HOUSE SPECIAL COMMITTEE ON OIL & GAS                                   
                  August 12, 1998                                              
                     8:30 a.m.                                                 
                                                                               
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
LOW SULPHUR DIESEL, LOW SULPHUR GASOLINE, GAS PIPELINE UPDATE                  
- TESTIMONY BY INVITATION ONLY -                                               
                                                                               
TAPE(S)                                                                        
                                                                               
98-32, SIDES A & B                                                             
98-33, SIDES A & B                                                             
28-34, SIDE A                                                                  
                                                                               
CALL TO ORDER                                                                  
                                                                               
Representative Mark Hodgins, Chairman, convened the House Special              
Committee on Oil and Gas meeting at 8:30 a.m.                                  
                                                                               
PRESENT                                                                        
                                                                               
Committee members present at the call to order were Representatives            
Bunde, Kemplin and Hodgins.  Representative Brice was in attendance            
via teleconference.  Representative Ryan arrived as the meeting was            
in progress.  Representatives Ogan and Rokeberg were absent.                   
                                                                               
SUMMARY OF INFORMATION                                                         
                                                                               
KEN BOYD, Director, Division of Oil and Gas, Alaska Department of              
Natural Resources, gave an update on Point Thompson.                           
                                                                               
RON COCHRAN, MAPCO ALASKA PETROLEUM, Inc., gave an issue overview              
on low sulphur diesel - mobile sources.                                        
                                                                               
MIKE CONWAY, Director, Division of Air and Water Quality, Alaska               
Department of Environmental Conservation, gave an overview of low              
sulphur diesel - mobile sources, and the petition to the                       
Environmental Protection Agency (EPA) for permanent exemption of               
its use.                                                                       
                                                                               
LORI STEWART, Environmental Protection Agency, reviewed the                    
petition for permanent exemption to the use of low sulphur diesel.             
                                                                               
PAUL MACHIELE, Environmental Protection Agency, explained new                  
diesel sulphur standards and impacts on engines.                               
                                                                               
JED MANDEL, Engine Manufacturers Association, reviewed the new                 
engine technology for new diesel sulphur standards.                            
                                                                               
FRANK DILLION, Vice President, Alaska Trucking Association,                    
explained the need for a permanent exemption to the use of low                 
sulphur diesel in Alaska.                                                      
                                                                               
MARILYN CROCKETT, Assistant Executive Director, Alaska Oil and Gas             
Association (AOGA), supported a permanent exemption for the use of             
low sulphur diesel in Alaska.                                                  
                                                                               
BILL SCHOEPHOESTER, PETRO MARINE SERVICES, explained benefits of a             
permanent exemption to the use of low sulphur diesel in Alaska.                
                                                                               
JEFF COOK, MAPCO ALASKA PETROLEUM, Inc., supported a permanent                 
exemption to the use of low sulphur diesel on Alaska.                          
                                                                               
RON NOEL, Tesoro Alaska Petroleum Company, explained Tesoro's                  
capability of low sulphur diesel production at their Nikiski plant.            
                                                                               
KEN FREEMAN, Executive Director, Resource Development Council,                 
explained the need for a permanent exemption to the use of low                 
sulphur diesel in Alaska.                                                      
                                                                               
WALTER GORE, PETRO STAR, INC., explained refining of low sulphur               
diesel and supported a permanent exemption to the use of low                   
sulphur diesel in Alaska.                                                      
                                                                               
JIM PFEIFFER, Alaska Rural Electric Cooperative Association                    
(ARECA), supported the permanent exemption to the use of low                   
sulphur diesel.                                                                
                                                                               
COMMITTEE ACTION                                                               
                                                                               
The committee took no action.                                                  
                                                                               
ADJOURNMENT                                                                    
                                                                               
The meeting adjourned at 11:35 a.m.                                            
                                                                               
NOTE:                                                                          
                                                                               
The meeting was recorded and handwritten log notes were taken.  A              
copy of the tape(s) and log notes may be obtained by contacting the            
House Records Office at 130 Seward Street, Suite 211, Juneau,                  
Alaska  99801-1182, (907) 465-2214, and after adjournment of the               
second session of the Twentieth Alaska State Legislature, in the               
Legislative Reference Library.