Legislature(2021 - 2022)BUTROVICH 205

02/17/2021 03:30 PM Senate RESOURCES

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Audio Topic
03:32:13 PM Start
03:33:08 PM Confirmation Hearing(s)
04:23:08 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Consideration of Governor's Appointees: TELECONFERENCED
Big Game Commercial Services Board
-Michael Flores
-Peter Buist
-Aaron Bloomquist
Alaska Oil & Gas Conservation Commission
-Jeremy Price
-- Invited & Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE RESOURCES STANDING COMMITTEE                                                                             
                       February 17, 2021                                                                                        
                           3:32 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Joshua Revak, Chair                                                                                                     
Senator Peter Micciche, Vice Chair                                                                                              
Senator Click Bishop                                                                                                            
Senator Gary Stevens                                                                                                            
Senator Natasha von Imhof                                                                                                       
Senator Jesse Kiehl                                                                                                             
Senator Scott Kawasaki                                                                                                          
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Mike Cronk                                                                                                       
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARING(S)                                                                                                         
                                                                                                                                
Big Game Commercial Services Board                                                                                            
Michael Flores - Soldotna                                                                                                       
Peter Buist - Fairbanks                                                                                                         
Aaron Bloomquist - Copper Center                                                                                                
                                                                                                                                
     - CONFIRMATIONS ADVANCED                                                                                                   
                                                                                                                                
Alaska Oil and Gas Conservation Commission                                                                                    
Jeremy Price - Anchorage                                                                                                        
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
MICHAEL FLORES, Appointee                                                                                                       
Big Game Commercial Services Board                                                                                              
Department of Commerce, Community and Economic Development                                                                      
Soldotna, Alaska                                                                                                                
POSITION  STATEMENT:  Testified  as  appointee to  the  Big  Game                                                             
Commercial Services Board.                                                                                                      
                                                                                                                                
PETER BUIST, Appointee                                                                                                          
Big Game Commercial Services Board                                                                                              
Department of Commerce, Community and Economic Development                                                                      
Fairbanks, Alaska                                                                                                               
POSITION  STATEMENT:  Testified  as  appointee to  the  Big  Game                                                             
Commercial Services Board.                                                                                                      
                                                                                                                                
AARON BLOOMQUIST, Appointee                                                                                                     
Big Game Commercial Services Board                                                                                              
Department of Commerce, Community and Economic Development                                                                      
Copper Center, Alaska                                                                                                           
POSITION  STATEMENT:  Testified  as  appointee to  the  Big  Game                                                             
Commercial Services Board.                                                                                                      
                                                                                                                                
WAYNE KUBAT, board member                                                                                                       
Alaska Professional Hunters Association                                                                                         
Wasilla, Alaska                                                                                                                 
POSITION  STATEMENT: Testified  in support  of all  appointees to                                                             
the Big Game Commercial Services Board.                                                                                         
                                                                                                                                
JEREMY PRICE, Appointee                                                                                                         
Alaska Oil and Gas Conservation Commission                                                                                      
Department of Commerce, Community and Economic Development                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified as appointee  to the Alaska Oil and                                                             
Gas Conservation Commission.                                                                                                    
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:32:13 PM                                                                                                                    
CHAIR  JOSHUA   REVAK  called   the  Senate   Resources  Standing                                                             
Committee meeting to  order at 3:32 p.m.  Present  at the call to                                                               
order were  Senators Bishop, Stevens, Kiehl,  Kawasaki, and Chair                                                               
Revak.  Senators  Micciche  and  von  Imhof  joined  the  meeting                                                               
shortly thereafter.                                                                                                             
                                                                                                                                
CHAIR  REVAK  welcomed  Representative  Cronk  to  the  committee                                                               
meeting.                                                                                                                        
                                                                                                                                
^CONFIRMATION HEARING(S)                                                                                                        
                    CONFIRMATION HEARING(S)                                                                                 
               Big game Commercial Services Board                                                                           
           Alaska Oil and Gas Conservation Commission                                                                       
                                                                                                                                
3:33:08 PM                                                                                                                    
CHAIR REVAK  announced the  consideration of  Governor Appointees                                                               
to the Big Game Commercial Services Board (BGCSB).                                                                              
                                                                                                                                
CHAIR REVAK  explained the  function of BGCSB  is to  license and                                                               
regulate the  activities of providers  of commercial  services to                                                               
big  game  hunters  in  the  interest  of  the  state's  wildlife                                                               
resources.                                                                                                                      
                                                                                                                                
He  announced the  first appointee  for consideration  is Michael                                                               
Flores of  Soldotna. Mr. Flores'  initial appointment was  to the                                                               
license transporter seat on May 21,  2019 and his term expires on                                                               
March 1, 2023.                                                                                                                  
                                                                                                                                
3:34:09 PM                                                                                                                    
MICHAEL FLORES,  Appointee, Big  Game Commercial  Services Board,                                                               
Department  of  Commerce,   Community  and  Economic  Development                                                               
(DCCED), Soldotna, Alaska, explained he  has been in Soldotna for                                                               
30  years, married,  and has  three  children. He  noted he  owns                                                               
three  businesses:   fishing  chartersfishing    and  huntingone                                                                
lodge, and a peony farm.                                                                                                        
                                                                                                                                
He provided additional background information as follows:                                                                       
                                                                                                                                
   • Involved in fisheries for the last seven year with the                                                                     
     North Pacific Fishery Management Council (NPFMC), and the                                                                  
     Halibut Commission                                                                                                         
   • Marine transporter for hunting on Kodiak Island for the                                                                    
     last 19 years                                                                                                              
   • Very passionate about hunting and that is what brought him                                                                 
     to Alaska as a guide pilot where he guided and flew in the                                                                 
     Bush, and afterwards worked for MarkAir                                                                                    
   • His businesses employ approximately 30 people, 6 or 7 are                                                                  
     year-round                                                                                                                 
   • His businesses operate 10 boats in 5 locations on the Kenai                                                                
     Peninsula                                                                                                                  
                                                                                                                                
MR. FLORES  said he  is passionate about  hunting and  feels like                                                               
serving on BGCSB is a good fit for him.                                                                                         
                                                                                                                                
CHAIR REVAK noted his children have military experience.                                                                        
                                                                                                                                
MR.  FLORES answered  yes, two  sons  served in  the U.S.  Marine                                                               
Corps (USMC) and one son continues to serve in the USMC.                                                                        
                                                                                                                                
3:36:13 PM                                                                                                                    
CHAIR  REVAK asked  him to  confirm that  he has  done a  lot for                                                               
wounded veterans by using some of his guiding services.                                                                         
                                                                                                                                
MR. FLORES answered yes. He  explained he works with the Military                                                               
Warrior Support  Foundation to take wounded  military members out                                                               
for a week of hunting on Kodiak  Island. He said his intent is to                                                               
try  and  get  them  engaged  back in  lifemany   have  not  done                                                               
anything since serving in Iraq or other stations.                                                                               
                                                                                                                                
CHAIR  REVAK thanked  him  for  all that  he  does.  He said  his                                                               
involvement  [with  wounded  veterans]   says  a  lot  about  his                                                               
character.                                                                                                                      
                                                                                                                                
He asked  him what have been  his challenges thus far  with BGCSB                                                               
and what has been his approach to resolve those challenges.                                                                     
                                                                                                                                
3:37:34 PM                                                                                                                    
MR.  FLORES answered  there are  some ongoing  issues for  marine                                                               
transporting,  some people  would like  to  just get  rid of  the                                                               
whole   transporting   issue.    He   said   transporting   needs                                                               
strengthening.  He noted  [BGCSB]  has had  discussions with  the                                                               
troopers and addressed some of the issues they are having.                                                                      
                                                                                                                                
CHAIR   REVAK  announced   the   next   Governor  Appointee   for                                                               
consideration to  BGCSA is Mr.  Peter Buist;  initially appointed                                                               
to the public seat of BGCSB  on May 21, 2019 with term expiration                                                               
on  March  1,  2021;  reappointed   and  if  confirmed  his  term                                                               
extension expires March 1, 2025.                                                                                                
                                                                                                                                
3:39:31 PM                                                                                                                    
PETER  BUIST,  Appointee,  Big Game  Commercial  Services  Board,                                                               
Department  of  Commerce,   Community  and  Economic  Development                                                               
(DCCED), Fairbanks,  Alaska, detailed his  background information                                                               
as follows:                                                                                                                     
                                                                                                                                
   • Lived in Fairbanks for nearly 50 years                                                                                     
   • He has a couple of degrees                                                                                                 
        o Biology from Syracuse                                                                                                 
        o Environmental Resource Management from the State                                                                      
          University of New York                                                                                                
   • Currently serving in a public seat on BGCSB                                                                                
   • Retired Alaska master guide                                                                                                
   • Retired from a 30-year career with the Alaska Department of                                                                
     Natural Resources (DNR)                                                                                                    
        o Worked as a land manager, forester, and wildland                                                                      
          firefighter                                                                                                           
   • Guided in Alaska for over 40 years                                                                                         
   • Served on "the old Guide Licensing and Control Board                                                                       
   • Governor Cooper appointed to the Governor's Task Force on                                                                  
     Guiding and Game in 1988                                                                                                   
        o Out of the task force the legislature established the                                                                 
          first BGCSB                                                                                                           
   • Governor Murkowski appointed him to the Alaska Board of                                                                    
     Game in 2003                                                                                                               
                                                                                                                                
MR. BUIST  said he would like  to think he brings  an interesting                                                               
balance  of knowledge  and experience  to BGCSB.  Aside from  his                                                               
biology background, he understands and  has worked in the guiding                                                               
industry from many years, served  on regulatory boards, worked at                                                               
DNR, and is familiar with how land management agencies operate.                                                                 
                                                                                                                                
3:41:22 PM                                                                                                                    
CHAIR REVAK noted  he has a lot of experience.  He asked him what                                                               
has been his  biggest challenges at BGCSB and how  does he intend                                                               
to deal with those.                                                                                                             
                                                                                                                                
MR. BUIST answered his biggest  challenge was catching up after a                                                               
three-year hiatus  following retirement and giving  up his master                                                               
guide  license. He  said there  have been  mostly regulatory  and                                                               
statutory changes, as well as  changes in the way BGCSB currently                                                               
operates.                                                                                                                       
                                                                                                                                
He  noted  virtually   all  the  issues  BGCSB   deals  with  are                                                               
challenging, but probably  the most challenging one  for the last                                                               
year  has been  trying to  test  and query  new guide  applicants                                                               
without being present  in the same room. The  testing process has                                                               
been challenging, but BGCSB has done a pretty good job.                                                                         
                                                                                                                                
He added that  he has gone on  to BGCSB thinking he has  a lot of                                                               
guide  friends, but  he  ends  up with  more  guide enemies  than                                                               
friends.                                                                                                                        
                                                                                                                                
SENATOR  BISHOP thanked  him for  serving  on the  board and  for                                                               
putting himself up again [by  extending his appointment]. He said                                                               
his reputation  and track record precedes  him and he is  glad he                                                               
is serving on the board.                                                                                                        
                                                                                                                                
3:43:48 PM                                                                                                                    
SENATOR  KIEHL referenced  his extensive  resume and  thanked him                                                               
for all the work he has done over the years for the state.                                                                      
                                                                                                                                
He pointed out BGCSB is  a regulatory board, noting he previously                                                               
talked  about  examining applicants.  He  remarked  he knows  Mr.                                                               
Buist  can  hear  complaints  where  some  of  that  gets  quasi-                                                               
judicial.                                                                                                                       
                                                                                                                                
SENATOR KIEHL noted an individual  raised a question to him about                                                               
fairness and whether  everybody can get an even shake  and a fair                                                               
hearing.  He referenced  some  of the  "public  stuff" Mr.  Buist                                                               
posted online about "smarmy slobbering  sycophants." He asked him                                                               
how  he can  tellquoting  him"slobbering   orgasmic liberal"from                                                                
the regular kind.                                                                                                               
                                                                                                                                
MR. BUIST  replied he has no  idea what Senator Kiehl  is talking                                                               
about. He said  he does use social media occasionally,  but he is                                                               
not sure if  what Senator Kiehl is talking about  has anything to                                                               
do with  BGCSA. He  said since  Senator Kiehl  is talking  out of                                                               
context, he asked him for an explanation.                                                                                       
                                                                                                                                
SENATOR  KIEHL  explained somebody  sent  him  some social  media                                                               
posts  and they  are concerned  about character,  the ability  to                                                               
hear  people fairly,  and to  consider the  issues fairly  on the                                                               
boardif that is a public approach.                                                                                              
                                                                                                                                
3:45:37 PM                                                                                                                    
MR.  BUIST replied  he  still does  not  understand the  possible                                                               
connection to  BGCSB. He  explained when a  person who  is trying                                                               
for a license  comes before BGCSB, the board  has specific things                                                               
to test and query  about. He said in all his  years on the board,                                                               
he cannot  ever remember  anyone asking if  they were  liberal or                                                               
not. He remarked he sees what  Senator Kiehl is trying to do, but                                                               
he still does not think it has anything to do with BGCSB.                                                                       
                                                                                                                                
CHAIR  REVAK asked  if  anyone  has ever  accused  him of  acting                                                               
biased during his long history of service.                                                                                      
                                                                                                                                
MR. BUIST asked if he meant  biased about how he has performed on                                                               
the board.                                                                                                                      
                                                                                                                                
CHAIR REVAK replied yes.                                                                                                        
                                                                                                                                
MR. BUIST answered he does not think so.                                                                                        
                                                                                                                                
CHAIR REVAK asked if  he feels biases will play a  role in how he                                                               
acts in his service on the board.                                                                                               
                                                                                                                                
MR. BUIST replied he  does think it has and he  does not think it                                                               
will.                                                                                                                           
                                                                                                                                
3:47:04 PM                                                                                                                    
CHAIR REVAK thanked him for being willing to serve.                                                                             
                                                                                                                                
CHAIR   REVAK  announced   the   next   Governor  Appointee   for                                                               
consideration  to   BGCSA  is  Aaron  Bloomquist.   He  said  Mr.                                                               
Bloomquist's  appointment will  begin  March 1,  2021 and  expire                                                               
March 1, 2025.                                                                                                                  
                                                                                                                                
3:47:40 PM                                                                                                                    
AARON BLOOMQUIST, Appointee, Big  Game Commercial Services Board,                                                               
Department  of  Commerce,   Community  and  Economic  Development                                                               
(DCCED),   Copper  Center,   Alaska,   detailed  his   background                                                               
information as follows:                                                                                                         
                                                                                                                                
   • He and his family lives in Palmer during the winter and                                                                    
     spring, summer, and fall in Copper Center where he                                                                         
     operates:                                                                                                                  
        o Alaska Outfitters Unlimited and Fishing Bug Charters:                                                                 
             square4 Provides guided hunting for almost all of                                                                  
               Alaska's big game species                                                                                        
             square4 Fishing charters in the Copper River drainage                                                              
             square4 Sightseeing tours for Princess Cruises.                                                                    
   • His business has a hunting concession in:                                                                                  
        o The Arctic National Wildlife Refuge Wilderness                                                                        
        o The Wrangell-St. Elias National Park and Preserve                                                                     
          Wilderness                                                                                                            
   • His business operates hunting services on Ahtna Native                                                                     
     Corporation lands in the Copper River basin.                                                                               
                                                                                                                                
MR. BLOOMQUIST  said he really  believes that everyone  that uses                                                               
wildlife resources  in their  professionsand  otherwise  for that                                                               
mattershould   give back  as much  as possible.  He noted  he has                                                               
spent "tons of time" on committees, boards, and meetings.                                                                       
                                                                                                                                
He stated  like Mr.  Flores, he  also has  a passion  for getting                                                               
veterans in  the field. He  noted he has hosted  approximately 60                                                               
disabled  veterans on  hunting trips  over  the yearsabout   half                                                               
were severely disabled.                                                                                                         
                                                                                                                                
MR.  BLOOMQUIST added  he  has  spent hundreds  of  hours a  year                                                               
working  on  wildlife  issues  in Alaska  over  the  last  couple                                                               
decades.  He   said  he  has   served  on  numerous   boards  and                                                               
conservation  organizations  in   state  and  federal  sanctioned                                                               
committees. He stated he believes  everyone should participate in                                                               
public service  and is honored by  his appointment to one  of two                                                               
licensed-guide representatives to BGCSB.                                                                                        
                                                                                                                                
3:49:58 PM                                                                                                                    
SENATOR STEVENS noted he has recused  himself 2 or 3 times out of                                                               
200 votes. He asked when he has had to recuse himself.                                                                          
                                                                                                                                
MR. BLOOMQUIST replied  he may be looking at  his application for                                                               
the Board of Game.  He said he is not sure he  would ever have to                                                               
recuse  himself in  the BGCSB  setting  because everything  board                                                               
members do relates to their profession.                                                                                         
                                                                                                                                
He noted he  applied for an appointment to BGCSB  or the Board of                                                               
Game.                                                                                                                           
                                                                                                                                
SENATOR  STEVENS said  his  question on  recusal  relates to  the                                                               
Board of Game.                                                                                                                  
                                                                                                                                
SENATOR  MICCICHE noted  he appreciates  his resume  addendum and                                                               
his full  transparency on  an unfortunate  shot, even  though the                                                               
application process does require the disclosure.                                                                                
                                                                                                                                
3:51:53 PM                                                                                                                    
MR. BLOOMQUIST  said those  comments means a  lot. He  stated, "I                                                               
guess we probably should all just  be open with all of this stuff                                                               
and there would be a lot less gotchas, probably."                                                                               
                                                                                                                                
SENATOR MICCICHE  remarked he must  have had his bow  draw weight                                                               
at 90-plus pounds.                                                                                                              
                                                                                                                                
MR.  BLOOMQUIST replied  his setting  was only  70 pounds  and it                                                               
just happened to hit a certain part of the animal.                                                                              
                                                                                                                                
SENATOR KIEHL noted  he mentioned in his materials  about some of                                                               
the work he  did trying to protect wild sheep  from pathogens and                                                               
his  proposals to  the Board  of Game.  He said  he realizes  his                                                               
question references  a different  board, but  he asked  him about                                                               
whether BGCSB  is involved in  anyway in some of  the discussions                                                               
about  pack animals  and protecting  wild sheep  populations, and                                                               
how he would work on that.                                                                                                      
                                                                                                                                
3:53:05 PM                                                                                                                    
MR. BLOOMQUIST  noted he was one  of the founding members  of the                                                               
Wild  Sheep Foundation  in Alaska.  He  said he  knows BGCSB  has                                                               
commented in the past on  the [micoplasmaovapnemonia] (MOV) issue                                                               
getting into wild sheep.                                                                                                        
                                                                                                                                
He remarked he  is not sure MOV is  a good fit to work  on a lot,                                                               
but he has worked and continues  to work behind the scenes on the                                                               
MOV issue  and any other  conservation issues. He said  he thinks                                                               
he drafted  the proposal that  brought MOV to the  forefront with                                                               
the Board of Game.                                                                                                              
                                                                                                                                
MR.  BLOOMQUIST admitted  he has  taken  some heat  over his  MOV                                                               
proposal because it  was a bit of a hammer  to get the discussion                                                               
going,  but  that was  his  intent  because  the State  has  been                                                               
sitting on the issue for 20 years  or more. However, he is not as                                                               
involved in  MOV as he  once was,  the Wild Sheep  Foundation has                                                               
taken over working on MOV and there has been some progress.                                                                     
                                                                                                                                
He said  he is glad to  see MOV has  moved along, and he  will do                                                               
what he can to help with it.                                                                                                    
                                                                                                                                
CHAIR REVAK thanked Mr. Bloomquist for being willing to serve.                                                                  
                                                                                                                                
3:55:19 PM                                                                                                                    
CHAIR REVAK opened public testimony.                                                                                            
                                                                                                                                
3:56:09 PM                                                                                                                    
WAYNE   KUBAT,   board   member,  Alaska   Professional   Hunters                                                               
Association,  Wasilla,  Alaska,  testified   in  support  of  all                                                               
appointees to the Big Game Commercial Services Board.                                                                           
                                                                                                                                
He noted  he is a  45-year Alaska resident  and has lived  in the                                                               
Mat-Su Valley since 1984.                                                                                                       
                                                                                                                                
He detailed  he earned his  registered guide license  and started                                                               
his own guiding business in 1986.                                                                                               
                                                                                                                                
He said  he is serving his  ninth year on the  board of directors                                                               
and   currently  serves   as  vice   president  for   the  Alaska                                                               
Professional Hunters Association (APHA)  and is speaking on their                                                               
behalf.                                                                                                                         
                                                                                                                                
He detailed  according to APHA's  third McDowell Group  report on                                                               
Alaska's  guided  hunting   industrycompleted   January  2021and                                                                
shared the following information:                                                                                               
                                                                                                                                
   • 420 master and registered guides in 2019                                                                                   
        o 250 contracted 1 or more hunts                                                                                        
   • Only master or registered guides can be professional                                                                       
     members of APHA                                                                                                            
   • APHA's professional membership is over 170                                                                                 
   • Approximately two-thirds of all contracting Alaska guides                                                                  
     are professional members of APHA                                                                                           
   • In addition to master and registered guides, there are 640                                                                 
     assistant guides for a total of 1,060 guides                                                                               
                                                                                                                                
MR.  KUBAT said  BGCSB is  critical  to APHA's  industry and  the                                                               
guides  that  they  represent, the  wildlife  resource,  and  the                                                               
Alaska  public that  they serve  and help  protect. He  noted the                                                               
importance of getting  good candidates to serve on  the board and                                                               
APHA  is   very  appreciative  to  Messrs.   Flores,  Buist,  and                                                               
Bloomquist. APHA supports all three appointees.                                                                                 
                                                                                                                                
He summarized BGCSB is important  to guide business in Alaska, an                                                               
industry that  brought in $57.4 million  new-dollars into Alaska,                                                               
provided 1,890  jobs, and  donated meat  valued over  $2 million                                                                
most jobs and meat donations occurred in rural Alaska.                                                                          
                                                                                                                                
3:59:26 PM                                                                                                                    
SENATOR BISHOP asked Mr. Kubat  if he could provide the committee                                                               
with his written testimony.                                                                                                     
                                                                                                                                
MR. KUBAT answered yes.                                                                                                         
                                                                                                                                
CHAIR REVAK thanked Mr. Kubat for providing his testimony.                                                                      
                                                                                                                                
4:00:10 PM                                                                                                                    
CHAIR REVAK closed public testimony.                                                                                            
                                                                                                                                
4:00:28 PM                                                                                                                    
SENATOR  MICCICHE moved  that the  following named  appointees to                                                               
the Big  Game Commercial Services  Board be forwarded to  a joint                                                               
session of the legislature for consideration:                                                                                   
                                                                                                                                
Big Game Commercial Services Board                                                                                            
Michael Flores - Soldotna                                                                                                       
Peter Buist - Fairbanks                                                                                                         
Aaron Bloomquist - Copper Center                                                                                                
                                                                                                                                
4:00:48 PM                                                                                                                    
CHAIR REVAK announced seeing no objection, the motion passes.                                                                   
                                                                                                                                
He read the following statement:                                                                                                
                                                                                                                                
     In accordance  with AS 39.05.080,  a signature  on this                                                                    
     report  does  not  reflect  an intent  by  any  of  the                                                                    
     members to vote for or  against the confirmation of the                                                                    
     individual(s) during any further sessions.                                                                                 
                                                                                                                                
4:01:07 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
4:02:47 PM                                                                                                                    
CHAIR REVAK called the committee back to order.                                                                                 
                                                                                                                                
He announced  the consideration  of a  Governor Appointee  to the                                                               
Alaska Oil and Gas Conservation Commission (AOGCC).                                                                             
                                                                                                                                
He  said  Commissioner  Jeremy   Price  was  initially  appointed                                                               
October 7, 2019 to March 1,  2021; if reappointed, his term would                                                               
expire March 1, 2027.                                                                                                           
                                                                                                                                
CHAIR  REVAK explained  the mission  of AOGCC  is to  protect the                                                               
public  interest  in  exploration  and  development  of  Alaska's                                                               
valuable  oil,   gas,  and   geothermal  resources   through  the                                                               
application of conservation practices  designed to ensure greater                                                               
ultimate  recovery and  the protection  of health,  safety, fresh                                                               
groundwater, and the rights of  all owners to recover their share                                                               
of our resource.                                                                                                                
                                                                                                                                
He said since  Commissioner Price has been in  his position since                                                               
October 2019,  he asked him  to provide a brief  personal history                                                               
and spend  more time sharing his  experiences and accomplishments                                                               
since joining the commission and what he intends for the future.                                                                
                                                                                                                                
4:04:09 PM                                                                                                                    
JEREMY  PRICE,   Appointee,  Alaska  Oil  and   Gas  Conservation                                                               
Commission,  Department  of   Commerce,  Community  and  Economic                                                               
Development,  Anchorage,  Alaska,  said  in  October  2019,  [the                                                               
governor] appointed  him as the public  commissioner and chairman                                                               
of AOGCC.  He said the  past 15 months  [at AOGCC] have  been his                                                               
most enjoyable of his career.  He stated working with experienced                                                               
and  dedicated  professionals has  humbled  him.  He thanked  the                                                               
governor for his AOGCC reappointment.                                                                                           
                                                                                                                                
He said first  and foremost, he is an Alaskan,  born in Fairbanks                                                               
and raised on  a homestead in Salcha. He  detailed his background                                                               
as follows:                                                                                                                     
                                                                                                                                
   • Undergraduate degree in business from Utah State University                                                                
 • Master's degree in government from John Hopkins University                                                                   
   • Spent his career in public policy roles:                                                                                   
        o U.S. House of Representatives                                                                                         
        o U.S. Senate                                                                                                           
        o American Petroleum Institute                                                                                          
        o Americans for Prosperity                                                                                              
        o Alaska Governor's Office                                                                                              
                                                                                                                                
MR. PRICE  said he has spent  his career working on  solutions to                                                               
problems  facing Alaskans  and  has  always enjoyed  representing                                                               
Alaskans  and advocating  on their  behalf. However,  out of  any                                                               
issue he has  worked on, oil and gas has  been the most enjoyable                                                               
and the most  interesting and rewarding to him. Over  the past 15                                                               
months  he has  taken a  very  serious and  dedicated role  [with                                                               
AOGCC] and has tried to represent the public as best as he can.                                                                 
                                                                                                                                
MR. PRICE  stated during his short  time with AOGCC, he  has been                                                               
instrumental in  helping the commission  transition to  a digital                                                               
application  system.   Until  last  year,  the   commission  only                                                               
accepted  paper applications  for  permits  to drill,  geological                                                               
surveys  submissions,  well  data, well  workover  sundries,  and                                                               
underground  injection  applications. All  previous  applications                                                               
and  data submissions  were in  paper formusually   in duplicate.                                                               
However,  with COVID-19  pushing the  commission to  change to  a                                                               
safer   and  more   efficient  process,   the  commission   fully                                                               
transitioned to  digital which  increased AOGCC's  efficiency and                                                               
reduced operator cost.                                                                                                          
                                                                                                                                
He said the  longstanding goal of AOGCC is to  process permits to                                                               
drill  within  10  working  days.  Prior  to  the  conversion  to                                                               
electronic applications, the processing  percentage of permits to                                                               
drill within 10  days was around 64 percent. After  the switch to                                                               
electronic  applications,  the  commission increased  its  10-day                                                               
processing percentage to 80 percent.                                                                                            
                                                                                                                                
4:06:26 PM                                                                                                                    
MR.  PRICE noted  a  year ago,  AOGCC expected  one  of the  most                                                               
active drilling seasons in years.  Unfortunately, the oil and gas                                                               
industry  scaled  back  their  drilling  plans  due  to  economic                                                               
factors related  to COVID-19, resulting  in a 53-percent  drop in                                                               
drilling  permits in  2020 compared  to 2019.  Well interventions                                                               
only declined  by about 8  percent and a  big reason for  that is                                                               
Hilcorp staying  active throughout  the downturn  by consistently                                                               
and frequently repairing broken wells.                                                                                          
                                                                                                                                
He  explained other  big top-line  items that  AOGCC tracks,  oil                                                               
production  was down  in 2020  by about  4 percent  or 7  million                                                               
barrels  compared to  2019primarily  due  to production  cut over                                                               
the  summer   and  into  the  fall.   Regarding  enforcement  and                                                               
compliancedespite   COVID-19  challengesAOGCC   inspectors  still                                                               
managed to perform nearly 6,000  inspections and witnessed tests,                                                               
which  is slightly  above the  annual  average over  the last  10                                                               
years. However, AOGCC expects activity to stay flat in 2021.                                                                    
                                                                                                                                
MR. PRICE said regarding regulator  changes, AOGCC just finalized                                                               
a change  to its bonding  regulation that provides more  time for                                                               
operators  to  meet  the  new  bonding  amounts.  Thus  far,  two                                                               
operators have  sued over  those bonding  amounts that  went into                                                               
effect in  2019the  Department  of Law  is handling  those cases.                                                               
However, the AOGCC regulation provided  greater time for operator                                                               
compliance with the new bonding  amounts from four years to seven                                                               
years,  and the  commission  adjusted the  amounts  to provide  a                                                               
smoother transition as an operator increases its wells.                                                                         
                                                                                                                                
MR. PRICE  noted AOGCC is  trying to better understand  any risks                                                               
associated   with  production   wells  without   underground  and                                                               
mechanical  integrity testing  since  well  completion. AOGCC  is                                                               
working  with  operators  to   better  understand  the  available                                                               
mechanical integrity test data.  The commission's concern is with                                                               
well casing integrity due to  subsidence, erosion, and corrosion                                                                
especially  with older  gas-lift  wells. The  commission is  also                                                               
working  with operators  to proactively  address idle  wells shut                                                               
for long periods of time to avoid "orphan wells."                                                                               
                                                                                                                                
He  summarized  he is  profoundly  grateful  and humbled  by  his                                                               
opportunity  and  responsibility  with   AOGCC.  He  said  he  is                                                               
passionate about  Alaska, his desire  to serve Alaskans,  and the                                                               
rights of Alaskans to responsibility  develop their resources for                                                               
the benefit of the people.                                                                                                      
                                                                                                                                
4:09:20 PM                                                                                                                    
SENATOR KAWASAKI  thanked him for  serving on AOGCC for  the last                                                               
year.  He  asked  him  whether  he  filled  out  the  Boards  and                                                               
Commissions application to become a commissioner.                                                                               
                                                                                                                                
MR.  PRICE   answered  that  he   will  check  with   Boards  and                                                               
Commissions to verify if he missed filling out the form.                                                                        
                                                                                                                                
SENATOR KAWASAKI noted  all the other commissioners  filled out a                                                               
form via  Boards and Commissions.  He said the form  certifies an                                                               
applicant's information as true, accurate, and complete.                                                                        
                                                                                                                                
MR. PRICE  apologized for  his oversite and  will follow  up with                                                               
the committee.                                                                                                                  
                                                                                                                                
CHAIR REVAK  asked Mr. Price  to provide  the form to  his office                                                               
for distribution to committee members.                                                                                          
                                                                                                                                
4:10:42 PM                                                                                                                    
SENATOR  KAWASAKI noted  he  worked about  eight  years for  U.S.                                                               
Senator Murkowski  and Congressman  Young in Washington,  D.C.; a                                                               
year  at  the  [American  Petroleum  Institute],  and  now  seeks                                                               
[legislative confirmation] to  serve as the public  member on the                                                               
AOGCC.  He asked  him what  kind  of unique  experiences does  he                                                               
bring  to  the  jobother   than the  two  other  commissionersat                                                                
AOGCC.                                                                                                                          
                                                                                                                                
MR. PRICE  answered the  role of  the public  commissioner should                                                               
have an understandingby  statuteof  the  oil and gas industry. He                                                               
said  his experience  for working  on oil  and gas  issues is  in                                                               
terms of  public policy throughout  his time in  Washington, D.C.                                                               
He noted in Alaska he worked  on energy issues with Americans for                                                               
Prosperity  and  frequently  testified   in  support  of  various                                                               
decisions by  the federal  government when  lands were  opened to                                                               
resource developmentthe   [National Petroleum Reserve  in Alaska]                                                               
(NRA),  [Arctic  National  Wildlife   Refuge]  (ANWR),  or  other                                                               
things.                                                                                                                         
                                                                                                                                
He  stated  as far  as  his  experience  in oil  field  practices                                                               
technology,  it was  a new  level of  education he  had not  gone                                                               
through and  the learning curve  was steep. However,  AOGCC staff                                                               
fortunately  brought him  up to  speed and  the process  has been                                                               
exciting, but his experience has been  more oil and gas policy at                                                               
a higher level versus the oil field itself.                                                                                     
                                                                                                                                
4:12:20 PM                                                                                                                    
SENATOR KAWASAKI  noted he received  letters of support  from his                                                               
fellow AOGCC  commissionersboth  have a  lot of experience  on an                                                               
engineering leveland his presence on the commission is good.                                                                    
                                                                                                                                
He pointed  out he  served as  the deputy chief  of staff  at the                                                               
beginning of  the Dunleavy administration,  and he did  not serve                                                               
very long. He asked him why he stepped down.                                                                                    
                                                                                                                                
MR. PRICE  answered that he  stepped down strictly for  the AOGCC                                                               
opportunity. He  said he  is a  big fan of  the governor  and was                                                               
lucky and fortunate to spend some  time with him and in that role                                                               
working with agency commissioners.                                                                                              
                                                                                                                                
He noted prior  to the governor's election, he  was interested in                                                               
the AOGCC  role. The former  chief of staff for  the governorthe                                                                
individual who hired  himheld  the AOGCC position  many years ago                                                               
and that was something he talked to him about.                                                                                  
                                                                                                                                
MR. PRICE  said he did not  expect the AOGCC position  to open as                                                               
soon as it did, but if the  position had not opened, he would not                                                               
have left.                                                                                                                      
                                                                                                                                
4:13:50 PM                                                                                                                    
SENATOR BISHOP asked  if he could enlighten the  committee on the                                                               
legacy wellsabandoned wellsin the NPRA.                                                                                         
                                                                                                                                
MR. PRICE  replied AOGCC had  a good last season,  the commission                                                               
works mostly with  the Bureau of Land Management  (BLM) in taking                                                               
care  of NPRA  legacy  wells. AOGCC's  engineering staff  reviews                                                               
legacy well plans, and the  commission tries to ensure the proper                                                               
plugging  and  abandonment  of   the  wells.  AOGCC  can  provide                                                               
additional  information on  the wells  completed last  summer and                                                               
the amount  of many  wells. Every  season the  commission removes                                                               
approximately a half dozen wells off its list.                                                                                  
                                                                                                                                
He noted  there is federal  legislationpassed  by the  U.S. House                                                               
last  yearthat  might  be of  assistance. There  is big  interest                                                               
amongst states,  the Interstate Oil  and Gas  Compact Commission,                                                               
and Congress  in taking care  of "orphan wells" in  various parts                                                               
of the countrywhere  drilling started  in the mid-1800s, so there                                                               
are  a lot  of wells.  Pennsylvania has  thousands of  wells that                                                               
need plugging,  so there could  be a national effort  that Alaska                                                               
might be able to dovetail on.                                                                                                   
                                                                                                                                
SENATOR  BISHOP  thanked him  and  noted  he  would talk  to  the                                                               
chairman about a further update.                                                                                                
                                                                                                                                
4:15:43 PM                                                                                                                    
SENATOR MICCICHE asked  him if he has any  conflicts of interests                                                               
either personal, financial, or under the Ethics Act.                                                                            
                                                                                                                                
MR. PRICE answered no.                                                                                                          
                                                                                                                                
SENATOR MICCICHE asked if he  has been convicted of a misdemeanor                                                               
within the past 5 years or a felony within the past 10 years.                                                                   
                                                                                                                                
MR. PRICE answered he has  never been convicted of misdemeanor or                                                               
felony in his life.                                                                                                             
                                                                                                                                
SENATOR  MICCICHE noted  the other  form  [that Senator  Kawasaki                                                               
addressed] is  a certification of  accuracy and  completeness. He                                                               
asked him  if he certifies  the accuracy and completeness  of his                                                               
comments  as  well  as  the  resume  that  he  provided  for  the                                                               
committee today.                                                                                                                
                                                                                                                                
MR. PRICE answered yes.                                                                                                         
                                                                                                                                
4:16:59 PM                                                                                                                    
CHAIR REVAK noted the federal  administration's agenda related to                                                               
oil and  gas and  asked him  what challenges does  he see  in the                                                               
coming years.                                                                                                                   
                                                                                                                                
MR.  PRICE  answered  there  are a  number  of  challenges,  some                                                               
pertain more to DNR jurisdiction,  but AOGCC will feel its impact                                                               
via drilling  activity based  on how  policies shakeout  with the                                                               
federal  government  and the  courts.  Alaska  only has  so  much                                                               
control when so much is federally managed, so that is a concern.                                                                
                                                                                                                                
He  noted  hearing  talk  about  hydraulic  fracturing  bans  and                                                               
related  topics, but  he is  not concerned  with that.  The prior                                                               
administration tried a similar ban,  but a federal district judge                                                               
in Wyoming  struck that  down. However, there  are other  ways to                                                               
impede  development.  Locally,  AOGCC  wants to  be  vigilant  on                                                               
ensuring  operators operate  safely, protecting  the public,  and                                                               
protecting the environment.                                                                                                     
                                                                                                                                
MR. PRICE said  he will make sure AOGCC gets  as many inspections                                                               
as possible  of the safety valve  systemsthe  blowout preventers                                                                
and that  the industry does  its practices in a  safe mannerthat                                                                
is always  a priority. AOGCC will  try to be as  fair as possible                                                               
when  adjudicating decisions  in  a way  that  Alaskans want  the                                                               
commission to do it; that is where  he sees his role in trying to                                                               
represent  the public  in  the best  way he  knows  how when  the                                                               
commission faces a policy call.                                                                                                 
                                                                                                                                
He  noted  as oil  fields  decline  and  leases change  hands  to                                                               
smaller operators  with shallower  pockets, the  commission wants                                                               
to make sure  no one cuts corners, things continue  in a safe and                                                               
responsible manner, and plugged wells  no longer have an economic                                                               
use.                                                                                                                            
                                                                                                                                
MR.  PRICE said  there  are a  lot of  challenges  ahead and  the                                                               
aforementioned challenges are just a few of them.                                                                               
                                                                                                                                
CHAIR REVAK  stated he looked  forward to speaking with  him more                                                               
in the future.                                                                                                                  
                                                                                                                                
4:20:46 PM                                                                                                                    
CHAIR  REVAK opened  public testimony;  finding  none, he  closed                                                               
public testimony.                                                                                                               
                                                                                                                                
4:21:14 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
4:21:59 PM                                                                                                                    
CHAIR REVAK called the committee back to order.                                                                                 
                                                                                                                                
4:22:08 PM                                                                                                                    
SENATOR MICCICHE moved that the following named appointee to the                                                                
Alaska Oil and Gas Conservation Commission be forwarded to a                                                                    
joint session of the legislature for consideration:                                                                             
                                                                                                                                
Alaska Oil and Gas Conservation Commission                                                                                    
Jeremy Price - Anchorage                                                                                                        
                                                                                                                                
4:22:20 PM                                                                                                                    
CHAIR REVAK said without objection the motion passes.                                                                           
                                                                                                                                
He read the following statement:                                                                                                
                                                                                                                                
     In accordance  with AS 39.05.080,  a signature  on this                                                                    
     report  does  not  reflect  an intent  by  any  of  the                                                                    
     members to vote for or  against the confirmation of the                                                                    
     individual(s) during any further sessions.                                                                                 
                                                                                                                                
4:23:08 PM                                                                                                                    
There being no further business to come before the committee,                                                                   
Chair Revak adjourned the Senate Resources Standing Committee                                                                   
meeting at 4:23 p.m.                                                                                                            

Document Name Date/Time Subjects
SRES GOV Appointee BGCS Michael Flores.pdf SRES 2/17/2021 3:30:00 PM
SRES GOV Appointee BGCS Michael Flores
SRES GOV Appointee BGCS Peter Buist.pdf SRES 2/17/2021 3:30:00 PM
SRES GOV Appointee BGCS Peter Buist
SRES GOV Appointee BGCS Aaron Bloomquist.pdf SRES 2/17/2021 3:30:00 PM
SRES GOV Appointee BGCS Aaron Bloomquist
SRES GOV Appointee AOGCC Jeremy Price.pdf SRES 2/17/2021 3:30:00 PM
SRES GOV Appointee AOGCC Jeremy Price
SRES GOV Appointee Jeremy Price AOGCC Support Letters 2.16.21.pdf SRES 2/17/2021 3:30:00 PM
SRES GOV Appointee AOGCC Jeremy Price Letters of Support 2.16.21