ALASKA STATE LEGISLATURE  HOUSE RESOURCES STANDING COMMITTEE  March 22, 2021 1:01 p.m. MEMBERS PRESENT Representative Josiah Patkotak, Chair Representative Grier Hopkins, Vice Chair Representative Calvin Schrage Representative Sara Hannan Representative George Rauscher Representative Mike Cronk Representative Ronald Gillham MEMBERS ABSENT  Representative Zack Fields Representative Tom McKay OTHER LEGISLATORS PRESENT    Representative Andi Story COMMITTEE CALENDAR  HOUSE BILL NO. 115 "An Act relating to aquatic farming and hatchery site leases; and requiring the director of the division of lands to provide the legislature with an annual report relating to aquatic farming and hatchery site leases." - MOVED HB 115 OUT OF COMMITTEE HOUSE BILL NO. 81 "An Act authorizing the commissioner of natural resources to modify a net profit share lease." - MOVED CSHB 81(RES) OUT OF COMMITTEE PREVIOUS COMMITTEE ACTION  BILL: HB 115 SHORT TITLE: AQUATIC FARMING & HATCHERY SITE LEASES SPONSOR(s): REPRESENTATIVE(s) STORY 02/24/21 (H) READ THE FIRST TIME - REFERRALS 02/24/21 (H) FSH, RES 03/04/21 (H) FSH AT 11:00 AM GRUENBERG 120 03/04/21 (H) Heard & Held 03/04/21 (H) MINUTE(FSH) 03/09/21 (H) FSH AT 11:00 AM GRUENBERG 120 03/09/21 (H) Moved HB 115 Out of Committee 03/09/21 (H) MINUTE(FSH) 03/10/21 (H) FSH RPT 7DP 03/10/21 (H) DP: VANCE, STUTES, STORY, MCCABE, KREISS-TOMKINS, ORTIZ, TARR 03/19/21 (H) RES AT 1:00 PM BARNES 124 03/19/21 (H) Heard & Held 03/19/21 (H) MINUTE(RES) 03/22/21 (H) RES AT 1:00 PM BARNES 124 BILL: HB 81 SHORT TITLE: OIL/GAS LEASE:DNR MODIFY NET PROFIT SHARE SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR 02/18/21 (H) READ THE FIRST TIME - REFERRALS 02/18/21 (H) RES, FIN 03/05/21 (H) RES AT 1:00 PM BARNES 124 03/05/21 (H) Heard & Held 03/05/21 (H) MINUTE(RES) 03/10/21 (H) RES AT 1:00 PM BARNES 124 03/10/21 (H) Heard & Held 03/10/21 (H) MINUTE(RES) 03/17/21 (H) RES AT 1:00 PM BARNES 124 03/17/21 (H) Heard & Held 03/17/21 (H) MINUTE(RES) 03/19/21 (H) RES AT 1:00 PM BARNES 124 03/19/21 (H) Heard & Held 03/19/21 (H) MINUTE(RES) 03/22/21 (H) RES AT 1:00 PM BARNES 124 WITNESS REGISTER Grace Ervine, Staff Representative Josiah Patkotak Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Provided an overview of the proposed committee substitute for HB 81 on behalf of Representative Patkotak, prime sponsor. RYAN FITZPATRICK, Commercial Analyst Division of Oil and Gas Department of Natural Resources Anchorage, Alaska POSITION STATEMENT: Provided information and answered questions during the hearing on HB 81. ACTION NARRATIVE 1:01:54 PM CHAIR JOSIAH PATKOTAK called the House Resources Standing Committee meeting to order at 1:01 p.m. Representatives Cronk, Hopkins, Schrage, Gillham, Hannan, Rauscher, and Patkotak were present at the call to order. HB 115-AQUATIC FARMING & HATCHERY SITE LEASES  1:02:55 PM CHAIR PATKOTAK announced that the first order of business would be HOUSE BILL NO. 115, "An Act relating to aquatic farming and hatchery site leases; and requiring the director of the division of lands to provide the legislature with an annual report relating to aquatic farming and hatchery site leases." 1:03:48 PM REPRESENTATIVE HOPKINS moved to report HB 115 out of committee with individual recommendations and the accompanying zero fiscal note. There being no objection, HB 115 was reported out of the House Resources Standing Committee. 1:04:10 PM The committee took an at-ease from 1:04 p.m. to 1:06 p.m. HB 81-OIL/GAS LEASE:DNR MODIFY NET PROFIT SHARE  1:07:02 PM CHAIR PATKOTAK announced that the final order of business would be HOUSE BILL NO. 81, "An Act authorizing the commissioner of natural resources to modify a net profit share lease." [Before the committee was the proposed committee substitute (CS) for HB 81, Version 32-GH1706\B, Nauman, 3/16/21, as amended, adopted as the working document during the meeting of the House Resources Standing Committee on 3/17/21.] REPRESENTATIVE HOPKINS moved to adopt the proposed committee substitute for HB 81, Version 32-GH1706\I, Nauman, 3/22/21, as the working document. There being no objection, Version I was before the committee. 1:07:49 PM Grace Ervine, Staff, Representative Josiah Patkotak, Alaska State Legislature, provided an overview of the proposed CS for HB 81, Version I, on behalf of Representative Patkotak, prime sponsor. She reminded the committee that the prior proposed CS, Version B, conformed the bill from the Department of Law and Department of Natural Resources drafting style to the Legislative Legal Services drafting style. She paraphrased the changes in Version I, which read as follows [original punctuation provided]: Page 2 Lines 16 19 - Clarifies language in subsection D regarding circumstances in which capital expenditures are needed to extend the economic life of an oil or gas field or pool - Specifies that subsection D only applies to net profit share lease modifications Page 2 Line 31 - Conforming change related to changes made to subsection D Page 3 Lines 11 18 - Adds further clarification to modifications in which capital expenditures are needed, ensuring that lessees are actually making the needed capital expenditures Page 4 Line 18 - Conforming change related to changes made to subsection D 1:09:29 PM RYAN FITZPATRICK, Commercial Analyst, Division of Oil and Gas, Department of Natural Resources, referred to comments he had made at the close of last session and thanked the committee members for their consideration and work on HB 81. 1:10:03 PM REPRESENTATIVE HOPKINS moved to report CSHB 81, Version 32- GH1706\I, Nauman, 3/22/21, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 81(RES) was reported out of the House Resources Standing Committee. 1:11:07 PM ADJOURNMENT  There being no further business before the committee, the House Resources Standing Committee meeting was adjourned at 1:11 p.m.