aleutians West Coastal Resource Service Area.
Number 529
BETH KERTTULA, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF
LAW, stated this legislation is the result of a very long
public process with a great deal of involvement from various
sectors; this resolution is able to involve both the CPC
while still allowing for an elevation process, thereby
working quite well in coordinating permits in Alaska. She
said that a copy of the opinion is available if anyone is
interested.
Number 568
CHAIRMAN GREEN questioned if the proposed changes would
satisfy potentially future litigation.
Number 588
MS. KERTTULA indicated that perhaps there may be future
regulations that require more input from the coastal
districts, but more to the point, she expressed her
confidence in this as an open and broad-based process. She
said this is a good step forward in allowing third parties
to petition the CPC, and because there is a time limit
involved, a notice will be required to go out. She further
stated this is one more step for public notice and notice
requirements that agencies will have to meet. Coastal
Management has been moving in this direction all along and
this takes it a step further.
Number 649
CHAIRMAN GREEN questioned if DR. RUSANOWSKI's testimony in
favor of the bill indicated the Administration's support of
the bill.
Number 656
DR. RUSANOWSKI said the Office of the Governor concurs with
this legislation.
TAPE 94-5, SIDE B
Number 660
A motion was made to adopt amendment #1. Hearing no
objection, the motion carried.
Number 668
REPRESENTATIVE KOTT moved to adopt amendment #2, either (e)
or (g). This amendment was submitted by Governmental
Coordination on February 2, 1994. Hearing no objection, the
motion carried.
Number 678
CHAIRMAN GREEN entertained a motion to move HB 401 out of
committee with individual recommendations as amended.
Hearing no objections, it was so ordered.
ADJOURNMENT
CHAIRMAN GREEN adjourned the meeting at 5:52 p.m.
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