CSHB 388(RES) am OIL & GAS LEASING/ BEST INT. FINDINGS  CHAIRMAN LEMAN brought CSHB 388(RES) am before the committee as the next order of business. REPRESENTATIVE ROKEBERG , prime sponsor of HB 388, explained the goal of the legislation is to make more land available to the petroleum industry for leasing and a more predictable schedule. He said the additional acreage will provide a situation where there is more competition in the state and potentially invite smaller independents and other such explorers into the state of Alaska. Representative Rokeberg pointed out that by amending this existing statute for exempt and reoffered sales, there will be no delay in a current reschedule, as well as a zero fiscal impact. The legislation will extend the life of a best interest finding from five years to 10 years. It also establishes a clear and streamlined process for approval of what is called a supplement, based only on substantial new information to an existing best interest finding, while also including a reasonable time period for public notice and comments. Representative Rokeberg pointed out CSHB 388(RES) am passed out of the House unanimously, and the bill itself was a consensus bill developed with the Alaska Oil & Gas Association (AOGA) and the administration. PAT FOLEY , Chairman, Lands, Exploration & Operations Committee, Alaska Oil & Gas Association, stated their support for CSHB 388(RES) am. He said AOGA encourages annual areawide leasing in areas of the state where competitive leases are regularly offered, and this legislation will provide the vehicle for the state to institute annual areawide lease sales. Mr. Foley pointed out that previous versions of HB 388 had included the term "areawide" to describe the intent of the legislation. However, the bill was amended on the floor of the House to remove references to areawide lease sales. AOGA believes it would reinforce the state's intent to institute annual areawide leasing by amending Section 2 to insert the word "areawide" and to remove the requirement to annually offer AS 38.05.180(d) exempt lands. He said that on one hand, the bill will have the same legal effect with or without these specific words, but on the other hand, the words "areawide lease sale" are a term of art used by the industry to differentiate these lease sales from nomination-based lease sales. Including the term "areawide" could help non-Alaska operators understand the important opportunity this bill represents. Concluding his testimony, Mr. Foley said AOGA strongly supports the bill with or without the suggested amendment. BILL STAMPS , representing the Alaska Support Industry Alliance and testifying from Kenai, voiced their support for implementation of a regular and dependable lease sale program for all of Alaska. It needs to be a lease program that is economical and functional, and one that best serves the needs of the state of Alaska and its residents, and one that perspective bidding companies that provide so much of Alaska's economic base can rely on. The Alliance believes that CSHB 388(RES) am is such a bill and they support its passage. The Alliance also supports the incorporation of AOGA's suggested amendment. TAPE 96-61, SIDE A Number 001 GEORGE FINDLING , representing ARCO Alasksa, Inc., and testifying from Anchorage in support of AOGA's position, said as a part of a concerted industry effort with the administration, they have been working on a mechanism to provide endorsement of an areawide lease sale concept and to provide that the scope and usefulness of best interest findings be expanded, to change and streamline the existing process and reduce the number of best interest findings the Division of Oil & Gas must prepare, yet does not limit the public comments on the best interest findings. He stated ARCO's support for the provisions contained in CSHB 388(RES) am. KEN BOYD , Director, Division of Oil & Gas, Department of Natural Resources, voiced his support for CSHB 388(RES) am, and expressed his appreciation for the process that went into putting the bill together, which he thinks works for everybody. He said they have every intention of moving forward with the reoffering sales. However, he is not in support of AOGA's proposed amendment, because he does not think it is useful to put words like "areawide leasing" into statute, but he added that he has no strong opinion on it. Number 078 SENATOR PEARCE asked what the proposed time frame would be for offering these areawide, and how long he thinks it would take for the division to be ready with the first set of best interest findings. MR. BOYD responded that they are on that path now. Sale 87 will be held in 1998, and it will be the first areawide lease sale. Right now, through the finding process and through SB 308, which passed a couple of years ago, they are building a foundation of findings they need to make this program work. If they can build the findings successfully and get a good foundation, they are ready to go. SENATOR PEARCE asked Mr. Boyd if the Coastal Policy Council has taken a position on this legislation. MR. BOYD answered that to his knowledge, they had not. SENATOR PEARCE predicted that they are not going to like it. KEVIN TABLER , Land Manager, Union Oil Co., testifying from Anchorage, said UNOCAL has followed this piece of legislation through its passage in the House and is encouraged by its progress to date. He said as a member of the Alaska Oil & Gas Association, UNOCAL has participated on various committees which have reviewed the committee substitute, and they would lend their support to the comments made by Mr. Foley. He stated UNOCAL encourages passage of CSHB 388(RES) am with inclusion of the AOGA amendment. Number 214 SENATOR PEARCE moved adoption of the following amendment to CSHB 388(RES) am: Amendment No. 1 Page 2: Delete lines 18 through 21 and replace with the following language: "(B) to offer acreage for oil and gas lease, specifically including (i) state acreage that has been the subject of a best interest finding at annual areawide lease sales; and" Hearing no objection, the Chairman stated the amendment was adopted. SENATOR PEARCE moved SCS CSHB 388(RES) and a new fiscal note to be prepared by the department be passed out of committee with individual recommendations. Hearing no objection, it was so ordered.