SB 265-OIL&GAS LEASE SALE SCHEDULE/NOTIFICATION [Contains discussion of SB 266] CO-CHAIR MASEK announced that the first order of business would be CS FOR SENATE BILL NO. 265(RES), "An Act relating to the schedule of proposed oil and gas lease sales and to a related report to the legislature; and providing for an effective date." [SB 265 was sponsored by the Senate Rules Standing Committee by request of the governor.] Number 0094 MARK MYERS, Director, Division of Oil & Gas, Department of Natural Resources (DNR), explained that CSSB 265(RES) and SB 266 are bills to help enable DNR to hold a Bristol Bay oil and gas lease sale in the fall of 2005. Under current statute, the state, before making any changes in the areawide sale, must notify the legislature in the first [session] of that legislature and two years in advance of the sale; under current law, the state would have to notify the legislature of this lease sale at the beginning of the first session of the next legislature. In addition, fulfilling the two-year notice requirement will mean that the earliest the sale could occur is 2007. Therefore, DNR and the governor are requesting a change to that notification procedure. MR. MYERS specified that the proposed change in CSSB 265(RES) would allow the state to notify the legislature anytime with regard to the changes to the sale and process. It would also require that annually, in February, DNR would provide the legislature with a report laying out the five-year schedule for areawide lease sales. The aforementioned proposal seems to provide good balance in that additional notification is provided while allowing flexibility to add sales to the schedule without a potential three- to four-year delay in a sale. MR. MYERS highlighted that the notification doesn't mean the sale will occur; it merely allows the process to occur. The process includes a best interest finding document, which weighs whether a sale is in the state's best interests. Mr. Myers referred to a map that specified the schedule based on passage of CSSB 265(RES). With its passage, prior to the sale there'd be a long period of review, public input, a preliminary best interest finding, public comment on the aforementioned document, and a final best interest finding. Even with this bill, the earliest this process could happen is in the fall 2005. He clarified that this bill will allow the state to accelerate the process for the Bristol Bay lease sale by allowing the sale in the fall of 2005, rather than January 2007. Number 0418 MR. MYERS, in response to Representative Stepovich, clarified that the bill amends the entire process. If the state were to contemplate future areawide sales, it would be under the same timeframe proposed in the bill. However, the immediate need for the bill is for the proposed Bristol Bay lease sale. Number 0480 CO-CHAIR DAHLSTROM moved to report CSSB 265(RES) out of committee with individual recommendations and the accompanying fiscal note. There being no objection, CSSB 265(RES) was reported from the House Resources Standing Committee.