SCR 3-POINT THOMSON UNIT APPEAL  3:58:08 PM CHAIR FRENCH announced the consideration of SCR 3. SENATOR THERRIAULT, Sponsor of SCR 3, said he introduced the resolution after it became apparent that the Pt. Thomson legislation he initially introduced could be a detriment to the state's cause. SCR 3 resolves that the legislature is encouraging the governor and the attorney general to allocate adequate resources and to expedite the court's consideration of the appeal. He emphasized that the resolution isn't encouraging a court fight. In fact, he said, to expedite could mean getting to a settlement; he didn't believe that the administration had necessarily ruled that out. SENATOR THERRIAULT said when he reviewed the resolution with Kevin Banks and the Department of Law he was asked to insert an additional "whereas" phrase that provides an update of the action state agencies have taken. He distributed the proposed amendment. In conclusion he said there is potential benefit in having the legislature support the administration's efforts through the fast track supplemental for the oil and gas issues that were passed, but there's also benefit in making a policy statement in support of the steps the administration has taken to get the Pt. Thomson lease unit into production. 4:02:13 PM ANNE JOHNSON, Assistant Attorney General, Civil Division, Oil, Gas & Mining Section, Department of Law, explained that the proposed amendment is a reference to three other proceedings that are currently in progress. Two proceedings are in superior court and they evolved from the unit terminations. One proceeding is an agency appeal on the individual lease terminations. CHAIR FRENCH asked if the administrative appeals filed by ExxonMobil Corporation, BP Exploration, Chevron U.S.A., ConocoPhillips Alaska, Inc., and Devon Energy Production Company, L.P. that are listed in the proposed amendment show up together or one at a time. MS. JOHNSON said all the entities appealed individually, but the same issues are at stake so it's possible that a single decision will come out. SENATOR WIELECHOWSKI asked if the governor and the attorney general are allocating adequate resources for this matter. MS. JOHNSON deferred to Mr. Banks. 4:04:29 PM KEVIN BANKS, Acting Director, Division of Oil & Gas, Department of Natural Resources, said the financial support is under the fast track supplemental and the Department of Law has retained outside counsel to work on the case. SENATOR WIELECHOWSKI asked if the governor and the attorney general are taking all steps necessary to expedite the court's consideration of the appeal. MR. BANKS said yes; no stone will go unturned in the effort to achieve what is in the best interest of the state. SENATOR WIELECHOWSKI commented, "It appears that we're already doing everything that we're asking to be done in this resolution." SENATOR THERRIAULT responded that although he doesn't disagree, he believes there is potential benefit in having the legislative branch on record as fully supporting the administration's efforts. He asked Ms. Johnson or Mr. Banks if they see any potential downside to the legislature going on record as described. MS. JOHNSON said she could not see a downside. She continued to say, "I would like to say the Department of Law appreciates the Senate's concurrent resolution on Pt. Thomson and the proceedings that are related to it. We appreciate the legislature's funding of the proceedings; the law department will continue to move ahead as expeditiously as possible to hopefully attain a successful resolution. 4:07:23 PM CHAIR FRENCH said he wrote down the word "resolution" when Senator Therriault said this could lead to a settlement or it could lead to a court decision, but the idea is to get this wrapped up as fairly and as quickly as possible without giving away the farm in exchange for speed. With that in mind he suggested the committee consider a bit of wordsmithing on page 3, lines 19 and 20, to capture that idea. If the legislature is truly telling the administration to expedite the court's consideration that's one thing, but if it is telling it to expedite the process to resolve the ownership of the Pt. Thomson leases that is a slightly different and broader charge than he believes Senator Therriault is intending. I tend to support him, he said, because at some point there may be a decision that it's time to wrap it up because it's not possible to build and fill a gas line without Pt. Thomson gas. SENATOR THERRIAULT suggested the committee insert something similar to "or facilitate the settlement" after the appeal reference.   CHAIR FRENCH asked Ms. Johnson to comment. MS. JOHNSON suggested inserting, "or facilitate a successful resolution to the Pt Thompson unit and lease dispute".   CHAIR FRENCH, with stated agreement from the sponsor, held SCR 3 in committee to allow time to prepare a committee substitute.