Legislature(2023 - 2024)BUTROVICH 205

03/17/2023 03:30 PM Senate RESOURCES

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Audio Topic
03:30:58 PM Start
03:31:20 PM SB72
04:05:44 PM Presentation(s): Heavy Oil Recovery
04:54:42 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Heard & Held
-- Testimony <Invitation Only> --
Randy Bates, Director, Division of Water, (DEC)
Presentation: Heavy Oil Recovery by
Abhijit Dandekar, Ph.D, Professor and Chair,
Department of Petroleum Engineering, UAF
College of Engineering and Mines
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
                      ALASKA STATE LEGISLATURE                                                                                
                 SENATE RESOURCES STANDING COMMITTEE                                                                          
                           March 17, 2023                                                                                       
                              3:30 p.m.                                                                                         
 MEMBERS PRESENT                                                                                                              
 Senator Click Bishop, Co-Chair                                                                                                 
 Senator Cathy Giessel, Co-Chair                                                                                                
 Senator Bill Wielechowski, Vice Chair                                                                                          
 Senator Scott Kawasaki                                                                                                         
 Senator James Kaufman                                                                                                          
 Senator Forrest Dunbar                                                                                                         
 Senator Matt Claman                                                                                                            
 MEMBERS ABSENT                                                                                                               
 All members present                                                                                                            
 COMMITTEE CALENDAR                                                                                                           
 SENATE BILL NO. 72                                                                                                             
 "An Act relating to designation of state water as outstanding                                                                  
 national resource water; and providing for an effective date."                                                                 
      - HEARD & HELD                                                                                                            
 PRESENTATION(S):  HEAVY OIL RECOVERY                                                                                           
      - HEARD                                                                                                                   
 PREVIOUS COMMITTEE ACTION                                                                                                    
 BILL: SB  72                                                                                                                 
 SHORT TITLE: NATL. RES. WATER NOMINATION/DESIGNATION                                                                           
 SPONSOR(s): SENATOR(s) GIESSEL                                                                                                 
 02/17/23       (S)       READ THE FIRST TIME - REFERRALS                                                                       
 02/17/23       (S)       RES                                                                                                   
 03/17/23       (S)       RES AT 3:30 PM BUTROVICH 205                                                                          
 WITNESS REGISTER                                                                                                             
 JULIA O'CONNOR, Staff                                                                                                          
 Senator Cathy Giessel                                                                                                          
 Alaska State Legislature                                                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented the  sectional analysis for  SB 72                                                             
on behalf of the sponsor.                                                                                                       
RANDY BATES, Director                                                                                                           
Division of Water                                                                                                               
Department of Environmental Conservation                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Stated support  for SB 72  on behalf  of the                                                             
LEILA KIMBRELL, Executive Director                                                                                              
Resource Development Council for Alaska, Inc.                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Provided invited testimony on SB 72.                                                                      
DR. ABHIJIT DANDEKAR, Professor and Chair                                                                                       
Department of Petroleum Engineering                                                                                             
UAF College of Engineering and Mines (CEM)                                                                                      
University of Alaska Fairbanks                                                                                                  
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Delivered a presentation titled,  "Heavy Oil                                                             
Recovery Research at the University of Alaska Fairbanks."                                                                       
ACTION NARRATIVE                                                                                                              
3:30:58 PM                                                                                                                  
CO-CHAIR  CLICK  BISHOP  called  the  Senate  Resources  Standing                                                             
Committee meeting  to order at 3:30  p.m. Present at the  call to                                                               
order were  Senators Dunbar, Kawasaki, Co-Chair  Giessel, and Co-                                                               
Chair   Bishop.   Senators   Claman  and   Wielechowski   arrived                                                               
          SB  72-NATL. RES. WATER NOMINATION/DESIGNATION                                                                    
3:31:20 PM                                                                                                                    
CO-CHAIR BISHOP  announced the consideration  of SENATE  BILL NO.                                                               
72 "An Act relating to  designation of state water as outstanding                                                               
national resource water; and providing for an effective date."                                                                  
3:31:32 PM                                                                                                                    
SENATOR CATHY  GIESSEL, District E,  sponsor of SB  72, explained                                                               
that  the   bill  proposes  a  formal   process  for  designating                                                               
waterbodies  as  Outstanding  National  Resource  Waters  (ONRW).                                                               
These are  commonly known as Tier  III waters, which are  part of                                                               
 the Clean Water Act  that was enacted  in 1972. This federal  law                                                              
 mandated that states implement  water quality standards by  1983.                                                              
 These standards had  to include  designated use  classifications,                                                              
 numerical or  narrative  water  quality criteria,  and  an  anti-                                                              
 degradation policy.  At a  minimum, the  anti-degradation  policy                                                              
 had to establish  minimums for management of  water quality in  a                                                              
 tier system.                                                                                                                   
 3:32:51 PM                                                                                                                   
 SENATOR CLAMAN joined the committee.                                                                                           
 3:33:43 PM                                                                                                                   
 SENATOR GIESSEL spoke to the document in the bill  packet titled,                                                              
 "Water Quality Tier  3 Water Nomination  and Designation  Process                                                              
 in Alaska." Page  4 describes the three  tiers of water  quality.                                                              
 Tier I refers to  the existing quality  of the water, also  known                                                              
 as "the floor."  Tier I  waters do not  meet one or  more of  the                                                              
 water quality standards  due to  things like docks,  agricultural                                                              
 runoff, and boat traffic. Tier  II waters are high quality.  They                                                              
 comprise the  majority  of waters  in  Alaska  and are  safe  for                                                              
 fishing and swimming.  Tier III  waters are Outstanding  National                                                              
 Resource Waters (ONRW);  they deserve  special protections.  They                                                              
 receive the highest protection under the anti-degradation  policy                                                              
 of the Clean Water Act.                                                                                                        
 3:35:46 PM                                                                                                                   
 SENATOR   GIESSEL   read   40   Code   of   Federal   Regulations                                                              
      "WHERE HIGH  QUALITY WATERS  CONSTITUTE AN  OUTSTANDING                                                                   
      NATIONAL RESOURCE, SUCH AS  WATERS OF THE NATIONAL  AND                                                                   
      STATE  PARKS  AND  WILDLIFE   REFUGES  AND  WATERS   OF                                                                   
      EXCEPTIONAL RECREATIONAL  OR  ECOLOGICAL  SIGNIFICANCE,                                                                   
      THAT WATER QUALITY SHALL BE MAINTAINED AND PROTECTED."                                                                    
 She said  Tier III  waters  have no  development along  side,  no                                                              
 pollution, and no degradation is allowed.                                                                                      
 3:36:38 PM                                                                                                                   
 SENATOR  GIESSEL  spoke  to   the  Department  of   Environmental                                                              
 Conservation (DEC)  policy and procedure  document that  provides                                                              
 guidance relating to the  nomination and designation of Tier  III                                                              
 waters. Nominations are  submitted to DEC  and the policy  states                                                              
 that the  nominations will  go to  the legislature.  Implementing                                                              
 this policy is at the  discretion of the DEC commissioner,  which                                                              
 means the policy could change.  The bill addresses this issue  by                                                              
codifying  that the  designation of  Tier  III waters  is in  the                                                               
hands of the legislature.                                                                                                       
SENATOR  GIESSEL  displayed  a  state  map  that  identifies  the                                                               
locations of  five waterbodies that  have been nominated  as Tier                                                               
III  and submitted  to DEC.  She noted  that copies  of the  five                                                               
letters  requesting  Tier  III   designation  were  in  the  bill                                                               
packets.  She   restated  that  the  bill   proposes  that  these                                                               
nominating letters be submitted to  the legislature to review and                                                               
determine whether the designation is appropriate.                                                                               
3:39:26 PM                                                                                                                    
SENATOR GIESSEL  cited the  Constitution of  the State  of Alaska                                                               
that clarifies that appropriation of  resources, as assets of the                                                               
state, is the purview of the legislature. She read:                                                                             
     "THE  LEGISLATURE SHALL  PROVIDE  FOR THE  UTILIZATION,                                                                    
     DEVELOPMENT, AND CONSERVATION  OF ALL-NATURAL RESOURCES                                                                    
     BELONGING TO THE STATE, INCLUDING  LAND AND WATERS, FOR                                                                    
     THE MAXIMUM BENEFIT OF ITS PEOPLE."                                                                                        
     ALASKA CONSTITUTION, ARTICLE 8, SECTION 2                                                                                  
     "ALL  SURFACE AND  SUBSURFACE  WATERS  RESERVED TO  THE                                                                    
     PEOPLE  FOR COMMON  USE, EXCEPT  MINERAL AND  MEDICINAL                                                                    
     WATERS,  ARE  SUBJECT  TO  APPROPRIATION.  PRIORITY  OF                                                                    
     APPROPRIATION  SHALL  GIVE   PRIOR  RIGHT.  EXCEPT  FOR                                                                    
     PUBLIC WATER  SUPPLY, AN  APPROPRIATION OF  WATER SHALL                                                                    
     BE   LIMITED  TO   STATED  PURPOSES   AND  SUBJECT   TO                                                                    
     PREFERENCES  AMONG   BENEFICIAL  USES,   CONCURRENT  OR                                                                    
     OTHERWISE,  AS PRESCRIBED  BY LAW,  AND TO  THE GENERAL                                                                    
     RESERVATION OF FISH AND WILDLIFE."                                                                                         
     ALASKA CONSTITUTION, ARTICLE 8, SECTION 13                                                                                 
SENATOR GIESSEL stated that the  Alaska Supreme Court underscored                                                               
this authority in  Mallott v. Stand for Salmon.  The question was                                                               
whether an  initiative could be  used to designate a  state water                                                               
as Tier  III. The  court ruled that  an initiative  designating a                                                               
Tier III  water would  override the  legislature's power  to make                                                               
decisions about  the allocation of  state assets. The  court went                                                               
on to say  that the legislature has  the ultimate decision-making                                                               
authority to use specific public assets for specific purposes.                                                                  
3:40:54 PM                                                                                                                    
SENATOR WIELECHOWSKI joined the committee.                                                                                      
 3:41:25 PM                                                                                                                   
 SENATOR GIESSEL spoke to the following summary of what SB 72                                                                   
 seeks to do:                                                                                                                   
       CODIFIES    ALASKA    DEPARTMENT    OF    ENVIRONMENTAL                                                                  
      CONSERVATION'S CURRENT TIER III POLICY.                                                                                   
      COULD EXPEDITE THE CURRENTLY NOMINATED WATERBODIES.                                                                       
 3:42:20 PM                                                                                                                   
 JULIA O'CONNOR, Staff, Senator Cathy Giessel, Alaska State                                                                     
 Legislature, Juneau, Alaska, presented the sectional analysis                                                                  
 for SB 72 on behalf of the sponsor:                                                                                            
         Section 1: Amends AS 46.03 by adding a new section                                                                     
        that: Establishes  AS 46.03.085(a). Through  statute,                                                                   
        the legislature  may designate water of the state  as                                                                   
        an outstanding  national resource water.  Establishes                                                                   
        AS 46.03.085(b).  Unless the body  of water has  been                                                                   
        designated as an outstanding national  resource water                                                                   
        can it be managed like so.                                                                                              
      Section 2: Applies for an immediate effective date.                                                                       
 3:43:26 PM                                                                                                                   
 RANDY  BATES,   Director,  Division  of   Water,  Department   of                                                              
 Environmental Conservation,  Juneau, Alaska,  stated support  for                                                              
 SB 72  on behalf of  the department.  He spoke  to the  following                                                              
 [Original punctuation provided.]                                                                                               
        Outstanding Natural Resource Waters, ONRWs or Tier 3                                                                    
        waters,  are defined  as  waters of  "of  exceptional                                                                   
        recreational or ecological significance"  which shall                                                                   
        be  "maintained and  protected" from  degradation  in                                                                   
           A Tier 3 designation of a waterbody bestows the                                                                      
        highest level  of water quality protection under  the                                                                   
        federal Clean  Water Act and  restricts a wide  range                                                                   
        of activities on these waters as well  as on adjacent                                                                   
     Since 1983, the Clean Water Act has required that each                                                                     
        state  establish  an  ONRW  or  Tier  3  designation                                                                    
     Alaska has a process in place, formalized in November                                                                      
        2018  in  the  form  of  a   Department  Policy  and                                                                    
        Procedure that  essentially reads  the  same as  the                                                                    
        bill   "The  current process  for nominating  Tier 3                                                                    
        waters  involves   proposing  the   introduction  of                                                                    
        legislation  to  make  the   designation.  Any  such                                                                    
        request may  go to  a legislative  representative or                                                                    
        committee for  consideration for  introduction as  a                                                                    
        legislative  bill.  Typically,   a  request   to  an                                                                    
        individual legislator would go to a legislator whose                                                                    
        district contains the proposed Tier 3 water."                                                                           
     Because the designation of a Tier 3 water carries with                                                                     
        it the requirement to maintain and protect the water                                                                    
        quality from degradation, the  designation restricts                                                                    
        a  wide  range  of  activities  on  the  waters  and                                                                    
        adjacent areas, to include                                                                                              
        • road and building construction                                                                                        
        • recreational activities                                                                                               
        • seafood processing                                                                                                    
        • municipal wastewater discharge and septic systems                                                                     
        • storm water discharge                                                                                                 
        • landfills                                                                                                             
        • gravel quarries                                                                                                       
        • large-scale resource development projects                                                                             
        • and or  any other  activity that might  affect the                                                                    
          designated water                                                                                                      
     Designation as a Tier 3 waterbody requires that the                                                                        
        water quality on  the designated body  be maintained                                                                    
        and protected for the reasons designated and for the                                                                    
        water quality at the time of designation.                                                                               
     What that practically means is that no new or                                                                              
        increased discharges to the river or its tributaries                                                                    
        would be permitted if the discharges would result in                                                                    
        lowering or degrading the water quality.                                                                                
     That has potential long-term if not permanent adjacent                                                                     
        and  upstream   land-use  consequences      no   new                                                                    
        discharge contributions that lower  or degrade water                                                                    
        quality,  whether  those new  discharges  meet  water                                                                   
        quality standards or not.                                                                                               
        That would potentially eliminate road improvements in                                                                   
        the  area,  increased  or  changed   discharges  from                                                                   
        municipal wastewater treatment  facilities, increased                                                                   
        recreational  opportunities, seafood  processing,  or                                                                   
         anything else that might affect the water quality.                                                                     
          Such widespread impacts effectively make a Tier 3                                                                     
        designation a  de facto land and water use  decision,                                                                   
        one  that may be  based on  designation criteria  and                                                                   
        use   restriction  well   outside  the   Department's                                                                   
        expertise and authority.                                                                                                
           The Department is supportive of this bill that                                                                       
        formalizes that  the designation of Tier 3 waters  by                                                                   
        the  legislature  through  statute  for   three  very                                                                   
        important reasons:                                                                                                      
        1. The  legislative  process  provides  a  full   and                                                                   
           public process  engaging  all the  interested  and                                                                   
           affected  parties,  including  those  communities,                                                                   
           residents,      users,       developers,       and                                                                   
           conservationists, and  also  those  agencies  with                                                                   
           oversight responsibilities for the area lands  and                                                                   
        2. The  legislative   process  allows   for  a   full                                                                   
           discussion on the  consequences, restrictions,  or                                                                   
           impact   to   other   activities   and   potential                                                                   
           activities by  the designation,  including  future                                                                   
           and foreseeable activities; and                                                                                      
        3. This legislative  body and process  is the  proper                                                                   
           forum   to   establish   land   and   water    use                                                                   
           designations, and  we are pleased  to return  that                                                                   
           power to this body in this instance.                                                                                 
         Providing for the designation of a Tier 3 water as                                                                     
         structured in the bill  will bring certainty to  the                                                                   
         process and  would codify  in  statute a  consistent                                                                   
         practice for how lands  and waters across the  state                                                                   
         would be designated for conservation  by legislative                                                                   
         approval rather  than  by division,  department,  or                                                                   
         judicial discretion.                                                                                                   
3:48:52 PM                                                                                                                    
SENATOR DUNBAR  asked whether any  other states use  a regulatory                                                               
MR.  BATES said  yes; it's  done  by regulation,  by statute,  by                                                               
commission,  or by  a commissioner.  He  noted that  Idaho has  a                                                               
legislative process that's similar to what SB 72 proposes.                                                                      
SENATOR DUNBAR referred to the  slide that shows the locations of                                                               
the five waters that have been  nominated as Tier III waters. One                                                               
of the  nominations is  the Chilkat River  near Haines.  He asked                                                               
whether the  legislature could  act on its  own to  designate the                                                               
Chilkat River as a Tier III water.                                                                                              
MR. BATES  said yes; DEC's  current policy directs  proponents to                                                               
the   legislature.  If   the  legislature   were  to   make  that                                                               
designation, DEC would manage that waterbody accordingly.                                                                       
SENATOR DUNBAR clarified  the question. He asked, if  DEC did not                                                               
have the  current policy in  regulation, would  the Environmental                                                               
Protection  Agency  (EPA)  recognize the  legislature's  inherent                                                               
power to designate a waterbody as Tier III.                                                                                     
MR.  BATES  said  he  would  follow  up  in  writing  after  he'd                                                               
conferred with  the Department  of Law, but  his belief  was that                                                               
the answer is yes.                                                                                                              
SENATOR DUNBAR  articulated his  conclusion that  SB 72  does not                                                               
give the legislature new power  to designate Tier III waters; the                                                               
bill restricts  the department  in the  future from  changing the                                                               
regulations and eliminating the  legislature from the process. He                                                               
opined that  this probably  would reduce  the likelihood  of Tier                                                               
III designations in the future.                                                                                                 
MR. BATES  said it would only  reduce the likelihood of  Tier III                                                               
designations  in  the   future  if  it  were  the   will  of  the                                                               
legislature to do so.                                                                                                           
SENATOR   DUNBAR  clarified   that   SB  72   ensures  that   the                                                               
designations would be solely up to the legislature.                                                                             
MR. BATES agreed.                                                                                                               
3:52:41 PM                                                                                                                    
CO-CHAIR BISHOP asked whether the  onus to prove that a waterbody                                                               
should be designated as Tier III  was on the individual or entity                                                               
 that submitted the nomination to DEC. But if SB 72 were  to pass,                                                              
 the onus of proof would reside with the legislature.                                                                           
 MR. BATES  replied  that  the onus  of  proof is  always  on  the                                                              
 proponent.  His expectation  is  that  anybody  who  nominates  a                                                              
 waterbody as Tier III would be asked to provide proof.                                                                         
 3:53:41 PM                                                                                                                   
 SENATOR  CLAMAN   offered  his   understanding  that   the   five                                                              
 waterbodies  depicted on  the  map  the  sponsor  presented  were                                                              
 nominations that were submitted to DEC.                                                                                        
 MR. BATES  agreed. He explained  that when  each application  was                                                              
 submitted,  the  department  reached  out  to  the  proponent  to                                                              
 articulate the process going forward.                                                                                          
 SENATOR CLAMAN noted that  one of the applications was  submitted                                                              
 in 2009.  He  asked  whether  any of  the  nominations  had  been                                                              
 MR. BATES answered no,  but each proponent received  instructions                                                              
 on  the  process  to  pursue  the  designation  of  a   Tier  III                                                              
 waterbody.  The instructions  were  based  on  DEC's  policy  and                                                              
 procedure document relating to the nomination and  designation of                                                              
 Tier III waters.                                                                                                               
 SENATOR CLAMAN  asked  whether  the policy  became  effective  in                                                              
 MR. BATES confirmed the effective date was November 21, 2018.                                                                  
 SENATOR CLAMAN summarized that the applications are  submitted to                                                              
 DEC but the  department's policy and procedure  is to notify  the                                                              
 applicant that they must go  to the legislature to designate  the                                                              
 MR.  BATES  confirmed  that  the  department  would   direct  the                                                              
 proponent to  the legislature  and suggest  they  seek help  from                                                              
 their legislator in the House and Senate.                                                                                      
 3:55:15 PM                                                                                                                   
 SENATOR CLAMAN observed that DEC's  policy is to serve as a  pass                                                              
 MR.  BATES  confirmed  that  the  department  would   direct  the                                                              
 proponent to the legislature to evaluate the nomination.                                                                       
CO-CHAIR BISHOP observed  that the hurdle for  proponents was the                                                               
cost  to do  the science  necessary to  prove to  the legislature                                                               
that the nomination was valid.                                                                                                  
MR.  BATES  said  he  would  provide a  copy  of  the  letter  he                                                               
submitted to the legislature last  year about the cost to propose                                                               
a waterbody  be designated  as Tier  III. He  said the  notion is                                                               
that  the   proponent  should  identify  the   reasons  that  the                                                               
department should be managing that waterbody  as a Tier III so it                                                               
can ensure there is no degradation to the water quality.                                                                        
The  point  is  if  there  is  a  special  waterbody  that  needs                                                               
increased coverage,  there should  be effort  put in  to identify                                                               
what the  existing water quality  criteria are so that  the state                                                               
agency  vested  with  the  protection of  human  health  and  the                                                               
environment  and the  implementation of  water quality  standards                                                               
knows exactly how  and why it is managing that  waterbody as Tier                                                               
3:57:10 PM                                                                                                                    
SENATOR   WIELECHOWSKI  offered   his   understanding  that   the                                                               
legislature  delegated  to DEC  the  authority  to develop  clean                                                               
water  quality standards,  and that  anti-degradation is  part of                                                               
that authority.                                                                                                                 
MR. BATES agreed;  as part of the delegated  authority of primacy                                                               
under  the  Clean  Water Act,  DEC  identified  designated  uses,                                                               
established   water   quality   standards,  and   developed   and                                                               
implemented  an  anti-degradation policy.  That  anti-degradation                                                               
policy includes a process for Tier  I waters, Tier II waters, and                                                               
Tier III waters.                                                                                                                
SENATOR WIELECHOWSKI observed that  the philosophical question is                                                               
whether  waterbody  designations should  be  based  on an  agency                                                               
review  of the  science and  what  it shows  to be  best for  the                                                               
waterbody or a  political decision. He further  observed that the                                                               
department  seems to  be  advocating  for waterbody  designations                                                               
that rely on political decisions.                                                                                               
MR.   BATES  posited   that  science   would  prevail   when  the                                                               
legislature is presented with the facts.                                                                                        
CO-CHAIR BISHOP turned to invited testimony.                                                                                    
3:59:58 PM                                                                                                                    
 LEILA KIMBRELL, Executive Director, Resource Development Council                                                               
 for Alaska, Inc., Anchorage, Alaska, provided invited testimony                                                                
 on SB 72, paraphrasing the following prepared testimony:                                                                       
 [Original punctuation provided.]                                                                                               
      Briefly, for 47 years, RDC has advocated for  a strong,                                                                   
      diversified private sector in Alaska and to  expand the                                                                   
      state's   economic   base   through   the   responsible                                                                   
      development  of  our  natural   resources.  We  are   a                                                                   
      statewide trade  association comprised  of  individuals                                                                   
      and   companies   from   Alaska's   fishing,   tourism,                                                                   
      forestry, mining,  and oil  and gas  industries.   This                                                                   
      includes  private   companies,   labor   organizations,                                                                   
      Alaska  Native   corporations,   as   well   as   local                                                                   
      governments  and  non-profit   organizations.       RDC                                                                   
      collaborates with  our partners  and policy  makers  to                                                                   
      ensure Alaska continues  to have  a strong and  diverse                                                                   
      economy  by  growing  Alaska  through  the  responsible                                                                   
      development of our natural resources.                                                                                     
      Thank  you  for  the  opportunity  to  provide  invited                                                                   
      testimony on SB 72, an act relating to  the designation                                                                   
      of state water as outstanding national resource  water,                                                                   
      also commonly  referred to  as "Tier  3"  waters.   RDC                                                                   
      speaks in  support of  SB 72,  which  provides a  clean                                                                   
      solution to complying with  EPA requirements to  codify                                                                   
      State agency policy  related to Tier  3 waters for  the                                                                   
      following reasons.                                                                                                        
      EPA, under our nation's  Clean Water Act, requires  all                                                                   
      states to  have  a policy  against the  degradation  of                                                                   
      waters  and  to  maintain  associated  procedures  that                                                                   
      prohibit the  lowering  of  water quality  under  three                                                                   
      categories of water protection,  the most stringent  of                                                                   
      which is Tier 3.                                                                                                          
      Tier 3  designation  is  for  an  Outstanding  National                                                                   
      Resource  Water,   which   is   described   as   having                                                                   
      exceptional recreational  or  ecological  significance.                                                                   
      Tier 3 waters  are required to  be maintained to  their                                                                   
      baseline conditions,  and effectively  cannot have  any                                                                   
      new or expanded activities  that have the potential  to                                                                   
      change the water quality in any way.  This  would apply                                                                 
      even in situations where  the activity meets the  water                                                                 
      standards and  fully  protects  fish  and  other  water                                                                 
     uses,  especially  the  highly regulated  industries  I                                                                  
     (note/citation: See 18 AAC 70.016(d)).                                                                                     
     To be clear:  the Clean Water Act,  combined with other                                                                    
     federal  and  state  policy extensively  regulates  how                                                                    
     waters are managed and impacted by all user groups.                                                                        
     Stringent  water  quality  standards  are  established,                                                                    
     baseline  study  is  done, extensive  monitoring  takes                                                                    
     place, and  action is taken  to further  protect waters                                                                    
     when  needed.    This   management  already  exists  in                                                                    
     A  Tier  3  designation  goes  much  further  than  our                                                                    
     already  exemplary water  quality protections,  without                                                                    
     any  added benefit  to the  environment but  with added                                                                    
     threats   to    economic   and    community   activity.                                                                    
     Specifically, any  activity that  has the  potential to                                                                    
     degrade a  designated Tier 2 water  and its tributaries                                                                    
     could be  prohibited.  A  designation would  impact the                                                                    
     users   such  as   motorized  vessels   of  any   kind,                                                                    
     residential and  commercial septic  systems, stormwater                                                                    
     permits   associated   with  road   building,   seafood                                                                    
     processors, timber harvesting, and much more.                                                                              
     Tier 3 water designations  have the potential to become                                                                    
     a  tool  for  anti-development interests  to  block  or                                                                    
     delay resource  development projects.  That  is evident                                                                    
     in  the five  nominations before  DEC currently,  which                                                                    
     specify  mining, oil  and gas,  federal land  planning,                                                                    
     and  Alaska  Native  Corporation  lands  selections  as                                                                    
     threats to waterbodies.                                                                                                    
     Further  problematic,   a  Tier  3   water  designation                                                                    
     applies "to  a Tier 3  water or  tributary to a  Tier 3                                                                    
     water."    This  expansive designation  means  that  it                                                                    
     would  prohibit  development  in entire  watersheds  of                                                                    
     Alaska    essentially  comparable  to establishing  de-                                                                    
     facto  Wilderness, akin  to a  national  park or  other                                                                    
     expansive  conservation  area.   For  this  reason,  we                                                                    
     believe  the  authority to  designate  a  Tier 3  water                                                                    
     should  therefore lie  solely  with representatives  of                                                                    
     Alaskans - the Alaska  Legislature, similar to Congress                                                                    
     having the  authority to  designative federal  areas as                                                                    
     national parks or Wilderness.                                                                                              
     Because of  the watershed-wide  land and  water impacts                                                                    
     of a  Tier 3 designation,  it is no different  than the                                                                    
      impacts of  the  12  million  acres  of  legislatively-                                                                   
      designated   State   refuges,   sanctuaries,   critical                                                                   
      habitat  areas,  ranges,   special  management   areas,                                                                   
      forests, parks,  recreation areas,  marine  sanctuaries                                                                   
      etc.    All  of  these  designations are  made  by  the                                                                   
      Legislature.    Just  as  the  Legislature  made  those                                                                   
      designation, so too should the Legislature make  Tier 3                                                                   
      designations and not the EPA.                                                                                             
      To do  so,  the  State  needs a  policy  and  statutory                                                                   
      authority  in   place.    The   Alaska  Department   of                                                                   
      Environmental Conservation existing policy agrees  that                                                                   
      Tier 3 designations should be made by  the Legislature.                                                                   
      Former  DEC   Commissioner   Larry   Hartig,   in   the                                                                   
      Walker/Mallott Administration,  submitted a  letter  to                                                                   
      the Senate in November 2018:                                                                                              
      "DEC recently updated its  internal guidance to  advise                                                                   
      DEC employees  who  might  receive a  nomination  of  a                                                                   
      water for Tier 3 designation  on how to deal with  that                                                                   
      nomination. This  guidance  provides that  the  current                                                                   
      process  for   nominating   Tier  3   waters   involves                                                                   
      proposing the introduction of  legislation to make  the                                                                   
      designation. Any such  requests would need  to go to  a                                                                   
      member  or   committee  of   the   Legislature  to   be                                                                   
      considered for  introduction.  DEC  has  reviewed  this                                                                   
      guidance with EPA and  they confirmed what we have  put                                                                   
      in place  satisfies Clean  Water  Act requirements  for                                                                   
      antidegradation implementation."                                                                                          
      In short, SB 72 is a housekeeping measure  to implement                                                                   
      and codify  existing DEC policy.  Enactment would  meet                                                                   
      EPA's  Tier  3  designation  process  requirement   and                                                                   
      provide process certainty to the public.                                                                                  
      We  believe  that,  given  the  significant,   adverse,                                                                   
      watershed-wide land  and water use  impacts and  socio-                                                                   
      economic impacts of Tier 3 designation, a Tier  3 water                                                                   
      should  be   designated   ONLY  by   a  vote   of   the                                                                   
      Legislature.  This  is   consistent  with  the   Alaska                                                                   
      Constitution, the  existing process  for setting  aside                                                                   
      areas of  State land  and water  from development,  and                                                                   
      existing DEC policy.   For these  reasons, we urge  you                                                                   
      to move  this bill  from committee  and  support it  to                                                                   
     Thank you for the opportunity to testify today in                                                                          
     support of SB 72.                                                                                                          
4:04:52 PM                                                                                                                    
CO-CHAIR BISHOP  asked her  to send her  testimony to  his office                                                               
and he would distribute it to the members.                                                                                      
CO-CHAIR BISHOP held SB 72 in committee.                                                                                        
4:05:09 PM                                                                                                                    
At ease                                                                                                                         
^PRESENTATION(S):  HEAVY OIL RECOVERY                                                                                           
               PRESENTATION(S):  HEAVY OIL RECOVERY                                                                         
4:05:44 PM                                                                                                                    
CO-CHAIR  GIESSEL   reconvened  the   meeting  and   announced  a                                                               
presentation  by  Abhijit  Dandekar,  Ph.D.  titled,  "Heavy  Oil                                                               
Recovery Research at the University of Alaska Fairbanks."                                                                       
4:06:17 PM                                                                                                                    
DR.  ABHIJIT   DANDEKAR,  Professor  and  Chair,   Department  of                                                               
Petroleum  Engineering,  UAF  College of  Engineering  and  Mines                                                               
(CEM), University of Alaska  Fairbanks, Fairbanks, Alaska, stated                                                               
his  intention   to  provide   an  update   on  the   $5  million                                                               
appropriation  for  FY23  and  FY24 for  research  on  heavy  oil                                                               
DR.  DANDEKAR  displayed the  outline  for  the presentation  and                                                               
stated  that he  would begin  by  discussing the  vast heavy  oil                                                               
resources  in   Alaska  and  the  difficulties   associated  with                                                               
producing  that oil.  This was  the reason  for the  research. He                                                               
reported  that research  over the  last five  years has  provided                                                               
sufficient proof that polymer enhanced  oil recovery (EOR) in the                                                               
Alaskan  Arctic works  for  viscous oils.  These  oils are  water                                                               
floodable meaning that they can  be recovered by injecting water.                                                               
He  said   this  was  the  primary   motivation  for  ambitiously                                                               
targeting Ugnu.                                                                                                                 
4:08:11 PM                                                                                                                    
DR.  DANDEKAR turned  to  slide 3,  Alaska's  abundant heavy  oil                                                               
resources, and spoke to the following points:                                                                                   
     (1) The left most picture on this slide shows the                                                                          
           three main units on ANS with Viscous and Heavy                                                                       
           oils resources sandwiched between the Kuparuk  and                                                                   
           the Permafrost.                                                                                                      
          (2) The depth vs. oil viscosity plot on the right                                                                     
           most side  gives  us  an idea  of  the  increasing                                                                   
           viscosity  with   decreasing   depth   and   three                                                                   
           development phases.                                                                                                  
         (3) Rather than lumping everything in one heavy oil                                                                    
           category   we   use   a   home   grown   term   to                                                                   
           differentiate   between   viscous   oils    (water                                                                   
           floodable) and heavy  oil with viscosities  upward                                                                   
           of 2000 cP.                                                                                                          
        (4) Viscous and heavy oil represent about a third of                                                                    
           known North Slope OOIP.                                                                                              
        (5) Cumulative production of heavy and viscous oil is                                                                   
           about  1%  of  OOIP  slope  wide   and  currently,                                                                   
           there's hardly any production from Ugnu.                                                                             
 4:11:38 PM                                                                                                                   
 DR.  DANDEKAR spoke  to  the  following  points  to  explain  why                                                              
 research on the recovery of heavy oil is important:                                                                            
        • Strategic importance to the State of Alaska and the                                                                   
      • Technology development "in Alaska for Alaska"                                                                           
             • Resource too large to ignore, and within                                                                         
         established and permitted infrastructure                                                                               
         • Prudhoe Bay type diluent crude is still available                                                                    
         for heavy oil transport through TAPS. Willow has                                                                       
         fairly light oil that may be used for this purpose                                                                     
         in the future.                                                                                                         
 DR. DANDEKAR  directed attention to  the samples  of viscous  and                                                              
 heavy oil pictured on the  next slide. The Schrader Bluff  viscus                                                              
 oil moves when the test tubes  are tilted but the Ugnu heavy  oil                                                              
 shows  a  very  slow  or  sluggish  movement.  Reasons  for  high                                                              
 viscosity are  close  proximity  to the  permafrost,  fairly  low                                                              
 reservoir  pressures   and  the  lack   of  lighter   hydrocarbon                                                              
 components. He noted that  in Bakersfield California it's  common                                                              
 to see steam  injected to produce  heavy oil,  but in Alaska  the                                                              
 presence of permafrost precludes  this typical thermal method  of                                                              
4:15:03 PM                                                                                                                    
 CO-CHAIR BISHOP  asked if  the permafrost  was about  one-quarter                                                              
 mile or 2,500 feet deep.                                                                                                       
DR. DANDEKAR replied that it varies  but it's from 2,500 to 3,000                                                               
feet  deep.  He added  that  the  depth  for the  resources  he's                                                               
discussing is  3,000 feet plus  so there's some  spacing. Another                                                               
point of reference  is the reservoir temperature,  which for both                                                               
viscous oil and heavy oil is about 75 degrees Fahrenheit.                                                                       
4:16:17 PM                                                                                                                    
DR.  DANDEKAR  advanced  to  the illustration  on  slide  6  that                                                               
illustrates sweep  efficiency or  mobility ratio. The  concept is                                                               
that water  or gas  injected into immobile  heavy oil  will cause                                                               
movement.  The  example  in  the  top  figure  shows  that  water                                                               
injected in the  oil will "finger" through the  thick oil without                                                               
much  recovery. If  water soluble  polymer powder  is mixed  with                                                               
water, the thicker polymer solution  is 30-40 times the viscosity                                                               
of 1  cP of  water. He  said it's important  to know  the optimum                                                               
concentration of the polymer so  there are no injectivity issues,                                                               
but enough research has been done to show that this does work.                                                                  
4:19:33 PM                                                                                                                    
DR. DANDEKAR  turned to slide  7 to discuss other  concerns associated                                                          
with  the  recovery of  heavy  oil.  The  first  is known  as  polymer                                                          
retention. He  said this  is a significant  parameter that  may impact                                                          
the effectiveness of  a polymer flood; that portion of  the polymer is                                                          
retained by  the rock so  it doesn't play  a role in  the displacement                                                          
efficiency. This  is shown in the  first picture. A second  concern is                                                          
that the  use of any  type of  solvent may precipitate  asphaltenes in                                                          
the reservoir  and blocks the  pores, thus  impeding the flow  of oil.                                                          
This  is called  formation damage.  He  said there  are also  concerns                                                          
related to the  breakthrough polymer. When the  polymer breaks through                                                          
and shows  up in  the production stream,  it will  influence emulsions                                                          
that  have to  be broken  down. The  picture on  the lower  left shows                                                          
heavy oil and  water emulsions and fouled heater  tubes that influence                                                          
heat transference. Finally, conformance  control must be considered to                                                          
ensure  even distribution  of  the polymer  solution  or injectant  in                                                          
nearly mile-long horizontal wells.  Injection control devices that are                                                          
similar to  nozzles are used  for this  purpose. He said  the research                                                          
team  also  investigated  recovering  the  breakthrough  polymer.  The                                                          
viscosity  of the  breakthrough polymer  is reduced  but can  still be                                                          
used in the "makeup" solution.                                                                                                  
4:25:05 PM                                                                                                                    
DR. DANDEKAR  advanced to slide 8  to discuss the success  of the                                                               
Schrader Bluff pilot project. He pointed  to the image on the top                                                               
left that shows the polymer  injection unit that's located at the                                                               
J-Pad of  the Milne Point  unit. The idea  is to prepare  a thick                                                               
polymer  solution that  is diluted  to a  specified concentration                                                               
for use in the injection unit.  The polymer that's used is called                                                               
 Hydrolyzed Poly Acrylamide  or HPAM. It looks  like sugar and  is                                                              
 stored in the solo that's pictured.                                                                                            
 4:26:36 PM                                                                                                                   
 DR. DANDEKAR  advanced to  slide 9  to discuss  the enhanced  oil                                                              
 recovery (EOR)  benefit that was  realized from  the J-Pad  pilot                                                              
 project. The chart shows the  actual oil production rate for  the                                                              
 polymer flood compared  to the best  case history matched  model.                                                              
 To do the forecast, actual  production data is used to  calibrate                                                              
 the assimilation  models.  This chart  looks at  the  incremental                                                              
 recovery of about 700  barrels/oil/day compared to recovery  with                                                              
 water flooding, which isn't very efficient.                                                                                    
 He said  another measure of  success is  the polymer  utilization                                                              
 factor. This  is the  amount  of polymer  needed to  produce  the                                                              
 incremental barrel of  oil. In this  case, it  was 1.7 pounds  of                                                              
 polymer per incremental barrel, which is among the lowest  in the                                                              
 reported field cases  worldwide. He noted that  the cost for  the                                                              
 polymer was $2-3 per  pound so the cost  was not high to  produce                                                              
 the incremental barrel.                                                                                                        
 4:27:56 PM                                                                                                                   
 DR. DANDEKAR directed  attention to the charts  on slide 10  that                                                              
 show the forecast  and economic analysis that  was done. He  said                                                              
 this shows that water  flood alone, which  is the blue curve,  is                                                              
 not very efficient compared to  polymer floods. The red curve  is                                                              
 the best  model, but even  the most  conservative polymer  model,                                                              
 which is  the gray curve,  produces from  1.6 to  1.7 times  more                                                              
 than the water flood recovery.                                                                                                 
 The  bar chart  shows  the  economic  analysis  for  the  history                                                              
 matched models. A  higher net present  value indicates a  greater                                                              
 project value while a  higher profit-to-investment ratio and  low                                                              
 development cost  indicates  a  more  efficient  investment.  All                                                              
 three models were robustly profitable through 2050.                                                                            
 Slide 11 speaks to workforce development. The picture  shows Cody                                                              
 Keith, the Alaskan  student who ran all  the simulations for  the                                                              
 test project. He won  the Society of Petroleum Engineers  Western                                                              
 Regional  Student  Paper  Contest   and  the  master's   division                                                              
 international student paper contest. He currently is  working for                                                              
 ConocoPhillips  as  a  reservoir  surveillance  engineer  in  the                                                              
 Kuparuk area.                                                                                                                  
 4:31:03 PM                                                                                                                   
 DR. DANDEKAR  advanced  to slide  12,  Targeting Ugnu     Polymer                                                              
 Alternating Solvent. He said the big question is  whether polymer                                                              
alone  will   work  for  the   heavy  oil  in  Ugnu,   given  its                                                               
comparatively high viscosity.  The proposed solution is  to use a                                                               
solvent  to  reduce  the  viscosity  of Ugnu  oil  and  then  use                                                               
He summarized the following points regarding project management:                                                                
     (1)  We have basically retained  the structure from our                                                                    
          last  project with  involvement  of other  non-UAF                                                                    
     (2)  We  have  a  strong commitment  from  industry  in                                                                    
          terms   of  the   needed  samples   and  technical                                                                    
     (3)  The  entire team  meets for  2  hours every  other                                                                    
          Friday to  review the  progress and  internally we                                                                    
          meet with the students every alternate Friday.                                                                        
     (4)  Senator Bishop  visited us  back in  early January                                                                    
          and  you're  most welcome  again  any  time and  I                                                                    
          extend that invitation to the entire committee.                                                                       
     (5)  I'll share  some results in  the next  few slides,                                                                    
          which   are   basically  indicators   that   we're                                                                    
          steadily making progress.                                                                                             
4:32:45 PM                                                                                                                    
DR. DANDEKAR spoke to the  following points to discuss the phased                                                               
approach for the polymer alternating solvent project:                                                                           
     (1)  The  approach  in  this project  somewhat  differs                                                                    
          from  the  Schrader Bluff  pilot  in  that it  was                                                                    
          designed as  a "Field  Laboratory" right  from day                                                                    
          one because there  was sufficient experimental and                                                                    
          simulation  evidence  that   warranted  the  field                                                                    
          testing.  Note  though  that   the  lab  work  and                                                                    
          simulation  continued  in  parallel  as  new  data                                                                    
          emerged from the pilot.                                                                                               
     (2)  However,  polymer  alternating  solvent is  a  new                                                                    
          territory  and   that  means  we  need   to  first                                                                    
          demonstrate the  efficacy of  appropriate polymer                                                                     
          solvent  combo  in  the  lab  and  run  simulation                                                                    
          models.  After  that  we will  test  the  proposed                                                                    
          methodology  in  a  heavy  oil  reservoir     this                                                                    
          phased approach is shown here.                                                                                        
4:34:23 PM                                                                                                                    
DR.  DANDEKAR stated  that the  next few  slides show  the latest                                                               
results  from  the  project.  The  first  picture  looks  at  the                                                               
swelling effect  that carbon dioxide,  as a solvent, has  on Ugnu                                                               
 oil. The test  samples and graph  show the significant  reduction                                                              
 in viscosity when  carbon dioxide  comes in contact  with and  is                                                              
 dissolved into the heavy Ugnu oil. The plan is to also  test with                                                              
 other miscible solvents  such as natural gas.  He noted that  the                                                              
 discussions about carbon capture,  utilization, and storage  also                                                              
 align with the project.                                                                                                        
 DR.  DANDEKAR  displayed  slide  16,  Ugnu  oil  recovery     low                                                              
 salinity water and polymer. He  said the team has run  commercial                                                              
 sand  pack  core  flooding  experiments  using  both   water  and                                                              
 polymers. These experiments show that some heavy Ugnu oil  can be                                                              
 recovered when it's  flooded with  low salinity water.  But if  a                                                              
 polymer solution  is injected after  the water,  even more  heavy                                                              
 oil is produced. The caveat  is that these commercial sand  packs                                                              
 have high porosity  and permeability,  so the real  test will  be                                                              
 when water  followed  by  a  polymer solution  is  injected  into                                                              
 actual reservoir sands.                                                                                                        
 4:37:22 PM                                                                                                                   
 DR. DANDEKAR  displayed slide  17,  CO  solvent ->  Low  Salinity                                                              
 Water and/or CO solvent -> Polymer injection Alternating Cycles.                                                               
        • Two different modes of CO "soaking" followed by low                                                                   
        salinity water                                                                                                          
      • Evaluate oil viscosity reduction/swelling                                                                               
      • Monitor gas, oil and water production                                                                                   
          • Evaluate CO "stored" while enhancing heavy oil                                                                      
 He explained  that these experiments  inject CO  alternated  with                                                              
 water injection.  At this stage,  it is  not polymer  alternating                                                              
 solvent, it  is water  alternating solvent.  The schematic  shows                                                              
 what's called huff and puff, which means the solvent  is injected                                                              
 and left to soak into the  oil. This is followed by low  salinity                                                              
 water and also polymer  in sand pack  floods. He said the  amount                                                              
 of CO  that's  injected is  just  enough to  see the  effect.  He                                                              
 acknowledged that  this  will  be  a long  iterative  process  to                                                              
 figure out what combination works best.                                                                                        
 4:39:04 PM                                                                                                                   
 DR. DANDEKAR stated  that the schematic  on slide 18  illustrates                                                              
 the soaking  modes  that  have  been tested  in  the  alternating                                                              
 cycles. On the left it shows a  certain amount of CO  is injected                                                              
 while oil is produced. Then the system is closed for 24  hours so                                                              
injection to  see how  much the viscosity  has reduced,  and then                                                               
the heavy oil is recovered.                                                                                                     
The  second  image  illustrates  full  soak.  This  means  CO  is                                                               
injected  until a  certain  pressure is  achieved,  and then  the                                                               
system  is closed.  This  is followed  with  water injection.  He                                                               
explained that the idea is  to determine the ideal combination of                                                               
water and CO.                                                                                                                   
4:40:00 PM                                                                                                                    
DR. DANDEKAR  displayed slide  19, Ugnu  oil recovery:  CO    low                                                               
salinity water alternating cycles,  which shows results from last                                                               
week. The  test vials  on the  left show  the cumulative  oil and                                                               
water production. CO  is also produced but it can only be seen on                                                               
a gas  meter. He said  the motivation  was to determine  just how                                                               
much CO can actually be stored in heavy oil; it ties into CCUS.                                                                 
The bar  chart on the  right shows that  about 11 percent  of the                                                               
oil can be  produced when just CO  is injected as  a solvent. But                                                               
when water  was injected into that  less viscous oil, as  much as                                                               
43 percent of the oil was  produced. Then there was a second full                                                               
soak followed by more injected  water, which produced another 4.9                                                               
percent of the oil                                                                                                              
4:41:51 PM                                                                                                                    
DR.  DANDEKAR   concluded  the  presentation  by   reviewing  the                                                               
upcoming plans.                                                                                                                 
     • Continue working on all Phase I tasks so that enough                                                                     
        data is generated for initial reservoir simulation                                                                      
        decision point                                                                                                          
     • A two-day forum/conference of academics (US and                                                                          
        Canada), industry and SNF (polymer manufacturer) on                                                                     
        heavy oil EOR at UAF after the SPE Western Regional                                                                     
        Meeting to:                                                                                                             
        -Discuss our currently ongoing projects and raise                                                                       
          ideas on how to extend our current work                                                                               
        -Visit our labs to know our capacity and capability                                                                     
        -Discuss future potential collaborations in heavy oil EOR                                                               
DR. DANDEKAR extended  his thanks to everyone  who contributed to                                                               
the research efforts.                                                                                                           
4:44:40 PM                                                                                                                    
SENATOR KAWASAKI asked  if the polymer was designed  in Alaska or                                                               
just tested here.                                                                                                               
 DR. DANDEKAR  replied that  polymer is  not  new technology,  but                                                              
 this  was  the  first  polymer  pilot  project  in   Alaska.  S&F                                                              
 manufactures the polymer in Georgia. Conceptually,  polymer could                                                              
 be manufactured  in Alaska because  the primary  raw material  is                                                              
 natural gas, but  other elements  aren't readily available  here,                                                              
 so the logistics would be complicated.                                                                                         
 SENATOR KAWASAKI asked if the polymer is inert, and  what happens                                                              
 to it after it's used for flooding.                                                                                            
 DR.  DANDEKAR  referenced  the  slide  that  shows   the  polymer                                                              
 breaking through  into the produced  stream, but  not in  amounts                                                              
 that cause  concern. For  example, the  polymer concentration  on                                                              
 the J-Pad  ranged from  300-700 parts  per  million. The  polymer                                                              
 stays in  the water  and  is processed;  the separated  water  is                                                              
 disposed of and  some may be  used for  reinjection. The team  is                                                              
 looking at  recycling  the  polymer  so it's  more  of  a  closed                                                              
 4:49:14 PM                                                                                                                   
 SENATOR CLAMAN summarized that the concept  is to inject CO  into                                                              
 the heavy  oil to  reduce the  viscosity and  make  it easier  to                                                              
 produce. He asked what happens  to the CO  after it comes out  of                                                              
 the ground.                                                                                                                    
 DR. DANDEKAR said part of  the research is to determine how  much                                                              
 of the CO  stays  in the reservoir, but  the gas that's  produced                                                              
 could be used again. Some of  the recycling could be done on  the                                                              
 pad using a  "knock out drum."  This process  is already used  to                                                              
 recycle water  containing polymer.  He acknowledged  that once  a                                                              
 lot of CO shows up, something else will have to be done.                                                                       
 SENATOR CLAMAN asked if he  was saying that not all  the CO  that                                                              
 was injected would stay in solution with the heavy oil.                                                                        
 DR.  DANDEKAR said  that's  correct;  it's  similar  to  the  gas                                                              
 injection that's been done at Prudhoe Bay for years.                                                                           
 4:52:34 PM                                                                                                                   
 SENATOR KAUFMAN wondered how  the dissolved solvent would  affect                                                              
 the blend of the oil. He specifically mentioned sulfur content.                                                                
 DR. DANDEKAR said he didn't  believe there was any concern  about                                                              
 sulfur, especially with heavy oil.                                                                                             
CO-CHAIR GIESSEL thanked him for the presentation and his work                                                                  
at the university.                                                                                                              
4:54:42 PM                                                                                                                    
There being no further business to come before the committee,                                                                   
Co-Chair Giessel adjourned the Senate Resources Standing                                                                        
Committee meeting at 4:54 p.m.                                                                                                  

Document Name Date/Time Subjects
SRES Presentation on Heavy Oil Recovery Research at UAF.pdf SRES 3/17/2023 3:30:00 PM
SB 72 Version S.PDF SRES 3/17/2023 3:30:00 PM
SB 72
SB 72 Sponsor Statement ver. S 03.16.23.pdf SRES 3/17/2023 3:30:00 PM
SB 72
SB 72 Sectional Analysis ver. S 03.16.23.pdf SRES 3/17/2023 3:30:00 PM
SB 72
SB 72 Fiscal Note DEC 03.10.23.pdf SRES 3/17/2023 3:30:00 PM
SB 72
SB 72 Fiscal Note DNR 03.10.23.pdf SRES 3/17/2023 3:30:00 PM
SB 72
SB 72 Support Doc Tier III Process 03.14.23.pdf SRES 3/17/2023 3:30:00 PM
SB 72
SB 72 Support Doc Designation Process Updates 03.16.23.pdf SRES 3/17/2023 3:30:00 PM
SB 72
SB 72 Support Doc 50 States ONRW Policies and Implementation 03.14.23.pdf SRES 3/17/2023 3:30:00 PM
SB 72
SB 72 Support Doc DEC Tier III Fact Sheet 03.14.23.pdf SRES 3/17/2023 3:30:00 PM
SB 72
SB 72 Support Doc DEC Water Quality Standards 03.14.23.pdf SRES 3/17/2023 3:30:00 PM
SB 72
SB 72 Support Doc Federal Regulations Protection of Environment 03.14.23.pdf SRES 3/17/2023 3:30:00 PM
SB 72
SB 72 Support Doc Final Tier 3 Guidance 03.14.23.pdf SRES 3/17/2023 3:30:00 PM
SB 72
SB 72 Support Letters rec'd by 03.16.23.pdf SRES 3/17/2023 3:30:00 PM
SB 72
SB 72 Version B Legal Memo.pdf SRES 3/17/2023 3:30:00 PM
SB 72
SB 72 SRES Presentation 3.17.23.pdf SRES 3/17/2023 3:30:00 PM
SB 72
SB 72 DEC Response to Committee Questions 03.21.23.pdf SRES 3/17/2023 3:30:00 PM
SB 72