Legislature(2003 - 2004)
04/21/2004 04:20 PM Senate RES
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
SENATE RESOURCES STANDING COMMITTEE
April 21, 2004
4:20 p.m.
TAPE(S) 04-42
MEMBERS PRESENT
Senator Scott Ogan, Chair
Senator Thomas Wagoner, Vice Chair
Senator Fred Dyson
Senator Ralph Seekins
Senator Ben Stevens
Senator Kim Elton
Senator Georgianna Lincoln
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 312
"An Act relating to natural gas exploration and development and
to nonconventional gas, and amending the section under which
shallow natural gas leases may be issued; and providing for an
effective date."
HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 312
SHORT TITLE: CONVENTIONAL & NONCONVENTIONAL GAS LEASES
SPONSOR(s): RESOURCES BY REQUEST
02/09/04 (S) READ THE FIRST TIME - REFERRALS
02/09/04 (S) RES, FIN
02/23/04 (S) RES AT 3:30 PM BUTROVICH 205
02/23/04 (S) Heard & Held
02/23/04 (S) MINUTE(RES)
03/05/04 (S) RES AT 3:30 PM BUTROVICH 205
03/05/04 (S) <Above Bill Hearing Postponed>
03/22/04 (S) RES AT 3:30 PM BUTROVICH 205
03/22/04 (S) Heard & Held
03/22/04 (S) MINUTE(RES)
03/26/04 (S) RES AT 3:30 PM BUTROVICH 205
03/26/04 (S) Heard & Held
03/26/04 (S) MINUTE(RES)
04/21/04 (S) RES AT 3:30 PM BUTROVICH 205
WITNESS REGISTER
Ms. Linda Hay
Staff to Senator Scott Ogan
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Commented on SB 312 for sponsor.
ACTION NARRATIVE
TAPE 04-42, SIDE A
SB 312-CONVENTIONAL & NONCONVENTIONAL GAS LEASES
CHAIR SCOTT OGAN called the Senate Resources Standing Committee
meeting to order at 4:20 p.m. Present were Senators Thomas
Wagoner, Ben Stevens, Ralph Seekins, Georgianna Lincoln and
Chair Scott Ogan. Senator Fred Dyson arrived at 4:26 and Senator
Kim Elton arrived at 4:27. The first order of business to come
before the committee was SB 312. He noted a draft of enforcement
standards for coalbed methane (CBM) development and state-owned
resources in the Mat-Su Borough in the committee packets. First,
he wanted to compare the Mat-Su property owner's bill of rights
with Department of Natural Resources (DNR) leasing regulations.
Issues that were left out could be identified and addressed in
next week's meeting.
He explained that SB 312 puts the shallow gas leasing program
into more of a traditional oil and gas leasing program. This is
problematic for certain developers in the more rural areas where
energy is needed for things such as mines. He is considering
bifurcating the program, based not on boroughs, but on
geological basins and population. He believes that areas of
higher populations have more surface use conflicts and needed
more scrutiny than other areas that don't have a large
population, but nevertheless have a greater need for energy.
CHAIR OGAN thought one of the ways to resolve surface/subsurface
conflicts is to provide a tax break incentive for producers that
would be applicable to expenditures beyond their normal
operations and SB 312 includes such an incentive.
He asked the committee to review a legal opinion from Jack
Chenoweth, Legislative Legal Services, about the
constitutionality of giving surface owners veto power over
subsurface access through their properties. The opinion stated
that it is not only unconstitutional, but would probably be
considered a revision, which requires a constitutional
convention.
SENATOR SEEKINS said that he hadn't received any negative
comments on the shallow gas leasing act from people in the
Denali Borough. They were satisfied with the way it was.
CHAIR OGAN supported the idea that development in heavily
populated areas would have a higher level of scrutiny.
SENATOR DYSON asked why SB 312 doesn't address the similar issue
in the Homer area.
CHAIR OGAN replied that these regulations will be statewide.
MS. LINDA HAY, staff to Senator Ogan, said her understanding is
that SB 312 was developed for the Mat-Su Borough, but Homer
would have a series of workshops on this issue and then they
would get together to work something out.
CHAIR OGAN noted there would be further work on this issue and
adjourned the meeting at 4:32 p.m.
| Document Name | Date/Time | Subjects |
|---|