Legislature(2021 - 2022)BARNES 124

03/10/2021 01:00 PM RESOURCES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HJR 12 ENDORSING ANWR LEASING; RELATED ISSUES TELECONFERENCED
Moved CSHJR 12(RES) Out of Committee
-- Public Testimony <Time Limit May Be Set> --
+= HB 81 OIL/GAS LEASE:DNR MODIFY NET PROFIT SHARE TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                         March 10, 2021                                                                                         
                           1:03 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Josiah Patkotak, Chair                                                                                           
Representative Grier Hopkins, Vice Chair                                                                                        
Representative Zack Fields                                                                                                      
Representative Calvin Schrage                                                                                                   
Representative Sara Hannan                                                                                                      
Representative George Rauscher                                                                                                  
Representative Mike Cronk                                                                                                       
Representative Ronald Gillham                                                                                                   
Representative Tom McKay                                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 12                                                                                                   
Urging the  United States Department  of the Interior,  Bureau of                                                               
Land  Management, to  honor the  recent lease  sales and  proceed                                                               
with permitting  in the Arctic  National Wildlife  Refuge; urging                                                               
the President of  the United States to defend the  2020 Record of                                                               
Decision approving the Coastal Plain  Oil and Gas Leasing Program                                                               
in the  Arctic National Wildlife Refuge;  opposing designation of                                                               
the Arctic National  Wildlife Refuge as a  National Monument; and                                                               
urging the Alaska delegation in  Congress to uphold sec. 20001 of                                                               
the Tax Cuts and Jobs Act of 2017.                                                                                              
                                                                                                                                
     - MOVED CSHJR 12(RES) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 81                                                                                                               
"An  Act authorizing  the commissioner  of  natural resources  to                                                               
modify a net profit share lease."                                                                                               
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HJR 12                                                                                                                  
SHORT TITLE: ENDORSING ANWR LEASING; RELATED ISSUES                                                                             
SPONSOR(s): REPRESENTATIVE(s) RAUSCHER                                                                                          
                                                                                                                                
02/18/21       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/18/21       (H)       RES, STA                                                                                               
02/19/21       (H)       STA REFERRAL REMOVED                                                                                   
02/19/21       (H)       BILL REPRINTED                                                                                         
03/01/21       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/01/21       (H)       -- MEETING CANCELED --                                                                                 
03/03/21       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/03/21       (H)       -- MEETING CANCELED --                                                                                 
03/08/21       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/08/21       (H)       Heard & Held                                                                                           
03/08/21       (H)       MINUTE(RES)                                                                                            
03/10/21       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB  81                                                                                                                  
SHORT TITLE: OIL/GAS LEASE:DNR MODIFY NET PROFIT SHARE                                                                          
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/18/21       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/18/21       (H)       RES, FIN                                                                                               
03/05/21       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/05/21       (H)       Heard & Held                                                                                           
03/05/21       (H)       MINUTE(RES)                                                                                            
03/10/21       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
DEBBIE MILLER                                                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to HJR 12.                                                                       
                                                                                                                                
DOROTHY O'DONNELL                                                                                                               
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HJR 12.                                                                       
                                                                                                                                
FRANK WILLIAMS                                                                                                                  
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HJR 12.                                                                       
                                                                                                                                
ALAN WEITZNER, Executive Director                                                                                               
Alaska Industrial Development and Export Authority (AIDEA)                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HJR 12.                                                                          
                                                                                                                                
JULIANNE WARREN                                                                                                                 
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HJR 12.                                                                       
                                                                                                                                
CONNOR ODOM                                                                                                                     
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HJR 12.                                                                       
                                                                                                                                
LOIS EPSTEIN                                                                                                                    
The Wilderness Society                                                                                                          
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HJR 12.                                                                       
                                                                                                                                
ABIGAIL STESSEN                                                                                                                 
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HJR 12.                                                                       
                                                                                                                                
SONJA BENSON                                                                                                                    
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HJR 12.                                                                       
                                                                                                                                
NAURI TOLER                                                                                                                     
Eagle River, Alaska                                                                                                             
POSITION STATEMENT:  Testified in opposition to HJR 12.                                                                       
                                                                                                                                
FAY HEROLD                                                                                                                      
Seward, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to HJR 12.                                                                       
                                                                                                                                
KAY BROWN                                                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HJR 12.                                                                       
                                                                                                                                
JOSHUA KNICELY                                                                                                                  
Location not provided                                                                                                           
POSITION STATEMENT:  Testified in opposition to HJR 12.                                                                       
                                                                                                                                
JHONNY MEZA, Commercial Section Manager                                                                                         
Division of Oil and Gas                                                                                                         
Department of Natural Resources                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Provided information and answered questions                                                              
during the hearing on HB 81.                                                                                                    
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:03:00 PM                                                                                                                    
                                                                                                                                
CHAIR JOSIAH PATKOTAK called the House Resources Standing                                                                     
Committee meeting to order at 1:03 p.m.  Representatives * were                                                                 
present at the  call to order.  Representatives *  arrived as the                                                               
meeting was in progress.                                                                                                        
                                                                                                                                
         HJR 12-ENDORSING ANWR LEASING; RELATED ISSUES                                                                      
                                                                                                                                
1:03:53 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK announced  that the first order  of business would                                                               
be  HOUSE  JOINT  RESOLUTION  NO. 12  Urging  the  United  States                                                               
Department of the  Interior, Bureau of Land  Management, to honor                                                               
the recent lease sales and  proceed with permitting in the Arctic                                                               
National  Wildlife Refuge;  urging  the President  of the  United                                                               
States  to  defend the  2020  Record  of Decision  approving  the                                                               
Coastal Plain Oil and Gas  Leasing Program in the Arctic National                                                               
Wildlife  Refuge; opposing  designation  of  the Arctic  National                                                               
Wildlife Refuge  as a  National Monument;  and urging  the Alaska                                                               
delegation in Congress  to uphold sec. 20001 of the  Tax Cuts and                                                               
Jobs Act of 2017.                                                                                                               
                                                                                                                                
1:04:16 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK opened public testimony on HJR 12.                                                                               
                                                                                                                                
1:04:50 PM                                                                                                                    
                                                                                                                                
DEBBIE MILLER testified  in opposition to HJR 12.   She said that                                                               
she first  testified in defense  of the Arctic  National Wildlife                                                               
Refuge  (ANWR)   in  1985,  and   that  she  believes   that  the                                                               
legislature  should  not honor  the  recent  coastal plain  lease                                                               
sale,  not proceed  with  permitting in  ANWR,  and that  Section                                                               
20001 of  the Tax Cuts and  Jobs Act of 2017  should be repealed,                                                               
as  it violates  the original  purpose of  ANWR, as  well as  the                                                               
National Wildlife  Refuge [System] Administration Act.   She said                                                               
that  oil  development  is  not  compatible  with  the  wildlife,                                                               
wilderness,  and  recreational  value   of  ANWR.    She  further                                                               
explained  that the  Eisenhower  Administration  gave 20  million                                                               
acres of federal land to  the state for resource development, and                                                               
that there  are now 1,113 active  leases on the North  Slope, and                                                               
that there is a lot of  room for active oil development but that,                                                               
due to climate change, ANWR should  not be open to drilling as it                                                               
may  harm the  wildlife.   She  said that  people  of Canada  and                                                               
Alaska, as well  as Inupiat, are opposed to this  and that it's a                                                               
divisive issue.  She opined that  the state has many choices that                                                               
are wiser than drilling in  a federally-protected wildlife refuge                                                               
which the majority of Americans would prefer kept as it is.                                                                     
                                                                                                                                
1:08:52 PM                                                                                                                    
                                                                                                                                
DOROTHY O'DONNELL testified in opposition to  HJR 12.  She read a                                                               
statement as follows:                                                                                                           
                                                                                                                                
     To those of  you who plan to support this  bill, I know                                                                    
     you'll  ignore   the  righteous  voices   of  concerned                                                                    
     Alaskans  speaking  up  about the  desecration  of  the                                                                    
     birthing grounds for the  Porcupine caribou herd, about                                                                    
     the  Gwich'in people  who  have  sacred connection  and                                                                    
     rely on these lands, and  the climate crisis, which the                                                                    
     Arctic  is affected  by at  disproportional rates.   If                                                                    
     our  state's wellbeing  isn't reason  enough to  oppose                                                                    
     this resolution, then consider  the economic reasons of                                                                    
     this greedy  exploitation will not  succeed.   No major                                                                    
     oil companies  bid on  the leases in  ANWR.   They knew                                                                    
     this was a  fiscal and reputational risk.   The rest of                                                                    
     the world is rapidly  moving away from this destructive                                                                    
     industry.    If the  state  invested  in this  project,                                                                    
     these financial contributions  would be obsolete within                                                                    
     years  when  we  inevitably   make  the  transition  to                                                                    
     renewable  resources.    Please  stand  for  Alaska  in                                                                    
     opposing HJR 12.  Thank you.                                                                                               
                                                                                                                                
1:10:17 PM                                                                                                                    
                                                                                                                                
FRANK WILLIAMS testified  in opposition to HJR 12.   He said that                                                               
he is a long-time Alaskan and  opposes this resolution for all of                                                               
the  reasons the  committee has  already heard.   He  offered his                                                               
understanding that  a number of Alaskans  oppose "further actions                                                               
like this."                                                                                                                     
                                                                                                                                
1:11:20 PM                                                                                                                    
                                                                                                                                
ALAN WEITZNER, Executive  Director, Alaska Industrial Development                                                               
and Export Authority (AIDEA), testified  in support of HJR 12, as                                                               
follows:                                                                                                                        
                                                                                                                                
     I'm  calling in  today to  express AIDEA's  support for                                                                    
     HJR  12.   At  AIDEA,  our mission  is  to promote  job                                                                    
     growth  and spur  economic  development within  Alaska.                                                                    
     We  participated  in a  1002  Area  Leasing program  in                                                                    
     order  to  preserve  Alaska's ability  to  access,  and                                                                    
     responsibly  develop,  our   state's  abundant  natural                                                                    
     resources.    We  support  the   Voice  of  the  Arctic                                                                    
     Inupiat,  a   coalition  of   24  North   Slope  tribal                                                                    
     councils,  municipal  governments,  and  Alaska  Native                                                                    
     corporations,  which  includes  the Native  village  of                                                                    
     Kaktovik   and   the  Kaktovik   Inupiat   Corporation.                                                                    
     Together,  members of  the  Voice  have advocated,  and                                                                    
     continue  to advocate,  for responsible  development of                                                                    
     oil and gas resources  on the North Slope, specifically                                                                    
     within the 1002 area of ANWR.                                                                                              
                                                                                                                                
     Much  of the  economic development  and jobs  supported                                                                    
     across our  North Slope  communities has  resulted from                                                                    
     the  responsible development  of Alaska's  oil and  gas                                                                    
     resources.   Public funding from  taxes on oil  and gas                                                                    
     infrastructure   has   significantly   contributed   to                                                                    
     economic   security  within   those  communities,   and                                                                    
     provided  revenue  to  fund  local  services,  schools,                                                                    
     health clinics, housing,  emergency response, water and                                                                    
     wastewater, heat and  electric utilities, and countless                                                                    
     essential services.   As  for the  State of  Alaska, we                                                                    
     all benefit through half of  the fixed royalty of 16.67                                                                    
     percent  on any  increased production  from the  area's                                                                    
     development, and  this is  in addition  to the  half of                                                                    
     proceeds  that  are earned  from  the  1002 Area  Lease                                                                    
     sale.  We  also grow the Permanent Fund  for our future                                                                    
     generations.                                                                                                               
                                                                                                                                
     We  believe that  the passage  of this  resolution will                                                                    
     preserve Alaska's  ... rights designated  under [Alaska                                                                    
     National Interest  Lands Conservation Act]  ANILCA, and                                                                    
     the rights  conveyed to Alaska Native  corporations and                                                                    
     its communities.   It is our hope that  the result from                                                                    
     the passage of HJR 12  would be for President Biden and                                                                    
     his Administration  to spotlight  Alaska as  the leader                                                                    
     it is for responsible  resource development, and to not                                                                    
     restrict  the  development  of  our  own  resources  or                                                                    
     encroach on the  local communities' self-determination.                                                                    
     We ask  that instead,  the Biden  Administration uphold                                                                    
     Alaska  as the  gold standard  of American  innovation,                                                                    
     responsibility, and sustainability.                                                                                        
                                                                                                                                
1:14:18 PM                                                                                                                    
                                                                                                                                
JULIANNE WARREN testified in opposition  to HJR 12.  She recalled                                                               
hearing the  testimony of a  Gwich'in hunter  and language-keeper                                                               
when  this  legislation was  heard  during  the Thirtieth  Alaska                                                               
State  Legislature, and  she  opined that  his  testimony was  an                                                               
example of  the people who  are most  affected by plans  for ANWR                                                               
not  being heard.    She said  that she  recommends  The Man  Who                                                             
Became  a  Caribou to  learn  about  the connection  between  the                                                             
Gwich'in people and caribou, and  that those who want to continue                                                               
drilling have a narrative based on  untrue beliefs.  She ended by                                                               
saying, "Please listen, and don't pass this bill."                                                                              
                                                                                                                                
1:17:35 PM                                                                                                                    
                                                                                                                                
CONNOR ODOM  testified in  opposition to  HJR 12.   He  said that                                                               
there  is "no  such  thing  as sustainable  use  of oil,"  future                                                               
generations are "condemned to basically  a climate hell," and oil                                                               
production is irresponsible.   He said that by  putting oil "into                                                               
the  atmosphere,  you're not  only  condemning  people to  death,                                                               
you're  condemning  entire  ecosystems,"  and that  harm  to  the                                                               
planet should be considered.                                                                                                    
                                                                                                                                
1:19:21 PM                                                                                                                    
                                                                                                                                
LOIS EPSTEIN, The Wilderness Society,  testified in opposition to                                                               
HJR 12.  She read a statement as follows:                                                                                       
                                                                                                                                
     [The]   Wilderness  Society   has  worked   to  protect                                                                    
     Alaska's arctic  since our  founding in  the 1930s.   I                                                                    
     will  begin  my  testimony  by  quoting  excerpts  from                                                                    
     former  Deputy  Commissioner  of  [the  Department  of]                                                                    
     Revenue and  former AIDEA  board member  Larry Persily.                                                                    
     In his  January 29 piece  in the Anchorage  Daily News,                                                                    
     Persily said  that, other than AIDEA  bidding on Arctic                                                                    
     Refuge  leases on  January 6,  "the only  other bidders                                                                    
     were  an Anchorage-based  real estate  development firm                                                                    
     and a  U.S. subsidiary  of an Australian  company whose                                                                    
     stock  trades at  around a  penny  per share.   If  any                                                                    
     loyal company  with a lot of  money to risk on  a high-                                                                    
     cost,  highly controversial  arctic project  had wanted                                                                    
     to explore  in ANWR,  it would  have submitted  its own                                                                    
     bid,  but no  one did.   The  industry is  turning away                                                                    
     from expensive, risky,  controversial projects that can                                                                    
     take a decade or longer to  produce cash.  The world is                                                                    
     turning its  attention away from oil,  especially high-                                                                    
     profile, headline-grabbing Arctic development."                                                                            
                                                                                                                                
     While  you  may not  trust  what  I  have to  say,  the                                                                    
     legislature   ought  to   listen   to  Larry   Persily.                                                                    
     Alaska's    single-minded    approach    to    economic                                                                    
     development,   i.e.    focusing   only    on   resource                                                                    
     development, largely  on oil, needs to  change.  Alaska                                                                    
     now  gets  more money  from  investments  on an  annual                                                                    
     basis than from  oil.  There are lots  of problems with                                                                    
     HJR  12, including  the  2,000-acre  myth that  federal                                                                    
     legislators  concocted  to   mislead  the  public,  and                                                                    
     ignoring  BP's   major  North  Slope   pipeline  spill,                                                                    
     Representative (indisc.)  North Slope blowout,  and the                                                                    
     role the  refuge's oil would play  in worsening climate                                                                    
     change.   Additionally,  HJR 12  does not  maintain the                                                                    
     ecological  and  wilderness  treasure that  the  Arctic                                                                    
     Refuge   coastal  plain   represents,  nor   the  areas                                                                    
     important to the Gwich'in people  of Alaska and Canada.                                                                    
     Though  that  stands  to  benefit  from  Arctic  refuge                                                                    
     involvement,   including   the   Alaska   Oil   &   Gas                                                                    
     Association, Kaktovik  Inupiat Corporation,  and Arctic                                                                    
     Slope Regional  Corporation, are pushing hard  for this                                                                    
     resolution  to pass.   With  its problematic  "whereas"                                                                    
     statements and  its single-minded focus on  oil and gas                                                                    
     development  at the  expense  of  a national  treasure,                                                                    
     that   is  essential   habitat   for  subsistence,   we                                                                    
     respectfully ask legislators to  consider the facts and                                                                    
     vote "no" on HJR 12.                                                                                                       
                                                                                                                                
1:22:12 PM                                                                                                                    
                                                                                                                                
ABIGAIL  STESSEN testified  in opposition  to HJR  12.   She said                                                               
that this is the time to  diversify the energy economy instead of                                                               
developing more  oil.  She  said there are more  difficulties for                                                               
development, such as the decreasing  longevity of ice roads.  She                                                               
mentioned climate  change and  warned that  continued development                                                               
of  oil would  cost  the state  more than  monetary  value.   She                                                               
stated that  it would be  better to  plan for the  climate crisis                                                               
rather than "increasing the severity  of it through promoting oil                                                               
and gas development here."                                                                                                      
                                                                                                                                
1:23:58 PM                                                                                                                    
                                                                                                                                
SONJA BENSON  testified in opposition to  HJR 12.  She  said that                                                               
the  coastal plain  should  be preserved,  and  that she  doesn't                                                               
think this is  the right time to open a  rare, pristine area that                                                               
supports more than  170 species of birds, which  migrate all over                                                               
the world.   She said that it is an  international treasure which                                                               
would be  impacted by  oil development,  which is  not compatible                                                               
with wilderness values.   She said that with  the climate crisis,                                                               
she supports renewable resources.                                                                                               
                                                                                                                                
1:26:50 PM                                                                                                                    
                                                                                                                                
NAURI TOLER  testified in  opposition to  HJR 12.   She  said she                                                               
agreed  with  the  comments  that   had  been  made  by  previous                                                               
testifiers.   She said that  she understands that  business exist                                                               
to make a profit, but  observed that business is "not necessarily                                                               
designed to help our cultural ... way of life."                                                                                 
                                                                                                                                
1:29:02 PM                                                                                                                    
                                                                                                                                
FAY HEROLD testified in opposition to  HJR 12.  She said that the                                                               
effects  of climate  change are  visible in  Alaska.   She opined                                                               
that it's  time to  transition away from  fossil fuel,  and noted                                                               
that the  oil companies, as well  as the rest of  the planet, are                                                               
transitioning  also.   She  said  that  the state  must  consider                                                               
diversifying  energy, and  put  energy  into different  resources                                                               
instead of oil  lease sales.  She stressed that,  for the sake of                                                               
future generations, the state must change.                                                                                      
                                                                                                                                
1:31:45 PM                                                                                                                    
                                                                                                                                
KAY BROWN testified  in opposition to HJR 12.   She said that she                                                               
was the Director of Oil & Gas in  the 1980s, and at that time she                                                               
supported oil development, but she  has changed her mind over the                                                               
years  and now  feels it's  a  mistake.   She noted  that she  is                                                               
"especially troubled" by the effects  of climate change, and that                                                               
Alaska's  leaders need  to face  the  challenge.   She said  that                                                               
Alaska needs  to phase out  existing production and  shouldn't be                                                               
undertaking  new oil  development.   She  opined  there are  many                                                               
"inaccuracies" in HJR 12 that should be addressed.                                                                              
                                                                                                                                
1:34:16 PM                                                                                                                    
                                                                                                                                
JOSHUA KNICELY testified  in opposition to HJR 12.   He said that                                                               
"we are moving away from  fossil fuels" out of necessity, climate                                                               
change  is getting  worse,  and development  of  fossil fuels  is                                                               
clinging to the past.  He noted  that the state can move into the                                                               
future or  cling to "this  terrible thing" that will  hurt Alaska                                                               
in the future.                                                                                                                  
                                                                                                                                
1:35:48 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK,  after ascertaining  that there  was no  one else                                                               
wished to testify, closed public testimony on HJR 12.                                                                           
                                                                                                                                
1:36:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOPKINS  moved to  adopt Amendment 1,  labeled 32-                                                               
LS0413/B.1, Nauman, 3/8/21, which read as follows:                                                                              
                                                                                                                                
     Page 3, following line 14:                                                                                                 
     Insert new material to read:                                                                                               
     "WHEREAS support  for development of the  coastal plain                                                                  
     of the  Arctic National  Wildlife Refuge by  many state                                                                    
     residents is  predicated on  the maximum  employment of                                                                    
     the   in-state   workforce   during   all   phases   of                                                                    
     development and operation; and"                                                                                            
                                                                                                                                
1:36:19 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK objected for the purpose of discussion.                                                                          
                                                                                                                                
1:36:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOPKINS  explained  that  Amendment  1  would  be                                                               
inserted into  the discussion  on economic  impact and  asked for                                                               
support from the  committee to further support  Alaskan jobs with                                                               
this resolution.                                                                                                                
                                                                                                                                
1:37:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAUSCHER,  as prime sponsor  of HJR 12,  said that                                                               
he views Amendment 1 as friendly and that he supports it.                                                                       
                                                                                                                                
1:37:55 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK  removed his  objection.   There being  no further                                                               
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
1:38:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAUSCHER thanked committee  members for their time                                                               
and for the  thoughtfulness of Amendment 1.   He acknowledged the                                                               
Alaska  Support Industry  Alliance, the  Alaska Chamber,  and the                                                               
Resource Development  Council, and recognized the  March 8, 2021,                                                               
testimony of Matthew Rexford of  the Kaktovik Inupiat Corporation                                                               
as especially helpful.                                                                                                          
                                                                                                                                
1:40:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCKAY  spoke in support  of HJR 12,  [as amended],                                                               
and expressed his  belief that drilling operations  do not affect                                                               
the caribou.                                                                                                                    
                                                                                                                                
CHAIR  PATKOTAK said  the goal  is always  a balance  between the                                                               
village way of life and the economy.                                                                                            
                                                                                                                                
1:43:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS said that the  majority of the residents in                                                               
his  district  oppose  development   in  ANWR  for  environmental                                                               
reasons.   He expressed  his belief that  climate change  must be                                                               
addressed,  but said  he  would  be inclined  to  defer to  Chair                                                               
Patkotak.                                                                                                                       
                                                                                                                                
CHAIR PATKOTAK replied  that he is from Barrow, and  he noted the                                                               
pros and  cons of  oil operations,  expressing that  natural gas,                                                               
among other resources,  has benefited his constituents  as one of                                                               
the "tangible, immediate, life-changing things."                                                                                
                                                                                                                                
1:45:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CRONK expressed  his  belief that  Alaska is  the                                                               
safest place in the world when it comes to resource production.                                                                 
                                                                                                                                
1:46:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GILLHAM said  that caribou  are not  affected [by                                                               
the activity]  and that animals have  right of way when  they are                                                               
in  the area;  everything shuts  down when  an animal  is in  the                                                               
vicinity.    He also  indicated  that  he  would defer  to  Chair                                                               
Patkotak as a resident of the area.                                                                                             
                                                                                                                                
1:47:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOPKINS   said  that  many  of   the  people  who                                                               
testified were  from his  and a neighboring  district, and  he is                                                               
looking forward  to being a  part of  bodies that act  on climate                                                               
change in  the future.   He noted the  work of U.S.  Senator Lisa                                                               
Murkowski and  of Secretary Deb  Haaland as the  first indigenous                                                               
Secretary of the Interior.                                                                                                      
                                                                                                                                
CHAIR  PATKOTAK noted  the statements  referring to  deference to                                                               
himself  and his  district, and  he  remarked that  it's good  to                                                               
strike a balance between opinions for and against the issue.                                                                    
                                                                                                                                
1:49:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN said that,  insofar as hundreds of Alaskans                                                               
and her  own constituents oppose HJR  12, she would be  voting no                                                               
on HJR 12 on the House floor.                                                                                                   
                                                                                                                                
1:50:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOPKINS  moved to report  HJR 12, as  amended, out                                                               
of   committee   with    individual   recommendations   and   the                                                               
accompanying  fiscal  notes.   There  being  no objection,  CSHJR
12(RES)  was  reported  out  of   the  House  Resources  Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
1:50:50 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 1:50 p.m. to 1:54 p.m.                                                                       
                                                                                                                                
        HB 81-OIL/GAS LEASE:DNR MODIFY NET PROFIT SHARE                                                                     
                                                                                                                                
1:54:41 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK announced  that the final order  of business would                                                               
be  HOUSE BILL  NO. 81  "An Act  authorizing the  commissioner of                                                               
natural resources to modify a net profit share lease."                                                                          
                                                                                                                                
1:55:25 PM                                                                                                                    
                                                                                                                                
JHONNY  MEZA, Commercial  Section  Manager, Division  of Oil  and                                                               
Gas, Department of Natural Resources,  provided information on HB
81.   He noted  the questions posed  by committee  members during                                                               
the  March 5,  2021,  meeting  and said  that  the Department  of                                                               
Natural Resources (DNR) has provided answers.                                                                                   
                                                                                                                                
CHAIR  PATKOTAK  advised  the  committee  members  that  DNR  had                                                               
emailed the answers to their offices.                                                                                           
                                                                                                                                
1:57:22 PM                                                                                                                    
                                                                                                                                
CHAIR  PATKOTAK  opened  public  testimony   on  HB  81.    After                                                               
ascertaining  that no  one wished  to testify,  he closed  public                                                               
testimony.                                                                                                                      
                                                                                                                                
CHAIR PATKOTAK announced that HB 81 was held over.                                                                              
                                                                                                                                
1:58:33 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Resources Standing Committee meeting was adjourned at 1:58 p.m.                                                                 

Document Name Date/Time Subjects
HB 81 Letter of Support Alaska Oil and Gas Association 3.9.2021.pdf HRES 3/10/2021 1:00:00 PM
HRES 3/17/2021 1:00:00 PM
HRES 3/19/2021 1:00:00 PM
HB 81
HJR 12 Amendment Hopkins 3.10.2021.pdf HRES 3/10/2021 1:00:00 PM
HJR 12
HJR 12 Testimony Received by 3.9.2021.pdf HRES 3/10/2021 1:00:00 PM
HJR 12
HJR 12 Research AOGA Statement on Federal Leasing Ban 01.27.2021.pdf HRES 3/1/2021 1:00:00 PM
HRES 3/8/2021 1:00:00 PM
HRES 3/10/2021 1:00:00 PM
HJR 12
HJR 12 Sponsor Statement 2.22.2021.pdf HRES 3/1/2021 1:00:00 PM
HRES 3/8/2021 1:00:00 PM
HRES 3/10/2021 1:00:00 PM
HJR 12
HJR 12 Supporting Document ADN Editorial 3.1.2021.pdf HRES 3/8/2021 1:00:00 PM
HRES 3/10/2021 1:00:00 PM
HJR 12
HJR 12 Testimony Matthew Rexford Kaktovik Inupiat Corporation 2.28.2021.pdf HRES 3/8/2021 1:00:00 PM
HRES 3/10/2021 1:00:00 PM
HJR 12
HJR 12 FN NA.pdf HRES 3/8/2021 1:00:00 PM
HRES 3/10/2021 1:00:00 PM
HJR 12
HJR 12 Testimony AOGA 3.8.2021.pdf HRES 3/8/2021 1:00:00 PM
HRES 3/10/2021 1:00:00 PM
HJR 12
HJR 12 Testimony Tom Walsh AK Support Industry Alliance 3.8.2021.pdf HRES 3/8/2021 1:00:00 PM
HRES 3/10/2021 1:00:00 PM
HJR 12
HB 81 Presentation to HRES 3.5.2021.pdf HRES 3/5/2021 1:00:00 PM
HRES 3/10/2021 1:00:00 PM
HRES 3/19/2021 1:00:00 PM
HB 81
HB 81 Sectional Analysis Version A 2.23.2021.pdf HRES 3/5/2021 1:00:00 PM
HRES 3/10/2021 1:00:00 PM
HRES 3/17/2021 1:00:00 PM
HRES 3/19/2021 1:00:00 PM
HB 81
HB 81 Sponsor Statement 1.28.21.pdf HRES 3/5/2021 1:00:00 PM
HRES 3/10/2021 1:00:00 PM
HRES 3/17/2021 1:00:00 PM
HRES 3/19/2021 1:00:00 PM
HB 81
HB 81 Support DNR NPSL One Pager 3.5.2021.pdf HRES 3/5/2021 1:00:00 PM
HRES 3/10/2021 1:00:00 PM
HRES 3/17/2021 1:00:00 PM
HRES 3/19/2021 1:00:00 PM
HB 81
HJR 12 Testimony Received by 3.10.2021.pdf HRES 3/10/2021 1:00:00 PM
HJR 12
HJR 12 Testimony Received After Committee 3.10.2021.pdf HRES 3/10/2021 1:00:00 PM
HJR 12