HB 300-OIL & GAS CONSERVATION COMMISSION MEMBER 5:54:43 PM CHAIR KOHRING announced that the next order of business would be HOUSE BILL NO. 300, "An Act relating to the qualifications of the member of the Alaska Oil and Gas Conservation Commission who need not be certified, trained, or experienced in either the field of petroleum engineering or the field of petroleum geology." 5:55:07 PM CHAIR KOHRING, sponsor of HB 300, explained that HB 300 "adds some substance" to the requirements for the public seat on the three-member AOGCC. As a result of the oil and gas industry's technical nature and complexity, Chair Kohring opined that it makes sense to require that an appointed individual has a background in the oil and gas industry. The law [referring to the public seat of the AOGCC] currently reads "Need not be certified, trained, or experienced in either the field of petroleum engineering or petroleum technology." However, the proposed committee substitute (CS) says that the public member, "Shall have training or experience that gives the person a fundamental understanding of the oil and gas industry in the state." 5:57:12 PM REPRESENTATIVE SAMUELS moved to adopt CSHB 300, Version 24- LS0997\F, Kane, 1/23/06, as the working document. There being no objection, Version F was before the committee. 5:57:42 PM DANIEL T. SEAMOUNT, JR., Commissioner, Alaska Oil & Gas Conservation Commission (AOGCC), Department of Administration (DOA), stated that the AOGCC can support HB 300. He noted that although the AOGCC doesn't feel like there's been any demonstrative problems with lack of experience by the public member in the past, oil and gas operations are becoming much more complex and it's good insurance for all members of the commission to have a fundamental understanding of the industry he/she regulates. 5:59:29 PM CHAIR KOHRING noted that [HB 300] is "definitely not" an indictment of past members who have served on the AOGCC. 5:59:51 PM REPRESENTATIVE SAMUELS asked if "fundamental understanding" is a term of art or if common sense should apply. MR. SEAMOUNT explained that the term "fundamental understanding" allows for some flexibility. The AOGCC doesn't currently have a definition for it. MS. FOERSTER further explained that while the AOGCC felt that it was appropriate to "tighten up" the requirement "a little bit," the AOGCC didn't want to restrict good applicants who might be a little unorthodox or might not meet a tight requirement. She said that it would be a loss to the state if such people were kept from applying. 6:02:10 PM REPRESENTATIVE ROKEBERG opined that an appointment to the AOGCC public seat should not be a political reward but rather should be based on competence. 6:03:11 PM CHAIR KOHRING, upon determining that no one else wished to testify on HB 300, announced the closure of public testimony. 6:03:17 PM REPRESENTATIVE SAMUELS moved to report CSHB 300, Version 24- LS0997\F, Kane, 1/23/06, out of committee with individual recommendations and the accompanying zero fiscal note. There being no objection, CSHB 300(O&G) was reported out of the House Special Committee on Oil and Gas.