Legislature(1993 - 1994)

02/22/1993 08:00 AM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
               HOUSE RESOURCES STANDING COMMITTEE                              
                        February 22, 1993                                      
                            8:00 a.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Representative Bill Williams, Chairman                                       
  Representative Con Bunde                                                     
  Representative Pat Carney                                                    
  Representative John Davies                                                   
  Representative Joe Green                                                     
  Representative Jeannette James                                               
  Representative David Finkelstein                                             
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  Representative Bill Hudson, Vice Chairman                                    
  Representative Eldon Mulder                                                  
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  Confirmation Hearings:                                                       
                                                                               
       Big Game Commercial Services Board:                                     
                                                                               
            Paul Johnson                                                       
            Glen Fredericks                                                    
                                                                               
       Alaska Oil & Gas Conservation Commission:                               
                                                                               
            David Johnston                                                     
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  Paul Johnson                                                                 
  P.O. Box 22                                                                  
  Elfin Cove, Alaska  99825                                                    
  Phone:  239-2211                                                             
  Position Statement: Provided information and answered                        
                      questions related to his nomination to                   
                      the Big Game Commercial Services Board                   
                                                                               
  Glenn W. Fredericks                                                          
  1400 Virginia Court                                                          
  Anchorage, Alaska  99510                                                     
  Phone:  274-2194                                                             
  Position Statement: Provided information and answered                        
                      questions related to his nomination to                   
                      the Big Game Commercial Services Board                   
                                                                               
  David W. Johnston                                                            
  320 Mariner Drive                                                            
  Anchorage, Alaska  99515                                                     
  Phone:  279-1433                                                             
  Position Statement: Provided information and answered                        
                      questions related to his nomination to                   
                      the Alaska Oil & Gas Conservation                        
                      Commission                                               
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 93-22, SIDE A                                                           
  Number 000                                                                   
                                                                               
  The House Resources Committee was called to order by                         
  Chairman Bill Williams at 8:05 a.m.  Members present at the                  
  call to order were Representatives Williams, Carney, Davies,                 
  Green, and James.  Members absent at the call to order were                  
  Representatives Hudson, Bunde, Finkelstein, and Mulder.                      
                                                                               
  CHAIRMAN BILL WILLIAMS announced the meeting was being                       
  teleconferenced to Anchorage, with the purpose of                            
  considering the confirmation of appointees to the Big Game                   
  Commercial Services Board and the Alaska Oil and Gas                         
  Conservation Commission.  The first appointee for                            
  consideration was Paul Johnson, appointee to the Big Game                    
  Commercial Services Board.                                                   
                                                                               
  Number 040                                                                   
                                                                               
  PAUL JOHNSON, NOMINEE, BIG GAME COMMERCIAL SERVICES BOARD                    
  (BGCSB), introduced himself and briefly described his                        
  activities on the BGCSB, which regulates the activities of                   
  big game guides.  He noted he was one of two members on the                  
  BGCSB who were also guides.                                                  
                                                                               
  Number 065                                                                   
                                                                               
  CHAIRMAN WILLIAMS asked if any committee members had                         
  questions for Mr. Johnson.  There were none.  He then asked                  
  if there was a motion for approval of the confirmation.                      
                                                                               
  REPRESENTATIVE JOHN DAVIES made the MOTION to APPROVE the                    
  confirmation of Paul Johnson to the BGCSB.                                   
                                                                               
  Number 074                                                                   
                                                                               
  CHAIRMAN WILLIAMS asked members to indicate if they were in                  
  favor of the motion.  Members present UNANIMOUSLY VOTED to                   
  APPROVE the confirmation.                                                    
                                                                               
  CHAIRMAN WILLIAMS announced the next candidate for                           
  confirmation, Glenn Fredericks.                                              
                                                                               
  Number 092                                                                   
                                                                               
  GLENN FREDERICKS, NOMINEE, BGCSB, testified by                               
  teleconference from Anchorage, telling the committee of his                  
  background in Native Corporation management, and his                         
  representation of the Kuskokwim area.  He said he had been                   
  appointed to the BGCSB six months ago.                                       
                                                                               
  CHAIRMAN WILLIAMS noted Representative Bunde had joined the                  
  meeting.  He then asked if there were any questions for Mr.                  
  Fredericks.  Hearing none, he asked the committee members if                 
  there was a motion.                                                          
                                                                               
  Number 120                                                                   
                                                                               
  REPRESENTATIVE DAVIES made the MOTION to APPROVE the                         
  confirmation of Glenn Fredericks to the BGCSB.                               
                                                                               
  CHAIRMAN WILLIAMS asked members to indicate their vote on                    
  the motion.  Without opposition, the confirmation was                        
  UNANIMOUSLY APPROVED.                                                        
                                                                               
  CHAIRMAN WILLIAMS introduced David Johnston.                                 
                                                                               
  Number 140                                                                   
                                                                               
  DAVID JOHNSTON, NOMINEE, ALASKA OIL AND GAS CONSERVATION                     
  COMMISSION (AOGCC), testified via teleconference from                        
  Anchorage.  He advised that he was first appointed to the                    
  AOGCC in January, 1989, by former Governor Steve Cowper.  In                 
  November, 1990, he reported, he was appointed chairman of                    
  the AOGCC, and has since been reappointed to a second term                   
  by Governor Hickel.  He reported that prior to his                           
  appointment to the AOGCC, he worked in the Division of Oil                   
  and Gas at the Department of Natural Resources (DNR).                        
                                                                               
  MR. JOHNSTON told the committee he has a master's degree in                  
  engineering and science management from the University of                    
  Alaska, and a bachelor's in geology from Montana State                       
  University.  He then described the activities of the AOGCC,                  
  and said when he was originally appointed it was with the                    
  goal of revitalizing the AOGCC.  The cornerstone of the                      
  AOGCC, he reported, was a computerized reservoir                             
  surveillance system for management of reservoirs.  He said                   
  this system allowed detailed production and decline                          
  information.  Expansion of the field inspection program had                  
  also been a major accomplishment of the commissioner during                  
  his tenure, he testified.                                                    
                                                                               
  MR. JOHNSTON told the committee the AOGCC has taken on a                     
  more outward focus than it previously had.  He said the                      
  emphasis has been on streamlining administration and on                      
  cooperation with other agencies, such as the Department of                   
  Environmental Conservation, in relation to naturally                         
  occurring radioactive material.  He also noted the AOGCC has                 
  become active nationally in oil and gas conservation issues.                 
                                                                               
  Number 245                                                                   
                                                                               
  REPRESENTATIVE JOE GREEN asked Mr. Johnston to comment on                    
  the AOGCC's powers of enforcement over the oil and gas                       
  industry, particularly in light of the AOGCC's funding                       
  status through oil industry revenues.                                        
                                                                               
  Number 269                                                                   
                                                                               
  MR. JOHNSTON responded that the AOGCC was an independent                     
  agency, and not part of the DNR as some parties have                         
  supposed.  He pointed out the state's landowner and                          
  regulatory enforcement roles were separate, and stressed the                 
  need for adequate funding for the AOGCC to meet its                          
  statutory obligations.                                                       
                                                                               
  Number 295                                                                   
                                                                               
  CHAIRMAN WILLIAMS noted Representative Finkelstein had                       
  joined the meeting.                                                          
                                                                               
  Number 297                                                                   
                                                                               
  REPRESENTATIVE CON BUNDE asked Mr. Johnston to define the                    
  AOGCC's relationship with the oil industry.                                  
                                                                               
  MR. JOHNSTON responded that there was an excellent                           
  relationship, and that the AOGCC took its statutory role                     
  seriously, and made strong efforts to protect the state's                    
  interests.  He said the AOGCC found the best approach has                    
  been to work with industry to resolve problems and not to                    
  put up obstacles to problem resolution.                                      
                                                                               
  Number 320                                                                   
                                                                               
  REPRESENTATIVE DAVIES returned to the concern about under-                   
  funding, and asked Mr. Johnston to comment on specific areas                 
  of concern.                                                                  
                                                                               
  Number 326                                                                   
                                                                               
  MR. JOHNSTON referred to the state's inspection program, and                 
  its expansion from three to five inspectors.  The biggest                    
  concern, he said, was with the AOGCC's capability to look at                 
  management of reservoirs while the AOGCC's staff was limited                 
  to one engineer to oversee management of all reservoirs in                   
  the state.  He compared the staffing to that in the Division                 
  of Oil and Gas pre-sale area.                                                
                                                                               
  Number 336                                                                   
                                                                               
  REPRESENTATIVE DAVIES asked what actions were the state                      
  authorized to take if resources were found to be managed                     
  improperly.                                                                  
                                                                               
  Number 350                                                                   
                                                                               
  MR. JOHNSTON told the committee the AOGCC had the powers to                  
  hold public hearings, subpoena records, and levy penalties                   
  against industry.  He stressed, however, that the AOGCC's                    
  practice was to work with industry to address potential                      
  problems before they reached the stage where violations                      
  needed to be penalized.                                                      
                                                                               
  Number 398                                                                   
                                                                               
  CHAIRMAN WILLIAMS entertained further questions for Mr.                      
  Johnston.  Hearing none, he asked committee members if                       
  anyone would like to put a motion before the committee.                      
                                                                               
  Number 405                                                                   
                                                                               
  REPRESENTATIVE DAVIES MOVED that the committee APPROVE the                   
  reappointment of David Johnston to the AOGCC.                                
                                                                               
  Number 410                                                                   
                                                                               
  CHAIRMAN WILLIAMS asked members to vote in favor of or in                    
  opposition to the motion.  Without opposition, the MOTION                    
  CARRIED and Mr. Johnston's confirmation was approved.                        
                                                                               
  ANNOUNCEMENTS                                                                
                                                                               
  Number 420                                                                   
                                                                               
  CHAIRMAN WILLIAMS announced the committee would next meet on                 
  Wednesday, February 24, 1993 at 8:00 a.m. to hear HB 133,                    
  related to fisheries' taxes.                                                 
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  There being no further business to come before the House                     
  Resources Committee, Chairman Williams adjourned the meeting                 
  at 8:25 a.m.                                                                 

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