SB 175-DNR: DISCLOSURE OF CONFIDENTIAL INFO                                                                       
                                                                                                                                
1:51:09 PM                                                                                                                    
CHAIR COGHILL  announced the consideration  of SB 175.  He stated                                                               
his  intention  to  take  public  testimony  and  noted  who  was                                                               
available to answer questions.                                                                                                  
                                                                                                                                
1:51:16 PM                                                                                                                    
SENATOR WIELECHOWSKI joined the committee.                                                                                      
                                                                                                                                
1:53:22 PM                                                                                                                    
KARA   MORIARITY,  President   and  CEO,   Alaska  Oil   and  Gas                                                               
Association  (AOGA), Anchorage,  Alaska, advised  that AOGA  is a                                                               
private  trade association  that represents  the majority  of oil                                                               
and  gas  producers,  explorers, refiners,  and  transporters  of                                                               
Alaska's oil and  gas. She stated that AOGA does  not support the                                                               
current draft  of SB 175  but hopes  to work together  to address                                                               
two  concerns while  still accomplishing  what DNR  is trying  to                                                               
achieve.                                                                                                                        
                                                                                                                                
First, language  should be added that  exempts royalty settlement                                                               
agreements (RSAs) from the provisions  of the bill. She explained                                                               
that AOGA views RSAs as  contractual agreements between the state                                                               
and  a  company  that  vary  based on  terms  of  the  agreement.                                                               
Furthermore, RSAs often contain  legal restrictions regarding the                                                               
disclosure of  confidential information  to a  party that  is not                                                               
part of  the contractual agreement.  The bill could  disrupt what                                                               
has already  been agreed to regarding  confidentiality in royalty                                                               
settlement agreements.                                                                                                          
                                                                                                                                
The  second concern  relates  to the  individuals  who will  have                                                               
access to  the confidential information under  a protective order                                                               
during a royalty  audit or appeal. AOGA would  like language that                                                               
limits  the release  of confidential  information  to only  those                                                               
individuals who are  directly involved with the  royalty audit or                                                               
appeal.                                                                                                                         
                                                                                                                                
1:56:28 PM                                                                                                                    
CHAIR COGHILL  said he would  get DNR to address  those concerns.                                                               
Finding  no  questions,  he  stated  he  would  hold  SB  175  in                                                               
committee for future consideration.