Legislature(2021 - 2022)BARNES 124

03/22/2021 01:00 PM RESOURCES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 115 AQUATIC FARMING & HATCHERY SITE LEASES TELECONFERENCED
Moved HB 115 Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 81 OIL/GAS LEASE:DNR MODIFY NET PROFIT SHARE TELECONFERENCED
Moved CSHB 81(RES) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                         March 22, 2021                                                                                         
                           1:01 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Josiah Patkotak, Chair                                                                                           
Representative Grier Hopkins, Vice Chair                                                                                        
Representative Calvin Schrage                                                                                                   
Representative Sara Hannan                                                                                                      
Representative George Rauscher                                                                                                  
Representative Mike Cronk                                                                                                       
Representative Ronald Gillham                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Zack Fields                                                                                                      
Representative Tom McKay                                                                                                        
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                              
Representative Andi Story                                                                                                       
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 115                                                                                                              
"An Act  relating to  aquatic farming  and hatchery  site leases;                                                               
and requiring  the director of  the division of lands  to provide                                                               
the  legislature  with  an  annual  report  relating  to  aquatic                                                               
farming and hatchery site leases."                                                                                              
                                                                                                                                
     - MOVED HB 115 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE BILL NO. 81                                                                                                               
"An Act authorizing the commissioner of natural resources to                                                                    
modify a net profit share lease."                                                                                               
                                                                                                                                
     - MOVED CSHB 81(RES) OUT OF COMMITTEE                                                                                      
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 115                                                                                                                  
SHORT TITLE: AQUATIC FARMING & HATCHERY SITE LEASES                                                                             
SPONSOR(s): REPRESENTATIVE(s) STORY                                                                                             
                                                                                                                                
02/24/21       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/24/21       (H)       FSH, RES                                                                                               
03/04/21       (H)       FSH AT 11:00 AM GRUENBERG 120                                                                          
03/04/21       (H)       Heard & Held                                                                                           
03/04/21       (H)       MINUTE(FSH)                                                                                            
03/09/21       (H)       FSH AT 11:00 AM GRUENBERG 120                                                                          
03/09/21       (H)       Moved HB 115 Out of Committee                                                                          
03/09/21       (H)       MINUTE(FSH)                                                                                            
03/10/21       (H)       FSH RPT 7DP                                                                                            
03/10/21       (H)       DP: VANCE, STUTES, STORY, MCCABE,                                                                      
                         KREISS-TOMKINS, ORTIZ, TARR                                                                            
03/19/21       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/19/21       (H)       Heard & Held                                                                                           
03/19/21       (H)       MINUTE(RES)                                                                                            
03/22/21       (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                                                                              
03/10/21       (H)       Heard & Held                                                                                           
03/10/21       (H)       MINUTE(RES)                                                                                            
03/17/21       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/17/21       (H)       Heard & Held                                                                                           
03/17/21       (H)       MINUTE(RES)                                                                                            
03/19/21       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/19/21       (H)       Heard & Held                                                                                           
03/19/21       (H)       MINUTE(RES)                                                                                            
03/22/21       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
Grace Ervine, Staff                                                                                                             
Representative Josiah Patkotak                                                                                                  
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided an overview of the proposed                                                                     
committee substitute for HB 81 on behalf of Representative                                                                      
Patkotak, prime sponsor.                                                                                                        
                                                                                                                                
RYAN FITZPATRICK, Commercial Analyst                                                                                            
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                                                                                                              
                                                                                                                                
1:01:54 PM                                                                                                                    
                                                                                                                                
CHAIR  JOSIAH  PATKOTAK  called   the  House  Resources  Standing                                                             
Committee meeting to  order at 1:01 p.m.   Representatives Cronk,                                                               
Hopkins, Schrage,  Gillham, Hannan,  Rauscher, and  Patkotak were                                                               
present at the call to order.                                                                                                   
                                                                                                                                
         HB 115-AQUATIC FARMING & HATCHERY SITE LEASES                                                                      
                                                                                                                                
1:02:55 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK announced  that the first order  of business would                                                               
be HOUSE  BILL NO. 115, "An  Act relating to aquatic  farming and                                                               
hatchery site leases; and requiring  the director of the division                                                               
of  lands  to  provide  the legislature  with  an  annual  report                                                               
relating to aquatic farming and hatchery site leases."                                                                          
                                                                                                                                
1:03:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOPKINS  moved to report  HB 115 out  of committee                                                               
with individual recommendations and  the accompanying zero fiscal                                                               
note.  There  being no objection, HB 115 was  reported out of the                                                               
House Resources Standing Committee.                                                                                             
                                                                                                                                
1:04:10 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 1:04 p.m. to 1:06 p.m.                                                                       
                                                                                                                                
        HB 81-OIL/GAS LEASE:DNR MODIFY NET PROFIT SHARE                                                                     
                                                                                                                                
1:07:02 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."  [Before                                                               
the committee was  the proposed committee substitute  (CS) for HB
81, Version 32-GH1706\B, Nauman,  3/16/21, as amended, adopted as                                                               
the working  document during the  meeting of the  House Resources                                                               
Standing Committee on 3/17/21.]                                                                                                 
                                                                                                                                
REPRESENTATIVE  HOPKINS moved  to  adopt  the proposed  committee                                                               
substitute for  HB 81, Version  32-GH1706\I, Nauman,  3/22/21, as                                                               
the working  document.  There  being no objection, Version  I was                                                               
before the committee.                                                                                                           
                                                                                                                                
1:07:49 PM                                                                                                                    
                                                                                                                                
Grace  Ervine,  Staff,  Representative  Josiah  Patkotak,  Alaska                                                               
State Legislature,  provided an overview  of the proposed  CS for                                                               
HB 81,  Version I,  on behalf  of Representative  Patkotak, prime                                                               
sponsor.  She reminded the  committee that the prior proposed CS,                                                               
Version  B, conformed  the bill  from the  Department of  Law and                                                               
Department   of  Natural   Resources   drafting   style  to   the                                                               
Legislative Legal  Services drafting style.   She paraphrased the                                                               
changes   in  Version   I,  which   read  as   follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     Page 2 Lines 16  19                                                                                                        
          -  Clarifies language  in  subsection D  regarding                                                                    
     circumstances in which  capital expenditures are needed                                                                    
     to extend the  economic life of an oil or  gas field or                                                                    
     pool                                                                                                                       
          - Specifies that subsection D  only applies to net                                                                    
     profit share lease modifications                                                                                           
                                                                                                                                
     Page 2 Line 31                                                                                                             
          -  Conforming change  related to  changes made  to                                                                    
     subsection D                                                                                                               
                                                                                                                                
     Page 3 Lines 11  18                                                                                                        
          - Adds  further clarification to  modifications in                                                                    
     which  capital expenditures  are needed,  ensuring that                                                                    
     lessees   are  actually   making  the   needed  capital                                                                    
     expenditures                                                                                                               
                                                                                                                                
     Page 4 Line 18                                                                                                             
          -  Conforming change  related to  changes made  to                                                                    
     subsection D                                                                                                               
                                                                                                                                
1:09:29 PM                                                                                                                    
                                                                                                                                
RYAN FITZPATRICK,  Commercial Analyst,  Division of Oil  and Gas,                                                               
Department  of Natural  Resources,  referred to  comments he  had                                                               
made at the close of last session and thanked the committee                                                                     
members for their consideration and work on HB 81.                                                                              
                                                                                                                                
1:10:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOPKINS  moved to  report  CSHB  81, Version  32-                                                               
GH1706\I,  Nauman,  3/22/21,  out of  committee  with  individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no  objection,  CSHB  81(RES)  was  reported  out  of  the  House                                                               
Resources Standing Committee.                                                                                                   
                                                                                                                                
1:11:07 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Resources Standing Committee meeting was adjourned at 1:11 p.m.                                                                 

Document Name Date/Time Subjects
HB 81 CS 32-GH1706 Version I.pdf HRES 3/22/2021 1:00:00 PM
HB 81
HB 81 Changes in HRES CS Version I 3.22.2021.pdf HRES 3/22/2021 1:00:00 PM
HB 81