HOUSE SPECIAL COMMITTEE ON OIL AND GAS February 16, 1999 10:04 a.m. MEMBERS PRESENT Representative Jim Whitaker, Chairman Representative Gail Phillips Representative Scott Ogan Representative Allen Kemplen Representative Tom Brice Representative Harold Smalley MEMBERS ABSENT Representative Fred Dyson Representative John Harris Representative Brian Porter COMMITTEE CALENDAR *HOUSE JOINT RESOLUTION NO. 11 Urging the United States Congress to pass legislation to open the coastal plain of the Arctic National Wildlife Refuge, Alaska, to oil and gas exploration, development, and production. - MOVED CSHJR 11(O&G) OUT OF COMMITTEE (* First public hearing) PREVIOUS ACTION BILL: HJR 11 SHORT TITLE: ENDORSING ANWR LEASING SPONSOR(S): REPRESENTATIVES(S) PHILLIPS, James, Harris, Whitaker, Smalley Jrn-Date Jrn-Page Action 2/05/99 143 (H) READ THE FIRST TIME - REFERRAL(S) 2/05/99 144 (H) OIL & GAS, RESOURCES 2/08/99 173 (H) COSPONSOR(S): WHITAKER 2/16/99 (H) O&G AT 10:00 AM CAPITOL 17 ACTION NARRATIVE TAPE 99-6, SIDE A Number 0001 CHAIRMAN JIM WHITAKER called the House Special Committee on Oil and Gas meeting to order at 10:04 a.m. Members present at the call to order were Representatives Whitaker, Phillips, Ogan, Kemplen, Brice and Smalley. Representatives Dyson, Harris and Porter were absent. Chairman Whitaker noted that Representative Porter was excused. HJR 11-ENDORSING ANWR LEASING Number 0094 CHAIRMAN WHITAKER announced that the only order of business before the committee is HOUSE JOINT RESOLUTION NO. 11, Urging the United States Congress to pass legislation to open the coastal plain of the Arctic National Wildlife Refuge, Alaska, to oil and gas exploration, development, and production. CHAIRMAN WHITAKER believed that opening ANWR has overwhelming support in the legislature, but due to the importance of this to the future of Alaska discussion is warranted. Chairman Whitaker noted his intention to pass HJR 11 from committee. The next committee of referral for HJR 11 is the House Resources Committee. Number 0158 REPRESENTATIVE PHILLIPS, Alaska State Legislature, testified as the sponsor of HJR 11. She noted that the details of ANWR have been discussed for many years. Representative Phillips believed that this resolution has been before the legislature every session she has been in the legislature. The new members of Congress need to have this resolution before them in order to illustrate the support of the people of Alaska. Representative Phillips offered the following technical amendment: Page 2, line 4; delete "imported", insert "imports". CHAIRMAN WHITAKER noted that the technical amendment would not require committee action. REPRESENTATIVE PHILLIPS urged the committee's support of HJR 11. Number 0277 REPRESENTATIVE KEMPLEN referred to page 3, lines 1-4 of HJR 11 when inquiring as to, "how would these new innovations push the environmental protection beyond these high standards that Alaska has adopted?" REPRESENTATIVE PHILLIPS explained that every year the pipeline has operated in Prudhoe Bay, technological advancements have occurred due to Alaska's high environmental protection standards. Representative Phillips believed that everything done by the pipeline attempts to not only make the operation more efficient, but also to make the operation more environmentally safe. Representative Phillips pointed out that Bev Ward (ph) from ARCO was present and could also speak to Representative Kemplen's question. Number 0409 REPRESENTATIVE KEMPLEN said that Representative Phillips answer was sufficient. Representative Kemplen wanted to be sure that the language, "traditionally high standards" referred to environmental protection. He expressed the importance of proceeding with the development of Alaska's natural resources while maintaining high environmental standards. CHAIRMAN WHITAKER informed the committee that he had spent many years on the North Slope as well as around the world observing oil development. Chairman Whitaker said, "There's no comparison between what is done on the North Slope and in Alaska in general and other parts of the world. There is indeed a high standard and it's, it is an improving standard as is indicated by the paragraph in question." REPRESENTATIVE SMALLEY said that he felt comfortable with the language, page 3, lines 1-4, being discussed. REPRESENTATIVE BRICE mentioned the available technologies such as directional drilling, multi-well hulls, and the industry having smaller footprints for the drilling pads. Representative Brice indicated that the industry is leaving less of a disturbance. Number 0649 REPRESENTATIVE BRICE moved to adopt Amendment 1. AMENDMENT 1 Page 3, line 7, following "and be it": Insert a new paragraph to read: "FURTHER RESOLVED that the Alaska State Legislature opposes any unilateral reduction in royalty revenue from exploration and development of the coastal plain of the Arctic National Wildlife Refuge and any attempt to coerce the State of Alaska into accepting less than the 90 percent of the oil, gas, and mineral royalties from the federal land in Alaska that was promised to the state at statehood; and be it". There being no objection, Amendment 1 was adopted. Number 0692 REPRESENTATIVE OGAN moved to report CSHJR 11(O&G) out of committee with individual recommendations and the accompanying zero fiscal notes. Representative Ogan asked for unanimous consent. There being no objection, it was so ordered. Number 0750 CHAIRMAN WHITAKER said, in closing, "As important as ANWR is to the future of Alaska, we have another development, a potential development with regard to the North Slope that is equally as important. And as was stated in the opening comments of this committee, it is one of our goals, one of my goals to ensure that North Slope gas is given every opportunity to be taken to market. It is my intention within the relatively near future, this session, to bring forward legislation that will assist in that end. The plan is coalescing and as soon as those details become available I will share them, certainly with the committee first. And I hope that with your additions and helpful suggestions we can put forward a piece of legislation that will move through the legislature and help us move this very, very important commodity to market." REPRESENTATIVE PHILLIPS mentioned that she was working on a resolution on the National Petroleum Reserve-Alaska (NPRA) in order to obtain the additional acreage. CHAIRMAN WHITAKER said that the committee is aggressive and pro-active and actions such as Representative Phillips are appreciated. Number 0870 REPRESENTATIVE KEMPLEN asked if any progress had been made in scheduling a meeting to address the status of pipelines in Alaska which is of concern to some of the committee members. CHAIRMAN WHITAKER said nothing specific has been scheduled, but discussions with Bob Malone indicate his willingness to provide the committee with a presentation. Chairman Whitaker stated that there will be a presentation from Alyeska as well as any other pipeline entity. ADJOURNMENT There being no further business before the committee, the House Special Committee on Oil & Gas meeting was adjourned at 10:20 a.m.