HB 359 - DEPT NAT RES ADMIN APPEALS/ OIL & GAS Number 0094 CO-CHAIR HUDSON announced that the first order of business would be HOUSE BILL NO. 359, "An Act relating to notice requirements for certain final findings concerning the disposal of an interest in state land or resources for oil and gas; relating to administrative appeals and petitions for reconsideration of decisions of the Department of Natural Resources; and providing for an effective date." Number 0152 BOB LOEFFLER, Director, Division of Mining, Land and Water, Department of Natural Resources (DNR), testified via teleconference from Anchorage. He explained that the bill does two things. First, it provides for a uniform appeal process for DNR. Second, it fixes a technical error that sometimes confuses the public with respect to oil and gas notices. Right now, the appeal process in DNR is split between Title 38 and the Administrative Procedure Act; those two, passed at different times, tend to create duplicative and overlapping requirements that apply to different things. MR. LOEFFLER explained that as a result, there is an appeals process that gives someone multiple bites at the apple for the same issue. In most cases, one can appeal a decision to the director, then to the commissioner; then one can ask for reconsideration by the commissioner. This takes up a lot of time but frequently has little public benefit. This bill fixes that by creating a uniform appeal whereby there is one appeal, to the commissioner, and that is it. MR. LOEFFLER explained a second problem: different appeals apply to different types of decisions. With disposals, there is one bite of the apple; with nondisposals, however, there are multiple bites and the timelines are slightly different. This creates confusion for the public, especially. Furthermore, it is a problem when a project has multiple permits, with some being some disposals and some nondisposals. Therefore, this bill creates a straightforward administrative appeals process. There is one appeal to the commissioner, and a person has 20 days to appeal. Mr. Loeffler said he believes the uniform appeal process will be better for the public and for his own staff. MR. LOEFFLER deferred to Jim Hansen to explain the technical error relating to oil and gas notices. Number 0454 JIM HANSEN, Lease Manager, Division of Oil & Gas, Department of Natural Resources, testified via teleconference from Anchorage. He stated: What Section 4 of this bill does is repeal noticing under [AS 38.05].945(a)(3)(B). A number of years ago the Ninth Court filing notice statute was changed to require a preliminary best-interest finding prior to an oil and gas lease sale. And there's a noticing requirement for that finding. When that was done, they left in the requirement to notice a final written finding. The final written finding is noticed at the same time the preliminary finding is noticed, but by leaving this (a)(3)(B) in the law, it requires us, 30 days prior to issuing the final finding, to issue another notice saying we're issuing a final finding. At the time the finding is issued, we ... issue a notice of sale, so essentially the public has a preliminary finding notice and a notice of sale to let them know that there is going to be a sale. The notice that there is going to be issued a finding, to us, is kind of an unnecessary expense. It costs in excess of $5,000 - up to $10,000 - to do these notices. And just to let people know there's a final finding coming out 30 days prior to it, when they've already been informed 90 days prior to it, to us, is unnecessary, which is why we believe this specific statute should be repealed. Number 0711 REPRESENTATIVE WHITAKER indicated that the bill serves a purely administrative function and he has no objection to it. CO-CHAIR HUDSON said he views HB 359 as a streamlining process to get rid of duplicative reporting. Number 0798 REPRESENTATIVE COWDERY made a motion to move HB 359 from committee with individual recommendations and attached zero fiscal note; he asked for unanimous consent. There being no objection, HB 359 moved from the House Resources Standing Committee.